Project Report On Industrial Relation
Project Report On Industrial Relation
ON
INDUSTRIAL RELATION
AT
Page 1
PREFACE
Knowledge has two aspects - theoretical and practical and no theoretical concept is complete without
having knowledge of its practical application. A few weeks professional training programme was
introduced as a part of curriculum of P.G.D.M. This summer training programme proves beneficial to the
future managers as they are confronted with the problems of actual work environment during their training
period.
As per the curriculum requirement , I did 6 weeks training in INDIAN OIL CORPORATION LTD. In
INDIA, BARAUNI. Working in such a big concern, no matter for a very small period was really a matter
of pride. My area of work in that concern was confined to Human resource department and moreover it
was not possible for me to cover all the areas of human resource department in such a short period of time
so I concentrated my working on the project assigned to me i.e. INDUSTRIAL RELATION. So the
learning during the training in INDIAN OIL CORPORATION LTD., a report of that is being presented in
the following pages.
Page 2
USHA KUMARI
ACKNOWLEDGEMENT
Intention, dedication, concentration and work are very much essential to complete any task. But
still it needs lot of support, guidance, co-operation of people to make it successful.
Heart full thanks to all the respective persons who support and guide me.
I have no words to express a deep sense of gratitude to the management of
INDIAN OIL CORPORATION LIMITED for giving me an opportunity to pursue my
internship.
I sincerely thank Mr. R.P.Bhagat for giving me more than just a training place and an
opportunity for understanding of what is “a good professional culture”
I express my deep sense of indebtness towards Mr. William Kullu (Senior human resource
Manager, Barauni region) for providing me valuable information.
I am also thankful to the officers of training and development department.
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USHA KUMARI
DECLARATION
I USHA KUMARI ,a bonafide student of IIMT COLLEGE OF MANAGEMENT, PGDM , (3 rd
Semester) hereby declare that the Project entitled “INDUSTRIAL RELATION” is an original
work and the same has not been submitted by any other student of my class.
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USHA KUMARI
OBJECTIVE OF THE STUDY
My topic is I.R. the industrial relation, the relationship between the employer and employee on
the basis of certain terms and conditions of employment.
The objective of my study is very broad. In keeping consideration the Barauni Refinery i.e the
part of IOCL. I broadly concentrated on the cordial relationship between the management and
worker.
As we know that employees are the assets of the organization and without giving proper
attention and satisfaction to the employees, no one organization can survive in the long run.
As a matter of fact, I can say that the employees and the workers are the really the backbone of
IOCL. Without it the organization can’t get profit.
In the context of Barauni Refinery, I can say that workers and employees are satisfied at the great
extent and there is not any strike from January 2009. Also my guide told me that lockout, layoff
and retrenchment having no any relevance in the Barauni Refinery.
1. Cause and success of cordial relationship between the employer and employee.
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SCOPE OF THE STUDY
The relationship between employer and employee is the most important relationship in the
corporate world. The positive relationship between both of them is effective technique for the
growth of the organization. It would almost impossible to increase the production without
greatest co-operation between employer and employee.
One of the most important and the challenging task of the manager is to satisfy employee to a
large extent and to minimize their conflicts. In order to satisfy employees and manager must
have to adopt motivational factors, incentives schemes.
My topic is I.R, which is broadly related with the relationship between the employer and
employee with the terms and conditions of employment.
So, the I.R is very broad topic in present scenario, every company want to
enhance its productivity. But the productivity can’t be improved unless and until the employees
are not satisfied. Without satisfying the employees, the organization can’t go in the long run and
can’t compete with its competitors.
In order to enhance productivity and satisfying the employees, they have to
maintain a cordial relationship between employees, employer and Government. So that, they can
survive in the long run and can compete with its competitors.
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EXECUTIVE SUMMARY
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CONTENTS
PARTICULARS PAGE NO.
BIBLIOGRAPHY 66
Page 8
CHAPTER – 1
A) COMPANY’S INTRODUCTION
B) INTRODUCTION OF BARAUNI
REFINERY
Page 9
INTRODUCTION 0F THE COMPANY
The Indian Oil Corporation Ltd. operates as the largest company in India in terms of turnover
and is the only Indian company to rank in the Fortune "Global 500" listing. The oil concern is
administratively controlled by India's Ministry of Petroleum and Natural Gas, a government
entity that owns just over 90 percent of the firm. Since 1959, this refining, marketing, and
international trading company served the Indian state with the important task of reducing India's
dependence on foreign oil and thus conserving valuable foreign exchange. That changed in April
2002, however, when the Indian government deregulated its petroleum industry and ended Indian
Oil's monopoly on crude oil imports. The firm owns and operates seven of the 17 refineries in
India, controlling nearly 40 percent of the country's refining capacity.
1958
Indian Refineries Ltd. formed in August with Mr Feroze Gandhi as the Chairman.
1959
Indian Oil Company Ltd. established on 30th June 1959 with Mr S. Nijalingappa as the
Chairman.
1960
IIMT COLLEGE OF MANAGEMENT
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Agreement for supply of Kerosene and Diesel signed with the USSR.
MV Uzhgorod carrying the first parcel of 11,390 tonnes of Diesel for IndianOil
docked at Pir Pau Jetty in Mumbai on 17th August 1960.
1962
Guwahati Refinery inaugurated by Pt. Jawaharlal Nehru, Hon’ble Prime Minister of India.
1963
Indian Oil Blending Ltd. (a 50:50 Joint Venture with Mobil) formed.
1964
Indian Refineries Ltd. merged with Indian Oil Company with effect from 1st September,
1964, and Indian Oil Company renamed as Indian Oil Corporation Ltd.
1965
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IndianOilPeople maintained the vital supply of Petroleum products to Defence Services
during Indo-Pak war.
1967
1968
1969
Acquired 60% majority shares of IBP Co. Ltd. The same was offloaded in favour of the
President of India in 1972.
1971
1972
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SERVO, the first indigenous lubricant, launched.
1973
1974
1975
1977
1978
1981
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Digboi Refinery and Assam Oil Company's (AOC) marketing operations vested in
IndianOil and it became Assam Oil Division (AOD) of IndianOil.
1982
1984
Integrated Corporate Planning – a 10-year Perspective Plan and 5-year Long Range Plan
– initiated.
1985
New office complex for Registered Office of the Corporation and HeadOffice of
Marketing Division in Mumbai completed.
1986
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A new Foreshore Terminal at Madras commissioned.
1987
Test marketing of 5 kg LPG cylinders begins in 1986-87 in Garo Hills and Kumaon.
1989
Salaya-Mathura crude oil pipeline suitably modified for handling Bombay High Crude
during winter.
1990
First LPG Bottling Plant of Assam Oil Division (AOD) commissioned at Silchar.
1991
1993
New era Micro-processor based Distributed Digital Control Systems replacing the
pneumatic instrumentations began in refineries.
1994
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Vision-2000, the Retail Visual Identity programme launched to upgrade retail outlets.
1995
1,443 km. long Kandla-Bhatinda product pipeline commissioned.
First lndane Home Shoppe launched.
1996
State-of-the-art LPG Import Terminal at Kandla (capacity of 6,00,000 tonnes per annum)
commissioned.
First batch of one-year International MBA (iMBA) programme passes out of IndianOil
Institute of Petroleum Management (IIPM).
1997
1998
Panipat Refinery was commissioned.
Haldia, Barauni Crude Oil Pipeline (HBCPL) was completed.
The Administrative Pricing Mechanism (APM) was withdrawn from the Refining Sector
effective 1" April 1998. Phase-wise dismantling of APM began.
1999
Indian Hydrocarbon Vision -2025" was announced at PETROTECH-99, organised by
Indian Oil on behalf of the oil Industry.
Diesel Hydro-desulphurisation Units commissioned at Gujarat, Panipat, Mathura and
Haldia Refineries.
Manthan -- the IT re-engineering project was launched.
2000
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Indian Oil crossed the turnover of the magical mark of Rs l ,00,000 Crore -- the first
Corporate in India to do so.
Indian Oil entered into Exploration & Production (E&P) with the award of two
exploration blocks to Indian Oil and ONGC consortium under NELP-1
Y2K compatibility achieved.
JNPT Terminal was commissioned.
2001
Digboi Refinery completed 100 years of continuous operation.
Chennai Petroleum Corporation Ltd. (CPCL) and Bongaigaon Refinery and
Petrochemicals Ltd. (BRPL) were acquired.
Fluidised Catalytic Cracker Unit at Haldia Refinery was commissioned.
Augmentation of Kandla-Bhatinda Pipeline (KBPL) to 8.8 MMTPA completed.
Eight Exploration blocks awarded to the Indian Oilled consortium under NELP-II.
2002
APM dismantled. Pricing of Petroleum products decontrolled.
IBP Co. Ltd. was acquired with management control.
Barauni Refinery expansion project completed.
New generation auto fuels IOC Premium and Diesel Super introduced.
2003
Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.
Retail operations began in Sri Lanka. Indian Oil became the first Indian Petroleum Company to
begin downstream marketing operations in overseas market. Lanka IOC became an independent
oil company in Sri Lanka
Gasahol, 5% ethanol blended petrol, was introduced in select states.
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INDMAX unit at Guwahati Refinery commissioned.
2004
Indian Oil turned a Gas marketer by sale of regasified LNG.
Indian Oil Mauritius Ltd.’s 18 TMT state-of-the-art Oil Storage Terminal at Mer Rouge
commissioned
Lanka IOC Pvt. Ltd. (LIOC) launched in Sri Lanka.
Gasahol, 5% ethanol blended petrol, was introduced in select states.
INDMAX unit at Guwahati Refinery commissioned.
Foundation Stone of Panipat Refinery Expansion and PX/PTA projects laid.
Maiden LPG supplies to Port Blair.
2005
The year marked Indian Oil's big ticket entry into the high stakes business of E&P.
Indian Oil's Mathura Refinerywas the first refinery in India to attain the capability of
producing entire quantity of Euro-III compliant diesel by commissioning the Rs 1046
crore DHDT (Diesel hydrotreating unit).
Indian Oil breached the Rs 150, 000 crore mark in sales turnover by clocking Rs 150,
677 in turnover in fiscal 2004.
Indian Oil signed a JV agreement with GAIL to enter the city gas distribution projects
in Agra and Lucknow.
Indian Oil allowed by Government of India to charter crude oil ships on its own instead
of going through Transchart, the chartering wing of the Ministry of Shipping.
2006
Panipat Refinery capacity enhanced from 9 to 12 MMTPA
World-scale Paraxylene/Purified Terephthalic Acid (PX/PTA) plant commissioned at
Panipat as mother plant for polyester industry
Chennai-Trichy-Madurai product pipeline dedicated to the nation.
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2007
Marketing subsidiary IBP Co. Ltd. merged with parent company.
Concept of SERVOXpress Centres as one-stop shops for autocare services launched.
Mundra-Panipat crude oil pipeline with facilities for handling heavy crude oil
commissioned.
Lanka IOC commissions Lube Blending Plant and laboratory for testing fuels and
lubricants at Trincomalee
Concept of ‘LNG at the doorstep’ launched for customers located away from gas
pipelines
2008
SERVO lubricants launched in Oman.
IndianOil Chairman elected as President of World LP Gas Association.
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Management
Chairman
B M Bansal
Chairman & Director (Planning & Business Development and R&D)
Board of Directors
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B N Bankapur K K Jha P K Sinha
Director (Refineries) Director (Pipelines) Additional Secretary &
Financial Advisor
Ministry Of Petroleum
& Natural Gas
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N.K. Poddar
Senior Advocate, Kolkata
Raju Ranganathan Company Secretary
Principal Executives
D K Samantaray Chief Vigilance Officer
Vipin Kumar Advisor (Security)
Executive Directors (Corporate Office)
V P Sharma Internal Audit
V K Sood Corporate Finance
S C Jain Finance-Business Development
R Narayanan Corporate Affairs
K K Gupta IndianOil Institute of Petroleum Management
Thomas Antony Human Resources Development
A M K Sinha Corporate Planning & Economic Studies
N K Khosla Safety, Health & Environment
Satish Kumar Human Resources
Ms. D Lilly Pricing & Taxation
V S Okhde Exploration & Production
A S Ujwal International Trade
S Ramasamy Information Systems
S C Meshram Petrochemicals
R S Solanki CEO, IndianOil Foundation
A K Marchanda Gas
N K Gupta Optimisation
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S K Sarangi Renewable Energy
Executive Directors (Refineries Division Headquarters)
P K Goyal Finance (incharge)
H V Singh Incharge Projects PDRP
N K Bansal Shipping
N K Khosla Projects - PNCP
Sudhir Bhalla Human Resources
A Panda Safety & Environment
C S Das Maintenance & Inspection
U L Dohare Projects
A S Basu Operations
S K Garg Information Systems
V K Bansal Finance - PDRP
R Shankar Finance
Executive Directors (Refineries Division)
J P Guharay Mathura Refinery
A K Roy Haldia Refinery
G Bhanumurthy Guwahati Refinery
R K Ghosh Incharge Panipat Refinery
P Sur Gujarat Refinery
S N Choudhary Projects-PNCP, Panipat
A Saran Bongaigaon Refinery
Ashwini Sharma Panipat Refinery
M K Padia Barauni Refienery
M Vijayawergia Projects PDRP Site
Executive Directors (Pipelines Division)
T Vasudevan Finance
A K Rauniar Human Resources
Anil Tandon Projects PLHQ
S K Sinha Western Region Pipelines
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B V Jankiram Operations
Executive Directors (Marketing Division Headquarters)
Gautam Datta Incharge Finance
Gautam Dutta Human Resources
N K Bansal S&EP
Amitava Chatterjee Lubes
R Sareen Aviation
M Nene Supplies
Mrinal Roy Engineering
N Srikumar Andhra Pradesh State Office
S K Gupta Consumer Sales
V K Jeychandran Gujarat State Office
Satwant Singh LPG
M Ramana Operations
D Sen West Bengal State Office
Deepak Pandya Maharashtra State Office
E Unnikrishnan Coordination/Pricing/Planning
H S Bedi Retail Sales
DSL Prasad Tamil Nadu State Office
P D Bhaukhandi QC
S Krishna Prasad Finance
Executive Directors (Assam Oil Division)
Subrato Ghosh Assam Oil Division, Digboi
Executive Directors (R&D Centre)
Dr. R K Malhotra Incharge R&D
Dr. K P Naithani Lube Technology
Executive Directors (IBP Division)
S K Roy Cryogenics
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V Ramaswamy Finance
Indian Oil Corporation Ltd. (Indian Oil) was formed in 1964 through the merger of Indian Oil
Company Ltd. (Estd. 1959) and Indian Refineries Ltd. (Estd. 1958).
At Indian Oil, corporate social responsibility (CSR) has been the cornerstone of success right
from inception in the year 1964. The Corporation’s objectives in this key performance area are
enshrined in its Mission statement: "…to help enrich the quality of life of the community and
preserve ecological balance and heritage through a strong environment conscience”
.From a fledgling company with a net worth of just Rs. 45.18 crore and sales of 1.38 million
tonnes valued at Rs. 78 crore in the year 1965, Indian Oil has since grown over 3000 times.
Indian Oil Corporation Ltd. (Indian Oil) is India's largest commercial enterprise, with a sales
turnover of Rs. 2,47,479 crore (US $ 61.70 billion) and profits of Rs. 6,963 crore (US $ 1.74
billion) for the year 2007-08.
Indian Oil is also the highest ranked Indian company in the prestigious Fortune 'Global 500'
listing, having moved up 19 places to the 116th position in 2008. It is also the 18th largest
petroleum company in the world.
Indian Oil has ambitious investment plans of Rs. 43,250 crore in the next five years. By 2011-
12, the Indian Oil Group, with 80 MMTPA refining capacity in its fold, would be playing a key
role in realising India’s bid to emerge as an export-oriented hub for finished products.
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PRODUCTS
Indian Oil is not only the largest commercial enterprise in the country it is the flagship corporate
of the Indian Nation. Besides having a dominant market share, Indian Oil is widely recognized as
India’s dominant energy brand and customers perceive Indian Oil as a reliable symbol for high
quality products and services.
Benchmarking Quality, Quantity and Service to world-class standards is a philosophy that Indian
Oil adheres to so as to ensure that customers get a truly global experience in India.
Indian Oil is a heritage and iconic brand at one level and a contemporary, global brand at another
level. While quality, reliability and service remains the core benefits to the customers.
Autogas
Bitumen
Indane Gas
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SERVO Lubricants & Greases
MS / Gasoline
Petrochemicals
Special Products
Crude Oil
The Corporation's refineries surpassed 100% capacity utilisation and clocked the highest ever
throughput of 51.4 million tonnes. Breaching the 10,000 km mark in length, the pipelines
network registered the highest ever operational throughput of 59.5 million tonnes of crude oil
and petroleum products.
During the year 2008-09, IndianOil's sales volume registered a growth of 5.6% and went up to an
unprecedented 62.6 million tonnes of petroleum products as compared to 59.30 million tonnes
during the previous year. Sales of natural gas also went up to 1.7 million tonnes in 2008-09. In
addition, product exports rose to 3.64 million tonnes from 3.38 million tonnes in the previous
year.
Among new businesses, Natural Gas marketing and Petrochemicals generated revenues of Rs.
2425 crore and Rs. 2760 crore during the year 2008-09.
Core Performance
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Financial Performance
IndianOil’s gross turnover (inclusive of excise duty) for the year 2008-09 reached a new
high of Rs. 2,85,337 crore up by 15.3% as compared to Rs. 2,47,457 crore in the
previous year. The Profit After Tax was Rs. 2,950 crore.
For the year 2008-09, IndianOil has received Special Oil Bonds worth Rs. 40,383 crore
from the Government of India in addition to Rs. 18,210 crore received from upstream
companies towards subsidy-sharing.
The Gross Refining Margin for April-March 2009 is USD 3.69 per barrel as compared to
USD 9.02 per barrel during the previous year
Marketing
IndianOil maintained its dominance in the market place and clocked the highest ever
level of sales during the year 2008-09.
Domestic sales grew by 5.6% from 59.30 million tonnes in the previous year to 62.6
million tonnes in the year 2008-09.
Refineries
For the year 2008-09, IndianOil's eight refineries achieved the highest ever throughput of
51.4 million tonnes and 103.4% capacity utilisation, registering 8.4% growth in crude oil
processing over the previous year.
IndianOil refineries clocked the lowest overall specific energy consumption of 64
MBTU/BBL/NRGF (MBN) during the year as against 67 in 2007-08.
IndianOil imported a record quantity of 47.8 million tonnes of crude oil in 2008-09 as
against 46.11 million tonnes in 2007-08.
During the year, IndianOil entered into term contracts with Angola and Brunei for import
of low sulphur crude oil and over 95% of the LPG imports were finalised through term
contracts.
Pipelines
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During the year, IndianOil's network of underground highways breached the 10,000
kilometre mark and registered the highest ever operational throughput of 59.5 million
tones.
Compared to the previous year, the crude oil pipelines registered a 6.7% growth at 38.2
million tonnes.
The year was marked by the commissioning of a record number of pipeline projects, the
foremost being the Paradip-Haldia crude oil pipeline and IndianOil's first Panipat-
Jalandhar LPG pipeline.
Other projects commissioned during the year include the Koyali-Ratlam product
pipeline, ATF Pipeline from CPCL (Manali) to Chennai AFS .
Projects
IndianOil is implementing projects of over Rs. 60,000 crore currently. Major ones among
them are: 15 MMTPA refinery at Paradip (Rs. 29,777 crore);
capacity augmentation of Panipat Refinery (from 12 to 15 MMTPA, Rs. 1007.83 crore);
REFINERIES DIVISION
Indian Oil controls 10 of India’s 18 refineries – at Digboi, Guwahati, Barauni, Koyali,
Haldia, Mathura, Panipat, Chennai, Narimanam and Bongaigaon – with a current
combined rated capacity of 54.20 million metric tones per annum (MMTPA) * (one
million barrels per day). Indian Oil registered a record throughput of 36.63 millions
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tones during the year 2004-05 with a capacity utility of 88.6%. Indian Oil accounts for
42% of India’s total refining capacity. Overall Energy consumption of Indian Oil
refineries was lowest at 109 MBTU/BBL/NRGF against earlier best of 111, achieved in
2003-04. Gross Refining Margin (GRM) rose by almost one dollar per barrel during the
year 2004-05. It is expected to be the highest at US$ 6.25/bbl for the year 2004-05 as
against $5.30/bbl in 2003-04. All refinery units are accredited with ISO 9002 and ISO
14001 certifications.
Modernization project of this refinery has been completed and the refinery now has an
increased capacity of 0.65 MMTPA. The Digboi refinery produces distillates, heavy
ends and excellent quality wax from indigenous crude oil produced at the Assam Oil
fields. Petroleum products are supplied mainly to northeastern India primarily through
road and by rail wagons. A new Delayed Coking Unit of 1,70,000 TPA capacity was
commissioned in 1999. A new solvent dewaxing unit for maximizing production of
microcrystalline wax was installed and commissioned in 2003. The refinery has also
installed Hydrotreater to improve the quality of diesel.
GUWAHATI REFINERY
The Guwahati Refinery in North East India – the first Public Sector refinery of the
country-was commissioned in 1962 with a capacity of 0.75 MMTPA which was
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subsequently increased to 1.0 MMTPA through debottlenecking projects.The refinery
processing only indigenous crude oil from the Assam oil fields. It supplies petroleum
products to North-Eastern India and surplus products onwards 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
Indianoil’s R & D center for upgrading heavy ends into LPG, motor spirit and diesel oil.
BARAUNI REFINERY
C further to its current capacity of 6.0 MMTPA through low cost revamping and
debottlenecking. Matching secondary processing facility such as RFCC (Resid Fluidised
Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have been
added. With the commissioning of the 6.0 MMTPA Haldia-Barauni crude oil pipeline,
the refinery now received imported crude for processing. A CRU (Catalytic Reformer
Unit) was also added to the refinery in 1997 for production of unleaded motor spirit.
Projects are also planned for meeting future fuel quality requirements. Barauni refinery
supplies distillate products beside eastern India to northern India through a product
pipeline to Kanpur in Uttar Pradesh.
GUJARAT REFINERY
The Gujarat Refinery at Koyali in Gujarat in Western India is IndianOil’s largest refinery.
The refinery was commissioned in 1965. Its facilities include five atmospheric crude
distillation units. The major units include CRU, FCCU and the first Hydro cracking unit
of the country.Through a product pipeline to Ahmedabad and a recently commissioned
product pipeline connecting to BKPL product pipeline
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and also by rail wagons/trucks, the refinery primarily serves the demand for petroleum
products in Western and Northern India.When commissioned, the Gujarat refinery had a
design capacity of 3.0 MMTPA. It was increased to 4.3 MMTPA by the revamping of
three distillation Units. In 1978, its processing capacity was further increased to 7.3
MMTPA by the addition of a crude distillation unit. Subsequently the crude capacity was
increased to 9.5 MMTPA by 1990 and then by 12.5 MMTPA in 1999. Since it has been
increased to its present capacity of 13.70 MMTPA by low cost debottlenecking.
HALDIA REFINERY
Haldia Refinery, the fourth in the chain of seven operating refineries of IndianOil, was
commissioned in January 1975. It is situated 136 km downstream of Kolkata in the
district of East Midnapur, West Bengal, near the confluence of river Hoogly and river
Haldi. The refinery had an original crude oil processing capacity of 2.5 MMTPA.
Petroleum products from this refinery are supplied 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.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.Diesel Hydro Desulphurisation (DHDS) unit was commissioned in
1999, for production of low sulphur content (0.25%wt.) High Speed Diesel. With
augmentation of this unit, refinery is producing BS-II and Euro-III equivalent HSD at
present.
MATHURA REFINERY
The Mathura Refinery was commissioned in 1982 with an original capacity of 6.0
MMTPA. The capacity was increased to 7.5 MMTPA by debottlenecking and
revamping. With its fluid catalytic cracking units, the refinery mainly produces middle
distillates and supplies them to Northern India through a product pipeline to Jalandhar,
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Punjab via Delhi. A hydro cracker for increasing middle distillates was also completed in
2000. The present capacity of the refinery is 8 MMTPA. In order to meet future fuel
requirements, facilities for improvement in quality of MS & HSD are under installation
and planned to be completed by 2005.
PANIPAT REFINERY
IndianOil’s seventh refinery, commissioned in 1998, is located at Panipat, 125 kms away
from Delhi, the capital of India, in the state of Haryana in Northern India. The main units
are OHCU (Once-through-hydro cracker), RFCC, CCRU (Continuous Catalytic
Reformer unit) besides other secondary treatment units. This 6 MMTPA refinery caters
to the high demand centers of Northern India. The product to increase the capacity of
Panipat refinery to 15 MMTPA is already under implementation, which also takes into
account future fuel quality requirements for 2005. The expansion project is expected to
be completed in 2005.
MARKETING DIVISION
The Marketing Division of IOCL handles the responsibility of delivering petroleum
products to the customers. The Marketing Division has set up various marketing
terminals where storage tanks are built up to hold the products. The petroleum products
are transferred to the marketing terminals by the Pipelines Division, which charges the
Marketing Division for the same. Indian Oil caters to over 53.2% of India’s petroleum
consumption.
Indian Oil’s Marketing Network is spread throughout the country with over 23,000 sales
points (the largest in the country
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Indian Oil owns world-class “research and development” centre headed by Director. It
provides services to all other divisions of the Corporation and bin that sense it is a form
of “SHARED SERVICE UNIT.” Established in 1972 for the development of lube as well
as refining process technologies, the Indian Oil R & D Centre at Faridabad near New
Delhi has completed around 30 years of glorious service to the nation. It is one of its
kind in Asia and has grown into a major technological development center of
international repute in the down stream areas of lubricants, pipelines and refining
processes.
Over the years, it has successfully perfected the state-of-the-art lube formulation
technology meeting latest national and international specifications with approvals from
major original equipment manufacturers. Indian Oil markets around 450 grades of
lubricants under the brand name “SERVO” based on its R&D technology. It has
extensive laboratory and pilot plant facilities to successfully pursue projects in lube,
refining and pipeline areas making it a unique technology centre. Its rich reservoir of
highly qualified / specialized scientific and technical manpower has elevated this center
to global status. Creativity and innovative research has led to technological innovations,
some of which have received prestigious national and international awards.
The assets of the erstwhile Assam Oil Company were taken over by IOCL in the year
1981. It is kept as a separate division in IOCL. Assam Oil Division owns the Digboi
refinery and is also into marketing. It owns one petrol pump on the Delhi-Mathura Road.
MISSION
IIMT COLLEGE OF MANAGEMENT
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To achieve international standards of excellence in all aspects of energy and diversified business
with focus on customer delight through value of products and services, and cost reduction.
To maximize creation of wealth, value and satisfaction for the stakeholders.
To attain leadership in developing, adopting and assimilating state-of-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.
VISION
A major, diversified, transnational, integrated energy company, with national leadership and a
strong environment conscience, playing a national role in oil security and public distribution.
VALUES
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Passion - Stands for Trust - Stands for
Commitment Delivered Promises
Dedication Reliability
Pride Dependability
Inspiration Integrity
Ownership Truthfulness
Zeal & Zest Transparency
OBLIGATIONS
Towards suppliers
To ensure prompt dealings with integrity, impartiality and courtesy and promote ancillary
industries.
Towards employees
Develop their capability and advancement through appropriate training and career planning.
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Towards community
To develop techno-economically viable and environment-friendly products for the benefit of the
people.
To encourage progressive indigenous manufacture of products and materials so as to substitute
imports.
To ensure safety in operations and highest standards of environment protection in its
manufacturing plants and townships by taking suitable and effective measures.
CORPORATE OBJECTIVES
To serve the national interests in the Oil and related sectors in accordance and consistent
with Government policies.
To ensure and maintain continuous and smooth supplies of petroleum products by way of
crude refining, transportation and marketing activities and to provide appropriate assistance to
the consumer to conserve and use petroleum products efficiently.
To earn a reasonable rate of interest on investment.
To work towards the achievement of self-sufficiency in the filed of Oil refining by setting
up adequate capacity and to build up expertise in laying of crude and petroleum product
pipelines.
To create a strong research and development base in the field of Oil refining and
stimulate the development of new product formulations with a view to minimize/eliminate their
imports and to have next generation products.
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To maximize utilization of the existing facilities in order to improve efficiency and
increase productivity.
To optimize utilization of its refining capacity and maximize distillate yield from refining
of crude to minimize foreign exchange outgo.
To minimize fuel consumption in refineries and stock losses in marketing operations to
effect energy conservation.
To further enhance distribution network for providing assured service to customers
throughout the country through expansion of reseller network as per Marketing Plan/Government
approval.
To avail of all viable opportunities, both national and global, arising out of the
liberalization policies being pursued by the Government of India.
FINANCIAL OBJECTIVES
To ensure adequate return on the capital employed and maintain a reasonable annual Dividend
on its equity capital.
To ensure maximum economy in expenditure.
To manage and operate the facilities in an efficient manner so as to generate adequate internal
resources to meet revenue cost and requirements for project investment, without budgetary
support.
To develop long-term corporate plans to provide for adequate growth of the activities of the
corporation.
To endeavor to reduce the cost of production of petroleum products by means of systematic cost
control measures.
To endeavor to complete all planned projects within the stipulated time and cost estimates.
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PRINCIPAL SUBSIDIARIES
Indo Mobil Ltd. (50%); Avi-Oil Ltd. (25%); Indian Oil tanking Ltd. (25%); Petronet India Ltd.
(16%); Petronet VK Ltd. (26%); Petronet CTM Ltd. (26%); Petronet CIPL Ltd. (12.5%);
IndianOil Petronas Ltd. (50%); Indian Oil Panipat Power Consortium Ltd. (26%); Indian Oil
TCG Petrochem Ltd. (50%); Librizol India Pvt. Ltd. (50%).
PRINCIPAL COMPETITORS
SWOT ANALYSIS
STRENGTHS
IOCL has managed to significantly cut its borrowing cost due to high share of foreign exchange
debt. Its share of foreign exchange borrowings is increasing with foreign exchange loans
crossing 50% of its total debt compared to 42% at the end of the last financial year.
Page 39
As India's flagship national oil company, Indian Oil accounts for 56% petroleum products
market share, 42% national refining capacity and 67% downstream pipeline throughput capacity.
Indian Oil is one of the leaders in providing engineering, construction and consultancy services
to the pipeline industry. Highly qualified professionals with vast experience execute pipeline
projects from concept to commissioning and provide services for construction supervision and
project management.
Indian Oil is strengthening its existing overseas marketing ventures and simultaneously scouting
new opportunities for marketing and export of petroleum products in foreign markets. Two
wholly owned subsidiaries are already operational in Sri Lanka and Mauritius, and regional
offices at Dubai and Kuala Lumpur are coordinating expansion of business activities in Middle
East and South East Asia regions. The Corporation has launched eleven joint ventures (listed
separately) in partnership with some of the most respected corporate from India and abroad .
WEAKNESSES
The decisions relating to administration are taken at the corporate level. Even minor proposals
are to be referred to the top management. This leads to a delay in decision-making.
Among the public sector oil companies, Indian Oil Corporation is the only one to follow a weak
marketing strategy. It in only in the recent years that the company has started to market its
Page 40
products. However, still the efforts seem to be weak when compared with the competitors like
BPCL and HPCL.
PROMOTION POLICY
Most of the public sector companies seem to suffer from these lacunae. The employees are
promoted mainly on the basis of experience and not on the efforts and initiatives displayed by the
employee in his work. This results in demotivation and lack of interest for their work on the part
of the hardworking employees, who then tend to shift jobs to satisfy their need for self-esteem.
TENDER PROCESS
The policy of selection of the lowest bidder tends to affect the quality of the products/services on
some occasions. A more simplistic procedure is also likely to generate some savings for the
company, since tendering process leads to expenses on account of advertisement.
OPPORTUNITIES
Indian Oil is metamorphosing from a pure sectoral company with dominance in downstream in
India to a vertically integrated, transnational energy behemoth. The Corporation is making
investments in E&P and import/marketing ventures for oil and gas in India and abroad, and is
implementing a master plan to emerge as a major player in petrochemicals by integrating its core
refining business with petrochemical activities.
THREATS
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The opening up of the oil sector for private players poses a threat even for this well-established
company. With Indian players like Reliance and Essar and foreign players like Shell planning
their entry into the Indian scenario, the road seems to be tough for Indian Oil.
The Barauni Refinery in Eastern India was commissioned in 1964 with a capacity of 2.0
MMTPA. The refining capacity was increased to 3.0 MMTPA by 1969 and
Fluidised Catalytic Cracker) and hydrotreater facilities for diesel quality improvement have been
added. With the commissioning of the 6.0 MMTPA Haldia-Barauni crude oil pipeline, the
refinery now received imported crude for processing. A CRU (Catalytic Reformer Unit) was
also added to the refinery in 1997 for production of unleaded motor spirit. Projects are also
planned for meeting future fuel quality requirements. Barauni refinery supplies distillate
products beside eastern India to northern India through a product pipeline to Kanpur in Uttar
Pradesh.
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PRODUCTS FROM REFINERY
With the expansion of Barauni Refinery to 12.0 MMTPA total high speed diesel produced from
entire refinery will meet BS-II and BS-III Grade required for NCR. After stabilisation of units,
the high value product yield from the refinery will be further improved by reducing the
production of black oil like HPS and Bitumen. With state-of the-art matching secondary
processing facilities was approved at a cost of Rs.4165 crore.
LPG
NAPHTH
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IIMT COLLEGE OF MANAGEMENT
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BITUMEN
MOTOR
SULPHUR
SPIRIT
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HEAVY
PETROLEUM
STOCK
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INTEGRATED POLICY
ON
QUALITY, SAFETY, HEALTH & ENVIRONMENT (QSHE)
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''PRISM''
(Panipat Refinery Integrated System of Management)
Integrated Policy
Quality, Safety, Health & Environment
CHAPTER-2
Page 45
INTRODUCTION OF THE TOPIC
INDUSTRIAL RELATION
INTRODUCTION
Page 46
ABOUT INDUSTRIAL RELATIONS
Page 47
Dynamic and changing: Industrial Relations change with the times, generally keeping pace
with the expectations of employees, trade union, employers` associations, and other economic
and social institution in a society.
Wide coverage: The scope of Industrial Relations is wide enough to cover a vast territory
comprising of grievances, disciplinary measures, ethics, standing orders, collective bargaining,
participatory schemes, dispute settlement mechanisms etc.
Interactive and consultative in nature: Industrial Relations include individual relations and
joint consultation between labour, management.
Factories Act of 1946 is a culmination of a series of earlier acts for Industrial Relations. The act
makes extensive provisions for healthy relations in various areas in the workplace.
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03. 1981/1987 The Air (prevention & control of pollution)
Act, including amendments.
08. 1989
The Central Motor Vehicle rules (under motor
vehicle Act, 1988)
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18. 1984 The Explosive Act
This cover section 11-20 and 42-49 & the items covered are related to:
Sec 11:- General cleanliness
Sec 12:- Disposal of wastes and affluent
Sec 13:- Ventilation and temperature
Sec 14:- Free from dust and fumes
Sec 15:- Artificial humidification
Sec 16:- Overcrowding and congestion
Sec 17:- Lighting
Sec 18:- Drinking water
Sec 19:- Kamotes and urinal
Sec 20:- Provision for spittoons
Sec 42:- Washing facility
Sec 43:- Keeping clothing not worn during working hours and for drying of wet clothes
Sec 44:- Sitting for workers who are obliged to work standing
Sec 45:- Maintenance of first aid box with prescribed contents for every employees
Sec 46:- Canteen facility for more than 250 workers
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Sec 47:- Suitable rest rooms or lunch room with provision for drinking water and should be
provided in factory employing more than 150 workers and for more than 500 workers ambulance
room of prescribed size, prescribed equipments and in charge of qualified medical and nursing
staff
Sec 48:- Crèches for women, workers more than 30
Sec 49:- Appointments of welfare office for more than 500 employees
Page 51
conflictual and creates an environment conducive to economic efficiency and the
motivation, productivity and development of the employee and generates employee
loyalty and mutual trust.
Employers: Employers possess certain rights vis-à-vis labors. They have the right to
hire and fire them. Management can also affect workers’ interests by exercising their
right to relocate, close or merge the factory or to introduce technological changes.
Employees: Workers seek to improve the terms and conditions of their employment.
They exchange views with management and voice their grievances. They also want to
share decision making powers of management. Workers generally unite to form unions
against the management and get support from these unions.
Government: The central and state government influences and regulates industrial
relations through laws, rules, agreements, awards of court and the like. It also includes
third parties and labor and tribunal courts.
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IIMT COLLEGE OF MANAGEMENT
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Importance of Industrial Relations
The healthy industrial relations are key to the progress and success. Their significance
may be discussed as under –
High morale – Good industrial relations improve the morale of the employees.
Employees work with great zeal with the feeling in mind that the interest of employer
and employees is one and the same, i.e. to increase production. Every worker feels
that he is a co-owner of the gains of industry. The employer in his turn must realize
that the gains of industry are not for him along but they should be shared equally
and generously with his workers. In other words, complete unity of thought and
action is the main achievement of industrial peace. It increases the place of workers
IIMT COLLEGE OF MANAGEMENT
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in the society and their ego is satisfied. It naturally affects production because
mighty co-operative efforts alone can produce great results.
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Objectives of industrial relations
To safeguard the interest of labor and management by securing the highest level of
mutual understanding and good-will among all those sections in the industry
which participate in the process of production.
To avoid industrial conflict or strife and develop harmonious relations, which are an
essential factor in the productivity of workers and the industrial progress of a
country.
To raise productivity to a higher level in an era of full employment by lessening the
tendency to high turnover and frequency absenteeism.
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Role of State in Indian Industrial Relations
India is socialist democratic republic state. Every elected government of the country has
as its bounden duty to secure upliftment of all citizen and to that extent the constitution
provides for rules and regulations through a system of laws that would facilitate
progress, redress of grievances and thereby would maintain peace and harmony in the
society!
As regards "labour" while the State is committed to promote industrial growth through
bilateral relations between employers and employees for mutually healthy existence,
cooperation and progress, the state is NOT oblivious to the fact that despite best
intentions and efforts, sometimes the issues between the parties may not get resolved
at bilateral level and unless a way ro resolve is sanctified through the constitution of the
country and the system of law, there would be impediments to progress and the
expected peace and harmony may get vitiated. Against this backdrop, it is simple to
accept and apreciate that the State has reserved a a role of an "Umpire or a Referee" in
the game of industrial relations in the country. Its provides all kinds of mechanisms to
parties through law to resolve their own problems bilaterally and has further taken care
to provide a quasi judicial/judicial system for determination of disputes.
Personally and professionally, one feels that this is an ideal system. Unfortunately, the
experience shows that corrupt administration, adventurous unionism, sluggish judiciary
and tight fisted managements have made a virtual mockery of the concept. But the idea
essentially is excellent in the State becoming an Umpire and to help parties become
mature in resolving problems amongst themselves! The role of the State in Indian
Industrial Relations is that of an Umpire, Elder brother andwell-wisher! That the
concerned parties have vitiated the golden thought is the country's misfortune!!!
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Employers' organization
In countries with a social market economy, such as Austria, Sweden and the
Netherlands, the employers' organizations are part of a system of institutionalized
deliberation, together with government and the trade unions. In tri-partite bargaining the
so-called social partners strike agreements on issues like price levels, wage increases,
tax rates and pension entitlements. In these countries collective bargaining is often
done on a national level not between one corporation and one union, but national
employers' organizations and national trade unions.
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INDUSTRIAL RELATIONS MACHINERY
Cordial industrial relations and lasting industrial peace require that the causes of
industrial disputes should be eliminated. In other words, preventive steps should be
taken so that industrial disputes do not occur. But if preventive machinery fails then the
Government should activate the industrial Settlement machinery because non-
settlement of disputes proves to be harmful not only for the workers, but also the
management and the society as a whole. The machinery for handling the industrial
disputes has been shown in the following figure:
MACHINERY FOR HANDLING INDUSTRIAL DISPUTES IN BARAUNI REFINERY
Preventive Machinery
(Voluntary or Non-statutory)
Settlement Machinery (Statutory)
This is sure that all of us would have heard the saying that prevention is better than
cure. Keeping that in mind let us discuss the prevention machinery before the
settlement machinery. I hope all of you have understood the difference between the
two. If you have not, let me explain it to you. The preventive machinery ensures that
there are no disputes. It aims at creating an environment in which the employees are
allowed to participate and there are very less chances of conflicts. It is thus proactive in
nature. Now don’t tell me that you don’t understand the meaning of pro activity…
Anyhow, pro activity means that actions are taken before there is a problem. The
settlement machinery on the other hand is reactive in nature. After there is a problem or
a dispute, the settlement machinery comes into the picture.
Prevention of industrial disputes:
The preventive machinery has been set up with a view to creating harmonious relations
between labour and management so that disputes do not arise. It comprises the
following measures:
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a) Schemes of workers’ participation in management such as works committees, joint
management councils and shop councils and joint councils.
b) Collective bargaining.
c) Tripartite bodies
d) Code of discipline.
The schemes of workers’ participation and collective bargaining will be discussed in
greater detail as a separate topic. As of now, please read something on these schemes
and we will discuss it in the due course.
Rests of the preventive measures are discussed below:
• Tripartite Bodies
Industrial relations in India have been shaped largely by principles and policies evolved
through tripartite consultative machinery at industry and national levels. The aim of the
consultative machinery is “to bring the parties together for mutual settlement of
differences in a spirit of cooperation an goodwill” Thus these bodies play the role of
consultants!!
Indian Labour Conference (ILC) and Standing Labour Committee (SLC) have been
constituted to suggest ways and means to prevent disputes. The representatives of the
workers and employers are nominated to these bodies by the Central Government in
consultation with the All-India organisations of workers and employers.
The Labour Ministry settles the agenda for ILC/SLC meetings after taking into
consideration the suggestions sent to it by member organisations. These two bodies
work with minimum procedural rules to facilitate free and fuller discussions among the
members. Please note that the ILC meets once a year, whereas the SLC meets as and
when necessary. I am sure you would have read in the newspapers that the ILC meet is
being organized.
The functions of ILC are:
(a) To promote uniformity in labour legislation
(b) To lay down a procedure for the settlement of industrial disputes
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(c) To discuss matters of All-India importance as between employers and employees.
The ILC advises the Government on any matter referred to it for advice, taking into
account suggestions made by the States and representatives of the organisations of
workers and employers.
The Standing Labour Committee’s main function is to consider and determine such
questions as may be referred to it by the Plenary Conference or the Central
Government and to render advice, taking into account the suggestions made by various
governments, workers and employers.
• Code of Discipline
The Code of Discipline is a set of self-imposed mutually agreed voluntary principles of
discipline and relations between the management and workers in the industry.In view of
growing industrial conflict, the Fifteenth Indian Labour Conference agreed that there
should be a set of general principles of discipline, which should be adopted by labour
and management voluntarily. To evolve such a set of principles, a tripartite sub-
committee was set up. The resulting draft was discussed at Standing Labour Committee
meeting in October 1957. At the Sixteenth Indian Labour Conference held in 1958, the
final form of the Code of Discipline was approved. The details of the code are discussed
later.As of now please understand that there are three sets of principles in the Code Of
Discipline. The first set of principles is for the management and the union. The second
set is for the Management and the third one is for the union
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Head Quarters and 253 Officers in the field. The offices of these Officers are spread
over different parts of the country with zonal, regional and unit level formations.
Functions of the organisation:
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Dunlop's model identifies three key factors to be considered in conducting an analysis of
the management-labor relationship:
Dunlop emphasizes the core idea of systems by saying that the arrangements in the
field of industrial relations may be regarded as a system in the sense that each of them
more or less intimately affects each of the others so that they constitute a group of
arrangements for dealing with certain matters and are collectively responsible for certain
results”. In effect - Industrial relations is the system which produces the rules of the
workplace. Such rules are the product of interaction between three key “actors” –
workers/unions, employers and associated organizations and government The Dunlop’s
model gives great significance to external or environmental forces. In other words,
management, labor, and the government possess a shared ideology that defines their
roles within the relationship and provides stability to the system.
Prior to 1991, the industrial relations system in India sought to control conflicts and
disputes through excessive labor legislations. These labor laws were protective in
nature and covered a wide range of aspects of workplace industrial relations like laws
on health and safety of labors, layoffs and retrenchment policies, industrial disputes and
the like. The basic purpose of these laws was to protect labors. However, these
IIMT COLLEGE OF MANAGEMENT
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protectionist policies created an atmosphere that led to increased inefficiency in firms,
over employment and inability to introduce efficacy. With the coming of globalization,
the 40 year old policy of protectionism proved inadequate for Indian industry to remain
competitive as the lack of flexibility posed a serious threat to manufacturers because
they had to compete in the international market.
With the advent of liberalization in1992, the industrial relations policy began to change.
Now, the policy was tilted towards employers. Employers opted for workforce reduction,
introduced policies of voluntary retirement schemes and flexibility in workplace also
increased. Thus, globalization brought major changes in industrial relations policy in
India. The changes can be summarized as follows:
Collective bargaining in India has mostly been decentralized, but now in sectors
where it was not so, are also facing pressures to follow decentralization.
Some industries are cutting employment to a significant extent to cope with the
domestic and foreign competition e.g. pharmaceuticals. On the other hand, in
other industries where the demand for employment is increasing are
experiencing employment growths.
The number of local and enterprise level unions has increased and there is a
significant reduction in the influence of the unions.
Under pressure some unions and federations are putting up a united front e.g.
banking.
Another trend is that the employers have started to push for internal unions i.e.
no outside affiliation.
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HR policies and forms of work are emerging that include, especially in multi-
national companies, multi-skills, variable compensation, job rotation etc. These
new policies are difficult to implement in place of old practices as the institutional
set up still needs to be changed.
Perspective of IR
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The emphasis is on good relationships and sound terms and conditions of
employment.
Staffing policies should try to unify effort, inspire and motivate employees.
The organization's wider objectives should be properly communicated and
discussed with staff.
Reward systems should be so designed as to foster to secure loyalty and
commitment.
Line managers should take ownership of their team/staffing responsibilities.
Staff-management conflicts - from the perspective of the unitary framework - are
seen as arising from lack of information, inadequate presentation of
management's policies.
The personal objectives of every individual employed in the business should be
discussed with them and integrated with the organization’s needs
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Pluralistic-Perspective : In pluralism the organization is perceived as being made
up of powerful and divergent sub-groups - management and trade unions. This
approach sees conflicts of interest and disagreements between managers and workers
over the distribution of profits as normal and inescapable. Consequently, the role of
management would lean less towards enforcing and controlling and more toward
persuasion and co-ordination. Trade unions are deemed as legitimate representatives
of employees. Conflict is dealt by collective bargaining and is viewed not necessarily as
a bad thing and if managed could in fact be channeled towards evolution and positive
change. Realistic managers should accept conflict to occur. There is a greater
propensity for conflict rather than harmony. They should anticipate and resolve this by
securing agreed procedures for settling disputes.
The implications of this approach include:
The firm should have industrial relations and personnel specialists who advise
managers and provide specialist services in respect of staffing and matters
relating to union consultation and negotiation.
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Wages (costs to the capitalist) would be minimized to a subsistence level.
Capitalists and workers would compete/be in contention to win ground and establish
their constant win-lose struggles would be evident.
This perspective focuses on the fundamental division of interest between capital and
labor, and sees workplace relations against this background. It is concerned with the
structure and nature of society and assumes that the conflict in employment relationship
is reflective of the structure of the society. Conflict is therefore seen as inevitable and
trade unions are a natural response of workers to their exploitation by capital.
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INDUSTRIAL DISPUTE
Industrial disputes are organised protests against existing terms of employment
or conditions of work. According to the Industrial Dispute Act, 1947, an Industrial dispute means
“Any dispute or difference between employer and employer or between employer and workmen or
between workmen and workmen, which is connected with the employment or non-employment or
terms of employment or with the conditions of labour of any person”
In practice, Industrial dispute mainly refers to the strife between employers and their
employees. An Industrial dispute is not a personal dispute of any one person. It generally affects a large
number of workers’ community having common interests.
Prevention of Industrial Disputes in Barauni Refinery
The consequences of an Industrial dispute will be harmful to the owners of industries, workers,
economy and the nation as a whole, which results in loss of productivity, profits, market share and even
closure of the plant. Hence, Industrial disputes need to be averted by all means.
Prevention of Industrial disputes is a pro-active approach in which an organisation
undertakes various actions through which the occurrence of Industrial disputes is prevented. Like the
old saying goes, “prevention is better then cure”.
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1. Model Standing Orders: Standing orders define and regulate terms and conditions of
employment and bring about uniformity in them. They also specify the duties and
responsibilities of both employers and employees thereby regulating standards of their
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behaviour. Therefore, standing orders can be a good basis for maintaining harmonious relations
between employees and employers.
Under Industrial Dispute Act, 1947, every factory employing 100 workers or more is required to
frame standing orders in consultation with the workers. These orders must be certified and
displayed properly by the employer for the information of the workers.
2. Code of Industrial discipline: The code of Industrial discipline defines duties and responsibilities
of employers and workers. The objectives of the code are:
3. Works Committee: The Industrial Dispute Act, 1947 has provided for the establishment of works
committees. In case of any industrial establishment in which 100 or more workers are
employed, a works committee consisting of employees and workers is to be constituted; it shall
be the duty of the Works Committee to promote measures for securing and preserving amity
and good relations among the employees and workers.
5. Suggestion Schemes:
6. Joint Councils:
8. Labour welfare officer: The factories Act, 1948 provides for the appointment of a labour welfare
officer in every factory employing 500 or more workers. The officer looks after all facilities in the
factory provided for the health, safety and welfare of workers. He maintains liaison with both
the employer and the workers, thereby serving as a communication link and contributing
towards healthy industrial relations through proper administration of standing orders, grievance
procedure etc.
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9. Tripartite bodies: Several tripartite bodies have been constituted at central, national and state
levels. The India labour conference, standing labour committees, Wage Boards and Industries
Committees operate at the central level. At the state level, State Labour Advisory Boards have
been set up. All these bodies play an important role in reaching agreements on various labour-
related issues. The recommendations given by these bodies are however advisory in nature and
not statutory.
Conciliation Officer: The appropriate government may, by notification in the official gazette,
appoint such number of persons as it thinks fit to be the conciliation officer. The duties of a
conciliation officer are:
a) To hold conciliation proceedings with a view to arrive at amicable settlement between the
parties concerned.
b) To investigate the dispute in order to bring about the settlement between the parties
concerned.
d) To send a report to the government stating forth the steps taken by him in case no
settlement has been reached at.
2. Arbitration: A process in which a neutral third party listens to the disputing parties, gathers
information about the dispute, and then takes a decision which is binding on both the parties.
The conciliator simply assists the parties to come to a settlement, whereas the arbitrator listens
to both the parties and then gives his judgement.
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Advantages of Arbitration:
It is established by the parties themselves and therefore both parties have good faith in
the arbitration process.
It is based on mutual consent of the parties and therefore helps in building healthy
Industrial Relations.
Disadvantages:
Arbitration is an expensive procedure and the expenses are to be shared by the labour
and the management.
b) Compulsory Arbitration: Implies that the parties are required to refer the dispute to the
arbitrator whether they like him or not. Usually, when the parties fail to arrive at a
settlement voluntarily, or when there is some other strong reason, the appropriate
government can force the parties to refer the dispute to an arbitrator.
3. Adjudication: Adjudication is the ultimate legal remedy for settlement of Industrial Dispute.
Adjudication means intervention of a legal authority appointed by the government to make a
settlement which is binding on both the parties. In other words adjudication means a mandatory
settlement of an Industrial dispute by a labour court or a tribunal. For the purpose of
adjudication, the Industrial Disputes Act provides a 3-tier machinery:
a) Labour court
b) Industrial Tribunal
c) National Tribunal
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a) Labour Court: The appropriate government may, by notification in the official gazette
constitute one or more labour courts for adjudication of Industrial disputes relating to any
matters specified in the second schedule of Industrial Disputes Act. They are:
Where an Industrial dispute has been referred to a labour court for adjudication, it shall hold its
proceedings expeditiously and shall, within the period specified in the order referring such a
dispute, submit its report to the appropriate government.
b) Industrial Tribunal: The appropriate government may, by notification in the official gazette,
constitute one or more Industrial Tribunals for the adjudication of Industrial disputes
relating to the following matters:
Wages
Rules of discipline
Retrenchment of workmen
It is the duty of the Industrial Tribunal to hold its proceedings expeditiously and to submit its
report to the appropriate government within the specified time.
c) National Tribunal: The central government may, by notification in the official gazette,
constitute one or more National Tribunals for the adjudication of Industrial Disputes in
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Matters which are of a nature such that industries in more than one state are likely
to be interested in, or are affected by the outcome of the dispute.
It is the duty of the National Tribunal to hold its proceedings expeditiously and to submit its
report to the central government within the stipulated time.
The participation may be at the shop level, departmental level or at the top level.
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The participation includes the willingness to share the responsibility of the organization by the
workers.
Features of WPM:
1. Participation means mental and emotional involvement rather than mere physical presence.
2. Workers participate in management not as individuals but collectively as a group through their
representatives.
a. Information participation: It ensures that employees are able to receive information and
express their views pertaining to the matter of general economic importance.
b. Consultative importance: Here workers are consulted on the matters of employee welfare
such as work, safety and health. However, final decision always rests with the top-level
management, as employees’ views are only advisory in nature.
e. Decisive participation: Highest level of participation where decisions are jointly taken on the
matters relating to production, welfare etc.
Objectives of WPM:
1. To establish Industrial Democracy.
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4. To strengthen labour-management co-operation and thus maintain Industrial peace and
harmony.
5. To promote increased productivity for the advantage of the organization, workers and the
society at large.
2. Works committee: Under the Industrial Disputes Act, 1947, every establishment employing
100 or more workers is required to constitute a works committee. Such a committee
consists of equal number of representatives from the employer and the employees. The
main purpose of this committee is to provide measures for securing and preserving amity
and good relations between the employer and the employees.
Functions: Works committee deals with matters of day-to-day functioning at the shop
floor level. Works committees are concerned with:
Amenities such as drinking water, canteens, dining rooms, medical and health
services.
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Works committees function actively in some organizations like Tata Steel, HLL, etc but
the progress of Works Committees in many organizations has not been very satisfactory
due to the following reasons:
Employees consider it below their dignity and status to sit alongside blue-collar
workers.
3. Joint Management Councils: Under this system Joint Management Councils are constituted
at the plant level. These councils were setup as early as 1958. These councils consist of
equal number of representatives of the employers and employees, not exceeding 12 at the
plant level. The plant should employ at least 500 workers. The council discusses various
matters relating to the working of the industry. This council is entrusted with the
responsibility of administering welfare measures, supervision of safety and health schemes,
scheduling of working hours, rewards for suggestions etc.
Wages, bonus, personal problems of the workers are outside the scope of
Joint management councils. The council is to take up issues related to accident prevention,
management of canteens, water, meals, revision of work rules, absenteeism, indiscipline
etc. the performance of Joint Management Councils have not been satisfactory due to the
following reasons:
Trade unions fear that these councils will weaken their strength as workers come
under the direct influence of these councils.
4. Work directors: Under this method, one or two representatives of workers are nominated
or elected to the Board of Directors. This is the full-fledged and highest form of workers’
participation in management. The basic idea behind this method is that the representation
of workers at the top-level would usher Industrial Democracy, congenial employee-
employer relations and safeguard the workers’ interests. The Government of India
introduced this scheme in several public sector enterprises such as Hindustan Antibiotics,
Hindustan Organic Chemicals Ltd etc. However the scheme of appointment of such a
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director from among the employees failed miserably and the scheme was subsequently
dropped.
6. Joint Councils: The joint councils are constituted for the whole unit, in every Industrial Unit
employing 500 or more workers, there should be a Joint Council for the whole unit. Only
such persons who are actually engaged in the unit shall be the members of Joint Council. A
joint council shall meet at least once in a quarter. The chief executive of the unit shall be the
chairperson of the joint council. The vice-chairman of the joint council will be nominated by
the worker members of the council. The decisions of the Joint Council shall be based on the
consensus and not on the basis of voting.
In 1977 the above scheme was extended to the PSUs like commercial and
service sector organizations employing 100 or more persons. The organizations include
hotels, hospitals, railway and road transport, post and telegraph offices, state electricity
boards.
7. Shop councils: Government of India on the 30th of October 1975 announced a new scheme
in WPM. In every Industrial establishment employing 500 or more workmen, the employer
shall constitute a shop council. Shop council represents each department or a shop in a unit.
Each shop council consists of an equal number of representatives from both employer and
employees. The employers’ representatives will be nominated by the management and
must consist of persons within the establishment. The workers’ representatives will be from
among the workers of the department or shop concerned. The total number of employees
may not exceed 12.
3. Study absenteeism in the shop or department and recommend steps to reduce it.
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4. Suggest health, safety and welfare measures to be adopted for smooth functioning of
staff.
5. Look after physical conditions of working such as lighting, ventilation, noise and dust.
6. Ensure proper flow of adequate two way communication between management and
workers.
Workers’ participation in Management in India was given importance only after Independence.
Industrial Disputes Act, 1947 was the first step in this direction, which recommended for the setting up
of works committees. The joint management councils were established in 1950 which increased the
labour participation in management. Since July 1975 the two-tier participation called shop councils at
shop level and Joint councils were introduced.
Workers’ participation in Management Bill, 1990 was introduced in Parliament which
provided scope for upliftment of workers.
Reasons for failure of Workers participation Movement in India:
1. Employers resist the participation of workers in decision-making. This is because they feel that
workers are not competent enough to take decisions.
2. Workers’ representatives who participate in management have to perform the dual roles of
workers’ spokesman and a co-manager. Very few representatives are competent enough to
assume the two incompatible roles.
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3. Generally Trade Unions’ leaders who represent workers are also active members of various
political parties. While participating in management they tend to give priority to political
interests rather than the workers’ cause.
4. Schemes of workers’ participation have been initiated and sponsored by the Government.
However, there has been a lack of interest and initiative on the part of both the trade unions
and employers.
5. In India, labour laws regulate virtually all terms and conditions of employment at the workplace.
Workers do not feel the urge to participate in management, having an innate feeling that they
are born to serve and not to rule.
6. The focus has always been on participation at the higher levels, lower levels have never been
allowed to participate much in the decision-making in the organizations.
7. The unwillingness of the employer to share powers with the workers’ representatives, the
disinterest of the workers and the perfunctory attitude of the government towards participation
in management act as stumbling blocks in the way of promotion of participative management.
2. Employers and workers should agree on the objectives of the industry. They should recognize
and respect the rights of each other.
3. Workers and their representatives should be provided education and training in the philosophy
and process of participative management. Workers should be made aware of the benefits of
participative management.
4. There should be effective communication between workers and management and effective
consultation of workers by the management in decisions that have an impact on them.
5. Participation should be a continuous process. To begin with, participation should start at the
operating level of management.
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6. A mutual co-operation and commitment to participation must be developed by both
management and labour.
Modern scholars are of the mind that the old adage “a worker is a worker, a manager is a manager;
never the twain shall meet” should be replaced by “managers and workers are partners in the
progress of business”
Good relations between the employer and employees are essential for the success of industry. In
order to maintain good relations, it is necessary that industrial disputes are settled quickly and
amicably. One of the efficient methods of resolving industrial disputes and deciding the
employment conditions is Collective Bargaining. Industrial disputes essentially refer to
differences or conflicts between employers and employees.
Collective Bargaining is a process in which the management and employee
representatives meet and negotiate the terms and conditions of employment for mutual benefit.
Collective bargaining involves discussion and negotiation between two groups as to the terms
and conditions of employment. It is termed Collective because both the employer’s negotiators
and the employees act as a group rather than individuals. It is known as Bargaining because the
method of reaching an agreement involves proposals and counter-proposals, offers and counter
offers. There should be no outsiders involved in the process of collective bargaining.
According to Walton and McKersie the process of Collective Bargaining consists of four types
of activities:
1) Distributive Bargaining: It involves haggling over the distribution of surplus. Various
activities involved in this activity are wages, salaries, bonus and other financial issues. In
this activity, both the parties face a win/lose situation.
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2) Integrative Bargaining: Also known as Interest-Based Bargaining, issues which are not
damaging to either party are discussed. It is a negotiation strategy in which both the
parties collaborate to find a win-win solution to their problems. This strategy focuses on
developing mutually beneficial agreements based on the interests of the disputants. Issues
brought up may be better job evaluation procedures, better performance appraisal
methods or training programmes etc.
2. To protect the interests of the workers through collective action and by preventing
unilateral actions from being taken by the employer.
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3. It is a continuous process, which provides a mechanism for continuous negotiations and
discussions between management and the trade unions.
6. It is a two-way process. It is a mutual give and take rather than a take home all method of
arriving at a solution to a dispute.
Preparation for
Negotiation
Negotiation
Negotiated Agreement
Ratification of Agreement
Implementation of Agreement
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1. Preparation for Negotiation: Preparation for negotiation in Collective Bargaining is as important
as the negotiation process itself. Upto 83% of the outcomes are influenced by pre-negotiation
process. Such preparation is required for both management as well as the union representatives.
From the management’s point of view, pre-negotiation preparation is required as:
Draft for likely decisions should be prepared in advance so that the final agreement draft
can be prepared as soon as the negotiation process is over.
From the employees’ side also, preparation is required for the following reasons:
The union should collect the information related to the financial position of the
company and their ability to pay the employees.
The union must also be aware of the various practices followed by other companies in
the same region or industry.
The union must assess the attitudes and expectations of the employees over concerned
issues so that the outcome of negotiations does not face any resistance from them.
2. Identifying issues for Bargaining: The second step in bargaining process is the determination of
issues which will be taken up for negotiations. The different types of issues are:
Wage-related issues: Include wage or salary revision, allowance for meeting increased
cost of living like Dearness Allowance (D.A), financial perks, incentives etc.
Supplementary economic benefits: These include pension plans, gratuity plans, accident
compensation, health insurance plans, paid holidays etc.
The wage and benefits issues are the ones which receive the greatest amount of attention on
the bargaining table.
3. Negotiation: When the first two steps are completed, both parties engage in actual negotiation
process at a time and place fixed for the purpose. There a re two types of negotiations:
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Boulwarism: In this method, the management themselves takes the initiative to find out
through comprehensive research and surveys the needs of the employees. Based on the analysis
of the findings, the company designs its own package based on the issues to be bargained.
Thereafter, a change is incorporated only when new facts are presented by the employees or
their unions.
Continuous Bargaining: Involves parties to explore particular bargaining problems in joint
meetings over a long period of time, some throughout the life of each agreement. The basic
logic behind this method is that all persistent issues can be addressed through continuous
negotiation over a period of time. The success of negotiations depends on the skills and abilities
of the negotiators.
4. Initial negotiated agreement: When two parties arrive at a mutually acceptable agreement either
in the initial stage or through overcoming negotiation breakdown, the agreement is recorded with
a provision that the agreement will be formalized after the ratification by the respective
organizations.
6. Implementation of agreement: Signing the agreement is not the end of collective bargaining,
rather it is the beginning of the process when the agreement is finalized, it becomes operational
from the date indicated in the agreement. The agreement must be implemented according to the
letter and spirit of the provisions made by the agreement agreed to by both parties. The HR
manager plays a crucial role in the day-to-day administration implementation.
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CHAPER – 3
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RESEARCH
METHODOLOGY
RESEARCH DESIGN
Meaning of research
“Research in common parlance refers to a search for knowledge”. Research can be explained as a
movement, a movement from known to unknown. It is actually a voyage of discovery.
Research always starts with a question or problem.
Its purpose is to find answers to questions through the application to the scientific
method.
It is a systematic and intensive study directed towards a more complete knowledge of the
subject studied.
So Research is scientific and systematic search for gaining information and knowledge on a specific
topic or phenomena.
Research Design
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“Research Design is the plan and structure of investigation so conceived as to obtain answers
to research questions.”
Nature of Research
Descriptive Research design is used for study.
Descriptive research as the name suggests is designed to describe something – for example the
characteristics of users of a given product ; the degree to which product use varies with income, age,
sex or other characteristics; or the number who saw a specific television commercial.
To be of maximum benefit, a descriptive study must only collect data for a definite purpose.
Your objective and understanding should be clear and specific. It is a kind of survey method.
This project study is related with the inventory management so the data is collected in this regard
only.
I studied the various types of inventory through out the training period.
TYPES OF DATA
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This project is mainly based on the secondary data and information beside this primary data is also
used.
1) Primary data:- primary data are to be collected by the researcher , they are not present in
reports or journals etc. and can be collected through a number of method which can be classified as
follow
Primary data for my project : The primary data for my research is the dispatch registers
maintained by the company to know the purchase and stock of inventory in the organization.
2) Secondary data:- Secondary data are the data collected for some purpose other than the research
situations; such data are available from the sources such as books, company reports, journals, rating
organization, census department etc.. The secondary data are readily available and therefore they are
less costly and less time consuming. Sources of secondary data are
Internets.
Book and journals.
Company reports.
Census department.
Research work of others.
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Secondary data for my project: Mainly the used in this project is secondary. The data is the
already maintained in the manuals.
SURVEY PERIOD
Survey period is of few weeks from June 14th, 2010 to July 27th, 2010. It is not enough periods for
the study to get the accurate a specific result of the study.
CHAPTER – 4
ANALYSIS
&
INTERPRETATION
IIMT COLLEGE OF MANAGEMENT
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SAMPLING PLAN
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DATA ANALYSIS AND INTERPERTATION
SATISFIED 15 37.5
DISSATISFIED 25 62.5
I. R. Rating
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70
60
50
40 satisfied
dissatisfied
30
20
10
YES 35 87.5
NO 5 12.5
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90
80
70
60
50 satsisfied
40 dissatisfied
30
20
10
0
3) Are you satisfied with the wages and incentives provided by IOCL.?
SATISFIED 30 75
DISSATISFIED 10 25
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90
80
70
60
50 satsisfied
40 dissatisfied
30
20
10
0
4) Are you satisfied with the provision of canteen at your workplace provided
by IOCL?
SATISFIED 25 62.5
DISSATISFIED 15 37.5
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70
60
50
40 satsisfied
dissatisfied
30
20
10
5) Are you satisfied with the provision of toilets at your workplace provided by
IOCL?
SATISFIED 33 82.5%
DISSATISFIED 7 17.5%
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90
80
70
60
50 satsisfied
dissatisfied
40
30
20
10
SATISFIED 32 80
DISSATISFIED 8 20
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80
70
60
50
satsisfied
40 dissatisfied
30
20
10
0
SATISFIED 17 42.5
DISSATISFIED 23 57.5
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60
50
40
satsisfied
30 dissatisfied
20
10
SATISFIED 18 45
DISSATISFIED 22 55
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60
50
40
satsisfied
30 dissatisfied
20
10
SATISFIED 8 20
DISSATISFIED 32 80
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80
70
60
50
satsisfied
40 dissatisfied
30
20
10
0
SATISFIED 5 12.5
DISSATISFIED 35 87.5
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90
80
70
60
50 satsisfied
40 dissatisfied
30
20
10
0
FINDINGS
1) 37.5% Employees are satisfied, and 62.5% dissatisfied with the working condition
provided by the IOC Ltd.
2) Majority of Employees are aware about the welfare schemes provided by the IOC Ltd.
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3) Majority of Employees are satisfied with the salary and incentives provided by the
IOC Ltd.
4) 62.5% Employees are satisfied, with the rest room facility provided by the IOC Ltd.
5) Majority of Employees are satisfied with the drinking water facility provided by the
IOC Ltd.
7) 42.5% of Employees are satisfied, 57.5% are dissatisfied with the compensation
provided by the IOC Ltd.
8) Majority of Employees are dissatisfied with the medical benefits provided by the IOC
Ltd.
9) Majority of employees are dissatisfied with the retirement benefits provided by the
IOC Ltd.
10) Majority of employees are dissatisfied with the recreation facilities provided by the
IOC Ltd.
11) 60% satisfied and remaining employees are dissatisfied with the transport facilities
provided by the IOC Ltd.
12) 40% are dissatisfied with the grievance handling procedure of the company.
LIMITATIONS
1) The sample collected is very small compared to the population of the company. Thus it may
not bring out the exact analysis.
3) It is possible that respondents might have tried to maintain consistency in terms of their
responses.
4)time of 6-8 weeks are also very less for the study.
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CONCLUSION
Indian Oil Cor. Ltd. is growing at a very good place .As from graphs it is clear that the
industrial relation operation in IOC Ltd. is effective one.There are different kind of welfare
schemes like weekly rest ,medical allowance, death relief fund are provided by the company to
the employees to maintain the industrial relation better one . Instead of all that there is also a
effective grievance handling machinery for maintaning it.
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SUGGESTIONS
If the employees are in good condition then it drives their capability to give maximum output to
the company. Indian Oil Co.Ltd. had successfully accomplished their target to uplift the
standards of the people but somewhere they lag behind to give proper insight into the true
benefits availed to the people. In this context I want to suggest some points that are more or less
based on my findings.
2) I also found that there is no medical Officer. This is needed to provide quick action in case of
any accident.
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3)there should be need of improvement in recreation facilities provided by the Indian Oil
corporation Ltd.
4)there should need to increase the retirement benefits provided by the Indian Oil Corporation
Ltd.
5)management should provide wage revision to the employees which is due from January 2007.
6)internal management should be more strong so that it can create more healthy working
conditions in the organization.
BIBLIOGRAPHY
Manual and books:
Personnel Manual by Indian oil corporation Limited..
Industrial Relations & Labour laws (fourth edition) by S C Srivastava
Personnel Management by S.K. Gupta
Human Resource Management (second edition) by V.S.P. Rao
Search Engine:
http://www.google.com
http://www.ask.com
Website:
http://www.iocl.com
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ANNEXURE
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3) Are you satisfied with the wages and incentives provided by IOC Ltd.?
a)Yes b) No
7) Are you satisfied with the medical benefits provided by IOC Ltd?
a)Yes b)No
9) Are you satisfied with the recreation facilities provided by the company?
a)Yes b)No
10)Are you satisfied with the transport facility provided to you by the IOC Ltd?
a)yes b)No
11)Is there any kind of grievance handling procedure provided to you by the IOC Ltd?
a)yes b)No
12)Are you satisfied with the grievance handling procedure provided to you by the company?
a)yes c)No
13)if there any suggestion regarding to improve the industrial relation operation in IOC
Ltd.please mention here
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IIMT COLLEGE OF MANAGEMENT
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