Compensation Management SYNOPSIS

8/10/2019 Compensation Management SYNOPSIS

1/94

A

PROJECT REPORT

COMPENSATION MANAGEMENT: AN ANALYSIS IN RESPECT

OF SALARY WITH 9THPAY REVISION IN IOCL

Submitted by

DINESH KUMARRoll No.-12!2221

In partial fulfillment of requirement For the award of thedegree Of M"A In Human Resource Management

Submitted to

Authorized Learning Centre

CAREER POINT, MATHURA

CODE 00979

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2/94

ACKNOWLEDGEMENT

It is with gratitude I acknowledge my heartiest & sincere feeling of

indebtedness to Mr. Shivkant Tiwari my project guide for valuable guidance &

whole hearted support in carrying out completion of my project



Through out my report I have tried my level best to be original & present my

own findings.

I would also like to owe special thanks to all my friends for the efforts they

have put in for making this project a reality & giving its present shape. !hole

e"perience was an eye opener for me.

I accept the sole responsibility for any possible error of omission &

commission.

I e"press my deep sense of respect to all Institute staff ofCAREER POINT# I

am also thankful to my parents for their support during my research period.

DINESH KUMARRollNo.-12!2221

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3/94

STUDENT DECLARATION

I hereby declare that the project report entitled



Submitted in partial fulllment of the requirement

for the degree of MASTERS ! "#SI$ESS

A%MI$ISTRATI$ &'RM( to Si))im Manipal#ni*er+ity, -angto) i+ my original .or) / not

+ubmitted for the a.ard of any other degree,

diploma, fello.+hip, or any other +imilar title or

pri0e+

DINESH KUMAR

12!2221


4/94

Examiner! Cer"i#$a"i%n

The project report of DINESH KUMAR



I+ appro*ed and i+ acceptable in

quality and form

Internal E3aminer+ E3ternal

E3aminer

$ame $ame

4ualication 4ualication

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5/94

Uni&er!i"' S"()' Cen"er Cer"i#$a"e

Thi+ to certify that the project report entitled



Submitted in partial fulllment of the requirement for the

degree of MASTERS ! "#SI$ESS A%MI$ISTRATI$ to Si))im

Manipal #ni*er+ity, -angto) India, thi+ report ha+ been

+ubmitted for the a.ard of any other degree, diploma,

fello.+hip, or any other +imilar title or pri0e+ and that the .or)

ha+ not been publi+hed in any journal or maga0ine

DINESH KUMAR

12!2221

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TABLE OF CONTENTS

1) COMPENSATION MANAGEMENT

2) EXECUTIVE SUMMARY

3) REVIEW LITRETURE AND PROBLEM STATEMENT

4) INTRODUCTION TO THE COMPANY

5) HISTORY OF THE COMPANY

6) OBJECTIVE OF THE PROPOSED STUDY

) RESEARCH METHODOLGY

!) SCOPE"RELEVANCE OF PROPOSED STUDY

#) GLOBAL SCENERIO

1$) INDIAN OIL CORPORATION LTD IN NORTH EAST

REGION% GUWAHATI REFINERY

11) DATA INTERPRETATION AND ANALYSIS

12) FINDINGS OF THE SURVEY

&) CONCLUSION

') RECOMMENDATION ( SUGGESTION

13) REFERENCE

14) APPENDIX

UESTIONNAIRE

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WHAT IS COMPENSATION MANAGEMENT*

Compensaton s pa!ment n t"e #o$m o# "o%$&! 'a(es o$ ann%a& sa&a$! )om*ne+

't" *ene#ts s%)" as ns%$an)e, -a)aton, sto). optons, et)/ t"at )an post-e&! o$

ne(at-e&! a##e)t an emp&o!ee0s 'o$. pe$#o$man)e/

An +ea& )ompensaton mana(ement s!stem '&& "e&p !o% s(n#)ant&! *oost t"e

pe$#o$man)e o# !o%$ emp&o!ees an+ )$eate a mo$e en(a(e+ 'o$.#o$)e t"at1s '&&n( to

(o t"e e2t$a m&e #o$ !o%$ o$(an3aton/ S%)" a s!stem s"o%&+ *e 'e&&4+e#ne+ an+

%n#o$m an+ s"o%&+ app&! to a&& &e-e&s o# t"e o$(an3aton as a (ene$a& s!stem// P&%s

!o%1&& en5o! )&ea$e$ -s*&t! nto n+-+%a& emp&o!ee pe$#o$man)e '"en t )omes

tme to ma.e )$t)a& )ompensaton p&annn( +e)sons/

Wt" e##e)t-e )ompensaton mana(ement !o%1&& a&so en5o! )&ea$e$ -s*&t! nto

n+-+%a& emp&o!ee pe$#o$man)e '"en t )omes tme to ma.e )$t)a& )ompensaton

p&annn( +e)sons/ T"ese pe$#o$man)e app$asa&s assst n +ete$mnn( )ompensaton

an+ *ene#ts, *%t t"e! a$e a&so nst$%menta& n +ent#!n( 'a!s to "e&p n+-+%a&s

mp$o-e t"e$ )%$$ent postons an+ p$epa$e #o$ #%t%$e oppo$t%ntes/

D*+,-,.,/-

Compensaton s a s!stemat) app$oa)" to p$o-+n( moneta$! -a&%e to emp&o!ees n

e2)"an(e #o$ 'o$. pe$#o$me+/ Compensaton ma! a)"e-e se-e$a& p%$poses assstn(

n $e)$%tment, 5o* pe$#o$man)e, an+ 5o* sats#a)ton/

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:hat i+ ;M


10/94

T'+e! % C%m+en!a"i%n

;ompen+ation pro*ided to employee+ can direct in the form of monetary

benet+ and>or indirect in the form of non?monetary benet+ )no.n a+

per)+, time o@, etc ;ompen+ation doe+ not include only +alary but it i+ the

+um total of all re.ard+ and allo.ance+ pro*ided to the employee+ in

return for their +er*ice+ If the compen+ation o@ered i+ e@ecti*ely

managed, it contribute+ to high organi0ational producti*ity

%irect ;ompen+ation

Indirect ;ompen+ation

Nee) % C%m+en!a"i%n Mana-emen"

A good compen+ation pac)age i+ important to moti*ate theemployee+ to increa+e the organi0ational producti*ity

#nle++ compen+ation i+ pro*ided no one .ill come and .or) for the

organi0ation Thu+, compen+ation help+ in running an organi0ation

e@ecti*ely and accompli+hing it+ goal+

Salary i+ ju+t a part of the compen+ation +y+tem, the employee+

ha*e other p+ychological and +elf?actuali0ation need+ to fulll Thu+,

compen+ation +er*e+ the purpo+e

The mo+t competiti*e compen+ation .ill help the organi0ation to

attract and +u+tain the be+t talent The compen+ation pac)age

+hould be a+ per indu+try +tandard+

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11/94

S.0&.*, C/*-&.,/-

St$ate() )ompensaton s +ete$mnn( an+ p$o-+n( t"e )ompensaton pa).a(es to

t"e emp&o!ees t"at a$e a&(ne+ 't" t"e *%sness (oa&s an+ o*5e)t-es/ In to+a!1s

)ompett-e s)ena$o o$(an3atons "a-e to ta.e spe)a& meas%$es $e(a$+n(

)ompensaton o# t"e emp&o!ees so t"at t"e o$(an3atons $etan t"e -a&%a*&eemp&o!ees/ T"e )ompensaton s!stems "a-e )"an(e+ #$om t$a+tona& ones to st$ate()

)ompensaton s!stems/

W.a" i! COMPENSATION MANAGEMENT*****

Compensaton s pa!ment n t"e #o$m o# "o%$&! 'a(es o$ ann%a& sa&a$! )om*ne+

't" *ene#ts s%)" as ns%$an)e, -a)aton, sto). optons, et)/ t"at )an post-e&! o$

ne(at-e&! a##e)t an emp&o!ee0s 'o$. pe$#o$man)e/

An +ea& )ompensaton mana(ement s!stem '&& "e&p !o% s(n#)ant&! *oost t"e

pe$#o$man)e o# !o%$ emp&o!ees an+ )$eate a mo$e en(a(e+ 'o$.#o$)e t"at1s '&&n( to

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12/94

(o t"e e2t$a m&e #o$ !o%$ o$(an3aton/ S%)" a s!stem s"o%&+ *e 'e&&4+e#ne+ an+

%n#o$m an+ s"o%&+ app&! to a&& &e-e&s o# t"e o$(an3aton as a (ene$a& s!stem// P&%s

!o%1&& en5o! )&ea$e$ -s*&t! nto n+-+%a& emp&o!ee pe$#o$man)e '"en t )omes

tme to ma.e )$t)a& )ompensaton p&annn( +e)sons/

Wt" e##e)t-e )ompensaton mana(ement !o%1&& a&so en5o! )&ea$e$ -s*&t! nto

n+-+%a& emp&o!ee pe$#o$man)e '"en t )omes tme to ma.e )$t)a& )ompensaton

p&annn( +e)sons/ T"ese pe$#o$man)e app$asa&s assst n +ete$mnn( )ompensaton

an+ *ene#ts, *%t t"e! a$e a&so nst$%menta& n +ent#!n( 'a!s to "e&p n+-+%a&s

mp$o-e t"e$ )%$$ent postons an+ p$epa$e #o$ #%t%$e oppo$t%ntes/

D*+,-,.,/-

Compensaton s a s!stemat) app$oa)" to p$o-+n( moneta$! -a&%e to emp&o!ees n

e2)"an(e #o$ 'o$. pe$#o$me+/ Compensaton ma! a)"e-e se-e$a& p%$poses assstn(

n $e)$%tment, 5o* pe$#o$man)e, an+ 5o* sats#a)ton/

T* /+ C/*-&.,/- M&-&**-.

D,0*. C/*-&.,/-7

6$e)t )ompensaton $e#e$s to moneta$! *ene#ts o##e$e+ an+ p$o-+e+ to

emp&o!ees n $et%$n o# t"e se$-)es t"e! p$o-+e to t"e o$(an3aton/ T"e moneta$!

*ene#ts n)&%+e *as) sa&a$!, "o%se $ent a&&o'an)e, )on-e!an)e, &ea-e t$a-e&

a&&o'an)e, me+)a& $em*%$sements, spe)a& a&&o'an)es, *on%s, P#7G$at%t!, et)/

T"e! a$e (-en at a $e(%&a$ nte$-a& at a +e#nte tme/

B&, S&8&0

Sa&a$! s t"e amo%nt $e)e-e+ *! t"e emp&o!ee n &e% o# t"e 'o$. +one *! "m7"e$

#o$ a )e$tan pe$o+ sa! a +a!, a 'ee., a mont", et)/ It s t"e mone! an emp&o!ee

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13/94

$e)e-es #$om "s7"e$ emp&o!e$ *! $en+e$n( "s7"e$ se$-)es/

H/9* R*-. A88/:&-*

O$(an3atons et"e$ p$o-+e a))ommo+atons to ts emp&o!ees '"o a$e #$om

+##e$ent state o$ )o%nt$! o$ t"e! p$o-+e "o%se $ent a&&o'an)es to ts emp&o!ees/

T"s s +one to p$o-+e t"em so)a& se)%$t! an+ mot-ate t"em to 'o$./

C/-;*&-*

O$(an3atons p$o-+e #o$ )a* #a)&tes to t"e$ emp&o!ees/ Fe' o$(an3atons a&so

p$o-+e -e")&es an+ pet$o& a&&o'an)es to t"e$ emp&o!ees to mot-ate t"em/

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14/94

L*&* T0&*8 A88/:&-*

T"ese a&&o'an)es a$e p$o-+e+ to $etan t"e *est ta&ent n t"e o$(an3aton/ T"e

emp&o!ees a$e (-en a&&o'an)es to -st an! p&a)e t"e! 's" 't" t"e$ #am&es/

T"e a&&o'an)es a$e s)a&e+ as pe$ t"e poston o# emp&o!ee n t"e o$(an3aton/

M*


15/94

L*&* P/8,

It s t"e $("t o# emp&o!ee to (et a+e%ate n%m*e$ o# &ea-e '"&e 'o$.n( 't" t"e

o$(an3aton/ T"e o$(an3atons p$o-+e #o$ pa+ &ea-es s%)" as, )as%a& &ea-es,

me+)a& &ea-es ;s). &ea-e


16/94

I-90&-*

O$(an3atons a&so p$o-+e #o$ a))+enta& ns%$an)e an+ e ns%$an)e #o$ emp&o!ees/

T"s (-es t"em t"e emotona& se)%$t! an+ t"e! #ee& t"emse&-es -a&%e+ n t"e

o$(an3aton/

L*&* T0&*8

T"e emp&o!ees a$e p$o-+e+ 't" &ea-es an+ t$a-e& a&&o'an)es to (o #o$ "o&+a! 't"

t"e$ #am&es/ Some o$(an3atons a$$an(e #o$ a to%$ #o$ t"e emp&o!ees o# t"e

o$(an3aton/ T"s s %s%a&&! +one to ma.e t"e emp&o!ees st$ess #$ee/

R*.,0**-. B*-*+,.

O$(an3atons p$o-+e #o$ penson p&ans an+ ot"e$ *ene#ts #o$ t"e$ emp&o!ees '")"

*ene#ts t"em a#te$ t"e! $et$e #$om t"e o$(an3aton at t"e p$es)$*e+ a(e/

H/8,


17/94

most 'ante+ "o&+a! spots/ T"e o$(an3atons ma.e s%$e t"at t"e emp&o!ees +o not

#a)e an! .n+ o# +##)%&tes +%$n( t"e$ sta! n t"e (%est "o%se/

F8*>,'8* T,,-

O$(an3atons p$o-+e #o$ #&e2*&e tmn(s to t"e emp&o!ees '"o )annot )ome to 'o$.

+%$n( no$ma& s"#ts +%e to t"e$ pe$sona& p$o*&ems an+ -a&+ $easons/

IMPORTANCE O/ COMPENSATION

Compensaton an+ Re'a$+ s!stem p&a!s -ta& $o&e n a *%sness o$(an3aton/

Sn)e, amon( #o%$ Ms, /e/ Men, Mate$a&, Ma)"ne an+ Mone!, Men "as *een

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18/94

most mpo$tant #a)to$, t s mposs*&e to ma(ne a *%sness p$o)ess 't"o%t Men/

E-e$! #a)to$ )ont$*%tes to t"e p$o)ess o# p$o+%)ton7*%sness/ It e2pe)ts $et%$n

#$om t"e *%sness p$o)ess s%)" as $ent s t"e $et%$n e2pe)te+ *! t"e &an+&o$+,

)apta&st e2pe)ts nte$est an+ o$(an3e$ /e/ ent$ep$ene%$ e2pe)ts p$o#ts/ Sm&a$&!

t"e &a*o%$ e2pe)ts 'a(es #$om t"e p$o)ess/

La*o%$ p&a!s -ta& $o&e n *$n(n( a*o%t t"e p$o)ess o# p$o+%)ton7*%sness n

moton/ T"e ot"e$ #a)to$s *en( "%man, "as e2pe)tatons, emotons, am*tons an+

e(os/

La*o%$ t"e$e#o$e e2pe)ts to "a-e #a$ s"a$e n t"e *%sness7p$o+%)ton p$o)ess/

T"e$e#o$e a #a$ )ompensaton s!stem s a m%st #o$ e-e$! *%sness o$(an3aton/

T"e #a$ )ompensaton s!stem '&& "e&p n t"e #o&&o'n(:

o An +ea& )ompensaton s!stem '&& "a-e post-e mpa)t on t"e e##)en)!

an+ $es%&ts p$o+%)e+ *! emp&o!ees/ It '&& en)o%$a(e t"e emp&o!ees to

pe$#o$m *ette$ an+ a)"e-e t"e stan+a$+s #2e+/

o It '&& en"an)e t"e p$o)ess o# 5o* e-a&%aton/ It '&& a&so "e&p n settn( %p

an +ea& 5o* e-a&%aton an+ t"e set stan+a$+s 'o%&+ *e mo$e $ea&st) an+

a)"e-a*&e/

o S%)" a s!stem s"o%&+ *e 'e&& +e#ne+ an+ %n#o$m/ It '&& *e app&! to a&&

t"e &e-e&s o# t"e o$(an3aton as a (ene$a& s!stem/

o T"e s!stem s"o%&+ *e smp&e an+ #&e2*&e so t"at e-e$! emp&o!ee 'o%&+ *e

a*&e to )omp%te "s o'n )ompensaton $e)e-a*&e/

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19/94

o It s"o%&+ *e eas! to mp&ement, s"o%&+ not $es%&t n e2p&otaton o#

'o$.e$s/

o It '&& $ase t"e mo$a&e, e##)en)! an+ )oope$aton amon( t"e 'o$.e$s/ It,

*en( 5%st an+ #a$ 'o%&+ p$o-+e sats#a)ton to t"e 'o$.e$s/

o S%)" s!stem 'o%&+ "e&p mana(ement n )omp&!n( 't" t"e -a$o%s &a*o$

a)ts/

o S%)" s!stem s"o%&+ a&so so&-e +sp%tes *et'een t"e emp&o!ee %non an+

mana(ement/

o T"e s!stem s"o%&+ #o&&o' t"e mana(ement p$n)p&e o# e%a& pa!/

o It s"o%&+ mot-ate an+ en)o%$a(ement t"ose '"o pe$#o$m *ette$ an+

s"o%&+ p$o-+e oppo$t%ntes #o$ t"ose '"o 's" to e2)e&/

o So%n+ Compensaton7Re'a$+ S!stem *$n(s pea)e n t"e $e&atons"p o#

emp&o!e$ an+ emp&o!ees/

o It ams at )$eatn( a "ea&t"! )ompetton amon( t"em an+ en)o%$a(es

=>emp&o!ees to 'o$. "a$+ an+ e##)ent&!/

o T"e s!stem p$o-+es ($o't" an+ a+-an)ement oppo$t%ntes to t"e

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20/94

+ese$-n( emp&o!ees/

o T"e pe$#e)t )ompensaton s!stem p$o-+es p&at#o$m #o$ "app! an+ sats#e+

'o$.#o$)e/ T"s mnm3es t"e &a*o%$ t%$no-e$/ T"e o$(an3aton en5o!s

t"e sta*&t!/

o T"e o$(an3aton s a*&e to $etan t"e *est ta&ent *! p$o-+n( t"em

a+e%ate )ompensaton t"e$e*! stoppn( t"em #$om s't)"n( o-e$ to

anot"e$ 5o*/

o T"e *%sness o$(an3aton )an t"n. o# e2panson an+ ($o't" # t "as t"e

s%ppo$t o# s.&%&, ta&ente+ an+ "app! 'o$.#o$)e/

o T"e so%n+ )ompensaton s!stem s "a&&ma$. o# o$(an3aton1s s%))ess an+

p$ospe$t!/ T"e s%))ess an+ sta*&t! o# o$(an3aton s meas%$e+ 't" pa!4

pa).a(e t p$o-+es to ts emp&o!ees/

COMPENSATION MANAGEMENT7 SUCCESS FACTORS

Man! o# to+a!0s seno$ e2e)%t-es name pa!4#o$4pe$#o$man)e as t"e most

)$t)a& too& n a)"e-n( t"e ($eatest #nan)a& $es%&ts at t"e$ )ompanes/

8%t, mp&ementn( $ea&, pa!4#o$4pe$#o$man)e s ease$ sa+ t"an +one/

S%))ess Fa)to$s ma.es t eas! #o$ !o% to %).&! an+ eas&! mp&ement a

po'e$#%& pa!4#o$4pe$#o$man)e st$ate(!/ 8! $e'a$+n( ($eat e2e)%ton,

!o% '&& *ette$ $etan !o%$ top ta&ent an+ +$-e o$(an3atona&

pe$#o$man)e t"at e2)ee+s a&& e2pe)tatons/ P&%s, !o%0&& en5o! )&ea$e$

2C


21/94

-s*&t! nto n+-+%a& emp&o!ee pe$#o$man)e '"en t )omes tme to

ma.e )$t)a& )ompensaton p&annn( +e)sons/

Tr(e +a'%r+er%rman$e $(1"(re im+r%&e!re"en"i%n2 Employee+ .ho outperform their peer+

.ill be re.arded appropriately, feel *alued and happy

Dand more li)ely to +tay .ith your company

On-%in- $%m+1ian$e2 %e+ign your compen+ation

+trategy .ith objecti*e data and communicate it to

manager+ to +tay .ithin allocated budget+ and to

employee+ to +ho. the clear lin) bet.een

compen+ation and performance e3pectation+

3()-e" %+"imi4a"i%n2Run .hat?if +cenario+ and

in+tantly +ee ho. increa+ing merit pay to your be+t

employee+ .ould impact your budget

C%!" !a&in-!2Eliminate thou+and+ of dollar+ from

your e3pen+e column each year by ma)ing +ure

youFre not o*erpaying lo. performer+ Al+o, the ea+y?

to?u+e automated +y+tem .ill +a*e compen+ation

manager+ time and money

5er% err%r !'!"em2Manage your compen+ation in a+ecure en*ironment .ith +treamlined .or)Go.+

.here your data i+ determined *ia calculation and

eligibility engine+Deliminating pri*acy breache+ and

human calculation error+

H9&- R*/90* M&-&**-. ? B*-*+,. (

C/*-&.,/-21


22/94

In a s&%((s" e)onom!, )ompensaton s!stem (ets a ne' #o)%s *! $e'a$+n( sta$

pe$#o$me$s mo$e t"an t"e $est o# t"e pa). 3-P Compensation: Pay for

Performance In t"s a$t)&e 'e &oo. at "o' an o$(an3aton +e-e&ops a

mot-atn( an+ $e'a$+n( n)ent-e p&an/ An executive perspective onemployee benefitsE2e)%t-es sa! emp&o!ee *ene#ts "e&p )ompanes )ompete

*%t "a-e an n)omp&ete %n+e$stan+n( o# *ene#ts an+ "o' t"e! pe$#o$m/ Res%&ts o# a

M)?nse! S%$-e!/ p+#4#&e/ @B/ A$t)&e sta$ts at pa(e >@ An Overview of

Recent Trends in Incentive Pay Prorams T"s a$t)&e e2amnes

$e)ent t$en+s an+ +e-e&opments n an n)$easn(&! pop%&a$ HR p$a)t)e44n)ent-e pa!

p$o($ams/ P+#4#&e Analy!in Compensation "ataG%+e +es)$*es t"$ee

app$oa)"es t"at Fe+e$a& )ont$a)to$s ma! %se to ana&!3e t"e$ )ompensaton s!stems

ana&!ses ma! *e %se#%& n +ete$mnn( # t"e$e a$e patte$ns o# +s)$mnaton n t"e

'o$.#o$)e #o)%s s on ana&!ses o# sa&a$es o$ 'a(es, p$o)e+%$es )an *e %se+ to

ana&!3e ot"e$ #o$ms o# )ompensaton as 'e&&/ TOP Are #i$er Pay

Increases %ecessarily &etter' T"s st%+! n-est(ate+ t"e $e&atons"p

*et'een pa! n)$ease pe$)enta(es an+ pa! sats#a)ton amon( >> M8A st%+ents an+

#o%n+ t"at pa! sats#a)ton "a+ t"e &a$(est n)$ease *et'een t"$ee pe$)ent an+ se-en

pe$)ent an+ appea$e+ to &e-e& o## *et'een se-en pe$)ent an+ e&e-en pe$)ent,s%((estn( t"at t"e$e ma! *e a pont at '")" "(" pa! n)$eases ma! not ne)essa$&!

&ea+ to mo$e sats#a)ton/ In a++ton, t 'as #o%n+ t"at pa! n)$eases *et'een s2 an+

e("t pe$)ent a$e t"e mnm%m amo%nts nee+e+ #o$ pa! n)$ease sats#a)ton/ Fna&&!,

'e s%((est t"at emp&o!ees ma! not nee+ as "(" o# a pa! n)$ease to e2pe$en)e

sats#a)ton 't" t"e$ pa! n)$ease '"en p$o-+n( t"ose emp&o!ees 't" a s(na&,

s%)" as an a-e$a(e pa! n)$ease/ p+# &uildin a &etter ()*+,=>;.< p&an

sponso$s a$e ta.n( steps to ma.e t"e$ p&ans mo$e att$a)t-e to emp&o!ees n @D/an%a$! @D Compensation Plannin: T$e .ey to Profitability

T"s *oo. )an "e&p *$o.e$s )$eate e##e)t-e n+-+%a& )ompan! )ompensaton p&ans

*! (-n( t"em a *ette$ %n+e$stan+n( o# "o' )"an(es to e2stn( )ompensaton

s)"e+%&es a##e)t t"e )ompan! #nan)es as a '"o&e/ P+#4#&e D/B M8

Compensation Plans An o-e$-e', a$t)&e p$o-+e+ *! Sa&a$! So%$)e

/xplainin /xecutive Compensation Mana(e$a& Po'e$ -s/ t"e

Pe$)e-e+ Cost o# Sto). Optons/ Wo$.n( Pape$/ P+#4#&e 0lossaryO# Emp&o!ee8ene#t Te$ms Is 1our 2on-Term Incentive Plan Really

22
http://www.mercerhr.com/summary.jhtml/dynamic/idContent/1204555http://www.mercerhr.com/summary.jhtml/dynamic/idContent/1204555http://www.mercerhr.com/summary.jhtml/dynamic/idContent/1204555http://download.mckinseyquarterly.com/srbonus-2006-08.pdfhttp://download.mckinseyquarterly.com/srbonus-2006-08.pdfhttp://www.coastal.edu/business/cbj/pdfs/articles/Schraeder-IncentivePay.pdfhttp://www.coastal.edu/business/cbj/pdfs/articles/Schraeder-IncentivePay.pdfhttp://www.dol.gov/esa/regs/compliance/ofccp/compdata.htmhttp://applyhrm.asp.radford.edu/Volume%2010/MS%2010_1_%20Bhakta%20&%20Nagy.pdfhttp://applyhrm.asp.radford.edu/Volume%2010/MS%2010_1_%20Bhakta%20&%20Nagy.pdfhttp://www.businessfinancemag.com/archives/appfiles/Article.cfm?IssueID=370&ArticleID=13934http://www.businessfinancemag.com/archives/appfiles/Article.cfm?IssueID=370&ArticleID=13934http://www.compensationmasterusa.com/pdf/compplng.pdfhttp://www.salarysource.com/articles.cfmhttp://www-rcf.usc.edu/~kjmurphy/MurphyCLR.pdfhttp://www.ifebp.org/glossary/default.asphttp://www.ifebp.org/glossary/default.asphttp://www.buckconsultants.com/buckconsultants/portals/0/documents/publications/published_articles/2008/Articles_Scumer_BNA_November2008.pdfhttp://www.mercerhr.com/summary.jhtml/dynamic/idContent/1204555http://www.mercerhr.com/summary.jhtml/dynamic/idContent/1204555http://download.mckinseyquarterly.com/srbonus-2006-08.pdfhttp://download.mckinseyquarterly.com/srbonus-2006-08.pdfhttp://www.coastal.edu/business/cbj/pdfs/articles/Schraeder-IncentivePay.pdfhttp://www.coastal.edu/business/cbj/pdfs/articles/Schraeder-IncentivePay.pdfhttp://www.dol.gov/esa/regs/compliance/ofccp/compdata.htmhttp://applyhrm.asp.radford.edu/Volume%2010/MS%2010_1_%20Bhakta%20&%20Nagy.pdfhttp://applyhrm.asp.radford.edu/Volume%2010/MS%2010_1_%20Bhakta%20&%20Nagy.pdfhttp://www.businessfinancemag.com/archives/appfiles/Article.cfm?IssueID=370&ArticleID=13934http://www.compensationmasterusa.com/pdf/compplng.pdfhttp://www.salarysource.com/articles.cfmhttp://www-rcf.usc.edu/~kjmurphy/MurphyCLR.pdfhttp://www.ifebp.org/glossary/default.asphttp://www.buckconsultants.com/buckconsultants/portals/0/documents/publications/published_articles/2008/Articles_Scumer_BNA_November2008.pdf


23/94

Performance-&ased' Lon(4te$m n)ent-e p&ans ;LTIPs< t!p)a&&! p$o-+e t"e

&a$(est )omponent o# seno$ e2e)%t-es1 )ompensaton, most o#ten t"$o%(" one o$

mo$e o# t"$ee e%t!4*ase+ t!pes: sto). optons, $est$)te+ sto)., an+ '"at a$e o#ten

)a&&e+ pe$#o$man)e s"a$es/

T"s a$t)&e #o)%ses on pe$#o$man)e s"a$es, an n)$easn(&! )ommon #o$m o#

pe$#o$man)e4*ase+ LTIPs, an+ t"e$ mpo$tan)e as a ma5o$ )omponent o# e2e)%t-e

pa!/ We *e&e-e t"at pe$#o$man)e s"a$es esta*&s" t"e st$on(est &n. n t!n(

)ompensaton to pe$#o$man)e/ T"e a$t)&e a&so p$esents +ata on t"e n)$easn(

p$e-a&en)e o# t"ese t!pes o# p&ans/ p+#

2abor tatisticsE2tens-e )omp&aton o# statst)s an+ +ata 4isc5 Issues

O-e$-e' on some )ompensaton4 an+ *ene#ts4$e&ate+ ss%es: pa! e%t!, -a$a*&e pa!

s!stems, sto). p&ans, $et$ement p&ans, "ea&t" an+ 'ea$e p&ans, pa+ tme o##,

(o-e$nment man+ate+ *ene#ts Offer a C$oice of Compensation Plans

to 0ain a Competitive Advantae p+#4#&e @D Orani!ational

Pay 4ix T"e Imp&)atons o# Va$o%s T"eo$et)a& Pe$spe)t-es #o$ t"e

Con)ept%a&3aton an+ Meas%$ement o# In+-+%a& Pa! Components/ P+#4#&e

Orani!ation-wide &road-based Incentives: Rational T$eory

and /vidence 6espte t"e '+esp$ea+ %se o#n)ent-e pa!, t"e$e s &mte+

e-+en)e a*o%t '"at #a)to$s n#&%en)e ts o$(an3aton4'+e, *$oa+4*ase+ app&)aton/

P+#4#&e Payin for Performance: An Overloo,ed Opportunity

Sa&es #o$)e +ep&o!ment an+ )ompensaton a$e amon( t"e most po'e$#%& means a

)ompan! "as to mp$o-e ($o't", ma$.et s"a$e, an+ p$o#ta*&t!/ Yet #e' )ompanes

ta.e t"e tme to a&(n t"e$ pa!o%t s!stems 't" )%$$ent st$ate(!/ T"e a%t"o$ e2p&ans

"o' to +es(n a s%))ess#%& )ompensaton p&an t"at s p$e)se, #a$, an+ smp&e/ p+#4#&e

Performance based PayT"e Va&%e o# Pe$#o$man)e48ase+ Pa! n t"e Wa$

#o$ Ta&ent, p+#4+o'n&oa+ -e$son Performance tandards in Incentive

ContractsResea$)" n n)ent-es "as #o)%se+ on pe$#o$man)e meas%$es an+ pa!4

pe$#o$man)e senst-tes *%t "as &a$(e&! (no$e+ t"e pe$#o$man)e stan+a$+, '")"

(ene$ates mpo$tant n)ent-es '"ene-e$ p&an pa$t)pants )an n#&%en)e t"e stan+a$+4

settn( p$o)ess/ Wo$.n( pape$/ p+#4#&e Promise and Peril in

2
http://www.buckconsultants.com/buckconsultants/portals/0/documents/publications/published_articles/2008/Articles_Scumer_BNA_November2008.pdfhttp://www.bls.gov/data/http://www.auxillium.com/pay.shtmlhttp://www.compensationmasterusa.com/pdf/trends_winter03.pdfhttp://www.compensationmasterusa.com/pdf/trends_winter03.pdfhttp://www.ilr.cornell.edu/depts/cahrs/downloads/pdfs/workingpapers/WP02-02.pdfhttp://www.ilr.cornell.edu/depts/cahrs/downloads/pdfs/workingpapers/WP02-02.pdfhttp://www.ilr.cornell.edu/depts/cahrs/downloads/pdfs/workingpapers/WP02-05.pdfhttp://www.ilr.cornell.edu/depts/cahrs/downloads/pdfs/workingpapers/WP02-05.pdfhttp://www.bcg.com/publications/files/Paying_Performance_OfA_Nov01.pdfhttp://www.ilr.cornell.edu/depts/CAHRS/PDFs/WorkingPapers/WP99-06.pdfhttp://www-rcf.usc.edu/~kjmurphy/PerfStand.pdfhttp://www-rcf.usc.edu/~kjmurphy/PerfStand.pdfhttp://www.people.hbs.edu/bhall/NOMTalks/papers/HPPayExperimentFinal2_25.pdfhttp://www.buckconsultants.com/buckconsultants/portals/0/documents/publications/published_articles/2008/Articles_Scumer_BNA_November2008.pdfhttp://www.bls.gov/data/http://www.auxillium.com/pay.shtmlhttp://www.compensationmasterusa.com/pdf/trends_winter03.pdfhttp://www.compensationmasterusa.com/pdf/trends_winter03.pdfhttp://www.ilr.cornell.edu/depts/cahrs/downloads/pdfs/workingpapers/WP02-02.pdfhttp://www.ilr.cornell.edu/depts/cahrs/downloads/pdfs/workingpapers/WP02-02.pdfhttp://www.ilr.cornell.edu/depts/cahrs/downloads/pdfs/workingpapers/WP02-05.pdfhttp://www.ilr.cornell.edu/depts/cahrs/downloads/pdfs/workingpapers/WP02-05.pdfhttp://www.bcg.com/publications/files/Paying_Performance_OfA_Nov01.pdfhttp://www.ilr.cornell.edu/depts/CAHRS/PDFs/WorkingPapers/WP99-06.pdfhttp://www-rcf.usc.edu/~kjmurphy/PerfStand.pdfhttp://www-rcf.usc.edu/~kjmurphy/PerfStand.pdfhttp://www.people.hbs.edu/bhall/NOMTalks/papers/HPPayExperimentFinal2_25.pdf


24/94

Implementin Pay for Performance: A Report on T$irteen

%atural /xperiments6espte t"e pop%&a$t! o# pa! #o$ pe$#o$man)e p$o($ams,

-e$! &tt&e $esea$)" "as e2amne+ t"e +!nam)s an+ +&emmas asso)ate+ 't"

mp&ementn( t"ese p$o($ams/ We st%+e+ t"e mp&ementaton o# t"$teen e2pe$mentsn pa! #o$ pe$#o$man)e t"at 'e$e ntate+ *! &o)a& mana(ement n a "("4)ommtment

)ompan! ;He'&ett Pa).a$+


25/94

COMPENSATION MANAGEMENT 7 SALARY NEGOTIATION

Compensaton mana(ement )"apte$ )ontan 'a(e an+ sa&a$! aspe)t/ T"e 'o$+ sa&a$!

app&es to )ompensaton t"at s %n#o$m #$om one pe$o+ to t"e ne2t an+ +oes not

+epen+ %pon t"e n%m*e$ o# "o%$s 'o$.e+/

C/*-&.,/- M&-&**-. O'@*.,;*7

Wa(e, Compensaton an+ t"e$ a+mnst$aton

o* Sats#a)ton

La*o%$ an+ Wa(e T"eo$es

C&ass#)aton o# Wa(es

Ma)"ne$! #o$ #2n( 'a(es

o* E-a&%aton

O*5e)t-es o# 5o* e-a&%aton an+ met"o+s o# e-a&%aton

P$omotons an+ t$ans#e$s

W&* &-< S&8&0 A


26/94

$espons*&tes t"at, as a '"o&e, s $e(a$+e+ as t"e $easona*&e ass(nment to an

n+-+%a& emp&o!ee/ o* s .no'n as mpe$sona& "o'e-e$ poston s .no'n as

pe$sona&/ o* a&'a!s )ontans a poston '")" +e#nes some set o# 'o$.s/

J/' S&.,+&.,/-

o* sats#a)ton +epen+s on t"e st%atons an+ en-$onment o# 'o$. atmosp"e$e/

A))o$+n( to t"e M8A o* sats#a)ton s +ete$mne+ *! a set o# pe$sona& an+ 5o*

#a)to$s, pe$sona& #a)to$s $e&ate to 'o$.e$1s a(e, &en(t" o# se$-)e, nte&&(en)e, s.&&,

an+ ot"e$ pe$sona&t! o$ tempe$amenta& #a)to$s/

A*o%t t"e o* E-a&%aton 8$ts" Instt%te o# Mana(ement "as +e#ne+ 5o* e-a&%aton

as t"e p$o)ess o# ana&!ss an+ assessment o# 5o*s to as)e$tan $e&a*&! t"e$ $e&at-e

'o$t", %sn( t"e assessment as a *ass #o$ a *a&an)e+ 'a(e st$%)t%$e/

o* ana&!ss s t"e p$o)ess o# (ettn( n#o$maton a*o%t 5o*s spe)#)a&&!, '"at t"e

'o$.e$ +oes "o' "e (ets t +one '"! "e +oes t s.&&, e+%)aton an+ t$ann(

$e%$e+ $e&atons"ps to ot"e$ 5o*s p"!s)a& +eman+s an+ en-$onmenta&

)on+tons/

O- .* @/' *;/89.,/- *./


27/94

P(o$s Me!e$s (-e a %n%e +e#nton o# p$omoton '")" s, t"e a+-an)ement o#

an emp&o!ee to a *ette$ 5o* *ette$ n te$ms o# ($eate$ $espe)t o# pa! an+ sa&a$!/

8ette$ "o%ses o# 'o$. o$ *ette$ &o)aton o$ *ette$ 'o$.n( )on+tons4a&so ma!

)"a$a)te$3e t"e *ette$ &o)aton o$ *ette$ 'o$.n( )on+tons4a&so ma! )"a$a)te$3e t"e

*ette$ 5o* to '")" an emp&o!ee see.s p$omotons, *%t # t"e 5o* +oes not n-o&-e

($eate$ s.&& o$ $espons*&tes an+ "("e$ pa!, t s"o%&+ not *e )ons+e$e+ a

p$omotons/

On t"e S%*5e)t o# T$ans#e$ P(o$s an+ Ma!e$s a&so '$tes, t"e mo-ement o# an

emp&o!ee #$om one 5o* to anot"e$ on t"e same o))%patona& &e-e& an+ at a*o%t t"e

same &e-e& o# 'a(es o$ sa&a$!/

In t"e en+ o# t"e )"apte$ 'e )an sa! t"at Compensaton Mana(ement +ea&s not on&!

sa&a$! an+ 'a(es *%t a&so 5o* ana&!ss an+ 5o* sats#a)ton/

28


28/94

E6ECUTIE SUMMAR8

In t"e s)ena$o o# )ompett-e *%sness en-$onment, t "as *e)ome

mpo$tant #o$ a mana(ement st%+ent to e%p "mse"e$se 't" t"e

p$a)t)a& e2pos%$e o# t"e )o$po$ate 'o$&+/ It 'as ($eat p$-&e(e #o$ me to

%n+e$stan+ t"e p$a)t)a& HR aspe)ts &ea$nt n o%$ )o&&e(e )&ass$oom at

In+an O& Co$po$aton, G%'a"at/

In $e(a$+s to t"s p$o5e)t I 'as as.e+ to ana&!se t"e )ompensaton

pa).a(e n an O& In+%st$! n $espe)t to 9 t"pa! $e-son/ It 'as ana&!3e+

t"at t"e emp&o!ees 'e$e #%&&! sats#e+ n $espe)t to t"e$ n)$ement n

t"e$ sa&a$! pa).a(e/

An on&ne nte$-e' an+ te&ep"on) nte$-e' 'as *en( )on+%)te+ an+

%estonna$e 'as *en( +st$*%te+ a))o$+n(&!/

T"e #ee+*a). o# t"e $espon+ents 'as *en( %p to ma$. an+ a post-e

$esponse 'as *en( )a$$e+ o%t/

29


29/94

R*;,*: /+ 8,.*0&.90* &-< P0/'8* S.&.**-.

I# an!one o# !o% %se+ )ompensaton mana(ement n SAP HR -e$son =/ e2tenson

one o$ ea$&e$, !o% '&& .no' n t"e o&+ -e$son, t"e )ompensaton statement s )a&&e+

Tota& Compensaton Statement/ In t"e ne' Ente$p$se Compensaton Mana(ement,

t s no' )a&&e+ Compensaton Re-e' Statement/

To )on#(%$e t"e SAP Ente$p$se Compensaton Re-e' Statement, !o% 'o%&+ nee+ to

a))ess t n t"e )on#(%$aton IMG SPRO 4J Pe$sonne& Mana(ement 4J Ente$p$se

Compensaton Mana(ement 4J Compensaton Statement/

Yo% #$st "a-e to +e#ne '"at to n)&%+e n t"e Compensaton Re-e' Statement #o$)a&)%&aton/ Yo% '&& +o t"s at t"e 6ete$mne St$%)t%$e #o$ Tota& Compensaton

Statement/ T"e ne2t pe)e s to +ete$mne '"at 'a(e t!pes )ontan t"e -a&%es !o%

te&& t to n)&%+e n t"e Se&e)t Wa(e T!pe #o$ Pa! Cate(o$!/

At t"e C$eate Fo$m Fo$ Tota& Compensaton Statement, !o% '&& *e 'o$.n( 't"

Sma$t#o$m to +es(n t"e &a!o%t o# t"e #o$m %se+ '"en p$ntn( t"e statement/

Ente$p$se Compensaton Statement %ses t"e #o$m HRKECMKCRS, no to *e

)on#%se+ 't" HRKCMPKTCS %se+ *! t"e o&+ Compensaton Mana(ement/

A#te$ !o% )omp&ete+ t"e #$st D steps o%t&ne+ a*o-e, t"e = t"step s '"e$e t"e

)on#%son *e(ns/ In t"e o&+ Compensaton Mana(ement, !o% )o%&+ +ete$mne '"at

#o$m to %se+ *! t"e Tota& Compensaton Statement $epo$t t"$o%(" an ent$! n

TS/ I# !o% a$e a))ess t -a t"e IMG, t s )a&&e+ 6ete$mne Stan+a$+ Fo$m Fo$

Tota& Compensaton Statement/ T"e p$o*&em s, t"s e2a)t st$%)t%$e s a-a&a*&e n

*ot" t"e Ente$p$se Compensaton Mana(ement an+ t"e o&+ CompensatonMana(ement/ It s pontn( to t"e e2a)t same ent$!/

In t"e Compensaton Re-e' Statement ;P$o($am: RHECMKPRINTKCRS,

T$ansa)ton: PECMKPRINTKCRS


30/94

SAP, !o% '&& "ea$ n%me$o%s tmes not to )"an(e stan+a$+ SAP )o+e an+ a&'a!s

ma.e a )op! o# '"at !o% 'ant to )"an(e an+ %se t"e -e$son/ In t"s )ase,

!o% 'o%&+ "a-e to mo+#! one o# t"e t'o stan+a$+ )o+es/ Yo% "a-e to et"e$ mo+#!

t"e n)&%+e statement n t"e RHECMKPRINTKCRS )o+e to $emo-e NO46ISPLAY

n t"e se&e)ton pa$amete$ to a&&o' t"e se&e)ton s)$een to s"o' '"at #o$m t s

+e#a%&tn( an+ "a-e t"e %se$ se&e)t t"e $("t #o$m/ Anot"e$ opton s to )"an(e t"e

+e#a%&t #o$m #$om HRKECMKCRS to '"ate-e$ #o$m !o% )$eate+/

T"e se)on+ met"o+ s to not )"an(e t"e stan+a$+ p$o($am )o+e, *%t (o a"ea+ an+

mo+#! t"e HRKECMKCRS #o$m/ Ma.e a )op! o# t to to *e %se+ as *a).%p, *%t

%se t"e man HRKECMKCRS as *en( t"e man #o$m !o%1-e mo+#e+/

C


31/94

INTRODUCTION TO THE COMPAN8

INDIAN OIL CORPORATION LIMITED

HHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH

HHHHHHHHHHHH

Incorporated in 1B6B, Indian il ;orporation imited i+ a

.holly -o*ernment?o.ned company regi+tered under the

;ompanie+ Act, 1B67 It came into e3i+tence on 1+tSeptember,

1B75 a+ a re+ult of amalgamation of the er+t.hile Indian

Renerie+ td, and Indian il ;ompany and ha+ it+ regi+tered

oJce at Mumbai

The ;orporation i+ managed by "oard of %irector+ appointed

by the


32/94


33/94

;'RM .ho report+ to the re+pecti*e E%>-M


34/94

ISION, MISSION : ALUES

i!i%n

A major di*er+ied, tran+national, integrated energy company, .ith

national leader+hip and a +trong en*ironment con+cience, playing a

national role in oil +ecurity/ public di+tribution

Mi!!i%n

To achie*e international +tandard+ of e3cellence in all a+pect+ of

energy and di*er+ied bu+ine++ .ith focu+ on cu+tomer

delight through *alue of product+ and +er*ice+, and co+t reduction

To ma3imi0e creation of .ealth, *alue and +ati+faction for the

+ta)eholder+

To attain leader+hip in de*eloping, adopting and a++imilating +tate?

of? the?art technology for competiti*e ad*antage

To pro*ide technology and +er*ice+ through +u+tained Re+earch and

%e*elopment

To fo+ter a culture of participation and inno*ation for employee

gro.th and contribution

To culti*ate high +tandard+ of bu+ine++ ethic+ and Total 4uality

Management for a +trong corporate identity and brand equity

To help enrich the quality of life of the community and pre+er*e

ecological balance and heritage through a +trong en*ironment

con+cience

a1(e!

;are

Inno*ation


35/94

Tru+t

IndianOilPeople...

towards Excellence...

O'@*.,;* /+ .* 0//*< .9


36/94

R**&0 M*./


37/94

'e$e (-en on&ne %estonna$e #o$ t"e s%$-e! an+ #o$ t"e $est 'e$e )on+%)te+ an o$a&

nte$-e'/

S/*"R*8*;&-* /+ P0//*< S.9


38/94

In"r%)($"i%n "% Oi1 C%m+anie! In

UAE

The oil and ga+ +ector pro*ide+ around a third of the #AEF+ -ro++

$ational


39/94


40/94

The #AE play+ a *ital role in achie*ing +tability in international oil

mar)et+ through it+ po+iti*e and balanced attitude .ithin

5C


41/94


42/94

petrochemical companie+ &!ERTI, "R#-E( A%$; al+o o.n+

and operate+ t.o renerie+ at #mm al?$ar and Ru.ai+, the ga+

treatment plant+ at 'ab+han, ga+ pipeline di+tribution net.or) and

the chlorine indu+trie+ at #mm al?$ar

ADNOC Re!"r($"(rin-

A%$; announced a major management re+tructuring plan in

$o*ember 1BB9 +hifting the rmF+ renery and ga+ operation+ to

t.o ne. .holly?o.ned +ub+idiarie+ and bringing the number of

+ub+idiarie+ up to 18 The t.o ne. A%$; companie+, Abu %habi

il Rening ;ompany &TALREER( and the Abu %habi -a+ ;ompany&AT'EER(, .ere formally e+tabli+hed on 1B Oune 1BBB Along .ith

the creation of renery and ga+ +ub+idiarie+ the company ha+ +et up

*e bu+ine++ line directorate+ &"%+( to carry out up+tream and

do.n +tream acti*itie+ Another three directorate+ .ill pro*ide

+upport +er*ice+ for *ariou+ operation+ The ne. management

+tructure al+o create+ an e3ecuti*e committee, chaired by a chief

e3ecuti*e oJcer, to o*er+ee the companyF+ bu+ine++e+

D%1+.in Pr%?e$"

The %olphin project .a+ launched in March 1BBB follo.ing an

announcement by the #AE and 4atar of plan+ for a joint *enture

aimed at tran+porting ga+ from 4atarF+ huge re+er*e+ to indu+trial

con+umer+ in the #AE, man and other countrie+ %olphin, .hich i+

being de*eloped under the au+pice+ of the #AE @+et -roup -(,i+ intended to pro*ide a frame.or) to +timulate in*e+tment in a

52


43/94

*ariety of related indu+trie+ throughout the *alue?added ga+ chain

&!or more information +ee +ection on "u+ine++ En*ironment(

Economic foreca+ter+ predict that the #AEF+ demand for ga+ .ill

double o*er the ne3t decade

D(


44/94

The +tate?o.ned %ubai $atural -a+ ;ompany &%#-AS( i+

re+pon+ible for proce++ing natural ga+ produced in %ubai+ o@+hore

oil eld+ a+ .ell a+ the ga+ piped from Sharjah

S.ar?a.

Sharjah o.n+ 6 percent of the #AEF+ ga+ re+er*e+, mo+tly non?

a++ociated ga+ .hich i+ being utili+ed dome+tically The emirate+

mo+t important ga+ depo+it+ are at the o@+hore Mubara) eld and

the on+hore Sajaa, Mo*e yeid and Lahaif eld+ -a+ re+er*e+ are

e+timated at 1C,CCC billion cubic meter+ and around 9CC mn cfd of

ga+ are produced Sharjah+ o@+hore Mubara) eld, operated by the

local ;re+cent


45/94

Abu Shaghara in Sharjah mar)ing the beginning of


46/94

Li!" % Oi1 an) Ga! C%m+anie! in

D(


47/94

S"a"e C%m+anie!

Abu %habi $ational il ;ompany &A%$;( ha+ controlling intere+t in

21 dome+tic oil and natural ga+ companie+

@%in" en"(re!

Abu %habi ;o for n+hore il peration+ &A%;( i+ held by A%$;

&7C( and a con+ortium compri+ing "riti+h


48/94


49/94

Pe"r%1e(m Cr()e Oi1 : /(e1 in UAE

A


50/94

;ompany in %ubai engaged in rening and mar)eting of oil, +upply of jet

fuel and a*iation fuelling +er*ice+, manufacture of chemical+ and

lubricant+,


51/94

9 G(1 Oi1#e1) Dire$"%r'

Annual publication of companie+ in the oil and ga+ indu+trie+ online

+earchable *er+ion a*ailable publi+hed by Arabian


52/94

UThe +pectrum of ri+) that bu+ine++ leader+ face today i+ far more

comple3 than e*er before,V +aid "rian Storm+, chairman and ;E of

Mar+h U$ot too long ago, the top concern for an $; might ha*e

been a re at a renery "ut the +tudy .e conducted at the Mar+h$ational il ;ompanie+ ;onference in %ubai +ho.+ that ne.er ri+)+

Q +uch a+ the impact of climate change Q are mo*ing near the top of

the li+tV

In!(rer arn! %i1 $%m+anie! a


53/94

climate change .ould pre+ent +ignicant ri+) #nder+tanding thi+

ri+) and prioriti0ing it+ potential impact allo.ed the client to ta)e

mea+ure+ to addre++ it

Storm+ al+o cited other potential ri+)+ faced by national oil

companie+, including terrori+t act+, the e@ect+ of a major natural

di+a+ter on production, the concentration of +upply chain+ Q

e+pecially due to the threat of a*ian Gu and other ri+)+

The .orld i+ beginning to become more concerned about climate

change It .ould be prudent for all energy producer+, not ju+t oil

companie+, to under+tand their footprint+ in the .orld, and thatthere .ill be more con+tituent group+ that .ill produce more

challenge+ than the pa+t

Pri$e O Oi1 Drain- T.e Line

a+t +ummer, .hen the price of oil .a+ bouncing o@ the re* limiter

and a gallon of regular .a+ putting N5?plu+ hole+ in our .allet+, .e.ondered if it .ould continue, and .hat .e .ould do if it did The

+lide in oil price+ ha+ been the be+t ne.+ that con+umer+ ha*e

gotten all year "ut .ill lo. fuel price+ continue=

Ou+t a fe. month+ after the near?N16C high, the price of a barrel of

crude oil plummeted 8C percent, to about N5C It turn+ out that thi+

up+ide ha+ more than a little do.n+ide, and it may mean bad ne.+

in the future a+t +ummerF+ high price+ .ere a re+ult of a comple3

+erie+ of e*ent+?a perfect +torm in*ol*ing +peculation in the oil

mar)et+, high demand for oil product+, the pea)ing or near?pea)ing

of production *olume+, the incipient nancial cri+i+, etc "ut at lea+t

.e no. ha*e a pretty good e3planation for .hat .ent on in the

price increa+e

6


54/94

The problem i+ that no oil producer i+ ma)ing money at N5C per

barrel :eF*e heard e+timate+ that the brea)?e*en point i+ no. N7C

to N9C per barrel, +o producer+ are hurting :hy doe+nFt a producer

+imply +top producing if it lo+e+ money on e*ery barrel= Thatque+tion i+ an+.ered .hen you reali0e that mo+t of our oil no.

come+ from national entitie+ &Saudi Arabia, Kene0uela, Iran, etc(

rather than companie+ li)e E33on or Shell The+e countrie+ do

indeed .or) .ith companie+, but the ba+ic deci+ion+ there are

go*ernmental The+e go*ernment+ are dependent on oil re*enue for

infra+tructure, +ocial program+, military +pending and all the re+t

!or them, if re*enue +top+, the go*ernment +top+

The


55/94

a rapid price increa+e li)e la+t +ummer, and tho+e )ind+ of price+

might hurt e*eryone by ma)ing the .orld.ide rece++ion .or+e

The N5C?per?barrel price i+ hurting oil companie+ and oil nation+

around the .orld Xou heard the mantra drill, drill, drill la+t

+ummer, but +omething li)e N1CC billion in ne. oil?indu+try project+

ha*e been cancelled +ince the fall in price+, and oil rig+,

infra+tructure and equipment are idle or not being maintained

Alternati*e energy project+ ha*e al+o ta)en a hit, a+ their .orth i+

compared to the price of oil, and if oil i+ cheap, .hy +ee)

alternati*e+=

Some of the mo+t negati*e *oice+ are coming from old hand+ in the

oil patch, and itF+ not ju+t becau+e of the current price The

indu+tryF+ infra+tructure i+ made predominantly of +teel, and many

of the rig+, platform+, pipeline+ and renerie+ that .ere ne. 5C or

6C year+ ago are ru+ting and not being rene.ed The indu+try al+o

ha+ depended on a generation of .or)er+ .ho are not only aging,

but are too often not being replaced

If demand for oil increa+e+ once again a+ economic reco*ery begin+,

.here .ill the nece++ary increa+e in +upply come from= Are .e, a+

many analy+t+ belie*e, at or beyond the all?time pea) of production=

il at N5C per barrel?and the nancial cri+i+?ha+ left u+ a .ea)er oil

indu+try And, ironically, a .ea)er alternati*e?energy indu+try, at a

time .hen .e need both to +tabili0e future energy re+ource+ If .e

+ee +eriou+ +hortage+, price+ .ill +pi)e etF+ hope itF+ not the

ma)ing of another perfect +torm

Ri!in- Oi1 Kee+! C%m+anie! %n T.eir

T%e!

66


56/94


57/94

:e+t Te3a+ Intermediate crude for Ouly deli*ery bro)e the N8C thre+hold to

nearly N8 on the $e. Xor) Mercantile E3change, .hile benchmar) %ubai

crude, LoreaF+ main import, hit a ne. high for the r+t time +ince la+t

ctober

:hat doe+ all thi+ mean for companie+= An3iety and a ru+h of .orry #no

matter the indu+try

YYil price+ a@ect e*erything, from manufacturing and pac)aging to

tran+porting, no indu+try i+ in+ulated,FF +aid ee %al?+u), a +enior analy+t

at the Lorea Energy Economic+ In+titute, a +tate?run thin) tan)

Indian il ;orporation td in India

HHHHHHHHHHHHHHHHHHHHHHHH

HHHHHHH

Oil & Gas Industry in India

The origin of oil / ga+ indu+try in India can be traced bac) to 1978 .hen

oil .a+ +truc) at Ma)um near Margherita in A++am At the time of

Independence in 1B58, the il / -a+ indu+try .a+ controlled by

international companie+ IndiaF+ dome+tic oil production .a+ ju+t 26C,CCC

tonne+ per annum and the entire production .a+ from one +tate A++am

The foundation of the il / -a+ Indu+try in India .a+ laid by the Indu+trial


58/94

go*ernment company .a+ +et up In 1B6B, for mar)eting of petroleum

product+, the go*ernment +et up another company called Indian Renerie+

td In 1B75, Indian Renerie+ td .a+ merged .ith Indian il ;ompany

td to form Indian il ;orporationtd

%uring 1B7C+, a number of oil and ga+?bearing +tructure+ .ere di+co*ered

by $-; in -ujarat and A++am %i+co*ery of oil in +ignicant quantitie+ in

"ombay 'igh in !ebruary, 1B85 opened up ne. a*enue+ of oil e3ploration

in o@+hore area+ %uring 1B8C+ and till mid 1B9C+ e3ploratory e@ort+ by

$-; and I India yielded di+co*erie+ of oil and ga+ in a number of

+tructure+ in "a++ein, Tapti, Lri+hna?-oda*ari?;au*ery ba+in+, ;achar

&A++am(, $agaland, and Tripura In 1B95?96, India achie*ed a +elf?

+uJciency le*el of 8C in petroleum product+

In 1B95, -a+ Authority of India td &-AI( .a+ +et up to loo) after

tran+portation, proce++ing and mar)eting of natural ga+ and natural ga+

liquid+ -AI ha+ been in+trumental in the laying of a 18CC )m?long ga+

pipeline &'"O pipeline( from 'a0ira in -ujarat to Oagdi+hpur in #ttar


59/94

"y the end of 1B9C+, the petroleum +ector .a+ in the doldrum+ il

production had begun to decline .herea+ there .a+ a +teady increa+e in

con+umption and dome+tic oil production .a+ able to meet only about

6 of the dome+tic requirement The +ituation .a+ further compounded

by the re+ource crunch in early 1BBC+ The -o*ernment had no money for

the de*elopment of +ome of the then ne.ly di+co*ered eld+ &-andhar,

'eera


60/94

Oi1 C%m+anie! In In)ia

3.ara" Pe"r%1e(m C%r+%ra"i%n Limi"e)

"harat


61/94

Li!" % S(

Aban @+hore imited ? a leading name in o@+hore drilling +er*ice+

Aeromarine? o@+hore +upplier,+hip chandler,+hip repair+,dealer+ Z

e3porter+ of +hip +pare+ / aid+ to marine na*igation

Alfa


62/94

Indiana -rating+


63/94

conGuence of ri*er 'oogly and 'aldi !rom an original crude oil

proce++ing capacity of 26 MMT


64/94

IOC +("! %n .%1) i"! Ha1)ia Re#ner'

P1an

Indian il ;orporation &I;(, the country+ large+t oil mar)eting company,

ha+ put on hold it+ plan to +et up a 16?million tonne renery at 'aldia due

to the economic do.nturn I; .a+ +uppo+ed to rope in an international

partner for the project

UThe project ha+ been put on hold becau+e of the nancial turmoil and no

progre++ ha+ been made,V +aid an I; e3ecuti*e

$o., it may be diJcult for I; to nd an international company for +uch a

large comple3, +aid an indu+try e3pert

I; and the :e+t "engal go*ernment .ere to jointly e3plore the po++ibility

of roping in an internationally?reputed multinational company a+ a partner

I; along .ith thi+ international partner .a+ +uppo+ed to carry out a

techno?economic fea+ibility +tudy for the project The +tudy ha+ not yetbeen conducted in the ab+ence of +uch a partner

In September 2CC7, I; had +igned a memorandum of agreement &MoA(

.ith the :e+t "engal go*ernment to de*elop 'aldia a+ a


65/94

Analy+t+ +ay the economic do.nturn i+ not the only rea+on behind putting

+uch plan+ on hold Such deci+ion+ are al+o being inGuenced by the

increa+ing +urplu+ rening capacity in the country India ha+ +urplu+

rening capacity of nearly 56 million tonne+, .hich i+ +et to increa+e

further

IOC !"%+! !(++1ie! a! Ha1)ia C.e(e

3%(n$e!

The cri+i+ being faced by haldia petrochemical+ ltd deepened further .ith

indian oil deciding to +top naphtha +upplie+ after a r+ 21 crore cheque

i++ued by the former bounced on friday thi+ i+ the +econd time that

cheque+ to the oil major i++ued by the r+ 6,CC crore joint *enture

bet.een the .e+t bengal go*ernment, the tata+ and the purnendu

chatterjee group ha*e bounced +ome con+ignment+ are on .ay +o .e

canFt do anything about them but after that .e are +topping +upplie+ till

payment+ are cleared, a top ioc oJcial +aid the oJcial al+o e3pre++ed

unhappine++ o*er the po+t?dated cheque payment +y+tem in the

commercial pact .ith hpl t.o of hplF+ cheque+ i++ued to ioc for r+ 18

crore and r+ 2C9 crore had bounced la+t month +ub+equently, hpl

re*alidated them but reque+ted ioc to delay enca+hment +iting poor +ale+

hpl al+o ha+ a 7C?day breather for payment+ the company doe+nFt ha*e to

pay intere+t for the r+t C day+ hpl ha+ been facing problem+ for

+ometime no., .ith the tata+ +ee)ing an e3it the late+t incident may put

o@ ioc .hich ha+ +ho.n .illingne++ to ta)e up to 27 per cent equity

pro*ided it get+ the management control it al+o en*i+age+ re+tructuring

the e3i+ting equity +hare capital of the company and +ignicant reductionin the +ta)e+ of the e3i+ting promoter+ ioc ha+ al+o been .illing to

contribute fre+h equity +hare capital of r+ 579 crore to acquire a 27 per

cent +ta)e in hpl, propo+ed to be made at par

Para)i+Ha1)ia Cr()e Pi+e1ine "%


66/94

After a delay of more than a year, Indian il ;orporation &I;( i+

no. poi+ed to complete the


67/94

to complete the project in ne3t t.o month+, a +enior company

oJcial +aid

Subsurface pipeline

Mean.hile, I; +ource+ +aid


68/94


69/94

integral part of these , projects1 the source said.

The first of the projects was a small 5angalore AT: line pipeline which was

commissioned in $ctober (''). The second was Indian$il8s first 9-> pipeline

from -anipat to ?alandhar Spanning (+< km it was commissioned in

@ovember. The third is the -anipat aldia pipeline.

Indian il To -ain !rom 'aldia?


70/94

UThe ne. pipeline .ill be the lifeline for I;, a+ 'aldia and "arauni

renerie+ are incurring huge lo++e+ becau+e of the additional co+t of

tran+porting crude through 'aldia port .here larger *e++el+ cannot

call in,V Mr Ramachandran +aid

I; .ill +et up a +ingle?buoy mooring &S"M( facility o@ the


71/94

GU@ARAT

Introduction To Gujarat !e"nery

More than 26 year+ ago, the -o*ernment of -ujarat concei*ed of the

formation of a petrochemical company, that ha+ today metamorpho+ed

into a large?+cale R+ BCC crore energy organi0ation, e3celling in a .ide

gamut of hydrocarbon acti*itie+ $ot.ith+tanding it+ limited role and the

lo. )ey infra+tructure, the organi0ation dre. in+piration from the e3citing

opportunitie+ that the hydrocarbon +ector o@ered in the .a)e of

liberali0ation of Indian economy It gradually began to e3pand it+ *i+ion,

.idened the +cope of it+ acti*itie+ and rechri+tened it+elf a+ -ujarat State

-S


72/94

In)ian Oi1 C%r+%ra"i%n L") in N%r". Ea!"Re-i%n

=G(a.a"i Re#ner'>

PRO/ILE O/ GUWAHATI RE/INER8=ASSAM>

The -u.ahati Renery in $orth Ea+t India ?? the r+t


73/94

on.ard to Siliguri in :e+t "engal in 2CC 'ydrotreater

#nit for impro*ing the quality of die+el ha+ been

commi++ioned in 2CC2 In 2CC, the renery in+talled an

In)max Uni", a no*el technology de*eloped by Indian

oil+ R/% ;entre for upgrading hea*y end+ into


74/94

2


75/94

/(n$"i%n! % SHRM They ha*e to loo) after employee relation+

.hich include+ loo)ing after facilitie+ li)e medical facilitie+, .age+,

incenti*e+ that are being pro*ided to the employee+ or not They

mainly direct their %eputy Manager+ to loo) after the+e a+pect+S'RM i+ al+o in charge of loo)ing after the contract labor related

i++ue+ They do thi+ by gi*ing appro*al to the entry and e3it of

contract labor during the contract period after the initial *erication

i+ done by employee relation+ oJcer

The S'RM al+o ha+ to loo) after *ariou+ legal acti*itie+ li)e land and

e+tate matter+ a+ and .hen ari+e S'RM loo)+ after the time oJce

matter+ li)e entry and e3it of employee+ and al+o a *ery important

function that i+ .age admini+tration

/(n$"i%n! % De+("' Mana-er! They perform the function+ of

appro*ing land and e+tate matter+, and then de*elopment of

+urrounding community, loo)+ into the matter+ of certain

educational underta)ing+ nanced by -u.ahati renery, for.ard+

the reque+t+ for loan+ and ad*ance+ by employee+ to the nance

department They +crutini0e the report+ of +enior admini+trati*e

oJcial+ regarding *ariou+ matter+ They al+o monitor employee

performance+ and identify ca+e+ .here training i+ required The

maintenance of admini+trati*e building li)e loo)ing after .ater

lter+, chair+, computer+, table+ etc i+ al+o one of the function+ of

deputy manager

/(n$"i%n! % Seni%r A)mini!"ra"i&e %$er =SAO> They loo)

into the matter+ of land, carry out time to time in+pection of the

land+ acquired by Renery, they loo) into the matter+ of community

de*elopment, genuinene++ of their requirement+ and fund

allocation, they perform the function of +taJng employee+ by

placing them in tho+e job+ in accordance to their +)ill +et They loo)

86


76/94

after the .age admini+tration and they are re+pon+ible for

formulating the .age+ to be allocated They al+o ha*e to loo) after

medical benet+, promotion, probation and recruitment and

performance apprai+al+

/(n$"i%n! % Em+1%'ee Re1a"i%n! O$er =ERO> They )eep

trac) of contract labourer+ right from their entry pa++e+ to their

day+ of .or), payment and pro*ident fund+ They perform the

function of appro*ing loan and ad*ance+ and for.arding them to the

nance dept They al+o ha*e to )eep a trac) of uniform and +afety

+hoe+ +upplied to employee+ .or)ing in the plant ;anteen and

pantry i+ al+o ta)en care of by the employee relation+ oJcer

%E


77/94

JJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJJ

JJJJJJJJJJJJ

ST#$$I%G

o Manpo.er planning

o %etermine the organi0ational +tructure and optimi0e

manpo.er to e@ecti*ely meet ;ompany+ objecti*e

o Oob de+cription

o Recruitment

o


78/94

o Induction and apprentice training

o Training / de*elopment of employee+

I%()ST!I# !E#TIO%S

o


79/94

DATA INTERPRETATION AND ANAL8SIS

>< Fo$ "o' man! !ea$s "a-e !o% *een 'o$.n( n t"s o$(an3aton

Analy+i+ It .a+ analy+ed that ma3imum of the employee+

year+ of +er*ice i+ in bet.een 1C year+ to 2C year+

@< W"at s !o%$ ($a+e n t"s o$(an3aton

a< A ; < ;*< 8 ; < ; )< C ; < ;+< 6 ; < ;e< E ; ; < ;*< @; < ;)< D ; < ; +< = ; < ;e< ;

Documents

Compensation Management SYNOPSIS