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INTRODUCTION ESSAR OIL LIMITED

Essar Oil Ltd. was started in the year 1994 and it is currently Indias largest corporate houses manufacturing and service sector playing vital role in the economic growth of our country. The pro ect is progressing with !"" #!sian "rown "overy$ Lummus %rest with a contract of &' ()* +illion. The ,ro ect -anagement are done +y Essar ,ro ects. Engineers India Limited / Tata %onsulting Engineers. Essar Oil Limited at 0adinar is headed +y B.K.MUKHERJEE. It has a+out 111 highly efficient and dynamic team of employees +y positively affecting the society.

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ABOUT ESSAR GROUP


The Essar 7roup is one of Indias largest corporate houses with interests spanning the manufacturing and service sectors in +oth Old and 4ew Economies8 'TEEL. ,O9E5. ':I,,I47. %O4'T5&%TIO4'. OIL / 7!'. and TELE%O-. The 7roup has an asset +ase of &'( 4.4 +n #5s *;; +illion$ and a turnover of over &'( *.;< +n #5s 9= +illion$.'trategic investments made +y the group over the past decade have resulted in the creation of tangi+le and intangi+le assets that are at the :eart of Indian Economy. The group ta>es pride in +eing a high performance multinational organi?ation providing world class services and products. -anned +y a highly efficient and dynamic team of employees. the group is growing stronger everyday. ! committed corporate citi?en. the group provides unwavering support to the community as well as initiates various social and ecological drives that have @POSITIVE ATTITUDE on society.

ESSAR PHILOSOPHY
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The success of @E''!5 75O&,A is dependent on the development and reali?ation of potential of each one who is in direct contact or indirect contacts. The mindset of 3esterdays managers was to accept compromise and >eep things neat / orderly which leads to complacency. 9e should not +e afraid to go against todays currents +ecause we >now that tomorrow is ours and we must wor> on a vision of what +usiness can +ecome.

ESSAR MISSION

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The mission of this company is to create enduring value for customers and sta>eholders in core manufacturing and service +usinesses. through world class operating standards. state of art technology and @,O'ITI0E !TTIT&2EA of our people.

ESSAR LEADERSHIP VALUES


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1.

Integrity of all times.

*.

'atisfaction to Internal / EBternal %ustomers. 6acilitate all round eBcellence. ,romote Cuality. %ontinuously innovate and create. EBplore growth opportunities in 4ew Technologies. %onstantly focus on %ost reduction. 9or> with @,O'ITI0E !TTIT&2EA.

).

4.

=.

D.

1.

<.

HRD MISSION
To transform human resources from employee. to management partner in achieving +usiness goal. ,roactively create environment
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and wor> with people to provide competitive edge to the +usiness for continuous growth. %reate a finest learning. which would facilitate the acEuisition of the reEuest >nowledge. s>ills and attitudes or competencies that will +ring a+out the +est among our employees. towards organi?ational effectiveness.

WORLD CLASS STANDARDS


The E''!5 75O&, insists on setting and surpassing world class +enchmar>s in everything that they do. 4o wonder they have the worlds largest gas +ased sponge iron plant and are one of the worlds largest integrated sea logistics companies that owns Indias
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largest dou+le hull. dou+le +ottom 0L%%. !ll their +usinesses to stay strong and agile. They have invested several +illion dollars on eBclusive state of art technology +ecause they +elieve that it confers strong strategic advantage.

CORPORATE OFFICE AND REGIONAL OFFICE ADDRESS %orporate Office8F


E''!5 OIL LI-ITE2 -!:!L!G-I. E''!5 :O&'E. 11 H.H. -!57 -!:!L!G-I. -&-"!I I 4;;;1)4 TEL 8F #J91;**$ DDD;11;;K4;;111;;
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5egional Office8F
E''!5 OIL LI-ITE2 E''!5 :O&'E. 1*. '9!'TIH 'O%IET3. L!-4!7!5 I )D1;;< TEL 8F #;*<<F*==D4<;K<1K<*K<)$

5efinery8F
E''!5 OIL LI-ITE2 5E6I4E53 'ITE. ,.O."OG. 4O. *4 4; H-. L!-4!7!5 I OH:! :I7:9!3 ,.O. H:!-":!LI! I )D1);= 2I'T L!-4!7!5. 7&L!5!T ,: 8F #O*<))F*41444$ 6!G8 F ;*<)) I *41<1<K*41414

MANAGEMENT TEAM OF ESSAR GROUP


':5I ':!':I 5&I! I %:!I5-!4 ':5I 5!0I 5&I! I 0I%E %:!I-!4 ':5I ,5!':!4T 5&I! I 2I5E%TO5 ':5I !4':&-!4 5&I! I 2I5E%TO5

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CORPORATE FUNCTIONS MUMBAI


-5 '&5E': '&42!5!I 2I5E%TO5 %O5,O5!TE !0I!TIO4 -5 '.0. 0E4H!TE'!4 I 5E'I2E4T 2I5E%TO5. %:E44!I -5 L -E:5! I 5E'I2E4T 2I5E%TO5. 4E9 2EL:I L!TE -5 :!5': ':!: I 5E'I2E4T 2I5E%TO5. 7&L!5!T -5 -!2:&5 ' 0!,,&L&5I I 5E'I2E4T 2I5E%TO5. 4E9 3O5H -5 '&4IL "!L!L I ,5E'I2E4T %O5,O5!TE !66!I5' -5 0 H5I':4!4 I :E!2 %O5,O5!TE %O--&4I%!TIO4 -5 3 - ':I0!-&5T:3 I :E!2 LE7!L
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-5 4 ' ,!5!-!'I0!:E!2 6O5EG / T5E!'&53 -5 2I43!5 - LI0!!':! I :E!2 %O5,. 5I'H / I4'&5!4%E -7T.

MANAGEMENT TEAM ESSAR OIL LIMITED JAMNAGAR


-5 !9!2:E': 'I4:! I -!4!7I47 2I5E%TO5 -5 :!5I L -&425! -5 " H -&H:E5LEE -5 5!L H 0!5-! -5 ' 5 !75!9!L -5 0 H 2:!5I!
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I 23 -!4!7I47 2I5E%TO5 / 2I5E%TO5 6I4!4%E I :E!2 5E6I4E53 I %EO -!5HETI47 I EGE%&TI0E 2I5E%TO5 EG,LO5!TIO4 / ,5O2&%TIO4 I %EO EG,LO5!TIO4 / ,5O2&%TIO4

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-5 7 5 "ELL!5 I '5 0I%E ,5E'I2E4T "&'I4E'' 2E0ELO,-E4T -5 ' ' "!75O2I! I '5 0I%E ,5E'I2E4T %O--E5%I!L -5 ':!66I ':EIH: I %O-,!43 'E%5ET!53 -5 % -O:!4 H&-!5 I :E!2 :&-!4 5E'O&5%E'

LEVELS OF MANAGEMENT AT ESSAR OIL LIMITED JAMNAGAR


LE0EL - I ;1 - I ;* - I ;) - I ;4 - I ;= - I ;D - I ;1 - I ;<
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2E'I74!TIO4 2I5E%TO5 'E4IO5 0I%E ,5E'I2E4T 0I%E ,5E'I2E4T 7E4E5!L -!4!7E5 LOI4T 7E4E5!L -!4!7E5 2E,&T3 7E4E5!L -!4!7E5 -!4!7E5 2E,&T3 -!4!7E5
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- I ;9 - I 1; - I 11 TI1 T F*

'E4IO5 O66I%E5 O66I%E5 L&4IO5 O66I%E5 -!4!7E-E4T T5!I4EE 75!2&!TE E47I4EE5 T5!I4EE TABLE-2

ORGANISATION STRUCTURE ESSAR OIL LIMITED JAMNAGAR


TECHNICAL SERVICES PROCESS H "!L!'&"5!-!4I!4F'E4IO5 0I%E ,5E'I2E4T TECHNICAL SERVICES -5 ' ' 2!'F'E4IO5 0I%E ,5E'I2E4T COMMISSIONING IN CHARGE EIO4 T&54"&LL OPERATION -5 4 0E4H!T5!-!4I HSE FIRE FIGHTINING -5 ,5!H!': ,!IF0I%E ,5E'I2E4T
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ACCOUNTS -5 , 5 !':OHF0I%E ,5E'I2E4T COMMERCIAL -5 ' L 5!0IF0I%E ,5E'I2E4T PUBLIC RELATION CDC -5 ,5!':!4T ,!423!F0I%E ,5E'I2E4T ORGANISATION FLOWCHART- !

ESSAR OIL LIMITED JAMNAGAR OFFICE TIMINGS 8F


7E4E5!L ':I6T8 <8); !.-. TO =8); ,.-. ':I6T !8 D8;; !.-. TO *8;; ,.-. ':I6T "8 *8;; ,.-. TO 1;8;; ,.-. ':I6T %8 1;8;; ,.-. TO D8;; !.-. T:E !. " / % ':I6T I' %&55E4TL3 TO O,E5!TIO4' 2E,!5T-E4T.

MOBILE PHONES"T:E 6!%ILIT3 O6 -O"ILE ,:O4E' TO T:E E-,LO3EE' I' TOT!LL3 4EE2 "!'E2 !42 2E,E42' O4 T:E 4!T&5E O6 LO" 5E',O4'I"ILIT3 E4T5&'TE2 TO T:E E-,LO3EE !42 9ILL "E 2E%I2E2 "3 T:E 5E',E%TE2
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:E!2 O6 2E,!5T-E4T !42 !,,5O0E2 "3 T:E :E!2.

CANTEEN FACILITY "T:E5E !5E ) %!4TEE4' 6&4%TIO4I47 !T 'ITE. 9:E5E "5E!H6!'TK'4!%H' !5E !0!IL!"LE I4 T:E -O54I47 "ET9EE4 <8;; !.-. TO 98;; !.-. 6O5 L&4%: 65O- 1*8;; ,.-. TO *8;; ,.-. !T 6IGE2 %:!57E'. TE! %O66EE I' 'E50E2 I4 T:E O66I%E * TI-E' I4 T:E -O54I47 !42 1 TI-E I4 T:E !6TE54OO4.6O5 T:E 2I44E5 T:E TI-E I' 65O- 98;; ,.-. TO 1;8;; ,.-.

TRANSPORT FACILITY
T:E %O-,!43 ,5O0I2E' 65EE "&' 'E50IE' TO %O--&TE TO !42 65O !LL %O54E5' O6 L!-4!7!5. 'IHH! !42 H:!-":!LI!.T:I' 6!%ILIT3 I' ,5O0I2E2 &,TO -FD #23 7E4E5!L -!4!7E5$ !42 -F= !42 !"O0E !5E TO -!HE T:EI5 O94 !55!47E-E4T'. E-,LO3EE 'ITTI47 "E3O42 198); :5' %!4 5EC&E'T 6O5 0E:I%LE 65O- T5!4',O5T 2E,!5T-E4T.
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ATTENDANCE "!LL E-,LO3EE' !5E EG,E%TE2 TO 5E!%: T:E ,L!%E O6 T:E 9O5H !T LE!'T = -I4&TE' "E6O5E T:E %O--E4%E-E4T O6 9O5HI47 :O&5' !42 !LL E-,LO3EE' :!0E TO 'I74 I4 T:E !TTE42!4%E -&'TE5.

REGULATORY ENVIRONMENT "E''!5 OIL LI-ITE2 follows a proper rules and regulations laid down +y the 7overnment of India and ointly with 7u arat 7overnment. It has +een certified +y the following acts 8 T:E I42I!4 %O4T5!%T !%T. 1<1* T:E I42I!4 6!%TO53 !%T. 194< / 19<1 E40I5O4-E4T!L ,5OTE%TIO4 !%T ,ET5OLE&- !%T ,!3-E4T O6 9!7E' !%T. 19)D / -I4I-&9!7E' !%T. 194< 9O5H-E4 %O-,E4'!TIO4 !%T. 19*) 4E%F %E5TI6IE2 %L!''I6I%!TIO4 O6 :!M!52EO&' !42 2!47E5IO&' %:E-I%!L'

BANKS"

:O&'I47 2E0ELO,-E4T 6I4!4%E %O5,O5!TIO4 #:26%$ I42&'T5I!L %5E2IT !42 I40E'T-E4T %O5,O5!TIO4 O6 I42I! #I%I%I$
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'T!TE "!4H O6 '!&5!':T5! #'"'$ ,&4L!" 4!TIO4!L "!4H #,4"$ 5E'E50E "!4H O6 I42I! #5"I$

P#$%&'( ,roducts
'teel

)*#+,'*)

:ot +riEuette sponge iron Iron ore pellets :ot rolled products %old rolled products 7alvani?ed products

Oil and gas ,ower

'ervices
Telecom and +usiness process outsourcing 'hipping services %onstruction services %ellular services Enterprise solution !pplication and infrastructure EF+usiness solutions

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-ar>et coverage / Target mar>eting


E''!5 OIL LI-ITE2 is shinning li>e star in the s>y through it wor>ing in various fields and it has achieved many laurels in all its activities in very short period it has got name and fame nationally as well as internationally. The future is very +right of this company as it meets all the reEuirements for the development of company and country at large and contri+utes in the economy and increase the eBports of the country and thus in very many ways can prove +eneficial +y increasing the standard of living of the people and many more achievements can +e achieved. It will provide employment to lots of people to the localities as well will recruit from outside and will +e competing 5ELI!4%E I42&'T5IE' in healthy manner. The development and esta+lishment of 'EMs here in L!-4!7!5 +y E''!5 and 5ELI!4%E will ma>e our place shine in the corporate world with its name and fame due to which +etter and highly technical development will ta>e place and will +e very fruitful.

Essar Oil Limited 'trategy


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,rovides all the crucial company information reEuired for +usiness and competitor intelligence needs. %overs all the ma or features of the company. including in depth +usiness descriptions. products and services revenue +rea>downs and >ey suppliers. clients and competitors. Includes detailed strategic analysis covering +usiness strategy. '9OT analysis and value chain analysis. ! financial and operational overview is supplied. including industry specific ratios. #where applica+le$.

O+tain up to date company information. N 'upport sales activities +y understanding your customers +usiness +etter. N Cualify prospective partners and suppliers. N &nderstand and respond to your competitors +usiness structure. strategy and prospects.
Insightful company information. which addresses +usiness and competitor intelligence needs. InFdepth analysis of the operational aspects of the +usiness including +usiness descriptions. product lines and services revenue splits. and >ey competitors. 2etailed financial and operational overview including >ey performance specific ratios. 'trategic analysis of the company using '9OT and 0alue %hain analysis.

COMPETITORS"

5ELI!4%E ,ET5OLE&- LI-ITE2 #5,L$


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I42I!4 OIL %O5,O5!TIO4 #IO%$ I42I!4 ,ET5O %:E-I%!L' LI-ITE2 #I,%L$ 7&L!5!T 'T!TE ,ET5OLE&- %O5,O5!TIO4 #7',%$ %:E44!I ,ET5OLE&- %O5,O5!TIO4 LI-ITE2 #%,%L$ :I42&'T!4 ,ET5OLE&- %O5,O5!TIO4 LI-ITE2 #:,%L$ ":!5!T ,ET5OLE&- %O5,O5!TIO4 LI-ITE2 #",%L$ 7&L!5!T 7!' %O5,O5!TIO4 #77%$ 7!' !&T:O5IT3 O6 I42I! LI-ITE2 #7!IL$ OIL !42 4!T&5!L 7!' %O5,O5!TIO4 #O47%$ T!T! %:E-I%!L' #T%$

P#$-$(,$./0 ($$0)
1. Honest and Ethical conduct The Officers shall deal on behalf of the company with professionalism, honesty and integrity. 2. Compliance with law The Officers shall, in their business conduct, ensure compliance with all applicable laws, rules and regulations, in all
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the territories in which the Company operates and ad here to the reporting system there under. 3. Loyalty in employment In consideration of employment with the Company, Executives have to devote their full attention to the business interests of the Company. Executives are prohibited from engaging in any activity that interferes with their performance or responsibility to the Company or is otherwise in conflict with or prejudicial to the Company. 4. Other Directorships The Company feels that serving on the oards of other direct competitor companies may raise substantial concerns about potential conflict or interest. !ll Officers must report "disclose their relationship with other companies to the oard and as and when there is a change therein. #. Conflict of interest The Officers shall not engage in any business, relationship or activity, which may detrimentally conflict with the interest of company or the Essar group. The $irectors disclosure of interest under section %&& of the Companies !ct shall be treated as sufficient compliance under this clause. 6. nsider !radin" The Officers shall have to comply with the Code of Conduct for 'revention of Insider Trading adopted by the Company.

#. E$ual opportunities within the Company The Officers shall ensure that e(ual opportunities are provided to all employees of the Company and all (ualified applicants for employment, without regard to their race, caste, religion, colour, ancestry, marital status, sex, age ) nationality and that no discrimination or exploitation is done in this regard. %. Health& safety and en'ironment
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The Officers shall strive to provide a safe and healthy wor*ing environment, both within the organi+ation and as part of the society and comply, in the conduct of its business affairs, with all regulations regarding the preservation of the environment of the territory the company operates in. (. )se of the Essar *rand The Officers shall manage the use of the ,E--!./ trademar* and brand in the manner authori+ed and in the best interest of the Company and the Essar 0roup. 1+. ,rotection of -ssets The assets of the company should be employed for the purpose of conducting the business for which they are duly authori+ed and they should not be misused. 11. Confidentiality The Officers shall maintain confidentiality of information entrusted to them by the Company or any other information about the Company that comes to them except when disclosure is duly authori+ed or re(uired by any law or regulation. 12. .eportin" concerns The Officers shall promptly report to the management any actual or possible violation of this Code, or an event he or she becomes aware of that could affect the business or reputation of his"her or any Essar 0roup company.

ORGANISATION CHART
CHAIRMAN VICE CHAIRMAN
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DIRECTORS RESIDENT DIRECTORS CHENNAI NEW DELHI GUJARAT NEW YORK PRESIDENT CORPORATE AFFAIRS HEAD CORPORATE COMMUNICATION HEAD LEGAL HEAD FORE1 TREASURY CORP RISK HEAD INSURANCE MANAGEMENT

INTRODUCTION OF VARIOUS AREAS


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ON HUMAN RESOURCE MANAGEMENT AT ESSAR OIL LIMITED

OVERVIEW OF DIFFERENT AREAS OF HUMAN RESOURCE MANAGEMENT

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Organi?ations are made up of people and functions through people. 9ithout people organi?ation cannot eBist. 2H&-/. R*)$&#'* ,) #*3/#%*% /) (4* /))*() 5$# /.6 '$-7/.6. This resource +y themselves cannot fulfill the o+ ectives of an organi?ation. There is need to unite them into a team. It is through the com+ined efforts of people that material and monetary resources are effectively utili?ed for the attainment of common o+ ectives without these oint efforts the end goals cannot +e achieved. !ll the activities of an organi?ation are initiated and completed +y the persons who ma>e up the organi?ation therefore people are the most significant resource of an organi?ation. This resource is called HUMAN RESOURCE. !ccording to L. 6. &59I%H 8F @"usiness houses are made or +ro>en in the long run not +y mar>ets or capital. patents or eEuipmentsO +ut +y -E4 of all resource manpower is the only resource which does not depreciate with the passage of time.A !ccording to 6LI,,O. ,ersonnel -anagement or :uman 5esource -anagement isO @The ,lanning. Organi?ing. 2irecting and %ontrolling of ,rocurement. 2evelopment. %ompensation. Integration. 5etention of :uman 5esource to the end that individual / societal o+ ectives are accomplished.A

E''!5 OIL LI-ITE2 has efficient and effective human resource management committee that functions for various activities li>e manpower planning. o+ analysis. recruitment.
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selection. placements. induction. career planning. training / development. evaluation of o+. determining wage / salary. performance appraisal. maintenance. integration and control. FUNCTIONS OF HUMAN RESOURCE MANAGER

-!4!7E5I!L 6&4%TIO4'
1.

O,E5!TI0E 6&4%TIO4' 1. ,5O%&5E-E4T *. 2E0ELO,-E4T ). %O-,E4'!TIO4 4. I4T5E7!TIO4 =. 5ET!I4TIO4 DIAGRAM-8

,L!44I47

*. O57!4I'I47 ). 2I5E%TI47 4. %O4T5OLLI47

:uman 5esource ,lanning has +een defined as the process +y which management determines how an organi?ation should move from its current position to its desired manpower position. In the words of 'T!I4E5.
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@ -anpower ,lanning is the strategy for the !cEuisition. &tili?ation. Improvement and ,reservation of an Organi?ations :uman 5esource which is aimed at coordinating the reEuirements for and ma>ing availa+ility of different types of employees.A :uman resource planning is the first and important role of -anager at E''!5 OIL LI-ITE2 and unless there is strong manpower. to carry various activities is not possi+le. :ere ,lanning is +ased on various parameters li>e8F

'i?e of Organi?ation Turnover of company Technology involved !utomation !reas to +e outsourced 4on I %ore activities outsourced

The planning is +ased on the demand for and supply of manpower availa+le to the company. The planning functions are carried out in various departments for the operations and maintenance activities and are reEuired at each and every level. The manpower currently is 1<; highly efficient and dynamic group and is planning to eBpand +y touching 1;;; to 1=;;. !fter planning of the manpower. the company goes for searching the o+ reEuirement. 2etailed >nowledge of the nature and reEuirements of o+s to +e filled is essential for determining the >ind or Euality of personnels reEuired. 'uch >nowledge can +e o+tained through the process of LO" !4!L3'I'.

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Lo+ !nalysis is scientific and systematic process of determining +y o+servation and studies the tas>s. which comprise the o+. the methods and eEuipments used and the s>ills. attitudes reEuired for successful performance of the o+. Lo+ !nalysis is carried out here at E''!5 OIL LI-ITE2. It is +eneficial to all companies as managers can >now which place is to +e filled +y which person and it ta>es place +y proving various +enefits to the organi?ation which are as follows 8F

6or ,lanning 5ecruitment / 'election ,lacement / Orientation Training / 2evelopment ,erformance !ppraisal %areer ,lanning Lo+ Evaluation Employee 5elation :ealth / 'afety purpose

!fter the reEuired num+er and >ind of human resource are determined. the neBt step in the procurement function is to locate the source where from the reEuired human resource can +e availa+le and to attract them towards the organi?ation. This is >nown as @5E%5&IT-E4TA. !ccording to 6LI,,O 8F @5ecruitment is the process of searching for prospective employees and stimulating and encouraging them to apply for o+s in an organi?ationA.
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!t E''!5 OIL LI-ITE2. 5ecruitment is a process to discover the source of manpower to meet the reEuirements of the staffing schedule and to employ effective measures for attracting that manpower in adeEuate num+er to facilitate effective selection of an efficient wor>ing force. 5ecruitment needs are of three types 8

,L!44E2 !4TI%I,!TE2 &4EG,E%TE2

,lanned needs arise from changes in organi?ation structure and policy. 5esignations. deaths. accidents / illness give rise to &neBpected needs. !nticipated needs refer to those movements in personnel which an organi?ation can predict +y studying trends in the internal and eBternal environment. 5ecruitment +eing carried out at E''!5 OIL LI-ITE2 is done through either Internal 'ources or EBternal sources. RECRITMENT

INTERNAL SOURCES

E1TERNAL SOURCES DIAGRAM-9

SOURCES OF RECRUITMENT
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INTERNAL SOURCE T5!4'6E5' ,5O-OTIO4' ,5E'E4T E-,LO3EE' E-,LO3EE 5E6E55!L' 6O5-!5 E-,LO3EE' ,5E0IO&' !,,LI%!4T'

E1TERNAL SOURCE !20E5TI'E-E4T' E-,LO3-E4T EG%:!47E' %!-,&' 5E%5&IT-E4T %O4'&LT!4T' %O4T5!%TO5' ,L!%E-E4T !7E4%IE' 5E%O--E42!TIO4' %O-,ETITO5' -E57E5' / !%C&I'!TIO4 TABLE-:

The potential applicants send their resume generally through eF mail that contains personal details. professional details. o+ ective of oining and their eBpectation from organi?ation. Thus recruitment is an important process to attract potential applicants for proper o+ and after the recruitment is done the neBt step is of selection out of those applicants who have applied for the position. 'election is the process of choosing the most suita+le persons out of all the applicants. In the process. relevant information a+out applicants is collected through a series of steps so as to evaluate their suita+ility for the o+ to +e filled. 'election is a process of
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matching the Eualifications of applicants with the o+ reEuirements. @'election is the process of differentiating +etween those with greater li>elihood of success for o+. In short it is 5ight ,erson for 5ight Lo+ on 5ight Time.A The 'election procedure is done +y the management group at E''!5 OIL LI-ITE2 which is affected +y the internal or eBternal environment. The following is the process of selection carried here8F
1. *. ). 4. =. D. 1.

,5ELI-I4!53 I4TE50IE9 E-,LO3-E4T I4TE50IE9 5E6E5E4%E / "!%H75O&42 'ELE%TIO4 2E%I'IO4 LO" O66E5 ,:3'I%!L EG!-I4!TIO4 E0!L&!TIO4

!t each level the applicants may +e selected or re ected depending upon the Eualifications and potentials to wor> and thus selection of right person for the right o+ is made in a manner that proves +eneficial for the wor>ing of the company. Once an employee has +een selected. he should +e placed on a suita+le o+. ! misplaced employee remains dissatisfied and frustrated. !fter placing the selected candidates on proper o+s. it is necessary to ma>e them familiar with the o+. the company and other employees so that they can feel at home and can concentrate on their wor>.
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@,lacement is the process of assigning a specific o+ to each one of the selected candidates. It involves assigning a specific ran> and responsi+ility to an individual. It implies matching the reEuirements of o+ with the Eualifications of a candidate.A ,lacement at E''!5 OIL LI-ITE2 is done +y the management team on the +asis of reEuired wor> and s>ills availa+le from the candidates acEuired. The o+ ective is to place right person for the right o+ so as to ma>e the organi?ation wor> more effectively and efficiently. ,lacement is matching of what the supervisor has reason to thin> he can do with the o+ demands. It is a matching of what he imposes in strain. wor>ing conditions and what he offers in the form of form of payroll. companionship with others. promotional possi+ilities etc. ,roper placement helps to improve employee morale. It also helps to reduce employee turnover. a+senteeism and accidents rates. If a candidate ad usts himself to the o+ and continuous to perform as per eBpectations. it might mean that the candidate is properly placed. :owever. if the candidate has pro+lems in ad usting himself to the o+ and he continues to perform +elow eBpectations. he might +e misplaced. 'upervisorsKEBecutives should review all such cases to find out cases of misplacement. 'uch candidates should +e assigned some other more suita+le o+s. !lternately. they may +e given further trained to ma>e them fit for o+. This method is carried out at E''!5 OIL LI-ITE2. 9hen a new employee oins an organi?ation. he is completely a stranger to the people. wor> place and the wor> environment. Therefore he is li>ely to feel insure. shy and nervous. :e may undergo reality shoc> caused +y a gap +etween his eBpectations and the real situation. Induction or Orientation can overcome these pro+lems.
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@Once an employee is selected and placed on appropriate o+. the process of familiari?ing him with the o+ and organi?ation +egins. This process is called I42&%TIO4 or O5IE4T!TIO4.A Induction ta>es place here at E''!5 OIL LI-ITE2 for ma>ing the employees familiar with how the wor>ing of the company ta>es place. The induction program is of 1= days either organi?ed at the 5E6I4E53 'ITE or at E''!5 OIL %L&". !ll facilities li>e accommodation. transport and all >inds of refreshments are provided +y company on the its cost. It covers all the ma or areas of management made familiar and all other departments and units wor>ing in the company. from where they procure it till the dispatch of the final productO all activities that are carried on +y the company is descri+ed during the induction process. In short. it descri+es everything in detail how the organi?ation wor>s and how does it contri+utes in the development of its people and company at large on whole develops the country. There are not only live presentations given. +ut the employees are also ta>en at the refinery sites where different units through which the products will +e processed are shown and its process is

eBplained +y the tas> assigned to the officer. 2uring this process the employees are ta>en for the LETT3 0I'IT at 0!2I4!5. 4ormally. employees want to advance and grow in their careers. -ost individuals develop Euite early in life an idea or a mental image of what career they would li>e to pursue. &nless organi?ation meets these desires and aspirations of its employees it cannot ma>e optimum use of its human resource. %hanging eBpectations of employees and the organi?ation creates conflicts
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and +y this the organi?ation cannot attain higher level of efficiency and effectiveness %areer ,lanning is the systematic process +y which one selects career goals and the path to these goals. It means helping the employees to plan their career in terms of their capacities within the conteBt of organi?ations need. !t E''!5 OIL LI-ITE2 %areer ,lanning is done for the development of their employees and to widen the scope of wor>ing of them. It is carried out with the respect of people to perform well +y focusing more on training programs and give them more opportunities for growth and gets eBposed to all the different areas of the refinery and its wor>ing and to +e more competitive and have +etter career and growth opportunities. Training is the process of increasing the >nowledge and s>ills for doing a particular o+. It is organi?ed procedure +y which people learn >nowledge and s>ill for definite purpose. The purpose is to +ridge the gap +etween o+ reEuirement and present competence of an employee. Training may +e defined as any process +y which the aptitude. s>ill and a+ility of employees to perform specific o+ are increased. Training helps the employees to do their o+ well. avoid wastage of resources. improve +y Euality and Euantity and reduce the chances of accidents +y ta>ing proper steps. Training of employees ta>es place at E''!5 OIL LI-ITE2 with the o+ ective to improve the performance of its employees so that they can contri+ute +etter wor>ing of the company. It is carried with respect of people to perform well. +y focused training programs that give opportunity to eBpose to different areas and its
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wor>ings and get maBimum +enefits +y such programs in order to face the competitive corporate world. There are different training methods that are carried on to improve the efficiency. productivity. increase the s>ills so that they can get promotion and can develop potentialities. 'ome of the methods are as follows8F

I42&%TIO4 T5!I4I47 O4 T:E LO" T5!I4I47 ,5O-OTIO4 T5!I4I47 5E65E':E5 T5!I4I47 0E'TI"&LE T5!I4I47 !,,5E4TI%E':I, T5!I4I47 %L!'' 5OO- T5!I4I47 I4TE54':I, T5!I4I47 %5O'' 6&4%TIO4!L T5!I4I47 :E!LT: '!6ET3 E40I5O4-E4T / 6I5E #:'E6$

:ere at E''!5 all of these methods are carried as per the reEuirement and the purpose to +e fulfilled. -a>ing the employees aware a+out the internal as well as glo+al changes. ,rograms to develop the s>ills of the employees are also done.

There cannot +e training for the top level eBecutives or managers. so for them there are development programs. The success and growth of an organi?ation depends largely upon the cali+er and performance of its eBecutives. It is essential to train and develop eBecutives who can succeed the managers of today. -anagement 2evelopment includes the process +y which managers and eBecutives acEuire not only s>ills and competency in their present o+s +ut also capa+ilities for future managerial
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tas>s of increasing difficulty and scope. Thus. eBecutive development is any planned effort to improve current and future managerial performance. E''!5 has effective system for succession planning and management development programs that covers +oth eBecutive and senior management succession and development. The +oard reviews the outcomes annually and actions arriving from the review are implemented as part of management development agenda. It helps the managers to develop the s>ills on8F

Idea a+out the production process to have innovation and creativity in wor>. 6or developing managerial s>ills to achieve the goals and targets set +y the company To develop the personality +y organi?ing personality development programs and to over come the pro+lems those come on the way and develop so as to contri+ute in ma>ing feel proud.

! sound wage and salary structure is one of the preFreEuisites of good employerFemployee relations. In order to develop such a structure. it is essential that pay related with the nature and worth of the o+. It is also essential to maintain proper differentials +etween compensation for various o+s. ,ay differentials need to +e related with differentials in the value of different o+s. The relative worth of a o+ can +e udged with the help of o+ evaluation.

!ccording to International La+or Office 8F


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@Lo+ Evaluation is an attempt to determine and compare the demands which the normal performance of a particular o+ ma>es on normal wor>ers. without ta>ing into account the individual a+ilities or performance of wor>ers concerned.A The "ritish Institute of -anagement defines8F @Lo+ Evaluation as the process of analysis and assessment of o+s to ascertain relia+ly their relative worth using the assessment as the +asis for a +alanced wage structure.A Lo+ Evaluation at E''!5 OIL LI-ITE2 is +ased on the different levels or positions that are reEuired for various departments which is in terms of num+er of the vacancies availa+le at which position of what >ind. the nature of wor> to +e assigned to whom in which manner. the level of competencies reEuired for the different positions. !s yet there is no method adopted +y the management +ut there is evaluation done on the +asis of certain point rating system li>e grading the efficient and effective wor>ing of the employee and to reward in some manner so as to increase the efficiency to perform even more +etter every time. The payment of salary is an important activity of any organi?ation to ma>e the employee more efficiently and to motivate them through monetary +enefits so as to increase the performance in +etter way. It is not the only monetary +enefit to +e given +ut non monetary +enefits are also give to improve the employees performance. @'alary may +e defined as the monthly +enefit to the clerical. administration and professional employees.A
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!t E''!5. payroll administration is handled very efficiently and is effective in nature. The payment of the salary is according to the designation or the level which is given to each employee that is from -F1 to TF*. !t each of this level the payroll is different as the assigned wor> and as> differ and every level has fiBed payroll. The minimum or maBimum salary is decided +y the management. 6or each employee there is separate file prepared +y the company that contains all the details regarding the employee all personal details. his Eualifications. medical reports. confirmation letter +y the company. One of the most important is the payroll slip and its letter which is called %.T.%. #%O'T TO %O-,!43$ %T% are the eBpenses incurred +y the company on the employee either for training or development that includes the salary eBpenses. traveling eBpenses. hotel accommodations and food eBpenses that are incurred on employee for any reason. The %T% changes with the level of responsi+ility assigned to an employee and as the person moves up +y getting promotions. It also includes medical reim+ursements if any which is given with the salary. It also has a fiBed level of mo+ile charges given to the employees according the level and reEuirements certain amount is deducted from the salary for that purpose also it deducts certain fiBed amount for the @'O2EG :OA pass. It is facility provided for the payments where they are accepted at different provision stores or hotels or departmental stores. The %T% contains the following details in it 8F

"asic 'alary :5! #:ouse 5ent !llowances$ 'pecial !llowances -edical !llowances Oil / ,etrol !llowances 6ood %oupons Telephone EBpenses
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Entertainment EBpenses %onveyance. %ar operating

LT! ,6 '! 6"T

6or the employees wor>ing over time there is no provision of eBtra salary +ut they are provided +y some refreshments. 'alary administration is highly complicated area and utmost care is to +e ta>en for the payments. They are all recorded in form of file and are also stored in the computer. there are reductions whenever the employee is given advances for special purposes and in case of emergency and reim+ursements are given. The salary is also +ased on the attendance of the employees for which attendance muster is >ept and also recorded and stored in computer. The salary gets credited in the account of the employees at the end of month and +efore the 1th day of neBt month and thus the functioning is going on very smooth and on regular +asis that proves +eneficial for the employees and company at large. Then goes the ,erformance !ppraisal which is descri+ed in detail in the report. !fter acEuiring the reEuired num+er of employees and providing them with their respective roles to wor>ed out it is essential to >eep them wor>ing with the organi?ation that is to maintain them so that they do not leave the organi?ation and go away. :ere at E''!5 the employees needs are ta>en care of in very +etter way. To maintain employee with the organi?ation is very difficult tas> as the nature of its employees >eeps changing. +ut here for the purpose of maintaining is done +y 5ET!I4TIO4 which is +ased on the engagement level of employee that is ensured well in advance if the level found high then in terms of +asic necessities that are reEuired to perform the o+ is provided
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+ut also periodical recognitions and rewards are given and if the level is found to +e low then for that periodical learning and development is done +y cross functional methods. o+ attentions is made +y the superiors and the head of the departments and thus +y this the employees are >ept with the company and all refreshment facilities are provided li>e for the housing employees are accommodated at E''!5 TO94':I, while some at L!-4!7!5. !ll the +asic facilities are provided also leaves are granted to refresh themselves. parties and carnivals are made in order to have get together and en oy themselves. 5ecently they had organi?ed E''!5 %!54I0!L dine and dance party at '&--!I5 %L&" that was for the employees and their families also E''!5 L!2IE' %L&" has +een started for the spouses of the employees so that they too can have +etter time spending with each other and can have fun and en oy and various other activities are carried +y them. The efficiency of employees depends. to a great eBtent on the environment in which they are wor>ing. 9or> environment consists of all the factors which act and react on the +ody and mind of an employee. &nder industrial psychology the physical. mental and social conditions in which the people wor> are analy?ed to suggest improvements in them. The aim +ehind is to create an environment which ensures the greatest ease of wor> and removes all the causes of annoyance. anBiety and worry. If the wor> environment is congenial. fatigue. monotony and

+oredom are minimi?ed and wor> performance can +e maBimi?ed.

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75IE0!4%E 7rievance means any real or imaginary feeling of dissatisfaction and in ustice which an employee has a+out his employment relationship. @7rievance is any dissatisfaction or feeling of in ustice in connection with ones employment situation that is +rought to the attention of management.A :ere at E''!5 the grievance that is handled is and open handed that anyone can easily come and convey their pro+lems which is +rought to the attention of the management and is tried to +e resolved while it is at its minimum level. %OLLE%TI0E "!57!I4I47 9hen any dispute that may arise due to any reason the representatives of employer and of the employees meet and negotiate a contract governing the employer I employee union relationship. :ere at E''!5 there is nothing li>e collective +argaining ta>ing place as yet. I42&'T5I!L 5EL!TIO4 Industrial relations mean the relationships +etween employers and employees in industrial organi?ation. The term refers to the whole field of relationships among people. human relations that

eBists +ecause of the necessary colla+oration of men and women in the employment process of modern industry. :ere at E''!5 the atmosphere is very friendly and homely where the employees are interactive with each other even with the managers the relation is very friendly. Industrial relations are not only with the employees +ut also with government. employment
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associations. trade unions. courts and tri+unals which is Euite good in the matter where E''!5 is concerned. I42&'T5I!L 2I',&TE' 6or any +usiness unit wor>ing it has to have +etter industrial relations of that +etween employerFemployee. employeeF employee. and employeeFwor>ers. :ere at E''!5 there are no such industrial disputes and they are to +e avoided so as no chaos ta>ing place to have +etter and positive functioning of all managerial as well as operating activities -aintaining control over the operations is an important function of every manager. It is the duty of the personnel manager to evaluate periodically how effectively the human resource are +eing utili?ed for eBercising personnel control personnel records. reports. research and audit are reEuired. This is the main tools of personal control. :ere at E''!5 personnel control is part of recruitment process and planning of the manpower reEuired that is +eing carried out. There should not +e any vacancy or gap in the positions nor there overflow for which personnel control is managed +y the management. ,ersonnel records are stored in computers and in form of files here. research does not ta>e place and the audit is done internally.

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Thus we can state in short that following are the activities that are underta>en at E''!5 OIL LI-ITE2. L!-4!7!5 which goes in proper seEuence which is as follows 8F
1. *. ). 4. =. D. 1. <. 9.

1;. 11. 1*. 1). 14.

:&-!4 5E'O&5%E ,L!44I47 LO" !4!L3'I' 5E%5&IT-E4T 'ELE%TIO4 ,L!%E-E4T I42&%TIO4 %!5EE5 ,L!44I47 T5!I4I47 / 2E0ELO,-E4T LO" E0!L&!TIO4 9!7E / '!L!53 !2-I4I'T5!TIO4 ,E56O5-!4%E !,,5!I'!L 5ET!I4TIO4 I4T5E75!TIO4 ,E5'O44EL %O4T5OL

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APPRAISAL OF

PERFORMANCE APPRAISAL
!ppraisal of performance is widely used in todays corporate world. Early appraisal system was called merit rating. ,erformance appraisal techniEues +egan to +e used for technical. professional and managerial personnel. 'ince then tremendous changes have ta>en place in the concept. techniEues and philosophy of employee appraisal. !n organi?ations goals can +e achieved only when people put in their +est efforts. 4ow how to ascertain whether an employee has shown his or her +est performance on a given o+P The answer is ,erformance !ppraisal. Employee assessment is one of the fundamental o+s of :5-. +ut not an easy one so we shall >now the detailed discussion of the nature and process of conducting performance appraisal.

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MEANING

DEFINITION "-

In simple terms. performance appraisal may +e understood as the assessment of an individuals performance in a systematic way. the performance +eing measured against such factors as o+ >nowledge. Euality. and Euantity of output. initiative. leadership a+ilities. supervision. dependa+ility. coFoperation. udgment. versatility. health. and the li>e. !ssessment should not +e confined to past performance alone. ,otentials of the employee for future performance must +e assessed.

,erformance !ppraisal is an o+ ective assessment of an individuals performance against well defined +enchmar>s. @,erformance !ppraisal is the systematic. periodic and an impartial rating of an employees appraisal eBcellence in matters pertaining to his present o+ and his potential for a +etter o+.A

RELATIONSHIP OF PERFORMANCE APPRAISAL AND JOB ANALYSIS JOB ANALYSIS PERFORMANCE APPRAISAL

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PERFORMANCE STANDARDS
DIAGRAM-7 Employee assessment is as old as the concept of management. and. in an informal sense. it is pro+a+ly as old as man>ind. 4or performance appraisal is done in isolation. It is lin>ed to o+ analysis as the diagram states. Lo+ analysis descri+es wor> and personnel reEuirement of a particular o+. ,erformance appraisal descri+es the o+Frelevant strengths and wea>ness of each individual and it is connected with performance standards that translate o+s reEuirements into level of accepta+le or unaccepta+le performances. ,erformance appraisal aims at8F To effect promotions +ased on competence and performance To confirm the services of pro+ationary employees upon their completing the pro+ationary period satisfactorily To decide upon the pay rise where regular pay scales have not +een fiBed. To assess the training and development needs of employees. To let the employees >now where they stand in so far as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development

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To improve communication +etween supervisorFsu+ordinate and have +etter understanding of achieving of personal goals and concerns thus increase the trust +etween the rater and the ratee To provide feed+ac> to the employees To provide a valid data +ase for personnel decisions To diagnose the strengths and wea>ness of individuals To provide coaching. counseling. career planning and motivation. To develop positive superior su+ordinate relations To test the effectiveness of recruitment. selection. training. transfers. placement and induction programs. "roadly. performance appraisal serves four o+ ectives8F

1.

D*+*0$7-*.(/0 &)*) " Identification of individual needs ,erformance feed+ac> 2etermining transfers and o+ assignments Identification of individual strength and development needs A%-,.,)(#/(,+* U)*);D*',),$.) " 'alary ,romotion 5etention or termination 5ecognition of individual performance LayFoffs Identification of poor performance O#3/.,</(,$./0 M/,.(*./.'*;O=>*'(,+*) "
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*.

).

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:5 ,lanning 2etermining training needs Evaluation of organi?ational goal achievement Information of goal identification Evaluation of :5 systems 5einforcement of organi?ational development needs

4.

D$'&-*.(/(,$. " %riteria for validation research 2ocumentation of :5 decisions :elping to meet legal reEuirements

Thus the data relating to performance assessment of employees are recorded. stored and used for several purposes. :ere. at E''!5 OIL LI-ITE2 the performance appraisal is carried on in a systematic way and proves fruitful for the growth and development of its employees. The information are recorded and stored in the computers as and when an employee wants to chec> heKshe can go through it and get necessary information and is very safe and effective as compared to >eeping all details filed in form of reports of papers or files.

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PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE


The o+ ective of performance appraisal points out the purposes which such an eBercise see>s to meet. 9hat needs emphasis is that performance evaluation contri+utes to firms competitive strength. "esides encouraging high levels of performance. the evaluation system helps identify employees with potential. reward performance eEuita+ly and determine employees need for training. 'pecifically. performance appraisal helps an organi?ation gain competitive edge in8F

Improving ,erformances -a>ing %orrect 2ecision Ensuring Legal %ompliance -inimi?ing Lo+ 2issatisfaction and Turnover %onsistency "ehaviuor "etween Organi?ational 'trategy and

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Organi?ational "ehaviuor

0alues

and

,erformance !ppraisal offers competitive advantage to a firm +y improving performance. helping ma>e correct decisions. ensuring legal compliance. minimi?ing o+ dissatisfaction and employee turnover and ensuring consistency +etween organi?ational strategy and +ehaviuor.

APPRAISAL PROCESS
The performance appraisal process follows a set pattern and it consists of the following steps8F

ESTABLISHING PERFORMANCE STANDARDS. "1.

The process starts with the setting up of criteria to +e used for appraising the performance of the employees. The criteria are specified with the help of o+ analysis which revels the contents which should +e clear. o+ ective and in writing. The personal characteristics which contri+ute to employee performance must +e determined. In addition. who is to do the appraisal and how freEuently is to +e done should +e decided thus the performance standards will depend upon o+ ectives of appraisal.
2.

COMMUNICATING STANDARDS "-

The performance standards specified in the first step are communicated and eBplained to the employees so that they come to >now what is eBpected from them and if reEuired feed+ac> is ta>en into consideration and it is revised and modified.
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MEASURING PERFORMANCES "!.

THE

9hen the standards are specified and accepted. the neBt stage is the measurement of actual performance this reEuires choosing the right techniEue of measurement. identifying the eBternal and internal factors influencing performance and collecting information on results achieved which should +e in written and personal o+servations should also +e considered.

COMPARING THE ACTUAL WITH THE STANDARDS "8.

!ctual performance is compared with the predetermined performance standards. The optimum level of comparison should +e made with the standards.
9.

DISCUSSING THE APPRAISAL "-

The results of the appraisal are communicated and discussed with the employees.
:.

TAKING CORRECTIVE ACTIONS "-

Through mutual discussion with employees. the steps reEuired to improve performance are identified and initiated. Training. coaching. counseling are eBamples of corrective actions that help to improve performance.

WHOSE PERFORMANCE SHOULD BE RATED??


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:ere at E''!5 OIL LI-ITE2 the very o+vious answer that the employees are rated it can +e individual or team.

WHO ARE RATERS??


:ere at E''!5 OIL LI-ITE2 the raters are immediate supervisors. specialists from :5 department. su+ordinates. peers. committees. clients. selfFappraisals or a com+ination of several type.

WHAT SHOULD BE RATED??


:ere at E''!5 OIL LI-ITE2. one of the steps in designing an appraisal programme is to determine the evaluation criteria which should +e related with the o+ which are 8F
1.

@UALITY @UANTITY TIMELINESS COST OF EFFECTIVENESS NEED FOR SUPERVISION INTERPERSONAL IMPACT

2.

!.

8.

9.

:.

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PROBLEMS IN PERFORMANCE APPRAISAL AT ESSAR OIL LIMITED


E55O5' I4 5!TI47 :!LO E66E%T 'TE5EOT3,I47 %E4T5!L TE42E4%3 %O4'T!4T E55O5 ,E5'O4!L "I!' ',ILL O0E5 E66E%T L!%H O6 5ELI!"ILIT3 I4%O-,ETE4%E 4E7!TI0E !,,5O!%: -&LTI,LE O"LE%TI0E
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1.

2.

!.

8.

9.

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:.

5E'I'T!4%E

7.

L!%H O6 H4O9LE27E

ESSENTIALS OF AN EFFECTIVE PERFORMANCE APPRAISAL SYSTEM


To +e effective. a performance appraisal system should satisfy the following reEuirements8F
1.

-&T&!L T5&'T %LE!5 O"LE%TI0E' 'T!42!52I'!TIO4 T5!I4I47 LO" 5EL!TE24E'' 2O%&-E4T!TIO4 6EE2"!%H / ,!5TI%I,!TIO4 I42I0I2&!L 2I66E5E4%E' ,O'T !,,5!I'!L I4TE50IE9
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2.

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8.

9.

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7.

A.

B.

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10.

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METHODS OF PERFORMANCE APPRAISAL


'everal methods and techniEues are used for evaluating the performance of the employee which is classified into two +road categories which are 8F

,ast Oriented -ethods 6uture Oriented -ethods

,ast Oriented -ethods includes the following 8F 1. 2. !. 8. 9. :. 7. A. B. 10. 5!TI47 '%!LE %:E%HLI'T 6O5%E2 %:OI%E -ET:O2 6O5%E2 2I'T5I"&TIO4 -ET:O2 %5ITI%!L I4%I2E4T' -ET:O2 "E:!0IO&5!LL3 !4%:O5E2 5!TI47 '%!LE' 6IEL2 5E0IE9 -ET:O2 ,E56O5-!4%E TE'T' !42 O"'E50!TIO4' %O46I2E4TI!L 5E%O52' E''!3 -ET:O2
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11. %O'T !%%O&4TI47 -ET:O2 12. %O-,!5!TI0E E0!L&!TIO4 !,,5O!%:E' 1!. 5!4HI47 -ET:O2' 18. ,!I5E2 %O-,!5I'O4 -ET:O2

6uture Oriented -ethods includes the following 8


1.

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2.

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8.

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MANAGEMENT BY OBJECTIVES
,eter 6. 2ruc>er gave the concept of -.".O. first to the world way +ac> in 19=4 when his The ,ractice of -anagement was first pu+lished. It reflects a management philosophy which values and utili?es employee contri+utions. -.".O. in performance appraisal is recent thin>ing. It involves four steps that are to +e followed +ut this method is also critici?ed. It is not applica+le to all o+s in organi?ation. >eeps changing. useful for managerial functions only. This is the newly developed method of performance appraisal and it covers all aspects. !s the name suggests the appraising is +ased on the o+ ectives set with the performance outsourced.

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M.B.O. PROCESS
The process of -"O is carried out in the following manner8F SET GOALS "- 'uperior / 'u+ordinate managers ointly identify its common goals.
!.

DEFINE TARGETS "- :ere individuals ma or role or areas of responsi+ility in terms of results eBpected from him is done.
".

REVIEW "- :ere for assessing the contri+ution of each one is done.
%.

FEEDBACK "- !fter all the assessment is done it is necessary to provide the feed+ac> to the employee as to how is the performance done and to appraise it.
2.

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PROCESS OF PERFORMANCE APPRAISAL THROUGH M.B.O AT ESSAR OIL LIMITED


1. a.

NATURE OF GOALS "-

%lear / measura+le +. %lear lin>age +etween organi?ational goals and performance targets for an employee. c. 7oalKtargets determined +efore appraisal period +egins d. %hec>points set up to measure process e. 6ocus on results to +e achieved rather than on activities
*. a. +.

EVALUATION PROCESS ",eriodic reviews of performance rather than yearly review 6ocus of review on performance or results achieved

). a.

ROLE OF EMPLOYEE "-

!n employee active participate in goal setting and performance appraisal process rather than a passive o+server +. ,lays a >ey role in all o+ related decisions
4. a. +. c.

NATURE OF CONTROL "6ocus on future rather than on post or present !ppraisal interview has pro+lem solving approach 6reEuent feed+ac> for self control

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=. a. +. c.

ROLE OF EVALUATOR "'erves as a coach and counseller 'upportive rather than udgmental role 'ee>s development of an employee rather than faults.

:ere at E''!5 OIL LI-ITE2 the performance appraisal that ta>es place is done +y the management or +usiness head or department. The process ta>es place at different level. The o+ ective is to have an over all development of employees >eeping in mind the standards set +eforehand. The method that is carried out for the purpose of performance appraisal is done +y -!4!7E-E4T "3 O"LE%TI0E' #-"O$ the performance appraisal is +ased on the Eualitative and Euantitative approach. The process is an on going process that is continuous in nature and the method is not fiBed it changes with the changes in time. There is no specific time reEuired to carry out the process and the energy spend on it. The goals that are set are of '-!5T nature. ' Q ',E%I6I% - Q -E!'&5!"LE ! Q !%:IE0!"LE 5 Q 5E!LI'TI% T Q TI-E "O&42 The goals are set in order to fulfill them for the +usiness o+ ectives. The goals that are set which defines the role that is to +e performed +y the employees is structured and made clear towards attaining the end results. The o+ ectives of the department as well as that of the employees are integrated for the fulfillment of organi?ation o+ ectives. The involvement level of the employees is very high though this method. The appraising done up to the level - I 1 to - I 1 is done individually where as
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from - I < and a+ove have to perform in team and are appraised in team. The appraisal is carried out in mid year that is every siB months and +y this the relation with the employees is sound and effective which strengthens the wor>ing of employees and contri+utes at large for the development and success of company.

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CHALLENGES OF APPRAISAL FACED BY MANAGER AT ESSAR OIL LIMITED


9ith the development and continuous changes in the corporate world there are many challenges in front of manager that are to +e faced strongly. 6or -anager of :5 many such challenges are to +e faced and an important one is that of challenges in performance appraisal of the employees of company. Ta>ing into present position and situation and future scope the following are the challenges +eing faced +y manager while rating the performance of its employees 8F %reate a culture of eBcellence that inspires every employees to improve and lend himself or herself to +e assessed !lign organi?ational o+ ectives to individual aspirations %lear growth paths for talented individuals ,rovide new challenges to re uvenate careers that have reached the plateau stage 6orge a partnership with people for managing their careers Empower employees to ma>e decision without the fear of failing Em+ed teamwor> in all operational processes 2e+ureaucratise the organi?ation structure for ease of flow of information

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HOW IS ESSAR AHEAD OF OTHERS


E''!5 OIL LI-ITE2 is emerging in various fields li>e 'TEEL. ,O9E5. OIL. %O4'T5&%TIO4. ':I,,I47. TELE%O- thus +y this we can say that the future of this company is very +right and with its @,O'ITI0E !TTIT&2EA it will definitely progress in which ever fields it will wor> out its activities. The "lac> 7old has already entered in the field and is +eing produced on large Euantity and is ready for the dispatch in the world mar>et +y its retailers and whole sellers and all its units are started and ma>es it a grand success for the company for its commissioning.

COMPETITORS " !mong its competitors there is 5ELI!4%E ,ET5OLE&LI-ITE2. I42I!4 OIL %O5,O5!TIO4. I42I!4 ,ET5O %:E-I%!L' LI-ITE2. 7!' !&T:O5IT3 O6 I42I! LI-ITE2. OIL / 4!T&5!L 7!' %O5,O5!TIO4. :I42&'T!4 ,ET5OLE&-. ":!5!T ,ET5OLE&- etc. that are doing the same type of +usiness as that of E''!5 OIL LI-ITE2 +ut there is a thing that ma>es it different from others and that is the wor> culture which consists of mastering fundamentals. continuing education / learning. empowerment of >nowledge. s>ills. attitudes. trust. initiative / innovations. team wor>. integrity and most importantly its @,O'ITI0E !TTIT&2EA.

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It adopts the latest methods of planning. recruiting. selecting. imparting training and development. appraise the performance of its employees. control over personals etc. which is not found suita+le and successful in all such gaint companies. to maintain the Euality. name and fame in the corporate world within a short span of time. These are some areas that ma>e @E''!5 OIL LI-ITE2 !:E!2 O6 OT:E5'A.

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CONCLUSION
Last +ut not the least the training period was a golden time that we spend successfully +y +eing a part of such of giant group there was a point of time when E''!5 was under many +ad circumstances +ut now. today. when we loo> +ac> we find that with a little firm determination. hard wor> and of course @,O'ITI0E !TTIT&2EA nothing is impossi+le. 'truggle is part and parcel of life it is how we over come it with our strengths and courage and face all circumstances and fight against wrong. 9e would li>e to conclude the pro ect +y descri+ing that @9inners do not do different things +ut they do things differentlyA the +est eBample is E''!5 OIL LI-ITE2 and the E''!5 75O&, at large who follows of doing things differently and +e a winner in whatever they do and we wish all the +est and success to the company for its +etter progress and to >eep up the ,O'ITI0E !TTIT&2E and wor> in order to contri+ute to the development of its people. society and country at large.

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RECOMMENDATIONS FOR THE COMPANY


!s such the company has ust recently started with its commissioning of its units +ut for its +etter and +right future we would li>e to give my feed+ac> and suggestions to the company so that it can also shine li>e 5ELI!4%E I42&'T5IE' one of its +iggest and strongest competitors and to develop and eBpand more of it worldwide 8F To develop +etter infrastructure of the refinery site There should +e computeri?ed attendance system so it saves time and energy of its employees %omputeri?ed Identity %ard system %amera system to +e installed in each and every department to >eep and eye on the movements of employees. wor>ers. transportation etc. Induction for non technical employees over and a+ove 7ET' Induction should +e more of practical >nowledge than theoretical lectures. Induction and Training period for longer time. Lo+ 5otation should +e made possi+le so as the employee does not get tedious of same wor> yet get >nowledge in all other fields and get speciali?ed 'hift wor> for non technical employees not only for the people of operation department 5egular health and medical chec> up of all employees and family mem+ers free of cost %lu+s and 5efreshment %enters for the children of employees 2evelop and Introduce 'pecial Economic Mone ,roper etty site to +e developed

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4o pressuri?ing of employees for the wor> which heKshe is not a+le to

perform 7et more recruitment of young and talented women. -a>e more of eBports and minimi?e the imports of crude and try to get it made availa+le from India %ontri+ute in the growth of near +y areas +y more employment generation 2evelop other sectors where company is involved %ontri+ute in the economic growth +y increasing the national income and per capita income of country "e successful in what ever activities are +eing carried out If some of the a+ove mentioned suggestions are underta>en then the company will definitely shine out li>e the 5eliance did and will set an eBample for others to develop in this sector with healthy competition and to >eep up its @,O'ITI0E !TTIT&2EA always alive.

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APPENDI1
SR. NO. 1 2 ! 8 9 : 7 PARTICULARS LEVELS OF MANAGEMENT CTABLE- 2D ORGANISATION STRUCTURE CFLOW CHAT-!D ORGANISATION CHART CFLOW CHART-1D FUNCTIONS OF HUMAN RESOURCE MANAGER CDIAGRAM-8D TYPES OF RECRUITMENT CDIAGRAM-9D SOURCES OF RECRUITMENT CTABLE-:D RELATIONSHIP OF PERFORMANCE APPRAISAL JOB ANALYSIS CDIAGRAM-7D PAGE NO. 12 1! 2! 2: 2B !0 8:

BIBLIOGRAPHY
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There were many useful +oo>s which has helped us to prepare the this pro ect some of the theoretical >nowledge is imparted +y these +oo>s which are useful even at the -.".!. levels along with the practical >nowledge acEuired at the company and the names of the +oo>s are 8F
1.

!':9!T:!,,! H. I :&-!4 5E'O&5%E' / ,E5'O44EL -!4!7E-E4T. TEGT !42 %!'E' I )52 E2ITIO4 I DT: ,5I4T. 5E,5I4T *;;4. ,&"LI':E2 "3 T!T! -%. :ILL 25. 7&,T! %. ". I :&-!4 5E'O&5%E' -!4!7E-E4T. DT: E2ITIO4. 5E,5I4T *;;=. ,&"LI':E2 "3 '&LT!4 %:!42 / 'O4'. I4TE54ET www.essar.com

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