“EMPLOYEE AWARENESS AND MOTIVATION

WITH REFERENCE to PROMOTION POLICY” :

A STUDY ON THE NON OFFICERS AT
INDIAN OIL CORPORATION LTD.(ASSAM OIL
DIVISION)

A Project Report submitted in partial fulfillment of the requirement for awarding the Degree
in Master of Business Administration, Gauhati University(2009-2011)

ACADEMIC GUIDE: ORGANISATIONAL GUIDE

Mrs .Runita Goswami P.K.Jain

Manager(Employee Relations) Dept.of Business Admn.
IOCL,AOD Gauhati University

Prepared for:

(DURATION OF PROJECT- 10th JUNE to 10th AUGUST)

Submitted by:

Priyankita Hazarika
3rd Semester,MBA
Gauhati University,Roll No.28

1
CONTENTS
TOPIC PAGE NO.
Preface
Acknowledgement
Executive Summary
CHAPTER 1 Introduction 1-2
1.1 Definition f Promotion 1
1.2 Principles of Promotion 1
1.3 Basis of Promotion 2
1.4 Definition of Motivation 2
1.5 Nature of Motivation 2
1.6 Definition of Employee Awareness 2
CHAPTER 2 Objective and limitations 3-4
2.1 Objective of Study 3
2.2 Scope of Study 3
2.3 Limitations 3
2.4 Need for the study 4
CHAPTER 3 Company Profile 5-8
3.1 About IOCL 5
3.2 Digboi Refinery in a nutshell 5-6
3.3 Vision and Mission of IOCL 7
3.4 Swot Analysis of IOCL 8
CHAPTER 4 Promotion policy at IOCL 9-13
4.1 Hierarchy and Manpower at IOCL 9
4.2 Cluster promotion at AOD 10-11
4.3 Weightages assigned to various factors for promotion 12-13
CHAPTER 5 Methodology of study and analysis 14-29
5.1 Methodology 14
5.2 Analysis 15-28
5.3 Findings 29
CHAPTER 6 Recommendations and Conclusion 30-31
6.1 Recommendations 30
6.2 Conclusion 31
CHAPTER 7 Annexures
CHAPTER 8 Bibliography

PREFACE

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 Projects are an indispensable part of any kind of formal education. They help us to have a
practical exposure as well as better outlook of the subject, which we are studying.In a
professional course like M.B.A, the students are equipped with strong theoretical knowledge
knowledge about the business operations and time-tested methods of running a successful
business organization.To make this theoretical knowledge stronger, the students are assigned
certain projects in various organizations to get an idea of the practical working styles.

I was assigned to do my project in the Employee Relations and Services section of the
Assam Oil Division of Indian Oil Corporation Limited.The topic of the study was
“Employee awareness and motivation with reference to promotion policy :A study on
non-officers at Indian Oil Corporation Ltd(A.O.D) Digboi.” The project commenced
from the 9th of June to the 9th of August,2010.

In order to make the data and findings easily understandable, efforts have been made to
present the information in a simplified, lucid, and organized manner. Wherever possible,
tables and figures have been incorporated. Recommendations have been made on the basis of
the findings herein.

This project has given me immense practical working patterns and the environment. I will be
satisfied if the organization benefits from the study and it’s findings.

Date:

Place: (Priyankita Hazarika).

ACKNOWLEDGEMENT

3
This is to acknowledge my sincere thanks and gratitude to all those concerned, who have
contributed to this project.

To begin with I, wish to acknowledge and express my gratitude to Mr.S.Dowerah ,

Sr.Manager,Training and Development dept.A.O.D,who gave me the opportunity to work in
this reputed organization.

Iam very grateful to my organizational guide Mrs. Runita Goswami,Manager(E.R)DAO.D,for

her continuous guidance and advice which has enabled the successful completion of my
project.

I am grateful to my departmental guide P.K.Jain for his constant guidance in this project.

I would specially like to thank Mr N.K.Hazarika,Senior Manager(ER) for all his support and
guidance with his expertise throughout the entire period of study.

I am also very grateful to Mr.H.Ahmed ,C.E.R.M,(ER&S)for his advice and support at every
stage.

I express my sincere thanks to all the respondents who have spared their valuable time and
provided me with the required information for this project.

And finally .I am thankful to the Deptt.of Business Administration, Gauhati University,for

giving me the opportunity to gain practical knowledge in my area of specialization.

DATED:

PLACE: (Priyankita Hazarika)

1.1 DEFINITION OF PROMOTION

4
 Advancement within an organization is ordinarily labelled as ‘Promotion’ .It is the upward
movement of an employee from current job to another that is higher in pay, responsibility,
status and organizational level.

According to Pigors & Myres. “ A promotion is the advancement of an employee to a

better job-better in terms of greater responsibilities, more prestige or status greater,
skill and specially , increased rate of pay or salary.”

According to Edwin B.Flippo. “ A promotion involves a change from one job to another
that is better in terms of status and responsibility”.

The analysis of the above definitions reveal three basic elements of promotion:

 Transfer of an employee to some higher job having more prestige, better status, more
benefits and privileges.
 Reassignment of an employee to a position having increased responsibilities.
 Higher job grade.

1.2 PRINCIPLES OF PROMOTION

A sound promotion policy should be based on the following principles.

 The promotion policy should be in writing and must be understood by all employees
to avoid any suspicion regarding line of promotion in the minds of the employees’.
 The promotion policy should lay down what percentage of vacancies in higher levels
of hierarchy are to be filled up by promotion and it should be followed strictly.
 The promotion policy should mention the basis of promotion –seniority or merit.
 Promotion programs should be closely allied to training program;which enables the
employees to improve themselves for promotion.
 A scientific procedure for evaluating employee performance should be followed.The
assessment of employee and confidential reporting(CRs) should be objective so that
every employee has faith in the promotion policy and is motivated for better
performance of work to get promotion.
 A vacancy or would be vacancy should be notified to to employees in advance so that
interested employees may apply within the specified period.

1.3 BASIS OF PROMOTION

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While designing the promotion policy, there is always a problem before the management as
to what should be the criterion for promotion. Organization adopts different basis of
promotion depending upon their nature,size, management etc.The well established bases of
promotion are :

a) SENIORITY: The senior most person in the lower grade shall be promoted as and when
there is an opening in the higher position.

b) MERIT: The most capable person in the lower grade,no matter if he is junior most in the
company shall be promoted.

c) SENIORITY-CUM-MERIT BASIS :A combination of both seniority and merit may be

considered as sound basis for promotion.

1.4 DEFINITION OF MOTIVATION

Motivation has been variously defined by scholars. According to Berelson & Streiner , “A
motive is an inner state that energizes,activates,moves and directs or channels
behaviour goals”. It is the stimulation of any emotion or desire operating upon one’s will
and promoting or promoting or driving it to action.

1.5 NATURE OF MOTIVATION

 Motivation is an inner feeling which energizes a person to work more.
 The emotions or desires of a person prompt him for doing a particular work.
 There are unsatisfied needs of a person which disturbs his equilibrium.
 A person moves to fulfill his unsatisfied needs by conditioning his energies,
 There are dominant energies in a person which are activated by channelising them
into action.

.
1.6 DEFINITION OF EMPLOYEE AWARENESS
The knowledge which the employees have about their employers,their organization, it’s
policies,functioning etc.This knowledge is very essential not only for the development of the
employee but also for the organization.

2.1 OBJECTIVES OF THE STUDY

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The specific objectives set for the present day study are:

 To study the effectiveness of the existing promotion policy of Indian Oil Corporation
Ltd’s Assam Oil Division.
 To determine the extent of the employee motivation (non-officers) for earning
promotion.
 To find out the level of the employee (non-officers) awareness regarding the
promotion policy.

2.2 SCOPE OF THE STUDY

The scope of the study was confined to the measurement of the employee’s(non
officers)awareness and motivation with reference to the promotion policy of Indian Oil
Corporation’s Assam Oil Division .It also aimed at finding out the general opinion of the
employees regarding the promotion policy. For the purpose of the study, opinions of the non-
employees of A.O.D from various departments were taken and reviewed. The study also
aimed at finding out the drawbacks of the promotion policy.

2.3 LIMITATIONS OF THE STUDY

 The study suffered from time constrain as it is completed within the short time span of
two months due to which only Digboi Refinery was covered.
 The data collected and all the ground work that was felt necessary had to be done by
the author herself. Thus, the huge workforce was another constraint in the study.
 There was a dearth of free time in the hands of the employees. As such, carrying out a
survey and getting the questionnaires filled correctly on time was a real hard task.

Thus, the study suffers from some limitations and thereby the conclusions drawn are
subject to criticisms.

2.4 NEED FOR THE STUDY

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 The Digboi Refinery is the oldest refineries in the world with an operating capacity
of 0.65 MMTP.It was set up in 1889 and acquired by I.O.C.L in 1981.Till date it running
successfully. A.O.D, Digboi refinery is undergoing rapid changes. Modernization and
technical upgradation is constantly being done in the refinery.

Modernization has led to the reduction in the number of manpower requirements and
relocation of duties and responsibilities.The technology adopted now in A.O.D is very
sophisticated, requiring highly qualified manpower and constantly upgraded policies.

With the demand of qualified manpower, it is essential to have an efficient an

modernized promotion policy for the employees at all levels.It is essential for the existing
employees to be aware of the promotion policies which will not only develop their careers
but also boost their self-respect and egos. Employees’ awareness about the promotion
policies motivates them further to work harder, more efficiently and as a result of which
achieve not only the organizational but their personal goals as well.

Thus, a study was needed to be done to measure the level of awareness among the
employees (non-officers) of A.O.D about the promotion policies and whether or not they
were motivated by these policies to work harder, and what are their viewpoints about them.

3.1 ABOUT INDIAN OIL CORPORATION LIMITED:

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 Indian Refineries Ltd.and Indian Oil Company Ltd.were set up in 1958 and 1959, to
build national competence in oil refining and marketing respectively.On September,
1964,these two companies were merged to form the Indian Oil Corporation Ltd.

Indian Oil Corporation Ltd. is the largest commercial enterprise in India and the 18 th
largest petroleum company in the world. It is the only Indian presence in the ‘Fortune
Global 500’ listing of the world’s largest corporations, with a ranking of 209 for the fiscal
2000.In the ‘Forbes International 500’list of largest companies outside the USA, Indian
Oil is ranked 112 and tops the list amongst the four Indian companies appearing in the
listing. Indian Oil has also been ranked the ‘Second Most Effective Trading Company
amongst the 14 National Oil Companies in the 2000 Industry perception Survey of Asia
Pacific Petroleum Trading Companies by Applied Trading Systems, Singapore .In a
recently published survey, Asia week has ranked Indian Oil as the 34 th largest of the 1000
top Asian companies.

Indian Oil owns and operates seven of the country’s 17 refineries at Guwahati, Barauni,
Koyali, Haldia, Mathura, Panipat and Digboi.Indian Oil is the market leader in the
petroleum sector with a market share of over 53% and sales of 47.80 million tones in the
year 2000-01.It has an extensive network of over 21,000 sales point which stretches from
Kargil to Kanyakumari, from Kutch to Kohima. During the year 2000-01, IOCL became
the first Indian company to surpass the Rupees One hundred crore sales turnover.
IndianOil’s sincere commitment to Quality, Safety, Health & Environment reflected in
the series of national and international certificates and awards earned over the years. All
the refineries of IndianOil are certified to ISO 9001 & ISO 14001. More than hundred
units of IndianOil are ISO certified.

3.2 DIGBOI REFINERY IN A NUTSHELL

 First refinery East of Suez and first in Asia-Digboi refinery laid the foundation of
petroleum refining in India.
 Pioneered and sustained till 1981 vertically integrated operations encompassing
petroleum exploration and production,refining and marketing.
 First in India to develop concept of customized products –marketed 116 products to
match indivisual customer requirement.
 First in India to utilize natural gas for industrial as well as domestic use.
 First in India to export petroleum products.
 First in India to utilize underground pipelines for transportation of bulk petroleum
products-from Digboi to Tinsukia in 1926.
 First in the world to Vacuum Residue Short path Distillation technology in the
petroleum industry for processing heavy Vacuum Residue.

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  Nursery for development of petroleum refining technology and native skills-from
basic batch processing in retort-stills to modern day processing units.
 Produced generations of “Oil Men” in India who later rose to commanding heights in
shaping the future of the petroleum industry.

DIVISIONS OF INDIANOIL:

 Refineries Division.
 Pipeline Division.
 Marketing Division.
 Assam Oil Division.
 Research & Development centre.

Assam Oil division operates in marketing and refining functions basically in the North
Eastern region of the country.

OBJECTIVES OF THE HR DEPARTMENT.

The primary objectives of HR department are:

 Design and develop an organizational structure with well defined relationships

commensurate with the business plan and corporation strategy.
 Promote and develop corporate attitude amongst employers by fostering harmonious
relations at all levels and inculcate sense of belongings.
 Evolve progressive and pragmatic and personnel policies, procedures and practices
and ensures uniform interpretation and judicious implementation.
 Develop the capability and proficiency of employee and their advancement through
appropriate training and continues knowledge upgradation to face corporate
challenges and technologies.
 Promote and inculcate the culture of employee participation in management.
 Ensure compliance of social and statutory obligation and government directives.
 Inculcate productivity consciousness amongst employees.

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 HR FUNCTION
The HR department promotes recruitment by estimating vacancies and recruits to seek and
attract qualified applicant to fill vacancies. It organises the human resource by manpower
planning to determine the organisational structure and manpower needed to effectively unit
the corporation’s objectives. It also does the selection and classification of employees. In
staffing it conducts introduction or orientation programmes, transfers and promotes
manpower development and training. In motivation it does the job analysis, communication,
collective bargaining, employee discipline, performance evaluation, employee counselling,
establishing safety, mechanism, conducting welfare activities, medical services, recreation.

It carries on the personal research and grievance handling also. It also inflicts punishment for
any proven offence considering the situation of the offence.it also does the handling of public
relation of the corporation. In all, the HR department promotes a human resource philosophy
in corporation and determines the human resource needed of the organisation. It established
the organisation climate and culture of teamwork, mutual respect sense of belonging and
commitment.

3.3 VISION

Energy of India,

Globally admired company.

MISSION

 To achieve international standards of excellence in all aspects of energy and

diversified business with focus on customer delight through value of products and
services, and cost reduction
 To maximise creation of wealth, value and satisfaction for the stakeholders
 To attain leadership in developing, adopting and assimilating state-of-the-art
technology for competitive advantage
 To provide technology and services through sustained research and development
 To foster a culture of participation and innovation for employee growth and
contribution
 To cultivate high standard business ethics and total quality management for a strong
corporate identity and brand equity
 To help enrich the quality of life of the community and preserve ecological balance
and heritage through a strong environment conscience

3.4 SWOT ANALYSIS OF IOCL

11
A SWOT Analysis is a tool to provide a general or detailed snapshot of a company’s health.

In any business, it is imperative that the business be its own worst critic. A SWOT analysis
forces an objective analysis of a company’s position vis-a-vis its competitors and the
marketplace. Simultaneously, an effective SWOT analysis will help determine in which areas
a company is succeeding, allowing it to allocate resources in such a way as to maintain any
dominant positions it may have.

Areas of Strength

 Extensive access to rural market.

 Extensive marketing channels.
 Proper quality-implementation of quality concepts like Six Sigma,etc.
 Nearness to the market.
 Largest pipeline network.
 Location of refineries near to exploration site.
 Large variance of products & services.
 Its growing market share.
 World class Research and Development centre.

Areas of Weakness

 Social obligation.
 Government intervention.
 Dependence on exploration companies for crude oil.
 High cost of raw materials.
 No control over fluctuation in the international market.

Areas of Opportunities

 As IOCL has entered into new markets like Srilanka and Mauritius, it can continue to
spread its offshore marketing ventures to tap new markets and explore business
opportunities.
 Since IOCL is venturing into business avenues like petrochemicals and power
generation, it has entered into a new business arena where it can thrive to be the
market leader as it has already established as one in the refining sector.

Areas of Threats

 Competition from domestic players as well as established MNC’s.

 Private companies provide stiff competition.
 Stiff competition from national and international players and volatility of oil prices
continues to put pressure on the refining and marketing margins.

4.1 HEIRARCHY AND MANPOWER @ IOCL (AOD)

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The grades and designations for the OFFICERS at IOCL (AOD) are as follows:

GRADES DESIGNATION

I EXECUTIVE DIRECTOR.

H GENERAL MANAGER.

G DEPUTY GENERAL MANAGER.

F CHIEF MANAGER.

E SENIOR MANAGER.

D MANAGER.

C DEPUTY MANAGER.

B SENIOR OFFICER/ASST.MNGR.

A OFFICER.

DIFFERENT GROUPS AND GRADES FOR NON-OFFICERS

The different groups and grades for the non-officers at IOCL (AOD) are as follows:

GRADES DESIGNATION

I--------111 UNSKILLED.

1V------V SKILLED.

V1------V111 SUPERVISOR.

IOCL (AOD) another group of employees are present whose jobs are known as SINGLE
CADRE jobs.These are divided into two clusters :A & B.

CLUSTER A: Sweeper,Kitchen helper, General helper , Field worker(Medical),Sramik

grade 111.

CLUSTER B: Cook, Senior Drum plant Operator,Painter,Mason,Sr.Driver

4.2 CLUSTER PROMOTION POLICY AT AOD

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Cluster Promotion Policy is based on the Memorandum Of Understanding signed between the
Management of IOCL(AOD) and AOC Labour Union on 26.04.1990 and subsequently
revised on 18th September 1996.The main tenets of the policy are:

 Employees will receive promotion from one Salary Grade to the next higher
Salary Grade within the same cluster in a period of 4 years to 7 years on the
basis of weight ages assigned to established factors of Seniority, Qualification and
Performance(as reflected in the CRs). An employee securing minimum of 60
marks will be promoted to the next higher salary grade (within the cluster ) subject
to the employee having completed minimum 4 years in the existing salary grade.
 The weight ages assigned to the various factors are:
 Seniority-5 marks for each completed year of service and 1.25 marks for each
completed quarter upto 30th June of the current year.
 Qualification-Marks for qualification are distributed according to the cluster
and nature o the job.
 Performance-Outstanding=20 marks
Above satisfactory=15 marks
Satisfactory=10 marks
Note: Employees rated “Below Satisfactory” will not be eligible
for promotion in the next three years. Hence the requirement
that employees have to be informed about “Below
Satisfactory” rating in writing within 31st March of the next
year.

 If an employee does not secure the prescribed minimum of 60 marks, such an

employee will be promoted to the next higher salary grade on completion of 7 years in
the existing salary grade.
 Inter-Cluster Promotion- Employee in Grade V(Cluster ‘B’) who do not move to
cluster ‘C’ by normal promotion against vacancies and all other existing avenues and
criteria of promotion, will be placed in the pay scale of Grade VI(SG) on completion
of 5 years and attaining 60 marks. If employees d not qualify as above till they
complete 7 years service, they shall be placed in the pay scale of VI(SG) on
completion of 7 years in Grade V(even if they do not score 60 marks). The employees
so placed in the above manner will continue to do the same job and form part of
Cluster ‘B’. Seniority in the higher grade would be given from the date of placement
in SG (Special Grade).
 Similar is the policy for promotion from Cluster ‘A’ to Cluster ‘B’.

 Single Cadre Positions- Employees in the single cadre positions in Cluster ‘B’ which
have been identified in the Agreement dated 26.04.1990 are placed in SG-I in
GradeVI would also be granted Special Grade-II(SG-II) on completion of 5 years and
attaining 60 marks.

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  Stagnation in Grade VIII- One additional increment at the rate of last increment
drawn, on completion of 6 years in Grade VIII would be given as Personal Pay ,to be
treated as Basic Pay for all purpose. Another increment would be given on completion
of 10 years in Grade VIII, subject to a minimum of 2 “Outstanding” ratings in the
preceeding four years.

The eight salary grades have been divided into three clusters based on the skill
requirements in each cluster

Salary Grade Cluster Illustrative Jobs*

I,II,III A-Unskilled Shramik,Messanger,Helper,etc
IV,V B Optr.‘D’/Optr‘C’, Technician Gr.III, Jr. Clerk
Typist/Sr Clerk Typist, Jr. Accts Clerk/Sr. Accnts
Clerk, Rigger Gr.III/II,IOW, Hospital Attendant,
Chemist, Teacher, Optr. LPG,Dipman,etc
VI,VII,VIII C-Skilled Optr.B/A, Technician, Engr. Asstt. / Chemist, All
clerical posts.

*- only illustrative, not exhaustive

The following jobs have been categorised as Single Cadre:

Cluster ‘A’ Sweeper, Kitchen Helper, General Helper/ Field Worker,Medical,

Drum Plant Operator, Sramik Gr.III
Cluster ‘B’ Cook, Sr. Drum Plant Operator, Painter, Mason, Body Repairer, Sr.
Driver(Tank Lorry)

4.3 WEIGHTAGES ASSIGNED TO VARIOUS FACTORS FOR PROMOTION.

1.) SENIORITY : 5 Marks for every completed year of service ,and 1.25

15
 marks for every completed Quarter upto 30th June of the

current year.

2.) PERFORMANCE : Outstanding 20 marks.

Satisfactory 10 marks.

CLUSTER A (General) CLUSTER B & C (Non- technical)

QUALIFICATION MARKS QUALIFICATION MARKS.

GRADUATE /DIPLOMA (3 YRS) 25 MSW/MBA/ICWA/CA- 25.

Relevant to the
discipline.
INTER/HIGHER
SECONDARY/MATRIC+ITI
22

22
MATRIC/NON-MATRIC +ITI PG
20

20
GRADUATES

CLASS VIII PASS. 15

15
INTER/HSS
PRIMARY PASS. 10

10
MATRIC
LITERATE & NIL 5

5
CLASS VIII

0
Below Class VIII

3.) QUALIFICATION :

CLUSTER ‘B’ & ‘C’(technical)

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PRODUCTION & QUALITY CONTROL OTHER THAN PRODUCTION & QUALITY CONTROL.

QUALIFICATION MARKS QUALIFICATION MARKS

AMIE-relevant to the 25 AMIE-Relevant to the 25

discipline discipline.

M.Sc (Phy/Chem) 22 M.Sc or B.Sc+ITI or Class 1 certificate 22

B.Sc
B.Sc (Chem) or Diploma-3 20 Matric + ITI 20
yrs. Matric + Diploma-3 yrs
Matric + Boiler Class 1
Matric + Draughtsman
Matric + Sub-Officer course
Matric + Heavy Vehicle License.
Inter/B.A / B.Com +ITI or BA cls 1st /
2nd certificate.

Graduate other than Matric / Inter / B.A /B.Com

Science/Inter/HSS ; 15 Class VIII + B.A Class I. 15
Class VIII + Wireman.
Below Class VIII + 5 yrs
apprenticeship.
Class VIII + Fire Fighting course.
Class VIII + Heavy vehicle.

Matric 10 10
Class VIII pass
Below VIII+ B.A Class 1 or

CMWLD.

Class : VIII pass 5

Primary pass
5
Below VII + HV

NIL
Below Class VIII 0 0

5.1 METHOLOGY OF THE STUDY

i)NATURE OF THE STUDY

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 EXPLORATORY: The study can be said to be exploratory in nature as it is unknown to
the researcher if any such study had been conducted in the past and thus, has not been
considered here.
DESCRIPTIVE AND ANALYTICAL: It is also descriptive in nature as it lays down the
existing promotion policy at Assam Oil Division and analyzes the employees’ awareness and
motivation with reference to these policies.

ii)METHOD OF SAMPLING
Simple random sampling was used .In such sampling we select the sample randomly as
every element of the population has an equal chance of being selected.

iii)SAMPLING FRAME
Non-officers of the Assam Oil Division of Indian Oil Corporation Ltd.from different grades
(I-VIII) and different departments.

iv)SIZE OF THE SAMPLE

The sample size of 150 was decided upon, after due consideration with the organizational
guide .this was approximately 10% of the total population size. After these respondents were
approached with the questionnaire in a random fashion, collecting samples in the process
from the various offices, departments,site offices etc.

v)DATA COLLECTION

PILOT SURVEY : A pilot survey was done taking 5% of the sample of employees and the
questionnaires were also tested before the final distribution.

PRIMARY DATA :Collection of information through standardized questionnaires. A

questionnaire was prepared for all the non-officers.It included questions both open- ended
and close-ended, rating method and likeart scale. Ther was informal discussion with the
employees.

SECONDARY DATA : Secondary data consisted of materials provided by the organization,

in-house journal like- Batori, Silver Jubilee, Corporate profile, Departmental manuals,
intranet, organizational websites etc.

5.2 ANALYSIS

ANALYSIS OF PRIMARY DATA.

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Primary data was collected from the employees i.e. the non-officers with the help of a
questionnaire. The analysis of primary data with reference and in coherence with the
objective of the study is presented here under.

ANALYSIS OF THE QUESTIONNAIRES.

Promotion policy constitute an important part of a company’s endeavour to look after the
well being and development of it’s employees in a way which will not only help in their
career development but also boost their self esteem .These two factors will in turn lead to job
satisfaction. Employees who are satisfied with their jobs are more productive for the
organization .Proper employee development methods including proper and timely promotions
also minimizes the loses which are otherwise incurred by a company due to attrition and high
employee turnover ratio. However, to have an idea whether the promotion policy of A.O.D is
effective enough or not, whether the employees are aware of it and in turn motivated to work
harder, it is very important to find out their views and knowledge regarding the same.

Presented below are the results along with figures and graphical representations. The identity
of the persons was concealed for reasons better known.

The study was started by analysing the profile of the respondents which include their
departments, designation, grade, age, gender, working hours and years in the organization.

RESPONDENTS PROFILE

AGE GROUP OF RESPONDENTS

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The ages of the respondents (158) were divided into specific age groups for the ease of
analysing. The groups were :25-30 years, 31-36 years, 37-42 years , 43-48 years, 49-54
years,55-60 years. The figures were as follows:

AGE GROUPS NUMBER OF RESPONDENTS.

25-30 4

31-36 10

37-42 17

43-48 65

49-54 45

55-60 17

25-30 yrs
31-36yrs
37-42yrs
43-48yrs
49-54yrs
55-60yrs

Pie chart representing the distribution of the age of respondents.

INTERPRETATION

Thus,it can be seen that most of the respondents are in the age group of 43-48 years followed
by the age group of 49-54 years.

DIFFERENT GRADE OF RESPONDENTS

Respondents from various grades had answered the questionnaire. The various grades of the
respondents are represented below.

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 GRADES NO.OF RESPONDENTS.

III 2

IV 7

V 7

VI 11

VII 28

VIII 103

120

100

80

60

40 Different grades of the

respondents (current
20 positions)

0
II
EI V
A D
DEI EV I
GR A A D EV VI
I
II
GR GR A D E VI
GR AD E
GR AD
GR
Graphic
al representation of the various grades of the respondents.

INTERPRETATIONIt can be clearly observed that the maximum respondents are from
Grade VIII which is the highest grade in the non-officers category and it is their promotion
which forms the backbone of this study.

WORKING HOURS OF RESPONDENTS

Respondents were asked about their working hours in the organisation. Some of the
employees in the organisation work in shift, whereas some work for 36 and others for 48
hours.

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 WORKING NO.OF RESPONDENTS
HOURS
36 81
48 18
SHIFT 59

90

80

70

60

50
36 hours
40 48 hours
Shift
30

20

10

0
Working hours

Graphical representation of the number of employees in the 3 different

types of working hours.

INTERPRETATION

The employees inside the refinery mostly work in shifts and some have 48 weely working
hours whereas, those in the general administration and other departments are mostly have 36
weekly working hours .

RESPONDENTS NUMBER OF YEARS IN THE ORGANISATION

It was very important to consider the respondents number of years in the organization as time
factor is very important for implementation of a promotion policy and to test its effectiveness.
The number of years were once again divided into groups which are as follows:1-5 years,
6-10 years,11-15 years,16-20 years, 21-25 years,26-30 years and 31-35 years. The figures for
each group are as follows:
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 NO.OF YEARS NO.OF
RESPONDENTS

1-5 4

6-10 3

11-15 13

16-20 39

21-25 45

26-30 31

30-35 23

30-35 years

26-30 years

21-25years

16-20 years Number of years in the

organization
11-15 years

6-10 years

1-5 years

0 5 10 15 20 25 30 35 40 45

Graphical representation of the number of respondents in each group.

INTERPRETATION

This table clearly shows that most of the respondents have been working in A.O.D for more
than 20 years which is quite a long time span. Although the respondents have worked for
such a long time they have been deprived of promotion.

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

It was very important to consider the educational qualification of the respondents because it
has always been noticed that educated people are generally more aware than the less educated
ones. The following table shows the number of respondents in each level of qualification.

23
 EDU.QUALIFICATIO NO.OF
N RESPONDENTS

Under matriculate 6

Matriculate 4

H.S 11

Graduate 106

Post graduate 13

Others(diploma etc) 14

Graduate
Post graduate
Matriculate
Under matr
Others

Pie chart showing the distribution of respondents in each type of qualification

INTERPRETATION

The pie diagram clearly shows that majority of the respondents are Graduates and yet have
been deprived of promotion in the long run as will be shown in the later part of the analysis.

EFFECTIVENESS OF THE PRESENT PROMOTION POILCY

QUESTION NO.1: How clear are you about the organization’s promotion policies?

CLARITY LEVEL NO.OF RESPONDENTS

Very clear 14

24
 Clear 80
Manageable 20
Need help 17
No idea 27

Number of

Number of

Number of

Number of

Number of

Pie chart representing the levels of clarity of the respondents about promotion policy(p.p)

INTERPRETATION

It can be seen that majority of the employees are clear about the promotion policy but it is
also disheartening to see that in spite of their long service period many are still stuck with
“manageable” or “need help” levels of clarity.

QUESTION NO.2:Do you agree that the current 50/50 promotion policy is effective?

RESPONSE NO.OF RESPONDENTS

Strongly agree 0

Agree 31

25
 Neither agree nor disagree 35

Disagree 59

Strongly disagree 33

Pie chart representing the viewpoints of the respondents regarding the

effectiveness of the 50-50 promotion policy.

INTERPRETATION

The table above clearly shows that the respondents do not believe the 50/50 policy to be
effective at all. This is a dangerous trend as this has found to give rise to a lot of resentment
in the minds of the employees. Existing employees believe that this policy has not helped in
their career development in any way .

QUESTION NO.3: Do you believe that the non-availabiltyof vacancies is a mojor

hindrance in your career progression?

26
 RESPONSE NO.OF RESPONDENTS

Yes 96

No 62

Total 158

Yes
No

Pie chart showing respondents who think non availability

of vacancies is a hindrance for promotion

INTERPRETATION

This shows that around 61%(60.7%)of the respondents have the feeling that it is because of
this shortage of adequate vacancies mainly in the officers(Grade A)level that they haven’t
been able to move from the non-officers to the officers category even after so many years of
service.

27
QUESTION NO.4: Do you think the Departmental Promotion Committee is doing a
good job in implementing the promotion policies?

RESPONSE NO.OF RESPONDENTS

Yes 51

No 107

Total 158

Yes
No

Pie diagram showing respondents’ opinion about the DPC

INTERPRETATION

Around 67.7% of the respondents believe that the Departmental Promotion Committee is not
doing a good job.In reality the employees do not believe that the D.P.C can look into the
matter efficiently and solve their promotion related problems.

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QUESTION NO.5:Do you think your educational qualification is important in
determining your promotion?

Response No. of respondents

Strongly agree 30

Agree 89

Neither agree nor disagree 31

Disagree 5

Strongly disagree 3

No.of Strongly Agree

No.of.Agree
No.of.Neutral
No.of .Disagree
No.of.Strongly Disagree

Pie chart representing the viewpoint of the respondents about the

importance of qualification in order to get promoted.

INTERPRETATION

The majority of the respondents believed that educational qualification is very essential in
order to get promoted.

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 EMPLOYEE AWARENESS OF PROMOTION POLICY

QUESTION NO.6:Are you aware of the time –frame required for promotion?

To this question ,out of 158 respondents,the following were the responses. Almost
85%(84.8%)know about the required time frame for promotion.

YES=134 NO=24

QUESTION NO.7:Is favouritism exercised during promotion?

This question was essential because on discussing with them it was found that many of them
believed foul play and favouritism is being exercised during promotion due to which they
have been deprived of the promotion which they otherwise deserve. This shows that around
54.4% of the respondents do believe that favouritism is being exercised during
promotion.This feeling is very dangerous as it results in the lack of motivation in the
employees to work harder as they always have this feeling at the back of their head that their
hardwork will be futile in the long run eventually. To this question, out of 158
respondents,the following were the responses

YES=86 NO=72.

QUESTION NO.8:Are you aware of the marking system?

This question was asked in order to test whether the respondents knew how they were marked
for their performance and what marks would they score.This knowledge is very essential
because the employee is then very aware that what can fetch him/her more marks and assist
them inorder to get promotedThis surely a good sign of employee awareness as 62.6% were
aware of the marking system. To this question, out of 158 respondents,the following were the
responses.

YES=99 NO=59

QUESTION NO.9: Are you aware of the attributes of the “Confidential Reports”?

This is the most astonishing part because around 70 %(69.6%)had absolutely no idea about
the attributes of the CRs. Many believe that it is in the C.Rs that their scores are
manipulated.The respondents have the feeling that it the C.Rs which have denied them their
promotions. Out of 158 respondents,the following were the responses

YES=48 NO=110.

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EXTENT OF EMPLOYEES MOTIVATION WITH REGARD TO PROMOTION POILCY

It is very important for an organization to have a promotion policy which motivates the
employees to work harder in achieving the organizational as well as their personal goals.A
progressive,modern and effective promotion policy ensures the above.For an organization as
old as Assam Oil Division,it was important to find out the mentality and motivation level of
the employees and in this study ,the non-officer have been taken.To do so,the following
question was asked.

QUESTION NO.10:Does the promotion policy motivate you to work harder?

Around 65% of the respondents are not at all motivated to work harder as they believe that it
will be futile because inspite of the effort they will not be promoted.This is very dangerous
for the organization as the employees who would not put in their whole hearted effort and
work towards achieving excellence. To this question, out of 158 respondents,the following
were the responses,

YES=55 NO=103

QUESTION NO11: Does the promotion policy create a competitive and healthy work
environment?

55% of the respondents do not believe that the current promotion policy has been able create
such an environment. An effective promotion policy creates a very healthy and competitive
work environment where every employee works in order to become the best amongst the
rest.The question was asked to test whether the promotion policy at A.O.D is able to achieve
the same results. Out of 158 respondents,the following were the answers

YES=71 NO=87

QUESTION NO12: Do you think that the good and sincere workers in your
organization are promoted on time?

66.4 % of the respondents believe that even if they work sincerely and efficiently their
efforts will bear them no results as they will never be rewarded or promoted on time.This has
made them complacent,and demotivated and has drained out the enthusiasm from them.
Employees are found to be motivated to work harder when they know that they will be
awarded with promotion or incentives etc.on time if they work hard and very sincerely.

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CALCULATION OF THE SCORES RECEIVED BY THE VARIOUS ATTRIBUTES
OF PROMOTION BY THE EMPLOYEES ACCORDING TO THEIR PREFERENCE.

The respondents were asked to rate the following attributes of promotion according to their
preference. A score of ‘1’was given to the most prefered attribute whereas ‘5’ was for the
least favourite one. The scores were calculated in the following manner:

Attributes 1 2 3 4 5 Total
Seniority 46 56 36 8 12 158
Confiential report 23 24 35 40 36 158
Qualification 87 40 23 6 2 158
Vacancy 3 6 19 52 78 158
Length of service 10 25 42 52 29 158

90
80
70
60
50
40 seniority
CR
30 qualfn
vacancy
20
LOS
10
0
1
2
3
4
5

INTERPRETATION

32
 It was observed that overall the most preferred and important attribute for the non-officers is
qualification(rank 1),followed by seniority (rank2),c.rating(rank 3),length of service(rank
4),and finally vacancies(rank5).

5.3 FINDINGS

The findings of the study are summed up as below:

 There is a huge number of stagnated employees in Grade VIII

 Employees (non-officers) are not very happy with the current 50-50 promotion policy
and the way it has been implemented till date.
 Employees are not very aware about certain aspects of promotion policy like the
confidential ratings or CRs.
 Non-officers in Grade VIII are not motivated enough to work harder as they believe
they do not have chances of being promoted to officer rank under the current
promotion policy.
 The promotion policy is not found to be transparent by the respondents.
 Respondents share the common feeling that their promotion related grievances will
never be solved by the top management.
 Steps need to be taken to make the promotion policy more effective, the employees
more aware about the same and thus in turn, keeping them motivated.
 After analysing the profile of the respondents a very startling observation can be
made. The majority of the employees are in the age group of 45+, they have been with
A.O.D for more than 20 years and majority of them have become stagnated in Grade
VIII inspite of having the required qualifications and work experience.
 As part of the study it was seen that there was a significant change in behavior
amongst the employees as they were not being promoted. It was found that maximum
number of employees felt very confident after their promotion. Therefore, we can
conclude that there are changes in the behavioral pattern due to stagnation of the
Grade VIII employees.

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6.1 RECOMMENDATIONS/SUGGESTIONS

 The ability to perform should be considered as the main factor for promotion. This
criteria is missing in the current promotion policy. A supervisory body should be
appointed who can monitor the employees and award the eligible candidates who
have the ability to perform greater responsibilities and adequate promotions.
 More transparent promotion policy should be adapted.
 Proper notification of openings and vacancies in the officer’s cadre A so that
interested and eligible non-officers can apply.
 Introduction of new Grade XI has been proposed by many respondents.
 Non-officers with 20 years or more years of service should automically be promoted
to officer grade like in other I.O.C.L refineries,i.e. in short, similar promotion policy
in A.O.D as in other I.O.C.L refineries.
 By creating more vacancies in officer Grade A to accommodate the promoted non-
officers.
 Some employees believe that introduction of two special grades in place of a single
one in Grade VIII, with increased monetary benefits would also help to a large extent.
 In place of the 50-50 promotion policy, it would be better for existing employees if it
becomes a 60-40 promotion policy.
 Similar recreational and other benefits likewise of the officers to the children of the
non-officers so that there is some amount of mental satisfaction. Motivation is a very
essential tool as it results in high performance, ensures low employee turnover and
absenteeism. Hence employees must be rewarded for job well done.
 Proper training must be given to employees for improved skill, training & ability
to reduce discontent and unrest. By undergoing training suitable and competent
workers can be recognised for their logical growth and advancement within the
organisation.

34
6.2 CONCLUSION

The most important asset of any organisation is its human resource. A.O.D has always
undertaken various employee welfare measures to satisfy the needs and wants of its
employees. At IOCL the level of employee satisfaction is mostly very high. Apart from that
it is also important to keep in mind that only the employees who are satisfied with their jobs
have been found to have high self esteem, are loyal to their employer and also very
productive for the organisation.

Promotion policy plays an important role in leading to such job satisfaction. Employees who
are aware of such policies and believe its effectiveness are the ones who are motivated to
work harder. Therefore, at A.O.D the top management should sincerely work towards solving
doubts and grievances of the non-officers so as to prevent a hostile and unhealthy work
environment.

Thus it should be a combined effort from all levels of the work force at A.O.D, which will
make the current promotion policy more effective, progressive, modern and the employees
i.e., the non-officers in this case more aware about the same and keep the motivated to strive
for excellence.

SCOPE FOR FURTHER STUDY

The present study revealed that in the following areas, further study could be done in the near
future which will surely help the organisation to achieve its goals.

 How can the promotion policy be made more transparent and easy to understand.
 How can the grievances of the employees about the promotion policy be solved.
 Methods to motivate the existing employees specially the non-officers.
 Causes for differential implementation of the promotion policy at A.O.D as compared
to the other divisions of IOCL
 50-50 promotion policy a boon or a bane.

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