HPCLIntroductionHPCL is a Government of India Enterprise with a
Navratna Status, and a Fortune 500 and Forbes 2000 company, with an
annual turnover of Rs. 1, 69, 011 Crores.HPCL operates 2 major
refineries producing a wide variety of petroleum fuels &
specialties, one in Mumbai (West Coast) of 6.5 Million Metric
Tonnes Per Annum (MMTPA) capacity and the other in Vishakhapatnam,
(East Coast) with a capacity of 8.3 MMTPA.HPCL also owns and
operates the largest Lube Refinery in the India producing Lube Base
Oils of international standards, with a capacity of 335 TMT. This
Lube Refinery accounts for over 40% of the India's total Lube Base
Oil production.HPCL has earned "Excellent" performance for fifteen
Consecutive years up to 2005-06, since signing of the first MOU
with the Ministry of Petroleum & Natural Gas. Consistent
excellent performance has been made possible by highly motivated
workforce of over 11,226 employees working all over India at its
various refining and marketing locations.HPCL continually invests
in innovative technologies to enhance the effectiveness of
employees and bring qualitative changes in service. Business
Process Re-Engineering exercise, creation of Strategic Business
Units, ERP implementation, Organizational Transformation, Balanced
Score Card, Competency Mapping, benchmarking of refineries and
terminals for product specifications, ISO certification of
Refineries and Supply Chain Management are some of the initiatives
that broke new grounds.History1952:The Company was incorporated in
the name ofStandard Vacuum Refining Company of India Limited on
July 5, 1952
1962:On 31st March, 1962 the name was changed toESSO Standard
Refining Company of India Limited.
1974:Hindustan Petroleum Corporation Limited comes into being
after the takeover and mergerof erstwhileEsso StandardandLube India
Limited
1976:Caltex Oil Refining (India) Ltd. - CORILis taken over by
the Government of Indiawith anOrdinancein 1976,subsequently
ratified by anActin 1977 andmerged with HPCLin 1978.
1979:Kosan Gas Company,the concessionaries of HPCL in the
domestic LPG market, aretaken over and mergedwith HPCL.
HPCL thus comes into being after merging 4 different
organizations at different points of time.
PMS process at HPCLPerformance Appraisal System Process
flowTarget Setting
Mid-year Review and Feedback
Final Review and Feedback
Ratings by RO/RVOs
Countersigning ProcessModeration Process
Fig: 1.1Performance Appraisal System employed in HPCL is based
on balanced scorecard. The four perspectives under which the
performance planning and review process is carried out at HPCL are
Financial / Physical, Customer Delight, Learning and Growth and
Improvement in Process. These perspectives are derived from the
Balanced Scorecard concept.Every major activity that is carried out
by the employees as part their job responsibilities should be
viewed from the above four perspectives: Activities / Outcomes that
directly impact the bottom line of the business can be categorized
under the 'Financial / Physical' perspective. Activities / Outcomes
that directly impact the satisfaction of the customer can be
categorized under the 'Customer Delight' perspective. Activities /
Outcomes that are directly related to the skill / competency
development of self or subordinate can be categorized under the
'Learning and Growth' perspective. Activities / Outcomes that
directly create improvement in the internal processes can be
categorized under the 'Improvement in Process' perspective.The
performance appraisal system in HPCL is deployed on an online
platform. The online platform enables easy accessibility, user
friendliness, better administrative control, seamless process flow
and effortless storage and retrieval of appraisal documents.However
HPCL believes that the online appraisals should not replace the
one-on-one communication process between appraiser and appraisee.
It is essential that there is regular interaction and discussions
during target setting and review stages. Online appraisal should
merely be the tool to record the discussions and feedback. In
addition to the online appraisal HPCL has recently added an Audio
Function to their process. This Function allows for recording of
the conversations between Appraiser and Appraisee during the Target
setting and review stage. These recordings would also be helpful in
grievances related to performance ratings.The target setting
process in the Online Performance Appraisal System first involves
the identification of Key Performance Indicator (KPIs). These are
statements that describe the end outcomes to be achieved / critical
outputs to be produced during a particular period, which is
normally the financial year. Only those major activities would lead
to a certain broad outcome or output should be classified as KPIs.
The second step involves the setting of Targets for each KPI. These
targets indicate the degree to which a particular outcome is
required to be achieved during the specified period for each Key
Performance Indicator. The targets are required to be set in the
specified format under the four perspectives in the online
performance appraisal system only after one to one discussion with
the Reporting Officer.The next stage is the mid- year review. It
involves taking stock of the extent to which the targets are
achieved and in this context, to realign priorities or undertake
mid-term corrections to ensure that the future actions are planned
towards achieving the targets set. Here, the Appraisee and the
reporting Officer, in a one on one discussion discuss the progress
made towards achievement of targets pertaining to each KPI.The next
step is the process of reviewing the overall performance and
achievements of the officer at the end of the appraisal cycle
against the targets set at the beginning of the year i.e. the Final
Review. Final review and feedback enables the Appraiser and
Appraisee to take stock of the outcomes achieved during the year
against the targets set. It enables the Appraisee to keep the
Reporting Officer informed on the efforts put in towards achieving
the set targets and to report reasons for non-achievement of any
specific targets. It provides the Appraisee with an opportunity to
have qualitative feedback from the Reporting Officer on the overall
performance delivered by him / her during the year.Every Appraisee
gets an overall score out of 100 against overall performance,
managerial competencies and values, as applicable to the
grade:Salary GradePerformanceManagerial CompetenciesValues
A/B/C8020-
D/E/F72208
G/H/I602020
After the completion of the final review, the Reporting Officer
assigns ratings to the appraisee on a five point scale against
overall performance, managerial competencies and values, as
applicable to the grade.
DescriptionGuidelines
Exceptional Performance; Rarely equaled (1)Far exceeds all
individual goals/targetsas set in the performance planPerforms all
job responsibilities far above the requirement as specified in the
job description
Performance better than normally expected (2)Meets all and
exceeds most individual goals/targets as set in the performance
planPerforms all job responsibilities in excess of the key
requirements for the job asspecified in the job description
Normally expected performance, producing required results
(3)Meets all individual goals/targets set inthe performance
planMeets the overall standard and/or expectations established for
the jobas specified in the job description
Performance less than normally expected of theposition; not
producing required results consistently (4)Generally meets
individual goals/targetsas set in the performance planDoes not meet
the overall standard for the job as specified in the job
description
Invariably poor performance (5) Does not meet most individual
goals/targets as set in the performance planDoes not meet job
requirementsPerformance demonstrates significant weakness in most
areasCounseling and extensive training is required;Individual
performance needs to be re-evaluated within six months
The appraisal document is then routed to one or more Reviewing
Officers, as the case may be, for their assessment of the
appraisee's performance. This is essentially done to assess the
performance of the officer at a broader level in comparison with
the similarly placed officers and to correct any biases whether
positive or negative that may have coloured the judgement of the
Reporting Officer.Moderation process aims at rationalizing the
possible biases that may have crept in during the individual
assessment by having group of senior level officers undertake an
independent and collective review of both the performance of the
appraisees' and the assessment by Reporting Officers and Reviewing
Officers.In this process, all the employees in the Corporation are
segregated into groups based on the salary grade and job family
(promotion stream).Absolute and Relative Comparison is then carried
out in respect of officers in these groups by the Moderation
Committee members in line with the pre-defined bell curve
percentages. In absolute comparison, performance of the employee
against the benchmarked standards of the positions is evaluated. In
the relative comparison, the performance of one employee is
evaluated in comparison with the other employees in the group. The
moderation process is mandatory as per the DPE guidelines.HPCL has
a full-fledged Corporate Training Department, to augment the
learning and development requirements of its officers. All training
initiatives are planned in order to address new needs required by
change in the market scenario. Training needs for managers are
identified as follows: Individual Level: Mainly through
recommendation from thePerformance Appraisal System. Functional /
Departmental Level:Customized Training programs are developed for
the departments in consultation with the SBU/Functions.
Organizational Level: Individual Development Plan obtained from the
Competency mapping exercise is used to provide specific Training to
bridge the observed the employee skill gaps.
