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HPCLís Strategies for Sustainable Performance
Over the years, Hindustan Petroleum Corporation Limited (HPCL) has grown to be a strong player with best in class infrastructure, committed employees, well-established distribution network, robust Human Resource and Information systems and profitable operations.
H Kumar, Executive Director - Corporate Strategy and Planning, HPCL, shares about the various motivational strategies in HPCL along with their future plans.

According to Kumar, the customer centric initiatives of HPCL have seen HPCL growing above Industry in marketing sales consistently over the last six years. HPCL is a profit making PSU and has posted a net profit of Rs. 1,539 crore during 2010-11. In the 3rd quarter of 2011-12, HPCL had reported Rs. 2,725 crore profit. The turnover for the year ended 31st March 2011 was Rs. 1,32,670 crore as compared to Rs. 1,08,599 crore in the previous year. Net fixed assets (including capital work in progress) increased from Rs. 19,194 crore as on 31st March 2010 to Rs. 22,443 crore as on 31st March 2011. With the subsidy mechanism, the problem for controlled products is of delay in realisation of the subsidy element.

During the year 2011, the Gross Refining Margin (GRM) for Mumbai and Vizag refineries improved to USD 4.65/bbl and USD 5.81/bbl respectively, almost double the GRMs for the year 2009-2010. Further, the crude oil basket was expanded by adding 12 new crudes during the year 2010-2011. To reduce the dependence on import, the production of LPG and MS was enhanced by increasing the secondary processing capacity in line with the increased crude distillation capacity.

Future Plans
Kumar mentions that in the next five years, HPCL plans to invest about Rs. 40,000 crore. Currently, HPCL is focused on two major projects on the refinery front; one is setting up a green field 9 MMTPA HPCLís Strategies for Sustainable Performance Over the years, Hindustan Petroleum Corporation Limited (HPCL) has grown to be a strong player with best in class infrastructure, committed employees, well-established distribution network, robust Human Resource and Information systems and profitable operations. H Kumar, Executive Director - Corporate Strategy and Planning, HPCL, shares about the various motivational strategies in HPCL along with their future plans.

refinery in Ratnagiri, Maharashtra and another is expansion of the existing capacity at Vizag refinery by 9 MMTPA. In Marketing there is growth of around 7.7 per cent in the current year. Plans have been drawn up to diversify into evolving business lines like natural gas and alternate energy and expand in both the retail and direct sales, setting up infrastructure like new terminals, new depots, new pipelines, new LPG expansions, etc. for complementing the growth plans.

Project Funding Kumar reveals that HPCL has planned projects to achieve corporate objectives during the XII Plan. Funding for the planned projects is via internal resource generation and external borrowings.

Learning organization
Kumar shares that HPCL is a learning organisation. The vision for the company has been co-created by all employees. HR plays the role of a change agent and strategic partner. To ensure learning and development, training is a part and parcel of employee progress right from the day they join the organisation. Recruitment in Management Cadre (Officers) is done mainly at the entry level, excluding specialised positions. Personnel recruited at the officer trainee level are put through a programme called Samavesh, where, at the induction level, they are provided formal training to give an over view of the organisation and the entire operations across all the divisions. By the end of the two weeks programme, they get a fair idea of what the corporation is all about. This is followed by a one week specific function training based on the postings of the employee before taking up their job. Further, for regular employees assigned to different duties and functions, training both on behavioral and functional aspects is given based on the competency needs arrived through competency development centers. Training needs are also identified on a yearly basis during the appraisal cycle for enhancing career development.

Motivational Strategies
Employees are the most valuable asset for any organisation. Motivating and safeguarding the interests of the personnel drives business growth.

Apart from training, HPCL employs various methods for keeping the entire team motivated. For e.g., an open access system of intranet is available and anyone, irrespective of where they are across the organisation, can provide inputs and drop suggestions in whichever field they want to, under ¬Think, Share and Win  programme. HPCL has a mechanism for recognising outstanding achievements through prestigious awards. One of them which is called the Outstanding Achievers Award, wherein people across grades up to the middle level management are recognised. Another one is called the HP Icon Award, wherein the Senior Manager, Chief Manager and DGM level officers are recognised for outstanding contributions by them in their areas. Employees are nominated for the Awards either by their colleagues, peers, subordinates or their supervisors and it goes through a selection process. Employees attach huge prestige with these awards and Management gives significant importance to recognition of employee efforts. Another recognition called the HP Gaurav Award is for the individual contributions by the non-management employees such as administrative staff, clerical people, workmen etc. They also go through a selection process. All the awards are given by the Chairman and Managing Director (C&MD) of the company, in the presence of the Directors and senior officers.

Recognising employee efforts by awarding performance in forums where the top management is present and in front of large number of employees make the employees proud and inculcates belongingness to the corporation. On the other side, HPCL identifies the training needs and provides the necessary training to improve employee performance. This strategy of providing training performance and recognising employee efforts has proved to be very effective at HPCL.

Finance and Corporate Enablers
As far as corporate enablers are concerned, Kumar feels that HPCL has got a very strong and robust IT system which supports all Business processes. Starting from the joining in the corporation through ¬Samavesh  induction till getting all terminal benefits at the time of retirement termed ¬Santhusti  all HR processes have been automated. Further, the Financial, HR and Procurement service delivery processes are e-enabled. This enhances the speed, ensures correctness and transparency giving HPCL a cutting edge over competitors.

All business processes of HPCL are either on the ERP system or bolt on to the ERP. An example is the retail automation or terminal automation; almost all systems are automated thereby increasing accuracy and ensuring correctness. To ensure customer confidence, HPCL automated the service delivery at retail outlets under the brand ¬e-fuel stations . HPCL is constantly looking to create value for both customers and stakeholders.

HPCL lays importance on corporate governance. All monetary transactions are via-e-payments with both internal and external customers. Kumar said, ĄToday, close to 93 per cent of collections across India are through e-collections. Similarly, all the payments to employees and vendors are done via e-payment. Also, we have facilitated e-tracking bill system and e-procurement for vendors. To build in transparency into procurement system, HPCL has signed a MoU with Transparency International India (TII)."

Kumar mentions that in addition, a number of initiatives are being under-taken by HPCL Management to enhance capability, build leadership pipeline, infrastructure expansion and improve the overall performance of HPCL.