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The Challenge of Privatization Organization Redesign at Bharat Petroleum Corporation Limited

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  1. 1. The Challenge of Privatization<br /> Organization Redesign at Bharat Petroleum Corporation Limited <br />
  2. 2. Company Profile Bharat Petroleum<br /><ul><li>Integrated Petroleum Refining and Marketing Company
  3. 3. Fortune 500 & Forbes 2000 company
  4. 4. Sales Volume 27 Million MT
  5. 5. Revenue US $ 31 Billion per annum
  6. 6. Two Refineries at Mumbai & Kochi and One subsidiary Refinery at Numaligarh
  7. 7. Large distribution network across India 425 locations
  8. 8. Network of 8400 Retail Outlets and 2,200 LPG Distributors
  9. 9. 14200 employees</li></li></ul><li><ul><li> Mostly employee do not understand the nature of the business what we are</li></ul> doing.<br /><ul><li> Our core competence is not refining crude oil but selling products.
  10. 10. BPCL formed a project group of consultants. They formed a project group with</li></ul> over 30 people drawn from different functional and regions with a general<br /> manger as their leader. It was called project CUSECS customer service and <br /> satisfaction.<br /><ul><li> BPCL with a package of vision strategy structure process he asked the</li></ul> management to. Carry through a very broad visioning exercise.<br /><ul><li> 2500 mangers participated. It resulted not only a clear corporate vision</li></ul> identification of shareholders, and statement of core values, but vision were<br /> collectively.<br />
  11. 11. What company want to serve<br />"People above oil. We care for you, we exist because of you".<br /><ul><li> Satisfaction of internal and external customer.
  12. 12. The challenge is to mange this situation with effective leadership</li></ul> at all levels.<br /><ul><li>The finance director and his team of six member members are</li></ul> impossible for leading and coordinating the strategy development<br /> effort at the corporate level.<br />
  13. 13. <ul><li> There would be a wide gap as 70% of our recruits are not as good</li></ul> as our competitors; they are average.<br /><ul><li> The profile experience and expertise for the job are not there.
  14. 14. Organization used the other workshop to trend the staff and</li></ul> communicate and coordinate in each and every department this<br /> has brought about much better understanding and commitment to<br /> the change process.<br />
  15. 15. Human Resources Management at BPCL<br /><ul><li> Plan to work force
  16. 16. HRM Coordinate with each and every employee
  17. 17. Design functional training programmes and deliver them
  18. 18. Anchor organizational learning
  19. 19. Transfer workers within business units
  20. 20. Manage discipline
  21. 21. All SBUs and entities share teams performing these tasks
  22. 22. HRM services team in each region is headed
  23. 23. HR manger and recruit the non management employee</li></li></ul><li><ul><li>Recruitment Process
  24. 24. The company believes in building its human potential rather than buying it
  25. 25. Scope for promotion is limited at BPCL. The average age at BPCL 35-40 years.
  26. 26. BPCL have the system of job rotation. To occupy a responsible position and</li></ul> executive need to have work experience in at least three department.<br /><ul><li>Retraining and Redeployment</li></ul> This is the big challenge as employees do not want to be redeployed.<br />
  27. 27. Purpose of PMS<br />To facilitate achievement of the Vision and Business Plans of the Corporation and foster development of every management staff, thereby gaining competitive advantage in the market<br />
  28. 28. Objectives of PMS<br /><ul><li>Create awareness of Corporate and SBU/ Entity goals
  29. 29. Translate such goals into tangible objectives and measures at the individual level through discussions between Appraiser and Appraise
  30. 30. Identify managerial attributes/ competencies necessary to achieve the goals
  31. 31. Establish a formal process of continuous feedback on performance
  32. 32. Identify developmental plans to enhance performance
  33. 33. Provide an input for deciding career progressions and rewards</li></li></ul><li>The Challenge of strengthening the PMS<br />How do we achieve<br /><ul><li>High degree of alignment between business plan and individual goals
  34. 34. Consistency in KRAs across the similar roles e.g. Territory Managers
  35. 35. High degree of discipline especially in terms of time line
  36. 36. High degree of standardization in end to end PMS process</li></li></ul><li>We strengthened the system by<br />Leveraging technology by launching Integrated PMS on <br /> SAP Platform <br />The Objective:<br /><ul><li>Automate a critical performance monitoring process to ensure 100% compliance and on time delivery of the performance value chain
  37. 37. Demonstrate Transparency, Ease of Use & effective Internal Cross Learning</li></ul>The Action:<br /><ul><li>Automated a comprehensive e-PMS using SAP platform with standardized tools & templates
  38. 38. Touched each & every employee & made their role relevant
  39. 39. Distinctive connection established between corporate strategy & individual KRAs & Objectives by introducing concept of ‘Default KRAS’
  40. 40. Initiated Development of dashboards for each line manager for all tangible measures across for easy review</li></li></ul><li>We strengthened the system by<br />Launch of Strategic Performance Excellence workshops – 30 workshops covering around 900 key role holders<br />The Objective :<br /><ul><li>Establish a comprehensive connect between strategy at the Business level & performance drivers at the individual level
  41. 41. Ensure that each and every role holder sees a clear connect between their individual goals with that of their Business or entities
  42. 42. To help all functions & role holders collaborate to ensure that objectives are best achieved when role holders work as an effective team chasing performance</li></li></ul><li>Performance Management Excellence<br />The Action:<br /><ul><li>Articulation of Strategies for next three years and creating business/entity wise strategy maps Established a Strategy on Page as a learning process for role holders to appreciate strategic cascade.
  43. 43. Converting strategies into measurable indicators at various levels
  44. 44. Setting goals & targets against the standard metrics
  45. 45. Putting in place measurement and monitoring mechanism
  46. 46. Designing a holistic feedback and development process for sustained performance
  47. 47. Reiterating the need for role holders to understand and appreciate how effective leadership will help them build a credible PMS program </li></li></ul><li>THANK YOU<br />PRESENTED BYADNAN MURTAZA9529223123<br />