HRM project on Training And development

A
Comprehensive Project
On
“Training & Development at
Essar Oil Limited. Vadinar, Jamnagar, Gujarat. ”
By
Jay D.Gadhia
TYBBA (GEN.)
Exam No.534
SGM ENGLISH MEDIUM COLLEGE OF COMMERCE &
MANAGEMENT (SEMCOM), VALLABH VIDYANAGAR.
Submitted to:
Sardar Patel University
Vallabh Vidyanagar.

PREFACE
“The theory without practical is lame and practical without theory is blind.”
The concept of Training & Development has become a strategic option in overall growth of an
organisation.
A management student needs practical hands on experience to succeed as a manager. Practical knowledge in
a student’s life is very important. It helps a student to know the real life situation and problems of life.
Training helps a student to interact with the experienced people of the corporate world and hence lean more
from them. Here the student learns how to apply theoretical knowledge in practice.
Being a student of BBA it was a very valuable and memorable experience at ESSAR LIMITED.
We learnt the management subject, came across to various day to day activities of various department in the
organization. The wonderful experience has given me a new light to what I had studied.

ACKNOWLEDGEMENT
No serious and lasting achievements of success, one can ever achieve without the help of friendly guidance
and co-operation of people involved in it.
The success of any project is never limited to the individuals undertaking the project. It is co-operative effort
of the people around and individual. For all effort, behind this successful project I am highly intended to the
following personalities without which this project would never be completed. I find no words to express my
gratitude towards those who were constantly involved with me, through my work.
I would like to express my gratitude towards Sardar Patel University who has put this topic in our syllabus
and like to express my gratitude towards our principal Dr.Nikhil Zaveri Sir for giving us an opportunity to
gain some knowledge about the topic and have a new experience of the same. I would like to express my
sincere thanks to my respected faculty guide Dr.Ajayraj Vyas Sir for helping me in the preparation of the
report and her endless support while were facing difficulties while preparing the report.
I am also personally thankful. Mr. Niraj Limaye (Dy. Human Resources Manager) & Mr. Upendra
Bhayani (HR Dept.) and all the member of Human Resource Department for their co-operation.
Their support made it possible for me to enlarge my knowledge and practical learning. I am also thankful to
all the staff members for their kind support and co-ordination in providing me all the relevant information
regarding the company. And I appreciate their co-operation to make me understand the functioning of
company.

Index
Chapters Content Page No.
Preface
Acknowledgement
Certificate
Chapter 1 Theoretical Discussion 1
Chapter 2 Literature Review 11
Chapter 3 Research Methodology 30
Chapter 5 Data analysis and Interpretation 35
Chapter 6 Recommendations and conclusion 56
Bibliography 59
Annexure 61

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Training can be introduced simply as a process of assisting a person for enhancing his efficiency and
effectiveness to a particular work area by getting more knowledge and practices. Also training is important to
establish specific skills, abilities and knowledge to an employee. For an organization, training and
development are important as well as organizational growth, because the organizational growth and profit are
also dependent on the training. But the training is not a core of organizational development. It is a function of
the organizational development. Training is different form education; particularly formal education. The
education is concerned mainly with enhancement of knowledge, but the aims of training are increasing
knowledge while changing attitudes and competences in good manner. Basically the education is formulated
within the framework and to syllabus, but the training is not formed in to the frame and as well as syllabus. It
may differ from one employee to another, one group to another, even the group in the same class. The reason
for that can be mentioned as difference of attitudes and skills from one person to another. Even the situation
is that, after good training programme, all different type skilled one group of employees can get in to similar
capacity, similar skilled group. That is an advantage of the trainings. In the field of Human Resources
Management, Training and Development is the field concern with organizational activities which are aimed
to bettering individual and group performances in organizational settings. It has been known by many names
in the field HRM, such as employee development, human resources development, learning and development
etc. Training is really developing employees’ capacities through learning and practicing. Training and
Development is the framework for helping employees to develop their personal and organizational skills,
knowledge, and abilities. The focus of all aspects of Human Resource Development is on developing the
most superior workforce so that the organization and individual employees can accomplish their work goals
in service to customers. All employees want to be valuable and remain competitive in the labour market at all
times, because they make some demand for employees in the labour market. This can only be achieved
through employee training and development. Hence employees have a chance to negotiate as well as
employer has a good opportunity to select most suitable person for his vacancy. Employees will always want
to develop career-enhancing skills, which will always lead to employee motivation. There is no doubt that a
well trained and developed staff will be a valuable asset to the company and thereby increasing the chances
of his efficiency in discharging his or her duties. Trainings in an organization can be mainly of two types;
Internal and External training sessions. Internal training involves when training is organized in-house by the
human resources department or training department using either a senior staff or any talented staff in the
particular department as a resource person.

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On the other hand external training is normally arranged outside the firm and is mostly organized by training
institutes or consultants. Whichever training, it is very important for all staff and helps in building career
positioning and preparing staff for greater challenges in developing world. However the training is costly.
Because of that, people who work at firms do not receive external trainings most of times. The cost is a major
issue for the lack of training programmes in Sri Lanka. But nowadays, a new concept has come with these
trainings which is “Trainers through trainees”. While training their employees in large quantities, many
countries use that method in present days to reduce their training costs.
The theory of this is, sending a little group or an individual for a training programme under a bonding
agreement or without a bond. When they come back to work, the externally trained employees train the
employees who have not participated for above training programme by internal training programmes.
Employers of labour should enable employees to pursue training and development in a direction that they
choose and are interested in, not just in company-assigned directions. Companies should support learning, in
general, and not just in support of knowledge needed for the employee's current or next anticipated job. It
should be noted that the key factor is keeping the employee interested, attending, engaged, motivated and
retained. For every employee to perform well, especially Supervisors and Managers, there is a need for
constant training and development. The right employee training, development and education provides big
payoffs for the employer in increased productivity, knowledge, loyalty, and contribution to general growth of
the firm. In most cases external trainings for instance provide participants with the avenue to meet new set of
people in the same field and network. The meeting will give them the chance to compare issues and find out
what is obtainable in each other’s environment. This for sure will introduce positive changes where
necessary. It is not mentioned in any where that the employers, managers and supervisors are not suitable for
training programmers. They also must be highly trained if they are expected to do their best for the
organization. Through that they will have best abilities and competencies to manage the organization.
Training employees not only creates a more positive corporate culture, but also add a value to its key
resources. Raw human resources can make only limited contribution to the organization to achieve its goals
and objectives. Hence the demands for the developed employees are continuously increasing. Thus the
training is a kind of investment.

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Concept of Training and Development:
In simple terms, training and development refers to the imparting of specific skills, abilities and knowledge
to an employee. The need for training & development is determined by the employee’s performance
deficiency, computed as follows: Training & Development need = Standard performance – Actual
performance. Training and development: We can make a distinction among training, education and
development. Such distinction enables us to acquire a better perspective about the meaning of the terms.
Training, as was stated earlier, refers to the process of imparting specific skills. Education, on the other hand,
is confined to theoretical learning in classrooms.
Training refers to the process of imparting specific skills.
Development refers to the learning opportunities & designed to help employees grow.
Education is theoretical learning in classroom. Though training and education differ in nature and
orientation, they are complementary.
An employee, for example, who undergoes training is presumed to have had some formal education.
Furthermore, no training programme is complete without an element of education. In fact, the distinction
between training and education is getting increasingly blurred nowadays. As more and more employees are
called upon to exercise judgments and to choose alternative solutions to the job problems, training
programmes seek to broaden and develop the individual through education. For instance, employees in well-
paid jobs and/or employees in the service industry may be required to make independent decision
http://www.assignmentpoint.com/business/human-resource-management/concept-of-training-and-
development.html
Definition:
A formal definition of training & development is it is any attempt to improve current or future employee
performance by increasing an employee’s ability to perform through learning, usually by changing the
employee’s attitude or increasing his or her skills and knowledge.

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Types of Training:
On-the-job:
'On-the-job' training involves training at work. This is the best way of learning practical work based skills.
The trainee learns by carrying out real work tasks under instruction from a colleague, trainer or manager. For
foresters this includes how to plant new seedlings and protect them from the cold and heat. Methods include:
coaching - the coach guides and instructs the trainee mentoring - a mentor, a more experienced person,
provides advice and support secondly - an employee goes to work elsewhere for a short period to learn useful
skills. An apprentice will combine work with a more experienced forester who will help and guide them,
with formal studying for a qualification. On-the-job training is cost-effective.
Off-the-job:
'Off-the-job' training involves attending courses and training events away from the workplace, for example,
Julie's university degree. Benefits include the opportunity of meeting other people in similar roles and
discussing new ideas. The Forestry Commission invests heavily in training for managerial development. This
provides the leaders of the future. Through the appraisal process all employees have a Personal Development
Plan (PDP) which highlights their strengths and weaknesses. This makes it possible to build on the strengths
and improve areas of weakness through training and development. The Forestry Commission's Leadership
Programme helps a manager learn to take on more responsibility. This may be through: 360 degree feedback
- managers are given feedback on their way of working from above (by their line manager), from below (by
those working for them), from the side (by peer workers) specialist courses at development centers formal
study or distance learning, like Julie's Masters Degree. The Forestry Commission has created a Competency
Framework of the skills required by the organisation and its employees. The diagram shows how this would
work for a mechanical engineer. Identifying individuals' skills gaps makes it possible to design appropriate
training for them. This might include taking a higher degree or updating Health and Safety training.

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Objectives:
 TO INCREASE PRODUCTIVITY
An instructor can help employees increase their level of performance on their assignment. Increase in
human performance leads to increase in the operational productivity and also the increase in the profit of
the company.
 TO IMPROVE QUALITY
Better-trained workers are less likely to make operational mistakes. It can be in relationship to the company
or in reference to the intangible organizational employment atmosphere.
 TO HELP A COMPANY FULFILL ITS FUTURE PERSONNEL NEEDS
The organizations having good internal training and development programs will have to make less changes
and adjustments. When the need arises, vacancies can be easily staffed.
 TO IMPROVE ORGANIZATIONAL CLIMATE
An endless chain of positive reactions result from a well planned training program.
 TO IMPROVE HEALTH AND SAFETY
Proper training can prevent industrial accidents. A safer atmosphere leads to more stable attitudes on part
of the employees.
 PERSONAL GROWTH
Employees on a personal basis gain individually from their exposure to educational expressions. Training
programs give them wider awareness and skills.

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Importance of Training & Development in the Workplace:
Demand Media Training presents a prime opportunity to expand the knowledge base of all employees, but
many employers find the development opportunities expensive. Employees also miss out on work time while
attending training sessions, which may delay the completion of projects. Despite the potential drawbacks,
training and development provides both the company as a whole and the individual employees with benefits
that make the cost and time a worthwhile investment. Addressing Weaknesses Most employees have some
weaknesses in their workplace skills. A training program allows you to strengthen those skills that each
employee needs to improve. A development program brings all employees to a higher level so they all have
similar skills and knowledge. This helps reduce any weak links within the company who rely heavily on
others to complete basic work tasks. Providing the necessary training creates an overall knowledgeable staff
with employees who can take over for one another as needed, work on teams or work independently without
constant help and supervision from others. Improved Employee Performance An employee who receives the
necessary training is better able to perform her job. She becomes more aware of safety practices and proper
procedures for basic tasks. The training may also build the employee's confidence because she has a stronger
understanding of the industry and the responsibilities of her job. This confidence may push her to perform
even better and think of new ideas that help her excel. Continuous training also keeps your employees on the
cutting edge of industry developments. Employees who are competent and on top of changing industry
standards help your company hold a position as a leader and strong competitor within the industry. Related
Reading: Importance of Safety Training Consistency a structured training and development program ensures
that employees have a consistent experience and background knowledge. The consistency is particularly
relevant for the company's basic policies and procedures. All employees need to be aware of the expectations
and procedures within the company. This includes safety, discrimination and administrative tasks. Putting all
employees through regular training in these areas ensures that all staff members at least have exposure to the
information. Employee Satisfaction Employees with access to training and development programs have the
advantage over employees in other companies who are left to seek out training opportunities on their own.
The investment in training that a company makes shows the employees they are valued. The training creates
a supportive workplace. Employees may gain access to training they wouldn't have otherwise known about or
sought out themselves. Employees who feel appreciated and challenged through training opportunities may
feel more satisfaction toward their jobs.

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Advantages of Training and Development:
1. Increased job satisfaction and morale among employees. This has an added benefit of making your
company more attractive to prospective employees.
2. More motivated workers, which in turn tends to increase productivity and spur profits.
3. More effective and efficient use of workers' time as a result of higher skill levels, combined with a
better understanding of the job function.
4. Employees who know they are competent, and therefore feel more confident. Self assured, well-
trained employees are important in the debt collection function.
5. An increase from employees in the number of ideas, recommendations and suggestions for improving
performance, or processes and procedures.
6. Lower overall employee turnover, and less absenteeism.
7. Investing in employee training enhances the company image as:
o a good place to work
o a company that offers its employees the opportunity to grow and meet their individual goals
and aspirations
o a company that values employees
o a company that nurtures its employees
8. Creating a pool of cross-trained employees can bridge gaps when someone unexpectedly leaves the
company - or if they accept a transfer or a promotion.
9. Doing so tends to create more efficient employees that require less supervision and who need less
detailed instructions. This frees management's time for higher value added activities.
10. Employees that receive in houses training tend to be better equipped to adapt to changes and
challenges facing the credit department in particular, and the company as a whole.
Department managers must determine where training is needed. It is usually a poor use of resources to
implement a department-wide generalized training program. Scarce resources [such as a training budget]
should be allocated where it is most needed. If the company's training budget permits each employee to
be trained, then training should be customized to [a] the needs of the department and [b] to the skills and
aptitudes of each employee.

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Process ofTraining and Development:
1. NEEDSANALYSIS: -
 Identify specific lob performance skills needed to improve performance and productivity.
 Analyze the audience to ensure that the program will be suited to their specific levels of
education, experience, and skills, as well as their attitudes and personal motivations.
 Use research to develop specific measurable knowledge and performance objectives.
2. INSTRUCTIONAL DESIGN: -
 Gather instructional objectives, methods, media, description of and sequence of content, examples,
exercises, and activities. Organize them into a curriculum that supports adult learning theory and
provides a blueprint for program development.
 Make sure all materials, such as video scripts, leaders’ guides, and participants’ workbooks,
complement each other, are written clearly, and blend into unified training geared directly to the
stated learning objectives.
 Carefully and professionally handle all program elements—whether reproduced on paper, film, or
tape—to guarantee quality and effectiveness.
3. VALIDATION: -
 Introduce and validate the training before a representative audience. Base final revisions on pilot
results to ensure program effectiveness.

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4. IMPLEMENTATION: -
 When applicable, boost success with a train-the-trainer workshop that focuses on presentation
knowledge and skills in addition to training content.
5. EVALUATION AND FOLLOW-UP:-
 REACTION— Document that learners’ immediate reactions to the training.
 LEARNING— Use feedback devices or pre- and posttests to measure what learners have actually
learned.
 BEHAVIOR— Note supervisors’ reactions to learners’ performance following completion of the
training. This is one way to measure the degree to which learners apply new skills and knowledge to
their jobs.
 RESULTS— Determine the level of improvement in job performance and asses needed maintenance.

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A review of literature is a must for scientific approach and regarded to be of large importance for scientific
research. It gives the investigator an understanding of the previous work having been done related to present
study. One cannot develop and insight into the various facts of a problem unless and until one has learn the
previous theories.
I have referred the Research Dissertations. Along with this, I have also referred magazines, books and
journals.
Knoke & Kalleberg, 1994,Any institution of higher learning or business whose goals are to survive and
prosper in this present day diverse and regressed economy has found it imperative to invest in ongoing
training and development to improve proficiencies in production as well as to acquire the greatest return in
investment of human capital .
Sahinidis & Bouris, 2008.Training is most extensive only in establishments which operate in complex
market environments.
Rowden and Conine cite Training Magazine, which annually conducts research on the training industry in
the United States, as not even attempting to contact businesses with fewer than 100 employees. In addition,
in their annual research sample, only 16% consisted of companies between 100 and 500 workers. In general,
little human resource development occurs in small businesses
In summary, a slowly growing number of authors are currently doing more research in the areas of training
and development and its effects on employees that we have not seen in past literature.

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I have also referred to some studies which have taken place internationally. The studies and their major
findings are as under:
A Study conducted taking 575 US based publicly traded firms during the years 1996 to 1998 by “The
American Society for training and development (ASTD)” found that companies which invested $680 or
more in training per employee than the average company had an increase of 6% in their total stakeholder
return in the following years. ASTD researchers also found a similar pattern while comparing, gross profit
margin, income per employee, and price to book ratios for firms who invested average $128 per employee. It
was found that the former experienced 24% higher gross profit margins, 218% higher income per employee,
and 26% higher price to book ratio
A subsequent career development program experienced by “Eicher Group”
The company believes in role model philosophy in which supervisor can set the right example by
encouraging subordinates to play leadership roles.
Training in Eicher emphasizes that it is primarily the responsibility of the superior to develop, individual’s
subordinates and become its mentor. Each employee is the part of career development group (CDG) which
consists of it immediate superior.CDG is responsible for appraising, monitoring, training and planning
individuals career and development path. Training at Eicher can be discussed below:
 Behavioral Training.
 Functional Training.
 Potential Related Training.
 Multi-Skill Training.
 Training for Dealers.
 International Exposure.
Benchmarking: Ranbaxy Laboratories Experience:
Ranbaxy Laboratories provide workers first-hand experience of global best practices. Most of the workers in
pharmaceutical industries have generally come from a background where even a hospital did not display
hygiene and Ranbaxy was trying to train them to achieve high quality standards. A group of workers was
selected and sent on a ten-day US trip to visit clinics and hospitals. The worker got a first-hand feel of the
kind of environment in which the medicines prepared by them would be used and they came back with
quality standards and were motivated to achieve them.

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Learning Together: Mahindra and Mahindra Experience:
Supervisors and managers should be trained with workers is the basic training philosophy at Mahindra and
Mahindra. In order to bridge the communication gap, Mahindra & Mahindra sent its workers abroad to
expose them to quality manufacturing practices but with a slightly different strategy. The workers were sent
along with the supervisors and managers. It was found that at the end of the trip, most communication gaps
between them had been bridged. Till 1995, 40 workers along with managers and union leaders were sent to
Japan, South Korea, Europe, UK and US, to visit various automotive plants and to learn best work practices
around the world. These people then asked to share their experience with other employees.
Employee Involvement: Modi Xerox Experience:
The company has invested in developing high quality training. Employees at every level are exposed to
international training. Each employee spends almost 5 man-days on training every year, which cost Rs.4000
per employee per annum. Training is not only the responsibility of training department, but there is a
continuous involvement of line managers also. Training manager’s workshop is organized biannually to get
feedback on the present status and also on future requirements.
A Study done by “Ethics Resource Center Arlington” (ERC) In February of 2010,conducted a survey on
organizations in Northeast Ohio to determine trends in administering training, identifying and prioritizing
employee training needs, annual training activities, evaluating training, and other employee development
practices. The results show several key trends among Northeast Ohio employers in terms of their training and
development practices.

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Key findings in the survey
• External consultants, trainers, or specialists tend to provide the majority of training for organizations.
• Content of training, costs/pricing of training, effectiveness of program, and needs of participants are the
most common factors influencing organizations’ decision to outsource training.
• Most organizations do not require employees to participate in a specific number of training hours or courses
annually.
•The most common methods of delivering training are on-the-job, classroom, webinar,
and self-study aid methods.
• Most organizations have a training budget that is 2-3% of payroll.
• Several organizations use follow-up tools including job aids and action plans to help employees
Transfer training to the job.
• The most common way organizations assess the effectiveness of their training is by measuring performance
Improvement/behavior on the job.
Similarly, “Society for Human Resource Management (SHRM)” in year 2011conducted a survey on
Employee Job Satisfaction and Engagement which identifies the factors that are important in employee job
satisfaction and employee engagement as perceived by employees.
The survey’s purpose is to assist employers to develop the right programs and practices when they seek to
have an impact on these two factors that are critical to employee morale and motivation. Understanding
employee preferences provides guidance for the knowledgeable allocation of resources.
The survey explored 35 aspects of employee job satisfaction, divided into four topic areas—career
development, relationship with management, compensation and benefits, and work environment. Added in
2011, the survey also explored employee engagement.
Key findings in the survey
“83% of U.S. employees reported overall satisfaction with their current job, with 41% of employees
indicating they were ‘very satisfied’ and 42% ‘somewhat satisfied.’ Despite this high percentage of satisfied
employees, the level of overall satisfaction has been trending downward since 2009.”
Employees in organizations that had fewer than 100 employees expressed satisfaction more frequently than
employers in larger organizations with 2500 or more employees. SHRM found no significant differences in
overall job satisfaction by employee industry, job tenure, race or gender.

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Job security: 63%, for the fourth consecutive year, as the top most important determinant of job
satisfaction. (67% of employees are very satisfied or satisfied with their job security.)
Opportunities to Use Skills and Abilities: 62%. (74% are satisfied or very satisfied in their
workplace.)
Organization’s Financial Stability: 55%. (63% are satisfied or very satisfied.)
Relationship with Immediate Supervisor: 55%. (73% are satisfied or very satisfied.)
Compensation: 54%. (61% are satisfied or very satisfied.)
Benefits: 53%. (65% are satisfied or very satisfied.)
Communication between Employees and Senior Management: 53% (54% are satisfied or very
satisfied.)
The Work Itself: 53%. (76% are satisfied or very satisfied.)
Autonomy and independence: 52%. (69% are satisfied or very satisfied.)
Management’s Recognition of Employee Performance: 49%. (57% are satisfied or very satisfied.)
Feeling Safe at Work: 48%. (78% are satisfied or very satisfied.)
Overall Corporate Culture: 46%. (60% are satisfied or very satisfied.)
Flexibility for Work-Life Balance: 38%. (65% are satisfied or very satisfied.)
Relationships with Coworkers: 38%. (76% are satisfied or very satisfied.)

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Introduction to ESSAR Group
EPL has rich and varied records a premier construction company in pipelines to ports, industrial projects,
intelligent buildings, on to canals, townships, highways, bridges and breakwaters. Essar has poured enough
concrete to build a road that would circle the Earth thrice.
Essar has executed projects worth over US $ 3bn (Rs. 14000 cr.) and is currently implementing projects
worth US$ 2.5bn (Rs. 11625 cr.) as one of India’s leading Engineering, Procurement and Construction
contractors (EPC).

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Essar Oil's assets include developmental rights in proven exploration blocks, a 10.5 mtpa refinery on the west
coast of India and over 1,300 Essar-branded oil retail outlets across India. Plans are under way to increase its
exploration acreage in various parts of the globe, expand its refinery capacity to 36 mtpa, and open 3,000
outlets countrywide.
Essar has a 10.5 mtpa refinery at Vadinar in Gujarat, which started commercial production on May 1, 2008.
It has been built with state-of-the-art technology and has the capability to produce petrol and diesel suitable
for use in India as well as advanced international markets.
It will also produce LPG, Naphtha, light diesel oil, Aviation Turbine Fuel (ATF) and kerosene. The refinery
has been designed to handle a diverse range of crude — from sweet to sour and light to heavy. It is supported
by an end-to-end infrastructure setup including SBM (Single Buoy Mooring), crude oil tankage, water intake
facilities, a captive power plant (currently 120 MW, being expanded to 1,010 MW), product jetty and
dispatch facilities by both rail and road.

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Essar Steel Holdings Limited is a global producer of steel with a footprint covering India, Canada, USA,
Middle East and Asia.
It is a fully integrated flat carbon steel manufacturer--from iron ore to ready-to-market products. Its products
find wide acceptance in highly discerning consumer sectors, such as automotive, white goods, construction,
engineering and shipbuilding. It is India’s largest exporter of flat steel products.

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Essar Power has two gas-based plants, of 500MW and 515MW capacities in Bhander and Hazira
respectively, a 120MW co-generation plant in Vadinar and an 85MW plant in Algoma
.
Work is currently under way to expand the current generation capacity of 1,220MW to 6,100MW by 2012,
with a target to reach 11,470MW in the near future. The company will set up three coal-based plants of
1,200MW each in Gujarat, Madhya Pradesh and Jharkhand, aggregating 3,600 MW. An additional 1,280MW
is also under construction – 1160 MW in Gujarat and 120MW in Orissa – to supply power and steam to the
expanded refinery.

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ESL was the first Indian company to operate in the quality conscious markets of USA and Europe. The
Company’s foresight in identifying tomorrow's businesses has helped it keep ahead in highly competitive
waters of the shipping industry. Its environment consciousness led it to invest in double hull double bottom
vessels which are considered a safer option.

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Mission
To Create Enduring Value For Customers And Stakeholder In Core Manufacturing And Service Businesses,
Through World-Class Operating Standards, State-Of-The-Art Technology And The ‘Positive Attitude’ Of
Our People.
Vision
We will be a respected global entrepreneur, through the power of positive action. Here as below the logo of
Essar and the purpose behind it describe
RegisteredOffice
Essar Steel Limited
27th KM
Surat Hazira Road
District - Surat
Hazira 394 270
Gujarat, India
Telephone: +91-261-2872400
Fax: +91-261-2872796
Corporate Office
Essar House
11, Keshavrao Khadye Marg
Mahalaxmi
Mumbai 400 034
Maharashtra, India
Telephone: +91-22- 66601100
Fax: +91-22-66601809

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ManagementTeam
Chairman: Mr.Prashant S Ruia
Deputy Chairman: Mr. Naresh Nayyar
Managing Director and CEO: Mr. Lalit Kumar Gupta
Directors: Mr. Chakrapany Manoharan
Mr. Philip Aiken AM
Mr. VS Jain

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ESSAR Oil Limited - Company Overview
Refinery Project Site
Head Post Office, Post Box No 24 Khambhalia 361 305
District - Jamnagar
Gujarat, India
Telephone: +91-2833-241444
Fax: +91-2833-241414
 Form of Organization : Oil & Gas
 Website : www.Essar.com
 Head Office : Mumbai ,Maharashtra
 Type of Organization : Public Limited
 C.E.O : Mr. Lalit Kumar Gupta — Managing Director and CEO

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History:
Construction of the refinery started in 1996. The refinery project was delayed several times due to
environmental concerns and financial problems, including initial cost over runs and a shortfall in equity
contributions. In 1998, it was 60% complete but was struck by a cyclone that caused considerable
damage.[2] Construction was restarted in 2005 and the refinery was completed in 2006.It costs
US$2.14 billion.
Essar Oil reported commercial production of 10.5mtpa in May 2008.The units commissioned in the first
phase were the CDU, VDU, sulphur gas unit, naphtha hydrotreater, catalytic cracker and visbreaker. The
fluid catalytic cracker and a diesel hydro desulphuriser were commissioned in November 2006. The FCC and
DHDS plants were modified so as to be compliant with the cleaner Euro III and Euro IV fuels. The refinery
configuration lends itself well to de-bottlenecking and its capacity is enhanced to 14mtpa in 2009. The
docking facilities include an SBM capable of handling vessels up to 350,000DWT with a capacity of 25mtpa,
tankages with interconnecting pipelines of 20mtpa capacity, marine product dispatch capacity of 12mtpa and
rail-car and truck-loading facilities.
Expansion:
The refinery is expanded to a capacity of 20 million tones per annum.Essar Oil Ltd (EOL) announced the
completion of the Rs 8,300-crore expansion of its Vadinar Refinery with the successful commissioning of the
final Delayed Coker unit (DCU), which is amongst the world's largest. The Vadinar Refinery is now India's
second largest single-location refinery, with an annual capacity of 18 million tonnes (375,000 barrels per
day) and a complexity of 11.8, which also makes it among the world's most complex refineries.
The capacity expansion and complexity enhancement gives the Vadinar Refinery the capability to process
much heavier crude diet. The share of ultra heavy crude, which currently constitute 20% of crude basket, will
go up to 60%; and as a result the overall share of heavy and ultra heavy crude will go up to 80% of the
refinery's total crude basket. The company has already entered into long-term crude sourcing contract with
global suppliers, including several national oil companies from Latin America.

27
In terms of product yield, the Vadinar Refinery now has the flexibility to produce higher value, high-quality
products, including gasoline (petrol) and gas oil (diesel) conforming to Euro IV and Euro V norms, that have
growing acceptance in both domestic and international markets. Close to 80% of its production will now be
of valuable light and middle distillates; and 50% of the production of gas oil (diesel) and gasoline (petrol)
will meet Euro IV and Euro V specifications. EOL is targeting newer markets such as Australia, New
Zealand and north-west Europe, in addition to countries in the Indian subcontinent for exporting high-quality
fuels. However Essar Oil will continue to market a majority of its products in the domestic market.
The Vadinar Refinery benefits from a fully integrated infrastructure including India's only captive coal-fired
power plant (nearing completion) to provide power and process steam, a port, pipelines and tankage, with
multi-modal product dispatch facilities through rail, road, and sea, giving it a unique cost advantage.[3

28
Bankers
 Allahabad Bank
 Andhra Bank
 Axis Bank Ltd
 Bank of Baroda
 Bank of India
 Canara Bank
 Central Bank of India
 Corporation Bank
 Dena Bank
 Export import Bank of India
 Corporation Bank
 Dena Bank
 Export Import Bank of India
 Federal Bank Ltd.
 HDFC Bank Ltd.
 ICICI Bank Ltd.
 Oriental Bank of Commerce
 Punjab National Bank
 SBI Commercial & International Bank Ltd.
 State Bank of Bikaner & Jaipur
 State Bank of India
 State Bank of Indore
 State Bank of Mysore
 State Bank of Patiala
 UCO Bank
 United Bank of India

29
SWOT Analysis
SWOT Analysis stand for Strength, Weaknesses, and Opportunities& Strength. SWOT Analysis is very
much useful for management study. SWOT Analysis according to Essar Project (India) Limited is as under.
Strength:
 Employee’s co – ordination is very high and so team work of the employee is better.
 As it is a captive Project plant EPIL does not have to do marketing, all the Essar brand name is to be the
marketing.
 EPIL has employees recruited directly from famous institutions like NPTI who are well trained and
specialized in the Project sector.
 When compare to other giant companies the employees of ESSAR are very much satisfied with the HR
facilities given to them.
 The five Ps is the strength of the Essar group Proper planning Prevents Poor Performance.
Weakness:
 Employee attrition rate is very high.
 Finance purpose.
Opportunities
 Expansion of the Project plant will surely help them earn higher rates of the profit.
 India is still not developed yet now so it’s one kind of opportunities for the EPIL
Threats
 Terrorism is the major threat. Location of the company is such that it is located at sea coastal area and border
area.
 Threat to Neutral calamities due to costal area
 Competition
 Technological changes

31
TITTLE OF THE TOPIC:
STUDY OF TRAINING AND DEVELOPMENT SYSTEM AT ESSAR OIL LIMITED.
RESEARCH DESIGN:
Research Design refers to "framework or plan for a study that guides the collection and analysis of data". A
typical research design of a company basically tries to resolve the following issues:
a) Determining Data Collection Design
b) Determining Data Methods
c) Determining Data Sources
d) Determining Primary Data Collection Methods
e) Developing Questionnaires
f) Determining Sampling Plan
(1) Explorative Research Design:
Explorative studies are undertaken with a view to know more about the problem. These studies help in a
proper definition of the problem, and development of specific hypothesis is to be tested later by more
conclusive research designs. Its basic purpose is to identify factors underlying a problem and to determine
which one of them need to be further researched by using rigorous conclusive research designs.
(2) Conclusive Research Design:
Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more
precise information for purpose of making marketing decisions.
These studies can be either:
a) Descriptive or
b) Experimental
Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive.

32
Objective of the Study:
1. To study the system of Training and development in public sector of India
2. To study the effect of Training and development on employee performance.
3. To analyze the overall impact of Training and development in the functioning of the organinsation.
Sample Design:
Sample design determination is the act of choosing the number of observations or replicates to
include in a statistical sample. The sample size is an important feature of any empirical study in which the
goal is to make inferences about a population from a sample. In practice, the sample size used in a study is
determined based on the expense of data collection, and the need to have sufficient statistical power. In
complicated studies there may be several different sample sizes involved in the study: for example, in
a survey sampling involving stratified sampling there would be different sample sizes for each population.
Sample size: Total 30 employees consisting of both male and female responding toward the survey
for their training and development in ESSAR Oil Limited
Population: total 1136 employees are working in ESSAR Oil Limited
Sample method: Non Probability convenience sampling
Sample area: ESSAR Oil Limited

33
Method of Data Collection:
The task of data collection begins after research problem has been defined and research design plan chalked
out. While deciding about the method of data collection to be used for study, one should keep in mind two
types of data which are as follow:
I. Primary data :
We collect the primary data during the course of doing experiments in an experimental research but in
case we do research of the descriptive type and perform surveys, whether sample survey or census
surveys, then we can obtain primary data through observation or through direct communication with
respondent in one form or another or through interview. There are several method of collecting
primary data, particularly in surveys and descriptive researches which are as follow:
o Observation
o Questionnaires
o Interviews
o Schedules
o Warranty cards
o Distributors audits
o Pantry audits
QUESTIONNAIRES are the primary source of data collection.

34
II. Secondary data:
Secondary data means data that are already available i.e., they refer to the data which have already been
collected and analyzed by someone else. When the researcher utilizes secondary data, then he has to look
into various sources from where he can obtain them. In this case he is certainly not confronted with the
problems that are usually associated with the collection of original data.
Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the
case of quantitative data, provides larger and higher-quality databases that would be unfeasible for any
individual researcher to collect on their own. In addition, analysts of social and economic change consider
secondary data essential, since it is impossible to conduct a new survey that can adequately capture past
change and/or developments.
Secondary data may either be published data or unpublished data.
Usually published data are available in followings:
o Publications of central state and local governments,
o Reports published by government,
o Books,
o Magazines and Newspapers,
o public records and statistics,
o Internet,
o Historical documents.
The sources of unpublished data are many and they found in following: Diaries, Letters Unpublished
biographies, Autobiographies, Scholars and research workers, Trade association, Labor bureaus.
Secondary data used by me are BOOKS, INTERNET, and HISTORICAL DOCUMENTS.

35
DATA PRESENTATION AND ANALYSIS:
The collected data has been systematically tabulated for its effective interpretation. Tabulated data was
farther analyzed in form of percentage in order to have the accurate understanding with regard to
performance appraisal system at ESSAR OIL LIMITED. The collected data has been presented with the help
of pie chart and diagram.
LIMITATION
This study was carried out for a very small period of time. Hence, it may happen that the exact forecasting
with regard to performance appraisal system may not be considered. Moreover, the data had been collected
form secondary source hence, the limitation of such source do apply to this survey also. The size of sample
selected for survey is also very small.

36
DATA ANALYSIS & INTREPRETATION

37
Q1. Training is required soon after the selection process
Strongly Agree Agree Neutral Disagree Strongly Disagree
5 7 6 4 8
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.1

38
Q.2.Training on soft skills helps in the growth of our personality
7 11 8 2 2
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.2

39
Q.3. “On- the-Job” training shows more productive results than “Off-the Job” training
4 14 8 2 2
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.3

40
Q.4 Do you receive formal feedback after training
4 8 10 8 -
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.4

41
Q.5 Do the trainees create an effective environment for training
1 1 19 7 2
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.5

42
Q.6 Interactive approach during training is practiced in your organisation
6 3 12 4 5
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.6

43
Q.7 Effective training is provided to handle machinery and equipment to improve
health & safety
7 7 6 4 6
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.7

44
Q.8 Training helps in the enhancement of self-confidence
4 8 13 2 3
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.8

45
Q.9 Does training lead to promotion
1 8 2 12 7
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 1.9

46
Q.10 Training is the best source of motivation and encouragement
2 6 13 7 2
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.0

47
Q.11 Our organisation mainly focuses on work/ job related training
4 5 9 6 6
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.1

48
Q.12 Suggestions & feedback of training are generally heard, accepted and
implemented
4 3 10 9 4
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.2

49
Q.13 Company promotes diversified training to its employees
2 7 9 3 9
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.3

50
Q.14 Training leads to more responsibilities and work load
1 10 4 6 9
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.4

51
Q.15 In-house training are far effective than the counter part
2 8 11 8 1
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.5

52
Q.16 .The organisationtakes keeninterestin the results of the training program
3 5 9 7 6
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.6

53
Q.17 The trainer is generally interested to focus on the training required by the
employees rather than company’s assigned directions
3 5 13 6 3
Strongly
Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.8

54
Q.18 Training employees leads to the value addition of key resources
8 5 13 4 -
Strongly Agree
AgreeNeutral
Disagree
Strongly
Disagree
Chart 2.8

55
Q.19 Training is very much necessaryfor improvement of the workplace environment
5 11 11 3 -
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 2.9

56
Q.20 Do you present periodic reports on training
3 2 5 14 6
Strongly Agree
Agree
Neutral
Disagree
Strongly
Disagree
Chart 3.0

57
Recommendations and Conclusion

58
 The Training can facilitate the improvement of self-efficacy, motivation, goal achievement, competency,
decision-making skills, life management skills So Essar Project (India) ltd have to have effective trainer and
regular assessment must be there
 It has also been suggested that problems with accountability and procrastination can be overcome with the
support of a well-qualified and experienced coach. These are practical and valuable goals, yet many
individuals have a difficult time achieving results on their own.
 Training is an intervention designed to help individuals achieve success in these areas by facilitating skill
development and providing the support and structure that is often needed by many to achieve performance
related goals. So it is must for Essar Project (India) Ltd. ltd to achieve desired goal.
 Effective Training also can change behavior of the employee by motivating or encouraging them from
different perspectives.

59
From the above research, I have found out that there is no effective coach to train employees and motivate
them. It affects employees’ job satisfaction, learning and performance. From the analysis by questionnaire I
have analyzed that employees of Essar Oil (India) Ltd. believe that training cannot improve productivity.
Training at Essar Oil (India) Ltd. fails to do effective Training because of many reasons given below.
 Language Communication Problem because in Essar many staff are from the other state, country that’s way. .
 Lack of trainee’s interest.
 Lack of trainer’s interest.
 Absence of training policy/rules/guidelines
 Inadequate feedback
The above mention reasons made training performance fruitless and unsuccessful. However to bring the
situation under control, certain suggestions are being given, which, if implemented, may make training
programmed effective and fruitful.

61
(2000). The American Society for training and development (ASTD) , 59-74.
(2004). THE ICAI Journal Of Organizational Behavior , 8 to 15.
(2013, December). Retrieved from http://www.apkibook.com/2012/03/five-step-training-and-
development.html?m=1
(2014, March). Retrieved from
http://www.coveringcredit.com/business_credit_articles/Credit_Management/art204.shtml
Abrahim, C. (n.d.). Retrieved January 2014, from http://smallbusiness.chron.com/importance-training-
development-workplace-10321.html
Aswathappa, K. (2010). Human Resource Management (2nd Edition ed.). Tata McGraw Hill Education
Private Limited.
D, J. (n.d.). Retrieved December 21, 2013, from http://businesscasestudies.co.uk/forestry-
commission/developing-people-through-training/types-of-learning-and-training.html#axzz2t7cbvJjZ
Dessler, B. &. (2009). Human Resource Management (11th Edition ed.). Pearson Publication.
ESSAR, G. (n.d.). Retrieved November- March 2013-2014, from http://www.essar.com/
ESSAR, I. (2011-12,2012-13). ANNUAL REPORT. SURAT HAZIRA: ESSAR Group of Companies.
ESSAR, O. (n.d.). Retrieved December-March 2013-2014, from
http://www.essar.com/section_level1.aspx?cont_id=fBlwNPJhC0c=
Kazanas, W. J. (2004). The Strategic Development of Talent. Human Resource Development Press.
Stewart, H. &. (1999). Training & Development.
SURVEY, A. I. (n.d.). Retrieved 2014, from
http://www.yourerc.com/_CE/pagecontent/Documents/survey/research-
studies/10%20Training%20Development%20Survey.pdf
Wikipedia. (n.d.). Retrieved November 2013, from
http://wiki.answers.com/Q/What_are_the_objectives_of_training_and_development

63
Questionnaire
On
Training & Development at Essar (Oil & Gas), Jamnagar
1. I Jay Gadhia, preparing a project report on above topic would like to request you to kindly
fill in following questionnaire. Feel free to share your views.
2. The answers provided by you will be kept strictly confidential and will not be misused or
printed anywhere against you. Information provided by you will be used for academic purpose
only and will not be disclosed to anybody else. Your anonymity will be strictly maintained.
3. Please tick marks all the boxes and blanks properly.
Name : ________________________________
Address : ________________________________
________________________________
Age : _________________________________
Gender :  Male  Female
Education qualification : ________________________________
Designation & Department : ________________________________

64
Sr.No. Question
Strongly
Agree
Agree Neutral Disagree
Strongly
Disagree
1
Training is required soon after the selection
process
2
Training on soft skills helps in the growth of our
personality
3
“On- the-Job” training shows more productive
results than “Off-the Job” training
4 Do you receive formal feedback after training
5
Do the trainees create an effective environment
for training
6
Interactive approach during training is practiced
in your organisation
7
Effective training is provided to handle
machinery and equipment to improve health &
safety
8
Training helps in the enhancement of self-
confidence
9 Does training lead to promotion
10
Training is the best source of motivation and
encouragement
11
Our organisation mainly focuses on work/ job
related training
12
Suggestions & feedback of training are
generally heard, accepted and implemented
13
Company promotes diversified training to its
employees
14
Training leads to more responsibilities and work
load
15
In-house training are far effective than the
counter part
16
The organisation takes keen interest in the
results of the training program
17
The trainer is generally interested to focus on
the training required by the employees rather
than company’s assigned directions
18
Training employees leads to the value addition
of key resources
19
Training is very much necessary for
improvement of the workplace environment
20 Do you present periodic reports on training?

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