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Unit 9: Performance Counselling
5. Motivating people to perform Notes
6. Managing organizational and environmental turbulence
Being a leading public sector enterprise, Indian Oil has successfully faced the various
challenges of the turbulent market environment and also has become a strategically of the
Government of India by ensuring timely supply of petroleum products to the armed forces
in wartime. Its operating performance and vast infrastructure are a clear indication of its
inherent ability to face the challenge of competition and fulfill its social responsibilities.
(See in Exhibit 1)
Exhibit 1
About Indian Oil (2000-2001)
Sales Over ` 1.13 lac Crore
Employee strength 33,000
Sales record 47.8 T (53%)
Sales point Over 21,000
LPG (liquefied petroleum gas) bottling plants 71
Aviation fuel stations 92
State offi ces 22
Divisional offi ces 47
Indian Oil owns nine of the seventeen refineries in India. It is the only Indian company
in the Global Fortune 500 list. It ranks 112th in the Forbes International 500 list of largest
companies outside the US and 34th among the largest 1000 Top Asian Companies of Asia
Week.
The general assumption is that money drives performance, but that is not all. There are
other factors too that drive performance. Some of these are enumerated below:
Mission (aspirations) Very clear
High level and inspirational
Consistent over time
Target/Goals Highly aggressive
Both short and long-term & measurable
Adjusted over time
Organization Few layers
Many P&L (profit and loss)
Units (“atomized”)
Performance feedback Transparent
Internal and external benchmarking
Rankings made public
Consequence management Visible and quick
Varying severity
Contd....
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