I am working with Bharat Petroleum Corporation Limited which is involved in Oil Refining and Marketing Business. BPCL is also making inroads in exploration i.e. upward integration. Oil and Gas being one of the strategic sectors from development as well as defense point of view and hence been largely controlled by the Indian government. Prior to independence only Multinational like Burma Shell, Caltex etc. were operating in India. Due to strategic importance M/s Indian Oil Corporation (IOC) for Oil refining and Marketing and Oil and Natural Gas Corporation (ONGC) for Oil exploration were established by the Government. Later on in 1976, based on the experience in Indo China war, MNCs closed their operation and Bharat Petroleum Corporation (BPC) was formed by nationalization of Burma Shell and Hindustan Petroleum Corporation (HPC) by nationalization of Caltex Esso were established by the Government.
In 1990s Government of India started inviting private sector in Oil Refining and Marketing and as a result Reliance Industries and Essar Oil limited established large capacities of Oil refining and started creating marketing network. Major products in Oil marketing are: * Motor spirit (Petrol), HSD (Diesel) & SKO * LPG * Aviation * Industrial Products * Lubricant
In 1992, Government of India decontrolled lubricant business which gave entry to lot of international players to establish themselves in Indian market giving a tough competition to state players like IOC, BPC and HPC. In 2002, Government decontrolled pricing of LPG and SKO for commercial and industrial sector excluding the domestic household consumption. This witnessed private players’ entry in the segment but since the volumes were low, state companies dominated this segment.
In 2010-11 Motor spirit prices were also decontrolled though due to high volatility in the international market government is still keeping indirect control on this product in the Oil sector.
In the upstream sector, in order to be self sufficient and for the purpose of energy security, Government of India is promoting PSUs stake holding in Oil assets abroad in which other than ONGC, BPC has entered in select ways.
Application of 7-S Framework
I have applied below the 7-S Framework, which is based around seven key elements of any organization, with the view that in order for it to operate successfully, all the elements in this model must align synergistically together.
The factors are split into two groups: hard or soft. The hard elements are those that can physically be seen when in place, whereas the soft are more intangible and cannot readily be seen.

Hard Elements | Soft Elements | Strategy | Skills | Structure | Staff | System | Style | | Shared Values |
STRATEGY
Bharat Petroleum recognized that all strategic initiatives must conform to the overall vision of the Corporation and improve the economic value.
The main strategy which BPCL follows is differentiation strategy; it may be product differentiation or service differentiation.
Key strategic initiatives taken by Bharat petroleum are as under: a. Product Security Initiatives: To improve product security, BPCL acquired two standalone refineries – Kochi refinery (9.5 MMTPA) in South and Numaligarh Refinery (3 MMTPA) in Assam. Investment in 9 MMTPA refinery in joint venture with Oman Refineries in Madhya Pradesh to cater to Northern India, where BPCL was dependent on other PSUs for product support. b. Backward Integration Initiatives: Bharat Petro Resources Ltd (BPRL) was incorporated as a wholly owned subsidiary company of BPCL with the objective of implementing BPCL’s plans in the upstream exploration and production sector. The exploration and production activities of BPRL and its subsidiary companies extend to 26 exploration blocks where they hold participating interests (PI). Of this, 11 blocks are in India and 15 are abroad. Besides India, BPRL has blocks in Australia, Brazil, East Timor, Indonesia, Mozambique and the United Kingdom. BPRL’s total acreage in all these blocks is around 68,000 sq.km, of which approx 89% is offshore acreage. These blocks are in various stages of exploration with definite finds. c. Brand Initiatives: In the highly competitive scenario, it has become imperative to own dominant brands. BPCL introduced new generation branded fuels Speed, Hi Speed Diesel and Speed 97, to introduce premium fuel brands in the Country, keeping pace with the technological advancements in the automobile industry leading to introduction of new generation vehicles. BPCL also recognized the customer need for pure quality and correct quantity of fuel for their vehicles and launched the flagship initiative of Pure For Sure (PFS) offering the guarantee of pure quality and correct quantity of fuel to our customers. The petrol pumps displaying a prominent Pure For Sure signage became landmark destinations. d. Automotive Lubricants Initiatives: Bharat Petroleum launched the full range of Automotive Engine Oils, Gear Oils, Transmission oils, Specialty Oils and Greases under the umbrella brand “MAK”, offering range of benefits to the users of present day modern vehicles.
STRUCTURE
Earlier (prior to 1998) structure in BPCL was functionally organized. There were mainly four functions – Refineries, Marketing, Finance, and Personnel – each headed by a Functional Director. Other support departments like corporate affairs, legal, audit, vigilance, coordination and company secretary were directly under C&MD. Further down the line there were divisions. Each division was responsible for business performance of all products/brands within its geographical boundaries.
Bharat Petroleum realized that, in the long run, success can only come with a total reorientation and change in approach with the customer as the focal point. In a proactive move to adapt to the emerging competitive scenario and support strategy function-based structure was carefully dismantled and replaced with a process-based one. This made the company more responsive to its customer needs.
BPCL therefore was restructured into a Corporate Centre, Strategic Business Units (SBUs) and Shared Services and Entities. The organizational design comprising of five customers facing SBUs, viz. Aviation, Industrial and Commercial, LPG, Lubricants and Retail and one asset based SBU, viz. Refinery, is based on the philosophy of greater customer focus based on the specific needs of each customer segments.
Few salient feature of new Structure in BPCL are as under: * Highly empowered work force * Decentralized decision making * De-linking of authority from hierarchical levels * Orientation towards internal and external customers
SYSTEMS
Bharat Petroleum has always been on the forefront of harnessing technology initiatives for maximizing efficiency and achieving greater customer satisfaction. Bharat Petroleum became the first PSU to implement Enterprise wide Resource Planning (ERP) solutions - SAP. The challenge of SAP implementation was to ensure that all the integrated elements work seamlessly across the length and breadth of the country, including the remote locations.
Bharat Petroleum reaped huge benefits of the integrated system in many areas of its operations - like, tracking customer-receivables, monitoring credit-management, inventory management, besides easing the operations in a large number of areas.
Management information systems are well established in the company. All processes are well documented in the form SOP’s. Decision rights are clearly defined in DRA (Decision Right and authority) manual. Company’s Apex council which comprises of functional directors and SBU heads regularly monitors the business performance. Company recently introduced a CCS (customer compliant system) which provides a single platform to customer to give feedback for all products of different BU’s.
SKILLS
BPCL has a culture of pursuing a path of Learning Organization. This is one of the most important core competencies of BPCL which differentiates it with competition. Operational efficiency is another core competency which BPCL possesses. It is reflected in all our function whether it is production, marketing, sales, HR, shared services etc.
As a Strategic Business Partner, HR supports skill-up gradation and multi-skilling of staff by identifying target segment and requirements from each SBU, evaluation of on the job performance - post deployment in the job requiring those skills sets. BPCL designed ‘Structured Standard programs’ which is implemented across the organization on BPCL Core Values & Culture / Identification and Development of Talent / Coaching Skills / Understanding of PMS Process and its timeliness / Understanding of New Manager Assimilation Process for Senior Managers having experience of handling a team. Impact of training is assessed and evaluated through proper framework. HR designed integrated Talent Management process with 360 degree assessment of all management staff on competencies, engagement and aspiration. Based on these inputs, individual development plans are designed. The purpose of the exercise is to ensure that talent is retained, encouraged and groomed to take over leadership position in near future.
STAFF
BPCL follows a mix of open and campus recruitment. For open recruitment advertisements are published in leading national dailies which include filling an application form, written test, Group discussion and interview. For campus recruitment, company visits the IITs, NITs and other reputed technical institutes of the country for recruiting final year engineering students. Job rotation and inter-location transfers throughout the country facilitate planned development of careers and broaden outlook. Career growth opportunities are based on the individual's performance and contribution to the common goal of sustained growth.
Few of HR initiatives taken by BPCL are listed below:
Engaging Employees: BPCL realizes that event based engagement is not sufficient instead employees needs continuous engagements so that their grievances are addressed, they are hand held, if needed, feel secured and appreciated and get committed to their work and corporation.
Performance Planning & Appraisal System: PMS system in BPCL facilitates achievement of the Vision and Business Plans of the Corporation and foster development of every management staff, thereby gaining competitive advantage in the industry. The objectives of PMS in BPCL is to create awareness of Corporate and SBU/ Entity goals, translate such goals into tangible objectives and measures at the individual level through discussions between Appraiser and Appraisee, identify managerial attributes/ competencies for each role necessary to achieve the goals, establish a formal process of continuous feedback on performance and identify developmental plans to enhance performance.
Manpower Planning: Based on inputs from SBUs / Entities, HR either relocates the already employed resource from other facility, based on the strength of the employee and the job requirement or initiates the process of recruitment.
Career Planning: To bring HR closer to work place, BPCL has embedded HR with each SBU / Entity, who hand hold these set-up in HR matters in consultation with central HR set-up. Every year, embedded HR, along with corporate HR to discuss the talent development, career planning of individual staff to decide on inter-functional movement and short to long term career path.
STYLE
BPCL top leadership follows a mix of democratic (participatory) and Bureaucratic (top-down) style. Issues are discussed and participative management is followed in arriving at decision.
However since we are a public sector company, sometimes few decision are dictated to company by government. To implement such decisions’ bureaucratic style is adopted at all levels of organization.
SHARED VALUES
Shared values are the pinnacle of the model. Therefore in any organization, they form the underpinning culture, strategy, effectiveness and performance, linking to every other element in this framework. They link all that is of the organization: how people behave, the structure, its systems and so on. Getting this balance right means getting the culture right.

BPCL shared values are:

| TRUST is the bedrock of our existence| CUSTOMER CENTRICITY is intrinsic to our achievements | DEVELOPMENT OF PEOPLE is the only way to success | ETHICS govern all our actions | INNOVATION is our daily inspiration| COLLABORATION is the essence of individual action| INVOLVEMENT is the way we pursue our organizational goals