BT ANNIVERSARY ISSUE: [10] BPCL: The Learning Organisation

A culture inherited from Shell and employee-orientation help this PSU make the list.

What is a public sector company doing on the list of best employers? Holding its own, actually. For Bharat Petroleum Corporation Ltd. (BPCL) is a PSU with a difference. How? Ask U. Sundararajan, CEO and pat comes his reply: ''What differentiates us is the commitment of our employees.'' Ever since Sundararajan took over as the CEO of BPCL in October 1994-in his AGM speech in September, 1997, he shared his vision to 'make BPCL a great place to work'-he has focused on people. Says he: ''The only competitive advantage is people. ''

When Sundararajan took over, BPCL's employees' LTA settlement was pending for 21 years and the unions had threatened to go to the Supreme Court. He got the unions to talk with the management, and offered to intervene if there was a stalemate. A settlement was reached without his intervention. Similarly, before placing an order for a sap Enterprise Resource Planning system, he got the unions to sign an agreement. Some of Sundararajan's gestures appear populist but his colleagues say they work. Each morning, he starts his day in the office by sending birthday messages to his staff, and types them personally. It's a small gesture, but most employees feel good about it.

But some of what rules the work culture at BPCL has been institutionalised because of the coaching based on the ADL methodology-Arthur D. Little helped it benchmark practices, and prepare for change. While that may have brought in a new people orientation, how's it different from other PSUs? Says Monica Widhani, Chief Manager at the Chairman's office in Delhi: ''It's only the culture. Everything else flows from that. Partly, it's the Burmah Shell culture.''

That culture is best manifested by the openness, informality, and close relationships among BPCL's employees. Adds Dipti Sanzgiri, Internal Coach, BPCL: ''It's the freedom and the informality. People are extremely accessible.'' Another way the Shell culture is manifested is through empowerment. Two years back, BPCL slashed layers and gave more freedom to people on the field.

Although Burmah Shell was nationalised back in 1976, almost all the people that BPCL inherited came from Shell. As new people who joined the company rubbed shoulders with the old Shell hands, the culture rubbed off. Says a senior executive at BPCL: ''I wouldn't say it's Shell culture in its pure form. There has been lots of adoption in terms of openness, trust, and the people-orientation.''

Culture apart, Sundararajan's emphasis on empowerment has helped make the company attractive to employees. One of his key innovations has been to delink jobs from grades. Says one executive: ''Traditi-onally, the complexity of tasks you face in a job is linked to hierarchical position. Sundararajan looks at performance, and if he feels you have the stuff, he will give you challenging responsibilities.''

BPCL has discovered that empowerement leads to initiative. Recently, it organised a promotion for lubricants. Hype was created around BPCL counters where the promo was happening and other divisons took advantage of it. LPG connections were sold over-the-counter through its petrol pumps. But what was remarkable was the fact that none of this was triggered by a circular from the head office. Still wondering why BPCL makes it to the coveted list?

Why BPCL is number 10

This Navratna's position on the list is no surprise. A historic association with Shell and longstanding employee-orientation have given the organisation a different outlook from a traditional public sector unit. Performance plans are openly articulated and feedback is discussed. And initiative is rewarded beyond static guidelines. Financial measures based on sales and net profits entitle managers to variable-pay. The company rewards employee inputs. And employee satisfaction levels are shared every six months.

Foundations of Organisational Learning (FOL) is a forum that cuts across levels and shares concepts on being a learning organisation. The Visionary Leadership and Planning (VLP) process allows managers to discuss issues, take decisions, and set their own targets. Managers are exposed to courses conducted at premier institutes in the country. The company's induction programme includes 'transition labs' to inculcate desired behaviors.

Excellent housing facilities are offered to employees. Celebrations, picnics, and other activities maintain the network of Bharat Petroleum families. Lunch is a highly subsidised five- course meal; holiday homes are available at exotic locations; and healthcare benefits are open to the employee's parents also. The organisation also picks up the tab on the entire housing loan in case of the death of the employee.

Madhavi Misra and Purva Misra, Hewitt Associates LLC