AT NTPC Kahalgaon

Based on Survey conducted on Executives at NTPC Kahalgaon in the month of June-July 2010

July, 26, 2010

HR Department Kahalgaon super Thermal Power Project Bhagalpur


AT NTPC Kahalgaon

Submitted toEmployee Development Center NTPC Kahalgaon Copy toHOD, MBA Program TMBU Bhagalpur

Submitted byAmbesh Kumar Rajeev Kumar MBA(HR) 2009-2011 MBA Dept. TMBU Bhagalpur

July, 26, 2010

We hereby declare that the project entitled ³Effectiveness of Performance Management System´ at KHSTPP is submitted for partial fulfillment of our course curriculum i.e.- MBA(HR) from TMBU Bhagalpur (session 2009-2011) The project was carried out by the survey done by us with the sincere intention of benefitting the company . Project duration was from June, 10, 2010 to July, 26, 2010. To the best of my knowledge it is original work carried out by us and is not submitted in any other college.

Ambesh Kumar Rajeev kumar MBA(HR),Session 2009-2011 MBA Dept. TMBU Bhagalpur


To accomplish a project work like this efforts of many people are required and ours is not an exception, a number of people have helped us. First of all we would like to thank Sri Shubhasis Ghosh(GM,khstpp), and Sri Rajnish Rastogi (DGM-HR). We convey our special thanks to Miss Pallavi (Officer-HR) for her guidance during the course of our project study. We express our sincere thanks to Mr. Nalin vikash (Officer-Rajbhasha), Mr.Anurag Sinha (Sr.Engineer, EDC), Mr Pravin Mundaria(Officer-Finance), Mr. Kanchan Chourasia (Sr. Engineer-O&M) and Mr. A. K. Das (Sr. PR Officer). We like to thank Mr. B.R.Prasoon (EDC), Mr. R.Raghunathan (OfficerCSR), Mr. B. P. Yadav(Sr. Manager-Finance), Mr. Naveen Choudhary(OfficerLaw), Mr. Atul Parashar(Officer-EW), Mr. P. K. Shamal(Sr. Officer-EW) and all those persons who helped us in getting grass root information about NTPC and the performance management system working there, from whom we received valuable co-operation, useful suggestions and relevant data and information pertaining to our project and responses to questionnaire. We are thankful to all of our friends who have been a source of motivation to us. At last but not least we convey our heartily gratitude to our Director Prof. Ratnesh Sinha and all the faculty members of MBA program, TMBU Bhagalpur for their constant guidance and help. Finally we thank God who blessed us in our endeavor.

Ambesh kumar Rajeev kumar MBA-HR (2009-2011) MBA program, TMBU Bhagalpur


Table of contents
Page Declaration Acknowledgement
Introduction to NTPC NTPC Kahalgaon-An overview Performance Management-What, Why and How PMS at NTPC Methodology Used for Study and Data Collection Graphical Representation of Feedback given by Executives Suggestions Conclusion Limitations of The Research

3 4
7 29 41 47 53

55 76 77 78


Bibliography Questionnaire

79 80

Table of Figures

NTPC at a Glance: - Details of power stations Subsidiary companies Joint Ventures National awards for performance of thermal Power stations Project under construction Capacity addition in 2009-2010 Planned capacity addition in 2010-2011 NTPCÙs share in total electricity generation Ash utilization Milestone dates of Kahalgaon units KPA setting process Weightage of PMS parameter for different grades Performance linked pay Response to questionnaire

9-10 11 11

16 16-17 18 18 20 26 38 49 50 51 56-75

Introduction To NTPC


NTPC: India s largest power company
Established on 7th November 1975 to play a major role in the development of Indian Power Sector: NTPC Limited is today India s largest power company with an installed capacity of 31,704 MW Lighting up more than one fourth of India through its 15 coal based 7 gas based and 5 joint venture projects, NTPC Limited plans to become a 75,000 MW Company by the year 2017 with a vision to become a world class integrated power major with increasing global presence. NTPC Ranked No. 1 Independent Power Producer in Asia and 2nd in the world in the Platts Top 250 Global Energy Company list for 2009. Ranked number ONE in the category the 'Best Workplaces for Large Organizations' and number tenth overall for the year 2009 by Great Places to Work Institute s India chapter in collaboration with Economic Times.


NTPC: At a Glance Category Coal based station Gas based station Joint venture Total

No. of stations 15 7 5

Capacity (MW) 24,885 3,955 2,864 31,704

Details of power Stations(NTPC)

a. Coal Based Singrauli Korba Ramagundam Farakka Vindhyachal Rihand Kahalgaon Dadri Talchar Kaniha Unchahar Talchar Thermal Tanda Simhadri Badarpur Sipat-II



Uttar Pradesh Chhattisgarh Andhra Pradesh West Bengal Madhya Pradesh Uttar Pradesh Bihar Uttar Pradesh Orissa Uttar Pradesh Orissa Uttar Pradesh Andhra Pradesh Delhi Chhattisgarh Total

2000 2100 2600 1600 3260 2000 2340 1330 3000 1050 460 440 1000 705 1000 24885


b. Gas Based Anta Auraiya Kawas Dadri Jhanor Rajeev Gandhi(Kayamkula) Faridabad Rajsthan Uttar Pradesh Gujrat Uttar Pradesh Gujrat Kerela Haryana Total c. Joint Venture Roukela Durgapur Bhilai Ratnagiri Kanti Orissa West Bengal Chhattisgarh Maharashtra Bihar Total 120 120 574 1940 110 2864 413 652 645 817 648 350 430 3955

Total Production(a+b+c)



Subsidiary companies of NTPC

NTPC Joint Ventures (15)


Joint Ventures (15)



Electrifying performance
The company recorded a total generation of 218.84 Billion Units (Bus) showing an increase of 6% over the pervious year s generation of 206.93 Bus with a share of 20% (Ines of JV company) in the total installed capacity of the country NTPC generated 28.6% electricity during 09-10. Exceeded the MoU Excellent target of 217 BUs.

A world class integrated power major, powering India s Growth, with increasing global presence.

Core Values
Business ethics Customer focus Organizational & Professional Pride Mutual Respect and Trust Initiative and speed Total Quality for Excellence

y y y y y y


100% realization of the billing for the seventh consecutive year. Provisional and un-audited Net Sales of Rs. 46,504.47 crore during 2009-10 as against Rs. 41,791.30 crore registering an increase of 11.28%. The provisional and un-audited Gross Revenue is Rs.49,478.86 crore during 2009-10 as against Rs.45,272.76 crore for the year 2008-09, an increase of 9.29%. Provisional and un-audited Profit after tax for the year 2009-10 is Rs.8,656.53 crore as compared to Rs.8,201.30 crore during the year 2008-09, an increase of 5.55%. Highest interim dividend @ 30% amounting to Rs. 2,473.64 crore paid during the year. Capital Expenditure of Rs. 10,137.18 crore during 2009-10; NTPC Group s capital expenditure was Rs. 14,002.11 crore. Approved outlay for 2010-11 for NTPC s capital schemes is Rs.22,350 crore; for NTPC Group the outlay is around Rs.29,104.06 crore. Contributed Rs.3,260.21 crore to exchequer on account of Corporate tax, Dividend and tax thereon and wealth tax.

Shareholder Wealth
Third largest market capitalization of over Rs.1,70,000 crore as on 31-03-2010.

Growing Stature
Recommended for Maharatna status. EXCELLENT rating under Government of India MoU for the year 2008-09.

Bulk Tendering
Tendering undertaken for 11 units of 660 MW (including 2 units for DVC).

Rural Electrification
Under Rajiv Gandhi Grameen Vidyutikaran Yojana, NTPC Electric Supply Company Ltd (NESCL) completed electrification of 8017 villages and provided 8.65 Lakhs BPL connections, thereby exceeding GoI target of electrification of 7500 villages and 8.5 Lakhs BPL connections.

Commonwealth Games

Official Power Partner of Delhi 2010 Commonwealth Games.


Further Public Offer
Government shareholding in NTPC reduced from 89.5% to 84.5% through divestment of Government stake by 5% under Further Public Offer (FPO).


Top six out of eight National Awards for Meritorious Performance of Thermal Power Stations for 2008-09 instituted by the Government of India won by NTPC coal stations.


Simhadri Korba Ramagundam Dadri (coal) Rihand Vindhyachal

1000 MW 2100 MW 2600 MW 840 MW 2000 MW 3260 MW

Gold Shield Silver Shield Silver Shield Bronze Shield Bronze Shield Bronze Shield

No. 1 Independent Power Producer in Asia and 2nd globally in the Platts Top 250 Global Energy Company Rankings 2009


Installed capacity reaches 31,704 MW (including 2864 MW under JVs). All time highest single day generation of 684.55 MUs from all NTPC stations on 31st March, 2010 17,830 MW under construction at 17 locations. .

Project (Fuel) , State Sipat-I (Coal), Chhattisgarh Barh I (Coal), Bihar

Capacity 1980 1980

Korba-III (Coal), Chhattisgarh Dadri-II (Coal)-Unit # 2, U.P. Farakka-III (Coal), West Bengal Simhadri-II (Coal), Andhra Pradesh Indira Gandhi STPP - JV With HPGCL & IPGCL (Coal), Haryana Vallur (Phase -I & Phase II) (Coal) - JV With TNEB, Tamil Nadu Nabinagar-JV With Railways (Coal), Bihar Bongaigaon (Coal), Assam Mauda-I (Coal), Maharashtra Barh-II (Coal), Bihar Rihand-III (Coal), UP Vindhyachal-IV (Coal), MP Muzaffarpur-II (Coal), JV With BSEB, Bihar Koldam (Hydro), H.P Loharinag Pala ( Hydro ), Uttaranchal* Tapovan Vishnugad ( Hydro ), Uttaranchal Total

500 490 500 1000 1500


1000 750 1000 1320 1000 1000 390 800 600 520 17,830 MW


Capacity Addition in 2009-2010 (1560 MW)
Project/ Unit NTPC owned Kahalgaon Stage-II Dadri Stage-II, Unit # 5 Under JVs RGPPL Block- I Less on account of overall de-rating of RGPPL Kanti Stage-I Net addition 640 (-)180 110* 1560 500 490 Capacity (MW)

Planned Capacity Addition in 2010-2011 (4150 MW)

Project/ Unit Sipat Stage-I, Unit-1 Jhajjar, Unit-1 & 2 Korba Stage III, Unit-7 NCTPP Stage II, Unit-6 Simhadri, Stage-II, Unit-3 & 4 Farakka, Stage-III, Unit-6 Total

Capacity (MW) 660 1000 500 490 1000 500 4150

Future Capacity Under Different Stages
Projects for which bids invited Projects for which FR approved Projects for which FR prepared/under preparation 7092 MW 4345 MW ~15,000 MW

Growth in Commercial Capacity
1490 MW declared commercial (including 500 MW under JV). New national benchmark: Dadri Unit-5 (490 MW) begins commercial operation in 39 months from zero date.

Impressive Growth Rate Generation increased by nearly 6% to 218.84 BUs compared to 3% generation growth achieved in 2008-09; Exceeded the MoU Excellent target of 217 BUs.

Generation (BUs)
218.84 200.86 188.67 170.88 206.93







Sustaining Market Leadership

Contributed 28.6% of total electricity generated in the country

Total electricity available in the country Electricity import from Bhutan Total Electricity Generation in the Country Total Generation from NTPC Units NTPC share in total electricity generation in the country

771.17 BUs 5.34 BUs 765.83 BUs 218.84 BUs 28.6%


World Class Capacity Utilization

With 90.81% Plant Load Factor (PLF) during 2009-10 (National PLF 77.48%), coal stations achieved PLF of more than 90% for third consecutive year. Six coal stations achieved PLF of more than 95%. Dadri (Coal) Stage I (4X210 MW) achieved highest ever PLF of 100.59 %. Sixteen units recorded more than 100% PLF. Seven NTPC coal stations figure among the top 10 stations in the country in terms of PLF. Highest ever PLF of gas stations at 78.38% (previous year PLF 67.01%).


Augmenting Fuel Security
Model Coal Supply Agreement signed with Coal India Ltd (CIL) for supply of coal to NTPC stations for 20 years. Gas supplies increase to 13.88 MMSCMD (up 29% over previous year). Long term contract for supply of RLNG of 2.0 MMSCMD on firm basis and 0.5 MMSCMD on fallback basis signed with GAIL for 10 years. Under NELP VIII, NTPC has been allotted one block at Cambay basin as a sole operator and three blocks as a member of consortiums.

Coal Mine Development

Working on captive coal mines with target of 47 MTPA by 2017 from the 6 blocks allotted. More than 6735 acres of Land in Pakri Barwadih and about 1594 acres of land in Chatti Bariatu coal block have been acquired and land acquisition for Dulanga and Talaipalli are in progress. Rehabilitation Action Plan (RAP) has been approved by NTPC Board for Pakri Barwadih, Chatti Bariatu and Kerandari. Mining Plan approved for Dulanga (7 MTPA) and Talaipalli (18 MTPA). JV agreement has been signed with CIL for development, operation and maintenance of Coal Blocks and Integrated Power Projects.


Coal Block Acquisition Abroad

Due diligence for acquisition of stakes in two coal mines in Indonesia is under progress and consultant appointed for carrying out due diligence for one coal block in Mozambique. International Coal Ventures Ltd (ICVL) has been incorporated on 20.05.2009 as a JV company of NTPC, RINL, SAIL, NMDC and CIL for sourcing coking and thermal coal from overseas countries like Australia, Mozambique, Canada, Indonesia and USA. ICVL is pursuing 3 thermal coal opportunities in Indonesia, Australia and South Africa.

Getting into Nuclear

JV agreement is expected to be signed shortly with Nuclear Power Corporation of India Limited (NPCIL). Approval has been obtained from Department of Atomic Energy (DAE).

Focus on Renewables
By 2017, NTPC plans to have at least 1000 MW through renewable energy resources such as wind, hydro, solar, biomass and geo-thermal.


Long Term Corporate Plan upto 2032

Finalizing the Long Term Corporate Plan of NTPC to set the goals and directions for a period of 2032 with a view to positioning NTPC as the world s largest and best power producer.

Technology Roadmap upto 2032

Chalking out a long term technology roadmap upto 2032 which involves development, adoption and promotion of safe, efficient and clean technologies for entire value chain of power generation business.

NTPC has adopted advanced and high efficiency technologies such as super critical boilers for the up-coming greenfield projects (e.g Barh, Sipat etc). Out of total coal based capacities to be developed during 12th plan period, over 90% will be based on supercritical technologies. In addition to adopting advanced and high efficiency technologies, NTPC has been pursuing the objective of sustainable power development with following initiatives:


CO2 measurement systems are being installed at all our stations in the chimney stacks. 61 Ambient Air Quality Monitoring System (AAQMS) installed in all NTPC stations. Installed Bio methanation Plant at Faridabad. Creation of green wealth of more than 18.80 million trees.


Achieved ash utilization of 59.73% i.e. 27.61 million tons of ash.

10.85 million tons fly ash issued to cement and concrete industry which is 8.5 % more than last year. 545 million ash bricks have been manufactured in Pilot ash brick manufacturing plants. 1.13 million tons of ash from Talcher-Thermal has been utilized for filling of abandoned South Balanda coal mine of MCL in Orissa. MoU has been signed with Research Designs & Standards Organization (RDSO), Lucknow to explore use of ash in Railway embankment.



HR Vision:
To enable our people to be a family of committed world class professionals, making NTPC a learning organization.

The HR Dept. has a long history in NTPC. This dept. was earlier known as personnel dept. then finally HRS(Human Resource Services) HRS contributes its expertise in handling and executing the Existing and Developing HR trends and innovations. Following are the areas of operation. :-

Employee Welfare Employee Benefits Employee Relations (Industrial Relations) Employee Services (Office Admin.)And Pensions Employee Services (Town Admin.) Training and Development (EDC) Performance Management System and Human Resource Development Corporate Social Responsibility Rajbhasha (Hindi) Law Peoplesoft HRMS (ERP Software) Public Relations


The HR strategy of NTPC has been designed around the four building blocks of competence building, commitment building, culture building and system building. Culture building is done by creating transparency, openness and ease of communication, strengthening mutual respect and trust, leading to establishment of a people oriented and people sensitive organization. This has resulted in recognition of NTPC as one of the best employers in the country as well as obtaining consistently high rankings in surveys such as Great place to work and Best companies to work for . Employee Development Centers (EDC) have been set up to cater to the need of appropriate Training and Development of employees. Leadership Assessment and Development System (LEADS): With a view to developing a pipeline of leaders for key leadership positions in the company, an initiative named LEADS has been launched. A Leadership Development Centre (LDC) at corporate centre has been set up to formulate the process of identifying and grooming potential leaders. High Productivity of Team-NTPC: During 2009-10, sales per employee increased from Rs. 1.77 crore to Rs.1.96 crore, profit per employee increased from Rs. 34.7 lakh to Rs. 36.45 lakh, value added per employee increased from Rs. 59.36 lakh to Rs. 72.96 lakh and the man:MW ratio improved from 0.85 to 0.82. Total employee strength is 24,955 as on 31.03.2010, as against 24,713 on 31.03.2009 (including employees in JVs & Subsidiaries).


NTPC Kahalgaon
An Overview


At Kahalgaon, a place from where light of wisdom eradicated darkness from the minds of millions, it is the dawn of a new era. Kahalgaon super thermal power project is the seventh in a series of STPs set up by the NTPC and first of it s kind in Bihar and second in the entire Eastern Region. Contributing to NTPC s good health is one of its unit at Kahalgaon in Bihar which was set up in 1987 with a technical collaboration from the then USSR. The location of the plant is such that the raw material for the plant like coal is easily available from the Rajmahal collieries (31km from Kahalgaon) and the water requirement is met from river Ganges. The project with Stage-I capacity of 840 MW has already been completed comprising 4X210 MW unit is under commercial operation. Further expansion of 500X2=1000MW in State-II, Phase-I & 500X1=500 MW in phase-II during 10th year is under commercial operation. The ultimate capacity is 2340 MW.


Destination Kahalgaon
A lush green, picturesque Kahalgaon is set like an emerald on the bank of holy river Ganga. The place was, once, the abode of saints and Sufis and has a history dating back to Vedic times. According to legend, the place derived its name from Kohol Muni. Another story is that Saint Durvasha, famous from his bad temper ( Kalaha ), hailed from this place. The Kashri Hill where Saint Durvasha had hisashram is about 6.5 Km north-east of the town. The ancient temple of shiva & kali at Bateswarsthan (Known as Gupt Kasi) is situated at Kahalgaon on the bank of Ganga. The Chinese pilgrims Hieun Tsiang and Fa Hien are said to have visited this place. Lord Budha s feet are also believed to imprint on this holy place. The site of ancient university of vikramshila of the 8th centure A.D., established by king dhrampal, is only 15 Km from the town. Students from all over the world came to this place in search of knowledge. It was from here, Saint Deepankar Janapada, the renowned Buddhist scholar and Vice-chancellor of Vikramshila University spread the light of wisdom and love. Kahalgoan is also known as the land of seven sages ( Sapt Rishis ). The place was also an important centre of trade and commerce during the Britishers.

Deeptinagar- A Mini India
The Deeptinagar Township is built ina planned and systematic way, with wide open streets, spaces, parks and greeneries. The pristine glory and ecology of the surroundings area is least disturbed. A permanent township with all modern facilities completed and employees residing here represent the culture of mini India. NTPC has developed its own shopping complex where all essential commodities and services are available. Besides, the NTPC employees also run a Co-oprative store. The Banking & Postal needs of residents of Deeptinagar and surrounding areas are taken care by branches of state Bank of India, Allahabad Bank with ATM facilities and full fledged Post Office with speed post facilities established in our Township. Deeptinagar officers ample opportunities for healthy recreation and Socio cultural activities. These needs are taken care of by the employee s welfare Association, Vikramshila club and Srishti Samaj by organizing various cultural programmes from time to time.

The NTPC sport council and apex body of sports enthusiasts conducts interdepartmental tournament into institute in various games and sports besides regularly conducting rural sports & inter duty football tournament.

Health Care
Our hospital is an ISO 9001, 14001, 18001 &5 S certified hospital with all specialties & equipped with modern set up provide diagnostic & therapeutic services including promotive & preventive health care to the residents of Deepti Nagar & its surrounding areas.

Education- A foremost Objective
Imparting excellent education to the children of employees has been one of the foremost welfare measure of NTPC. There are three teaching institution affiliated to C.B.S.E. stream, namely St. Joseph s School, DAV Public School and Kendriya Vidyalaya. The schools are running effectively and are imparting education to the children of employees and surroundings. In additin to basic education, these institutions. Srishti Samaj of Deeptinager also runs Little flowers school and Vidya Bhawan School. The former imparts pre-schools education to tiny-tots by play-way technique and the later imparts free primary education to the children of neighbouring villages.


Environmental Excellence
The Kahalgaon plant of NTPC integrates many environmental provisions in the plant design in order to keep emission, effluents and ambient air quality well within acceptable limits, it has provided the best available equipments, devices and systems such as high efficiency electrostatic, precipitators (ESPs) Tall stacks and Low Nox Burners for control of stack emissions, dust extrication and dust suppression system for control of fugitive dust. Effluent treatment plants Neurtalisation Pits and Ash ponds for control of the effluent quality, Ash water Recirculation system and cooling Towers for control of the effluent quality as well as conservation of water and sewage Treatment plant (STP) for treatment of the domestic sewage from its plant and township areas. All pollutants discharged from the power plant are monitored at the stipulated frequency at the source itself and at the points of discharge Besides ambient air, surface water and ground water quality around NTPC Plants are regularly monitored to assess any adverse impacts as a result of operation of the power plant NTPC has drawn a programme for changing ash disposal systems at its existing power plants from once through system to recycling system, where clear effluent from ash pond s recycled and only little quality of blow down is required to be discharged after treatment. The ash water recycling system has already been installed and is in operation at Kahalgaon. The scheme has helped the station to save huge quantity of fresh water required as makeup water for disposal of ash .


In order to control fugitive dust from these ash ponds during strong wind conditions, a continuous water cove is maintained in the ash pond for the disposal of Bio-Medical waster as per the MOEP notification one autoclave has been installed at the hospital which is in operation. At regularly intervals training and awareness programme for Brick kiln owners/ manufactures for use of ash Brick manufacturing are being conducted. Not only that, recently a Kisan Mela for the farmers of affected villages was conducted- for promoting use of flv ash in agriculture as a source of micronutrients and improvement in soil structure and water holding capacity. What s more in a concreted bid to counter the growing ecological threat, NTPC is undertaking afforestation programme covering vast areas of land in the plant areas Appropriate afforestation programme for plants township and green belt areas of the project are prepared for implementations at the site. The species are selected on the basis of their adaptability and local soil condition. In Kahalgaon 8.7 lakh trees have already been planted till the date. Only in the financial year 2009-10, more than 10,000 trees have been planted. The afforestation has not only contributed to the aesthetics but also has been serving as a sink for the pollutants release from the station and thereby protecting the quality of ecology and environment in and around the project.

Transforming Lives
NTPC belives in growth with a human face and pursuing people centered development NTPC is a socially comittel organsation and socially responsible corporate citizen. It attaches great importance of discharging its overall responsibilities to the community and the society at large where its project and stations are located there is sharp focus on all round development of the community which is why the efforts do not stop at the individual or family level redressal but take a holistic approach. The NTPC limited has a defined corporate social responsibility policy. The objectives of CSR have been marked for booth the national level and the unit leve. The national objectives contained providing help to physically challenged persons, making relief at the time of natural calamities, maintaining national mouments and promoting self employment and cooperatives among the unemployed youths. The unit level objectives deal with the core issue of the communities, residing in the neighborhood of the operative stations.


At Kahalgaon the following CSR Activities done during the period of 2009-10.
10 nos. High Mast Lights erected at Bhagalpur. 6 nos. High Mast Lights are proposed at Kahalgaon. Total project affected villages 66 (In Bhagalpur Distt. of Bihar-37 & in Godda Distt of Jharkhand-29). Resettled in Indira Awas & Basant Vihar Colony (RC-I & RC-II) 285 Nos. Construction/repair of approx.3.00 Km Road at village Anadipur, Katoria to- Mazdaha and at Kahalgaon. Work in progress: Construction/renovation of Sobhnathpur & Mahagama. 03 Community Hall at Chhopaltola,

Free education, books and school bags, to poor children of nearby villages 350 Nos. in Vidya Bhawan School in NTPC Township from Class-I to ClassIV. Sewing Training & Adult Education is imparted to the women/ young girls of nearby villages. Distribution of Relief Materials for Fire Victims at Krishandaspur(70) & Naya Nagar Ranideora(11) of Kahalgaon Block. Distributed Relief Materials for Fire Victims at Babupur Deora(152) of Pirpainti Block. Relief materials provided to the fire victim of Jamunia Tola. EYE CAMP organized in Nov.2009 by our Hospital and patients operated155. Distribution of study materials/stationeries and woolen clothes to the children of Ramadevi Hindu Anathalay at Bhagalpur. Relief materials distributed to fire victims at Daulatpur-22 families in association with Srishti Samaj.


Financial Support for purchase of Newspapers and Magazines to Vikramshila Vihar Library, Ganguly Park, Kahalgaon for educational access to the general public. Sponsored Sports and Games tournament at Kahalgaon, Akbarpur, Lailakh, Belbadda & Banshipur to encourage local youths under CSR budget. 03 Nos. Tubewells installed in nearby villages.

CSR FUTURE PLANS Adoption of 06 villages (03 in Bhagalpur District of Bihar & 03 in Godda District of Jharkhand) Installation of 14 High Mast Lights (08 in Godda District and 06 in Bhagalpur District) Providing opportunity under job contract for engagement to equired number of PAPs of unskilled and semi-skilled categories. Encouraging formation of Co-operatives of PAPs by giving membership to land oustees for awarding job contract in plant and township area.

Work proposed in 2010-11 :Construction of Girls & Teachers' Common Room with Toilet in SSV College, Kahalgaon Widening of Siri Ghat Kahalgaon (From Sati Ghat to Durga Sthan LCT Ghat),


Developmental work in Kahalgaon Railway Station Construction of drain on both sides from Vikramshila Park Chowk to Irrigation Dept's Bandh Chowk, Kahalgaon Repair of PCC Road & drainage Kalpana Cinema Road (Station chowk to Charodham 1.5 Km), Kahalgaon Construction of Madya Vidyalaya (Middle School),Choudhary Tola, Kahalgaon. Construction of road & drainage (from Choudhary Tola Madya Vidyalaya to Late Raghunath Sah & upto residence of Laxmi Prasad Choudhary 1 Km),Choudhary Tola, Kahalgaon. Construction of two rooms in High School, Gajhanda (Godda) Construction of common room at Mahavidyalaya at Mahagama (Godda) Construction of steps in Champa Talab in Kalgiganj. Construction of retaining wall and development of site construction of school building in Ogri Village Construction of Community Hall with Toilet, Shobhnathpur Construction of boundary wall, steps in pond, approach road & gate at Yogbir Pahad


Developmental work in RC-I Developmental work in RC-II

Milestones dates of Kahalgaon Units
Sl Units 1 2 3 4 5 6 7 Unit # 1 Unit # 2 Unit # 3 Unit # 4 Unit # 5 Unit # 6 Unit # 7 Date of Synch. 24/03/1994 01/03/1994 24/03/1995 18/03/1996 31/03/2007 16/03/2008 28/06/2009 Date of Coal Firing Date Commercialisation 18/08/1994 01.01.1995 30/11/1994 01.04.1995 31/08/1995 01.02.1996 31/03/1996 01.08.1996 02/02/2008 01.08.2008 03/11/2008 30.12.2008 28/06/2009 20.03.2010 of


Beneficiary States :
- States & Union territories of ER, NR, WR, SR & NER.

Transmission systems :
400 KV: 10 Lines i/s & 2 Lines under installation. 400 KV D/C to Farakka, Maithon, Patna. 400 KV 2 D/C to Biharsharif. 400 KV D/C Farakka line- 3 & 4 work being executed by PGCIL. 132 KV to Bihar Grid at Sabour & Kahalgaon and Jharkhand grid at Lalmatia,


KAHALGAON STATION PROFILE Location : Kahalgaon District - Bhagalpur State - Bihar : Kahalgaon : Patna (250KM) & Kolkata (380 KM) : Stage-I (4 X 210 MW) : Stage-II: Phase-I & II(3 X 500 MW)

Nearest Rail head Nearest Airport Capacity Installed

Total Land Available: 3360 Acres Plant Township MGR Ash dyke Make-up & Roads - 883 Acres - 432 Acres - 522 Acres - 1395 Acres - 128 Acres

Land Required for MGR up to New Coal Mines: HURRA C : 99.55 Acres. (Godda District- 99.55 Acres) CHUPERBITTA: 334.62 Acres Godda District:-103.69 Acres. Sahebganj District: 230.93 Acres. Source of Water Make-up water requirement Cooling system : River Ganges : Stage-I - 3000 M3/Hr Stage-II - 6000 M3/Hr : Closed cycle induced draft Cooling towers system.


Performance Management
What, Why & How?


Historical Perspective : Measuring and appraising performance is probably the most researched area within HRM,the last hundred years have seen continuous evolution in approaches to Managing employee performance.  The earliest recorded instance of a formal evolution report was in 1813.  The start of the industrial age in the 1800s saw trends of performance appraisal in industry.  In the 1890s Frederick Taylor s scientific approach and Fayal & Weber s bureaucratic theories suggested that financial inducements stimulated production performance.  The Hawthorne studies in 1927 - 1932 emphasized the influence of supportive and caring supervision.  It was only after world war I that appraisals in industry became accepted. The appraisal of managers was not extensively practiced until after world war II.  The appraisal system that evolved over the period  Narrative/Essay report: Used mainly by Armed forces , Civil service and Large organization in public sector.  Traits were the focus of performance Management in 1970s.  MBO concept came into picture in 1980s.






When we talk about the five dimensions of Human Resource Management (HRM), we list down the following, namely, Performance Management, Career Management, Recruitment & Selection, Training & Development, and Compensation & Benefits Management. These five dimensions, though equally important, often fail to secure equal attention from Human Resource (HR) managers. The facts that performance management is not just an annual performance appraisal and training is not the

only solution to effective performance are forgotten by the HR managers and the management team. As a result, successful organizations, happy with their existing success status, is actually deprived of a potential growth that could have been achieved should they have invested more attention to performance management than only performance appraisal For instance, the total HR performance of a company is worth Rs 1000, which means the employees performance is resulting revenue worth Rs 1000. Among this set of employees, some are excellent performers, some are good, some moderate and some poor. This difference in performance level are due to the fact that some are using 100% of their potentials, some working below their full potentials and some working at zero or marginal potentials. The challenge of equalizing the difference in performance level lies in an objective performance management system.

What Performance Management Is Not:
it s not just an annual performance appraisal it s not imposing targets/goals on an employee by his supervisor it s not only evaluating individual job performance

What is Performance Management:
it s Management By Objectives (MBO) it s about setting SMARTER goals it s about planning to perform it s about periodically reviewing progress in performance it s about evaluating performance for further improvement it s about delivering reinforcement performance failure



success and

What is the Performance Management Process/Cycle :
The steps of Performance Management Process are as follows:Individual Goal Setting & Performance Planning A goal setting session between the PMS administration and the employee. listing down the major goals to be achieved in a year in line with functional objectives. Reviewing goals to assess the feasibility of their accomplishments; making sure the goals are SMARTER- Specific, Measurable, Actionable, Realistic, Time-framed, Extended & Rewarding. finalizing goals for a year. planning about how to achieve the goals. identifying the possible barriers in achieving them. planning on ways to overcome those barriers.

Mid Year Performance Review A performance review session between the PMS administration and the employee discussing performance progress status. revising performance plan (if needed) with new deadlines for goals


Performance Appraisal A performance appraisal session between the PMS administration and the employee. measuring performance as against preset goals. measuring competencies required for current role. measuring potentials as against required competencies set for future role. chalking out Individual Development Plan outlining to fill skill gap, motivation & aspiration gap and communication & cooperation gap. chalking out Reinforcement plan to reward/recognize for success and punish for deliberate failure.

The beauty of this Performance Management process is that it has three dimensions only, which give three major outputs that can be fed into other four dimensions of HRM and not to mention Performance Management also. The beauty is illustrated as follows: Performance Assessment Performance Evaluation Competency Evaluation Potential Evaluation Performance Measures Preset Goals Required competencies of 5-points current role Required competencies of 5-points future role

Rating Scale 5-points

Outputs New goal setting Development Plan Career Development Plan

Performance Management System at NTPC


PMS is a five step process:-

Step 1
Performance planning

Step 2
Mid ± year Review

PMS Process
Step 3

Feedback Step 5

Annual Assessment

Normalisation Process

Step 4 Step 1 Identifying KPAs, Constituents, Weightages, Measures and Targets. Identifying Functional and Managerial Competencies for the appraise.


Step 2 Joint review of performance Document Changes in KPAs if any Document mid year review discussion

Step 3 Assessment of KPAs, Competencies, Values and potential by appraiser . Training and development plans. Review by reviewing officer

Step 5 Communication of score Developmental feedback

KPA Setting Process:

Corporate plan

Company Goals



Unit Goals

Functional /Departmental Goals
Special task

Individual Goals


S.NO. 1 2 a.

PMS PARAMETER KPA Functional competency assessment Managerial competency assessment Potential assessment Value assessment Total

WEIGHTAGES FOR DIFFERENT GRADES E1-E3 E4 E5 E6-E7 E7A-E8 E9 80 75 65 60 50 50 10 10 10 10 10 05








3 4

Nil 05 100

05 05 100

10 05 100

10 10 100

10 15 100

10 20 100

For junior executives there is higher weightage on KPAs and functional competencies as there is higher focus on achieving the immediate functional task. The weightage on Managerial competencies and values increases for an executive as the grade increases because of importance of achieving business goals by managing work of other employees through ethical means.

At NTPC Online Performance Management System is being practiced for Executives. For Non Executives it is still manual.


Thre are three major challenges in effective implementation of PMS at NTPC 1. 2. 3. Involvement of big number of executives (approx 1200) in designing of KPAs and Competency Directory. Skill gap in feedback and performance counseling. Transformation from legacy to transparent system.




Proportion increases with seniority

Proportion decreases with seniority



Relative Weightage for company Unit and Individual Performance. PERFORMANCE
50% 30% 20%

35% 25% 40%

15% 20% 65%


Methodology Used For Study and Data Collection


This Project was made to study how effective the current performance management system is and how convenient is the newly introduced online performance management system at NTPC. The method of survey was rather very simple. We used sampling method to conduct survey. Sampling was done on random basis covering all departments. A total of 50 executives from different departments of NTPC Kahalgaon were surveyed. We personally met them and took their views during conversation .We also supplied a questionnaire to each of them and collected back later according to their convenience giving them appropriate time to respond to the questionnaire. A total of 20 questions were there in the questionnaire. Analysis of raw data was done with the help of graphical representation.


Graphical Representation Of Feedback Given By Executives


Quest: 1- you feel convenient with computerized online performance management system at NTPC.



40% Agree 58% Neutral Strongly agree

Agree 58%

Neutral 2%

Strongly Agree 40%

Inference :- No one disagreed and only 2 % Executives were neutral so we can
say that most of them are tech savvy and feel convenient with online PMS.


Quest:-2 your job description clearly define KPA¶s on which your performance is rated.




Agree Neutral 60% Strongly Agree

Agree 60%

Neutral 24% Strongly Agree 16%

Inference:- They were well aware about there KPAs and felt that it is according
to there job profile as 84% Executives agreed to it.


Quest:3 -The goals (KPA¶s) set are always mutually agreed upon i.e. your consent is taken into consideration while setting KPA¶s.



38% Agree Disagree 38% Neutral Strongly agree 10%

Agree - 38%

Disagree - 10%

Neutral - 38%

Strongly Agree - 14%

Inference: - The response was divided although 52 % Executives agreed about
their consent being taken into the KPA setting process, 10% disagreed and 38% preferred not to answer. It says that in general executives participate in the KPA setting process but there is some dissatisfaction.


Quest: 4- The performance goal set by the appraiser for you are in alignment with your career aspirations.


6% 2%



Agree Disagree Neutral


Strongly Agree Strongly disagree

Agree-- 38% Disagree--10% Strongly Disagree --2%

Neutral -- 44%

Strongly Agree ± 6%

Inference :- This shows the level of job satisfaction of employees. As 44% of
them agreed and 0nly 12% disagreed to the fact that their KPAs matches their career aspirations, we can say mostly they are satisfied


Quest: 5- The deadlines set to complete and submit the performance documents are sufficient.



14% 12% Agree Disagree Neutral


Strongly Agree




Strongly Agree²12%

Inference:- Mostly they are satisfied with the operations of Performance
Management system.


Quest: 6 - The KPA¶s are in accordance with the MOU targets of the company and the targets of the plant.


26% 8% 8%


Agree Disagree Neutral Strongly Agree




Strongly Agree-- 8%

Inference:- It simply shows the awareness level of Executives. 66% of them were
agree and felt that individual goals matches well with unit goals and company goals.


Quest: 7- All the factors facilitating and hindering performance are taken into consideration while appraising the performance.


4% 2% 40% 44% Agree Disagree Neutral Strongly Agree 10% strongly Disagree

Agree²40% Disagree²10% Neutral ± 44% Strongly Agree²4%

Strongly Disagree²2%

Inference:- Although 12 % of executives disagreed a healthy proportion of them
agreed to this. Generally most of the factors affecting the performance of an employee are taken into considereation.


Quest: 8- Your seniors assist you at the time of your need.

18% 18%

Agree Neutral Strongly Agree 64%



Strongly Agree²18%

Inference:- The response says that that there is a healthy environment of
working, seniors assist their subordinates whenever there is any need.


Quest: 9- Your final rating is doesn¶t only on your competencies and KPA¶s but also on several other factors are like your corporate image and interpersonal relation with the rater.





Agree Disagree 40% Neutral Strongly Agree




Strongly Agree²40%

Inference:- Along with the competencies and KPA achievements the factors like
corporate image and communication skills of the executives matter while rating their performance.


Quest: 10- Your doubts and queries are addressed by the PMS administrator while operating online PMS.




Agree 38% 40% Disagree Neutral Strongly Agree strongly Disagree 4%

Agree²40% Disagree²4% Strongly Disagree²4%


Strongly Agree²14%

Inference:- Except a few disagreement most of the employees agree that their
doubts and queries are addressed by the PMS administrator.


Quest: 11- PMS is very useful for career planning.




8% Agree Disagree


Strongly Agree




Strongly Agree²8%

Inference:-Most of the executive advocate the need of performance management
in career planning.



e tral

Quest: 12- The process is used mainly for improving the future performance along with reviewing the present performance.



2% Agree Disagree 52% Neutral Strongly Agree strongly Disagree



Agree²52% Disagree²6% Neutral²26% Disagree²2%

Strongly Agree²28% Strongly

Inference:-Performance management is meant for improving future
performance of employees and most of them agreed to it. The rewards and recognitions are part of performance upgradation.


Quest: 13- You feel free to express to your appraiser your disagreement regarding the appraisal decision.


4% 38% 38% Agree Disagree Neutral Strongly disagree 20%


Disagree²20% Neutral²38%

Strongly Agree²2%

Inference:-It seems that upto some extent the employees are hesitant to express
their disagreement regarding the appraisal decision to their appraiser, but overall the system is open and flexible as 40% of them agreed to it and almost the same no were neutral.


Quest: 14- Your seniors provides you with continuous feedback to help you achieve your KPA¶s.



Agree 46% Disagree Neutral 16% Strongly Agree


Disagree²16% Neutral²36%

Strongly Agree²2%

Inference:-Mostly Executives are well aware about there KPAs and seniors keep
providing them feedback to achieve that, although some of them disagreed to it which may be due to miscommunication between senior and subordinates.


Quest: 15 - The recognition given to high performance is appropriate and helps in motivating the employee.


8% 32% Agree Disagree Neutral Strongly Agree 18%





Strongly Agree²8%

Inference:-The recognition given to High performers is appropriate. There are
scopes of evolution of the recognition system so that even those who disagreed to the appropriateness of the recognition system get satisfied.


Quest: 16- Appropriate training is given to employees who fail to meet the expected performance level.


2% 8% 18% Agree 48% 24% Disagree Neutral Strongly Agree strongly Disagree

Agree²18% Disagree²24% Strongly Disagree²8%


Strongly Agree²2%

Inference:-Although half of the executives surveyed preferred to be neutral,
There is a need to improve the training system so that appropriate training could be given to those who need it.

Quest: 17- The online PMS is dynamic and keeps you aware about your instantaneous weak and strong area of performance effectively.


2% 10% 30% Agree 32% Disagree Neutral Strongly Agree 26% strongly Disagree

Agree²32% Disagree²26% Neutral²30% Strongly Agree²2% Strongly Disagree²10%

Inference:-The online PMS may be dynamic as compared to the manual system
but it does not provide instantaneous feedback about one¶s KPAs.


Quest: 18- You are satisfied with the weightages given against each activity that you are supposed to perform in the specified period.





Agree Disagree Neutral Strongly Agree





Strongly Agree²10%

Inference:-Mostly they agreed about the adequacy of weightages given against
each activity which they are supposed to perform in a given period.


Quest: 19- your training need should be identified through the midyear review.



6% 22% Agree Disagree Neutral


Strongly Agree




Strongly Agree²22%

Inference:-Mostly they agreed that their training needs should be identified in
mid term. It shows the employees are eager to go through appropriate training if any and improve their performance.


Quest: 20- Managers and Employees trust the appraisal process.


4% 32%

Agree 56% 8% Strongly Agree Disagree Neutral




Strongly Agree²4%

Inference:-The appraisal process is trustworthy.


PMS should be linked to Business strategy. Performance assessment should be objective and efficient. PMS should be an open and participative system with feedback loops where everyone feels free to express their views with the appraiser. PMS should distinguish high performers from low performers. The recognition to high performers should be done with more efficiency. PMS should have a developmental focus with appropriate training system to cater the training need of employees. The process should be monitored efficiently addressing the doubts and queries of the employees. The KPA setting process should ensure the active participation of executives. There should not be any communication gap between seniors and subordinates as it is of utmost importance in performance management. Persuasive sessions should be organized to emphasize the need of performance management and how the active participation of employees without any biases help in improving performance management system.


The aim of performance management system is ensuring the maximization of efforts by the employees of the organization to realize the desired goals. More effective the performance management of an organization more productive the organization would be. NTPC as a whole is a big organization with vast number of employees working there, to manage the performance of such a great number of people efficiently is a herculean task. The survey and personal interviews conducted during the project work says that an effective performance management system is on place but as we know everything in this world keep evolving itself for betterment, the performance management system is not an exception. NTPC can touch new heights in the field of energy management by managing its manpower more efficiently, addressing there training needs, recognizing the high performances and making them feel the freedom of expressing their points.


Limitations of the Research
The subject was too big but time available was too less. The survey was not conducted among all the employees of NTPC but on a sample of randomly selected executives. At times it was often felt that there is a difference between the real feeling and the feedback given by executives. Exact feedback must be given so that the analysis done would be correct. Some of the executives were not interested in the subject metter. We were unable to discuss issues related to our project with some people and only responses to questionnaire were collected.


Human Resource and Personal Management - K. Ashwathapa Organizational Behavior http/intranet 1 ± KHSTPP www.google.com www.wikipedia.org www.citehr.com www.ntpc.co.in Stephen p. Robins


Questionnaire On Effectiveness of Performance Management System  You feel convenient with computerized online performance management 
system at NTPC 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Your job description clearly defines KPA¶s (Key performing areas) on which 
your performance is rated. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

The goals (KPA¶s) set are always mutually agreed upon ie ± your consent is 
taken into consideration while setting KPA¶s. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

The performance goal set by the appraiser for you are in alignment with your 
career aspirations. 1. strongly disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree

The deadlines set to complete and submit the performance documents are 
sufficient. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Your KPA,s are in accordance with the MOU targets of the company and the 
targets of the plant. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

All the factors facilitating and hindering performance are taken into 
consideration while appraising the performance 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Your seniors assist you at the time of your need. 
1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree


Your final rating is based not only on your competencies and KPA¶s but also on 
several other factors like your corporate image and interpersonal relation with the rater. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Your doubts/Queries are addressed by the PMS administrator while operating 
online PMS. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Performance management system is very useful for career planning. 
1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

The process is used mainly for improving the future performance along with 
reviewing the present performance. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree


You feel free to express to your appraiser your disagreement regarding the 
appraisal decision. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Your senior manager provides you with continuous feedback to help you 
achieve your KPA¶s. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

The recognition given to high performance is appropriate and helps in 
motivating the employees. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Appropriate training is given to employees who fail to meet the expected 
performance level. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree


The online PMS is dynamic and keeps you aware about your instantaneous 
weak or strong area of performance effectively. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

You are satisfied with the weightages given against each activity that you are 
supposed to perform in the specified period. 1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Your training need should be identified through the mid year review. 
1. 2. 3. 4. 5. strongly disagree Disagree Neutral Agree Strongly agree 

Managers and Employees trust the appraisal process. 
1. strongly disagree 2. . Disagree 3. Neutral 4. Agree 5. Strongly agree


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