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NTPC: People Power
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HRM group assignment

FORE School of Management


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Group 6

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Submitted By:
Vineet Verma 191183
Sonam Arora 191176
Shikha Ghai 191173
Sameer Narula 191169
Saif Khan 191167
Naveen Yadav 191150

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Table of Contents

Acknowledgement ...................................................................................................................... 3

About the Company .................................................................................................................... 4

Recruitment and selection .......................................................................................................... 9

Performance Appraisal system .................................................................................................. 10

Training and Development ........................................................................................................ 18

Promotion policy ....................................................................................................................... 21

Reference and bibliography ....................................................................................................... 22

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ACKNOWLEDGEMENT

The project Industrial research has been conducted by our group members, based on
the Primary research, under the guidance of Mr. S.S. Narula

We owe enormous intellectual debt towards our guide Mr. S.P. Chauhan, who has
augmented our knowledge in the field of Industrial research. He has helped us learn
about the process and giving me valuable insight into the field of Human Resource
Management.

Last but not the least, we feel indebted to all those persons and organizations who have
provided helped directly or indirectly in successful completion of this study.

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National Thermal Power Corporation
HR Vision:
"To enable our people to be a family of committed world class professionals."

"I firmly believe in the idea that the basic difference between a winning company and a losing company is the
difference among their employees."

- C. P. Jain, Chairman and Managing Director, NTPC, in 2000

Vision
“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

Background
NTPC Limited is the largest state-owned power generating company in India. Forbes Global
2000 for 2009 ranked it 317th in the world. It is an Indian public sector company, at present the
Government of India holds 84.5% of its equity. With a current generating capacity of 31134
MW, NTPC has embarked on plans to become a 75,000 MW company by 2017. It was founded
on November 7, 1975.

NTPC's core business is engineering, construction and operation of power generating plants and
providing consultancy to power utilities in India and abroad.

The company identified competency, commitment, culture and system as the four pillars of its
human resource strategy. In relation to its human resource management, the company's
corporate plan stated that it aimed to "create a culture of team work, empowerment and

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responsibility to convert knowledge into productive action with speed, creativity and
flexibility" and thereby gain a knowledge-based competitive edge.

The total installed capacity of the company is 31134 MW (including JVs) with 15 coal based and
7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based
& another station uses naphtha/LNG as fuel. By 2017, the power generation portfolio is expected
to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW
through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and
around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged
growth strategy which includes capacity addition through green field projects, expansion of
existing stations, joint ventures, subsidiaries and takeover of stations.

NTPC has been operating its plants at high efficiency levels. Although NTPC‟s share at 31 Mar
2001 of the total installed capacity of the country was 24.51% and it generated 29.68% of the
power of the country in 2008-09. Every fourth home in India is lit by NTPC. 170.88BU of
electricity was produced by its stations in the financial year 2005-2006. The Net Profit after Tax
on March 31, 2006 was INR 58,202 million. Net Profit after Tax for the quarter ended June 30,
2006 was INR 15528 million, which is 18.65% more than for the same quarter in the previous
financial year. 2005).

The Rs 49,478.86-crore power major employs about 25,000 die-hard loyalists, who take pride in
the 35-year-old brand and its empowerment attributes. Call it branding through inspiration-
setting up power stations in record time, lighting every fourth bulb in the country, manpower
productivity et al. That may explain the ultra-low 0.9% attrition and the highly efficient 0.82
man-to-megawatt ratio. "In 3-5 years, we'll get it down to 0.5," resolves RC Shrivastav, Director
(HR).

The legion of loyalists is unending as the average stay per employee tots up to 24 years.
Interestingly, the company's 22 townships are a major draw. "These are fully-equipped
townships with schools, hospitals, swimming pools, auditoriums, stadia and the works, which are
owned and maintained by the company," informs Shrivastav.

While the company is now developing a pipeline of leaders for key leadership positions with its
homegrown Leadership Assessment and Development System (LEADS), it has also come up
with a system of rewarding exemplary ideas from within. The Idea Portal of NTPC (IPoN) and
NTPC Open Competition for Executive Talent (NOCET) are sterling examples.

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While IPoN deals with in-house suggestions on productivity improvement, NOCET is more
focused, wherein the chairman and directors throw up theme/s for the year, for which innovative
solutions are sought from employees' teams. The best get to cash in.

Though the company hires 1,200-1,500 executives and about 500 workmen each year, the
numbers seem to nosedive significantly in the coming years with growing automation and
outsourcing at the lower end of the business chain.

But the company remains uncompromising in attracting people with the right mindset to its
plants and offices-those who can sink in to the working style of a public sector company and yet
be highly productive. And since most of the plant locations are at remote places, the gender ratio
would seem a bit warped at 1:18 (men: women). But then, at the executive cadre, NTPC is now
dealing with that disparity too with more women coming in to functional roles.

The company recruits every year through a highly competitive ET test. Every year about 1.5
Lacs students take the exam and 500-600 candidates are selected after an interview.

The Stream wise distribution is as follows

Mechanical Engineers - 40%

Electrical engineers - 35%

Instrumentation Engineers - 10%

HR and Finance - 15%

The company officials also visit the prestigious institutions in the country like Anna University,
DCE, BITS-Pilani, the IITs including ITBHU, ISM Dhanbad and the NITs to recruit ETs. It
started from the year 2007 to reduce the recruitment cost to company.

NTPC also has an Elder‟s forum, which provides the following facilities to the elderly:

 Post Retirement Medical Scheme


 Medical Form
 Claim Form for Reimbursement of medical expenses
 Form for Details of Amount claimed

NTPC's human resource policy has been closely aligned to its corporate vision of becoming one
of the world's best power utilities. Its HR vision was formulated with the aim of "enabling the
employees to become a family of committed world class professionals thus making the company
a learning organization."

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The company identified competency, commitment, culture and system as the four pillars of its
human resource strategy. In relation to its human resource management, the company's corporate
plan stated that it aimed to "create a culture of team work, empowerment and responsibility to
convert knowledge into productive action with speed, creativity and flexibility" and thereby gain
a knowledge-based competitive edge.

HUMAN RESOURCE DEPARTMENTS at NTPC

ED EB ER ES EDC Rajbhasha

Group

EMPLOYEE DEVELOPMENT (ED)

This department takes the HR initiatives of promotion, appraisals and other development
aspects. ED maintains the Management Information System for the organization.

EMPLOYEE BENEFITS GROUP (EB)

The Employee Benefits Groups take care of the welfare and benefits like recruitment, separation
loans and advances, which the employees are eligible. The Voluntary Retirement Scheme is also
dealt by EBG.

EMPLOYEE RELATIONS GROUP (ER)

The ERG is in charge of the Industrial Relations Contract Labor, security i.e. CISF and GPAIS of
NTPC, Shaktinagar.

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EMPLOYEE SERVICE GROUP (ES)

The ESG deals with entitlements handling and other law related matters.

EMPLOYEE DEVELOPMENT CENTER (EDC)

The EDC conducts various workshops and Training Programme to employees and other
trainees. EDC conducts IGNOU exams for employees who are interested in doing higher
education with jobs.

RAJBHSHA GROUP

As it is compulsory for all Government organization to keep a Hindi so is in NTPC also for the
same reason NTPC has Rajbhasha Group. This Group does the Hindi translation; conduct
debates and other Hindi promotional activities

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Recruitment and selection
For recruitment the company follows the following processes

1. The company conduct the all India written test known as ET, after clearing the written
test they have to go through several rounds of GD and PI befor they are selected
2. It also goes to the various IIT‟s and NIT‟s for the campus recruitment.

NTPC believes in the philosophy „Grow your own timber‟. They hire from campuses and via
yearly ET (Executive Trainee) test and groom individuals into all round Power Professionals.
NTPC's „Executive Trainee‟ Scheme was introduced in the year 1977 with the objective to raise
a cadre of home grown professionals. First Division Graduate Engineers/Post Graduates are
hired through nation wide open competitive examination and campus recruitments. Hiring is
followed by 52 weeks induction training (fully paid) consisting of theoretical input, on job
training, personality development & management modules.

Theater Workshop- The orientation module for ETs include such unique practices like Theatre
Workshops in order to enhance their communication skills-verbal and non verbal, team work,
body language, expressions etc. conducted with the help of professional institutions like National
School of Drama.

Yoga - For the holistic development of the trainees, caring for their physical health and mental
alertness is as important as hard skills training. Yoga and meditation are part of our orientation-
training programme for Executive Trainees. Yoga sessions are scheduled every morning during
the training period.

Corporate Social Responsibility- In order to make new hires a part of our social responsibility
drive, exposure to on-field community development and responsibilities towards Project
Affected Persons is given. A special module on corporate social responsibility is a part of
orientation training which covers all the important aspects of corporate social responsibility like
environment, safety, health hazards, environmental impact, ash utilisation etc.

Mentoring "Ankur"- For effective socialisation and transformation from training mode to
executive capacity of taking responsibility, executive trainees are attached to mentors once they
are put on job. Mentors are senior executives with 10-15 years of experience in NTPC who act as
a friend, philosopher and guide to the budding power professions.

Sports- To keep the trainees physically active and agile, emphasis is laid on sports activities.
Sports infrastructure has been provided at each NTPC location and inter/intra unit matches are
organised from time to time.

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Performance Appraisal System (PAS)

INTRODUCTION

Philosophy of Performance Apraisal System.

To build a culture of performance by aligning individual and organizational

Objectives and encouraging open communication feedback.

OBJECTIVES

 To accomplish the overall organizational vision and mission by linking individual performance to
company objectives.
 To cascade company‟s strategic goals to individual level.
 To promote professional excellence.
 To encourage a two-way communication between executive and the Reporting Officer and bring
about transparency in the performance assessment process.
 To evaluate the potential of the executives to ensure higher responsibilities in the organization.
 To provide a source of talent for meeting organization‟s growth requirements through a process
of mapping the competencies and potentials of executives.
 To translate future skill requirements of the organization into individual developments plans.
 To identify high performers and recognize them rewards and incentives.
 To facilitate fulfillment of individual aspirations.

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APPLICABILITY

 The revised Performance Management System is applicable to all executives of NTPC (E1-E9).
 Executive who join NTPC on deputation or retaining lien while in service of NTPC are also
covered by this scheme.
 Executives who join in the middle of the PMS cycle, but have served for a minimum of three
months.
 NTPC executives who are on secondment or are lent on service to subsidiaries and joint ventures
with NTPC management.

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Performance Appraisal System AT NTPC is a five step process:-

Step 1 Step 2

Performance Mid – year


planning Review

PAS Process
Step 3
Feedback Annual
Step 5 Assessment

Normalization
Process

Step 4

1. Performance Planning:
Performance Planning is the process of:

 Defining expectations i.e., the work to be done, the results/ targets to be achieved and
skills/ competencies needed to achieve these objectives.

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 Setting “Measures” and “Targets”, determining priorities and weightages of results to be
achieved.
 Identifying and allocating appropriate resources (such as manpower, tools, training, budget
etc.) to enable the executive to achieve the targets.
While defining work objectives and measures, it is necessary to ensure that:

 Goals/ Targets/ Objectives are SMART (Specific, Measurable, Agreed, Realistic and Time
bound)
 Results are substantially within the executives control.
 Measures relate to results.
 Data are available for measurement.
 Agreement on mutually agreeable and achievable Performance targets is arrived at after
sufficient discussion between Reporting Officer and executives have taken place.

2. Mid Year Review:

Performance management is not an event but an on going process. Mid Year Reviews helps in
the following ways:

 Reinforcing good performance in time.


 Updating the status of targets i.e., progress review.
 Identifying areas for “mid course” correction.
 Revisiting KPAs and goals, if necessary.
 Assessment resources and skill requirements affecting the individuals performance
 Discussion and feedback on functional competencies, managerial competencies,
potential competencies and core values actualization.
 Providing early warnings of non-performance, i.e., avoiding year end surprises.

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3. Annual Assessments:

The objectives of annual assessment are to:

 Discuss and arrive at an assessment of performance with respect to agreed targets.


 Assess the competencies, potential and core value actualization by the individual.
 Agree upon improvement plans and development plans and development needs for the
individual.

4. Normalization

 Ensure parity and integrity by minimizing variation in rating by different reporting


officers across various department and locations.
 Enhance objectivity and transparency in the appraisal system.
 To view individual and performance from the perspective of organizational
achievement.

5. Feedback, Coaching and Counseling

In order to make PMS an open system and to enhance development orientation across the
organization; feedback, caching and counseling are essential components. Communication
the final performance results of the executive and providing developmental feedback are
critical to this process.

5.1 Feedback

Providing feedback on performance presents the following benefits:

 Creates transparency making PMS more acceptable to individuals.


 Reinforces good performance on time.

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 Enables development of coaching and mentoring relationship between reporting officer and
executive.
 Ensures that organizational objectives are achieved to an acceptable standard and in an
acceptable form.
Providing performance feedback is a delicate matter and the reporting officer should create
suitable conditions for providing performance feedback in the most effective manner.

In general

 Feedback should be focused on the specific performance actions and not on the
personality of the executive.
 Feedback should be generated after reviewing all achievement and issues
throughout the assessment period and not focused on isolated incidents.
 Feedback calls for maintaining a log of critical occurring during the assessment
period for recording both achievements and failures with details, as an aid to
memory during performance discussions with the executive.
 Feedback be given as regularly as possible so that enough opportunities are
created for executive to bridge performance gaps through self-development.

5.2 Coaching and Counseling

Coaching is an on-the-job approach to help individuals to develop and raise their skills and
levels of competence. Coaching typically consists of:

 Making executives aware of how well they are performing and their present level
knowledge and skill.
 Providing guidance to individuals to enable them to complete their work
satisfactorily.
 Motivating individuals to learn new skills and develop themselves.
 Facilitating individuals to raise their level of contribution and achievement.

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Counseling in the PMS context essentially is a process by which executives can receive
assistance in sorting out issues and related to current and future responsibilities and aspirations.
Therefore, Reporting Officers are required to encourage individuals to plan for their own self-
development. The process of counseling is through:

 Recognition and understanding of existing strengths.


 Empowering, i.e., enabling the individual to recognize their own problems and
expressing the same.
 Facilitating actions through guidance and expertise, i.e., facilitating the process
whereby the individual evaluates alternatives and formulates action plans to achieve
the most suitable course of action.
 Helping individuals to take ownership of their chosen action.
Coaching and Counseling together act as a feedback mechanism for the individual on his/ her
performance. Reviewer/ Reporting Officer to communicate the areas for development and
improvement to the executives often uses it.

PAS at NTPC comprises assessment on four parameters with different weightages for various
levels of employees

S.NO. PMS PARAMETER WEIGHTAGES FOR DIFFERENT GRADES


E1-E3 E4 E5 E6-E7 E7A-E8 E9
1 KPA 80 75 65 60 50 50

2 a. Functional 10 10 10 10 10 05
competency
assessment
b. Managerial 05 05 10 10 15 15
competency
assessment
3 Potential Nil 05 10 10 10 10
assessment
4 Value assessment 05 05 05 10 15 20

Total 100 100 100 100 100 100

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PERFORMANCE LINKED PAY

EMPLOYEE
COMPENSATION

VARIABLE FIXED
COMPONENT COMPONENT

(Proportion increases with seniority) (Proportion decreases with seniority)

INDIVIDUAL
PERFORMANCE

UNIT
PERFORMANCE
COMPANY
PERFORMANCE

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Training and development
NTPC subscribes to the belief that efficiency, effectiveness and success of the organisation
depends largely on the skills, abilities and commitment of the employees who constitute the most
important asset of the organisation. Therefore, a lot of emphasis is laid on the training and
development of employees.

NTPC view of employee development has a very wide perspective and is not constrained to job
related inputs. Training in NTPC is carried out with short term and long term objectives to
impart skills required to carry out various jobs and provide developmental input for the
individual‟s and organisation‟s future growth.

Training Infrastructure

NTPC‟s training policy envisages minimum 7 Mondays of training per employee per year. Our
philosophy is to develop our own training systems and deliver training internally as far as
possible. Hence, NTPC has developed its own training infrastructure which comprises of

1) Power Management Institute– It is the apex training institute of NTPC located in NOIDA,
close to the company headquarters and houses a world class training infrastructure. It has two
residential hostels with internet broadband facility in each room. PMI has multiple training and
conference rooms fitted with audio visual training aids. The PMI auditorium has a seating
capacity of 300 and hosts many conferences at national and international level.

PMI houses indoor badminton court, swimming pool, tennis court and gym for use of
participants. The Institute has full time dedicated faculty and organises training and conferences
for NTPC and other companies as well.

2) Employee Development Centres- Employee Development Centres (EDCs) are located at all
NTPC projects and stations and take care of training needs of employees at the unit. They have
similar infrastructure as that of PMI and have full time dedicated staff of 150 employees across
NTPC. EDCs serve to meet the training needs that can be catered to locally.

3) Simulator Centres- NTPC is the proud owner of two simulator training centres, for both coal
based and gas based plants, which are the only ones of their kind in the country. Our gas based
simulator centre is located in Kawas (Gujarat), while coal based simulator centre is in Korba.
These simulator centres are meant give hands on experience of operating a power plant to our
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engineers. NTPC also extends this facility to many other organisations in power industry or
equipment manufacturers who send their employees for training at our simulator centres.

4) CLASS (Center for Learning & Self Strive)- Is to add value to the organization in achieving
desired level of Productivity, Performance and Profitability (3 Ps) through people. CLASS is to
enhance efficiency and effectiveness in work in order to achieve business targets and goals.
CLASS works for building up employees competence to maintain the competitive ratio between
skill and salary.

Some Initiatives

NTPC have introduced numerous initiatives which seek to enhance the creativity, innovation,
functional aptitude and teamwork of our employees. These initiatives are:

 NTPC Open Competition for Executive Talent (NOCET)- National Open Competition for
Executive Talent (NOCET) is a 3 tier theme based team event held to solicit ideas on
latest issues facing the organisation. A „Theme‟ for the competition is decided by CMD of
NTPC. A topic that is relevant to NTPC scenario is chosen. 3-4 member teams are
formulated that compete at unit, regional and corporate levels. A panel of judges
comprising of top notch NTPC executives and external experts judge the teams on their
concept and presentation.
 Professional Circles - As a learning organisation, NTPC encourages formation of
Professional circles for knowledge dissemination; knowledge updating etc. professional
circles are interest groups where employees sharing same interest areas get together to
share knowledge and latest developments in the field. In order to encourage and recognise
professional circles, NTPC has institutionalised a three-tier competition amongst the
professional circles culminating at the company level. Currently, about 300 professional
circles are active in the company.
 Quality Circles- Quality circles were introduced as an initiative to involve every grass root
level employee. Under this initiative, employees volunteer to take up improvement
projects in their work areas. Annual contests are organised at project level, regional level
and company level in which QCs from all over NTPC compete with each other. The
winning team also gets a chance to participate at National and International level QC
Convention. NTPC has been winning the National Quality Circles Convention for last 4
consecutive years and has participated in International Quality Control Conventions at
Bangkok(2004), South Korea (2005), Indonesia (2006) and China (2007)
 Business Minds- Another initiative which is very popular among NTPC employees, is
called the Business Minds. This is a management game that develops strategic thinking &
decision making in executives by exposing participants to simulated real life business
situations that help them discover new skills. It is conducted in association with AIMA.
Cross-functional teams participate in the game as it is multi – disciplinary in nature
reflecting real life multifunctional role of business. Qualifying teams compete at the
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national level. In 2008, The winning team from NTPC Ramagundam also won the national
management games competition conducted by AIMA and qualified to compete at the Asia
level.
 Medha Pratiyogita- We have been conducting a quiz competition very successfully.
Medha Pratiyogita is conducted for the children of NTPC employees. It features renowned
Quizmaster Derek O‟Brien and his team. The quiz is conducted at the Project, Regional
and Corporate levels.
 Knowledge Management in NTPC- In initiative to meet our ultimate objective of
becoming a Learning Organisation, an integrated Knowledge Management has been
developed. This system allows tacit knowledge in form of learning and experiences of
employees to be captured and summarised for future reference. It provides adequate
communication and a formal process for classification, codification, and sharing of
knowledge through which employee can contribute, learn, share and generate solutions.

Planned Interventions

For management development, NTPC has a set of planned interventions designed for each stage
in a person‟s career. Each of these is a custom made, medium term training programme,
specifically designed to give developmental input at a particular stage in the person‟s career.

Education Up-gradation Schemes

To meet academic aspirations of employees and match them with needs of the organisation,
NTPC has tie-ups with institutes of repute like MDI, Gurgaon; IIT, Delhi; BITS, Pilani etc.
NTPC sponsors fixed size batches of employees who are inducted into these courses based on
their performance rating in the company and their performance in the entrance exam conducted
by the institutes. Unlike other study leave and sabbaticals, employees undergoing these courses
do not forego their salary or career growth during the duration of the course.

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Promotion policy
Promotions at NTPC is both performance and duration based, the eligibility criteria followed at
NTPC is:

POSITION LEVEL ELIGIBI


LITY
FOR
PROMO
TION (IN
YEARS)
ASSTT. E1 3
ENGINEER
SR. ASSTT. E2 1
ENGINEER
ENGINEER E2A 3
SR. E3 3
ENGINEER
DY. E4 3
MANAGER
MANAGER E5 4
SR. E6 4
MANAGER
DY. E7 4
GENERAL
MANAGER
Asst. E7A 2
GENERAL
MANAGER
GENERAL E8 3
MANAGER
EXECUTIVE E9 -
DIRECTOR

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Bibliography:
Primary Source:

Mr. S.S. Narula,

Sr. Manager, HR NTPC

Secondary data:

Economic times 21 Jun, 2010 edition

The financial express Thursday, Aug 30, 2007 edition

Wikipedia

NTPC website: www.ntpc.co.in

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