Professional Documents
Culture Documents
On
STRATEGIC HUMAN RESOURCE
MANAGEMENT
Submitted By:
Saumya Aggarwal
026/Cse/2k5
(B.Tech-MBA Dual Degree)
ACKNOWLEDGEMENT
I express heartfelt thanks to Ms. Sona Vikas, our respected faculty member, who has
been my constant guide throughout the work on this project. Our work could not have
gained its present shape but for her constant guidance.
Also, I would like to thank Ms. Bhawna Sikka, Food Services and Vending Executive of
Nestle Connaught Place Branch Office and Mr. P.K.Sinha, Deputy General Manager of
Human Resource Department of NTPC office at SCOPE building, CGO complex, Lodhi
Road, New Delhi for their wholehearted efforts. The project would not have taken its
present shape without their valuable insight. I express my gratitude to them for providing
me their valuable time and helping me in interacting with the employees.
I also express our gratitude to all those people who allowed me to work with them.
Lastly, we would like to extend our sincere thanks to all those who have directly or
indirectly helped us in the completion of this project.
INDEX
Serial no.
1.
2.
3.
4.
5.
6.
10.
Chapter no.
Description
Page no.
Chapter 1
Introduction
Chapter 2
Book Reviews
10
Chapter 3
Article Reviews
14
Chapter 4
SHRM at Nestle
26
Chapter 5
SHRM at NTPC
33
Chapter 6
39
Annexure
41
CHAPTER 1
INTRODUCTION
1.1 WHAT IS STRATEGIC HRM?The linking of human resources with strategic goals and objectives in order to improve
business performance and develop an organizational culture that fosters innovation,
flexibility and sustainable competitive advantage is called STRATEGIC HUMAN
RESOURCE MANAGEMENT.
In the case of Strategic human resource management, the HR function is a strategic
partner in the formulation and implementation of the companys strategies through HR
activities.
1.3 KEY FACTORS OF SHRM PROCESS- The external environment which is very dynamic in the current global business
scenario.
- The business strategy - it affects and is affected by the SHRM process and which
gives the organization a well thought of direction.
- The internal environment the organisational context and the general culture
which is prevalent in the organization.
- The outcomes of the SHRM process which should be evaluated both
quantitatively as well as qualitatively.
1.4 PRACTICAL ROLE OF SHRM- Build a Strategic Framework: Mission Statement, Vision, Values.
- Help in goal setting. Look Beyond Traditional Goals.
- Create Leadership Vision and culture of innovation.
- Support Company's Brand (employees as customers approach).
- Manage a cross cultural work-force.
- Manage the young, overambitious recruits.
- Manage continuous competitiveness in a changing business environment and
technology and product delivery systems.
- Keep HR cost to minimum possible.
- Create employee loyalty programmes.
- Design and utilize assessment metrics for evaluation of SHRM process.
SELECT
ENROLL
TRAIN
PROFITS
SALES
EVALUATE
REWARD
COSTS
PRODUCTI
V-ITY
MOTIVATE
1.6 STEPS IN STRATEGIC HRM PROCESSThe analysis of the Strategic HRM process has been done from the point of view of a
new business strategy being adopted by an organization:
- New Business Strategy.
- SWOT Analysis done to ascertain the strengths, weaknesses, opportunities and
threats of the current human capital of the organization.
- Assess HR Capacity whether the current capacity is sufficient or whether more
human capital is required.
- Develop Core Competencies assimilate the best practices from the organizations
earlier strategy into the new strategy.
- Test and Evaluate evaluate the new strategy and the proposed HR integration with
it for fissures.
- Initiate HR Practices this should be done in line with the new strategy.
- Recruit, Orient, Train and Develop.
- Evaluate Performance check whether the new strategys implementation is on
course or not and whether the HR is an intrinsic part of the implementation process.
- Establish Career, Succession Plans; Set Total Reward System this would help in
motivation and fostering loyalty in the employees.
1.7 COMPETENCIES OF AN HR EXECUTIVE- Strategist Knows the business inside out. Helps align the personal goals of
employees with strategic goals of the organization.
- Administrator Deliver the Basics like recruitment, training, retention etc.
- Peoples Champion champions the cause of employees in the organization.
- Change Agent helps bring about change in the organization by convincing
employees the change is good for their as well as for the organizations growth.
1.8 NEED FOR SHRM- Increase competition in both local and global markets requires organizations to
involve their people in developing the strategy for a sustainable competitive
advantage.
- Maintaining a competitive advantage by becoming a low cost leader or a
differentiator is possible through good HR practices, as best practices in terms of
the working of human capital within an organization are hard to replicate.
HRM
Financial results
CHAPTER 2
BOOK REVIEWS
2.1 BOOK 1Roadmap To Strategic HR- Turning a Great Idea into a Business Reality
By Ralph Christensen
The book illustrates a practical approach for turning Human Resource into a crucial
component of success. For decades now, human resources professionals have sounded
the drumbeat of change: HR must transform itself from an administrative function into a
strategic business partner. But it has been said so often, for so long, and with so little
concrete, real-life information on how to actually achieve this new mission, that the
message often sounds like a wouldn't-it-be-nice scenario.
But it isn't. More and more traditional HR activities are being farmed out to service
centers, external vendors, and line managers. The work of HR is changing, and more and
more professionals realize that to succeed in the future they must be part of the team that
makes important business decisions.
10
Understand the business realities that are driving change, including employees
afraid for their jobs, and demanding and scarce customers.
Recognize the roadblocks and political landmines that might lurk along the way.
The connection between people issues and business success is irrefutable. As the author
so aptly puts it: "Talent is the engine behind the creation of all value." Roadmap to
Strategic HR is a practical book which strengthens the link between people and value
for building a department that drives excellence throughout the organizationand for
honing ones department's focus so that it stays locked on the marketplace and the
business strategy.
11
The book provides a planned & proactive process of partnership with top management to
achieve desired long term organizational growth and direction while satisfying the
individual objectives and growth of best employees.
Strategic HRM discusses that every employee has a right and looks forward to both
horizontal and vertical growth with room for experimenting with ideas and testing
entrepreneurial spirit within and organization have to continuously adapt to this
requirement by changing and expanding. No one likes to work with stagnant organization
or organization without sharing growth with employees-Promotions, participations and
financial rewards.
Thus, organizations have to continuously adapt by changing and expanding and must
look after the following processes-
Careful and extensive systems for recruitment selection and training (RST).
Promotion and compensation schemes that provide for the recognition and reward
of high- performing employees.
12
The changing profile of New Age young workers has to be built in HR policies like
flexibility of work time, freedom for experimenting, quick growth and sense of identity
with projects of company.
It is also seen that Top management/owners in Indian companies still have commodity
approach underpaying, disallowing delegation, curbing enterprise and failing to
communicate organizational goals. Such organizations have little chances of growth or
survival for long in new environment. Here role of HR leadership is most crucial to
transform the organizations into innovative, learning and flexible organization where
employees find it exciting to work with lot of room with all round positive environment
within the organization.
13
CHAPTER 3
ARTCLE REVIEWS
3.1 ARTICLE NO.1Strategic Human Resource Management-Three Stage Process & Influencing
Organizational Factors
By Sandeep Krishnan (IIM-A) and Manjari Singh (IIM-A)
3.1.1 INTRODUCTIONA three-stage model for the process of strategic human resource management has been
developed in this paper. The three stages cover strategy formulation, implementation and
evaluation.
3.1.2 SIGNIFICANCE OF THE ARTICLEThe literature in the field of SHRM prior to this research had been developed up to the
two-stage process till concepts like the Two Way Vertical Fit and the Horizontal Fit. The
third stage developed in this paper has not been explicitly taken up in existing literature
till now
The two-stage model does not explicitly clarify how the fit will be assessed and achieved.
In order to assess both vertical and horizontal fit, the evaluation and feedback stage is
vital for any process of SHRM. It will also help in maintaining a better fit between the
intended and actual strategy. It will also help in demonstrating HR successes and increase
the credibility of the HR department.
14
Devanna et al. (1981) put forth a number of reasons why strategic orientation may
lack in the HR function. A major one is that the top management does not
perceive it important to include the HR department in the decision making
process.
Tony Rucci states that the three significant barriers to HR playing a more
proactive role in the next ten years are a) Lack of basic economic literacy among
HR professionals, b) Lack of comfort among HR professionals to take risks and
c) HR professionals who do not demonstrate courage of conviction about their
principles (Huselid and Becker, 1999: 362).
3.1.4 BASIC CONCEPTS ON WHICH THE MODEL IS DEVELOPEDOne-way Vertical FitIt talks about aligning HRM systems to the business strategy and the partnering role of
HR where HR is highly integrated with business processes.
Two-way Vertical FitIn this particular scenario the HRM systems not only align to the business strategy, but
also contribute in the strategy formulation the HR departments role as a strategic partner
emerges in the two-way vertical fit. This includes activities like creating a culture change,
identifying mergers and acquisition possibilities, tracking the market and proactively
making changes.
Horizontal FitIt refers to the alignment of various HRM systems to each other and the alignment of key
HR systems and processes with for bringing out desired behaviors and culture in the
organization.
15
This model follows the concept of interactive business and HR strategy so that each
contributes to the formulation of other.
- Elements of HR like acquiring, managing and developing the competencies are
important for the success of strategy implementation.
-
Issues like high turnover of employees, lack of morale and motivation, low
employee satisfaction, undesirable work-place politics etc. are looked into and their
likely impact on strategy implementation are examined.
16
- The second stage has a two-way link with the first stage. Not only are HRM systems
aligned with the HR strategy, but HRM systems and their outcomes also provide
information pertaining to organizational context for the formulation of business
strategy. This two-way link strengthens the role of HR department as a strategic
partner. In the evaluation metric of this model, defining and measuring goal
achievements or outcomes of various HRM practices and activities is the first step.
Also there are factors that act as enablers/ deterrents for the effectiveness of the
evaluation and feedback stage. The factors that influence this stage may be categorized
into structural, operational, and behavioral factors.
The structural factors include the scope of the evaluation and feedback process, level of
Formalization of the evaluation and feedback process, proper selection of assessors, and
Periodicity of evaluation and feedback.
The operational factors are the availability of required data, proper measurement
techniques, required analytical skill, and technological support for data collection and
analysis. Evaluating the impact of HRM systems is a challenge for measurement
techniques because the effects of environmental and personal factors are inter-mixed with
it (Gordon, 1972). Valid interpretation may not be obtained because of faulty measures or
lack of appropriate measures. HR professionals may not have required analytical skill for
the evaluation process so they either need to be given special training or provided help of
experts (Gordon, 1972).
The behavioral factors include the purported use of the evaluation results, transparency
in the evaluation process, perceived and real fairness of the process, extent of
implementation of the suggestions/feedback, man-hours spent on evaluation and
feedback, importance given to the process, and incentives for various stakeholders.
17
3.1.5 CONCLUSIONAnything less than the complete process described in the model increases the possibility
of failure. Organisations can no longer ignore the necessity of an integrated three-stage
process for SHRM that should at least include:
1. Efficient and inter-linked HRM systems linked to business strategy and
2. Monitoring mechanisms to identify and correct any sort of misalignment.
The enablers/deterrents for each stage is another important contribution of this paper.
18
According to the authors investment in Human capital management can be directly linked
to organizational performance. They have explained methods for measuring bottom line
contributions of investment in human capital management (HCM)-like leadership
development, job design etc.
3.2.2 HCM DRIVERSThe authors with the help of various Employee and management surveys have identified
a core set of HCM drivers that predicts performance across a broad array of organizations
and operations.
These drivers are as follows:
1.
Leadership practices
2.
Employee engagement
3.
Knowledge accessibility
4.
Workforce optimization
5.
Learning capacity
In each of these categories HCM practices are further sub divided into groups such as
under leadership practices: communication, supervisory skills etc.
19
3.2.3 MATURITY SCORESThese surveys are effective in gauging and improving organizations capability across 23
HCM practices based on maturity scores ranging from 1 to 5 with 1 indicating low
performance and 5 high performances. It helps in benchmarking organizational HCM
capabilities, identifying HCM strengths and weakness and linking improvements or
backsliding in specific HRM practices with improvements or shortcomings in
organizational performance. Also multiple surveys over time can reveal progress or
regression in each of the HCM practices and help a company decide where to focus
improvement efforts that will have a direct impact on performance.
3.2.4 CONCLUSIONThus with these HCM tools HR can start gauging how well people are managed and
developed throughout the organization. In this role HR department can take a strategic
responsibility, acting as coaching, mentoring and monitoring agencies to ensure that
superior management of human capital becomes a central part of the organizations
culture.
20
3.3.1 CISCOCISCO is an armed security business, became a private and commercial business after
takeover by Temasek Holdings Pte Ltd in June 2005.It came to be known as CISCO
Security Pvt. Ltd. All 4200 employees were transferred to the new company.
3.3.2 THE EARLIER SCENARIO AT CISCOIt was merely administrative in nature, HR practices were irrelevant to the business
resulting in very high staff turnover and uncompetitive salaries. All Business unit heads
crafted their own people policies to cope up with increasing competition. The HR an
obstacle to change and hinged onto bureaucratic practices that effected business and
people practices.
3.3.3 THE CHANGE PROCESSHowever when the company was in the process of transition, HR function was
completely overhauled and transformed to a strategic function to facilitate the transition
of the company to a private company. HR aligned itself with the critical needs of
business. The objective of the new HR team was to shape the CISCO manpower and
talent to support the new philosophy and the mission of its business to deliver high
quality services to its clients.Major considerations for the new HR transformation were:
Understanding the needs of the business units and their unique challenges.
21
3.3.4 THE HR PILLARSTo achieve the above objective the following key HR pillars were formed Manpower Planning and Recruitment
Aligning human capital development
Strategic compensation and benefits
Employee engagement
HR systems and service delivery
3.3.5 THE KEY CHALLENGESHR transformation to a commercial enterprise was a challenging task. The Toughest job
was to convince existing staff to transform from a back end function to a front line area.
However Effective communication played an important role in overcoming these
challenges.
3.3.6 CONCLUSIONTo conclude the new role of HR was to shape the CISCO manpower and talent to support
the new philosophy and the mission of its business to deliver high quality services to its
clients thereby reflecting the strategic role of HR function.
22
3.4.2 TQM SELECTION PROCESSAs opposed to what was believed traditionally by the HR Department, generation of more
number of CVs is generally not good. Instead, firms should filter the applications and
spend more time with few candidates.
3.4.3 EMPLOYEE SATISFACTIONIt is as important as Customer Satisfaction because satisfied employees can add value
towards enhancing customer satisfaction. It also bridges the gap between what senior
leaders feel is necessary to improve employee satisfaction & their real need.
3.4.4 PERFORMANCE APPRAISAL & JOB PERFORMANCEThese practices can cause managers to ignore system factors and cause employees to
compete instead of cooperate as:
In sharp contrast to the TQM performance assumption, the field of human resource
management (HRM) assumes that performance is largely due to the worker and not the
system/process.
Both person and system factors can directly influence work performance. Moreover,
system factors can enhance or constrain the influence of person factors on work
performance.
23
According to the article, in this whole process, HR alignment with the mission, vision
and values is very important. TCS VISION is of Being global top 10 by 2010 in the IT
industry is supported by its MISSION to ensure Customer delight by providing best in
class consulting, IT solutions and services and delivering value and joy to all
stakeholders. TCS has incorporated 5 VALUES -Integrity, Leading change, Excellence,
Respect for individual, Learning and sharing, that supports its mission and vision .TCS
has a robust HR alignment framework starting from the vision and mission which drives
the strategic objectives and business plans. It uses extensively BALANCED
SCORECARD (BSC) for aligning all HR and Other Departments activities across
geographies, industry practices, service practices and its delivery centres.
3.5.2 ROUTES TO ENHANCE SHAREHOLDERS VALUETCS considers its workforce capabilities as its principal offering to its customers. The
delivery routes to enhancement of shareholders value are- Through enhancement of customer delight through delivery excellence of world
class services and successful management of customer relationship and
- By enhancing employee delight through effective management of their operating
efficiency. All these add up to the companys human resource efficiency and
human capital effectiveness.
24
3.5.3 HR DELIVERY ALIGNMENT AT TCSAccording to the author another important aspect is HR delivery alignment with the
business objective. TCS considers its EVA as the main driver of its business objective.
EVA has two components: revenue and cost. Revenue is driven by realization rates and
the number of people engaged in client delivery. On the cost side, the performance
management group ensures optimum utilization of the budget to structure compensation
packages to attract, retain and recognize talent within the organization. Thus human
resource efficiency and human capital effectiveness affects the EVA and hence plays a
strategic role. At TCS alignment is done through a cascading balanced score card. It is an
effective instrument for linking the HR strategies and the HR delivery with the
organizations vision, mission and strategies.
3.5.4 BALANCED SCORECARDIt gives managers the opportunity to look at the Co. from the perspective of internal &
external customers, employees & shareholders. It is a performance measurement tool for
strategic planning and management including feedback. It should be used to:
Link HRM activities to the Cos business strategy.
Evaluate the extent to which the HR function is helping the Co meet its strategic
objectives.
25
CHAPTER 4
SHRM AT NESTLE
4.1 AN OVERVIEW OF NESTLENestl is a multinational packaged food company founded and headquartered in Vevey,
Switzerland. It resulted from a merger in 1905 between the Anglo-Swiss Milk Company
for milk products established by the Page Brothers in Cham, Switzerland, in 1866 and the
Farine Lacte Henri Nestl Company set up in 1867 by Henri Nestl to provide an infant
food product. Nestls trademark of birds in a nest, derived from Henri Nestls personal
coat of arms, evokes the values upon which he founded his Company. Several of Nestl's
brands are globally renowned, which has made the company a global market leader in
many product lines, including milk, chocolate, confectionery, bottled water & pet food.
4.3 WHY NESTLE?We have chosen Nestle because it is an appropriate company to study both open culture
and values of a company. Nestle believes in adaptation to a changing world, but its basic
foundation is unchanged from the time of the origins of the Company, and reflects the
basic ideas of fairness, honesty, and a general concern for people.
4.4 METHODOLOGY ADOPTED-A1. Primary Data collected by way of Interview schedule with Ms. Bhawna Sikka (
Food Services and Vending Executive, Cannaught Place, New Delhi) and
Questionnaire answered by 9 employees of different departments.
2. Secondary data collected by way of companys website and other sources.
26
Nestl does not favor short-term profit at the expense of successful long-term
business development.
Nestl recognizes that its consumers have a sincere and legitimate interest in the
behavior, beliefs and actions of the Company behind brands in which they place
their trust, and that without its consumers the Company would not exist.
Nestl believes that, as a general rule, legislation is the most effective safeguard
of responsible conduct, although in certain areas, additional guidance to staff in
the form of voluntary business principles is beneficial in order to ensure that the
highest standards are met throughout the organization.
Nestl continues to maintain its commitment to follow and respect all applicable local
laws in each of its markets.
Transparency and honesty in dealing with people are a sine qua non for efficient
communication.This is complemented by open dialogue with the purpose of
sharing competencies and boosting creativity.
The willingness to cooperate, to help others and to learn is a required basis for
advancement and promotion within our company.
27
4.7 A HUMAN COMPANYNestl is a human Company providing a response to individual human needs throughout
the world with specific concern for the wellbeing of both its consumers and its
employees. This is reflected in its attitude and its sense of responsibility towards people.
High Performance,
High Commitment.
This is because Nestl aims to increase sales and profits but, at the same time, to raise the
standard of living everywhere it is active and the quality of life for everyone. Nestl is
also convinced that it is the people who form the strength of the Company and that
nothing can be achieved without their commitment and their energy, which makes people
its most important asset. Involvement of people at all levels starts with appropriate
information on the Companys activities and on the specific aspects of their work.
Through open communication and active co-operation, everyone is invited to contribute
to improvements enhancing Company results and personal development.
The recruitment process at Nestle is clearly defined. People with qualities like
dynamism, realism, pragmatism, hard work, honesty and trustworthiness.
Recruitment for management levels takes place in the head office and all others at
the branch level. The existing employees are promoted to higher posts as per the
requirements. There are no lateral recruitments. Another source of recruitment is
campus placements and human resource consultancies.
28
Nestle human resources policy- This policy encompasses those guidelines which
constitute a sound basis for efficient and effective HR Management in the Nestl
Group around the world.
Nestle people development review-this policy throws light on Nestles culture and
core values, different training programs and life of employees after work.
4.8.2 TRAININGFrom the factory floor to the top management, training at Nestl is continuous. And
because it is mainly given by Nestl people, it is always relevant to the professional life.
Throughout the world, each country runs its own training programmes (e-Learning,
classroom courses, external courses), and it has five training centers in France, UK,
Spain, Mexico and Brazil.
Literacy training-to upgrade essential literacy skills, especially for workers who
operate new equipment (Mission-directed Work Team Approach). Employees
are also sent abroad to study markets, consumer tastes etc.
29
The company incorporates practices like Job Enrichment and Job Enlargement, to
motivate employees and to break the monotony of their job tasks. The
correspondent herself works in both sales and brand management departments,
which is an example of job enlargement.
Nestle strives to offer fair remuneration. Remuneration level is above the average
in industry.
In case of higher management level, the variable part is linked to individual &
team target achievements.
Long-service Awards- To recognize employees who have been with the company
for more than 30 years.
30
Nestle Idea Award- It was found from the correspondent that the company
institutes Nestle Idea Award every quarter to recognize and award employees who
come up with relevant and innovative ideas which have the potential of being
implemented at Nestle.
4.8.7 BENEFITSThe following benefits are provided to all employees, with no discrimination-
Provident fund
Conveyance Reimbursements
Residential Accommodation
Monthly health check-ups & free consultation for self & family etc.
4.8.8 EMPLOYEE RELATIONSNestle provides a very healthy working environment which is one of the reasons why
Nestles employees state their commitment level to be very high.
-
Employee turnover is less than 5%., which is considered to be very low for a
multinational corporation.
31
Nestle has adjusted to the ever-changing external environment for the last 140
years since its inception 1866 without losing its fundamental beliefs and core
values. It manages Change and drives sustainable profitable growth by following
the policy of making gradual changes instead of making drastic and risky
changes.
4.8.10 SAFETY & HEALTHThe Nestle Operational Safety, Health and Risk-Management Strategy document
illustrates that:
-
Regular safety assessments & audits take place by internal & external bodies.
32
CHAPTER 5
SHRM AT NTPC
5.1 AN OVERVIEW OF NTPCNTPC Limited is the largest thermal power generating company of India. A public sector
company, it was incorporated in the year 1975 to accelerate power development in the
country as a wholly owned company of the Government of India.
At present, Government of India holds 89.5% of the total equity shares of the company
and the balance 10.5% is held by FIIs, Domestic Banks, Public and others.
Within a span of 31 years, NTPC has emerged as a truly national power company, with
power generating facilities in all the major regions of the country.
Engineering
Construction
33
NTPC has set new benchmarks for the power industry both in the area of power plant
construction and operations. It is providing power at the cheapest average tariff in the
country. With its experience and expertise in the power sector, NTPC is extending
consultancy services to various organisations in the power business.
Recognizing its excellent performance and vast potential, Government of the India has
identified NTPC as one of the jewels of Public Sector Navratnas- a potential global
giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realise
its vision of being A world class integrated power major, powering Indias growth, with
increasing global presence.
5.3 WHY NTPC?NTPC was chosen to study strategic HRM as it is a public sector enterprise but has been
able to achieve excellence in its field by incorporating appropriate HR practices in
employees daily life, which reflect the organizations business goals as well. NTPC has
been able to satisfy its employees by adapting its internal environment to the everchanging external environment.
34
5.5 HUMAN RESOURCESNTPC believes in achieving organizational excellence through Human Resources and
follows "People First" approach to leverage the potential of its 23,500 employees to
fulfill its business plans. Human Resources Function has formulated an integrated HR
strategy which rests on four building blocks of HR viz. Competence building,
Commitment building, Culture building and Systems building. All HR initiatives are
undertaken within this broad framework to actualize the HR Vision of "enabling the
employees to be a family of committed world class professionals making NTPC a
learning organization.
Prior To 1997 , NTPCc HR department was known as the personnel department and
basically all their work was restricted to the administration and all.
NTPCS human resource department work on the following model1.) Competence building
2.) Commitment building
3.) Culture building
4.) Systems building
Where the systems building include identifying the manpower and looking for these
talent who are apt for the particular project work.
For the recruitment process the company conduct the all India written test,
It also goes to the various IITs and NITs for the campus recruitment.
To induct talent and groom them into a dedicated cadre of power professionals
"Executive Trainee" Scheme was introduced in the year 1977 for recruitment in the
disciplines of Mechanical, Electrical, Civil, Control & Instrumentation and now
encompasses Computer Science, Chemistry, HR and Finance disciplines also.
35
The new recruits are also attached with senior executives under a systematic and
formal 'Mentoring System' of the company to integrate them into the Culture of
the company.
NTPC has set up 15 project training centres, 2 simulator training centres and an
apex institute namely 'Power Management Institute' (PMI). While the project
training centres (Employee Development Centres) have specialized in imparting
technical skills and knowledge, PMI places emphasis on management
development. Besides opportunities for long term education are also provided
through tie ups with reputed Institutions like IIT, Delhi, (M.Tech in Power
Generation Technology), MDI, Gurgaon (Executive MBA programme), BITS,
Pilani (B.Tech) etc.
5.6.3 JOB EVALUATIONIn NTPC all the roles are uniquely defined and they have role directories. Every
individual in the company is evaluated every year on the following parameters1) KPA
2) FUNCTIONAL COMPETENCIES
3) MANAGERIAL COMPETENCIES
4) CORE VALUES
36
This process is done every year and every individual are judged on the mark of 100
wherein 70% of weight age is given to the KPA. And rest 30% is distributed equally
amongst the various parameters. (this percentage may vary year wise).
NTPC has the provision for the job rotation policy also. Every 10% of the
employee are rotated in various areas of a department to avoid the monotony of
the work. This also works as the one of the most important factor for the retention
of the employee in the company.
All the employees are encouraged to come up with the creative and the innovative
ideas.
PMS started in 2004 for the alignment of companys and employees goals. Prior
to the implementation of this system, in 2002 each and every employee was
sensitized about this system. It is a 3-stage process1. Target study
2. Mid term appraisal
3. Final review
A target is set in the beginning of the project or the year and after that in the middle of it
the project is reviewed for the appraisal and being checked whether if there is any flaw or
lagging in the project so that it can be upgraded accordingly. And then finally the final
37
review is done. The shorter the span of the project the higher the frequency of the review
being done.
-
Open system - Individual evaluation (marks out of 100 given to each employee) is
done at the end of the year.
5.6.7 EMPLOYEE RELATIONSDemonstrating its high concern for people, NTPC has developed strong employee
welfare, health & well-being and social security systems leading to high level of
commitment.
-
- NTPC offers best quality-of-life through beautiful townships with all amenities
such as educational, medical and recreational opportunities for employees and
their family members. The motivation to perform and excel is further enhanced
through a comprehensive NTPC Rewards and Recognition system.
- Employee satisfaction survey- done by Shriram centre every 2-3 years along with
e-darpan online survey.
All the total quality management tools are used In NTPC except six sigma.
In order to tap the latent talent among non-executives and make use of their
potential for creativity and innovation, Quality Circles have been set up in various
units/offices in NTPC.
38
CHAPTER 6
ANALYSIS AND CONCLUSION
The Model employed by Nestle is one of High Performance, High involvement and high
commitment due to reasons illustrated in chapter 4.
Nestle is unique in the sense that it has been able to successfully inculcate its business
objective as well as its core values, consistently in its employees day-to-day activities
starting from recruitment till continuous performance appraisals. Like, open and flexible
culture is ensured by way of providing training programs to employees at all the levels.
This kind of culture is also supported by decentralized structure of Nestle. Transparent
performance appraisal systems and the freedom given to them to question their seniors
benefits not only the employees but even the organization as a whole. Nestles emphasis
on individual achievement is evident from the kind of pay structure HR has designed for
its employees.
Nestl, over its long historical development from a small village operation to the worlds
leading food Company, has demonstrated an enviable capability to adjust to an ever
changing
external environment, without losing its fundamental beliefs and core values, so
important for long-term success. Over the years to come, this capability of using HR as a
strategic partner in implementation of companys activities will continue to be challenged
even more as Nestl is growing in size and complexity up to a dimension which demands
a continuous evolution of its organization and of the way in which it is run. Its motivation
based on willingness to learn and to question what it is doing and why it is doing it,
combined with its long standing respect for Nestl values, will assure its success.
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The Model employed by NTPC is one of High involvement and high commitment due to
reasons illustrated in chapter 5.
NTPCs HR vision of enabling employees to become a family of committed world-class
professionals is depicted by the companys People First approach. Unique features
illustrated by its Human Resource Department like the 10% Job Rotation Policy, giving
same benefits to all employees, TQM practices of Quality and Professional Circles and
development of superior Townships provide a healthy work environment for the
employees. Such strategic HRM activities at SHRM ensure high productivity as well as
low attrition rates at NTPC.
The above SHRM practices help both companies to harmonize it's HR policies with the
business strategy leading to Competitive Advantage, Distinctive Capabilities and
Strategic Fit .As a result enabling them to become India's one of the biggest organizations
in their own fields and to grow further.
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ANNEXURE
Below is the Questionnaire given to five employees of Nestle India working at the
Branch Office located in Connaught Place, New Delhi. It has been organized chapter
wise to facilitate easy reading.
1. What are the achievements of Nestle?
2. What are the various Corporate Social Responsibility initiatives being carried out
by Nestle?
3. What is the hierarchy at Nestle? Kindly illustrate it with an organizational chart.
4. What structure does your organization have?
5. What degree of formalization exists in the organization?
6. What kind of training programmes are conducted for the employees and what are
the role requirements for the employees?
7. Is there centralization in the organization?
8. Is the span of control narrow or broad?
9.
10. What is the degree to which Nestle creates clear objectives and performance
expectations?
11. What is the degree to which units within the organization are encouraged to
operate in a coordinated method?
12. What is the degree to which managers provide clear communication, assistance,
and support to their subordinates?
13. What is the degree to which employees identify themselves with the organization
as a whole rather than their particular workgroup or field of professional
expertise?
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14. What is the degree to which employees are encouraged to air conflicts and
criticisms openly?
15. What is the degree to which communication patterns are restricted to the formal
hierarchy of authority?
16.
How many rules and regulations and how much direct supervision is used to
oversee and control employee behavior?
17. What is the degree to which reward allocations are based on employee
performance. What is the mechanism of Performance Appraisal?
18. What
is
the
degree
to
which
employees
are
encouraged
to
be
How does Nestle deal with change given that it produces 10000 products which
are marketed in 130 countries?
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