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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 inspirationsetting 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. 7
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 orientationtraining 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 planning
Mid – year Review
PAS Process Step 3
Feedback
Annual Assessment
Step 5
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. 12
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. 14
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 selfdevelopment. 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
1
KPA
2 a.
Functional competency assessment Managerial competency assessment Potential assessment Value assessment
10
10
10
10
10
05
05
05
10
10
15
15
Nil
05
10
10
10
10
05
05
05
10
15
20
Total
100
100
100
100
100
100
b. 3 4
WEIGHTAGES FOR DIFFERENT GRADES E1-E3 E4 E5 E6-E7 E7A-E8 E9 80 75 65 60 50 50
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PERFORMANCE LINKED PAY EMPLOYEE COMPENSATION
VARIABLE COMPONENT
FIXED COMPONENT
(Proportion increases with seniority)
(Proportion decreases with seniority)
INDIVIDUAL PERFORMANCE
COMPANY PERFORMANCE
UNIT 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 18
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 19
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
ASSTT. ENGINEER
E1
ELIGIBI LITY FOR PROMO TION (IN YEARS) 3
SR. ASSTT. ENGINEER
E2
1
ENGINEER SR. ENGINEER
E2A E3
3 3
DY. MANAGER
E4
3
MANAGER
E5
4
SR. MANAGER
E6
4
DY. GENERAL MANAGER Asst. GENERAL MANAGER
E7
4
E7A
2
GENERAL MANAGER
E8
3
EXECUTIVE DIRECTOR
E9
-
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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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