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NTPC: People Power

HRM group assignment

FORE School of Management

Group 6

Submitted By:

Vineet Verma 191183

Sonam Arora 191176

Shikha Ghai 191173

Sameer Narula 191169

Saif Khan 191167

Naveen Yadav 191150

2

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

3

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.

4

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

5

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.

6

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.

8

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

9

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.

10

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.

12

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

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.

Mid – year

Review

Annual

Assessment

Performance

planning

Feedback

Normalization

Process

Step 1

Step 5

Step 4

Step 3

Step 2

PAS Process

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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.

16

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 competency assessment

10 10 10 10 10 05

b. Managerial competency assessment

05 05 10 10 15 15

3 Potential assessment

Nil 05 10 10 10 10

4 Value assessment 05 05 05 10 15 20

Total 100 100 100 100 100 100

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PERFORMANCE LINKED PAY

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

EMPLOYEE

COMPENSATION

FIXED

COMPONENT

VARIABLE

COMPONENT

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.

21

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.

ENGINEER

E1 3

SR. ASSTT.

ENGINEER

E2 1

ENGINEER E2A 3

SR.

ENGINEER

E3 3

DY.

MANAGER

E4 3

MANAGER E5 4

SR.

MANAGER

E6 4

DY.

GENERAL

MANAGER

E7 4

Asst.

GENERAL

MANAGER

E7A 2

GENERAL

MANAGER

E8 3

EXECUTIVE

DIRECTOR

E9 -

22

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