Bhai Parmanand Institute of Business Studies Shakarpur, Delhi-110092

Acknowledgement
The project entitled Strategic Human Resource Management at NTPC Ltd. was a challenging assignment for me and required an improved environment, extensive endeavor and all necessary guidance and support. I take this opportunity to express my gratitude to Shri S. Thyagarajan, in-charge- department of M.B.A. and project guide for his able guidance, cooperation and out of the box thinking without which this project would not have been possible at all.

Name: Preeya.S Roll No. - 02011403911

Declaration by the Candidate

I hereby declare that the work, which is being present in this project, entitled Strategic Human Resource Management at NTPC Ltd. is an authentic record of my own work carried out by me under the supervision and guidance of Shri S. Thiyagarajan, Project Guide, B.P.I.B.S., Shakarpur, Delhi-110092. This project was undertaken as a partial fulfillment of the study of Human Resource Management in the second semester of Master of Business Administration (M.B.A.) degree as per the curriculum of Guru Gobind Singh Indraprastha University (G.G.S.I.P.U.). I have not submitted the matter embodied here in this project for the award of any other degree or diploma.

Name:Preeya.S Roll No. 02011403911 M.B.A. II Semester Bhai Parmanand Institute of Business Studies

Bhai Parmanand Institute of Business Studies Shakarpur, Delhi-110092 Date: ____________

Certificate by Project Guide

To whomsoever it may concern
This is to certify that Ms. Preeya.S, Roll no. 02011403911 of B.P.I.B.S., Delhi, has done a Research Project titled Strategic Human Resource Management at NTPC Ltd under the discipline of Human Resource Management as a part of curriculum of second semester of M.B.A. degree under my guidance and supervision. Her performance was satisfactory during her research process for the above said H.R.M. project.

S. Thiyagarajan In charge Department of M.B.A. And Project Guide

CONTENTS
S.No Particulars 1. INTRODUCTION Definition of SHRM HRM V/s SHRM Features of SHRM SHRM process Benefits of SHRM Demerits of SHRM Objective of studying SHRM 2. 3. PROFILE OF NTPC Ltd. SHRM AT NTPC Ltd. HR of NTPC Ltd. HR deptt. Of NTPC Ltd Recruitment and Selection Performance Appraisal System Training and Selection Job Evaluation Total Quality Management 4. 5. ANALYSIS AND INTERPRETATION CONCLUSION Page No. Remarks

5 6 7 10 25 25 26 28 37 37 38 40 41 48 50 52 54 55

DEFINITON OF SHRM
Strategic human resource management can be defined as the linking of human resources with strategic goals and objectives

in order to improve business performance and develop organizational culture that foster innovation, flexibility and competitive advantage. In an organization SHRM means accepting and involving the HR function as a strategic partner in the formulation and implementation of the company's strategies through HR activities such as recruiting, selecting, training and rewarding personnel. 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. SHRM focuses on partnership with internal and external customers in a fast, proactive and in an integrated manner. The job design of Strategic Human Resource Management is much broader than traditional HRM and is flexible and correlated to the team management.

HOW SHRM DIFFERS FROM HRM

In the last two decades there has been an increasing awareness that HR functions were like an island unto itself with softer people-centered values far away from the hard world of real business. In order to justify its own existence HR functions had to be seen as more intimately connected with the strategy and day to day running of the business side of the enterprise. Many writers in the late 1980s, started clamoring for a more strategic approach to the management of people than the standard practices of traditional management of people or industrial relations models.

FOCUS- Human resource programs with long-term objectives

instead of focusing on internal human resource issues, the focus is on addressing and solving problems that effect people management programs in the long run and often globally i.e., Partnership with internal and external customers

PRIMARY GOAL- of strategic human resources is to increase employee productivity by focusing on business obstacles that occur outside of human resources.

PRIMARY ACTION- of a strategic human resource manager are to identify key HR areas where strategies can be implemented in the long run to improve the overall employee motivation and productivity.

KEY INVESTMENT- In strategic HRM, the key investments are captal and products whereas in strategic HRM it is people and knowledge.

Communication between HR and top management of the company is vital as without active participation no cooperation is possible.
6

FEATURES OF SHRM
The key features of SHRM are

There is an explicit linkage between HR policy and practices overall organizational strategic aims and the organizational environment

There is some organizing schema linking individual HR interventions so that they are mutually supportive

Much of the responsibility for the management of human resources is devolved down the line

HR manager should be assigned to take the lead in proposing, creating and debating best practices that can help implement strategies.

HR needs to be accountable for conducting an organizational audit. Audit helps identify which components of the architecture should be changed in order to facilitate strategy execution.

BASIS OF STRATEGIC HRM

SHRM is based on three propositions: The human resources or human capital of an organization play a strategic role in its success and are a major source of competitive advantage. HR strategies should be integrated with business plans. The major focus of strategic HRM should be aligning HR with firm strategies. Individual HR strategies should cohere by being linked to each other to provide mutual support. Strategic HRM can be regarded as a mindset underpinned by certain concepts rather than a set of techniques. It provides the foundation for strategic reviews in which analysis if the organizational context and existing HR practices leads to choices on strategic plans for the developments of overall or specific HR strategies. But strategic HRM is not just about Strategic Planning; it is also concerned with the implementation of strategy and strategic behavior of HR specialists working with their line management colleagues on an everyday basis to ensure that the business goals of an organization are achieved and its values are put into practice.

PERSPECTIVE ON STRATEGIC HRM

1. The universalistic perspective- Some HR practices are better than others and all organizations should adopt these best practices. There is a universal

relationship between individual best practices and firm performance.

2. The contingency perspective- In order to be effective, an organisations HR policies must be consistent with other aspects of the orgainsations. The primary contingency factor is the organisations strategy. This can be described as vertical fit

3. The configurational perspective- this is a holistic approach that emphasizes the importance of the pattern of HR practices and is concerned with how this pattern of independent variables is related to the dependant variables of organizational performance.

STRATEGIC MANAGEMENT PROCESS

Strategic Planning explains Where are we now as a business, where do we want to be, and how should we get there? Strategic Planning is part of the strategic management process. Strategic management entails both strategic planning and implementation, and is the process of identifying
10

and executing the organisations strategic plan, by matching the companys capabilities with the demand of its environment.

STEP 1: DEFINE THE CURRENT BUSINESS

Every company must choose the path on which it will compete in particular, what products it will sell, where it will sell them and how its products or services will differ from its competitors. Wagon-R and BMW are both in the automobile business, but Wagon-R sells to the medium income people whereas BMW focuses over to the high-income level people. Therefore, the most basic strategic decision managers make involve deciding what business their firms should be in. Managers sometimes use a vision statement to summarise how they see the business down the road. The companys vision is a general statement of its intended direction that shows, in broad terms, what we want to become whereas mission lays down that what is the main task of the business now. In the popular movie Chak De India, the mission of the womens hockey team was to win the world cup hockey tournament and prove to the country, the world, and themselves that the Indian womens team can win the world cup.

STEP 2: PERFORM EXTERNAL AND INTERNAL AUDITS

Managers begin their strategic planning by methodically analyzing their external and internal situations.

11

The strategic plan should provide a direction for the firm that makes sense, in terms of the external opportunities and threats the firm faces and the internal strength and weakness it possesses. To facilitate this strategic external/internal audit, many managers use SWOT analysis. S - STRENGTH

W - WEAKNESS O - OPPORTUNITIES T - THREATS

STEP 3: FORMULATE NEW BUSINESS AND MISSION STATEMENT

Based on the situation analysis, What should our new business be, in terms of what products it will sell where it will sell them how its product or services will differ from its competitors? What is our new mission and vision?

STEP 4: TRANSLATE THE MISSION INTO STRATEGIC GOALS

Saying the mission is to make quality job done is one thing; operationalizing that mission for your manger is another. The firms managers need strategic goals i.e., What exactly does that mission mean, for each department, in terms of how they will achieve it?

12

To translate the mission into strategic goals, it needs things like building shareholders value, maintaining superior rates of return, building a strong balance sheet, and balancing the business by customer, product and geography.

STEP 5: FORMULATE STRATEGIES TO ACHIEVE STRATEGIC GOALS

The strategies bridge where the company is now, with where it wants to be tomorrow. The best strategies are concise enough for the manager to express in an easily communicated phrase that resonates with employees Example: Dell - BE DIRECT Wal- Mart - LOW PRICES, EVERYDAY Keeping the strategy clear and concise helps ensure that employees all share that strategy and so make decisions that are consistent with it.

STEP 6: IMPLEMENT THE STRATEGIES

Strategy implementation means translating the strategies into actions and results- by actually hiring (or firing) people, building (or closing) plants, and adding (or eliminating) products and product lines. Strategy implementation involves drawing on and applying all the management function: 1) 2) 3) 4) 5) Planning Organising Staffing Leading Controlling

13

STEP 7: EVALUATE PERFORMANCE

Strategies dont always succeed.

Managing strategy is an ongoing process.

Competitors introduce new products, technological innovations make production process obsolete, and social trends reduce demand for some products or services while boosting demand for others. Strategic control keeps the companys strategy upto date. Management monitors the extent to which the firm is meeting its strategic goals, and ask why deviations exist. Strategic evaluation addresses several important questions: Are all the resources of our firm contributing as planned to achieving our strategic goals? What is the reason for our discrepancies? Do changes in our situation suggest that we should revise our strategic plan?

14

TYPES OF STRATEGIES

CORPORATE STRATEGIES A companys corporate-level strategy identifies the portfolio of business that, in total, comprise the company and the ways in which these businesses relate to each other. The major question that needs to be answered at this stage are What kind of business should the company be engaged in? What are the goals and expectations for each business? How should resources be allocated to reach these goals? There are several generic possibilities: A diversification corporate strategy implies that the firm will expand by adding new product lines. A vertical integration strategy means the firm expands by, perhaps, producing its own raw materials, or selling its product direct. Consolidation- reducing the companys size- and

15

 Geographic expansion- for instance, taking the business abroad- are other corporate strategy possibilities.

COMPETITIVE STRATEGY A competitive strategy identifies how to build and strengthen the businesss long-term competitive position in the marketplace. Competitive advantage allow a company to differentiate its product or service from those of its competitors to increase market share Example: How Pizza Hut will compete with Papa Johns? How Wal-Mart Competes with target? Companies use several generic competitive strategies to achieve competitive advantage: Cost leadership means the enterprise aims to become the low- cost leader in and industry.

16

Differentiation helps a firm to be unique in its industry along dimensions that are widely valued by buyers.

Focusers carve out a market niche (like Ferrari), and compete by providing a product or service customers can get in no other way.

FUNCTIONAL STRATEGY Each business unit will consist of several departments, such as manufacturing, sales, finance and HRD. It identifies the basic courses of action that each department will pursue in order to help the business attain its competitive goals. The firms functional strategies should make sense in terms of its business/competitive strategy. Dells human resource strategies include putting its HR activities on the Web to support Dells low-cost competitive strategy. The When Youre on Your Own feature illustrates a system us to use to facilitate your planning efforts. In formulating Functional level strategies, managers must be aware that the different functions are inter-related. Each functional area, In pursuing its purpose, must mesh its activities with the activities of other departments. A change in one department will invariably affect the way the other departments operate. Hence the strategy of one functional area cannot be viewed in isolation. Rather, the extent to which all

functional strategies are integrated determines the effectiveness of units business strategy.

17

HUMAN RESOURCE MANGEMENTS STRATEGIC ROLE There is crucial role that human resource mangers play in strategic planning. They help the team identify the human issues that are vital to business strategy. They help conceptualize and execute the sorts of organizational changes that companies increasingly need to execute their strategic plan. Creating human resource management policies and practices that support the employers strategic goals presumes that the human resource manager can measure how he or she is doing. Human Resource Managers can play two basic strategic planning roles, are : 1. IN Strategy Execution & 2. IN Strategy Formulation STRATEGY EXECUTION is the heart of the human resource mangers strategic job. Top management formulates the companys corporate and competitive strategies. Then, the human resource manager designs strategies, policies and practices that make sense in terms of the companys corporate and competitive strategies. STRATEGY FORMULATION role affect the reality employers face today. Globalisation means more competition, more competition means more performance and most employers are pursuing improved performance by boosting the competence and commitment levels of their employees. That makes human resource managements knowledge and expertise crucial to the strategy formulation process. HR supports strategy formulation strategy in many ways. For example, formulating the strategic plan requires identifying, analyzing and balancing the companys
18

external opportunities and threats, on one hand, and its internal strength and weaknesses, on the other. The resulting strategic plan capitalize on the firms strength and opportunities and minimize or neutralize its threats and weaknesses. Additonally, HR function can contribute to strategic plans and actions of the firm in the following ways: Explicit Communication of goalsEvery firm shall have a goal and this must be communicated to all the employees. Everyone should work towards reaching the goal. The role of HR manger in formulating goals and communicating it to all is indeed crucial.

Stimulation of critical thinking Managers often depend on their personal views and experiences to solve problems and make decisions. The assumption on which they can make decisions can lead to success if they are appropriate to the environment in which the firm operates. However serious problems can arise if the assumptions are no longer valid. The strategic HRM process ca help affirm critically examine its assumptions and determine whether the decisions that follow from those assumptions need modifications or need to be held back. To strategise means to think critically. By being part of Strategic Management Process, HR manger can contribute to the critical thinking process of employees.

19

 Productivity as an HR Based Strategy The more productive an organization, the better is its competitive advantage. Perhaps none of the resources used for productivity in organizations are as critical as human resources. Many of the HR functions contribute to

productivity. Pay, appraisal systems, training, selection and job design are HR activities that directly contribute to productivity. Quality and service are HR-based strategies Quality can come from people, and realizing this firms are spending vast sum of money on quality training. Deriving excellent customer service is another approach to build competitive advantage. Service begins with product design and includes interaction with customers, so that customers needs are met. It is the employees who matter in rendering services.

20

 Encouragement of Pro-active Rather than Reactive Behaviour Being pro-active means that the firm has a vision of where it wants to go 20 years hence, and has human resources who helped it reach there. Being reactive means confronting problems as they surface. By being reactive the firm tends to lose sight of the long- term direction. It is people who can make a firm pro-active or allow it to simply rest o past laurels. Proficient Strategic ManagementIt depends heavily on competent personnel, better-than-adequate competent capabilities and effective internal organization. Building a capable

organization is obviously always a top priority in strategy execution A well defined strategy can fail if sufficient attention is not paid to the HR dimensions. HR problems that arise when executive strategies may be traced to one of the three causes: (1) Disruption of social and political structures (2) Failure to match individuals aptitude with implementation task; and (3) Inadequate to management support for implementation activities Strategy implementation poses a threat to many managers and employees in an organization. New power and status relationship are anticipated and realized.

Guidelines which ensure that human relations facilitate but not disrupt strategy implementation include open communication, co-opting as many managers and employees in the strategic management process and matching managers with strategies through transfers, promotions, job enlargement and job enrichment.

21

STRATEGIC HUMAN RESOURCE SYSTEM COMPONENTS

HR FUNCTION
HR professionals with strategic management competencies

HR SYSTEM
High Performance Work System

EMPLOYEE BEHAVIOUR Employee competencies Values Motivation Behavior required

HR FUNCTION HR Professionals have the strategic and other skills required to build the strategyoriented HR system. Human Resource Professionals should design their policies and practices so that they produce the employee competencies and behaviors the company needs to achieve its strategic goals.

HR SYSTEM (HPWS) Every company tends to create a human resource system thats uniquely appropriate to its needs, for instance with recruitment and selection practices that make sense for it. There is certainly a trend towards installing HR system that broadly share many characteristics.

22

The need for HPWS became apparent as global competition intensified in the 1990s. Companys needed a way to better utilize their human resources as they strove to improve quality, productivity and responsiveness to compete with the world. EMPLOYEE BEHAVIOURS Employers today expect their human resource managers to build a persuasive case that shows how- in specific and measurable terms- the firms human resource activities can and do contribute to creating value for the firm, for instance in terms of higher profits and market value. Top management understandably wants its human resource professionals to create strategy- supporting human resource system. It also wants the human resource manger to be able to build a persuasive case that shows how- in measurable terms- the human resource system is in fact supporting the employers strategic aims. Based on the ongoing research programs with over 2800 corporations, firms that use high-performance policies and practices do perform at a significantly higher level than those that do not.

23

HOW TO ALIGN HR STRATEGY STRATEGY

AND ACTIONS WITH BUSINESS

24

ADVANTAGES OF SHRM Each employee becomes a profit centre.

Accountability at all levels in the organizational hierarchy increases. Business can meet ever increasing customer demands. Employees become pro-active; align their personal goals with the goals of the organizations AND THE BOTTOM-LINE IS. Good HRM = Good financial results

HRM

Financial Results BARRIERS TO STRATEGIC HRM

Though strategic Human Resource Management looks convincing and essential, several barriers operate in the way of organizations taking to strategic orientation of their HR functions. I. Short-term mentality/focus on current performanceThis is no surprise since stakeholders, particularly shareholder, expect quick rewards and executions need to live up to these expectations. Employees expect quick rewards based on their performance.
25

II.

Inability of HR to think strategically They are unable to go beyond their area of operations. Their knowledge about general business functioning, their awareness about technological

advancements and their ability to convince colleagues in other department are limited. III. Lack of appreciations of what HR can contribute Most senior mangers lack appreciations for the value of HR and its ability to contribute to the organization from a strategic perspective. Many understand only conventional HR and fail to realize the contributions HR can make as a strategic partner IV. Failure to understand general managers role as an HR manager Some functional managers see themselves as HR managers as well and are concerned more with technical aspects of their areas of responsibility than the human aspects. Every line manger is an HR manager too. But in reality, Finance controller, for example, fails to see beyond cash inflows and outflows, so also the operations executive who is obsessed with inputs, outputs and the conversion process. V. Difficulty in quantifying many HR outcomes It is believed that many of the outcomes of HR functions are abstract-felt but not seen. In an environment where firms operate under pressure, what attracts everyones attention is an activity that contributes to the bottomline. Anything else is shelved. VI. Incentives for change that might arise Strategic HR may be resisted because of the incentives for change that might arise. Taking a strategic approach to HR may mean making drastic change in

26

the firms architecture. Not many executives are prepared to accept such drastic changes. VII. Perception of human assets as higher risk investments. It is a fact that human assets are owned by organizations and therefore, are perceived as higher risk investment than capital assets. Particularly in highly competitive environment where key executives are poached from competitors, there is a tendency to invest less in employees than in technology and information, which are more proprietary.

OBJECTIVE OF STUDYING 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.

27

NTPC Limited

NTPC Limited (formerly National Thermal Power Corporation) is the largest Indian state-owned energy service provider based in New Delhi, India. It is listed in Forbes Global 2000 for 2011 ranked it 348th in the world. It is an Indian Public Sector company listed on the in which at present the Government of India holds 84.5% (after divestment the stake by Indian government on 19th October, 2009) of its equity. With a current generating capacity of 36,014 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 total installed capacity of the company is 36,014 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 5 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 27,535 MW, 3,955 MW through gas, 1,328 MW through Hydro generation, about 1400 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.
28

NTPC has been operating its plants at high efficiency levels. Although the company has 19% of the total national capacity it contributes 29% of total power generation due to its focus on high efficiency. NTPCs 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 200809. Every fourth home in India is lit by NTPC. As at 31 Mar 2011 NTPC's share of the country's total installed capacity is 17.75% and it generated 27.4% of the power generation of the country in 201011. NTPC is lighting every third bulb in India. 170.88BU of electricity was produced by its stations in the financial year 20052006. 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).It is listed in Forbes Global 2000 for 2011 ranked it 348th in the world. Pursuant to a special resolution passed by the Shareholders at the Companys Annual General Meeting on September 23, 2005 and the approval of the Central Government under section 21 of the Companies Act, 1956, the name of the Company "National Thermal Power Corporation Limited" has been changed to "NTPC Limited" with effect from October 28, 2005. The primary reason for this is the company's foray into hydro and nuclear based power generation along with backward integration by coal mining.

Power Burden

India, as a developing country is characterised by increase in demand for electricity and as of moment the power plants are able to meet only about 6075% of this demand on an yearly average. The only way to meet the requirement completely is to
29

achieve a rate of power capacity addition (implementing power projects) higher than the rate of demand addition. NTPC strives to achieve this and undoubtedly leads in sharing this burden on the country.

NTPC Headquarters

NTPC Limited is divided in 8 HQ.

Sr. No. Headquarter City 1 2 3 4 5 6 7 8 NCRHQ ER-I, HQ ER-II, HQ NRHQ SR HQ WR-I HQ Hydro HQ WR-II HQ Delhi Patna Bhubneshwar Lucknow Hyderabad Mumbai Delhi Raipur

NTPC Plants

Thermal-Coal based Sr. No. City 1 2 3 4 Singrauli Korba Ramagundam Farakka State Uttar Pradesh Chhattisgarh Inst.Capacity 2,000 2,600

Andhra Pradesh 2,600 West Bengal 2,100

30

Sr. No. City 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Total Vindhyachal Rihand Kahalgaon Dadri (NTPC Dadri) Talcher Unchahar Talcher Thermal Simhadri Tanda Badarpur (BTPS) Sipat Sipat (erection phase)

State

Inst.Capacity

Madhya Pradesh 3,260 Uttar Pradesh Bihar Uttar Pradesh Orissa Uttar Pradesh Orissa 2,500 2,340 1,820 3,000 1,050 460

Andhra Pradesh 1,500 Uttar Pradesh Delhi Chhattisgarh Chhattisgarh 440 705 2320 1980 750 1000 (2x500 MW) 2*500 MW 3300 (5x660 MW) 31,495

Bongaigaon (erection phase) Assam Mouda (erection phase) Rihand(erection phase) Barh (erection phase) Maharashtra Uttar Pradesh Bihar

Coal Based (Owned by JVs) Sr. No. 1 Name of the JV City State West NSPCL Durgapur Bengal 120 Inst.Capacity

31

Sr. No. 2 3

Name of the JV NSPCL NSPCL Nabinagar Power Generating Co. Pvt.

City Rourkela Bhilai

State Orissa

Inst.Capacity 120

Chhattisgarh 574

4 Ltd. (NPGC) Muzaffarpur 5 Station(M.T.P.S) Bhartiya 6 Limited Rail Bijlee Company Thermal Power

Aurangabad Bihar

1980

Kanti

Bihar

110

Nabinagar Bihar

1000

3904

GAS based

Sr. No. City 1 2 3 4 5 6 7 Total Anta Auraiya Kawas Dadri Jhanor

State Rajasthan

Inst.Capacity 413

Uttar Pradesh 652 Gujarat 645

Uttar Pradesh 817 Gujarat 648 350 430 3995

Kayamkulam Kerala Faridabad Haryana

32

NTPC Hydel

The company has also stepped up its hydroelectric power (hydel) projects implementation. Currently the company is mainly interested in the North-east India wherein the Ministry of Power in India has projected a hydel power feasibility of 3000 MW.

There are few run of the river hydro projects are under construction on tributory of the Ganges. In which three are being made by NTPC Limited. These are:

1. Loharinag Pala Hydro Power Project by NTPC Ltd: In Loharinag Pala Hydro Power Project with a capacity of 600 MW (150 MW x 4 Units). The main package has been awarded. The present executives' strength is 100+. The project is located on river Bhagirathi (a tributory of the Ganges) in Uttarkashi district of Uttarakhand state. This is the first project downstream from the origin of the Ganges at Gangotri(Project has been discontinued by GoI). 2. Tapovan Vishnugad 520MW Hydro Power Project by NTPC Ltd: In Joshimath town.#Lata Tapovan 130MW Hydro Power Project by NTPC Ltd: is further upstream to Joshimath (under environmental revision) 3. Koldam Hydro Power Project 800 MW in Himachal Pradesh (130 km from Chandigarh) 4. Amochu in Bhutan 5. Rupasiyabagar Khasiabara HPP, 261 MW in Pithoragarh,uttarakhand State, near China Border.

33

Scheduling and Generation Despatch

The Scheduling and Despatch of all the generating stations owned by National Thermal Power Corporation is done by the respective Regional Load Despatch Centres which are the apex body to ensure the integrated operation of the power system grid in the respective region. All these Load Despatch Centres comes under Power System Operation Corporation Limited (POSOCO).

34

SHRM AT NTPC
HR vision: To enable our people to be a family of committed world class professional Vision: A world class integrated power major, powering Indias Growth, With increasing global presence Core Values: Business Ethics Customer Focus Organisational & Professional Pride Mutual Respect & Trust Initiative & Speed Total Quality for Excellence

Backgrounds: NTPC 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 i89.5% 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.

35

NTPCs CORE BUSINESSES

Engineering Construction Operation of power generating plants Consultancy in the area of power plant constructions and power generation to

companies in India and abroad. 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 realize its vision of being A world class integrated power major, powering Indias growth, with increasing global presence.

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 ever changing external environment.

36

HUMAN RESOURCES OF NTPC

It 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 model-

Where the systems building include identifying the manpower and looking for these talent who are apt for the particular project work.
37

HR DEPTT. OF NTPC

1. Employee Development The department takes the HR initiative of promotion, appraisals and other development aspects. ED maintains the Management Information System for the orgainsation. 2. Employee Benefits Group (EB) The Employee Benefits Group take care of the welfare and benefits like recruitment, separation loans and advances, which the employee are eligible. The Voluntary Retirement Scheme is also dealt by EBG. 3. Employee Relation Group The ERG is in charge of the Industrial Relations Contract Labour, security i.e., CISF and GPAIS of NTPC, Shaktinagar. 4. Employee Service Group The ESG deals with entitlements handling and other law related matters.
38

5. Employee Development Centre 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. 6. RAJBHASHA Group As it is compulsory for all Govt. organizations to keep a Hindi source as 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.

RECRUITMENT & 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 IITs and NITs 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.

39

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.

40

Performance Appraisal System (PAS)

To build a culture of performance by aligning individual and organizational Objectives and encouraging open communication feedback. To accomplish the overall organizational vision and mission by linking individual performance to company objectives. To cascade companys 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 organizations 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.

41

APPLICABILITY

NTPC (E1-E9).

are also covered by this scheme. iddle of the PMS cycle, but have served for a minimum of three months.

joint ventures with NTPC management.

42

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. 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: o Goals/ Targets/ Objectives are SMART (Specific, Measurable, Agreed, Realistic and Time bound)

43

o Results are substantially within the executives control. o Measures relate to results. o Data are available for measurement. o 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 managerial actualization. Providing early warnings of non-performance, i.e., avoiding year end surprises 3. Annual Assessment 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.
44

Discussion and feedback on functional competencies, competencies, potential competencies and core values

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. Feedback Providing feedback on performance presents the following benefits: Creates transparency making PMS more acceptable to individuals. Reinforces good performance on time. 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.

45

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. 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. Facilitating individuals to raise their level of contribution and achievements.

Conselling in the PMS context essentially is a process by which executives can receive assistance in sorting out issues related to current and future

responsibilities and aspirations.

46

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.

47

TRAINING & 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 individuaLs and organisations future growth. Training Infrastructure NTPCs 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.
48

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 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)-It 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
49

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

50

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 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 OBrien 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 persons career. Each of these is a custom made, medium term training programme, specifically designed to give developmental input at a particular stage in the persons career. Education Up-gradation Schemes

51

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.

JOB EVALUATION IN 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 KPA includes the key performance areas of every employee. 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). JOB ANALYSIS 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.

52

All the employees are encouraged to come up with the creative and the innovative ideas. The overall-working environment of the NTPC is employee friendly which works as the driver to the motivation of the employees. REWARDS, INCENTIVES & BENEFITSIncentives scheme It is group performance based (no individual incentives) which illustrates that the company encourages effective and efficient teamwork. Retention strategies they include giving Mediclaim to all employees, various monetary incentives and a favorable work environment.

TOTAL QUALITY MANAGEMENT (TQM)

All the total quality management tools are used In NTPC except six sigma. "Professional Circles" have been formed department-wise where Executives of the department meet every fortnight to share their knowledge and experiences and discuss topical issues. 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. Besides a management journal called "Horizon" is published quarterly to enable employees to share their ideas and experiences across the organization.

53

ANALYSIS AND INTERPRETATIONS

The Model employed by NTPC is one of High involvement and high commitment. 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. Therefore strategic HRM activities at SHRM ensure high productivity as well as low attrition rates at NTPC.

54

CONCLUSION
NTPC has proved its success with the concept of Strategic Human resource management by treating human resource as an asset for an organizations long term growth. NTPCs HR concept- GOOD HRM=HIGH FINANCIAL RESULTS led to the organizations success . The SHRM practices helps the company to harmonize it's HR policies with the business strategy leading to Competitive Advantage, Distinctive Capabilities and Strategic Fit . It enables them to become India's one of the biggest organizations in their own fields and to grow further.

55

BIBLIOGRAPHY
1. The Economic Times 2. The Financial Express 3. Wikipedia 4. NTPC site: www.ntpc.co.in 5. Senior Executive HR, NTPC. 6. Book review: Human Resource Management, Dessler Human Resource Management, K.Aswathappa Strategic Human Resource Management, Michael Armstrong

56