Company Profile

SJVN
POWERING PROGRESS, INNOVATION & EXCELLENCE
The SJVN Ltd ( formerly Satluj Jal Vidyut Nigam Limited –SJVNL) SJVN Limited, a Mini
Ratna, Category-I and Schedule –‘A’ CPSE under administrative control of Ministry of
Power, Govt. of India, was incorporated on May 24, 1988 as a joint venture of the
Government of India (GOI) and the Government of Himachal Pradesh (GOHP). SJVN is now a
listed Company having shareholders pattern of 64.46% with Govt. of India, 25.51% with
Govt. of Himachal Pradesh and rest of 10.03% with Public. The present paid up capital and
authorized capital of SJVN is Rs. 4,136.63 Crore and Rs. 7,000 Crore respectively. The
present Net Worth as on 31.03.2016 is Rs.11063.86 Crore.

Beginning with a single Project and single State operation (i.e. India’s largest 1500 MW
Nathpa Jhakri Hydro Power Station in Himachal Pradesh) the Company has commissioned
projects namely 412 MW Rampur Hydro Power Station in Himachal Pradesh, 47.6 MW
Khirwire Wind Power Project in Maharashtra and 5.25 MW Charnakha Solar Power Plant in
Gujarat. SJVN is presently implementing Power Projects in Himachal Pradesh, Uttarakhand,
Bihar and Gujarat in India besides neighbouring countries viz. Nepal and Bhutan.

Portfolio
The present installed capacity of SJVN is 1,964 MW (comprising of 1912 MW Hydro +
47.6 MW Wind Power + 5 MW Solar Power).

SJVN has expanded its horizons and envisions developing itself into a fully diversified
transnational Power Sector Company in all types of conventional & non-conventional forms
of energy along with Power Transmission. The Company, at present, is implementing (under
various stages of development) 10 Hydro Power Projects totalling 3,200 MW (7 Projects-
1,130 MW in India, 3 Projects of 2,070 MW in neighbouring countries of Nepal & Bhutan),
one 1320 MW Thermal Power Project at Buxar in State of Bihar and 50 MW Sadla Wind
Power Project in Gujarat. SJVN commissioned 86 ckm 400 kV double circuits Indo-Nepal
Cross Border Power Transmission corridor between Dhalkebar (Nepal) and Muzzafarpur
(India) on 17.02.2016 in JV with Power Grid, IL&FS, and Nepal Electricity Authority. The
same was dedicated to nation by Hon’ble Prime Minister of India on 20.02.2016. In addition
to above, Company is engaged in implementation of 400 kV double circuit associated
transmission line of 310 km length for its 900 MW Arun-3 Project in Nepal.
Cabinet Committee on Economic Affairs (CCEA) accorded investment approval on
21.03.2017 to 900 MW Arun-3 Project in Nepal. Naitwar Mori HEP (60 MW ) in
Uttarakhand is in the process of investment decision with all clearances in hand while the
investment decision for pre-construction activities and other statutory clearances in respect
of rest of survey and investigations projects is also in progress
 Subsidiaries
 SJVN Arun -3 Power Development Company Pvt. Ltd. (SAPDC)–Fully owned
subsidiary incorporated in Nepal for implementation of 900 MW Arun-3 Project in Nepal.

 SJVN Thermal Private Limited –Fully owned subsidiary incorporated for execution of
1320 MW Buxar Thermal Power Project in Bihar

Joint Ventures

 Cross Border Power Transmission Company Limited (CPTC)-To construct and maintain
86 ckm long, Twin Moose, 400 kV D/C transmission line from Muzaffarpur Nepal
connection point and a bay extension at Muzaffarpur Sub Station.

 Kholongchhu Hydro Energy Limited-for execution of 600 MW Kholongchu Hydro

Electric Project in Bhutan. Infrastructure works viz roads and bridges for the project are in
progress and bids invited for main civil works.

 Bengal Birbhum Coal Fields Ltd - for mining of Coal from the Coal Block allocated to the
six power utilities including Buxar TPP of SJVN.

Financial Performance
The total Income of the Company for the FY 2015-16 was Rs. 2,908.21 Crore and earned
profit after Tax @ Rs. 1,408.48 Crore. SJVN has declared dividend (excluding Dividend
Tax), of Rs. 455.03 Crore. Interim dividend of Rs. 930.74 Crores paid for the FY 2016-17.

SJVN – A Mini Ratna Company

SJVN Limited was conferred with "Mini Ratna: Category-I" status by the Government of
India in the year 2008.

SJVN – Schedule 'A' Company

Meeting the criteria laid down by the Department of Public Enterprises, SJVN on qualifying
both qualitative and quantitative parameters was upgraded as Schedule 'A' PSU in 2008.

Company Vision, Mission and objective of company-

Vision
To be best-in-class Indian Power Company globally admired for developing affordable clean
power and sustainable value to all stake holders.

Mission
To drive socio-economic growth and optimize shareholders and stakeholders interest
by:
 Developing and operating projects in cost effective and socio-environment friendly manner.
 Nurturing human resources talent with care.
 Adopting innovative practices for technological excellence.
 Focusing on continuous growth and diversification.

Objectives
In the pursuit of above mission, the company had set for itself the following corporate
objectives:
Operating and maintaining power stations with maximum performance efficiency.
Establishing and following sound business, financial and regulatory policies.
Taking up of other hydro power projects.
Completion of the new projects allocated to SJVN in an efficient and cost effective manner.
Use of the best project management practices for the project implementation by applying
latest universally accepted Project Management Techniques, and by enabling its Engineers,
to become certified Project Managers through further trainings.
Dissemination of available in-house technical and managerial expertise to other utilities /
projects.
Creating work culture and work environment conducive to the growth and development of
both the organization and the individuals through introduction of participative management
philosophy.
Fulfilling social commitments to the society. Achieving constructive cooperation and
building personal relations with stakeholders, peers, and other related organization.
Striving clean and green project environment with minimal ecological and social
disturbances.
To strive for acquiring Nav Ratna Status.

SJVN Stakeholder (1.1)

 Govt. of India

Employees Govt. of H.P.

Beneficiary Project
affected
states people

Beneficiary State ( 1.2)

S.No. Beneficiary State % of power to be given

1. Uttarakhand 10.58
2. Punjab 5.62
3. Utter Pradesh 13.76
4. Rajasthan 7.72
5. Haryana 4.15
6. Jammu & Kashmir 7.12
7. Un-allocated 9.14

SJVN Projects
SJVN’s Hydro Projects

Nathpa Jhakri Hydro Power station

Nathpa Jhakri Hydroelectric Station of 1500 MW capacity is the country’s largest
hydropower plant. The run of the river project is located on River Sutlej, a major tributary on
the Indus basin, in Shimla district of Himachal Pradesh in North India.
The Nathpa Jhakri plant is designed to generate 6950.88 (6612) million units of electricity
each year but quality management at the plant has enabled generation to exceed yearly
targets.
A Memorandum of Understanding for execution of the Nathpa-Jhakri project was signed
between Government of India and Government of Himachal Pradesh in July, 1991.
The Nathpa Jhakri Hydroelectric project has been financed on a 50:50 debt equity ratio basis.
The project had the backing of World Bank. The project was completed at a cost of Rs 8187
Crore.
The Nathpa Jhakri project was commissioned in May, 2004 and officially dedicated to the
nation by Prime Minister Manmohan Singh on May 28, 2005.
Power allocation from Natpha Jhakri hydroelectric plant to the North Indian states of
Haryana, Himachal Pradesh, Punjab, Jammu & Kashmir, Rajasthan, Uttar Pradesh,
Uttarakhand and the cities of Delhi and Chandigarh has enabled the grid to overcome power
shortages in the region.
Rampur HPS
Rampur Hydro Power Station of 412 MW installed capacity is located on River Satluj, a
major tributary of Indus basin, in Shimla and Kullu district of Himachal Pradesh in North
India.
The plant is designed in tandem with run of the river plant Nathpa Jhakri (1500 MW) .
A Memorandum of Understanding for execution of Rampur Project was signed between
Government of India and Government of Himachal Pradesh on October, 2004.
Major works project began in February 2007, after completition of HRT, Surge Shaft, Valve
House. Power House, TRT and other associated works, water filling of water Conductor
System completed in March, 2014 successfully without any leakage.
The Project has been financed on a 70:30 debt equity ratio basis.
The Project had the backing of World Bank. Estimated cost of the project at March, 2006
price level was Rs. 2047.06 crores. PIB recommended its approval of Revised Cost Estimate
(RCE-I) for Rs. 4,233.21 Crore.
Rampur HPS is designed to generate 1878 million units of electricity each year.
Power generated from Rampur HPS is distributed to Northern Regional states i.e. Himachal
Pradesh, Haryana, J&K, Punjab, Rajasthan, UP, Uttrakhand as per their percentage
allocation by ministry of Power.

Luhri Stage-II HEP

Luhri HEP Stage-II ( 163 MW) is a run of river proposed on Satluj river near Nanj
village, in Shimla, Kullu & Mandi districts of Himachal Pradesh. Investment approval
for pre-construction activities of Rs 72.478 Crore received from GOI on 16.03.18.
Pre-DPR chapters are under preparation and five out of six aspects submitted to CEA
for holding 1st consultation meeting. TOR for EIA & EMP studies has been approved
by MOEF on 27.03.18.

Jakhol Sankri HEP

The Jakhol Sankri HEP with proposed capacity of 44 MW is located on River Supin, a
tributary of River Tons and part of river Yamuna on the Ganga basin, in Uttarkashi district of
Uttarakhand.The project is designed as run of river project and has the potential to generate
166.19 MU of energy in a year. A Memorandum of Understanding for execution of project
was signed with the Government of Uttarakhand in November 21, 2005. Construction period
of the project is 48 months.
GoI accorded investment approval for pre-construction activities of project at an estimated
cost of Rs 84.50 Crore on 15.09.17.
Considering revised e-flows, DPR of 44 MW was submitted to GoUK on 19.08.16 is under
approval of Ministry of Energy, GoUK. EIA/EMP report prepared and submitted to
Uttarakhand Environment Protection and Pollution Control Board (UEPPCB) for public
hearing on 23.04.18. NOC from NBWL received on 19/09/2016.
Online application for diversion of Forest Land submitted on 05.12.2016. Joint inspection by
Revenue and Wildlife Deptt completed. Compensatory Afforestation plan for 50 ha
submitted to Forest Deptt. Case is under process with Forest Deptt.

Sunni Dam HEP

Sunni Dam HEP is a run of river type scheme and a part of multi-stage development of Luhri
HEP. The project is situated on Satluj River near Khaira village in Shimla and Mandi
districts of Himachal Pradesh.The Project is proposed to generate 1369 MU of electric
energy in a 90% dependable year.
Preparation of DPR in progress. 1st consultation meeting for preparation of DPR held in
CEA on 17.08.17. Pre-DPR chapters under preparation and being submitted to CEA
progressively for clearances.
Drilling and drifting works awarded are under progress. EIA/EMP studies under progress.
Online application for diversion of forest land submitted on 27.12.17. NoCs from Wildlife &
HPPWD have been received.

Devsari HEP
Devsari HEP with installed capacity of 252 MW is located on River Pinder, on Ganga basin,
in Chamoli district of Uttarakhand. The project is designed as Run of the River project and
has the potential to generate 910.16 MU of electricity in a year.
A Memorandum of Understanding for execution of project was signed with the Government
of Uttarakhand on November 21, 2005. The scheme was cleared by Govt. of Uttarakhand in
October, 2007 and by Standing Technical Committee in April, 2012.
DPR of the project was concurred by CEA in August, 2012. CEA revalidated concurrence of
DPR till 06.08.17. CEA has been requested for further extension of TEC beyond 06.08.17 by
one year. As desired by CEA on 12.09.17, NOC issued by State Govt. on 10.12.17.

Stage-I Forest Clearance (FC-I) was accorded by MOEF on 26.02.18. EAC in its meeting
held on 27.03.18 recommended Environment Clearance (EC).
For the acqusition of pvt. land, payment of land compensation released to State Government
and issuance of notification under section 11 is under process. CEA has vetted the project
cost amount to Rs 2138.67 Cr at Feb,2017 PL on 09.03.2018.

Dhaulasidh HEP
The Dhaulasidh Project with a generation potential of 66 MW is located on River Beas, part
of the Indus basin, in Hamirpur & Kangra districts of Himachal Pradesh. The project is
designed as a Run of the River project with a small live storage that would be utilized for
peaking power during the lean season.
The project holds potential of generating 247.25 million units of electric energy in a 90%
dependable year.
A Memorandum of Understanding for execution of project was signed with the Government
of Himachal Pradesh on 27th October, 2008. Govt. of Himachal Pradesh accorded TEC of
the project on 25.06.2011. Stage-I forest clearance accorded by MoEF, GoI on 06.03.2012
and further extended up to 01.11.2018. Environment clearance accorded on 21.02.2013.
Acquisition of private land as per LAAR Act 2013 is in process. Application for carrying out
SIA study submitted to GoHP on 11.05.17. Fresh revenue papers for SIA study submitted to
GoHP on 04.04.2018.
Construction period of the project is 54 months including infrastructure works.

Luhri Stage- I HEP

Luhri Hydro Electric Project is located on river Satluj in Shimla/Kullu/Mandi districts of
Himachal Pradesh. Initially LHEP was contemplated as single stage project and
Implementation Agreement with Govt. of Himachal Pradesh was signed on 27.10.08. Govt.
of H.P. in March, 2015 advised SJVN to review/explore the possibility of executing the
LHEP as multi-stage project instead of single stage on account of social and environmental/
ecological concerns. Accordingly three stages / projects (i.e. Luhri HEP Stage- I - 210 MW,
Luhri HEP Stage-II – 163MW and Sunni Dam HEP - 373 MW) envisaged to harness the
Hydel potential of Satluj river between Rampur and Kol Dam Hydro Electric Projects. Govt.
of H.P. reallocated all three projects on "Stand Alone Basis" to SJVN on 29.08.17.
Luhri HEP Stage-I is a Run of River (RoR) scheme with installed capacity of 210 MW is
located on river Satluj, near Nirath village, in Shimla and Kullu Districts of Himachal
Pradesh.The project holds potential of generating 758.20 MU of electric energy in a 90%
dependable year. Investment approval for pre-construction activities accorded by GoI for Rs
86.53 Crore on 08.02.18.
DPR submitted to CEA on 30.12.16 for TEC. CEA concurred the DPR for an estimated
project cost of Rs.1912.59 cr at July, 2017 level in meeting held on 16.01.18.
Final EIA/EMP report submitted to MOEF on 20.02.18. Case considered by EAC on
27.03.18.
Online application for diversion of forest land submitted to Nodal Officer on 19.12.17. Case
for the diversion of forest land after processing has been submitted to Nodal Officer cum
PCCF,Shimla by CCF, Rampur. Approved CAT plan forwarded to MOEF&CC by GOHP
on 19.02.18.
For acquisition of private land, consultancy work for carrying out SIA study has been
awarded by GoHP on 29.01.18.

Kholongchu HEP
Kholongchhu HEP was allocated to SJVN for the preparation of DPR on 22.07.2008. The DPR
for 600MW was approved by CEA and RGoB on 05.11.12 and 23.05.13 respectively.
Kholongchhu HEP with the proposed capacity of 600MW on the river Kholongchu in Bhutan will
generate 2568.88 MU annually.
CCEA approval from GoI received on 28.02.2014. Inter Governmental Agreement between
Royal Government of Bhutan (RGoB) and Government of India (GoI) for implementation of
Kholongchhu HEP was signed on 22.04.14. Hon’ble Prime Minister of India laid the
foundation stone for the Project on 16.06.14. The shareholders agreement between DGPC
and SJVN was signed on 30.09.2014. National Environment Commission (NEC) of RGoB
accorded Environment Clearance on 21.07.2014.

The project is being implemented jointly by SJVN and Druk Green Power Corporation (DGPC)
Bhutan. Joint Venture Company registered as "Kholongchhu Hydro Energy Ltd"(JV of SJVN &
DGPC) in Bhutan on 12.06.2015. Ground Breaking Ceremony of project was held on 18.09.2015
which was graced by His Royal Highness, the Gyaltshab. Bhoomi Poojan for township at Duksum
for residential and non residential buildings held on 13.12.2015.

Concession Agreement is under process of approval with RGoB. Infrastructure works of project
are in progress. Permanent works (30.5 km) of approach roads have been completed. Main Civil
works are under tendering process.

Naitwar Mori HEP

The Naitwar Mori Hydro Electric Project with a generation potential of 60 MW is located on
River Tons, a major tributary of River Yamuna on the Ganga basin, in Uttarkashi district of
Uttarakhand state in North India. The project is designed as a standalone run of the river
project.
The Naitwar Mori project has the potential to generate 265.5 million units of electricity each
year. A Memorandum of Understanding for execution of Naitwar Mohri project was signed
with the Government of Uttarakhand in November 21, 2005.
CAT plan of the project has been approved by GoU. Stage-1 Forest Clearance accorded by
Regional Office, MoEF, Dehradun on 08.02.2016. Environment Clearance accorded by
MoEF, GoI on 16.06.2016. Possession of Pvt. Land has been taken and mutation of land also
done. Stage 2 Forest Clearance accorded on 05/08/2016. Lease agreement signed with Forest
Deptt., GoU on 01.12.2017.
Investment approval for an estimated cost of Rs 648.33 Cr accorded on 16.10.2017.
Hon’ble Union Minister of Power (Independent Charge) Sh. R K Singh and Hon’ble Chief
Minister of Uttrakhand Sh. Trivender Singh Rawat laid the foundation stone of Project at
Mori on 30.03.2018.
Main Civil Package: Work awarded on 05.12.2017.Hydro Mechanical Package: Work
awarded on 18.04.2018. Electro Mechanical Package: Work is under process of award.
Construction period for whole project is 48 months.

Arun III HEP

Memorandum of Understanding (MOU) with a construction period of 5 years from date of
financial closure of the project & operation period of –25 years. was signed with the Govt. of
Nepal for the execution of 900 MW Arun – III HE Project on 02.03.08. The project was
allotted to SJVN on BOOT basis based on competitive bidding. GoN will get 21.9 % of free
power. Project is located in the Sankhuwasabha Distt. of Nepal which is 657 Km from
Kathmandu via Birat Nagar. SJVN Arun-3 Power Development Company Pvt. Ltd (SAPDC)
was incorporated & registered on 25.04.13 as a private limited company under the Nepalese
Companies Act 2063 duly floated by single shareholder company SJVN Ltd with an aim to
plan, promote, organize & execute the Arun-3 Hydro-electric Project
The Survey license for generation was issued by Govt. of Nepal during July 2008. Survey &
Investigation works completed in January, 2011. TOR clearance for IEE of roads issued by
GoN on 20.04.10. Project Development Agreement (PDA) signed with IBN, GoN on
25.11.14.DPR of the Project was vetted by CEA on 09.06.14. PIB recommended for
investment for generation component of Arun-3 HEP for estimated cost of Rs. 5723.72
Crore. CCEA accorded its approval on 22.02.17.
The EIA report of the Project has been approved by Ministry of Science, Technology &
Environment, GoN on 12.08.15. MoU for roads & bridges for the project was signed
between Department of Roads, Govt of Nepal & SAPDC on 05.01.16 and agreement signed
on 29.05.16. Infrastructure works i.e. construction of project roads, bridges are in progress.
Resettlement Action Plan (RAP) for Generation Project approved on 20.02.17. Approval for
Forest Land accorded by GoN on 15.08.17. Supplementary EIA (SEIA) for balance 26.25 ha
land approved on 22.12.17.
Resettlement Action Plan (RAP) for Generation Project approved on 20.02.17. Approval for
Forest Land accorded by GoN on 15.08.17. Supplementary EIA (SEIA) for balance 26.25 ha
land approved on 22.12.17.
LoA for Package-2 for main Works issued to M/s Patel Engineering Ltd. on 19.03.2018.
LoA for HM Package issued to M/s Om Metals on 11.04.2018.
LoA for EM Package issued to M/s BHEL, Delhi on 30.04.2018.
Survey License for Transmission line applied on 20.05.14
300 Km long 400KV D/C Diding (in Nepal)- Dhalkebar (in Nepal)- Muzzafarpur (in India)
Transmission Line:- Updated DPR at Jun, 17 Price level for hard cost of Rs. 1236.13 crore
approved by CEA on 07.02.2018.
PIB memo for investment approval submitted to MoP on 26.02.2018. Process for acquisition
of land is in progress.

Thermal Project -

Buxar Thermal Power Project - SJVN signed MoU with Bihar State Power Holding
Company Limited (BSPHCL) and Bihar Infrastructure Company (BPIC) on 17.01.13 for
setting up Buxar Thermal Power Plant (2X 660 MW) at village Chausa, Distt. Buxar. SJVN
took over Buxar Bijli Company Private Limited on 04.07.13 and name changed to SJVN
Thermal Private Limited (a wholly owned subsidiary of SJVN Ltd) on 17.10.13. Power
Purchase Agreement (PPA) has been signed with Bihar State Power Holding Company
Limited (BSPHCL) for 85% share of power generation on bus bar rate.

Wind Power Project-

SJVN has diversified into Wind Power generation with commissioning of its first project in
Maharashtra. The 47.6 MW Khirvire Wind Power Project has been installed at Khirvire and
Kombhalne village in Ahmednagar district of Maharashtra. In all the 56 Wind Power
turbines will annually generate 85.65 million units (MU) of renewable power. Each wind
power turbine has the capacity to generate 850 kV of energy. The electricity generated at
these wind energy farms is being pooled at Akole Grid Sub-station through a 132 KV
transmission line. The project was executed on a turnkey basis.
Khirvire Wind Power Project-The Khirvire Wind Power Project of 47.6 MW capacity is
located in Khirvire/Kombhalane villages, Taluka- Akole, District - Ahmednagar,
Maharashtra. The MoU target of generation from the Project during FY 2018-19 is 55
MU.The project comprises of 56 Wind Electric Generators (WEGs) of 850kW capacity each.
The whole project stands commissioned on 20.05.2014.

The capacity addition from the Project to the Maharashtra state grid is 47.60MW.The PPA
for power has been signed with MSEDCL at a tariff of Rs 5.81/unit for 53 WEGs and Rs.
5.70/unit for 3 WEGs fixed for a period of 13 years respectively.

Sadla Wind Power Project-The Sadla Wind Power Project with an installed capacity of 50
MW is situated in village Sadla, Taluka Muli, District Surendranagar in the state of
Gujarat.EPC contract was awarded to M/s Inox Wind Limited. Total cost of EPC contract is
Rs. 330.00 crores and Rs. 41.77 crores for Operation and Maintenance contract for 10 years.

The project comprises of 25 Wind Electric Generators. The Project is in advanced stage of
construction and is scheduled to be commissioned during FY 2018-19.
PPA signed with Gujarat Urja Vikas Nigam Limited (GUVNL) for 38 MW on 30.01.2018.
The construction of work is in progress. As on 30.04.2018, out of 25 WEGs, tower
foundations of 16 WEGs and erection of 14 WEGs completed. 2 units (4 MW) have been
commissioned so far.

Solar Power
SJVN has diversified into Solar Power generation with commissioning of its first project in
Charanka Solar Park, Gujarat. The 5 MW Charanka Solar Power Project has been
commissioned on 31.03.2017. An MOU has also been signed between SJVN Limited and
Solar Energy Corporation of India (SECI) on 19.06.2015 to set up 500 MW grid connected
solar power projects. SECI shall facilitate for the development of Solar PV Power Project
and sale of power as well.
Captive Solar Power Plant at NJHPS-Main features of 230KWp, Grid Connected, Solar
Power Plant (Captive Solar Power Plant) at surge shaft of 1500MW NJHPS
Charanka 5 MW Solar PV Power Project

JVN has commissioned its first solar Plant i.e. 5MW Charanka Solar Power Project on
31.03.2017. The project has been developed under REC Mechanism and the PPA for brown
power has been signed with GUVNL on 03.03.2017 for a period of 25 years.

Board of Director
 Sh. Nand Lal Sharma
Chairman cum Managing Director

Functional Directors

Mr. Amarjit Singh Bindra Mr. Rakesh Kumar Bansal Mr.

Kanwar Singh

Director(Finance) Director(Electrical)
Director(Civil)

Government Nominee Directors

Mrs Archana Agrawal

Nominee Director(GoI)
 Human Resource Management
Human Resource Management is a function within an organization which focuses
mainly on the recruitment of, management of, and providing guidelines to the
manpower in a company. It is a function of the company or organization which deals
with concerns that are related to the staff of the company in terms of hiring,
compensation, performance, safety, wellness, benefits, motivation and training.

Human Resource Management is also a premeditated approach to manage people

and the work culture. An efficient human resource management enables the
workforce of an organization to contribute efficiently and effectively towards the
overall achievement of a company’s goals and objectives.

The traditional method of human resource management involved planned

exploitation of staffs. This new function of human resource management involves
HRM Metrics and measurements and strategic direction to display value. Under the
influence of giving away the traditional method, HRM has got a new terminology
called Talent Management.

Nature of Human Resource Management:

HRM has the following features:
A part of Management Discipline: It is not a discipline in itself but is only a
field of study. HRM, being a part of management process, draws heavily from
management concepts, principles and techniques and apply these in the
management of human resources.
Concerned with People:
HRM is all about people at work, both as individuals and groups. It tries to put
people on assigned job in order to produce goods results. The resultant gains are
used to reward people and motivate them towards further improvement is
productivity.

Action oriented:
HRM focuses attention on action, rather than on record keeping, written procedures
or rules. The problems of employees are solved through rational policies.

Directed towards Achievement of Objectives:

HRM is directed towards achievement of organisational objectives by providing
tools and techniques of managing people in the organisation effectively.

Development Oriented:
HRM intends to develop the full potential of employees. The reward structure is
turned to the needs of employees. Training is provided to improve the skill of
employees. Every attempt is made to use their talents fully in the service of
organisational goals.

Continuous Process:
HRM is not a one short deal. It cannot be practised only one hour each day or one
day a week. It requires constant alertness and awareness of human relations and
their importance in every day operations.

Universal Existence: HRM is pervasive in nature. It is present in all enterprises.

It permeates all levels of management in an organisation.

Functions of Human Resource Management

1.Operative Functions.
2.Managerial Functions.
3.Advisory Functions.
1.Operative Functions-
Recruitment: This is the most challenging task for any HR manager. A lot of attention
and resources are required to draw, employ and hold the prospective employees. A lot of
elements go into this function of recruitment, like developing a job description,
publishing the job posting, sourcing the prospective candidates, interviewing, salary
negotiations and making the job offer.

Training and Development: On the job training is the responsibility of the HR

department. Fresher training may also be provided by some companies for both new hires
and existing employees. This Fresher training is mainly done to make the employees up
to date in their respective areas as required by the company. This function makes the
employees understand the process and makes it easy for them to get on their jobs with
much ease. During the process of the training and development, the results are monitored
and measured to find out if the employees require any new skills in addition to what
he/she has.

Professional Development: This is a very important function of Human Resource

Management. This function helps the employees with opportunity for growth, education,
and management training. The organization undertakes to sponsor their employees for
various seminars, trade shows, and corporal responsibilities. This, in turn, makes the
 employees feel that they have been taken care by their superiors and also the
organization.

Compensation and Benefits: A company can attain its goals and objectives if it can
acclimatize to new ways of providing benefits to the employees. Some of the benefits
given by companies are listed below for our understanding:
1. Working hour flexibility
2. Extended vacation
3. Dental/Medical Insurance
4. Maternal/Paternal Leave
5. Education Reimbursement for children

Performance Appraisal: The employees of any organization will be evaluated by the

HR department as per the performance. This function of Human Resource Management is
to help the organization in finding out if the employee they have hired is moving towards
the goals and objectives of the organization. On the other hand, it also helps the company
to evaluate whether the employees needs improvement in other areas. It also helps the HR
team in drawing certain development plans for those employees who have not met the
minimal requirements of the job.

Ensuring Legal Compliance: To protect the organization this function plays a crucial
role. The HR department of every organization should be aware of all the laws and
policies that relate to employment, working conditions, working hours, overtime,
minimum wage, tax allowances etc. Compliance with such laws is very much required
for the existence of an organization.

Managerial Functions

1. Planning: This function is very vital to set goals and objectives of an organization. The
policies and procedures are laid down to achieve these goals. When it comes to planning
the first thing is to foresee vacancies, set the job requirements and decide the recruitment
sources. For every job group, a demand and supply forecast is to be made, this requires
an HR manager to be aware of both job market and strategic goals of the company.
Shortage versus the excess of employees for that given job category is determined for a
given period. In the end, a plan is ascertained to eliminate this shortage of employees.

2. Organizing: The next major managerial function is to develop and design the structure
of the organization. It fundamentally includes the following:
1. Employees are grouped into positions or activities they will be performing.
2. Allocate different functions to different persons.
3. Delegate authority as per the tasks and responsibilities that are assigned.

3. Directing: This function is preordained to inspire and direct the employees to achieve
the goals. This can be attained by having in place a proper planning of career of
employees, various motivational methods and having friendly relations with the
 manpower. This is a great challenge to any HR manager of an organization; he/she
should have the capability of finding employee needs and ways to satisfy them.
Motivation will be a continuous process here as new needs may come forward as the old
ones get fulfilled.

4. Controlling: This is concerned with the apprehension of activities as per plans, which
was formulated on the basis of goals of the company. The controlling function ends the
cycle and again prompts for planning. Here the HR Manager makes an examination of
outcome achieved with the standards that were set in the planning stage to see if there
are any deviations from the set standards. Hence any deviation can be corrected on the
next cycle.

Advisory Functions
1. Top Management Advice: HR Manager is a specialist in Human Resource Management
functions. She/he can advise the top management in formulating policies and procedures.
He/she can also recommend the top management for the appraisal of manpower which
they feel apt. This function also involves advice regarding maintaining high-quality
human relations and far above the ground employee morale.

2. Departmental Head advice: Under this function, he/she advises the heads of various
departments on policies related to job design, job description, recruitment, selection,
appraisals.
 Introduction of topic
Job Satisfaction- Job satisfaction refers to how well a job provides fulfilments of a
need or a want, or how well it serve as a source or means of enjoyments.

Job satisfaction is the degree to which individuals feel positively or negatively about their
job.

History of Job Satisfaction –

The term job satisfaction was brought to lime light by hoppock (1935). He revived
35 studies on job satisfaction conducted prior to 1933 and observes
t h a t J o b s a t is fa c t io n i s c o mb i n a t i o n o f p s y c h o lo g ic a l, p h y s io lo g ic a l a n d
environmental circumstances. That causes a person to say. “I m satisfied with my job”.
Such a description indicate the variety of variables that influence the satisfaction
of the individual but tell us nothing about the nature of Job satisfaction .Job
satisfaction has been most aptly defined by pestonjee (1973) as a
job,ma n a g e me n t , p e rs o n a l a d j u s t me n t & s o c ia l r e q u ir e me n t . M o rs e (1 9 5 3
) considers Job satisfaction as dependent upon job content, identification with the co.,
financial & job status & priding group cohesiveness
One of the biggest preludes to the study of job satisfaction
w a s t h e Hawthorne study. These studies (1924 -1933), primarily credited to
Elton Mayo of the Harvard Business School, sought to find the effects of various
conditions (most notably illumination) on workers’ productivity. T h e s e s t u d ie s
u l t i ma t e l y s h o w e d t h a t n o v e l c h a n g e s in w o r k c o n d it io n s temporarily
increase productivity (called the Hawthorne Effect). It was later found that this increase
resulted, not from the new conditions, but from the knowledge of being observed.
This finding provided strong evidence that people work for purposes other than
pay, which paved the way for researchers to investigate other factors in job satisfaction.
Scientific management (Taylorism) also had a significant impact on the study of job
satisfaction. Frederick Winslow Taylor ’s 1911 book, Principles of Scientific Management,
argued that there was a single best way to
performa n y g i v e n w o r k t a s k . T h i s b o o k c o n t r i b u t e d t o a c h a n g e i n i
n d u s t r i a l production philosophies, causing a shift from skilled labor
and piecework towards the more modern approach of assembly lines and hourly
wages.T h e i n it ia l u s e o f s c ie n t i f ic ma n a g e me n t b y in d u s t r ie s g r e a t ly i n c r e
a s e d productivity because workers were forced to work at a faster pace. However ,workers
became exhausted and dissatisfied, thus leaving researchers with new questions to
answer regarding job satisfaction .It should also be noted that the work of W.L.
Bryan, Walter Dill Scott, and Hugo Munsterberg set the tone for Taylor’s work. Some
argue that Maslow’s hierarchy of needs theory, a motivation theory,
l a i d t h e fo u n d a t io n fo r j o b s a t i s fa c t io n t h e o r y . T h is t h e o r y e x p la i n s t h a t
people seek to satisfy five specific needs in life – physiological needs, safety needs, social
needs, self-esteem needs, and self-actualization. This model s e r v e d a s a g o o d
b a s i s fr o m w h ic h e a r l y r e s e a r c h e rs c o u ld d e v e lo p j o b satisfaction theories.
Importance of Job Satisfaction
A satisfied employee is always important for an organization as he/she aims to deliver the
best of their capability. Every employee wants a strong career growth and work life
balance at workplace. If an employee feels happy with their company & work, they look to
give back to the company with all their efforts. Importance of job satisfaction can be seen
from two perspectives i.e. from employee and employer perspective:
For Employees: Job satisfaction from an employee perspective is to earn a good gross
salary, have job stability, have a steady career growth, get rewards & recognition and
constantly have new opportunities.
For Employers: For an employer, job satisfaction for an employee is an important
aspect to get the best out of them. A satisfied employee always contributes more to the
company, helps control attrition & helps the company grow. Employers needs to ensure a
good job description to attract employees and constantly give opportunities to individuals to
learn and grow.
The positive effects of job satisfaction include:
1. More efficiency of employees of workplace if they are satisfied with their job.
2. Higher employee loyalty leading to more commitment.
3. Job satisfaction of employees eventually results in higher profits for companies.
4. High employee retention is possible if employees are happy.

Job Satisfaction Factors

Job satisfaction is related to the psychology of an employee. A happy & content employee at
a job is always motivated to contribute more. On the other hand, a dissatisfied employee is
lethargic, makes mistakes & becomes a burden to the company. The elements & factors
which contribute to job satisfaction are:
1. Compensation & Working conditions: One of the biggest factors of job
satisfaction are the compensation and benefits given to an employee. An employee with a
good salary, incentives, bonuses, healthcare options etc is happier with their job as compared
to someone who doesn’t have the same. A healthy workplace environment also adds value to
an employee.
2. Work life balance: Every individual wants to have a good workplace which allow
them time to spend with their family & friends. Job satisfaction for employees is often due a
good work life balance policy, which ensures that an employee spends quality time with their
family along with doing their work. This improves the employee's quality of work life.
3. Respect & Recognition: Any individual appreciates and feels motivated if they
are respected at their workplace. Also, if they are awarded for their hard work, it further
motivates employees. Hence recognition is one of the job satisfaction factors.
4. Job security: If an employee is assured that the company would retain them even if
the market is turbulent, it gives them immense confidence. Job security is one of the main
reasons for job satisfaction for employees.
5. Challenges: Monotonous work activities can lead to dissatisfied employees. Hence,
things like job rotation, job enrichment etc can help in job satisfaction of employees as well.
6. Career Growth: Employees always keep their career growth part as a high priority
in their life. Hence, if a company helps groom employees and gives them newer job roles, it
enhances the job satisfaction as they know they would get a boost in their career.

There are several theories given which help in evaluating & measuring job satisfaction of
employees at workplace. Some of them are:
- Hierarchy of Needs by Maslow
- Hygiene Theory by Herzberg
These help in understanding the parameters or factors which influence job satisfaction of
employees at workplace.

Job Satisfaction Examples

There can be several examples of job satisfaction as it is related to the psychology of an
individual. A particular job can be satisfying for one employee based on the salary, location,
workplace, responsibilities, job level etc and the same be lead to dissatisfaction to some
another employee. Consider an employee who has joined an organization 1 year back and
has been awarded for his good work with bonuses and incentives. Also, the company has
chosen him for an exclusive training program which would help in boosting his career. Also,
the employee is entitled for a sabbatical leave as well to pursue his own dream. Hence, all
these factors and HR policies would lead to job satisfaction.
Measuring Job Satisfaction
It is critical for any company to measure job satisfaction as the efficiency, productivity and
loyalty of an employee depends on it. Companies can conduct surveys with questionnaires
asking the employees about their feedback and understand if they are satisfied or dissatisfied
with their job. Companies can ask the following questions to measure job satisfaction and
can give multiple options like Satisfied, somewhat satisfied, neutral, somewhat dissatisfied,
dissatisfied:
1. Are you happy with your salary/incentives?
2. Is your contribution to the company recognized with awards?
3. Do you find your workplace conditions good, hygienic, competitive?
4. Do you have a good work life balance?
5. Are you happy with company policies for your career growth & training and
development?
Apart from the above questions, specific open-ended questions about job satisfaction can
also help in understanding employee pain-points and how the company can improve to
ensure a happy employee.
Hence, this concludes the definition of Job Satisfaction along with its overview.