Introduction of NTPC TYPE: State-owned enterprise Industry: energy Headquarters: Delhi india Chairman & MD: Arup Roy Choudhury India’s largest thermal company, world’s sixth largest Highly ranked among all company surveys Won several awards for company HR practices Established in 1975 as a thermal power generating company Conferred status of Navratna in July 1997 Revenue: Rs. 50,188.52 crore(2009-10) Employees: 25,944(2010)
To Meet the electricity needs of the Northwest Territories, today and tomorrow, by generating and distributing reliable power across Canada’s most challenging operating environment.
To be regarded as an exceptional utility, up to the challenge of delivering safe, reliable and fair-priced power through a territory-wide system that is efficient and sustainable.
* NTPC strongly believes in achieving organizationalexcellence through Human Resources and follows "PeopleFirst" approach to leverage the potential of it’s employees.* It has formulated an integrated HR strategy which rests onfour building blocks of HR viz. 1.Competence building, 2.Commitment building, 3.Culture building and 4.Systems building
HR function in NTPC:RECRUITMENTTRAINING AND DEVELOPMENTPERFORMANCE APPRAISALEMPLOYEES WELFARE, HEALTH & SOCIALSECURITYEMPLOYEES PARTICIPATION (EPM)
Recruitment NTPC takes adequate steps to recruit people on the basis of various factors to identify the right candidate. Some main factors are:Learn ability:Competency:Other qualities:
Recruitment Programs Most of the jobs at the company required thorough technical skills. Therefore, NTPC gave preference to recruitment of engineers. Around 80% of NTPC’s executives were engineers. It recruited mainly at the entry level for the posts of around 400 Executive Trainees every year. Lateral recruitments especially at the senior levels were very few. The company do not usually hire from premier institutes like Indian Institute of Technology (IIT) and Indian Institute of Management (IIM) but preferred to take candidates from National Institute of Technology (NITs) during campus recruitments because this allowed the company the freedom to mold these engineers to fit its own culture.
Recruitment Programs(cont…) It could also check any possible mismatch between the job and an individual’s expectations. Lateral recruitments especially at the senior levels were very few. Some of the highlights of NTPC’s Recruitment Plan:i. Preference to marginalized classes of societyii. SC/ST,OBCiii. ex-servicemeniv. Project Affected Persons (PAPs)v. Physically challenged
Recruitment ProcedureThe selection process involved three stages: Written test Group discussion Interview
TRAINING AND DEVELOPMENT A systematic Training plan has been formulatedfor ensuring minimum seven man days (56 hours)training per employee per year. Opportunities for long term education are alsoprovided to employees through tie ups withreputed Institutions. Company established a training institute calledthe Power Management Institute (PMI) whichbecame an independent campus at Noida, NewDelhi as a full fledged Training and DevelopmentCentre in 1994.
TRAINING AND DEVELOPMENT(cont…)The company identified the following areas as its focus fortraining:ochange management,oquality management andocontinuous performance improvementBesides several management development programs, thecompany also conducted leadership development programs forits executive directors and general managers.Company also run technical training centers at all its 20plants. They were called Employee Development Centers(EDCs).
TRAINING AND DEVELOPMENT(cont…)NTPC has institutionalized "Development Centers"in the company. These Centers give a good insight tothe employees about their:•Strengths and weaknesses•The gaps in their competencies which they canbridge through suitable support from company.
TRAINING AND DEVELOPMENT(cont…)The company has two Simulation Training Institutes atKorba in Chattisgarh, and at Kawas in Gujarat.These institutes enable employees to learn the operationsof a real power plant without any loss or damage to thecompany.NTPC has a training budget which is more than Rs.5000 lakh.NTPC has >90% utilization of its fund allotted to T&D.
PERFORMANCE APPRAISAL Till the early 1990s, NTPC had operatedthrough a system of Confidential Reports(CRs) for performance appraisal. NTPC linked its promotions toperformance rather than years of serviceright from the very beginning. NTPC created a performance-drivenwork culture, full of challenge for itsemployees, through the use ofbenchmarking.
PERFORMANCE APPRAISAL(Cont…) The company modified its appraisal system to adopt a 360degree feedback system based on Key Result Areas(KRAs).The culture was such that if an employee missed three tofour promotions he felt cut out from the company’smainstream. Below par performers were sent for remedialtraining and if performance still didn’t improve, they weremoved to less important roles.At last If there was no hope of improvement, the companyasked the employee to opt for its Voluntary RetirementScheme (VRS).
EMPLOYEES WELFARE, HEALTH & SOCIAL SECURITY NTPC has developed strong employee welfare, health &well-being and social security systems leading to high level ofcommitment. NTPC offers best quality-of-life through beautiful townshipswith all amenities such as educational, medical andrecreational opportunities for employees and their familymembers. In Remote locations company take care of education ofemployees’ children.
EMPLOYEES WELFARE, HEALTH & SOCIAL SECURITY(cont…) Social Security on Superannuation Employees Provident Fund Gratuity Employees Voluntary Benevolent Fund Self Contributory Pension Scheme Post Retirement Health scheme
EMPLOYEES WELFARE, HEALTH & SOCIAL SECURITY(cont…)Education >45 schools in various projects imparting quality education to 45000 odd children. Need based funding of schools Workers’ Education Scheme Regular up skilling Children’s Education Scheme Reimbursement/ scholarship/ award/ coaching policy Initiative for total development
EMPLOYEES WELFARE, HEALTH & SOCIAL SECURITY(cont…)Physically Challenged People Employment opportunities as per 1995 Act 237 nos provided employment, recruitment drive for 169 persons currently in process. Facilities for physically challenged people Provision of medical equipments Holding of medical camps Launching inclusive education in schools
EMPLOYEES WELFARE, HEALTH & SOCIAL SECURITY(cont…)Health Comprehensive health care to employees and their families Adequate health care to community around project sites Project Hospitals -17 Beds-700 Empanelled Hospitals-58
EMPLOYEES PARTICIPATION (EPM) NTPC believed that “participation and participatory culture make employees own their work and result in tremendous synergy.” NTPC Open Competition for Executive Talent (NOCET) is organized every year in which teams of executives compete annually through oral and written presentation on a topical theme. Besides a management journal called "Horizon" is published quarterly to enable employees to share their ideas and experiences across the organization.
EMPLOYEES PARTICIPATION (EPM)(cont…) Suggestion Schemes called for suggestions from employees on the company’s equipment and systems, and rewarded good suggestions. Safety Circles suggested improvements in safety measures that could be subsequently implemented by the company.
ANALYSIS OF HR PRACTICES AT NTPC:Strengths: More than 25 thousand highly trained employees are engaged in NTPC owned projects. Senior executives possess extensive experience of the industry. Executive Turnover Rate 0.44%. Planned interventions at various stages of career. Systematic training ensures 7 man days training per employee per year.
ANALYSIS OF HR PRACTICES AT NTPC(cont…) 0.19% of revenue allocation for training & development with 92% utilization record. NTPC has a training budget which is more than Rs.5000 lakh. Knowledge sharing & development through various HR initiatives. Cordial & harmonious employee Relations. Employee security i.e. full medical benefits even after retirement, education of employees’ children even in remote location etc
ANALYSIS OF HR PRACTICES AT NTPC(cont…) Township with all basic amenities is one of the USP for NTPC. As one of the employees Navneeta Bhattacharya says "In the private sector, you dont have time for yourself. But here you have a life and that too with benefits like well- protected townships." What binds employees to NTPC is security. Remote locations mean the company has to take care of things such as the education of employees’ children. Apart from full medical benefits, even after retirement, NTPC also has help desks that assist families of employees who are out of station
ANALYSIS OF HR PRACTICES AT NTPC(cont…) Weakness NTPC yet has to implement the performance linked incentive system. This is one area of concern. NTPC needs to plan for incentive schemes. Don’t prefer to recruit employee from reputed organization like IIT, IIM etc. It mainly recruit at the entry level.
Future Challenges: NTPC had enjoyed a near-monopoly till the 1990s but with increasing competition from private sector players like Reliance Energy Ltd. and Tata Power Company Ltd., it could become tough for the company to keep up its record in future. It has become all the more important for the company to attract the best talent to be able to realize its ambitions of becoming a complete energy company spanning thermal, hydro, nuclear and bio-power, generating 40,000 MW of power by 2012 and entering the Fortune 500 listing by 2017.
Future Goal: The company has also set a serious goal of having 50000 MW of installed capacity by 2012 and 75000 MW by 2017. The company has taken many steps like step-up its recruitment for project implementations etc. NTPC will invest about Rs 20,000 crore to set up a 3,900- megawatt (Mw) coal-based power project in Madhya Pradesh. Company will also start coal production from its captive mine in Jharkhand in 2011–12, for which the company will be investing about Rs 1,800 crore.