SHRM AT NTPC

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 89.5% 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.

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.

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. HR PRACTICES 1. RECRUITMENT For the recruitment process the company conduct the all India written test, It also goes to the various IITs and NITs for the campus recruitment. To induct talent and groom them into a dedicated cadre of power professionals "Executive Trainee" Scheme was introduced in the year 1977 for recruitment in the disciplines of Mechanical, Electrical, Civil, Control & Instrumentation and now encompasses Computer Science, Chemistry, HR and Finance disciplines also.

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TRAINING & DEVELOPMENT

A comprehensive one-year training comprising theoretical inputs as well as onthe-job training. The new recruits are also attached with senior executives under a systematic and formal 'Mentoring System' of the company to integrate them into the Culture of the company. As part of post employment training and development opportunities, a systematic Training plan has been formulated for ensuring minimum seven man days training per employee per year and includes level-wise planned intervention designed to groom people for assuming positions of higher responsibility, as well as specific need-based interventions based on scientific Training Needs Analysis. NTPC has set up 15 project training centres, 2 simulator training centres and an apex institute namely 'Power Management Institute' (PMI). While the project training centres (Employee Development Centres) have specialized in imparting technical skills and knowledge, PMI places emphasis on management development. Besides opportunities for long term education are also provided through tie ups with reputed Institutions like IIT, Delhi, (M.Tech in Power Generation Technology), MDI, Gurgaon (Executive MBA programme), BITS, Pilani (B.Tech) etc.

JOB EVALUATION IN NTPC 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. 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. 5.6.5 REWARDS, INCENTIVES & BENEFITS- Incentives 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. 5.6.6 PERFORMANCE MANAGEMENT SYSTEM (PMS)- PMS started in 2004 for the alignment of companys and employees goals. Prior to the implementation of this system, in 2002 each and every employee was sensitized about this system. It is a 3-stage process1. Target study 2. Mid term appraisal 3. Final review A target is set in the beginning of the project or the year and after that in the middle of it the project is reviewed for the appraisal and being checked whether if there is any flaw or lagging in the project so that it can be upgraded accordingly. And then finally the final
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review is done. The shorter the span of the project the higher the frequency of the review being done. - Open system - Individual evaluation (marks out of 100 given to each employee) is done at the end of the year. 5.6.7 EMPLOYEE RELATIONSDemonstrating its high concern for people, NTPC has developed strong employee welfare, health & well-being and social security systems leading to high level of commitment. - The attrition rate in this company is less than 1%.

NTPC offers best quality-of-life through beautiful townships with all amenities

such as educational, medical and recreational opportunities for employees and their family members. The motivation to perform and excel is further enhanced through a comprehensive NTPC Rewards and Recognition system.

Employee satisfaction survey- done by Shriram centre every 2-3 years along with

e-darpan online survey. 5.6.8 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.
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CHAPTER 6 ANALYSIS AND CONCLUSION

The Model employed by Nestle is one of High Performance, High involvement and high commitment due to reasons illustrated in chapter 4.

Nestle is unique in the sense that it has been able to successfully inculcate its business objective as well as its core values, consistently in its employees day-to-day activities starting from recruitment till continuous performance appraisals. Like, open and flexible culture is ensured by way of providing training programs to employees at all the levels. This kind of culture is also supported by decentralized structure of Nestle. Transparent performance appraisal systems and the freedom given to them to question their seniors benefits not only the employees but even the organization as a whole. Nestles emphasis on individual achievement is evident from the kind of pay structure HR has designed for its employees. Nestl, over its long historical development from a small village operation to the worlds leading food Company, has demonstrated an enviable capability to adjust to an ever changing external environment, without losing its fundamental beliefs and core values, so important for long-term success. Over the years to come, this capability of using HR as a strategic partner in implementation of companys activities will continue to be challenged even more as Nestl is growing in size and complexity up to a dimension which demands a continuous evolution of its organization and of the way in which it is run. Its motivation based on willingness to learn and to question what it is doing and why it is doing it, combined with its long standing respect for Nestl values, will assure its success.
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The Model employed by NTPC is one of High involvement and high commitment due to

reasons illustrated in chapter 5. 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. Such strategic HRM activities at SHRM ensure high productivity as well as low attrition rates at NTPC. The above SHRM practices help both companies to harmonize it's HR policies with the business strategy leading to Competitive Advantage, Distinctive Capabilities and Strategic Fit .As a result enabling them to become India's one of the biggest organizations in their own fields and to grow further