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Tanda (440MW)
Unchahar (1050MW)
The beneficiary states of the power generated by Northern Region plants are Uttar Pradesh, Uttaranchal, Jammu & Kashmir, Himachal Pradesh, Chandigarh, Rajasthan, Haryana, Punjab, & Delhi
Investors
Ultimately, all our efforts are geared towards maximizing shareholders' wealth in line with the best corporate governance practices, including sensitivity to the environment and the society. Optimization of cost should be integral to our working. R.S. SHARMA Chairman & Managing Director
Chairman's Statement
NTPC: Powering Million Smiles Your Company generates electricity that lights homes, brightens villages,irrigates fields, powers businesses and moves the railways. With pan-India presence and perspective, your Company is supplying power through its large and efficient fleet of power generating stations with total capacity of 30,644 MW. It has 22 stations, consisting of 112 units of different sizes,vintage and technologies but all have one common feature, that of generating power at high efficiency levels. Your Companys stations and projects are located in 16 States and the Union Territory of Delhi. It supplies power to 24 States and 5 Union Territories. After the completion of its Bongaigaon Thermal Power Project in Assam, it will be supplying power to all the 28 States of India. Your Company has been described as a 'magnificent national enterprise'and as a 'great success story of our times'.It is a precious national asset and a profitable business enterprise. Your Company provides growth momentum to the sector, creates benchmarks of operational excellence and promotes sustainable energy development. It is committed to develop and provide reliable power, related products and services at a competitive price, integrating multiple energy sources with innovative and eco-friendly technologies
Your Company has 5 subsidiaries and 15 joint ventures which strengthen its business model aimed at related diversification and integration along the energy-value-chain as an effective growth strategy. Your Companys stock remained the most resilient during the recent phase of market slowdown and turbulence, demonstrating that your Company has the strength to maintain its course even in rough weather. Strong asset base of over Rs. 1 trillion or Rs. 1 lakh crore, robust business model, prudent strategies, growth oriented market and its corporate strengths guarantee steady progress of your Company over the long term. In the process of realizing its Vision to become A world class integrated power major, powering Indias growth, with increasing global presence, your Company is poised to have 75,000 MW generation capacity with diverse fuel mix, about 47 mtpa coal production from its mines, 25 billion units power trading volume and an employee strength of about 35,000 by the year 2017. Thus your Company is firmly on course to become a huge and integrated energy corporate. I take this opportunity to share with you what our assumptions are, what we stand for, what we are doing now, and what we are committed to doing in the future.
Introduction
Analysts wondered what made NTPC so special that it could attract talent in an environment of high paying software companies and also other multinational players operating in India. NTPC was not only India's largest thermal power generating company but was also the sixth largest thermal generator8 globally, and the second most efficient in capacity utilization in the world in terms of Terrawatt hours (TWh).9 According to analysts, NTPC changed the oft-held perception that as a public enterprise it would have a laid-back organizational culture. NTPC had a high focus on training and development and merit was an important consideration for career growth. Its achievement was particularly noteworthy as it had successfully developed a challenging work culture even though it was 90% governmentowned.
HISTORY OF NTPC
NATIONAL THERMAL POWER CORPORATION (NTPC)
BACKGROUND OF NTPC:-NATIONAL THERMAL POWER CORPORATION LIMITED A PUBLIC SECTOR COMPANY .A GIANT IN THE FIELD OF POWER GENERATION .IT IS AN INDIAN COMPANY AND AN GREAT PLACE TO WORK WITH .RESPONSIBLE FOR POWER GENERATION IN MASSIVE AMOUNT IN INDIA . NTPC WAS SET UP IN THE YEAR 1975. SOURCE OF INFORMATION www.ntpc.co.in. NTPCS ORGANISATIONAL CULTURE AND THE ORGANISATIONAL MANAGEMENT SYSTEM:-NTPC HAS GOT AN UNIQUE ORGANISATIONAL CULTURE. NTPC TRY ITS LEVEL BEST SO THAT ONLY THE BEST MANAGERS JOIN THE COMPANY .NTPC BELIEVES IN THE DEAD LINES IN THE STRICT SENSES, WHEN IT COMES TO ANY COMPLETION OF WORK OR PROJECT .THE INITIAL BATCH OF MANAGERS JOINED THE COMPANY FROM BHARAT HEAVY ELECTRICALS LIMITED (BHEL) AND STEEL AUTHORITY OF INDIA LIMITED .NTPC GIVE MORE IMPORTANCE TO PERFORMANCE AND THUS LINKED THE PROMOTIONS TO PERFORMANCE RATHER THAN THE YEARS OF SERVICES.THAT IS TO SAY EXPERIENCE HAS GOT LESS IMPORTANCE THAN PERFORMANCE. THE WORK CULTURE OF NTPC IS FULLY PERFORMANCE DRIVEN, FULL OF CHALLENGE FOR ITS EMPLOYEES AND EXECUTIVES BY THE USE OF
BENCH MARKING SYSTEM. THE ORGANISATION HAD ADOPTED THE MIND SET OF VIEWING PROBLEMS AS OPPORTUNITIES AND THI CULTURE MOTIVATED THE EMPLOYEES TO PERFORM MORE AND MORE AND GIVE THE OPTIMUM OUTPUT FOR THE ORGANISATION. NTPC BELIEVES IN THE PHILOSOPHY OF PEOPLE FIRST THAN ALL OTHER THINGS IN THE ORGANISATION. NTPC HAD CREATED AN ENVIRONMENT WHERE THE EMPLOYEES FEEL FREE AND HAPPY TO WORK AND WHERE THERE IS A SENSE OF BELONGINGNESS AND COMMITMENT. NTPC TAKE UTMOST CARE ABOUT THE SOCIAL SECURITY OF ALL THE EMPLOYEES AND THE EXECUTIVES TO SAY THIS IS A PART OF NTPCS CULTURE AND ORGANISATIONAL MANAGEMENT SYSTEM. IT IS VERY IMPORTANT THAT THE EMPLOYEES KNOW THAT THEY WILL BE LOOKED AFTER, AND THAT IS THE STARTING POINT FOR HIGH PERFORMANCE. NTPC ENCOURAGE A LOT SO THAT THE EMPLOYEES MUST PARTICIPATE IN THE ORGANISATIONAL MANAGEMENT PROCESS AT VARIOUS LEVELS IN THE ORGANISATION. PROFESSIONAL COUNCILS ARE ENCOURAGED A LOT SO AS TO GAIN THE ORGANISATIONAL GOAL IN A STIPULATED TIME .QUALITY IS GIVEN UTMOST IMPORTANCE SO FORMATION OF QUALITY CIRCLES ARE ENCOURAGED FOR A HEALTHY AND CONSTRUCTIVE ORGANISATIONAL CULTURE AND ORGANISATIONAL MANAGEMENT SYSTEM IN NTPC.
ABouT NTPC
THE BEST COMPANIES TO WORK FOR IN INDIA
RANK 5: NTPC A School For Employees
NTPC invests massive resources on training and benefits. Its staff is fiercely loyal and most don't want to leave. If attrition rates and average service tenures were the only indicators of employee satisfaction, then people at India's premier power generation company, National Thermal Power Corporation (NTPC), would easily top any happiness index for employees. With an attrition rate of just 0.4 per cent and an average career tenure of 20 years, it may well cause both tech start-ups and legacy majors to turn green with envy.
Before you dismiss these figures as a function of a public sector mindset-unambitious, laid-back and complacent-sample this: alumni, freshers and search firms alike have an extremely favourable view of the company; and competitors consider its hr practices extremely robust. Proof: Anil Ambani poached K.K. Sinha, its Director, HRD, in July this year. His brief: redesign Reliance Energy's hr practices.
NTPC's Jain and his team:With attrition rate of just 0.4 per cent, the employees are definitely in good company
Ask Vijay Kumar Gupta, gm (hr)-who has been with NTPC for 26 yearsREVENUES: Rs 26,517 crore (2004- why he's stayed with the company for so long, and pat comes his reply: 05) PROFITS: Rs 5,807 crore (2004-05) "I've had no reason to think of moving." Not only has it given him Total employees: 23,385 Attrition (per cent): 0.4 (2004-05) full freedom to implement various innovative hr practices, it has also Average career tenure: 20 years taken full care of all his needs. (74 per cent) "Which company," he asks, "would Training budget (budgeted/ pay the full medical expenses of its actual): Rs 1.13 crore employees, their families and even Training man-hours dependent parents after (actual): 1,611,952 (2004-05) retirement?" Adds Dinesh Batra, Senior Manager, Corporate Planning: "It is NTPC's ability to manage challenges and convert them into opportunities that makes it such a great place to work in." For instance, when it faced the problem of disposing of the residue ash from its power plants, the NTPC team came up with the idea of selling it as construction material (ash mixed with cement is used in construction) in West Asia. "The plan was conceived and executed in six months flat,'' adds Batra. Such nimble-footedness, popularly attributed only to the private sector, adds to NTPC's draw as an employer. "Employee satisfaction levels have jumped 20 per cent between 2001 and 2004 despite no major revisions in compensation levels," says G.K. Agarwal, Executive Director, HRD. Interestingly, the company conducts employee satisfaction surveys in-house every year and gets an outside agency to do it once every four years. SNAPSHOT
But what really attracts fresh recruits to NTPC are which means staff the learning opportunities and the chance to is always riding the develop all-round capabilities. "In NTPC, training is learning curve seen as an investment. Hence, budget is not a constraint. Last year the training budget was Rs 1.5 crore," says Swatantra Kumar, gm and Head of the company's Gurgaon-based PMI (Power Management Institute). Adds Jasleen Kaur, an engineer who joined NTPC from Ingersoll Rand: "NTPC gives its employees enough time to learn before thrusting them into the job. It is not like the private sector where one is expected to run even before one learns to crawl." Young recruits are taught better communications and presentation skills at the Delhibased National School of Drama and at week-long English speaking classes; the rigorous theoretical grounding freshers get on virtually every aspect of the power sector-construction, operation, maintenance and technical service of projects-at PMI is said to be the best in the country; and company-sponsored courses at IIT Delhi (Master's Degree in Power Generation Technology), MDI Gurgaon (Executive MBA Programme) and The Energy & Resource Institute, School of Advanced Studies (Master's Degree in Regulatory Studies) for employees at all levels mean Team NTPC is always riding the learning curve. This is what makes Vijay Kumar, a mechanical engineer from Ranchi and a 2000 batch trainee executive, a die-hard fan of NTPC. He is on a two-year all expenses paid leave from the company while he pursues an MTech in power generation technology from IIT, Delhi. "Private companies may pay higher salaries, but nowhere else do you get these kinds of facilities," he says." Not surprisingly, NTPC's hr policies have received ISO 2000 certification.
Rabeen Singh reaches office by 8.45 a.m. and rushes into a meeting. On the agenda are new milestones and targets set for his group by Chairman C.P. Jain. Off the agenda are the jokes that make these meetings enjoyable. This one breaks up only at 1.10 p.m. It's lunchtime; Singh heads for the ground floor canteen with his colleagues for a quick bite and some gossip. Post-lunch, he gets busy finishing his assignments, often shouting across his open bay for help from colleagues. The clock strikes 6.30 p.m., signalling pack-up time. Singh heads for the gym, mounts the treadmill for 30 minutes before heading home.
With the company taking care of medical expenses even post retirement, for NTPC employees, staying fit comes naturally
After a hard day's work, employees have the option of unwinding by playing pool or sweating it out in the gym
NTPC pays trainee engineers about Rs 7 lakh per annum (cost to company), which is quite competitive, though not top of the charts, by industry standards. But it is invisibles like training, education and healthcare that are the real icing on the cake. Argues Ashok Swarup, Deputy GM, HRD: "Taken as a whole-the pay and perks, the various welfare measures and the productivity linked-incentives-the
compensation package at NTPC is among the best in the country." The company also has a very sound mentoring programme. All 556 trainees recruited this year will have senior managers as mentors, who will help them tide over teething problems and foster a sense of belonging. Says Ranjana Mittal, faculty member and teacher of organisational behaviour at PMI: "What we thought existed only in books on hr practices is actually practiced in this public sector company." Little wonder that NTPC has regularly made it to this list-it came in at #3 in 2003 and at #6 last year.
INTERVIEW/C.P. JAIN/CHAIRMAN "Some churn is always good" Excerpts from an interview with NTPC chairman and Managing Director C.P. Jain: How do you train fresh recruits? NTPC has elaborate training programmes for its incumbent executives. Not only do they go through rigorous classroom training at the Gurgaon-based Power Management Institute set up by NTPC, they also put in stints at various departments and plants in the course of their year-long training programme. So, trainees are familiar with our needs, systems processes and also our long-term goals. There is a continuous on-the-job training for all employees-there is also a compulsory seven-day training for all officials; this includes overseas training programmes for senior managers. How do you motivate workers? The best way to motivate anyone is to let him/her know that performance will be rewarded. Thus, as an executive rises up the organisational ladder, the weightage for
performance gradually increases while that for seniority decreases. In fact, for people at the deputy general manager level and above, no weightage is given to seniority at all. We also have a number of platforms to develop a culture of participation through what we call "quality circles". Here, employees are not only allowed to suggest new ideas (in relationship to their responsibilities) but also given the freedom to implement them. An individual needs not just money, but also good growth prospects, a great working environment and a sense of belonging. We try to foster that kind of feeling in the organisation.
POWER SECTOR
Powering development
The 1,000 MW Simhadri power plant near Visakhapatnam. The poor financial health of many State Electricity Boards (SEBs), which are our customers, remains a critical area for us. We have to survive and grow in an environment where many of our customers are not financially well placed. But with the process of reforms in the power sector our collections have improved substantially. With the help of the Ministry of Power, we have arrived at a one-time settlement of the SEBs' dues. Now the realisation is 100 per cent and we have a better cash flow.
The Ramagundam power plant. The NTPC has diversified into the hydropower sector. What is the rationale behind this while there is already a PSE specifically set up for this purpose?
If you look at the cost of generation in the long term, hydropower has two advantages. One is that it is a cheap source. Secondly, it is the most environment-friendly source. It does not deplete any energy source. It is a perennial and renewable source of energy. In India, there is a lot of potential for hydropower. Only about 17 to 18 per cent of the hydro potential of 1,50,000 MW has been tapped so far. For rapid hydro development, as many developers (both public and private) as possible should build big, medium, small, mini and micro hydel projects depending upon their technical and financial capabilities. There is scope for many people to work in this area. From the national point of view it is important that the hydrothermal mix, which has gone down to 25:75, is raised to 40:60. Secondly, it is in the NTPC's commercial interest in the long run that it is able to provide cheaper power. We have already taken up an 800 MW hydro project at Koldam. Work has already started on this. In addition to that, we have taken up three hydro projects in Uttaranchal. These are Loharinag Pala (520 MW), Tapovan Vishnugad (360 MW) and Lata Tapovan (108 MW).
Overview of Organisation
Indias largest power company, NTPC was set up in 1975 to accelerate power development in India. NTPC is emerging as a diversified power major with presence in the entire value chain of the power generation business. Apart from power generation, which is the mainstay of the company, NTPC has already ventured into consultancy, power trading, ash utilisation and coal mining. NTPC ranked 317th in the 2009, Forbes Global 2000 ranking of the Worlds biggest companies. The total installed capacity of the company is 30, 644 MW (including JVs) with 15 coal based and 7 gas based stations, located across the country. In addition under JVs, 3 stations are coal based & another station uses naptha/LNG as fuel. By 2017, the power generation portfolio is expected to have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). NTPC has adopted a multi-pronged growth strategy which includes capacity addition through green field projects, expansion of existing stations, joint ventures, subsidiaries and takeover of stations. NTPC has been operating its plants at high efficiency levels. Although the company has 18.79% of the total national capacity it contributes 28.60% of total power generation due to its focus on high efficiency.
In October 2004, NTPC launched its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and 5.25% as offer for sale by Government of India. NTPC thus became a listed company in November 2004 with the government holding 89.5% of the equity share capital. The rest is held by Institutional Investors and the Public. The issue was a resounding success. NTPC is among the largest five companies in India in terms of market capitalisation.
At NTPC people before Plant Load Factor is the mantra that guides all HR
related policies. NTPC has been awarded No.1, Best Workplace in India among large organisations for the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times. The concept of Corporate Social Responsibility is deeply ingrained in NTPC's culture. Through its expansive CSR initiatives NTPC strives to develop mutual trust with the communities that surround its power stations. Right from social to developmental work of the community and welfare based dependence to creating greater self reliance; the constant endeavour is to institutionalise social responsibility on various levels.
Consultancy Brochure
The Consultancy Wing of NTPC, with an ISO 9001:2000 accreditation, undertakes all the Consultancy and turnkey project contracts for Domestic and International clients in the different phases of Power plants viz. construction supervision, Project management, FQA, Inspection services, O&M, RLA/R&M of various power utilities. With the string of achievements behind it, NTPC has emerged as the acknowledged leader in engineering, construction, O&M, RLA/R&M and management of power projects. NTPC is registered as a consultant with several leading international development and financial institutions such as The World Bank, The Asian Development Bank, the African Development Bank, and UNDP. NTPC's vast pool of technically qualified and managerial manpower is well supported by excellent infrastructure and knowledge management facilities to deliver the client time bound, qualitative and cost effective solution meeting the global standards. At NTPC, we offer consultancy services related to infrastructure sector business such as:
Fossil fuel based thermal power plants Combined cycle power plants Cogeneration plants Water supply and treatment Environment engineering and management
An entire gamut of services is offered in the areas mentioned above. These are :
Owner's Engineer Services Lender's Engineer Services Environment Engineering and Management Procurement Services Project Management Quality Assurance and Inspection Services Materials Management Construction Management, Erection and Commissioning
Financial Systems and Modeling Operation and Maintenance Restoration, Efficiency Improvement and Renovation and Modernization HRD and Training Research and Development Information Technology Management Consultancy
NTPC as Consultant
As a result of the phenomenal success achieved by NTPC in executing its own power projects, many utilities from India and abroad started approaching NTPC to gain from the rich experience gained by NTPC. With this in view NTPC formally established its Consultancy Wing in 1989. Since then NTPC Consultancy has secured 435 Nos. orders from Domestic & International Clients. Some of the important aspects regarding our capabilities and experience, which place NTPC in a unique and superior position amongst the fraternity of International Consultants, are presented below: International Cell The International Cell offers a wide range of consulting services from concept-till-commissioning of power projects and beyond.
Mission
Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and eco-friendly technologies and contribute to society.
Business Ethics Customer Focus Organisational & Professional Pride Mutual Respect & Trust Innovation & Speed Total Quality for Excellence
Business Ethics Customer Focus Organisational & Professional Pride Mutual Respect & Trust Innovation & Speed Total Quality for Excellence
The key challenges in the context of our values are actualisation and relevance. To actualise our core values and ensure that they remain relevant, we have taken various steps, namely, creating a weightage for values in our Performance Management Systems; Conduct training programmes on values and including sessions on values in our key programmes; Rewarding value based behaviour and creation of Value Actualisation Task force. A Vision & Values Revisit Workshop by our top management is a major component of our core value actualisation. A culture of celebrating achievements and a strong focus on performance are a way of life in NTPC. Performance and achievements are an outcome of constant learning and its application; Performance management; Rewards and recognitions; Provision of opportunities to create and compete; Seeking feedback from employees and genuine interest and concern for employees. NTPC holds pride in its systems for providing a good quality of work-life to its employees. In addition to providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust amongst peers, superiors and subordinates. Away from hectic city life, NTPC townships provide an environment of serenity, natural beauty and close community living. Numerous welfare and recreation facilities including schools, hospitals and club are provided at
township to enhance quality of life and well being of employees and their families. An entire range of employee benefits ranging from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life. NTPC has, from its inception created a culture of rewards and recognitions through celebration of various achievements and events and recognising the contributions of employees/teams behind such success. There are reward schemes for individual and teams excelling in their work right from the stage of project construction to the running of the power station, as well as, awards for special events/ competitions where employees can demonstrate their competence and skills. NTPC also recognises the contribution of employees families through involving them in various events and competitions.
Diversified Growth
NTPCs quest for diversification started with its foray into Hydro Power. It has, since then, been moving towards becoming a highly diversified company through backward, forward and lateral integration. The company is well on its way to becoming an Integrated Power Major, having entered Hydro Power, Coal Mining, Power Trading, Equipment Manufacturing and Power Distribution. NTPC has made long strides in developing its Ash Utilisation business. In its pursuit of diversification, NTPC has also developed strategic alliances and joint ventures with leading national and international companies.
Hydro Power: In order to give impetus to hydro power growth in the country and to have a balanced portfolio of power generation, NTPC entered hydro power business with the 800 MW Koldam hydro project in Himachal Pradesh. Two more projects have also been taken up in Uttarakhand. A wholly owned subsidiary, NTPC Hydro Ltd., is setting up hydro projects of capacities up to 250 MW. Coal Mining: In a major backward integration move to create fuel security, NTPC has ventured into coal mining business with an aim to meet about 20% of its coal requirement from its captive mines by 2017. The Government of India has so far allotted 7 coal blocks to NTPC, including 2 blocks to be developed through joint venture route. Coal Production is likely to start in 2009-10. Power Trading: 'NTPC Vidyut Vyapar Nigam Ltd.' (NVVN), a wholly owned subsidiary was created for trading power leading to optimal utilization of NTPCs assets. It is the second largest power trading company in the country. In order to facilitate power trading in the country, National Power Exchange Ltd., a JV between NTPC, NHPC, PFC and TCS has been formed for operating a Power Exchange. Ash Business: NTPC has focused on the utilization of ash generated by its power stations to convert the challenge of ash disposal into an opportunity. Ash is being used as a raw material input for cement companies and brick manufacturers. NVVN is engaged in the business of Fly Ash export and sale to domestic customers. Joint ventures with
cement companies are being planned to set up cement grinding units in the vicinity of NTPC stations. Power Distribution: NTPC Electric Supply Company Ltd. (NESCL), a wholly owned subsidiary of NTPC, was set up for distribution of power. NESCL is actively engaged in Rajiv Gandhi Gramin Vidyutikaran Yojanaprogramme for rural electrification and also working as 'Advisor cum Consultant' for Ministry of Power for implementation of Accelerated Power Development and Reforms Programme(APDRP) launched by Government of India. Equipment Manufacturing: Enormous growth in power sector necessitates augmentation of power equipment manufacturing capacity. NTPC has formed JVs with BHEL and Bharat Forge Ltd. for power plant equipment manufacturing. NTPC has also acquired stake in Transformers and Electricals Kerela Ltd. (TELK) for manufacturing and repair of transformers.
DIVERSIFICATION To broad-base the business and also to ensure growth, diversification in the areas related to NTPC's core business of power generation such as Hydro power, Distribution, Trading, Coal mining, LNG etc. have been identified as priority areas. A.NUCLEAR POWER GENERATION NTPC is also exploring possibilities to get into the field of Nuclear Power Generation. With this in view, NTPC is proposing to set up a nuclear power plant in Joint Venture with NPCIL. B.BACKWARD INTEGRATION- COAL MINING COAL MINING The policy changes in coal sector provides an opportunity to NTPC to enter captive coal mining business. Production is expected by 2010 in one coal block already allotted (Pakri Barwadih in the state of Jharkhand). Five more blocks (~40MTPA) have been allotted to NTPC, including two in JV with CIL. In addition to development of its own domestic coal mines NTPC is exploring various other options including acquisition of stake in coal mines abroad for sourcing of thermal coal for addressing fuel security concerns.
HR VISION AT NTPC
Human Resource Management Practices at the National thermal Power Corporation (NTPC)
in India
Abstract:
The case discusses the various Human Resource Management (HRM) practices adopted by NTPC, India's largest and the world's sixth largest power generating company. It discusses the framework for human resource development in the company and the way it is linked with the company's overall corporate strategy. It details NTPC's practices relating to recruitment, employee training and development, mentoring, comprehensive benefits and work-life balance. It also describes how NTPC has established a culture of high performance, making the company the second most efficient power generator in the world. The case also explores the payoff arising from good human resource management as seen in the organization's performance.
The case concludes with a discussion on whether NTPC can further optimize its returns by modifying its HRM practices to prepare itself for the future.
Issues:
The human resource management practices of a major Public Sector Undertaking
The need for employee development and the practices adopted by a major PSU toward this end
Employee Relations
Employee relations scenario in NTPC continued to be cordial marked by industrial harmony and mutual trust during the year. The scheme for Employees Participation in Management continued to function successfully all over the Company. The unions and associations and also the individual employees complimented the efforts of the management in developing and sustaining an enabling performance culture in the organisation. There has been continuous interactions between the management and the apex fora of workmen and executives. Safe methods are practiced in all areas of Operations & Maintenance and Construction & Erection activities for the protection of workers against injury and diseases. Occupational safety at workplace is given utmost importance.
HR Practices at NTPC
NTPC's human resource policy has been closely aligned to its corporate vision of becoming one of the world's best power utilities. Its HR vision was formulated with the aim of "enabling the employees to become a family of committed world class professionals thus making the company a learning organization."
Human Resources
People before PLF (Plant Load Factor)' is the guiding philosophy behind the entire gamut of HR policies at NTPC. We are strongly committed to the development and growth of all our employees as individuals and not just as employees. We currently employ approximately 24500 people at NTPC. Competence building, Commitment building, Culture building and Systems building are the four building blocks on which our HR systems are based.
Our HR Vision
"To enable our people to be a family of committed world class professionals."
Recruitment
We believe in the philosophy of 'Grow your own timber'. Our 'Executive Trainee' scheme was introduced in 1977 with the objective of raising a cadre of home grown professionals. First Division Graduate Engineers/ Post graduates are hired through nation-wide open competitive examinations and campus recruitments. Hiring is followed by 52 weeks of fully paid induction training.
Quality of Work-Life
NTPC is proud of its systems for providing a good quality of work-life for its employees. In addition to providing beautiful and safe work places, NTPC encourages a culture of mutual respect and trust amongst peers, superiors and subordinates. Away from hectic city life, NTPC townships provide an environment of serenity, natural beauty and close community living. Numerous welfare and recreation facilities including schools, hospitals and clubs are provided at
the townships to enhance quality of life & the well being of employees and their families. An entire range of benefits, from child care leave to post retirement medical benefits are extended to employees to meet any exigency that may arise in a person's life.
Seeking Feedback
We actively seek and encourage employee feedback to ensure that our HR interventions and practices remain relevant and meaningful. We regularly conduct Employee Satisfaction and Organisational Climate Surveys.
Awards
We derive immense satisfaction from the awards we receive and the resulting recognition they bestow. The awards are key indicators and milestones on our HR journey, and reinforce our HR philosophy and practices. NTPC has been awarded No.1, Best Workplace in India among large organisations for the year 2008, by the Great Places to Work Institute, India Chapter in collaboration with The Economic Times.
INDUCTION
After completing all the recruitment formalities, the trainees report at the Power Management Institute and on joining they will be given a detailed briefing about the training plan. Training Kits, ties/scarves will also be distributed. The training programme will commence with a formal inauguration by the Hon'ble Minister of Power followed by one week of Induction and Orientation module at Corporate Center to acquaint the trainees about the Corporation's aims, objectives, plans and functions of various departments. On completion of Induction and Orientation programme, trainees will be divided in small groups based on the total joined to undergo further training at various Project Training Institutes like Singrauli, Koba, Ramagundam, Farraka, Vindhyachal and PMI which are fully equipped with necessary infrastructure for training.
(ii) Modules specific to individual disciplines 21.0 weeks (iii) Directed-on-job training 15.5 weeks
(A minor variation from the above in the period of modules for HR & Finance)
METHODOLOGY OF TRAINING
Depending upon the module objectives and contents, the methodology consists of: (i) (ii) (iii) (iv) (v) Lecture sessions Group exercises Case studies Site training Workshop
(vi) Practical
(vii)
Project work
EVALUATION SYSTEM
Depending on the type of module and the related instructional techniques, a suitable evaluation will be suggested for every module. The various types of evaluation methods to be used are : (i) (ii) Written test (Objective/Descriptive) Viva Voce
The trainee has to secure a minimum of 50% marks in each of the modules, Mid Term Appraisal and Final Appraisal. If the trainee does not clear the modules (common/specific) in first attempt, one more opportunity will be given for re-appearing in the modules he has failed. If he does not clear even after re-appearing or fails during the Final Appraisal, the training will be extended by a minimum of 3 months.
The feedback of performance will be intimated to the trainees after every module in terms of Grades. The grading system will be as follows : (i) (ii) (iii) (iv) Above 70% 61 to 70% 50 to 60% Below 50% A Grade B Grade C Grade F Grade
The total marks evaluated in the entire training period is 2000 and the broad break-up of these marks under different components are : (i) (ii) (iii) (iv) (v) Common Modules Specific Modules Mid Terms Appraisal DOJ Training Final Appraisal 950 marks 575 marks 150 marks 225 marks 100 marks
Mid Term Appraisal will be conducted after about 6.5 months of the initial training, wherein ETs will be appraised by a Board consisting of GM/AGM and members from OS, Engineering and Projects (HR and Finance for PETs and FETs respectively) to decide their area for Directed on Job Training.
NTPC Foundation
NTPC Foundation has been established by the Company under Indian Trust Act, 1882 for addressing the identified areas of social development at national level through supportive interventions. NTPC Foundation provides loans, training and medical treatment to physically challenged persons and economically weaker sections in a phased manner.
CenPEEP
As a proactive measure to address issues concerning sustainable energy development, your Company had established Center for Power Efficiency and Environmental Protection (CenPEEP) more than a decade ago with the help of US DoE and USAID. CenPEEP took various initiatives for improvement in efficiency and maintenance to achieve sustainable GHG emission reduction from existing thermal power capacities. Methodology of acquisition of state-of- the-art technologies and systems, demonstration in local conditions and widespread dissemination in power sector was adopted through technical assistance of USAID and USDoE. A customized Efficiency Management System has been developed and is under implementation in NTPC plants for sustaining the efficiency improvements.
Encouraged by the success of its efforts in GHG emission reduction, the USAID extended its technical cooperation with CenPEEP for a period of two years up to 2010.
TOPIC
INTRODUCTION:
We know that successful candidate placed on the jobs need training to perform their duties effectively. Workers must be trained to operate machines, reduce scraps and avoid accidents. It is not only the workers who need training supervisors, managers and executives also need to developed in order to enable them to grow and acquire maturity of thought and acyion. Training constitute an ongoing process in any organization. Training could be compared with this metaphor:If miss one meal in a day. Then I will storve to death. The survival of the organization requires development throughout the ranks in order to survive, while training makes the organization more effective and efficient in its day-today operation. As a brief review to terms, training envolves on experts working with learners to ftransfer to them certain areas of knowledge or skill to improve in their current jobs. Development is a broad ongoing multi-faced set of activities (training activities amoung them) to bring someone an organization up to another threshold of performance often to perform same job or new role in the future. It is said , if marketing gives you business, training keeps you in business. Training is an important organization function. It has a major impact on the organization ability to become and stay competitive, it also is the way that employes develop and grow. Training and personal development is an important method for business to improve the performance of employees.
TRAINING CYCLE:
TRAINING CYCLE
DESIGNING AND TESTING TRAINING EVALUATION TOOLS PART-5
Introduction
Training can be described as the acquisition of skills, concepts or attitudes that result in improved performance within the job environment. Training analysis looks at each aspect of an operational domain so that the initial skills, concepts and attitudes of the human elements of a system can be effectively identified and appropriate training can be specified. Training analysis as a process often covers:
Review of current training Task analysis (of new or modified system) Identification of training gap Statement of training requirement Assessment of training options Cost benefit analysis of training options
Training Analysis is most often used as part of the system development process. Due to the close tie between the design of the system and the training required, in most cases it runs alongside the development to capture the training requirements.
Psycho-motor Skills Procedural Skills Knowledge Transfer Communication Skills Attitude Learning Performance Training.
The role of training analysis is to build a formal bridge between the available design data and the training media and training objectives, in order to facilitate the transfer of training elements into the operational environment. For complex multi-user system a user-to-task map is often constructed to present the relationship between the tasks and the identified team structure and also to identify new groups of users that would need to have an understanding of the system. The training gap is assessed by a comparison between the goals and tasks undertaken by the individuals and the existing training. There is a wide variety of training media that can be used, ranging from traditional lecture-based teaching to sophisticated simulators. Different media will be more or less appropriate for different activities. It is necessary to determine the most suitable and cost-effective training media for the different areas. There have been many different approaches defined however the system approach to training has been the most successful. Training Needs Analysis (TNA) is defined as the Identification of training requirements and the most cost effective means of meeting those requirements.
A TNA should always be performed where a major new development in policy, equipment acquisition or procedures is deemed to have potential impact upon the current training regime. TST has considerable experience of successfully employing the accepted techniques applied to the development of training systems, including the Systems Approach to Training (SAT) in both the defence and civilian domains using customer specific standards such as JSP 822 where required. Carrying out all TNA activates in accordance with SAT principles ensures rigorous visibility in each design stage with clear audit trails from the initial Scoping Study through to the recommended solution.
Effectiveness of practice
How well one improves with practice depends on several factors, such as the frequency it is engaged in, and the type of feedback that is available for improvement. If feedback is not appropriate (either from an instructor or from selfreference to an information source), then the practice tends to be ineffective or even detrimental to learning. If a student does not practice often enough, reinforcement fades, and he or she is likely to forget what was learned. Therefore, practice is often scheduled, to ensure enough of it is performed to reach one's training objectives. How much practice is required depends upon the nature of the activity, and upon each individual. Some people improve on a particular activity faster than others. Practice in an instructional setting may be effective if repeated only 1 time (for some simple verbal information) or 3 times (for concepts), or it may be practiced many times before evaluation (a dance movement). Given that practice is merely the reinforcement of actions that serve to generate an outcome or outcomes, it is believed that by improving the type of practice you do, you can in turn generate results at a faster rate.
Author Roberto Moretti has identified five key processes that make for efficient practice, namely:
Identification - building an awareness of what you are practicing to ensure you know how to do it perfectly. Isolation - the selection and focusing on something that is the proper size for one's focus to process and execute with a high degree of perfection. Reinforcement - the action of consistently and continuously repeating the aboveselected action so it becomes autonomous. Integration - the practicing of interrelated actions either one after each other or together to construct and train in more complex actions or sequences of actions. Escalation - consistently selecting new practice material congruent with one's goals in skill acquisition as previous material is mastered.
Practice as maintenance
Skills fade with non-use. The phenomenon is often referred to as being "out of practice". Practice is therefore performed (on a regular basis) to keep skills and abilities honed.
It is amazing how many companies dive straight into a training program without ever understanding the real training needs. These same companies certainly wouldn't start a new business venture without fully understanding the issues, how to get from where they are today to where they want to go and the costs and risks in doing that. Training Needs Analysis (TNA) can made to sound very complex with lots of L&D speak, but fundamentally it is a simple process to qualify why you need to do the training, what business benefits are expected, and what the costs and ROI will be of the program. We would suggest a process that covers the following areas:
Business Needs for the training - what is the business reason for the training. Gap analysis - what do we want to have after the training that we don't have now. What competencies and behaviours can we change to close the gap. See Competency Based Training. Sales team assessment - analysis of their current skills, knowledge, competencies and behaviours. See Sales Force Assessment. Check point - can training really fix these issues or are there other business or organizational issues to fix. Agree training outcomes - What are the objectives and outcomes of the training. How will we measure success. See Measuring Sales Training Success. Choose the appropriate delivery method(s) - develop outline training plan by module and cost the training. This may include inhouse and external training companies. See Training Design. Budget approval/Sign off - report back to the business and get approval to go ahead.
The scale and complexity of each step varies depending on the size of the change expected and associated costs. But we believe even in the most straight forward cases, a small amount of time spent doing this sort of due diligence is time very well spent.
MEANING OF TRAINING
the process that aims to improve knowledge, skills, attitude and/or behavior in a person to accomplish a specific job, task or goal. Training is often focused on business needs and driven by timecritical business skills and knowledge and its goal is often to improve performance.
Training is the formal and systematic modification of behavior through learning which occurs as a result of education, instruction, development and planned experience.
It is important that a business provides training that is consistent with the business strategy. The main steps in development a training strategy are to: Identify the skills and abilities needed by employees. Training is one of many possible approaches to capacity building: a term of ambiguous meaning which might be understood to be any methodology which strengthen an individual or organisations ability to perform will and met its objectives. This capacity can be enhanced through a variety of means including better policy formation by working more transparently with parteners. Through more efficient financial management or through monitoring and coaching support by name by a few.
Weather an organization emert training focuses on human resource development- to enable the training contributes not only the constently improving staff but also because it improves motivation and sense of being valued. This manual does not represent an exhaustive analysis of when, if an how to train its objective to be present in an easy to read format or basic guide to the main prosesses associated with planning, running and evaluating a training session.
PART 1: offers guidelines and tools for exploring the gap between current and
desired performance if present a 5 step guide to carring out a training need analysis (TNA) and offers sugession in which methodology to use in order to conduct your(TNA).
requirement and appropriate methodology and includes a preformatted examples of how a session plan might look an paper.
PART 3: consider the design and development of training material and offers a tips of writing and for the preparation of visual aids.
PART 4: summaries key element of good (and bad) practices in training delivery. It is presented in a do and dont format for ease of referances.
PART 5: provides instruction on the design and testing of evaluation tools and includes a range of tools for training evaluation at different level from reaction to impact on performance.
PART 6: explores the preparation of effective training analisis reports fitting training into the wider organinsation development strategy and suggest the use of pre formatted reports to avoid loose wording and omission of key facts and findings.
Training need analysis guidelines: WHAT IS TNA? A training need analysis or TNA is a systematic exploration of the way things are and the way they should be, these things are usually associated with individual or organization performance. TNA is conducted when an organization has decided ( ideally through a wider OA process). As part of its own policy the training should be provided for its staff member or may be a solution to its problems.
WHY DO ORGANISATION CARRY OUT TNAS? A TNA is starting point for the decision about an intervension or investment in human resources development. TNA is conduct to identify training goals- areas of knowledge and skill that training should accomplish learners in order that they can meet organizational goals( usually in term of performance standard) usually this phase also includes identifying when training should occur and who should atleast as learners. It makes sense to carry out TNA to ensures that costs due to loss of work time are justified it is tempting to overlook. This question of cost. Justification when money provided is done so through a grant making process. However this question of opportunities cost of work time are very serious ones for organization working with vulnerable people in development situation and so should never be dismissed lightly.
HOW IS IT DONE? One methodology is to follow 5 basics steps in carrying out a TNA:STEP ONE:- perform a gap analysis. STEP TWO:- identify priorities and importance. STEP THREE:- identify causes of performance problems and/or opportunities.
STEP FOUR:- identify possible solution and growth and opportuninties. STEP FIVE:- present your findings.
WHAT NEED TO BE IN PLACE? There are some basis supporting factor that will assist the process of conducting a training need assessment with any organinsation and that will also enhance its outcome. Clear organization and/or project objectives. Clear organization and/or project strategies and structure. Accurate job discriptions. Clear standard of performance. Training and development policy and senior level commitment to it. An organization a culture that values learning and does not view training as an:
A STEPWISE APPROACH:STEP 1:- GAAP ANALYSIS:The first step in gap analysis is to check actual organizational performance against objective. There are two part to this:CURRENT SITUATION:Determine the current state of skills knowledge and activities to staff members in the context of organizational goals and constraints (established through organizational assessment). DESIRED SITUATION:This analysis focuses on the necessary job task/standard as well as the skills, knowledge and abilities needed to accomplish theses successfully we must
distinguish in this between actual and perceived needs. We must distinguish in this between actual and perceived needs. The gap between the current and desired situation will identify the organizational development needs. Remember that development need are not necesscerity met by training you will need didtinguish between the gap resulting form OD requirements and the gap that can be filled through training. The essential question to answer is wheather you belive that current problem can be resolved or significantly reduced by training or wheather a broader organisational development response (e.g restricting change in promotion policy etc.) is required. If training appears to offer the solution, then it is important to remember that there may be a number of reasons why training gaps exit or emerge within organizations not of them are negative. There may be problem in the organization due to a lack of knowledge or skill. This may result in delay in completing work frequent errors and report of dissatisfaction under operational procedure or high absenteeism. Impending change such as new prosesses and equipment, outside competition or changes in staff may bring about a need for capacity building through training. Opportunities that might be gained by taking advantages of new technologies, training programmes, consultants or suppliers may present themselves. Failing to respond to opportunities may be lead to low morale. Lack of motivation, high turnover of staff and a general reluctance to take part in planning and decision making. There may be strengths that can be build upon (we should never confine ourselves to reacting to organizational weaknesses alone.) A strong and learning organization constantly recognize new direction and new level of performance that could be achieved. There may be mandated training based on policies as management decisions that required implementations.
It is usually best to use multiple method of taring need asssment to get a hue picture of what is needed. There are several basic need assessment techniques: Looking at the result of previous need assessment. Direct observation in the working environment. Questionnaires. Consultation with persons in key position and/or with specific knowledge. Review of relevant literature. Interviews. Focus groups. Tests Records (employees files or personnel records, job descriptions) and report studies and work samples.
STEP 2:IDENTIFY PRIORITIES AND IMPORTANCE: Once the list of training need has been identified it mut be examined in the light of organisational goals, realities and constraints. We must determine if the needs are real, if they are worth addressing and specify there importance and urgency. For example: Objective:- how much of an impact does the unmet need have upon the individual or organizations ability to meets its objectives? Cost-effectiveness:- how does the cost of the problem compare with the cost of the processed situation? Legal mandates:- are there laws requiring the solution? Executive pressure:- does top management expects a solution? People:- are many or key people involved? Customers/clients/beneficiaries:- what influence is generated by client expectations? STEP-3 Identifying causes of performance problems and/or opportunities:-
This step requires more detailed investigation of people their jobs and the organization to determine Are people doing their jobs effectively? Do they know how to do their jobs? Whether anything has changed recently that might be affecting peoples performance. Whether it is possible to compare best and worst performance to find the difference in what they achieve and their whys to work. At the end of the step you should have developed a strong feel for how the problems you have identified presents themselves and why the problems you have identified exist.
STEP-4 Identifying possible solutions and growth opportunities:If people are not doing their jobs effectively because of a lack of knowledge of skill technicals training may be solution. In these causes a training programmed can be deserved to fill the knowledge skills gap. However, theses may be many either reasons why people are not working effectively-unclear expectations insufficient feedback and lack of incentives or adverse working conditions. These are all management problems that can only be improved by management changes. Appropriate training may help meet these needs for examples through organized participatory change forums however never assumes that training is the solution to underperformance. Broader organizational development activities or strategies involving more than training may provide solutions when the problem within an organization a associated with a need for systematic change over a period of time. These strategies may include facilitated processes such as strategic planning or team building or other interventions such as restructuring. If a decisions has been made to address a gap in performance through training or facilitation further action will be required to define exactly what improved performance would look like performance is often discussed in very general
terms but it helps everyone if you can be as precise as possible as possible about what is expected as an outcome of training. This consideration of the performance outcome of training is almost always overlooked.
STEP-5 Present your findings:Use your collected data in proposing solutions and to provide feedback to everyone who was involved in providing information. This is important if everyone is to buy into any proposed training. You should be able to justify your decision that training for example,is the right solution to the performance gap by reflecting upon the information you gathered during the needs assessment process. Remember to highlight the differences between the costs of not responding to the need with the cost of conducting programmes to change the solution. Findings should include s summary sheet for ease of future references. This summary sheet should include as a minimum. Name of organization for which a TNA was conducted. Name of consultant/assessor/staff members conducting the TNA.
TYPES OF TRAINING
Literacy Training
Skills Training
Refresher Training
Types of
Diversity Training
Training
Crossfunctional Training
Creativity Training
Team Training
Skills Training:- This type of training is most common in organizations. The process here is fairly simple. The need for training in basic skills(such as reading,writing,computing,speaking,listening,problem solving, managing oneself, knowing how to learn, working as part of team, leading others ) is identified through assessment. Specific training objectives are set of training content is developed to meet those objectives. Several methods are available for imparting these basic skills in modern organization (such as lectures, apprenticeship, on the job coaching etc.). Before employing these methods, the manager should: Explain how the training will help the trainees in their job. Relate the training to the trainees goals.
Respect & consider participant responses and use there as resources. Give feedback on progress towards meeting learning objects.
Refresher training:- rapid changes in the technology may focus companies to go in for this kind of training .by organizing short term courses which incorporate the latest developments in a particular field, the company may keep its employee up-to-date & ready to take on the emerging challenges. It is conducted at regular intervals by taking the help of outside consultants who specialize in a particular descriptive.
Cross-functional training:-Cross-functional training involves training employees to perform operations in area other than their assigned job. Cross-functional training provides the following benefits to an organization (& the workers as well). Workers gain such experience in handling diverse; they become more adaptable & versatile. They can better engineer their own career paths. They not only know their jobs well but also understood how others are able to perform under a different set of constraints. A broader perspective increases workers understanding of the business & reduces the need for supervision.
Team training:-Team training covers 2 areas: content tasks & group processes. Content tasks specify the teams goal such as cost control & problem solving. Group processes reflect the way members function as a team for example how they interact with each other, how they participate etc. companies are investing heavy amounts, nowadays, in training new employees listen to each other & to cooperate. They are using outdoor
experienced training techniques to develop team work & team spirit among their employees. The training basically throws light on:-
How they have to cooperate & get ahead. How they should deal with conflictful situation. How they should find their way using collective wisdom & experience to good advantage. Creativity training:- companies like mudra communications,titan industries,wipro encourage their employees to think unconventionally break the rules ,take risks ,go out of the box & device unexpected solutions. In creativity training trainers often focus on three things: Breaking away Generate new ideas Delaying judgments Diversity training:- it considers all of the diverse dimensions in the workplace,race,gender,age,disabilities,lifestyles,culture,education,ideas & backgrounds, while designing a training programme. The programme covers two things: Awareness building which helps employees appreciate the key benefits of diversity. Skill building which offers the knowledge skills & abilities required for working with people having varied backgrounds. Literacy training:- Inability to write, speak & work well with others could often come in the way of discharging duties, especially at the lower levels. Workers in such situation may fail to understand the safety messages, appreciate the importance of sticking to rules & commit avoidable mistakes. Functional literacy may be a serious impediment to a firms productivity & competitiveness. Functional literacy programmes focus on the basic skills required to perform a job adequately & capitalize on most workers motivation to get helping particular areas.
IMPORTANCE OF TRAINING
Optimum utilization of Human Resources:- training helps in optimizing the utilization of human resource that further helps the employee to achieve further organizational goals as well as their individual goals. Development human resources:- training helps to provide an opportunity and broad structure for the development of human resources technical and behavioral skills in an organization. It also helps the employee in attaining personal growth.
Development of skills of employees :- training helps in increasing the job knowledge and skills of employees of each level. It helps to expand the functions of human intellect and an overall personality of the employees. Productivity:- training helps in increasing the productivity of the employees that helps the organization further to achieve its long term goals. Team spirit:- training helps in inculcating the sense of team work ,team spirit and inter team collaborations. It helps in inculcating the zeal to learn, within the employees. Organization culture:- training helps to develiop and improve the organizational health culture within the organization. Organization climate:- training helps building the positive perception and feelings about the leaders,subordinates and peers. Quality:- training helps in improving upon the quality of work and work life.
Healthy work environment:- training helps in creating the healthy working environment. It helps to build good employee relationship so that individual goals align with organizational goal. Health and safety:- training helps in improving the health and safety of the organization thus preventing obsolescence. Morale: - training helps in improving the morale of the work force. Image:- training helps in creating a better corporate image. Profitability:- training leads to improved profitability and more positive attitudes towards profit orientation.
Purpose of training: The aim of training is to help the organization achieve its purpose by adding value to its key resource the people its employee.The purpose of training is to: To increase productivity & quality. To promote versatility & adaptability to new methods. To reduce the number of accidents. To increase job satisfaction displaying itself in lower labour turnover & less absenteeism. To increase efficiency. When does the need for training arise? The installation of new equipment or techniques. A change in working methods or products produced. A realization that performance is inadequate. Labour shortage necessitating the upgrading of some employees. A desire to reduce the amount of scrap and to improve quality. An increase in the number of accidents. Promotion or transfer of individual employees.
Ensures availability of necessary skills and there could be a pool of talent from which to promote from.
Advantages of training: leads to improved profitability and/or more positive attitudes towards profits orientation. Improves the job knowledge and skill at all levels of the organization. Improves the morale of the workforce. Helps people identify with organization goals. Helps create a better corporate image. Fasters automatically openness and trust. Improves the relationship between boss and subordinate. Aids in organizational development. I earns from the trainee. Helps prepare guidelines for work. Aids in understanding and carrying out organisational policies. Provide information for future needs in all areas of the organization. Organization gets more effective decision making and problem solving. Aids in development for promotion from within. Aids in developing leaderships skill, motivation, loyality, better attitude, and other aspects that successful workers and managers usually display. Aids in increasing productivity and/or quality of work. Helps keep costs down in many areas, example: production, personnel, administration etc.
Develops a sense of responsibility to the organization for being competent and knowledgeable. Improves labour management relations. Reduces outside consulting cost by utilizing competent internal consulting.
Disadvantages of training: Can be a financial drain on resources, expensive development and testing, expensive to operate. Often takes people away from their job for varying periods of time. Equips staff to leave for a better job.
Training
Training employees is an essential activity for all organisations. Training provides employees with the key knowledge and skills that they need to perform their job.
Benefits of training
As the business world is continuously changing, organisations will need to provide their employees with training throughout their careers. If they choose not to provide continuous training they will find it difficult to stay ahead of the competition. The other benefit of training is that it will keep your employees motivated. New skills and knowledge can help to reduce boredom. It also demonstrates to the employee that they are valuable enough for the employer to invest in them and their development. Training can be used to create positive attitudes through clarifying the behaviours and attitudes that are expected from the employee. Training can be cost effective, as it is cheaper to train existing employees compared to recruiting new employee with the skills you need. Training can save the organisation money if the training helps the employee to become more efficient.
Induction training
This is training that an employee will receive when they first join an organisation or begin a new role. This type of training is designed to provide the employee with the essential skills needed to perform their job. Induction training can also include an introduction to the company ethos, values and culture so that the employee is aware of the behaviours expected of them.
The employee being guided through a task or process by a colleague or supervisor, so that the employee knows how to perform the task and to what standard. Shadowing, spending time with an expert so that the employee can observe how the expert performs their daily duties. Observations, the employee is observed whilst they perform their duties. At the end of the observation, the observer will provide the employee with feedback on their performance. Coaching, the employee will learn new skills (not knowledge) and have the opportunity to practice the skills with the coach before using the skills in the workplace. An effective coach will review the employees performance to ensure that the employee uses the newly learnt skills until they become habit. Mentoring, the employee is partnered with an experienced employee so that they can discuss performance. The experienced person is known as the mentor and the employee they are partnered with we will call the mentoree. The mentoree will discuss their performance and problems with the mentor.
organization will again benefit in terms of increased productivity, new business maybe and reduction in costs. If the employee is a front line staff, all the more trainings should be provided by the organization. This will empower the staff with the right skills and mindset. Also, the trainings will help the employee be right on top of the job and deliver excellent service. For the organization, this would mean happy and satisfied customer. This you can read as repeat customers and referrals to friends and families. Hence, the amount of business you get through the excellent service by your employee, as a result of the training the organization provided would be up. Training and Development team should be a vital part of any organization in order to facilitate the growth of the organization. The benefits of trainings and the costs savings associated with training outweigh the initial cost incurred. Training is one of the most important parts of an organization's overall Strategy. Before starting a particular venture or considering a potential acquisition, the first question arises that, whether there are required skills present in the organization or not. Typically all key skills required for efficient management of a company must be available in a company; however other non core activities can be outsourced. Need of training arises due to advancement in technology, need for improving performance or as part of professional development. Benefits of training are intangible and investing in training benefits both, organization and employees for a long period. Training enhances a worker level of skills. It provides sense of satisfaction, which is an intrinsic motivator. Training also provides organization multi skill employees. Training increases an employer commitment to their job and their organization. Better understanding of jobs reduces accidents. One of the most important benefits of training for an organization is that, it provides skills inside the organization which reduces overall cost of an organization's operations. Quality is one of the key features required for survival of an organization in long term. Total Quality Management (TQM) and other quality management techniques require staff training as an important requisite for its successful implementation. Customer satisfaction increases repeat business, which is a key to success. By training employees for promoting good customer relations
will increase customer satisfaction and quality of service. Just-in time philosophy is one of the leading ideas in Japan.JIT emphasize on reduction in waste and waiting time in production process. Better training will reduce waste and machine down time. A major portion of quality costs consists of supervision; by providing proper training this is reduced. Training increases productivity of employees and processes. High employee turnover may be a serious threat to an organization existence, major benefit of training is that it reduces staff turnover and help an organization to retain its staff. Better training can provide an organization competitive advantage over others in industry. In service industries the main source of an organization income is its staff expertise and skills, acquiring professional with high skills is comparatively expensive than training current employees to acquire those skills. Training is also a key requirement for new recruits; proper training helps them to understand the job, its requirements and responsibilities. Training also increases understanding of the organizational culture. Training programs increases communication between different levels of an organization. Any deficiency in processes and jobs are eliminated and those close to production processes become involve in the management. Staff empowerment is a recent trend in management; such empowerment will only be successful when proper training is provided to those empowered.
There are three types of training need analysis : organizational need analysis, job need analysis, and person need analysis.
often referred to as job needs analysis. In this situation, the analysis method used should include questions specifically designed to assess the competencies needed to perform the job.
particular unit seem to be particularly dissatisfied compared with other customers, training may be needed in that unit. Thus, customer surveys can serve a dual role: providing information to management about service and pinpointing employee deficiencies.
Overview of Training
The first step in designing a training and development program is to conduct a needs assessment. The assessment begins with a "need" which can be identified in several ways but is generally described as a gap between what is currently in place and what is needed, now and in the future. Gaps can include discrepancies/differences between: What the organization expects to happen and what actually happens. Current and desired job performance. Existing and desired competencies and skills.
A needs assessment can also be used to assist with: Competencies and performance of work teams. Problem solving or productivity issues. The need to prepare for and respond to future changes in the organization or job duties.
The results of the needs assessment allows the training manager to set the training objectives by answering two very basic questions: who, if anyone, needs training and what training is needed. Sometimes training is not the solution. Some performance gaps can be reduced or eliminated through other management solutions such as communicating expectations, providing a supportive work environment, arranging consequences, removing obstacles and checking job fit.
Once the needs assessment is completed and training objectives are clearly identified, the design phase of the training and development process is initiated: Select the internal or external person or resource to design and develop the training. Select and design the program content. Select the techniques used to facilitate learning (lecture, role play, simulation, etc.). Select the appropriate setting (on the job, classroom, etc.). Select the materials to be used in delivering the training (work books, videos, etc.). Identify and train instructors (if internal).
After completing the design phase, the training is ready for implementation: Schedule classes, facilities and participants. Schedule instructors to teach. Prepare materials and deliver them to scheduled locations. Conduct the training.
The final phase in the training and development program is evaluation of the program to determine whether the training objectives were met. The evaluation process includes determining participant reaction to the training program, how much participants learned and how well the participants transfer the training back on the job. The information gathered from the training evaluation is then included in the next cycle of training needs assessment. It is important to note that the training needs assessment, training
objectives, design, implementation and evaluation process is a continual process for the organization. Needs assessment:-There are three levels of needs assessment: 1)Organizational analysis,2)task analysis,3)individual analysis. Organizational analysis looks at the effectiveness of the organization and determines where training is needed and under what conditions it will be conducted.
The organizational analysis should identify: Environmental impacts (new laws such as ADA, FMLA, OSHA, etc.). State of the economy and the impact on operating costs. Changing work force demographics and the need to address cultural or language barriers. Changing technology and automation. Increasing global/world market places. Political trends such as sexual harassment and workplace violence. Organizational goals (how effective is the organization in meetings its goals), resources available (money, facilities; materials on hand and current, available expertise within the organization). Climate and support for training (top management support, employee willingness to participate, responsibility for outcomes). The information needed to conduct an organizational analysis can be obtained from a variety of sources including: Organizational goals and objectives, mission statements, strategic plans. Staffing inventory, succession planning, long and short term staffing needs. Skills inventory: both currently available and short and long term needs, organizational climate indices: labor/management relationships, grievances, turnover rates, absenteeism, suggestions, productivity, accidents, short term sickness,
observations of employee behavior, attitude surveys, customer complaints. Analysis of efficiency indices: costs of labor, costs of materials, quality of products, equipment utilization, production rates, costs of distribution, waste, down time, late deliveries, repairs. Changes in equipment, technology or automation. Annual report. Plans for reorganization or job restructuring. Audit exceptions; reward systems. Planning systems. Delegation and control systems. Employee attitudes and satisfaction.
Task analysis provides data about a job or a group of jobs and the knowledge, skills, attitudes and abilities needed to achieve optimum performance. There are a variety of sources for collecting data for a task analysis: Job description-- A narrative statement of the major activities involved in performing the job and the conditions under which these activities are performed. If an accurate job description is not available or is out of date, one should be prepared using job analysis techniques.
KSA analysis-- A more detailed list of specified tasks for each job including Knowledge, Skills, Attitudes and Abilities required of incumbents. Performance standards-- Objectives of the tasks of the job and the standards by which they will be judged. This is needed to identify performance discrepancies. Observe the job/sample the work. Perform the job. Job inventory questionnaire-- Evaluate tasks in terms of importance and time spent performing. Review literature about the job-- Research the "best practices" from other companies, review professional journals. Ask questions about the job-- Of the incumbents, of the supervisor, of upper management. Analysis of operating problems-- Down time, waste, repairs, late deliveries, quality control.
Individual analysis analyzes how well the individual employee is doing the job and determines which employees need training and what kind. Sources of information available for a individual analysis include: Performance evaluation -- Identifies weaknesses and areas of improvement. Performance problems -- Productivity, absenteeism or tardiness, accidents, grievances, waste, product quality, down time, repairs, equipment utilization, customer complaints.
Observation -- Observe both behavior and the results of the behavior. Work samples -- Observe products generated. Interviews -- Talk to manager, supervisor and employee. Ask employee about what he/she believes he/she needs to learn. Questionnaires -- Written form of the interview, tests, must measure job-related qualities such as job knowledge and skills. Attitude surveys -- Measures morale, motivation, satisfaction. Checklists or training progress charts -- Up-to-date listing of current skills. Results of the Needs Assessment Assuming that the needs assessment identifies more than one training need, the training manager, working with management, prioritizes the training based on the urgency of the need (timeliness), the extent of the need (how many employees need to be trained) and the resources available. Based on this information, the training manager can develop the instructional objectives for the training and development program. All three levels of needs analysis are interrelated and the data collected from each level is critical to a thorough and effective needs assessment.
Provide indicators of knowledge, skill and attitude transfer from the classroom to the workplace Provide vital information that can be used to identify positive outcomes of training in the workplace Improve training design and delivery Implement workplace practices that will enhance the impact of training
The TIA process has been designed so that specially trained assessors within firms can administer it themselves, but we will provide consultation and advice to help firms tailor the process to their specific needs.
increase productivity and quality of work increase profits reduce staff turnover and absenteeism improve customer satisfaction improve motivation
For more information on the benefits of training see our guide on how to improve the performance of your staff. Training that achieves these results is typically:
linked to business goals and performance part of a company-wide strategy focused on setting tangible objectives for employees part of a company policy, which sets out who is responsible for planning, implementing and evaluating training
By choosing the right type of training, you can make sure that your employees have the right skills for your business, and are kept up to date with best and new practices. This is applicable for all employees, right up to management level. For more information about training managers, see our guides on skills and training for directors and owners and how to develop your management team. Investors in People Investors in People offers a standard of good practice in training. This is based on the three principles of:
do - taking action to improve the performance of the organisation review - evaluating the impact on the performance of the organisation
The Investors in People Standard is a business improvement tool designed to advance an organisation's performance through its people by matching what people can do and are motivated to do, with what the organisation needs them to do. Businesses of any size or sector can easily align the framework with their existing business planning model. Through this model, organisations are encouraged to work towards continuous improvement.
A "training needs assessment", or "training needs analysis", is the systematic method of determining if a training need exists and if it does, what training is required to fill the gap between the standard and the actual performance of the employee. Therefore, training needs analysis is performance discrepancies
or evaluation of training
OPERATIONAL ANALYSIS
o
Job analysis
PERSON ANALYSIS
o
Performance data
Performance appraisal
Performance appraisal can significantly help in identifying the training needs of the employees. Performance appraisal helps to reveal the differences and discrepancies in the desired and the actual performance of the employees. The causes of the discrepancies are also found whether they are due to the lack of adequate training or not. The employee can also tell about his training requirements (if any) in his self appraisal. A performance appraisal after the training program can also help in judging the effectiveness of the program.
Learners can focus more easily on what is important to their actual workplace performance. Learning objectives form a solid basis for sequencing and chunking program content and activities. Participants' managers can be assured that training addresses actual organizational goals. Learning objectives determine the relevance of program design features and content, allowing trainers to weed out easily what are just peripheral sideshows.
Trainers can better focus on the key deliverables of the training program, without being too sidetracked to the detriment of the program. Learning objectives allow learner tests to be checked for relevance and completeness.
The writing of well-specified learning objectives plays a central role in any training program. Formulating and documenting such objectives serves to guide the activities of all of the people involved in its development and delivery; course designers and developers, participants' managers, trainers and the learners themselves.
Specific
Step 2: Determine On-the-Job Behaviors In this next step, determine what behaviors participants must demonstrate back in the workplace following the training for the organization's objectives to be achieved. To do this effectively, ensure that your behavior statements:
are directly linked to the organization's objective, contain active verbs, and refer to actions that are publicly observable.
To stay in touch with reality, gather a cross section of stakeholders to thrash out what behaviors are really required. At the least, invite client managers, subject matter experts and prospective training participants. At this stage, you will need to work hard to make sure that stakeholders stick with what participants are required to do back on the job, and not what they will need to know. Step 3: Write Learning Objectives Only now that you and the organization are clear on business objectives and workplace behaviors are you ready to actually write the learning objectives. Translate the behavior statements formulated in the previous step into learning objective statements of the form: At the conclusion of XYZ program, participants should be able to: anticipate consider create Make sure that the learning objectives are learner centered and not centered on what the trainer or program will do or provide or cover. Now add the standard to which training participants are expected to perform back on the job. A racing car driver, for example, is expected to drive at a higher skill level than an ordinary road user. Also now add the working environment that the participants are expected to perform within and their available resources back on the job. Will they work
autonomously or within a team? Will they have access to user manuals, or will they be expected to remember the process steps? These now constitute the terminal learning objectives - the highest-level outcomes specified for the entire training program. Many of your programs will span several modules or sessions. For each of these discrete components, now formulate enabling learning objectives. To do this, think about what it is the training participant will need to learn to be able to satisfy each terminal objective. For each enabling learning objective, make sure you consider each of Bloom's three learning domains: 1. cognitive 2. affective 3. psychomotor - includes knowledge, beliefs and reasoning, - includes values, feelings, attitudes and motivation, and - includes physical movement and coordination.
Once again, make sure that you use active verbs to describe the outcomes. By writing learning objectives that are both meaningful and practical, you will enhance your credibility with your clients and improve your effectiveness as a training designer.
Identify training gaps within your organisation Prioritise your training needs Implement effective training solutions Empower your workforce
Perform a "gap" analysis to identify the current skills, knowledge, and abilities of your people, and the organizational and personal needs for HRD activities Identify your priorities and importance of possible activities Identify the causes of your performance problems and/or opportunities Identify possible solutions and growth opportunities.
and finally:
Compare the consequences if the program is or is not implemented Generate and communicate your recommendations for training and development, organization development, career development, and/or other interventions
Conclusion
Working on this project was an enriching experience. I worked on TRAINING NEEDS ANALYSIS AND ITS IMPACT through which I learned more and more about training needs and its importance and how it is implemented at NTPC,regional head quarters. As per the findings and analysis of my project in NTPC, training is an important aspect of professionalization of our jobs. There is no doubt that training can do a lot for development of its personnel. It is an integral part of the HRD. Training sharpens executives knowledge with the object of strengthening & profit maximization of the organization. The employee attended training programme of the company and were also benefitted by it in terms that their performance increased ,also almost 70% of the employees found changes in productivity i.e. they gained more professional knowledge . We can therefore say that training programs are not only beneficial for the company but also for the employees working and personal life.
BIBLIOGRAPHY
Books referred: C.R. Kothari Research Methodology K . Aswathappa , HRM, (Tata Mc Graw Hill),HR and PM , 2003,3rd Edition Robbin S.P. Organizational Behaviour (Pearson Education , 2003, 10th Edition) V.S.P Rao Human Resources Development