Presented By:

Advait Bhobe

Anshu Lakra

Chnadrashekhar Jindal

Debjani Barua

Krishnaprasath

Maniratna

Sandeep Agrahari

ShaliBhadra Jain

Sharad Gupta

NTPC

Advait Bhobe

National Thermal Power CorporationWas set up in the year 1975 to augment the power generated by

the State Electricity board (SEBs).Establishment objective of NTPC is to cover the gap between

the demand & Supply of power in the country.NTPC is 6th largest in terms of thermal power generation &

second most efficient in capacity utilization among the thermal utilities in the world.

Introduction of NTPC Company

“To be the world’s largest and best power producer, powering India’s growth.”

“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.” 

Vision & Mission

B -Business EthicsE -Environmentally & Economically SustainableC -Customer FocusO -Organisational & Professional PrideM -Mutual Respect & TrustM -Motivating Self & othersI -Innovation & SpeedT -Total Quality for ExcellenceT -Transparent & Respected OrganisationE -EnterprisingD -Devoted

Core Values – BE COMMITTED

In the year 1991, the Indian Economy witnessed two major trends, that of liberalization & privatization.

Financial crisis in 1991They converted this threat to opportunity by improving

their performance and capacities In the year 1994, NTPC set up the Centre for Power

Efficiency & Environment Protection with the assistance of the US Agency for the International Development & with active involvement of the US Department of Energy.

The aim was to achieve improved efficiency of coal- based thermal power plants through technology & practices.

History

In July 1997, the Government conferred the status of a Navratna on NTPC.

In July 2003, the company launched a complete organizational transformation exercise named “ Project DISHA.”

In October 2004, NTPC made an initial public offer of 432.915 million equity shares.

The issue was oversubscribed by 13.14 times.Share holding pattern

Contd…

Parties % share of Equity

Government 84.5%

General public 3.9%

Other (FII, Banks etc) 11.6%

Total 100%

Within the span of 33 years , NTPC has emerged as a true national power company with a power generating capacity in all major regions of the country.

NTPC’S core business is engineering, construction & operation of power generating plant.

It also provides consultancy in the area power plant constructions & power generation in India & abroad.

Debjani and Anshu

HR POLICIES OF NTPC

NTPC follows “People First Approach”.Follows “Lifetime employment policy” as a

PSU. It has formulated an integrated HR strategy

which rests on four building blocks of HR viz. 1.Competence building

2.Commitment building 3.Culture building 4.Systems building

RECRUITMENT

PERFORMANCE APPRAISAL

EMPLOYEES WELFARE,HEALTH AND SOCIAL SECURITY

HR function in NTPC

The selection process involves three stages: Written test Group discussion Interview

Mainly entry level recruitment and very few lateral recruitments.

 Preference given to engineers. Around 80% of NTPC’s executives are engineers.

 Do not usually hire from premier institutes like Indian Institute of Technology (IIT’s) and Indian Institute of Management (IIM’s)

Preferred to take candidates from National Institute of Technology (NITs) during campus recruitments because this allowed the company the freedom to mould these engineers to fit its own culture.

RECRUITMENT

Highest budget allocated in the industry.Minimum seven man days (56 hours) training per

employee per year.Tie ups with reputed Institutions.Company established a training institute called the Power

Management Institute (PMI) at Noida, New Delhi in 1994.The company identified the following areas as its focus

for training:a) change managementb) quality managementc) continuous performance improvement

Training and Development

Conducted leadership development programs for its executive directors and general managers.

Company also run technical training centers at all its 20plants. They were called Employee Development Centers (EDCs).

The company has two Simulation Training Institutes at Korba in Chattisgarh, and at Kawas in Gujarat.

Till the early 1990s, NTPC had operated through a system of Confidential Reports(CRs).

NTPC created a performance-driven work culture, full of challenge for its employees, through the use of benchmarking.

 Modified its appraisal system to adopt a 360 degree feedback system based on Key Result Areas(KRAs).

Below par performers were sent for remedial training and if performance still didn’t improve, they were moved to less important roles. At last if there was no hope of improvement, the company asked the employee to opt for its Voluntary Retirement Scheme (VRS).

PERFORMANCE APPRAISAL

Educational, medical and recreational opportunities for employees and their family members.

In Remote locations company take care of education of employees’ children.

Social Security on Superannuation

a) Employees Provident Fund b) Gratuity c) Employees Voluntary Benevolent Fund) Self Contributory Pension Schemee) Post Retirement Health scheme

EMPLOYEES WELFARE, HEALTH & SOCIAL SECURITY

Education a) >45 schools in various projects imparting quality education to

45000 odd children. Workers’ Education Scheme

a) Regular up skilling Children’s Education Scheme

a) Reimbursement/ scholarship/ award/ coaching policy b) Initiative for total development

Physically Challenged People a) Employment opportunities b) Facilities for physically challenged people c) Provision of medical equipments d) Holding of medical camps e) Launching inclusive education in schools

Women empowermenta) Policy on sexual harassmentb) Maternity leave

Paternity leave Canteen and transport facilities In-house project hospitals -17 Beds-700 Empanelled Hospitals-58 Safety measures

c) Delineation of safety policyd) Detailed safety manualse) Disaster managementf) Mock drillsg) Regular inspections h) Safety training

NTPC believed that “participation and participatory culture make employees own their work and result in tremendous synergy.”

Some of their Employee Participation Management programmes are:

 EMPLOYEES PARTICIPATION (EPM)

NTPC Open Competition for Executive Talent (NOCET)

Horizon

Suggestion Schemes

Bipartite Forums

Professional Circles

Quality Circles

Safety Circles

EMPLOYEE PRODUCTIVITY

“People First” philosophyFreedom with responsibilityExcellent training and development focussing

on continuous development.Strict deadlines with numerous measures to

assess project performance.Great level of commitment among employees.Sense of security to the employeesKnowledge sharing & development through

various HR initiatives.

RECIPE OF SUCCESS

Maniratna and Sandeep

Was It In The Genes??

Established a fast growing systems oriented National Thermal Power Corporation (NTPC)

ENERTIA Awards 2010 conferred Life Time Achievement Award on Dr. Kapur for his contribution to the Power and Energy Sector and for his leadership in the fledgling NTPC

He was described as a Model Manager by the Board of Executive Directors of World Bank.

"Our guiding principle has always been ‘people before PLF (Plant Load Factor)',"

Dr. D.V. Kapur. Founding CMD

1996 the company under the leadership of R.S. Sharma, C.P. Jain and S.P. Singh NTPC drew up the ambitious corporate plan for 1997-2012

As the company improved its business, the management realized the need to revise its vision statement & core value (2000).

As NTPC started entering the world business in 2004, the corporate plan was redrafted for 2002-2017 in light of the new challenges.

Director(HR) S.P. Singh received the received HR Leadership Award 2012– an award that recognizes and honors companies as well as Individuals who, through their corporate practices, have helped to raise India’s corporate disclosure standards and corporate governance.

CMD, Arup Roy Choudhury - "I don't think humans are resources like machine or material in any organization. Human beings are dynamic and they are to be managed individually, that's what leadership is all about.“

Ex-CMD,R.S. Sharma - The management at NTPC acknowledges the fact that employees have higher ownership in decisions that are taken in consultation with them.

R.S. Sharma – a firm believer of aligning people goal with organizational goals.

Starting from 1982, NTPC’s success so far has largely been driven by the contribution by its people.

Being a great workplace is a prerequisite for sustained business success.

R.S. Sharma believed that leaders play a pivotal role in building a culture of engagement and retention.

R.S. Sharma has been conferred the Leadership Award for Sectoral Excellence in the Power Industry for his outstanding contribution to the growth of Indian Business and bringing glory to the country through his pioneering leadership (2008).

Arup Roy Choudhury, CMD, received a trophy Most Admired Company by Hay to mark the appreciation of best practices that NTPC has instituted over the years.

A.R. Choudhury-“HR today is moving from the role of a facilitator to a strategic business partner.”

S P Singh, director (HR), NTPC says the company intends to keep pace with the aspirations of its people and provide the best facilities, wherever possible.

NTPC has been awarded for its innovativeness, depth and quality of top management, ethics, transparency, quality of product/ services, people practices, global competitiveness, financial performance and return to shareholders.

SURVIVING THE IT-BOOM

1996To analyze the organization structure & make it responsive to future needs. Internal customer service, corporation and team playing.Sensitivity to feedback, learning & renewal

2000To be one of the world’s largest and best power utilities, powering India’s

growthOrganizational prideCustomer focus Initiative and speed Innovation

Flexible Corporate Plan

2004To enhance commitment of employees by recognizing and

rewarding high performanceTo build and sustain a learning organization of competent

world class professionals

Trust , Respect & Bonding….

Employee motivation is not purely monetary.An organization is as good as its peopleHuman capital remains a corporate entity’s most valuable

asset.Since inception NTPC has engraved this line of thinking in

letter and spirits, and has placed employee welfare at the very top of their corporate agenda.

Recognized the need to make their employees and their families to feel secure and feel at home.

Single mindedly committed themselves to the task of sharing and caring which began from the basic – housing, education, healthcare, social recreation, garden, parks and shopping centre.

Allowing young talents nurture their hobbies.Targets are set by Top-Down approach.

NTPC Understood

NTPC entered Hydro sector and plans to enter nuclear power soon. To match its growth plans, the company needed to have uniform processes throughout the organization , irrespective of the location and area it belongs to, providing seamless integration among all its processes with one view of the company as a whole.

The then Organizational Structure was a Hybrid of Functional & Geographical Structures.

2003 Based on Recommendations of Consulting Firm AT Kearney

Project Disha

To achieve this, NTPC started 'Project Disha – Organizational Transformation' which aimed at implementing SAP at its all locations.

Comprehensive organisation transformation project with a view to positioning the NTPC as a globally comparable utility, aligned with global best practices in various areas of its processes and functions.

All major functions of NTPC such as Planning, Project Mgmt, vendor mgmt; financial accounting; invoicing etc, are done through this.

The project aims at shortening cycle time, procurement lead time, realization cycle, account closure time, etc.

It is also expected to provide better mgmt and mobilization of diversified workforce and online visibility of status on sales, inventory, receivables with improved search facility.

Focussed on important areas, such as core business strategy, portfolio diversification, globalisation, services business model, IT strategy etc.

To ensure that implementation works smoothly at all locations NTPC deployed MPLS-VPN through BSNL.

During implementation, change management and user training were the two major challenges faced.

Disha led to use of standardized processes throughout NTPC with seamless integration.

It has also resulted in effective use of manpower.

As part of Disha, implementing an enterprise resource-planning (ERP) project called Lakshya.

Enterprise Resource Planning (ERP) :. The ERP initiative helped increased efficiency, quicken response to stakeholders’ demands and flexibility as well as transparency of decisions

The ERP initiative is likely to impart a cutting edge to the company in terms of increased efficiency, quicker response to stakeholders' demands, flexibility and transparency.

LAKSHYA

Shalibhadra & Chandrashekhar

NTPC vs BHEL vs TATA Power

Rank in best place to workYear NTPC BHEL TATA

POWER2004 3 In top 100 In top 200

2012 3 In top 200 not even in top 200

Maintained rank even with emergence of service sector who are more employees centric.

Number 1 in PSU company. ‘Significant Achievement in HR

Excellence’ at prestigious CII National HR Excellence Award-2011.

NTPC ranked 19th by the GPTW (great place to work) for 2011 amongst 25 top Best Companies in India

NTPC wins Star TV Talent Leadership and HR Award

Great Places to Work Award 2010 NCPEDP-Shell Helen Keller Award 2009

Awards won by NTPC

Tata Power awarded Certificate of Merit for its CSR initiatives by Singapore based The Pinnacle Group International and Malaysia based OWW Consulting. July 2010.

Awards won by Tata Power

BHEL wins Top Honours for Recruitment Practices at the prestigious World HRD Congress.

BHEL wins India Pride Award for Excellence in Heavy Industries 2012-13

Awards won by BHEL

Attrition rate at NTPC

Year Attrition rate

1993-94 1.41%

1995-96 2.31%

1997-98 1.28%

1999-2000 0.67%

2001-02 0.24%

2003-04 0.17%

2011-12 0.27%

Comparison with competitor

Company Attrition rate

NTPC 0.27%

BHEL 0.4%

TATA power 3-4%

Industry average (power)

4-5%

Company 2012 2011 2010 2009 2008

NTPC (employee cost) 3,090.48 3,395.27 2,946.80 2,897.60 2,229.30

No. of employee 24,011 23,797 23,567 23,534 23,640

Average expenses per employee

12,87,110

14,26,763

12,50,392

12,31,239

9,43,020

BHEL (employee cost) 5,465.83 5,396.71 6,449.17 2,991.27 2,602.30

No. of employees 48,000 47000 46,274 49,390 45,000

Average expense per employee

11,38,714

11,48,236

13,93,690

6,05,642

5,78,288

TATA Power (employee cost)

569.69 341.12 305.29 291.90 249.69

No. of employee 4000 3900 3809 3600 3285

Average expense per employee

14,24,225

8,74,666

8,01,496

8,10,833

7,60,091

Some figures

Company Revenues (in crore)

Average sales per employee

per annum

NTPC 62,480.88 26 million

BHEL 50,260.81 10 million

TATA Power 8,585.72 21 million

Average Revenues per employee

Sangeeta Kaushik, Deputy General Manager (Corporate Planning), NTPC

She joined NTPC in 1986 as a fresh engineer.At that time NTPC was 11 years old with capacity of 4000 MW.Today NTPC has capacity of 36000 MW But Kaushik also grew with the company, Now she is 50 and at

manager level. She is also doing finance management of projects.

There are many Kaushiks in NTPC's workforce of around 24,000. “Guiding principle of NTPC has always been ‘people before PLF (Plant Load Factor)’“

"The maximum attrition rate is at the fresher's level. A person who stays for one year stays forever," says Ashok Swarup, DGM (HR).

Employee engagement and development

Sharad

Problems faced by NTPCNTPC has faced poaching of staff at the

senior management level by private sector companies.

At the entry level, the salaries offered in a public sector are higher than what the private sector offers, but as you go up, the slope starts becoming steeper in private sector unlike what we (PSUs) offer

At the entry level, attrition is seen to be lower in PSUs because they make huge investments on training these employees and offer better packages than the private firms. The problem arises at the middle-level. It is at this level that the career reaches a plateau, and salary is lower than in private sector.

NTPC has policy of recruiting at entry level and nurturing the employee and promoting him/her based on performance/seniority.

If attrition happens at mid/senior level, the employee leaves with too much knowledge and skills and the void created by him is very difficult to replace.

PSUs don’t have “Hire and Fire” policy.Even if an employee is not performing well,

the company cannot fire the employee. He might be moved to less important roles or asked for VRS.

Though the employee is not promoted, he reaps the same benefits and costs more to the company than he is actually worth.

The company has performance based promotion scheme.

A senior employee might not be promoted and an employee junior to him might surpass him in the level of hierarchy.

Obviously this will cause resentment in the senior employee.

It is difficult for the HR to keep them motivated and make them attend remedial programmes.

Many of the NTPC plants are in rural or semi-urban areas.

Private sectors jobs are mostly in metros.Many people are more attracted towards

glamorous lifestyle of metros rather than simple and inadequate life of villages and towns.

So many qualified people do not wish to join NTPC for this reason, which makes recruitment process a little harder.

Even if an employee joins at the metro branches of NTPC, a need may arise that he/she has to a plant which is in rural areas.

It is very difficult to motivate employees to go to these areas.

There is no “Fast track” program in NTPC.NTPC prefers more stabilized career policy.Thus it fails to attract freshers/young people

who are extremely talented and want to clib the ladder of success very fast.

Female to male ratio is very skewed in NTPC.Women have low attrition rate.Also, women are proved to be better

managers than men.By not having enough women employees,

NTPC is missing on the perspectives of them, which will definitely help the company perform better.

Key Challenges faced by NTPC

Attracting Fresh TalentWith the potential pool of recruits sufficiently large, the

challenge is in attracting the young graduates to the power sector and providing them adequate training.

The Power Sector needs to find ways of attracting well qualified manpower.

The industry also suffers from a negative image of being heavily bureaucratic with limited opportunities for growth.

Training and development infrastructurelack of sufficient training infrastructure would hinder optimal

utilization of the existing talent base as well inducting new talent

Creativeness and Innovativeness is caged due to stringent hierarchy levels

• In 2006-07, the corporation had lost 165 employees mostly to the private sector, and about 100 qualified engineers have left the corporation.

• In 2007, NTPC lost 74 executives in 4 months• Official Reason: - NTPC executives who quit were

looking for greener pastures in the private sector.• There have been strong differences on various project

and business issues between the executives and NTPC chairman & managing director T Shankaralingam

• The attrition rate of the executives during 2007-08 was 3.1 per cent as compared to 0.17% per cent in 2004.

• Not possible to match the high packages and perks being offered by the private sector.

• NTPC’s engineer was hired by one of the private sector power utilities, at a package of Rs 72 lakhs

• Recruitment and retaining engineering trainees is also not as smooth as it was before, as many such young engineers prefer an urban lifestyle, easily available with IT and telecom.

Controversies

Fuels controversy:• NTPC claimed that it was the world’s second

most efficient thermal power producer • Company officials admitted that they had

juxtaposed the emission data for 2005-06 with the generation data of 2007-08 to arrive resulted in an artificially low carbon intensity

• Report by Washington-based Centre for Global Development (CGD) said NTPC was the world’s third-largest polluting power producer.

Lanco Infratech, NTPC deny fraud claims:• Govt to order inquiry into CSE allegation that Lanco Infratech

Ltd broke rules to win projects in excess of its entitlement• NTPC Vidyut Vyapar Nigam Ltd (NVVN), a unit of state-run

NTPC Ltd, was the nodal agency for the award of the projects.• Lanco grabbed no less than nine projects worth 235 MW.”

KP

Managing the HR Challenges

Growing trend of senior joining the private sector right after leaving the organization.

All CMDs, MDs and functional directors of CPSEs - to sign bonds for a one-year cooling-off period after retirement / resignation

Joining private firms in the same line of business / private companies with which they have had business dealings during the cooling-off period will attract a penalty equivalent to the basic pay drawn during the last six months along with interest or Rs 10 lakh penalty, whichever is higher

Exemption could be given only with the permission of the government.

The government had to ensure that he also had no official dealings with the prospective employer for the past five years.

 Post approval for someone to join a private firm, it had to ensure that the individual would not have any liaison or contact with government departments or PSUs in his new capacity.

Penalty on executives joining Private Organizations after leaving NTPC

Service Agreement Bond

The selected entry level Executive trainees are required to execute a service agreement bond of Rs. 2,50,000/- to serve the company for at least 3 years after successful completion of the training.

NTPC huge investments on training the employees and offer better packages than the private firms at entry level

The movement from a public to a private sector entity at the middle to senior management level is due to the wide gap in salaries offered to senior executives in a public sector against the private sector counterparts.

Staff Retention Policy

‘Parinay’, NTPC 's intranet site aimed at promoting matrimonial alliances

To stem Attrition and encourage staff to serve in remote areas

This is to facilitate new executives within the NTPC family and also those employees whose children are of marriageable age. The site is on the lines of social networking and matrimonial sites but is only meant for NTPC’s employees

28 remote project sites. Apart from work they have limited avenues for interaction Most employees prefer to serve at the 7 regional headquarters.

Easy to convince married couples to move to a remote location

Thank You!!!