The Training and Development Practices in NTPC
TABLE OF CONTENTS Page No. DECLARATION
GRAPHS AND INTERPRETATION
DECLARATION I am Ananya (PGDM3rd) from School Of Management Sciences, Varanasi. Hereby declare that the survey report on “The Training and Development Practices in NTPC” is the result of my own efforts and is raised on information collected and guidance given by my mentor & faculty members. The survey report is correct to the best of my knowledge & this report so far has not been published anywhere else.
Date:-…………. Place:- ..……….
PREFACE It is a great privilege for me to place this survey report before the reader. The report is concerned about â€œTraining and Development Practices in NTPCâ€?. This report is presented in very simple and understandable language on the basis of primary data.Lastly I would like to state that although every possible care has been taken to make the report error free but still the possibility of some error keeping inadvertently cannot be ruled out. I shall be feeling highly obliged to all reader if some are brought to my notice. Critical evaluation welcome and shall be gratefully acknowledged.I sincerely express my gratefulness to all those who directly or indirectly, helped me in this project. I firmly believe that there is always scope for improving and accordingly I shall look forward for welcome suggestion in this direction from all the reader and subject spiel, which shall be thankfully acknowledged.
ACKNOWLEDGEMENT First of all I would like to bow before all the mighty presence of God without whose mercy this project would have not been possible.I am extremely grateful to XYZ sir for giving me this opportunity to carry out this project work.I also thanks to the respondent and my friends, without whose co-operation this would not have been possible.
New Delhi, India
R.S. Sharma, Chairman
& Managing Director Products services
and Electricity generation,distribution trading
Rs. 8,800 crore
NTPC Ltd., a Power Generation Company as defined under Section 2(4) A
of the Electricity (Supply) Act, 1948, was incorporated as National Thermal Power Corporation on 7th November, 1975 with the mandate for planning, promoting and organizing integrated development of thermal power (including Associated Transmission Systems) in the country.
The Company acquired its new identity, ‘NTPC Limited’ in November 2005.
This new identity signifies that the Company has diversified its operations
beyond thermal power segment and has added new business activities by way of forward, backward and lateral integration, to become an integrated power company with presence across the entire energy value chain.
Today NTPC Ltd. is the largest power generating in India, classified as a
schedule ’A’ Company.
Acknowledging its potential to be a global giant, it was accorded the
‘Navratna’ status in 1997.This gives NTPC enhanced autonomy and delegation of power in several aspects including decisions on capital expenditure, formation of joint ventures and subsidiaries and organizational restructuring. It has a vision to become “A world class integrated power major, powering India’s growth, with increasing global presence”.
Towards the aim of powering India’s growth, the company has embarked
upon an ambitious capacity addition programme to become a 50,000 MW company by the year 2012 and to have an installed capacity of 75,000 MW plus by the year 2017. In pursuit of its vision to become an integrated power major, the company has diversified into hydropower generation, coal mining, power trading, gas/oil exploration and production and manufacturing of equipments, etc. The company is also making forays into nuclear power generation and generation of power
11 through renewable energy sources. The company has also entered into joint ventures with leading players in the power sector for providing consultancy and services like Design Engineering, R&M, O&M Services, etc. both in India and abroad. As of 31.03.2008, the company had – 14 coal based power plants, 7 combined cycle power plants, 3 hydroelectric power projects, 6 subsidiaries and 11 joint ventures/projects under operation/implementation spread across the country.
Various projects having an aggregate capacity of 16680 MW including 3750 NTPC’s generation capacity was 19.11% of the country’s installed capacity as on 31.03.2008 while if accounted for 28.51% of the entire electricity generated in the country. The generating capacity of NTPC was 29,394 MW in 2007-08 including 2,044 MW under joint ventures.
The company has an authorized capital of Rs 10,000 crores, paid up capital of Rs 8,245.5 crores and a net worth of Rs 52,638.6 crores. Further NTPC has made an impressive contribution of Rs 57,00.97 crores to the Central Exchequer.
MW under joint venture are under construction. NTPC is associated with rural electrification work under Rajiv Gandhi Grameen Vidyutikaran Yojana and improving the performance of state owned power plants under the Partnership in Excellence programme launched by Ministry of Power. NTPC is entering into a higher orbit of performance and growth with many opportunities and challenges. The Company crossed the 400 billion mark in terms of gross revenue (Rs. 400.113 billion) and the 200 billion mark in terms of power generation (200.84 billion units) in the year 2007-08. Its net profit was Rs 74,148 million.
12 Vision: NTPC has a vision to become “A world class integrated power major, powering India’s growth, with increasing global presence”. 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. Core Values: (B-COMIT) o
Organizational & Professional Pride
Mutual Respect and Trust
Innovation & Speed
Total Quality for Excellence
Objectives: To realize the above vision and mission, eight key corporate objectives have been identified: o
Business portfolio growth
Human Resource Development
Sustainable Power Development
Research and Development
NTPC provides efficient, reliable and green critical power solutions and uninterruptible power supply systems to enable business continuity. With
13 expert power system engineers and nationwide services and support, the Company ensures that other organizations have the power to perform.
The HR Philosophy To facilitate the organization in fulfilling its strategic objectives with a “People first” approach, we have developed a HR Philosophy Model through which we plan to attain our goals. As per the model, at the periphery lies the role of HR to facilitate the organization in fulfilling its Corporate Social Responsibility and facilitate good governance practices. Within this framework, lies the role of HR to establish good customer relationship.
At the heart of the Model, lies the role of HR to create a Learning Organization based on four building blocks i.e. building Competence, Commitment, Culture and Systems. All the roles performed by HR
14 professionals require them to be System Designers, Internal Consultants, System Monitors and Impact Assessors.
Building Competence Building competence refers to acquiring the right manpower and further developing them. NTPC has a formalized and standardized manpower planning process.
The annual plan and the manpower plan are put
together and the forecast of all the manpower requirements are made based on the business require- ments, skill availability, market demands, attrition rate, future requirements etc. Recruitment is done based on plans. Training is imparted in order to build competence within the organization. A paradigm shift was made in the Training philosophy and approach to Training by emphasizing that it must be need based instead of resource based. A specific scheme of level wise planned training interventions was drawn up covering entry level (E1) to Business Unit Head level (E8), along with need based interventions designed after rigorous Training Need Analysis. Training in “soft skills” has also been taken up simultaneously. Foreign Training and Long Term Educational Programmes have been started through tying up with reputed academic institutions.
Commitment Building - In order to build a sense of loyalty and commitment towards the organization, HR has helped in building a distinct Corporate Identity with the help of NTPC Flag and NTPC Song. This has helped the employees identify with the Company and its Mission/Goals. NTPC Reward System was developed to recognize and motivate people after an extensive Benchmarking exercise involving PSU’s and leading Private companies’ practices. Township/Family Welfare activities are taken from time to time been for improving the Quality of Life in our Pro- ject Townships, and providing opportunities for all round development of children/families of employees.
Culture Building HR plays a major role in culture building through following means. 1. Communication:- NTPC has a Communication Plan that reflects the company’s philosophy to promote greater labor-management cooperation. A communication matrix has been framed for upward, downward as well as lateral communication. It comprises of both, formal and informal, channels of communication. 2. Creating Cultural Artifacts: Cultural artifacts such as NTPC Song, NTPC flag, slogans exist. We publish a series of story books called the “Timeless Treasures” or “Anmol Ratan” which contains short stories that exemplify our values and culture. 3. Vision and Value Actualization. 4.
Reward system:s- Individual, team and Institutional rewards have been developed in order to motivate employees and develop time spirit in them.
Systems Building The mechanism followed in our HR Model for Systems Building is: Design the System, act as Internal Consultant in setting it up, Monitor its implementation, and finally Assess the Impact through feedback, etc. Based on this assessment the System can be reviewed or strengthened. Learning Organization. The ultimate goal of HR is to create a learning organization i.e. an organization that is flexible, responsive and adaptive. It is an organization, which is constantly increasing its capabilities at individual and organizational level. Learning Organization:- The ultimate goal of HR is to create a learning organization i.e. an organization that is flexible, respon- sive and adaptive. It is an organization, which is constantly increasing its capabilities at individual and organizational level. Key HR Practices
16 The HR practices have been designed to deliver the key HR objectives in line with organizational HR philosophy. These are: 1. Manpower Planning 2. Recruitment 3. Performance Management 4. Career Planning 5. Training & Development 6. Leadership Development, 7. Succession Planning 8. Reward & Recognition 9. Compensation & Benefits 10. Employee Welfare 11. Organizational Communication 12. Labor-Management Cooperation â€˘
Structure of HR Function :- For strategy execution, the HR function in NTPC has a 3-tier structure. While the Corporate HR department is responsible for policy formulation, the Regional HR enables the Units to execute these policies.
To deliver the various functions of HR, the HR department at each location is divided into Sections. Ad- ministratively, all HR sections report to their Head HR at the location while functionally they report to the Functional Group Head at Corporate Center where the policies are formulated.
Our HR vision speaks of developing our employees into world class professionals and to make NTPC a Learning organization. NTPC subscribes to the belief that efficiency, effectiveness and success of the or-
18 ganization depends largely on the skills, abilities and commitment of the employees who constitute the most important asset of the organization. Therefore, a lot of emphasis is laid on training and development of employees. All training and employee development initiatives in NTPC spring from the 4 building blocks of NTPC’s HR philosophy model – Competence Building, Commitment Building, Culture Building and Systems Building. Systems for talent management in NTPC comprise of: 1. Talent Induction 2. System for Employee Engagement 3.Training – Long term and Short Term, and Special Training interventions 4. Performance Management System 5. Career Pathing 6. Leadership Development 7. Succession Planning 8. Exit Management Strategies The tremendous power appetite of the country – whetted by economic growth, rising living standards and requirements of a huge population – translates into abundant growth opportunities for NTPC. To actualize Our Vision and to meet the challenges in our business, the Company is ready with the following strategies leveraging its resources and strengths and to exploit the growth opportunities: •
Maintain market leadership: Plan to become 75000 MW capacity by 2017
Further improve our operating performance
Pursue our fuel security :Backward integration into mining and gas sectors
Diversify fuel mix : Venture into Hydro, Nuclear and renewable sector
Develop merchant power capabilities: To sell power at market based price
Strengthen our diversified businesses
Adopt advanced technologies :- Adopt super critical and ultra super critical technologies
Emphasize research and development: Invest upto 1% of annual profit after tax in R&D.
Invest in employee development
Expand our Corporate Social Responsibility initiatives: Through CSRCD and NTPC Foundation.
Risk Management The company has to sustain its growth, retain its leadership position in the country and at the same time improve its operational efficiency. In order to reduce dependence on conventional fuel, the company is foraying into hydro, nuclear and non-conventional energy sources. As a step in backward integration, the Company is entering into coal mining business and also natural gas value chain. Power generation business involves many risks and potential impacts including failure or loss of generation, safety and environment hazards, obsolescence of technology, inadequate supply of fuel and water, legal risks, breach of information security, financial risks, sustaining market share, sustaining realization, delay in project execution, inability to attract and retain skilled and experienced manpower, threats to security of people and property, impact of natural calamities, impact of government policies and performance below expected or contracted levels of output or efficiency. NTPC has taken adequate measures to address the above mentioned risks by developing appropriate systems and practices. In order to institutionalize the risk management in NTPC, a risk management policy was formulated in fiscal 2005. After careful analysis of business environment, corporate
20 plan and business practices and with a view to enhance business performance, NTPC has adopted a two-pronged strategy - the short term as well as long term measures to mitigate the risks and put in place a reporting system which would enable critical risks beyond certain tolerance levels to be reported for further action. In order to imbibe the best practices prevalent in the industry, NTPC has also appointed a reputed consultant to develop the enterprise risk Management framework. After holding detailed deliberations involving all the units of the Company, an entity wide Risk Register is under development and an enterprise wide Risk Reporting Framework would be implemented in 2008-09. Robust Financials of the company •
Net Sales of Rs 370,501 million during 2007-08 as against Rs 325,952 million registering an increase of 13.67%. Gross Revenue is Rs 400,177 million during 2007-08 as against Rs 353,807 million for the year 2006-07, an increase of 13.11%.
Profit after tax for the year 2007-08 is Rs 74,148 million as compared to Rs 68,647 million during the year 2006-07, an increase of 08.01%.
Highest total dividend @ 35% amounting to Rs 28, 859 million for the year 2007-08.
Contributed Rs 57,009.7 million to exchequer on account of corporate tax, dividend and tax thereon and wealth tax.
Market capitalization of the company is over Rs 1621 billion (US $ 40.33 billion approximately) making it the third largest company as on 31.3.2008.
Highest ever-capital expenditure of Rs 87519 million during 2007-08. 100% realization of the billing for the fifth year in succession.
Key Impacts, Challenges and Opportunities
21 The power industry in India has been historically facing imbalances between demand and supply. Although the power generation capacity has increased substantially in recent years, it has not kept pace with the continued growth of Indian economy. To address the persistent shortages, the Government of India has taken significant steps to restructure the industry, attract investment and plan for fast track capacity addition through incentivised policy initiatives. These include policy intervention such as Electricity Act, 2003, National Electricity Policy 2005 and Tariff Policy 2006. Further the Government has also liberalized policies relating to transmission and distribution sectors. NTPC faces numerous challenges, being the largest power generating company in the country, with a market share of approximately 19.11% in terms of installed capacity and producing 28.51% of the total electricity generated in India. With the responsibility of operating a capacity of around 30,000 MW and an ever-increasing urgency of timely capacity addition, the responsibilities and challenges associated to achieving its organizational goals are increasing. However, as the leader in the power industry, NTPC understands that the only way to sustain growth is to combat
appropriate strategies. â€˘
Key impacts NTPC has generating stations based on coal and gas.. NTPC is taking a number of initiatives towards preservation of the environment by providing state-of-the-art pollution control systems, strict environment monitoring, judicious use of natural resources (coal, gas, water and land), study of impact on ambient air due to plantâ€™s operations, etc. Strict control is exercised during operation of the plants to optimize use of fuel. Key impacts of the business of NTPC may be summarized as:
Acquisition of Land: Conversion agricultural and forest to industrial land use - displacement of people/loss of homesteads and livelihoods. o
Ash Generation: Conversion agricultural and forest land to waste land
Water Consumption: Withdrawal of water and generation of effluents
Air Quality: Air emissions due to combustion of fossil fuels
Afforestation: Maintenance of ecological balance
Safety Concerns: Fire and safety hazards
NTPC today accounts for 29% of India’s total power generation through a large and efficient fleet of 22 power generating stations (total capacity 31,000 MW plus).
NTPC is steadily moving towards its stated objective of becoming a 75,000 MW Plus Company by the year 2017.
NTPC is pursuing strategic integration along the power-value-chain through its entry into coal mining, power equipment manufacturing, power trading, power distribution and its lateral diversification into hydro, new renewables and nuclear power.
Presently our installed capacity is 31,134 MW including 2,294 MW under joint ventures.
A capacity of 17,830 MW is under construction and 7,092 MW is under bidding. Feasibility Reports have been approved for a capacity of 4,705 MW.
Feasibility Reports for a capacity of nearly 20,000MW are under different stages of preparation.
Further, NTPC is effectively pursuing strategic integration along the power-value-chain through its entry into coal mining, power equipment manufacturing, power trading, power distribution and its lateral diversification into hydro, new renewables and nuclear power. NTPC has embarked on a journey of becoming the most valuable company in the country, one of the largest integrated power majors in the world and a leader in GREEN POWER by the year 2032.
No. of Locations 121 (2008-09) No.of branches are as follows:-
Coal Based Power Stations With 15 coal based power stations, NTPC is the largest thermal power generating company in the country. The company has a coal based installed capacity of 24,885 MW.
COAL BASED(Owned by NTPC) 1. 2. 3. 4. 5.
Singrauli Korba Ramagundam Farakka Vindhyachal
STATE Uttar Pradesh Chhattisgarh Andhra Pradesh West Bengal Madhya Pradesh
COMMISSIONED CAPACITY(MW) 2,000 2,100 2,600 1,600 3,260
24 6. Rihand 7. Kahalgaon 8. NCTPP, Dadri 9. Talcher Kaniha 10. Feroze Gandhi, Unchahar 11. Talcher Thermal 12. Simhadri 13. Tanda 14. Badarpur 15. Sipat-II Total
Uttar Pradesh Bihar Uttar Pradesh Orissa Uttar Pradesh Orissa Andhra Pradesh Uttar Pradesh Delhi Chhattisgarh
2,000 2,340 1,330 3,000 1,050 460 1,000 440 705 1,000 24,885
Coal Based Joint Ventures:
(Owned JVs) s1. Durgapur 2. Rourkela 3. Bhilai 4. Kanti Total
by STATE West Bengal Orissa Chhattisgarh Bihar
COMMISSIONED CAPACITY 120 120 574 110 924
The details of Gas –based power stations are as follows :-
1. 2. 3. 4. 5. 6.
(Owned by NTPC) Anta Auraiya Kawas Dadri Jhanor-Gandhar Rajiv Gandhi
Kayamkulam 7. Faridabad Total
Rajasthan Uttar Pradesh Gujarat Uttar Pradesh Gujarat
CAPACITY(MW) 413 652 645 817 648
Gas Based Joint Ventures: COAL BASED (Owned JVs) 1. RGPPL Total
by STATE Maharashtra
COMMISSIONED CAPACITY 1480 1480
Hydro Based Power Projects (Under Implementation)
NTPC has increased thrust on hydro development for a balanced portfolio for long term sustainability. The first step in this direction was taken by initiating investment in Koldam Hydro Electric Power Project located on Satluj river in Bilaspur district of Himachal Pradesh. Two other hydro projects under construction are Tapovan Vishnugad and Loharinag Pala. On all these projects construction activities are in full swing.
26 1. Koldam (HEPP) Himachal Pradesh 2. Loharinag Pala (HEPP) Uttarakhand Tapovan Vishnugad 3. Uttarakhand (HEPP) Total
800 600 520 1,920
Organisational structure Board of Directors •
The Chairman and Managing Director is the highest executive officer of NTPC.
NTPC Limited is a Government Company within the meaning of
section 617 of the Companies Act, 1956 as the President of India holds 84.5%(after disivestment the stake by Indian government on 19october2009) of the total paid-up share capital. •
As per Articles of Association, the power to appoint Directors including Chairman and Managing Director vests in the President of India. The combined posts of the Chairman and Managing Director ensure single person authority and accountability.
In terms of the Articles of Association of the Company the strength of the Board is not to be less than four Directors or more than twenty Directors. These Directors may be either whole-time functional Directors or part-time Directors.
Composition of the Board •
As on 31st March 2008, the Board comprised of thirteen Directors out of which seven were whole-time functional Directors including the Chairman and Managing Director.
Two Directors were nominees of the Government of India. The Board also had four independent Directors, appointed by the Government of India through a search committee constituted for the
27 purpose. The Directors bring to the Board wide range of experience and skills. During the year 2007-08, there were only four Independent Directors on the Board of the Company, against the requirement of nine. The listing agreements with stock exchanges stipulate half of the Board members to be independent directors. The company has requested Government of India to initiate necessary steps for appointment of adequate number of Independent Directors so that Board composition is in compliance with the Listing Agreement. For appointment of functional directors including Chairman and Managing Director, job description and required qualification and experience have been approved by the Board, which is updated from time to time keeping in view the changed scenario in industry. For appointment of independent directors, Government of India has set up a search committee in which Chairman and Managing Director of a PSU is a representative. DPE has also prescribed that the independent director to be appointed shall have an experience of not less than 10 years at the level of Joint Secretary and above in the Government; Chairman and Managing Director/ MD in Corporate Sector; Professor level professionals of repute
Academic Institution or
like eminent Chartered
Accountants at the level of Directors of Institutes/ Heads of Department; persons of eminence with proven track record from Industry, Business or Agriculture. The age limit of the Chairman and Managing Director and other whole-time functional Directors is 60 Years. The Chairman & Managing Director and other whole time Functional Directors are appointed for a period of five years from the date of taking charge or till the date of superannuation of the incumbent, or till further instructions from the Government of India, whichever
28 representing Ministry of Power, Government of India retire from the Board on ceasing to be officials of the Ministry of Power. Independent Directors are appointed by the Government of India usually for a tenure of three years. ďƒ˜ Stakeholder Engagements Stakeholder engagement in NTPC involves dialogue between the company and one or more of its stakeholders. There are, however, important reasons for the company to engage with some of its stakeholders. In NTPC stakeholder engagement is a part of continuous learning and a means of providing the company with the benefits associated with diverse perspectives. The total stakeholder base of the company encompasses Government of India, financiers, investors, customers, media, community, employees, regulators, suppliers, partners and statutory bodies. In the year 2004, the company launched its Initial Public Offer (IPO), making the shareholders a major stakeholder. Thus major stakeholders include: o
Government: The Company was formed in the year 1975 as a whollyowned entity of Government of India and the Government of India held 89.5% of the paid-up share capital of the Company in 2007-08. The working of the Company is subject to quarterly reviews by the Government at its Secretary level. Government has also nominated its representatives on the Company’s Board and monitors the performance of the Company through various means such as the Parliamentary Committees, Comptroller and Auditor General of India, Ministry of Power, Department of Public Enterprises and the Members of the Parliament. All these agencies have been giving a number of feedbacks on various facets of operation of the Company. The Company, after assessment of such feedback, submits action taken reports to these agencies.
Shareholders: In 2004, NTPC came out with an IPO of equity shares including an offer for sale by Govt. of India The Company has more than 6,50,000 retail shareholders. The Company besides appointing a Share Transfer Agent for servicing these shareholders has set up an in-house Investor Services Department to ensure proper and timely redressal of grievances of these small shareholders. The department along with the Company Secretariat constantly takes feedback from these shareholders to bring out improvement in the services being provided.
Investors: In 2007-08, 10.5% of the paid-up capital was held by the public out of which Foreign Institutional Investors and Mutual Funds held 8%. The Directors of the Company constantly interact with the Institutional Investors to explain to them the strategies and plans of the company. During such interactions, investors have expressed various viewpoints on the sector and business of the company and the management has, in turn, addressed their concerns and explained the measures taken by the Company.
JV Partners: NTPC has formed a number of joint venture companies for undertaking specific business activities. The names of these companies
30 are; NTPC-SAIL Power Company Pvt. Ltd., NTPC-Aistom Power Services Pvt. Ltd., Utility Powertech limited, NTPC Tamilnadu Energy Co. limited, Ratnagiri Gas and Power Private ltd., PTC India Limited, Aravali Power Company Pvt. Ltd., NTPC SCCL Global Ventures Pvt. Ltd., Meja Urja Nigam Private limited, NTPC BHEL Power Projects Pvt. Ltd., BF-NTPC Energy Systems Ltd. •
Customers: The State Electricity Boards, JV partners, Government of India and users of consultancy services are the major customer groups. NTPC organizes customer workshops to meet and obtain the feedback from them. Regular meetings are held with customers in each region for operating plants. All capacity additions are planned in consultation with the customers for meeting their future requirement of power. Customer Focus being one of the Core Values of the Company, NTPC makes it a point to regularly participate in all Regional Electricity Board Meetings, which has representation of all customers of the region. These meetings are held on a regular basis, 3-4 times in a year and provide a forum for feedback regarding current requirements of the customers. Customers attend these meetings along with concerned functional executives of NTPC from such areas like commercial, operations, etc. and issues pertaining to the respective areas are discussed and resolved to the mutual satisfaction of customers and NTPC. Technical co-ordination committee meetings and Board Meetings are attended at a very senior level in which NTPC ensures regular participation for a very fruitful interaction with its customers. Views expressed by the customers are given due importance in formulating future business plans and strategies
NTPC’s Customer Initiatives : Customer focus is an article of faith for the Company. CRM (Customer Relationship Management) is at the core of the Company’s business approach. NTPC strives to source fuel and inputs at low cost in order to provide power at the least possible cost. It reaches out to the customers through various initiatives like performance improvement
31 support, extending training facilities, customer support services, customer meets and customer satisfaction index. •
Suppliers: Good supplier relations and supplier network are must for successful construction and operation of a plant. Therefore, they are identified as one of the stakeholders. NTPC organizes pre-bid conferences with suppliers to learn about the latest developments in the relevant field and to incorporate these in the bidding documents before the tendering process commences for award of major packages.
Community: Public interest groups affected by the setting up of projects have their concerns, needs, aspirations and requirements. These may be with reference to environment, R&R or any other relevant aspect. Public hearings and meetings with local interest groups are a cohesive part of project implementation programme to satisfy the local communities and the Project Affected People (PAP). The process of consultation is continued even after setting up the plant.
Statutory Authorities: The Company has to adhere to various statutory and mandatory rules and regulations and licenses have to be obtained for setting up and running the plant. All such government and local authorities and their requirements are identified and met with.
Media: There are effective communications and regular interactions with media (both print and electronic) on various occasions including publication of quarterly results, annual results and other important events. Annual press meet is held in the first week of April every year.
Employees: The employees of the company are the most important stakeholders
opportunities, employee satisfaction, social welfare, health, safety and quality of life are the issues and interests that have to be addressed with respect to them.
32 Products and Services: •
· Electricity Generation
· Power Distribution
· Power Trading
· Consultancy Services (including training in Power Technologies)
· Coal Mining
· Manufacturing of Electrical Transformers
· Manufacturing Ash Bricks and Ash Cement,
· Oil & Gas Exploration.
Names/ No. of Geographical Markets- India, SAARC, West Asia, Asia Pacific, Africa Major Competitors of NTPC (2009) in Rs. crore
OF Last Price
Power Grid Corp
ďƒ˜ Strengths o
Leadership position in the Indian power sector
Strong cash flow
Sound customer relations and commercial performance
High operational efficiency of coal-based stations
Long term agreements for coal and gas supply
Strategic locations near fuel source
Effective project implementation
Ability to turn around underperforming stations
Experienced in-house engineering capabilities
Advanced information technology platform
Strong balance sheet
Competent and committed workforce
Emphasis on corporate governance
ďƒ˜ Challenges o
Fuel linkages/ fuel security issues
Project execution/implementation issues
Sustaining market realization due to poor financial health of many SEBs.
Sustaining market share in wake of Competition.
Stringent environmental norms and vulnerability due to climate change regulations in the future may add to cost of generation.
To lead the sector in environment protection including effective Ash utilization,
Rehabilitation and resettlement of Project affected persons
Capacity constraints of power equipment manufacturers
Diversification of business portfolio
Mobilization of adequate financial resources at competitive rates for capacity addition plans
ďƒ˜ Opportunities o
Expand generation capacities by setting up thermal/hydro, nuclear capacities.
Aggressively enter and establish presence in nuclear power and renewable energy.
Broad based fuel mix viz coal (domestic and imported), gas, hydro power, nuclear power, etc with a view to mitigate fuel risks and maintain competitiveness.
Development and commercial deployment of renewable/nonconventional energy sources
Backward integration into fuel management through acquisition and development of coal mines to exercise greater control and understanding of supply economics.
Strengthening of revenue collection by trading, setting up of merchant power plants, direct sale to bulk customers and forward integration into distribution business.
Expanding consultancy services in the areas of O&M, R&M, EPC business in domestic and international markets.
Leverage cleaner and advanced technologies to cut emissions, conserve energy, higher operational efficiencies thereby reducing operational costs.
Improve market share through high brand equity amongst stake holders.
Participating in community building through various programmes under CSR.
To build ash utilization models to insure compliance with regulations
To leverage robust financials, excellent operational performance and strong project management skills for achieving performance relative to global peers.
Awards & Achievements:-
Performance Awards 1. The Best Performing CFO Award • Instituted by CNBC TV 18 India Pride Awards – Energy and Power Category Instituted by Dainik Bhaskar & DNA NTPC was awarded Gold trophy for excellence in Energy & Power Catogory. 1. Enertia Award 2009 Falcon Media Group NTPC-Vindhyachal has been declared winner of Enertia-2009 – India’s Award for Sustainable Energy & Power for the Excellent Operational Performance of India’s largest Super Thermal Power Station. The Enertia Awards has been instituted by the Falcon Media Group, India’s leading journal on sustainable energy power. 2. SAFA Best Presented Accounts Awards 2008 NTPC received the 'Certificate of Merit' for Best Presented
36 Accounts and Corporate Governance Disclosures Awards 2008 in the category of Public Sector Entities from South Asian Federation of Accountants (An Apex Body of SAARC). SAFA is a Committee for Improvement in Transparency, Accountability and. 3. CII-EXIM Excellence Award, 2009 Governance NTPC's Talcher-Kaniha, Kayamkulam and Rihand projects received the 'CII-EXIM Excellence Award'09' for its Strong Commitment to Excel. 4. National Awards for Meritorious Performance Ministry of Power. NTPC's Six (6) Stations received the National Awards for Meritorious Performance in Power Sector for the year 2008-09. Simhadri (1000 MW) received the Gold, Korba (2100 MW) and Ramagundam (2600 MW) received the Silver and Vindhyachal(3260 MW), Rihand (2000 MW) and NCPP Dadri (840) received the bronze medal. ďƒ˜ CSR AWARDS
1. 2nd India Power Awards 2009 Organized by the Council of Power Utilities and KW Conferences Pvt. Ltd. NTPC awarded in the category of 'Social and Community Impact' of 2nd India Power Awards 2009 for pioneering in Corporate Social Responsibility strides. 2. CII ITC Sustainability Award
37 Instituted by CII-ITC Centre of Excellence for Sustainable Development NTPC – CSR has been conferred with CII-ITC Sustainability Award for the Commendation for Significant Achievement among Large Business Organizations for the year 2009. NTPC was a worthy winner after a rigorous two-stage assessment including a site visit, followed by scru Environment Awards
1. The Sunday Indian Special Mega Excellence – “India’s Best Environment Driven Company Award – 2009. Instituted by Planman Media . NTPC awarded The Sunday Indian Special Mega Excellence "India's Best Environment Driven Company Award-2009". This award is a special award to recognize and applaud the commitment of NTPC Limited towards environment and ecology. 2. 4th Water Digest Water Award 2009-10 NTPC was warded the Water Digest Water Award 2009-10 in the Category “Best water Management –Public Sectors “.Water Awards were set up in 2006 by Water Digest to honor distinguished work carried out by various companies in order to save and conserve water. Safety Awards 1. Safety Award 2009 Greentech Foundation Award ceremony held in Goa on May 4, 2009.
38 NTPC's Barh STPP awarded Silver Award in Construction Sector for outstanding achievement in Safety Management by Greentech Foundation. 1. Best Environment Management Station Award for Safety Instituted by Direct orate of Factories and Boilers, Orissa Shri Lalan Prasad, Executive Director, Talcher Kaniha received a Shield and a Certificate from Shri Puspendra Singhdeo, Minister of State, Labour & Employment of Orissa on 6th July, 2009 at Bhubaneswar. Talcher Kaniha of NTPC was awarded Best Environment Management Award for Safety in the 36th State Safety Award Ceremony Company Rankings
1. Platts Top 250 Global energy Company for 2009 Instituted by Platts Global Energy Company. NTPC Ltd. Has earned a ranking of 73 on overall global performance in the Industry Sector. NTPC has also been ranked No.1 in Independent Power Producers in Asia and ranked 2nd in Independent Power Producers Globally with overall performance at rank No.10 in Asia. Platts’ rankings are based on four key metrics – asset worth, revenues, profits and return on invested capital. 2. India’s Biggest News Makers Survey Business Today
39 NTPC has been ranked Number One News Maker in the Power Sector of India by the Business Today – India’s Biggest News Makers Survey. The survey took into account public relations and image building efforts of the Corporates, their visibility quotient and quality of exposure as well as image score to determine Indian Corporates who got the best press coverage. 3. Business Standard's "BS1000" companies Business Standard NTPC ranked amongst top 10 companies by the premier business daily Business Standard in the 'BS 1000' listing of India's corporate giants for the year 2009. NTPC ranked 9th in the list of 1000 companies. The rankings are based on the net sales of the top 1000 listed companies during 2008-09. HR Awards
1. Great Places to Work Award 2009 Joint Study conducted by Great Places to Work Institute India and The Economic Times NTPC bagged 4 Awards at the Great Places to Work Awards2009. NTPC has been ranked 1st among Large Organizations (with over 10,000 employees), the Best PSU (Public Sector Undertaking) and 1st in Industry Verticals rankings in the Manufacturing and Production Segment by a Joint Study conducted by Great Places to Work Institute India and The Economic times.
2. AMITY HR Excellence Award Amity International Business School and Amity Global Business School, NOIDA. NTPC was awarded "Amity HR Excellence Award" for the exemplary acceleration and development of the organisation by managing a talent pool in a talent scarce macro – environment, thus achieving unprecedented growth by utilizing its human capital. This award acknowledges the impeccable global HR practices followed by the organization that have led its astounding growth towards being recognized as one of the best and most admired company in its domain. 3. NCPEDP-Shell Helen Keller Award 2009 National Centre for Promotion of Employment for Disabled People (NCPEDP) NTPC awarded for NCPEDP – Shell Helen Keller Awards 2009 in the Category'C':Companies/organiza-tions /institutions who share NCPEDP's vision and through their policies and practices demonstrate their belief in equal rights and gainful employment for persons with disabilities 4. Vishwakarma Rashtriya Puraskar (VRP) – 2007 Instituted by Ministry of Labour. VRP provides public recognition of such outstanding achievement on the part of the workers at the national level.
5. Best Companies to Work For – 2009 Survey done by Business Today
41 NTPC has been ranked Second in the Core Sector with Index Score of 98 out of 100 and ranked 21st in the 25 toppers list based on a survey of 8,742 respondents in 1000 organizations across 800 cities. 6. SCOPE Meritorious Award for Best Practices in Human Resource Management Instituted by Standing Conference of Public Enterprises (SCOPE) NTPC has been awarded the Gold Trophy for SCOPE Meritorious Award for Best Practices in Human Resource Management for the year 2008-09. Corporate Governance Awards 1.Golden Peacock Global Award for Excellence in Corporate Governance – 2009 .Golden Peacock Global Awards have been instituted by World Council for Corporate Governance. 2.ICSI National Award for Excellence in Corporate Governance 2009 The Institute of Company Secretaries of India NTPC Limited has been awarded "ICSI National Award for Excellence in Corporate Governance 2009". •
Quality Awards International Gold Star Award for Quality 2009
Instituted by BID ,a leading organisation of Europe focused on promoting the
NTPC- CenPEEP received the international Gold Star Award for Quality 2009 in recognition of outstanding commitment to Quality contributing
42 towards the success for India in the business world. This award is recognition of the pro-active work carried out by NTPC.
Current announcements:Government of India, Deptt. of Public Enterprises, Ministry of Heavy Industries & Public Enterprises vide Office Memorandum dated 19th May, 2010 has conveyed grant of Maharatna status to NTPC apart from three other Central Public Sector Enterprises (CPSEs). Since, presently NTPC has requisite number of non-official Directors on its Board, therefore, only NTPC is eligible to exercise delegated Maharatna powers. Consequent upon grant of Maharatna status, the Board of Directors of NTPC shall be, inter-alia, empowered to make equity investment to establish financial joint ventures and wholly-owned subsidiaries and undertake mergers & acquisitions, in India or abroad, subject to a ceiling of 15% of the net worth, limited to Rs.5000 crore in one project as against earlier limit of Rs.1000 crore. The exercise of Maharatna powers would be subject to the same conditions and guidelines as laid down by the Government in respect of Navratna CPSEs from time to time. Training and development
Introduction – Training and development is the process of teaching, informing, or educating people so that they may become as well qualified as possible to do their jobs, and they become qualified to perform in positions of greater difficulty and responsibility. •
Training and development can be initiated for a variety of reasons for an employee or group of employees
To improve performance on the job for enhanced contribution to organizational goals and objectives. • To “benchmark” the status of improvement with regard to a performance improvement effort. • To facilitate overall professional development of employees for increased job satisfaction and productivity. • To assist organizations in succession planning to help an employee be eligible for a planned change in role in the organization. • To “pilot”, or test, the operation of a new performance management system. • To develop organization specific skills and competencies,
otherwise scarcely or not at all available in the human resource market. PURPOSE OF TRAINING & DEVELOPMENT Training facilitates achievement of organization’s business objectives and missions•
performance objectives and specific job requirements. •
Training programmes are developed with participative input from management, supervisors, and employees.
organizational needs, structure, technology, and its ethos. •
Training addresses both occupational skill requirements and the academic or foundational knowledge, skills and behaviours that underlie them.
Training supports broadening of employee’s skills and empowering them.
Training and development activities are interactive and experiential, and include regular opportunities to integrate the knowledge and skills learned into solving problems commonly encountered on the job.
Training is modular so it can be adapted to workplace schedules.
Training is developed based upon an assessment of the target employee’s knowledge, skills and abilities.
Training and development builds employee’s understanding that learning is
an integral part of successful job performance. • Training meets individual skill development needs as reflected in an individualized development plan. TYPES OF TRAINING 1.
COMMUNICATIONS TRAINING The increasing diversity of today’s workforce brings a wide variety of languages and customs. This requires initiation of communications training for effective communications in the organization.
COMPUTER SKILLS TRAINING Computer skills are becoming a necessity for conducting administrative, shop
floor and office tasks. Therefore, computer training helps employees and organizations to take advantage of computer technology. 3.CUSTOMER SERVICE TRAINING -Increased competition in today’s global marketplace makes it critical employees
understand and meet the needs of
customers. 4.DIVERSITY TRAINING Diversity training usually includes explanation about how people have different perspectives and views, and includes techniques to value and diversity. This is most relevant for expatriate employees/managers who work for multi national corporations and their families. 5.ETHICS TRAINING
Today’s society has increasing expectations about corporate social responsibility. Also, today’s diverse workforce brings a wide variety of values and morals to the workplace. Ethics training helps managers and employees to adhere to the ethical norms of the organization and helps improve corporate image. 6.HUMAN RELATIONS TRAINING The increased stresses of today’s workplace can include misunderstandings and conflict. Training can facilitate people to go along well in the workplace. 7.QUALITY TRAINING Initiatives such as total quality management, quality circles, benchmarking, etc, require basic training about quality concepts, guidelines and standards for quality, etc. quality is the hallmark of doing business successfully. 8.SAFETY TRAINING Safe working is necessary to prevent accident – unplanned and unintended loss of men, money and morale. Safety training is critical where working with heavy equipment, hazardous chemicals, repetitive activities, etc., but can also be useful with practical advice for avoiding assaults, etc. PRINCIPLES OF TRAINING 1. PRINCIPLE OF GOAL SETTING Training should be based on specific needs and objectives of the organizationas well as employees. Determination of goals pertaining to development of skills,
knowledge and behaviour helps in improving
46 2. PRINCIPLE OF INDIVIDUALITY The learning needs and styles of each individual employee are different from another. Trainees respond differently to the same training. This is due to
characteristics, their personal commitment and their level of maturity. 3. PRINCIPLE OF PRACTICE Employees must be accorded opportunity to practice what they have learnt in training programme so that training can be transferred to workplace effectively and results in performance improvement. 4. PRINCIPLE OF FEEDBACK Employees/trainees needs to be given non-critical feedback so as to reinforce what they have learnt in the training for effective skill transfer to the job. 5. PRINCIPLE OF MEANINGFULNES-Training should focus on job relevant skills, knowledge and information.
This helps in achieving objectives of
training. 6. PRINCIPLE OF OVERLOAD Training should not provide so many details to employees/trainees that it overloads the employee/trainee resulting in loss of learning retention. 7. PRINCIPLE OF SPECIFICITY Training must be specific to the needs of individual employees and jobs. Specificity helps in attaining the training and learning objectives with ease. 8. PRINCIPLE OF ADAPTATION
Training programmes must be adapted for specific individual employees or group of employees keeping in view their competence, personal profile, job requirements and job conditions. 9. PRINCIPLE OF PROGRESSION Training should be imparted in a progressive manner from simple to difficult part in a rationale and logical flow. It must address the basic skill requirements in the beginning and gradually move to more complex skills and competency requirements. 10. PRINCIPLE OF VARIATION If training programmes are repetitious, employees/trainees can soon become bored and lose their motivation to learn. ďƒ˜ BENEFITS OF TRAINING o
Increased job satisfaction and morale among employees.
Increased employee motivation.
Increased efficiencies in processes, resulting in financial gain and competitiveness.
Increased capacity to adopt new technologies and methods.
Increased innovation in strategies and products
Reduced employee turnover and absenteeism
Enhanced organizational image, e.g, conducting ethics training.
harassment, diversity training, safety training, etc.
Training and Development Methods I.
On-the Site Methods
Apprentice An apprenticeship is a formal agreement between an individual who wants to learn a skill and a employer who needs a skilled worker. Apprenticeship training is an “earning while learning” arrangement for a required term. Training occurs under the supervision of an experienced person; an apprentice receives knowledge and develops skills associated with a designated trade through on the job training. Upon successfully completing an apprenticeship program, the trainee is eligible for applying for permanent job in an organization subject to availability of vacancy. Job Rotation Job rotation involves the movement of employees through a range of jobs in order to increase interest and motivation. Job rotation can improve ”multi-skilling” but also involves the need for greater training. In a sense job rotation is similar to job enlargement. This approach widens the activities of an employee by switching him around a range or work. The starting point of job rotation lies within business and their trainings need which can result from the introduction of new technology, organizational changes or internationalizes processes. As the qualification of the employees are key factors contributing to high productivity and competitiveness of the organization, job rotation intends to provides individual employees and the organization with new sills and competencies. Vestibule training Vestibule training is a method that combined the benefits of the class room with
the benefits of on the job training. The classroom is located as close as conditions allowed to the department for which the employees are being trained. It is furnished with the same machine as used in production. There were normally six to ten trainees per trainer, who are either skilled workers or supervisors from the organization. The employees are trained as if on the job, but it did not interfere with the more vital task of production. Transfer of skills and knowledge to the workplace is not required since the classroom is a model of the working environment. Classes are small so that the trainees receive immediate feedback and can ask question more easily than in a large classroom. ďƒ˜ On the Job training Also called job instruction training. It consists of a formal systematic programme for conducting training in the workplace; training is conducted by the supervisor. Includes apprentice-ship, practicum and internships. It is responsibility of supervisors and managers to utilize available resources to train, qualify and develop their employees. On the job training is a technique of training the employees by using the actual work site as a proper setting to instruct employees while at the same time engaging in productive Work. On the job training (OJT) is one of the best training methods because it is planned organized and conducted at the employeeâ€™s worksite. It will generally be the primary method used for broadening employee skills and increasing productivity. II.
Off-the Site Methods ďƒ˜ Lecture Method
The lecture method is a widely used method of training where the instructor becomes the sole disseminator of information. The instructor presents information
to the learners systematically in this method. It is an oral presentation in which the trainer or other speaker presents facts, opinions, events, principles, or explanations. This approach is considered to be the best method to use because the instructor interfaces with the learners by presenting segments of instruction, questions the learners frequently and provides periodic summaries or logical points of development. Small Group Activity Method The Small Group Activity Method is based on the principle that adults learn best by doing. This approach places the learners in a series or carefully constructed problems solving or discovery situations where they are asked as a group to apply their own experiences combined with information and resources provided in the training to solving problems that are relevant to their day-to day experiences. The trainer’s role is to organize this process within the workshop and to add his expertise. Learners are divided into small groups of from three to five. Each group chooses a group reporters or “scribe” to help facilities the discussion, take notes and report back to the group as a whole. The group work on a common written activity which requires them to make judgments, and bring to bear their own experiences. Case Studies Case studies are descriptions of a real life experience, related to the field of study o training which are used to make point raise issues or otherwise enhance the participants understanding and learning experience. The account usually follows a realistic scenario such as a management or technical problem from start to finish. Because they provide practical examples of problems and solutions challenges and strategies they support more theoretical material and often make the “lesson”
more memorable and believable for the participants. Case studies are particularly useful in the archives and records management field as there is so much variety in the full range or archives and records management programmes with many different types of organizations as well as local, national and regional differences. ďƒ˜ Business Games It is an exercise in which competition or cooperation (or both) is used to illustrate or practice principles. Usually intended to be fun, games incorporate rules, decisions and time pressure. Business Games may have hidden agendas or purposes, which are revealed after the game is complete. A variety of management games are used in a number of courses for learning by substitute tasks and reflection. Out Door Management Exercises and a number or other management games such as PRINCIPLE GAME, BROKEN SQUARES; RUMOR CLINIC, etc. Achieving targets are used very effectively in the training methods and professional development programmes. The participants get subjected to a degree of physical and mental stress, thereby enabling them to draw lesson for application in their real work situations. This also help indirectly and in a very subtle way in influencing the attitudes. ďƒ˜ Role Plays Role plays is an extremely valuable method of training. It encourages thinking and creativity lets participants develop and practice new languages and behavioral skills in a relatively non threating setting , and can create the motivation and involvement necessary for learning to occur. Learners act out or perform a dramatization of a situation in order to develop insight or apply what has been learned. Learners are given roles to play and usually the instructor provides the situation, opinions, agendas and characterizations. Portrays human interaction. A
number of role-plays can be conducted in the same room at the same time or a role play can be demonstrated. Programmed
compromised of instructional material divided up into small segments. Participants complete a series of questions; answer are immediately provided. This method is used for remedial and make up learning, highly motivated, and geographically distant learners. Programmed instruction method involves presenting new knowledge and skills participants in a graded sequence of controlled steps. Participants work through the programmed material by themselves at their own speed and after each step test their comprehension by answering an examination question or filling a diagram. They are then immediately shown the correct answer or give additional information. Computers and other types of training machines are often used to present the material, although books may also be used. Computer-assisted instruction, which both test participantâ€™s abilities and marks their progress, may supplements training activity or help participants to develop ideas and sills independently. ďƒ˜ In Basket Exercise Practice exercises that incorporate a set of tasks that will be faced on the job. Most commonly prepared items are given to the learners as if arriving in their in baskets. Such material include letters, memos, report and telephone calls. Learners must prioritize, make decisions and handle problems in order to get the work load completed within the time frame given. In basket exercise assess a participants ability to perform management job from an administrative perspective. In the exercise the participant is confronted with the issue problems and complexity of managerial life in the form of documents such as memos from superiors peers and subordinates reports or various kinds letters
from stakeholders and messages and other correspondence that have accumulated in the manager’s in-basket. The participants takes is to take action on these varies issues and problems. Experiential Learning Experiential learning is the process of actively engaging participants in a experience that will have real consequences. Participants make discoveries and experiment with knowledge themselves instead of hearing or reading about the experiences of others. Participants also reflect on their experiences, thus developing new skills, new attitudes and new theories or way of thinking. ‘Experiential learning can apply to any kind of learning through experience. ‘Experience learning’ s often used by providers of training or learning to refer to a structured learning sequence which is guided by a cyclical model of experiential learning. Less contrives forms of experiential learning (including accidental or unintentional learning ) are usually described in more everyday language such as “learning from experience” or learning through experience’. An experiential learning cycle ‘ is a mean of representing sequences in experiential learning. It s often assumed that the that the stages of a ‘learning cycle’ are managed by a facilitator but they can also be self managed or even unmanaged in the sense that learning from experience is a normal everyday process from most people. Sensitivity/T-Group Training Sensitivity, T- Group or laboratory training attempts to change individual behavior by placing participants in an unstructured, ambiguous situation and having them resolve the conflicts, which emerge as a result of ambiguity through interpersonal interactions.
T- Group Training are:•
To increase self insight concerning why one acts in certain ways in interpersonal situations and to develop an understanding of how others see these behaviours.
To increase individual sensitivity to the behaviours of others and their underlying emotional bases.
To increase awareness of the types of interactions which enhance or reduce the effectiveness of groups.
To increase diagnostic skills so that problems areas in group functioning may be recognized and treated.
Transactional Analysis Transactional analysis is a powerful tool to bring about human well being. In Psychotherapy, transactional analysis utilizes a contract for specific changes desired by the participant and involves the “Adult “ in both the participant and the trainer top sort out behavior emotions and thoughts that prevent the development of full human potential. Transactional analysis intervene as they work with participants in a safe, protective, mutually respectful OK/OK environment to eliminate dysfunctional behaviours and establish and reinforce positive relationship styles and healthy functioning Training and development practices in NTPC
Employee Induction/ Orientation System NTPC has a standardized orientation process in place for new joinees that is tailored to fit the organiza- tional requirements as well as help the new joinee blend fast into NTPC culture. NTPC hires fresh blood as trainees and grooms them into power professionals. The purpose of induction is – •
To facilitate the new entrants to learn the history of the organization, its founders, Vision, Mission & Core Values of organization
To understand the organizational businesses, various business locations,
55 organization structure, the role & importance of various functions and their inter-linkages in the organization. •
The induction program also clarifies the entitlements & benefits of the new joinee and the future career growth that the individual can have for himself in the organization.
Induction training gives an insight into the respective core function of the new joinee
The induction program in totality creates an awareness and understanding about the organiza- tion and socialises the new entrant into the organizational fabric and weds him into the organiza- tional ethos.
Trainees join in large batches of 400-500. Joining formali- ties are followed by a week long induction program which begins with a grand inaugural function on day one. Among company top officials, many dignitaries like the Union Minister for Power join to welcome the new batch and give their blessings. In the following days, new hires are given a com- pany overview by various functional heads. The organization has built its cadre through three primary modes of hiring process viz (i) Executive Trainees (ii) Diploma Trainees (iii) Artisan Trainees. The initial induction process is followed by a 52-week in- duction training program, which has a mix of classroom learning and on the job training. •
Executive Trainees: First Division Graduate Engi- neers/Post graduates in other disciplines like Fi- nance and HR are hired. Hiring is followed by induction training (fully paid) consisting of 52 weeks of theoretical input in class rooms/institutions, with practical training, on the job training, Simulator, management modules, NTPC systems, policies & practices, theater workshop etc, which make them a highly competent professional in respective func- tional areas at junior management level.
Diploma Trainees: Persons with Diploma in engi- neering with minimum of 70% marks are hired on the basis of all India written test conducted at re-
56 gional levels followed by interview. This is followed by 52 weeks (fully paid) training to prepare them to positions such as controllers, foremen. They also under go theoretical, practical and on the job train- ing in addition to visits to manufacturers’ works apart from exposure to company overview, busi- ness plans etc. •
Artisan Trainees/ ITI Trainees: The candidates with ITI qualifications in designated Trades like Fitter/Electrician/Instrumentation etc. are hired on the basis of a regional concept at unit levels through a written test, Trade Test and Interview. They are put through a rigorous training of 52 weeks (fully
maintenance apart from exposure to company overview, busi- ness plans etc. •
Laterals: Apart from the trainee schemes, fresh recruitment is made from campuses, as well as experienced employees from other organizations. Each recruit is provided with an interactive CD-ROM which captures all the Company information. This is particularly useful for lateral hires as well as new hires that directly join at projects. This standardized induction module ensures that everyone gets the same inputs across organization. The CDROM is given to all new joinees irrespective of their profile and function.
Training Training in NTPC is carried out with short term and long term objectives to impart skills required to carry out various jobs and provide developmental input for individual’s and organization’s future growth.
NTPC has its own
training infrastructure for provid- ing technical and managerial training which com- prises of the Power Management Institute (PMI) at apex level, Employee Development Centers (EDCs) at all locations, and Simulator Centers for providing training in operating power plants. We also sponsor employees to external training facili- ties in India and abroad. A separate provision for training and development related expenses is made in the
57 training budget. This is then subdivided into various components such as Foreign Training, External Training, PMI Budget and budget for EDCs. Our training policy envisages minimum 7 days (56 Hours) of training per employee per year which is the international benchmark in Power Sector industry (Source: AT Kearney).Training is provided to enhance knowledge and build on weak areas. Training need analysis process takes its input form Business Needs, Performance Management Data, Organization wide Training Need Analysis, Spe- cific development plans, Individual Training Need Analysis, Development Centre output, Psychomet- ric Tests output, Planned interventions at different levels, Health & Safety, TQM areas etc. Following types of training interventions are under- taken as envisaged in the training policy 1. Technical training and skill up gradation in power plant (thermal/ hydro) technologies 2. Non-technical and softer areas •
Executive and Managerial skills
Integrated personality development
Attitudes & behaviors
3. Organizational development issues like: •
Functional management area
Industry best practices
Benchmarking, 5S, QC, kaizen etc.
4. Educational Up gradation plan •
BS (Power Engg.) in collaboration with BITS Pilani.
M Tech (Power generation) in collaboration with IIT, Delhi.
PGDBM in General Management with MDI Gurgaon.
ITI for all metric pass non-executives.
Diploma course for all ITI non-executives.
59 Training on Core Values: In order to explain the meaning of core values and help employees internalize them, organization wide Value Workshops have been conducted in NTPC.
HR for Line Managers Training program to align line managers with HR functions have been started in NTPC with an objective of empowering the Line people to take care of the performance and career development aspects of their subordinates. HR for Line Manager program provides an overview of various HR initiatives such as Job Rotation, Career Growth Path, HR Audit, Mentoring System, Development Center, Attitude training, Per- formance Appraisal System, Organizational Culture, Vision, Value etc. to the line managers. This helps the individual manager to understand and appreciate the HR requirement of his team members. A work- book has been designed in-house by HR Department to conduct the programme in a focused way.
Planned Interventions For management development, we have a set of planned interventions for each stage in a person’s ca- reer. Each of these is a custom made, medium term training program, specifically designed to give de- velopmental input at a particular stage in the person’s career.
Training Evaluation NTPC follows Kirkpatrick model for training effectiveness. The training evaluation is based on measure- ment of three key metrics, which require three levels of program feedback (Program feedback, Learning feedback, and Program Impact Assessment). Training evaluation is done for all programs of more that 10 days duration.
L1: Programme Feedback The Training
Centre/PMI/HR Group, as the case may be, seeks participant feedback at the end of the training programme in the Programme Feedback Form, for making modifications/ improvements in future programmes. This is a reaction level feedback (L1), which is to be captured for all programs. •
L2: Learning Feedback
Apart from the L1 feedback, L2 feedback, which
indicates the learning acquired by the participants through the program, is also obtained for all programs conducted in NTPC. This involves both a pre andpost objective type test to determine the progress made by participants as a result of inputs provided during the training program. •
L3: Impact Assessment It involves measuring the change in job behavior of the employee on account of
the learning during the training programme. The information is collected
through the Impact Assessment Form (IAF) after com- pletion of six months of the programme by the concerned Course Director. This is done for medium and long term programs only. •
Executive Coaching/ Mentoring A mentoring/ coaching initiative called Effective Personal productivity (EPP) has been started for NTPC’s high potential senior management with the help of Leadership Management International Inc., USA (LMI) from the year 2007. A mentoring system for new joinees already exists in NTPC since the year 2000. Individual Development Plans (IDP) are prepared for senior management employees who undergo LEADS. The EPP program works at bringing about the desired transformation and results based on the IDPs through a mentoring/ coaching based approach. The key objectives
63 of the program are to build on business and life skills that will enhance productivity of each participant, which in turn impact the organization and add to its profits. The methodology comprises of structured lessons and evaluation sessions. The program facilitator, the participant and the participant’s supervisor are independently involved in the evaluations and this enables multi level inputs. This is how the process works: 1. From the IDP of the participant, areas where transformation is required are identified. Some of the common challenges identified to be addressed are: •
Impact and influence;
2. Representatives from LMI make a presentation to the participants at the beginning of the program toexplain the process. Participants undertake self-evaluation and assessment instruments to under- stand their value and how to use them 3. LMI accredited facilitator meets with the participants as well as with their bosses to establish per- ceived needs of each participant with respect to their IDP’s / Key Result areas. A triangle of commu- nication is maintained periodically between the participants, their boss and the program facilitator 4. The facilitator leads the group of participants towards action oriented interactive sessions held once a week. Participants learn to apply the proven concepts and principles from the program to address their individual challenges in their professional and personal circumstances. 5. These facilitation sessions and group interactions offer innovative and thought stimulating ideas which help participants evaluate their own attitude & behavioral changes required to be brought about; identify and develop action steps required for new habits necessary to achieve predetermined
64 goals 6. Where required, one-on-one coaching is provided as a supplement to help participants appreciate the benefit of such an intervention and provide an opportunity to discuss individual issuesThe process is implemented over several weeks so that time changed behavior patterns are applied di- rectly to every day issues and participants gain clarity in identifying goals for achieving overall objectives identified at the start of the program. In this way the program process helps in customizing the learning to each participant's specific needs 11 senior level managers of NTPC participated in EPP for the first time in 2007. The feedback obtained from the participants and their bosses indicate significant improvements in the participantâ€™s behavior. 7 out of 11 participants have reported tangible gains like; Enhanced personal productivity through controlling priorities. The participants reported that they were able to priorities their business targets as well as start some improvement programs at their workplace. One participant has initiated a system to bring about standardiza- tion of design of townships. It is estimated that the initiative will generate savings of approxi- mately Rs.6 Cr. Per annum. Align Organizational & Personal goals and achieve results. Participants reported better time management skills which helped in reducing stress in day to day work and having better control over their environment. Communicate more effectively. Participants said they were able to conduct more productive meetings.
Become a team player.Be a Coach and
Mentor for the team members. Participants are devoting more time towards development of their team members and are empowering them. Thrive in a learning environment. One of the participants has commenced work on approach to Gas Sourcing, which is a major area of challenge for NTPC today. It is expected that continued practice of approaches learned at the program will accelerate their transition from Managing to Leading. The success of the program has been felt by the top management of NTPC and
65 a second program is being launched shortly. System of Training Nomination In the organization wide surveys conducted in NTPC, one of the concern areas that emerged was sys- tem of training nomination. Some employees expressed that need based training being provided to them were not adequate and sometimes they could not attend due to not being informed on time regarding the dates of the programme. To take care of this anomaly, a system of self-nomination through ESS (Employee Self Service through SAP ERP) has been implemented. As per NTPC’s training policy, each employee has to complete 7 mandays training per annum. In the earlier system, training calendars of the apex training institute (PMI) as well as local employee develop-ment centers (EDCs) were manually circulated amongst Head of Departments. Additionally, brochures of external training programs were circulated inviting nominations for the programs. The Head of Depart- ment (HoD) either distributed the calendar to employees under him or used to nominate someone from department based on training needs of the employees. In very large departments, it was a cumbersome job to circulate the program brochure manually or to remember training needs and training mandays of all employees. This sometimes led to mismatch of training needs and training nominations.
Under the new
system, the responsibility of training nomination rests with the individual rather than being with the HoD. The bi-annual training calendar of PMI and annual training calendars of EDCs have been posted on ESS. Additionally notification of external training programs can be made on the portal. The employee can choose from the list of programs and nominate himself. The nomination is routed to the training institute via the individual’s HoD. The benefits of the system are: •
The system operates faster than earlier system and requires less coordination efforts by the training institutes and HoDs for circulating the program and seeking nominations
Automatic generation of periodic training MIS which was being generated
66 manually so far •
The employee response to training program can be known. This will help training coordinators to de- cide if more of, or less of, the training program should be scheduled in the future
Initial reaction of employees towards the new system has been positive. Measure of how this system has impacted employee satisfaction with training systems will be undertaken in the next organization wide climate survey. Employee Productivity Indices The skills and competency level of the employees has improved over time. This is reflected in the fact that today we have an executive (professional) to non-executive ratio of nearly 1:1 down from about 3:5 in 1991. Due to enhanced skills level the Man:Megawatt ratio has come down from 1.6 in 1991 to 0.9 in 2006. It is further planned to bring it down to 0.6 through making our employees multi- skilled and specialists. The improved generation per employee in Million Units is given in the exhibit.
Despite a surge in cost per employee from Rs.3,69,484/- in FY 1999-2000 to Rs.6,75,185/- in FY 2006-07, we have been able to improve our profitability. This can be seen from the Profit after tax (PAT) in per employee and Value Added per Employee figures for past 8 financial years as given in the exhibit.
Training and Development Budget NTPC has been slowly increasing the allocation towards training and develop- ment of employees in its HR budget. Training and development expenses as a percentage of HR budget is given in the exhibit.
70 Objectives:(1) To understand the employees for whom training and development practices are being conducted in NTPC. (2) To understand the important barriers of training and development practices in NTPC. (3) To understand the methods of training practices which are used in NTPC. (4) To understand the expectation of employees in terms of training programmes which they feel are important for their career progression. (5) To know about the conditions that should be improved during the training sessions. (6) To know about the skills of trainer which will make the training and development practices more effective in NTPC.
(1) Type of research:-Descriptive (which describes the situations as it is) (2) Sampling Technique :- Convenience (3) Type of data to be collected:-Primary (4) Data collection method:-Survey (5) Sample unit:- Employees of NTPC (6) Data collection instrument:-Questionnaire (7) Sample size:-100 (respondents) (8) Data representation tools:-Pie-chart
Research Design: Research design is the planned structure answers strategy of investigation conceived so as to obtain answers to research questions and to control variance. There are several ways of studying and taking a problem. There is no single perfect design. Different types of research designs have emerged on account of the different perspective from which a research study can be viewed. Descriptive Research In this research work the ideas, concepts and the procedures far or less are taken
experimental researches are used to find solutions to the problem. Data collection method This survey has been done through primary data collection. For primary data questionnaire method has been adopted for consumer. The questionnaire has only close ended question Sampling design Sampling may be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. In other words, it is the process of obtaining information about an entire population by examining only a part of it. In most of the research work and surveys, the usual approach happens to be make generalizations or to draw inferences based on samples about the parameters of population from which the samples are take .The sample size was decided to be within the range which is assumed to be adequate.
74 Sample Size:
(1) Your Organisation considers training as a part of organisational strategy.
76 Do you agree with this statement? Choices Strongly agree Agree Neutral Disagree Strongly disagree
No. of respondents (%) 32 60 8 0 0
Interpretation As majority of the respondents are agreed with the statement thus we may conclude that NTPC considers training as a part of organizational strategy and provides developmental input for individualâ€™s and organizationâ€™s future growth.
(2) How many training programmes will you attend in a year? Choices 2-3 4-6 6-7 8 and above
No. of respondents (%) 10 85 5 0
InterpretationAccording to the above data we may conclude that NTPC provides enough training to their employees within a year to enhance their skills and knowledge and build on weak areas.
(3) To whom the training is given more in your organisation?
Choices Senior staff Junior staff New staff Based on requirement
No. of respondents (%) 8 0 60 32
InterpretationAccording to the above data we may conclude that Training policy of NTPC takes care of training needs of the employees whether they would be new recruited employees or experienced employees working at all levels.
(4) What are all the important barriers to Training and Development practices in your organisation? Choices Time Money Lack of interest by the staff Non-availability of skilled trainer
No. of respondents (%) 36 8 52 4
InterpretationAccording to the above data we may conclude that lack of interest by the staff and time
scarcity are the important barriers in the training and development
practices of NTPC.
(5) What mode of training method is normally used in your organization? Choices Lecture sessions External training Conference/discussion Programmed instruction All of the above
No. of respondents (%) 9 3 5 10 73
InterpretationAccording to the above data we may conclude that in NTPC different training
methods like lecture sessions, conference / discussion , Programmed
instruction , external training etc. are used as per the job requirement .
(6) Enough practice is given for us during training session? Do you agree with this statement? Choices Strongly agree Agree Neutral Disagree Strongly disagree
No. of respondents (%) 35 55 6 4 0
InterpretationAs majority of the respondents have said that NTPC provides them enough time for practice thus they get opportunity to practice what they have learnt in training programme so that training can be transferred to workplace effectively and results in performance improvement.
(7) The training sessions conducted in your organisation is useful. Do you agree with this statement? Choices Strongly agree Agree Neutral Disagree Strongly disagree
No. of respondents (%) 28 60 12 0 0
InterpretationAs most of the respondents have said that training sessions are useful for them through which they can increase their skills and knowledge.
(8) Employees are given appraisal in order to motivate them to attend the training. Do u agree with this statement? Choices Strongly agree Agree Neutral Disagree Strongly disagree
No. of respondents (%) 25 70 5 0 0
Interpretation As majority of the respondents have said that NTPC provides appraisal to their employees to motivate them to attend the training and development programmes.
What type of training is being imparted for new recruitments in your
organization ? Choices Technical training Management training Presentation skill All of these Other
No. of respondents (%) 6 5 4 85 0
InterpretationAccording to the above data we may conclude that NTPC provides comprehensive training in all the relevant fields to their employees.
(10) How well the workplace of the training is physically organized? Choices Excellent Good Average Bad
No. of respondents (%) 40 60 0 0
InterpretationAccording to the data we may conclude that the workplace of the training and development programmes of NTPC are well organized where different kinds of training and development programmes can be easily carried out.
What Training and Development do you need to make your career
aspirations to come true? Choices Leadership training External Degree Study Formal meeting procedures All of these Other
No. of respondents (%) 64 12 8 8 8
InterpretationAs majority of the respondents have said that they need leadership training programmes which are important for their career progression.
What are the conditions that have to be improved during the training
sessions? Choices Re-design the job Remove interference Re-organize the work place Upgrade the information material given during training
No. of respondents 8 32 0 the 60
InterpretationOn the basis of above data we may conclude that NTPC should improve the conditions
training sessions so that employees may update their
knowledge according to changing environment. like upgrade the information of the material given during the training sessions and remove interference .
(13) What are the skills that the trainer should possess to make the training effective? Choices Should possess only Soft skills Should possess only Technical skills Should possess both soft skills and
No. of respondents (%) 10 11 75
Technical skills Fond of talking to people
InterpretationAccording to the data we may conclude that the trainer should possess some skills like soft skills and technical skills to make the training
(14) What are the general complaints about the training session? Choices Take away employees Too many
No. of respondents (%) of 8
sessions Training sessions are unplanned Boring and not useful None of these
36 20 24
Interpretation â€“ According to the above data we may conclude that different employees have their different complaints regarding the training and development practices of NTPC like
most of the respondents have said that training sessions are
unplanned and boring and not useful while some of the respondents have said that they take away their precious time and there are too many gaps between the sessions. (16) Comment on the degree to which the training objective are met during the training sessions:
Choices All the objectives are met Some objectives are met Met according to the need None of the objectives are met
No. of respondents (%) 12 68 20 0
InterpretationAs majority of the respondents have said that training and development practices of NTPC are very good and they are able to meet their short term as well as long term objectives.
Findings:After completing the field survey I found that (1) Most of the employees of the NTPC think that NTPC considers training and development programmes as its organizational strategy to improve their performance on the job as well as their enhanced contribution towards organizational goals and objectives. (2) Most of the employees attend essential training programmes in a year because NTPC carries enough training programmes to their employees within a year to facilitate overall professional development of employees for increased job
satisfaction and productivity. (3) I found that in NTPC training and development programmes are being carried out not only for their new recruited employees to improve their performance on the job but also their old employees to upgrade their knowledge according to changing environment. (4) I found that in NTPC the important barriers in the training and development practices are lack of interest by the employees and time scarcity . (5) I found that a good mix of training tools are used to impart training programmes of their employees in NTPC. (6) Most of the employees of the NTPC think that they get enough time to practice what they have learnt in training programme . (7) Most of the employees of the NTPC think that training and development practices are useful for them . (8) I found that NTPC provides appraisal to their employees to motivate them to attend the training and development programmes. (9) Most of the employees think that NTPC provides them comprehensive training in all the relevant fields . (10) I found that the workplace of the training and development programmes of NTPC are well organized where different kinds of training and development programmes can be easily carried out. (11) Most of the employees of the NTPC have preferred that they need leadership training programmes for their career progression.
(12) Most of the employees of the NTPC have preferred that NTPC should improve the conditions during training sessions like upgrade the information of the material given during the training and development . (13) Most of the employees of NTPC have preferred that the trainer should possess soft skills as well as technical skills to make the training and development programmes more effective. (14) I found that in NTPC different employees have their different complaints regarding the training and development programmes.
(15) Most of the employees of the NTPC think that training and development practices of NTPC are able to meet their objectives.
Conclusions: Training and Development programmes in NTPC is carried out with short term and long term objectives to impart skills required to carry out various jobs and provide developmental input for individual’s and organization’s future growth.
NTPC has its own training infrastructure for providing technical and managerial training which comprises of the Power Management Institute
97 (PMI) at apex level, Employee Development Centers (EDCs) at all locations, and Simulator Centers for providing training in operating power plants. ďƒ˜
It also sponsor employees to external training
in India and
abroad. ďƒ˜ These training and Development programmes are able to fulfill their career aspirations. ďƒ˜ NTPC should try to reduce the complaints of employees regarding their training and development practices so that their objectives can be easily met.
LIMITATIONS:1. The time provided was less for the collection of primary data for my survey project which was the major limitation . 2. The resources were limited for conducting my survey report. 3. The authenticity of my survey report is fully dependent on the responses of the respondents.
99 4. Sometime people hesitate to give their opinion and personnel detail that is why it was also one of the major limitations which I faced during my survey.
Benefits:(1) I got the indepth knowledge of the training and development policies in a large power generating organization . (2) Through this survey I come to know about the employees for whom training and development practices are being conducted in NTPC. (3) I got information about the important barriers of training and development practices of NTPC. (4) I got information about the the methods of training practices which are being
101 used in NTPC.
Suggestions :(1) NTPC should try to update the informations given during training and development practices according to the changing environment . (2) Employees should take active participation in different kinds of training and development programmes . (3) NTPC should try to remove the complaints of the employees about the training
103 sessions like training sessions should make interesting etc. (4) NTPC should increase on job training and development programmes so that employees may get practical knowledge. (5) The company should provide opportunities to the employees to implement what they have learnt in the training and development programmes.
WEBSITES REFFERED:(i) www.Ntpcco.in (ii) www.Ntpcindia.com
Questionnaire:A survey report on â€œTraining and Development practices in NTPCâ€?. Dear sir/madam, I am conducting a field survey on aforesaid topic as a part of my curriculum, the data of which would be kept confidential & all analysis would be kept for academic purposes only. Please provide your kind support in filling up this
107 questionnaire. Thank you ANANYA PGDM-Semester III SCHOOL OF MANAGEMENT SCIENCES, VARANASI RESPONDENT PROFILE:(1) NAME:- ……………………………………………………………. (2) AGE:- ………………………….. GENDER:-…………………… (3) DESIGNATION:-…………………………………………………. (4) CONTACT NO:-………………………………………………….
Questionnaire on the topic Training & Development practices in N.T.P.C. (1) Your Organisation considers training as a part of organisational strategy. Do you agree with this statement? (a) Strongly agree
(e) Strongly disagree
(2) How many training programmes will you attend in a year? (a) Less than 10
(d) More than 40
(3) To whom the training is given more in your organisation? (a) Senior staff
(b) Junior staff
(c) New staff
(d) Based on requirement
What are all the important barriers to Training and Development in your
organisation? (a) Time
(c) Lack of interest by the staff
(d) Non-availability of skilled trainer
(5) What mode of training method is normally used in your organization? (a) Job rotation (c) Conference/discussion
(b) External training (d) Programmed instruction (e) All of these
(6) Enough practice is given for us during training session? Do you agree with this statement? (a) Strongly agree
(e) Strongly disagree
(7) The training sessions conducted in your organisation is useful. Do you agree with this statement? (a) Strongly agree
(e) Strongly disagree
(8) Employees are given appraisal in order to motivate them to attend the training.
109 Do u agree with this statement? (a) Strongly agree
(e) Strongly disagree
What type of training is being imparted for new recruitments in your
organisation? (a) Technical training
(b) Management training
(c) Presentation skill
(d) All of these
(d) Other (Please Specify)…………………………….. (10) How well the workplace of the training is physically organized? (a) Excellent
What Training and Development do you need to make your career
aspirations to come true? (a) Leadership training (c) Formal meeting procedures
(b) External Degree Study (d) All of these
(e) Other (Please Specify)……………………………………
What are the conditions that have to be improved during the training
sessions? (a) Re-design the job (c) Re-organize the work place
(b) Remove interference (d) Upgrade the information of the material
given during training (13) What are the skills that the trainer should possess to make the training