HR - NTPC - Performance Appraisal 1
HR - NTPC - Performance Appraisal 1
HR - NTPC - Performance Appraisal 1
A
RESEARCH REPORT
ON
"TO ANALYZE THE PRESENT
PERFORMANCE APPRAISAL SYSTEM OF NTPC LTD."
DECLARATION
ACKNOWLEDGMENT
PREFACE
It gives me great pleasure to bring out this project study entitled- “To analyze the
present performance appraisal system of National Thermal Power
Corporation Ltd.”. It is interesting and at the same time, challenging also to
analyze the performance appraisal system of such a large organization.
This project study contains necessary information related to the company viz. - its
journey from the year it was founded to the present year, total capacity, product
profile, market share, sales figure, functions of various departments etc.
It covers the opinions and expectations of the employees in the form of findings.
Recommendations to improve the appraisal system have also been included. The
procedure adopted to conduct the survey and collection of information is also
described in the study.
It is hoped that the suggestions recommended in the study would be welcomed
and implemented by the management of the organization after proper
consideration.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY
the individuals and make them aware about the parameters used to evaluate their
performance.
In my own style, I have tried to find out whether the present appraisal system is
the needs of employees and provide them formal & regular feedback related to
their performance. For this purpose, I used questionnaires to get the opinions of
employees at different levels. I also went through different books, websites and
magazines to gather material related to the topic. After collecting the information,
I analyzed the data and provide the necessary suggestions to improve the system.
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PROFILE OF THE
COMPANY
INTRODUCTION
1975 to accelerate power development in the country. Within a span of 30 years, NTPC
has emerged as a truly national power company; with power generating facilities in all
the major regions of the country. Based on 1998 data, carried out by Data monitor UK,
NTPC is the 6th largest in terms of thermal power generation and the second most
efficient in terms of capacity utilization amongst the thermal utilities in the world.
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NTPC has set new benchmarks for the power industry both in the area of power
plant construction and operations. It is providing power at the cheapest average tariff in
the country. With its experience and expertise in the power sector, NTPC is extending
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consultancy services to various organizations in the power business. NTPC has entered
into a joint venture with Alstom, Germany for renovation and modernization of power
plants in India.
A "Centre for Power Efficiency and Environment Protection (CENPEEP) has been
established in NTPC with the assistance of United States Agency for International
Development. (USAID). CENPEEP is efficiency oriented, eco-friendly and eco-
nurturing initiative - a symbol of NTPC's concern towards environmental protection and
continued commitment to sustainable power development in India.
NTPC was among the first Public Sector Enterprises to enter into a Memorandum of
Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under
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the 'Excellent category' (the best category) every year since the MOU system became
operative.
Recognizing its excellent performance and vast potential, Government of the
India has identified NTPC as one of the jewels of Public Sector 'Navratnas'- a potential
global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to
realize its vision of being "one of the world's largest and best power utilities, powering
India's growth".
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Resources and follows "People First" approach to leverage the potential of its
23,500 employees to fulfill its business plans. Human Resources Function has
Trainee" Scheme was introduced in the year 1977 for recruitment in the
as on-the-job training, the new recruits are attached with senior executives under
into the Culture of the company. As part of post employment training and
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ensuring minimum seven man days training per employee per year and includes
scientific Training Needs Analysis. NTPC has created 15 project training centres,
term education are also provided through tie ups with reputed Institutions like
initiatives have been taken. NTPC Open Competition for Executive Talent
the department meet every fortnight to share their knowledge and experiences
and discuss topical issues. In order to tap the latent talent among non executives
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and make use of their potential for creativity and innovation, Quality Circles
ideas and experiences across the organization. Demonstrating its high concern for
people, NTPC has developed strong employee welfare, health & well-being and
social security systems leading to high level of commitment. NTPC offers best
quality of life through beautiful townships with all amenities such as educational,
medical and recreational opportunities for employees and their family members.
initiatives are taken to actualize the Vision and Core Values (COMIT) across the
insight to the employees about their strengths and weaknesses, the gaps in their
competencies which they can bridge through suitable support from company. Due
2003" survey by Hewitt Associates in which NTPC bagged coveted third rank.
1. ESTABLISHMENT
(C) Check whether the personal file is complete in all respect, especially
nomination papers, joining formalities etc.
(D) Extent of annual assessment being done in case of employees (i.e. no. of
complete reports received & total no. of employees).
(K) Promotion of employees against whom disciplinary action has been taken.
(M) Period for which leave is credited in advance for both executive & non-
executives.
(O) Grant of study leave as per rules. Number of employees who have been
granted study leave.
2. ADVANCES
(a) Eligibility
(b) Amount of house building advance.
(c) 2nd advance in case of conveyance.
(B) Penal interest being charged in case of default under conveyance advance
scheme.
2. TOWNSHIP ADMINISTRATION
TYPES OF QUARTERS
(B) Regarding education policy NTPC provides only infrastructural help like
building, furniture etc. for education institute.
(C) Responsibility of security of plant & township both. For plant security CISF
personnel are deployed while for township security private guards are used.
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(a) Company provides Rs. 1100 for marriage & a car for 3 days to the employee.
(b) Picnics upto 180 kms. are organised by the company for employees.
(c) Company also pays 90 % of the tour to the employee once in a year.
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1. RECRUITMENT
(B) They also engage visiting doctors for the dispensary of the company on
temporary basis.
2. MANPOWER PLANNING
(B) IE section also look after the complete Human Resource Management System
of the company.
(C) They address the grievances of the employees and provide information to the
management.
(D) They are engaged in the transfers of the employees with in the project i.e.
BTPS.
(E) They give incentives to the employees for their good performance.
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TYPES OF INCENTIVES
(a) ‘Meritorious productivity award’ given on 26th January & 15th August in the
form of cash.
(b) ‘Star of the month award’ given on monthly basis in non monetary form.
(c) ‘Badarpur Bhushan award’ given yearly to those employees whose last 3
years performance is outstanding.
3. EMPLOYEE DEVELOPMENT
(A) There is a suggestion scheme for employees in which they can give their
suggestions to the management of the company.
(B) Company also has job rotation policy for the employees.
(C) IE section also carry out a quarterly magazine called ‘Sankalp’ in which
different informations are included.
4. PROMOTION
The powerhouse runs on 24 hrs. basis and different operational activities are
carried out continuously. For general staff Sundays are weekly off while for the
operational staff every 4th day is off.
Regarding welfare activities of the employees, both statutory & non statutory
facilities are provided.
STATUTORY FACILITIES
(A) Canteen facility for breakfast, lunch & dinner is provided to the employees.
(B) Rest rooms for the purpose of relaxation are also available for employees.
(C) There are separate toilets for ladies & gents in the company.
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(C) Balbhavan for small childrens for the purpose of their development.
(D) Ladies club & NTPC club for recreation purpose of the employees
(F) House building and conveyance advances are given to the employees.
.
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COMPANY PROFILE
November, 1975
December, 1976,
The first super thermal power project at Singrauli was cleared by Government of
India. A modest beginning with strong determination and high spirits, moving
ahead, gathering pace and heading on to what is today projected as a benchmark
in the power generation sector. NTPC - An organization symbolizing reliability,
strength and a responsible growth was born. The expansion and advancement of
the company was continuous and speedy.
Year 1978
Year 1982
Steering ahead with times, by this year, the first unit of 200 MW of Singrauli,
was successfully commissioned on February 13. The Rihand project was also
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cleared by Government of India with British assistance. The first unit of the
Korba project was commissioned and the Ramagundam project began
commercial operation by 1983.
Year 1984
Year 1986
NTPC entered into the 500 MW era by synchronizing its first 500 MW unit at
Singrauli in 1986. Farakka also entered operational phase.
Year 1987
The first bud sown by NTPC burst full bloom. The Singrauli project achieved the
full capacity of 2000 MW. The Korba project added first 500 MW Unit. Keeping
in line with all the developmental activities, the first 210 MW unit of
Vindhyachal project, which now has a capacity of 2260 MW, also came on
stream. The first unit of 500 MW at Rihand was also commissioned by year 1988.
Year 1989
To serve the power sector in India and abroad - the Consultancy Wing was
launched... acting as a window for the globalization of NTPC operations. A
capacity addition of 3,234 MW was made at Korba, Ramagundam, Vindhyachal,
Rihand, Auraiya and Anta together.
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Year 1990
NTPC's first gas based combined cycle power plant at Anta, Rajasthan achieves
full capacity. Year 1991 saw the commissioning of the first unit of the Dadri
project.
Year 1992
Unchahar project with a capacity of 420 MW was taken over from the Uttar
Pradesh Rajya Vidyut Utpadan Nigam (UPRVUN). NTPC achieved a complete
turnaround in the operation of the station. Two units with a capacity of 210 MW
each were commissioned by NTPC after take over. Kahalgaon Project went on
stream by synchronizing its first unit. The Kawas project with a capacity of 645
MW became fully operational by year 1993.
Year 1994
The first unit of Jhanor-Gandhar Gas Project was synchronized. The Centre for
Power Efficiency and Environmental Project (CENPEEP) was set up.
Year 1995
The first 500 MW unit of Talcher Super Thermal Power Project commissioned.
By the year 1997, the Government also approved the Simhadri project with a
1000 MW capacity and the Faridabad Gas project with a capacity of 430 MW.
Year 1998
By this year, the first Naphtha based plant of the country at Kayamkulam with a
capacity of 350 MW came on stream. NTPC has been declared worlds sixth
largest thermal power producer during 1998, by Data monitor, U.K.
Year 2000
NTPC's foray in the Hydro sector. A beginning made with Koldam, the first
Hydro Electric Power Project with a capacity of 800 MW in Himachal Pradesh.
NTPC also took over Tanda Thermal Power Station (440 MW) of Uttar Pradesh
State Electricity Board (UPSEB).
Building up well defined, short and long term plans, with committed time
schedules, evolving planned and organised functioning and ensuring dedication,
loyalty and promptitude of those involved. Developing a participative
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Keeping pace with its ongoing mission of constant, responsible development and
continuous progress and growth, the organization strove towards, improvement
everyday. Venturing out, innovating, leading on and reaching pinnacles of
success. Winning laurel, acclaim and appreciation and above all assuming the
role of a market leader in the field of power generation.
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PRODUCT PROFILE
viz. - coal based, gas/liquid fuel based & joint ventures. Its total commissioned capacity
including the joint ventures is 22,249 MW. It is also managing Badarpur Thermal Power
Station (705 MW) of Government of India. In total it has 13 coal based, 07 gas/ liquid
fuel based & 03 joint ventures with Steel Authority of India Limited. The complete
station wise list with respective capacity is given below-:
ESTABLISHMENT
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1. Turnover of Rs.19,984.58 crore and Net Profit after tax Rs.3607.57 crore.
4. Achieved all MoU targets in the excellent rating during the year 2002-03 for
the 16th consecutive year.
7. 1000 MW capacity added during 2002-03. The fourth 500 MW unit at Talcher-
Kaniha has also been synchronized in October, 2003.
8. Capacity addition of over 9370 MW planned for 10 th plan and about 11210
MW for 11th plan. Projects totaling 5300 MW capacity under various stages of
construction.
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GM
DGM (HR)
PERFORMANCE APPRAISAL
DEFINITION
1. Promotions
2. Transfers
3. Wage and Salary Administration
4. Training and Development
5. Personnel Research
6. Self Improvement
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TRADITIONAL METHODS
1. Unstructured Appraisal
2. Employee Ranking
3. Forced Distribution
4. Graphic-Rating Scales
5. Check-Lists
6. Critical Incidents
7. Field Review
MODERN METHODS
1. Management by Objectives
2. Behaviorally Anchored Rating Scales
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EMPLOYER’S PERSPECTIVE
EMPLOYEE’S PERSPECTIVE
1. HALO EFFECT
This type of error occurs when the rater allows one aspect of a man’s
character or performance to influence his entire evaluation.
2. CENTRAL TENDENCY
This error occurs when the rater is in doubt about the subordinates or has
inadequate information about them or is giving less attention and effort
to the rating process.
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3. LENIENCY ERROR
Some supervisors have a tendency to be easy raters. Lenient raters
consistently assign high values to their subordinates. This type of error
results in wrong evaluation of the performance of subordinate.
4. STRICTNESS ERROR
Some other types of supervisors have a tendency to be harsh in their
ratings. They continuously give low ratings to their subordinates.
5. RECENCY EFFECT
Often some raters evaluate persons on the basis of their performance in
recent few weeks, average constant behaviour is not checked.
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RESEARCH
METHODOLOGY
OBJECTIVES OF STUDY
SCOPE OF STUDY
5. They are not aware about the parameters on which their performance
is measured.
RESEARCH PROCEDURE
STEPS IN RESEARCH
1. Understanding the nature & scope of business, the organizational &
departmental structure.
RESEARCH DESIGN
SAMPLING DESIGN
The sampling design used for the study was “Stratified Sampling”. The
different strata or homogeneous groups formed were-:
1. Executives
2. Supervisors
3. Workman’s
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SAMPLING UNIT
SAMPLE SIZE
1. PRIMARY DATA
Primary data are those which are collected for the first time and therefore
original in nature.
2. SECONDARY DATA
Secondary data are those which have already been collected by someone
else and hence passed through the statistical process.
(C) Magazines
(D) Websites
1. TABLES
2. PIE CHARTS
3. BAR GRAPHS
4. LINE GRAPHS
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LIMITATIONS OF STUDY
7. The organization was very large, so it was not possible to cover all the
departments.
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12%
38%
Yes
No
Can’t say
50%
Q2. Do you feel comfortable with your reporting officer while discussing
your KRA’s/ performance?
29%
Yes
No
Can’t say
12% 59%
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Q3. Are you aware of the criteria used for your 3performance appraisal?
47% Yes
No
Yes
No
Can’t say
38%
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Q5. The formal appraisal done by the organization matches your self
assessment.
21%
24%
Q6. Monetary & non monetary rewards are given to you are based on
your performance appraisal rating. Yes
No
Can’t say
6%
29%
55% Yes
No
Can’t say
65%
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Q7. The formal feedback and development of new or better job related
skills are in accordance with your performance appraisal.
26%
32%
Yes
No
Can’t say
42%
Q8. In case of adverse entry, is it properly and timely communicated to
you and do you get sufficient opportunity to appeal to the higher
authorities?
44% 21%
Yes
No
Can’t say
35%
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Q9. Formal appraisal system helps in discovering your true potential for
higher responsibilities.
21%
32%
Yes
No
Can’t say
47%
Q10. Do you think sufficient time has been given to you for discussion
and guidance to improve your performance?
9%
38%
Yes
No
Can’t say
53%
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15%
Yes
No
Can’t say
50%
35%
24%
29%
Yes
No
Can’t say
47%
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32%
Yes
No
Can’t say
9% 59%
32%
Yes
No
Can’t say
9% 59%
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On the basis of the survey conducted, following points has emerged out
which require the attention of the management-:
4. Many employees are not aware about the criterion used for their
appraisal.
6. There is a wide gap between the self assessment by the employee and
the formal appraisal done by the organization.
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9. The appraisal system does not help the employees to discover their
true potential for higher responsibilities.
13. Training is not provided to the employees on the basis of his/ her
performance appraisal rating.
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5. Both appraiser & appraise should combinedly set realistic targets that
can be achievable, otherwise the procedure of setting KRA’s is wastage
of time.
11. Training should be provided to the employee on the basis of his/ her
performance appraisal rating. It will help him/her to get new skills.
15. After the level of manager, there should not be fixed time limit for
promotion and employees get higher responsibilities on the basis of their
potential and aptitude. So, there should be potential appraisal along with
performance appraisal at this level and above.
BIBLIOGRAPHY
BOOKS
MAGAZINES
Business World
Business Today
Outlook
The Times of India
WEBSITES
www.ntpcindia.com
www.ntpc.co.in
www.google.com
www.toolpack.com
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www.bpubs.com
QUESTIONNAIRE
3 Are you aware of the criteria used for your performance appraisal?
6 Monetary and non monetary rewards given to you are based on your
performance appraisal rating.
10 Do you think sufficient time has been given to you for discussion and
guidance to improve your performance?
Reasons: 1
2
3
Suggestions: 1
2
3