HR@NTPC A Success Story

Introduction
Indias largest thermal company, worlds sixth largest
Highly ranked among all company surveys Won several awards for company HR practices

Established in 1975 as a thermal power generating company

Conferred status of Navratna in July 1997

Human Resources Planning at NTPC

Recruitment mainly at entry level around 400 executive trainees every year Prefers to recruit from RECs rather than IITs and IIMs Almost 80% recruited were engineers Two executive positions for every three non-executive positions Very few lateral recruitments/senior positions

Training and Development Initiatives

High Budget allocation for Training Power Management Institute (PMI)
Conducts MDPs, research and consultancy Open to NTPC managers and managers of other electricity boards Training courses by foreign agencies like USAID, ODA, World Bank Tie-up with IIT Delhi

Well-equipped with technology and resources

Leadership Development programs Employee Development Centres at all its 20 plants.

Simulation Training Institutes at Korba in Chattisgarh, Kawas in Gujarat

Organization Culture- Performance

Took the best managers from companies like SAIL and BHEL
High degree of independence with accountability Strict deadlines Measures to assess project performances Performance related promotions

Performance driven work culture through benchmarking

Appraisals and Rewards

Confidential Reports System for appraisal till 1990s. New 360 degree feedback system based on Key Result Areas (KRAs) for more transparency Below par performers sent for remedial training. Moved to less important roles, if there was no improvement Voluntary Retirement Scheme (VRS) used as a last resort for underperformers. Rewards system in line with recommendendations for A.T. Kearney. HR Score card implemented, based on Balance ScoreCard principle

Employee Welfare and Benefits

Reimbursement of childrens education, scholarships

Pension scheme, Superannuation, Self Contributory Pension Scheme, Post Retirement Health Scheme
Paternity Leave

Comprehensive healthcare to employees and their families

Subsidized transport and canteen facilities 17 in-house project hospitals for employees Residential townships for employees with schools, hospitals, clubs and other facilities

Employee Safety
Delineated safety policy
Detailed safety manual Disaster Management Programs

Mock Drills, Audits

Safety training for employees Provision of personal protective and fire-fighting equipment

Employee participation
Quarterly in-house journal Horizon NTPC Open Competition for Executive talent (NOCET) every year Organization-wide Bipartite forums, Professional Circles, Quality Circles, Suggestion Scheme, Safety Circles etc

The Payoff
Top scores by the company in various workplace surveys Companys efficiency levels well above the respective national average, and was ranked second most efficient power generator in the world High ratings from reputed agencies like CRISIL, Standards and Poors etc Increase in employee productivity Low attrition rate Companys talent pool of employees recognized as one of the best in the world

Limitations of HR policies at NTPC

Companys stable career policy could not allow highly accelerated career growth.
Companys justification: Job security led to reduced stress and enables the employees to work better

High Amount spent on employee welfare was also questionable

Companys justification: Such spending was aimed making the employees more loyal, and improved performance

Preference for engineers resulting in skewed male-female ratio, with females constituting less than 5% of the total workforce

The Future: Challenges

The near monopoly enjoyed by NTPC in the 1990s now no longer exists because of emergence of private sector players like Reliance Energy and Tata Power Company.
Domains like IT, banking, pharmaceuticals, biotechnology etc. in the private sector are emerging as preferred sectors for employees. Poaching of its highly trained and competent employees by competitors

Possible courses of action

Plan a salary structure that is commensurate with the standards of the private sector, to attract good talent Identify and train exceptionally talented employees for a fast career growth Recruit and retain more women employees to have a healthy male-female ratio Catchem Young Select and train engineering students at an early stage, to foster interest in the core engineering industry Recruit employees at mid-management levels to counter attrition of senior employees

Thank You