EXECUTIVE SUMMARY

Performance management system, performance appraisal, review of career development

discussion are methods by which the job performance of an employee is evaluated (generally in
terms of quality, quantity, cast, and time) typically by the corresponding manager or supervisor.
Performance Appraisal is a part of guiding and managing career development. It is the process nf
obtaining, analyzing, and recording information about the relative worth of an employee to the
organization. Performance appraisal is an analysis of an employee's recent successes and failures,
personal strengths and weaknesses, and suitability for promotion or further training. It is also the
judgment of an employee's performance in a job based on considerations other than productivity
alone.
Generally, the aims of a performance management system are to:
Give employees feedback on performance
Identify employee training needs
Document criteria used to allocate organizational rewards
Form a basis for personnel decisions: salary increases, promotions, disciplinary actions,
bonuses, etc.
Provide the opportunity for organizational diagnosis and development
Facilitate communication between employee and administration
Validate selection techniques and human resource policies to meet federal Equal Employment
Opportunity requirements.
Improve performance through counseling, coaching and development.
Performance Management System is very effective in NTPC Rihand. It is different from
previous PMS Policy as the ePMS have been launched from the previous year only as per the

current technological situation demand, which have shown effective response. By the PMS
Policy the organization is measuring the performance of the executives.
PMS is also the source of getting the promotion to the employees. PMS measure all the aspects
such as performance of the executives on Key Performance Area (KPA), Core Values,
Managerial and Potential Competencies of the employees.
PMS is the mode of getting the Promotion, Training; Educational facilities etc. The performance
of the employees is encouraged by giving the feedback and reward such as promotion, salary etc.
according to PMS score.

HISTORY OF NTPC DEVELOPMENT

1982-13/2/82 -Singrauli First Super Thermal Power Station
I386- 500 MW STARTEB IN SINGRAULI
I33I-UNCHAHAR ACQUIRED
1335-TTPS ACQUIRES
I975- ESTABLISHMENT DF NTPC
I978- SINGRAULI .KDRBA.RAMAGUNB INAGURATEB

1978- BADARPUR MANAGEMENT

1337-ldentified by the GOI as one of the Navratna public sector undertakings, Achieved I00
billion
units generation in one year
1338- KYAMKULLAM- NAPTHA STARTEB
1333- BIGGEST CDMPANY IN INDIA
2DBB-CommBnced construction of a first hydro-electric power project of 8BBMW capacity in
Himachal Pradesh
2BB4-NTPC became a listed company
2BB5- NTPC received the International Project Management Award, 2BB5 for its Simhadri
Project
at the International Project Management Association World Congress. NTPC became the only
Asian Company to receive this award
NTPC was ranked as the Third 'Great Place to work for in India' for second time in succession by
a
survey conducted by Grow Talent and Business World 2005
The Company's name changed to NTPC Ltd.

2008-NTPC was ranked Number I in the 'Best Work places far Large Organizations and
Number 8 overall far the

year 2008 by Great Places to Work Institute's, India chapter in

collaboration with the Economic Times

2010 - Status of MAHARATNA accorded by GOI at NTPC.

SIZE & STATURE

OWNERSHIP:
GOVERNMENT OWNS 84.5%
FOREIGN INSTITUTIONAL INVESTORS (Flls) OWNS 3.60% AND 11.90% OWNED BY
DOMESTIC INSTITUTIONS & PUBLIC
SIZE:
AMONG THE THREE COMPANIES WITH A MARKET CAP OF OVER RS I.50.000
CRORE (USD 30 BILLION) +
NET WORTH OF RS 58,000 CRORE (USD II BILLION) +
TOTAL ASSETS OF RS 101,000 CRORE (USD 20 BILLION) + Z
INDIA'S LARGEST POWER GENERATING COMPANY WITH 29% SHARE

RANKED # I INDEPENDENT POWER PRODUCER IN ASIA 2008 AND RANKED 2nd IN

INDEPENDENT POWER PRODUCERS

GLOBALLY WITH OVERALL PERFORMANCE AT RANK NO I0 IN ASIA (BY PLATTS,

A DIVISION OF McGRAW- HILL
COMPANIES)
317th LARGEST COMPANY IN THE WORLD (FORBES RANKING-2009) JUMPS UP 94
POSITION FR90M THE 411th RANK IN
2DD8.

Human Resources - Key to NTPC Success

More than 25000 trained employees
Senior executives possess

rich experience of the industry

Planned interventions at various stages of career

Systematic training ensures 7 man days training per employee per year
Knowledge sharing & development

through various HR initiatives

GREAT PLACES TD WDRK IN INDIA 2008 - Ranked Number one in the special category the
"Best Workplaces for large organizations" and number eight overall - By Great Places to Work
Institute's India chapter in collaboration with the Economic Times
HYDRO POWER
Thrust on Hydro Development for a balanced portfolio for long term sustainability.

Implementing three Hydro Projects totalin 1920 MW:

Koldam - 800 MW
Loharinag- Pala 600 MW
Tapovan Vishnugad - 520 MW
POWER TRADING
NTPC Vidyut Vyapar Nigam Limited (NVVN) a wholly owned subsidiary of NTPC
NVVN traded 4832 Million Units in FY 2008-09, making a Profit after Tax (Provisional
unaudited) of Rs. 45.8 Million.
"National Power Exchange" - a JV between NTPC, NHPC, PFC and TCS incorporated for
setting up Power Exchanges.
ASH BUSINESS
NVVN Plans to set up cement grinding units at NTPC'S stations in Joint Venture with
cement companies.
JV expected to be finalized for two stations.
NVVN is also engaged in the business of FLY ASH EXPDRT and sale to domestic customers.
POWER DISTRIBUTION
NTPC Electric Supply Company Limited (NESCL), a wholly owned subsidiary of NTPC, for
distribution.
Also handles Rural Electrification

KINESCD Power and Utilities Pvt Ltd: JV set up by NESCL with Kerala Industrial
Infrastructure Development Corporation (KINFRA) for distribution of power in industrial parks /
SEZ run by KINFRA.
In 2008-09, NESCL made a Profit After Tax (Provisional Un-audited) of Rs. 17.5 Million
NETRA- FOCUS ON RESEARCH & NEW TECHNOLOGIES
R&D DEPARTMENT FUR APPLIED RESEARCH
ENERGY TECHNOLOGIES: WORKING ON 14 PROJECTS THROOGH IDENTIFIED
INSTITOTIONS IN AREAS PERTAINING TO
POWER PLANT EFFICIENCY IMPROVEMENT
CARBON SEQUESTRATION
WASTE HEAT UTILISATION, ETC
ET AND R&D CENTRE MERGED TO FORM NETRA (NTPC ENERGY TECHNOLOGIES
RESEARCH ALLIANCE)TO ENABLE MORE FOCUS AND SYNERGISTIC RESEARCH
INTEGRATED GASIFICATION COMBINED CYCLE (IGCC):
NTPC IN COLLABORATION WITH BHEL IS IN PROCESS OF INSTALLING AN IGCC
PROJECT IN AURAIYA.
NTPC, IN ASSOCIATION WITH NEXANT, HAS DONE STUDY ON GASIFIER SUITABLE
FOR INDIAN COAL
NTPC HAS SET ASIDE UPTO I.0% OF PROFITS FOR R&D INCLODING 0.5% FOR
SUSTAINABLE ENERGY RESEARCH

CORPORATE SOCIAL RESPONSIBILITY

NTPC has framed corporate social responsibility guidelines committing up to Rs 17 crore
annually for community welfare measures on perennial basis.
NTPC foundation formed to address social issues at national level. it provides loans / training /
medical treatment to physically challenged persons and economically weaker sections.
the welfare of project affected persons and the local population around NTPC projects is taken
care of through well drawn rehabilitation and resettlement policies.
providing off grid connectivity to villages through distributed generation.
NTPC has embarked upon an initiative td adopt it is in the vicinity of its plants.
board approval for setting up 3 new iti's at RIHAND, NDRTH KARANPDRA and SIPAT.
development work being undertaken td renovates 15 existing iti's. funds
sanctioned for 12 and expected for balance.

support of RS 14.7 crore committed for setting up a polytechnic at kaladhungi in uttarakhand

grant provided to hyderabad eye research foundation for three specialized eye centers at
BHUBANESWAR eye hospital
providing sponsorship to candidates for iti training at recognized private itis in the trades of
welder, fitter, instrument mechanic and electrician. close to 750 village sponsored for iti training
in various trades.
support being provided for conservation of selected national monuments in association with asi.
development of renewable energy source
NTPC plans to have at least 1000 mw df renewable in its portfolio by 2017.
MUO signed with Asian development bank, ge energy financial services and kyosho
electric power cd. to form a joint ventore firm to undertake renewable power
generation.
setting of off-grid distributed generation power projects in villages aroond ntpc
power plants through a self sustaining model - id such projects commissioned based
on biomass, solar pv, micro hydel, etc.
nit issued for setting up i00 mw wind farm; bids opened
MOU signed with karnataka power company ltd. for setting op 500 mw wind based
capacity.

HUMAN RESOURCE MANAGEMENT

NTPC has a pool of capable and committed manpower. The total manpower strength of
employees of the corporation stands at 23716 as on 3I.03.12 as against 23.633 for the year 201213 (excluding employees in JVs and subsidiaries). All efforts were made to improve the
manpower utilization. The overall man: MW ratio for the year is 0.87.
During the year NTPC received the "Gold Award for Excellence in People Management". By
grow talent in a 2000 survey by Grow Talent and Business World, NTPC was declared as the
"Seventh great place to work far" in India.

CHAPTER -II
NTPC RIHAND AT
GLANCE

RIHAND SUPER THERMAL POWER PROJECT

This region locally known as "DAKSHINANCHAL" is now one of the major Power Centre in
the country, due to the availability of large quantity of coal in the mines of the Northern Coal
Fields, water from Rihand Reservoir and barren land with a relatively low density of population.

MAIN PLANT
All plants and equipments for the first stage ( 2 x 500 MW ) of this project are supplied under a
single contract agreement with Northern Engineering Industries of U.K., signed on 30 Sept' I982.
The Indian operation of handling these equipments up to commissioning has been done by NPIL
a subsidiary of NEI. Civil works are done by NPIL Indian contractors, the major one being
Indian Railway Construction Company Ltd. For Merry-go-Round (MGR), National Project

Construction Corporation Ltd. For Plant civil works, Hindustan Construction Company Ltd. For
CW System & Chimney, AFCDNS for major bridges etc.

PERFORMANCE
The Unit-l and Unit -II of the first stage were declared on commercial operation from Jan 90 and
Jan 91 respectively. This station has registered more than I00% generation during the two
consecutive months of Feb and March 93. The station has achieved more than I00% generation
in Jan, 92 and Nov 96 also. The capital overhauling of 500 MW Unit first completed in record
duration of 37 days, which is the shortest duration achieved for any 500 MW Unit.
Another remarkable feature of NTPC is the high Plant Load Factor (PLF) of the plant in
comparison to the National average PLF, NTPC PLF is much higher.
The Unit I & II of the station have a record of I0I.53 % PLF in Nov 91 and I02.45 % PLF in Feb
93 respectively. The station has achieved all time high generation at I0I.02 % PLF in Nov. 96.
During 2002-03 Financial Year Rihand has been selected as Best Power Plant of NTPC having
87.89 % for highest PLF.

ENVIRONMENTAL PROTECTION

An organization with an environmentalist in every employee, NTPC is currently investing over

US$ I20 million in retrofitting the old systems for abating pollution.
NPTC has planted more than 15 million trees in and around its power stations to keep its
commitment towards green power. NTPC in association with US department of energy and
USATD has established a Centre for Power Efficiency and Environmental Protection. It acts as a
resource for assimilating and disseminating and demonstrating technical knowledge now on

efficiency/utilization improvement, eco-friendly areas, like utilization, energy conservation and

environmental protection. In the Indian Power sector as a whole will be the target beneficiary.
Before 1983, the project was totally an isolated one as far as communication is concerned. It was
first connected to Shaktinagar and then to New Delhi through Wireless. Presently the project has
the most modern facility of communication such as STD/ISD/FAX etc. commissioned by
Department of Telecommunication (DoT). In addition to above the project has its own Satellite
communication System (SATODM) connecting its Corporate Centre and a number of other
NTPC projects located throughout India. Recently Mobile Telephone facility has also been
started by BSNL

HR FUNCTIONS AT NTPC RIHAND

The three R's have been properly taken care of in NTPC viz., Recruiting, Retaining and Retiring.
The HR Function in NTPC Rihand comprises of the different functions which has been grouped
under the following sections:

1) EMPLOYEE BENEFIT

Headed by: Sh. Manoj Kumar Verma, Officer (HR)

The EB Section looks after the various employee advances, employee benefits, facilities,
incentives and other benefits. Its functions are manifold. Its functions are as under:
i) Recruitment of employees in the Non - Executive Cadre
ii) Joining of an employee - Fresh and On Transfer
iii) Clearing of probation
iv) Promotion of employees
v) Adherence to the Annual Appraisal of the employees
vi) Employee Benefits / Facilities

Medical Attendance and Treatment of the Employees

Special Disability Leave
Facilities for Higher Studies
Reimbursement of Membership Fees for Professional Bodies / Institutes
Reimbursement of expenditure on Children's Education

Forwarding of Application for outside employment

Forwarding of applications for company's sponsored education programmes viz M.Tech. Of IIT
Delhi; BS in Power Engineering of BITS, Pilani and PGDBM of MDI, Gurgaon
Sanction of Merit Scholarship to the children of NTPC employees
vii) Employee Advance
Sanction of House Building Advance
Sanction of Conveyance Advance
Sanction of Personal Computer Advance
Sanction of Furnishing / household item Advance
Sanction of Multipurpose Advance
Sanction of Medical Advance
viii) Incentive Scheme
Sanction of Incentive for promoting Small Family Norms
Project incentives
Generation incentives
Incentive-additional Qualification
Small family norms
National awards
Suggestion scheme

Quality circle
Non monetary incentives
Hindi incentives
Long service award
ix)

Terminal / Insurance Benefits

Processing and forwarding of Claims under Group Personal Accident Insurance Scheme
Processing and forwarding of Claims under Group Insurance Scheme
Ensuring insurance of HBA amount sanctioned to employees
Processing of Applications for Temporary and Permanent withdrawal from Provident Fund
Forwarding of applications for the payment of gratuity
Processing of applications under NTPC Employee's Family Economic rehabilitation Scheme
Processing of applications for availing Medical Facilities by the retiring employee or the spouse
of the deceased employee under NTPC Contributory scheme for Post Retirement Medical
Facilities
Processing of applications for the payment under NTPC Self Contributory Superannuation
Benefits (PENSION) Scheme
Processing and forwarding of applications for resignation
Termination of employees under Service Rules, Conduct Discipline and Appeal Rules and
Standing Orders.
Ensuring the payment and final settlement to the employees on retirement

ix)

Other Functions

Advice to other departments and sections regarding clarification of HR policy and procedures.

2) PUBLIC RELATIONS

Headed by: Sh. M Saran, Dy. Manager-PR

This Department looks after all the internal and external communications areas including press
relations, house magazines, advertising, films etc. The total advertisement activity of NTPC,
including releasing of tenders notices and job advertising are being coordinated by the PR
Department.
Responsibilities of PR Executives:
Publishing and coordinating of
House journal
Video Magazine
Press Conference
Press Visits
Radio Coverage

Video Coverage
News Reporting
Draft Speech for Chief Guest
Publications of NITS /Advts.
Press Releases
Folder/Brocher
Finalization of Regular Contracts
Photography/Videography etc.
PR Support far R&R activities
Comparing the programme

3) EMPLOYEE SERVICES

Headed by: Township Administration is headed by Sh Rohit Pal, Sr. officer-HR and General
Administration is headed by Sh Rohit Pal S.Manager and Sh Ritesh Bhardwaj, Dy. manager-HR
Important Functions:

ADMINISTRATION
TOWNSHIP ADMINISTRATION
Quarter Allotment to the Employees
Quarter Allotment to the Contracting Agencies
Quarter Allotment to the Associated Agencies
Shop Allotment
Public Buildings (Bank, Post Office etc.)
Rent Recoveries for the contracting agencies and

GENERAL ADMINISTRATION
Issue of Entitled Items as per norms
Procurement of the Office Furniture,
Plant
etc Security (CISF)
Guest House

associated agencies
Rent Fixation & Revisions
Eviction of Unauthorized occupancies
Township Security

4) EMPLOYEE WELFARE

Headed by: Sh.K.Gnpalkrishnan

Welfare is convenient term to cover all those aspects of Industrial Life that contributes to the
general well beings of the workers. Welfare helps to keep the atmosphere to Township vibrant
and full of life and to improve satisfaction level of the employees and their family members.
Welfare is a broad term encompassing measures aimed at providing Housing, Medical,
Schooling, Sports & games, Social, Cultural & Recreational etc. facilities.

WELFARE ACTIVITIES
These activities include those activities which are being laid down by Management of NTPC in
Rihand for their employees. Some are listed below:
Employee Welfare Association (Kalyan Kendra)
NTPC Officer's Club (Indradhanush)
NTPC Sports Council
NTPC Ladies Club (Vartika Mahila Mandal)
Co-operative Society (NTPC ECCS Ltd.)
Regional & Inter Regional Sports
Schools
Transport Facility
VIP Visits

5) EMPLOYEE DEVELOPMENT GROUP

Headed by: Sh. Vijay Kishor

i) This department Looks after the overall development of the Employees. They focus on the
development aspects by looking after their Training & Developmant needs, Career Growth
needs, Motivation and Moral Support needs etc.
FOUR PILLARS OF HR INITIATIVES
Competency Building
Commitment Building
Culture Building
System Building
5 S
SEIRI (Organization) - arrange the article in order only
SEITIDN (Neatness)
SEISD (Cleaning)
SEIKETSU (Standardization)
SHITSUKE (Discipline)

he main activities performed by the section are:

Organizational Climate Survey
HR Audits
Job Rotation
Quality Circle

Manpower Trend Analysis

Re-training and re-deployment
Long Service Award
NTPC Reward and Recognition Scheme

6) EMPLOYEE RELATION

Headed by: Sh R.P.Singh

This department coordinates with various employees associations in the matter of Employees
Benefits and policies to coordinate with Government agencies like Labor Officer etc.
Following are the roles of Employee Relations Department:
i) To manage organization's overall relations with Employees Associations -Executives B
Supervisor Association and Worker's unions,
ii) To manage Industrial Relations - handle Unions and Associations meetings and resolves
employee's issues,

iii) To manage Employees Relation System & various participative forums like safety
Committee, Township Advisory Council, Joint Plant Level Council, Shop Level Council etc,
iv)To interact on a formal as well as informal basis with key Employees Association's members,
v) To identify and address employee's needs and concerns,
v) To ensure compliance relating to Contracts Labor as per Law in the unit,
vii) To manage Local Administration and liaison,
viii) To coordinate with Regional & Corporate HR on Employee Relations issues,
ix) To provide inputs to the HR policy development during the policy formulation stage.

TRADE UNIONS AT RIHAND

I. NTPC MAZDOOR SANGH

This union which formed as the first union this project was initially affiliated to BMS. Due to
intra-union rivalry two groups claimed ownership of the union which was finally decided by the
Registrar of Trade Union and the group which got the ownership from Registrar changed this
affiliation from BMS to AITUC because the Central leader of BMS was supporting its fraction
which lost its claim before the Registrar of Trade Union.

2. NTPC KARMACHARI SANGATHAN

This union was formed initially as NTPC Shramik Sangathan with affiliation to INTUC. Again
due to rivalry within the union, the union was dissolved and one group formed another union
namely NTPC Karmachari Sangathan and got it affiliation from INTUC.

3. RIHAND KARMCHARI AWAM VISTHAPIT MDRCHA

This is a union of employees who are land oustees basically and the employees residing in the
district of Sonebhadra and Mirzapur. The basic aim is to look after the interest of land ousters of
this project employed or otherwise. This creates sometimes difficulty for management as the
union takes up issues of non-employee / land oustees also like dispute over compensation,
settlement benefits etc. It is not affiliated to any central Trade Union.

4. NTPC BAHUJAN SHRAMIK SANGH

This union was formed in 1998 and the leadership is basically in the hands of those employees
who were part of other union earlier but got neglected due to intra-union rivalry. It is not
affiliated to any CITU.

5. RASTRIYA VIDYUT SHRAMIK SANGH (AFFILIATED TD BMS)

The faction which lost before the registrar of Trade Union a claim over NTPC Mazdoor Sangh
gradually gathered some support and formed this union which has submitted its registration
documents to the management for being a party to employer-employees dealings.

6. URJANCHAL SHRAMIK SANGTHAN (AFFILIATED TD HMS)

The above unions are registered trade unions under Trade Union Act. However, none of the
unions are recognized unions and management at local level deals with them on day-to-day on
equal footings. Nonavailability of any policy on recognitions of Trade Union in NTPC the

numbers of such unions are in increase due to the fallacy of provisions of Trade Union by which
any seven or more persons can form a Trade Union.
The dealing at the company level is with central trade union mostly or the all trade unions
recognized under statues for different states where such provisions exist. The body consisting of
such trade unions and management at company level is called National Bipartite Committee
(NBC). It deals with wage and service conditions of all workmen of NTPC. From plant/project
unions representation to various trade unions affiliated to these Central Trade Unions (BMS,
AITUC, INTUC, CITU) are given for participating in
NBC as additional central members. However the constitution of NBC and participation of trade
unions as representative bodies from project/units is still a matter to be properly resolved.

7) CORPORATE SOCIAL RESPONSIBILITY

Headed by: K.L.Panika, Sr. Engineer-GSR

The land oustees have been provided adequate compensation as per rate fixed by Govt. of UP &
MP and rehabilitated in the areas exclusively developed for them by NTPC NEAR THE
PROJECT. The rehabilitation areas have been provided with facilities like hand pumps, wells,
roads, drains, primary schools , dispensary, dams, Panchayat Bhawans, Ponds, Training Centre
& Chetna ( Centre established by project for the self development and provide employment to
land oustees).

A sizable number of land oustees have been employed directly by the project as regular
employees in suitable categories. Now-days these land oustees are named as PAP (Project
Affected Persons).

8) LAW SECTION

Headed by: Sh. A.B.Saxena,Dy. Manager (HR-Law)

The main functions of Law section are as under:
i) To provide legal support to various departments of the project wherever required.
ii)To make preventive measure for avoiding in fructuous litigation by legal vetting of various
types of contracts, agreements and security documents prior to their final execution,
iii) To minimize the cost of litigation wherever possible,
iv)To standardized various types of contracts, Bank Guarantees, Indemnity Bonds and other
Security documents for achieving uniformity in approach,
v) To render legal opinion on the complex issues,
vi)To prosecute / defend the court cases and court cases arising out of arbitration cases in
Supreme Court /High Court / Tribunals, arbitrators,

vii) To liaison with advocates and to provide support in preparing of pleading / Written
submission/arguments,
viii) To procure legal opinion from outside legal expert such as AGI, SGI, ASGI.

9) HR - RAJBHASHA

Headed by: Sh. R.K.Prajapati

Hindi as a National Language has been recognised and a separate section with the name of
"RAJBHASHA ANUBHAG" came in to existence. The section looks after the recommendation /
guidance of Deptt. of Official languages, Govt. of India. Since, Rihand is situated in UP which is
among one of the Hindi speaking states, the Hindi Section is organizing various workshop &
sends reports to the Deptt. of Official Languages, govt. of India. The Rajbhasha Anubhag has
done a lot for the promotion of Hindi as an official language. It also coordinates for conducting
the PRAVIN, PRAGYA & PRABODH examinations organised by Deptt. of Official Languages,
Govt. of India. For the promotion of Hindi various incentives are given to the employees who
drafts I80 Nos. of letters in Three months or I0.000 words in three months. Special incentives are
also given to the employees for translating the technical books in to Hindi.

10) TIME OFFICE

Headed by: Sh. N.K. Pandey

Time Office is related to leave sanction process and this section mainly maintains the attendance
of the employees. This is an online process. A punching machine is used to maintain the
attendance record. The employee has to punch the card issued to them to mark their attendance.
If the employee gets even 15 minutes late then they are marked late. In case of getting the leave
the employee have to get the approval from their boss. If the employee didn't get the approval
from their boss and mentioned in the system then that period salary of the employee will be
deducted.

Types of Leave:
Earned leave (EL) = 30 days per year
Half Pay leave (HPL) = 20 days per year
Casual leave (CL) = 12 days per year
Restricted holidays (RS) =6 days per year
Special additional leave (SAL) = I0 days per year

CHAPTER-3
OBJECTIVE &RATIONALE OF THE PROJECT
OBJECTIVE

This report is based on the project "Performance Management System".

The main objective of this project was to determine whether the performance management
System used in NTPCare Effective.
To study the satisfaction level of this Employees on their appraisal technique.
To analyze and compares the company performance management system, supervision, and
clarity
of roles of the Employee.
Importance of Performance Management System
To estimate the overall effectiveness of employees in performing their jobs.
To identify strengths and weakness in job knowledge and skills.
To determine whether a subordinates responsibilities can be expanded.
To identify futures training and development needs.
To

review

progress

toward

To determine readiness for promotion.

To motivates and guides growth and develpment.

goals

and

objectives.

SCOPE THE PMS SYSTEM

This project was undertaken to know the Extent to which the Employees of NTPCare satisfied
and happy with their Performance Management System and Environment which Exists in that
organization.

PERFORMANCE MANAGEMENT SYSTEM

A performance management system, performance appraisal, review or career development

discussion is a method by which the job performance of an employee is evaluated (generally in
terms of quality, quantity, cost, and time) typically by the corresponding manager or supervisor.
A
Performance appraisal is a part of guiding and managing career development. It is the process of
obtaining, analyzing, and recording information about the relative worth of an employee to the
organization. Performance appraisal is an analysis of an employee's recent successes and failures,
personal strengths and weaknesses, and suitability for promotion or further training. It is also the
judgment of an employee's performance in a job based on considerations other than productivity
alone.
Generally, the aims of a performance management system are:
Give employees feedback on performance
Identify employee training needs
Document criteria used to allocate organizational rewards
Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, Bonuses,
etc.
Provide the opportunity for organizational diagnosis and development
Facilitate communication between employee and administration
Validate selection techniques and human resource policies to meet federal Equal Employment
Opportunity requirements.
To improve performance through counseling, coaching and development.

Types of Performance Management System:

There are two types of performance appraisal systems which are commonly used in
organizations:
Close ended appraisal system
Open ended appraisal system
Close ended appraisal system - This system commonly used in government organizations and
public enterprises, and a confidential report are submitted on the performance of employee in the
organization. The main shortcoming of this system is that an individual is not informed about
his/her inherent strengths and weakness and therefore is not given an opportunity to respond to
the assessment made on him/her.
Open ended appraisal system - In this system the performance of the individual is discussed with
him and he is ranked in a five or ten point rating scale. The company used this tool primarily far
rewarding a good performer or for other considerations like promotions. The main weakness of
this system is that all the employees are ranked in particular scale and whereas the good
performers are rewarded, there is no concerted effort to motivate the average performer in
performing better. Another weakness of grading system is that the appraisal may he more
subjective in nature due to insufficient data maintained on the individual.
Methods of Performance Management System:
A common approach to assessing performance is to use a numerical or scalar rating system
whereby managers are asked to score an individual against a number of objectives/attributes. In
some companies, employees receive assessments from their manager, peers, subordinates, and
customers, while also performing a self assessment. This is known as a 360-degree appraisal and
forms good communication patterns.
The most popular methods used in the performance appraisal process include the following:
Graphic Rating Scales method

Management by objectives
360-degree appraisal
Behaviorally anchored rating scales
1)

Graphic Rating Scales Method- In this method employee are rated on a scale, usually

from I to I0, on traits and/or behavior such as intelligence, neatness, and quantity of work
accomplished. The term used to define the oldest and most widely used performance appraisal
method. The evaluators are given a graph and asked to rate the employees on each of the
characteristics can vary from one to one hundred.

The rating can be a matrix of boxes for the evaluator to check off bar graph where the evaluator
checked off a location relative to the evaluators rating.
2)

Management By Objectives (MBD)- According to the Dr. George S. Odiorne

"Management by objective is a process whereby the superior and subordinates managers of an

organization jointly identify its common goals, define each individual's major areas of
responsibility in terms of the results expected of him, and 7use these measures as guide for
operating the unit and assessing the contribution of each of its members. " In other words, this
appraisal method has worked to eliminate communication problems by the establishment of
regular meetings, emphasizing results, and by being an ongoing process where new objectives
had

been

modified

as

necessary

in

light

of

changed

conditions. MBD in essence involves the setting out clearly defined goals of an employee in an
agreement with his superior. Carroll and Tosi (1973), in an extensive account of MBD, note its
following characteristics:
The establishment of organization goals
The setting of individual objectives in relation to organization goals
A periodic review of performance as it relates to organizational goals

Effective goal- setting and planning by top management

Organizational commitment
Mutual goal- setting
Frequent individual performance reviews
Some freedom in developing means of achieving objectives
3) 360-degree Performance evaluating The 360-degree evaluation is a common tool in human
resource management. Simply put, it is a mechanism for evaluating someone's performance
based on feedback from everyone with whom the individual comes in contact-supervisors,
workers, partners, subordinates, and the general public. It is a method of collecting input from
many sources in an employee's environment.
The 360-degree method uses confidential input from many people who can truly respond to how
an employee performs on the job. The supervisor and employees meet to discuss the feedback
received.
360-degree feedback:
Increases self knowledge
Encourages continuous learning
Stimulates individuals to enhance their strengths
Identifies areas that needs development
Provides guidance for positive change
Supports coaching and mentoring initiatives

Benefits:
It may improve service to customers if they are able to offer feedback to the employee. 360degree feedback offers a more complete picture of the employee's performance. This feedback
can provide guidance on skills that an employee may need to help.

How it is conducted:
a.

Develop questionnaire

b.

Ensure confidentiality of participants

c.

Provide training/orientation

d.

Administer the feedback questionnaire

e.

Analyze the data

f.

Develop and Distribute Results

A) Behavinrally anchored rating scales- Trait-based systems, which rely on factors such as
integrity
and conscientiousness, are also commonly used by businesses. The scientific literature on the
subject provides evidence that assessing employees on factors such as these should be avoided.
The reasons for this are two-fold:
Because trait-based systems are by definition based on personality traits, they make it
difficult for a manager to provide feedback that can cause positive change in employee
performance. This is caused by the fact that personality dimensions are for the most part
static, and while an employee can change a specific behaviour they cannot change their
personality. For example, a person who lacks integrity may stop lying to a manager because they

have been caught, but they still have low integrity and are likely to lie again when the threat of
being caught is gone.
Trait-based systems, because they are vague, are more easily influenced by office politics,
causing them to be less reliable as a source of information on an employee's true performance.
The vagueness of these instruments allows managers to fill them out based on who they want
to/feel should get a raise, rather than basing scores on specific behaviors employees
should/should not be engaging in. These systems are also more likely to leave a company open to
discrimination claims because a manager can make biased decisions without having to back
them up with specific behavioral information.
Criticism:
Performance appraisals are an instrument for social control. They are annual discussions,
avoided more often than held, in which one adult identifies for another adult three improvement
areas to work on over the next twelve months. You can soften them all you want, call them
development discussions, have them on a regular basis, have the subordinate identify the
improvement areas instead of the boss, and discuss values. None of this changes the basic
transaction... If the intent of the appraisal is learning, it is not going to happen when the context.

PERFORMANCE MANAGEMENT SYSTEM IN N.T.P.C

INTRODUCTION
Philosophy of Performance Management System
To build a culture of performance by aligning individual and organizational objectives and
encouraging open communication and continuous feedback.
Objectives:
To accomplish the overall organizational vision and mission by linking individual performance
to company objectives
To cascade company's strategic goals to individual level
To promote professional excellence
To encourage two-way communication between the executive and the reporting officer and bring
about transparency in the performance assessment process
To evaluate the potential of the executive to assume higher responsibilities in the organization
To provide a source of talent for meeting the organization's growth requirements through a
process of mapping the competencies and potential of executives
To translate future skills requirements of the organization into individual development plans
To identify high performers and recognize them through rewards and incentives, and
To facilitate fulfillment of individual aspirations
Applicability:
PMS is applicable to all executives of NTPC (E1-E9)

Executives who join NTPC on deputation or those retaining lien while in service of NTPC are
also covered by this scheme
Executives who join in the middle of the PMS cycle, but have served for a minimum period of
three months
NTPC executives who are on secondment or are lent on service to subsidiaries and joint ventures
with NTPC management
PMS CYCLE
Performance Assessment year
Performance assessment years have been set up as follows:
For E6 and above: The performance assessment year commences from 1st April of each year and
continues until 31st March of the following year.
For E1-E5: The performance assessment year commences from 1st January of each year and
continues until 31st December of the same year.

PMS CALENDER
PMS Activity for E6 and above:
No. Activity/Steps

Timeline

Issue of PMS Form

15th

Performance Planning

31st March
1st
April- 25th Executive

Key Responsibility
March- HR Department

April
of

PMS

Form

Reporting

Officer

Submission

after 30th April

Reporting Officer

Performance Planning to HR
Issue of PMS Form for Mid Year Review 20th Sep- 30th Sep HR Department

Mid Year Performance Review

Submission of PMS Form after Mid- 21st October

1st- 15th Oct

Executive

Reporting

Officer
Reporting Officer

Year Review to HR
7

Issue

of

PMS

Assessment
Annual Assessment

Form

for

Annual 15th
31st March
1st AprilApril

Submission of completed PMS form to 30th April

I0

HR
Normalization of PMS

March- HR Department
25th Executive
Officer

Reporting
Reviewing

Officer
Reviewing Officer

1st May- 25th May Performance

Management Committee
HR to Coordinate

11

Performance

Communication

Feedback to Executive

and 31st May

Reporting

Officer

(Administrative support
from HR department)

PMS activities for E1 to E5:

No. Activity/Steps

Timeline

Issue of PMS Farm

15th Dec- 31st Dec HR Department

Performance Planning

1st Jan- 25th Jan

Submission

of

PMS

Form

Performance Planning to HR
Issue of PMS Form for Mid Year Review 20th

Key Responsibility

Reporting

Officer
Reporting Officer

after 30th Jan

June-

Executive

30th HR Department

June
5

Mid Year Performance Review

1st- 15th July

Submission of PMS Form after Mid year 21st July

Executive

Reporting

Officer
Reporting Officer

Review to HR
7

Issue

of

PMS

Annual
Assessment
Assessment

Form

for

Annual 15th Dec- 31st Dec HR Department

1st Jan- 25th Jan

Executive
Officer

Reporting
Reviewing

Officer
9

Submission of completed PMS Form to 30th Jan

Reviewing Officer

I0

HR
Normalization of PMS

Performance

1st Feb- 15th Feb

Management Committee
HR coordinate
11

Performance

Communication

Feedback to Executive

and 28th Feb

Reporting

Officer

(Administrative support
from HR department)

PMS PROCESS
The PMS process is broadly divided into the following stages:
Performance Planning
Mid Year Review
Annual Assessment
Normalization
Feedback, Coaching and Counseling
Performance Planning
Performance Planning is the process of:
Defining expectations i.e., the work to be done the results/ targets to be achieved and skills/
competencies needed to achieve these objectives
Setting "Measures" and "Targets", determining priorities and weightages of results to be
achieved
Identifying and allocating appropriate resources (such as manpower, tools, training, budget
etc.) to enable the executive to achieve the targets
While defining work objectives and measures, it is necessary to ensure that:
Goals/ Targets/ Objectives are SMART (Specific, Measurable, Agreed, Realistic and Time
bound)
Results are substantially within the executive's control
Measures relates to results

Data is available for measurement

Agreement on mutually agreeable and achievable performance targets is arrived at after
sufficient discussion between reporting officer and executive has been taken place.
Mid Year Review
Performance Management is not an event but ongoing process. Mid year reviews help in the
following steps:

Reinforcing good performance in time

Updating the status of targets i.e., progress review

Identifying areas far "mid-course" correction
Revisiting KPAs and goals, if necessary
Assessing resource and skill requirement affecting the individual's performance
Discussion and feedback on functional competencies, managerial competencies, potential
competencies and core values actualization
Providing early warning of non-performance i.e., avoiding year end surprises
Annual Assessment
The objectives of Annual Assessment are to:
Discuss and arrive at an assessment of performance with respect to agreed targets
Assess the competencies, potential and core values actualization by the individual
Agree upon improvement plans and development needs for the individual
Normalization

The objective of the normalization system in PMS is to:

Ensure parity and integrity by minimizing variation in rating by different reporting officers
across various departments and locations
Enhance objectivity and transparency in the appraisal system
To view individual performance from the perspective of organizational achievement.
Feedback, Coaching and Counseling
In order to make PMS an open system and to enhance development orientation across the
organization, feedback, coaching and counseling are essential components. Communicating the
final performance results of the executive and providing development feedback are critical to this
process.

Feedback
Providing feedback on performance presents the following benefits:
Creates transparency making PMS more acceptable to individuals
Reinforces good performance on time
Enables development of coaching and mentoring relationship between reporting officer and
executive
Ensure that organizational objectives are achieved to an acceptable standard and in an
acceptable form.
Providing performance feedback is a delicate matter and the reporting officer should create
suitable conditions for providing performance feedback in the most effective manner. In general:

Feedback should be focused on the specific performance actions and not on the personality
of the executive.
Feedback should be generated after reviewing all achievements and issues throughout the
assessment period for recording both achievements and failures with details, as an aid to
memory during performance discussions with executive.
Feedback is given as regularly as possible so that enough opportunities are created for
executive to bridge performance gaps through self-department.
Coaching and Counseling
Coaching is an on-the-job approach to help individuals to develop to raise their skills and levels
of competence. Coaching typically consists of:
Making executives aware of how well they are performing and their present level of
knowledge and skills
Providing guidance to individuals to enable them to complete their work satisfactorily
Motivating individuals to learn new skills and develop themselves
Facilitating individuals to raise their level of contribution and achievement.
Counseling in the PMS context essentially is a process by which executives can receive
assistance in sorting out issues and related to current and future responsibilities and aspirations.
Therefore, reporting officers are required to encourage individuals to plan for their own selfdevelopment. The process of counseling is through:
Recognition and understanding of existing strengths
Empowering i.e., enabling the individuals to recognize their own problems and expressing the
same

Facilitating action through guidance and expertise i.e., facilitating the process whereby the
individual evaluates alternatives and formulates action plans to achieve the most suitable
course of action
Helping individuals to take ownership of the outcomes of their chosen action.
Coaching and counseling together act as a feedback mechanism for the individual on his/her
performance. It is often used by reviewer/reporting officer to communicate the areas for
development and improvement to the executive.
PMS Linkage with Other Systems
Performance Management has much wider implications than purely improving individual
performance in the given year. PMS provides the basis for achieving a number of fundamental
aims of HR strategy for the organization as mentioned below:
1.

Linkage with Training and Development System

PMS lays strong emphasis on continuous learning and development. The two-way
communication between reporting officer and executive creates an environment of trust and
self learning.
PMS is the basis for the organization to maintain data on an individual's skill gaps, take
necessary action to meet the training needs, use it for foreign training/assignments and
company sponsorship of long-term educational programs etc.
PMS would also provide the means to determine the collective level of competencies and
strengths available within the organization as well as gaps for planning for organizational
development initiatives.
2.

Linkage with Reward System

PMS is tool for rewarding successes/achievements and contributions of individuals to motivate

them to continuously strive for excellence in their respective responsibilities.

It would provide inputs to the organization's Rewards programmes.

PMS results will be used to identify high performers for the purpose of rewards and
recognition.
Additionally, it would be used to aid counseling for improving performance and dealing with
consistent non-performance.
3.

Linkage with Career Development System

PMS results of the executives would be used as one of the inputs in the Career Development
System. It would provide inputs for assessing an individual's readiness for higher
responsibility and career advancement.
PMS input would also help in decisions relating to job rotation and placement in special
assignments commensurate with demonstrated potential. The detailed processes and
systems relating to this are outlined in the Career Development Policy.

The PMS Form

The PMS farm is divided into seven parts:
1.

Performance Planning and Assessment

Dashboard of key Performance Areas (KPAs)

Details of KPA
Mid Year reviews
Revised KPAs (in case of change during mid-year review)
2.

Competency Assessment

Functional/Technical Competencies
Managerial Competencies
3.

Core Values

A. Potential

Competencies

5. Special Competencies
B.

Total Marks

7. Individual Training and Development Plan

Example:
KPA

Consti

Index
tuents of
(Marks) KPA

KPA

Marks

Target Performance

Actual

Marks Obtained

Measure nf
Consti

Target
Stretch=100% of
Achieved Marks

tuents

lntermediate=80
% of Marks
Base=60% of
Marks
Stretch Interm Base
Target ediate Target
Target

Cast

Reduction %

(20)

in Deptt.

Reductio

0/Hs

20

5%&

Above Above If 3%

16(80% of total

above

3%&

2% &

marks 20)

Below

Below If G%

20(I00% of total

5%

3%

marks 20)
14(70% of total
marks 20,

If 2.5%

calculated prorate) 0

Role and responsibilities Role of Executive:

The executive shall fill nut appropriate portions of the farm, attend the PMS meetings at all
stages and he prepared to have an open and frank discussion about his/her performance.
The PMS aim at creating amity and convergence of individual and organizational goals and it
should be taken in that spirit.
The executive is required to show the necessary flexibility and adaptability to the organizational
needs and display system discipline through adherence to all PMS requirements.
Role of Reporting Officer:
The reporting Officer shall cascade the KPAs based on MoU targets to the executives reporting
to him in a fair and achievable manner with necessary stretch for individual excellence.
The reporting officer should set up performance planning, mid-year review and annual
assessment meetings with all the executives reporting to him within the specified periods as per
the PMS calendar.
The reporting officer shall maintain a brief log of all critical incidents occurring within his scope
of work as an aid to memory while completing the mid-year review, annual assessment and
given feedback to the executives.
The reporting officer shall carry out the PMS scoring of all executives reporting to him in an
objective manner and such that the scores are distributed in a manner requiring minimum
adjustment and/or normalization by either the reviewing officer or the Performance Management
Committee.
In the event of change of KPAs, measures, targets etc., the reporting officer is required to obtain
clearance from Reviewing Officer prior to making the change.
Role of Reviewing Officer
The reviewing officer shall go through PMS forms for all executives under his purview and
ensure that the reporting officer has been objective and unbiased in his scoring of various

executives, particularly with respect to the sections relating to Competencies, Values and
Potential.
Where required the reviewing officer may recommend some changes to the scores after
carrying nut a detailed discussion with the respective reporting officer.
The reviewing officer shall also carry out an integrity check to ensure that the scores
awarded to all the executives under his/her purview are distributed in a manner requiring
minimum normalization by the Performance Management Committee.
Where an executive has a grievance against the Reporting Officer regarding the PMS
process, the reviewing officer shall intervene and settle the grievance in a fair and objective
manner.
The reviewing officer shall also be responsible for ensuring "stretch targets" for executives
under his charge.
The reviewing officer shall cascade the KPAs in an open and transparent manner with
reporting officer by sharing his KPAs and targets.
Role of PMS Officer
A PMS Officer would be designated for each location (plant/ project/ region/ corporate).
The PMS Officer would be responsible for implementing PMS as well as for periodic
administration, follow-up, tracking and analysis of PMS activities as per schedule in his/her
respective location.
To ensure collection, collation and forwarding the Individual Development Needs form to the
concerned EDC/Regional HRD/PMI.
Normalization process
Key Elements of the Normalization Process:

Executives would be normalized within a cluster with a population of at least 15 executives.

Depending upon the level, location and the number of executive in the given level/function,
executives would be normalized either at the plant, Regional Headquarters or Corporate
Centre level.
The compositions of clusters at each grade would be notified by Corporate HR from time to
time.
In respect of executives on secondment/lent to subsidiaries/JVCs, normalization would be done
respective entities.
Normalization would be done by the Performance Management Committees comprising
cross-functional members specifically set up for the purpose.
The Performance Management Committees would be the highest level of decision-making
body for PMS for respective level and cluster as the final accepting authority.
Constitution of the clusters and Performance Management Committees has been defined as
part of the PMS Policy.
If some clusters need to be merged due to lack of minimum quorum within the cluster, such
merged clusters should be put up for approval by the concerned PMS Officer with the
concurrence of the respective GM or ED to Corporate HR.
The authority to change the cluster composition across the organization at all levels solely
with GM, Corporate HR.
Output from the Normalization Process
At the end of the process, all executives within a cluster would be categorized into the following
categories:
Top 3D% of the cluster

Middle G5% of the cluster

Bottom

5%

of

the

cluster

Performance Result
The performance scores finalized by the Performance Management Committee and the
categorization at the end of the normalization process are final. They are not liable for any
revision and change later.
Communication and Feedback of Scores
After the process of normalization of the scores is completed, the Performance Management
Committee hands overall the PMS forms to the respective HR department.
HR then consolidates final scores, relative rankings and the feedback from the Performance
Management Committee for the executives under each reporting officer along with the
individual Feedback forms, duly filled and sends the same to the reporting officers.
The concerned reporting officer signs of the individual feedback farms as per the summary
sheet provided by HR and hands over the same to the executives in order to communicate the
final score, relative ranking and the feedback.
Transfers
If the executive or the reporting officer has spent less than 3 months of the assessment year prior
to transfer from the department, then no assessment needs to be carried out for the executive for
that period by that reporting officer. Fresh KPAs will have to be issued by the new reporting
officer in the new department/location and these will form the basic of the executive's annual
assessment for that year, which will be done solely by the new reporting officer. Otherwise viceversa.

Useful Guidelines for carrying out PMS

The following checklist must be used to ensure completion of all PMS activities:

__________________________

Distribution of Marks

S.No

PMS Parameter

E1-E3

E4

E5

E6-E7

E7A-

E9

KPA

80

75

05

50

E8
50

50

2(a)

Functional

Competencies I0

I0

I0

I0

I0

2(b)

Assessment
Managerial

Competencies 05

05

I0

15

15

15

Assessment
Core Values Assessment

05

05

05

15

15

20

Potential Assessment

Nil

05

I0

I0

I0

I0

Total

I00

I00

I00

I00

I00

I00

RESEARCH METHODOLOGY

PROBLEM
This study is undertaken to determine the satisfaction level of executives with their Performance
Management System.
RESEARCH DESIGN
A research design is purely and simply the framework of a plan for study that guides this
collecting and analysis of data. The survey research is used in this project because Executives
feedback was necessary for obtaining the data.
Since the project is using conducts in NTPC Rihand no satisfaction level in the hope new
findings, We can concludes that this is a "Descriptive" types of research.
SOURCES OF DATA COLLECTION:
Primary Data
This is the original data and the first hand information collected by the researcher. We have
gathered primary data by these sources.
Survey through questionnaire
Unstructured Interview of the executives
Observation Method
Interaction with HR-Officers.
Secondary Data
This is second hand information already used by many persons for their purpose. We have
gathered secondary information from websites and in-house journal.

Reference books.
Internet, intranet and study of the various records available in the department.
SAMPLING TECHNIQUE:
The process to select the persons under research purpose far inquiry is known as sampling. There
are two types of sampling:
Probability
Simple random sampling
Systematic Sampling
Cluster Sampling
Stratified Sampling
Non-probability
Quota Sampling
Purposive sampling
Judgment Sampling
We have selected our sample through random sampling to complete the objective of our survey.
We have selected random sampling because all the executives were not available at the same
time. The advantage of random sampling is that it is convenient and free from all biasness.
SAMPLE SIZE:
The survey was conducted in the organization in which 1650 employees work. There are three
types of employees:

Workmen
Supervisors
Executives
We have selected only executives for our survey of PMS System. We have selected executives
from E1 to E6 from this hierarchy.
HIERACHY DF EXECUTIVES CATEGORY
E9 - Executive Director
E8 - General Manager
E7 - Additional General Manager/DGM
E6 - Senior Manager/Senior Superintendent
E5 - Manager/ Superintendent
E4 - Deputy Manager/Deputy Superintendent
E3- Senior Officer/ Senior Engineer
E2- Sr. asst. officer/ Sr. asst Enginner
E1- Asst. Officer/Asst. Engineer
NTPC-Rihand
Total no. of Executives
Executives covered under the study
% of Executives covered

440
100
23%

QUESTIONNAIRE
It is a Set of various types of questions drafted far different purposes. These can designed on
various scales and parameters according to the need of research. We have designed a Five-point
scale questionnaire for the collection of data. Each question has five options and the respondents
were asked to tick one of the options as per the choice. The weight age ranging from I to 5are
assigned to the options given by them. The weight ages are as under:
Strongly agree 5 point
Agree 4 point
Sometimes agree
Disagree

3 point

2 point

Strongly disagree

1 point

PRECAUTIONS
Precautions which have been taken at the time of drafting the questionnaire are:
There is appropriate number of questions for the convenience of executives.
Personal questions have been avoided.
All questions are and has clear meaning
All are arranged logically and sequencly.
Every question is specific and relevant to the topic.

Guidelines for conduct of surveys

Background
for effective running of NTPC, assessment of organizational health for initiating timely
correction is required. Seeking employee feed back through conducting surveys helps in
diagnosis of factors that impact organizational health. They also help in identifying factors that
influence employee productivity by measuring and understanding employees attitude, opinions,
motivation, and satisfaction.
NTPC is a very large and diverse organization with each strategic business unit(SBU) having
unique characteristics, it is pertinent that in addition to companywide parameter, we also identify
and manage the various local parameters that impact employee productivity. Unit carry out
independent survey in order to identify and address the local issues. However, such survey, in
absence of any external benchmarks or timeline data, provides an incomplete picture.
To institutionalize a system of surveys in NTPC, compendium of survey instruments has been
prepared. The compendium comprises of a number of survey instrument standardized for NTPC,
with guidelines to administer and evaluate each survey separately.
Objective
To address employee related matters speedily and effectively by isolating local issues for
companywide issues.
To come up with trends on employee related issues all over NTPC.
To develop benchmarks within NTPC.
To associate survey data with performance index of team leaders and top management.
To facilitate data for participation in external branding/ certification studies at various levels
Principles

Areas
Instruments have been developed in following areas as they cover a range of
employee related issues that impact individuals and organizations productivity

Employee relation climate (ERC)

Core values(CV)

Empowerment (E)

Reward & recognition(R&R)

Services effectiveness

Training & development (T&D)

Township & welfare facilities (TWF)

Performance management system (PMS)

Frequency
To ensure that the number r of survey in a given year is manageable, not all instruments will
be administered each year. Each instrument has been assigned a periodicity ranging from once in
a year to once in three year.
Communications
In order to identify issues of larger concern, the macro level picture and trends need to be
observed. For this purpose, a copy of the findings of all surveys shall also be foewarded to the
regional HQ and corporate where issues of wider int erest will be identified and taken up on
regional/ company level.

Procedures
Survey Schedule
The surveys shall be administered as per the following scheduleYEAR T&D SE
N
N+1

*
*

N+2
N+3

*
*

*
*

TWF PMS
*

N+4
N+5

ERC

R&R

*
*

*
*

CV

*
*

Population

the target population is mentioned under population for each instrument in the survey
compendium. It specifies whether the questionnaire is to be administered on executives
only, non-executives only, or both.

Empolyee grades have been divided into 4 band-W or S, E1-E4,E5 OR E6,E7 7 Abv.
These grade bands are independent of grade bands used for career planning systems and
should not be confused with them.

Sample size
Method of arriving at the right sample size has been explained with help of an example with
each instrument. Administrator should calculate the sample size by following the example before
administering the questionnaire.
Once sample size has been decided, it should be proportionately distributed amongst the grade
bands. While doing so, it should be ensured that sample size in any grade band should not be
smaller than 20. the grade band should be merged with the next lower band.

Parameters
Parameters used for constructing the instrument have been mentioned along with the instrument
in the survey compendium.
Administration Method
Surveys can be administered as specified in the HR survey compendium either through paperpencil mode or over intranet or email depending on the reach and technical feasibility of the
method
Scoring
5-point scale has been used for all instruments. "Strongly Disagree" has been coded as "1" at one
extreme and "Strongly Agree" has been coded as "5" at the other extreme. Some instruments
have negative sounding statements. These have been explicitly specified for each instrument in
the compendium. The scale in case of a negative statement should be reversed before tabulating
the results. This can be done by subtracting the score obtained from 6.
Interpretation of Results
Methodology to score and tabulate data has been described with each instrument. The section
specifies use of both, descriptive and inferential, tools. To assist in analysis and interpretation of
results, example of different types of analysis tools have been given with each instrument.
Role and Responsibility
At the Unit
The unit HR department shall be responsible for conducting all the surveys. In case of "Service
Effectiveness" survey, Head of TS or his nominee shall also be associated with the process.
Since, the services effectiveness survey scores are to be utilized by the Unit Head for evaluating
performances of HoDs of services functions (as described in 3.2), presence of an independent

person shall render credibility to the process. Responsibilities of unit HR for conducting the
surveys shall include Administration of Survey
The survey will be administered online or through paper pencil mode
Analysis
The data shall be analyzed as per guidelines given in the HR survey compendium
Presentation of Findings and Development of Action Plan
The findings of the survey shall be presented at the SMC and a participative action plan shall
beevolved.
Sharing
A copy of survey findings shall be forwarded to Regional HR and Corporate HRD. In case of
Core Values and Services Effectiveness surveys, copies shall also be marked to the respective
reporting officers as specified under Principles (Linkages)
At Region
All activities as specified in 5.1 shall be carried out by Regional HR for the employees posted at
the Regional HQ and commercial offices. Head of TS at RHQ or his nominee shall be associated
with the process during the Services Effectiveness survey. Apart from this, the Regional HR
shall also
Ensure various surveys are conducted as per schedule in stations/ plants under them
Collate information from units and identify Regional level issues. These should also be
forwarded to Corporate HRD
Take up Regional Level issues at RMC atleast once a year and formulate an Action Plan

At Corporate
At SCOPE all activities specified in 5.1 shall be carried out by CC-HRD
At EOC, HR-Services group shall be responsible for all activities specified in
Corporate HRD shall collate findings received from unit and regions to identify company level
issues and present them in MCM.

CORE VALUES

Objective
The instrument has been designed to find out the level of core values actualization. It has been
developed around NTPC Core Values B-COMIT.
Frequency
This survey should be carried out every year
Population
All employees, executives and non-executives
Parameters
The questionnaire has been designed on core values of NTPC which are
1. Business Ethics
This parameter measures employee perception of business ethics being maintained by senior
management and employees
2. Customer Focus
This parameter measures customer orientation in our culture
3. Organizational and Professional Pride
The parameter measures employee ownership in the company and the pride they take in their
work
4. Mutual Respect and Trust

This parameter tells us about mutual respect amongst employees and general

level of trust.

5. Innovation and Speed

This parameter measures if our culture is conducive for innovation and speed
6. Total Quality for Excellence
This parameter measures whether NTPC encourages high standard of quality and promotes
continuous learning.
Reliability
The reliability of the instrument has been found to be 0.86 using Split-half reliability tests on
data of 125 employees. The scale reliability of different parameters using Alpha Cronbach
coefficient has been found to be 60% to 74%.
Validity
The parameters used are in line with Core Values of NTPC. The construct validity of the
questionnaire, in terms of definition of core values given above, is considerably high. The
correlation (bivariate) between various items under each parameter has been found to be
significant at 0.01 level of significance (2-tailed).

Administration
Step 1: Finalizing the Questionnaire
The questionnaire should be administered as it is. One may also choose to include one or two
open ended questions in order to invite employee suggestions or subjective feedback. For
example
Please give suggestions on core values actualization at your unit

Or, more specifically

Please give suggestions on how to encourage innovation amongst employee
Step 2 Determining the Sample
Once the questionnaire has been framed it may be administered on a sample of randomly
selected employees.
The sample size may be calculated as
Sample Size = 384/(1+(383/P))
Where P is the population of the plant

For example, if there are 1000 employees in the plant, then

Sample Size = 384/(1+(383/1000))
= 384/1.383
= 277.66 ~ 278
Hence, sample size for above population is 278.

After deciding the sample size, ensure that it is representative of the population, i.e., distributed
proportionately for all levels. Since numbers of levels in NTPC are many, we can divide them in
bands for our purpose as follows
Grade W0 W11 = Band 1 (Workmen)
Grade E1 E4 = Band 2 (Team Members)

Grade E5 E6 = Band 3 (Team Leaders)

Grade E7+ = Band 4 (HoDs)
Step 3 Data Collection and Recording
The questionnaires may be administered on the selected sample either through paper-pencil
mode or over e-mail as may be deemed fit. The data from filled up questionnaires should be
recorded in an MS Excel work sheet. Responses to open ended questions should be separately
recorded in a MS Word Document or Note Pad.

Scoring
The questionnaire contains 30 questions on 1-5 scale where 1 stands for Strongly Disagree
and 5 stands for Strongly Agree. There are no negative questions in the questionnaire. As a
thumb rule, any score above 3 can be considered Good while a score below 3 can be
considered Poor.
A separate score for each core value can be calculated as follows
1. For each respondent, calculate the average score of the items pertaining to the core value.
2. Calculate average score for all respondents to arrive at the core value score
3. To obtain band (grade) wise scores, calculate average score for respondents within the grade
band.

4. To obtain department wise scores, calculate average score of respondents within the
department.
Parameters

Items

Business ethics

1,8,22,24,25

Customer Focus

2,9,16,21,23

Organizational and Professional Pride

5,15,18,19,26

Mutual Respect and trust

3,4,12,27,28

Innovation and Speed

10,11,20,19,30

Total Quality of Excellence

6,7,13,14,17

Interpreting Results
You may choose either of descriptive analysis (means, graphs etc.) or inferential statistics to
draw conclusions.
Descriptive Analysis
To carry out a descriptive analysis of the data, follow the given steps
1. Plot a bar chart of grade-band wise scores for each core value. Compare length of bars of
various grade bands to find out which grades have rated the core values low. For grades that have
given comparatively low scores or have rated any core value below 3,refer the item wise scores
of that corevalue. For instance, look at the adjacent diagram.

In the above diagram, it can be seen that Customer Focus and Mutual Respect & Trust are rated
lowest by all levels. Hence, an action plan for improving these areas all over should be worked
upon. Employee comments and answers to the open ended questions may help in the process.
Similarly, it can be seen Innovation & Speed has been rated highest. However, it is
comparatively low for E7+ executives. Hence, it needs to be investigated further.
2. Plot a bar chart of department wise parameter scores and carry out comparisons as mentioned
in Sl. No. 1. For instance, look at the following diagram and draw conclusions in lines with
example in Sl. No.1 .

3. Compare the above findings with past data if any.

4. Sift through employee comments and suggestions recorded in the Word/ note Pad in response
to the open ended questions to seek clues on why a particular value has been rated low or high.
Inferential Statistics

Following inferential tools can be used for analyzing recorded data. One may carry out this
analysis using MS Excel or even manually. However, SPSS is best suited for this purpose.
1. Use z-test or t-test to approve/ disapprove null hypothesis for any of the core values or
constituent items.
For example, mean score of W0-W11 employees on Business Ethics in 3.2. Since it is within
range, youmay wish to conclusively state whether Business Ethics has been rated a "3" (Neither
agree nor disagree) by W0-W11 employees at a given level of significance (eg.0.05). You may
perform a two-tailed z test as follows

i. Stating Null & Alternative hypothesis

Null Hypothesis (H0): B W0-W11 = 3
Alternative Hypothesis: B W0-W11 3
ii. Z Critical 95% significance level: Z Critical 0.05 = 1.96
iii. Z Calculated (from data recorded): Z Calculated = 2.1
iv. As Z Calculated > Z Critical 0.05 , it lies in region of rejection. Hence, we reject Null
Hypothesis
2. Either use one-way or two-way ANOVA to compare grade wise and department wise core
values score

3. Use any of the paired-comparison tools like Dependent Samples t-test or two-way ANOVA to
compare scores with similar data recorded in the past.

2. EMPLOYEE RELATIONS CLIMATE

Objective
The objective of this instrument is to find out the employee relations climate t he unit. The
instrument has been designed on four dimensional framework of NTPCs employee relations
strategy as shown below

Parameters
The questionnaire measures 4 aspects of NTPCs employee relations strategy 1. Top Down Communications
This parameter defines top-down communications from management to employees. It refers to
information sharing and concern shown for employees by the senior management
2. Employee Feedback systems
This parameter measures whether management seeks employee feedback and acts on the
feedback. It also fins out whether employees share their concerns with the management.
3. Participative Decision Making
This parameter measures employee perception of managements commitment towards
participative decision making and the role played by joint decision making fora
4. Employee Welfare
This parameter measures employee perception of management commitment towards employee
welfare and the standard of welfare facilities in NTPC.
Frequency
This survey should be carried out once in two years
Population
All employees, executives and non-executives

Reliability
The reliability using Split-half reliability test based on data of 128 executives has been found to
be 93%. The scale reliability of different parameters using Alpha Cronbach coefficient has been
found to be 76% to 89%.
The instrument can be considered reliable enough for our purpose.
Validity
The questionnaire is based on NTPCs four dimensional employee relations strategy. The face
validity of the instrument is reasonable high. To measure the construct validity, factor analysis
was performed on data recorded for 128 respondents. 6 factors were extracted that together
explain 72% variance in the scores. The rotated component matrix is given on next page. Factor
loadings above .3 and above have been mentioned. Highest Factor loading for any item is in bold
font.
The extracted factors and their combination is consistent with the parameters used. Top-Down
Communications is a combination of Factors 1 and 3. Factor 1 has high loadings on most items
of Top-Down Communications and Employee Welfare. This factor tells us about management
concern for employees which is communicated through management words and action. Factor 1
can hence be termed Management Concern. Factor 3 has high loadings on items pertaining to
information sharing between employees and management.
Participative decision Making is a combination of factors 2 and 5. Factor 2 has high loadings on
5 out of 6 items of Participative Decision Making. It also has high loadings on 2 items of
employee feedback system and 2 items of employee welfare. This factor reflects employee
perception of managements commitment towards participative decision making, i.e., if they take
decisions in a participative manner and honor such decisions. Factor 5 has high loadings on 2
items of Participative Decision Making. These items are about visibility of Joint Management
Committees.

Factor 6 has highest loading on 2nd item of Employee Feedback System. This item pertains to
openness of management towards receiving feedback from employees. Factor 4 has high
loadings on item 3 and 4 of Employee Feedback system which pertain to employees discussing
their personal and professional problems with seniors. These two factors along with 3 items of
factor 2 and 2 items of factor 1 define Employee Feedback system. Similarly, Employee Welfare
has high loadings mostly on items on factor 1 and 2 which reflect employee perception of
concern and importance of employee welfare for management in NTPC and action being taken
for improvement.

CHAPTER-VI
TABULATION, ANALYSIS AND INTERPRETATION OF DATA
Q no.1- PMS helps in accomplishing organizational mission by linking individual's performance
to company object.
Strongly

Agree

Sometime

Agree
No.

Disagree

agree

of 16

Strongly

Total

Disagree

67

12

100

67

12

100

Respondents
%

of 16

Respondents

No. of Respondents
No. of Respondents
67

16

Strongly Agree

12
Agree

Sometime agree

Disagree

Strongly
Disagree

Findings83% of the executives agree that by linking individual's performance to company objectives the
PMS helps in accomplishing organizational mission.
12% of the executives say that sometimes the PMS helps in achieving the organizational goals
by linking individual's performance with the company objectives.
Only 5% of the executives disagree with the statement.

Q nD.2 - PMS system motivates and boost up your performance.

Strongly

Agree

Sometime

Agree
No.

Disagree

Strongly

agree

of 12

Total

Disagree

48

28

12

100

48

28

12

100

Respondents
%

of 12

Respondents

No. of Respondents
No. of Respondents
48
28
12

12
0

Strongly Agree

Agree

Sometime agree

Disagree

Strongly
Disagree

Findings60% of the executives agree that PMS boost up their performance.

23% of them say that PMS system sometimes motivates them.
12% of the executives disagree with it.

Q riD.3 - KPAs are more applicable to team than to individual.

Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 19

Strongly

Total

Disagree

43

28

100

43

28

100

Respondents
%

of 19

Respondents

No. of Respondents
No. of Respondents
43

28
19
9
1
Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings62% of the executives agree that KPAs emphasize more on team work.
28% of the executives say that KPAs is applicable to team rather than the individual.
Rest of the 10% executives disagrees with the statement.

Q no.4 - The content of PMS is relevant to the job.

Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 15

Strongly

Total

Disagree

59

22

100

43

22

100

Respondents
%

of 15

Respondents

No. of Respondents
No. of Respondents

59

22
15

Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings74% of the executives agree that PMS Content is relevant.

22% of the executives sometimes agree with the statement.
Only 4% of the executives say that PMS Content is not relevant.

Q no.5 - PMS provide proper feedback, coaching and counseling to the employees.
Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 8

Strongly

Total

Disagree

34

38

17

100

34

38

17

100

Respondents
%

of 8

Respondents

No. of Respondents
No. of Respondents
38
34

17

8
3

Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings42% of the Executives agree with this statement that PMS provides them proper feedback
Coaching and Counseling.
32% of just sometimes agree to this statement.
Rest of the 20% disagrees.

Q no.6 - Mid-year review helps to update/review the performance of Executives.

Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 14

Strongly

Total

Disagree

54

18

12

100

54

18

12

100

Respondents
%

of 14

Respondents

No. of Respondents
No. of Respondents
54

18
14

12
2

Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings68% of the Executives agree that mid-year review update their performance.
18% of them say that sometimes only mid-year review update their performance.
Rest of the 14% Executives disagrees with the statement.

Q no.7 - This introduction of ePMS is convenient for executives.

Strongly

Agree

Sometime

Agree
No.

Disagree

agree

of 41

Strongly

Total

Disagree

43

10

100

43

10

100

Respondents
%

of 41

Respondents

No. of Respondents
No. of Respondents

41

43

10
5
1
Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings84% of the executives agrees with the statement that ePMS is convenient for them.
10% of the executives say that sometimes it is convenient.
Only 8% of the executives disagree with it.

Q no.8 - PMS helps in identifying high performers and recognizes them through rewards and
incentives.
Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 11

Strongly

Total

Disagree

28

41

17

100

28

41

17

100

Respondents
%

of 11

Respondents

No. of Respondents
No. of Respondents
41

28

17
11
3
Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings39% of the executives agree that PMS recognizes their performance with rewards and
incentives.
While 41% of the executives say that sometimes only PMS identifies the high performers.
Rest of the 20% executives totally disagrees with it.

Q no.9 - PMS encourages two-way communication between executives and reporting officers.
Strongly

Agree

Sometime

Agree
No.

Disagree

agree

of 15

Strongly

Total

Disagree

44

33

100

44

33

100

Respondents
%

of 15

Respondents

No. of Respondents
No. of Respondents
44

33

15
7
1
Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings59% of the Executives agrss with the statement that two-way communication is Encouraged
between the Executives and the reporting officers through PMS.
33% of the Executives say that sometimes only the PMS Encourages the two-way
communication.
Only 8% of the execute disagree with it.

Q no.10 - Normalization process plays an important role in PMS system.

Strongly

Agree

Agree
No.

of 21

Sometime

Disagree

agree

Strongly

Total

Disagree

40

28

10

100

40

28

10

100

Respondents
%

of 21

Respondents

No. of Respondents
No. of Respondents
40

28
21

10
1
Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings61% of the executives agree with that normalization plays an important role in PMS system.
28% of the executives sometimes it plays an important role.
Rest of 11% executives disagrees with it.

Q no.11 - The PMS is well defined for various levels of employees.

Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 18

Strongly

Total

Disagree

54

17

100

54

17

100

Respondents
%

of 18

Respondents

No. of Respondents
No. of Respondents
54

18

17
9
2

Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings72% of the executives agree with that PMS is well defined far different levels of executives.
17% of the executives sometimes agree that PS is well defined.
Rest of the 11% executives disagrees with the statement.

Q no.12 - The support you need is provided by the management for effective performance.
Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 11

Strongly

Total

Disagree

48

30

10

100

48

30

10

100

Respondents
%

of 11

Respondents

No. of Respondents
No. of Respondents

48

30

11

10
2

Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings59% of the Executives agrss with that the management provides the support for effective
Performance.
30% of the Executives sometimes agrss with the statement.
Rest of the 11% executives disagrees with it

Q no.13 - PMS system provides opportunities for career

Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 8

Strongly

Total

Disagree

37

38

13

100

37

38

13

100

Respondents
%

of 8

Respondents

No. of Respondents
No. of Respondents
37

38

13
8
4

Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings45% of the Executives agrss with that opportunities are provided far career
Through PMS system.
38% of says that it sometimes provides the opportunities.
Rest of the 17% executives totally disagrees with it.

Q no.14 - PMS is based on fair assessment and it adds value to my performances.

Strongly

Agree

Agree
No.

Sometime

Disagree

agree

of 9

Strongly

Total

Disagree

42

28

19

100

42

28

49

100

Respondents
%

of 9

Respondents

No. of Respondents
No. of Respondents
42

28
19
9
2
Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings51% of the Executives agree with that PMS is affair assessment and it adds values to their
Performance.
28% of the Executives sometimes agree with it.
31% of them disagree with it.

Q na.15 - PMS cycles should be same for all executives.

Strongly

Agree

Sometime

Agree
No.

Disagree

agree

of 27

Strongly

Total

Disagree

41

16

15

100

41

16

15

100

Respondents
%

of 27

Respondents

No. of Respondents
No. of Respondents
41

27
16

15

1
Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

Findings68% of the executives agree with that PMS cycle should he same far all the executives.
16% of them sometimes agree with it.
16% of the executives disagree with the statement.

This tabulation is the aggregate of all the findings of the survey.

Strongly

Agree

Agree
No.

of 245

Sometime

Disagree

agree

Strongly

Total

Disagree

682

387

162

24

1500

45.5

25.8

10.8

1.6

100

Respondents
%

of 16.3

Respondents

No. of Respondents
No. of Respondents
682

387
245
162
24
Strongly Agree

Agree

Sometime agree

Disagree

Strongly Disagree

CONCLUSION LIMITATIONS SUGGESTIONS

CONCLUSION
The PMS Policy of the NTPC is well defined and appropriate to measure the executive's
efficiency with fewer controversies, bias or less limitations.
All Rihand executives follow the PMS policy and must of them are satisfied by it. It is specially
observed in the survey and while obtaining Primary Data by questionnaires.
ePMS is implemented last year in NTPC which is transparent and convenient way to judge
executives performance in this technological era.
The employees nf NTPC Rihand are very supportive and CD-operative. They have good tuning
among themselves whether they belong to different department.
By the PMS Policy executives are getting Promotion at right time by the right measurement of
performance and provided training to the right people at the right time.
All executives gave their feedback instead of their busy schedule sincerely.
"NTPC USING ITS PMS AS A DEVELOPMENT TOOL".

LIMITATIONS OF STUDY

I have sincerely tried my best to prepare this project report in precise manner with accuracy.
During the completing of the project the limitation faced by me are as under.
As the duration of the summer training was six weeks and the times was the major
constraint for carrying out study and complete the project on time.
As the project required the surveys, interviews, and necessary advice of the executives,
the busy schedule of the employees was also constraint for completing the project in the
given time frame.
The survey of the employees was to be conducted in different departments and which was
geographically separated.
As the study is only for one particular organization, inter organization comparison is not
possible.
The study was limited to NTPC/RhSTTPP, so the result cannot be generalized to macro
level.

SUGGESTIONS

To improve feedback system a suggestion box may be opened, so that the employees can
suggest their views.
To improve the perception of the experienced employees regarding ePMS as they find
difficulty to work on it so proper counseling should be given.
KPAs should be enhanced according to the challenging situations and changing conditions
so that they get ample opportunities to show their potential.
The assessment of the PMS System should be more transparent to increase the liability of the
employees towards their job and the organization.

BIBLIOGRAPHY
www.ntpc.co.in
www.ntpc.nic.in
Local intranet of NTPC, Rihand
www.google.com
www.Wikipidia.com

Records:
Records from HR Department of NTPC, Rihand.
NTPC Rules/Policy an recruitment, promotion, disciplinary practices, working hours Etc.
house Journals of NTPC (NTPC news Etc.)
HR Manual of NTPC available in intranet.
NTPC news Samachar