performance management system at ntpc

A PROJECT REPORT ON

EFFECTIVENESS OF PERFORMANCE MANAGEMENT

SYSTEM

AT

NTPC Kahalgaon

Based on Survey conducted on Executives at NTPC Kahalgaon in the month of June-July 2010

July, 26, 2010

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HR DepartmentKahalgaon super Thermal Power Project

Bhagalpur

A PROJECT REPORT ON

EFFECTIVENESS OF PERFORMANCE MANAGEMENT

SYSTEM

ATNTPC Kahalgaon

Submitted to- Submitted by- Employee Development Center Ambesh Kumar NTPC Kahalgaon Rajeev Kumar MBA(HR) 2009-2011 Copy to- MBA Dept. TMBU Bhagalpur

HOD, MBA ProgramTMBU Bhagalpur

July, 26, 2010

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Declaration

We hereby declare that the project entitled “Effectiveness of Performance Management System” at KHSTPP is submitted for partial fulfillment of our course curriculum i.e.- MBA(HR) from TMBU Bhagalpur (session 2009-2011) The project was carried out by the survey done by us with the sincere intention of benefitting the company . Project duration was from June, 10, 2010 to July, 26, 2010. To the best of my knowledge it is original work carried out by us and is not submitted in any other college.

Ambesh Kumar Rajeev kumar MBA(HR),Session 2009-2011 MBA Dept. TMBU Bhagalpur

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Acknowledgement

To accomplish a project work like this efforts of many people are required and ours is not an exception, a number of people have helped us. First of all we would like to thank Sri Shubhasis Ghosh(GM,khstpp), and Sri Rajnish Rastogi (DGM-HR). We convey our special thanks to Miss Pallavi (Officer-HR) for her guidance during the course of our project study. We express our sincere thanks to Mr. Nalin vikash (Officer-Rajbhasha), Mr.Anurag Sinha (Sr.Engineer, EDC), Mr Pravin Mundaria(Officer-Finance), Mr. Kanchan Chourasia (Sr. Engineer-O&M) and Mr. A. K. Das (Sr. PR Officer).

We like to thank Mr. B.R.Prasoon (EDC), Mr. R.Raghunathan (Officer-CSR), Mr. B. P. Yadav(Sr. Manager-Finance), Mr. Naveen Choudhary(Officer-Law), Mr. Atul Parashar(Officer-EW), Mr. P. K. Shamal(Sr. Officer-EW) and all those persons who helped us in getting grass root information about NTPC and the performance management system working there, from whom we received valuable co-operation, useful suggestions and relevant data and information pertaining to our project and responses to questionnaire. We are thankful to all of our friends who have been a source of motivation to us. At last but not least we convey our heartily gratitude to our Director Prof. Ratnesh Sinha and all the faculty members of MBA program, TMBU Bhagalpur for their constant guidance and help. Finally we thank God who blessed us in our endeavor.

Ambesh kumar Rajeev kumar MBA-HR (2009-2011) MBA program, TMBU Bhagalpur

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Table of contents Page

Declaration 3Acknowledgement 4

Introduction to NTPC 7

NTPC Kahalgaon-An overview 29

Performance Management-What, Why and How 41

PMS at NTPC 47

Methodology Used for Study and Data Collection 53

Graphical Representation of Feedback given by Executives 55

Suggestions 76

Conclusion 77

Limitations of The Research 78

Appendix- Bibliography 79 Questionnaire 80

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Table of Figures Page

NTPC at a Glance: - Details of power stations 9-10

Subsidiary companies 11

Joint Ventures 11

National awards for performance of thermalPower stations 16

Project under construction 16-17

Capacity addition in 2009-2010 18

Planned capacity addition in 2010-2011 18

NTPC’s share in total electricity generation 20

Ash utilization 26

Milestone dates of Kahalgaon units 38

KPA setting process 49

Weightage of PMS parameter for different grades 50

Performance linked pay 51

Response to questionnaire 56-75

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Introduction To NTPC

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INTRODUCTION TO NTPC

NTPC: India’s largest power company

Established on 7th November 1975 to play a major role in the development of Indian Power Sector: NTPC Limited is today India’s largest power company with an installed capacity of 31,704 MW Lighting up more than one fourth of India through its 15 coal based 7 gas based and 5 joint venture projects, NTPC Limited plans to become a 75,000 MW Company by the year 2017 with a vision to become a world class integrated power major with increasing global presence. NTPC Ranked No. 1 Independent Power Producer in Asia and 2nd in the world in the Platts Top 250 Global Energy Company list for 2009. Ranked number ONE in the category the 'Best Workplaces for Large Organizations' and number tenth overall for the year 2009 by Great Places to Work Institute’s India chapter in collaboration with Economic Times.

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NTPC: At a GlanceCategory No. of stations Capacity (MW)Coal based station 15 24,885Gas based station 7 3,955Joint venture 5 2,864Total 31,704

Details of power Stations(NTPC)

Project StateCapacity(MW)

a. Coal Based

Singrauli Uttar Pradesh 2000Korba Chhattisgarh 2100Ramagundam Andhra Pradesh 2600Farakka West Bengal 1600Vindhyachal Madhya Pradesh 3260Rihand Uttar Pradesh 2000Kahalgaon Bihar 2340Dadri Uttar Pradesh 1330Talchar Kaniha Orissa 3000Unchahar Uttar Pradesh 1050Talchar Thermal Orissa 460Tanda Uttar Pradesh 440Simhadri Andhra Pradesh 1000Badarpur Delhi 705Sipat-II Chhattisgarh 1000

Total 24885

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b. Gas Based

Anta Rajsthan 413Auraiya Uttar Pradesh 652Kawas Gujrat 645Dadri Uttar Pradesh 817Jhanor Gujrat 648Rajeev Gandhi(Kayamkula) Kerela 350Faridabad Haryana 430

Total 3955

c. Joint Venture

Roukela Orissa 120Durgapur West Bengal 120Bhilai Chhattisgarh 574Ratnagiri Maharashtra 1940Kanti Bihar 110

Total 2864

Total Production(a+b+c) 31704

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Subsidiary companies of NTPC

NTPC – Joint Ventures (15)

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Electrifying performance

The company recorded a total generation of 218.84 Billion Units (Bus) showing an increase of 6% over the pervious year’s generation of 206.93 Bus with a share of 20% (Ines of JV company) in the total installed capacity of the country NTPC generated 28.6% electricity during 09-10. Exceeded the MoU ‘Excellent’ target of 217 BUs.

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Vision

“A world class integrated power major, powering India’s Growth, with increasing global presence.”

Core Values

Business ethics Customer focus Organizational & Professional Pride Mutual Respect and Trust Initiative and speed Total Quality for Excellence

FINANCIAL FACTS >>>

100% realization of the billing for the seventh consecutive year.

Provisional and un-audited Net Sales of Rs. 46,504.47 crore during 2009-10 as against Rs. 41,791.30 crore registering an increase of 11.28%. The provisional and un-audited Gross Revenue is Rs.49,478.86 crore during 2009-10 as against Rs.45,272.76 crore for the year 2008-09, an increase of 9.29%.

Provisional and un-audited Profit after tax for the year 2009-10 is Rs.8,656.53 crore as compared to Rs.8,201.30 crore during the year 2008-09, an increase of 5.55%.

Highest interim dividend @ 30% amounting to Rs. 2,473.64 crore paid during the year.

Capital Expenditure of Rs. 10,137.18 crore during 2009-10; NTPC Group’s capital expenditure was Rs. 14,002.11 crore.

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Approved outlay for 2010-11 for NTPC’s capital schemes is Rs.22,350 crore; for NTPC Group the outlay is around Rs.29,104.06 crore. Contributed Rs.3,260.21 crore to exchequer on account of Corporate tax, Dividend and tax thereon and wealth tax.

Shareholder Wealth

Third largest market capitalization of over Rs.1,70,000 crore as on 31-03-2010.

Growing Stature

Recommended for “Maharatna” status.

EXCELLENT rating under Government of India MoU for the year 2008-09.

Bulk Tendering

Tendering undertaken for 11 units of 660 MW (including 2 units for DVC).

Rural Electrification

Under Rajiv Gandhi Grameen Vidyutikaran Yojana, NTPC Electric Supply Company

Ltd (NESCL) completed electrification of 8017 villages and provided 8.65 Lakhs

BPL connections, thereby exceeding GoI target of electrification of 7500 villages

and 8.5 Lakhs BPL connections.

Commonwealth Games

Official Power Partner of Delhi 2010 Commonwealth Games.

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Further Public Offer

Government shareholding in NTPC reduced from 89.5% to 84.5% through

divestment of Government stake by 5% under Further Public Offer (FPO).

Accolades

Top six out of eight National Awards for Meritorious Performance of

Thermal Power Stations for 2008-09 instituted by the Government of India

won by NTPC coal stations.

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Simhadri 1000 MW Gold Shield

Korba 2100 MW Silver Shield

Ramagundam 2600 MW Silver Shield

Dadri (coal) 840 MW Bronze Shield

Rihand 2000 MW Bronze Shield

Vindhyachal 3260 MW Bronze Shield

No. 1 Independent Power Producer in Asia and 2nd globally in the Platts Top

250 Global Energy Company Rankings 2009

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THE GROWTH STORY >>>

Installed capacity reaches 31,704 MW (including 2864 MW under JVs).

All time highest single day generation of 684.55 MUs from all NTPC stations

on 31st March, 2010

17,830 MW under construction at 17 locations. .

Project (Fuel) , State Capacity

Sipat-I (Coal), Chhattisgarh 1980

Barh –I (Coal), Bihar 1980

Korba-III (Coal), Chhattisgarh 500

Dadri-II (Coal)-Unit # 2, U.P. 490

Farakka-III (Coal), West Bengal 500

Simhadri-II (Coal), Andhra Pradesh 1000

Indira Gandhi STPP - JV With HPGCL & IPGCL (Coal),

Haryana

1500

Vallur (Phase -I & Phase –II) (Coal) - JV With TNEB,

Tamil Nadu

1500

Nabinagar-JV With Railways (Coal), Bihar 1000

Bongaigaon (Coal), Assam 750

Mauda-I (Coal), Maharashtra 1000

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Barh-II (Coal), Bihar 1320

Rihand-III (Coal), UP 1000

Vindhyachal-IV (Coal), MP 1000

Muzaffarpur-II (Coal), JV With BSEB, Bihar 390

Koldam (Hydro), H.P 800

Loharinag Pala ( Hydro ), Uttaranchal* 600

Tapovan Vishnugad ( Hydro ), Uttaranchal 520

Total 17,830 MW

Capacity Addition in 2009-2010 (1560 MW)

Project/ Unit Capacity (MW)

NTPC owned

Kahalgaon Stage-II 500

Dadri Stage-II, Unit # 5 490

Under JVs

RGPPL Block- I 640

Less on account of overall de-rating of RGPPL (-)180

Kanti Stage-I 110*

Net addition 1560

Planned Capacity Addition in 2010-2011 (4150 MW)

Project/ Unit Capacity (MW)

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Sipat Stage-I, Unit-1 660

Jhajjar, Unit-1 & 2 1000

Korba Stage –III, Unit-7 500

NCTPP Stage – II, Unit-6 490

Simhadri, Stage-II, Unit-3 & 4 1000

Farakka, Stage-III, Unit-6 500

Total 4150

Future Capacity Under Different Stages

Projects for which bids invited 7092 MW

Projects for which FR approved 4345 MW

Projects for which FR prepared/under preparation ~15,000 MW

Growth in Commercial Capacity

1490 MW declared commercial (including 500 MW under JV).

New national benchmark: Dadri Unit-5 (490 MW) begins commercial

operation in 39 months from zero date.

Generation

Impressive Growth Rate

Generation increased by nearly 6% to 218.84 BUs compared to 3% generation

growth achieved in 2008-09; Exceeded the MoU ‘Excellent’ target of 217 BUs.

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2005-06 2006-07 2007-08 2008-09 2009-10

170.88

188.67

200.86206.93

218.84

Generation (BUs)

Sustaining Market Leadership

Contributed 28.6% of total electricity generated in the country

Total electricity available in the country 771.17 BUs

Electricity import from Bhutan 5.34 BUs

Total Electricity Generation in the Country 765.83 BUs

Total Generation from NTPC Units 218.84 BUs

NTPC share in total electricity generation in the country 28.6%

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World Class Capacity Utilization

With 90.81% Plant Load Factor (PLF) during 2009-10 (National PLF

77.48%), coal stations achieved PLF of more than 90% for third consecutive

year.

Six coal stations achieved PLF of more than 95%.

Dadri (Coal) Stage I (4X210 MW) achieved highest ever PLF of 100.59 %.

Sixteen units recorded more than 100% PLF.

Seven NTPC coal stations figure among the top 10 stations in the country in

terms of PLF.

Highest ever PLF of gas stations at 78.38% (previous year PLF 67.01%).

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Augmenting Fuel Security

Model Coal Supply Agreement signed with Coal India Ltd (CIL) for supply of

coal to NTPC stations for 20 years.

Gas supplies increase to 13.88 MMSCMD (up 29% over previous year).

Long term contract for supply of RLNG of 2.0 MMSCMD on firm basis and 0.5

MMSCMD on fallback basis signed with GAIL for 10 years.

Under NELP VIII, NTPC has been allotted one block at Cambay basin as a

sole operator and three blocks as a member of consortiums.

Coal Mine Development

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Working on captive coal mines with target of 47 MTPA by 2017 from the 6 blocks

allotted.

More than 6735 acres of Land in Pakri Barwadih and about 1594 acres of land in

Chatti Bariatu coal block have been acquired and land acquisition for Dulanga and

Talaipalli are in progress.

Rehabilitation Action Plan (RAP) has been approved by NTPC Board for Pakri

Barwadih, Chatti Bariatu and Kerandari.

Mining Plan approved for Dulanga (7 MTPA) and Talaipalli (18 MTPA).

JV agreement has been signed with CIL for development, operation and

maintenance of Coal Blocks and Integrated Power Projects.

Coal Block Acquisition Abroad

Due diligence for acquisition of stakes in two coal mines in Indonesia is

under progress and consultant appointed for carrying out due diligence for

one coal block in Mozambique.

International Coal Ventures Ltd (ICVL) has been incorporated on 20.05.2009

as a JV company of NTPC, RINL, SAIL, NMDC and CIL for sourcing coking and

thermal coal from overseas countries like Australia, Mozambique, Canada,

Indonesia and USA. ICVL is pursuing 3 thermal coal opportunities in

Indonesia, Australia and South Africa.

Getting into Nuclear

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JV agreement is expected to be signed shortly with Nuclear Power Corporation of

India Limited (NPCIL). Approval has been obtained from Department of Atomic

Energy (DAE).

Focus on Renewables

By 2017, NTPC plans to have at least 1000 MW through renewable energy

resources such as wind, hydro, solar, biomass and geo-thermal.

Long Term Corporate Plan upto 2032

Finalizing the Long Term Corporate Plan of NTPC to set the goals and directions

for a period of 2032 with a view to positioning NTPC as the world’s largest and

best power producer.

Technology Roadmap upto 2032

Chalking out a long term technology roadmap upto 2032 which involves

development, adoption and promotion of safe, efficient and clean technologies for

entire value chain of power generation business.

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ENVIRONMENT MANAGEMENT

NTPC has adopted advanced and high efficiency technologies such as super

critical boilers for the up-coming greenfield projects (e.g Barh, Sipat etc).

Out of total coal based capacities to be developed during 12th plan period,

over 90% will be based on supercritical technologies.

In addition to adopting advanced and high efficiency technologies, NTPC has

been pursuing the objective of sustainable power development with

following initiatives:

CO2 measurement systems are being installed at all our stations in the

chimney stacks.

61 Ambient Air Quality Monitoring System (AAQMS) installed in all

NTPC stations.

Installed Bio–methanation Plant at Faridabad.

Creation of green wealth of more than 18.80 million trees.

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ASH UTILISATION

Achieved ash utilization of 59.73% i.e. 27.61 million tons of ash.

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10.85 million tons fly ash issued to cement and concrete industry which is 8.5

% more than last year.

545 million ash bricks have been manufactured in Pilot ash brick

manufacturing plants.

1.13 million tons of ash from Talcher-Thermal has been utilized for filling of

abandoned South Balanda coal mine of MCL in Orissa.

MoU has been signed with Research Designs & Standards Organization

(RDSO), Lucknow to explore use of ash in Railway embankment.

HUMAN RESOURCE MANAGEMENT

HR Vision:

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To enable our people to be a family of committed world

class professionals, making NTPC a learning organization.

The HR Dept. has a long history in NTPC. This dept. was earlier known as personnel

dept. then finally HRS(Human Resource Services)

HRS contributes its expertise in handling and executing the

Existing and Developing HR trends and innovations. Following are the areas of

operation. :-

Employee Welfare

Employee Benefits

Employee Relations (Industrial Relations)

Employee Services (Office Admin.)And Pensions

Employee Services (Town Admin.)

Training and Development (EDC)

Performance Management System and Human Resource Development

Corporate Social Responsibility

Rajbhasha (Hindi)

Law

Peoplesoft – HRMS (ERP Software)

Public Relations

The HR strategy of NTPC has been designed around the four building blocks

of competence building, commitment building, culture building and system

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building. Culture building is done by creating transparency, openness and

ease of communication, strengthening mutual respect and trust, leading to

establishment of a people oriented and people sensitive organization. This

has resulted in recognition of NTPC as one of the best employers in the

country as well as obtaining consistently high rankings in surveys such as

“Great place to work” and “Best companies to work for”.

Employee Development Centers (EDC) have been set up to cater to the need

of appropriate Training and Development of employees.

Leadership Assessment and Development System (LEADS): With a view to

developing a pipeline of leaders for key leadership positions in the company,

an initiative named LEADS has been launched. A Leadership Development

Centre (LDC) at corporate centre has been set up to formulate the process of

identifying and grooming potential leaders.

High Productivity of Team-NTPC: During 2009-10, sales per employee

increased from Rs. 1.77 crore to Rs.1.96 crore, profit per employee increased

from Rs. 34.7 lakh to Rs. 36.45 lakh, value added per employee increased

from Rs. 59.36 lakh to Rs. 72.96 lakh and the man:MW ratio improved from

0.85 to 0.82.

Total employee strength is 24,955 as on 31.03.2010, as against 24,713 on

31.03.2009 (including employees in JVs & Subsidiaries).

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NTPC Kahalgaon

An Overview

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NTPC KAHALGAON -An Overview

At Kahalgaon, a place from where light of wisdom eradicated darkness from the minds of millions, it is the dawn of a new era. Kahalgaon super thermal power project is the seventh in a series of STPs set up by the NTPC and first of it’s kind in Bihar and second in the entire Eastern Region. Contributing to NTPC’s good health is one of its unit at Kahalgaon in Bihar which was set up in 1987 with a technical collaboration from the then USSR. The location of the plant is such that the raw material for the plant like coal is easily available from the Rajmahal collieries (31km from Kahalgaon) and the water requirement is met from river Ganges.The project with Stage-I capacity of 840 MW has already been completed comprising 4X210 MW unit is under commercial operation. Further expansion of 500X2=1000MW in State-II, Phase-I & 500X1=500 MW in phase-II during 10th year is under commercial operation. The ultimate capacity is 2340 MW.

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Destination Kahalgaon

A lush green, picturesque Kahalgaon is set like an emerald on the bank of holy river Ganga. The place was, once, the abode of saints and Sufis and has a history dating back to Vedic times. According to legend, the place derived its name from Kohol Muni. Another story is that Saint Durvasha, famous from his bad temper (‘Kalaha’), hailed from this place. The Kashri Hill where Saint Durvasha had hisashram is about 6.5 Km north-east of the town. The ancient temple of shiva & kali at Bateswarsthan (Known as Gupt Kasi) is situated at Kahalgaon on the bank of Ganga. The Chinese pilgrims Hieun Tsiang and Fa Hien are said to have visited this place. Lord Budha’s feet are also believed to imprint on this holy place. The site of ancient university of vikramshila of the 8 th centure A.D., established by king dhrampal, is only 15 Km from the town. Students from all over the world came to this place in search of knowledge. It was from here, Saint Deepankar Janapada, the renowned Buddhist scholar and Vice-chancellor of Vikramshila University spread the light of wisdom and love. Kahalgoan is also known as the land of seven sages (‘Sapt Rishis’). The place was also an important centre of trade and commerce during the Britishers.

Deeptinagar- A Mini India

The Deeptinagar Township is built ina planned and systematic way, with wide open streets, spaces, parks and greeneries. The pristine glory and ecology of the surroundings area is least disturbed. A permanent township with all modern facilities completed and employees residing here represent the culture of mini India. NTPC has developed its own shopping complex where all essential commodities and services are available. Besides, the NTPC employees also run a Co-oprative store. The Banking & Postal needs of residents of Deeptinagar and surrounding areas are taken care by branches of state Bank of India, Allahabad Bank with ATM facilities and full fledged Post Office with speed post facilities established in our Township. Deeptinagar officers ample opportunities for healthy recreation and Socio cultural activities. These needs are taken care of by the employee’s welfare Association, Vikramshila club and Srishti Samaj by organizing various cultural programmes from time to time.

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The NTPC sport council and apex body of sports enthusiasts conducts interdepartmental tournament into institute in various games and sports besides regularly conducting rural sports & inter duty football tournament.

Health Care

“Our hospital is an ISO 9001, 14001, 18001 &5’S certified hospital with all specialties & equipped with modern set up provide diagnostic & therapeutic services including promotive & preventive health care to the residents of Deepti Nagar & its surrounding areas.”

Education- A foremost Objective

Imparting excellent education to the children of employees has been one of the foremost welfare measure of NTPC. There are three teaching institution affiliated to C.B.S.E. stream, namely St. Joseph’s School, DAV Public School and Kendriya Vidyalaya. The schools are running effectively and are imparting education to the children of employees and surroundings. In additin to basic education, these institutions. Srishti Samaj of Deeptinager also runs Little flowers school and Vidya Bhawan School. The former imparts pre-schools education to tiny-tots by play-way technique and the later imparts free primary education to the children of neighbouring villages.

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Environmental Excellence

The Kahalgaon plant of NTPC integrates many environmental provisions in the plant design in order to keep emission, effluents and ambient air quality well within acceptable limits, it has provided the best available equipments, devices and systems such as high efficiency electrostatic, precipitators (ESPs) Tall stacks and Low Nox Burners for control of stack emissions, dust extrication and dust suppression system for control of fugitive dust. Effluent treatment plants Neurtalisation Pits and Ash ponds for control of the effluent quality, Ash water Re-circulation system and cooling Towers for control of the effluent quality as well as conservation of water and sewage Treatment plant (STP) for treatment of the domestic sewage from its plant and township areas. All pollutants discharged from the power plant are monitored at the stipulated frequency at the source itself and at the points of discharge Besides ambient air, surface water and ground water quality around NTPC Plants are regularly monitored to assess any adverse impacts as a result of operation of the power plant NTPC has drawn a programme for changing ash disposal systems at its existing power plants from once through system to recycling system, where clear effluent from ash pond s recycled and only little quality of blow down is required to be discharged after treatment. The ash water recycling system has already been installed and is in operation at Kahalgaon. The scheme has helped the station to save huge quantity of fresh water required as makeup water for disposal of ash .

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In order to control fugitive dust from these ash ponds during strong wind conditions, a continuous water cove is maintained in the ash pond for the disposal of Bio-Medical waster as per the MOEP notification one autoclave has been installed at the hospital which is in operation. At regularly intervals training and awareness programme for Brick kiln owners/ manufactures for use of ash Brick manufacturing are being conducted. Not only that, recently a Kisan Mela for the farmers of affected villages was conducted- for promoting use of flv ash in agriculture as a source of micronutrients and improvement in soil structure and water holding capacity. What’s more in a concreted bid to counter the growing ecological threat, NTPC is undertaking afforestation programme covering vast areas of land in the plant areas Appropriate afforestation programme for plants township and green belt areas of the project are prepared for implementations at the site. The species are selected on the basis of their adaptability and local soil condition. In Kahalgaon 8.7 lakh trees have already been planted till the date. Only in the financial year 2009-10, more than 10,000 trees have been planted. The afforestation has not only contributed to the aesthetics but also has been serving as a ‘sink’ for the pollutants release from the station and thereby protecting the quality of ecology and environment in and around the project.

Transforming Lives

NTPC belives in growth with a human face and pursuing people centered development NTPC is a socially comittel organsation and socially responsible corporate citizen. It attaches great importance of discharging its overall responsibilities to the community and the society at large where its project and stations are located there is sharp focus on all round development of the community which is why the efforts do not stop at the individual or family level redressal but take a holistic approach. The NTPC limited has a defined corporate social responsibility policy. The objectives of CSR have been marked for booth the national level and the unit leve. The national objectives contained providing help to physically challenged persons, making relief at the time of natural calamities, maintaining national mouments and promoting self employment and co-operatives among the unemployed youths. The unit level objectives deal with the core issue of the communities, residing in the neighborhood of the operative stations.

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At Kahalgaon the following CSR Activities done during the period of 2009-10.

10 nos. High Mast Lights erected at Bhagalpur. 6 nos. High Mast Lights are proposed at Kahalgaon.

Total project affected villages – 66 (In Bhagalpur Distt. of Bihar-37 & in Godda Distt of Jharkhand-29). Resettled in Indira Awas & Basant Vihar Colony (RC-I & RC-II) – 285 Nos.

Construction/repair of approx.3.00 Km Road at village Anadipur, Katoria –to- Mazdaha and at Kahalgaon. Work in progress:

Construction/renovation of 03 Community Hall at Chhopaltola, Sobhnathpur & Mahagama.

Free education, books and school bags, to poor children of nearby villages 350 Nos. in Vidya Bhawan School in NTPC Township from Class-I to Class-IV.

Sewing Training & Adult Education is imparted to the women/ young girls of nearby villages.

Distribution of Relief Materials for Fire Victims at Krishandaspur(70) & Naya Nagar Ranideora(11) of Kahalgaon Block. Distributed Relief Materials for Fire Victims at Babupur Deora(152) of Pirpainti Block. Relief materials provided to the fire victim of Jamunia Tola.

EYE CAMP organized in Nov.2009 by our Hospital and patients operated-155.

Distribution of study materials/stationeries and woolen clothes to the children of Ramadevi Hindu Anathalay at Bhagalpur.

Relief materials distributed to fire victims at Daulatpur-22 families in association with Srishti Samaj.

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Financial Support for purchase of Newspapers and Magazines to Vikramshila Vihar Library, Ganguly Park, Kahalgaon for educational access to the general public.

Sponsored Sports and Games tournament at Kahalgaon, Akbarpur, Lailakh, Belbadda & Banshipur to encourage local youths under CSR budget.

03 Nos. Tubewells installed in nearby villages.

CSR FUTURE PLANS

Adoption of 06 villages (03 in Bhagalpur District of Bihar & 03 in Godda District of Jharkhand)

Installation of 14 High Mast Lights (08 in Godda District and 06 in Bhagalpur District)

Providing opportunity under job contract for engagement to equired number of PAPs of unskilled and semi-skilled categories.

Encouraging formation of Co-operatives of PAPs by giving membership to land oustees for awarding job contract in plant and township area.

Work proposed in 2010-11 :-

Construction of Girls & Teachers' Common Room with Toilet in SSV College, Kahalgaon

Widening of Siri Ghat (From Sati Ghat to Durga Sthan LCT Ghat), Kahalgaon

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Developmental work in Kahalgaon Railway Station

Construction of drain on both sides from Vikramshila Park Chowk to Irrigation Dept's Bandh Chowk, Kahalgaon

Repair of PCC Road & drainage – Kalpana Cinema Road (Station chowk to Charodham – 1.5 Km), Kahalgaon

Construction of Madya Vidyalaya (Middle School),Choudhary Tola, Kahalgaon.

Construction of road & drainage (from Choudhary Tola Madya Vidyalaya to Late Raghunath Sah & upto residence of Laxmi Prasad Choudhary – 1 Km),Choudhary Tola, Kahalgaon.

Construction of two rooms in High School, Gajhanda (Godda)

Construction of common room at Mahavidyalaya at Mahagama (Godda)

Construction of steps in Champa Talab in Kalgiganj.

Construction of retaining wall and development of site construction of school building in Ogri Village

Construction of Community Hall with Toilet, Shobhnathpur

Construction of boundary wall, steps in pond, approach road & gate at Yogbir Pahad

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Developmental work in RC-I

Developmental work in RC-II

Milestones dates of Kahalgaon Units

Sl Units Date of Synch. Date of Coal Firing Date of Commercialisation

1 Unit # 1 24/03/1994 18/08/1994 01.01.19952 Unit # 2 01/03/1994 30/11/1994 01.04.19953 Unit # 3 24/03/1995 31/08/1995 01.02.19964 Unit # 4 18/03/1996 31/03/1996 01.08.19965 Unit # 5 31/03/2007 02/02/2008 01.08.20086 Unit # 6 16/03/2008 03/11/2008 30.12.20087 Unit # 7 28/06/2009 28/06/2009 20.03.2010

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Beneficiary States :

- States & Union territories of ER, NR, WR, SR & NER.

Transmission systems : 400 KV: 10 Lines i/s & 2 Lines under installation.

400 KV D/C to Farakka, Maithon, Patna.400 KV 2 D/C to Biharsharif.400 KV D/C Farakka line- 3 & 4 work being executed by PGCIL.

132 KV to Bihar Grid at Sabour & Kahalgaon and Jharkhand grid at Lalmatia,

KAHALGAON STATION PROFILE

40

Location : Kahalgaon District - Bhagalpur State - Bihar

Nearest Rail head : KahalgaonNearest Airport : Patna (250KM) &

Kolkata (380 KM)Capacity Installed : Stage-I (4 X 210 MW)

: Stage-II: Phase-I & II(3 X 500 MW)

Total Land Available: 3360 Acres

Plant - 883 AcresTownship - 432 AcresMGR - 522 AcresAsh dyke - 1395 AcresMake-up & Roads - 128 Acres

Land Required for MGR up to New Coal Mines:

HURRA “C”: 99.55 Acres. (Godda District- 99.55 Acres)

CHUPERBITTA: 334.62 Acres

Godda District:-103.69 Acres. Sahebganj District: 230.93 Acres.

Source of Water : River Ganges

Make-up water : Stage-I - 3000 M3/Hrrequirement Stage-II - 6000 M3/Hr

Cooling system : Closed cycle induced draft Cooling towers system.

41

Performance Management

What, Why & How?

42

PERFORMANCE MANAGEMENT-What, Why & How?

Historical Perspective :-

Measuring and appraising performance is probably the most researched area

within HRM,the last hundred years have seen continuous evolution in

approaches to Managing employee performance.

The earliest recorded instance of a formal evolution report was in 1813.

The start of the industrial age in the 1800s saw trends of performance

appraisal in industry.

In the 1890s Frederick Taylor’s scientific approach and Fayal & Weber’s

bureaucratic theories suggested that financial inducements stimulated

production performance.

The Hawthorne studies in 1927 - 1932 emphasized the influence of supportive

and caring supervision.

It was only after world war–I that appraisals in industry became accepted. The

appraisal of managers was not extensively practiced until after world war – II.

The appraisal system that evolved over the period

Narrative/Essay report: Used mainly by Armed forces , Civil

service and Large organization in public sector.

Traits were the focus of performance Management in 1970s.

MBO concept came into picture in 1980s.

43

When we talk about the five dimensions of Human Resource Management (HRM),

we list down the following, namely,

Performance Management,

Career Management,

Recruitment & Selection,

Training & Development, and

Compensation & Benefits Management.

These five dimensions, though equally important, often fail to secure equal

attention from Human Resource (HR) managers. The facts that performance

management is not just an annual performance appraisal and training is not the

44

WHAT COUNTS GET MEASURED

WHAT GETS MEASURED GETS DONE

WHAT GETS REWARDED COUNTS

WHAT GETS DONE GETS REWARDED

only solution to effective performance are forgotten by the HR managers and the

management team. As a result, successful organizations, happy with their existing

success status, is actually deprived of a potential growth that could have been

achieved should they have invested more attention to performance management

than only performance appraisal For instance, the total HR performance of a

company is worth Rs 1000, which means the employees’ performance is resulting

revenue worth Rs 1000. Among this set of employees, some are excellent

performers, some are good, some moderate and some poor. This difference in

performance level are due to the fact that some are using 100% of their potentials,

some working below their full potentials and some working at zero or marginal

potentials. The challenge of equalizing the difference in performance level lies in

an objective performance management system.

What Performance Management Is Not:

it’s not just an annual performance appraisal

it’s not imposing targets/goals on an employee by his supervisor

it’s not only evaluating individual job performance

What is Performance Management:

it’s Management By Objectives (MBO)

it’s about setting SMARTER goals

it’s about planning to perform

it’s about periodically reviewing progress in performance

it’s about evaluating performance for further improvement

it’s about delivering reinforcement for performance success and

performance failure

45

What is the Performance Management Process/Cycle :

The steps of Performance Management Process are as follows:-

Individual Goal Setting & Performance Planning

A goal setting session between the PMS administration and the employee.

listing down the major goals to be achieved in a year in line with functional

objectives.

Reviewing goals to assess the feasibility of their accomplishments; making

sure the goals are SMARTER- Specific, Measurable, Actionable, Realistic,

Time-framed, Extended & Rewarding.

finalizing goals for a year.

planning about how to achieve the goals.

identifying the possible barriers in achieving them.

planning on ways to overcome those barriers.

Mid Year Performance Review

A performance review session between the PMS administration and the

employee

discussing performance progress status.

revising performance plan (if needed) with new deadlines for goals

46

Performance Appraisal

A performance appraisal session between the PMS administration and the

employee.

measuring performance as against preset goals.

measuring competencies required for current role.

measuring potentials as against required competencies set for future role.

chalking out Individual Development Plan outlining to fill skill gap,

motivation & aspiration gap and communication & cooperation gap.

chalking out Reinforcement plan to reward/recognize for success and

punish for deliberate failure.

The beauty of this Performance Management process is that it has three

dimensions only, which give three major outputs that can be fed into other four

dimensions of HRM and not to mention Performance Management also. The beauty

is illustrated as follows:

Performance

Assessment

Performance

MeasuresRating Scale Outputs

Performance

EvaluationPreset Goals 5-points New goal setting

Competency

Evaluation

Required

competencies of

current role

5-pointsDevelopment

Plan

Potential

Evaluation

Required

competencies of

future role

5-points

Career

Development

Plan

47

Performance Management System at NTPC

48

Mid – year Review

Annual Assessment

Performance planning

Feedback

Normalisation Process

Step 1

Step 5

Step 4

Step 3

Step 2

PMS Process

PMS AT NTPC

PMS is a five step process:-

Step 1

Identifying KPAs, Constituents, Weightages, Measures and Targets.Identifying Functional and Managerial Competencies for the appraise.

49

Step 2

Joint review of performance Document Changes in KPAs if anyDocument mid year review discussion

Step 3

Assessment of KPAs, Competencies, Values and potential by appraiser .Training and development plans.Review by reviewing officer

Step 5

Communication of scoreDevelopmental feedback

KPA Setting Process:

50

Company Goals

Unit Goals

Individual Goals

Functional /Departmental Goals

MOUs

Special task

Initiatives

Corporate plan

PMS COMPRISES ASSESSMENT ON FOUR PARAMETERS WITH DIFFERENT WEIGHTAGES FOR VARIOUS LEVELS

S.NO. PMS PARAMETER WEIGHTAGES FOR DIFFERENT GRADES

E1-E3 E4 E5 E6-E7 E7A-E8 E91 KPA 80 75 65 60 50 50

2 a. Functional competency assessment

10 10 10 10 10 05

b. Managerial competency assessment

05 05 10 10 15 15

3 Potential assessment

Nil 05 10 10 10 10

4 Value assessment 05 05 05 10 15 20

Total 100 100 100 100 100 100

For junior executives there is higher weightage on KPAs and functional competencies as there is higher focus on achieving the immediate functional task.

The weightage on Managerial competencies and values increases for an executive as the grade increases because of importance of achieving business goals by managing work of other employees through ethical means.

At NTPC Online Performance Management System is being practiced for Executives. For Non Executives it is still manual.

51

Thre are three major challenges in effective implementation of PMS at NTPC

1. Involvement of big number of executives (approx 1200) in designing of KPAs and Competency Directory.

2. Skill gap in feedback and performance counseling.3. Transformation from legacy to transparent system.

PERFORMANCE LINKED PAY

Proportion increases with seniority Proportion decreases with seniority

52

EMPLOYEE COMPENSATION

FIXED COMPONENTVARIABLE COMPONENT

INDIVIDUAL PERFORMANCE

UNIT PERFORMANCE

COMPANY PERFORMANCE

Relative Weightage for company Unit and Individual Performance.

PERFORMANCE

WEIGHTAGE TOP MGMT. MIDDLE MGMT. JUNIOR MGMT.

COMPANY’S 50% 35% 15%

UNIT’S 30% 25% 20%

INDIVIDUAL’S 20% 40% 65%

53

Methodology Used

For

Study and Data Collection

RESEARCH METHODOLOGY54

This Project was made to study how effective the current performance management system is and how convenient is the newly introduced online performance management system at NTPC.

The method of survey was rather very simple. We used sampling method to conduct survey. Sampling was done on random basis covering all departments. A total of 50 executives from different departments of NTPC Kahalgaon were surveyed. We personally met them and took their views during conversation .We also supplied a questionnaire to each of them and collected back later according to their convenience giving them appropriate time to respond to the questionnaire.

A total of 20 questions were there in the questionnaire. Analysis of raw data was done with the help of graphical representation.

55

Graphical Representation Of Feedback Given By Executives

Quest: 1- you feel convenient with computerized online performance management system at NTPC.

56

58%

2%

40%

percentage

AgreeNeutralStrongly agree

Agree 58% Neutral 2% Strongly Agree 40%

Inference :- No one disagreed and only 2 % Executives were neutral so we can say that most of them are tech savvy and feel convenient with online PMS.

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Quest:-2 your job description clearly define KPA’s on which your performance is rated.

60%

24% 16%

Percentage

AgreeNeutralStrongly Agree

Agree 60% Neutral 24% Strongly Agree 16%

Inference:- They were well aware about there KPAs and felt that it is according to there job profile as 84% Executives agreed to it.

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Quest:3 -The goals (KPA’s) set are always mutually agreed upon i.e. your consent is taken into consideration while setting KPA’s.

38%

10%

38%

14%

Percentage

AgreeDisagreeNeutralStrongly agree

Agree - 38% Disagree - 10% Neutral - 38% Strongly Agree - 14%

Inference: - The response was divided although 52 % Executives agreed about their consent being taken into the KPA setting process, 10% disagreed and 38% preferred not to answer. It says that in general executives participate in the KPA setting process but there is some dissatisfaction.

59

Quest: 4- The performance goal set by the appraiser for you are in alignment with your career aspirations.

38%

10%

44%

6% 2%

Percentage

AgreeDisagreeNeutralStrongly AgreeStrongly disagree

Agree-- 38% Disagree--10% Neutral -- 44% Strongly Agree – 6% Strongly Disagree --2%

Inference :- This shows the level of job satisfaction of employees. As 44% of them agreed and 0nly 12% disagreed to the fact that their KPAs matches their career aspirations, we can say mostly they are satisfied

60

Quest: 5- The deadlines set to complete and submit the performance documents are sufficient.

68%

6% 14%

12%

percentage

AgreeDisagreeNeutralStrongly Agree

Agree—68% Disagree—6% Neutral—14% Strongly Agree—12%

Inference:- Mostly they are satisfied with the operations of Performance Management system.

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Quest: 6 - The KPA’s are in accordance with the MOU targets of the company and the targets of the plant.

58%

8%26%

8%

Percentage


Agree—58% Disagree—8% Neutral—26% Strongly Agree-- 8%

Inference:- It simply shows the awareness level of Executives. 66% of them were agree and felt that individual goals matches well with unit goals and company goals.

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Quest: 7- All the factors facilitating and hindering performance are taken into consideration while appraising the performance.

40%

10%

44%

4%

2%

Percentage

AgreeDisagreeNeutralStrongly Agreestrongly Disagree

Agree—40% Disagree—10% Neutral – 44% Strongly Disagree—2% Strongly Agree—4%

Inference:- Although 12 % of executives disagreed a healthy proportion of them agreed to this. Generally most of the factors affecting the performance of an employee are taken into considereation.

63

Quest: 8- Your seniors assist you at the time of your need.

64%

18% 18%Percentage

AgreeNeutralStrongly Agree

Agree—64% Neutral—18% Strongly Agree—18%

Inference:- The response says that that there is a healthy environment of working, seniors assist their subordinates whenever there is any need.

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Quest: 9- Your final rating is doesn’t only on your competencies and KPA’s but also on several other factors are like your corporate image and interpersonal relation with the rater.

40%

4% 16%

40%

Percentage



Inference:- Along with the competencies and KPA achievements the factors like corporate image and communication skills of the executives matter while rating their performance.

65

Quest: 10- Your doubts and queries are addressed by the PMS administrator while operating online PMS.

40%

4%

38%

14%4%

Percentage


Agree—40% Disagree—4% Neutral—35% Strongly Agree—14% Strongly Disagree—4%

Inference:- Except a few disagreement most of the employees agree that their doubts and queries are addressed by the PMS administrator.

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Quest: 11- PMS is very useful for career planning.

Agree—64% Disagree—4% Neutral—24% Strongly Agree—8% Inference:-Most of the executive advocate the need of performance management in career planning.

67

64%

4%24%

8%

Percentage


Quest: 12- The process is used mainly for improving the future performance along with reviewing the present performance.

52%

6%

26%

14% 2%

Percentage



Inference:-Performance management is meant for improving future performance of employees and most of them agreed to it. The rewards and recognitions are part of performance upgradation.

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Quest: 13- You feel free to express to your appraiser your disagreement regarding the appraisal decision.

38%

20%

38%

4%

Percentage

AgreeDisagreeNeutralStrongly disagree


Inference:-It seems that upto some extent the employees are hesitant to express their disagreement regarding the appraisal decision to their appraiser, but overall the system is open and flexible as 40% of them agreed to it and almost the same no were neutral.

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Quest: 14- Your seniors provides you with continuous feedback to help you achieve your KPA’s.

46%

16%

36% 2%

Percentage



Inference:-Mostly Executives are well aware about there KPAs and seniors keep providing them feedback to achieve that, although some of them disagreed to it which may be due to miscommunication between senior and subordinates.

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Quest: 15 - The recognition given to high performance is appropriate and helps in motivating the employee.

42%

18%

32%8%

Percentage


Agree—42% Disagree—18% Neutral---32% Strongly Agree—8%

Inference:-The recognition given to High performers is appropriate. There are scopes of evolution of the recognition system so that even those who disagreed to the appropriateness of the recognition system get satisfied.

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Quest: 16- Appropriate training is given to employees who fail to meet the expected performance level.

18%

24%

48%

2%8%

Percentage



Inference:-Although half of the executives surveyed preferred to be neutral, There is a need to improve the training system so that appropriate training could be given to those who need it.

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Quest: 17- The online PMS is dynamic and keeps you aware about your instantaneous weak and strong area of performance effectively.

32%

26%

30%2%

10%

Percentage



Inference:-The online PMS may be dynamic as compared to the manual system but it does not provide instantaneous feedback about one’s KPAs.

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Quest: 18- You are satisfied with the weightages given against each activity that you are supposed to perform in the specified period.

44%

10%

36%

10%

Percentage



Inference:-Mostly they agreed about the adequacy of weightages given against each activity which they are supposed to perform in a given period.

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Quest: 19- your training need should be identified through the midyear review.

60%

12% 6%

22%

Percentage



Inference:-Mostly they agreed that their training needs should be identified in mid term. It shows the employees are eager to go through appropriate training if any and improve their performance.

Quest: 20- Managers and Employees trust the appraisal process.

75

56%

8%

32%4%

percentage



Inference:-The appraisal process is trustworthy.

Suggestions

76

PMS should be linked to Business strategy.

Performance assessment should be objective and efficient.

PMS should be an “open and participative system” with feedback loops where everyone feels free to express their views with the appraiser.

PMS should distinguish high performers from low performers. The recognition to high performers should be done with more efficiency.

PMS should have a “developmental focus” with appropriate training system to cater the training need of employees.

The process should be monitored efficiently addressing the doubts and queries of the employees.

The KPA setting process should ensure the active participation of executives.

There should not be any communication gap between seniors and subordinates as it is of utmost importance in performance management.

Persuasive sessions should be organized to emphasize the need of performance management and how the active participation of employees without any biases help in improving performance management system.

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Conclusion

The aim of performance management system is ensuring the maximization of efforts by the employees of the organization to realize the desired goals. More effective the performance management of an organization more productive the organization would be. NTPC as a whole is a big organization with vast number of employees working there, to manage the performance of such a great number of people efficiently is a herculean task. The survey and personal interviews conducted during the project work says that an effective performance management system is on place but as we know everything in this world keep evolving itself for betterment, the performance management system is not an exception.

NTPC can touch new heights in the field of energy management by managing its manpower more efficiently, addressing there training needs, recognizing the high performances and making them feel the freedom of expressing their points.

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Limitations of the Research

The subject was too big but time available was too less. The survey was not conducted among all the employees of NTPC but on a sample of randomly selected executives.

At times it was often felt that there is a difference between the real feeling and the feedback given by executives. Exact feedback must be given so that the analysis done would be correct.

Some of the executives were not interested in the subject metter.

We were unable to discuss issues related to our project with some people and only responses to questionnaire were collected.

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Bibliography

Human Resource and Personal Management - K. Ashwathapa

Organizational Behavior - Stephen p. Robins

http/intranet 1 – KHSTPP

www.google.com

www.wikipedia.org

www.citehr.com

www.ntpc.co.in

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http://www.ntpc.co.in/

http://www.citehr.com/

http://www.wikipedia.org/

http://www.google.com/

Questionnaire On Effectiveness of Performance Management System

You feel convenient with computerized online performance management system at NTPC

1. strongly disagree 2. Disagree 3. Neutral 4. Agree 5. Strongly agree

Your job description clearly defines KPA’s (Key performing areas) on which your performance is rated.


The goals (KPA’s) set are always mutually agreed upon ie – your consent is taken into consideration while setting KPA’s.


The performance goal set by the appraiser for you are in alignment with your career aspirations.1. strongly disagree

2. Disagree 3. Neutral 4. Agree 5. Strongly agree

81

The deadlines set to complete and submit the performance documents are sufficient.


Your KPA,s are in accordance with the MOU targets of the company and the targets of the plant.


All the factors facilitating and hindering performance are taken into consideration while appraising the performance


Your seniors assist you at the time of your need.


82

Your final rating is based not only on your competencies and KPA’s but also on several other factors like your corporate image and interpersonal relation with the rater.


Your doubts/Queries are addressed by the PMS administrator while operating online PMS.


Performance management system is very useful for career planning.


The process is used mainly for improving the future performance along with reviewing the present performance.


83

You feel free to express to your appraiser your disagreement regarding the appraisal decision.


Your senior manager provides you with continuous feedback to help you achieve your KPA’s.


The recognition given to high performance is appropriate and helps in motivating the employees.


Appropriate training is given to employees who fail to meet the expected performance level.


84

The online PMS is dynamic and keeps you aware about your instantaneous weak or strong area of performance effectively.


You are satisfied with the weightages given against each activity that you are supposed to perform in the specified period.


Your training need should be identified through the mid year review.


Managers and Employees trust the appraisal process.

1. strongly disagree 2. . Disagree

3. Neutral 4. Agree 5. Strongly agree

85

performance management system at ntpc

Documents

ntpc ntpc kahalgaon

ntpc methodology

project work

project report

project study

ntpc limited plans

table of figurespage

mba program tmbu bhagalpur