rewards n recognitions

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A SUMMER INTERNSHIP PROJECT REPORT

ON

Rewards & Recognition

Submitted in partial fulfilment of requirement of Bachelor of BusinessAdministration (B.B.A) General

BBA Vth Semester (B)-(M)

Batch 2010-2013

Submitted to: Ms. NITI SAXENA Submitted by:

Designation: Assistant Professor Enrollment no.: 10514101710

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL. KALKAJI


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STUDENTS UNDERTAKING

I, PRERNA AHUJA , hereby declare that the project work entitled REWARDS &RECOGNITION POLICY OF NTPC is an authenticated work carried out by me at NTPC Under the guidance of Mrs. HARLEEN SACHDEVA for the partial fulfilment of the award of the degree of BACHELORS OF BUSINESS ADMINISTRATION and thiswork has not been submitted for similar purpose anywhere else except to JIMSKALKAJI, IP UNIVERSITY.

PRERNA AHUJA


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INDEX

No Content Page no

1 Acknowledgement 4

2 Executive Summary 5

4 Literature Review 6

4.1 Rewards 10

4.2 Kinds of Rewards 13

4.3 Levels of Rewards 19

4.4 Employee Rewards & Recognition Program 25

4.5 Motivation 28

4.6 Rewards & Recognition In NTPC 32

5 Company Profile 41

7 Data analysis and interpretation 54

10 Recommendations 62

11 Conclusion 64

12 References 66

13 Appendix 68


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ACKNOWLEDGEMENT

It is high privilege for me to express my deep sense of gratitude to all those facultymembers who helped me in the completion of the project, especially my External guideMs. Harleen, who was always there at hour of need.

My special thanks to Ms. Niti Saxena for helping me in the completion of project workand its report submission.

PRERNA AHUJA


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EXECUTIVE SUMMARY

As a part of my curriculum I had to do two months training in a well-reputed firm and for

this I had selected NTPC, EOC and my topic was REWARDS & RECOGNITION

POLICY OF NTPC . It was a unique opportunity to explore the realities of India s leading

power generation company as a researcher and gather knowledge from its vast

repertoire of experience.

It was a great learning experience .The project not only helped me to enhance my

practical knowledge on Rewards & Recognition as a motivating factor but also gave me

an insight into the way work force is utilized here. I got to know the importance of

communication and interpersonal skill in getting things done from others. In a nutshell, it

was a very fulfilling and fruitful period of my life as a management student.


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LITERATUREREVIEW


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The term Non-Monetary Reward as a synonym to incentive and bonus. Oxforddictionary defines reward as: a thing given in recognition of service, effort, or achievement. Oxford dictionary also use the synonyms: recompense, prize, award,honor, decoration, bonus, premium, bounty, present, gift, payment; informal pay-off,

perk; formal perquisite.

Recognition and rewards play an important role in work unit and agency programs toattract and retain their employees. It is the day-to-day interactions that make employeesfeel that their contributions are appreciated and that they are recognized for their ownunique qualities. This type of recognition may contribute to high morale in the workenvironment. So, it s extremely important that managers, who communicate the agencygoals to employees, are included in the development of recognition programs.

Non-Monetary Rewards and Recognition is a means of providing immediate, non-cashrewards to employees for contributions to the Organization. We ve all heard thestatistics on how staff members like to be recognized and rewarded for doing a good

job. That a pat on the back or a thank you can mean more to a person than anyamount of money. But actually putting a system into place can be easier said thandone. Employee Reward covers how people are rewarded in accordance with their value to an organization. It is about both financial and non-financial rewards andembraces the strategies, policies, structures and processes used to develop andmaintain reward systems.

The ways in which people are valued can make a considerable impact on theeffectiveness of the organization, and is at the heart of the employment relationship.The aim of employee reward policies and practices, if any the organization is to helpattract, retain and motivate high-quality people. Getting it wrong can have a significantnegative effect on the motivation, commitment and morale of employees. Recognition isthe most cost-effective motivator there is. While the high cost of other rewards forces usto give them sparingly, recognition can be given any time, at very little cost.

Recognition is a leadership tool that sends a message to employees about what isimportant to the leaders and the behaviors that are valued. Managers can use this toolto help employees understand how their jobs contribute to the agency s overall goalsand how their performance affects the achievement of those goals. Often people havecome to accept the notion that an employee is paid to do their job. So why should theybe praised for doing what they re paid to do? Praise of an employee rei nforces,recognizes and motivates behaviors that you, as the manager, want to see.

Non-Monetary Rewards and Recognition can be delivered in a number of ways. Thinkabout just saying Thanks. What does praise cost? Praise is inexpensive. If it onlytakes a few minutes to reap day s worth of increased productivity and morale, isn t itworth it? This doesn t mean that meaningless warm fuzzies are going to work,


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however. Use Jim Brintnall s description of What Makes a Good Reward? Jim says it sgot to be SMART!

That means that rewards should be:

Sincere : Above all else, a good reward should reflect a genuine expression of appreciation. Token acknowledgements leave something to be desired.Meaningful: To endure a motivating influence, rewards should be aligned with thevalues, goals, and priorities that matter the most.Adaptable: The diverse workplace demands alternatives. Consider creative options tokeep your program fresh. No single reward format works for everyone all the time.[Recognition should be adapted and valuable to the receiver.

Relevant: Some personal dimension is essential to a good reward. No matter howformal or informal, expensive or affordable, the relevance of any recognition will beimproved with a personal touch - - it s a little t hing that makes a big difference.[Recognition should be provided by someone of significance to the receiver.]Timely: It is important that rewards respond to the behavior they are intending toreinforce. Don t let too much time pass or the reward may be devalued and credibilityeroded .

To ensure that employees tie recognition into the work unit or agency s strategic goals,be certain to tell employees what they did right and how it interacts with the goals.Include supervisors and employees in the development of your recognition program to

represent the values and goals of a diverse cross-section of the work unit or agency.Provide the opportunity for recognition to come from a variety of sources. Peer-to-peer recognition usually is highly valued by employees. It can be used to develop asupportive work environment.

For many employees, recognition received through the expression of genuineappreciation for the work they do is a reward. Being involved in a project or receivingspecial training may be anot her s reward. Make no mistake, however, that mostemployees would not turn down a monetary, non-monetary or recognition leave reward!

Non-Monetary Reward is the benefit received for performing a task. Total rewardembraces everything that employee s valu e in employment relationship. It means all thetools available to the employer that may be used to attract, motivate and retainemployees.

Non-Monetary Reward will mean a token of appreciation of thecontribution/performance of employees leading to significant improvements in the workprocesses and effectiveness. The employees would be rewarded for their contributionthrough four categories of awards as given here under:

Good Work Done

Performers of the Quarter


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Team Award

Annual Awards

A ) Good Work Done Appreciation of good work done within the Department, that sets an example for therest of the employees, would be done by highlighting the contributions through anappreciation letter by the HOD and display on the Notice Boards. B ) Performers of the QuarterThese Awards are given for contributions that have a significant impact on thefunction/business of the company. C) Team Award

As and when any cross-functional team working on an assignment exceeds therequirements laid down for the work or achieves a milestone, the team may be sent outfor a dinner or an outing. D) Annual AwardThe purpose of this award is to recognize the Best Performer of the year.

According to Nelson, informal or spontaneous rewards can be implemented withminimum planning and effort by almost any manager. He quotes a Wichita StateUniversity study noting that "simply asking for employee involvement is motivational initself."

That Wichita State study also determined that the top five motivating techniques were: Personally cong ratulating employees who do a good job; writing personal notes about good performance; using performance as the basis for promotion; publicly recognizing employees for good performance; and holding morale -building meetings to celebrate successes.

Nelson adds that informal rewards make more of a positive impact with employees andare cost effective. According to the "People, Performance and Pay" study by Houston,Texas-based American Productivity Center and the American Compensatory

Association, it generally takes five to eight percent of an employee's salary to changebehavior if the reward is cash and approximately four percent of the employee's salary if the reward is non-cash.

Petroleum marketers have used informal rewards to recognize their employees' goodworks. Chevron (San Francisco, CA) keeps a large box, secured with a padlock, filledwith gifts. An employee being recognized on the spot for some accomplishment isbrought to the "Treasure Chest" by his or her supervisor, who holds the keys. The

employee gets to choose an item from the box, which could be anything from a giftcertificate, to a coupon for lunch or dinner, to movie tickets.


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Some of the most effective ways to reward your employees is to simply say thanks fordoing a great job, giving them a birthday card, or keeping them posted onchanges at work that directly affect them. Remember those gold stars that the 1st

grade teacher put on your report? It may indeed sound childish on the surface, butpeople really do like to receive a gold star every now and then for a job well done.

REWARDS

ObjectiveReward systems have three main objectives: to attract new employees to theorganization, to elicit good work performance, and to maintain commitment to theorganization.

Meaning of Rewards

Reward system or management usually means the financial reward on organizationgives its employees in return for their labour. While the term rewards system, not onlyincludes material rewards, but also non-material rewards. The components of a rewardsystem consist of financial rewards (basic and performance pay) and employeebenefits, which together comprise total remuneration. They also include non-financialrewards (recognition, promotion, praise, achievement responsibility and personalgrowth) and in many case a system of performance management. Pay arrangementsare central to the cultural initiative as they are the most tangible expression of theworking relationship between employer and employee. Many papers examine the roleof organizational culture i.e., the demand for monitoring compensation. Such

investigations conclude that organizational culture places a significant role indetermining the level of economic demands. Recent researches on industrial unrestrest indicate that reward criteria of the organizations both financial and non-financialrewards have tremendous influence upon the employees and employers performance.

Meaning of Awards

An award is something given to a person or a group of people to

recognize excellence in a certain field; a certificate of excellence. Awards are oftensignified by trophies, titles, certificates, commemorative plaques, medals, badges, pins,
http://en.wikipedia.org/wiki/Excellencehttp://en.wikipedia.org/wiki/Trophyhttp://en.wikipedia.org/wiki/Title_of_honorhttp://en.wikipedia.org/wiki/Certificatehttp://en.wikipedia.org/wiki/Commemorative_plaquehttp://en.wikipedia.org/wiki/Medalhttp://en.wikipedia.org/wiki/Badgehttp://en.wikipedia.org/wiki/Award_pinhttp://en.wikipedia.org/wiki/Award_pinhttp://en.wikipedia.org/wiki/Badgehttp://en.wikipedia.org/wiki/Medalhttp://en.wikipedia.org/wiki/Commemorative_plaquehttp://en.wikipedia.org/wiki/Certificatehttp://en.wikipedia.org/wiki/Title_of_honorhttp://en.wikipedia.org/wiki/Trophyhttp://en.wikipedia.org/wiki/Excellence


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or ribbons. An award may carry a monetary prize given to the recipient, for example,the Nobel Prize for contributions to society. An award may also simply be a publicacknowledgment of excellence, without any tangible token or prize.

Awards can be given by any person or institution, although the prestige of an awardusually depends on the status of the awarder. Usually, awards are given by anorganization of some sort, or by the office of an official within an organization or government.

One common type of award in the United States is the Employee of the Month award,where typically the recipients' names are listed in a prominent place in the business for that month.
http://en.wikipedia.org/wiki/Award_ribbonhttp://en.wikipedia.org/wiki/Nobel_Prizehttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Nobel_Prizehttp://en.wikipedia.org/wiki/Award_ribbon


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Rewards

Monetary Rewards Non-MonetaryRewards

Compensation PerformanceRewards

Rewards&Recognitions

Awards Appreciations


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Kinds of Rewards

Monetary RewardsThis includes:

Bonus

Variable pay

Vouchers

Cash payments

Non- Monetary Rewards

Recognition (To notice, show appreciation)

Say Thank You!!!

It is important that we always thank young people for their work either verbally or inwriting (i.e. letter, text, e- mail). Recognize the value of young people s involvement and

of volunteering. Help them to understand the value of giving something back to their community, developing skills, the sense of achievement and the feel good factor.

Certificates

The employees who are performing well they should be given the certificates asappreciation for their good work. Because giving certificates to the employees helpsthem a lot in increasing their motivation level.

Feedback

Young people want to know what difference their contribution has made. Has what theyhave done led to any action or change?

It is important that when you are doing a piece of work with young people you agree withthem at the outset how you will feedback to them. Agree methods, timescales etc.


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Other Inexpensive Ways to Reward Employees

- A thanks can be said- A handwritten note can be dropped to them

- A program can be named after the employees- The staffs can be praised at staff & other public meetings- A new training programs can be created for the staff

Difference between Awards and Rewards?

Volunteer, staff or community member recognition is the crucial process of rewardingand motivating the people who have contributed positively to your community. It's a

crucial area for any community manager and you are quite right to make a distinctionbetween awards and rewards.

Here are some definitions which may help evince the differences between these twoways of recognising the people who make your community "happen".

1) Awards

"Awards" are the periodic provision of tokens of appreciation or symbols of recognition

to individuals. Awards can take place both in a group and a one-to-one basis, but ineither instance they usually are publicly presented. Awards generally fall into twocategories.

The first is 'tangible items' in the way of merchandise or gifts, whichmight include:

1. Certificates2. Pins3. Group Photographs4. 4.Items of clothing, such as T-shirts, caps, etc.

The second category is 'events' , including:

1. Lunches and dinners2. Parties and celebrations3. Field trips e.g. to the organizations offices

Awards are particularly useful in generating a sense of bonding or group involvementamong those who do not often have an opportunity to gather together or for whomsharing their togetherness is otherwise difficult. Awards are good short-term bonding or

motivating tools ata group level. In the case of events, often there is a mutual appreciation and recognition


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of everyone else's contribution to the team effort or goal.

2) Rewards

"Rewards" are the more intangible day-to-day activities of recognition and motivationthat are given to individuals to encourage them and to acknowledge their contributions. As such, rewards tend to be less formal, more private and more personal.Example of rewards includes:

Saying 'Thank You'.Giving respect and equal status to volunteers and/or staff.Maintaining a personal interest in the volunteer, staff.Spending time and effort in supervision.

Giving the individual more responsibility.Spotlighting a community member on the front page of your site.Sending a personal message to a community member thanking them for their participationRewards tend to be more effective long-term motivators of individualvolunteers, staff or community members -- the feel good factor.

Types of Recognition Programmes

There are some types of recognition programmes which are mentioned under:

TYPE DESCRIPTION EXAMPLES Spotprogrammes

Recognition programmes that have low or minimal cost and do not require a formalplan document or extensive administration.

Movie ticketsPaid mealsFlowersTickets to

special events

Symbolic

awards

Recognition programmes designed to

provide a tangible award or memento. Service awardQuality awardRecognition

certificatesPlaques and

trophies


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Nelson (1994) sums it up very well when he says you get the best effort fromemployees not by lighting a fire under them, but building a fire within them. In his book1001 Ways to recognize employees he makes the following suggestions for informal recognition. These types of recognition would fit into the above category of informal recognition, such as spot programmes or verbal recognition and are generallylow cost in nature.

Buy welcome to the team flowers for a new employee on their first day; Put gold stars on employees name badges; Give out time off certificates; Create a hall of fame for top employees; Hand out thank you cards with flowers or candy; Give movie tickets; A personal note of thanks;

Spoken thank you ; Travelling trophy; Plaque or certificate; Achievement acknowledged at staff meetings; Volunteer to do a colleague s least desirable work task for a day; Pay for a magazine subscription; Give sticky notes with a saying appropriate to their p ersonalities;

Lack of recognition has been cited as one of the primary reasons for top talent leaving.The challenge of informal rewards is to find the right match between the individual andthe recognition given, as the psychic income of being openly acknowledged and

appreciated equals or exceeds the material, monetary income. In conjunction with this,Pollock (1995) argues that leaders who recognize the power of the emotional appeal of informal forms of recognition can more easily motivate employees to higher levels of performance, often for much lower costs than monetary rewards.

CHARACTERISTICS OF NON-FINANCIAL RECOGNITIONPROGRAMMES

Wilson (1994) makes the following suggestions for conditions that stimulate the same or related behaviors in the future:

Specific . Employees must know what they did to earn the recognition, andtherefore they need to continue doing it. Performance measurement and

Verbalrecognition

This approach provides praise directly to theindividual or team. Thank you card

Testimoniesfrom senior leadership

Customer feedback

Writtencongratulations

Publicrecognition


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feedback are essential for consequences to be effective in shaping desiredbehaviours.

Personalized . Recognition has to be meaningful to the employee. Thus themethod of delivery and the source of the reward are often as important as the

item, comment or activity.

Contingent . Recognition has to be earned so that employees feel that theyhave truly achieved some action or result. Further, for a reward to be effective,the desired behaviour/ performance needs to be within the employee s abilityand control (or influence).

Sincere . Recognition has to be given in a manner that is honest, sincere andfrom the heart.

Immediate . Recognition must be provided soon following the achievement or contribution. Waiting for approval, deadlines or completion may reduce theimpact of the reward.

The trend to add informal recognition systems to complement formal rewardsprogrammes have emerged as companies struggled to retain the best employees. Intheir efforts they have discovered that employee motivation is highly individualized.If the intention of a recognition programme is to motivate, then the impact of suchrecognition should be individualized as well. Formal programmes, although successfullymeeting specific organizational goals, do not achieve this. They tend to be impersonaland infrequent, usually once a year or quarterly. The same incentives used over andover also tend to lose its effectiveness.

Why reward system is required?

These components will be designed, developed and maintained on the basis of rewardstrategies and policies which will be created within the context of the organizationsbetween strategies, culture and environment: they will be expected to fulfill the followingbroad aims:

Improve Organizational Effectiveness : Support the attainment of theorganization's mission, strategies, and help to achieve sustainable, competitiveadvantage.

Support and change culture : Under pin and as necessary help to change the'organizational culture' as expressed through its values for performanceinnovation, risks taking, quality, flexibility and team working

Achieve Integration : Be an integrated part of the management process of theorganization. This involves playing a key role in a mutually reinforcing and

coherent range of personal policies and process.


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Supportive Managers : Support individual managers in the achievement of their goals.

Motivate Employees : Motivate employees to achieve high levels of qualityperformance.

Compete in the Labour Market : Attract and retain high quality people. Increased Commitment : Enhance the commitment of employees to the

organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be readyand willing to exert considerable effort on its behalf.

Fairness and Equity : Reward people fairly and consistently according to their contribution and values to the organization.

Improved Skills : Upgrade competence and encourage personal development. Improved Quality : Help to achieve continuous improvement in levels of quality

and customer service

Develop team working : Improve co-operation and effective team working at alllevel.

Value for money : Pride value for the money for the organization

Manageable : Be easily manageable so that undue administrative burdens arenot imposed on managers and members of the personal department.

Controllable : Be easily controllable so that the policies can be implementedconsistently and costs can be contained within the budget.

Meaning of reward to people

Pay is frequently used as a motivator and reinforce on it can easily be differentiated andcomputed, linked, clearly and visibly to direct performance and is generally valued

reward. While outlined the major components in the meaning of reward to people;

Short-term material enjoymentLong term securitySocial statusRecognition of personal achievement


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Significant Reasons to develop better reward management system

To reduce the dissatisfaction of the employees on promotion criterion

To reduce the dissatisfaction of the employees on appraisal system.To reduce the dissatisfaction of the employees on salary, bonus and other fringebenefits.To improve the work performanceTo improve the productivityTo reduce the level of occupational stress that arises from feeling of inequalityon rewardTo reduce the perceptional gap on reward management system and develop aculture of high performance.

Seven Levels of Rewards

The question thus arises whether it is possible to attract, retain and motivate employeeswith rewards, and if so, who will resonate with which reward practices?

Organizations and individuals seldom display the characteristics of one level of consciousness only, and many spread across a number of levels, with a focus on oneor two levels. For simplicity, we discuss the various distinct levels of employeeconsciousness, how they manifest and how these relate to tangible and intangiblereward practices.

LEVEL 1 - SURVIVAL

Characteristic of level 1 focus on physical survival. Individuals focusing on this level areconcerned with financial stability, safety, and health. The negative manifestation of excessive focus at this level manifests as greed and control.

An excessive focus on level 1 from an employee is likely to result in scarcity mentalitywhere nothing is enough and the need for a regular income becomes the greed for anincome beyond what can reasonably be expected for the job. This results in a mind setof entitlement and bargaining.

LEVEL 2 RELATIONSHIPS

At level 2, the quality of interpersonal relationships is important and individuals valueopen communication, friendship and respect. When level 2 expresses in a negativesense, it includes intolerance or an excessive need to be liked.

Examples abound in business of verbal abuse, sexual innuendo and lack of respect for language, religion, culture and ethnicity.


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At this level, role sizing is important since it provides a basis to compare the relativesize or complexity of positions. Setting remuneration levels relative to job size thenfacilitates the management of internal equity and compare to market.

An excessive focus on level 2 from employees is likely to result in excessive collectivebargaining and unrealistic demand.

A healthy expression of tangible rewards at level 2 includes a measure of relativity of role sizes using a transparent and credible system, preferably with wide participation.This is then linked to remuneration guidelines, which are applied in a consistent and fair manner. The intangible rewards at this level include open communication withemployees and treating all individuals and groups with dignity and respect.

LEVEL 3 SELF-ESTEEMEmployees at this level are typically concerned with professional growth andrecognition. Excessive focus at this level could manifest as status consciousness,image building and arrogance. From a reward perspective, employees would like to seetheir efforts recognized. This ideally takes the form of tangible as well as intangiblerewards. Tangible rewards for performance have historically been provided via salaryincreases in excess of inflation. In an era of single digit inflation it is difficult to trulydifferentiate increase levels. There is growing trend to recognize performance tangiblythrough short term incentives.

A healthy expression of level 3 remuneration practices balances the needs of levels 1and 2. Incentive pay is appropriate to the type of work, the time horizon of the work andthe performance aligned with organization objectives, while encouraging constructive cooperation between employees as well as healthy client and supplies relationships.Promotion is not provided as a reward for performance, but is only used when theperson takes on a different role with more responsibility and complexity.

At the intangible reward levels, recognition, either private or public, for outstandingperformance is highly valued as is the opportunity to learn and develop. Internal andexternal training programs relevant to the employee s development are congruent withthe needs at this level.

Intangible rewards take the form of opportunities for learning and professionaldevelopment as well as public recognition of achievement and contribution. Asexcessive focus from an individual at this level is likely to manifest in a mind set of earning and bargaining or individual performance being achieved at the cost of thecollective.


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LEVEL 4 TRANSFORMATION

Individuation is characteristic of the level of transformation and a growing awareness of the importance of personal growth. At this level employees display a growingawareness of context and interdependency.

Individuals at this level often reflect on what is truly important to them and becomeaware of the need for balance between tangible and intangible rewards, the balancebetween self-interest and the common good as well as the need for work/life balance.

At this level, individuals accept and understand the imperatives for tangible rewards atthe previous levels, but question the need to have the package structuring prescribed.The concept of flexible benefits and total cost of employment are typical issues to beraised at this level.

LEVEL 5 INTERNAL COHESION

Level 5 concerns the individual s search for meaning and community. Individuals at thislevel transcend the concept of a career and think of a mission or a purpose in life. Atthis level, creativity, enthusiasm, excellence and generosity are valued.

These individuals typically view the workplace as a community and will view theinteraction between the internal stakeholder from the perspective of contributing to the

sense of community or not.Employees focused at this level will understand and respect the building blocks of theprevious levels in remuneration, but look beyond these. At this level, employees willdevelop discomfort with practices that they see as detrimental to internal communitybuilding.

LEVEL 6 MAKING A DIFFERENCE

Level 6 consciousnesses is about making a difference in the world and individuals whoare focused at this level are often actively involved in the local community. Theseindividuals value environmental awareness and show empathy in dealing with others.

Individuals at this level show understanding for the needs of both tangible andintangible rewards at the previous levels. These individuals are generally motivatedmore by intangible rewards than tangible rewards and remuneration is seldom their primary reason for working as they have the perspective of a life purpose, rather than acareer.

The intangible rewards that are likely to appeal to individuals at this level relate to theability to make a difference to society. Time off work for community work, environmentalprojects and social upliftment are likely to be valued.


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Individuals that have a calling to make a difference are likely to resonate withorganizations that have a strong community and environmental awareness andprograms that give expression to this.

LEVEL 7 SERVICE

Level 7 reflects the highest order of internal and external connectedness. Individualsoperating at this level focus on service to others. These individuals value wisdom,compassion and forgiveness. They have a long term perspective and are concernedwith issue such as social justice and human rights.

Individuals at this level find it hard to work for organizations that violate any of the lower level needs of employees and are insensitive to society or the planet.

Remuneration practices are viewed from long term sustainability over the long term isan example of this. Employees with a focus at this level are likely to identify withemployers that show a global awareness, a balance between long term and short termsuccess indicators (both financial and non-financial) and balance the needs of thisgeneration of stakeholders with the needs of future generations

Maintaining Motivation and Morale

Five steps to maintain staff motivation:

Communication : Keep everyone informed of company successes throughregular communication, such as weekly motivational newsletter.

Company Awards : If you don t already have them, introduce company awards.These can be weekly, monthly, quarterly and annually, and don t need to costyou a fortune.

The little extras : You may no longer be able to offer big bonuses, but you can

implement things such as letting employees leave work early on a Friday, or giving them their birthday off. At Pareto, we also give our top monthly performer a month or free lunches.

Add some fun : We have used themed days for years, and they create a realbuzz. When the schools went back, everyone dressed in school uniform. WhenEngland played Australia in the Ashes, we all came to work in cricketing whites.Get everyone involved and the office will come alive.

Personal Support : This is completely free, but can make a huge difference toindividual motivation. Ensure each member of staff has a mentor that they can

go to and learn from. At Pareto, everyone can speak to a director at any time for advice and support


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Case Study:

A Story about Sarah and Marian

Sarah and Marian both worked for the same small organization. Marian was your typicalhigh flyer, full of energy and potential, eager to do well and was going places. She lovedthe challenges her work provided and was keen to do well. Sarah worked very hard,she managed the admin team and was a real barometer of the organizations values, if she felt something wasn t right you could pretty much guarantee it wasn t right. Sarahhad a small son, and if money had allowed it, she would probably have given up workwhen he was born- however that wasn t a pos sibility. Marian did not have children, sheand her partner had a good life, both working full time.

To reward Sarah the manager did not have the option to give her more money, andeven if she could she knew that actually giving time was a greater reward, so tellingSarah to take Friday afternoon off was a greater reward. She did the same to Marianwho went home and worked some more. To reward Marian, the line manager needed torecognize her Drivers. Knowing that Marian was ambitious. Marian could have be en agood project to manage, something that was high profile working with important clients,something where the manager showed that Marian was not only capable, but trusted totake on such a project. At different times both deserved to be rewarded for their contributions to the organization, however the reward, to be meaningful needed toreflect what was important to each and within the gift of the manager. So for reward andrecognition to be successful you have to know your staff very well.

It is important that rewards reflect the contribution. Giving a small reward for a big

action will have a more negative impact than giving nothing at all. Likewise giving verylarge rewards for small contributions will not be looked upon positively. Whenrecognition or a reward is given it should be done in a genuine manner and the personmade to feel that this is special That they are special and appreciated.

Individual or Team Based Rewards.

Even if some contributors are not so easy to measure, it is unlikely that every onemakes a contribution to the organization. Most recognition and reward systems arebased on individual performance, however increasingly people are tuning to groupbased reward and recognition strategies. The advantages in individual based strategies

are mainly that:

Cheaper than team based strategies!Easy to identify who has made contributionCan be tailored to the individual

Of course there are potential disadvantages in that individual strategy;

Can create unhealthy conflict or competitionCan be open to favoritism

Ignores the value added in the team or chain.


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What type of strategy to adopt depends very much on the nature of the organizationand how work is organized? If you adopt an individual approach, ensure that the quieter and more invisible members of staff are not ignored.

There are some principles that underpin a good reward and recognition strategy-

The implementation of the procedures should be fair now and in the future.The policy should include all members of staff The reward or recognition should be of equal value to the contribution beingrecognized.The reward should be meaningful to the recipient.Criteria for reward and recognition should be transparent.The system should be sustainable.Teams as well as individuals can be rewarded.The supervisor or line managers are in the best position to recognize and reward

contributions.

How to Choose the Right Rewards

The idea of rewarding staff is not a new one. The most successful companieshave been doing it for years, because they know that recognizing the efforts of their employees gets results that range from increased productivity to higher profits. Employees who are reward for their efforts are more willing to go theextra mile for a company, to contribute their intellectual capital, and to stayaround for longer. Staff who feel valued and appreciated are motivated and that sgood news for any company because motivated people can do a lot to contributeto growth and productivity.Where as once a big pay packet was thought of as the only way to rewardemployees, that perception has changed. So too has the notion that only largecompanies have the resources to reward their staff. Companies of all sizes havecome up with ways to reward their employees that extend well outside the realmof salaries and cash bonuses. Many rewards don t involve money at all, and if areward is used the right way, it can achieve results, regardless of whether youemploy 10 people, 100 or 1000.

There s no one right way to reward a staff member because diff erent rewardswork for different people, according to their age and their individual interests.What particular rewards work for employees is likely to change throughout their life, and also throughout their career. However, the sorts of rewards employeesare using are mostly tied to company culture. They are rewards that areinfluenced by the particular industry a company is part of, or by the ages andinterests of employees. There are the rewards that are given for specificachievements or behaviors, such as meeting sales target, coming up with a costsaving idea or attracting new client. Than there are more general rewards givento say Thank you for working for this company, we value you as an employee These might include flexible work hours; time off to work on a community project

or setting up a special work environment for employees. There are alsoworkplaces that provide intrinsic rewards for people-


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That is, the good feelings they get from the work they do.Rewards can be material or non material. Material rewards might very wellinclude cash bonuses, profit share, gifts, tickets to events, holidays, prizes or superannuation top ups.Non material rewards might be time off to pursue personal interests, or organizing a staff function or a special theme day once a month to boost morale.Non material rewards might also include giving staff special training or projects tohelp keep their job challenging, broaden their experience and boost their worth inthe job market.

Employee Reward and Recognition System

In a competitive business climate, more business owners are looking atimprovements in quality while reducing costs. Meanwhile, a strong economy hasresulted in a tight job market. So while small businesses need to get more fromtheir employees, their employees are looking for more out of them. Employeereward and recognition programs are one method of motivating employees tochange work habits and key behaviors to benefit a small business.

Reward vs. Recognition

Although these terms are often used interchangeably, reward and recognitionsystems should be considered separately. Employee reward systems refer toprograms set up by a company to reward performance and motivate employeeson individual and/or group levels. They are normally considered separate fromsalary but may be monetary in nature or otherwise have a cost to the company.While previously considered the domain of large companies, small businesseshave also begun employing them as a tool to lure top employees in a competitive

job market as well as to increase employee performance.

As noted, although employee recognition programs are often combined withreward programs they retain a different purpose altogether. Recognitionprograms are generally not monetary in nature though they may have a cost tothe company. Sue Glasscock and Kimberly Gram in Productivity todaydifferentiate the terms by noting that recognition elicits a psychological benefitwhereas reward indicates a financial or physical benefit. Although manyelements of designing and maintaining reward and recognition systems are thesame, it is useful to keep this difference in mind, especially for small businessowners interested in motivating staffs while keeping costs low.
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Designing a Reward Program

The keys to developing a reward program are as follows:

Identification of company or group goals that the reward program will support Identification of the desired employee performance or behaviors that will

reinforce the company's goals Determination of key measurements of the performance or behavior, based on

the individual or group's previous achievements Determination of appropriate rewards Communication of program to employees

In order to reap benefits such as increased productivity, the entrepreneur designing areward program must identify company or group goals to be reached and the behaviorsor performance that will contribute to this. While this may seem obvious, companiesfrequently make the mistake of rewarding behaviors or achievements that either fails tofurther business goals or actually sabotage them. If teamwork is a business goal, abonus system rewarding individuals who improve their productivity by themselves or atthe expense of another does not make sense. Likewise, if quality is an important issuefor an entrepreneur, the reward system that he or she designs should not emphasizerewarding the quantity of work accomplished by a business unit.

Properly measuring performance ensures the program pays off in terms of businessgoals. Since rewards have a real cost in terms of time or money, small business ownersneed to confirm that performance has actually improved before rewarding it. Onceagain, the measures need to relate to a small business' goals. As Linda Thornburg

noted in HR Magazine, "Performance measures in a rewards program have to be linkedto an overall business strategy. Most reward programs use multiple mea sures whichcan include such variables as improved financial performance along with improvedcustomer service, improved customer satisfaction, and reduced defects."

When developing a rewards program, an entrepreneur should consider matchingrewards to the end result for the company. Perfect attendance might merit a differentreward than saving the company $10,000 through improved contract negotiation. It isalso important to consider rewarding both individual and group accomplishments inorder to promote both individual initiative and group cooperation and performance.

Lastly, in order for a rewards program to be successful, the specifics need to be clearlyspelled out for every employee. Motivation depends on the individual's ability tounderstand what is being asked of her. Once this has been done, reinforce the originalcommunication with regular meetings or memos promoting the program. Keep your communications simple but frequent to ensure staffs are kept abreast of changes to thesystem.
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Recognition Programs

A recognition program may appear to be merely extra effort on their part with fewtangible returns in terms of employee performance. While most employees certainlyappreciate monetary awards for a job well done, many people merely seek recognitionof their hard work. For an entrepreneur with more ingenuity than cash available, thispresents an opportunity to motivate employees.

In order to develop an effective recognition program, it must be sure to separate it fromthe company's reward program. This ensures a focus on recognizing the efforts of employees. To this end, although the recognition may have a monetary value (such asa luncheon, gift certificates, or plaques), money it is not given to recognizeperformance. Recognition methods should be sincere; fair and consistent; timely andfrequent; flexible; appropriate; and specific. explain that it is important that every actionwhich supports a company's goals is recognized, whether through informal feedback or formal company-wide recognition. Likewise, every employee should have the sameopportunity to receive recognition for their work. Recognition also needs to occur in atimely fashion and on a frequent basis so that an employee's action does not gooverlooked and so that it is reinforced to spur additional high performance. Likerewards, the method of recognition needs to be appropriate for the achievement. Thisalso ensures that those actions which go farthest in supporting corporate goals receivethe most attention. However, an entrepreneur should remain flexible in the methods of recognition, as employees are motivated by different forms of recognition. Finally,employees need to clearly understand the behavior or action being recognized. A smallbusiness owner can ensure this by being specific in what actions will be recognized andthen reinforcing this by communicating exactly what an employee did to be recognized.

Recognition can take a variety of forms. Structured programs can include regular recognition events such as banquets or breakfasts, employee of the month or year recognition, an annual report or yearbook which features the accomplishments of employees, and department or company recognition boards. Informal or spontaneousrecognition can take the form of privileges such as working at home, starting late/leaving early, or long lunch breaks. A job well done can also be recognized by providingadditional support or empowering the employee in ways such as greater choice of assignments, increased authority, or naming the employee as an internal consultant toother staff. Symbolic recognition such as plaques or coffee mugs with inscriptions canalso be effective, provided they reflect sincere appreciation for hard work. These letter

expressions of thanks, however, are far more likely to be received positively if thebestower is a small business owner with limited financial resources. Employees will lookless kindly on owners of thriving businesses who use such inexpensive items ascenterpieces of their reward programs.

Both reward and recognition programs have their place in small business. Smallbusiness owners should first determine desired employee behaviors, skills, andaccomplishments that will support their business goals. By rewarding and recognizingoutstanding performance, entrepreneurs will have an edge in a competitive corporateclimate.
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Motivation

Meaning and Theories of MotivationMotivation

Motivation is the internal condition that activates behavior and gives it direction;energizes and directs goal-oriented behavior. The term is generally used for humanmotivation but, theoretically, it can be used to describe the causes for animal behavior as well. According to various theories, motivation may be rooted in the basic need tominimize physical pain and maximize pleasure, or it may include specific needs such aseating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be

attributed to less-apparent reasons such as altruism, morality, or avoiding mortality.

Motivation Concepts

Intrinsic and extrinsic motivation

Intrinsic motivation

Intrinsic motivation comes from rewards inherent to a task or activity itself the

enjoyment of a puzzle or the love of playing basket ball, for example one is said to beintrinsically motivated when engaging in an activity itself. This form of motivation hasbeen studied by social and educational psychologists since the early 1970 s. Researchhas found that it is usually associated with high educational achievement andenjoyment by students. Intrinsic motivation has been explain by fritz Heider s attribut iontheory, Bandura s work on self efficacy and Ryan and Deci s cognitive evaluationtheory. Students are likely to be intrinsically motivated if they:

Attribute their educational results to internal factors that they can control (e.g. theamount of effort they put in),Believe they can be effective agent in reaching desired goals ( i.e. the results arenot determined by luck ),Are interested in mastering a topic, rather than just role learning to achieve goodgrades.

Extrinsic Motivation

Extrinsic motivation comes from outside of the performer. Money is the most obviousexample, but coercion and threat of punishment are also common extrinsic motivations.

In sports, the crowd may cheer the performer on, and this motivates him or her to dowell. Trophies are also extrinsic incentives. Competition is often extrinsic because it
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encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. Social psychologists research has indicated that extrinsic rewards can leadto over justification and a subsequent reduction in intrinsic motivation.

Extrinsic incentives sometimes can weaken the motivation as well. In one classic studydone by green and lepper children who were lavishly rewarded for drawing with felt tippens later showed little interest in playing with the pens again.

Motivational Theories

The Incentive Theory of Motivation

A reward, tangible or intangible, is presented after the occurrence of an action (i.e.behavior) with the intent to cause the behavior to occur again. This is done byassociating positive meaning to the behavior. Studies show that if the person receivesthe reward immediately, the effect would be greater, and decreases as durationlengthens. Repetitive action reward combination can cause the action to become habit.Motivation comes from two sources; one self and other people. These two sources arecalled intrinsic motivation and extrinsic motivation, respectively.

Motivation is the internal condition that activates behavior and gives it direction; and

energizes and directs goal oriented behavior. The term is generally used for humanmotivation but, theoretically, it can be used to describe the causes for animal behavior as well. This article refers to human motivation. According to various theories,motivation may be rooted in the basic need to minimize physical pain and maximizepleasure, or it may include specify needs such as eating and resting, or a desiredobject, hobby, goal, state of being, ideal, or it may be attributed to less apparentreasons such as altruism, morality, or avoiding mortality.

Drive Reduction TheoryThere are number of drive theories. The Drive Reduction Theories grows out of theconcept that we have certain biological needs, such as hunger. As time passes thestrength of the drive increases as it is not satisfied.

Then as we satisfy that drive by fulfilling its desire, such as eating, the drive s strengthis reduced. It is based on the theories of Freud and the idea of feedback controlsystems, such as a thermostat.

There are several problems, however, that leave the validity of the drive reductiontheory open for debate. The first problem is that it does not explain how secondary


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He distinguished between:

Motivators: (e.g. challenging work, recognition, responsibility) which give positivesatisfaction,Hygiene Factors: (e.g. status, job security, salary and fringe benefits) that do not

motivate if present, but, if absent, result in demotivation.This theory is sometimes called the Motivator Hygiene Theory

Self determination Theory

Self determination theory, developed by Edward Deci and Richard Ryan, focuses onthe importance of intrinsic motivation in driving human behavior. Like M aslow shierarchical theory and others that built on it, SDT posits a natural tendency towardsgrowth and development. Unlike these other theories, however, SDT does not includeany sort of Autopilot for achievement, but instead requires active encourage ment from

the environment. The primary factors that encourage motivation and development areautonomy, competence feedback, and relatedness.

Cognitive Theories

Goal Setting Theories

Goal Setting Theory is based on the notion that individuals sometimes have a drive toreach a clearly defined end state. Often, this end state is a reward in itself. A goal sefficiency is affected by three features: Proximity, Difficult and Specificity. An ideal goalshould present a situation where the time between the initiation of behavior and the endstate is close. This explains why some children are more motivated to learn how to ridea bike than mastering algebra. A goal should be moderate, not too hard or too easy tochallenge (which assumes some kind of insecurity of success).

Models of Behavior Change

Social cognitive models of behavior change include the constructs of motivation andvolition. Motivation is seen as a process that leads to the forming of behavioralintentions. Volition is seen as a process that leads from intention to actual behavior. Inother words, motivation and volition refers to goal setting and goal pursuit, respectively.Both processes require self regulatory efforts.


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Rewards and Recognition Scheme in NTPC

Objectives

To recognize and reward employees behaviour for enhanced motivation (It is also well established that a good behavior which gets rewarded gets reinforced).

To create a culture of excellence through Value Actualization and demonstrationof leadership

To create role models at all levels for emulation and inspiration

To foster and nurture a culture of recognition and celebration in NTPC

To encourage overall development of employees through involvement in TQMinitiatives and other Socio-Cultural activities

To encourage involvement in Corporate Social Responsibility efforts.

To promote exhibition of human values and NTPC Core Values

Schemes

i. Applause

ii. Thank You Slips

iii. Appreciation letter

iv. STAR of the Month

v. Employee of the Year

vi. Vidhyut Awards

vii. Power EXCEL Awardsviii. PEARL Awards

ix. ACE Awards

x. Mentors Samman

xi. Manveeyata Puraskar

xii. Welcoming

xiii. Bidding Farewell


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Applause

Objective:

To appreciate a task well done / target achieved within stipulated time by an individual

employee or group of employees in a section/department.

Award:

'Standing applause'' is given to the Individual or the group of employees by inviting tosection/ departmental meeting

A list of people who have got applause in a particular month shall be displayed on thenotice board/Local Web Page for a period of 01 month.

Responsibility:

Head of the dept/Sectional Head

Applicability/Eligibility:

Individual / group of employees within a section / department

Criteria:

To recognize any initiative/job well done by subordinate/ group in day-to-dayfunctioning.

Thank You Slip

Eligibility:

All employees

Criteria:

Any good work done by anyone in the department / group may be appreciated throughfeel good slips / a card.

Recognition:

Employee who wants to recognize another employee may leave a Thank You Slip onthe desk of such an employee or e-mail the same to him/her. This is an appreciation of one employee by another towards realization of NTPC Core Value Mutual Respect &Trust.


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Appreciation letter

Objective

To place on record good work done by an employee/group of employees for recognition and motivation.

Applicability

All employees up to the level of E7

Periodicity

As frequently as possible. There is no limit on number of times an employee could be

appreciated for good work.Reward

Appreciation letter to the individuals/group of individuals shall highlight the specificcontribution/instance.

Star of the Month

Objective

To recognize consistent good work done by the employee(s).

Applicability / Eligibility

All non-executives

Criteria

Non-Executive, who has shown consistent punctuality, discipline, customer orientation,participation in TQM initiatives, team playing etc.

Reward

A small pin- up badge stating STAR of the month by HOD in presence of teammembers.

Name of the employees with the photo should be put on notice boards.


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Employee of the YEAR

Objective

To recognize and reward exemplary performance for creating role models and aperformance culture.

Eligibility

Non-Executives, who have got a minimum of two STAR of the month awards and four Appreciation Letters in a year

Criteria

Non-Executives, who exhibit outstanding all round contribution through regular & activeparticipation in various TQM initiatives, extra curricular activities, demonstrate additionalskills etc. as per the given parameters

Rewards

Two levels of awards at each location i.e. unit / region / CC

Unit level: Rs. 2,000/- each

Department level: Rs.1000/- each

(a) Unit level: Position no. 1 and 2 based on selection of all nominated employeesfrom each department, for Employee of the Year reward.

(b) Departmental: All those who were nominated for the unit level employee of theyear award but did not qualify for the same, would be considered based on their position for Department Employee of the Year reward. There would be only oneaward in this category for each department.

Vidhyut Award

Objective

To recognize & reward meritorious Non executive employees from amongst the entriesof Shram Awards to Government of India


The entries for Shram awards submitted to Govt. of India, but were not awarded.

Criteria


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Such of those entries, which did not get Shram Award, would be considered for thisaward.

Reward

- Letter of appreciation under the signature of Director (HR)- Cash Rewards

Rank No. of awards Reward Amount (Rs.) Name

1st 1 15,000 Vidyut Jyoti

2nd 2 10,000 Vidyut Punj

3rd 5 7,500 Vidyut Kiran

Power Excel Award

Objective

To recognize excellence in discharging official duties & demonstration of NTPC

core values.

Applicability/Eligibility

All executives upto E6, excluding HODs

Criteria

Innovations and improvements in his area of work.

Contribution towards group efforts

Demonstrates Core Values at work and during interactions

Should have received at least one 'Appreciation Letter' or ManveeyataPurskar

Reward

- These awards shall be given under the name POWER EXCEL awards (Power Executives Excellence Awards )

Training in India ( upto 7 days as per choice of the executive.)


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Letter of appreciation under the signature of BUH/GM (Proforma E-1)

A cash Reward of Rs.5,000/-

PEARL Awards

(Performance Excellence Awards for Regional Leadership)

Objective

To recognize excellence in leadership & demonstration of NTPC core values .

Applicability /Eligibility

All HODs and E7 at units & Regional Headquaters and E7 & E7A at CC.

Criteria

Exhibition of Leadership qualities

Achieving Excellence in his area of responsibility

Demonstration of Core values

Implementation of Strategic initiatives

in HR, TQM, Cost control measures,

Corporate Social responsibility etc.Encouraging Creativity, innovation

Reward

The awards shall be given under the name PEARL (PerformanceExcellence Awards for Regional Leadership)

Upto 10- days training of his choice

in India & a cash reward of

Rs.10,000/-

Appreciation Letter under the signature of Concerned ED - Copy to be

place in personal file/ PAR file.


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ACE Award (Awards for Corporate Excellence)

Objective

To recognize excellence in leadership & demonstration of NTPC Core Values

Applicability/Eligibility

All Heads of Project/Stations GMs in Regions and Corporate Centre

Criteria

Strategic leadership, Innovation, creativity and Knowledge Management

Core Value And CSR.

Reward

- These awards shall be given under the name ACE Awards (Awards for Corporate Excellence)

1 from Corporate Centre

2 from all Regions/Units/Proj./Stations

- up to 07 days of Training Abroad and a cash reward of Rs.15,000/-

- -Letter of Appreciation to be presented in ECM by CMD Special functions InDelhi.

Mentor Samman

Objective

To recognize the active services of mentors in socio cultural integration of mentees withthe company s environment.

Applicability

All mentors who have been attached with current batch of ETs for mentoring.

Reward

- A letter of appreciation as per Pro forma H

- A token gift/memento of Rs.1,000/- each


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- To be awarded on 5th Sept.

Manveeyata Puraskar

Objective

To recognize good values exhibited by employees in official & social life. This shallinclude Human Values, Core Values (BCOMIT) of the Company for creating rolemodels in the company.


All employees upto E7 are eligible for this award.

CriteriaShould have exhibited an exemplary Value

Reward

Appreciation Letter

A Gift of upto Rs. 1,000/- ( based on the merit of the case)

No. of cases is left to the discretion of BUH/GM/ED at all locations

Welcome

Objective

To welcome new joinees/transfer- in s for their socialization .


All Employees

Periodicity

Within one week of the joining of an employee

Procedure

Welcome letter

Get-together for the new joinees / Transferees


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Bidding Farewell

Objective

To bid farewell to an employee on his/her Superannuation


All Employees.

Periodicity

On the day of Superannuation

Reward Procedure

- Letter from BUH/ED highlighting his/her association with Organization

- A token gift of Rs.5,000/-

- Get-together with employees of the concerned department, all HODs (HeadOf Departments) and BUH (Business Unit Heads).


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COMPANYPROFILE


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NTPC Ltd. : In nutshell

THE TOTAL POWER COMPANY

National Thermal Power Corporation Ltd., India s largest power utility, set up in 1975 withprime objective of playing a leading role in Indian power scenario. NTPC has been thepower behind INDIA`S sustainable power development since NOVEMBER 1975.Contributing 30% of the COUNTRY`S entire power generation. NTPC today lights upevery fourth bulb in the country. It s one of the largest and the most efficient power generation companies in the world.

With ambitious growth plans to become a 75,000MW power company by 2017, NTPC-the largest utility of INDIS has already diversified into hydro sector. Further initiatives for

greater organization transformation have been approved under PROJECT DISHA.

NTPC is INDIA`S largest power generation company with an installed capacity of 21,435(as March 31 st , 2008). NTPC has also diversified into Hydro power, Coal mining, Power equipment manufacturing, Power trading and Power exchange. NTPC has beentransforming into an integrated power major.

Powered by a dynamic and dedicated workforce of more than 24000, it operates bothcoal based and gas/ liquid fuel based power stations across India. Firm in itscommitment towards steering the overall power development in the country, with thrust

on environment protection, the Govt. Of India has named NTPC as one of the nine jewels or Navratna, in acknowledgment of its contribution to India s economicdevelopment.


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Vision of NTPC:

A world class integrated power major, powering Indias growth, with increasing

global presence.

Mission of NTPC:

Develop and provide reliable power, related products and services at

competitive prices, integrating multiple energy sources with innovative and eco

friendly technologies and contribute to society.

The Core Values (B-COMIT):

Business Ethics

Customer Focus

Organizational & Professional Pride

Mutual Respect and Trust

Innovation and Speed

Total quality for Excellence

Project Profile

Coal Based power stations

S. No. Place State Capacity (MW)

1. Singrauli Uttar Pradesh 2,0002. Korba Chhattisgarh 2,100

3. Ramagundam Andhra Pradesh 2,600

4. Farakka West Bengal 1,600

5. Vindhyachal Madhya Pradesh 3,260

6. Rihand Uttar Pradesh 2,000

7. Kahalgaon Bihar 1,840


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8. NTCPP Uttar Pradesh 840

9. Talcher Kaniha Orissa 3,000

10. Talcher Thermal Orissa 460

11. Unchahar Uttar Pradesh 1,050

12. Simhadri Andhra Pradesh 1,000

13. Tanda Uttar Pradesh 440

14. Badarpur Delhi 705

15. Sipat Chhattisgarh 1,000

Gas/ Liq Fuel Based power stations

16. Anta Rajasthan 413

17. Auraiya Uttar Pradesh 652

18. Kawas Gujrat 645

19. Dadri Uttar Pradesh 817

20. Jhanor Gandhar Gujrat 648

21. Rajiv Gandhi CCPPKayamkulam

Kerela 350

22. Faridabad Haryana 430

NTPC: In Depth

NTPC Limited is the largest thermal power generating company of India. A publicsector company, it was incorporated in the year 1975 to accelerate power developmentin the country as a wholly owned company of the Government of India. At present,Government of India holds 89.5% of the total equity shares of the company and FIIs,Domestic Banks, Public and others hold the balance 10.5%. Within a span of 31 years,NTPC has emerged as a truly national power company, with power generating facilitiesin all the major regions of the country. Based on 1998 data, carried out by Data monitor


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UK, NTPC is the 6th largest in terms of thermal power generation and the second mostefficient in terms of capacity utilization amongst the thermal utilities in the world.

NTPC Limited Formerly known as National Thermal Power Corporation. The Group'sprincipal activities are engineering, construction and operation of power generatingplants and providing consultancy to power utilities in India and abroad. The Groupoperates through two segments. Power Generation includes generation and sale of bulkpower to SEBs/State Utilities. Others provide consultancy, project management andsupervision, maintenance services, power trading and distribution of bulk power. TheGroup has generated 170.88 billion units of electricity in 2006

GROWTH AND DEVELOPMENT OF THE COMPANY

Over the last three decades, NTPC has spearheaded development of thermal

power generation in the Indian power sector. In this process, it has built a strongportfolio of coal and gas/liquid fuel based generation capacities. The company hasmade initial forays in the area of hydropower development and plans to have asignificant share of hydropower in its future generation portfolio. Although NTPC is alsooffering technical services, both in domestic and international markets, through itsConsultancy Wing, the generation business would continue to be the single largestrevenue generator for NTPC.

The Indian power sector is witnessing several changes in the business andregulatory environment. The legal and policy framework has changed substantially withthe enactment of the Electricity Act 2003. In the foreseeable future, India facesformidable challenges in meeting its energy needs. Recently, a draft integrated energypolicy has been issued, which addresses all aspects including energy security, access,availability, affordability, pricing, efficiency and environment. To meet the twinobjectives of ensuring availability of electricity to consumers at competitive rates, aswell as attract large private investments in the sector, a new Tariff policy has also beenissued. The power sector thus offers a mixed bag of challenges and opportunities toplayers and NTPC would continue to review its business strategy and portfolio in light of these changes

NTPC s core business is engineering, construction and operation of power generatingplants. It also provides consultancy in the area of power plant constructions and power generation to companies in India and abroad. As on date the installed capacity of NTPCis 27,904 MW through its 15 coal based (22,895 MW), 7 gas based (3,955 MW) and 4Joint Venture Projects (1,054 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV Company operates the captive power plantsof Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW). NTPC also has28.33% stake in Ratnagiri Gas & Power Private Limited (RGPPL) a joint venturecompany between NTPC, GAIL, Indian Financial Institutions and Maharashtra SEBHolding Co. Ltd. The present capacity of RGPPL is740MW.


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NTPC s share on 31 Mar 2007 in th e total installed capacity of the country was 20.18%and it contributed 28.50% of the total power generation of the country during 2006-07.

NTPC has set new benchmarks for the power industry both in the area of power plantconstruction and operations. It is providing power at the cheapest average tariff in thecountry. With its experience and expertise in the power sector, NTPC is extendingconsultancy services to various organizations in the power business.

NTPC is committed to the environment, generating power at minimal environmentalcost and preserving the ecology in the vicinity of the plants. NTPC has undertakenmassive afforestation in the vicinity of its plants. Plantations have increased forest areaand reduced barren land. The massive afforestation by NTPC in and around itsRamagundam Power station (2600 MW) has contributed reducing the temperature in

the areas by about 3c. NTPC has also taken proactive steps for ash utilization. In1991, it set up Ash Utilization Division to manage efficient use of the ash produced at itscoal stations. This quality of ash produced is ideal for use in cement, concrete, cellular concrete, building material.

A "Centre for Power Efficiency and Environment Protection (CENPEEP)" has beenestablished in NTPC with the assistance of United States Agency for InternationalDevelopment.(USAID).Cenpeep is efficiency oriented, eco-friendly and eco-nurturinginitiative - a symbol of NTPC's concern towards environmental protection and continuedcommitment to sustainable power development in India.

As a responsible corporate citizen, NTPC is making constant efforts to improve thesocio-economic status of the people affected by its projects. Through its Rehabilitationand Resettlement programmes, the company endeavors to improve the overall socio-economic status of Project Affected Persons.

NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under the 'Excellent category' (the best category) every year since the MOU system became

operative.

Recognizing its excellent performance and vast potential, Government of the India hasidentified NTPC as one of the jewels of Public Sector Maharatnam - a potential globalgiant. Inspired by its glorious past and vibrant present, NTPC is well on its way torealize its vision of being A world class integrated power major, powering India sgrowth, with increasing global presence.

Developing and operating world- class power stations is NTPC s core competence. Itsscale of operation, financial strength and large experience serve to provide anadvantage over competitors. To meet the objective of making available reliable and
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quality power at competitive prices, NTPC would continue to speedily implementprojects and introduce state-of-art technologies.

Total capacity portfolio:

India s generation capacity can be expected to grow from the current levels of about120 GW to about 225-250 GW by 2017. NTPC currently accounts for about 20% of thecountry s installed capacity and almost 60% of the total installed capacity in the Centralsector in the country. Going forward, in its target to remain the largest generating utilityof India, NTPC would endeavor to maintain or improve its share of India s generatingcapacity. Towards this end, NTPC would target to build an overall capacity portfolio of over 66,000 MW by 2017.

Fuel / Energy mix for capacity addition: Currently, coal has a dominant share in the power generation capacities in India. This isalso reflected in the high share of coal- based capacities in NTPC s current portfolio.With high uncertainties involved in Domestic gas/ LNG, both in terms of availability andprices, NTPC would continue to set up large pit-head coal based projects, including fewintegrated coal cum power projects. To reduce the dependence on fossil fuels, there isa need to push for renewable sources of power in the sector. NTPC would avail of opportunities to add hydropower to its portfolio subject to competitive tariffs. A first stepin this direction has already been taken with the investment in Koldam Hydro Power Project. NTPC would continue to closely monitor developments on nuclear front alsoand be open to setting up around 2000 MW of Nuclear power generation capacity,possibly through a Joint Venture. As a leader in power generation, NTPC would alsoconsider other energy sources such as biomass, cogeneration, fuel cells, etc for futuredevelopment thereby reducing the dependence on thermal fuels.

While a decision on the fuel/energy mix for NTPC in the future would be largelygoverned by their relative tariff-competitiveness, the fuel mix in 2017 may be differentfrom the existing portfolio, though not very significantly.

Diversification along the Value Chain:

NTPC has achieved the distinction of being the largest thermal generating company inIndia. In the past, this focus was adequate as the industry was highly regulated withlimited diversification opportunities. Over last few years, the country has been facingacute shortages, both in coal and gas, severely affecting optimum utilization of itspower stations and these shortages are likely to continue in future as well. This is inspite of the fact that India is one of the largest producers of coal in the World. Tosafeguard its competitive advantage in power generation business, NTPC has movedahead in diversifying its portfolio to emerge as an integrated power major, with


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presence across entire energy value chain. In fact, to symbolize this change, NTPC hastaken on a new identity and a new name NTPC Limited. NTPC has recently diversifiedinto coal mining business primarily to secure its fuel requirements and support itsaggressive capacity addition program. In addition, NTPC is also giving thrust on

diversification in the areas of power trading and distribution. Diversification would alsoallow NTPC to offer new growth opportunities to its employees while leveraging their skills to capitalize on new opportunities in the sector.

Establishing a Global Presence:

To become a truly global company serving global markets, it is essential for NTPC toestablish its brand equity in overseas markets. NTPC would continue to focus onoffering Engineering & Project Management Services, Operations & Maintenanceservices, and Renovation & Modernization services in the international market.

Establishing a successful services brand would be a precursor to taking higher investment decisions in different markets. Going forward, NTPC would continue toevaluate various options for strengthening its presence in global markets includingsetting up power generation capacity, acquisition of gas blocks etc.

Circa 2017: NTPCs corporate profile:

By the year 2017, NTPC would have successfully diversified its generation mix,

diversified across the power value chain and entered overseas markets. As a resultNTPC would have altered its profile significantly. Elements of the revised profile thatNTPC would seek to achieve are:

Amongst top five market capitalization in the Indian market An Indian MNC with presence in many countries Diversified utility with multiple businesses Setting benchmarks in project construction and plant availability & efficiency Preferred employer Have a strong research and technology base Loyal customer base in both bulk and retail supply

A leading corporate citizen with a keen focus on executing its social responsibility.


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OTHER AWARDS & ACCOLADES WON

Shell Helen Keller Award 2002 for promoting employment opportunities to

disabled people.

Platts Global energy Award 2002 for commitment to community development.

CORE-BCSD Corporate Social Responsibility Award 2001-02 instituted by TERI.

ICC-UNEP World Summit Business Award for Sustainable Development

Partnership.

National Safety Award 2002 instituted by the British Safety Council, to seven

NTPC stations.

Best HR Practices Award 2002 instituted by Indian Society of Training &

Development.

World HRD Congress Award instituted by World HRD Congress.

Golden Peacock National Training Award 2003 instituted by Institute of directors

to PMI.

Meritorious Productivity Award of the Government of India to 12 stations.

Prime Ministers Shram award for the 17 th year including two SHRAM RATNA.

Vishvakarma Award by Ministry of Labor, Government of India.

Climate Technology Initiative award.

MoU Excellence Award of Government of India.CII Award for Excellence in Infrastructure.

Greentech Environment Excellence Award.

Best Employer National Award for the welfare of physically challenged people.


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NTPC TOP LIST OF MOU AWARDS FOR EXCELLENCE INPERFORMANCE:

NTPC Limited has been presented Scope Meritorious Award for Best Practicesin Human Resource Management Shri presented 2004-05 for InnovativeHuman Resource Management Practices well integrated with the businessrequirements of the Company. Sontosh Mohan Dev, Hon ble Minister of HeavyIndustries and Public Enterprises to Shri T. Sankaralingam, CMD, NTPC Limitedin New Delhi, on 8th November 2006.

A mechanical engineer by profession Shri Chandan Roy is also Chairman,Ratnagiri Power Project Limited. He is also on the Board of Damoder ValleyCorporation (DVC), Northern Coal Fields Limited (NCL) and Nuclear Power

Corporation of India Limited (NPCIL).

On the occasion of Power Line magazine s Tenth Anniversary celebrations, on11th October, 2006 in New Delhi, Mr. Sushi Kumar Shinde, and Union Minister of Power presented Expert Choice Awards to honor the leading achi evers in thepower sector. NTPC was recognized as the "Best Organization in CentralSector".

NTPC

RAILWAYS

EQUIPMENT

STATE

GOVT.

COAL

SEBS

OIL

SUPPLIERS

CENTRAL

GOVT.

FUNDING

SUP

PLI

ER

STAKE HOLDERS

B

U

Y

E

R


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NTPC- HUMAN RESOURCE MANAGEMENT

NTPC HR VISION

TO ENABLE OUR PEOPLE TO BE A FAMILY OF COMMITTEDWORLD CLASS PROFESSIONALS, MAKING NTPC A LEARNING

ORGANIZATION.

Aligned to NTPC & the HR Vision

Director (HR)

NTPC

To be one of the worlds

largest & best power utilities

powering Indias growth.

HR

To enable our people

to be a family of committedworld class professionals,

making NTPC

a learning organization.

PMI Vision

To become an institute of excellence as a

global centre of education for power professionals to build

world class com etencies


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ExecutiveDirector

PowerManagement

Institute

HR PolicyDivision

HR Recruitment

EmployeeRelationWelfare

Promotion &Appraisals

EmployeeBenefit Noida Services

Group

Industrial

Engineering &

Industrial

Establishment


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DATA ANALYSIS


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The data analysis has been done question wise as well as according to the questionstatements of the questionnaire. The present study is carried out by administeringquestionnaire of 13 questions and a sample of 300 employees/respondents.

Q1. I am aware of the various monetary and non monetary reward schemes ofNTPC.

Fig 1

STRONGLY AGREE

10%

AGREE47%

NEITHERAGREENOR

DISAGREE

DISAGREE

15%

STRONGLY

DISAGREE

6%

Q1

The majority of the employeesagree that they are aware of various monetary and non monetary reward schemes of

NTPC (47% agree and 10%strongly disagree). However thereare some employees who disagree,that, they are not aware about thevarious different reward schemesof NTPC even though it has beenmore than 5yrs that it has beenintroduced.

The HR department and all the

HODs should take correctivemeasures to spread the awarenessregarding these schemes, what arethe different eligibility criteria andhow to apply for these respectiveschemes. The freshers or newemployees should be given enoughinformation during the inductionprogram itself.


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Q4. Rewards are given as per criteria

Fig 4

Q5. Favouritism prevails when it comes to giving away awards

Fig 5

STRONGLYAGREE

8%

AGREE44%

NEITHERAGREENOR

DISAGREE30%

DISAGREE12%

STRONGLYDISAGREE

6%

Q4

STRONGLY AGREE

6%AGREE

25%

NEITHERAGREENOR

DISAGREE40%

DISAGREE21%

STRONGLY

DISAGREE8%

Q5

Based on the above two questionsand pie chart

rewards n recognitions

Documents