FINAL PROJECT

On

“ Business strategies and training process in NHPC ”

Submitted towards partial fulfillment of requirements of Two Year Full Time PGDM (Equivalent to MBA)

2009-11

Supervisor/ Guide: Submitted By: Asjad Usmani Suman Jakhar Roll no: 963 Batch:2009-11

DPC INSTITUTE OF MANAGEMENT (An Educational Wing of Delhi Productivity Council)

Approved by AICTE, Ministry of HRD, Govt. of India Sector 9, Dwarka, New Delhi-110075

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Declaration

I, Suman Jakhar, Roll No: 963, student of PGDM(Equivalent to MBA) Batch (2009-11) at DPC Institute of Management Sector 9, Dwarka, New Delhi-110075 hereby declare that the project / report titled “ Business strategies and training process in NHPC ” has been completed by me independently and the concerned report has not been submitted elsewhere for any purpose.

Signature of Student

Signature of Faculty Supervisor DPC Institute of Management Signature of Director DPC Institute of Management

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ACKNOWLEDGEMENT

Undertaking any project in life proves to be a milestone in more ways than

one. Its successful completion relies on a myriad people and their priceless

help.

I am deeply indebted to all who have inspired, guided and helped me in the

successful completion of the project. I owe debt of gratitude to them, who

were so generous with their valuable time and expertise.

I also acknowledge all the respondents who helped me without hesitation in

sharing their experiences out to learn the process. Through this

acknowledgement I express my sincere gratitude towards Mr. Asjad Usmani

and the director Mr. V.K.Khurana.

I would like to thanks DPCIM, which has incorporated the Winter project

program in the curriculum which has helped me learned some variable facts.

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TABLE OF CONTENTS

CONTENTS PAGE NUMBERS

1. INTRODUCTION 1 - 34

2. REVIEW OF LITERATURE 35 – 42

3. THE COMPANY 43 – 62

4. DATA PRESENTATION & ANALYSIS 63 -67

5. FINDINGS 68-69

6. CONCLUSIONS & RECOMMENDATIONS 70 - 72

7. BIBLIOGRAPHY 73

8. APPENDICES 74

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CHAPTER 1

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INTRODUCTION

1.1 INTRODUCTION ABOUT BUSINESS STRATEGY AND TRAINING &

DEVELOPMENT

Business strategy is related to linking business with strategic management. It is a process

of relating an organization to its environment by formulation and implementation of

suitable strategy. It is a function of Human Resources of a corporation. All issues

associated with the management of resources should be derived issues. Strategically

speaking, these must flow from and be dependent upon organization’s corporate strategy.

Organizational effectiveness is achieved by ensuring a tight fit between business strategy

and HR of the organization.

Strategic business is the art and science of formulating, implementing and evaluating

cross-functional decisions that will enable an organization to achieve its objectives. It is

the process of specifying the organization's objectives, developing policies and plans to

achieve these objectives, and allocating resources to implement the policies and plans to

achieve the organization's objectives.

NHPC therefore uses business strategies which help in combining the activities of

the various functional areas of the business to achieve organizational objectives.

It is the highest level of managerial activity, usually formulated by the Board of directors

and performed by the organization's Chief Executive Officer (CEO) and executive team.

Strategic management thus provides overall direction to the enterprise.

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Business strategy is a combination of three main processes:

1. Strategy formulation

2. Strategy implementation

3. Strategy evaluation

OBJECTIVES OF THE STUDY

1. To learn classroom theories through observation and practical

implementation.

2. To identify the business strategies used by NHPC.

3. To identify the need of business strategies and content of related training

programs.

4. To find out the relation of these strategies with the business strategies of

the corporation.

5. To analyze the efficiency of these business strategies and related training

programs.

6. To assess the benefits and result of the training programs.

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METHODOLOGY

It is the method which we will be using to work on the project. It consists of a number of

steps which are to be followed to head towards the goal of achieving the objective of

project completion. The project title will be tried to understand its meaning with context

to NHPC Ltd. Then the project will be moved forward by completing various steps to

find out the results with the help of observation method and come up with a project

report. The steps which will be followed are as follows:

1. Analysis of the training and development programs and the subjects of these

programs of NHPC with the help of the corporation’s training calendar.

2. Observation method will be used to identify the business strategies which the

corporation uses in its business and the programs related to these strategies.

3. The programmes will be analyzed in detail and, and information like what are the

topics and areas that they cover, where they are conducted and for which level of

employees will be collected with the help of primary data.

4. What do these strategies mean in view of corporate business and how these are

related to NHPC? Secondary data will be collected by interacting with the

employees who are concerned with the business strategies.

5. Then finally it will be analyzed how these strategic training programs help the

employees and the corporation to achieve their goals and objectives.

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RESULTS

This project will conclude towards the analysis of business strategies used by NHPC and

how the training programs related to these strategies help the organization.

Through this project we will try to conclude:

1) What are the training strategies used by NHPC.

2) How these strategies help the organization in achieving its objectives.

3) How the training calendar is designed.

4) Which training programmes are related to these strategies?

5) What topics these programs cover.

6) Impact of these training programmes on the employees as well as the

organization.

LIMITATIONS OF THE STUDY

With the completion of this project there are certain limitations which were faced while

carrying out the project. These are as follows:-

1) As the topic of the project is a new and upcoming, the primary data available was

very less.

2) Technical programmes were difficult to understand.

3) There was no provision for even a computer and internet for the students to do

work related to the project.

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BUSINESS STRATEGIES OF NHPC

TRAINING CALENDER The Annual Training Schedule of NHPC for the year 2008-09 is published in the training

calendar of the organization. It contains diversified programmes integrated to build the

competencies of employees at work and empowering employees to excel in the area of

activities. The training calendar not only consists of training programmes and OD

interventions, planned to cater to the short term individual needs but organizational needs

as well.

TRAINING PROGRAMS IDENTIFIED AS PER BUSINESS STRATEGY The training calendar of NHPC contains information about a number of programmes

based on various categories like Self Development, Leadership Development, Strategic

Development, Organizational Development, HR Management, Technical programmes

etc.

Among these training programmes, 25 programmes have been identified as related to the

business strategy of the organization. These are the strategic programmes.

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STRATEGIC ANALYSIS OF TRAINING PROGRAMMES 1. LEADERSHIP EXCELLENCE Leadership excellence lies in understanding the significance of the interdependence

that exists between an organization and its dynamic socio-economic environment

and formulating strategies to manage the expectations of the key stakeholders

besides maintaining a competitive advantage.

PROGRAMME OBJECTIVE: Hydro-power is one of the energy sources which oscillate between aspiration and

achievements. And to acquire those achievements, it is important for the individuals

and the organization to gain better insights and develop an intuitive understanding of

evolving perspectives, worldviews, visions and purposes. For this, NHPC has

designed leadership excellence programme to help the employees for a self-

discovery in the area of leadership and providing practical tools that can make them

more competent, more articulate, more creative, more inspirational and more

credible.

PROGRAMME COVERAGE: The programme is scheduled to be held at IIM – K for the top level management of

the corporation. The programme is designed to explore leadership dimensions that

are result oriented, entrepreneurial, innovative, change and growth oriented besides

giving insightful inputs on competition, change, motivation/inspiration, pursuing

excellence, accommodating diversity, creating team spirit and coping with stress and

many other work-life issues based on a well researched content. It also aims to

provide insights, tips, tools, techniques and strategies for developing one’s own

leadership effectiveness.

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PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

The programme is a part of Leadership Development of the employees. It will help

the employees of NHPC to analyze their own performance with practical insights,

new cases and concepts and action steps so that they can develop a confident, self-

aware leadership style that is genuine and consistently influential in accordance with

their own capacities, personality, style and organization. The program helps the

managers

• To explore leadership dimensions that are responsible, responsive, result

oriented, entrepreneurial, innovative, change and growth oriented.

• To understand the art of pursuing excellence, leading change, accommodating

diversity, creating team spirit and coping with stress for increasing

performance capacity.

2. EVOLVING MANAGERS INTO LEADERS – A COMPETENCY BASED APPROACH

PROGRAMME OBJECTIVE: Developing managers to help them become effective leaders is crucial to creating a

confident culture and driving forward organizational improvement. This programme

is a part of leadership development program and is scheduled at IMT – Ghaziabad

for the middle level employees. Mapping these competencies helps the corporation

in designing development interventions to enhance competence levels in areas where

organizational competence is not currently sufficient.

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PROGRAMME COVERAGE: The programme covers topics like Managers v/s Leaders, Developing Leadership

Model, Leadership Traits, Individual Competency Assessment and Development

Plan etc.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: Leadership is not a position or designation. It is a way of thinking – a mind set.

Defining competences allows managers to grasp what is required to reach

improved levels of excellence and performance by providing a common

framework which articulates the skills, knowledge and attitudes relevant to

successful business practice.

The training programme helps in achieving an organizational excellence by

assessing the competency of executives of NHPC holding managerial positions

and helping them in developing their competencies in order to enhance their

individual and team performance to deliver excellence. The programme also helps in

improving an individual’s career prospects, as well as meeting organizational

succession planning needs.

3. MANAGING CHANGE Globalization, technological developments and liberalization have thrown open

many challenges for the organization. With such changes, it is inevitable for

organizations in any sector to move ahead, without learning to cope with it.

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PROGRAMME OBJECTIVE: To cope with a changing world, an employee must develop the capacity to

understand changes at the macro and micro level and the way the change would

affect his role, so that he could build the required competencies in a changing

environment. Training for leadership development of the employees covers all such

programs.

PROGRAMME COVERAGE: The programme covers the Concept of Change, Changing Scenario, Organization

Diagnosis, Problem Identification, Change Implementation and handling Resistance

/ Fear to change.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: NHPC uses change management strategy to overcome these problems and to fulfill

the demands. It is management's responsibility to detect trends in the

macroenvironment and microenvironment so as to identify changes and initiate

programs.

So, NHPC holds regular change management programmes, directs new and

improved policies and procedures and then implement them. The programme aims

to prepare the management and employees to accept change without pain and also

enable them to manage change in a better manner.

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4. MANAGING PERFORMANCE Performance management is the activity of tracking performance against targets and

identifying opportunities for improvement - but not just looking back at past

performance. The focus of performance management is the future - what do you

need to be able to do and how can you do things better?

PROGRAMME OBJECTIVE: Managing performance is about managing for results. Every initiative or effort of

the management in an organization is either geared towards enhancing performance

or an outcome of performance. Performance of the employees is the core area of

concern for every organization and NHPC uses this programme because the

performance of the employees constitutes the performance of the organization. PROGRAMME COVERAGE: The programme on this topic aims to develop a working understanding of the

conditions affecting organizational performance. The programme will focus on

structures, systems, and processes that impinge on performance. It is for the

leadership development of the employees. It will also cover tools and techniques

involved in establishing performance criteria and measures for assessing actual

performance.

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PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: Performance management helps the employees to focus on their goals and

objectives. NHPC trains its employees to find out their Key Result Areas (KRA) and

helps in improving their performance by comparing the desired performance with

the actual performance. Performance-based management helps the employees in

understanding:

• what they are aiming for • what they have to do to meet their objectives • how to measure progress towards the objectives • how they can detect performance problems and remedy them.

5. CORPORATE GOVERNANCE

Corporate governance is the set of processes, customs, policies, laws and institutions affecting

the way corporation is directed, administered or controlled. Corporate governance also

includes the relationships among the many stakeholders involved and the goals for which the

corporation is governed. The principal stakeholders are the shareholders, management and the

board of directors. Other stakeholders include employees, suppliers, customers, banks and

other lenders, regulators, the environment and the community at large.

PROGRAMME OBJECTIVE: It is a system of structuring, operating and controlling a company with a view to achieve long

term strategic goals to satisfy shareholders, creditors, employees, customers and suppliers,

and complying with the legal and regulatory requirements, apart from meeting environmental

and local community needs.

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The training programme is held to enable the participants understand the perpetual change in

the organisational enviornment and ways to constantly adapt to meet the expectations of

various stakeholders. This programme is mostly for the middle level management and senior

executives.

PROGRAMME COVERAGE:

The programme covers the topics like : Meaning and Characteristics of Corporate

Governance, Evolution of Corporate Governance in the Indian and Global context,

Challenges in Corporate Governance, Implementing good Corporate Governance Practices

and Processes, Maximising value for Shareholders and other stakeholders by practising good

Corporate Governance, Sustaining good Corporate Governance practices with the changing

business scenario, Aligning the values of leaders to the organisation etc.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: NHPC uses corporate governance as a strategy in their business as it ensures the

accountability of certain individuals in the organization through mechanisms that try to reduce

or eliminate the principle-agent problem. With the help of it the corporation can easily focus

on economic efficiency and shareholders welfare.

6. STRATEGIC LEADERSHIP FOR GLOBAL COMPETITIVENESS

An overall goal of improving global competitiveness is the imperative under which

managers strategically guide their organization. A global perspective consists of a global

mindset supported by appropriate skills and knowledge. Global mindset allows

meaningful global strategizing that requires managers to effectively integrate the three

global forces of - (a) global business, (b) regional/country pressures and (c) worldwide

functions.

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PROGRAMME OBJECTIVE:

There is a growing need for managers to become global leaders with a global perspective.

To make its employees global leaders and to make them work in this world of

globalization, NHPC trains its employees for strategic leadership. The programme is held

at IIM – A for the higher level managers and directors of the corporation.

PROGRAMME COVERAGE:

The programme develops an insight about the topics like understanding the financial health of

business including the emerging issues of financial reporting. Strategic Cost Analysis,

Evolving Macro Economic environment including industrial, fiscal and trade policy

initiatives/direction and their implications, functioning of financial markets and their role in

resource mobilization, Leadership, Change Management and emerging organizational

HR Challenges, Effective managerial communication and negotiation skills, Corporate

Governance, Contract Management with particular emphasis on the legal aspects thereof.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

This programme is aimed at enlightening executives with the importance of strategic

Leadership as an emergent priority to take on the present competitive business scenario.

The programme also enables the employees for developing Leadership traits essential for

facing immense challenges, incredible pressures to derive immediate results, maximum output

with least resources. The focus of the programme is on empowering the participants to be in a

position to develop strategies and implement them, keep them energized to deliver radical

performance improvement.

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7. STRATEGIC THINKING FOR BUSINESS LEADERSHIP

Strategy takes centre-stage in this new world. Designing innovative strategic moves is

very important for non-liner expansion and growth.

PROGRAMME OBJECTIVE: NHPC has develop a strategic thinking programme which is aimed at managers who are

currently in roles that require them to handle strategic issues or managers who are looking

to move into such roles.

The programme is held at IIM – K. The programme is particularly useful for senior level

managers and profit centre heads. Understanding of market rivalries, institutions and

power, leaderships and transformations is very important the corporation. It aims at

developing a strategic thinking mode and making employees understand how authority is

wielded and negotiated in multiple contexts, especially amidst great complexity in the

business scenario.

PROGRAMME COVERAGE: The programme deals with discerning the strategic significance of few contemporary

developments such outsourced models of business, vigorous use of informatics, de-

layering of organizations and so on.

The programme covers the topics viz. Strategic Thinking: Simulating wars, Institutions

and Power, understanding competition, New marketing approaches: Customization,

individuated business solutions and the new consumer sovereignty, Electronic

marketplaces, auctions, intermediation, Property rights and strategies in knowledge

business.

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PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: This programme will help NHPC to meet the future demands of electricity power in India

as it is designed to help leaders and individual contributors find the balance between

meeting today's expectations and requirements, while keeping an eye on future

opportunities, issues, and concerns that may affect business results tomorrow. The

programme emphasizes on looking at issues from a strategic perspective.

CORPORATE RESURGENCE AND GROWTH

PROGRAMME OBJECTIVE: The programme is aimed at enabling the participant discerning significant external

changes and translating those insights into strategies for comprehensive organizational

renewal so as to forge a competitive lead. PROGRAMME COVERAGE: The programme broadly covers the topics like Current global and Indian business

scenario, New trends in and sources of global competitiveness, Strategic options and

choices in the emerging business scenario, Reinventions: Doubts and Dilemmas,

Corporate entrepreneurship: Managing culture and processes, Leadership for corporate

entrepreneurship and reinvention, Organizational learning and knowledge management

and Harnessing intellectual property for competitive advantage etc.

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PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY The accelerating pace of globalization and emerging identity of the country as a

significant economic power are opening unprecedented managerial opportunities and

challenges for Indian organizations. To keep pace with today’s globalize world, NHPC

has developed Corporate Resurgence and Growth programme which is to be held at IIM –

A. This program is a part of training for strategic development of the employees.

9. MANAGING CREATIVITY AND INNOVATION PROGRAMME OBJECTIVE: The programme is aimed at developing a critical appreciation of concepts related to

creativity and management of creativity and innovation, assessing own creative potential,

and developing a personal agenda for overcoming these blocks.

PROGRAMME COVERAGE: The programme deals with developing an appreciation among the participants about the

organizational context of creativity and innovation so that they can work towards making

the organization into creative workplaces which come out with innovation on a sustained

basis. The programme will cover topics like creative personality, creative process, creative

problem solving techniques, and creativity in the organizational context.

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PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

Creativity and innovation are very important for a corporation like NHPC, because there

is a need for coming up with new projects and solve the problems prevailing in the

existing projects, if any. For this, NHPC has scheduled a programme which is a part of

strategic development for its middle level as well as top level employees at IIM – K.

10. STRATEGIC MANAGEMENT Strategic management is the art and science of formulating, implementing and evaluating

cross-functional decisions that will enable an organization to achieve its objectives.

It is an ongoing process that assesses the business and the industries in which the

company is involved; assesses its competitors and sets goals and strategies to meet all

existing and potential competitors; and then reassesses each strategy regularly to

determine how it has been implemented and whether it has succeeded or needs

replacement by a new strategy to meet changed circumstances, new technology, new

competitors, a new economic environment., or a new social, financial, or political

environment.

PROGRAMME OBJECTIVE: It is aimed to provide overall direction to the enterprise. Strategic management will help

NHPC in combining the activities of the various functional areas of the business to

achieve organizational objectives.

PROGRAMME COVERAGE: The programme is designed to clarify why individuals need to develop strategic thinking

skills, map out a personal strategic initiative that will add value and derive results,

generate interest in and commitment to living and working more strategically prepare to

face uncertainty and manage change better, setting financial and strategic objectives

implementing and executing strategy , eveluating and correcting.

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PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: Strategic management has helped NHPC in:

• specifying the organization's objectives,

• developing policies and plans to achieve these objectives, and

• allocating resources to implement the policies and plans to achieve the

organization's objectives.

11. CORPORATE VISION AND MISSION The vision and mission statements are the touchstone for every activity / project NHPC

undertakes right from planning to implementation and goes beyond with the continous

performance evaluation. These two statements are important guidelines for the concrete

identification of future plans and procedures. PROGRAMME OBJECTIVE: The programme is designed for the lower level employees of the corporation to make

them aware of the mission and vision of the company. It deals with the organizational

development. Once the vision and mission are written and conveyed, the rest of the

business activities certainlyhave a direction and guidelines to move ahead.

Vision of NHPC: A world class, diversified & transnational organization for sustainable

development of hydro power and water resources with strong environment conscience.

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Mission of NHPC:

• To achieve international standards of excellence in all aspects of hydro power and

diversified business.

• To execute and operate projects in a cost effective, environment friendly and

socio-economically responsive manner.

• To foster competent trained and multi-disciplinary human capital.

• To continually develop state-of-the-art technologies thru innovative R&D and

adopt best practices.

• To adopt the best practices of corporate governance and institutionalize value

based management for a strong corporate identity.

• To maximize creation of wealth through generation of internal funds and effective

management of resources.

PROGRAMME COVERAGE: The programme aims to make participants well versed with organizational Mission and

Vision so as to institutionalize the concept of Mission /Vision statements in their

performance. The programme also deals with the concept of Mission and Vision, crafting

Mission/Vision Statement Purpose etc.

12. DEVELOPING POSITIVE WORK CULTURE PROGRAMME OBJECTIVE: Work culture isn’t something one can define. It is intangible: a state of mind, a feeling, a

collective consciousness that's infused in a business and its employees. NHPC conducts

various programmes for its employees to understand and develop a positive work culture.

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PROGRAMME COVERAGE: Organizational development programmes are very important. This programme aims at

developing awareness amongst the employees with the key factors influencing work

culture in the organization and to develop skills and values for developing work culture.

The programme also includes the analysis of relationship between work culture and

performance of department/organization. PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: The employees of a company are its greatest assets, and when business experiences a

growth surge, a united front of employees is needed that supports your company's efforts

in mind, body and spirit. The programme helps the employees in understanding:

• Work Related Behavior and Components of Work Culture,

• Tools for Developing Work Culture,

• Leadership and Team Building Skills,

• Work Culture and Higher performance,

• Managerial effectiveness and Developing Positive Work Culture not only at

Departmental level but at ogranizational level also.

13.BUSINESS PROCESS RE-ENGINEERING Reengineering is radical redesign of an organization's processes especially its business

processes. Rather than organizing a firm into functional specialties (like production,

accounting, marketing, etc.) and looking at the tasks that each function performs, we

should, according to the reengineering theory, be looking at complete processes from

materials acquisition, to production, to marketing and distribution. The firm should be re-

engineered into a series of processes.

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PROGRAMME OBJECTIVE: NHPC has initiated the Business Process Re-engineering exercise to study the various

processes operating in the corporation and redefine them to improve the efficiency either

by suitably modifying them with an ultimate aim of adding value to each and every

activity /process. It is a part of organizational training programme. The programme is

aimed at developing an orientation and awareness about the BPR exercise so as to achieve

better results and make the BPR successful.

PROGRAMME COVERAGE: The orientation would cover Business Process Re-engineering Methodology, business

modeling and analysis techniques through the use of practical exercises and detailed case

studies in addition to lectures. Business Process Re-engineering Methodology Overview,

Assessment Phase, Re-engineering phase, change and implementation phase,

methodology and techniques necessary to implement a business re-engineering project.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: Business process reengineering (BPR) is a management approach aiming at improvements

by means of elevating efficiency and effectiveness of the processes that exist within and

across organizations. The key to BPR is for organizations to look at their business

processes from a "clean slate" perspective and determine how they can best construct

these processes to improve how they conduct business. NHPC has been able to redesign

its processes with the help of ERNST & YOUNG consultancy.

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14. PROJECT MANAGEMENT WITH EMPHASIS UPON INVESTIGATIONAN AND IMPLEMENTATION PLANNING PROGRAMME OBJECTIVE: For project management, planning and implementation is a difficult and most important

task, NHPC conducts this programme to make its employees understand the projects. It is

a part of cross-functional development of the organization. It is for lower level and middle

level employees.

PROGRAMME COVERAGE: This programme will cover the topics like Types of Investigation (Desk study, Field study

), Scope of Investigations, Hydrology investigation, Topography investigation, Geological

investigation, Constructional Material investigation, Enviornmental investigation, Power

Potential Studies , Technical investigation, Preliminary investigation, Detailed

investigations, Nature of investigation, Techniques applied, Time schedule, Financial

Implementation, Stages of Investigation, Feasibility Stage, DPR Stage, clearences,

Evaluation and Appraisal stage.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: Hydro power project management is complex task and becoming increasingly challenging

in the present competitive enviornment. It requires critical understanding of stages

involved in investigation of a project and planning for implementation. For this the

corporation conduts a programme on project planning and implementation.

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15. R &R POLICY AND CONCERNED ISSUES PROGRAMME OBJECTIVE: NHPC makes every effort towards socio-economic upliftment of the affected people

thereby improving their quality of life. The corporation develops programs related to

Resettlement & Rehabilitation which helps in understanding the problems faced by people

who are displaced from the area of project and how to solve these problems.

The basic law which has guided the Resettlement & Rehabilitation (R&R) of the

displaced people has been the Land Acquisition Act of 1894 whereby the Government is

empowered to acquire any land for “public purpose” and to pay cash compensation. As a

part of environmental clearance process, along with the EIA & EMP reports, Resettlement

and Rehabilitation (R&R) package for Project Affected Families (PAFs) is also assessed

and approved by the Expert Appraisal Committee (EAC) of Ministry of Environment &

Forests (MOEF).

PROGRAMME COVERAGE: The programme deliberates detailed discussions on Resettlement & Rehabiliation Policy

of NHPC. It also discusses the methods and techniques for undertaking the surveys in the

Project area to know the socio-economic aspects, ethno-cultural and religious beliefs of

PAP.

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PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: In the rapid pursuit for hydro development, the biggest challenge is to safeguard the

interests of Project Affected Persons (PAPs). Though NHPC has been putting sincere and

conscious efforts in his regard but it is the area where always improvements can be made

with the changing socio-cultural norms, priorities of the society, religious values etc. It is

for the cross-functional development of the organization.

16. MANAGING HUMAN RELATIONS IN ORGANIZATION PROGRAMME OBJECTIVE: Human Behavior is very unpredictable and for the effective and efficient working of a

company, the management of human relations is very important. The corporation has

developed a programme to improve the personality and skills of its employees. The

programme provides a thorough understanding of the various aspects of human behavior.

The programme also highlights the techniques for building organization through the

process of people development.

PROGRAMME COVERAGE: It deals with interpersonal skills, Relationship Building, Personality assessment,

Personality type, Transactional Analysis, maintaining sound industrial relation by

trengthening interpersonal relationships amongst the employees etc.

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17. STRATEGIC HUMAN RESOURCE MANAGEMENT PROGRAMME OBJECTIVE: Strategic Human Resource Management (HRM) is a process of linking HRM with corporate

strategic management. Corporate strategic management is a process of relating an

organization to its environment by formulation and implementation of suitable strategy. It is a

functional development program. It is important for NHPC to use strategic HRM in its

business so as to gain the skills and abilities and train its employees to attain its goals and

objectives.

PROGRAMME COVERAGE: The programme will cover the topics like aligning HR strategies with organizations vision

and objectives, strategic HRM, emerging challenges HR planning with emphasis upon

Training and Development, performance management leveraging human potential ,

competency management, management of change and case studies.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

This programme is developed for lower level and middle level employees. The programme is

aimed at enabling the participants in acquiring/developing skills abilities needed to meet the

requirements as per organizational objectives by adapting appropriate HR strategies. The

programme would also help in developing advanced capabilities among HR

professionals so as to make them enable to effectively execute leadership roles in NHPC

and synergize HR strategy with overall Business Strategy.

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18. EFFECTIVE HR TRAINING AND DEVELOPMENT PROGRAMME OBJECTIVE: Training is a process of learning a programmed behavior and development is the overall

development of the competency of managerial personnel in the light of present as well as

future requirement. This programme is initiated by the corporation as it will help in:

• Increase in efficiency

• Increase in morale of employees

• Better human relations

• Reduced supervision

• Increased organizational viability and flexibility

PROGRAMME COVERAGE: The programme covers topics related to importance of training and development, steps

involved in training and development process, training need identification and analysis,

design and conductance of training program, training evaluation methods, impact assessment

exercise etc.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: NHPC needs training and development for its employees to maintain the match between

employee’s capability and their job requirements in terms of knowledge, skills and attitudes.

A programme is developed to find out the needs of training and development of the

employees. The programme aims to upgrade the training capabilities of the participants

through exposure to new and emerging concepts, techniques and methodologies of Human

Resource Training and Development.

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19. CERC NORMS / GRID CODE FOR THE OPERATION OF HYDRO PLANT PROGRAMME OBJECTIVE: Reforms in Indian power sector and consequent competition have changed the tariff structure.

CERC stipulates some norms for disciplining the grid users and knowledge of CERC norms is

essential for increasing revenue through Electricity generation. A technical programme is

conducted by NHPC to design a blueprint for power generation and its further supply. This

program would provide an overall perspective of the electricity tariff structure and market

mechanism, the monetary mechanism for disciplined generation etc. Methodology includes

class room lectures, case studies, Question-answer sessions, pre-training and post-training

evaluation.

PROGRAMME COVERAGE: The programme covers the topics like introduction of CERC regulations, Electricity Act

2003, concept of availability based tariff for all type of Hydro Power Stations, tariff

regulations, tariff fixation as per the norms of CERC, procedure for making/filling

petition in CERC, terminologies used for making petition, commercial aspects for the

operation of hydro plants, role of other agencies in commercial aspects for the operation of

hydro plants etc.

20. PROJECT MANAGEMENT FOR RIVER VALLEY PROJECTS

Management of river valley concept is a new concept that one organization will

manage entire projects in river valley.

23

PROGRAMME OBJECTIVE: Project management programme is a technical program and is very important for NHPC, as

the organization has to take care of a number of projects or all projects in a river valley at

different geographical areas.

It is a very challenging task as the managers need to be versatile so that they are able to

understand the project properly and work collectively to achieve the goals and objectives of

the organization.

NHPC has developed this programme on project management for its engineers and middle

level employees. It helps them in understanding the various issues related with the projects

and solve them with the help of new tools and techniques.

PROGRAMME COVERAGE: This programme enables participants to understand the different aspects involved in

management of river valley projects in different geographic entities. The programme will also

enlighten the participants with the infrastructure and logistics requirements for new projects

considering environmental, financial, contractual, construction, technological and geological

aspects.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: The project is linked with NHPC strategy in terms of its expansion through understanding

new projects. Program is specifically aimed at developing an understanding about the

difference between a normal HE project and a River Valley Project. Conductance of this

programme / inclusion of the programme in the training calendar exemplify NHPC’s

commitment for developing an aptitude amongst the employees before taking new initiative.

Clear-cut understanding of a river valley project eases out the process of putting up DPR as

per the requirements and thus results into effective and timely execution of the project.

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21. MEGA POWER POLICY PROGRAMME OBJECTIVE: Central Government extends various incentives to Mega Power Projects. This program aims

to update knowledge of special benefits in taxation, import and export duties for mega

projects.

PROGRAMME COVERAGE: The programme includes the topics like tax benefit extended to Mega Power Plants,

applicability of import & export duties, sales tax, applicability of service tax and entry tax.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

The programme is a newly identified programme keeping in view the future strategy of

NHPC and upcoming challenges due to changes in the government plans and procedures. The

programme is tailormade and aimed at understanding the incentives available to Mega Power

Project. In future, if NHPC plans to go for some mega power project then the understanding

developed through this programme would play a vital role.

The programme exemplifies the mitigate planning or long term planning of NHPC

management keeping in view the market trends and developing the competencies of the

employees accordingly.

22. DEEMED EXPORT BENEFIT IN CONTEXT OF HYDRO POWER PROJECT AND TAXATION Globalization and liberalization has opened up the hydroelectric power industry also. Since

hydro power projects are situated all over the world, new tools and techniques are being used.

Now agencies involved and equipments available are from all over the world.

25

PROGRAMME OBJECTIVE: To deal with global players to the benefit of organization is very important to know the rules

related to taxation. For this NHPC develops this technical programme which helps in solving

the financial matters and dealings with global players.

PROGRAMME COVERAGE: The programme includes topics like applicability of import and export duties to hydro power

projects (except mega projects), applicability of sales tax, applicability of service tax etc.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

NHPC has been importing the equipments / technology from the equipment manufacturing

companies located in foreign countries so as to utilize best available technology in the global

market for generation of power and thus to meet the peeping power demand to the maximum

possible extent. The important issue involved in this process is of taxation.

Presently for understanding the involved technical problems NHPC used to take the services

of some consultants which on the one side calls for too much expenditure and on the other

side results into delay in the process.

The programme is a newly taken initiative as part of the business strategy which is aimed at

growing its own employees with proper training and thus converting them into an asset for the

corporation. Through this one time expenditure, a lot of expenditure can be saved and it will

also result into fastening the process.

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23. INDUCTION-CUM ORIENTATION PROGRAMME Induction training is more than the skills training, different from regular training. Induction is

a technique by which a new employee is rehabilitated into the changed surroundings and

introduced to the practices, policies, and purposes of the organization.

PROGRAMME OBJECTIVE: An induction cum orientation programme is held regularly for newly recruited employees in

the organization. The programme is designed to address questions coming into the minds of

newly recruited employees. During the program, participants are exposed to the key

functions, work-culture, mission, goals and objectives of the corporation, roles and

responsibilities, facilities in NHPC.

PROGRAMME COVERAGE: Participants are imparted with training on soft skills development, wellness issues, human

values, health issues, emerging concepts in present business scenario etc. Participants are also

provided with exclusive training for two weeks on various subjects pertaining to their

respective discipline. With a view to enable the participants in acquiring varied learning

experience about the project features, their operation and work life, participants are taken to

one or two power station/project of NHPC.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY:

Induction training is absolutely vital for newly recruited employees. Good induction training

ensures quick adjustment with the new working atmosphere and acceptance to a productive

role. Newly recruited employees also need to understand the organization’s mission, goals,

values, philosophy and of course the job responsibilities they are required to perform.

27

24. SKILLING AND MULTI SKILLING TRAINING PROGRAMME OBJECTIVE: The programme aims at providing skills and training for the workmen in the unskilled cadre

with an aim of effective utilization of existing manpower. The training is to be conducted at

Industrial Training Institute (ITI), Patiala and Nangal as part of MOU signed between NHPC

and Deptt. of Technical Education & Industrial Training, Govt. of Punjab for providing

Skilling/Multi skilling Training for NHPC Employees.

25. ERP AWARENESS CUM ORIENTATION PROGRAM Enterprise resource planning (ERP) systems that attempt to integrate several data sources and

processes of an organization into a unified system. A typical ERP system will use multiple

components of computer software and hardware to achieve the integration. A key ingredient

of most ERP systems is the use of a unified database to store data for the various system

modules.

PROGRAMME OBJECTIVE:

Enterprise Resource Planning (ERP) has become more or less an industrial standard in NHPC.

This program is related with information technology. It helps in reducing costs and

increasing productivity. Given the dynamics and complexity of environment, a system is

needed that is capable of not only efficiently providing information for decision making but

also effectively integrating all systems in the organization. The features of ERP like

accommodating variety, integrated management information, supply chain management and

resource management has helped NHPC in:

• Increase in productivity • Reduced quality costs • Improved resource utilization • Improved information accuracy

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PROGRAMME COVERAGE: The programme is meant to cover the basics of ERP, ERP benefits and reality check, ERP

lifecycle, possible causes of failure, change management, ERP in NHPC.

PROGRAMME ANALYSIS IN VIEW OF BUSINESS STRATEGY: Project Kiran - the ambitious ERP initiative of NHPC is being implemented in line with the

best practices in the industry. ERP, contrary to the popular belief of being an IT- initiative, is

actually an organization wide initiative, which depends upon the active participation of all the

major business functions of a company.

Training is a process of learning a sequence of programmed behavior. It is concerned with

imparting and developing specific skills for a particular purpose. Development refers to the

nature and direction of change induced in employees particularly managerial personnel.

There are many different training and development methods. On-the-job training, informal

training, classroom training, internal training courses, external training courses, on-the-job

coaching, life-coaching, mentoring, training assignments and tasks, skills training, product

training, technical training, behavioral development training, role playing and role-play

games and exercises, attitudinal training and development, accredited training and learning,

distance learning - all part of the training menu, available to use and apply according to

individual training needs and organizational training needs.

Designing a training and development programme involves a sequence of steps that can be

grouped into five phases: needs assessment, instructional objectives, design, implementation

and evaluation.

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To be effective and efficient, all training programmes must start with a needs assessment.

Long before any actual training occurs, the training manager needs to determine the who,

what, when, where, why and how of training. For this, the training manager analyzes as much

information as possible about the following:

Organization and its goals and objectives.

Jobs and related tasks that need to be learned.

Competencies and skills that are needed to perform the job.

Individuals who are to be trained.

Training Process Ideas and Outline Process

1. Assess and agree training needs

2. Create training or development specification

3. Consider learning styles and personality

4. Plan training and evaluation

5. Design materials, methods and deliver training

Conduct some sort of training needs analysis. This commonly happens in the appraisal process. Involve the people in identifying and agreeing relevant

Having identified what you want to train and develop in people, you must break down the training or learning requirement into manageable elements. Attach

People's learning styles greatly affect what type of training they will find easiest and most effective. Look also at personality types. Remember you are dealing with

Consider evaluation training effectiveness, which includes before-and-after measurements. The Kirkpatrick model especially helps you to structure

Consider modern innovative methods - see the Businessballs Space for lots of providers and ideas. Presentation is an important aspect to delivery.

30

aligned training. Consider organizational values and aspects of integrity and ethics, and spirituality, love and compassion at work as well as skills. Look also at your recruitment processes - there is no point training people if they are not the right people to begin with. Why people leave also helps identify development needs.

standards or measures or parameters to each element. The 360 degree process and template and the simple training planner (also in pdf format) are useful tools. Revisit the 'skill-sets' and training needs analysis tools - they can help organize and training elements assessment on a large scale.

people, not objects. People have feelings as well as skills and knowledge. The Erikson model is wonderful for understanding more about this. So is the Johari Window model. Consider the team and the group. Adair's theory helps. So does the Tuckman model.

training design. Consider Bloom's theory too, so that you can understand what sort of development you are actually addressing. Consider team activities and exercises. See the self-study program design tips below - the internet offers more opportunities than ever.

See also running meetings and workshops. Good writing techinues help with the design of materials. So do the principles of advertising - it's all about meaningful communication. There is a useful training providers selection template on the sales training page, which can be adapted for all sorts of providers and services.

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Need Assessment

The first step in designing a training and development programme is to conduct a

need assessment. The assessment begins with a "need" which can be identified in

several ways but is generally described as a gap between what is currently in place

and what is needed, now and in the future. Gaps can include

discrepancies/differences between:

• What the organization expects to happen and what actually happens.

• Current and desired job performance.

• Existing and desired competencies and skills.

Need assessment can also be used to assist with:

• Competencies and performance of work teams.

• Problem solving or productivity issues.

• The need to prepare for and respond to future changes in the organization or job duties.

Once the needs assessment is completed and training objectives are clearly

identified, the design phase of the training and development process is initiated:

• Select the internal or external person or resource to design and develop the

training.

• Select and design the program content.

• Select the techniques used to facilitate learning (lecture, role play,

simulation, etc.).

• Select the appropriate setting (on the job, classroom, etc.).

• Select the materials to be used in delivering the training (work books, videos,

etc.).

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• Identify and train instructors (if internal)

After completing the design phase, the training is ready for implementation:

• Schedule classes, facilities and participants.

• Schedule instructors to teach.

• Prepare materials and deliver them to scheduled locations.

• Conduct the training.

The final phase in the training and development programme is evaluation of the

program to determine whether the training objectives were met. The evaluation

process includes determining participant reaction to the training programme, how

much participants learned and how well the participants transfer the training back on

the job. The information gathered from the training evaluation is then included in the

next cycle of training needs assessment. It is important to note that the training needs

assessment, training objectives, design, and implementation and evaluation process

is a continual process for the organization.

OBJECTIVES OF THE STUDY

For the partial fulfillment of the degree of MBA.

To learn classroom theories through observation and practical

implementation.

To develop a practical understanding about Training and

Development Activities.

To identify the business strategies used by NHPC.

To identify the Training and other HRD Interventions for

considering business strategies of NHPC.

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To find out the relation of these Training Interventions with the

business strategies of the corporation.

To analyze the efficiency of these training programmes in view of

the Business Strategy of NHPC.

To assess the benefits and result of the training programs.

For detailed learning about the topic.

METHODOLOGY

It is the method which we will be using to work on the project. It consists of a

number of steps which are to be followed to head towards the goal of achieving the

objective of project completion.

The project title will be tried to understand its meaning with context to NHPC Ltd.

Then the project will be moved forward by completing various steps to find out the

results with the help of observation method and come up with a project report. The

steps which will be followed are as follows:

Analysis of the training and development programs and the subjects

of these programs of NHPC with the help of the corporation’s

training calendar.

Observation method will be used to identify the business strategies

which the corporation uses in its business and the programs related

to these strategies.

The programmes will be analyzed in detail and, and information like

what are the topics and areas that they cover, where they are

conducted and for which level of employees will be collected with

the help of primary data.

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What do these strategies mean in view of corporate business and how

these are related to NHPC? Secondary data will be collected by

interacting with the employees who are concerned with the business

strategies.

Then finally it will be analyzed how these strategic training programs

help the employees and the corporation to achieve their goals and

objectives.

RESULTS

This project will conclude towards the analysis of business strategies used by NHPC

and how the training programs related to these strategies help the organization.

Through this project we will try to conclude:

What are the training strategies used by NHPC.

How these strategies help the organization in achieving its objectives.

How the training calendar is designed.

Which training programmes are related to these strategies?

What topics these programs cover.

Impact of these training programmes on the employees as well as the

organization.

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CHAPTER 2

36

CRITICAL REVIEW OF LITERATURE

2.1 TNA AND T&D PROCESS IN NHPC

TNA AND FINALISING OF TRAINING CALENDER

The training need assessment is a critical activity for the T&D department of NHPC

as according to these needs only, training calendar is developed. The need for

training and development arises to maintain the match between employee’s

capability and their job requirements and organizational goals and objectives.

Designing and finalizing the training calendar addresses the following questions and

issues:

• Are all the gaps between employees and job requirements to be filled

through T&D programmes?

• Should T&D needs assessment cover all employees at all levels or should it

be restricted to few groups of employees?

• Should T&D need assessment take only present requirements or future

requirements too?

• What model of T&D needs assessment should be applied?

• From where and how relevant information will be collected.

• Who will be responsible for collecting information, analyzing it and

reporting its results?

For finding out solution to all such issues, the T&D department of NHPC works

through a number of steps. These steps also help in the identification of training

37

needs because it provides the basis on which all other training activities can be

considered and to differentiate between the need for training and organizational

issues and bring about a match between individual aspirations and organizational

goals. These steps are:

Individual Training Needs Analysis:

It analyzes how well the individual employee is doing the job and determines which

employees need training and of what kind. The focus is on the individual employee,

his abilities, his skills, and the inputs required for job performance, or individual

growth and development in terms of career planning. Major sources of information

for individual analysis are: performance evolution, performance problems,

observation at the workplace, interviews with his superiors and peers, personal

records, production records, questionnaires, attitude survey, checklist etc.

Business Plan of NHPC:

Assessing the business plan looks at the effectiveness of the organization and

determines where training is needed and under what conditions it will be conducted.

It involves a detailed analysis of the organization structure, objectives, HR and

future plans.

The starting point of assessing the business plan is the identification of the long term

objectives and defining the operational objectives of the organization. With the help

of business plan, the HR manager can anticipate if there are any training inputs that

can help in achieving organizational objectives.

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Such information can be collected from: organizational goals and objectives,

mission statements, strategic plans, staffing inventory, succession planning, long and

short term staffing needs, skills inventory, analysis of efficiency indices, changes in

equipment, technology or automation, annual report, plans for reorganization or job

restructuring, planning systems etc.

Recommendation of HOD’s:

Before finalizing anything regarding the T&D programme, it is very important to

show the plans to the head of the department. Their recommendation and

suggestions are necessary, as HOD’s are more experienced people and know the

goals and objectives of the organization better. They tell about the alterations to be

made, if any and how to plan out the training schedule.

Technical Upgradation:

For the attainment of the challenging goals and objectives advancements and

upgradation in the training programmes is necessary. In this world of changes and

transition, it is important that new tools and techniques are used in the training

process so as to make the employees learn and understand better.

The trainees as well as the trainers must become more dedicated to the training

process. The trainer’s ability to teach must be regularly assessed. By making trainees

more focused on their learning, they will be better able to integrate technological

improvements into their procedures in the future. The HR manager decides what

should be the tools and techniques to be used for training like classroom learning, on

the job training, simulation techniques, lectures, role play etc.

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Organizational Development Intervention:

Organization Development is a process decision which NHPC makes to actively

give shape and direction to the organization. In this the managers establishes

objective criteria for the outputs of the organization's goal-setting processes. Then

they hold people accountable not only for stating goals against those criteria but also

for producing the desired results.

This is actually a set of interventions that managers plan with in order to

"acculturate" everyone in the organization into an agreed-upon vision, mission,

purpose, and values. The interventions might include training, goal setting,

organizational survey-feedback, communications planning, etc. It is done by

developing reliable, valid questionnaires, collecting data from all personnel,

analyzing it for trends, and feeding the results back to everyone for action planning.

Career Development Initiative:

Career Development and Training are two related processes that increase the

capacity of employees to contribute to the organization’s mission. The challenge is

to continually find ways to invest in the development of the employees while

balancing the requirements of current work.

Career development is a part of the training process by which employees

strategically explore, plan, and create their future at work by designing a personal

learning plan to achieve their potential and fulfill the organization’s mission

requirements. It also helps in sustaining a vital and effective workforce through

strategic succession planning. Career Development involves continual learning,

seeking opportunities, taking risks, and finding ways to contribute to the

organization in a productive and motivated manner which helps in completing the

main motive of training in NHPC.

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Following all such steps, the need assessment for training is completed by the

manager. The results of this needs assessment allows the training manager of NHPC

to set the training objectives by answering two very basic questions: who, if anyone,

needs training and what training is needed. Once the needs assessment is completed

and training objectives are clearly identified, the design phase of the training and

development process is initiated:

• Select the internal or external person or resource to design and develop the

training.

• Select and design the program content.

• Select the techniques used to facilitate learning (lecture, role play,

simulation, etc.).

• Select the appropriate setting (on the job, classroom, etc.).

• Select the materials to be used in delivering the training (work books, videos,

etc.).

• Identify and train instructors (if internal).

After completing the design phase, the training calendar is ready and the training is

ready for implementation:

• Schedule classes, facilities and participants.

• Schedule instructors to teach.

• Prepare materials and deliver them to scheduled locations.

• Conduct the training.

41

TRAINING AND DEVELOPMENT IN NHPC

NHPC strongly believes that the very essence of the success and excellence for an

organization lies in its Human Resources. To sustain and nourish the employee’s

potential in a continual manner Training has been viewed as a very crucial and most

important instrument so as to transform them as an asset for the corporation. NHPC

is investing heavily in fostering and developing internal talent through multi-

pronged Leadership Development Programmes.

The NHPC training and HRD policy, formulated in line with the National Training

Policy for Power Sector is implemented across NHPC. Strategic alliance has been

established with leading educational institutions of the country of offering latest and

the best know-how education in the field of management and engineering like IIM-

Ahemdabad, IIM-Lucknow, IIM-Kolkata, ASCI-Hyedrabad, IMT-Ghaziabad,

NIFM-Faridabad, AIMA, MDI-Gurgaon, ESCI-Hyedrabad, IIT-Roorkee, IIT-Delhi

etc.

Interface with market leaders on the prevailing trends and upcoming concepts in

power sector has been established with ABB, AREVA (T&D), ALSTOM, VA,

Tech, BHEL, Siemens etc. with an aim of effective utilization of existing manpower

in workmen cadre skilling / multi skilling training in various trades has been planned

and initiated in coordination with Deptt. Of Technical Education & Industrial

Training, Govt. of Punjab.

Organization wide climate survey has been carried out to assess, analyze and

evaluate the existing policies and procedures of the corporation in line with the

expectations and aspirations of the employees at all levels posted across NHPC. The

survey report has been submitted and based upon the recommendations made in the

report, training and organizational development programmes have been identified

and incorporated in the Training Calendar for the year 2008-09.

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The competency mapping exercise has been completed for ED’s and GM’s in view

of the identified organizational competencies as per the future plans of NHPC,

present business scenario, and competition in power sector. Competency

Development Plan has been worked out. Based upon the competency development

plan suggested by the consultants, ED’s and GM’s are being nominated in the

training programs accordingly. In the second phase the complete plan has been lined

up for initiating the Competency Mapping Exercise for the executives in the training

calendar for the year 2008-09.

Employees are being regularly nominated in different programs conducted in

different parts of India as well as in foreign countries with a view to develop their

aptitude and skills in global perspective. Besides this employees are also nominated

to attend the training programs conducted in India and abroad under Transfer of

Technology (TOT) agreement with the Equipment Manufacturing Companies

(EMC).

Employees have been imparted cross functional training for developing a better

understanding of the functioning of other departments so that improved line of

coordination among different departments may be established and multi skilled task

force is developed. Programs like HR for line managers, Finance for non finance,

Technical Appreciation program for Hr and Finance executives Management

Development program to various levels of executives of all disciplines bear

testimony of this fact.

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CHAPTER 3

44

THE COMPANY

3.1 BRIEF HISTORY ABOUT “ NHPC ”

NHPC Limited (Formerly known as National Hydroelectric Power

Corporation Ltd.), A Govt. of India Enterprise, was incorporated in the year 1975

with an authorized capital of Rs. 2000 million and with an objective to plan,

promote and organize an integrated and efficient development of hydroelectric

power in all aspects. Later on NHPC Limited expanded its objects to include other

sources of energy like Geothermal, Tidal, and Wind etc.

At present, NHPC Limited is a schedule 'A' Enterprise of the Govt. of India with

an authorized share capital of Rs. 1,50,000 Million . With an investment base of

over Rs. 2, 54,000 Million Approx., NHPC Limited is among the TOP TEN

companies in the country in terms of investment.

Initially, on incorporation, NHPC Limited took over the execution of Salal Stage-I,

Bairasiul and Loktak Hydro-electric Projects from Central Hydroelectric Project

Construction and Control Board. Since then, it has executed 14 projects with an

installed capacity of 5175 MW on ownership basis including projects taken up in

joint venture. NHPC Limited has also executed 5 projects with an installed capacity

of 89.35 MW on turnkey basis. Two of these projects have been commissioned in

neighboring countries i.e. Nepal and Bhutan.

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CORPORATE VISION

A world class, diversified & transnational organization for sustainable development

of hydro power and water resources with strong environment conscience.

MISSION

To achieve international standards of excellence in all aspects of hydropower

and diversified business.

To execute and operate projects in a cost effective, environment friendly and

socio-economically responsive manner.

To foster competent trained and multi-disciplinary human capital.

To continually develop state-of-the-art technologies thru innovative R&D

and adopt best practices.

To adopt the best practices of corporate governance and institutionalize value

based management for a strong corporate identity.

To maximize creation of wealth through generation of internal funds and

effective management of resources.

46

OBJECTIVES

Development of vast hydro potential at faster pace and optimum cost

eliminating time and cost over-run.

Completion of all on-going projects within stipulated period.

Ensure maximum utilization of installed capacity and help in better system

stability

Generation of sufficient internal resources for expansion and setting up new

projects.

Corporate development along with simultaneous Human Resource

Development

47

PROFILE

Authorised Capital Rs. 1,50,000 Million

Value of Assets Rs. 2,54,000 Million Approx.

Paid Up Capital Rs. 111,982 Million 31.03.2007

Projects Completed 14 Nos. (5175 MW)

Projects Under Construction 11 Nos. (4622 MW)

Projects Awaiting Clearances 8 Nos. (5751 MW)

Projects Under Survey and Investigation Stage 11 Nos. (7585 MW)

Joint Venture Projects 3 Nos. (1586 MW)

Projects on Turnkey Basis 5 Nos. (89.35 MW)

In 2007-2008

Energy Generated (Including Deemed Generation) 14811.35 MU

Capacity Index 96.13%

Sales Turnover 23110 Million

Net Profit 10020.6 Million

Performance Rating "Very Good"

In 2006-2007

Energy Generated (Including Deemed Generation) 13048.76 MU

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Capacity Index 94.11%

Sales Turnover 19630 Million

Net Profit 9248 Million

Performance Rating "Excellent"

In 2005-2006

Energy Generated (Including Deemed Generation) 12567.15 MU

Capacity Index 98.16%

Sales Turnover 17140 Million

Net Profit 7427 Million

Performance Rating "Excellent"

In 2004-2005

Energy Generated (Including Deemed Generation) 11286.43 MU

Capacity Index 95.28 %

Net Profit 6845.8 Million

Performance Rating "Excellent"

49

LOCATIONS OF NHPC

50

GENERATION

During the period 2006-2007 , NHPC Limited had a sales turnover of 19630 Million with a Net Profit of 9248 Million.

Sales vs Profit

51

Presently NHPC Limited is engaged in the construction of 11 projects aggregating

to a total installed capacity of 4622 MW. NHPC Limited has added 1970 MW

during the 10th Plan period and planned to add 5322 MW during 11th Plan period.

8 projects of 5751 MW are awaiting clearances/Govt. approval for their

implementation. Detailed Projects report are being prepared for 11 projects of

7585 MW.

Since its inception in 1975, NHPC Limited has grown to become one of the largest

organisation in the field of hydro power development in the country. With its present

capabilities, NHPC Limited can undertake all activities from concept to

commissioning of Hydroelectric Projects.

PERFORMANCE REVIEW 2007-08

* NHPC has been conferred Mini Ratna status by the Government of India.

* Name of the Company has been changed from National Hydroelectric

Power Corporation Ltd. To NHPC Limited.

* Crossed profit figure of Rs. 1000 crore and installed capacity of 5000 MW.

Registered a net Profit of Rs. 1,002 crore against Rs. 925 crore during the

previous financial year.

* Poised to pay highest ever dividend.

* Achieved an all time high sales turnover of Rs. 2,311 crore as against

Rs.1,963 crore during the previous year.

* Achieved 100% revenue realization of Rs. 2270 crore

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* Enjoys highest credit rating i.e. AAA for domestic borrowings and rating

equivalent to Sovereign rating for external borrowings from reputed

International rating agencies.

* Commissioned three projects namely the 520 MW Omkareshwar (JV) in

Madhya Pradesh, 390 MW Dul Hasti in J&K and 510 MW Teesta Stage-V in

Sikkim.

* Generated 14811.35 Million Units electricity against 13048.74 Million

Units generated during previous corresponding year, thereby registering an

increase of 13.5 %.

* The Power Stations achieved a Capacity Index of 96.13 % against the

MoU target of 94.50 %.

* Implementing India’s largest hydroelectric project, the 2000 MW Subansiri

Lower Project in Arunachal Pradesh.

* Plans to become 10000 MW plus company by 11th Plan.

* Revised MoA signed with Govt. of Arunachal Pradesh for implementation

of 3000 MW Dibang Multipurpose Project, 750 MW Tawang-I Project and

750 MW Tawang-II Project by NHPC.

* Recommendation of PIB for Govt. sanction and TEC of CEA obtained for

the 3000 MW Dibang Multipurpose Project. Dr. Manmohan Singh, Hon’ble

Prime Minister of India laid the foundation stone of the Project on 31.1.2008.

53

* Govt. sanction accorded for the 330 MW Kishanganga Project in Jammu &

Kashmir.

* DPR of the 520MW Teesta Stage-IV Project in Sikkim submitted to CEA

for accord of TEC.

* PIB has recommended the 530 MW Kotli Bhel-II Project in Uttarakhand

for Govt. sanction. Environment clearance has also been accorded by

Ministry of Environment and Forest for the Project.

* MoU signed with Govt. of Manipur for implementation of 66 MW Loktak

Downstream Project by NHPC in Joint Venture with Govt. of Manipur.

Ministry of Environment and Forest has accorded pre-construction activities

on the project.

* Environment clearance has been accorded by Ministry of Environment and

Forest for 195 MW Kotli Bhel-1A, 320 MW Kotli Bhel-1B, 120 MW Vyasi

Projects, all in Uttarakhand and 1000 MW Pakal Dul Project in Jammu &

Kashmir.

* Implementing Enterprise Resource Planning (ERP) of IFS AB, Sweden

across the organization.

* Four Independent Directors have been appointed on the Board of NHPC.

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ANNUAL REVIEW 2007-08

Highest ever turnover and net profit, commissioning of three projects, viz. 520 MW

Omkareshwar in Joint Venture in Madhya Pradesh, 390 MW Dul Hasti in Jammu &

Kashmir, 510 MW Teesta Stage-V Project in Sikkim, achieving the highest ever net

profit and turnover, surpassing the MoU generation target, achieving 96.13 %

capacity index, record realization of energy bills from various beneficiaries, bagging

more consultancy assignments, obtaining Mini Ratna status, amending the

Memorandum of Association of the Company, changing the name of the Company,

implementing ERP solutions and making go live Energy Sales and Accounting

module of ERP, obtaining Government sanction for the 330 MW Kishanganga

Project in Jammu & Kashmir, obtaining PIB recommendation for the 530 MW Kotli

Bhel-II Project, obtaining TEC from CEA for the 3000 MW Dibang Multipurpose

Project, submission of DPR of the 520 MW Teesta Stage-IV Project to CEA for

according TEC, obtaining Environmental clearance from MOEF for 5 projects

totaling 2165 MW, Singing of Revised MOA with Govt. of Arunachal Pradesh for

implementing 3000 MW Dibang Multipurpose Project, 750 MW each Tawang – I

and Tawang-II Projects, signing of MoU with Govt. of Manipur for implementing

the 66 MW Loktak Downstream Project, speeding up construction activities on all

the Projects under construction are some of the major achievements of NHPC during

the Financial year 2007-08.

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FINANCIAL PERFORMANCE DURING 2007-08 * Registered a net profit (after tax) of Rs. 1,002.06 crore against the net profit (after

tax) of Rs. 9,24.80 crore registered during the previous financial year.

* Achieved an all time high sales turnover of Rs. 2,311.47 crore as against Rs.

1,962.76 crore achieved during the year 2006-07

* Poised to declare an all time high dividend for the year 2007-08. An interim

dividend of Rs. 100 crore for the year 2007-08 has already been paid to Government

of India.

* Better business management coupled with prudent financial policies like efficient

sales realization, better grid management, efficient treasury management systems

etc. have resulted in sound financial position which made the Company self reliant

for the resources generation for ambitious capacity addition program in XI and XII

Five year plans.

* No budgetary support from Government during the year 2007-08.

* Enjoys highest credit rating i.e. AAA for domestic borrowings and rating

equivalent to Sovereign rating for external borrowings from reputed international

agency.

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* Signed financing agreements with PFC aggregating approximately Rs. 4,000 crore

at most competitive terms.

* Necessary financial closure of all ongoing projects in place.

* Likely to come up with IPO in August 2008.

POWER GENERATION

During the period under review, the operating Power Stations of NHPC generated

14811.35 Million Units exceeding the annual MoU target of 13906.95 million units

for ‘very good’ rating, as compared to 13048.74 Million Units generated during the

same period of the previous year, showing an increase of 13.51 %.

The machine availability of the operating power stations measured as Capacity

Index is 96.13 % exceeding the annual MoU targets of 94.50 % for ‘Excellent’

rating

SALE OF ENERGY AND REALISATION The sale rate of NHPC power during 2007-08 varied from 75 paise per unit (Salal

Power Station) to 310 paise per unit (Chamera-II Power Station). The average sale

rate is 173 paise per unit. Revenue realization from all the 27 beneficiaries of NHPC

operating power stations during 2007-08 is 100% (Rs. 2,270 crore)

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PROJECTS COMMISIONED NHPC has added 1420 MW during the period under review by commissioning three

projects.The 390 MW Dul Hasti Power Station was declared under commercial

operation with effect from 7.4.2007. The Power Station was dedicated to the Nation

on 26.4.2008 by Dr. Manmohan Singh, Hon’ble Prime Minister of India. The

beneficiaries of the Power Station are Jammu & Kashmir, Punjab, Haryana, Uttar

Pradesh, Uttarakhand, Rajasthan, Delhi and Union Territory of Chandigarh.

The 510 MW Teesta Stage-V Project in Sikkim has been put under commercial

operation during February/ March 2008. The beneficiaries of the Project are DVC,

Bihar, Orissa, Jharkand, West Bengal and Sikkim. Power from this Power Station is

being supplied to the beneficiaries @ Rs. 1.62/unit.

The 520 MW Omkareshwar Project (under joint venture with Govt. of Madhya

Pradesh) was commissioned during November 2007 against scheduled date of

Feb.’08.

CONSULTANCY SERVICES

NHPC has been providing consultancy services in the area of hydro power

development for generating additional revenue for the Corporation in the form of

consultancy business. The clients to whom the consultancy services are being

provided include agencies / organizations both in public and in private sector in

India and abroad. During the financial year 2007-08, consultancy assignments

amounting to Rs. 2156 lakh and total payment amounting to Rs. 3011 lakh were

received.

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RURAL ELECTRIFICATION PROJECTS

Under Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY), NHPC has taken up

Rural Electrification works in 27 districts of States of West Bengal, Bihar, J&K,

Chhattisgarh and Orissa with an estimated cost of about Rs. 2,580 crore. The scope

of work of all the districts covers 32400 villages and service connection to 20.80

lakh of BPL households. Out of the 27 districts, NHPC has awarded work in 14

districts. In addition to the above, tendering process has been initiated in balance 13

districts which have been sanctioned recently.

RURAL ROADS PROJECT

Under the Pradhan Mantri Gram Sadak Yojna (PMGSY), NHPC has undertaken

construction of rural roads and its maintenance in six districts of Bihar namely East

Champaran, Muzaffarpur, Sheohar, Sitamarhi, Vaishali and West Champaran.

NHPC has prepared and submitted DPR for 427 number of roads with a total length

of 2259 km. Against this, approval for 304 number roads with a length of 1741 km

has been received and work on 495 km road has been completed so far.

RESEARCH AND DEVELOPMENT ACTIVITIES

NHPC has actively considered the Clean Development Mechanism (CDM) for its

hydropower Projects. Project Idea Notes (PINs) for 15 projects have been prepared.

Host country approval for Nimoo-Bazgo and Chutak Project in J&K have been

obtained from National CDM Authority. Agreement between M/s. MGM

International & IDBI has been signed for development of Nimoo-Bazgo and Chutak

Projects as CDM Projects and sale of certified Emission Reductions (CERs)

generated by these projects up to 31st December, 2012. Data collection and

feasibility studies on other projects for consideration of CDM benefits are in

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process.

With a view to assess and optimize the power station’s performance, Energy Audit

of NHPC Power Stations is being conducted.

NHPC has signed an MoU with WBGEDCL for execution of the 3.65 MW

Durgaduani mini Tidal Project in West Bengal. The Project has been approved and

MNRE has conveyed the sanction of the project at an estimated cost of Rs. 48 crore

(without navigational lock) excluding agency charges and applicable taxes.

NHPC is one of the participating agencies in conjunction with CPRI & SJVNL in

the National R&D Project on “Development of Silt Erosion Resistant Material for

Turbines of Hydro Generators” by National Metallurgical Laboratory, Jamshedpur

that is under execution.

ENTERPRISE RESOURCE PLANNING (ERP)

With the objective of high level of interaction, co-ordination and synchronization

across all functions and to enhance NHPC's capability to respond to new needs in a

dynamic business environment, NHPC is implementing ERP of IFS AB, Sweden

across the organization covering Mega Processes such as Project Management,

Operations & Maintenance, Finance & Accounts, Procurement & Contracts, Energy

Sales Accounting, Human Resource and Engineering & Quality Assurance out of

which Energy Sales Accounting has been made Go Live as scheduled on 29th

February, 2008. The first phase of ERP implementation is scheduled to be

completed on 15th October, 2008. The ERP project when implemented shall

facilitate improved performance, productivity and profitability in the organization.

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To support the ongoing implementation of ERP solution in NHPC, a scalable and

state-of-the-art, Tier-III enterprise class data centre is being developed in the NHPC

office complex at Faridabad. This Greenfield data centre building would be

equipped with advanced access control and climate control devices along with

redundancy in both power and communication links to ensure uninterrupted

operations. In addition, it is aimed to be compliant with the provisions of the Energy

Conservation Building Code, 2007 to ensure optimum utilization of energy

resources.

NHPC has also initiated actions to augment existing IT & Communication

infrastructure in terms of Local Area Networks, servers, desktops, security and

satellite based Wide Area Network to support the ERP initiative.

Efforts made in the area of IT & Communication in the organization have brought

about considerable transformation in terms of performance, efficiency and

productivity.

HUMAN RESOURCE DEVELOPMENT (HRD)

NHPC has conceived and initiated Business Process Reengineering & Restructuring

exercise aimed at evolving new organization design, optimizing Human Resource

and assessing and articulating Business Strategy through a reputed Consultant.

Several organization development initiatives have been implemented including

revisiting of HR Policies on the basis of an extensive organization climate survey.

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NHPC has implemented Productivity Linked Group Incentive Scheme (PLGI)

which envisages variable pay up to 12.5% of the annual basic pay of an employee.

Aiming to provide social security to the employees, the NHPC Social Security

Scheme has been introduced which envisages equal contributions from the employee

and the employer.

In the event of death/ permanent disability, the employee / his family can get up to

Rs. 10 lakh under the above scheme. The Company has also implemented a number

of welfare measures for the benefit of the people living in and around its Power

Stations as a part of Corporate Social Responsibility. During the period, cordial

industrial relations prevailed due to which not even a single man day was lost.

AWARDS AND RECOGNITIONS WON

During the period under review NHPC has won many accolades in the form of

awards as mentioned below:

Special Jury Award at the Asia Pacific Global HRM Summit for “Innovative

HR Practices”.

BML Munjal Award instituted by the Hero Group for “Innovative Learning

& Development Practices”.

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Amity Award for CSR.

SCOPE Excellence Award for CSR.

2nd Prize at the WIPS (Women in Public Sector) Meet in the category of

Best Performing Enterprise for Women Empowerment Initiatives.

QUALITY ASSURANCE

During 2007-08 Corporate Office and six Power Stations (Uri, Tanakpur, Chamera-

I, Salal, Dhauliganga and Baira Siul) were certified for Occupational Health &

Safety management System i.e. OHSMS-18001. In addition, Rangit Power Station

was certified ISO-9001 and Dhauliganga Power Station was certified ISO-14001.

Disclaimer: “The Company is proposing, subject to receipt of requisite approvals,

market conditions and other considerations, a public issue of its equity shares and to

file a Draft Red Herring Prospectus with SEBI”

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CHAPTER 4

64

DATA PRESENTATION AND ANALYSIS

It is analyzed that NHPC uses its business strategies by formulating, implementing

and evaluating its cross-functional decisions that enables the organization to achieve

its objectives. The managers and higher authorities of the organization specify the

organization's objectives, develop policies and plans to achieve these objectives, and

then allocate resources to implement the policies and plans to achieve the

organization's objectives.

Business strategy is not a very common subject. Normally, employees of NHPC are

not aware what business strategy is all about and how the organization is relating

these strategies to the objectives of the organization. It is the highest level of

managerial activity, usually formulated by the Board of directors of the organization

and performed by the higher level of employees.

According to the business strategies finalized, training programmes are conducted

by the organization. As the business strategies are related to various subjects, there

are a number of training programmes which are conducted for the employees of the

organization to make them understand better about the business strategies and how it

works for the betterment of the organization. With the help of above analysis, it has

been identified that there are 25 training programs which are related to the business

strategies out of the total number of 110 training programmes.

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The training programmes which have been identified as related to the Business

Strategy of NHPC are:

1. Leadership Excellence

2. Evolving Managers into Leaders – A Competency Based Approach

3. Managing Change

4. Managing Performance

5. Corporate Governance

6. Strategic Leadership for Global Competitiveness

7. Strategic Thinking for Business Leadership

8. Corporate Resurgence and Growth

9. Managing Creativity and Innovation

10. Strategic Management

11. Corporate Vision and Mission

12. Developing Positive Work Culture

13. Business Process Re-engineering

14. Project Management with Emphasis upon Investigation and

Implementation Planning

15. R&R Policy and Concerned Issues

16. Managing Human Relations in Organization

17. Strategic HRM

18. Effective HR T&D

19. CERC Norms / Grid Code for the Operation of Hydro Plant

20. Project Management for River Valley Projects

21. Mega Power Policy

22. Deemed Export Benefit in Context of Hydro Power Project and

Taxation

23. Skilling and Multi-skilling Training

24. ERP Awareness cum Orientation Programme

25. Induction cum orientation programme

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These programmes are developed keeping in view of the needs of training the

employees. It has been taken into account that which employees are to be given

what type of training.

For example, leadership and management programmes are conducted for the top

level of employees technical programmes are conducted for engineers and JE’s etc.

The employees are categorized into three different levels.

• Lower level ( E1-E3 )

• Middle level ( E4-E6 )

• Top level ( E7-E9 )

The strategic programmes are scheduled to be conducted for a number of days in

different months over the year. For some programmes where training is related to

classroom learning, venues like IIM-A IIM-K, IIM–L, IMT-Ghz. etc are also

selected.

Some of these programmes are held two or more times in a year. The organization

reassesses each strategy annually to determine how it has been implemented and

whether it has succeeded or needs replacement by a new strategy. The programmes

have added a significant value in the lives of the employees by preparing them for

the challenges of the future.

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The technical strategic programmes have helped the corporation in undertaking new

projects and developing aptitude and competency among the employees for timely

and effective execution of the projects. Such programmes cover the designing layout

of the projects, construction planning and management, software programmes etc

which impart conceptual clarity and hands on training on the most versatile software

packages used by engineers. Technical programmes play a vital role in the long-term

planning of NHPC resulting in increase of revenue through electricity generation.

NHPC uses business strategy as an ongoing process that assesses the business and

the industries in which the organization is involved; assesses the challenges which

the organization faces and sets goals and strategies to solve existing problems and

issues as well as to meet the future demands of electricity.

These strategic programmes have played a significant role in disseminating a vast

body of knowledge, inculcating competencies required for competing in this

turbulent global arena and developing leadership across levels and geographies to

help NHPC achieve its targets effectively and rapidly.

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CHAPTER 5

69

FINDINGS

It is analyzed that NHPC uses its business strategies by formulating,

implementing and evaluating its cross-functional decisions that enables the

organization to achieve its objectives.

The managers and higher authorities of the organization specify the

organization's objectives, develop policies and plans to achieve these

objectives, and then allocate resources to implement the policies and plans to

achieve the organization's objectives.

Business strategy is not a very common subject. Normally, employees of

NHPC are not aware what business strategy is all about and how the

organization is relating these strategies to the objectives of the organization.

It is the highest level of managerial activity, usually formulated by the Board

of directors of the organization and performed by the higher level of

employees.

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CHAPTER 6

71

CONCLUSION & RECOMMENDATIONS

HRD and management of NHPC give focus to business strategies and appox. 23%

of the total training programmes conducted by the corporation are related to its

business strategies. Business strategies of NHPC influence all the activities of the

various functional areas of the business to achieve organizational objectives. NHPC

uses business strategies as an ongoing process that assesses the business and the

industries in which the organization is involved; assesses the challenges which the

organization faces and sets goals and strategies to solve all existing problems and

issues as well as to meet the future demand of electricity.

The organization reassesses each strategy annually to determine how it has been

implemented and whether it has succeeded or needs replacement by a new strategy

to meet changed circumstances, new technology, new competitors, a new economic

environment, or a new social, financial, or political environment.

As per the project carried out to know about the business strategies of NHPC, the

training programmes conducted and how these programmes are related to the

business strategy of the organization, some conclusions have been drawn. These are:

1) Training programmes have been identified keeping in view the various

factors like Individual Training Needs of the employees, Recommendations

of HODs, Technological advancement, Growing challenge in the Power

Sector, Business Plans of the organization, Needs derived from defined

Vision/Mission/objectives of the Corporation etc.

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2) Justified weightage has been given to the Business Strategis of the

Corporation along with its future plans in identification of the training

programmes.

3) Appox. 23% of the total training programmes includes in the training

calendar are identified as per the Business Plans of NHPC, which

characterizes the importance and relevancy of the aspect in identification of

need based training programmes.

4) NHPC pays due attention to create the awareness amongst the employees

about its future plans and emerging challenges so as to make them capable to

face them effectively.

5) The training programmes related to business strategy have helped the

employees in honing their skills and developing versatility.

6) The programmes have helped the employees to understand the business

strategy of the organization and work according to it to attain the individual’s

as well as the organizational objectives.

7) It has helped in aiming towards the multi disciplinary development of its

employees.

8) The programmes have added a significant value in the lives of the employees

by preparing them for the challenges of the future.

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BIBLIOGRAPHY

BOOKS:

1) Prentice Hall India, “Human Resource Management”, Garry Dassler, 7th

Edition.

2) Sultan Chand & Sons, “Human Resource Management”, L.M Prasad.

3) NHPC Training Calender (2008-09)

WEBSITES:

www.google.com

www.nhpcindia.com

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APPENDICES

1) Annual Training Schedule (2008-09)

2) Training programmes identified as Business Strategies from Annual Training

Schedule