Pkp Pms

CONTENTS

1. INDUSTRY PROFILE 2. COMPANY PROFILE 3. HR DEPARTMENT 4. LITERATURE SURVEY a) PMS b) APPRAISAL SYSTEM c) CHANNEL OF PMS d) REDEPLOYMENT e) SLPS 5. RESEARCH METHODOLOGY 6. QUESTIONNAIRE 7. FINDING & ANALYSIS 8. SUGGESTION 9. CONCLUSION

INDUSTRIAL

PROFILE

“HISTORY OF POWER SECTOR DEVELOPMENT IN INDIA” Power Development: The electric power generation in India on a commercial basis is almost a century old, substantial power development efforts began only after independence. At the launch of the First Five Year plan in1951, power generation was recognized as a major input for the country’s economic development and was accorded high priority. Power sector outlays have among the highest in successive Five Year Plans ever since. The two plans focused on hydropower (as component of multi-purpose projects). Subsequent plans emphasized on rapid installations of thermal power stations. As a result of plan efforts, India’s installed power generation capacity grew to 16,664MW in 1974. However, assessment of the planned growth since 1951 indicated that with the uneven distribution of resources, power development with only states as spatial units would result in large inter-state imbalances. This, and the need for quicker and greater capacity addition, led the Government Of India to assume a leading role in large-scale power generation as a matter of policy and, through an amendment of the Electricity (Supply) Act, National Thermal Power Corporation Ltd. (NTPC) and National Hydroelectric Power Corporation Ltd. (NHPC) were set in the central sector to supplement the efforts of the states. Consequently, total installed capacity of power utilities has increased from 1,362 MW in 1947 to 1,04918MW in March 2002. Electricity generation, which was only about 4.1 billion units in 1947, has risen to 515 billion units in 2001-02. As on March 2002, the total installed capacity of utilities stood at 104918 MW. Most of this installed capacity is under government control nearly 60% of the power generation capacity. Currently, the central government owns about 30% of the power generation capacity in the country, the majority of which is in the thermal sector. Of the total installed thermal capacity of 25366.50MW in central sector, NTPC’s share is 20092MW (76.61%).

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COMPANY PROFOLE “NTPC- An Integrated Power Major” JOURNEY TOWARDS EXCELLENCE established in 1975, NTPC A Limited, a premier Public Sector Enterprise, is India’s largest power utility with an installed capacity of 27,904 MW through 26 power stations including stations operated under Joint Venture Companies. NTPC has emerged as an Integrated Power Major with presence in Hydro Power, Coal mining, Oil & Gas exploration, Power Distribution & Trading and also plans to enter into Nuclear Power Development. NTPC plans to become a 50,000 MW Company by 2012 and 75,000 MW plus company by 2017. The Company contributed 29.25% of the total electricity generated in the country during 2006-07 with 20.71% share of the total installed capacity of the nation including capacity and generation of Joint Venture Companies. STRATEGIC INITIATIVES: NTPC has acquired 44.6% equity stake in Transformers & Electricals Kerala Ltd. (TELK) for manufacturing of Transformers. As part of globalization initiatives, NTPC plans to construct and operate thermal power plants in overseas market. NTPC has signed an MOU with Nigeria for supply of LNG. NTPC in turn shall set & operate 500 MW coal based and 700 MW gas based power plant in Nigeria. The company has also signed an MOU for setting up of a 500 MW coal based power plant in Sri Lanka. POWER PERFORMANCE (2006-07):  A dividend of 32%. Highest ever generation of 188.674 billion units.

 Highest ever capacity utilization (PLF) of 89.43% in coal based power plants.  Net profit after tax of Rs. 68.647 million.  New national record559 days of uninterrupted running set by Unit #3 of Vindhyachal Super Thermal Power Station. -

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 Paid

INTEGRATED POWER MAJOR:  NTPC Electricity Supply Company Ltd., (NESCL) formed as a subsidiary

company to take up power distribution activities. NESCL has started the process of implementation of Accelerated Rural Electrification Programme in West Bengal.  NTPC Vidyut Vyapar Nigam Ltd. has been formed as a subsidiary company for

power trading. NVVN transacted business of 2664 MUs in 2006-07.  Entered the coal mining business and has been allotted 8 coal mining blocks.  NTPC has got the approval for Mining Plan of 15 MTPA for its first coal mining

project at Pakri Barwadih. It is the largest ever capacity planned, in the very first phase, in a single mine in the country.  NTPC has also signed a MOU with CIL and SCCL for formation of Joint

Ventures to undertake development, Operation & Maintenance of coal blocks and integrated coal-based power plants.  MOU signed with BEML for joint business development in the field of contract

coal mining.  Consortium comprising NTPC, Canoro and Geopetrol has been allotted an oil

exploration block in Arunachal Pradesh.  MOU signed with Ministry of Railway for setting up power plant of 1000 MW at

Nabinagar in Bihar. Project approved by CCEA.  MOU signed with ADB for establishment of power generation of about 500 MW

through Renewable Energy Sources.  MOU signed with BHEL for taking up EPC jobs together.

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FOARY INTO HYDRO SECTOR:  NTPC has been giving increased thrust to hydro development for a balanced portfolio for long term sustainability, 1920 MW under implementation at Koldam (800 MW), Loharinag Pala (600 MW) and Tapovan Vishnugad (520 MW).  NTPC Hydro Ltd. Incorporated as a subsidiary company to take up small hydro projects. Presently the projects planned for implementation are Lata Tapovan (171 MW), Uttarakhand & Rammam III (120 MW), West Bengal.  MOU signed with Arunachal Pradesh for implementation of two Hydro Projects

Etalin (4000 MW) and Attunli (500 MW).

AWARDS & ACCOLADES:  Ranked No.1 in the category of Independent Power Producer under “Top Asian Performance by Industry” in the 2007 Platts Top 250 Global Energy Companies in Asia.  NTPC bagged SCOPE Meritorious Award for Good Corporate Governance for 2005-06.  Simhadri has been awarded with the prestigious International Project Management Award (IPMA) for the year 2005 for excellence in Project Management.  Unchahar station of NTPC received coveted Asian Power Plant of the year Award, 2006 for Efficiency, Environment, Operational Characteristics and Business Management.  NTPC bagged 7 National Award for Meritorious performance.  Ranked Top Awardee for MoU Award for Excellence in Performance by Govt. Of India.

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 NTPC has been ranked as per total income in the Power-Generation, Transmission, Distribution Sector among India’s Top 500 Companies for the year 2006 by Dun & Bradstreet.  Ranked among top 10 Great place to Work for in the country in the Business World survey.  4 NTPC stations received the CII Exim Bank Excellence Award 2006.  PMI, NTPC has bagged the prestigious Golden Peacock National Training Award, 2006, for 4th year in succession.  NTPC won the Golden Peacock National Award for Corporate Social Responsibility in Emerging Economics (Public Sector), 2007.  Won the SCOPE Meritorious Award for Best Practices in Human Resource Management.

NTPC VISION

“A world class integrated Power major, powering India’s growth, with Increasing global presence”

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NTPC MISSION

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“Develop and provide Reliable power, related Products and services at Competitive prices, Integrating multiple energy Sources with innovative And eco-friendly Technologies and Contribute to society”

HUMAN RESOURCE VISION -

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TO ENABLE OUR PEOPLE TO BE A FAMILY OF COMITTED WORLD CLASS PROFESSIONALS, MAKING NTPC A LEARNING ORGANISATION

“NTPC CORE VALUES”

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 BUSINESS ETHICS  CUSTOMER FOCUS  ORGANISATIONAL & PROFESSIONAL PRIDE  MUTUAL RESPECT AND TRUST  INNOVATION AND SPEED  TOTAL QUALITY FOR EXCELLENCE

NTPC OBJECTIVES 1. To add generating capacity with prescribe time and cost. 2. To operate and maintain power stations at high availability ensuring minimum cost of generation. 3. To maintain the financial operation in accordance with good commercial utility practice. 4. To develop appropriate commercial policy leading to remunerative tariffs and minimum receivables. 5. To function as a responsible corporate citizen and discharge social responsibility, in respect of environment protection and rehabilitation.

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 The corporation will strive to utilize the ash produced at its stations to the maximum extent possible through production of ash bricks buildings materials etc.  To adopt appropriate human resources development policy leading to creation of team of motivated and competent power professionals.  To introduce, assimilate and attain self-sufficiency in technology, acquire expertise in utility management practices and to disseminate knowledge essentially as a contribution to other constituents of the power sector in the country.  To develop Research & Development (R&D) for achieving improved plant reliability.  To expand the consultancy operations and to participate in ventures abroad.

The Ten principle of global compact HUMAN RIGHTS:Principle1. Business should support and respect the protection of proclaimed human rights.

internationally

Principle2. Make sure that they are not complicit in human rights abuses.

LABOUR:Principle3. Business should uphold freedom of association and the effective recognition of the right to collective bargaining. -

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Principle4. The elimination of all forms of forced and compulsory labour. Principle5. The effective abolition of child labour. Principle6. The elimination of discrimination in respect of employment and occupation environment. Principle7. Business should support a precautionary approach to environmental challenges. Principle8. Undertake initiatives to promote greater environmental responsibility. Principle9. Encourage the development and diffusion of environment friendly technologies. ANTI-CORRUPTION;Principle10. Business should work against corruption in all its forms, including extortion and broidery

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“HUMAN RESOURCES AT NTPC” Powering India’s Growth: - through people NTPC strongly believes in achieving organizational excellence through Human Resources and follows “People First” approach to leverage the potential of its 23,500 employees to fulfill its business plans. Human Resources Function has formulated an integrated HR strategy, which is rests on four building blocks of HR viz. competence building, commitment building, culture building and system building. All HR initiates are -

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undertaken within this broad framework to actualize the HR vision of “enabling the employees to be a family of commitment world class professionals making NTPC a learning organization”. To induct talent and groom them into dedicated cadre of power professionals “Executive Trainee” Scheme was introduced in the year 1977 for recruitment in the discipline of Mechanical, Civil, Electrical, Control &Instrumentation and now encompasses Computer Science, Chemistry, HR and Finance disciplines also. Besides a comprehensive one-year training comprising theoretical inputs as well as onthe-job training, the new circuits are attached with Senior Executives under a systematic and formal ‘Mentoring System’ of the company to integrate them into the culture of company. As part of the post employment training and development opportunities, a systematic training plan has been formulated for ensuring minimum seven man days training per employee per year and includes level-wise planned intervention designed to groom people for assuming positions of higher responsibility, as well as specific needs based interventions based on Scientific Training Needs Analysis. NTPC has created 15 project-training centers, 2 simulator training centers and an apex institute namely ‘Power Management Institute’ (PMI). While the project training centers (Employee Development Centers) have specialized in imparting technical skills and knowledge, PMI places emphasis on management development. Besides opportunities for long-term education are also provided through tie-ups with reputed institutions like IIT Delhi, (M.Tech in Power Generation Technology), MDI Gurgaon (Executive MBA programmes), BITS Pilani (B.Tech) etc. in order to realize the HR vision of making NTPC a learning organization by providing opportunities to continually learn new capabilities a number of initiatives have been taken. NTPC open competition for Executives Talent (NOCET) is organized every year in which teams of executives compete annually through oral and written presentation on a topical theme. Similarly “Professional Circle” has been formed department wise where Executives of the department meet every fortnight to share their knowledge and experiences and discuss topical issues. In order to tap the latent talent among non-

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executives and make use of they’re potential for creativity and innovation, Quality Circles have been set up in various units/ offices in NTPC. Besides a management journal called “Horizon” is published quarterly to enable the employees to share their ideas and experiences across the organization. Demonstrating its high concern for people, NTPC has developed strong employee welfare, health &wellbeing and social security systems leading to high level of commitment. NTPC offers best quality of life through beautiful township with all amenities such as educational, medical and recreational opportunities for employees and their family members. The motivational to perform and excel is further enhanced through a comprehensive NTPC Rewards and Recognition System. In order to institutional a strong culture based on values a number of initiatives are taken to actualize the vision and core values (B-COMIT) across the company. A culture of celebrating achievements and a strong focus on performance are a way of life in a NTPC. NTPC has institutionalized “Development Centers” in the company to systematically diagnose the current and potential competency requirements of the employees with the objective of enhancing their development in a planned manner. These centers give a good insight to the employees about their strengths and weakness, the gaps in their competencies, which they can bridge through suitable support from company. Due to innovative people management practices there is a high level of pride and commitment amongst employees as reflected in the “Best Employees in India-2003” survey by Hewitt Associates in which NTPC bagged coveted third rank. Further continuous efforts are being made by HR function to leverage the potential of its employees and become a strategic business partner.

“HUMAN RESOURCE DEPARTMENTS”

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ED

EB

ER

ES

EDC

Rajbhasha Group

EMPLOYEE DEVELOPMENT (ED) This department takes the HR initiatives of promotion, appraisals and other development aspects. ED maintains the Management Information System for the organization. EMPLOYEE BENEFITS GROUP (EB) The Employee Benefits Groups take care of the welfare and benefits like recruitment, separation loans and advances, which the employees are eligible. The Voluntary Retirement Scheme is also dealt by EBG. EMPLOYEE RELATIONS GROUP (ER) The ERG is in charge of the Industrial Relations Contract Labor, security i.e. CISF and GPAIS of NTPC, Shaktinagar. EMPLOYEE SERVICE GROUP (ES) The ESG deals with entitlements handling and other law related matters. EMPLOYEE DEVELOPMENT CENTER (EDC) The EDC conducts various workshops and Training Programme to employees and other trainees. EDC conducts IGNOU exams for employees who are interested in doing higher education with jobs. RAJBHSHA GROUP -

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As it is compulsory for all Government organization to keep a Hindi so is in NTPC also for the same reason NTPC has Rajbhasha Group. This Group does the Hindi translation; conduct debates and other Hindi promotional activities

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EFFECTIVENESS OF PERFORMANCE MANAGEMENT SYSTEM

INTRODUCTION Philosophy of Performance Management System. To build a culture of performance by aligning individual and organizational Objectives and encouraging open communication feedback. OBJECTIVES •

To accomplish the overall organizational vision and mission by linking individual performance to company objectives.

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To cascade company’s strategic goals to individual level.

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To promote professional excellence.

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To encourage a two-way communication between executive and the Reporting Officer and bring about transparency in the performance assessment process.

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To evaluate the potential of the executives to ensure higher responsibilities in the organization.

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To provide a source of talent for meeting organization’s growth requirements through a process of mapping the competencies and potentials of executives.

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To translate future skill requirements of the organization into individual developments plans.

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To identify high performers and recognize them rewards and incentives.

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To facilitate fulfillment of individual aspirations.

APPLICABILITY  The revised Performance Management System is applicable to all executives of NTPC (E1-E9).  Executive who join NTPC on deputation or retaining lien while in service of NTPC are also covered by this scheme.  Executives who join in the middle of the PMS cycle, but have served for a minimum of three months.  NTPC executives who are on secondment or are lent on service to subsidiaries and joint ventures with NTPC management. PMS Cycle Performance Assessment Year -

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Performance Assessment Years have been set as follows: For E6 and above: The Performance Assessment year commences from 1st April of each year and continues until 31st March of the following year. For E1-E5: The Performance Assessment year commences from 1st January of each year and continues until 31st December of the following same year.

PMS Calendar: PMS activities for E1 to E5 No. Activity/ Steps 1. Issue of PMS Forms

Timeline Key Responsibility th 15 December• HR Department

2.

31st December 1st January- 25th

Performance Planning

January 3.

Submission

of

th

PMS 30 January

•

Reporting Officer

• •

Executive Reporting Officer

•

HR Department

From after Performance 4.

Planning to HR Issue of PMS Form for 20th

5.

Mid Year Review June Mid Year Performance 1st-15th July

•

Executive

Review

•

Reporting Officer

June-30th

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6.

Submission

of

•

Reporting Officer

December-

•

HR Department

31 December 1st January- 25th

•

Executive

January

•

Reporting Officer

•

Reviewing

•

Officer Reviewing

PMS 21st July

Form after Mid Year 7. 8.

9.

Review to HR Issue of PMS Form for 15th st

Annual Assessment Annual Assessment

th

Submission

of 30 January

Completed PMS form to 10.

HR Normalization of PMS

Officer 1st February- 15th

•

February

HR

to

coordination •

Performance Management

11.

28th February

Performance communication

•

and

Committee Reporting Officer (Administrative

Feedback to Executives

support from HR Department)

PMS activities for E6 and above: No. 1. 2.

Activity/ Steps Issue of PMS Form Performance

Timeline 15th March- 31st March 1st April- 25th April

Planning 3.

th

Submission of PMS 30 April Form

Key Responsibility • HR Department • Executive • •

Reporting Officer Reporting Officer

•

HR Department

after

Performance 4.

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

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5.

Year 1st- 15th October

Mid

Performance Review 6.

Submission of PMS 21st October

•

Executive

• •

Reporting Officer Reporting Officer

•

HR Department

•

Executive

•

Reporting Officer

• •

Reviewing Officer Reviewing Officer

•

Performance

Form after Mid Year 7.

Review to HR Issue of PMS Form 15th March- 31st March for

8.

9.

Annual

Assessment Annual Assessment

Submission completed

10.

Form to HR Normalization

1st April- 25th April

th

of 30 April PMS of 1st May- 25th May

PMS

Management Committee

11.

st

Performance

31 May

• •

HR to coordinate Reporting Officer

Communication and

(Administrative

Feedback

support

Executive

to

from

HR

department)

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PMS Process : The PMS process is broadly divided into the following stages:  Performance Planning  Mid Year Review  Annual Assessment  Normalization  Feedback, Coaching and Counseling 1.

Performance Planning: Performance Planning is the process of: •

Defining expectations i.e., the work to be done, the results/ targets to be achieved and skills/ competencies needed to achieve these objectives.

•

Setting “Measures” and “Targets”, determining priorities and weightages of results to be achieved.

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Identifying and allocating appropriate resources (such as manpower, tools, training, budget etc.) to enable the executive to achieve the targets.

While defining work objectives and measures, it is necessary to ensure that: •

Goals/ Targets/ Objectives are SMART (Specific, Measurable, Agreed, Realistic and Time bound) -

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•

Results are substantially within the executives control.

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Measures relate to results.

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Data are available for measurement.

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Agreement on mutually agreeable and achievable Performance targets is arrived at after sufficient discussion between Reporting Officer and executives have taken place.

2. Mid Year Review: Performance management is not an event but an on going process. Mid Year Reviews helps in the following ways: •

Reinforcing good performance in time.

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

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Identifying areas for “mid course” correction.

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Revisiting KPAs and goals, if necessary.

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Assessment resources and skill requirements affecting the individuals performance

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Discussion and feedback on functional competencies, managerial competencies, potential competencies and core values actualization.

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Providing early warnings of non-performance, i.e., avoiding year end surprises.

3. Annual Assessments: The objectives of annual assessment are to: •

Discuss and arrive at an assessment of performance with respect to agreed targets.

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•

Assess the competencies, potential and core value actualization by the individual.

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Agree upon improvement plans and development plans and development needs for the individual.

4. Normalization •

Ensure parity and integrity by minimizing variation in rating by different reporting officers across various department and locations.

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Enhance objectivity and transparency in the appraisal system.

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To view individual and performance from the perspective of organizational achievement.

5. Feedback, Coaching and Counseling In order to make PMS an open system and to enhance development orientation across the organization; feedback, caching and counseling are essential components. Communication the final performance results of the executive and providing developmental feedback are critical to this process. 5.1 Feedback Providing feedback on performance presents the following benefits: •

Creates transparency making PMS more acceptable to individuals.

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Reinforces good performance on time.

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Enables development of coaching and mentoring relationship between reporting officer and executive.

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Ensures that organizational objectives are achieved to an acceptable standard and in an acceptable form.

Providing performance feedback is a delicate matter and the reporting officer should create suitable conditions for providing performance feedback in the most effective manner. -

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In general  Feedback should be focused on the specific performance actions and not on the personality of the executive.  Feedback should be generated after reviewing all achievement and issues throughout the assessment period and not focused on isolated incidents.  Feedback calls for maintaining a log of critical occurring during the assessment period for recording both achievements and failures with details, as an aid to memory during performance discussions with the executive.  Feedback be given as regularly as possible so that enough opportunities are created for executive to bridge performance gaps through selfdevelopment. 5.2 Coaching and Counseling Coaching is an on-the-job approach to help individuals to develop and raise their skills and levels of competence. Coaching typically consists of: •

Making executives aware of how well they are performing and their present level knowledge and skill.

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Providing guidance to individuals to enable them to complete their work satisfactorily.

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Motivating individuals to learn new skills and develop themselves.

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Facilitating individuals to raise their level of contribution and achievement.

Counseling in the PMS context essentially is a process by which executives can receive assistance in sorting out issues and related to current and future responsibilities and aspirations. Therefore, Reporting Officers are required to encourage individuals to plan for their own self-development. The process of counseling is through: •

Recognition and understanding of existing strengths.

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Empowering, i.e., enabling the individual to recognize their own problems and expressing the same. -

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Facilitating actions through guidance and expertise, i.e., facilitating the process whereby the individual evaluates alternatives and formulates action plans to achieve the most suitable course of action.

•

Helping individuals to take ownership of their chosen action.

Coaching and Counseling together act as a feedback mechanism for the individual on his/ her performance. Reviewer/ Reporting Officer to communicate the areas for development and improvement to the executives often uses it.

The PMS form The PMS form is divided into seven parts: 1. Performance Planning and Assessment

(Part-I)

a) Dashboard of Key Performance Areas (KPAs)

(Part IA)

b) Details of KPA

(Part IA)

c) Mid-Year Review

(Part IB)

d) Review KPAs (in the case of change during mid year review)

(Part IC)

2. Competency Assessment

(Part-II)

a) Functional/Technical Competencies

(Part IIA)

b) Managerial competencies

(Part IIB)

3. Core Values

(Part III)

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4. Potential Competencies

(Part IV)

5. Special Achievements

(Part V)

6. Total Marks

(Part VI)

7. Individual Training and Development Plan

(Part VII)

1. Performance planning Performance Planning is to be done through a process of discussion between the executive and the reporting officer at the performance targets for the Key Performance Areas (KPA). It shall be the responsibility of the reviewing officer to ensure that KPAs identified have sufficient “stretch targets” cascaded down to achieve individual excellence. The reporting officer shall not be below the rank of Manager (E-5). 8. In the beginning of the assessment year, the concerned HR department shall circulate the relevant PMS form to the reporting officer for Performance Planning with the respective executives. 9. The reporting officer will then send the PMS form to each executive reporting to him with a covering letter inviting him to participate in the performance planning process indicating time and venue and requesting the executive to complete the relevant sections of the form prior to the meeting . 2. Identifying KPAs -

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1. The table entitled “Dashboard of the Key Performance Areas” (Part IA) is the summary of the

detailed KPAs to be filled up by the executives after discussion with reporting officer.

2. At the beginning of the year, relevant KPAs are identified using the KPA Directory as a reference tool. KPAs may be enhanced or modified depending upon the business/ functional plans for the relevant year as well as the specific role of the individual after discussion with the reporting officer. 3. The KPAs should be cascaded in an open and transparent manner with each reporting officer sharing his/ her KPAs and targets with all the executives reporting to him/ her. 4. The KPAs thus identified are written down in the column provided for “KPA Index” in the table in Part IA. Total marks to be allocated to each item in the KPA index is agreed between the reporting officer and the executive and assigned accordingly 5. The marks provided in the KPA Directory are indicative only and may be modified in consultation with the reporting officer. 6. The column for “Marks Obtained” is filled up only at the end of the assessment year. Identifying KPA constituent and measures 1. Once the KPAs are identified, their constituents, measures and targets are also identified from the KPA Directory. These are agreed upon between the reporting officer and the executive at the beginning of the assessment year. 2. The table entitled “Details of KPA” provided for detailing the constituents of the KPA index agreed upon. These are filled under the column “Constituents of KPA”. 3. The measures identified for each constituent are written down in the column provided for “KPA Measures”. A single constituent may have more than one measure, if necessary. 4. Total marks to be allocated to each of the KPA constituents are agreed between the reporting officer and the executive. These are filled against the relevant KPA constituent. The sum of the marks provided to the KPA constituents should be equal to the Total Marks allocated to the KPA Index. 5. The constituents, measures and marks provided in the KPA Directory are guidelines and may be modified by the reporting officer in consultation with the executives (the changes

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may be aligned as per business/ functional plans, focus areas, priorities of the management, unit/ department level goals etc.). 6. Each KPA constituent has three levels of targets which is to be decided jointly by the reporting officer and executive:  The “Stretch Target” indicating a degree of difficulty built into the target requiring extra efforts for achievement of the same, such as controllability, skill requirement, innovation and so on.  The “Intermediate Target” indicating performance expectation based on efforts and skills at a generally acceptable level.  The “Base Target” indicating the minimum acceptable level of performance in order to obtain a score on the KPA. 7. At the beginning of the year, the reporting officer and the executive sign off the agreed KPA targets in the space provided in Part IA of the PMS Form. After the targets are agreed, the relevant column in the table is filled. 8. At this time, the reporting officer and the executive discuss in detail the identification and allocation of the various resources required by the executives (manpower, budget, tools, training etc...) to achieve the targets. 9. The columns for “Actual Target Achieved” and “Marks Obtained” are filled at the end of Assessment Year.

Identifying Functional Competencies 1. Functional Competencies are those that are required for success in a particular function or job and typically involve demonstrating technical/ functional knowledge/ skills/ expertise. 2. In the beginning of the year, the reporting officer in consultation with the executive identifies the functional competencies applicable for the executive from the Functional Competency Directory. The Functional Competency Directory provides functional/ technical and cross functional competencies for executives at various levels and across various departments.

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3. The competencies thus identified are written in the column provided for in the table (Part II A of the PMS form). At least five competencies (including functional and crossfunctional) must be identified. 4. The reporting officer and the executive sign off the functional competencies in the space provided in Part II A of PMS form at the beginning of the year. Identifying Managerial Competencies 1. Managerial Competencies are those that are essential for the business to achieve its strategy and typically involve behavioral descriptors. 2. A set of managerial competencies is provided in Part II B of the PMS form. Descriptions of each competency as applicable to a particular level are available in the annexure to this policy document. 3. Six competencies are to be assessed of which three have been identified as mandatory for that level. 4. The reporting officer and the executive need to identify three additional managerial competencies from the given set of optional competencies at the beginning of the year by placing a tick mark against those that the executive would be evaluated on at the year-end. These competencies are to be chosen based on the responsibilities and demands of the executive’s current job. The remaining optional competencies should be crossed out for clarity. 5. The chosen optional competencies should be directly and significantly related to the executive’s area of responsibilities. 6. The total managerial competencies on which the executive will be assessed would thus be six. 7. The reporting officer and the executive sign off on the managerial competencies in the space provided in Part IIB of the PMS form at the beginning of the year. 3. Mid Year Review 1. The concerned HR department shall resubmit the PMS form to the reporting officers for Mid-Year Review with the respective executives.

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2. The reporting officer will send the PMS form to each executive reporting to him with a covering letter inviting him to participate in the Mid-Year Review indicating time and venue and requesting the executive to complete the relevant sections of the form prior to the meeting. 3. The reporting officer and the executive jointly review the performance in the Mid Year Review as per the schedule mentioned in the PMS Calendar. Mid-Year Assessment 1. The executive completes the self evaluation section where he/ she highlight achievements to date. Further, he/ she indicate roadblocks and issues faced as well as efforts met by him/ her to overcome them including help/ assistance obtained from the reporting officer. 2. The reporting officer records progress and performance in the space provided for “Comments of Reporting Officer”. The comments should include feedback on KPA progress, functional competencies managerial competencies, potential competencies and core values actualization. 3. Both the reporting officer and executive set aside sometime to discuss the achievements and issues highlighted by the executive. The Mid-Year Review is an important opportunity for the reporting officer to provide feedback on the performance to date. 4. The reporting officer and executive sign off Part IB of the PMS form as an agreement to the amendment and comments in the Mid-Year Review.

Alteration of KPAs during Mid-Year Review Submission of PMS Form after Mid-Year Review 1. After completion of Mid-Year Review, the reporting officer shall submit the completed PMS form to the concerned HR within the deadlines set in the calendar. 4. Annual Assessment

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Re-submission of PMS forms for Annual Assessment 1. The concerned HR shall trigger the process of completion of Annual Assessment through resubmission of PMS forms to all reporting officers. 2. The reporting officer will send the PMS form to each executive reporting to him with a covering letter inviting him to participate in the Annual Assessment indicating time and venue and requesting the executive to complete the relevant sections of the form prior to the meeting. 11. Guidelines for Annual Assessment of KPAs (Refer to Part-1A of PMS form) 1. The Annual Assessment starts with the “Details of KPA” table in Part-1A. If the KPA targets have been revised during the mid-year review .then the final review for KPA starts with “Details of KPA” table in Part-1C. 2. The Actual Target achieved by the executive against the KPA constituent is written by the executive in the column “Actual Target Achieved”. 3. Depending upon whether the target achieved is “Stretch”. “Intermediate” or “Base” level, the marks are proportionately indicated in the “Marks Obtained Column” by the reporting officer. Pro-rata calculation for marks to be awarded is to be carried out based on the exact/actual target achieved as show in the example below.

KPA Index (Marks)

Constituents Of KPA

KPA Measures

M arks Performance of Cons titue nts Stretch Target

Target

Interm ediate Target

of Actual Target Achiev ed

Marks Obtained stretch=100% of Marks Intermediate=80% of Marks Base=60% of marks

Base Target

-

33

Cost (20)

Reduction % in Department reduction Overheads

20

5% and 3% Above and Above but below 5%

2% and If 3% Above but If 6% below 3% If 2.5% If1.5%

16(80% of marks 20) 20 (100% of marks 20) 14(70% of marks 20.calculated rate) 0

12. Guidelines for Assessment of Functional /technical Competencies 1. The reporting officer rates the executive on each functional/technical competency which had been identified and recorded in the form at the beginning of the year. 2. The competencies are assessed on a 4-point scale as indicated in the PMS form. Description of the found in the annexure to this policy document. 3. The aggregate marks are arrived at by adding all marks scored for the different competencies. 4. The reporting officer and executive sign off Part-2A of the PMS form as an agreement on the assessment of the functional competencies for the executive. 13. Guideline for Assessment of Managerial Competencies 1. The reporting officer shall discuss each of the mandatory and the optional (as selected at the beginning of the year) managerial competencies with the executive and assign the rating on the form. 2. The competencies are to be evaluated on a four point scale as indicated in the PMS form by referring to the detailed behavioral description for each managerial competency. 3. The aggregate marks are arrived at by adding all marks scored for the six managerial competencies. 4. The reporting officer and executive sign off Part-2B of the PMS form as an agreement on the assessment of the Managerial competencies for the executive.

-

34

total total total pro-

14. Guidelines for Assessment of Core Values. (Refer to Part-3 of PMS form) Adopting of the company Core Values in business dealings is an essential duty of executives at all levels. 1. All executive have a major role in the actualization of Core Values by being Role Models in observing and practicing them and thereby leading by example. 2. Value actualization is assessed by observing the demonstrated behavior of the executive in day to day business dealings. 3. NTPC Corporate Core Values of “COMIT” and the indicative observable behavior are provided in the annexure to this policy document. 4. Core values assessment is to be done at the end of year on a four-point scale as indicated in the PMS form. 5. At the year-end the reporting officer shall discuss each of the value description with the executive and indicate the rating on the PMS form. 6. The aggregate marks are arrived at by adding all marks scored for different core values. 7. The total marks obtained for the section is calculated by using the formula provided. 8. The reporting officer and executive sign off Part-3 of the PMS form as an agreement on the assessment on Core Values of the executive.

15. Guidelines for Assessment of Potential (Refer to Part-4 of PMS form) 1. Potential appraisal helps in understanding the extent to which the executive is demonstrating competencies of higher levels. 2. Evaluating these competencies will help in appreciating the preparedness/suitability of the executive for higher responsibilities along the hierarchy. 3. The prescribed potential competencies for a particular level are printed in the PMS form for the particular level. 4. The desired behavioral descropots for each potential competencies are provided in the annexure to this policy document. 5. The competencies are evaluated annually on a 3-Point scale as indicated in the PMS form during the year–end assessment. 6. The reporting officer shall discuss each of the competencies with the -

35

executive and plot the rating on the form. 7. The aggregate marks are arrived at by adding all marks scored for different competencies. 8. At the end of the assessment year, the reporting officer and executive sign off Part-4 of the PMS form as an agreement on the assessment on the potential appraisal of the executive. 16. Guidelines for Completing the Special Achievement Section (Refer to Part-5 of PMS form) 1. Special Achievement of the executive during the year are to be recorded in this section. 2. These achievements could be handling emergency situations, process improvements, mentoring, in-house training faculty, winning awards , representing NTPC , writing white papers, office bearer of NTPC councils/forums/committees , suggestions made , participation in crossfunctional teams , professional circles., NOCET, representing NTPC is competitions like quiz , management games , acquiring additional qualifications etc., acquiring special competences etc, that are not covered by the executive’s KPAs. 3. After highlighting these achievements, the reporting officer and the executive sign off on this section.

17. Summary of Scores (Refer to Part-4 PMS form) 1. At the end of the assessment year after completing each of the parts of the PMS form, the reporting officer summarizes the total of each part of PMS form in the column “Marks Obtained” in Part-4A of the form. 2. The “Total Marks Obtained” is the marks obtained in each section of the PMS form. 3. The PMS form duly signed by the executive and the reporting officer is then submitted to the Reviewing Officer for discussion, comments and approval. 4. The Reviewing Officer shall go through the performance of the executive in totally as finally brought out by the reporting officer indicating details of marks obtained under each section: Performance, Competencies, Core Values and Potential, before offering comments if any. 5. If reviewing officer feels the necessity of reviewing the appraisal of the executive, -

36

then there should be a detailed discussion with the reporting officer on each of the components of the PMS form. 6. After arriving at a fair decision and accounting for the views of reporting officer, the Reviewing Officer may offer comments and rationale for changing the scores in the relevant column under Part-4B of the form. 7. After discussion and mutual consent, the reporting officer and Reviewing Officer will duly sign the PMS form. 8. The completed PMS form of the executive is sent to the HR department who will convene the Performance Management Committee for normalization. 18. Guidelines for Completing Individual Training and Development Plan (Refer to Part-4 of PMS form) PMS provides the opportunity to capture the development needs of the executive in the Individual Development Plan. The ratings in the functional and managerial competencies provide the basis for identifying the training and development needs of the executive 1. The development needs identified should be such that they facilitate the executive in immediate performance. 2. The reporting officer should identify specific competency gaps based on competency assessment and potential assessment (Part-2 and Part-4, respectively) and suggest developmental initiative /training and time frame for the same. 3. At the end of the assessment year, the reporting officer and executive sign off part-7 of the PMS form as an agreement on the Individual Development Plans for the executive for the next period. 4. After receipt of completed PMS forms, the concerned HR would arrange all the part-7 forms and send the same to: HRD/EDC group in respect of units. HRD groups in Regional HQ/subsidiaries/JVCs PMI in respect of Corporate Centre 5. The concern HRD/EDC/PMI would use these forms as an input for them to develop the training calendars and design appropriate training programmes for the following year.

Roles and Responsibilities Role of Executive •

The executive shall fill out appropriate portion of the form, attend the PMS meeting all stages (performance planning, mid-year review and annual assessment).

•

The PMS aims at creating amity and convergence of individual and organizational goal and it should be taken in that spirit. -

37

The executive is required to show the necessary flexibility and adaptability to the organizational need and display system discipline through adherence to all PMS requirements. Role of Reporting Officer  The reporting officer shall cascade the KPAs based on MoU targets to the executives reporting to him in a fair and achievable manner with necessary stretch for individual excellence.  The reporting officer should set up performance planning, mid year review and annual assessment meeting with all the executives reporting to him within the specified period as per the PMS calendar.  The reporting officer shall maintain a brief log of all critical incidents occurring within his scope of work as an aid to memory while completing the mid year review, annual assessment and giving feedback to the executive.  The reporting officer shall carry out PMS scores of all executive reporting to him in an objective manner and such that the scores are distributed in a manner officer or the Performance Management Committee.  In the event of change of KPAs, measures, targets etc., the reporting officer is required to obtain clearance from Reviewing Officer prior to making the change.

Role of Reviewing Officer  The reviewing officer shall go through PMS forms for all executives under his purview and ensures that the reporting officer has been objective and unbiased in his scoring of various executives, particularly with respect to the sections relating to Competencies, Values and Potential.  Where required, the reviewing officer may recommend some changes to the scores after carrying out a detailed discussion with the respective reporting officer.  The reviewing officer shall also carry out an integrity check to ensure that the Performance Management Committee distributes the scores awarded to all the executives under his/ her purview in a manner requiring minimum normalization. -

38

 Where an executive has a grievance against the reporting officer regarding the PMS process, the reviewing officer shall intervene and settle the grievance in a fair and objective manner.  The reviewing officer shall also be responsible for ensuring “stretch targets” for executives under his charge.  The Reviewing Officer shall cascade the KPAs in an open and transparent manner with each reporting officer by sharing his KPAs and targets.

Role of PMS Officer  A PMS Officer would be designated for each location (plant/ project/ region/ corporate).  The PMS Officer would be responsible for implementing PMS as well as for periodic administration; follow-up, tracking and analysis of PMS activities as per schedule in his/ her respective location.  To ensure collection, collation and forwarding the Individual Development Needs forms to the concerned EDC/ Regional HRD/ PMI.

5

Normalization Process

Key Elements of the Normalization Process  Executives would be normalized within a cluster with a population of at least 15 executives.  Depending upon the level, location and the number of executives in the given level/ function, executives would be normalized either at the plant, Regional Headquarters or Corporate Centre level.  Corporate HR would notify the composition of clusters at each grade from time to time. -

39

 In respect of executives on secondment/ lent to subsidiaries/ JVCs, normalization would be done in respective entities.  The Performance Management Committees comprising cross-functional members specifically set up for the purpose would do normalization.  The Performance Management Committees would be the highest level of decisionmaking body for PMS for the respective level and cluster as the final accepting authority.  Constitution of the clusters and Performance Management Committees has been defined as part of the PMS policy.  If some clusters need to be merged due to lack of minimum quorum within the cluster, such merged clusters should be put up for approval by the concerned PMS Officer with the concurrence of the respective GM or ED to Corporate HR.  The authority to chance the cluster composition across the organization at all levels rests solely with GM, Corporate HR. Output from the Normalization Process At the end of the process, all executives within a cluster would be categorized into the following categories: •

Top 20% of the cluster

•

Middle 70% of the cluster

•

Bottom 10% of the cluster

Performance Result The performance scores finalized by the Performance Management Committee and the categorization at the end of the normalization process are final. They are not liable for any revision and change later. Normalization Steps 1. The Performance Management Committee should normalize the performance of executives within a cluster in the context of the overall performance of the unit/ department vis-à-vis -

40

the targets laid out in the MOU, unit plans and functional plans for the year to ensure that individual performance assessments are in alignment with overall unit/ department achievements against targets. 2. The Performance Management Committee plots the distribution of the scores for the cluster to determine whether there is any skewing towards higher or lower scores in any of the departments vis-à-vis the other departments within the cluster. 3. Checks are made for data incompatibility resulting in skewing of scores. The data integrity checks could be on the following areas: •

KPA Target  Whether targets have been set at equally challenging levels across departments.  Whether “stretch targets” are truly stretch within a department.

•

Competencies  Whether ratings have been very generous.  Whether competencies (functional/ technical or managerial) have been assessed reasonably i.e., at “Meets Expectations” level.  Whether too many executives in a department have been overrated (or underrated) on competencies (exceeds expectations).  Whether certain executives have been overrated (or underrated) consistently on all the functional and managerial competencies.

•

Core values  Whether rating have been very generous.  Whether too many executives in a department have been overrated (or underrated) on core values.  Whether certain executives have been overrated (or underrated) consistently on all the core values.

•

Potential  Whether ratings have been very generous.  Whether too many in a department have been overrated (or underrated) on potential competencies. -

41

 Whether certain executives have been overrated (or underrated) consistently on all the potential competencies. 4. After checking the integrity of the above data, the Performance Management Committee makes suitable adjustments in the scores in the relevant sections of the concerned individuals. 5. If the reviewing officer is not part of the Performance Management Committee, than if required, the committee may call the reviewing officer to discuss the scores or evaluation carried out for a particular executive. 6. The final scores and the reasons for adjustments, (if made), are documented in the PMS form in the section provided. An indicative list of reasons for PMS score adjustment is provided in the Annexure. 7. After the above steps, executives within each cluster will be categorized into Top 20% of the cluster, Middle 70% of the cluster and Bottom 10% of the cluster. The normalization process would be iterative until the above categorization is achieved. 8. The consolidated list of executives categorized as above for all members of the respective Performance Management Committee will sign each cluster together with the final score for each employee. 9. The concerned HR would facilitate the entire process of normalization in the role of a convener. 10. Individual PMS forms of executives would be signed by the Member Convenor of the respective PMC as per the table below:

Level E1-E5 E6 E7 and Above

Location For Plant For Region For Corporate Center For plant and Regional Headquarters For Corporate Center For Plant, Regional Headquarters

Member Convenor Head-Plant HR Head-RHQ HR Head-HRD (Promotion Group) Head-RHQ HR Head-HRD(Promotions Group) ED-HR and

Corporate Center For all Executives For NTPC subsidiary/ JV under NTPC Concerned Head of HR Levels

management -

42

6. Communications and Feedback of Scores 1. After the process of normalization of the scores is completed, the Performance Management Committee hands over all the PMS forms to the respective HR department. 2. HR then consolidates final scores, relative rankings and feedback from the Performance Management Committee for all executives. 3. HR prepares a summary sheet of score, relative ranking and feedback from Performance Management Committee for the executives under each reporting officer along with the individual Feedback forms, duly filled and sends the same to the reporting officers. 4. The concerned reporting officer signs off the individual feedback forms as per the summary sheet provided by HR and hands over the same to the executives in order to communicate the final score, relative ranking and the feedback.

7. Administration of PMS 1. Executive Directors and General Managers will facilitate implementation of PMS by monitoring progress, removing any difficulties or roadblocks and ensuring completion of assessments and submission to HR as per the dates provided in the PMS calendar for their respective Units/ Departments/ Regions 2. The concerned business unit head/ functional head should cascade his KPAs to the executives reporting to him based on MOU targets for that year with suitable stretch targets to ensure organizational excellence. This process may be finalized in an SMC meeting/ departmental of group heads meeting as the case may be, which is to be held in the second half of March of each assessment year. 3. The primary responsibility for filling up the PMS form and setting the progress in the motion rest jointly with the reporting officer and the executive as per the time frame provided. 4. Any difficulty or difference that may rise between the reporting officer and the executive in the process of implementation of the system would be sorted out through the intervention of the Reviewing Officer. If the executive is still not satisfied with the decision of the Reviewing -

43

Officer, especially in the case of annual assessment and/or the final score awarded by the PMC, then the concerned executive may place his case before the next higher authority above the PMC. In the case of E1-E5level executives, since the PMC includes the GM of the plant, the final authority to settle the issue will rest with the ED, Region. Similarly for executives where normalization is being done at the level of ED, Region, the executive may approach the concerned Functional Director and where the PMC consists of functional Director, the final authority to settle the grievance will rest with the CMD. 5. If any executive dose not participate in the PMS process (setting of KPAs, attending mid year review or annual assessment meetings, filling relevant sections of the form etc. on time) despite being given ample opportunity to do so, the reporting officer has the authority to complete the form in absence of the executive and forward the same to the Reviewing Officer indicating the non -participation of the executive. The Reviewing Officer may offer an opportunity to the executive to be head. Having verified that indeed the executive has voluntarily decided not to participate in the process despite being given sufficient opportunity, the Reviewing Officer forwards the form to HR, duly completed and with his approval of the process followed under the circumstances. 6. In the event of the creation of a new role or department, the concerned HR department will develop KPAs and Functional Competencies for that particular role/department in consultation with the respective head of department. Also, if for an existing role, new competencies/KPAs were required to be added, the concerned HR department would compile the same in consultation with the respective head of department. Such new role or competencies defined should be validated with Corporate HRD. 7. The key role in HR department in the PMS administration is to: Issue PMS forms as per schedule • Collect forms as per schedule •

Monitor adherence to dates

•

Highlight non- compliance/exception to top management

•

Sent copy of Individual Training and Development Plan to concerned HRD/EDC/PMI

•

Convene Performance Management Committee meetings

•

Consolidated feedback, final scores and relative ranking of all executives

-

44

•

Prepare “Final Score Feedback Form” for each executive and provide to respective reporting officer.

8. The responsibility across various level and location for PMS administration lies with the PMS Officer, so designated at each Plant, Region and Corporate. 9. Convening responsibility of the Performance Management Committees is as provided in the table below:

Level E1-E5

E7 and above

Location For Plant For Region For Corporate Center For Plant and Regional Headquarters For Corporate Center For Plant, Regional Headquarters and

Member Convenor Head-Plant HR Head-RHQ HR Head-HRD (Promotions Group) Head-RHQ HR Head-HRD (Promotions Group) ED-HR

For all Executives

Corporate Center For NTPC subsidiary/ JV under NTPC

Concerned HR

Level

management

E6

Transfers Executive and/ or reporting officer transferred during assessment year: a) If the executive or the reporting officer has spent less than three months of the assessment year prior to transfer from the department, then no assessment needs to be carried out for the executive for that period by that reporting officer. Fresh KPAs will have to be issued by the new reporting officer in the new department/ location and these will form the basic of executive’s annual assessment for that year, which will be done solely by the new reporting officer. The new PMS form will provide the total score for normalization only and the normalization cluster would be based on the executive’s new position.

-

45

b) If the executive or the reporting officer has spent more than three months of the assessment year prior to transfer from the department than an assessment must be carried out for the executive duly signed off by the reporting officer for the relevant period followed by a review of the same by the Reviewing Officer. Fresh KPAs will have to be issued by the new reporting officer and the executive’ annual assessment for that year will comprise both the old as well as the new PMS form, duly signed off by the respective reporting officers. The total score for normalization will be provided by both the PMS forms proportionate to the amount of time spent in each department. The normalization cluster would be based on the executive’s new position. Executive Promoted During the Year a) Executive promoted during the assessment year would be issued new PMS forms, if promotion is accompanied by the change in the role –brand or change of job responsibility or transfer. b) If an executive is promoted within the same role band and continues to remain in the same department under the same reporting officer with substantially the same responsibilities and KPAs, then the existing PMS format will continue to be used. At the end of the year, he is assessed on the same KPAs and the total score for normalization purpose is also derived from it. The executive will be normalized in the cluster applicable after promotion. If the same responsibilities are added as a result of promotion, the same can be incorporated in the PMS format during the Mid -Year Review. c) If an executive is promoted along with the change in the role band, then a fresh PMS form will have to be filled appropriate to the role band and fresh KPAs will be agreed upon. Furthermore, the executive will be normalized in a cluster as per his new grade and function. The total score for the year would be calculated using the same 3-month minimum service principle as in 7.1.1 above. The respective HR department have to ensure that PMS form are filled and signed off if an executive has served for a minimum period of three months either in the location or under a particular reporting officer or within a role band. The released order for the -

46

executive/reporting officer will be issued subject to be fulfillment of this. Thereafter, HR needs to coordinate with the other HR department where the executive has been transferred to communicate the proportionate weightage of total score to be used for calculating the final score.

-

47

METHODOLOGY SAMPLING: The required data in personnel research is obtained by selecting random sampling method. Under the sampling method data are collected from a part of executive (sample size of 45 out of 472) and on the basis of this data conclusion are drawn for the whole population of executives.

-

48

We have adopted sampling, which is relevant for this survey. In random sampling the researcher select executive randomly in each departments. A random list of executives is prepared list. METHODS OF DATA COLLECTION: The task of data collection was based on the data provided by the officials of the NTPC. SOURCE OF DATA PRIMARY DATA: It is the pure source of information. It includes direct flow of informations and data.this type of information is well trusted and certified because of no intermediaries and biasness. My survey was totally based on primary data collection. SECONDARY DATA: Secondary data means data that is already available i.e. they refer to the data which have been collected and analyzed by someone else. Secondary data may either be published data or unpublished data. Available manuals and personnel files have been used as secondary data. Secondary data has been collected by the company’s record files, past records, magazines etc. these are collected on the matters such as history of organization, financial growth, networks work force, management structure and Human Resource Development Programme

-

49

PMS Questionnaire ON A-5-POINT SCALE, PLEASE RATE THE FOLLOWING QUESTIONS. A B C D E Strongly Agree Neither Agree Disagree Strongly Agree Disagree Nor Disagree

-

50

1. I am aware of all the rules & guidelines regarding filling up of the PACE forms and their assessment. ( ). 2.

I look forward to the PACE process each year.

3. (

(

).

The PACE process directly contributes to effective achievement of goals. ).

4. The KPAs (Key Performance Area) reflect my actual work responsibility. ( ). 5. I do not have any problem in qualifying my targets. (

).

6. The stretch targets set in KPA are often out of reach practically. )

(

7. I have access to MOU, Business Plan, Departmental Plans and other documents for facilitating my target setting. ( ). 8. My boss gives enough time and support and we discuss on targets & performance with him in detail. ( ) 9. People in my department are given marks purely on their merit and not based on some other considerations. ( ) 10. I have the resources available at my disposal for achieving my targets. ( ) 11. PMS system is implemented in a fair & impartial manner.

(

)

12. The competencies identified in the PMS are in line with any my requirement. ( ) 13. I m given feedback regarding my performance by my boss at the end of the performance cycle. ( ) 14. The actual change necessary for the successful implementation of PACE are at available in NTPC. ( ) 15. I think that the preview Confidential Rating (RC) system was superior to PACE. If Yes or No, why

-

51

AgeQualification-

DeptExperience-

Grade/Level-

-

52

Sample collected: 45

Que 1: I am aware of all the rules and guidelines regarding filling up of the PACE forms and their assessment.

-

53

A: Strongly agree (7) B: Agree (30) C: Neither agree/ nor disagree (7) D: Disagree (0) E: Strongly disagree (1)

15.4%

2.2%

15.4%

A B C

66%

D E

-

54

Que 2: I look forward to PACE process each year. A: Strongly agree (3) B: Agree (21) C: Neither agree / Nor disagree (17) D: Disagree (3) E: Strongly disagree (1)

6.6% 36.4%

2.2% 6.6% A

43.2%

B C D E

-

55

Que 3: The PACE process directly contributes to effective achievement of goals. A: Strongly agree ( 4 ) B: Agree ( 10 ) C: Neither agree /Nor disagree (19) D: Disagree (9) E: Strongly Disagree (1)

20.8%

2.2%

8.8%

A

22%

B C

41.8%

D E

-

56

Que 4: The KPAs (Key Performance Area) reflect my actual work responsibility. A: Strongly agree (4) B: Agree (18) C: Neither agree / Nor disagree (16) D: Disagree (5) E: Strongly Disagree (0)

11.2% 34.2%

8.8%

A B

38.6%

C D E

-

57

Que 5: I do not have any problem in qualifying my targets. A: Strongly agree (2) B: Agree (28) C: Neither agree / Nor disagree (8) D: Disagree (4) E: Strongly disagree (1)

8.8%

2.2% 4.4% A

20.6%

B 58.6%

C D E

Que 6: The stretch targets set in KPAs are often out of reach practically.

-

58

A: Strongly agree (1) B: Agree (7) C: Neither agree/ Nor disagree (20) D: Disagree (14) E: Strongly disagree (2)

30.8%

4.4% 2.2 %

A B

15.2%

C D E

42%

Que 7: I have access to MOU, Business Plan, Departmental Plans and other documents for facilitating my target setting. A: Strongly agree (1) B: Agree (17) C: Neither agree / nor disagree (17) D: Disagree (8) -

59

E: Strongly disagree (2)

17.6%

4.4%2.2%

A B

36.4%

C D E

36.4%

-

60

Que 8: My boss gives enough time and support and we discuss on targets and performance with him in detail. A: Strongly agree (5) B: Agree (16) C: Neither agree / nor disagree (13) D: Disagree (6) E: Strongly disagree (5)

14.2%

11%

11%

A B C D E

34.2% 28.6%

-

61

Que 9: People in my department are given marks purely on their merit and not based on some other consideration. A: Strongly agree (3) B: Agree (17) C: Neither agree / nor disagree (15) D: Disagree (7) E: Strongly disagree (3)

6.6%

6.6%

A B C D E

16.4% 36.4% 18%

Que 10: I have the resources available at my disposal for achieving my targets. A: Strongly agree (1) B: Agree (21) -

62

C: Neither agree / nor disagree (18) D: Disagree (5) E: Strongly disagree (0)

11%

2.2%

38.6%

A B C D E

43.4%

Que 11: PMS system is implemented in a fair and impartial manner. A: Strongly agree (3) B: Agree (9) C: Neither agree / nor disagree (20) -

63

D: Disagree (8) E: Strongly disagree (5)

11%

6.6%

A B C D E

20.8%

17.6% 44%

Que 12: The competencies identified in the PMS are in line with my job requirement. A: Strongly agree (2) B: Agree (21) C: Neither agree / nor disagree (16) D: Disagree (3) E: Strongly Disagree (3) -

64

6.6%

6.6%

4.4%

A B C D E

46.2% 35.2%

Que 13: I am given feedback regarding my performance by my boss at the end of the performance cycle. A: Strongly agree (8) -

65

B: Agree (22) C: Neither agree / nor disagree (10) D: Disagree (2) E: Strongly disagree (3)

4.4%

6.6%

18.6%

A B C D E

22% 48.4%

-

66

Que 14: The change of management necessary for the successful implementation of PACE has been successful in NTPC. A: Strongly agree (3) B: Agree (13) C:Neitheragrees/nordisagree(20) D: Disagree (5) E: Strongly disagree (4)

11%

8.8%

6.6%

A B C D E

28.6% 44%

-

67

Que 15: I think that the preview Confidential Rating (RC) system was superior to PACE. Yes or No. A: Yes (30) B: No (15)

33.3% 66.7%

A B

-

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CONCLUSION The main reason behind selecting this topic was to get acquainted with the practice aspect of performance management system that is followed in NTPC. After analyzing the questionnaire, and personal interview, I came out with the conclusion that there are no frequencies in the system. • • • • • • • • •

The main thing, I got that most of the employees are having some satisfaction and few are not satisfied of PMS in NTPC. Finally I found that satisfaction levels of employees are very high in these follows PMS Aware of all the rules & guidelines KPAs reflect my actual work responsibility. Don’t have any problem in quantifying targets. Access to MOU, Business Plan, Departmental Plans for facilitating target setting. The resources available at my disposal for achieving targets. The actual change necessary for the successful implementation of PACE are at available in NTPC. Given feedback regarding my performance by boss at the end of the performance cycle.

-

69

SUGGESTION

My suggestions are based on the response received and discussed with employees for improvement PERFORMANCE MANAGEMENT SYSTEM, salient suggestion of employees are: •

There should be evaluating the potential of the executive to assume higher responsibilities in the organization.

•

They should be translating future skill requirement of the organization into individual development plans.

•

To provide a source of talent for meeting the organization’s growth requirements through a process of mapping the competencies and potential of executives.

•

PMS should be further aligned with the organizational goals.

•

Change Management techniques should be used for effective implementation of the PMS System in NTPC.

•

Culture of frank feedback should be created.

•

Employees at the higher level should be given suitable training to act as Performance Coaches.

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LIMITATION Some problems I faced while completing this project report are:  Few Employees were not present at the time when I went for survey, so I could not take a large numbers of samples.  Due to shortage of time I could not do detailed survey so the actual data is not written in the project report.  Many employees did not give correct answer of some questions and something were kept confidential.  Some respondent did not show interest in survey and they ignored my effort.  Only five employees attempt my last question which was: Would you like to give some suggestion to the organization for employee benefits?

-

71