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NTPC Towards becoming an Employer of Choice

This is the 35th year of operations for the INR 49,478.86 crore power major, and it is on a path of exponential growth. NTPC recently was the recipient of the SCOPE Meritorious Award for Best Practices in HRM. Diptiman Dewan, in a candid chat with Mr. R.C. Shrivastav, Director-HR at NTPC, finds out how the company has become a great place to work.

NTPC has sound people-policies as the base of its 25,000 strong workforce, whose toil and dedication makes it one of the market leaders in power generation (28.6 % of total electricity generated in 2009-10) in the country. Mr. Shrivastav, believes that the company has always put employees first, “In the Public Sector, NTPC’s policies have become a best-practice to be followed. Right from recruitment to training, retention and up gradation of employees, we make sure employee welfare is first - it is paramount for the organisation. It has become a model that is followed.”

The PMS (Performance Management System) of NTPC is like a benchmark that has been followed across the board. It begins with transparency brought in to the appraisal system from an erstwhile CR (Confidential Report) to a two-way method where the appraisee and appraiser discuss the process to ensure both are on the same page. Following this is a review and rationalisation process which ensures that the ratings are rationalised across the appraisers, to do away with any unnecessary advantages (or disadvantages) arising out of uneven ratings from more than one appraiser. The results of the appraisal - KPI’s, competencies, values, et al. are communicated in writing to the employees and is finally linked to the annual performance related pay (PRP). Finally, an appeal procedure is also put in place, to cater to those dissatisfied with the results of the appraisal.

On the topic of dealing with a large workforce comprising of what has been traditionally known as the blue and the white collared workers, Mr. Shrivastav says there is no such distinction in NTPC. “It is all about teamwork. Of course the worker will be supervised by a senior level person but there is no such marked difference. Our industry does not have distinction as you find in the manufacturing or the auto industry, for example.”

The organisation builds well laid out residential townships for its employees whether it be located in a rural or urban area, in an effort to provide the best of amenities for the employees. From a secured periphery, facilities for education for the children, recreational facilities, electricity and water supply, maintenance, et al., the organisation ensures that employees are provided what they require to live a comfortable life with their families. At the same time, career advancement opportunities to aspire for, learning opportunities like MTech in IIT’s, MBA’s etc. including a mandatory 7-day training for employees are in place, all a part of the HR efforts towards employee satisfaction and development.

This is an organisation where even today, people join and remain with the organisation till retirement. Benefits like unlimited medical benefits for the employee and spouse post-retirement, educational loans at marginal interest for the children, etc. also go a long way to ensure the sense of security and belongingness. The culture of the organisation too, is entwined around the very Indian spirit of celebration. Every event, small or big, is celebrated by the employees in full jest.

Honing leaders and creating a succession pool starts from the middle management level in NTPC. Employees in the managerial level across the organisation, having spent almost a decade, have to undergo an assessment centre. This is repeated as the employee crosses higher managerial grades. The assessment centre ratings are compared at different stages, and people get selected for further leadership roles on specific verticals. Each of the senior positions which are responsible to head a vertical or function, have a pool of between 5 to 10 candidates lined up - a very robust policy indeed. Also in place is a Leadership Development group which works exclusively on leadership development in the organisation and keeping a tab on leadership development.

The organisation also functions with the belief that the HR function, though proper recruitment, training and development planning, employee competency building etc. which ultimately affect retention, goes hand-in-hand with furthering the business goals and helps the company as a whole to enhance business effectiveness and deliver results. “Robust practices with proper execution is what delivers credibility to HR and helps it to be regarded as a business partner to the chief executive”, opines Mr. Shrivastav. HR also comes into picture in being able to pick up the signals, making the necessary changes and in understanding the general health of the workforce, through analysis of results of the surveys that the organisation conducts through registered agencies like KPMG, etc. Attrition figures of 0.53 which have not crossed the 3 percent mark even at its peak in NTPC, is ample proof.

As the market changes, so does the workforce. Today’s new generation of the workforce has its own set of expectations which are higher than what used to be, traditionally. The HR in NTPC sees this more as a need to change and adapt with the times than a challenge. Be it an entitlement to a car, mobile phone or travel by flight, HR helps facilitate the aspirations of the new entrants. Changing and keeping pace with the aspirations of the workforce is what HR is all about. Deliverables change and so do the expectations. But keeping up the motivation of the employees and integrating people is the key, something that NTPC seems to be managing very well. Changes happen, but the fundamentals still remain the same, something that has indeed gone a long way to enable the power major become a great place to work in, and for the workforce to feel proud of belonging to NTPC. Kudos to the team who have really made it happen!

 

  
Mr. R.C. Shrivastav

“Robust practices with proper execution is what delivers credibility to HR and helps it to be regarded as a business partner to the chief executive”

 

 


 


 

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