SUMMER TRAINING PROJECT REPORT

ON

REWARD SYSTEM AND EMPLOYEE SATISFACTIONSURVEY AT NTPC

Submitted for the partial fulfillment of the award for degree of

MBA

UNDER THE SUPERVISION OF

Mrs.Rashi Malhotra

SUBMITTED BY

Sonam Chopra

12319103909

GITARATTAN INTERNATIONAL BUSINESS SHOOL,ROHINI_

AFFILIATED TO GURUGOBIND SINGH INDRA PRASTHA UNIVERSITYDELHI

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Declaration

I, hereby declare that the research project report titled “REWARD SYSTEM AND

EMPLOYEE SATISFACTION SURVEY AT NTPC” is my own original research work

and this report has not been submitted to any University/Institute for the award of

any professional degree or diploma.

(SONAM CHOPRA)

MBA. (III),12319103909

Gitarattan International Business School,Rohini

Date: 14-08-10

Place: Delhi

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ACKNOWLEDGEMENT

First and foremost I would like to thanks NTPC organization and hence Mrs. Rachna

Bahl (DY. MANAGER) to give me a chance to undertake this project in this

organization. Also I hereby take the opportunity to extend my sincere thanks to MS

VEENA MEHTA (officer HR-ES), Mrs S.SRIDEVI (officer HR-EB), and Mrs. MITALI

KONWAR (officer HR-R&W) .They acted as a constant guide and always attended all

my queries with a smile. Moreover, while clearing my queries they always used to add

some extra information related to that query from their vast pool of knowledge. This in

turn always kept enhancing the quality of my project.

I am obliged to Mrs Mitali Konwar (officer HR-ES) for her unobligatory support. She

was always ready to answer any of the queries raised by me during project duration.

I am equally thankful to all other employee of NTPC Badarpur division; all of them were

very supportive throughout the course of my project.

This acknowledgement will be incomplete without mentioning about the support from

my college internal guide Mrs Rashi Malhotra for her guidance and support while

preparing the project report.

Regards

Sonam Chopra

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EXECUTIVE SUMMARY

Human Resource Management (HRM) function in an organization includes variety of

activities and the key among them is deciding what staffing needs you have and whether

to use independent contractors or hire employees to fulfill these needs, recruiting and

training the best employees, ensuring they are high performers, dealing with the

performance issues, and ensuring your personnel and management practices conform to

the regulations. Activities also include managing approach towards employee benefits

and compensation, rewards and retention of employees in the organization.

HR Department acts as an employer of the organization on the behalf of the management.

The functions dealt by HR ranges from recruitment of employees to provide training to

regularize various entitlements of employees, maintaining good relations ,welfare

practices, implementation of various HR initiatives, providing sitting space to the

employees, providing residential accommodation to employees, guesthouses, ladies clubs

liaisons with RWA, participate in various activities concerned with CSR, dealing with

court cases and implementation of official language.

It is divided into subsections:

(1) HR- Employee Services

(2) HR-Employee benefits

(3) HR-Employee Relations and Welfare

Employee Services section provides employees a variety of services in order to help them

in order to help them perform their duties to their level best. The services provided by

this section include House Allotment, Lease, Telecommunications, Dispatch, BTPS Canteen, Furniture and Stationery, Meetings and functions arrangements.

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Employee Benefits section tailors the benefits to both employees and the job as well as to

one’s business requirement and financial capacities. While the most employees are

productive when their pay is tied to their performance, there may be situations where it is

not the case. Age, education, job expenses, marital status and family size are all

considerations that determine attractiveness of the benefit.

Some Benefits: Pre tax thrift saving programs, Recreational Programs, Scholarships,

Loans, Tuition Fee Reimbursements, Profit Sharing, Parking Privileges, Legal assistance,

LTC, Child Care etc.

HR Employee Relations & Welfare, this department handles the matter on industrial

relations and welfare of employees and workers. In conducting industrial relationships,

the management emphasizes on the participative style involving the union for sharing of

information and participation in decision making.

The study was conducted in the Employee Benefits Department, it took into account the

various reward system awards & recognition given to the employees, as the motivation

and thus the performance is affected by the rewards both monetary and non monetary.

Effective reward system increases the performance.

Sample of hundred employees was taken for the study, simple random sampling

(convenient sampling) was used, and the Questionnaire designed included fourteen

questions that aimed to gauge the reward and recognition climate at units/ offices. It was

designed on the principles of Openness, Transparency, Timeliness, Recognition, &

Quantum. It aimed at studying employee perception about the existing reward system

and schemes.

The workers, foremen, executives and and non executives were the part of study. The

detailed analysis , on MS excel sheet was done along with pie charts was done. The

recommendations and conclusion are included in the study. The references are mentioned

in the end.

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INTRODUCTION

Electricity sector in India

The electricity sector in India is predominantly controlled by the Government of India's public sector undertakings (PSUs). Major PSUs involved in the generation of electricity

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include National Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation (NHPC) and Nuclear Power Corporation of India (NPCI). Besides PSUs, several state-level corporations, such as Maharashtra State Electricity Board (MSEB), are also involved in the generation and intra-state distribution of electricity. The Power Grid Corporation of India is responsible for the inter-state transmission of electricity and the development of national grid.

The Ministry of Power is the apex body responsible for the development of electrical energy in India. This ministry started functioning independently from 2 July 1992; earlier, it was known as the Ministry of Energy. The Union Minister of Power at present is Sushilkumar Shinde of the Congress Party who took charge of the ministry on the 28th of May, 2009.

India is world's 6th largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. In March 2009, the installed power generation capacity of India stood at 147,000 MW while the per capita power consumption stood at 612 kWH. The country's annual power production increased from about 190 billion kWH in 1986 to more than 680 billion kWH in 2006. The Indian government has set an ambitious target to add approximately 78,000 MW of installed generation capacity by 2012. The total demand for electricity in India is expected to cross 950,000 MW by 2030.

About 75% of the electricity consumed in India is generated by thermal power plants, 21% by hydroelectric power plants and 4% by nuclear power plants. More than 50% of India's commercial energy demand is met through the country's vast coal reserves. The country has also invested heavily in recent years on renewable sources of energy such as wind energy. As of 2008, India's installed wind power generation capacity stood at 9,655 MW. Additionally, India has committed massive amount of funds for the construction of various nuclear reactors which would generate at least 30,000 MW. In July 2009, India unveiled a $19 billion plan to produce 20,000 MW of solar power by 2020.

Electricity losses in India during transmission and distribution are extremely high and vary between 30 to 45%.In 2004-05, electricity demand outstripped supply by 7-11%.Due to shortage of electricity, power cuts are common throughout India and this has adversely effected the country's economic growth. Theft of electricity, common in most parts of urban India, amounts to 1.5% of India's GDP. Despite an ambitious rural electrification program, some 400 million Indians lose electricity access during blackouts. While 80 percent of Indian villages have at least an electricity line, just 44 percent of rural households have access to electricity. According to a sample of 97,882 households in 2002, electricity was the main source of lighting for 53% of rural households compared to 36% in 1993. Multi Commodity Exchange has sought permission to offer electricity future markets.

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Generation

Grand Total Installed Capacity is 156092.91 MW

Thermal Power

Current installed capacity of Thermal Power (as of 12/2008) is 93,398.84 MW which is 64.7% of total installed capacity.

Current installed base of Coal Based Thermal Power is 77,458.89 MW which comes to 53.3% of total installed base.

Current installed base of Gas Based Thermal Power is 14,734.01 MW which is 10.5% of total installed base.

Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.9% of total installed base.

The state of Maharashtra is the largest producer of thermal power in the country.

Hydro Power

India was one of the pioneering countries in establishing hydro-electric power plants. The power plant at Darjeeling and Shimsha (Shivanasamudra) was established in 1898 and 1902 respectively and is one of the first in Asia. The installed capacity as of 2008 was approximately 36877.76. The public sector has a predominant share of 97% in this sector.

Nuclear Power

Currently, seventeen nuclear power reactors produce 4,120.00 MW (2.9% of total installed base).

: Nuclear power in India

Renewable Power

Current installed base of Renewable energy is 13,242.41 MW which is 7.7% of total installed base with the southern state of Tamil Nadu contributing nearly a third of it (4379.64 MW) largely through wind power.[22]

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NTPC (BTPS)

ORGANISATION’S PROFILEName of the organization; NTPC Ltd. (BTPS)

Founded : 1975

Sector : Public

Industry : Electricity generation

Revenue : INR 49478.86crores

Profit : INR 8656.53crores

Employees : 25000

Website : www.ntpc.co.in

NATIONAL THERMAL POWER CORPORATION LIMITED

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NTPC Limited is the largest thermal power generating company of India. A public sector company, it was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the government of India. At present, government of India holds 89.5% of the total equity shares of the company and the balance 10.5% is held by FIIs, domestic banks, public and others. Within a span of 31 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Based on 1998 data, carried out by DATAMONITOR UK, NTPC is the 6th largest in terms of thermal power generation and the second most efficient in terms of capacity utilization amongst the thermal utilities in the world.

NTPC’s core business is engineering, construction and operation of power generating plants. It also provides consultancy in the area of power plant constructions and power generation to companies in India and abroad. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector, NTPC is extending consultancy services to various organizations in the power business.

NTPC was established as a public sector power utility by Government of India on November 7, 1975. The reason NTPC was created was to bridge the huge electricity supply-demand gap and the State Electricity Boards were not able to cope up with the situation. True to the expectation, it played a key role in the development of the sector, lighting every fourth bulb in the country, become the largest power utility of India, Sixth largest thermal power generator in the World and the Second most efficient utility in terms of capacity utilization. Rightly, NTPC has set for itself the Vision statement “To be one of the world’s largest and best power utilities, powering India’s growth”.

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Originally, NTPC had the responsibility for electricity generation from thermal source and transmission of the same. However, as per the Electricity Laws Amendment Act 1998, when "Transmission" became separate activity, the transmission portion of the Corporation was culled together to form part of the “Power Grid Corporation of India Ltd”. Today, NTPC has diversified interests, ranging from Hydro power generation, distribution, power trading etc. It has also formed joint venture companies with Railways, SAIL, Formerly BSES, TNEB etc respectively for pursuing different business interest.

NTPC's share on 31 Mar 2004 in the total installed capacity of the country was 19.4% (21,749 MW) and it contributed 27.1% (151 Bus) of the total power generation of the country during 2003-04. As on date the installed capacity of NTPC is through its 13 coal based (17,480 MW), 7 gas based (3,955 MW) and 3 Joint Venture Projects (314 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW). NTPC is also managing Badarpur thermal power station (705 MW) of Government of India.

NTPC strongly believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of its over 23,000 employees to fulfill its business plans. The “Personnel & Administration (P&A)” function was re-christened as HR to align the function with the HR Vision of "enabling the people of NTPC to be a family of committed world class professionals making it a learning organisation" and bring sensitivity and human face to the function. It has formulated an integrated HR strategy which rests on four building blocks of HR viz. Competence building, Commitment building, Culture building and Systems building; and all HR initiatives are undertaken within this broad framework.S

From the inception of the Company, the philosophy of NTPC has been to build talent through “Executive Training” scheme of recruitment and induction. Besides the one year training, the new recruits are attached with Senior executives under a systematic and formal 'Mentoring System' of the company. This way, company specific skills can be (has been) developed and nurtured among the employees . Today, more than 50 % of the executive strength in the company is through this talent building mechanism. The Executive trainees are the back bone of Engineering, Chemistry, HR, Finance, IT and Hydro functions of the company.

A systematic Training plan has been formulated for ensuring minimum seven mandays 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 need-based interventions based on scientific Training Needs Analysis. Opportunities for long term education are also provided yo employees through tie ups with reputed Institutions like IIT-Delhi, (M. Tech in Power Generation Technology), MDI-Gurgaon (Post Graduate Diploma in Business Management ), BITS- Pilani (B.Tech) etc.

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Demonstrating its high concern for people, NTPC has developed strong employee welfare, health & well-being and social security systems leading to high level of commitment. NTPC offers best quality of life through beautiful townships with all amenities such as educational, medical and recreational opportunities for employees and their family members. The motivation to perform and excel is further enhanced through a comprehensive NTPC Rewards and Recognition system. A culture of celebrating achievements and a strong focus on performance are a way of life in 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.

Due to innovative people management practices there is a high level of pride and commitment amongst employees as reflected in the "Best Employers in India-2003" survey by Hewitt Associates in which NTPC bagged coveted third rank. Continuous efforts are being made by NTPC to leverage the potential of its employees and become a strategic business partner.

Some of the Awards & Accolades

1. NTPC has been ranked 1st Best Employer in India in the Public Sector Category and 3rd overall as per survey carried out by Business Today & Hewitt Associates.

2. Best Employer National Award for the welfare of persons with disability instituted by Ministry of Social Justice and Empowerment, Govt. of India for year 2003.

3. National Centre for Promotion for Employment for Disabled People (NCPEDP) – Shell Helen Keller award 2002 for promoting employment opportunities to disabled people.

4. Platts Global Energy awards 2002 for commitment to community development.

5. ‘ICC – UNEP World summit Business Award for Sustainable Development Partnerships’ in recognition of contribution to sustainable development.

6. CoRE-BCSD Corporate Social Responsibility award for 2001-02 in recognition of its leadership efforts towards social responsibility by The TATA Research institute.

7. Best HR practice award 2001-02 instituted by Indian Society of Training Development.

8. "Innovative HR practices Award" in Public Sector category by World HRD congress.

9. Golden Peacock Natioal Training Award 2003 instituted by Institute of Directors.

10. Golden Peacock Award for Excellence in Corporate Governance for the year 2002, instituted by the World Council for Corporate Governance in association with Centre of Corporate Governance and Institute of Directors.

11. Meritorious Productivity Award of the GoI to 12 Stations.

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12. Prime Minister’s Shram awards every year since 1986 including Shram Veer, Shram Bhushan, and the highest Shram Ratna Awards.

13. Safety Awards of GOI, British Safety Council & National Safety Council, USA etc.

14. Prime Minister's Award for Excellence in Memorandum of Understanding (MoU) for the year 1998-99, 1999-00 and 2000-01 in succession for being one of the top ten performers in the country. During the years 1999-00 and 2000-01, NTPC was a top awardee.

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

MISSION“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”.

National Thermal Power Corporation (NTPC), India's power giant, was established in November 1975 to play a major role in the Indian power sector. Today, an installed capacity of 19,435 MW, the corporation is looking ahead with an ambitious corporate plan to achieve a capacity of 30,000 MW by the year 2007 and 40,000 MW by 2012. Operating 13 coal based and 7 gas based stations, NTPC with its share of about 19% of India's total installed capacity, generated 26% of the contry's power. A consistent high level performer in operation, NTPC provides the benchmark for the Indian power sector.

While more than quadrupling the turnover in the past seven years to Rs.20,344 cores in 2000-2001. The profit has now reached Rs.3733.80 crores. NTPC improved its ranking on sales to 295 in 2000 from 299 in 1999 (as per Asia Week's survey off top 1000 companies of Asia pacific region including Japan). Also NTPC has been ranked as 31 st

largest on net profit in 1999 against 40th rank in 1998. In the Indian corporate sector, NTPC ranked first in terms of profit and 7 th in terms of sales volume as per survey of 'Asia week'. In a study conducted by DATA MONITOR, UK, NTPC has been ranked as the SIXTH (6TH) LARGEST thermal power utility in terms of generation of electricity and the SECOND MOST EFFICIENT in capacity utilization among the thermal utilities of the world during the year 1998.

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As part of the corporate growth strategy, NTPC is diversifying into hydel and non-conventional energy development. A joint venture company has been formed with ABB-ALSTOM to undertake Renovation and Modernisation of aging power plants both in India and abroad. NTPC is presently in the process of tying up LNG supplies for the expansion of its gas-based stations.

NTPC has been a socially committed organization since inception. NTPC's mission statement includes "To be a responsible corporate citizen with thrust on environment protection, rehabilitation and ash utilisation."

In pursuance of the vision and mission, NTPC had a specific corporate objective towards sustainable power development as follows:-

To contribute to sustainable power development by functioning as a responsible corporate citizen and discharge social responsibilities in the areas of environment protection and rehabilitation.

The corporation will strive to utilize the ash produced at its stations to the maximum extent possible.

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BADARPUR THERMAL POWER STATION (BTPS)

Badarpur Thermal Power Station was constructed with the idea of providing a major back up for hydropower in the Northern Region. From 1.4.87 onwards, Delhi is the sole beneficiary of the power generated from the station.

With the commissioning of the first 100 MW unit (derated to 95 MW since 1990), the plant became operational on 26th July 1973.

The management of the station was entrusted to National Thermal Power Corporation with effect from 1st April’1978. Since then, two units of 210 MW each were commissioned in 1978 & 1981 respectively. 1978 was a landmark year as the management changed hands, with NTPC taking charge. Suddenly things started happening. There was a new energy in the air & visible, tangible results came into focus. BTPS began its upward journey moving from strength to strength

recording quantum leaps in generation, availability & overall efficiency in plant performance. All this activity led to one simple goal powering the capital.

Initially the performance of the station with a PLF of merely around 33% was at a rock bottom level. For the past 29 years & in its 30th year of operation, Badarpur Thermal Power Station has been moving from strength to strength, recording quantum leaps in generation, availability and substantial reduction in inputs; thereby demonstrating overall efficiency in plant performance, towards its end-objective of providing power to the Capital. Presently this station meets more than 24% of the overall requirement of Delhi.

Operational since 1973 & managed by NTPC since 1978, BTPS has consistently striven to improve power generation, with resounding success. Its Plant Load Factor rose from meager 31.94% in 1977-78 to a level of above 65% since 1990-91. Its availability factor too rose from a level of 40% during 1977-78 to a level above 79% since 1990-91.

In spite of the old and aging units, Plant Load Factor of Badarpur has remained higher than the National Average for the last 16 consecutive years. The station stood amongst the best 13 thermal power stations of the country in terms of Plant Load Factor during financial year 1998-99 and was ranked 17th in 1999-2000. During the financial year 2000-01, it has been ranked 12th on All India Basis & during the financial year 2001-02, it has been ranked 11th on All India Basis, during the previous Financial Year 2002-03, it has been ranked 13th on all India Basis.

The station has played a role model for others to emulate in the areas of upgrading skills in plant operation, reduction in auxiliary power consumption and specific oil consumption, specially with the aging units having run more than 1,80,000 hrs on an average basis.

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SOME LANDMARKS IN THE HISTORY OF NTPC

DATE/YEAR LANDMARK26th July 1973 BTPS plant became operational. 1975 NTPC was incorporated in this year.1st April’1978 BTPS was entrusted to NTPC.1997 NTPC was given the status of NAVRATNA COMPANY.2002 Three new subsidiaries were established:-

NTPC electric supply company Limited.

NTPC Hydro Limited.

NTPC Vidyut Vyapar Nigam Limited.

28th October 2005 NTPC became NTPC Limited.

*NTPC has won several awards and accolades in 2009-10 in various fields like operations, human resource management, corporate governance, CSR.Some of them are as follows:

(a) -Ranked No. 1 Independent Power Producer in Asia and 2nd in the world in the Plants Top 250,Global Energy Company list for 2009.

(c) ICSI National Award for excellence in corporate governance 2009 has been conferred to NTPC by Institute of Company Secretaries of India.

(d) Awarded Gold Trophy for SCOPE Meritorious Award for best practices in human resource management.

(e) Ranked number ONE in the category the ‘Best Workplaces for Large Organizations’ and number tenth overall for the year 2009 by Great Places to Work Institute’s India chapter in collaboration with Economic Times.-Top six out of eight National Awards for MeritoriousPerformance of Thermal Power Stations for 2008

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ORGANIZATION CHART OF BTPS

The workmen in various departments were from W0-W11, the supervisors S1 –S4,This band of supervisors and workmen came under the non executive band, whereasEmployees of the level E1 and above upto E9,were in executive band. The officers appointed afresh e.g. ETs & MTs came in E1 to E3 ,E4 To E5 was that of engineers,E5 and above were that of Dy. Managers, and HODs .The major departments includedOperations and Maintenance and Non operations and Maintenance.

V N CHOWDHARYE D ,BTPS

AJAY CHANDRA(LAW)

RACHNA SINGH BALSR. MNGR (EDC)

S.Y. RAMSR.MANAGER

B.K. MUKHERJEEEDY.MANAGER

MANMOHAN SINGHDY MANAGER(EDC)

J.H.GOPALHR

R.M.KHANNAER & W

NISHANT GUPTAASST. LAW OFFICER

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LITERATURE SURVEY

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REWARD SYSTEM

The reward system at NTPC was launched with a view to recognize & reward employees’ work ,good behavior, leadership qualities ,involvement in TQM initiatives, demonstration of human values and core values of the company with a view t foster a culture of recognition & celebration of achievements in the organization.

Two new recognitions have been recently, added to the existing set of eleven rewards & Recognitions. The final list of thirteen rewards & recognition include:

1. Thank You Slips2. Applause3. Appreciation letter4. Star of the month5. Employee of the year6. Vidyut Award7. Power Excel Award8. PEARL Award9. ACE Award10. Mentors Samman11. Manveeyata Puruskaar12. Welcome Parties13. Farewell Parties

All the regular employee of NTPC are eligible for getting the rewards & recognitions under the NTPC Reward System as per their applicability & eligibility of the same.

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2.1 PREAMBLE

NTPC believes in the power of People and it is the professional philosophy of the management to create an enabling organizational culture for people to demonstrate their creativity, initiative, and involve in holistic development, through recognition celebration of achievements.

Even the research shown that it is the people’s behavior and commitment that creates excellence & drives business results. It is also well established that behavior which gets rewarded gets reinforced.

Although NTPC has formulated many HR policies for employees’ development and growth, it was felt that there is still space for enhancing employees’ motivation & morale on the continuous & sustained basis.

Keeping the above in mind, a bouquet of special Rewards and Recognition Schemes is evolved with an objective of reinforcing good work and behavior of employees in order to achieve Organizational excellence.

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2.2 OBJECTIVES

The Objectives of the NTPC Reward System are:

1. To recognize and reward employees behavior for enhanced motivation 2. To create a culture of excellence through value actualization demonstration of

leadership.3. To create role models at all levels for emulation and inspiration.4. To foster and nurture a culture of recognition and celebration in NTPC.5. To encourage overall development of employees through involvement in TQM

initiatives other Socio-Cultural activities.6. To encourage involvement in Corporate Social Responsibility Efforts.7. To promote exhibition of human values and NTPC Core Values.

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2.3 REWARDS

The various rewards included within the scope the NTPC Reward System as under:

1 Thank You Slips2 Applause3 Appreciation letter4 Star of the month5 Employee of the year6 Vidyut Award7 Power Excel Award8 PEARL Award9 ACE Award10 Mentors Samman11 Manveeyata Puruskaar12 Welcome Parties13 Farewell Parties

The system for administering the above Rewards and its presentation is detailed in the Scheme.

2.4 SCOPE

The NTPC reward system will combine in itself the thirteen rewards & recognitions as mentioned above. The system shall in its scope cover all Projects/Power Stations /Units/Regional Offices/Corporate Center of NTPC and applicable to all regular employees on the rolls of the company subject to meeting specific conditions mentioned in each Reward System.

2.5 ADMINISTRATION

The nodal departments at different locations for administering the system are:

(a) At Projects / Stations(b) At Regional HQs- HR(c) At Corporate Centre –CARE Group

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Rewards shall be made only, if, the opinion of the committee of judges a recognition really becomes due. The verdict of the competent authority, with respect to that particular reward, is final and binding. No disputes will be entertained.

The reward system is purely a Voluntary System introduced by the management for enhancing motivation & morale of the employees and does not confirm any right or obligation.

2.6 REVIEW

The Director (HR) is empowered to administer, interpret, clarify, revise, amend or modify any or all the provisions of the NTPC Reward System.

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THANK YOU SLIPS

OBJECTIVE: To promote a culture of Thanks giving, acknowledgement of help rendered by other employees and appreciation of any thoughtful gesture/help extended by an employee to another employee irrespective of level, function, department and station.

APPLICABILITY: All employees

CRITERIA: Any good work done by anyone in the department/group may be appreciated through feel good slips or card.

RECOGNITION: Employee who wants to recognize another employee for any of the reasons mentioned above may leave a Thank You slip on the desk of such an employee or e-mail the same to him or her .This is an appreciation of an employee by another towards realization of NTPC core value Mutual Respect and Trust.

RESPONSIBILITY: The respective HRD executive shall arrange sufficient no. of slips.

HRD-CC shall create a standard Thank You slip, which can be replicated.

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APPLAUSE

OBJECTIVE: To appreciate a task well done/ target achieved within stipulated time by an employee or group of employee or group of employees in a section/department.

APPLICABILITY/ELIGIBILITY: Individual / group of employees within a section/department.

CRITERIA: To recognize any initiative /job well done by subordinate/group in day to day functioning.

AWARD:

(a) Standing Applause is given to the individual or the group of employees by inviting to section/departmental meetings.

(b) A list of people who have got applause in a particular month shall be displayed on the notice board/local web page for a period of 01 month.

RESPONSIBILITY: Head of the dept/Sectional Head

FREQUENCY OF APPLAUSE: As frequently as possible, at least one applause in each meeting/once a week.

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APPRECIATION LETTER

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

APPLICABILITY:All employees should use the level of E7.

RESPONSIBILITY TO ISSUE APPRECIATION LETTERS:

Category Responsibility to issue appreciationAll non- executives Concerned group head (mg./sr. mgr) in

consultation with HODE1-EE5 Head of the department (DGM/AGM)E6-E7 Business unit head (GM/ED)

REWARD:Appreciation letter to the individuals/group of individuals shall highlight the specific contribution/instance.

PERIODICITY:As frequently possible. There sis no limit on the no. of the times an employee could be appreciated for god work.

RESPONSIBILITY:The immediate reporting officer.

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STAR OF THE MONTH

OBJECTIVE:To recognize consistent good work done by the employees.

APPLICABIILITY/ELEGIBILITY:All non-executives.

CRITERIA:Non-executives, who has shown the consistent puntuality, decipline, customer Orientation, anticipation, etc.

NUMBER OF AWARDS: 01 may be given to the each department in the month to the deserving employees. One employee may be entitling for more than the one star of the month award in a year.

REWARD:

A small pin up badge stating “star of the month” by HOD is presenting to the employee.

Name of the employee and the photo should be put on the notice boards.

RESPONSIBILITY:Concerned head of department.

PERIODICITY:Once a month to be awarded not later than 4th of the following month. If during the month no employee is found suitable, the award may not be given for the month.

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EMPLOYEE OF THE YEAR

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

ELIGIBILITY: Non-executives, who have got the minimum of two stars “star of the month” awards and four “appreciation letters” in a year.

CRITERIA: Non-executives, who exhibit the outstanding all round contribution through regular and active participation in various TQM initiatives, extra circular activities ,demonstrate additional skills, etc.

REWARDS:

Two level of awards at each location i.e unit/region/cc

(a) Unit level- Position no. 1 and 2 based on the selection from each department for “employee of the year".

(b) Departmental: All those who were nominated for the unit level employee of the year but did not qualify for the same would be considered based on the position for the “department employee of the year”.

PREIODICITY:

Annual (1st April to 31st march)

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VIDHYUT AWARDS

OBJECTIVE: To recognize & reward meritorious non-executives employees from amongst the entries of Shram Awards to Government of India.

APPLICABILITY/ELIGIBILITY: The entries for Shram Awards submitted to Government of India, but were not awarded.

CRITERIA: Such of those entries, which did not get Shram Award, would be considered for this award.

REWARD (a) Letter of Appreciation. (b) Cash Rewards Rank of the Award Award value (Rs) No. of the Awards Recipients shall be

called 1st 15000 01 Vidhyut Jyoti 2nd 10000 02 Vidhyut Punj 3rd 7500 05 Vidhyut Kiran

RESPOMSIBILITY: Corporate HR Division

PERIODICITY: Annual (1st April to 31st March)

APPROVING AUTHORITY: Director HR.

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Power EXCEL Award

OBJECTIVE: To recognize excellence in discharging official duties & of NTPC core values.

APPLICABILITY/ELIGIBILITY: All executives upto E6, excluding HODs.

CRITERIA: (a) Innovation & improvement in his area of work. -Contribution towards group effort. -Demonstrates Core Values at work & during interactions.

(b) Should have received at least one ‘Appreciation Letter’ or Manveeyata Puruskar. REWARD: These rewards shall be given under the name POWER EXCEL awards (Power Executives Excellence Award)

(a) Training in India (upto 7 days as per choice of the executives)(b) Letter of Appreciation under the signature of BUH/GM.(c) A cash reward of Rs 5,000/- each to the winners.

RESPONSIBILITY: Concerned HOD will initiate the proposal for consideration by the committee consisting of (05) HODs nominated by BUH/ED.

PERIODICITY: Annual, i.e. financial year.

APPROVING AUTHORITY: Under different locations would be:

LOCATION

CATEGORY

Project/Station Head of Project / Station Regional Office Executive Director Corporate Centre Executive Director

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PEARL AWARD

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

APPLICABILITY: All HODs & E7 and E7A at units and Regional Hqrs. and at CC.

CRITERIA: (a) Exhibition of Leadership qualities (b) Achieving Excellence in his area of responsibility.

(c) Demonstration of Core Values (d) Implementation of Strategic Initiatives in HR , TQM, Cost Control

Measures (e) Encouraging Creativity and Innovation.

REWARD: The awards shall be given under the name PEARL -Upto 10-days training of his choice in India & cash award of Rs 10,000 to Each award winner. - Appreciation Letter under the signature of Concerned ED

RESPONSIBILITY: ED of the region.

PERIODICITY: Annual (Financial Year)

APPROVING AUTHORITY: Region: Executive Director Corporate Centre: Director (HR).

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ACE Awards (Award for Corporate Excellence)

OBJECTIVE: To recognize excellence in leadership & demonstration of NTPC core values

APPLICABILITY/ELIGIBILITY: All Heads of Projects or Stations GMs in Regions and Corporate Centre

CRITERIA: Following Parameters are considered for evaluation:(a) Excellence in Strategic Leadership(b) Excellence through innovation,creativity,knowledge management(c) Core Values & CSR.

REWARD: These awards shall be given under the name of ACE Award -Up to 07 days of training abroad and a cash reward of Rs 15,000/-each To winners. -Letter of appreciation.

RESPONSIBILITY: ED (HR)

PERIODICITY: ANNUAL

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MENTORS SAMMAN

OBJECTIVE: To recognize the active services of mentors in socio cultural integration of mentees with company’s environment.

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

REWARD: A letter of Appreciation,- A token of gift /memento of Rs 1000/-- To be awarded on 5th Sept.

RESPONSIBILITY: Unit Head of HR is responsible for implementation.

PERIODICITY: Annual

APPROVING AUTHORITY : Business Unit Head

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MANVEEYATA PURUSKAAR

OBJECTIVE: To recognize good values exhibited by employers in official & social life. This shall include Human Values, Core Values of the company for creating role models in the company.

APLICABILITY/ELIGIBILITY: All employees upto E7 are eligible for this Award.

CRITERIA: Should have exhibited an exemplary value.

REWARD: Appreciation Letter -A gift of an amount upto Rs 1000/- -No. of cases is left to the discretion of BUH/GM/ED at all locations.

PERIODICITY: Should be done immediately upon noticing such behavior or on reporting of such event by employee or by others.

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WELCOMING

OBJECTIVE: To welcome a new joinees/transfer-in’s for their socialization.

APPLICABILITY/ELIGIBILITY: All Employees

PERIODICITY: Within one week of the joining of the employee.

Letter is issued by Concerned HOD in case of Non-executives & Executive upto E5,E6 and above BUH at units .

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BIDDING FAREWELL

OBJECTIVE: To bid farewell to an employee on his/her Retirement.

APPLICABILITY / ELIGIBILITY: All Employees

(a) On attaining the age of Superannuation. OR(b) Voluntary Retirement Scheme (VRS)

PERIODICITY: On the day Retirement of the employee.

REWARD PROCEDURE: Letter from BUH/ED. -A Gold coin weighing 10 grams. -Get together with employees of the concerned department, all HODs and BUH

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THE STUDY

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OBJECTIVE OF THE STUDY

The study aimed at finding the appropriateness of NTPC’s Reward & Recognition schemes for the purpose of enhancing performance, motivating and awarding employees for their outstanding achievements. For any reward scheme to have the desired motivational effect, following conditions must be met-

1. Openness: A Reward criterion is widely known and is accepted as objective criteria.

2. Transparency: Rewards are distributed as per criteria and there is no room fof favoritism and personal biases.

3. Timeliness: Rewards are given in time.

4. Recognition: The awardee is duly recognized.

5. Quantum: The quantum of rewards is proportionate to one’s contribution and achievement.

The questionnaire was designed on above principles. It was not specific for any one reward but the overall reward and recognition climate of the unit/office through studying employee perception about above aspects of the existing reward and recognition schemes.It was applicable to both monetary and non monetary reward schemes.

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RESEARCH METHODOLOGY

A research methodology is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose.

Universe Size: 1200

Sample Size: 100

Sampling Unit: BTPS employees, 50 Non Executives i.e. from Wo-W11 & 50 Executives i.e. E1 and above, upto E7

Sampling Method: Random/Judgment/Convenience Sampling

Research Type: Descriptive & Exploratory

Data Collection Instrument: Questionnaire

Data Type: Primary

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LIMITATIONS

Following were the limitations experienced in the course of the study:

(1) Lack of openness: The employees were bit reluctant to fill the questionnairrre and were skeptic of the motive.

(2) Lack of Cooperation: The employees had to be convinced to respond ,as they felt some confidential information is being extracted.

(3) Changing Shifts: The employees that included majority of technical plant workers and engineers worked in shifts in the interior of the plant, getting the questionnaire filled up by them was bit difficult.

(4) Casual Attitude: Many employees had a casual attitude, keeping the questionnaire at first place and asking to collect in sometime, when approached for collection it used to be lost by them.

(5) Some of the non-executive level employees could not get the questions & so were to be dealt individually.

(6) Lack of openness also made the informal interaction difficult.

(7) Only sample size is taken to arrive at best possible conclusion.

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FIELD OF STUDY

The field of study was BTPS, the sample for the study included executives, non-executives, supervisors , foremen and plant workers. Simple random sampling technique (convenient sampling) was used.

The departments from where sample was taken included O& M Department, Instrumentation Department, Vigilance Department, and Finance Department etc.

Approximately half of the sample included non – executives and plant workers as they constituted major proportion of the total employees in the organization, thus the sample was such that it contained appropriate mix of total population.

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ANALYSIS OF QUESTIONNAIRE

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

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree StronglyAgree

10% 35% 30% 20% 5%10 35 30 20 5

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above pie chart indicates that 10% of the employees strongly disagreed, 35% disagreed,30% neither agreed nor disagreed ,20% agreed and 5% strongly agreed that they were aware of the various rewards schemes (monetary & non monetary) of NTPC.Since the sample size was 100, the percentage is equal to the no. of employees.

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Q2. I am aware about the basic criteria on which various rewards are based?

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

5% 15% 35% 40% 5% 5 15 35 40 5

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above pie chart indicates that 5% hence 5 employees strongly disagreed,15% disagreed,35%neither agreed nor disagreed,40%agreed,5%strongly agreedthat they were aware of the basic criteria on which rewards were based.

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Q3.Rewards are based on clear and objective criteria?

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

5% 5% 40% 30% 20%5 5 40 30 20

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above pie chart indicates that 5% of the employees and hence 5 employees strongly disagreed,5% disagreed,40%neither agreed nor disagreed,30%agreed and 20% strongly agreed that the rewards were based on the objective criteria.

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Q4.Rewards are given as per criteria.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

25% 15% 40% 15% 5%25 15 40 15 5

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above chart indicates that 25% and hence 25 employees strongly disagreed,15% disagreed,40% neither agreed nor disagreed,15% agreed,5% strongly agreed that the rewards were given as per the criteria.

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Q6.Favoritism prevails when it comes to giving away rewards.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

30% 10% 45% 10% 5%30 10 45 10 5

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The pie chart indicates that 30% employees hence 30, strongly disagreed, 10%disagreed,45% neither agreed nor disagreed,10% agreed and 5% strongly agreed that favoritism prevails while giving away the rewards.

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Q6. Deserving people are rewarded.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

5% 15% 30% 40% 10%5 15 30 40 10

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The pie chart indicates that 5% employees hence 5,strongly disagreed , 15%disagreed,30%neither agreed nor disagreed 40% agreed and 10% strongly agreed that deserving people were rewarded in the organization.

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Q7.Rewards are given on time, as and when they become due.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

5% 5% 30% 40% 20%5 5% 30 40 20

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above pie chart indicates that 5% employees hence 5, strongly disagreed, 5%disagreed,30% neither agreed nor disagreed,40%agreed,20% strongly agreed that the rewards were given as and when they became due.

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Q8.Awardees gets adequate publicity.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

5% 10% 30% 40% 15%5 10 30 40 15

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above pie chart indicates that 5% employees hence 5, strongly disagreed, 10%strongly disagreed, 30%neither agreed nor disagreed, 40%agreed,5%strongly agreed that the awardees get adequate publicity.

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Q9.Good performance is appreciated and recognized by top management.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

5% 10% 30% 40% 15%5 10 30 40 15

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above pie chart indicates that 5% strongly disagreed, 10% disagreed,30%neither agreed nor disagreed ,40% agreed,15%strongly agreed that good performance is recognized and appreciated by top management.\

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Q10.Seniors share the credit of good work with their subordinates.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

5% 10% 40% 35% 5%5 10 40 35 5

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above data indicates that 5% employees hence 5,strongly disagreed,10% disagreed,40%neither agreed nor disagreed,35%agreed,5% strongly agreed that seniors shared the credit of good work with their subordinates.

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Q11.Quantum of rewards is proportionate to one’s achievement.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

5% 20% 40% 20% 15%5 20 40 20 15

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INTERPRETATION

The above data indicates that 5% employees strongly disagreed,20%diagreed,40% strongly neither agreed nor disagreed,20% agreed,15% strongly agreed that quantum of rewards is proportionate to one’s achievement at NTPC.

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Q12.Performance linked monetary rewards are reasonable at NTPC.

Strongly Disagree

Disagree Neither Agree Nor Disagree

Agree Strongly Agree

10% 5% 45% 35% 5%10 5 45 35 5

EMPLOYEE RESPONSE

s.disagree

disagree

neithr a/d

agree

s.agree

DATA INERPRETATION

The above data indicates that 10% employees strongly disagreed , 5%disagreed,45%neither agreed nor disagreed 35%agreed and 5% strongly agreed that the performance linked monetary rewards are reasonable at NTPC.

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CONCLUSION

The responses obtained indicate that the employees were fairly satisfied with the reward system of the organization. Although a small sample size was taken to analyze it, every proportion of population was represented by the sample appropriately.

The questions were designed using basic principles into consideration i.e. fairness, openness, timeliness etc. The responses thus obtained were then analyzed to arrive at the conclusion.

The responses obtained in the two extremes were very less, i.e. every question was responded by the employees avoiding the two extremes of strongly agree & strongly disagree this can be justified by the fact as explained above in the limitations that the employees were hesitant and behaved as if some confidential information was being extracted from them or that it indicates that employees were fairly satisfied with the management regarding the various reward system schemes.

Majority of the responses obtained were that of “agree” i.e. approximately 30 to 40% 0f the employees responded “agree” to the questions like rewards are given as per criteria that indicates that etc., indicating that organization had been fairly successful in keeping the reward system schemes balanced and satisfactory.Next highly obtained response was that of “Neither Agree Nor Disagree”, i.e. approximately 25% to 30% employees responded to this option, it was observed during the survey that due to lack of openness again the employees hesitated to respond disagree to the Questions that included good work does not go unnoticed ,seniors share the credit of good work etc. in order to avoid any confrontation if it ever happened.

Also it was observed that most of the executives took a lot of time in responding and were less cooperative and open as compared to the non executive employees, also theSatisfaction level was high in the higher grade (E4) above.The workers were enthusiastic and cooperative in their responses aw well as interactive.

After detailed analysis done band wise or grade wise it can be concluded that the satisfaction level of the employees as well as their awareness regarding various rewards & recognition schemes was fairly well, i.e. the employees were fairly satisfied with Reward System of the organization.

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RECOMMENDATIONS

1. Surveys : should be conducted frequently in order to judge satisfaction level of the employees.

2. In addition to surveys, interaction of HR officers with the employees should also be given space if possible.

3. Feedback: Suggestions and discrepancies regarding the various reward schemes should be openly invited from the employees and should be materialized into action as soon as possible should not be dumped as paperwork.

4. Formal and Informal meetings: should be conducted to judge the employee satisfaction, regarding various services & new way out should be searched to tackle the same.

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QUESTIONAIRRE

STATEMENTStronglyDisagree

Disagree Neither Agree NorDisagree

Agree StronglyAgree

1.I am aware of various rewards monetary and non monetary reward schemes of NTPC.2.I am aware about the basic criteria on which various awards are based3.Rewards are based on clear and objective criteria4.Rewards are given as per criteria5.Favoritism prevails when it comes to giving away awards6.Deserving people are rewarded7.Rewards are given as and when they become due8.Awardees get adequatePublicity9.Good performance is appreciated and recognized by top management

10.Seniors share the credit of good work with their subordinates11.Quantum of rewards is proportionate to one’s achievement.12.Performance linked monetary rewards are

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reasonable at NTPC.

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BIBLIOGRAPHY

(1) http://www.NTPC ltd.com(2) http://www.ntpc.co.in(3) http://www.Citeman HR.com(4) Employee handbook NTPC.(5)http://humanresources.about.com(6)http://suite101.com

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