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SUMMER TRAINING REPORT

ON
“ANALYSIS OF PERFORMANCE MANAGEMENT SYSTEM”

IN
NTPC LTD
(FARIDABAD)

SUBMITTED TO: - SUBMITTED BY:-


(M.D UNIVERSITY, ROHTAK) BHARTI DEVI
FOR FULL TIME DEGREE COURSE OF M.B.A
MASTER OF BUSINESS ADMINISTRATION
(M.B.A)

DAV INSTITUTE OF MANAGEMENT, FARIDABAD

(1)
ACKNOWLEDGEMENT

It gives me pleasure and satisfaction categorically state that Project is not


solo effort. So many people have contributed there bit to it. It is very difficult to
individualize my gratefulness, here, to all whose contribution has blossomed into
this project. Still my first and foremost gratitude and thanks exist for those who
have given me the insight to do the job. The task of completing this project would
have been difficult if it was not for timely help, support and encouragement given
to me by numerous people.

The project would not have taken shape without the constant guidance,
advice and insight of Ms. S. BAHMANI (D.G.M, HR), Mr. R.k Niranjan
(Manager, EDC) whom I express my sincere thanks for their guidance.

To all those who gave me valuable and relevant information regarding my


project.

BHART
I DEVI
M.B.A.

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DECLARATION

This is to certify that the Project work entitled ‘ANALYSIS OF


PERFORMANCE MANAGEMENT SYSTEM’ done by me BHARTI
DEVI for degree of M.B.A. II SEM D.A.V. INSTITUTE OF
MANAGEMENT, NH-3; FARIDABAD is not copied and is result of
my own efforts.

BHARTI DEVI,

M.B.A

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PREFACE

As per the curriculum of the University for the M.B.A. degree course in Human
Resource Project training has to be undertake in 2nd semester for the practical
overview of the industry.

To fulfill this requirement I took my 8 weeks training from 9th June to 31th July at
NTPC Ltd, Faridabad. During the training everything that I have learnt & studied
has been briefed in this report.

The report contains the necessary information in Human Resources in the main
parts of the plant. The information has been prepared to best of my knowledge and
the data made available by NTPC officials.

At the end I m confident that after this training I am well aware of the industrial
atmosphere & have an overview about the power industry & it would be helpful
for my future & career.

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INDEX

Ch-1. INTRODUCTION OF NTPC

- History

- Group

- Installed capacity

- NTPC Strategies

- NTPC Awards

- Growth Plans of NTPC

- Introduction of Human Resource

- Objectives

- Role of HR

Ch-2. RESEARCH METHODOLOGY

Ch-3 FARIDABAD PLANT


Ch-4. PMS SYSTEM IN NTPC FARIDABAD

- Objectives
- Applicability
- PMS Process

- PMS Cycle

- Various kinds of Performance management system

- Role of PMS Officer

- Normalization process
- Audit of PMS

- Appendices

- Managing Performance

Ch-5 QUESTIONNAIRE AND DATA ANALYSIS


Ch-6 RECOMMENDATIONS
Ch-7 CONCLUSION
BIBLOGRAPHY
WEBOGRAPHY
ANNEXURE

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VISION AND VALUES

Corporate Vision:
“A world class integrated power major, powering India’s
growth, with increasing global presence”
Core Values:
B-Business Ethics
C-Customer Focus
O-Organizational & Professional pride
M-Mutual Respect and Trust
I- Innovation & Speed
T-Total quality for Excellence

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ABOUT THE COMPANY


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.
(8)
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. As on date
the installed capacity of NTPC is 27,904 MW through its 15 coal based (22,895
MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects (1,054 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 also has 28.33% stake in Ratnagiri Gas &
Power Private Limited (RGPPL) a joint venture company between NTPC, GAIL,
Indian Financial Institutions and Maharashtra SEB Holding Co.Ltd.NTPC’s share
on 31 Mar 2007 in the total installed capacity of the country was 20.18% and it
contributed 28.50% of the total power generation of the country during 2006-07
(9)

EVOLUTION OF NTPC
1975 NTPC was set up in 1975 with 100% ownership by
the Government of India. In the last 30 years, NTPC
has grown into the largest power utility in India.

In 1997, Government of India granted NTPC status of


1997 “Navratna’ being one of the nine jewels of India,
enhancing the powers to the Board of Directors.

NTPC became a listed company with majority


2004 Government ownership of 89.5%.
NTPC becomes third largest by Market Capitalization
of listed companies

2005 The company rechristened as NTPC Limited in line


with its changing business portfolio and transform
itself from a thermal power utility to an integrated
power utility.

AT PRESENT (2009) NTPC is the largest power utility in India,


accounting for about 20% of India’s installed capacity.

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NTPC GROUP
NTPC Limited
Subsidiaries

NTPC Vidyut NTPC Electric Pipavav Power


Supply NTPC Hydro
Vyapar Development Co. Limited
Nigam Limited Co. Limited Ltd
100%
100% 100% 100%

Joint Ventures
NTPC-SAIL Power

Company Pvt.
Limited NTPC Alstom
Bhilai Electric Utility
Power
50% Supply Co. Pvt. Powertech
Limited Services Pvt.
NTPC-SAIL Power Limited
Limited
50% 50%
Company Pvt. 50%
Limited

50
NTPC
Tamilnadu Ratnagiri Gas
PTC India
& Power
Energy Co. Limited
Private Ltd
Limited
8%
28.33%
50%

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INSTALLED CAPACITY (AN OVERVIEW )

Commissioned Capacity
Projects No. of Projects
(MW)
NTPC OWNED

COAL 15 22,895

GAS/LIQ. FUEL 07 3,955

TOTAL 22 26,850

OWNED BY JVCs

Coal 3 314*

Gas/LIQ. FUEL 1 740**

GRAND TOTAL 26 27,904

* Captive Power Plant under JVs with SAIL


** Power Plant under JV with GAIL, FIs & MSEB

PROJECT PROFILE (Coal Based Power Stations)

Commissioned Capacity
Coal based State
(MW)

1. Singrauli Uttar Pradesh 2,000

2. Korba Chattisgarh 2,100

3. Ramagundam Andhra Pradesh 2,600

4. Farakka West Bengal 1,600

5. Vindhyachal Madhya Pradesh 3,260

6. Rihand Uttar Pradesh 2,000

7. Kahalgaon Bihar 1,340

8. NTCPP Uttar Pradesh 840


9. Talcher Kaniha Orissa 3,000

10. Unchahar Uttar Pradesh 1,050

11. Talcher Thermal Orissa 460

12. Simhadri Andhra Pradesh 1,000

13. Tanda Uttar Pradesh 440

14. Badarpur Delhi 705

15. Sipat Chattisgarh 500

Total (Coal) 22,895

Gas/Liq. Fuel Based Power Stations

Commissioned Capacity
Gas based State
(MW)

16. Anta Rajasthan 413

17. Auraiya Uttar Pradesh 652

18. Kawas Gujarat 645

19. Dadri Uttar Pradesh 817

20. Jhanor-Gandhar Gujarat 648

Rajiv Gandhi CCPP


21. Kerala 350
Kayamkulam

22. Faridabad Haryana 430

Total (Gas) 3,955

Power Plants with Joint Ventures


Commissioned
Coal Based State Fuel Capacity
(MW)

23. Durgapur West Bengal Coal 120

24. Rourkela Orissa Coal 120

25. Bhilai Chhattisgarh Coal 74

26. RGPPL Maharastra Naptha/LNG 740

Total(JV) 1054

Grand Total (Coal + Gas + JV) 27,904

Projects Under Implementation

Additional Capacity
Under
Coal / Hydro State Fuel
Implementation
(MW)

Kahalgaon 500
1. Bihar Coal
Stage II (Phase I) (Phase II) 500

1980
2. Sipat (Stage I) (Stage II) Chhattisgarh Coal
500

3. Barh Bihar Coal 1980

Bhilai (Exp. Power Project-


4. Chhattisgarh Coal 500
JV with SAIL)

5. Korba (Stage III) Chhattisgarh Coal 500

6. Farakka (Stage III) West Bengal Coal 500

7. NCTPP (Stage II) Uttar Pradesh Coal 980


8. Simhadri (Stage II) Andhra Pradesh Coal 1000

Himachal
9. Koldam (HEPP) Hydro 800
Pradesh

10. Loharinag Pala (HEPP) Uttarakhand Hydro 600

11. Tapovan Vishnugad (HEPP) Uttarakhand Hydro 520

Total (Coal + Hydro) 10,860

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NTPC STRATEGIES
(16)

AWARDS TAKEN BY NTPC


 UNCHAHAR STATION OF NTPC RECEIVED THE COVETED ASIAN
POWER PLANT OF THE YEAR AWARD, 2006 FOR EFFICENCY,
ENVIRONMENT, OPERATIONAL CHARACTERSTIC AND BUSINESS
MANAGEMENT.

 NTPC BAGS SEVEN NATIONAL AWARDS FOR MERITORIOUS


PERFORMANCE.

 RANKED TOP AWARDEE FOR MOU AWARD FOR EXCELLENCE IN


PERFORMANCE BY GOVT OF INDIA.

 NTPC HAS BEEN RANKED FIRST AS PER TOTAL INCOME IN THE


POWER GENERATION, TRANSMISSION, DISTRIBUTION SECTOR
AMONG INDIA’S TOP 500 COMPANIES FOR THE YEAR 2006 BY
DUN & BRADSTREET.

 PMI, NTPC HAS BAGGED THE PRESTIGIOUS GOLDEN PEACOCK


NATIONAL TRANING AWARD, 2006 FOR 4TH YEAR IN SUCESSION.

 WON THE SCOPE MERITIOUS AWARD FOR BEST PRACTICES IN


HUMAN RESOURCE MANAGEMENT.
(17)

GROWTH PLANS

Circa 2017: NTPC’s corporate profile

By the year 2017, NTPC would have successfully diversified its generation mix,
diversified across the power value chain and entered overseas markets. As a result
NTPC would have altered its profile significantly. Elements of the revised profile
that NTPC would seek to achieve are:

• Amongst top five market capitalization in the Indian market


• An Indian MNC with presence in many countries
• Diversified utility with multiple businesses
• Setting benchmarks in project construction and plant availability &
efficiency
• Preferred employer
• Have a strong research and technology base
• Loyal customer base in both bulk and retail supply
• A leading corporate citizen with a keen focus on executing its social
responsibility
(18)

NTPC FARIDABAD, HR Vision


"To enable our people to be a family of committed world class professionals."

HUMAN RESOURCE
Powering India's Growth : Through people

NTPC 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 rests on four building blocks of HR viz. Competence building, Commitment
building, Culture building and Systems building. All HR initiatives are undertaken
within this broad framework to actualize the HR Vision of "enabling the employees to
be a family of committed world class professionals making NTPC a learning
organization.To induct talent and groom them into a dedicated cadre of power
professionals "Executive Trainee" Scheme was introduced in the year 1977 for
recruitment in the disciplines of Mechanical, Electrical, Civil, 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 on-the-job training, the new recruits are also attached with senior
executives under a systematic and formal 'Mentoring System' of the company to
integrate them into the Culture of the company.

As part of 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 need-based interventions based on scientific Training
Needs Analysis. NTPC has set up 15 project training centres, 2 simulator training centres and an
apex institute namely 'Power Management Institute' (PMI). While the project training centres
(Employee Development Centres) 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 programme), 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 Executive Talent (NOCET) is organized every year in which
teams of executives compete annually through oral and written presentation on a topical theme.
(19)

Similarly "Professional Circles" have 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 executives and make use of their 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 employees to
share their ideas and experiences across the organization.

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.
In order to institutionalize a strong Culture based on Values a number of initiatives are taken to
actualize the Vision and Core Values (BCOMIT) across the company. 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. These Centers give a good insight to the
employees about their strengths and weaknesses, 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 various
external surveys including “Great Places to Work for in India” in which NTPC was rated third
Great Place to work for in the country in 2005.
(20)

OBJECTIVES OF HR

 TO ENHANCE ORGANISATIONAL PERFORMANCE BY


INSTITUTIONALISING AN OBJECTIVE AND OPEN PERFORMANCE
MANAGEMENT SYSTEM.

 TO ALIGN INDIVIDUAL AND ORGANIZATIONAL NEEDS AND


DEVELOP BUSINESS LEADERS BY IMPLEMENTING A CAREER
DEVELOPMENT SYSTEM.

 TO ENHANCE COMMITMENT OF EMPLOYEES BY RECOGNIZING


AND REWARDING HIGH PERFORMANCE.

 TO BUILD AND SUSTAIN ALEARNING ORGANIZATION OF


COMPETENT WORLD CLASS PROFESSIONALS.

 TO INSTITUTIONALIZE CORE VALUES AND CREATE A CULTURE OF


TEAM BUILDING, EMPOWERMENT, EQUITY, INNOVATION AND
OPENNESSWHICH WOULD MOTIVATE EMPLOYEE AND
ENABLEACHEIVEMENT AND STRATEGIC OBJECTIVES.
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R

O r g a n is a
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p e r fo r m a
c o m m itm
astregicPn
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CHAPTER-2
RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
THE RESEARCH:
Research has to be undertaken in a systematic manner, to ensure that problems are dealt with properly and that
nothing overlooked. The systematic way in which research was undertaken and referred to as the research
process to which there are a number of stages. Each stage is explained in brief in context with the project
undertaken as written as under:

NATURE OF MARKET RESEARCH:

Information plays an important role in helping firm to make decisions. A firm undertakes marketing research to
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GENERAL LAYOUT OF FARIDABAD GAS POWER STATION


The whole plant is mainly subdivided into three separate divisions. They are:-

1. Main building

2. Main generating unit

3. Off sites

1. MAIN BUILDING:- The main building of the plant are

a) Administration building: - this building of the plant has all the departments other than of
plant maintenance and operation, such as HUMAN RESOURSE, FINANCE AND
ACCOUNTS, SALES, SAFETY, RESETTLEMENT AND REHABILATION, LIBRARY,
TELEPHONE, MATERIAL AND CONTROL, CONTRACTS, PURCHASE AND
STORES.
b) SERVICE BUILDING: - This building mainly consists of maintenance and operations
departments and all other which directly deals with functioning of the plant and all the
technical jobs. It has departments such as :- EM( ELECTRICAL MAINTENANCE), MM
1&2(Mechanical maintenance), o&m(operations and maintenance) and stores.

2:- MAIN GENERATING UNIT :- This unit comprises of main functioning


plant with all its equipment with a CCR (common control room) controlling all the functions of
the plant.

3:- OFF SITES: - These comprise all the other units which otherwise are very
much necessary in the proper working of the main generating units. They are:-

1. BFP building

2. Chlorination plant

3. CW plant

4. PT plant

5. ET plant

6. DM plant

7. Fire water pump house

8. CMB plant

9. Black start generating unit

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10. Naphtha & Diesel supplying unit

11. Workshop

12. Air compressor & Air washer unit

Above are the necessary department of the plant which are responsible for the generation
and supply of the fuels required in the plant while other than these plants one of the major
unit responsible for the transmission of the electricity to all the required customer is being
done by a separate unit known as Power Grid Corporation of India LTD.
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CHAPTER-4
PMS SYSTEM IN NTPC, FARIDABAD.

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PMS IS ONLY FOR EXECUTIVES. IN NTPC, FARIDABAD.
THERE ARE 143 EMPLOYEES OUT OF WHICH 5 ARE
SUPERVISORS, 94 EXECUTIVES, 44 WORKMEN AND 23
DEPARTMENTS SHOWN AS FOLLOWS:-
1. P&S
2. TS-IT
3. TS-FQA
4. TS-EMG
5. TS
6. Safety
7. R&M
8. O&M-Opn
9. O&M-O&E
10. O&M-MTP
11. O&M-MM
12. O&M-EM
13. O&M-EEMG
14. O&M-Civil
15. O&M-Chem
16. O&M-C&I
17. O&M-BE
18. O&M
19. MEDICAL
20. HR
21. GM Office
22. F&A
23. C&M

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PERFORMANCE MANAGEMENT SYSTEM OVERVIEW


Appraising the performance of individual, group and organization is a common
practice of all societies. Whole in some instances these appraisal processes are
structure and formally sanctioned, in other instances they are an informal and
integral part of daily activities. Thus teachers evaluate the performance of the
students, bankers evaluate the performance of the creditors and all of us
consciously and unconsciously evaluate our own action from time to time. In social
interaction, performance is conducted in a systematic and planned manner to
achiever. While spread popularity in a recent years.

“performance appraisal is the systematic, periodic and impartial


rating of an employee’s excellence in matters pertaining to his recent job and this
potential for a better job”.

“performance appraisal is “the process of collecting, analyzing and


evaluating data relative to job behaviors and results of employees’. Performance
appraisal is “the systematic evaluation of employees with respect to his potential
for development”.

DEFINATION RELATING TO PERFORMANCE APPRAISAL

According to john Wiley:

“Stripped of all jargons it is simply an attempt to think clearly about


each person’s performance and future prospects against the background of this
total work situation”.

According to Harold Mayfield:


“It is the process of obtaining, analyzing and recording information
about the relative worth of an employee. Performance appraisal and merit rating
are used synonymously. But strictly speaking performance appraisal is a wider
term then merit rating.

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PHILOSOPHY OF PERFORMANCE MANAGEMENT SYSTEM


“To build a culture of performance by aligning individual and
organizational objectives and encouraging open communication and continuous
feedback.

OBJECTIVES:
• To accomplish the overall organizational vision and mission by linking
individual performance to company objectives
• To cascade company’s strategic goals to individual level
• To promote professional excellence
• To encourage two-way communication between the executive and the
reporting officer and bring about transparency in the performance
assessment process
• To evaluate the potential of the executive to assume higher responsibilities
in the organization
• To provide a source of talent for meeting the organization’s growth
requirements through a process of mapping the competencies and potential
of executives
• To translate future skill requirements of the organization into individual
development plans
• To identify high performers and recognize them through rewards and
incentives, Sand
• To facilitate fulfillment of individual aspirations

APPLICABILITY:
• PMS is applicable to all executives of NTPC (E1- E9)
• Executives who join NTPC on deputation or those retaining lien while in
service of NTPC are also covered by this scheme
• Executives who join in the middle of the PMS cycle (see next section), but
have served for a minimum period of three months
• NTPC executives who are on secondment or are lent on service to
subsidiaries and joint ventures with NTPC management.

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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
• 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)
• Results are substantially within the executive’s control
• Measures relate to results
• Data is available for measurement
• Agreement on mutually agreeable and achievable performance targets is
arrived at after sufficient discussion between reporting officer and executive
has take
2. Mid Year Review

Performance management is not an event but an ongoing process. Mid year


reviews help in the following ways:
• Reinforcing good performance in time
• Updating the status of targets i.e. progress review
• Identifying areas for “mid-course” correction

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• Revisiting KPAs and goals, if necessary
• Assessing resource and skill requirements affecting the individual’s
performance
• Discussion and feedback on functional competencies, managerial
competencies,
• potential competencies and core values actualization
• Providing early warnings of non-performance, i.e. avoiding year end
surprises

3. Annual Assessment

The objectives of Annual Assessment are to:


• Discuss and arrive at an assessment of performance with respect to agreed
targets
• Assess the competencies, potential and core values actualization by the
individual
• Agree upon improvement plans and development needs for the individual
.
4 Normalization

The objectives of the Normalization System in PMS are to:


Ensure parity and integrity by minimizing variation in rating by different reporting
officers across various departments and locations Enhance objectivity and
transparency in the appraisal system To view individual performance from the
perspective of organizational achievement.

5 Feedback, Coaching and Counselling


In order to make PMS an open system and to enhance development orientation
across the organization; feedback, coaching and counselling are essential
components. Communicating the final performance results of the executive and
providing developmental feedback are critical to this process.

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5.1 Feedback
Providing feedback on performance presents the following benefits:
• Creates transparency making PMS more acceptable to individuals
• Reinforces good performance on time
• Enables development of coaching and mentoring relationship between
reporting officer and executive
• 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. (Refer to appendix for tips to reporting officers on conducting
effective appraisal meetings.) 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 achievements and issues
throughout the assessment period and not focused on isolated incidents
• Feedback calls for maintaining a log of critical incidents 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 self-development

5.2 Coaching and Counselling


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 of knowledge and skill
• Providing guidance to individuals to enable them to complete their work
satisfactorily
• Motivating individuals to learn new skills and develop themselves
(39)
• Facilitating individuals to raise their level of contribution and achievement.
Counselling 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
counselling is through:
• Recognition and understanding of existing strengths
• Empowering, i.e. enabling the individual to recognize their own problems
and expressing the same.
• Facilitating action 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 the outcomes of their chosen
action.
Coaching and counselling together act as a feedback mechanism for the individual
on his/her performance. It is often used by reviewer/reporting officer to
communicate the areas for development and improvement to the executive.

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PMS Cycle

1 Performance Assessment year

Performance assessment years have been set up 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 same year.

General Definitions
Demonstration E1-E5 E6-E7 E7A-E8 E9
“Live” and act out
values in day-to-Ser s serve as role Ins inspire and Set set directions
day interaction models through motivate entire and create an
All Values with all ethical behavior work force and orientation,
constituencies, and personal encourage all develop and
both internal involvement in employees to demonstrate
and external planning, contribute, to clear and
communications, develop, learn visible values,
coaching, and grow and high
development of performance
future leaders, expectations
review of
organizational
performance, and
employee
recognition

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VARIOUS KINDS OF PERFORMANCE APPRAISAL SYSTEMS

 Personality based performance appraisal system:

Here the appraiser is supposed to rate the personality traits of the person being
appraised. This is not in much in organisations as it very subjective and judgmental. It
could also be biased and prejudiced.

 Competence based performance appraisal system:

Here the job analysis is used and the employee is appraised for the skills he
exhibits. For e.g. if his job entails dealing with the clients then he is judged foe his
effectiveness in dealing with them. This enables both the organisation and the
employee as to what deficiencies are to be overcome and can be useful in
providing training to the employee to better his performance.

 Result based performance appraisal system:

This system concentrates on the final results achieved by the employee irrespective
of his personality or deficiencies. This is totally related to the job and concentrates
on the end results that are more important to the organization.

Thus Performance Appraisal is the process to establish the competency


and the learning gap in addition to reward system. Performance increment would
depend on the performance appraisal input for the department and the management
for decision making. Human Resources would craft the notice and letter to
communicate to the employees. This is also an important issue. Human Resources
is the corporate communicator and is responsible for employees communication

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Roles and Responsibilities

1 Role of Executive:
• The executive shall fill out appropriate portions of the form, attend the PMS
meetings at all stages (performance planning, mid-year review and annual
assessment) and be prepared to have an open and frank discussion about
his/her performance.
• The PMS aims at creating amity and convergence of individual and
organizational goals and it should be taken in that spirit.
• The executive is required to show the necessary flexibility and adaptability
to the organisational needs and display system discipline through adherence
to all PMS requirements.

2 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 meetings with all the executives reporting to him
within the specified periods 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 the PMS scoring of all executives
reporting to him in an objective manner and such that the scores are
distributed in a manner requiring minimum adjustment and/or normalisation
by either the reviewing 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.

(57)
3 Role of Reviewing Officer

• The reviewing officer shall go through PMS forms for all executives under
his purview and ensure 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 scores awarded to all the executives under his/her purview are distributed
in a manner requiring minimum normalisation by the Performance
Management Committee.
• 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.

4 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.

(58)
Normalization Process

1. Key Elements of the Normalization Process

 Executives would be normalised 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 normalised either at the plant, Regional Headquarters
or Corporate Centre level.
 The composition of clusters at each grade would be notified by Corporate HR from time
to time.
 In respect of executives on secondment/lent to subsidiaries/JVCs, normalisation
would be done in respective entities.
 Normalisation would be done by the Performance Management Committees comprising
cross-functional members specifically set up for the purpose.
 The Performance Management Committees would be the highest level of decision-
making 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 change the cluster composition across the organisation at all levels rests
solely with GM, Corporate HR.

Normalization Steps

1. The Performance Management Committee should normalise the performance of executives


within a cluster in the context of the overall performance of the unit/department vis-à-vis 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 Targets
(59)
� 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 ratings 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
� 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, then 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 categorised into Top 20% of the
cluster, Middle 70% of the cluster and Bottom 10% of the cluster. The normalisation process
would be iterative until the above categorization is achieved.

8. The consolidated list of executives categorized as above for each cluster together with the final
score for each employee will be signed by all members of the respective Performance
Management Committee.
(60)
9. The concerned HR would facilitate the entire process of normalisation in the role of a
convenor.

10. Individual PMS forms of executives would be signed by the Member Convenor of the
respective PMC as per the table below:

Level Location Member


Convenor
E1-E5 For Plant Head – Plant HR
For Region Head – RHQ HR
For Corporate Centre Head – HRD
(Promotions
Group)

E6 For Plant and Regional Head – RHQ HR


Headquarters
For Corporate Centre Head – HRD
(Promotions
Group)
E7 and above For Plant, Regional ED – HR
Headquarters and
Corporate Centre
For all Executive For NTPC subsidiary/ Concerned Head
Levels JV under NTPC of HR
Management

(61)
Audit of PMS
1. Guidelines
To achieve the objectives of the PMS, an audit procedure has been put in place to
ensure that all users follow PMS guidelines consistently.

2. Role of Audit Team


The audits are to be carried out on a sample basis across plants, regions Corporate
Centre using the format provide in the annexure.
2.1Audit of Target Setting
The key role of the audit team shall be to ensure that
• The reporting officer is at a minimum level of E5
• The KPAs have been appropriately cascaded down at each level with
appropriate balancing and sufficient stretch targets to achieve individual and
organizational excellence
• There is parity in the targets for executives of a particular level having
similar roles and responsibilities
• The KPAs have been set with data backup and support
• The optional competencies which are set are in line with the executive’s role
and grade
• The KPA target setting has been discussed between the appraiser and
appraisee
• Interdepartmental targets have been set accurately with appropriate linkages
to smoothen the process of achieving individual targets
2.2Audit of Mid-Year Review and Annual Assessment
The key role of the audit team will be to ensure that
• Changes made to the Targets and KPA during the Mid-year Review reflect
the departmental/plant needs
• The overall scores for the KPA targets are in line with the departmental
outcomes/results for the year with sufficient “stretch” targets
• The calculation of marks in each section of the PMS has been done
accurately
• The data of a cluster/large department follows a natural curve with
differentiation between top performers (20%), middle (70%) and bottom
performers (10%).
• The reporting officers have followed the principles of evaluation and
reasonably avoided rating biases while evaluating a group
(62)
2.3Audit of Normalization Process
The role of the audit team shall be to
• Ensure that the principles of normalization have been followed
• Review the final list of executives who form the top 20% and ensure that
their performance scores indeed accurately reflect the highest performance
level within the cluster that they are taken from and the departments that
they belong to.

3 .Composition of the Audit Committee and Submission of Report


The audit team and the submission of the audit report to the concerned authority
shall be as under. The report should only highlight the exceptions and non-
compliance issues to enable suitable action to be taken.
Area Audit Team Report Submitted to
Plants Head of O&M Head of HR for the
Head of Technical Services respective Region
Head of HR
Regions Head of OS Corporate HRD
Head of P&S/P&M
Head of HR
Corporate Centre Nominated member from Corporate HRD
Corporate Planning (from
MoU group)
Nominated member from
Engineering
Nominated member from HR
All nominated members will
not be below the level of
DGM

Audit by Corporate HR
Corporate HR reserves the right to conduct sample checks at any location for PMS
policy and system adherence at their sole discretion

(63)
APPENDICES

1- Useful Guidelines for carrying out PMS

The following checklist must be used to ensure completion of all PMS


activities:

Performance Planning Mid- Year Review Annual Assessment


 KPAs and constituents to  Performance progress to  Marks to be given for
be identified and written be discussed (KPAs,) target achieved against
in the PMS form Competencies, Potential KPAs
Source: KPA Directory and Core values  Summary of KPA marks
 Three levels of Targets to  Self evaluation to be to be filled in dashboard
be Set discussed and  Competencies to be rated
 Competencies to be documented  Core values to be rated
identified and written  Document changes in
Source: Competency KPAs if necessary  Potential to be rated
Directory  Comments of reporting  Summary of scores
 Optional Managerial officer to be documented  Discuss and fill training
Competencies to be  Sign off by the executive and development plan
identified and ticked in  Sign off by the executive
the and reporting officer
PMS form

 Sign off by the executive


and reporting officer

2 Tips for Reporting Officer to conduct Assessment Meeting

There are eight simple steps that a reporting officer must follow in order to
conduct an effective assessment meeting:

1. Control the atmosphere: Be prepared, create trust and understanding by putting


the executive at ease. Avoid interruptions while the executive is communicating.

2. State the purpose of the discussion: Discuss the advantages of the discussion
including:
a. Assessment of progress towards goals

(64)
b. Identification of ways to improve performance
c. Identification of current or potential problems
d. Improvement in communication

3. Ask for the executive’s opinion: Ask executive to discuss what he/she has
written in self-appraisal. Ask clarifying questions, if needed. Listen carefully and
attentively. Keep an open mind. Control your emotions or defensive reactions.

4. Present your assessment: Speak in detail, giving factual information. Be open,


candid and specific, giving both good news and bad news.

5. Build on executive’s strengths: This will lay the groundwork for a positive
approach for future performance. Specifically:
a. Ask the executive to name his/her strengths
b. Share your opinion of the executive’s strengths
c. Recap the strengths you have discussed and relate them to specific future goals
d. Focus on performance and not the person
e. Be aware of not focusing too much on recent events; take the entire year’s
performance into consideration.

6. Ask for executive’s reaction to your assessment: Be prepared for executive’s


disagreement on your assessment. He/she may also feel unhappy or emotionally
upset. Stay open and do not react in a defensive manner. Resist the temptation to
gloss over serious issues.

7. Discuss specific goals: Set specific future goals for performance as well as
training and development needs. Discuss career progression at this stage and the
steps to be taken to achieve the same.

8. Close the discussion: Plan for a good ending. Summarize the discussion and
discuss the scheduled next steps.

(65)
3- Tips on providing feedback

1. Provide feedback on actual events


2. Describe, don’t judge
3. Refer to specific behavior
4. Select issues and restrict to those.
5. Focus on aspects of performance that the individual can improve upon.
6. Provide positive feedback

4- Tips for implementing PMS

The most objectively designed performance management system in the world can
fail if it is not implemented with care and caution. Some common issues of PMS
implementation can be successfully avoided by following some of the simple tips
mentioned below:

What To Do Steps
• Ensure frequent communication • Ensure frequent two-way communication between
reporting officers and executives
• Take active steps to remove obstacles limiting
executive performance
• Create an atmosphere where executives are encouraged
to ask questions and clarifications
• Ensure that executive’s perceptions of performance
match the reporting officer’s

• Mutually agreed-upon goals • Share and communicate goals received from top
management for your unit/department
• Involve executives in goal-setting
• Document them so that there is a common
understanding of what is expected
• Evaluate your own performance first • Take time to evaluate your own performance first
• Get feedback from others (peers and superiors) to see
how well you are creating an achieving atmosphere for
your executive
• Document performance between appraisal meetings • Document examples of superior performance or
attitude
• Document failures to achieve and poor behaviour
• Avoid effect of the most recent event (halo effect or
horn Effect
• Prepare yourself and the executive for the discussion • Set a date, time and place after consulting with
executive
• Ensure that executive is aware of the purpose of the
meeting. Show the same professional courtesy that is
awarded to any business associate
• Give the executive the opportunity to ask clarifying
questions prior to and during the meeting
• Conduct the meeting successfully • Control the environment and do not allow interruptions
• Put the executive at ease
• Plan your opening remarks
• State the purpose of the discussion and the information
being used (e.g. statement of goals, written
documentation, peer feedback etc.)
• Ask for executive’s opinion • Ensure that executive does most of the talking
• Ask open ended questions that start with ‘Tell me
how.’, ‘Why do you think…’, and so on that provide an
executive to open up and talk at greater length
• Be open, candid and specific • Present your assessment openly, clearly and rationally
• Be prepared to present the facts and rationale if
challenged
• Give both good and bad news
• Discuss executive accomplishments
• Focus on performance, not personality
• Close the discussion in a professional manner • Summarize the discussion
• Ask for executive’s impression on how the meeting
went
• Thank the executive
• Explain the follow-up steps
(67)
Ma

(68)
CHAPTER-5
QUESTIONNAIRE AND DATA ANALYSIS

(69)
QUESTIONAIRRE ON PERFORMANCE MANAGEMENT
SYSTEM
Q1:-I know how my job contributes to the mission and goals of department and
organization:
1. STRONGLY AGREE __________

2. AGREE __________

3. DISAGREE __________

4. NEUTRAL __________

Q2:- I know what is expected of me on the job:


1. STRONGLY AGREE __________

2. AGREE __________

3. DISAGREE __________

4. NEUTRAL __________

Q3:-I am held accountable for achieving results:


1. STRONGLY AGREE _________

2. AGREE __________

3. DISAGREE __________

4. NEUTRAL __________

Q4:-I receive sufficient supervision to get job done:


1. STRONGLY AGREE __________

2. AGREE __________

3. DISAGREE __________

4. NEUTRAL __________

Q5:-My supervisor/team leader communicates what is expected of me on the job:


1. STRONGLY AGREE __________

2. AGREE __________
3. DISAGREE ___________

4. NEUTRAL ___________

(70)

Q6:-I feel enchanced to come up with new and better ways of doing thing:
1. STRONGLY AGREE ___________

2. AGREE ___________

3. DISAGREE ___________

4. NEUTRAL ___________

Q7:-My performance appraisal is fair reflection of my performance:


1. STRONGLY AGREE ___________

2. AGREE ___________

3. DISAGREE ___________

4. NEUTRAL ___________

Q8:-My supervisor /team leader provides constructive suggestion to improve my


performance:
1. STRONGLY AGREE ___________

2. AGREE ___________

3. DISAGREE ___________

4. NEUTRAL ___________

Q9:-People in my work area cooperate to get the work done:


1. STRONGLY AGREE __________

2. AGREE __________

3. DISAGREE __________

4. NEUTRAL __________
Q10:-I receive the training I need to perform my job:
1. STRONGLY AGREE __________

2. AGREE __________

3. DISAGREE __________

4. NEUTRAL __________

(71)

Q11:-The key performance Area (KPA) helps me to do my job well:

1. STRONGLY AGREE ________

2. AGREE ________

3. DISAGREE ________

4. NEUTRAL _________

Q12:- Reward & Recognition depends on how well employees perform their jobs:

1. STRONGLY AGREE ________

2. AGREE ________

3. DISAGREE ________

4. NEUTRAL ________

Q13:-Through PMS, steps are taken to deal with a poor performer who can’t or
will not improve:

1. STRONGLY AGREE _________

2. AGREE _________
3. DISAGREE _________

4. NEUTRAL _________

Q14:-In my work area, we set goals and objectives to meet our long range plan,
assisted by our reporting officers:

1. STRONGLY AGREE _________

2. AGREE _________

3. DISAGREE _________

4. NEUTRAL _________

Q15:- In NTPC , PMS system is effective:

1. STRONGLY AGREE _________

2. AGREE _________

3. DISAGREE _________

4. NEUTRAL _________

(72)
DATA ANALYSIS AND SUMMARY

To conduct this study, I have surveyed 15 Employees of NTPC LTD, Faridabad


Sample Size = 15

Q1:- I know how my job contributes to the mission and goals of department and
organization.

OPINIONS NO. OF RESPONDENTS %


STRONGLY AGREE 6 40%
AGREE 8 53.3%
DISAGREE 1 6.66%
NEUTRAL 0 0
TOTAL 15 100
(73)
Q2:- I know what is expected of me on the job:
OPINIONS NO. OF RESPONDENTS %
STRONGLY AGREE 7 46.6%
AGREE 8 53.3%
DISAGREE 0 0
NEUTRAL 0 9
TOTAL 15 100
(74)
Q3:-I am held accountable for achieving results:
OPINIONS NO. OF RESPONDENTS %
STRONGLY AGREE 4 26.6%
AGREE 10 66.6%
DISAGREE 1 6.66%
NEUTRAL 0 0
TOTAL 15 100
(75)
Q4:-I receive sufficient supervision to get job done:

OPINIONS NO. OF RESPONDENTS %


STRONGLY AGREE 7 46.6%
AGREE 8 53.3%
DISAGREE 0 0
NEUTRAL 0 0
TOTAL 15 100
(76)

Q5:-My supervisor/team leader communicates what is expected of me


on the job:
OPINIONS NO. OF RESPONDENTS %
STRONGLY AGREE 5 33.3%
AGREE 8 53.3%
DISAGREE 2 13.3%
NEUTRAL 0 0
TOTAL 15 100
(77)

Q6:-I feel enchanced to come up with new and better ways of doing
thing:
OPINIONS NO. OF RESPONDENTS %
STRONGLY AGREE 5 33.3%
AGREE 6 40%
DISAGREE 2 13.3%
NEUTRAL 2 13.3%
TOTAL 15 100
(78)
Q7:-My performance appraisal is fair reflection of my performance:
OPINIONS NO. OF RESPONDENTS %
STRONGLY AGREE 6 40%
AGREE 7 46.6%
DISAGREE 1 6.66%
NEUTRAL 1 6.66%
TOTAL 15 100
(79)

Q8:-My supervisor /team leader provides constructive suggestion to


improve my performance:

OPINIONS NO. OF RESPONDENTS %


STRONGLY AGREE 7 46.6%
AGREE 6 40%
DISAGREE 1 6.66%
NEUTRAL 1 6.66%
TOTAL 15 100
(80)
Q9:-People in my work area cooperate to get the work done:

OPINIONS NO. OF RESPONDENTS %


STRONGLY AGREE 7 46.6%
AGREE 7 46.6%
DISAGREE 0 0
NEUTRAL 1 6.66%
TOTAL 15 100
(81)

Q10:-I receive the training I need to perform my job:


OPINIONS NO. OF RESPONDENTS %
STRONGLY AGREE 5 33.3%
AGREE 5 33.3%
DISAGREE 4 26.6%
NEUTRAL 1 6.66%
TOTAL 15 100
(82)

Q11:-The key performance Area (KPA) helps me to do my job well:

OPINIONS NO. OF RESPONDENTS %


STRONGLY AGREE 3 20%
AGREE 9 60%
DISAGREE 1 6.66%
NEUTRAL 2 13.3%
TOTAL 15 100
(83)
Q12:- Reward & Recognition depends on how well employees perform
their jobs

OPINIONS NO. OF RESPONDENTS %


STRONGLY AGREE 1 6.66%
AGREE 8 53.3%
DISAGREE 5 33.3%
NEUTRAL 1 6.66%
TOTAL 15 100
(84)

Q13:-Through PMS, steps are taken to deal with a poor performer who
can’t or will not improve:
OPINIONS NO. OF RESPONDENTS %
STRONGLY AGREE 0 0
AGREE 6 40%
DISAGREE 5 33.3%
NEUTRAL 4 26.6%
TOTAL 15 100
(85)
Q14:-In my work area, we set goals and objectives to meet our long
range plan, assisted by our reporting officers

OPINIONS NO. OF RESPONDENTS %


STRONGLY AGREE 5 33.3%
AGREE 9 60%
DISAGREE 0 0
NEUTRAL 1 6.66%
TOTAL 15 100
(86)
Q15:- In NTPC , PMS system is effective

OPINIONS NO. OF RESPONDENTS %


STRONGLY AGREE 1 6.66%
AGREE 5 33.3%
DISAGREE 5 33.3%
NEUTRAL 4 26.6%
TOTAL 15 100
(87)
ANALYSIS
Q.NO Strongly Agree Disagree Neutral Total
agree (%) (%) (%)
(%)
1 contribution to 40% 53.3% 6.66% 0 100
the mission and
goals of
department and
organization:
2 expectation 46.6 53.3% 0 0 100
from the job:
3 accountability 26.6% 66.6% 6.66% 0 100
for achieving
results:
4 receive 46.6% 53.3% 0 0 100
supervision to get
job done:
5supervisor/team 33.3% 53.3% 13.3% 0 100
leader
communicates
what is expected
of me on the job:
6 I feel enhanced 33.3% 40% 13.3% 13.3% 100
to come up with
new and better
ways of doing
thing:
7 My 40% 46.6% 6.66% 6.66% 100
performance
appraisal is fair
reflection of my
performance
8)supervisor/team 46.6% 40% 6.66% 6.66% 100
leader provides
constructive
suggestion to
improve my
performance
9 People in my 46.6% 46.6% 0 6.66% 100
work area
cooperate to get
the work done:
10 I receive the 33.3% 33.3% 26.6% 6.66% 100
training I need to
perform my job:
11 The key 20% 60% 6.66% 13.3% 100
performance
Area (KPA) helps
me to do my job
well
12 Reward & 6.66% 53.3% 33.3% 6.66% 100
Recognition
depends on how
well employees
perform their jobs
13 Through PMS, 0 40% 33.3% 26.6% 100
steps are taken to
deal with a poor
performer who
can’t or will not
improve
14 In my work 33.3% 60% 0 6.66% 100
area, we set goals
and objectives to
meet our long
range plan,
assisted by our
reporting officers
15 In NTPC , 6.66% 33.3% 33.3% 26.6% 100
PMS system is
effective

(89)

Overall Analysis of Project


• All Employees in NTPC Faridabad are aware of the meaning of PMS.

• Maximum employees agree that PMS is contributed to the mission and goals
of department and organization. (93.33%)

• Maximum employees agree that they are held accountable for achieving
results. (93.2%)

• Maximum employees feel that the key performance Area (KPA) helps them
to do their job well (80%).
• 100% employees agree that they know what is expected from them on the
job.

• Majority feels that at FGPS PMS is outstanding and also it is good


(81.89%).

• 100% feels that they receive sufficient supervision to get job done.

• Majority feels that, supervisor/team leader communicates what is expected


from them on the job (86.6%)

• 70.3% are strongly agree that they feel enhanced to come up with new and
better ways of doing thing.

• 86.6% are agree that their performance appraisal is fair reflection of their
performance.

(90)

• 59.9% agree while 33.3% are disagree that Reward & Recognition depends
on how well employees perform their jobs.

• 40% are agree while 33.3% are disagree, also 26.6% don’t know whether
Through PMS, steps are taken to deal with a poor performer who can’t or
will not improve.

• 93.3% are agree that In their work area, they set goals and objectives to
meet their long range plan, assisted by their reporting officers
• 40% are agree while 33.3% are disagree that In NTPC, PMS system is
effective. Also 26.6% don’t know whether PMS is effective or not.

CONCLUSION

• From the above analysis, it is clear that NTPC FARIDABAD has a good and
effective PMS system. This is evident from the fact that all the employees
are aware of the meaning of PMS and they also know what is expected from
them on the job.
Also 100% feels that they receive sufficient supervision to get job
done. It has also been seen that PMS is contributing to the mission and goals
of department and organization.

It also appears that in the PMS system, both the management and workers
are equal partners.

(91)
CHAPTER-6

RECOMMENDATIONS

(92)

RECOMMENDATIONS

1) 59.9% agree while 33.3% are disagree that Reward & Recognition depends
on how well employees perform their jobs, so NTPC Should have taken
measures to tackle with this problem.

2) 40% are agree while 33.3% Employees are disagree, and 26.6% don’t know
whether Through PMS, steps are taken to deal with a poor performer who
can’t or will not improve, so It is the another issue which NTPC should have
to be considered.

3) 26.6% Employees don’t know whether PMS is effective or not , so PMS


officer should try to know about them, why they are disagree.

(93)
CHAPTER-7

LIMITATIONS

(94)

Limitations:

• The sample size is a limitation in this report as we only considered 30


respondents, which is not representative of the whole industry.

• Being students we have our own limitations so this report is not a complete
reflection of the industry.
• And moreover the time was major constraint in our project as being student we
had our own time constraints.,

• More over our research depends on the behavior of the respondents. So it can also
vary from person to person.

(95)
BIBLOGRAPHY
AND
WEBOGRAPHY

(96)

BIBLOGRAPHY

• www. Hryillage .com

www.ntpc.co.in / www.ntpcindia .com

www.hrworld.com

• Human Resource Management by Ashwathapa.


• Performance Management System by Stevens and Roddick.

WEBOGRAPHY

• www.ntpc.co.in

• Websites of Faridabad gas power station (191.254.172.6)

• www.google.com

(97)
ANNEXURES

(98)
ANNEXURES

1. Format of Invitation to Executive to Participate in PMS Process


NATIONAL THERMAL POWER CORPORATION LTD.

Interoffice Memo

Date:

From: Name of Reporting Officer


To: Name of Executive

Subject: Performance Management System

You are requested to attend a meeting regarding the following aspect of the
Performance
Management System for the current year (tick one):
• Performance Planning
• Mid Year Review
• Annual Assessment

The meeting will be held on date at time at venue. Please come prepared for the
discussion.

Signature of Reporting Officer

(99)
2. Final Score Feedback Form

NATIONAL THERMAL POWER CORPORATION LTD.

Performance Management System – Final Score


Assessment Year – April 200X to March 200Y

Name: Level:
Unit/Project/Department: Location:
Final Scores: Relative Ranking (√)
Part I:
Part II: Top 20%
Part III: Middle 70%
Part IV: Bottom 10%
Total Score:
Comments (if any):
Reporting Officer Name:
Reporting Officer Signature:

(100)
3. PMS Audit Format
NATIONAL THERMAL POWER CORPORATION LTD.
PMS Audit Format

Level: L1 / L2 / L3
Corporate / Region / Plant
Audit Dept.1 Dept.2 Dept.3 Dept.4 Remarks on
Parameters Sample Size Sample Size Sample Size Sample Size non
Conformance
Cascading Of
KPAs
Parity in Target
Setting
Targets based on
Data
Optional
Competencies in
Line with the Job
holders
responsibility
and roles
Consistency in
Interdepartmental
Target Setting
Mid Year KPA
changes should
be as per PMS
Alignment of the
individual scores
reflect the
departmental
performance
Accuracy in
calculation of
scores
Evaluation has
been fair with
limited raters
bias
Deviations from
the Principles of
Normalization
Review of the
final top
performers list

(101)

CONFIDENTIAL PERFORMANCE APPRAISAL FORM


In NTPC Ltd. (FGPS), the HR manager judge the performance of the subordinate by filling the
performance appraisal form, and they also judge the confidence of the subordinate by this form.

EMPLOYEES DETAILS

Employee Name………………………………………………….

Designation……………………………………………………….

Department…………………………………………………………

Gender Male…….. Female………………..


Age 20-30years….. 31-40years…………….

41-50………. 51 and above………….

Education detail

10th ……….. 12th ……….. I.T.I………………

Diploma…….. Graduation…… Post graduation……

Years of service

0-10 years……. 11-20years……………..

21-30years…….. 31 years and above………

(102)

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