Transcript
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APROJECT REPORT

ON

SUBMITTED BYGARIMA AGGRAWAL3RD SEMESTER 2004-2006D.D.U. GORAKHPUR UNIVERSITYGORAKHPUR

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PREFACE

The well planned, properly executed and evaluated vocational training helps a lot in including good work culture .It provide linkage between to problem solving based on board

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understanding of process and mode of operation of an organization.

This project report if the result of study conducted in EOC (engineering office complex) NTPC, Noida during the period 13th JUNE to 6th AUGUST 2005.This project report is basically rooted to study “GRIEVANCE SETTLEMENT MACHINERY”.

In their working lives, employees occasionally have cause to be uncomfortable, disappointed or aggrieved either about certain managerial decision, practices or service condition.

In the present day social context, especially in democratic systems, it is accepted that employees should be able to express their dissatisfaction, whether it is an irritation, a serious problem or a difference of opinion with the supervisor over terms and conditions of employment.

The grievance procedure is one of the most important means that is available to the employees with which they can express their dissatisfaction. It is also a mean available to management to keep a check on the relevant diagnostic data on the state of organization’s health.

I feel rewarded by the management of NTPC who gave me an opportunity to study, in such a large organization, which is engaged in generating thermal power.

GARIMA AGGRAWAL

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ACKNOWLEDGEMENT

It is said, “No learning is possible without any proper guidance and no research endeavor is a solo exercise, some contribution is performed by various individual”

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By acknowledging the guidance, support and assistance, I pay my deepest sense of guidance to the management of NTPC.

I hereby acknowledge my profound gratitude to MR.P.P.AKHORI under whose guidance I have studied “the training and development” of NTPC. MR. ASHOK MEHRA (exe-secretary-NTPC) who helped in collecting material related to my project, MISS INDU RAMAKRISHNAN for her valuable guidance for helping me in accomplishing this project report.

I am highly thankful the above-mentioned employees for their continuous encouragement and inspiration that helped me in completing this project report.

My special wishes and thanks shall always be for those who responded to me and extended their co-operation in preparing and collecting data by which this project report has been smoothly conducted.

SUBMITTED BY:

GARIMA AGGRAWAL

CONTENTS

EXECUTIVE SUMMARY

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INTRODUCTION

COMPANY PROFILE

THERETICAL BASE

SOURCES OF GRIEVANCE AND THEIR CAUSE

GRIEVANCE HANDLING PRACTISES

GRIEVANCE PROCEDURE

SETTLEMENT OF GRIEVANCE IN INDIAN INDUSTRY

GRIEVANCE SETTLEMENT MACHINERY IN NTPC

ANALYSISAND INTERPRETATION

CONCLUSION

RECCOMENDATION

LIMITATION OF THE STUDY

BIBLEOGRAPHY

ANNEXURES

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EXECUTIVE SUMMARY

National Thermal Power Corporation Limited (NTPC) is the largest thermal power generating company of India. A public sector company incorporated

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in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. Within a span of 30 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country.

National Thermal Power Corporation is the pride of India's power industry. Based on 1998 data, carried out by Data monitor 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

In my project, entitled-“Grievance Settlement Machinery” at Engineering Office Complex, NTPC, I have studied the grievance procedure for employees in HR department .In my own style, I have tried to find out the present system is effective or not i.e. to understand the needs of employees and provide them formal and regular feedback.

For this purpose, I used questionnaires to get the feedback of the employees related to their grievances and how it is handled. I also went through different books, websites & magazines to gather the material related to this project. After collecting the information, I analyzed the data and provide the necessary suggestions to improve the system.

The research methodology used the following sources; Primary Sources: Secondary Sources:

Internal sources External Sources

As the data collection tools different methods were used; Interview MethodQuestionnaires

In the era of liberalization, globalization and customer enthusiasm, the rules of the business are changing. In practically every sector of the economy, the dynamics of competition are shifting away from the industrial logic of the past to the service – driven philosophy of the future. The Human Resource of any company has to stand up to face this challenge

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Methodology for the study of application level evaluation has taken care of

with following parameters

Selection of the time period

Preparation of questionnaire

Distribution & Collection of questionnaire

Analysis of data

Grievance settlement had the impact in improving performance on the

Analysis was done for both the executives and non-executives

It is highly recommended to make the grievance procedure more and more flexible, simple, and speedy as Justice delayed is justice denied. These are the corner stone of a sound personnel policy.

NTPC THE TOTAL POWER COMPANY

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VISION

To be one of the world’s largest and vest power utilities, powering India’s growth.

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CORE VALUES (COMIT):

Customer FocusOrganization PrideMutual Respect and TrustInitiative and Speed

Total Focus

CORPORATE MISSION

Make available reliable and quality power in increasingly large quantities at appropriate tariffs and ensure timely realization revenues.

Adopt a broad based capacity portfolio including hydropower, LNG nuclear power and non-conventional and ECO-FRIENDLY fuels.

Plan and speedily implement power projects using state of the art technologies.

Be an integrated utility by implementing strategic DIVERSIFICATIONS in areas such as power trading, distribution, transmission, and coal. Mining, coal beneficiation etc.

Develop a strong portfolio of profitable business in overseas market including technical service generation assets etc.

Continuously attract and develop competent and committed human resources to match world standards.

Lead fundamentals and applied research for adoption of state of the art technologies, breakthrough efficiency improvements and new fuels.

Lead developmental efforts in the INDIAN power sector including assisting state utility reform advocacy etc.

Be a socially responsible corporate entity with thrust on environment protection, ash utilization, community development and energy conservation.

CORPORATE OBJECTIVES GROWTH:

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To add generating capacity within prescribe time and cost. To expand CONSULTANCY operations and to participate in ventures

abroad. To diversify into power related business to ensure integrated

development of energy sector in India. To operate and maintain power stations at high availability ensuring

minimum cost of generation. To maintain the financial soundness of the company by managing the

financial operations in accordance with good commercial utility practices.

To function as a responsible corporate citizen and discharge social rehabilitation.

The corporation will strive to utilize the ash produced at its station to the maximum extent possible through production of ash, bricks, building materials etc.

To introduce, assimilate and attain self-sufficient in technology, acquire expertise in utility management practices and to disseminate knowledge essentially as a contribution of the power sector in the country.

THE COMPANY

National Thermal Power Corporation Limited (NTPC) has been the power behind India’s

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sustainable power development since November 1975.Contributing 26% of the country’s entire power generation NTPC today lights up every fourth bulb in the country.NTPC is the largest thermal power generating company of India. With ambitious growth plans to become a 56,000 MW power company by2017, NTPC-the largest power utility of India has already diversified into hydro sector. Further initiatives for greater organisation transformation have been approved under PROJECT DISHA.

A public sector company 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.

SHAREHOLDING PATTERN

APromoters Holding

  

1Indian Promoters (Government Of India)(including 700 shares held in the names of nominees of President of India)737963440089.50

 Indian Promoters

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NILNIL

 Foreign PromotersNILNIL

2Persons Action in ConcertNILNIL

 Government of India   7379633700   (89.50%)  

 Sub Total737963440089.50

BNon-Promoters Holding  

3Institutional Investors  

aMutual Funds & UTI251010410.30

 Mutual Funds   25101041    (0.30 %)(No individuals Mutual funds holding 1% and above)  

bBanks, Financial Institutions, Insurance Companies(Central/State Govt. Institutions/Non Govt. Institutions)(No individuals institutions holding 1% and above)642204430.78

cForeign Institutional Investor4906664175.95

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 Capital Research MNGT.Co. A/C Capt. World Growth & income fund   (108890000   1.32%)  

 Sub Total5799879017.03

COthers   

aPrivate Corporate Bodies(No Individual Corporate Bodies are holding 1% and above)356804870.43

bIndian Public2414671972.93

cNRI/OBCs47546340.06

 Foreign Individuals8560.00

dOthers : Trust22664270.03

 : Clearing Members16063600.02

 : Directors & Their Relatives  (Excluding 500 shares held as nominees of   President of India as given in A(1) above)661380.00

 Sub Total285842099

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3.47

 Grand Total8245464400100.00

CATEGORY % OF HOLDING SHARES HELD ( 30.06.05)

NOTE: 495421907 equity shares, being held by FIIs/NRIs/OCBs/Foreign Collaborators Foreign Banks and Foreign Nationals representing 6.00% of Share Capital.

NTPC : THE POWER GENERATING COMPANY

Within a span of 30 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 Data monitor 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

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COMPANY PROFILE

NTPC's core business is engineering, construction and operation of power generating plants and also providing consultancy to power utilities in India and abroad. As on date the installed capacity of NTPC is 23,749 MW through its 13 coal based (19,480 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’s share on 31 Mar 2005 in the total installed capacity of the country was 20.4% and it contributed 27.1% of the total power generation of the country during 2004-05.

NTPC has set new benchmarks for the power industry both in the area of power plant construction and operation. 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 organisations in the power business.

NTPC is committed to the environment generating power at minimal environmental cost and preserving the ecology in the vicinity of the plants. NTPC has undertaken massive afforestation in the vicinity of its plants. Plantations have increased forest area

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and reduced barren land. The massive afforestation by NTPC in and around its Ramagundam Power station (2100 MW) has contributed reducing the temperature in the areas by about 3°c. NTPC has also taken proactive steps for ash utilisation. In 1991, it set up Ash Utilisation Division to manage efficient use of the ash produced at its coal stations. This quality of ash produced is ideal for use in cement, concrete, cellular concrete, building material.

A "Centre for Power Efficiency and Environment Protection (CENPEEP)"has been established in NTPC with the assistance of United States Agency for International Development. (USAID). Cenpeep is an efficiency oriented, eco-friendly and eco-nurturing initiative - a symbol of NTPC's concern towards environmental protection and continued commitment to sustainable power development in India.

As a responsible corporate citizen, NTPC is making constant efforts to improve the socio-economic status of the people affected by the its projects. Through its Rehabilitation and Resettlement programmes, the company endeavors to improve the overall socio-economic status of Project Affected Persons.

NTPC was among the first Public Sector Enterprises to enter into a Memorandum of Understanding (MOU) with the Government in 1987-88. NTPC has been Placed under the 'Excellent category' (the best category) every year since the MOU system became operative.

Recognising its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector ‘Navratnas’- a potential global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realise its vision of being “one of the world’s largest and best power utilities, powering India’s growth”.

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HISTORY

NTPC was establish, as a public sector power utility by government of India in the year 1975 at a time when the country was under acute shortage of power and other players in the field were not able to cope up with situation.

NTPC true to the expectation played a key role in the development of the sector and has emerged as the largest power utility, lighting ever fourth bulb in the country. Powering the growth of the country power in plenty.

The growth of the organization had been phenomenal and with the passage of time the batons of leadership started changing to new hands families at different levels of organization. Therefore as it happens in large families there of need for continuous reminder of the values and traditions so that the performance culture remains unaffected and all the members of the realizing the vision of the country.

As a part of JR business strategy organization focused on evolving a codified vision and values statement to be the guiding compass for all employees. The first exercise was made in 1995-96 and the same were widely shared with all sections of the employees.

Based on the nature of feedback received the vision and values were revisited in May 2000 through a process of building shared views from all business units of the company.

The revised vision and value statement have been evolved and notified to all the members of the organization for their actualization these have to be shared and practiced by each one of the family members of the NTPC, and then only they can accomplish the challenges before the community of the NTPC.

It is sometime now that the revised vision and values are in operation and it has generated a lot of appreciation and understanding amongst employees. In order to have a common understanding and perspective of the meaning of the values, which form the pillars of the organization, an effort is being made to consolidate meaning and expected behavior for uniform appreciation and implementation of the values by all members of the NTPC.

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While doing this the contribution of task force on values at corporate center, shares view of business unit heads and various feedbacks received from different units and all cross sections of employees have been liberally used.

NTPC COVERING INDIA

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Within a span of 30 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country.

.

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The operating performance of NTPC has been considerably above the national average. The availability factor for coal stations has increased from 85.03 % in 1997-98 to 91.20 % in 2004-05, which compares favorably with international standards. The PLF has increased from 75.2% in 1997-98 to 87.51% during the year 2004-05 which is the highest since the inception of NTPC.

However, for regions other than Eastern Region, which has power evacuation constraints due to low system demand, a PLF of 87.51 was achieved during this year. Over last ten years, employee productivity has almost doubled as measured by the ratio of turnover to number of employees.

It may be seen from the table below that while the installed capacity has increased by 40.97% in the last seven years, the employee strength went down by only 0.41%Description Unit 1997-98 2004-05 % of increaseInstalled Capacity MW 16,847 23,749 40.97Generation MUs 97,609 1,58,110 61.98No. of employees No. 23,585 23,491 -0.41Generation/employee MUs 4.14 6.73 62.63

The table below shows the detailed operational performance of coal based stations over the years.

OPERATIONAL PERFORMANCE OF COAL BASED NTPC STATIONS   Unit 92-93 93-94 94-95 95-96 96-97 97-98 98-99 99-00 00-01 01-02 02-03 03-04

Generation BU 66.1 76.4 79.1 93.2 97.6 106.2 109.5 118.7 130.1 133.2140.86

149.16

PLF % 70.00 78.07 76.57 78.80 77.00 75.20 76.60 80.39 81.8 81.1 83.6 84.4AvailabilityFactor

% 83.34 86.48 85.97 85.32 84.10 85.03 89.36 90.06 88.54 81.8 88.7 88.8

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The energy conservation parameters like specific oil consumption and auxiliary power consumption have also shown considerable improvement over the years.

From concept to commissioning and beyondNTPC, as a consultant in power business follows an integrated approach to problem solving for business organisations from all over the world. Combining the technical, managerial and financial skills, and keeping in mind the cross-functional implications; it provides the holistic solution for organizations in power and related infrastructure organisation in power and related infrastructure sector.

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The prowess of NTPC in handling the power business springs from the fact that it has done engineering, project management and operates over 22,000 MW capacity, covering about 75 coal/gas units of capacities varying from 50 MW to 500 MW. NTPC has developed nearly 8,000 MW for other utilities and Independent Power Producers. With the string of achievements behind it, NTPC has emerged as the acknowledged leader in engineering, construction, O&M and management of power projects.

The Consultancy Wing of NTPC is the nodal point for all the Consultancy and turnkey project for clients. NTPC has the capability and expertise to provide the total range of services from Concept to Commissioning of power station covering areas such as feasibility & EIA studies, design, engineering, QA&I, procurement, project management, construction supervision, testing, commissioning, operation & maintenance and training etc. NTPC has the varied and rich experience of working with equipment/systems sourced from different parts of the world such as USA, UK, France, Germany, Japan, Italy, and Russia etc.

The Consultancy Wing of NTPC, with an ISO 9001 accredition, undertakes all the Consultancy and turnkey project contracts for clients. NTPC has the capability and expertise to provide the total range of services from Concept to Commissioning of power station covering areas such as Feasibility & Environmental Impact Assessment studies, design, engineering, Quality Assurance and Inspection services, procurement, project management, construction supervision, testing, commissioning, operation & maintenance and training. NTPC has rich experience of working with equipment sourced from different parts of the world such as USA, UK, France, Germany, Japan, Italy, Russia etc.

NTPC is registered as a consultant with several leading international development and financial institutions such as The World Bank, The Asian Development Bank, the African Development Bank, and UNDP.

NTPC's vast pool of qualified technical and managerial manpower is well supported by excellent infrastructure facilities to deliver customer value through Time, Quality and Cost standards meeting the global standards.

At NTPC, we offer consultancy services related to infrastructure sector business such as:

Fossil fuel based thermal power generation

Combined cycle power generation

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Cogeneration

Non-conventional energy

Water supply and treatment

Environment engineering and management

Surface transport (Roads, bridges and fuel transportation)

Town planning and development

NTPC as Consultant

Largest Power Utility in South AsiaIn 29 years since its inception, NTPC has emerged as the largest power utility in South Asia, owning 13 Coal based Super Thermal Power Stations and 7 Gas based Combined Cycle Power Plants, with a approved capacity of 30,425 MW and has total installed capacity of 22,249 MW.

In a survey carried out by MarketLine International Ltd, London, NTPC has been ranked as the 6th Largest Thermal Power Generating Company in the World and the 2nd most efficient in capacity utilization amongst these thermal power generators.

Integrated Project ManagementNTPC follows a systems approach to Project Management integrating the various functions such as Engineering, Procurement, Quality Assurance & Inspection, Construction Management, Operations Management etc. in all facets of project construction from Concept to Commissioning.

In recognition of the systems adopted by NTPC and quality of services provided, NTPC has received ISO 9000 accreditation for most of its divisions at Corporate Centre including Consultancy Wing and its various Power Stations.

Expertise from Concept to Commissioning NTPC has the capability and expertise to provide the total range of services from Concept to Commissioning of Power Stations covering areas such as feasibility & EIA studies, design, engineering, QA&I, construction supervision, testing, commissioning, operation and maintenance and training etc.

Expertise based on rich O&M experienceNTPC has developed rich experience in engineering and O&M of conventional fossil fuel fired Power Plants based on Coal/Oil as well as Gas/liquid fuel by way of implementation of its own Power

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Plants covering 32 units of 200/210 MW & 16 units of 500 MW of Coal/Oil fired Plants and 7 Gas based Combined Cycle Power Plants

O&M feedback incorporated in designsBeing a power utility itself, NTPC has the unique advantage of receiving regular feedback on various operational and maintenance aspects from its generating plants. This feedback is suitably incorporated for improvement in future designs.

State-of-the-art equipment/systems procured through ICBMost of the NTPC power plants have been funded by International Funding Agencies like the World Bank, KfW, ADB, JBIC, etc. These plants incorporate state-of-the-art equipment and systems generally procured through International Competitive Bidding (ICB).

Experience of various Equipment/SystemsNTPC has the varied and rich experience of working with Plant & Equipment sourced from different parts of the world such as USA, UK, France, Germany, Japan, Italy, Russia, etc.

Registered with World Bank & other Funding AgenciesNTPC is registered as a Consultant with the World Bank, Asian Development Bank, African Development Bank and other international funding agencies.

Experience of working with International ConsultantsNTPC engineers have had the opportunity of working in close association with several international consultants viz. Black and Veatch Intl., USA; UE&C, USA; British Electricity International, U.K.; EDF, France; Gilbert Commonwealth, USA and many more.

Experience of working overseasNTPC has experience in working overseas in countries of West Asian countries (middle east), SAARC countries and Africa.

Familiarity with Environment RegulationsWith funding from International Funding Agencies, NTPC is fully familiar with the requirements of various Environment Control Regulations imposed by statutes and the funding agencies.

Performance comparable to best performing utilitiesDuring the year 2003-2004 NTPC stations have generated 149 Billion units of electricity, which is about 26% of the total annual generation in the country. NTPC coal based Stations recorded an impressive Plant Load Factor (PLF) of above 80%. Due to successful implementation of modern management systems,

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NTPC power plants could achieve performance level comparable to most efficient power plants of the World.

Largest pool of qualified manpowerNTPC has a vast pool of over 24,000 qualified technical and managerial manpower. This include over 6800 executives, well supported by highly trained staff and other infrastructure facilities for providing services for its own Power Plants as well as to its distinguished Clients in various areas.

Training facilitiesNTPC has full-fledged facilities in Power Management Institute (PMI), Noida, for providing training in all aspects of Management and Systems for power sector. NTPC also has Training Simulators both for Coal as well as Gas based Stations for training personnel in Operation and Maintenance of Power Plants.

Research & DevelopmentNTPC has set up full-fledged Research & Development facilities in its R&D Centre, Noida with the objective of resolving O&M problems through applied research using analytical tools. The R&D centre is fully equipped with most of the new ultramodern testing & laboratory equipment. The main functions are to carry out applied research work to help achieve improvement in reliability, to provide laboratory test services, to undertake scientific studies in environmental pollution and waste utilization, etc.

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Harmony between man and environment is the essence of healthy life and growth. Therefore, maintenance of ecological balance and a pristine environment has been of utmost importance to NTPC.

Environment protection continues to be a key area of activity in NTPC along with growth in generation of power.

Driven by its commitment for sustainable growth of power, NTPC has evolved a well defined environment management policy for minimising environmental impact arising out of setting up of power plants and preserving the natural ecology.

In November 1995, NTPC became the first public utility to bring out a comprehensive document entitled "NTPC Environment Policy and Environment Management System". Amongst the guiding principles, adopted in the document, are the company's proactive approach to environment, optimum utilisation of equipment, adoption of latest technologies and continual environment improvement. The policy also envisages efficient utilisation of resources, thereby minimising waste, maximising ash utilisation and

providing green belt all around the plant for maintaining ecological balance.NTPC's environment-friendly approach to power has already begun to show results in conservation of natural resources such as water and fuel (coal, oil & gas) as well as control of environmental pollution. NTPC has chalked out a set of well-defined activities that are envisaged right from the project conceptualisation stage.

Performance enhancement and upgradation measures are undertaken by the organisation during the post operational stage of the stations. These activities have greatly helped to minimise the impact on environment and preserve the ecology in and around its power projects. These measures have been enumerated as follows.Environment Management System / ISO-14001 NTPC has established Environmental Management System (EMS) as per ISO-14001 at its different establishments. As a result of pursuing sound environment management practices, all NTPC power stations (excluding Simhadri which was commissioned recently) as well as the Corporate Environment Management and Ash Utilisation Division have already been certified for ISO-14001 EMS by reputed Certifying Agencies. The only remaining station Simhadri is also in the process of obtaining the ISO-14001 Certification.Environment PolicyThe salient features of NTPC's Environment Policy and Environment Management System as adopted in November, 1995 are enumerated below.

To achieve and maintain a leader's role in the area of Environment Management in the Power Sector in the country.

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To keep in view the various environmental requirements in all its business decisions.

To continuously adopt ways and means for Environment Protection and Environment Improvement around its business units.

To adopt sound Environment Management practices. To aim at full compliance with the statutory norms / requirements.

In addition, we have specific environmental policies at our Environment management and Ash Utilization Division at Corporate Centre and at each station as a part of EMS as per ISO-14001. The Environment Policy of the Corporate Environment Management and Ash Utilization Division as adopted in March, 2003 under the EMS is stated below.

Continual improvement of environmental performance of all NTPC power stations in pursuance of our vision of powering India’s growth.

Continually monitor all the stations for pollution prevention and environmental protection.

Conservation of natural resources including land by utilizing more and more ash generated by thermal power stations of NTPC.

Assist stations for compliance with relevant environmental legislations and regulations.

To promote environmental awareness amongst the employees of NTPC. To create awareness of Ash Utilisation and its environmental benefits among the

Engineers, Builders, Architects, Potential Entrepreneurs, NTPC personnel and public at large.

NTPC has undertaken a comprehensive Ecological Monitoring Programme through Satellite Imagery Studies covering an area of about 25 Kms radius around some of its major plants. The studies have been conducted through National Remote Sensing Agency (NRSA), Hyderabad at its power stations at Ramagundam (AP), Farakka, (WB), Korba (Chhatisgarh),Vindhyachal (MP), Rihand (UP) and Singrauli (UP).

. Advanced / Eco-friendly TechnologiesNTPC has gained expertise in operation and management of 200 MW and 500MW Units installed at different Stations all over the country and is looking ahead for higher capacity Unit sizes with super critical steam parameters for higher efficiencies and for associated environmental gains. At Sipat (Chattisgarh), higher capacity Units of size of 660 MW and advanced Steam Generators employing super critical steam parameters have already been envisaged as a green field project. Higher efficiency Combined Cycle Gas Power Plants are already under operation at all gas-based power projects in NTPC. Advanced clean coal technologies such as Integrated Gasification Combined Cycle (IGCC) have higher efficiencies of the order of 45% as compared to about 38% for conventional plants. NTPC has initiated a techno-economic study under USDOE / USAID for setting up a commercial scale demonstration power plant by using IGCC technology. These plants can use low grade coals and have higher efficiency as compared to conventional plants.

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With the massive expansion of power generation, there is also growing awareness among all concerned to keep the pollution under control and preserve the health and quality of the natural environment in the vicinity of the power stations. NTPC is committed to provide affordable and sustainable power in increasingly larger quantity. NTPC is conscious of its role in the national endeavour of mitigating energy poverty, heralding economic prosperity and thereby contributing towards India's emergence as a major global economy.

ASH UTILIZATION

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Ash utilization is one of the key concerns at NTPC. The Ash Utilization Division, set up in 1991, strives to derive maximum usage from the vast quantities of ash produced at its coal-based stations. The division proactively formulates policy, plans and programme for ash utilization. It further monitors the progress in these areas and works at developing new fields of ash utilization.

The quality of ash produced conforms to the requirements of IS 3812. The fly ash generated at NTPC stations is ideal for use in cement, concrete, concrete products, cellular concrete, lightweight aggregates, bricks/blocks/tiles etc. This is attributed to its very low loss on ignition value. To facilitate availability of dry ash to end-users all new units of NTPC are provided with the facility of dry ash collection system. Partial dry ash collection systems have also been set up at the existing stations where these facilities did not exist earlier. Augmentation of these systems to 100% capacity is presently in progress.

As the emphasis on gainful utilization of ash grew, the usage over the years also increased. From 0.3 million tonnes in 1991-1992, the level of utilization during 2002-03 stood at over 5.67 million tonnes.

The various channels of ash utilization currently include use by a number of Cement, Asbestos-Cement products & Concrete manufacturing Industries, Land Development, Roads & Embankments, Ash Dyke Raising, and Building Products. Area wise break-up of utilization for the year 2002-03 is as under:

Area of Utilization Quantity (in Million Tons)

Land Development 2.19

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Cement & Concrete 2.16

Roads/Embankments 0.73

Ash Dyke Raising 0.47

Bricks 0.11

Others 0.01

Total 5.67

NTPC has adopted user friendly policy guidelines on ash utilisation. These include actions identified for:i) Ash Collection & Storage System

ii) Facilities & Incentives to users

iii)Direct Department Activities

iv) Administrative & Financial aspects.

In order to motivate entrepreneurs to come forward with ash utilisation schemes, NTPC offers several facilities and incentives. These include free issue of all types of ash viz. Dry Fly Ash / Pond Ash / Bottom Ash & infrastructure facilities, wherever feasible. Necessary help and assistance is also offered to facilitate procurement of land, supply of electricity etc. from Govt. Authorities. Necessary techno-managerial assistance is given wherever considered necessary. Besides NTPC uses only ash based bricks & Portland pozzolana cement (FAPPC) in most of its construction activities. FAPPC (as per IS 1489 Part-1) and Fly Ash Bricks (as per IS 12894) have been included in our standard specifications. Demonstration projects are taken up in area of Agriculture, Building materials, Mine filling etc.

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Besides, literature related to Cement Concrete & Fill Material has also been compiled and is available in a booklet form.

A documentary film, titled 'Coal ash as a Fill Material', has also been produced covering use of ash in construction activities of NOIDA-Gr.NOIDA Expressway, Delhi Metro Rail Corporation, Sarita Vihar Flyover (in Delhi) etc.

RECENT INITIATIVES TAKEN BY GOVT. AGENCIES i) Indian Road Congress (IRC) have issued Guidelines (SP- 58) for use of ash

as fill material in Road Embankments (March 2001)ii) Indian Road Congress (IRC) has published "Rural Roads Manual" wherein

various methods of utilization of ash in roads and embankment construction are covered. (Feb. 2002)

iii) As per Bureau of Indian Standards (BIS) fly ash up to 35% by weight can be used in manufacture of Portland Pozzolana Cement (PPC).

iv) IS 456-2000: Code of practice for plain and reinforced concrete allows use of fly ash (up to 35 %) as cementations content in concrete (where OPC is used).

v) IS 456-2000: Code of practice for plain and reinforced concrete also allows use of fly ash based PPC in reinforced concrete works.

vi) Items of Clay Ash Bricks and Fly Ash-Lime Bricks have been incorporated in CPWD's Delhi Schedule of Rates (DSR-2002).

vii) Ministry of Envt. & Forests (GOI) has issued draft amendment (dated. 06.11.2002) to Gazette Notification on ash utilization (dated. 14.09.1999) which is under finalization and final notification is expected to be issued soon. It covers:

a.Use of at least 25 % ash in manufacture of clay bricks within 100 Kms of

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coal based power stations

b.Mandatory use of ash based bricks/blocks/tiles etc. by construction agencies in phased manner within 100 Kms of coal based power stations.

c.Mandatory use of ash in low-lying landfill & construction of road embankments & flyovers within 100 Kms of coal based power stations.

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JOINT VENTURES

NTPC, with a rich experience of engineering, constructing and operating nearly 20,000 MW of thermal generating capacity, is the largest and one of the most efficient power companies in India, having operations that match the global standards. NTPC has identified Joint Ventures, strategic alliances as well as acquisitions and diversifications as viable and desired options for its business development.

NTPC looks for opportunity to create such joint ventures and strategic alliances, in the entire value chain of the power business. NTPC as a partner endows the Joint Venture Alliances with a winning edge. Acquisitions and Diversifications in the areas related to the core business not only ensure growth but also add to the robustness of the company. Diversification is carried out either directly or through subsidiaries/JVs. JOINT VENTURE PARTNERSThe following joint venture companies have been formed so far:

NTPC -ALSTOM POWER SERVICES PVT. LTD. (NASL)(Incorporated in 1999 and formerly known as NTPC-ABB ALSTOM POWER SERVICES PVT. LTD)

OBJECTIVE: Undertake Renovation & Modernization of power stations in India and other SAARC countries.

PROMOTERS' EQUITY:

NTPC: 50% ALSTOM Power Generation AG : 50%

UTILITY POWER TECH LTD(Incorporated in 1996)This JV has been promoted with BSES Limited, a private sector Indian power company.

OBJECTIVE: To undertake project construction & management activities

PROMOTERS' EQUITY:

NTPC: 50%BSES: 50%

POWER TRADING CORPORATION(Incorporated in 1998)This JV has been promoted with Power Grid Corporation of India Ltd (PGCIL), a Government owned transmission major in India. Power Finance Corporation (PFC), a power sector finance company owned by the Government of India and National Hydro Electric Power Corporation Ltd. (NHPC), a Government owned hydro power utility.

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OBJECTIVE: To trade power generated by mega power projects in India

PROMOTERS' EQUITY:

NTPC: 8%   Tata Power: 10%PGCIL: 8%   DV: 10%PFC: 8%   FII: 18.5%NHPC: 8% *Balance 29.5% unallocated.

NTPC-SAIL POWER COMPANY (PVT) LTD (NSPCL)

This JV has been formed on 23rd March, 2001 with Steel Authority of India Ltd (SAIL), a Government of India undertaking engaged in the steel manufacturing business and owns four large integrated steel plants in the country.

OBJECTIVE: To supply power to the Durgapur Steel Plant and Rourkela Steel Plant of Steel Authority of India Limited (SAIL) from its Coal based power stations at Durgapur (West Bengal) 2x60MW and Rourkela (Orissa) 2x60 MW.

PROMOTERS' EQUITY:

NTPC: 50% SAIL : 50%

BHILAI ELECTRIC SUPPLY COMPANY LTD (BESCL)This JV has been formed on 22nd March, 2002 with Steel Authority of India Limited (SAIL), a Government of India undertaking engaged in the steel manufacturing business.

OBJECTIVE: To supply power to the Bhilai Steel Plant (BSP) of Steel Authority of India Limited (SAIL) from its Coal based power station at Bhilai (Chattisgarh) 2x30 MW + 1x14 MW.

PROMOTERS' EQUITY:

NTPC: 50% SAIL : 50%

PROPOSED JOINT VENTURESNTPC has also entered into Memorandum of Understanding (MOU) with various Company(ies) to form alliances / joint ventures:

1.0 INDIAN OIL CORPORATION LTD (IOCL) IOCL, a Govt. of India undertaking, is a 'FORTUNE 500' company engaged in the petroleum refining and distribution business.

OBJECTIVE: To set up combined cycle power stations based on refinery residue / Naphtha and other petroleum products.

LIKELY EQUITY CONTRIBUTION FROM PROMOTERS

NTPC and IOCL will have equal equity contribution, and the combined equity holding of NTPC and IOCL shall not exceed 50% of the paid up equity capital of the company. Balance may be offered to financial institutions and general public.

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2.0 INDIAN RAILWAYS MOU signed on 18th February 2002. Indian Railways are the largest rail network in Asia and the world's second largest under one management.

OBJECTIVE: To set up power stations to meet traction and non-traction power requirement of Indian Railways.

LIKELY EQUITY CONTRIBUTION FROM PROMOTERS

Yet to be finalised

3.0 TAMIL NADU ELECTRICITY BOARD MOU signed on 12th July 2002. TNEB is a State run Electricity Board in the State of Tamil Nadu engaged in generation, transmission and distribution of electricity.

OBJECTIVE: To set up a 1000 MW coal based power station at Ennore in Tamil Nadu utilising the existing infrastructure facility at Ennore.

EQUITY CONTRIBUTION

NTPC : 50% TNEB : 50%

ACQUISITIONBusiness development through Acquisition serves both NTPC's own commercial interest as well as the interest of the Indian economyTaking over being a part of the acquisition process, is also an opportunity for NTPC to add to its power generation capacity through minimal investment and very low gestation period. NTPC has, over the years, acquired the following three power stations belonging to other utilities/SEBs and has turned around each of them using its corporate abilities.

POWER STATIONS TAKEN OVER YEAR ORIGINAL OWNER

2x210 MW FEROZE GANDHI UNCHAHAR THERMAL POWER STATION

1991UP RajyaVidyut Utpadan Nigam of Uttar Pradesh

4x60 MW + 2x110 MW TALCHER THERMAL POWER STATION

1995 Orissa State Electricity Board

4x110 MW TANDA THERMAL POWER STATION

2000 UP State Electricity Board

DIVERSIFICATIONTo broad-base the business and also to ensure growth, diversification in the areas related to NTPC's core business of power generation such as Hydro power, Distribution, Trading, Coal mining, LNG etc. have been identified as priority areas.

A. HORIZONTAL DIVERSIFICATION - HYDRO POWERThe urgent need for adding peak load stations coupled with shortage of domestic fuels and concern for environmental pollution prompted the Government to lay thrust on adding hydro stations. This has provided NTPC with an opportunity to horizontally

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diversify and set up hydro electric power stations towards the due need of operating peak load demands and thermal for base load.In 1997 NTPC started the preliminary activities to tap a part of the abundant hydro electric potential of the country by identifying suitable projects for development. Northern Region and more specifically Himachal Pradesh and Uttar Pradesh were targeted for initial entry in hydro sector. NTPC's venture in hydro sector became a reality when Koldam Project, a green field Hydro Electric project of 800 MW capacity in the State of Himachal Pradesh, was formally assigned to NTPC on 26th Feb. 2000.An MOU has been signed with Govt. of Uttranchal on 31.12.02 for implementation of Lohari-Nagpala(4x130MW) and Tapovan Vishnugad (360MW)Hydro Electric power Project in the state of Uttaranchal on BOOM basis, subject to techno-commercial viability of the project, and clearance of MOEF.In order to develop small and medium Hydro Electric Power Project up to 250 MW capacity a wholly owned subsidiary company named NTPC Hydro Ltd. has been incorporated on 12th December 2002.More hydro projects are being explored to find out the techno-economic viability for development by NTPC. The company intends to add at least 3000 MW capacity through hydro projects by the end of X Plan. B. VERTICAL (FOREWARD) INTEGRATION - DISTRIBUTION AND POWER TRADING:In order to diversify along the power value chain, NTPC has gone in for distribution and power trading to ensure forward linkages and also enhance revenue channels.To acquire, establish and operate electrical systems etc. for distribution and supply of electrical energy to consumers, a subsidiary company named as NTPC Electric Supply Company Ltd. (NESCL) has been incorporated.In order to undertake business of sale and purchase of electric power, a subsidiary company known as NTPC Vidyut Vyapar Nigam Ltd. (NVVNL) has also been incorporated.C. VERTICAL (BACKWARD) INTEGRATION - COAL MINING AND LNG BUSINESS:COAL MINING:The policy changes in coal sector provide an opportunity to NTPC to enter captive coal mining business. NTPC is contemplating captive mines in North Karanpura area of Central Coal-fields Ltd (CCL) and Talcher area of Mahandi Coal-fields Ltd (MCL). Central Mine Planning & Design Institute Ltd (CMPDIL) (a subsidiary of Coal India Ltd), Ranchi is being appointed as a consultant for assisting and guiding NTPC in various activities of captive mining. COAL WASHERIES: NTPC is intending to set up coal washeries in the following three coal mine areas:

Amlori area under Northern Coal-fields Ltd. (NCL) Talcher area under Mahandi Coal-fields Ltd. (MCL) North Karanpura under Central Coal-fields Ltd. (CCL)

Feasibility studies for Amlori area is already completed in December 2002. NTPC has appointed Central Mine Planning & Design Institute Ltd. (CMPDIL) (a subsidiary of Coal India Ltd), Ranchi, India as the consultant for the feasibility studies.

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LNG: NTPC is contemplating procurement of LNG fuel/Natural Gas for expanding its gas based power projects at Anta, Auraiya, Kawas & Jhanor - Gandhar in North India with cumulative capacity addition of 2600 MW and at Kayamkulam in South India by 1950 MW. Fuel requirement for North India is approximately 3.0 MMTPA and for South India is 2.0 MMTPA. Accordingly LNG fuel/Natural Gas terminals have been planned, one each in North India and in South India, to be commissioned by prospective suppliers.

NTPC intends to keep options for 26% equity stake in regasification terminal and may seek 10% equity in liquefaction terminal. D. STEP TOWARDS GLOBALISATIONNTPC is exploring the possibility of setting up a Gas Based Combined Cycle Power Plant in Bangladesh through Joint Venture with Bangladesh Power Development Board (BPDB) and Petro Bangla. NTPC has signed an MOU with Black and Veatch (USA) for rendering services in the areas of Engineering, Project Management, Operation and Maintenance, Quality Assurance etc. NTPC and BHEL have joined hands to work as consortium partners to set up a 500MW integrated water and power project with 30MGD of desalination plant in Oman on BOO basis.

INSTALLED CAPACITY

AN OVERVIEW

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Projects No. of Projects Commissioned

Capacity(MW)

NTPC OWNED COAL 13 19,480

GAS/LIQ. FUEL 07   3,955

TOTAL 20 23,435

OWNED BY JVCs

Coal 3 314*

GRAND TOTAL 23 23,749

* Captive Power Plant under JV with SAIL

PROJECT PROFILE

Coal Stations

  Coal based State Commissioned

Capacity(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 2,260@

6. Rihand Uttar Pradesh    1,500@

7. Kahalgaon Bihar 840@

8. Dadri Uttar Pradesh 840

9. Talcher Kaniha Orissa  3,000

10. Unchahar Uttar Pradesh 840@

11. Talcher Thermal Orissa 460

12. Simhadri Andhra Pradesh 1,000

13. Tanda Uttar Pradesh 440

Total (Coal) 19,480

@Capacity presently under implementation

Rihand II 500 MW

Vindhyachal 1000 MW

Unchahar 210 MW

Kahalgaon Stage II - Phase I 1500 MW- Phase II 1000 MW

 Gas/Liq. Fuel Stations

  Gas based State Commissioned Capacity

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(MW)

14. Anta Rajasthan 413

15. Auraiya Uttar Pradesh 652

16. Kawas Gujarat 645

17. Dadri Uttar Pradesh 817

18. Jhanor-Gandhar Gujarat 648

19. Kayamkulam Kerala 350

20. Faridabad Haryana 430

Total (Gas) 3,955

Through Joint Venture 314

Grand Total (Coal + Gas + JV) 23,749

  Power Stations Managed by NTPC

  Managed By NTPC State Installed Capacity

(MW) 21. Badarpur Delhi 705

Total 705

NTPC-LEADERS IN POWER SECTOR

Establish in November 1975 for NATION`S sustainable power development national thermal power corporation ltd. (NTPC) is today recognized as INDIA`S largest utility, with an installed capacity of 20,749 MW. NTPC has an ambitious growth plan to become a 56,000 MW plus company by the year 2017. With a share of 19% of INDIA`S total installed capacity, NTPC generates about 26% of COUNTRY`S entire generation.

EXCELLENT PERFORMANCE

Performing commendably in the areas of operations and maintenance. NTPC stations all over the country generated 133.19 Billions units (bus) of

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electricity with the coal station achieving an availability of 89.1% during 2001-02.

OTHER AWARDS AND ACCOLADES WON:

Shell KELLER award 2002 for promoting employment opportunity to disable people.

Gets global energy award 2003 for commitment to community development.

CORE- BESD corporate social responsibility award 2001-02 instituted by TERI.

ICC-UNEP world summit business award for sustainable development partnership.

National safety award 2002 instituted by the BRITISH safety council, to NTPC power station.

Best HR practices award 2002 instituted by INDIAN society of training and development.

World HRD congress award instituted by world HRD congress. Golden peacock national training award 2003 instituted by institute of

directors to PMI. Meritorious productivity of the GOVT. Of INDIA to 12 stations. PRIME MINISTER`S SHRAM AWARD for the 17th year including two

SHRAM RATNA. VISHWAKARMA AWARD by MINISTRY OF LABOUR, GOVT. OF

INDIA. Climate technology initiative award. MOU excellence award of govt. Of INDIA. CII award for excellence in infrastructure. GREENTECH environment national award for the welfare of physically

challenged people. Business today – HEWITT best EMPLOYER`S award.

NTPC AS ONE OF THE NAVRATNAS

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The government of INDIA has decided to accrue a special status to top profit making INDIAN public sector enterprises, calling them NAVRATNAS (literally, `nine jewels`, though now they number eleven)

Bharat Heavy Electrical Ltd.(BHEL), Bharat Petroleum Corporation Ltd.(BPCL),Hindustan Petroleum Corporation Ltd.(HPCL), Indian Petroleum Corporation Ltd.(IPCL) , National Thermal Power Corporation Ltd.(NTPC ) , Oil And National Gas Corporation Ltd.(ONGC), Steel Authority Of India Ltd.(SAIL), Gas Authority Of India Ltd.(GAIL), Mahanagar Telephone Nigam ltd.(MTNL).

As a `NAVRATNA’ public sector enterprise, NTPC has always been delivering peak performance, be it generation of power, financial performance, human resources development or presentation of environment. Not only does NTPC provide a lead to the power sector in INDIA. It is also establishing itself as a global player. The COMPANY`S corporate plan sets an ambitious target of becoming a 40,000 MW power colossus by 2012.

HR VISION“ TO ENABLE OUR PEOPLE TO BE A FAMILY OF COMMITTED WORLD

CLASS PROFESSIONALS MAKING NTPC A LEARNING ORGANISATION”

HR GOALS to develop a learning organization having knowledge based competitive edge.

to create a culture of team building, empowerment and accountability to convert knowledge into productive action with speed ,creativity and flexibility

HR STRATEGIES institutionalize core value for actualizing throughout organisation.

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Imbibe a culture of openness, competence, commitment, system orientation economy, productivity, knowledge management, communication and training.

Undertake organizational renew, restricting periodical assessment to have a retook at various initiatives and their impact.

Cerate motivational enabling climate of enpowerment participation, career growth, sensitive line managers and equip them to their own HR initiatives and succession planning.

Communication within and outside the company

Powering India's Growth : Through people

NTPC strongly believes in achieving organizational excellence through Human Resources and follows "People First" approach to leverage the potential of its 23,500 employees to fulfill its business plans. Human Resources Function has formulated an integrated HR strategy which is rests on four building blocks of HR viz. Competence building, Commitment building, Culture building and Systems building. All HR initiatives are undertaken within this broad framework to actualize the HR Vision

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 attached with Senior executives under a systematic and formal 'Mentoring System' of the company to integrate them into the Culture of the company.

NTPC has created 15 project training centers, 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.

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. 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 the employees to share their ideas and experiences across the organization.

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Demonstrating its high concern for people, 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 (COMIT) across the company. A culture of celebrating achievements and a strong focus on performance are a way of life in NTPC. 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.

Further continuous efforts are being made by HR function to leverage the potential of its employees and become a strategic business partner.

Mercer HR - Business Today Employer Survey 2004

NTPC has been rated among the top ten "Best companies to work for in India" by Mercer HR Consulting-Business Today Survey 2004. This is the second consecutive year that NTPC has appeared in this prestigious list.Besides, NTPC is also the only PSU among the top ten companies. The survey was conducted on the basis of five attributes to arrive at a total score for each company surveyed, such as

HR Metrics,

HR Processes,

Employee Perception,

Stake holder Perception and

Attrition on a weighted scale

NTPC has also been ranked as "3rd great place to work" for in the country according to the survey conducted by Grow Talent and Business World 2004.What makes NTPC stand apart is its ability to balance concern for its employees with a high performance work culture. All NTPC employees have a Projects Manager’s obsession with deliverables and deadline.

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PERFORMANCE LEADERSHIP

To achieve continuous performance improvement in the areas of project implementation, plant operation and maintenance, generating efficiency etc. and to acquire and sustain internationally comparable standards in these with good business ethics and values.

HUMAN RESOURCE DEVELOPMENT:

To develop a learning organization having knowledge based competitive edge.

To create a culture of learning building, empowerment and accountability to convert knowledge into productive action with speed, creativity and flexibility.

FINANCIAL SOUNDNESS:

To maintain and improve the financial soundness of NTPC by managing the financial resources in accordance with the best commercial utility practices.

To develop appropriate commercial policies which ensure remunerative tariff and minimum receivables.

TECHNOLOGY LEADERSHIP

To acquire and adopt reliable, efficient and cost effective technologies and to disseminate knowledge to other constituents sector in the country.

PERFORMANCE HIGHLIGHTS

(2003-04)

100% realization during the year as compare to 91.25% in the previous year.

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Provisional gross revenue of RS. 25,184 CRORE during 2003-04 as against RS. 19,850 CRORE during 2002-03.

Estimated net profit after tax for the year 2003-04 is RS.4, 905 CRORE as compare to RS 3,608 CRORE during the previous year.

With 19.24% share of the total installed capacity of the nation, NTPC contributed 26.7% electricity generated in the country.

Highest PLF (plant load factor) of 84.4% since inception. Projects totaling 7010 MW capacity under various stages of construction. National award for welfare of persons with disabilities in the best

employer category upon NTPC by PRESIDENT OF INDIA.

OPEREATIONAL PERFORMANCE

The corporation recorded a generation of 149.17 Billion Units (Bus) showing an increase of 5.9% over the previous year’s generation of140.9 Bus. With 19.24% share in the total installed capacity of the country, NTPC contribute 26.7 %electricity during 2003-2004.

HUMAN RESOURCE MANAGEMENT

The total strength of employees of the corporation is 23114 as on 31.03.2004. All the efforts were made to improve the manpower utilization. The overall Man: MW ratio for the year 2003-2004was 1.02 for the year 2002-2003.Employee productivity has considerably improved during the year:

2003-2004 2002-2003GENERATION/EMPLOYEE (MUS) 7.10 6.76TURNOVER/EMPLOYEE (RS.LAKHS) 108.95 84.63PROFIT/EMPLOYEE (RS.LAKHS) 21.22 15.16

EMPLOYMENT TO PHYSICAL CHALLENGED PERSONS

With a focus on its role of a socially responsible organization, NTPC has endeavored to take responsibility for adequate representation of physically

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challenged persons in its workplace. The company has already recruited 173 numbers of physically challenged persons in group c & d posts in the first phase and plans to induct another batch of 169 such persons in the second phase.

FUTURE PROSPECTS

By 2017, we plan to expand our power generation capacity to over 56,000 MW. We also plan to diversify our fuel mix by setting up new power-based plants. Further, plan to diversify our business by taking advantage of opportunities in the Indian power sector, created by regulatory and economic reforms.

WORLD BANK APPRAISAL

The World Bank has been periodically appraising the performance of NTPC. Few experts from the World Bank performance audit/staff appraisal report of 1993 is:

NTPC has demonstrated that government owned power utility can be operated at efficiency levels comparable to those of privately owned utilities in India and well run utilities outside of India.

NTPC`s record in plant construction, cost containment and operating efficiency has been exceptional while as a institution it has broken new ground in organization and management, successfully navigated the transition from construction to operative company generally coped quite well with the problem of rapid expansion.

NTPC needs to be commended not only for its participation in all stages of project preparation, implementation and its final operation but also for its initiative to implement efficiently large conventional coal fired thermal power station, introduction of gas based combined power generation , HVDC transmission new control and instrumentation package contract management system simulator for operational training supply and erection type of packaging for auxiliaries concepts of quality assurance in engineering design etc. on the financial side , NTPC, has been successful in increasing substantially and in diversifying resource mobilization for future project financing.

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NEED FOR A FRESH LOOK

Then economic reforms and the liberalization process initiated in the year 1991 and the new power policy announced by the government in October 1991 have redrawn the contours of power industry in the country. The policy is still being developed and has been undergoing successive modificationParticipation of the private sector in the hitherto exclusive domain of the government in the power generation transmission and the distribution is bringing in the fundamental changes in the sector well as NTPC. Thus at the end of the X plan is likely to witness a very different scenario in the power sector with pattern a of ownership of assets significantly altered and the norms of the project implemented plant availability and reliability operation etc. changed to match the international standards .

Further the planning parameters financial , economic and social have competition from independent power producers, stringent environmental regulation uncertainties in fuel linkage funds constraints restoring SEBI’s and place in reforms in the power sector are very all crucial factors having major impact on business decisions.

In view of these fundamental changes taking place in the global business environment and power sector it is important for NTPC to review some objectives and to a fresh look at the corporate road map of NTPC.

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THE PROJECT

INTRODUCTION

in their working lives, employee occasionally have cause to be uncomfortable, disappointed or aggrieved either about certain managerial decision, practices or services condition. The question then is whether this particular symptom or feeling is given any attention or is ignored altogether. What are the pros and cons of each of the approach will be governed by several variables such as the style of the management, size of the enterprise ,level of education of the workforce, technology of the plant and the extent of unionization of the workforce.

In the present day social context, especially in democratic systems, it is accepted that employees should be able to

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express their dissatisfaction, whether it is an irritation, a serious problem or a difference of opinion with the supervisor over terms and conditions of employment. In respect of the latter , it could stem either from the interpretation of the contract, or in the absence of a negotiated collective contract between management and the union.

The grievance procedure is one of the more important means available for employees to express their dissatisfaction .it is also a means available to management to keep a check on relevant diagnostic data on the state of the organization’s health.

OBJECTIVE OF THE STUDY

1. to know how much the employees are aware of the grievance settlement machinery in NTPC.

2. to know whom does employees approach in case of grievance.

3. to know what method are adopted by the organization for knowing grievance of the employees.

4. to know which procedure is used to solve the grievance of the employees.

5. to know what the employees think regarding the Grievance Settlement Machinery in their organisation

RESEARCH METHODOLOGY

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Combinations of different methods are used to study the dynamic subject- the employee grievances which involves recording the perceptions of the employees. Action and reactions to particular situation on one hand and organizational policies, strategies, philosophies on the other hand.

I)Primary Sources:

i)Company Personnels

II)Secondary Sources:i)Internal Sourcesii)External Sources

Internal Sources:

i) Company Publications

ii) Leafletsiii) Brochures

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External Sources:

i) Magazines and Newspapers

ii) Public Records

iii) Internet

Data Collection Tools

i) Interview Methodii) Questionnaires

The methods adapted for the study can be tabulated as follows:

Personal interview My main tool for research. Better person to person interface.

Focus group Might not be possible

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for higher designations.

Questionnaire Easy to handle number of questions, personal contact, easy to evaluate & comprehensive research

Sample Size (Over all):

Controlling Officer Response Sheet

: 100

Internal Trainees Response Sheet :

50

Target Audience :

Controlling Officer Response Sheet

: 70

Internal Trainees Response Sheet :

50

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Sampling Method:

For Trainees : Random

probability Sampling.

For Controlling Officer : Relative

Probability Sampling.

Process of Research

Structured questionnaire

Sample size

Interview with senior management executives

Interview with Trainees

General inference from observation

Discussion guidelines for some questions.

Research is systematic design, collection, analysis and reporting of data and findings relevant to a specific situation facing the

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company. Research has been seen only a fact finding operation. The researcher is supposed to design a questionnaire, chose a sample, conduct out interviews and report result often without being given a careful definition of the problem of the decision alternatives facing management.

PRIMARY DATA

The relevant data related to the project was collected through personal interviews sought with the by company personnels. This was done to accommodate the requirements of our objectives.

DESIGNING THE QUESTIONNAIRE:

Questionnaire is the most effective medium of communicator between the investigator and unknown person. Keeping in view the profile of the low level non-executives in the sample the questionnaire was drafted. Questionnaire was also drafted for the executives

Responses from the respondents were clear and helped us to get required information. Using questionnaire method as data collection technique had its advantages because of the paucity of time with officials/respondents. It was resorted to interviewing at the top

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management level and the H.R manager (questionnaire would be inappropriate) so that I could get an extra bit of information that would make this project a meaningful venture.

The whole process in detail

It is essential to collect primary data to make the sample survey a success and the most popular technique of the data collection is through questionnaire thus a questionnaire was framed and distributed among the selected sample in NTPC-EOC (HR department) and also few employees were interviewed as some information couldn’t be collected through questionnaire as respondents being bias while filling the questionnaire.

DETERMINATION OF SAMPLE POPULATION Men or women employed in NTPC-EOC, in the HR department, must have a working experience ranging from 5 years to 30 years. Nature of population was homogenous therefore a small sample was effective to represent them.

Sampling methodRandom (or probability) samples in which the probability of unit selection is unknown at any stage of the selection process and the selection of units is based on the judgment of the researcher, was selected. The method used was purposive sampling or judgmental sampling. These terms indicate selection by design- by

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choice, not by chance. The sample was chosen which was thought to be typical of the universe with regards to the characteristics under the investigation.Such type of sampling was possible because of my guide, who already had the necessary required knowledge about the employees, which made it easier to recognize typical items in the universe.

Collection of dataWhen planning was completed the survey moved into the field and under took the fieldwork, which is distribution and collection of facts. The total number of questionnaire distributed were (75), out of which only 50 were taken into analysis, few were rejected due to incomplete data entry and few questionnaires were not filled.

ANALYSIS OF DATAResearcher must breathe life into the cold data by skillful analysis and hence he need to follow three preliminary steps-editing, classifying and coding of the data. The contents of the data obtained in the survey were carefully checked for any possible inconsistencies or incompleteness. Then came the careful content analysis- the data was then coded and tabulated according to the dummy tables prepared in advance with the help of tally making. And then finally the coded data was interpreted to reach a final conclusion. PRESENTATION OF DATA

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It was the last step of the survey. Through nice presentation, significant facts and comparisons are highlighted with the help of pie charts and a explanation of them is also given along with them to have a better understanding. .

LIMITATIONS OF THE STUDY: Data related to the grievances, which are resolved

in an informal way and go recorded was not unavailable.

Some respondents were not willing to fill up the questionnaire as they feared some negative action against them by the top management.

Time limit was also a limitation due to which the research could not be done on a vast scale.

Some respondents were not willing to reveal the true picture of the grievance they were having through questionnaire.

Few questionnaires were not filled completely so that they could not be considered for the study.

inconvenience in locating the respondent

time constrain on the part of higher officials:

Questionnaire was used as a measure of data collection for

the study. Everybody did not respond to the questions

properly. Some respondent misinterpreted the questions,

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omitted essential items, and gave answers casually, which

could not be tabulated. It was practically impossible to

return such incomplete and unsatisfactory questionnaire to

the respondents for correction.

This technique does not provide a check on the honesty and

reliability of replies, if the respondent gives replies, the

investigator cannot know what the truth is.

This technique was inappropriate when spontaneous

answers were wanted; where it was important hat the views

of one person was only obtained, uninfluenced by the

discussion of others; and where questions resting a person’s

knowledge were to be included. The major reason for non-

response was that respondent adamantly refused to fill the

questionnaire. This is a hard-core reason no matter how

much effort one put in completing the returns; a source of

bias always persists.

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At one stage in this technique the response rate being very

low i was left in a dilemma whether the return can be

generalized to the whole population or they merely

represent the characteristics of the people who have

returned the questionnaires.

Despite there limitations the data collection exercise was

enriching fulfilling and enjoyable.

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THEORETICAL BASEMEANING OF GRIEVANCES

According to Michael j. Julius the term ‘grievances’ means “ any discontent or dissatisfaction whether expressed or not and valid or not arising out of anything connected with the company that an employee thinks ,believes or even feels, is unfair , unjust or inequitable”. The above definition indicates that a grievance may be factual or imaginary or disguised and it is a problem whether expressed or not. When an employee presents a problem, the grievance redressing authority has to analyze the problem, find out the root cause of the problem rather than viewing it from legal aspects and solve it, based on humanitarian approach. This approach of grievance redressal is known as clinical approach to grievance handling. Hence a grievance may be viewed as complex psychological phenomenon, calling for human rather than any procedural or legal action in its analysis and solution

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KEITH DAVIS has defined grievance as “any real or imagined feeling of personal injustice which an employee has concerning his employment relationship”. A grievance represents in which an employee feels that something unfavorable has happened or is going to happen.

In an industrial enterprise, grievance may arise because of several factors:

Violation of management’s responsibility like poor working conditions.

Violation of company’s rule and practices Violation of collective bargaining

agreement Violation of labour laws Violation of natural rules of justice like

unfair treatment in promotion.

The discontent may arise out of something connected with the companyWorkers may be dissatisfied because of several reasons e.g., illness in the family, quarrel with neighbor, disliking for the political party in power, so on. Such outside sources are beyond the control of the company and, therefore, do not constitute a grievance.

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The discontent may be expressed or impliedExpressed grievances are comparatively easy to recognize and are manifested in several ways e.g. Gossiping, jealousy, active criticism, argumentation, increased labour turnover, carelessness in the use tools and materials, untidy house keeping etc.Unexpressed grievance is indicated by indifferences to work, day dreaming, absenteeism, tardiness etc. Unexpressed or implied grievances are more dangerous than the expressed ones because it is not known when they may be exploded. Hence the executive may develop a seventh sense for anticipating grievances. Only for painstaking and observant supervisor it is possible to discover what bothering employees are before they themselves are aware of the grievances. The personnel department can be helpful by training supervisors to become proficient in observing employees. The techniques of attitude survey and statistical interpretations of trends of turnover, complaints transfers, suggestions etc are also helpful in this connection.

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The discontent may be valid, legitimate and rational or untrue and irrational or completely ludicrousThe point is that when a grievance is held by an employee comes to the notice of the management it cannot usually dismiss it as irrational or untrue. Such grievances also have to attend by the management in the same ways rational grievances. Emotional grievances which are based upon sentiments, misconceptions and lack of thinking are example of our irrational behavior. These grievances are most difficult to handle.

Environment determinants

Several facts of the work environment are related to the grievance rate in an organization, defined as the number of grievances filed per100 workers over a given period, usually 1 year low grievances rates are largely free of technological changes . Furthermore the greater the conflict apparent during the union organization process, the higher is the grievances rate following the certification of the union.

Individual determinants

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Although a few demographic and personality characteristic of individual workers have been found to be related to their propensity to fill a grievance, none of these findings has been replicated in an independent sample. Further research results are inconclusive with regards to the level of whether the tendency to file a grievance is related to the level of a worker’s job performance.

EFFECTS OF GRIEVANCES

Grievances if they are not identified and redressed, may affect adversely the workers managers and the organization. The effect is: On production

Low quality o production Low quality of production and productivity Increase in wastage of material,

spoilage ,leakage of machinery Increase in cost of production per unit

On the employees

Increase in rate of absenteeism and turnover

Reduces the level of commitment, sincerity and punctuality

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Increase the incidence of accidents Reduce the level of employee morale

On the managers Strains the superior- subordinate relations Increase in degree of supervision, control

and follow up Increase in indiscipline cases Increase in unrest and thereby machinery

to maintain industrial peace

SOURCES OF GRIEVANCES AND THEIR CAUSE

Some grievances are more serious than others since they are usually more difficult to settle. Discipline case and seniority problems (including promotions, transfers and layoffs) would top this list. Other would include grievances growing out of job –evaluation and work assignments, overtime vacations incentive plans and holidays. REED RICHARDSON has mentioned five types of grievances which are as follows:

1.ABSENTEEISMAn employer fired an employer for excessive absences. The employees file a grievances

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stating that that there had been no previous warnings and discipline related to excessive absences.

2.InsubordinationAn employee on two occasions refused to obey a supervisor’s order to meet with him, unless a union representative was present at the meeting. As a result the employee was discharged and subsequently filed a grievances protesting discharge.

3.overtime Sunday overwork was discontinued after a department was split. Employees effected filed a grievances protesting loss of overtime work.

4.plant rules The plant has posted rule barring employees from eating or drinking during unscheduled breaks. The employees filed a grievance claiming the rule was arbitrary.

5. seniority A junior employee was hired to fill the position of a laid off senior employee. The senior employee filed a grievance protesting the organization.

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Causes of grievances The causes of grievances can be grouped under three heads:1. Grievances resulting from management policies Wages rates or scale of pay Overtime Leave Transfer- improper matching of the worker

with the job Seniority, promotion and discharge Lack of career planning and employee

development plan Lack of role clarity Lack of regard for collective agreement Hostility towards a labour union Autocratic leadership style of supervisors

2. Grievances resulting from working conditions Unrealialistic Non availability of proper tools, machines

and equipment and doing the job Tight production standards Bad physical condition of workplace Poor relationship with the supervisors Negative approach to discipline

3. Grievance resulting from personal factors Narrow attitude

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Over ambition Egoistic personality

4. Grievances resulting from alleged violation of

Collective Bargaining agreement Central or state laws Past practices Company rules Managements responsibility

How to know about grievances A good management redresses grievances as they arise excellent management anticipates them and prevents them from arising. A manager can know about the simmering even before they turn into actual grievances through several means such as exit interviews gripe boxes, opinion surveys and open door policy.1. Exit interview Employees usually quit organization due to dissatisfaction or better prospect elsewhere. Exit interview if conducted carefully can provide important information about employee’s grievances

2. Gripe boxed These are the boxes in which the employee can drop their anonymous complaints. They are different from the suggestion boxes in

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which employees drop their named suggestions with an intention to receive awards.

3 opinion survey Opinion surveys etc group meetings periodical in interview with the employees, collective bargaining sessions are some other means through which one can get information about employees’ dissatisfaction before it turns into a grievances 1. observation A manager/ supervisor can usually track the behavior of the people working under him. If a particular employee is not getting along with people spoiling material due to carelessness or recklessness, showing indifference to commands. Reporting late for work or is remaining absent- the signals are fairly obvious. Since the supervisors are close to the scene of the action, he can always find out such unusual behavior and report promptly.5. Open door policySome organizations extend a general invitation to their employees to informally drop in the manager’s room any time and talk over their grievances. At first glance, this policy may appear very attractive but it has following limitations:-

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This policy is workable only in small organizations. In big organizations where management by exception is practiced , the top management does not have the time to attend to the innumerable routine grievances daily which is the work of the lower-level managers

Under this policy the frontline supervisors who should be the first man to know about the grievances of his subordinate is bypassed. This provokes him in two ways first he thinks the man who skipped him is disrespectful. Secondly, he fears that he will incur his superior ‘s displeasurable because this will be interpretated by the superior as his failure to handle his subordinates.

By following an open door policy the top management cannot have adequate clues to assess a superior ‘s skill in handling grievances. It does not know what action , if any, the supervisors would have taken to resolve a grievance.

Top management is likely to be too familiar with the work situation in which the grievances developed to be able to be correctly evaluate the information it gets. There may be several level o0f management between the operative employee and the top president of the

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company. Theoretically each level affords an equal opportunity for distortion , fading and delay of certain facts on which complaint may be based.

Though the door of the executive’s office remains physically open, psychological and social barriers prevent employee in actually entering in it.

Some employee hesitates to be signaled out as having grievances others are afraid they will incur their supervisor’s disfavor.

Sometimes open door policy is used to hide the top management’s own hesitation to make contact with the operatives and the open door is often a slogan to conceal closed minds.

The way open door can be effective is for a manager to walk through, not employees. The true test of such a policy is whether the top man behind the door has an open door p attitude and his employees psychologically free to enter.

Machinery for handling grievances

Appropriate machinery must be established to take steps and to apply the principles of handling grievances.

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Responsibility must be assigned to given organization unit and executives. And the systematic flow of grievances through various stages and units must be encouraged through appropriate procedural designs. Hence grievance handling requires attention to organizational responsibility and procedures.

Organizational responsibility Organizationally grievances handling is divided between and shared by first line supervision, staff and middle management executive’s top management and labour union representatives.

1.First line supervision

This should be accorded the first opportunity to handle grievances .it should be empowered to pass upon grievances within policies , rules and jurisdictional limits established by the comp[any. And it good practice to require employees to present their grievances to their immediate superior , even though the final disposition must awaited higher authority. otherwise supervisors are in danger of loosing any

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importance in the organization and the respect of their subordinates .2.staaf and middle management executives; All grievances can not be handled at the lowest levels , because some involve issues or policies beyond their authority or capacity.Hence responsibility is placed upon divisional , group and area managers to handle grievance cases with broader implications .and these may be aided by a staff –labour relation unit in three ways,:

a.staff may supply line executives with advice or information’s on grievance handling,

b.it may help executives in the processing of case .

c. It may be given authority actually to settle certain classes of cases.

1. staff and middle management executive

all grievances cannot be handled at the lowest levels because some involves issues or policies beyond their authority or capacity. Hence responsibility is placed upon divisional, group and area managers to handle grievance case with broader

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implications. And these may be aided by a staff labour relations unit in three ways:

the staff may supply line executives with advice or informations on grievance handling.

it may help executives in the processing of the cases

it may be given authority actually too settle certain classes of cases

3. top management levels Top management has two large areas of responsibility in grievance handling. First, it must assume jurisdiction of cases which are companywide in nature or significant as precedent makers. Second, top management must establish the broad policies and rules upon which grievance handling in the company will be based. Here again, top management may utilize the advice of a labour relations department. But the final decisions must be unequivocally accepted as its own.

4.Outside agencies The use of an “ombudsman” or an independent, outside party is suggested as the final step in resolving grievances in non union companies.

5.labour union representativesAnd finally in many companies, labour union representatives interact in the various organizational segments of the company. Shop and office stewards work

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at supervisory levels and officials of the union locals , business agents of the union and representatives of the national union offices work at key points of the grievance cases wherever they develop.Superimposed upon or paralleling the formal company organisation structure is that of the union structure . the role of the union plays often encompasses informal relations. Union representatives work out with their company counterpart decisions that bend contractual agreements.

GRIEVANCE HANDLING PRACTISES

Grievances are some symptoms of conflicts in enterprise. So they should be handled very promptly and efficiently. Coping with grievances forms an important part of manager’s job. The manner in which he deals with grievances determines his efficiency in dealing with the subordinates. A manger is successful if he is able to build a team of satisfied workers by removing their grievances. While dealing with grievances of subordinates it is necessary to keep in mind the following points:

1. a grievance may or may not be real2. grievance may arise out of not one cause, but

multifarious causes.3. every individual does not give expression to his

grievances.

For the purpose of handling grievance properly and efficiently, it is necessary to find and analyse the grievance of the subordinates. If a grievance is found to be genuine or real, the corrective action should be taken immediately. But

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the grievance arises due to imagination or disturbed frame of mind of the worker, then it is necessary to explain and make it clear. Before dealing with the grievance their cause must be diagnosed. But when grievances are not given expression by the subordinates, it is manager’s job to detect the possible grievance and their causes. He may realize the existence of the grievances because of high labour turnover, high rate of absenteeism and poor quality of the work. These problems may go on multiplying if the cause of grievance may not identified and cured.Immediate redressal and settlement of grievance is must. The three cardinal principles of grievance settlement are:-

a)      Settlement at the lowest levelb)      Settlement as quickly as possible.c)      Settlement to the satisfaction of the aggrieved.

APPROACHES IN GRIEVANCE HANDLINGThere are three approaches documented reflecting the attitude of management employees to handling of grievances. These are1. legalistic view approach 2. human relation approach3. open door or step ladder approach

      LEGALISTIC VIEW APPROACH management can take a legalistic view and follow the negotiated contract. The management and worker follow the provision therein grievances are those defined by the contract and the process for the dealing with the

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grievances is clear to all concerned and specified with the time span for each stage.

a. HUMAN RELATION APPROACH The employee and his specific problem is the major concern . the concern is for understanding and doing something to help overcome the individual’s problem, the fundamental assumption being that individuals are more important than production targets. It is quite likely that understanding their needs and grievances will help in attaining production target, but primarily individual’s are the end rather than the means to an end. b. OPEN DOOR AND STEP LADDER APPROACHChannels of handling grievance should be carefully developed and its information should be disseminated amongst the employees there are two procedures for the settlement of grievances1. open door policy2. step ladder procedure

some company have an informal and open door policy for grievance handling and employees are free to go up the top level executives with their grievances for redressal. In large companies open door policy is not suitable. Consequently most companies has introduces step ladder procedures for the settlement of grievances.

Under Step –Ladder procedure, an aggrieved employee will first present his grievance to the first line superior. If he is not satisfied with the decision of the supervisor, he

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presents his grievance to the second level, namely, the head of the department. At the third step, a joint grievance committee reviews the grievance . Grievance still unsettled is referred to the chief executive of the company. In some cases work committees form a step in the procedure.Steps in handling grievances1. DEFINE AND DESCRIBE THE NATURE OF THE

GRIEVANCE AS CLEARLY AND FULLY AS POSSIBLEdefining and describing a grievance implies that it has been expressed. This is concerned with:-

a. determining the correct grievancesmany grievances after being “settled”, turn up again to plague management. The trouble in such instance invariably is that a wrong grievance has been handled. The chances of getting at the right grievance are increased if care is used in initial contact with the employee. Encouraging a person to talk is one means of getting closer to the truth. And the practice of asking the aggrieved to put the case in writing is also desirable .b.discovery of the unexpressed grievances there are cases however when an individual grievance goes so unexpressed and unexposed for long period of time. Various methods are useful in this connection. Statistical studies of turn over , complaints , transfers earnings, and sources of suggestion can supply clues to the actual or probable grievances. And skill in observation of the behaviorisms, attitude and habits of one’s

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subordinates is particularly helpful in detecting signs of the changes due to the unexpressed grievances.

2. GATHERING FACTS Having defined grievances as accurately as possible, the next step is to gather all relevant facts about the issues. It is important to know the alleged grievances were first experienced, whether or not it has been repeated, how and where it took place.

a. nature of factswhat are the facts, an what are opinions? practically speaking , any claim , which can be substantiated, to the satisfaction of a reasonable person may be tagged as a fact , otherwise it is an opinion. Booth labour and management tends to hold opinion or evaluate facts because of their respective roles in the business social world. Management should be prepared for this disposition. If it is it will deal more carefully with grievance and consequently gain the confidence of employees which is so necessary in gaining acceptance of the opinion that cannot be proved.b. importance of the recordsince facts gathering are not an say task, after a grievance arises , it is perhaps wise to develop a set of records and keep them up to date. They serve to show in advance, for example that should get a promotion and to warm others why their chances of advancing are not good.

3.ESTABLISHING TENTATIVE SOLUTIONS

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After getting a clear picture of grievance , the next step in the procedure calls for the establishment of tentative solution or answers. In handling grievances, management must make a list of alternative solution and later test them. In compiling common solutions, management need not at the time make them known to the worker. It is usually better to reserve judgment until some opportunity is afforded to check them . if an immediate answer is required the selection of the right answer will be dependent upon the experience, training and good judgment of the executive involved.

3.checking tentative solutions the executive has two possible courses of action:a.       he can rely on trial and error. He can check by

applying a decision. this is risky course, but often it must e done because of the lack of the time for further analysis.

b.      He can evaluate alternatives on the basis of his won experiences of others. This presupposes that there exist information on past successes and failures with similar cases.

5. APPLYING SOLUTIONS Having received a decision, it seems common sense that it should be applied. The decision having finally been reached, should be passed along in clear, unequivocal terms. After all, a grievance cannot be handled just by listening to an employee’s complaint, something must be done about it. The ultimate decision is the tool of action.

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6. FOLLOW UP OF THE GRIEVANCE It is unsafe to conclude that a grievance has been well handled until a check is made to determine whether the employee’s attitude has been favorably changed. To assure themselves along these lines executive concerned need a time table and a method of follow up or feedback.

As far as time is concerned, many executives rely upon their memories to check on how grievance can be handled. But if there is any danger of forgetting , a written record should be made.

As for feed back method there are several available:                                      i.            The most

important is casual observation , just see how employee is taking the decision, whether favorably or un favorably.

                                    ii.            To ask the employee whether or not he is satisfied with the decision.

                                  iii.            To ask others about a given employee reactions. This is dangerous because it smacks of spying. However, when used in the hands of the expert, it is desirable because it smacks of spying. However, when used in the hands of an expert, it is desirable because it takes place away from the particular person involved.

GRIEVANCE INTERVIEW

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many of the features of a grievance interview are the same as for other types of interview. There is no need of the quite, private room arrange to facilitate ease of communication. The employee or his or her representative is likely to do most of the talking, since they are raising the grievances. There may be a need to call witnesses and after hearing all the evidences from the both sides the manager may wish to adjourn before reaching a decision . the manager most ensure a fair hearing and that everyone concerned is aware of the purpose of the meeting, who is to be called as witnesses, the time limit within which a decision will be reached and the way in which decision is to be announced to the employees concerned.If there is not a swift and fair resolution of grievances the grievance may tend to build up and the work of the section is likely to suffer. At worst this could ultimately result in high labour turnover or a high level of absenteeism, as people removes themselves from a situation where they feel unhappy or it might escalate into an industrial dispute.

Grievance Procedure

A grievance is a difference of opinion between an employee or the Union and the City with respect to the meaning or application of the terms of this Agreement, or with respect to inequitable application of the Personnel Rules of the City or with respect to inequitable application of the Rules of the Fire Department.

Grievance Committee: Stewards. The Union shall appoint a Grievance Committee of not more than three (3) members to attend grievance meetings scheduled pursuant

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to Step 2 and Step 3. The Union may appoint nine (9) Stewards to participate in the grievance procedure to the extent set forth in Step 1 of the grievance procedure. The Union shall notify the Fire Chief in writing of the names of employees serving on the Grievance Committee and as Stewards. By mutual agreement between the City and Union, the parties may be represented by non-employee representatives at Step 3 of the grievance procedure.

Grievance Procedure. The Grievance Procedure set forth in this Section applies to employees covered by this Agreement. Recognizing that grievances should be raised and settled promptly, a grievance must be raised within twenty-one (21) calendar days of the occurrence of the event giving rise to the grievance or within twenty-one (21) calendar days of the date the employee has knowledge of the event giving rise to the grievance. A grievance shall be processed as follows:STEP 1: Written to Division Chief. The Union may, within the time limits set forth above, file a written

grievance signed by the employee and his Steward on a form provided by the City setting forth the nature of the grievance and the contract provision(s) involved. The Division Chief designated by the Fire Chief to hear Step 1 grievances shall give a written answer in ten (10) calendar days after receipt of the written grievance.

STEP 2: Appeal to Chief. If the grievance is not settled in Step 1 and the Union decides to appeal, the

Grievance Committee shall, within ten (10) calendar days from receipt of the Step 1 answer, appeal in writing to the

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Fire Chief. The Grievance Committee and the Fire Chief will discuss the grievance within 30 calendar days, at a mutually agreeable time. If no agreement is reached in such discussion, the Chief will give his answer in writing within ten (10) calendar days of the discussion.

STEP 3: Appeal to City Manager. If the grievance is not settled in Step 2 and the Union decides to

appeal, the Grievance Committee shall, within ten (10) calendar days after receipt of the Step 2 answer, file a written appeal to the City Manager. If the grievance involves a disciplinary suspension of seventy-two (72) hours or more, a demotion, or a discharge, there shall be a Step 3 meeting and a Step 3 answer from the City Manager. On all other grievances, the City Manager may elect not to hold a Step 3 meeting, in which event the City Manager shall advise the Union in writing within ten (10) calendar days of receipt of the Step 3 appeal that the Step 2 answer of the Fire Chief is the final City answer in the grievance procedure, at which point the Union may appeal the grievance to Step 4, Arbitration, if the Union so chooses. In cases where the City Manager will hear a Step 3 grievance, a meeting between the City Manager, or his designee, and the Grievance Committee will be held at a mutually agreeable time, generally within thirty (30) calendar days. If no settlement is reached at such meeting, the City Manager, or his designee, shall give his answer in writing within twenty-one (21) calendar days of the meeting.

STEP 4: Arbitration. If the grievance is not settled in accordance with the foregoing procedure, the

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Union may refer the grievance to arbitration by giving written notice to the City Manager within twenty-one (21) calendar days after receipt of the City's answer in Step 3. The parties shall attempt to agree upon an arbitrator promptly. In the event the parties are unable to agree upon an arbitrator, the Federal Mediation and Conciliation Service (FMCS) shall be requested by either or both parties to submit simultaneously to both parties an identical list of seven (7) names of persons from their grievance arbitration panel, who are members of the National Academy of Arbitrators and are residents of Illinois, Wisconsin or Indiana. Both the Employer and the Union shall have the right to strike three (3) names from the list. The parties by a toss of a coin shall determine which party shall first strike one (l) name; the other party shall then strike one (l) name; provided, that either party before striking any names, shall have the right to reject one panel in itsentirety The process will be repeated twice and the remaining named person shall be the arbitrator. The arbitrator shall be notified of his selection by a joint letter from the City and the Union requesting that he set a time and place for hearing, subject to the availability of the City and the Union representatives. The arbitrator shall have no right to amend, modify, nullify, ignore, add to or subtract from the provisions of this Agreement. He shall consider and decide only the specific issue submitted to him and his decision and award shall be based solely upon his interpretation of the meaning or application of the terms of this Agreement to the facts of the grievance presented. The decision and award of the arbitrator, which conforms with his authority, shall be final and binding upon the City, the

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Union and the employee or employees involved. The costs of the arbitration, including the fee and expenses of the arbitrator, shall be divided equally between the City and the Union. The City and he Union shall each be responsible for compensation of their own witnesses and/or representatives who attend arbitration hearings; provided, however, that the grievance shall be released from duty if necessary to attend such hearing without loss of pay. One (l) Union representative and any additional Union witnesses shall be released from work pursuant to Section 13.2, Exchange of Duty, to attend the arbitration hearing.

Section 6.4. Time Limits. No grievance shall be entertained or processed unless it is filed within the time limits set forth in Section 6.3. If a grievance is not appealed within the time limits for appeal set forth above, or at least reasonably close to those time limits, it shall be deemed settled on the basis of the last answer of the City, provided that the parties may agree to extend any time limits. If the City fails to provide an answer within the time limits so provided, the Union may immediately appeal to the next Step.

Section 6.5. Investigation and Discussion. All grievance discussions and investigations shall take place in a manner, which does not interfere with City operations. Generally, grievance meetings will be held during working hours.

Section 6. 6. Civil Service. It is understood that matters subject to Civil Service are not subject to this grievance procedure, except as provided in Section 6.8, Disciplinary Grievances. This provision shall not be construed as

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limiting or removing any Union right to bargain with respect to matters that remain subject to Civil Service i.e.. other than disciplinary grievances) in any negotiations relating to successor contracts.Section 6. 7. Disciplinary Meetings. No meeting between the City and/or its designee and an employee held for the purpose of discussing actual disciplinary matters shall take place unless the employee and a designated Association representative have been provided with a two-hour notice of the time, place and purpose of the meeting. An Association representative shall be present at all such meetings. If said representative is not present, the employee shall not be required to participate in said meeting and the employee shall not be discharged or otherwise disciplined for said refusal. Nothing in this Agreement shall waive and/or abridge any employee’s rights, benefits or protections under the Firemen’s Disciplinary Act of Illinois, Ill. Rev. State., chi. 85, Section 2501, et seq.

Section 6.8. Disciplinary Grievances. Unless the first disciplinary offense is sufficiently serious to warrant discharge, discipline in the Fire Department shall be progressive and corrective, designed to improve behavior and not merely to punish. Where the City believes just cause exists to institute disciplinary action, the Employer shall have the option to assess the following penalties:Oral reprimand

Written reprimand

Suspension

Demotion

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Discharge

It is understood that the foregoing disciplinary steps may be repeated and/or certain progressive disciplinary steps may be omitted, depending upon the seriousness of the offense.

Grievances may be filed with respect to the just cause of any disciplinary action (other than an oral reprimand) taken against an employee. If an employee is suspended or discharged, a grievance protesting the suspension or discharge shall be filed in the first instance at Step 3 of the grievance procedure within ten (10) calendar days of the imposition of discipline, and shall thereafter be processed in accordance withSection 6.3 of this Agreement. If the discipline involves a disciplinary suspension of 72 hours or more or demotion or discharge, the parties will request an arbitration panel pursuant to the grievance/arbitration procedure of this Agreement when the grievance is filed at Step 3, if the Union so requests in writing.

Discharge and disciplinary suspensions shall be subject to review under the grievance procedure up to and including arbitration. Disciplinary actions shall be subject to review under the grievance procedure only. Such review procedures are in lieu of and expressly supersede and preempt the employee notification and appeal procedures of the City Civil Service Commission. Such contractual review procedure shall be the sole and exclusive method of reviewing all disciplinary action.

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GRIEVANCE PROCESSES a grievance is the embryo of more serious trouble to come because accumulation of minor grievances may lead t major explosions. Therefore prompt and effective handling of grievance is key t peace in the organization. This calls for the systematic procedure or grievance handling for just and speedy disposal f grievances. There are two types of grievances of the employees. Types of grievance procedure

Open door policy Under this procedure the employees are free to meet the top executives of the organization and get their grievance redressed . such a policy may work well in the small organization , but in the big organization this may not b practical because the top executive will be too busy in other matters .another disadvantage of this policy is that lower level and middle level executives feel bypassed . this may complicate the human relation problems moreover top management is not too familiar with the working condition of the operative employees . it may be difficult for it to attend to employ grievance because of lack of sufficient information. Lastly, it is also said that the open door policy is suitable foe executive to walk through and not the operative employees . the employees may even hesitate to go to

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top executive with their grievances. Because if these difficulties, step ladder procedure may be adopted.

DISADVANTAGES OF OPEN DOOR POLICY

1. it prevents the supervisors from getting prompt , firsthand information that is sated or implied in a complaint .but first level supervisor need this kind of information whether it concerns allegedly unsatisfactory work conditions or merely the feeling of some disgruntled employees.

2.whenthe complaint does not go directly to the first level supervisors., member of the higher management and personnel officer loose a valuable opportunity to assess the skill of supervisors in the leadership aspect of their job.3. an executive who looks into the complaint and settle it on the spot , is stepping out of the executive role. Time and thought are spent doing the work of lower level supervisor.4.the open door policy inevitably weakens the authority of management representative who are bypassed. First level supervisors lose face with their immediate organizational superiors and with their subordinates as well. When dissatisfied employees may go directly to the top or the personnel .and all representatives of the line management lose authority that they need when personnel

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officers are encouraged to step out of their advisory role and make line decisions.

Aside from such purely organizational considerations, the open door procedure violates two rprinciples of simple justice. These are:1.In a dispute to hear the the other side of

the story.2.To allow the accused to face the accuser

before a verdict is rendered. Moreover if a higher manager is to hear a first level supervisor story after a complaints has been registered, dissatisfied employees are back where they are started. With one important difference. A supervisor who is in the effect , been called on the carpet is unlikely to feel favorably disposed forward a complaint.

3. here are few practical difficulties associated with the open door policy .even managers who call in a supervisor and try to get the whole story are likely to be unfamiliar with the work situation in which the dissatisfaction developed. Thus they are unable at that time to evaluate information that they get in the in the initial interview.

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Two other practical objectives are rooted in human nature. One of these has often been observed by some policy statement such as the open door may be used without prejudiced to the employee “ but guarantee of safe passage cannot e made always good . bypassed and offend suprevisors can bide their time . if they want to retaliate, they can do so in devious ways. Of course, responsible supervisors are above such tactics. But there is considerable evidence that employees fear reprisal and are quick to misinterpret subsequent disciplinary action, even when taken for the just cause.Second many rank and file employees have enough organization since to recognize the inherent impropriety and risk of accepting an invitation to use the open door. Even some top executives who are here to this procedure seem not wholly to believe all they say about it. For example in one company with21,000employees, the senior author asked the chief executive.“ how many employees actually used the open door last year?“eight”“ what do you think of them?”“ to be honest”, the executive replied,” they were screwballs , every one of them.”

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2. STEP LADDER PROCEDUREUNDER THIS PROCEDURE the aggrieved employee has to go step by step in getting his grievance heard and redressed. firstly he has to present his grievance in writing to his supervisor or foreman. If he is not satisfied by 0his decision he may go to the head of the department. There may be a joint grievance committee after the decision of the head of the department is not acceptable by the employee if the committee also fails to redressed his grievance , the matter may be referred to the chief executive . the grievance procedure is said to be exhausted if the chief executive is also not able to redress the grievance. The worker should not action against the management (such as going to labour union or labour court ) until the whole grievance procedure has been exhaustive.

The grievance assumes the form of a conflict after a worker is not satisfied with the decision of the chief executive. For maintaining industrial peace in the plant, it is advisable to refer such grievance to the voluntary arbitration. The award of the arbitration should be binding on both the parties.

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Model grievance procedure

The model grievance procedure gives in detail the steps to which a grievances is to be processed. These may be summarized as under_First step the grievance is to be submitted to the departmental representative of the management i.e supervisor or foreman . he has to give his answer within 48 hours.Second step if no solution is found at the first step, the aggrieved worker can take his grievance to the head of the department who has to give his decision within 3 days. Third step if the worker is not satisfied with the department head. He can take his grievance to the grievance committee. Grievance committee must make its recommendation to the manager within 7 days. The final; decision of the management on the report of the grievances committee must be communicated to the concerned worker within

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3 days of the receipt of the report. an appeal for the revision of the final decision can be made by the by the aggrieved worker if he is not satisfied with it. The management must communicate its decision to the appellent worker within 7 days. Fourth step if the grievance still remains unsettled, the case may be referred to the voluntary arbitration. Two points must be noted. firstly a time limit has been put ay every stage of the procedure. This is in recognition of the fact that justice delayed is justice denied. Secondly, throughout the process of grievance procedure, the aggrieved worker is expected not to take resort to any direct action, the order against which representation is made should must be complied with and conciliation machinery will be resorted to only after the final decision of management fails the aggrieved worker.

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Informal grievance procedureThe labour research department(1995 conducted a survey of the grievance procedures of 85 organisations. They found the majority of the complaints are resolved in an informal way, making it unnecessary to raise them as formal grievance. Informal grievance procedure seems to be just as important in an organization as informal disciplinary procedures. However , a small number of complaint will be resolved informally and for these it is unnecessary to have a grievance procedure.

Formal GREIVANCE PROCEDUREIn order that both employees and managers are clear about how to handle grievance , a grievance procedure should be designed and issued to all employees . it is good idea, once again, to involve various groups in the design of a procedure to suit a particular organization. A suitable format for the grievance procedure might be to use similar headings to those used in the design of a

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disciplinary procedure. Suitable heading could be :-

The Purpose and scope of the grievance procedure

The principles that underlie the procedure

The stages in the grievance procedure Exceptional circumstances The appeal procedure

Exceptional circumstancesIn exceptional circumstances it may not be practical to raise the grievances with the immediate manager. This may be because the grievance is caused by the manager or because the manager will not be available, perhaps because of illness, to deal the grievance with the urgency that it deserves. In those exceptional circumstances the grievance may be taken to the next level of supervision.

PUROPSE AND SCOPE OF GRIEVANCE PROCEDURETHIS SECTION IS LIKELY To indicate which employee is covered by this particular procedure if there is slightly different procedure for different groups. It should also state that the aim of procedure is to settle any grievance as near to the

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source of the grievance as possible. In order to minimize problems at work and ensure a happy and productive working environment, the procedure should be simple to use and rapid in operation.

BENEFITS OF GRIEVANCE RPOCEDURE1.It brings grievance into the open so that the management can learn about them and try corrective action.2. it helps in preventing grievances from assuming big proportion. The management catches and solves a grievance before it becomes a dispute.3. it provides employees a formalized means of emotional release for their dissatisfactions . even if worker doesn’t use the grievance system for his own emotional release in a particular situation, he feels better because he knows the easy system is there to use if he wants to do so. It builds within him a sense of emotional security.4.it helps in establishing and maintaining a work culture or way of life. As problem is interpreted in the grievance procedure, the group learns how it is expected to respond to the policies that have been set up.5. it acts as a check upon arbitrary and capricious management action. When a

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manager knows that his actions are subject to challenge and review in a grievance system he becomes more careful in taking his decisions.

SETTLEMENT OF GRIEVANCES IN INDIA INDUSTRY: Settlement of grievances has not received adequate attention in our legislative framework. There are few

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enactments, which only indirectly deal with the redressal of industrial grievances.

PRESENT ENACTMENTS

1. The industrial employment (standing orders) Act 1946:- It provides that every establishment employing 100 or more workers should frame standing orders which should contain, among other matters, provision for means of redressing the workers against unfair treatment or wrongful actions by an employer or his agents or servants.

2. the factories Act ,1948:-Similarly section 49 of the factories act provides for the appointment of welfare officer in every factory wherein 500 or more workers are ordinarily employed. These officers are generally entrusted with the task of dealing with the complaint and grievances however these provisions are not helpful due to the dual role, which these officers are called upon to play.

3. the industrial dispute Act,1947:- under section 2-a of the industrial disputes act the term “ industrial dispute” includes all differences between an individual workman and his employer connected with, or arising out of his discharge, dismissal, retrenchment or termination notwithstanding that no other workman nor any union or workmen is party to dispute . This law provides:

a.The employee in relation to every something industrial establishment in which 50 or more workmen are employed shall provide for grievance settlement authority for the settlement of industrial settlement of

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industrial dispute connected with an individual workman employed in the establishment. The provision of this authority shall be in accordance with rules made in that behalf.

b. Where an industrial dispute connected with an individual workman arises in an establishment referred to in section (1) a workman or any trade union of workmen of which such workman is a member may refer such dispute to the Grievance Settlement Authority for settlement.

c. The grievance settlement authority shall follow such procedure and complete its proceeding within such a period as may be described.

d. No references shall be made to board. Courts or tribunals of any dispute referred to in this section unless such dispute ahs was referred to the Grievance Settlement Authority concerned and the decision of the Grievance Settlement Authority is not acceptable to any of the parties to the dispute.

It should be noted, however that in none of the above acts there exist a provision for some specific procedure to be followed by the employer for handling day to day grievances of his workers. In the absence of statutory grievance procedure several managements aloe their workers, daily discontent to pile up which finally culminates into case of indiscipline and strikes.

In order to meet the shortcomings, the Industrial Dispute Act, 1982 which has not yet been enforced, provides for the setting up of Grievances Settlement Authorities and

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references of certain individual disputes to such authorities. Section9-c of the amended act provides:-1. the employer in relation to every industrial establishment in which 50 or more workmen are employed or have been employed on any day in the preceding 12 months, shall provides for, in accordance with the rules made in that behalf under this act, a Grievance Settlement Authority for the settlement of industrial dispute connected with an individual workman employed in the establishment.

2. where an industrial dispute connected with an individual workman arises in an establishment referred it in section(1) a workman or any trade union workman of which such workman is a member shall refer in such manner as may be prescribed such dispute to the grievance Settlement Authority provided for by the employer under that sub section for settlement.3. The grievance settlement authority referred to in sub section (1) shall follow such procedure and complete its proceeding within such a period as may be described.4. No references shall be made to Board, Courts or tribunals of any dispute referred to in this section unless such dispute has been referred to the Grievance Settlement Authority concerned and the decision of the Grievance Settlement Authority is not acceptable to any of the parties to the dispute.

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A brief description of the procedure followed by some major industrial units in the country:

In Rourkela steel plant: The aggrieved worker in the first instance seeks redressal of his grievance by approaching the foreman or the departmental head at the shop floor itself. If unsatisfied with their decision the worker can evoke the Zonal grievance committee of his zone and then the central grievance committee at the apex. Both these committees are bipartite in character with officers from the personnel department acting as conveners. If the central Grievance Committee fails to reach unanimous decision, the grievance is placed before the General Manager whose decision is final. Thereupon the matter is treated as closed from the side of management without prejudice to the right of the worker to raise the dispute according to the law.

In the textile mills of Ahemdabad:The grievance machinery set up by the Textile Labour Association has been functioning for a long time. The union runs complaints Department to redress the grievances both of its member and non members. The elected representatives of the association in the mill take up the complaint to the departmental head in the first instance. If he fails to solve the grievance, he directs the worker to the office of the association to record the complaint. A Union inspector then investigates and tries to settle the grievance with the individual mill. If he, fails, the matter is taken up by the officers of the Association with the mill

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management or with the owner’s Association and if it still remains unsettled it is submitted to adjudication..

A study of 12 textile mills situated in Coimbatore, jointly sponsored by the South Indian Textile Research Association and the National Productivity Council, has revealed the following facts

        No systematic and formal grievances procedure exist in any of the sample mills. However there is in operation a sort of informal procedure based on tradition and convention

        Wage adjustment and other related matters from the largest group of grievances.

        No systematic procedure is followed or a separate log book maintained in any of the mills for recording grievances.

        The number of level of or dealing with grievance varies from 2 to 6 and has no relationship with the number of workers employed. Clear demarcation of the levels in the procedure is also lacking.

        The time limit for settlement of grievances is usually one day at the lowest level and about 2 weeks at the highest level.

        there is no clarity about the types of grievance, which each level should settle. On an average 26.5% of the total grievances were settled at the jobber’s level, 18.2 % at the superior level, 15.2 % at the spinning master level, 19.6% at the manager’s level and 3.8 % at the labour welfare officer’s level.

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        In case of mills which have one majority union representatives play a prominent role in the settlement of group grievances. It is they who generally take up the grievances with the management. In other cases it is the labour officer who negotiates settlement of grievance with the management. In 4 of the 12 mils studied, works committees were also found to perform a useful function in the settlement of grievances.

During the course of the above study a questionnaire was sent out was followed by interviews with some 120 representatives of labour and management

Some important recommendations made by this study are as under

The type of grievance to be taken up at various levels should be related to the authority of the personnel at those levels.

Grievances should be oral and informal at the initial stage but they should be recorded at higher levels.

While grievance committees might not be necessary in small and medium sized units. They would serve a useful a function in large units where they should act in an advisory capacity. Their role should be at the last but one level in the grievance procedure.

For small units employing les than 500 workers the grievance procedure should have three steps only, for medium sized units it should have 4 steps and for large units it should have 5 steps.

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We may conclude that except in case of a few big industrial units a formal grievance procedure is very uncommon in India. In small enterprises the workers make a direct approach to the top boss who often, without consulting the line supervisors below, gives decision on the issue. Apart from the fact that such a snap decision I not always objective and correct, it considerably undermines the morale of the line supervisors

GRIEVANCE HANDLING PROCEDURE IN NTPC

FOR NON EXECUTIVES

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INTRODUCTION

Employees grievances and complaints which are primarily manifestation of their dissatisfaction against their working conditions, managerial decisions etc if not Promptly attended to, are bound to explode .NTPC management believes in the philosophy of an open door policy in the matter of redressed of grievances. Be it collective or individual and an aggrieved employee is welcome to meet his departmental head or the concerned HR Officer (including the head of HR Department) and discusses his grievances. Nevertheless, in view of the ever growing size of the industrial organizations and the accompanying complexities and problem the need of formal grievance machinery cannot be under estimated. Accordingly the following time bound grievance procedure is laid down for non- executives.

OBJECTIVE

The objective of grievance procedure will be:-

To settle grievances of the employees in shortest possible time.

At lowest possible level of authority. To provide for various stages so that the aggrieved

employees derive satisfaction of seeking redressed, if required, even from the highest level of authority.

SCOPE

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The matters coming under the scope of this grievances procedure which can be invoked by aggrieved employee are those relating to:-

Wage payment Increment Recovery of dues Working condition Leave Allotment of quarter Medical facility Seniority Transfer Promotion Like issues

The matters relating to collective dispute / bargaining such as wages and allowances, bonus, Amour’s o0f works and other benefits and also cases relating to disciplinary matters will be outside the purview of the grievances procedure.PROCEDURE

There will be a three tier grievance procedure with further provision of appeal as detail below STAGE I1, an aggrieved employee in the first instance meet his immediate superior officer and present the grievance orally to him.2. In case he is not satisfied he can present his grievance in the prescribed form (form-1) to the concerned HR Officer

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within 15 days from the date on which the act of grievance or complaint arose or came to his notice.3. The concerned HR Officer after making necessary enquiries will give reply to the aggrieved employee within a time of 10 days.

STAGE-II1. In the case the employee is not satisfied with the

decision communicated to him at stage 1 or fails to receive a reply within stipulated period, he/she may submit his grievance in the prescribed form (form-II) within a period of 15 days to the head of department for the latter’s consideration.

2. The aggrieved employee who has filed a Stage-II grievance may be allowed to present his/her case in person, if he/she so desires at this stage.

3. the aggrieved employee will be replied to within three weeks of the receipt of his grievances at stage-II

STAGE-III 1at this stage, the grievance will be looked into by a grievance committee, to be constituted by the respective general managers for the projects/unitsD by general manager (HR) for corporate centre, consisting of the followingAn executive not below the rank of senior manager or manager, in case the former is not readily available.

Chairman

An executive of finance and Member

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accounts department not below the rank of Accounts officer.An executive of personnel department not below the rank of senior HR officer

Secretary

2. if the employee is not satisfied or fails to receive the reply within the stipulated period at stage II ,he may present his grievance for consideration at stage III in the prescribed form (form-III)within a p[period of 1 month. The employee concerned may be heard in person, by the grievance committee, if it so likes. He may allowed to be assisted by a coworker before the committee, if he so desires.3. The committee will meet at regular fixed intervals to deliberate upon all such grievances as are addressed to it During the course of examination the committee will be assisted, if required, may concerned employee to present facts /records pertaining to the grievance .in the event of difference of opinion among the members of the grievance committee the views of the members along with relevant papers will by placed before the general manager by the secretary, Grievance committee for a final decision.

4. The decision of grievance committee will be communicated to the aggrieved employee within 30 days room the date of receipt of the grievance at stagier.

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5. The grievance committee recommendations should be implemented by the management.

In case of major issues like non allotment of quarters, grievances airs=in out of neon promotion etc. higher time limit of one month from the date of outrace of the cause of grievance will be allowed and he aggrieved employee will also be allowed to take up the matter at stagier directly.

APPEAL In case the employee still remains dissatisfied even after stage III he may appeal to the general manager of division within a period of 10 days from the date of receipt of the decision from the grievance committee .after the examination and consideration The decision of the general manager will be communicated to aggrieved employee within a month of the receipt of his appeal.

GENERALIt would be the endeavor of the management to ensure the speedy implementation of the decision of the grievance committee and the general manager of the committee as the case may be.

FOR EXECUTIVES

INTRODUCTION

EMPLOYEES Grievances and complains which are primarily manifestation of their dissatisfaction against their

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working condition , managerial decisions etc. if not promptly attended to are bound to explore. NTPC management believes in the philosophy of an open door policy in the matter of redressed of grievances, and an aggrieved employee is welcome to meet his departmental head or the concerned HR Officer (including the head of HR department) and discuss his grievances. Never the less, in view of ever-growing size of the industrial organizations and the accompanying complexities and problems the need of formal grievance machinery cannot be underestimated. Accordingly, a time bound grievance procedure for all non executive employees was introduced by NTPC in June 1980. The need of the formal grievance procedure for executive has been felt since sometimes in the past by the company and the same was under consideration. keeping in view of this need and also the guidelines received from the government of India. NTPC has laid down a formal time bound grievance procedure for redressed of the grievance of executives.

OBJECTIVEThe objectives of the grievance procedure will be:

To settle the grievance of the employees in the shortest possible time

At lowest possible level of authority To provide for various stages so that the aggrieved

employees derives assistant of speaking redressed ,if required even from the highest level of authority.

SCOPE AND COVERAGE

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The procedure will cover all executives of the Company up to the level of DGM. Executives in higher levels may take up their grievances, if any, with their reporting officers. Grievances for the purpose of his procedure would only mean individual grievance and the matters under the scope of this procedure, which can e invoked by an aggrieved executive, shall recoveries be those relating to the following:

Salary payment Recoveries of dues etc. Increment Working conditions Leave Allotment of quarters Medical facilities Non extension benefits under rules Transfer Promotion Like issues

The grievance arising out of the following shall not be come under the purview of the grievance procedure:

Terms of appointment settled prior to joining Annual performance appraisal Matters relating to disciplinary enquiry, action and

vigilance cases Where the grievance does not relate to an

individual executives

PROCEDURE

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The individual grievances of the executive shall be dealt with as per the procedure laid down below:

STAGE -12. The aggrieved executive shall take up his grievance

orally with his immediate superior (not below the rank of deputy manager) who will give a personal hearing and try to resolve the grievance at his level within seven days. For this purpose every project GM and head of region/officers shall nominate and notify a list of executives in different departments who will hear oral grievances. Wherever necessary, the nominated officer will consult his head of the department and /or such other departments before communicating back with the aggrieved executive.

3. In case the executive is not satisfied he can submit his grievance in writing in Form-1 within 15 days from the date on which the act of grievance arose or came to his notice to the head of department concerned.

3. The Head of Department concerned will record his comments on the grievance within 7 days after making necessary enquiries/obtain necessary guidelines from other departments, if any, as required.

Stage-II

1 In case the executive is not satisfied with the decision communicated to him at Stage-I or if he fails to receive the reply within stipulated period, he may submit his grievance in the prescribed form (formII) within a period of 15 days to a Staff Council in the project/regional offices/Corporate Centre. The staff council will be constituted by the ED concerned for project and regional offices and Director (P) for Corporate Centre by the

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designation of the Member. The Council will consist of the following:

A. At Projects/Region:-                      GM/Head of the Project or Office

-                      The concerned HOD of the aggrieved executive

-                      Chief Finance Manager or the Head of the Finance in the Project/Office

-                      CPM or Head of HR in the Project/Office (Member Secy.)

B. At Corporate Centre:

-                      Executive Director (any one from the Corporate Headquarter)

-                      Head of Department concerned

-                      Financial Controller

-                      GM (HR)/DGM (HR) - Member Secy.

The Council thus constituted the staff council shall continue to function so long as no further changes are required in its constitution.

The Council will examine the details of the grievance and may also discuss with the aggrieved employee, if felt necessary. The Staff Council shall give its reply to the aggrieved executive within 30 days from the date of receipt of the grievance. However, wherever felt necessary by the Staff Council, it may make a recommendation for a final decision of Director (HR), who will convey his decision within 30 days from the receipt of grievance from the Grievance Committee. The decision of the D (HR) shall be final subject to the provisions: contained in paragraph below:The executives of the levels of Head of the Department & DGM's may take up their grievances verbally with their immediate superior officials (it could be a DGM or GM) to get their grievances resolved within the stipulated 7 days,

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failing which they can communicate the same in writing to the said superior official in Form-I. The superior official shall reply to the individual within 7 days after ascertaining the requisite information from all the Depts. Concerned Wherever the executives of the level of HOD/DGM's do not receive reply within the stipulated period or are not satisfied with the reply so received, they may choose to submit their grievances in Form-II to the Staff Council. In such an eventuality, the GM/Head of the Project/Office will have a dual role to perform in addition to being the Head of the Department of the aggrieved executive.3

Stage-Ill

In exceptional cases, the aggrieved executive who is not satisfied with the decision will have an option to appeal to CMD. The CMD will take a decision and communicate the same within 30 days from the receipt of the appeal and his decision will be final and binding.

GENERAL CONDITIONS:

The executive shall bring up his grievance immediately and in any case within a period of three months of its decurrence.

If the grievance arises out of an order given by the Management, the said order shall be complied with before the executive concerned invokes the procedure laid down for redressal of his grievance.

LIVE CASES OF GRIEVANCES IN NTPC

4. Grievance of Mr. X* Dy.Mgr. (Safety)

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Mr. had submitted a grievance in the year 1989 in connection with his promotion not taking effect in terms of the offer of appointment. Mr. joined NTPC on 30th October 1984 as a senior engr. (safety). Clause 4(a) of his offer of his appointment bears the following stipulation: “You will be considered for promotion to the next higher post of Dy. Mgr in the scale of Rs.2000-75-2300-100-2800/- after completion of one year satisfactory service in NTPC.” Mr. X completed one year service on 29.10.85 and he was confirmed in the post of Sr Engr. (safety) w.e.f 30.10.85 as regard his commitment for promotion the same was not given effect to and he was finally given the promotion w.e.f 01.01.87. The basic grievance of Mr. X is that instead of giving him promotion from 29.10.85 his promotion to the post of Dy. Mgr (safety) has been effected from01.01.87. The grievance committee observed that Mr. fulfilled terms and conditions, as stipulated in the offer of appointment and he should have been considered for promotion after one year service in NTPC i.e. w.e.f 01.11.1985 Based on this the committee considered that the grievance of Mr.X had substance and therefore recommends that Mr. X may be promoted w.e.f 01.11.1985 exactly in the line with the terms and condition offered to him vide offer of appointment date 19.06 84.

2. Grievance of Mr. Y* Dy.Mgr. (EDP)

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Mr. Y has submitted a grievance at stage-II in the year 1989 in connection with his denial of promotion for the third year in succession. Mr.Y had joined NTPC as Dy.Mgr. (EDP) w.e.f 25 .02.83as per the promotion policy he was eligible for the consideration for promotion in July ‘86 but he was not recommended by the for promotion by corporation promotion committee (cpc) 86.the case for his promotion had subsequently been considered by cpc 87 and cpc88 but he had been not recommended for promotion he had taken up the grievance at Stage-I with his HOD, but he was not satisfied with the reply and has, therefore, submitted his grievance at Stage-II. After examination it was concluded that CPC had recommended the promotion in respect of Mr.Y due to various reasons like performance appraisal reports and performance in the interview etc. the committee, therefore, proposed to regret the case of Mr. Y

*name of person is kept confidential.

CONCLUSIONIt is observed from the analysis that few employees are not

aware of the grievance settlement machinery in their

organisation. employees are also not aware of the grievance

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procedure ( open door policy, step-ladder or mixture of

both)used for the redressal of the grievances. Most of the

employee either have no grievance or have grievance

related to the promotion. Majority of the employees report

to their immediate supervisor in case of grievance followed

by the head of the department but some employee do not

report about their grievances. Open door policy is mainly

used for disclosing the grievance of the employees

followed by direct observation and exit interviews by the

organization. Half of the employees surveyed say that

grievance settlement is not properly communicated to the

managers ,union leaders, supervisors etc. meetings and

circulars are mostly used for communicating the grievance

settlement procedure. more than half of the employees say

that the grievance settlement procedure in their

organization is effective and very few say that it is very

effective or I it is moderately effective. An equal proportion

of the people want step-ladder procedure or mixture of both

step –ladder procedure and open door policy for the

settlement of the grievances. Majority of the employees are

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satisfied with the grievance settlement machinery in their

organization.

On the basis of the findings through questionnaire and

personal interviews it can be concluded that most of the

employees are satisfied and don’t have any grievance. if

they have any grievance then most of them are resolved

through informal grievance procedure. Very few cases

enter the formal grievance procedure.

Thus it can be said that NTPC is taking well care of the

needs of the employees due to which very few grievances

come up. The superiors are of understanding nature and

good relations with their subordinates that is why most of

the employees prefer their immediate superior in case of

any grievance.

RECOMMENDATIONS

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NTPC is a model organization only in respect of

operational performance but also management of its human

resource. It is amongst a few privileged public sector

undertakings, which have been honored the status of

NAVRATNAS. Besides, as mentioned earlier NTPC has

been ranked 3rd “best employer” in India in 2003 in a

survey carried out by business today and Hewitt associates.

During interaction with the employees, in my study i found

the work culture in schemes is judiciously formulated by

the management to take care of mutual benefits of NTPC

and its work force.

Employees are the best source to know about the strengths

and weakness of the organization as they have spent a

major part of their life in the organization. When i

interacted employees with the objective to get their ideas

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and opinion how do they feel about improve it , i found

majority of them highly motivated and quite satisfied with

their employer as NTPC is already sincerely concerned

about its work force.

I feel that other organization should follow NTPC as role

model to improve their performance, productivity. This is

all because the management of NTPC makes time-to-time

positive changes leaving no scope for the people to get

dissatisfied. Continuous processes of positive changes to

meet out the mutual requirement to organization as well as

individual are part of work culture in NTPC.

.

Related to grievance settlement machinery

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There are many things that are to be taken care of while handling grievances. Some points are to be taken care by the management, union and employees of the organization for effective grievance settlement machinery. Essentials of a good grievances procedure in the organization

It should be flexible enough to meet the requirement. It should be simple so that an average employee is

able to understand it. it should be dealt with speed as delay causes

frustration. it should lay down the time limit which should not be

exceeded at every step of the grievance procedure it should be developed with the participation of the

leaders of the employees and must be applicable to all. it should ensure the speedy redressal of the grievance

and must be cable of ensuring satisfaction to the individuals concerned.

It should have limited number of steps with the provision for at least one appeal

Employee must know the authority to be contacted at various level

DESIRABLE FEATURES OF A GRIEVANCE PROCEDURE

o conformity with existing legislation:- the procedure should be designed to supplement the existing statutory provisions. Where practicable, the

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procedure can make such machinery as the law might have already provided for.o ACCEPTIBILITY:-grievance procedure must be acceptable by everyone. it must ensure: Sense of fair play and justice to the worker Reasonable exercise of authority to the

manager Adequate participation of the union.

3.SIMPLICITY:- The procedure must be simple enough to be understood by every employee. The steps should be as few as possible. employee must know the authority to be contacted at various level4.PROMPTNESS:-Speedy settlement of the grievance is the corner stone of a sound personnel policy. Justice delayed is justice denied. It should aim at rapid disposal of the grievance. This can be achieved by incorporating following features.

grievance should be settled at the lowest level. There should be only one appeal. Different types of grievance may be referred to

appropriate authorities .it may be useful to classify grievances as those arising from personnel relationship and others arising out of conditions of he employment

6. TRAININGIn order to ensure effectiveness working of the grievance procedure it is necessary that supervisor and union representatives are given training in the grievance handling.5. FOLLOW –UP

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The working of the procedure should be reviewed periodically by the personnel department and necessary structural changes introduced to make it more effective.

RELATED TO NATIONAL THERAML POWER CORPORATION(NTPC)

1. employees should be informed properly about the grievance machinery used by organisation for the redressal of the grievances as many employees don’t know which grievance machinery(open door policy, step ladder procedure etc.)is used by their organization. This can be done through company magazine, circulars , meetings etc.

2. most of the employees are having grievance related to promotion, so the organization should take measures so that no such grievance come in future. For this the immediate superior should take care of promotion of his subordinate on time.

3. some employee does not report about their grievances because of the fear that they may be transferred or any other action can be taken against them. so the organization should take action to know about grievances of such employees and assure them that no negative action will be taken against them.

4. the grievance settlement procedure should be properly communicated to all of the employees ,as many employees are not fully aware of the procedure used for the redressal of the grievances, like the time limit at different stages or the pattern to be followed

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5. very few employee say that the grievance settlement machinery is very effective. The organization should try to know why the employees have this perception and what should be done to make it more effective.

BIBLIOGRAPHY

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1. 1.Handbook Of H.R. Administration-Joseph J.Famularo

2. NTPC Annual Repot (2003-2004)

3. NTPC Annual Report (2004-2005)

4. Principle Of Personal Management-Edwin.B.Flippo, Mc.Graw

5. Personnel Management- Monappa, Arun & Saiyadain, Mirza.S:

6. Industrial Relations In India-Mamoria,C.B Mamoria&Mamoria

7. Grievance Procedure: Some Significant Aspects in dynamics of Industrial Relation In India-Pankal,J.A

8. “Employee handbook” of National Thermal Power Corporation

WEBSITES1. www.ntpc.co.in

2.www.ntpcindia.com

3.www.googles.com (as search engine)

QUESTIONNAIRE

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GRIEVANCE HANDLING IN NATIONAL THERMAL POWER OCRPORATION

PART-1 PERSONAL PROFILE1. Name ……………….2. Designation ……………….3. Experience (in years) ………………4. have you been a member of Grievance Committee

a. Yes b. No Part –II QUESTION RELATED TO GRIEVANCE SETTLEMENT MACHINERY

1. Is there any Grievance Settlement Machinery in your organization?

Yes No

2.If yes do you know about the Grievance Settlement Machinery in your organization?

Yes No

3.Does your organization maintain proper records of the employee grievances?

Yes No

4.Which of the following Grievance Machinery you have in your organization? Open-door policy

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Step-ladder procedure Mixture of both5.You have grievance related to which of the following?

Wages BonusIncrementPromotionTransferOvertimeDisciplinary actionRules and regulationsAny other please mention……………..

6. If you have any grievances , whom do you report? Immediate supervisor Head of the department IR Department Grievance committee Top Management Union Leader7.what sources are used to disclose grievances in your organization?

Direct observation Exit interview Open-Door Policy Gripe Boxes Opinion survey

8.Is Grievance Settlement Procedure properly communicated to the manager, union leader, supervisors etc.

Yes No

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9.if yes , then what methods are adopted to communicate the procedure?

Circular Company magazine Meeting direct communication Any other please mention……….

10.Is there any time limit at different stages for the settlement of the grievances?

Yes No

If Yes then please mention………. 11..please indicate the effectiveness of the following for the redressal of grievance in order of preferences?

Immediate supervisor Head of the department IR Department Grievance committee Top Management Union Leader12.what do you think regarding the Grievance Settlement Machinery in your organization?

Very effective Effective Moderately effective ineffective can’t say

13.which of the Grievance Settlement Machinery do you prefer? Open-door policy Step-Ladder procedure Mixture of both

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14.Are you satisfied with the Grievance Settlement Machinery of your organization ?

Yes No

b.

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