emplyee benifits.doc

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COMPENSATION AND EMPLOYEE BENEFITS

At

N T P C Ltd.,

RAMAGUNDAM

A PROJECT REPORT

Submitted in partial fulfillment of the

Requirements for the award of the Degree of

MASTER OFBUSINESS ADMINISTRATION

ByVEMULA PADMAJA

H.T.NO.07E41E0057

Ud!" t#! G$%d&'! ()

M".A.RAM*ISHANS". ASST OFFICER +HR

SREE DATHA INSTITUTE OF ENGINEERING AND SCIENCE

S&-&" R(&d, S#!"%-$d&, I"%/&t&/ +/.

+JNTU UNIVERSITY, HYDERABAD.002300.

1


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DECLARATION

(, VEMULA PADMAJA pursuing $)# in Department of H&$# R*+&+*

$##%*$*T, -T& here by declare that the project work entitled

COMPENSATION AND EMPLOYEE BENEFITS6 :ITH REFERENCE

TO NTPC ;td, RAMAGUNDAM submitted to -T& &(.*R+(TY, HYD in

partial fulfillment of the requirements for the award of the degree of MASTER OF

BUSINESS ADMINISTRATION.This report has not been submitted toany degree or diploma of any other uni/ersity0

D#T*

!2#"* +VEMULA PADMAJA

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AC*NO:LEDGEMENT

(t is a great pri/ilege for me to record here my deep sense of gratitude towards +hriP.GOPALA RAO, Add;.G!!"&; M&&-!" +HR, NTPC LtdRamagundam for

gi/ing me this opportunity to do my project work in the company0

( would like to e4press my profound gratitude to M". A.RAM*ISHAN ASST.

OFFICER +HR NTPCRamagundam for his e4ceptional guidance in doing my

project work, and my college guide H.O.D D".'.U#&"&%, Ad

M".N.*"%#&


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NTPC V%%(

9

TO BE ONE OF THE :ORLDS LARGESTAND

BEST PO:ER UTILITIES PO:ERING INDIA?S

GRO:TH6

:


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CONTENTS

S.No arti!ulars age No

I. INTRODUCTION 07318

II. COMPANY PROFILE 14312

III. INSTALLED CAPACITY 138

IV. COMPENSATION >

EMPLOYEE BENEFITS AT NTPC LTD 4380NTPC HIGHLIGHTS 8138

V. ORGANI@ATION CHART 40341

VI. COMPEN SATION 431

HUMAN RESOURCES AT NTPC 378

NEED>IMPORTANCE OF STUDY 74

SCOPE OF STUDY 7537

VII. RESEARCH METHODOLOGY 7737

VIII. DATA ANALYSIS > INTERPRETATION 203105

I. UESTIONNAIRE 10310FINDINGS 110

CONCLUSIONS 111

SUGGESTIONS 11

;


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BIBLIOGRAPHY 118

INTRODUCTION


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INTRODUCTION

N&&"&t& C(/&=

The common minimum programmer of the %o/t0 states, inter=alias, that %o/t0 will

identify public sector companies that ha/e comparati/e ad/antages and support them in their

dri/e to become global giants0 (n pursuance of these objecti/es, the %o/t0 has decided to grant

the enhance autonomy and delegation of powers

The grant of autonomy to the )oard of !ublic +ector *nterprises is specific to the >

enterprises identified by the %o/t0, )H*2, )!"2, H!"2, (", (!"2, T!", %", +#(2, and

.+20

C("! !'t("

(n order to ensure energy supply and security, the company has launched much lateral

backward and forward integration making it an (ntegrated !ower $ajor with interests in1? Hydro !ower

'? "apti/e coal mining

3? il and %as e4ploration

8? !ower Distribution and Trading through its subsidiaries

T!" *lectricity +upply "ompany

2td0 #nd T!" .idyut .yapar igam 2td0

@


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ABOUT NTPC

T!" 2imited is the largest power generating company of (ndia0 # public sector

company, it was incorporated in the year 1>0:A of the total equity shares of the company and the balance 1B0:A is held by 5((+, Domestic

banks, public and others0for shareholding pattern0 Cithin a span of 3' years, T!" as emerged

as a truly national power company, with power generating facilities in all the major regions of

the country

T!"s core business is engineering, constructions of power generating plants0 (t also

pro/ides consultancy in the area of power plant constructions and power generation to

companies in (ndia and abroad0 #s on day the installed capacity of T!" is '>,3>8 $C through

its 1: coal based E'3,3>: $C?, < %as based E3,>:: $C? and 8 -oint /enture E1,8 $C?0

T!" acquired :BA equity of the +#(2 power supply corporation 2td0 E+!+"2?0 This -.

company operates the capti/e power plants of Durgapur E1'B$C?, Rourkela E1'B $C? and)hilai E


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T!" is committed to the , generating power at minimal en/ironmental cost and

preser/ing the ecology in the /icinity of the plants T!" has undertaken massi/e afforestation in

the /icinity of its plants0 !lantation ha/e increase forest area and reduce barren land0 The massi/e

afforestation by T!" in and around its Ramagundam power station E'BB;$C? ha/e

contributed reducing the temperature in the areas by about 3 degree "0 T!" has also taken pro

acti/e steps for in 1>>1, it setup ash utiliFation di/ision to manage efficient use of the ash

produce at its coal stations0 This quality of ash produce is ideal for use in cements, concrete,

cellular concrete, building material0

# 9"enter for power efficiency and en/ironment protections has been establish in T!"

with assistance of &nited +tates agencies for (nternational de/elopment0 E&+#(D?, "enpeep is an

effiency oriented, eco=friendly and eco=nurturing initiati/e= a symbol of T!"s concern towards

en/ironmental protection and continued commitment to sustainable power de/elopment in (ndia 0

#s a responsible corporate citiFen, T!" is making constants efforts to impro/e the

socioeconomic status of the people affected by the its projects0 Through its programmes, the

company endea/ors to impro/e the o/erall socioeconomic status of !roject #ffected !erson0

T!" was among the first !ublic sector enterprises to enter into a memorandum of

&nderstanding E$&? with the %o/ernment in 1>@


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H%-#;=


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5or the construction of T!", the /illages around the company had sacrificed their lands

and they became helpless0 5or those people, the company ga/e a job to a person in e/ery house

and in many aspects, the company had helped the people financially to promote self=

employment0

Ad(t%- %;;&-!

As a responsible corporate organiFation, the company adopted many /illages, built

schools for the workers children, pro/ided drinking water facility with added chlorine, to make

them aware of health, rganiFation conducted medical camps and constructed roads to the

/illages pro/iding transport facility to *mployees to their /illages0

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NTPC VISION

A :ORLD CLASS INTEGRATED PO:ER MAJOR, PO:ERING INDIA?S

GRO:TH :ITH INCREASING GLOBAL PRESENCE6

CORE VALUES

( BUSINESS ETHICS

( CUSTOMER FOCUS

( ORGANI@ATIONAL>PROFESSIONAL PRIDE

( MUTUAL RESPECT>TRUST

( INNOVATION>SPEED

( TOTAL UALITY FOR ECELLENCE

MISSION

DEVELOP AND PROVIDE RELIABLE PO:ER, RELATED PRODUCTS AND

SERVICES AT COMPETITIVE PRICES, INTEGRATING MULTIPLE ENERGY

SOURCES :ITH INNOVATIVE AND ECO3FRIENDLY TECHNOLOGIES AND

CONTRIBUTE TO SOCIETY6

HR VISION

TO ENABLE OUR PEOPLE TO BE A FAMILY OF COMMITTED :ORLD

CLASS PROFESSILNALS, MA*ING NTPC A LEARNING ORGANISATION6.

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COMPANY PROFILE

18


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COMPANY PROFILE

ENTRY INTO HYDRO SECTOR

J T!" has been gi/ing increased thrust to hydro de/elopment for a balanced portfolio for longterm sustainability, 1>'B $C under implementation at 6oldam E@BB $C?, 2oharinag !ala

E;BB $C? and Tapo/an .ishnugad E:'B $C?

J T!" Hydro 2td0 incorporated as a subsidiary company to take up small hydro projects0

!resently, the projects planned for implementation are 2ata Tapo/an E1


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T#! '(/&=

T!", the largest power "ompany in (ndia, was setup in 1>: $C?, :: $C? and 8 power stations in -oint .enturesE1,8 $C?0 The

company has power generating facilities in all major regions of the country0 (t plans to be a


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T!" has gone beyond the thermal power generation0 (t has di/ersified into hydro power, coal

mining, power equipment manufacturing, oil K gas e4ploration, power trading K distribution0

T!" is now in the entire power /alue chain and is poised to become an (ntegrated !ower

$ajor0

T!"Ls share on 31 $ar 'BB@ in the total installed capacity of the country was 1>01A and it

contributed '@0:BA of the total power generation of the country during 'BB


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LOCATION

The ';BB$C Ramagundam super thermal project is located in 6arimnagar district of #ndhra

!radesh south of ri/er %oda/ari0 The project linked to the south %oda/ari coalfield or the

+ingareni "ollieries0 'BB;

CORPORATE OBJECTIVES

10 To add generation capacity with in prescribed time and cost to operate K maintain power

stations at high a/ailability ensuring minimum cost of generation0 (t has planned massi/e growth

to mate itsetf=8B,N$C "ompany0

'0 To maintain the financial soundness of the company by managing the financial operations in

accordance with good commercial utility practices0

30 To function as a responsible corporate citiFen K discharge social responsibility in object of

en/ironment protection K rehabilitation0 The corporation will stri/e to utiliFe the ash produced

as its stations to the ma4imum e4tent possible through production of ash bricks, building

material etc0

80 To adopt appropriate human resource de/elopment policy leading to creation of team of

moti/ated K competent power professionals0 To introduce, assimilate K attain self=sufficiency in

technology, acquire e4pertise n utility management0 !ractices K to disseminate knowledge

essentially as contribution to other constituents of the power sector in the country0

:0 To de/elop search and de/elopment ERK D? for achie/ing impro/ed plant reliability0

;0 To e4pand, the consultancy operations K to participate in /entures aboard0

0 To maintain the financial soundness of the company by managing the = financial operations

in accordance with good commercial utility practices0

1B0 To operate and maintain power stations as high a/ailability ensuring minimum cost of

generation0

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110 To de/elop research and de/elopment ERK D? for achie/ing impro/ed plant reliability0

1'0 To de/elop appropriate commercial policy leading to remunerati/e tariffs in addition,

minimum

INSTALLED CAPACITY

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INSTALLED CAPACITY

AN OVERVIE:

P"(!'t N(. () P"(!'t C(//%%(!d C&&'%t=

+M:

T!" C*D

COAL 15 8,85

GAS9LI. FUEL 07 8,55

TOTAL 7,850

O:NED BY JVC

C(&; 8 54

G&9L%. F$!; 1 1,420

GRAND TOTAL ,84

C&t%! P(!" $d!" JV %t# SAIL

P(!" (%t $d!" JV GAIL FI > MSEB

'B


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PROJECT PROFILE

C(&; B&!d P(!" St&t%(

C(&; B&!d St&t! C(//%%(!d

C&&'%t=

+M:

1. S%-"&$;% Utt&" P"&d!# ,000

. *("& C#&tt%-&"# ,100

8. R&/&-$d&/ Ad#"& P"&d!# ,00

4. F&"&


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1. At& R&&t#& 418

17. A$"&%=& Utt&" P"&d!# 5

12. *&& G$&"&t 45

1. D&d"% Utt&" P"&d!# 217

0. J#&("3G&d#&" G$&"&t 42

1. R&% G&d#% CCPP

*&=&/

. RGPPL M&"&t"& N&t#&9LNG 1,420

T(t&; +JV 044

G"&d T(t&; +C(&; G& JV ,84

P"(!'t $d!" I/;!/!t&t%(

C(&; 9 H=d"( St&t! F$!; Add%t%(&;

C&&'%t= $d!"

I/;!/!t&t%(

+M:

1. *&;-&(

St&-! II +P#&! II

B%#&" C(&; 500

. S%&t +St&-! I +St&-! II C#&tt%-&"# C(&; 120

500

8. B&"# B%#&" C(&; 120

4. B#%;&% +EK. P(!"

P"(!'t JV %t# SAIL

C#&tt%-&"# C(&; 500

5. *("& +St&-! III C#&tt%-&"# C(&; 500

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. F&"& IPGCL

H&"&=&& C(&; 1500

10. V&;;$" +St&-! I

+P#&! I JV %t# TNEB

T&/%;&d$ C(&; 1000

11. N&%&-&" TPP JV

:%t# R&%;&=

B%#&" C(&; 1000

1. B(-&%-&( TPP A&/ C(&; 750

18. *(;d&/ +HEPP H%/&'#&;

P"&d!#

H=d"( 200

14. L(#&"%- P&;& +HEPP Utt&" EMPLOYEE BENEFITS AT NTPC LTD

The following are the !ay scales , D# K other allowance being paying paid to employees ofT!" to their employees which are subject to re/ision we0f01010'BB>


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*=< E#? 1>:BB = ':;BB

*=@ 'B:BB = ';3BB

*=> '3


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C=11 >3BB= 1::>B

+% 1BBBB 1;BBB

II. THE RATE OF INCREMENT

+(0o0 %rade Rate of (ncrement EA?10 C% '0:'0 C1 =C< 30B30 +uper/isors O C+=C 11 30:80 *4ecuti/es O +election 80B

%rade

II.8 DEARNESS ALLO:ANCE

!eriodicity of Re/ision quarterly7 w0e0f0

1st #pril, 1st -uly, 1st ctober K

1st-anuary0

!eriod to which +eptember= o/ember, December

Re/ision relates 5ebruary0 $arch=$ay, -une=#ugust0

The percentage eutralisation would be 1BBA for all employees0

The D0# would be based on the percentage increase in the quarterly a/erage of the #("!(

for the quarters ending 5ebruary, $ay, #ugust and o/ember respecti/ely o/er0 #("!(

1;BP1BB?0

II.4 DATE OF INCREMENT

EMPLOYEES APPOINTED9

PROMOTED BET:EEN STANDARD DATE

':


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1st -anuary and 31st $arch 1st -anuary

1st #pril and 3Bth -une 1st #pril

1st -uly and 3Bth +eptember 1st -uly

1st ctober and 31st December 1st ctober

Q +ubject to pro/isions of pay fi4ation rules0

((0: !R#"T("(% #22C#"* 5R "$!#Y D"TR+ is Ea? ':A of

)asic !ay with effect from 10@0>> This will not be counted for any other purposes0

II CITY COMPENSATORY ALLO:ANCE

""# will be paid as per the following rates, w0e0f0 B10B@0>< based on the re/ised

classification of cities as announced by the %o/ernment of (ndia E#mount = Rs0 !er

month?7

BP9M(t#

+RSA31 C%t= A C%t= B31 C%t= B3 C%t=

8BB1 =:':B 1': >: ;: 3:

:':1 =;8>> 'BB 10:B 1BB ;:

;:BB = abo/e 3BB '8B 13B 1'B

FIELD9SPECIAL COMPENSATORY ALLO:ANCE

5"#O+"# is payable to the eligible employees posted at places where "ity

"ompensatory #llowance is not payable0

';


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S, P;&'! () P(t%- R&t! +!" /(t#

# G"!! )%!;d P"(!'t

Ei? )efore award of $ain !lant order 'BA of )asic !ay

Eii? 5rom ero Date Eon award of $ain !lantorder K (mplementation of project(ncenti/e

1:A of )asic !ay

Eiii? 5rom the date of "ommercial operation of1stunit Egeneration (ncenti/e becomesapplicable?

:A of )asic !ay

)0 *4isting +tations E*4cluding those situatedin cities where ""# is payable?

:A of )asic !ay

11 .2 HOUSE RENT

#0 House Rent #llowanceHouse Rent #llowance is payable to the eligible employees who are not pro/ided with

residential accommodation b the company at places where the company has its projectsO

unitsOoffices0

CLASS OF CITIES9 RATE OF HRA

PLACES +PERCENTAGE OF PAY

L# 1L class of "itiesEDelhi, $umbai, 6olkata 3B

K "hennai?

ther L#L "lass cities0 ':L)1L, )'L, K S"L 1:class cities

&nclassified places 1B

'


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11.10 REIMBURSEMENT OF MONTHLY CONVEYANCE EPENDITURE

*mployees in the regular pay scales of the "ompany including such deputationists who

ha/e been taken against the posts in the regular pay scales of the "ompany0

R&t!

TYPE OF VEHICLE CATEGORYREIMBURSEMENT LIMIT

+RS. PER MONTH

**"&T(.*+

i? "#R E*


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$TR"Y"2*Eii? $!*D C1 = C< '3:

II 11 TRANSPORT SUBSIDY

*mployees not in receipt of monthly reimbursement of con/eyance e4penditure are paid

transport subsidy as under

C&t!-("= () !/;(=!! P!" /(t#

*4ecuti/es Rs03BBO=

+election %rade Rs03BBO=

+uper/isorsOC@ K abo/e Rs0'@BO=

Corkmen EC ( = i.


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E)?+*2*"T( %R#D* Rs0


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compared to Rs0 ;@,;8< million during the year 'BB;=B


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#? "apacity #ddition

1 !lans to be a :B,BBB $C plus "ompany by 'B1' and


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: $& signed amongst T!", R(2, +#(2, $D" and "(2 for sourcing coking coal and

thermal coal from abroad

; *4ploration acti/ity in *2!=. petroleum block in #runachal !radesh in full

swing

"? +trategic (nitiati/es

1 )usiness "ollaboration and +hare HolderLs #greement signed with %o/t0 of 6erala and

T*26 to acquire around 880;A stake of T*26

' $& signed with )harat 5orge 2imited for setting up a new facility to take up

manufacture of )alance of !lant equipments, castings, forgings, fittings etc

3 -.# signed with )H*2 for taking up acti/ities related to carrying out *!" and

manufacturing of equipments

D? %oing %lobal

1 $o& signed with 5ederal %o/t0 of igeria for energy cooperation between the two

nations

' +ite identified for '4':B $C coal based plant in +ri 2anka

3 Two consultancy orders recei/ed from *

ENERGY TECHNOLOGIES +ET CENTRE

+igned $o& with )#R", $umbai for the de/elopment of #utomated )oiler Tube (nspection

+ystem for coal based thermal power plants

*ntered into an $o& with Hea/y Cater )oard, $umbai for the transfer of #mmonia )ased 5lue

%as "onditioning Technology to T!", on non=e4clusi/e basis, for its use in T!" power

stations

GREEN PO:ER

33


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1 T!" created7 a green wealth of more than 1@03< million trees till $arch 'BB@

' #ll T!" stations ha/e been certified with (+ 18BB1 and H+#+ 1@BB1 by

international and national certifying agencies

3 During 'BB


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' Rural electrification work progressing satisfactorily under R%%.Y in ; +tates and one

&nion Territory co/ering appro40 8B,BBB /illages

C((% #""2#D*+

1 811Lhlargest company in the world in the 5orbes 2ist of CorldLs 'BBB 2argest "ompanies

for the year 'BB8L hrank in 'BB;0

' o 1 (ndependent !ower !roducer "ompany in #sia, 'BB< = M!latts Top ':B %lobal

*nergy "ompany 'BB< +ur/eyM0

3 ational #wards for $eritorious !erformance during 'BB;=B


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13 +#!=#"* #ward for "ustomer *4cellence for )est (mplementation in &tilities awarded

in 'BB


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the country0 The Ramagundam +tation achie/ed a record generation of 1;,3310


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&nit=.( ctober 1>@>

&nit=.(( +eptember 'BB8

+ource of "oal +ingareni "ollieries K+*"2

Cater +ource +riram +agar

"oal Transportation $erry=go=round system, (ndian Railways

)eneficiary +tates #ndhra !radesh, Tamil adu,

6aranataka, 6erala,

!ondicherry K %oa

RSTPS ORGANISTION > FUNCTIONS

The project organiFation, headed by a %eneral $anager, entrusted with the total

responsibility for implementation of a;1 aspects Xf the project in accordance with the master

network schedule and the operation maintenance Xf running units in a most cost effecti/e

manner0

10project organiFation

The two e4ecuti/eLs functions under this are Mci/il constructionM and Mequipment

erectionM0 The Sci/il construction takes care of a81 the acti/ities starting from sur/ey and soil

in/estigation, site le/eling,, infrastructure de/elopment, township construction etc0 The

equipment erection wing carries out of the mechanical and=electrical and control and instrument

acti/ities concerning, erection and commission of plant and equipment0

3@


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'0 peration and maintenance

This department looks after the operation of commissioned units and the short, long=term

maintenance works0 K$ includes main plant operation mechanical maintenance, electrical

maintenance, and control instrumentation maintenance7 fuel 0handling EBK$? chemistry and coal

transport E$%R? groups0

30 $aterials $anagement, !ersonnel, and #dministration

This group under takes the control of bulk structure construction materials like steel,

cement, diesel, and fuel oil apart from the procurements, storages and control of consumables,

equipments and spare parts

ORGANI@ATION CHART

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8B


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81


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COMPENSATION

"ompensation

INTRODUCTION

8'


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rganiFations e4pect efficient performance from their employees in order to contribute to

the attainment of the indi/idual goals0 rganiFations reward their employees who contributed to

the achie/ement of organiFational goals0

Rewards

R!&"d &d M(t%&t%(

TERMINOLOGY AND CONCEPTS

Chat is wage and salary administration Cage salary administration is essentially the

application of a systematic approach to the problem of ensuring that employees are paid in a

logical, equitable and fair manner0

83

*ffort !erformance rganisational%oals

(ndi/idual%oals


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Cage Cage and salary are often discussed in loose sense, as they are used interchangeably0

)ut (2 defined the term wage as Mthe remuneration paid by the employer for the ser/ices of

hourly, daily, weekly and fortnightly employees0M (t also means that remuneration paid to

production and maintenance or blue collar employees0

+alary The term salary is defined as the remuneration paid to the clerical and managerial

personnel employed on monthly or annual basis0

This distinction between wage and salary does not seem to be /alid in these days of human

resources approach where all employees are treated as human resources and are /iewed at par0

Hence, these two terms can be used interchangeably0 #s such, the term wage andOor salary can be

defined as the direct remuneration paid to an employee compensating his ser/ices to an

organisation0 +alary is also known as basic pay0

T#! N!!d3&!d M%%/$/ :&-!

(t is the amount of remuneration fi4ed on the basis of norms accepted at the 1:th session of

the (ndian 2abour "onference held at ew Delhi in -uly, 1>:


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needs of industrial workers0 The norms laid down by it are Ei? in calculating the minimum wage,

the standard working class family should be taken to comprise three consumption units for one

earner, the earnings of women, children and adolescents beings disregarded7 Eii? minimum food

requirements should be calculated on the basis of a set in take of calories as recommended by Dr0

#ykroyd for an a/erage (ndian adult of moderate acti/ity7 Eiii? clothing requirements should be

estimated on the basis of per capita consumption of 1@ yards per annum which would gi/e for

the a/erage workerLs family of four a total of


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employees act only to gross e4ternal inequities7 E/? employee comparisons of pay are uninfluenced

by le/els of aspirations and pay history7 and E/i? employees compare the pay of different

employees with their skill, knowledge, performance, etc0

(!'t%! () :&-! &d S&;&"= Ad/%%t"&t%(

The objecti/e of wage and salary administration are numerous and sometimes conflict with

each other0 The important among them are E+ee *4hibit ;01?0

OBJECTIVES OF :AGE AND SALARY MANAGEMENT

#cquire Nualified !ersonnel "ompensation needs to be high enough to attract

applicants0 !ay le/els must respond to supply and demand of workers in the labour

market since employers compete for workers0 !remium wages are sometimesneeded to attract applicants who are already working for others0

Retain !resent *mployees*mployees may quit when compensation le/els are not

competiti/e resulting in higher turno/er0

*nsure *quity"ompensation management stri/es for internal and e4ternal equity,

(nternal equity requires that pay be related to the relati/e worth of jobs, so that

similarjobs get similar pay0 *4ternal equity means paying workers what

comparable workers at other firms in the labor market pay0

Reward Desired )eha/iour !ay should reinforce desired beha/iours and act as an

incenti/e for those beha/iours to occur in the future0 *ffecti/e compensation plans

reward performance, loyalty e4perience, responsibilities, and other beha/iours0

"ontrol "osts# rational compensation system helps the organiFation obtain and

retain workers at a reasonable cost0 Cithout effecti/e compensation management,

workers could be o/er or under payed0 "omply with 2egal Regulations # sound

wage and salary system considers the legal challengers imposed by go/ernment

and ensures the employerLs compliance0

5ecilitate &nderstandingThe compensation management system should be easily

understood by human resource specialists, operating managers, and employees0

8;


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5urther#dministrati/e *fficiency Cage and salary programs should be designed

to be managed efficiently, making optimal use of the human resource information

system, although this objects should be a secondary consideration compared with

other objecti/es0

C(/!&t%(

*arnings*arnings are the total amount of remuneration recei/ed by an employee during a

gi/en period0 These include salary Epay?, dearness allowance, house rent allowance, city

compensatory allowance, other allowances, o/ertime payments etc0

ominal Cage (t is the wage paid or recei/ed in monetary terms0 (t is also known as money

wage0

8


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Real CageReal wage is the amount of wage arri/ed after discounting nominal wage by the

li/ing cost0 (t represents the purchasing power of money wage0

Take Home +alary (t is the amount of salary left to the employee after making authorised

deductions like contribution to the pro/ident fund, life insurance premium, income ta4, and other

charges0

$inimum Cage(t is the amount of remuneration which could meet the Mnormal needs of the

a/erage employee regarded as a human being li/ing in a ci/ilised society0M (t is defined as the

amount or remuneration, Mwhich may be sufficient to enable a worker to li/e in reasonable

comfort, ha/ing regard to all obligations to which an a/erage worker would ordinarily be subjected

to0M

+tatutory $inimum Cage (t is the amount of remuneration fi4ed according to the pro/isions

of the,=Cinimum Cages #ct, 1>8@0

T#! N!!d3&!d M%%/$/ :&-!

(t is the amount of remuneration fi4ed on the basis of norms accepted at the 1:th session of

the (ndian 2abour "onference held at ew Delhi in -uly, 1>:


49/113

modern ci/ilised society is entitled to e4pect, when the economy of the country is sufficiently

ad/anced and the employer is able to meet the e4panding aspirations of his workers0

The 5air Cages 5air wages are equal to that recei/ed by workers performing work of equal

skill, difficulty or unpleasantness0

E1? To #cquire Nualified "ompetent !ersonnel"andidates, decide upon their career in a

particular organisation mostly on the basis of the amount of remuneration the organisation offers0

Nualified and competent people join the best=paid organisations0 #s such, the organisations

should aim at payment of salaries at that le/el, where they can attract competent and qualified

people0

E'? To Retain the !resent *mployees(f the salary le/el does not compare fa/ourably with

that of other similar organisations, employees quit the present one and join other organisations0

The organisation must keep the wage le/els at the competiti/e le/el, in order to pre/ent such

quits0

E3? To +ecure (nternal and *4ternal *quity(nternal equity does mean payment of similar

wages for similar jobs within the organisation0 *4ternal equity implies payment of similar wages

to similar jobs in comparable organisations0

E8? To *nsure Desired )eha/iour %ood rewards reinforce desired beha/iour like

performance, loyalty, accepting new responsibilities and changes etc0

E:? To 6eep 2ab our and #dministrati/e "osts in line with the ability of the organiFation to pay0

E;? To !rotect in !ublic as !rogressi/e *mployers and to comply with the wage legislations0

E


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E1B? To !romote rganiFation feasibility0

+ystems to #chie/e the bjecti/es

The abo/e=mentioned objecti/es are achie/ed by the use of the following systems0

10 -ob */aluation#ll jobs will be analyFed and graded to establish the pattern of internal

relationships0 (t is the process of determining relati/e worth of jobs0 (t includes selecting suitable

job e/aluation techniques, classifying jobs into /arious categories and determining relati/e /alue

of jobs in /arious categories0

'0 Cage and +alary Ranges/erall salary range for all the jobs in an organisation is

arranged0 *ach job grade will be assigned a salary range0 These indi/idual salary ranges will be

fitted into an o/erall range0

30 Cage and +alary #djustments/erall salary grades of the organisation may be adjusted

based on the data and information collected about the salary le/els of similar organisations0

(ndi/idual salary le/el may also be adjusted based on the performance of the indi/idual

employees0

"%'%;! () :&-! &d S&;&"= Ad/%%t"&t%(

There are se/eral principles of wage and salary plans, policies and practices0 The important

among them are

10 Cage and salary plans and policies should be sufficiently fle4ible0

:B


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'0 -ob e/aluation must be done scientifically0

30 Cage and salary administration plans must always be consistent with o/erall

organisational plans and programmes080 Cage and salary administration plans and programmes should be in conformity with the

social and economic objecti/es of the country like attainment of equality in income distribution

and controlling inflationary trends0

:0 Cage and salary administration plans and programmes should be responsi/e to the

changing local and national conditions0

;0 These plans should simplify and e4pedite other administrati/e processes0,L

T#! E;!/!t () :&-! &d S&;&"= S=t!/

Cage and salary system should ha/e relationship with the performance, satisfaction and

attainment of goals of an indi/idual0 Henderson identified the following elements of wage and

salary system00

10 (dentifying the a/ailable salary opportunities, their costs, estimating the worth of its

members of these salary opportunities and communicating them to employees0

'0 Relating salary to needs and goals0

30 De/eloping quality, quantity and time standards relating to work and goals0

80 Determining the effort necessary to achie/e standards0

:0 $easuring the actual performance0

;0 "omparing the performance with the salary recei/ed0

0 5inding out the dissatisfaction arising from unfulfilled needs and unattained goals0

1B0 #djusting the salary le/els accordingly with a /iew to enabling the employees to reach

unreached goals and fulfil the unfulfilled needs

:AGE DIFFERENTIALS

Cage differentials among workers working in the same unit, among different units, occupations,

regions and the like are common features of labour markets in /arious countries0 (nter=personal

:1


52/113

wage differentials are mainly due to /ariations in personal characteristics like se4, age, skill,

knowledge etc0, of employees who work in the same unit and are in the same or similar

occupations0 (nter=firm or inter=unit wage differentials reflect relati/e wage le/els of workers in

different units in the same or similar occupation0 These differentials are mostly because of

/arying abilities of the firms to pay wages0 (nter=occupational wage differentials are due to

/arying requirements of physique skills, endurance, knowledge etc0, /arying demand and supply

conditions and the like0 (nter=area differentials are mainly due to /arying demand and supply

factors, li/ing costs, abilities of employers to pay and the like0

:&-! D%))!"!t%&; &d E'((/= F$'t%(

Cage differentials perform importants economic, functions like labour producti/ity,

attracting the people to different jobs0 +ince most of the workers are mobile with a /iew toma4imising their earnings, wage differentials reflect in /ariations in producti/ity, efficiency of

management, ma4imum utilisation of human force etc0 #ttracting efficient workers,

ma4imisation of employee commitment, de/elopment of skills, knowledge, utilisation of

human resources, ma4imisation of producti/ity can be fulfilled through wage differentials as

the latter determines the direct allocation of manpower among different units, occupations and

regions so that national production can be ma4imised0 Thus wage differentials pro/ide an

incenti/e for better allocation of human force, labour mobility among different regions and the

like0

Cage differentials play pi/otal role in a planned economy in the regulation of wages and

de/elopment of national wage policy by allocating the skilled human force on priority basis0

De/elopment of new skills, knowledge etc0, is an essential part of human resource

de/elopment0 +hortage of technical and skilled personnel is not only a problem for industries

but it creates bottlenecks in the attainment of planned goals0 Thus wage differentials, to certairi

e4tent, are desirable from the /iew point of national interest0 #s such, they probably become an

:'


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essential part of national wage policy0 "omplete uniform national wage policy is impracticable

and undesirable0

A"! :&-! D%))!"!t%&; J$t%)%!d

Cage differentials on the basis of occupations, units and areas Ewhen real wages are taken

into account? can be justified on the basis of equal pay for equal work among workers0 They

are also justified in /iew of /arying conditions of demand and supply and /aried job

requirements like skill, knowledge, aptitude, ability, e4perience etc0 )ut the object of the

%o/ernment is to minimise income inequalities and inequalities in the distribution of wealth0

Thus, wage differentials are not desirable in a socialistic pattern of society0 Howe/er,

formulating uniform wage policy ignoring differences in indi/idual skills, knowledge etc0,

units ability to pay, /arying li/ing costs in different regions, /arying demand and supply

conditions, differences in occupations etc0, is practically not possible0 Hence, a compromise

between uniform wage policy and wage differentials has to be de/eloped in /iew of the

principles of socialistic pattern of society0

(nter=personal, inter=unit, inter occupational wage differentials are more predominant in

unorganised sector of (ndian economy0 )ut e/en in organised sector and public sector units,

wage differentials are quite common0 )ut the tendency appears to be towards minimisation and

regularisation of personal wage differentials and to narrow down the gap between ma4imumand minimum wage in an unit0 Cage differentials on the basis of se4 are howe/er common

mainly in unorganised sector of the economy0 (t is obser/ed that certain industrial tribunals had

awarded different wages for male and female workers not on the ground that the work done is

unequal but on the grounds that the wages of female employees ha/e always been somewhat

lower than those of male workers, that women workers support a smaller family and that the cost

of employing women workers is higher0 Howe/er, it is felt that further steps should be taken in

order to minimise wage differentials not only in unorganised sector but also in organised and

public sector undertakings0

THE MECHANISM OF :AGE AND SALARY ADMINISTRATION

:3


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+alary is structured, fi4ed, adjusted on the basis of se/eral systems0 The important among them are

E1? Cage Theories7 E'? -ob */aluation7 E3? CageO+alary +ur/ey7 E8? .arious 5actors #ffecting

Cage and +alary 2e/els0

E1? wage Theories

There are a number of theories on wages0 (mportant among them are discussed hereunderEi? The -ust Cage TheoryThis was the first theory on wages ad/ocated during medie/al

period0 The essence of this theory is that the worker should be paid on the le/el of maintaining

himself and his family0

Eii? +ubsistence Theory #ccording to Ricardo Mthe labourers are paid to enable them to

subsist and perpetuate the race without increase or diminution0M

:8

!&2("(*+

)-*"T(.*

"$!*+#T( T*"H(N&*+ "$!*+#T(

(nternal

consistency

-ob -ob -ob -obanalysis descriptions e/aluation structure

$arket $arket !olicy !aydefinitions sur/eys lines structures

*4ternalcom etiti/en

*mployee

contributions

ature ofadministration

+eniority !erformance (ncenti/e (ncenti/e based based guidelines programs

!lanning )udgeting "ommunicating */aluating

*fficiency*quity"ompliance


55/113

Eiii? +tandard of 2i/ing Theory6arl $ar4 pointed out that the MCage of labour is

determilaed by a traditional standard of li/ing, which, in turn, is determined by the mode of

production of the country concerned0M

Ei/? The Cage 5und Theory A''("d%- t( J.S. M%;;, t#! &-! &"! d!t!"/%!d ( t#!

&% () t#! "!;&t%(#% !t!! t#! &/($t () )$d &;;('&t!d )(" t#! $"(! () &-!

&=/!t &d $/!" () ("

:&-! P A/($t () )$d &;;('&t!d )(" &-! &=/!t

N$/!" () ("

respecti/ely out of the production /alue0

The amount of wages P !roduction /alue = ERent Z !rofits Z (nterest?0

E/i? $arginal !roducti/ity Theory#ccording to -0)0 "lark, the wages are determined on

the basis of marginal contributions of the worker to the production0 The employer stops

employing further workers where the contributions of the most recently employed worker are

equal to his wages0

E/ii? The )argaining Theory of Cages #ccording to this theory the wages and other terms

of employment are determined on the basis of the relati/e bargaining strength of the two parties,=

/iF0, the employer and the employees0 Cebbs stated that, Mthe higgling of the market which under

a system of free competition0 and indi/idual bargaining determines the conditions of

employment0I

::


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E/iii? "ontribution of )eha/ioural +cientists to the Cage Theories #ccording to

beha/ioural scientists, wages are determined on the basis of se/eral factors like the siFe, nature,

prestige of the organisation, strength of the union, social norms, traditions, customs, prestige of

certain jobs in terms of authority, responsibility and status, le/el of job satisfaction, morale,

desired lines of employee beha/iour and le/el of performance0

Thus, the first fi/e wage theories influenced the wage determination until 1>th century0 )ut

the influence of these theories had been reduced to a greater e4tent during the 'Bth century0 The

bargaining theory of wages and the beha/iour theory of wages influence much the determination

during the presgnt century0 The modern and important system of salary administration is job

e/aluation0[L

+ J( E&;$&t%(

#s e4plained earlier, job e/aluation determines the relati/e worth or money /alue of jobs0

(t may be defined as a process of determining the relati/e worth of jobs, ranking and grading

them by comparing the duties, responsibilities, requirements like skill, knowledge of a job with

other jobs, with a /iew to fi4ing compensation payable to concerned job holder0 -obs can be

e/aluated on the basis of /arious methodsOtechniques0 These methods are classified into

con/entional and non=con/entional0 "on/entional methods are classified into quantitati/e and

non=quantitati/e0 o quantitati/e methods include ranking method and job classification and

grading methods0 Nuantitati/e techniques include points rating method and the point factor or

factor comparison method0 o con/entional techniques of job e/aluation include time=span of

discretion theory, decision=banding,

direct consensus method, guide chart profile method, problem=sol/ing compensable factor,

guideline method, ur wick or profile method and profile method0 $ost of the non=con/entional

techniques are de/eloped by management consultants in helping their client companies0 The

adaptability and usage of the job e/aluation is increasing apart from /arious theoretical

concepts0 The job e/aluation contributes to the rational wage payment, rational wage structure

and helps to stabilise, control and forecast cost of human resources0 Thus, job e/aluation is a

:;


57/113

part of pay fi4ation machinery along with other concepts like wage theories, seniority,

performance, career progression, wage sur/ey and other factors influencing wage

determination0

E3? :&-!9S&;&"= S$"!=

+ur/ey is an in/estigation of current position0 +alary sur/ey is one of the techniques useful

in salary administration0 The purpose of this sur/ey is to collect competiti/e salary data

regarding /arious jobs in the labour market and pro/ide the same for salary administration0 #

salary sur/ey enables an organisation to find out what other organisations pay for specific jobs

and the basis for payment of the e4isting salary le/el0 The going rate or the market rate in that

particular region influences the wage rate of the organisation0 $ostly the organisations are

forced to pay the wage equi/alent to the going rate0

E8? F&'t(" A))!'t%- :&-!9S&;&"= L!!;

%enerally, a large number of factors influence the salary le/els in an organisation0

+ignificant among them are Ei? Remuneration in "omparable (ndustries7 Eii? 5irmLs #bility to

!ay7 Eiii? "ost of 2i/ing Ei/? !roducti/ity7 E/? &nion !ressure and +trategies7 and E/i?

%o/ernment 2egislations0

Remune= 5irms "ost !roducti/ity &nion %o/ernmentration in #bility to of !ressure 2egislations"omparable !ay 2i/ing and(ndustries +trategies

:


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F&'t(" A))!'t%- S&;&"= L!!;

F&'t(" A))!'t%- :&-!9S&;&"= R&t!

&nions pressurise management through their collecti/e bargaining strategies0 political tactics and

by organising strikes etc0 Trade unions influence may be on the grounds of wages in comparable

industries, firmLs financial position, rising li/ing cost, go/ernment regulations0 etc0 (t may be

noted here that the unions may ha/e the wage raised particularly in those industries where the

wage le/el is below that of other comparable industries0M

E/i? %o/ernment 2egislations %o/ernment legislations influence wage determination0

The two important legislations which affect wage fi4ation are the !ayment of Cages #ct0 1>3;

and the $inimum Cages #ct, 1>8@0 The important pro/isions of the !ayment of Cages #ct,

1>3; are ensuring proper payment of wages and a/oiding all malpractices like non=payment,

under payment, delayed and irregular payment, payment in kind and undermeasurement of work0

The #ct co/ers all employees drawing the wage upto Rs01,BBB per month0 The #ct stipulates that

:@

(nternational*conomic5actors and+alary 2e/els

Regional 2ocal 2e/el rganisations 2e/el +ocio=economic !olicy

ational 2e/el +ocio= 5actors and !roducti/ity,*conomic 5actors, *conomic CageO+alary +alary2egal 5actors, 5actors Rates&nions etc0 RatesCageO+alary

Rates

+upply ofHuman Resources

*4change

Demand forHuman Resources


59/113

the organisations with less than hundred workers should pay the wage by se/enth and the

organisations with more than 1BB employees should pay by tenth of ne4t month0

The #ct also stipulates time for payment of dues to the discharged employees0 &nder the

#ct, fines can be le/ied but after due notice to the employees and the fine deductions are

restricted to 1O 3'nd of the wage0

The important pro/isions of the $inimum Cages #ct, 1>8@ are The #ct seeks to protect

the workers from underpayment of wages for their efforts0 (t presented the guidelines for the

fi4ation of minimum wages which is just sufficient to meet the basic needs of workers and to

keep a manLs Sbody and soulL together0

+tatutory minimum wage is determined according to the procedure prescribed by the

rele/ant pro/isions of the #ct0 The #ct pro/ides for fi4ing of Ei? $inimum wage in certain

employments7 Eii? $inimum time rate7 Eiii? $inimum piece rate7 Ei/? %uaranteed time rate7 E/?

/ertime rate7 and E/i? )asic pay and D0#0 The #ct also pro/ides for re/isions of minimum

wage at fi4ed inter/als00 CagesOsalary managem ent process is presented in

5. &-! F%K&t%( It%t$t%( % Id%&

Cages are fi4ed by the following institutions in (ndia0 They are Ei? "ollecti/e )argaining

and #djudication7 Eii? Cage )oards7 and Eiii? !ay "ommissions0

Ei? "ollecti/e )argaining and #djudication "ollecti/e bargaining is a procedure in which

compromise is reached through balancing of opposed strengths0 (t is a means through which

employee problems relating to /arious issues including wages are settled0 (f these problems are

not settled through collecti/e bargaining, they may be settled through /oluntary arbitration or

adjudication0 The awards gi/en or reached by or through the arbitrator or adjudicator or

:>


60/113

collecti/e bargaining agreements from the basis for fi4ing wages in /arious organisations0

Eii? Cage )oardsThis is one the important institutions set=up by the %o/ernment of (ndia

for fi4ation and re/ision of wages0 +eparate wage boards are set=up for separate industries0

%o/ernment of (ndia started instituting Cage )oards in accordance with the recommendations of

+econd 5i/e

Year !lan, which were reiterated by the Third 5i/e Year !lan0 Cage )oards are not go/erned byany legislation but are appointed on ad=hoc basis by the %o/ernment )usiness

B$%! F%"/? R!&"d % G(!//!t

P(;%'= > :&-! A%;%t= t( (t#!" &-! R!-$;&t%( >

St"&t!-= T#!("%! P&= O"-&%&t%( S$"!= L&

:&-!9S&;&"=

L!!; &d

St"$'t$"!

J( P"(d$'t%%t= U%( P"!$"! C(t ()

E&;$&t%( L%%-

CageO+alary $anagement !rocess

*ach Cage )oard consists of one neutral "hairman, two independent members and two or

three representati/es of workers and management each0 The Cage )oards ha/e to study /arious

factors before making its recommendations0 The recommendations of the Cage )oard are first

referred to the %o/ernment for its acceptance0 The %o/ernment may accept with or without

modification or reject the recommendations of the Cage )oard0 The recommendations accepted

by the %o/ernment are enforceable by the parties concerned0

;B

$anagementsReward!olicy

(nternal*quity

*4ternal*quity


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The Cage )oards take the following factors into consideration for fi4ing or re/ising the

wages in /arious industries

E1? -ob e/aluation0

E'? Cage rates for similar jobs incomparable industries0

E3? *mployees producti/ity0

E8? 5irms ability to pay0

E:? .arious wage legislations0

E;? *4isting le/el of wage differentials and their desirability0

E


62/113

HUMAN RESOURCES AT NTPC

P(!"%- Id%& G"(t# T#"($-# !(;!

T!" belie/es in achie/ing organiFational e4cellence through Human Resources and follows

M!eople 5irstM approach to le/erage the potential of its '3,:BB employees to fulfill its business

plans0 Human Resources 5unction has formulated an integrated HR strategy which rests on four

building blocks of HR /iF0 "ompetence building, "ommitment building, "ulture building and

;'

*mployeeDe/elopment

*mployee)enefits

*mployee+er/ices

TrainingandDe/elo me

*mployeeRelationsO(ndustrialRelations

!ublicRelation

HR

+H!&d


63/113

+ystems building0 #ll HR initiati/es are undertaken within this broad framework to actualiFe the

HR .ision of Menabling the employees to be a family of committed world class professionals

making T!" a learning organiFation0

To induct talent and groom them into a dedicated cadre of power professionals M*4ecuti/e

TraineeM +cheme was introduced in the year 1>


64/113

creati/ity and inno/ation, Nuality "ircles ha/e been set up in /arious unitsOoff ices in T!"0

)esides a management journal called 9HoriFonI is published quarterly to enable employees to

share their ideas and e4periences across the organiFation0

Demonstrating its high concern for people, T!" has de/eloped strong employee welfare, health

K well=being and social security systems leading to high le/el of commitment0 T!" offers best

quality=of=life through beautiful townships with all amenities such as educational, medical and

recreational opportunities for employees and their family members0 The moti/ation to perform

and e4cel is further enhanced through a comprehensi/e T!" Rewards and Recognition system0

(n order to institutionaliFe a strong "ulture based on .alues a number of initiati/es are taken to

actualiFe the .ision and "ore .alues E)"$(T? across the company0 # culture of celebrating

achie/ements and a strong focus on performance are a way of life in T!"0

T!" has institutionaliFed MDe/elopment "entersM in the company to systematically diagnose

the current and potential competency requirements of the employees with the objecti/e of

enhancing their de/elopment in a planned manner0 These "enters gi/e a good insight to the

employees about their strengths and weaknesses, the gaps in their competencies which they can

bridge through suitable support from company0 Due to inno/ati/e people management practices

there is a high le/el of pride and commitment amongst employees as reflected in the /arious

e4ternal sur/eys including M%reat !laces to Cork for in (ndiaM in which T!" was rated third

%reat !lace to work for in the country in 'BB:

1 H!&d, HR

R(;!

De/elop, manage and impro/e HR$ processes at the unit

1 $anage the o/erall HR functions to realiFe the company and HR /ision at the le/el

;8


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' (mplement corporate HR policies and initiati/es at the unit !lan and pay ad/isory role in

the performance appraisal and promotions processes

3 "oordinate the functioning of the /arious HR departments E*D, *+, *R, *) etc ? to

ensure seamless, efficient and timely HR ser/ices deli/ery to the employees

8 /ersee the employee welfare facilities

: $anage training and de/elopment of employees at the station

; +trengthen relationships between employees at the station

< *nsure a healthy work en/ironment at the station

@ !lan manpower resource requirement Eincluding redeployment, reskilling and

multiskilling ? for optimal use of human resources with regional and corporate HR for

policy implementation and $(+ reporting

> !ro/ide inputs to the HR !olicy department during the policy formulation stage

1B 2iaison with local administration0 %o/ernment agencies and manage e4ternal

en/ironment

Q5unctional competence requirement7

1 # wariness of T!" rules and policies in all aspects of HR

' "ompetence to assess potential in employees to discharge the ad/isory role in promotion

process

3 # wariness of contemporary management thoughts regarding the HR concepts and

;:


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practices

8 "on/ersant with labor laws and working of local administration

: "ounseling coaching and communication skills

Q "ross functional competence requirement7

1 )road understanding if line functions and affiliate operations of power plant

' &nderstanding of 5inance0 (T0 Township, #dministration and "ontracts

H!&d, E/;(=!! B!!)%t

R(;!

1 $anage the o/erall corporate policy implementation on aspects of HR

E*mployee )enefits? at the &nit

;;


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' $anage the promotion and transfer process for employees

3 !lay an ad/isory role in the promotion committee Efor non e4ecuti/es?

8 $anage the time office Elea/e, attendance processes?

: $anage the payment of /arious ad/ances to employees

; $anage the joiningO recruitment and separation process for new employees and

employees joiningOrecruitment and separating from other locations

< "ompliance of policies relating to reser/ation policies

@ "oordinate with regional and corporate HR E*)? groups

> "oordinate with other HR groups at station for seamless deli/ery of HR ser/ices to

employees

1B !ro/ide inputs to the HR !olicy department during the policy formulation stage

5unctional competence requirement

11 #wareness of T!" rules and policies regarding HR E*)?

1' "ompetence to assess potential in employees to discharge the ad/isory role in promotion

process for non=e4ecuti/es

13 #wareness of contemporary management thoughts regarding the HR concepts and

practices

18 "ounseling, coaching and communication skills

1: "on/ersant with labor laws

o "ross functional competence requirement

6nowledge of other HR functions like !ublic Relations, *mployee RelationsO(ndustrial

Relations, *mployee +er/ices and *mployee De/elopment

)road understanding of line functions J &nderstanding of 5inance and (T

H!&d, E/;(=!! S!"%'!9E/;(=!! :!;)&"!

1 R(;!

' $anage the o/erall corporate policy implementation on aspects of 1=1R E*mployee

;


68/113

+er/ices? at the &nit3 $anage implementation of welfare policies for employees8 $anage processing of employee reimbursements: $anage administrati/e acti/ities like .(! /isits, housekeeping, tra/el and security

; $anage relation with e4ternal entities like localOstateOcentral go/ernment

agencies, electricity boards etc0< "oordinate with regional and corporate HR E*+? groups@ "oordinate with other HR groups at station for seamless deli/ery

of HR ser/ices to employees> !ro/ide inputs to the HR !olicy department during the policy

formulation stage1B "oordinate with local welfare bodies for community de/elopment

1 5unctional competence requirement

' #wareness of T!" rules and policiesregarding HR E*mployee +en=ices?3 6nowledge of labor laws and contract

labor statutes8 #wareness of contemporary management thoughts regarding

the HR concepts and practices: "ounseling, coaching and communication skills

1 "ross functional competence requirement' 6nowledge of other HR functions like !ublic Relations, *mployee RelationsO(ndustrial

Relations, *mployee )enefits and *mployee De/elopment3 )road understanding of line functions

8 &nderstanding of 5inance and (T

H!&d, T"&%%- &d D!!;(/!t

1 R(;!

"onduct training needs assessment and identify training needs in coordinationwith !$(

;@


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8 $anage training and de/elopment of employees at the S*mployee De/elopment"entersL

4 !repare annual training calendarsrganise faculty Einternal and e4ternal? for the training programmes

rganise nominations for training at &nit"onduct training programmes$aintain employee database for training

8 "oordinate with line managers and other HR groups at station for seamlessdeli/ery of training to employees

: "oordinate with !$( for assistance in conducting training programs, nominatingemployees for training at !$( and pro/iding feedback on !$( training

; etwork with *D"s at other locations< !re employment training Efor e4ample *T induction? in coordination with !$(@ "onduct training effecti/eness assessment> "oordinate (%& and !ower engineering courses1B (dentify e4ternal agencies for training identified in T# and functional

requirements11 5unctional competence requirement1' 6nowledge of functional and managerial competencies required in the

organisation to facilitate employee de/elopment13 #wareness of T!" rules and policies regarding training and de/elopment18 Training management = #bility to e/ol/e, design and source

programs according to requirements1: "ounseling, coaching and communication skills1; "ross functional competence requirement

6nowledge of other HR functions like !ublic Relations, *mployee RelationsO(ndustrial Relations, *mployee )enefits0 *mployee +er/ices and *mployeeDe/elopment

1< )road understanding of line functions and technical aspects of power generation1@ &nderstanding of 5inance and (T

H!&d, E/;(=!! R!;&t%(

;>


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Role

1 $anage organisationLs o/erall relations with employee associations = e4ecuti/e andworker unions

' $anage industrial relations = handle union and association meetings and resol/e

employeesL issues3 $anage employee relations systems and /arious participation forums Elike safetycommittee, township ad/isory committee7 joint plant le/el council, shop le/elcouncil, canteen management committee and sports council?

8 (nteract on a formal as well as informal basis with key employee associationmembers

: (dentify and address employee needs and concerns; *nsuring compliance relating to contract labor as per labour law in the unit< $anage local administration and liaison@ "oordinate with regional and corporate HR on employee relations issues> "oordinate with other HR groups at station for seamless deli/ery of HR ser/ices

to employees1B !ro/ide inputs to the HR !olicy department during the policy formulation stage

1 5unctional competence requirement' #wareness of T!"Ls rules and policies regarding employee

relations and industrial relations3 6nowledge of labor laws and contract labor statutes8 6nowledge of working of local administration and go/ernment bodies: "ounseling, coaching and communication skills; &nderstanding of (ndustrial Relations

< "ross functional competence requirement@ 6nowledge of other HR functions like !ublic Relations, *mployee )enefits,

*mployee +er/ices and *mployee De/elopment> )road understanding of line functions1B &nderstanding of 5inance and (T

L 3 H!&d, L!-&;


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1 Role

1 $anage compliance with all statutes at the station le/el

' 2iaison with local administration and managing relationship3 *nsure compliance with labor laws8 "oordinate with regional and corporate HR 2egal group: "oordinate with other HR groups at station for seamless deli/ery of HR ser/ices

to employees; !ro/ide inputs to the HR !olicy department during the policy formulation stage< +upport in the process of land acquisition and record keeping thereof@ Disciplinary matters, grie/ances, arbitration, consumer cases, land matters and

handling of court cases at /arious le/els

1 5unctional competence requirement' #wareness of T!"Ls rules and policies regarding employee relations andindustrial relations

3 6nowledge of labor laws and contract labor statutes, land acquisition acts,other rele/ant acts and arbitration procedures

8 "ounseling, coaching and communication skills: "ompetence to handle company secretarial work = drafting of notices etc0

1 "ross functional competence requirement' 6nowledge of other HR functions like *mployee Relations, *mployee )enefits,

*mployee +er/ices and *mployee De/elopment

3 )road understanding of line functions8 &nderstanding of 5inance and (T

H$/& R!($"'!

T!" belie/es in achie/ing organiFational e4cellence through Human Resources and follows

P!(;! F%"t &"(&'# t( ;!!"&-! t#! (t!t%&; () %t 8,500 !/;(=!! t( )$;)%;; %t

$%! ;&.Human Resources 5unction has formulated an integrated HR strategy which


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rests on four building blocks of HR /iF0 "ompetence building, "ommitment building, "ulture

building and +ystems building pramod0

#ll HR initiati/es are undertaken within this broad framework to actualiFe the HR V%%( ()

!&;%- t#! !/;(=!! t( ! & )&/%;= () '(//%tt!d (";d ';& "()!%(&; /&


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department meet e/ery fortnight to share their knowledge and e4periences and discuss topical

issues0 (n order to tap the latent talent among non e4ecuti/es and make use of their potential for

creati/ity and inno/ation, Nuality "ircles ha/e been set up in /arious unitsOoffices in T!"0

)esides a /&&-!/!t ($"&; called MHoriFonM is published quarterly to enable employees to

share their ideas and e4periences across the organiFation0

Demonstrating its high concern for people, NTPC #& d!!;(!d t"(- !/;(=!! !;)&"!,

#!&;t# > !;;3!%- &d ('%&; !'$"%t= =t!/leading to high le/el of commitment0 T!"

offers best quality=of=life through beautiful townships with all amenities such as educational,

medical and recreational opportunities for employees and their family members0

The moti/ation to perform and e4cel is further enhanced through a comprehensi/e NTPC

R!&"d &d R!'(-%t%( =t!/.(n order to institutionaliFe a strong "ulture based on .alues

a number of initiati/es are taken to actualiFe the .ision and "ore .alues E)"$(T? across the

company0 # culture of celebrating achie/ements and a strong focus on performance are a way of

life in T!"0 T!" has institutionaliFed D!!;(/!t C!t!" in the company to

systematically diagnose the current and potential competency requirements of the employees

with the objecti/e of enhancing their de/elopment in a planned manner0 These "enters gi/e a

good insight to the employees about their strengths and weaknesses, the gaps in their

competencies which they can bridge through suitable support from company0 Due to inno/ati/epeople management practices there is a high le/el of pride and commitment amongst employees

as reflected in the /arious e4ternal sur/eys including G"!&t P;&'! t( :("< for in (ndia in which

T!" was rated third %reat !lace to work for in the country in 'BB:

EMPLOYEE RELATIONS

*mployee relations (n T!", rooted in the philosophy of bipartisan, continued to be

cordial K harmonious during the year0


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10 To effecti/ely le/erage information technology to dri/e process efficiencies0

'0 To aim for performance e4cellence in the di/ersificationbusinesses0

HUMAN RESOURCE DEVELOPMENT

To enhance organiFational performance by institutionaliFing an objecti/e and open performance

management system0

J To align indi/idual and organiFational needs and de/elop business leaders by implementing a

career de/elopment system0

J To enhance commitment of employees by recogniFing and rewarding high performance,

J To build and sustain learning organiFation of competent world= calls professionals0

J To institutionaliFe core /alues and create a culture of team building, empowerment, equity,

inno/ation and openness which would moti/ate employees and enable achie/ement of strategic

objecti/es0

NEED AND IMPORTANCE OF THE STUDY

!ublic enterprises occupy a key place in die (ndian economy in terms of employment and

in/estment 0 public enterprises are e4pected to fulfill social as well as economic obligation to

ensure all=round de/elopment of the economy0 )ut unfortunately, due to many reasons most of

the public enterprises are not able to fulfill the promises for which they ha/e been established0 (n

many cases of decline in their performance in terms of producti/ity and social o/erheads,

wastages, lack of moti/ation on , low morale, dissatisfaction indiscipline and lack of

commitment are some of the p =?or performance of public enterprises

&nderstanding the employee is essential for an organiFation in assisting

management with the MpeopleM component of the organiFation and assist in gaining and

maintaining a competiti/e ad/antages0

+tudy on employees opinion towards job satisfaction in /arious aspects in T!" help the

company to know how employee feels and contributes ma4imum benefits to the organiFation 0

There is a need and importance for the study , as it will help the company to known about

the employees employees opinion and can modify the changes in the organiFation for human


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resource de/elopment and future utility

0

OBJECTIVES,

The study aims at finding the information regarding jobs satisfaction of employees in

general and specific in M1L(L"0 The objecti/es are7

10 To ensure the a/ailability ofL a competent and willing workforce to an organiFation0

'0 To meet the needs, aspirations, /alues and dignity of indi/idual employees0

30 The fullest contribution of HR for the achie/ement of the organiFational goal of long and short

term plans0

80 To duty the relationship between job satisfaction and /arious socioeconomic /ariables of

employees0

:0 2e/el of satisfaction of employees0

SCOPE OF THE STUDY

The present study is a micro le/el study confined to the study of moti/ation, job

satisfaction and can be attempted from /arious dimensions of personal feelings, perception,

desires, moti/es, attitudes, /alues etc7 Therefore employee management in an organiFation does

mean management of not only technical skills but also other factors of the human resources0

(t also makes a modest attempt to e4amine there issues in terms of selected dimension0

5urther, the in depth analysis is confined to employees in T!"0


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RESEARCH

METHODOLOGY

RESEARCH METHODOLOGY


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SOURCES OF DATA

Required data for analysis will be collected through

!rimary data

+econda data !rimary

data

(nformation that is collected directly from employees or any person is known as

primary data, it is otherwise called as first information0 (t is collected through

questionnaires and inter/iews0

S!'(d&"= d&t&

(nformation that is gathered from books, companyLs pre/ious records, magaFines are

known as secondary data0

This study is based mainly of primary data0 The main sources of primary data are

employees of T!"0

The secondary datais gathered from the status reports, records and personnel manual of

T!",R#$#%&D#$00


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S&/;! %Q!

:B0*mployees E*4ecuti/es? from /arious department like personnel and #dministrati/e,

5inance, #ccounts, materials K management, technical ser/ice, plant operators, etc were chosen

randomly from this study0

P!"%(d () t#! t$d=

The data gathered for analysis belongs to the period of 3B days0

Tools for the Data collection

Tools used for data collection were as follows

1 &nstructured discussion

' +tructured discussion0

1.Ut"$'t$"!d $!t%(&%"!

&nder this method of data collection the respondent personally come in contact with the

respondent from whom the information is to be gathered certain crucial elements are also be

discussed0 The person who wants the information raises the concerned topic and should allow the

other persons to freely e4press his /iews and opinions of the respondents are more clear K true0

. t"$'t$"!d $!t%(&%"!

(t is usually associated with the self=administered tools with items of the closed or fi4ed

alternati/es type the respondents feel great confident in the anonymity of questionnaire then in

that of any inter/iew it place less pressure on the subject of immediate response there were0 The

reasons for choosing questionnaire as one as the data collection0 The in/estigator including 1;

questionnaires other than respondents details


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The questionnaire consists of three types of questions

1,$ultiple choice

',Dichotomy questions

3,pen=ended questions

The multiple choice questions offer respondent with a choice of specific answer

Chile a dichotomous offers two choices 9yesI or Go an open=ended questions is

accurate with space pro/ided for the responses0

Different areas that were proposed with questionnaire were namely personal information

promotion policy, (nterpersonal relationship job satisfaction and other related areas0

LIMITATIONS

The following limitations are considered

1. The study bring the general opinion ofM the employees but it will not reflect the e4act

opinion of all0

. as the study will be conducted in T!", in HR di/ision to indicates the

8. !erception of the employees in that0 di/ision only0 =

4. The study restricts up to 1'B sample0 (t will not consider all the employees in the

organiFation0

5. The study focuses on the attitudes and perceptions of employees only, it will not = co/er

the financial of the employees0


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DATA ANALYSIS>

INTERPRETATION

@B


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10 The "ompensation and benefits incase of accidents while on duty are sufficient in your

organiFation

a? +trongly #gree b? 0#gree c? Disagree d?0 +trongly Disagree

!articulars #gree Disagree +trongly #gree +trongly Disagree

o0f *mployees 3; 3 1B 1

!ercentage


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!articulars Yes o

o0f *mployees 3: 1:

!ercentage


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a?Yes b0?o

!articulars Yes o

o0f *mployees 8@ '

!ercentage >; 8

no.of employees

yes

96%

no

4%

yes no

INTRPRETATION

5orm the abo/e interpretation it is clear that most of the employees i0e0,>;A accepted the

statement that claims are settled by the management in time0

B80 Do you agree this compensation and benefits will lead to job satisfaction

a?#gree b?Disagree c?+trongly agree d?+trongly disagree

@3


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!articulars #gree Disagree

+trongly

#gree

+trongly

Disagree

o0f *mployees 38 > ; 1

!ercentage ;@ 1@ 1' '

no.of employees

68%

18%

12% 2%

agree disagree strongly agree strongly disagree

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0,;@A accepted the statement that

compensation and benefits will lead to job satisfaction0

B:0 Does employee enjoy job security in the company

@8


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a?#gree b?Disagree c\+trongly agree d ?+trongly disagree


+trongly

#gree

+trongly

Disagree

o0f *mployees 33 ' 1: B

!ercentage ;; 8 3B B

no.of employees

66%4%

30%0%


INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0,;;A accepted the statement that

they enjoy job security in the company0

@:


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;0 The compensation paid under %roup !ersonal #ccident (nsurance +chemeE%!#(+? is

reasonable and satisfa nctory



o0f *mployees 3< ' 1B 1

!ercentage


87/113

< #re you satisfied with medical and health facilities



o0f *mployees 31 3 1; B

!ercentage ;' ; 3' B

no.of employees

agree

62%disagree

6%

strongly agree

32%

stronglydisagree

0%


INTRPRETATION

5orm the abo/e it is clear that most of the employees i0e0,;'A accepted the statement that they

are satisfied with the $edical and education facilities pro/ided by the company0

B@0 +pecial disability lea/e in case of accident while on duty is satisfactory

@


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o0f *mployees 38 8 11 1

!ercentage ;@ @ '' '

no.of employees

agree

68%

disagree

8%

strongly agree

22%

strongly

disagree

2%


INTRPRETATION

5orm the abo/e statement it is clear that most of the employees i0e0, ;@A accepted the statement

that special disability lea/e in case of accident while on duty is satisfactory0

@@


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B>0 Chich of the following compensation schemes is /ery attracti/e in your organiFation

a?+pecial disability lea/e b?group personal accident insurance scheme

c?%roup insurance d?Death relief scheme

!articulars

+pecial

Disa/ility

2ea/e

%roup !ersonal #ccident

(nsurance +cheme

%roup

(nsurance

Death Relief

+cheme

o0f *mployees ' @ 3 3B 1B

no.of employees

90%

10%

yes no

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, >BA accepted the statement that

they are aware of T!" pro/ide adequate training facilities to its employees0

180 #re you satisfied with social security benefit benefits like %roup insurance gratuity

pension and medical facilities

a?Yes b?o

>3


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!articulars Yes o

o0f *mployees 8@ '

!ercentage >; 8

no.of employees

96%

4%

yes no

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, >;A accepted the statement that

they are aware of social security benefits like insurance pension and medical facilities0

1:0 #re you satisfied with quarter facility pro/ided by the company

a?Yes b? o

>8


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!articulars Yes o

o0f *mployees 8B 1B

!ercentage @B 'B

no.of employees

80%

20%

es No

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, @BA accepted the statement that

they are satisfied with quarter facility pro/ided by the company0

1;0 #re you satisfied with the present periodicity of wage re/ision

a? Yes b?o

>:


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!articulars Yes o

o0f *mployees 3B 'B

!ercentage ;B 8B

no.of employees

60%

40%

es No

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, ;BA accepted the statement that

they are satisfied with the safety measures pro/ided by the company to recent accidents0

1;


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o0f *mployees 3' 1@

!ercentage ;8 3;

no.of employees

64%

36%

es No

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, ;8A accepted the satisfied with

the rate of increment0

1@0 #re you satisfied with the safety measures pro/ided by the company to recent

accidents


>


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+trongly

#gree

+trongly

Disagree

o0f *mployees 33 1B : '

!ercentage ;; 'B 1B 8

no.of employees

66%

20%

10% 4%


INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, ;;A accepted the statement that

satisfied with the safety measures pro/ided by the company to recent accidents0

l>0 #re you satisfied regarding the allowances a/ailable in the organiFation

a?+atisfied b?ot satisfied c?Requires impro/ement

>@


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!articlars +atisfied ot +atisfied

Requires

(mpro/ement

o0f *mployees 33 8 13

!ercentage ;; @ ';

no.of employees

66%8%

26%

satisfied not satisfied re&"ires impro!ement

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, ;;A accepted that satisfied

regarding the allowances a/ailable in the organiFation00

'B0 There is equality in compensation of e4ecuti/es belonging to /arious groups like

operations, finance, marketing, HRD etc,


>>


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+trongly

#gree

+trongly

Disagree

o0f *mployees 3B 1' : 3

!ercentage ;B '8 1B ;

no.of employees

60%

24%

10% 6%


INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, ;BA accepted the statement that

equality in compensation of e4ecuti/es belonging to /arious groups like operations, finance,

marketing, HRDetc0

'10 There is transparency in deciding compensation in the organiFation


1BB


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!articulars #gree Disagree +trongly agree

+trongly

disagree

o0of employees 83 : 1 1

!ercentage @; 1B ' '

No.of employees

10%

2%

2%

86%

Agree Disagree Strongly agree Strongly disagree

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, @;A accepted the statement that

transparency in deciding compensation in the organiFation0

''0 The company conducts salary sur/ey before deciding increments

1B1


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a?Yes b?o

!articulars Yes o

o0of employees '3 'B 1B

No.of employees

90%

10%

es No

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, >BA accepted the company has

adequate financial resources to offer higher le/el of compensation0

'80 *ducation K e4periences is gi/en due weight age in deciding compensation

1B3


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a?Yes b?o

!articulars Yes o

o0of employees ': ':

!ercentage :B :B

No.of employees

$0%$0%

es No

INTRPRETATION

5orm the abo/e chart it is clear that most of the employees i0e0, :BA accepted that education K

e4periences is gi/en due weight age in deciding compensation0

':0 Your suggestions for impro/ement in compensation and employee benefits

#ns0 10+alaries and compensation pro/ided by the pri/ate organiFation are to be taken in to

1B8


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before wage /ersion0

'0should take employee feedback0

30generation incenti/es shall be equal to all employee departments0

The recent accident shows fire protection system0 (s not working condition0 ow we ha/e

to sere that fire protection systematic should be put in working crediting monitor e/ery

day0 +o that future we can a/id such accidents0

80my organiFation is ok

:0gratuity limit impro/ement up to 1B lacks0

#ll type of la/es, impro/ement no seedling

!romote all work men employees to e4ecuti/e grudge is /ery is (ndian

;0 e4piations 'BB< pay re/ision posit rely0

0 right now e/ery thing going nice0

1B0compenstion in T!" is e4cellent gi/en (ndian en/ironment of job market /is=]=/is

compensation, it in highly satisfying0

110a group incenti/e to the gi/en to mutational steps

1'0no suggestion on T!" all the suggestion and policies made by on corporate e4ceed0

This policies change time to time0

1B:


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UESTIONNAIRES

UESTIONNAIRE

I &/ V!/$;& &d/&&, $"$%- MHRM, &t SRI DATTHA ENG > SCIENCE

COLLEGE, H=d!"&&d. I &/ d(%- /= "(!'t ("< ( COMPENSATION >

EMPLOYEE BENEFITS6 % NTPC $d!" t#! -$%d&'! () M".A.RAM*ISHAN, At.

1B;


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O))%'!" +HR. I "!$!t =($ t( -%! =($" &;$&;! "!(! t( t#! $!t%( !;(. It

% )(" /= &'&d!/%' $"(! &d %t ($;d !

A-! D!&"t/!t EK!"%!'!

10 The "ompensation and benefits incase of accidents while on duty are sufficient in yourorganiFation

a? +trongly #gree b? 0#gree c? Disagree d?0 +trongly Disagree

'0 (s there any mechanism for troubleshooting in case of accidenta? Yes b? o

80Do you agree that claims are settled by the management in timea?Yes b0?o

B80 Do you agree this compensation and benefits will lead to job satisfaction


B:0 Does employee enjoy job security in the company


;0 The compensation paid under %roup !ersonal #ccident (nsurance +chemeE%!#(+? isreasonable and satisfactory


B


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B>0 Chich of the following compensation schemes is /ery attracti/e in yourorganiFation

a?+pecial disability lea/e b?group personal accident insurance scheme

c?%roup insurance d?Death relief scheme

1B0 The food items ser/ed at canteen are good quality and offered at reasonable prices


110 #re you satisfied with the T!"Ls salaries allowances and other perks in comparisonwith other public sectors

a?#gree b?Disagree c?+trongly agree d?+trongly disagree1'0 #re you satisfied with education facility pro/ided by the company


130 Does T!" pro/ide adequate training facilities to its employees

a? Yes b?o

180 #re you satisfied with social security benefit benefits like %roup insurance gratuitypension and medical facilities

a?Yes b?o

1:0 #re you satisfied with quarter facility pro/ided by the company

a?Yes b? o

1;0 #re you satisfied with the present periodicity of wage re/isiona? Yes b?o

1


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l>0 #re you satisfied regarding the allowances a/ailable in the organiFation

a?+atisfied b?ot satisfied c?Requires impro/ement

'B0 There is equality in compensation of e4ecuti/es belonging to /arious groups likeoperations, finance, marketing, HRD etc,

a

emplyee benifits.doc

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