A SUMMER INTERNSHIP PROJECT REPORT ON
Rewards & Recognition
Submitted in partial fulfilment of requirement of Bachelor of Busines s Administration (B.B.A) General
BBA Vth Semester (B)-(M) Batch 2010-2013
Submitted to: Ms. NITI SAXENA
Submitted by:
Designation: Assistant Professor Enrollment no.: 10514101710
JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL. KALKAJI
1
STUDENT’S UNDERTAKING
I, PRERNA AHUJA, hereby declare that the project work entitled “REWARDS & RECOGNITION POLICY OF NTPC” is an authenticated work carried out by me at NTPC Under the guidance of Mrs. HARLEEN SACHDEVA for the partial fulfilment of BACHELORS OF BUSINESS ADMINISTRATION and this the award of the degree of BACHELORS work has not been submitted for similar purpose anywhere else except to JIMS KALKAJI, IP UNIVERSITY.
PRERNA AHUJA
2
STUDENT’S UNDERTAKING
I, PRERNA AHUJA, hereby declare that the project work entitled “REWARDS & RECOGNITION POLICY OF NTPC” is an authenticated work carried out by me at NTPC Under the guidance of Mrs. HARLEEN SACHDEVA for the partial fulfilment of BACHELORS OF BUSINESS ADMINISTRATION and this the award of the degree of BACHELORS work has not been submitted for similar purpose anywhere else except to JIMS KALKAJI, IP UNIVERSITY.
PRERNA AHUJA
2
INDEX No
Content
Page no
1
Acknowledgement
4
2
Executive Summary
5
4
Literature Review
6
4.1
Rewards
10
4.2
Kinds of Rewards
13
4.3
Levels of Rewards
19
4.4
Employee Rewards & Recognition Program
25
4.5
Motivation
28
4.6
Rewards & Recognition In NTPC
32
5
Company Profile
41
7
Data analysis and interpretation
54
10
Recommendations
62
11
Conclusion
64
12
References
66
13
Appendix
68
3
ACKNOWLEDGEMENT
It is high privilege for me to express my deep sense of gratitude to all those faculty members who helped me in the completion of the project, especially my External guide Ms. Harleen, who was always there at hour of need. My special thanks to Ms. Niti Saxena for helping me in the completion of project work and its report submission.
PRERNA AHUJA
4
EXECUTIVE SUMMARY
As a part of my curriculum I had to do two months training in a well-reputed firm and for this I had selected NTPC, EOC and my topic was REWARDS & RECOGNITION POLICY OF NTPC. It was a unique opportunity to explore the realities of India‟s leading
power generation company as a researcher and gather knowledge from it s vast repertoire of experience.
It was a great learning experience .The project not only helped me to enhance my practical knowledge on Rewards & Recognition as a motivating factor but also gave me an insight into the way work force is utilized here. I got to know the importance of communication and interpersonal skill in getting things done from others. In a nutshell, it was a very fulfilling and fruitful period of my life as a management student.
5
LITERATURE REVIEW
6
The term Non-Monetary Reward as a synonym to incentive and bonus. Oxford dictionary defines reward as: “a thing given in recognition of service, effort, or achievement”. Oxford dictionary also use the synonyms: “recompense, prize, award,
honor, decoration, bonus, premium, bounty, present, gift, payment; informal pay-off, perk; formal perquisite”.
Recognition and rewards play an important role in work unit and agency programs to attract and retain their employees. It is the day-to-day interactions that make employees feel that their contributions are appreciated and that they are recognized for their own unique qualities. This type of recognition may contribute to high morale in the work environment. So, it‟s extremely important that managers, who communicate the agency
goals to employees, are included in the development of recognition programs. Non-Monetary Rewards and Recognition is a means of providing immediate, non -cash rewards to employees for contributions to the Organization. We‟ve all heard the
statistics on how staff members like to be recognized and rewarded for doing a good job. That a pat on the back or a “thank you” can mean more to a person than any
amount of money. But actually putting a system into place can be easier said than done. Employee Reward covers how people are rewarded in accordance with their value to an organization. It is about both financial and non-financial rewards and embraces the strategies, policies, structures and processes used to develop and maintain reward systems. The ways in which people are valued can make a considerable impact on the effectiveness of the organization, and is at the heart of the employment relationship. The aim of employee reward policies and practices, if any the organization is to help attract, retain and motivate high-quality people. Getting it wrong can have a significant negative effect on the motivation, commitment and morale of employees. Recognition is the most cost-effective motivator there is. While the high cost of other rewards forces us to give them sparingly, recognition can be given any time, at very little cost. Recognition is a leadership tool that sends a message to employees about what is important to the leaders and the behaviors that are valued. Managers can use this tool to help employees understand how their jobs contribute to the agency‟s overall goals and how their performance affects the achievement of those goals. Often people have come to accept the notion that an employee is paid to do their job. So why should they be praised for doing what they‟re paid to do? Praise of an employee reinforces, recognizes and motivates behaviors that you, as the manager, want to see. Non-Monetary Rewards and Recognition can be delivered in a number of ways. Think about just saying “Thanks.” What does praise cost? Praise is inexpensive. If it only takes a few minutes to reap day‟s worth of increased productivity and morale, isn‟t it worth it? This doesn‟t mean that meaningless “warm fuzzies” are going to work,
7
however. Use Jim Brintnall‟s description of “W hat Makes a Good Reward?” Jim says it‟s
got to be SMART!
That means that rewards should be: Sincere: Above all else, a good reward should reflect a genuine expression of appreciation. Token acknowledgements leave something to be desired. Meaningful: To endure a motivating influence, rewards should be aligned with the values, goals, and priorities that matter the most. Adaptable: The diverse workplace demands alternatives. Consider creative options to keep your program fresh. No single reward format works for everyone all the time. [Recognition should be adapted and valuable to the receiver. Relevant: Some personal dimension is essential to a good reward. No matter how formal or informal, expensive or affordable, the relevance of any recognition will be improved with a personal touch - - it‟s a little thing that makes a big difference. [Recognition should be provided by someone of significance to the receiver.] Timely: It is important that rewards respond to the behavior they are intending to reinforce. Don‟t let too much time pass or the reward may be devalued and credibility eroded. To ensure that employees tie recognition into the work unit or agency‟s strategic goals,
be certain to tell employees what they did right and how it interacts with the goals. Include supervisors and employees in the development of your recognition program to represent the values and goals of a diverse cross-section of the work unit or agency. Provide the opportunity for recognition to come from a variety of sources. Peer-to-peer recognition usually is highly valued by employees. It can be used to develop a supportive work environment. For many employees, recognition received through the expression of genuine appreciation for the work they do is a reward. Being involved in a project or receiving special training may be another‟s reward. Make no mistake, however, that most employees would not turn down a monetary, non-monetary or recognition leave reward! Non-Monetary Reward is the benefit received for performing a task. Total reward embraces everything that employee‟s valu e in employment relationship. It means all the tools available to the employer that may be used to attract, motivate and retain employees. Non-Monetary Reward will mean a token of appreciation of the contribution/performance of employees leading to significant improvements in the work processes and effectiveness. The employees would be rewarded for their contribution through four categories of awards as given here under:
Good Work Done
Performers of the Quarter 8
Team Award
Annual Awards
A ) Good Work Done Appreciation of good work done within the Department, that sets an example for the rest of the employees, would be done by highlighting the contributions through an appreciation letter by the HOD and display on the Notice Boards. B ) Performers of the Quarter These Awards are given for contributions that have a significant impact on the function/business of the company. C) Team Award As and when any cross-functional team working on an assignment exceeds the requirements laid down for the work or achieves a milestone, the team may be sent out for a dinner or an outing. D) Annual Award The purpose of this award is to recognize the “Best Performer” of the year. According to Nelson, informal or spontaneous rewards can be implemented with minimum planning and effort by almost any manager. He quotes a Wichita State University study noting that "simply asking for employee involvement is motivational in itself."
That Wichita State study also determined that the top five motivating techniques were: • Personally congratulating employees who do a good job; • writing personal notes about good performance; • using performance as the basis for promotion; • publicly recognizing employees for good performance; and • holding morale-building meetings to celebrate successes.
Nelson adds that informal rewards make more of a positive impact with employees and are cost effective. According to the "People, Performance and Pay" study by Houston, Texas-based American Productivity Center and the American Compensatory Association, it generally takes five to eight percent of an employee's salary to change behavior if the reward is cash and approximately four percent of the employee's salary if the reward is non-cash. Petroleum marketers have used informal rewards to recognize their employees' good works. Chevron (San Francisco, CA) keeps a large box, secured with a padlock, filled with gifts. An employee being recognized on the spot for some accomplishment is brought to the "Treasure Chest" by his or her supervisor, who holds the keys. The employee gets to choose an item from the box, which could be anything from a gift certificate, to a coupon for lunch or dinner, to movie tickets. 9
Some of the most effective ways to reward your employees is to simply say thanks for doing a great job, giving them a birthday card, or keeping them posted on changes at work that directly affect them. Remember those gold stars that the 1st grade teacher put on your report? It may indeed sound childish on the surface, but people really do like to receive a gold star every now and then for a job well done.
REWARDS
Objective Reward systems have three main objectives: to attract new employees to the organization, to elicit good work performance, and to maintain commitment to the organization.
Meaning of Rewards Reward system or management usually means the financial reward on organization gives its employees in return for their labour. While the term rewards system, not only includes material rewards, but also non-material rewards. The components of a reward system consist of financial rewards (basic and performance pay) and employee benefits, which together comprise total remuneration. They also include non-financial rewards (recognition, promotion, praise, achievement responsibility and personal growth) and in many case a system of performance management. Pay arrangements are central to the cultural initiative as they are the most tangible expression of the working relationship between employer and employee. Many papers examine the role of organizational culture i.e., the demand for monitoring compensation. Such investigations conclude that organizational culture places a significant role in determining the level of economic demands. Recent researches on industrial unrest rest indicate that reward criteria of the organizations both financial and non-financial rewards have tremendous influence upon the employees and employers performance.
Meaning of Awards An award is something given to a person or a group of people to recognize excellence in a certain field; a certificate of excellence. Awards are often signified by trophies, titles, certificates, commemorative plaques, medals, badges, pins, 10
or ribbons. An award may carry a monetary prize given to the recipient, for example, the Nobel Prize for contributions to society. An award may also simply be a public acknowledgment of excellence, without any tangible token or prize. Awards can be given by any person or institution, although the prestige of an award usually depends on the status of the awarder. Usually, awards are given by an organization of some sort, or by the office of an official within an organization or government. One common type of award in the United States is the Employee of the Month award, where typically the recipients' names are listed in a prominent place in the business for that month.
11
Rewards
Non-Monetary Rewards
Monetary Rewards
Performance Rewards
Compensation
Rewards& Recognitions
Awards
12
Appreciations
Kinds of Rewards
Monetary Rewards This includes: • Bonus • Variable pay • Vouchers • Cash payments
Non- Monetary Rewards Recognition (To notice, show appreciation) Say Thank You!!! It is important that we always thank young people for their work – either verbally or in writing (i.e. letter, text, e- mail). Recognize the value of young people‟s involvement and of volunteering. Help them to understand the value of giving something back to their community, developing skills, the sense of achievement and the „feel good‟ factor. Certificates The employees who are performing well they should be given the certificates as appreciation for their good work. Because giving certificates to the employees helps them a lot in increasing their motivation level. Feedback Young people want to know what difference their contribution has made. Has what they have done led to any action or change? It is important that when you are doing a piece of work with young people you agree with them at the outset how you will feedback to them. Agree methods, timescales etc.
13
Other Inexpensive Ways to Reward Employees - A thanks can be said - A handwritten note can be dropped to them - A program can be named after the employees - The staffs can be praised at staff & other public meetings - A new training programs can be created for the staff
Difference between Awards and Rewards? Volunteer, staff or community member recognition is the crucial process of rewarding and motivating the people who have contributed positively to your community. It's a crucial area for any community manager and you are quite right to make a distinction between awards and rewards. Here are some definitions which may help evince the differences between these two ways of recognising the people who make your community "happen".
1) Awards "Awards" are the periodic provision of tokens of appreciation or symbols of recognition to individuals. Awards can take place both in a group and a one-to-one basis, but in either instance they usually are publicly presented. Awards generally fall into two categories. The first is 'tangible items' in the way of merchandise or gifts, which might include: 1. Certificates 2. Pins 3. Group Photographs 4. 4.Items of clothing, such as T-shirts, caps, etc. The second category is 'events', including: 1. Lunches and dinners 2. Parties and celebrations 3. Field trips e.g. to the organizations offices Awards are particularly useful in generating a sense of bonding or group involvement among those who do not often have an opportunity to gather together or for whom sharing their togetherness is otherwise difficult. Awards are good short-term bonding or motivating tools at a group level. In the case of events, often there is a mutual appreciation and r ecognition 14
of everyone else's contribution to the team effort or goal.
2) Rewards "Rewards" are the more intangible day-to-day activities of recognition and motivation that are given to individuals to encourage them and to acknowledge their contributions. As such, rewards tend to be less formal, more private and more personal. Example of rewards includes:
Saying 'Thank You'. Giving respect and equal status to volunteers and/or staff. Maintaining a personal interest in the volunteer, staff. Spending time and effort in supervision. Giving the individual more responsibility. Spotlighting a community member on the front page of your site. Sending a personal message to a community member thanking them for their participation Rewards tend to be more effective long-term motivators of individual volunteers, staff or community members -- the feel good factor.
Types of Recognition Programmes There are some types of recognition programmes which are mentioned under: TYPE Spot programmes
DESCRIPTION Recognition programmes that have low or minimal cost and do not require a formal plan document or extensive administration.
EXAMPLES Movie tickets Paid meals Flowers Tickets to
special events Symbolic awards
Recognition programmes designed to provide a tangible award or memento.
Service award Quality award Recognition
certificates Plaques and trophies
15
Verbal recognition
This approach provides praise directly to the individual or team.
Thank you card Testimonies
from senior leadership Customer feedback Written congratulations Public recognition
Nelson (1994) sums it up very well when he says “you get the best effort from employees not by lighting a fire under them, but building a fire within them.” In his book “1001 Ways to recognize employees” he makes the following suggestions for
informal recognition. These types of recognition would fit into the above category of informal recognition, such as spot programmes or verbal recognition and are generally low cost in nature. • Buy “welcome to the team” flowers for a new employee on their first day; • Put gold stars on employees‟ name badges; • Give out “time off” certificates; • Create a “hall of fame” for top employees; • Hand out thank you cards with flowers or candy; • Give movie tickets; • A personal note of thanks; • Spoken „thank you‟; • Travelling trophy; • Plaque or certificate; • Achievement acknowledged at staff meetings; • Volunteer to do a colleague‟s least desirable work task for a day; • Pay for a magazine subscription; • Give sticky notes with a saying appropriate to their personalities;
Lack of recognition has been cited as one of the primary reasons for top talent leaving. The challenge of informal rewards is to find the right match between the individual and the recognition given, as the psychic income of being openly acknowledged and appreciated equals or exceeds the material, monetary income. In conjunction with this, Pollock (1995) argues that leaders who recognize the power of the emotional appeal of informal forms of recognition can more easily motivate employees to higher levels of performance, often for much lower costs than monetary rewards.
CHARACTERISTICS OF NON-FINANCIAL RECOGNITION PROGRAMMES Wilson (1994) makes the following suggestions for conditions that stimulate the same or related behaviors in the future: • Specific. Employees must know what they did to earn the recognition, and
therefore they need to continue doing it. Performance measurement and 16
feedback are essential for consequences to be effective in shaping desired behaviours. • Personalized. Recognition has to be meaningful to the employee. Thus the
method of delivery and the source of the reward are often as important as the item, comment or activity. • Contingent. Recognition has to be earned so that employees feel that they
have truly achieved some action or result. Further, for a reward to be effective, the desired behaviour/ performance needs to be within the employee‟s ability
and control (or influence). • Sincere. Recognition has to be given in a manner that is honest, sincere and
from the heart. • Immediate. Recognition must be provided soon following the achievement or
contribution. Waiting for approval, deadlines or completion may reduce the impact of the reward. The trend to add informal recognition systems to complement formal rewards programmes have emerged as companies struggled to retain the best employees. In their efforts they have discovered that employee motivation is highly individualized. If the intention of a recognition programme is to motivate, then the impact of such recognition should be individualized as well. Formal programmes, although successfully meeting specific organizational goals, do not achieve this. They tend to be impersonal and infrequent, usually once a year or quarterly. The same incentives used over and over also tend to lose its effectiveness.
Why reward system is required? These components will be designed, developed and maintained on the basis of r eward strategies and policies which will be created within the context of the organizations between strategies, culture and environment: they will be expected to fulfill the following broad aims:
Improve Organizational Effectiveness : Support the attainment of the organization's mission, strategies, and help to achieve sustainable, competitive advantage. Support and change culture : Under pin and as necessary help to change the 'organizational culture' as expressed through its values for performance innovation, risks taking, quality, flexibility and team working Achieve Integration: Be an integrated part of the management process of the organization. This involves playing a key role in a mutually reinforcing and coherent range of personal policies and process.
17
Supportive Managers: Support individual managers in the achievement of their goals. Motivate Employees : Motivate employees to achieve high levels of quality performance. Compete in the Labour Market : Attract and retain high quality people. Increased Commitment: Enhance the commitment of employees to the organization that will a) want to remain members of it, b) develop a strong belief in and acceptance of the values and goals of the organization and c) be ready and willing to exert considerable effort on its behalf. Fairness and Equity: Reward people fairly and consistently according to their contribution and values to the organization. Improved Skills: Upgrade competence and encourage personal development. Improved Quality: Help to achieve continuous improvement in levels of quality and customer service Develop team working: Improve co-operation and effective team working at all level. Value for money: Pride value for the money for the organization Manageable: Be easily manageable so that undue administrative burdens are not imposed on managers and members of the personal department. Controllable: Be easily controllable so that the policies can be implemented consistently and costs can be contained within the budget.
Meaning of reward to people Pay is frequently used as a motivator and reinforce on it can easily be differentiated and computed, linked, clearly and visibly to direct performance and is generally valued reward. While outlined the major components in the meaning of reward to people;
Short-term material enjoyment Long term security Social status Recognition of personal achievement
18
Significant Reasons to develop better reward management system
To reduce the dissatisfaction of the employees on promotion criter ion To reduce the dissatisfaction of the employees on appraisal system. To reduce the dissatisfaction of the employees on salary, bonus and other fringe benefits. To improve the work performance To improve the productivity To reduce the level of occupational stress that arises from feeling of inequality on reward To reduce the perceptional gap on reward management system and develop a culture of high performance.
Seven Levels of Rewards The question thus arises whether it is possible to attract, retain and motivate employees with rewards, and if so, who will resonate with which reward practices? Organizations and individuals seldom display the characteristics of one level of consciousness only, and many spread across a number of levels, with a focus on one or two levels. For simplicity, we discuss the various distinct levels of employee consciousness, how they manifest and how these relate to tangible and intangible reward practices.
LEVEL 1 - SURVIVAL Characteristic of level 1 focus on physical survival. Individuals focusing on this level are concerned with financial stability, safety, and health. The negative manifestation of excessive focus at this level manifests as greed and control. An excessive focus on level 1 from an employee is likely to result in scarcity mentality where nothing is enough and the need for a regular income becomes the greed for an income beyond what can reasonably be expected for the job. This results in a mind set of entitlement and bargaining.
LEVEL 2 – RELATIONSHIPS At level 2, the quality of interpersonal relationships is important and individuals value open communication, friendship and respect. When level 2 expresses in a negative sense, it includes intolerance or an excessive need to be liked. Examples abound in business of verbal abuse, sexual innuendo and lack of respect for language, religion, culture and ethnicity. 19
At this level, role sizing is important since it provides a basis to compare the relative size or complexity of positions. Setting remuneration levels relative to job size then facilitates the management of internal equity and compare to market. An excessive focus on level 2 from employees is likely to result in excessive collective bargaining and unrealistic demand. A healthy expression of tangible rewards at level 2 includes a measure of relativity of role sizes using a transparent and credible system, preferably with wide participation. This is then linked to remuneration guidelines, which are applied in a consistent and fair manner. The intangible rewards at this level include open communication with employees and treating all individuals and groups with dignity and respect.
LEVEL 3 – SELF-ESTEEM Employees at this level are typically concerned with professional growth and recognition. Excessive focus at this level could manifest as status consciousness, image building and arrogance. From a reward perspective, employees would like to see their efforts recognized. This ideally takes the form of tangible as well as intangible rewards. Tangible rewards for performance have historically been provided via salary increases in excess of inflation. In an era of single digit inflation it is diff icult to truly differentiate increase levels. There is growing trend to recognize performance tangibly through short term incentives. A healthy expression of level 3 remuneration practices balances the needs of levels 1 and 2. Incentive pay is appropriate to the type of work, the time horizon of the work and the performance aligned with organization objectives, while encouraging constructive co operation between employees as well as healthy client and supplies relationships. Promotion is not provided as a reward for performance, but is only used when the person takes on a different role with more responsibility and complexity. At the intangible reward levels, recognition, either private or public, for outstanding performance is highly valued as is the opportunity to learn and develop. Internal and external training programs relevant to the employee‟s development are congruent with
the needs at this level. Intangible rewards take the form of opportunities for learning and professional development as well as public recognition of achievement and contribution. As excessive focus from an individual at this level is likely to manifest in a mind set of earning and bargaining or individual performance being achieved at the cost of the collective.
20
LEVEL 4 – TRANSFORMATION Individuation is characteristic of the level of transformation and a growing awareness of the importance of personal growth. At this level employees display a growing awareness of context and interdependency. Individuals at this level often reflect on what is truly important to them and become aware of the need for balance between tangible and intangible rewards, the balance between self-interest and the common good as well as the need for work/life balance. At this level, individuals accept and understand the imperatives for tangible rewards at the previous levels, but question the need to have the package structuring prescribed. The concept of flexible benefits and total cost of employment are typical issues to be raised at this level.
LEVEL 5 – INTERNAL COHESION Level 5 concerns the individual‟s search for meaning and community. Individuals at this
level transcend the concept of a career and think of a mission or a purpose in life. At this level, creativity, enthusiasm, excellence and generosity are valued. These individuals typically view the workplace as a community and will view the interaction between the internal stakeholder from the perspective of contributing to the sense of community or not. Employees focused at this level will understand and respect the building blocks of the previous levels in remuneration, but look beyond these. At this level, employees will develop discomfort with practices that they see as detrimental to internal community building.
LEVEL 6 – MAKING A DIFFERENCE Level 6 consciousnesses is about making a difference in the world and individuals who are focused at this level are often actively involved in the local community. These individuals value environmental awareness and show empathy in dealing with others. Individuals at this level show understanding for the needs of both tangible and intangible rewards at the previous levels. These individuals are generally motivated more by intangible rewards than tangible rewards and remuneration is seldom their primary reason for working as they have the perspective of a life purpose, rather than a career. The intangible rewards that are likely to appeal to individuals at this level relate to the ability to make a difference to society. Time off work for community work, environmental projects and social upliftment are likely to be valued. 21
Individuals that have a calling to make a difference are likely to resonate with organizations that have a strong community and environmental awareness and programs that give expression to this.
LEVEL 7 – SERVICE Level 7 reflects the highest order of internal and external connectedness. Individuals operating at this level focus on service to others. These individuals value wisdom, compassion and forgiveness. They have a long term perspective and are concerned with issue such as social justice and human rights. Individuals at this level find it hard to work for organizations that violate any of the lower level needs of employees and are insensitive to society or the planet. Remuneration practices are viewed from long term sustainability over the long term is an example of this. Employees with a focus at this level are likely to identify with employers that show a global awareness, a balance between long term and short term success indicators (both financial and non-financial) and balance the needs of this generation of stakeholders with the needs of future generations
Maintaining Motivation and Morale Five steps to maintain staff motivation:
Communication: Keep everyone informed of company successes through regular communication, such as weekly motivational newsletter. Company Awards: If you don‟t already have them, introduce company awards. These can be weekly, monthly, quarterly and annually, and don‟t need to cost you a fortune. The little extras: You may no longer be able to offer big bonuses, but you can implement things such as letting employees leave work early on a Friday, or giving them their birthday off. At Pareto, we also give our top monthly performer a month or free lunches. Add some fun: We have used themed days for years, and they create a real buzz. When the schools went back, everyone dressed in school uniform. When England played Australia in the Ashes, we all came to work in cricketing whites. Get everyone involved and the office will come alive. Personal Support: This is completely free, but can make a huge difference to individual motivation. Ensure each member of staff has a mentor that they can go to and learn from. At Pareto, everyone can speak to a director at any time for advice and support 22
Case Study: A Story about Sarah and Marian………
Sarah and Marian both worked for the same small organization. Marian was your typical high flyer, full of energy and potential, eager to do well and was going places. She loved the challenges her work provided and was keen to do well. Sarah worked very hard, she managed the admin team and was a real barometer of the organizations values, if she felt something wasn‟t right you could pretty much guarantee it wasn‟t right. Sarah had a small son, and if money had allowed it, she would probably have given up work when he was born- however that wasn‟t a possibility. Marian did not have children, she and her partner had a good life, both working full time. To reward Sarah the manager did not have the option to give her more money, and even if she could she knew that actually giving time was a greater reward, so telling Sarah to take Friday afternoon off was a greater reward. She did the same to Marian who went home and worked some more. To reward Marian, the line manager needed to recognize her “Drivers”. Knowing that Marian was ambitious. Marian could have been a good project to manage, something that was high profile working with important clients, something where the manager showed that Marian was not only capable, but trusted to take on such a project. At different times both deserved to be rewarded for the ir contributions to the organization, however the reward, to be meaningful needed to reflect what was important to each and within the gift of the manager. So for reward and recognition to be successful you have to know your staff very well. It is important that rewards reflect the contribution. Giving a small reward for a big action will have a more negative impact than giving nothing at all. Likewise giving very large rewards for small contributions will not be looked upon positively. When recognition or a reward is given it should be done in a genuine manner and the person made to feel that this is special – That they are special and appreciated. Individual or Team Based Rewards.
Even if some contributors are not so easy to measure, it is unlikely that every one makes a contribution to the organization. Most recognition and reward systems are based on individual performance, however increasingly people are tuning to group based reward and recognition strategies. The advantages in individual based strategies are mainly that:
Cheaper than team based strategies! Easy to identify who has made contribution Can be tailored to the individual
Of course there are potential disadvantages in that individual strategy;
Can create unhealthy conflict or competition Can be open to favoritism
Ignores the „value added‟ in the team or chain.
23
What type of strategy to adopt depends very much on the nature of the organization and how work is organized? If you adopt an individual approach, ensure that the quieter and more invisible members of staff are not ignored. There are some principles that underpin a good reward and recognition strategy
The implementation of the procedures should be fair – now and in the future. The policy should include all members of staff The reward or recognition should be of equal value to the contribution being recognized. The reward should be meaningful to the recipient. Criteria for reward and recognition should be transparent. The system should be sustainable. Teams as well as individuals can be rewarded. The supervisor or line managers are in the best position to recognize and reward contributions.
How to Choose the Right Rewards
The idea of rewarding staff is not a new one. The most successful companies have been doing it for years, because they know that recognizing the efforts of their employees gets results that range from increased productivity to higher profits. Employees who are reward for their efforts are more willing to go the extra mile for a company, to contribute their intellectual capital, and to stay around for longer. Staff who feel valued and appreciated are motivated and that‟s
good news for any company because motivated people can do a lot to contribute to growth and productivity. Where as once a big pay packet was thought of as the only way to reward employees, that perception has changed. So too has the notion that only large companies have the resources to reward their staff. Companies of all sizes have come up with ways to reward their employees that extend well outside the realm of salaries and cash bonuses. Many rewards don‟t involve money at all, and if a
reward is used the right way, it can achieve results, regardless of whether you employ 10 people, 100 or 1000. There‟s no one right way to reward a staff member because diff erent rewards work for different people, according to their age and their individual interests. What particular rewards work for employees is likely to change throughout their life, and also throughout their career. However, the sorts of rewards employees are using are mostly tied to company culture. They are rewards that are influenced by the particular industry a company is part of, or by the ages and interests of employees. There are the rewards that are given for specific achievements or behaviors, such as meeting sales target, coming up with a cost saving idea or attracting new client. Than there are more general rewards given to say “Thank you for working for this company, we value you as an employee”
These might include flexible work hours; time off to work on a community project or setting up a special work environment for employees. There are also workplaces that provide intrinsic rewards for people24
That is, the good feelings they get from the work they do. Rewards can be material or non material. Material rewards might very well include cash bonuses, profit share, gifts, tickets to events, holidays, prizes or superannuation top ups. Non material rewards might be time off to pursue personal interests, or organizing a staff function or a special theme day once a month to boost morale. Non material rewards might also include giving staff special training or projects to help keep their job challenging, broaden their experience and boost their worth in the job market.
Employee Reward and Recognition System In a competitive business climate, more business owners are looking at improvements in quality while reducing costs. Meanwhile, a strong economy has resulted in a tight job market. So while small businesses need to get more from their employees, their employees are looking for more out of them. Employee reward and recognition programs are one method of motivating employees to change work habits and key behaviors to benefit a small business.
Reward vs. Recognition
Although these terms are often used interchangeably, reward and recognition systems should be considered separately. Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels. They are normally considered sepa rate from salary but may be monetary in nature or otherwise have a cost to the company. While previously considered the domain of large companies, small businesses have also begun employing them as a tool to lure top employees in a competitive job market as well as to increase employee performance.
As noted, although employee recognition programs are often combined with reward programs they retain a different purpose altogether. Recognition programs are generally not monetary in nature though they may have a cost to the company. Sue Glasscock and Kimberly Gram in Productivity today differentiate the terms by noting that recognition elicits a psychological benefit whereas reward indicates a financial or physical benefit. Although many elements of designing and maintaining reward and recognition systems are the same, it is useful to keep this difference in mind, especially for small business owners interested in motivating staffs while keeping costs low.
25
Designing a Reward Program The keys to developing a reward program are as follows:
Identification of company or group goals that the reward program will support Identification of the desired employee performance or behaviors that will reinforce the company's goals Determination of key measurements of the performance or behavior, based on the individual or group's previous achievements Determination of appropriate rewards Communication of program to employees
In order to reap benefits such as increased productivity, the entrepreneur designing a reward program must identify company or group goals to be reached and the behaviors or performance that will contribute to this. While this may seem obvious, companies frequently make the mistake of rewarding behaviors or achievements that either fails to further business goals or actually sabotage them. If teamwork is a business goal, a bonus system rewarding individuals who improve their productivity by themselves or at the expense of another does not make sense. Likewise, if quality is an important issue for an entrepreneur, the reward system that he or she designs should not emphasize rewarding the quantity of work accomplished by a business unit. Properly measuring performance ensures the program pays off in terms of business goals. Since rewards have a real cost in terms of time or money, small business owners need to confirm that performance has actually improved before rewarding it. Once again, the measures need to relate to a small business' goals. As Linda Thornburg noted in HR Magazine, "Performance measures in a rewards program have to be linked to an overall business strategy…. Most reward programs use multiple measures which can include such variables as improved financial performance along with improved customer service, improved customer satisfaction, and reduced defects." When developing a rewards program, an entrepreneur should consider matching rewards to the end result for the company. Perfect attendance might merit a different reward than saving the company $10,000 through improved contract negotiation. It is also important to consider rewarding both individual and group accomplishments in order to promote both individual initiative and group cooperation and performance. Lastly, in order for a rewards program to be successful, the specifics need to be clearly spelled out for every employee. Motivation depends on the individual's ability to understand what is being asked of her. Once this has been done, reinforce the original communication with regular meetings or memos promoting the program. Keep your communications simple but frequent to ensure staffs are kept abreast of changes to the system.
26
Recognition Programs A recognition program may appear to be merely extra effort on their part with few tangible returns in terms of employee performance. While most employees certainly appreciate monetary awards for a job well done, many people merely seek recognition of their hard work. For an entrepreneur with more ingenuity than cash available, this presents an opportunity to motivate employees. In order to develop an effective recognition program, it must be sure to separate it from the company's reward program. This ensures a focus on recognizing the effort s of employees. To this end, although the recognition may have a monetary value (such as a luncheon, gift certificates, or plaques), money it is not given to recognize performance. Recognition methods should be sincere; fair and consistent; timely and frequent; flexible; appropriate; and specific. explain that it is important that every action which supports a company's goals is recognized, whether through informal feedback or formal company-wide recognition. Likewise, every employee should have the same opportunity to receive recognition for their work. Recognition also needs to occur in a timely fashion and on a frequent basis so that an employee's action does not go overlooked and so that it is reinforced to spur additional high performance. Like rewards, the method of recognition needs to be appropriate for the achievement. This also ensures that those actions which go farthest in supporting corporate goals receive the most attention. However, an entrepreneur should remain flexible in the methods of recognition, as employees are motivated by different forms of recognition. Finally, employees need to clearly understand the behavior or action being recognized. A small business owner can ensure this by being specific in what actions will be recognized and then reinforcing this by communicating exactly what an employee did t o be recognized. Recognition can take a variety of forms. Structured programs can include regular recognition events such as banquets or breakfasts, employee of the month o r year recognition, an annual report or yearbook which features the accomplishments of employees, and department or company recognition boards. Informal or spontaneous recognition can take the form of privileges such as working at home, starting late/ leaving early, or long lunch breaks. A job well done can also be recognized by providing additional support or empowering the employee in ways such as greater choice of assignments, increased authority, or naming the employee as an internal consultant to other staff. Symbolic recognition such as plaques or coffee mugs with inscriptions can also be effective, provided they reflect sincere appreciation for hard work. These letter expressions of thanks, however, are far more likely to be received positively if the bestower is a small business owner with limited financial resources. Employees will look less kindly on owners of thriving businesses who use such inexpensive items as centerpieces of their reward programs. Both reward and recognition programs have their place in small business. Small business owners should first determine desired employee behaviors, skills, and accomplishments that will support their business goals. By rewarding and recognizing outstanding performance, entrepreneurs will have an edge in a competitive corporate climate.
27
Motivation
Meaning and Theories of Motivation Motivation Motivation is the internal condition that activates behavior and gives it direction; energizes and directs goal-oriented behavior. The term is generally used for human motivation but, theoretically, it can be used to describe the causes for animal behavior as well. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, morality, or avoiding mortality.
Motivation Concepts Intrinsic and extrinsic motivation Intrinsic motivation Intrinsic motivation comes from rewards inherent to a task or activity itself – the enjoyment of a puzzle or the love of playing basket ball, for example one is said to be intrinsically motivated when engaging in an activity itself. This form of motivation has been studied by social and educational psychologists since the early 1970‟s. Research
has found that it is usually associated with high educational achievement and enjoyment by students. Intrinsic motivation has been explain by f ritz Heider‟s attribution theory, Bandura‟s work on self efficacy and Ryan and Deci‟s cognitive evaluation
theory. Students are likely to be intrinsically motivated if they:
Attribute their educational results to internal factors that they can control (e.g. the amount of effort they put in), Believe they can be effective agent in reaching desired goals ( i.e. the results are not determined by luck ), Are interested in mastering a topic, rather than just role learning to achieve good grades.
Extrinsic Motivation Extrinsic motivation comes from outside of the performer. Money is the most obvious example, but coercion and threat of punishment are also common extrinsic motivations. In sports, the crowd may cheer the performer on, and this motivates him or her to do well. Trophies are also extrinsic incentives. Competition is often extrinsic because it 28
encourages the performer to win and beat others, not to enjoy the intrinsic rewards of the activity. Social psychologists research has indicated that extrinsic rewards can lead to over justification and a subsequent reduction in intrinsic motivation. Extrinsic incentives sometimes can weaken the motivation as well. In one classic study done by green and lepper children who were lavishly rewarded for drawing with felt tip pens later showed little interest in playing with the pens again.
Motivational Theories
The Incentive Theory of Motivation A reward, tangible or intangible, is presented after the occurrence of an action (i.e. behavior) with the intent to cause the behavior to occur again. This is done by associating positive meaning to the behavior. Studies show that if the person receives the reward immediately, the effect would be greater, and decreases as duration lengthens. Repetitive action reward combination can cause the action to become habit. Motivation comes from two sources; one self and other people. These two sources are called intrinsic motivation and extrinsic motivation, respectively. Motivation is the internal condition that activates behavior and gives it direction; and energizes and directs goal oriented behavior. The term is generally used for human motivation but, theoretically, it can be used to describe the causes for animal behavior as well. This article refers to human motivation. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specify needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less appa rent reasons such as altruism, morality, or avoiding mortality.
Drive Reduction Theory There are number of drive theories. The Drive Reduction Theories grows out of the concept that we have certain biological needs, such as hunger. As time passes the strength of the drive increases as it is not satisfied. Then as we satisfy that drive by fulfilling its desire, such as eating, the drive‟s strength
is reduced. It is based on the theories of Freud and the idea of feedback control systems, such as a thermostat. There are several problems, however, that leave the validity of the drive reduction theory open for debate. The first problem is that it does not explain how secondary 29
reinforces reduce drive. For example, money does not satisfy any biological or psychological need but reduces drive on a regular basis through a pay check second order conditioning. Secondly, if the drive reduction theory held true we would not be able to explain how a hungry human being can prepare a meal without eating the food before they finished cooking it.
Cognitive Dissonance Theory Suggested by Leon Festinger, this occurs when an individual experiences some degree of discomfort resulting from an incompatibility between two cognitions. For example, a consumer may seek to reassure himself regarding a purchase, feeling, in retrospect, that another decision may have been preferable.
Need Theories Need Hierarchy Theory Abraham Maslow‟s hierarchy of human needs theory is the one of the most widely
discussed theories of motivation. This theory can be summarized as follows:
Human beings have wants and desires which influence their behavior. Only unsatisfied needs influence behavior, satisfied needs do not. Since needs are many, they are arranged in order of importance, from the basic to the complex. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. The further the progress up the hierarchy, the more individually, humanness and psychological health a person will show.
The needs, listed from basic to the most complex are as follows:
Physiological Safety Belongingness Esteem Self Actualization
Herzberg’s Two Factor Theory Frederick Herzberg two factor theories, aka intrinsic and extrinsic motivation, concludes that certain factors in the workplace result in job satisfaction, but if absent, lead to dissatisfaction. The factors that motivate people can change over their lifetime, but “Respect for me as a person” is one of the top motivating factors at any stage of lif e. 30
He distinguished between:
Motivators: (e.g. challenging work, recognition, responsibility) which give positive satisfaction, Hygiene Factors: (e.g. status, job security, salary and fringe benefits) that do not motivate if present, but, if absent, result in demotivation.
This theory is sometimes called the “Motivator Hygiene Theory”
Self determination Theory Self determination theory, developed by Edward Deci and Richard Ryan, focuses on the importance of intrinsic motivation in driving human behavior. Like Maslow‟s hierarchical theory and others that built on it, SDT posits a natural tendency towards growth and development. Unlike these other theories, however, SDT does not include any sort of “Autopilot” for achievement, but instead requires active encouragement from the environment. The primary factors that encourage motivation and development are autonomy, competence feedback, and relatedness.
Cognitive Theories Goal Setting Theories Goal Setting Theory is based on the notion that individuals sometimes have a drive to reach a clearly defined end state. Often, this end state is a reward in itself. A goal‟s
efficiency is affected by three features: Proximity, Difficult and Specificity. An ideal goal should present a situation where the time between the initiation of behavior and the end state is close. This explains why some children are more motivated to learn how to ride a bike than mastering algebra. A goal should be moderate, not too hard or too easy to challenge (which assumes some kind of insecurity of s uccess).
Models of Behavior Change Social cognitive models of behavior change include the constructs of motivation and volition. Motivation is seen as a process that leads to the forming of behavioral intentions. Volition is seen as a process that leads from intention to actual behavior. In other words, motivation and volition refers to goal setting and goal pursuit, respectively. Both processes require self regulatory efforts.
31
Rewards and Recognition Scheme in NTPC Objectives •
To recognize and reward employees behaviour for enhanced motivation (It is also well established that a good behavior which gets rewarded gets reinforced).
•
To create a culture of excellence through Value Actualization and demonstration of leadership
•
To create role models at all levels for emulation and inspiration
•
To foster and nurture a culture of recognition and celebration in NTPC
•
To encourage overall development of employees through involvement in TQM initiatives and other Socio-Cultural activities
•
To encourage involvement in Corporate Social Responsibility efforts.
•
To promote exhibition of human values and NTPC Core Values
Schemes i.
Applause
ii.
Thank You Slips
iii.
Appreciation letter
iv.
STAR of the Month
v.
Employee of the Year
vi.
Vidhyut Awards
vii.
Power EXCEL Awards
viii.
PEARL Awards
ix.
ACE Awards
x.
Mentors Samman
xi.
Manveeyata Puraskar
xii.
Welcoming
xiii.
Bidding Farewell 32
Applause Objective: To appreciate a task well done / target achieved within stipulated time by an individual employee or group of employees in a section/department. Award: 'Standing applause'' is given to the Individual or the group of employees by inviting to section/ departmental meeting A list of people who have got applause in a particular month shall be displayed on the notice board/Local Web Page for a period of 01 month. Responsibility: Head of the dept/Sectional Head Applicability/Eligibility: Individual / group of employees within a section / department Criteria: To recognize any initiative/job well done by subordinate/ group in day-to-day functioning.
Thank You Slip
Eligibility: All employees Criteria: Any good work done by anyone in the department / group may be appreciated through feel good slips / a card. Recognition: Employee who wants to recognize another employee may leave a “Thank You Slip” on
the desk of such an employee or e-mail the same to him/her. This is an appreciation of one employee by another towards realization of NTPC Core Value “Mutual Respect & Trust”.
33
Appreciation letter
Objective To place on record good work done by an employee/group of employees for recognition and motivation. Applicability All employees up to the level of E7 Periodicity As frequently as possible. There is no limit on number of times an employee could be appreciated for good work. Reward Appreciation letter to the individuals/group of individuals shall highlight the specific contribution/instance.
Star of the Month
Objective To recognize consistent good work done by the employee(s). Applicability / Eligibility All non-executives Criteria Non-Executive, who has shown consistent punctuality, discipline, customer orientation, participation in TQM initiatives, team playing etc. Reward A small pin-up badge stating “STAR of the month” by HOD in presence of team members. Name of the employees with the photo should be put on notice boards.
34
Employee of the YEAR
Objective To recognize and reward exemplary performance for creating role models and a performance culture. Eligibility Non-Executives, who have got a minimum of two “STAR of the month” awards and four “Appreciation Letters” in a year
Criteria Non-Executives, who exhibit outstanding all round contribution through regular & active participation in various TQM initiatives, extra curricular activities, demonstrate additional skills etc. as per the given parameters Rewards Two levels of awards at each location i.e. unit / region / CC Unit level:
Rs. 2,000/- each
Department level: Rs.1000/- each (a) Unit level: Position no. 1 and 2 based on selection of all nominated employees from each department, for “Employee of the Year” reward.
(b) Departmental: All those who were nominated for the unit level employee of the year award but did not qualify for the same, would be considered based on their position for “Department Employee of the Year” reward. There would be only one
award in this category for each department.
Vidhyut Award
Objective To recognize & reward meritorious Non executive employees from amongst the entries of Shram Awards to Government of India Applicability / Eligibility The entries for Shram awards submitted to Govt. of India, but were not awarded. Criteria
35
Such of those entries, which did not get Shram Award, would be considered for this award. Reward - Letter of appreciation under the signature of Director (HR) - Cash Rewards Rank
No. of awards
Reward Amount (Rs.)
Name
1st
1
15,000
Vidyut Jyoti
2nd
2
10,000
Vidyut Punj
3rd
5
7,500
Vidyut Kiran
Power Excel Award
Objective To recognize excellence in discharging official duties & demonstration of NTPC core values. Applicability/Eligibility All executives upto E6, excluding HODs Criteria Innovations and improvements in his area of work.
Contribution towards group efforts
Demonstrates Core Values at work and during interactions
Should have received at least one 'Appreciation Letter' or Manveeyata Purskar
Reward - These awards shall be given under the name POWER EXCEL awards (Power Executives Excellence Awards )
Training in India ( upto 7 days as per choice of the executive.) 36
Letter of appreciation under the signature of BUH/GM (Proforma E-1) A cash Reward of Rs.5,000/-
PEARL Awards (Performance Excellence Awards for Regional Leadership)
Objective To recognize excellence in leadership & demonstration of NTPC core values . Applicability /Eligibility All HODs and E7 at units & Regional Headquaters and E7 & E7A at CC. Criteria Exhibition of Leadership qualities Achieving Excellence in his area of responsibility Demonstration of Core values Implementation of Strategic initiatives in HR, TQM, Cost control measures, Corporate Social responsibility etc. Encouraging Creativity, innovation Reward
The awards shall be given under the name PEARL (Performance Excellence Awards for Regional Leadership) Upto 10- days training of his choice in India & a cash reward of Rs.10,000/ Appreciation Letter under the signature of Concerned ED - Copy to be place in personal file/ PAR file.
37
ACE Award (Awards for Corporate Excellence)
Objective To recognize excellence in leadership & demonstration of NTPC Core Values Applicability/Eligibility All Heads of Project/Stations GMs in Regions and Corporate Centre Criteria Strategic leadership, Innovation, creativity and Knowledge Management Core Value And CSR. Reward -
These awards shall be given under the name ACE Awards (Awards for Corporate Excellence)
1 from Corporate Centre 2 from all Regions/Units/Proj./Stations -
up to 07 days of Training Abroad and a cash reward of Rs.15,000/-
-
-Letter of Appreciation to be Delhi.
presented in ECM by CMD Special functions In
Mentor Samman
Objective To recognize the active services of mentors in socio cultural integration of mentees with the company‟s environment. Applicability All mentors who have been attached with current batch of ETs for mentoring. Reward - A letter of appreciation – as per Pro forma –H - A token gift/memento of Rs.1,000/- each 38
- To be awarded on 5th Sept.
Manveeyata Puraskar
Objective To recognize good values exhibited by employees in official & social life. This shall include Human Values, Core Values (BCOMIT) of the Company for creating role models in the company. Applicability / Eligibility All employees upto E7 are eligible for this award. Criteria Should have exhibited an exemplary Value Reward Appreciation Letter A Gift of upto Rs. 1,000/- ( based on the merit of the case) No. of cases is left to the discretion of BUH/GM/ED at all locations
Welcome
Objective To welcome new joinees/transfer-in‟s for their socialization . Applicability / Eligibility All Employees Periodicity Within one week of the joining of an employee Procedure –
Welcome letter
–
Get-together for the new joinees / Transferees
39
Bidding Farewell
Objective To bid farewell to an employee on his/her Superannuation Applicability / Eligibility All Employees. Periodicity On the day of Superannuation Reward Procedure - Letter from BUH/ED highlighting his/her association with Organization -
A token gift of Rs.5,000/-
Get-together with employees of the concerned department, all HODs (Head Of Departments) and BUH (Business Unit Heads).
40
COMPANY PROFILE
41
NTPC Ltd. : In nutshell
THE TOTAL POWER COMPANY National Thermal Power Corporation Ltd., India‟s largest power utility, set up in 1975 with
prime objective of playing a leading role in Indian power scenario. NTPC has been the power behind INDIA`S sustainable power development since NOVEMBER 1975. Contributing 30% of the COUNTRY`S entire power generation. NTPC today lights up every fourth bulb in the country. It‟s one of the largest and the most efficient power
generation companies in the world. With ambitious growth plans to become a 75,000MW power company by 2017, NTPCthe largest utility of INDIS has already diversified into hydro sector. Further initiatives for greater organization transformation have been approved under PROJECT DISHA. NTPC is INDIA`S largest power generation company with an installed capacity of 21,435 (as March 31st, 2008). NTPC has also diversified into Hydro power, Coal mining, Power equipment manufacturing, Power trading and Power exchange. NTPC has been transforming into an integrated power major. Powered by a dynamic and dedicated workforce of more than 24000, it operates both coal based and gas/ liquid fuel based power stations across India. Firm in its commitment towards steering the overall power development in the country, with thrust on environment protection, the Govt. Of India has named NTPC as one of the nine jewels or “Navratna”, in acknowledgment of its contribution to India‟s economic
development.
42
Vision of NTPC: “A world class integrated power major, powering India’s growth, with increasing global presence.”
Mission of NTPC: “Develop and provide reliable power, related products and services at
competitive prices, integrating multiple energy sources with innovative and eco – friendly technologies and contribute to society.”
The Core Values (B-COMIT):
Business Ethics
Customer Focus
Organizational & Professional Pride
Mutual Respect and Trust
Innovation and Speed
Total quality for Excellence
Project Profile Coal Based power stations S. No.
Place
State
Capacity (MW)
1.
Singrauli
Uttar Pradesh
2,000
2.
Korba
Chhattisgarh
2,100
3.
Ramagundam
Andhra Pradesh
2,600
4.
Farakka
West Bengal
1,600
5.
Vindhyachal
Madhya Pradesh
3,260
6.
Rihand
Uttar Pradesh
2,000
7.
Kahalgaon
Bihar
1,840
43
8.
NTCPP
Uttar Pradesh
840
9.
Talcher Kaniha
Orissa
3,000
10.
Talcher Thermal
Orissa
460
11.
Unchahar
Uttar Pradesh
1,050
12.
Simhadri
Andhra Pradesh
1,000
13.
Tanda
Uttar Pradesh
440
14.
Badarpur
Delhi
705
15.
Sipat
Chhattisgarh
1,000
Gas/ Liq Fuel Based power stations 16.
Anta
Rajasthan
413
17.
Auraiya
Uttar Pradesh
652
18.
Kawas
Gujrat
645
19.
Dadri
Uttar Pradesh
817
20.
Jhanor – Gandhar
Gujrat
648
21.
Rajiv Gandhi CCPP Kayamkulam
Kerela
350
22.
Faridabad
Haryana
430
NTPC: In Depth NTPC Limited is the largest thermal power generating company of India. A public sector company, it was incorporated in the year 1975 to accelerate power development in the country as a wholly owned company of the Government of India. At present, Government of India holds 89.5% of the total equity shares of the company and FIIs, Domestic Banks, Public and others hold the balance 10.5%. W ithin a span of 31 years, NTPC has emerged as a truly national power company, with power generating facilities in all the major regions of the country. Based on 1998 data, carried out by Data monitor 44
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 t he world. NTPC Limited Formerly known as National Thermal Power Corporation. The Group's principal activities are engineering, construction and operation of power generating plants and providing consultancy to power utilities in India and abroad. The Group operates through two segments. Power Generation includes generation and sale of bulk power to SEBs/State Utilities. Others provide consultancy, project management and supervision, maintenance services, power trading and distribution of bulk power. The Group has generated 170.88 billion units of electricity in 2006
GROWTH AND DEVELOPMENT OF THE COMPANY Over the last three decades, NTPC has spearheaded development of thermal power generation in the Indian power sector. In this process, it has built a strong portfolio of coal and gas/liquid fuel based generation capacities. The company has made initial forays in the area of hydropower development and plans to have a significant share of hydropower in its future generation portfolio. Although NTPC is also offering technical services, both in domestic and international markets, thr ough its Consultancy Wing, the generation business would continue to be the single l argest revenue generator for NTPC. The Indian power sector is witnessing several changes in the business and regulatory environment. The legal and policy framework has changed substantially with the enactment of the Electricity Act 2003. In the foreseeable future, India faces formidable challenges in meeting its energy needs. Recently, a draft integrated energy policy has been issued, which addresses all aspects including energy security, access, availability, affordability, pricing, efficiency and environment. To meet the twin objectives of ensuring availability of electricity to consumers at competitive rates, as well as attract large private investments in the sector, a new Tariff policy has also been issued. The power sector thus offers a mixed bag of challenges and opportunities to players and NTPC would continue to review its business strategy and portfolio in light of these changes NTPC‟s core business is engineering, construction and operation of power generating
plants. It also provides consultancy in the area of power plant constructions and power generation to companies in India and abroad. As on date the installed capacity of NTPC is 27,904 MW through its 15 coal based (22,895 MW), 7 gas based (3,955 MW) and 4 Joint Venture Projects (1,054 MW). NTPC acquired 50% equity of the SAIL Power Supply Corporation Ltd. (SPSCL). This JV Company operates the captive power plants of Durgapur (120 MW), Rourkela (120 MW) and Bhilai (74 MW). NTPC also has 28.33% stake in Ratnagiri Gas & Power Private Limited (RGPPL) a joint venture company between NTPC, GAIL, Indian Financial Institutions and Maharashtra SEB Holding Co. Ltd. The present capacity of RGPPL is740MW. 45
NTPC‟s share on 31 Mar 2007 in the total installed capacity of the country was 20.18%
and it contributed 28.50% of the total power generation of the country during 2006-07. NTPC has set new benchmarks for the power industry both in the area of power plant construction and operations. It is providing power at the cheapest average tariff in the country. With its experience and expertise in the power sector, NTPC is extending consultancy services to various organizations in the power business. NTPC 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 and reduced barren land. The massive afforestation by NTPC in and around its Ramagundam Power station (2600 MW) has contributed reducing the temperature in the areas by about 3°c. NTPC has also taken proactive steps for ash utilization. In 1991, it set up Ash Utilization 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 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 its project s. Through its Rehabilitation and Resettlement programmes, the company endeavors to improve the overall socioeconomic 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. Recognizing its excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public Sector „Maharatnam‟- a potential global giant. Inspired by its glorious past and vibrant present, NTPC is well on its way to realize its vision of being “A world class integrated power major, powering India‟s growth, with increasing global presence”.
Developing and operating world-class power stations is NTPC‟s core competence. Its scale of operation, financial strength and large experience serve to provide an advantage over competitors. To meet the objective of making available reliable and 46
quality power at competitive prices, NTPC would continue to speedily implement projects and introduce state-of-art technologies.
Total capacity portfolio: India‟s generation capacity can be expected to grow from the current levels of about
120 GW to about 225-250 GW by 2017. NTPC currently accounts for about 20% of the country‟s installed capacity and almost 60% of the total installed capacity in the Central
sector in the country. Going forward, in its target to remain the largest generating utility of India, NTPC would endeavor to maintain or improve its share of India‟s generating
capacity. Towards this end, NTPC would target to build an overall capacity portfolio of over 66,000 MW by 2017.
Fuel / Energy mix for capacity addition: Currently, coal has a dominant share in the power generation capacities in India. This is also reflected in the high share of coal-based capacities in NTPC‟s current portfolio. With high uncertainties involved in Domestic gas/ LNG, both in terms of availability and prices, NTPC would continue to set up large pit-head coal based projects, including few integrated coal cum power projects. To reduce the dependence on fossil fuels, there is a need to push for renewable sources of power in the sector. NTPC would avail of opportunities to add hydropower to its portfolio subject to competitive tariffs. A first step in this direction has already been taken with the investment in Koldam Hydro Power Project. NTPC would continue to closely monitor developments on nuclear front also and be open to setting up around 2000 MW of Nuclear power generation capacity, possibly through a Joint Venture. As a leader in power generation, NTPC would also consider other energy sources such as biomass, cogeneration, fuel cells, etc for future development thereby reducing the dependence on thermal fuels. While a decision on the fuel/energy mix for NTPC in the future would be largely governed by their relative tariff-competitiveness, the fuel mix in 2017 may be different from the existing portfolio, though not very significantly.
Diversification along the Value Chain: NTPC has achieved the distinction of being the largest thermal generating company in India. In the past, this focus was adequate as the industry was highly regulated with limited diversification opportunities. Over last few years, the country has been facing acute shortages, both in coal and gas, severely affecting optimum utilization of its power stations and these shortages are likely to continue in future as well. This is in spite of the fact that India is one of the largest producers of coal in the World. To safeguard its competitive advantage in power generation business, NTPC has moved ahead in diversifying its portfolio to emerge as an integrated power major, with 47
presence across entire energy value chain. In fact, to symbolize this change, NTPC has taken on a new identity and a new name “NTPC Limited”. NTPC has recently diversified into coal mining business primarily to secure its fuel requirements and support its aggressive capacity addition program. In addition, NTPC is also giving thrust on diversification in the areas of power trading and distribution. Diversification would also allow NTPC to offer new growth opportunities to its employees while leveraging their skills to capitalize on new opportunities in the sector.
Establishing a Global Presence: To become a truly global company serving global markets, it is essential for NTPC to establish its brand equity in overseas markets. NTPC would continue to focus on offering Engineering & Project Management Services, Operations & Maintenance services, and Renovation & Modernization services in the international market. Establishing a successful services brand would be a precursor to taking higher investment decisions in different markets. Going forward, NTPC would continue to evaluate various options for strengthening its presence in global markets including setting up power generation capacity, acquisition of gas blocks etc.
Circa 2017: NTPC’s corporate profile: By the year 2017, NTPC would have successfully diversified its generation mix, diversified across the power value chain and entered overseas markets. As a result NTPC would have altered its profile significantly. Elements of the revised profile that NTPC would seek to achieve are:
Amongst top five market capitalization in the Indian market An Indian MNC with presence in many countries Diversified utility with multiple businesses Setting benchmarks in project construction and plant availability & efficie ncy Preferred employer Have a strong research and technology base Loyal customer base in both bulk and retail supply
A leading corporate citizen with a keen focus on executing its social responsibility.
48
OTHER AWARDS & ACCOLADES WON
Shell Helen Keller Award 2002 for promoting employment opportunities to disabled people.
Platts Global energy Award 2002 for commitment to community development.
CORE-BCSD 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 seven NTPC stations.
Best HR Practices Award 2002 instituted by Indian Society of Training & 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 Award of the Government of India to 12 stations.
Prime Ministers Shram award for the 17th year including two SHRAM RATNA.
Vishvakarma Award by Ministry of Labor, Government of India.
Climate Technology Initiative award.
MoU Excellence Award of Government of India.
CII Award for Excellence in Infrastructure.
Greentech Environment Excellence Award.
Best Employer National Award for the welfare of physically challenged people.
49
NTPC TOP LIST OF MOU AWARDS FOR EXCELLENCE IN PERFORMANCE:
NTPC Limited has been presented Scope Meritorious Award for Best Practices in Human Resource Management – Shri presented 2004-05 for Innovative Human Resource Management Practices well integrated with the business requirements of the Company. Sontosh Mohan Dev, Hon‟ble Minister of Heavy
Industries and Public Enterprises to Shri T. Sankaralingam, CMD, NTPC Limited in New Delhi, on 8th November 2006.
A mechanical engineer by profession Shri Chandan Roy is also Chairman, Ratnagiri Power Project Limited. He is also on the Board of Damoder Valley Corporation (DVC), Northern Coal Fields Limited (NCL) and Nuclear Power Corporation of India Limited (NPCIL).
On the occasion of Power Line magazine‟s Tenth Anniversary celebrations, on
11th October, 2006 in New Delhi, Mr. Sushi Kumar Shinde, and Union Minister of Power presented “Expert Choice Awards” to honor the leading achi evers in the power sector. NTPC was recognized as the "Best Organization in Central Sector".
STAKE HOLDERS
CENTRAL GOVT.
OIL FUNDING SUPPLIERS
S
B
U U
P
NTPC
P L
SEB’S
Y
COAL
E
I E
R
R STATE RAILWAYS
GOVT. EQUIPMENT
50
NTPC- HUMAN RESOURCE MANAGEMENT
NTPC HR VISION “TO ENABLE OUR PEOPLE TO BE A FAMILY OF COMMITTED
WORLD CLASS PROFESSIONALS, MAKING NTPC A LEARNING ORGANIZATION.”
Aligned to NTPC & the HR Vision
NTPC
HR To enable our people
To be one of the world’s
to be a family of committed world class professionals,
largest & best power utilities
making NTPC
powering India’s growth. a learning organization.
PMI Vision To become an institute of excellence as a global centre of education for power professionals to build world class com etencies
Director (HR) 51
Executive Director
HR Division
Power Management Institute
HR Recruitment
Policy
Promotion Appraisals
Employee Relation
&
Welfare
Employee Benefit
Noida Services
Group
Industrial Industrial
Engineering &
Establishment
52
NO. OF EXECUTIVE EMPLOYEES IN NTPC - EOC : GRADE WISE TOTAL GRADE
MALE
FEMALE
TOTAL
E1
27
18
45
E2
29
7
36
E2A
157
31
188
E3
198
30
228
E4
106
13
119
E5
127
11
138
E6
221
16
237
E7
287
15
302
TOTAL
1297
143
1440
53
DATA ANALYSIS
54
The data analysis has been done question wise as well as according to the question statements of the questionnaire. The present study is carried out by administering questionnaire of 13 questions and a sample of 300 employees/respondents.
Q1. I am aware of the various monetary and non monetary reward schemes of NTPC.
The majority of the employees agree that they are aware of various monetary and non – monetary reward schemes of NTPC (47% agree and 10% strongly disagree). However there are some employees who disagree, that, they are not aware about the various different reward schemes of NTPC even though it has been more than 5yrs that it has been introduced.
Q1 DISAGRE E 15%
STRONGL Y DISAGRE E 6%
STRONGL Y AGREE 10%
AGREE 47% NEITHER AGREE NOR DISAGRE E
The HR department and all the HOD’s should take corrective
measures to spread the awareness regarding these schemes, what are the different eligibility criteria and how to apply for these respective schemes. The freshers or new employees should be given enough information during the induction program itself.
Fig 1
55
Q2. I am aware about the basic criteria on which various awards are based.
Q2 STRONGLY DISAGREE 5%
As a result, the majority of employees are aware about the reward schemes, henceforth the majority are also aware about the criteria on which various awards are based. As we can see from the above statistics, 44% employees agree and 7% strongly agree that they are aware but even 24% employees are in a state that they neither they agree nor disagree, i.e. they are not really clear with the basic criteria of these rewards.
STRONGLY AGREE 7%
DISAGREE 20%
AGREE 44%
NEITHER AGREE NOR DISAGREE 24%
Fig 2
Q3.
Rewards are based on clear and objective criteria.
STRONGLY DISAGREE DISAGREE 6%
Q3
Many employees (almost 50%) believe that the rewards are based on clear and
STRONGLY AGREE 9%
13%
objective criteria. However there are some set of employees who disagree with the above statement, and for that the HR dept.
AGREE 40%
Along with their respective HOD’s need
to take corrective actions such as clearing their misconceptions or NEITHER AGREE NOR DISAGREE 32%
explaining in depth the various different criteria.
Fig 3
56
Q4.
Rewards are given as per criteria
STRONGLY DISAGREE DISAGREE 6%
Q4
Based on the above two questions
STRONGLY AGREE 8%
and pie chart on the right, more than 50% employees believe that the rewards are given as per criteria that
12%
they are aware of and which are mentioned in the HR Compendium. AGREE 44%
As the result of the researcher’s
observation, not many employees are happy with the current reward &
NEITHER AGREE NOR DISAGREE 30%
recognition system and hence such a negative result.
Fig 4
Q5.
Favouritism prevails when it comes to giving away awards
DISAGREE 21%
STRONGL Y DISAGREE 8%
Q5
STRONGL Y AGREE 6%
Based on the survey results, many employees AGREE 25%
believe that favouritism does play a vital role in anybody being rewarded. All the employees that are rewarded are either the favourites of their dept. Heads or make sure their achievements are highlighted to a higher
NEITHER AGREE NOR DISAGREE 40%
degree as that of their collegues.
Fig 5
57
Q6.
Deserving people are awarded.
STRONGL Y DISAGREE DISAGREE 8% 10%
Q6
STRONGL Y AGREE 10%
According to the survey, more than 50% employees think that deserving people are awarded but at the same time there are some employees who believe that people who are awarded are not deserving enough
AGREE 41%
NEITHER AGREE NOR DISAGREE 31%
and those employees who work hard but are not highlighted enough though deserve to be awarded.
Fig 6
Q7.
Rewards are given on time, as and when they become due.
STRONGL Y DISAGREE DISAGREE 6% 11%
Q7
STRONGL Y AGREE 7%
If we look at the survey results, employees do agree that they get rewarded but not on time. The statistics reveal that 45% (38 + 7) agree that employees get rewarded but a
AGREE 38%
large number of employees believe that the rewards lose its relevance as it is not given on time.
NEITHER AGREE NOR DISAGREE
Fig 7
58
Q8.
Awardees get adequate publicity
DISAGREE 16%
STRONGLY DISAGREE 5%
Q8
The statistics reveal that more than
STRONGLY AGREE 7%
50% employees believe that the awardees are publicised as and when they are rewarded / awarded. But if we look at the section of “neither agree nor disagree”, 29% employees
AGREE 43%
think that the employees who are rewarded are not publicised enough
NEITHER AGREE NOR DISAGREE
as they are not aware of people who are rewarded / awarded.
Fig 8
Q9.
Good performance is appreciated and recognized by top management.
STRONGL Y DISAGREE DISAGREE 6% 13%
Q9
STRONGL Y AGREE 10%
The survey revealed that people do get recognized as the deserving candidates get rewarded and the top management also recognises and
AGREE 41%
appreciates such employees so as to inspire other employees to follow the
NEITHER AGREE NOR DISAGREE
suit.
Fig 9
59
Q10. Good work doesn’t go unrecognized. STRONGL Y DISAGREE DISAGREE 6% 16%
Q10
STRONGL Y AGREE 10%
According to the statidstics, more than 50% people agree with the fact that good work done by them doesn’t go unrecognised. The
achievements are highlighted and in the
AGREE 42%
NEITHER AGREE NOR DISAGREE 26%
above few statistics have also proved that employees who deserve are rewarded duly.
Fig 10
Q11. Seniors share the credit of good work with their subordinates subordinates STRONGLY DISAGREE 6% DISAGREE 10%
Q11
STRONGLY AGREE 10%
There has been an eye opening revelation when it came to this question. Many employees believe that office politics play a role when it comes to senior sharing the good work with their subordinates.
AGREE 46%
However more than 50% employees do believe that their seniors share
NEITHER AGREE NOR DISAGREE
the credit with them.
Fig 11
60
Q12. Quantum of rewards is proportionate to one’s achievement.
Q12
STRONGL Y DISAGRE DISAGRE E E 7% 20%
STRONGL Y AGREE 5%
This particular statement has revealed the most negative aspect of rewards and recognition policy of NTPC. The employees
AGREE 26%
hardly think that quantum of rewards is proportionate to one’s achievement.
Even though they are rewarded for their performance and achievements it is not
NEITHER AGREE NOR DISAGRE E
proportionate to what they have achieved.
Fig 12
Q13. Performance linked monetary rewards (GI/ CI etc) are reasonable at NTPC.
STRONGLY DISAGREE 9%
Q13
STRONGLY AGREE 9%
Last but not the least, again the employees have shown their unhappiness and
DISAGREE 18%
discontentment when it comes to
AGREE 31%
performance linked monetary rewards. The employees, more or less want something more than what is being offered to them.
NEITHE R AGREE NOR DISAGR EE
Fig 13
61
RECOMMENDATIONS & SUGGESTIONS
62
After analyzing the questionnaire I have came out with cert ain recommendations for the company. While asking the questions to the employees I came to know that they want something different from the present reward scheme.
On the basis of my research I would like to recommend to the human resource team of the organisation that:
Employees want that some new and challenging work should be given t o them as rewards. Means, according to their personal interest the project should be given to them. The criteria of giving the reward should be transparent. Means, the employee wants that they should know what are the actual criteria of selecting an employee for the reward. Most of the employee thinks that their project manager does not communicate them the reward policies in their project. So, the HR team should have to take some measures to remove this drawback. Few of the employees do not know the current reward schemes running in the organisation. So, the HR department should look for the various different ways through which they can easily tell about the reward schemes to the employees. Most of the employees think that the reward should be given to them in team meetings rather than individually or in team mails. Most of the employees think that after a certain time period some new reward schemes should be introduced in the company.
63
CONCLUSION
64
After analyzing the questionnaire I have reached to certain conclusions that the employees are satisfied with the reward schemes running in the organization. Most of the employees think that the rewards are very crucial in the organization because it helps in increasing the motivation level of the employee which ultimately leads in increasing the performance of the employee. I have reached to certain more conclusions which are as follows:
Rewards help in increasing the performance level After completing various analysis the first point which has been proved that rewards as motivation helps in increasing the performance level of an employee. Right rewards with right criteria to right candidate helps in increasing the performance of an employee.
Rewards help in motivating the employee Rewards play a critical role in motivating the employees. Presence of rewards in the company motivates the employee more. Rewards are given for their performance which makes them motivated to work harder to get more and more rewards.
Rewards affect the job After doing certain analysis I have found that few of the employees thinks that rewards affects the job. Not in the short run but in the long run. So, there should be rewards present in the companies.
Non monetary Rewards are preferred more than the monetary rewards After doing all the analysis work I had came out with a conclusion that employees in the organisation prefers non monetary rewards than the monetary rewards. According to them non monetary rewards has more impact than the monetary rewards.
Ultimate benefit to the company According to the employees of the organisation if more and more attractive reward schemes will be placed in the company than they will be highly motivated which will increase their performance and ultimately it will give benefit to the company.
65
REFERENCES / BIBLIOGRAPHY
66
Websites
http://books.google.co.in/books?id=SBNbFCBtcFsC&pg=PA168&dq=rewards+a nd+recognition&lr=#PPA167,M1 http://books.google.co.in/books?id=J2eRTQXWQlQC&pg=PA1&dq=rewards+an d+recognition&lr=#PPA13,M1 http://books.google.co.in/books?id=6OCDtSU1nwC&pg=PA1&dq=reward+strategies&lr=#PPA11,M1 http://books.google.co.in/books?id=keiVwGxm3i0C&pg=PA363&dq=rewards+an d+recognition+to+employees&lr=#PPA371,M1 http://books.google.co.in/books?id=qUbqdAIOA9YC&printsec=frontcover&dq=re wards#PPR9,M1 http://www.google.co.in/search?q=reward+and+recognition+filetype:pdf&hl=en&lr =&start=10&sa=N http://www.google.co.in/search?hl=en&q=project+report+on+rewards&meta=&aq =f&oq= http://www.answers.com/topic/employee-reward-and-recognition-systems http://www.google.co.in/search?q=rewards+recognition+workplace+filetype:pdf& hl=en&lr=&start=20&sa=N http://wilderdom.com/OEcourses/PROFLIT/Class6Qualitative1.htm http://www.socialresearchmethods.net/kb/qualmeth.php http://en.wikipedia.org/wiki/Quantitative_research http://www.okstate.edu/ag/agedcm4h/academic/aged5980a/5980/qualrsch/QUAL RSCH/sld017.htm
E- Books
Just Reward Yourself Recognizing and Rewarding The manager guide to Rewards How to Recognize the employees
Search Engine
Google
67
ANNEXURE
68
