Human Resource Management Practices at the National thermal Power Corporation (NTPC) in India
ICMR HOME | Case Studies Collection
Case Code : HROB073
Case Length : 24 Pages
Period : 2000-2005
Pub. Date : 2005
Teaching Note : Available
Organization : National Thermal Power Corporation
Industry : Utilities
Countries : India
To download Human Resource Management Practices at the National thermal Power Corporation (NTPC) in India case study (Case Code:
HROB073) click on the button below, and select the case from the list of available cases:
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges
Human Resource and Organization Behavior Case Studies
» HRM Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
Analysts wondered what made NTPC so special that it could attract talent in an environment of high paying software companies and also other multinational players operating in India.
NTPC was not only India's largest thermal power generating company but was also the sixth largest thermal generator8 globally, and the second most efficient in capacity utilization in the world in terms of Terrawatt hours (TWh).9
According to analysts, NTPC changed the oft-held perception that as a public enterprise it would have a laid-back organizational culture. NTPC had a high focus on training and development and merit was an important consideration for career growth. Its achievement was particularly noteworthy as it had successfully developed a challenging work culture even though it was 90% government-owned.
NTPC was set up in the year 1975, as a thermal power generating company, with a view to augmenting power generated by the State Electricity Boards (SEBs)10 in order to bridge the wide gap between the demand and supply of power in the country.
At this time, the total ownership of NTPC rested with the Government of India (GoI). In the 1980s, the company established thermal power stations across the country. In 1987-88, NTPC was among the first public sector enterprises to start a Memorandum of Understanding (MOU) system11 with the GoI.
In the year 1991, the Indian economy witnessed two major trends, that of liberalization and privatization. The GoI encouraged the entry of private players as power utilities. In 1991, NTPC faced a crisis with the arrears of SEB dues increasing continuously and the World Bank12 refusing to lend further funds to the company. The company experienced a severe liquidity crisis and employee morale had hit rock bottom...