Human Resource Management Practices at the National thermal Power Corporation (NTPC) in India
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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
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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.
HR Practices at NTPC
NTPC's human resource policy has been closely aligned to its corporate vision of becoming one of the world's best power utilities. Its HR vision was formulated with the aim of "enabling the employees to become a family of committed world class professionals thus making the company a learning organization."
The company identified competency, commitment, culture and system as the four pillars of its human resource strategy. In relation to its human resource management, the company's corporate plan stated that it aimed to "create a culture of team work, empowerment and responsibility to convert knowledge into productive action with speed, creativity and flexibility" and thereby gain a knowledge-based competitive edge.
HUMAN RESOURCE PLANNING
Human resource planning at NTPC was undertaken in accordance with organizational objectives and in line with its organizational culture...
The Power of HR: The Payoff
NTPC successfully built a culture that combined freedom with responsibility. This showed in the scores the company got in various workplace surveys (Refer Exhibit XIII for award details) and was also reflected in the overall performance of the company (Refer Exhibit XIV for key financial indicators).
NTPC contributed to raising the efficiency levels in the Indian power
industry as a whole.
The company's PLF of 87.5%, was well above the national average of 73%. NTPC was ranked the second most efficient power generator in the world. Credit rating agencies recognized the company's excellent financials, with most of its instruments enjoying high ratings from reputed agencies like Crisil, Standards and Poor's, etc.
The World Bank applauded the company for its impressive financial management record. The Audit reports from the World Bank stated, "NTPC
has demonstrated that Government-owned power utilities can be operated
at efficiency levels comparable to those of privately owned utilities in
India and well-run utilities outside India.
NTPC's record in plant construction, cost containment and
operating efficiency has been exceptional, while as an institution it has broken
new ground in organization and management, successfully navigated the transition
from constructions to operating company and generally coped quite well with the
problems of rapid expansion."...
Excerpts Contd... >>