Perfomance Management System in Ntpc

ACKNOWLEDGEMENT This project would not have been possible without the help of many people who have contributed their efforts in this project. Firstly, I would like to convey my profound indebtness to my project guide at NTPC ltd. , MR. TANMOY DUTTA, HR dept. , for his invaluable advice, guidance and time that he has offered in the completion of this project. This project would not have been possible without his guidance and support. I would also like to thank Mr.BADRUDDIN ANSARI, NTPC ltd. who also helped me in the fulfillment of this project. Not to forget, the employees of NTPC, the project would not have been completed if they not helped me with filling up the questionnaires. Finally, I would like to thank our Mentor â€Å"Miss tejbir kaur† for her valuable guidance and suggestions in the making and improvement of this project report MOUMITA BOSE EXECUTIVE SUMMARY PACE is the performance management system for the executive employees at NTPC.This system was implemented in th e year 2004 in NTPC. Earlier the performance appraisal system was more of a subjective type of system i. e. , earlier there weren’t any set targets or key performance areas for the employees, it was just the performance they made and the feedback on it was given to the employees on a yearly basis. Now the PACE has become more objective and behavior based, i. e. , there are set KPA’s for the employees and scores for the core values exhibited in the work behavior.The key performance areas include; Technical knowledge, Business attitude, Strategic thinking, Resource management, Communication skills, System thinking, Interpersonal competencies, Employment skills There is a basic question that would come to anyone’s mind that why is PACE only for the executive employees and why not for the non-executive employees as well. It is so because the employees at the non-executive levels may not be able to understand the whole PMS system as some of them at different levels m ay not be that educated to understand the system; i. . , they might not be well-versed with the system, and therefore will not be able to work according to the system and therefore they have a different appraisal system. NTPC has been striving to meet the objective of developing performance culture through this system called â€Å"Performance And Competence for Excellence† i. e. â€Å"PACE†. This report concentrates on the study of the â€Å"Performance and Competence for Excellence† system at NTPC and to check its effectiveness and further to suggest and recommend any possible ways to improve and strengthen its PMS.To check the effectiveness of this system a survey with a help of questionnaires had been conducted. Around 60 executive employees had filled up the questionnaire with the help of which analysis had been done. OBJECTIVES OF THE STUDY The objective of the study is basically to know about the effectiveness of performance management system – PACE at NTPC. This objective has been further divided into the following key areas; * To carry out an assessment on the performance appraisal of the company and what kind of performance management system has been implemented in the company. To examine the gap between the required performance and the actual performance. * To determine the key places in the performance management system of the company which are supposed to be enhanced. * To forecast the performance management system at NTPC. * To find out the effectiveness of performance management system on NTPC. * To find out key points in satisfaction and improve the ways of satisfying the employees. * To provide an overall sketch of how effective the performance management system has been. SCOPE OF THE STUDY The present study is confined to the Executive employees of NTPC Ltd. wherein all the executives of different sections of NTPC come under the purview of this study. All the major aspects that affect the assessment of performance a ppraisal needs in an organization fall under the purview of the study. CONTENTS: S. NO| TOPIC| PAGE NO. | 1. | Acknowledgement| | 2. | Executive summary| | 3. | Objective of the study| | 4. | Scope of the study| | 5. | Chapter 1 COMPANY PROFILE| | | 1. 1 A brief introduction of the organization| | | 1. 2 Vision and mission of the organization| | | 1. 3 The core values| | | 1. 4 Corporate objectives| | | 1. 5 List of awards| | | 1. HR vision| | | | | | | | 6. | Chapter 2 | | | 2. 1 Research topic(Introduction)| | | 2. 2 PMS at NTPC (PACE)| | | | | 7. | Chapter 3 LITERATURE REVIEW| | | | | 8. | Chapter 4 RESEARCH METHODOLOGY| | | 4. 1 Sampling Design| | | 4. 2 Data used in study| | | 4. 3 Tool and Techniques used| | | | | 9. | Chapter 5 DATA ANALYSIS AND MAJOR FINDINGS| | | 5. 1 Question wise analysis and interpretation| | | 5. 2 Grade wise analysis and interpretation| | | 5. 3 TEST(SPSS)| | | 5. 4 Major Findings| | | 5. 5 Limitations| | | | | 10. | Chapter 5 SUGGESTIONS AND CONCLUSIO N| | 11. | BIBLIOGRAPHY| |CHAPTER 1 INTRODUCTION STUDY OF ORGANIZATION’S HISTORY & ORGANISATION CULTURE Overview of Organization: It was started in1975, NTPC the largest power company and it has been consistently powering the growth of India. With an installed capacity of the company is 32,694 MW with 15 coal based and 7 gas based stations, located across the country . NTPC today contributes 28. 36 % of the nation's power generation with only 18. 09 % of India's total installed capacity. An ISO certified company, it is second most efficient in capacity utilization and world’s 6th largest thermal power generator.It is expected that by 2017, the power generation portfolio have a diversified fuel mix with coal based capacity of around 53000 MW, 10000 MW through gas, 9000 MW through Hydro – generation, about 2000 MW from nuclear sources and around 1000 MW from Renewable Energy Sources (RES). The corporation recorded a generation of 218. 84 billion units (Bus) in 200 9 – 10,through 15 coal based ,7 gas based power plant and joint venture projects spread all over the country. Although the company has 18. 09% of the total national capacity it contributes 28. 6% of total power generation because its focus is on high efficiency. NTPC has been awarded as one of the top most â€Å"Best employer â€Å"of the country for the year 2003, 2004,2005. In 2008 NTPC has been rated no. 1 best workplace among other large organization in India . In NTPC culture the concept of Corporate Social Responsibility(CSR) is deeply ingrained. NTPC try to develop mutual trust with the communities that surround its power stations. These achievements have been made possible by the 24955 strong and motivated work force who with their dedication are ever willing to take NTPC to greater heights.Profile of the Company: In 1975, after the 4th five year plan, the company power generating capacity that is available in the country was around 17000 MW too less to meet the req uirement for country’s industrial development. To top it all, a bad become worse cost crunch was faced due to commissioning delays and still become worse by inefficient functioning of installed unit and thus bold strategic measures were called for acce. NTPC thus became a company listed with Government holding 89. 5% of the equity share capital and rest held by Institutional Investors and Public.NTPC is among the largest five companies in India in terms of market capitalization At present, Government of India holds 84. 5% of the total equity shares of the company and the balance 15. 5% is held by FIIs, Domestic Banks, Public and others. Within a span of 30 years, NTPC Ltd. In 2007 NTPC was the world 2000 largest company which occupies 411th place in Forbes list. It has also been awarded as one of the â€Å"Best Companies to Work for in India† by Mercer Consulting – Business Today Survey 2004. NTPC have come a long way since that day in spite of facing a severe l iquidity crunch in 1991-1992.NTPC’s first 200 MW power plant was commissioned in Singrauli within 48 months of starting. NTPC, true to the expectation, played a key role in the development of the sector and has emerged as the power utility, lighting every third bulb in the country. Powering the growth of the country was the prime motto and the vision had been to make available power in plenty. The growth of the organization had been phenomenal and with the passage of time the batons of leadership started changing to new hands at different level of organization.Therefore as it happens in large families there is need for continuous reminder of the values and tradition so that the performance culture remain unaffected and all the member of the organization share the values and vision and live the same for realizing the vision of the company. As a part of HR-business strategy organization focused on evolving a codified vision and values statement to be the guiding compass for all the employees. The first exercise was made in 1995-96 and the same were widely shared with all the sections of employees. Vision of NTPC: â€Å"To be the world’s largest and best power producer, powering India’s growth. Mission of NTPC: â€Å"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 (BE-COMITTED): B| -| Business Ethics| E| -| Environmentally & Economically Sustainable| C| -| Customer Focus| O| -| Organisational & Professional Pride| M| -| Mutual Respect & Trust| M| -| Motivating Self & Others| I| -| Innovation & Speed| T| -| Total Quality for Excellence| T| -| Transparent & Respected Organisation| E| -| Enterprising | D| -| Devoted|Corporate Objectives: In pursuance of the Vision and Mission, the following are the Corporate Objectives of NTPC: To realize the vision and mission, eig ht key corporate objectives have been identified. These objectives would provide the link between the defined mission and the functional strategies. * Business Portfolio Growth * To further consolidate NTPC’s position as the leading thermal power generation company in India and establish a presence in Hydro power segment. * To broad base the generation mix by evaluating conventional and non – conventional sources of energy to ensure long run competitiveness and mitigate fuel risk. To diversify across the power value chain in India by considering backward and forward integration into areas such as power trading, transmission, distribution, coal mining, coal beneficiation, etc. * To establish a strong services brand in the domestic and international markets. * Customer Focus * To foster a collaborative style of working with customers, growing to be a preferred brand for supply of quality power. * To expand the relationship with existing customers by offering a bouquet of services in addition to supply of power e. g. trading, energy consulting, distribution consulting, management practices. To expand the future customer portfolio through profitable diversification into downstream businesses, inter alia retail distribution and direct supply. * Ensure rapid commercial decision making, using customer specific information, with adequate concern for the interests of the customer. * Performance Leadership * To continuously improve on project execution time and cost in order to sustain long run competitiveness in generation. * To operate and maintain NTPC stations at par with the best – run utilities in the world with respect to availability, reliability, efficiency, productivity and costs. To effectively leverage information technology to drive process efficiencies. * To aim for performance excellence in the diversification businesses. * To embed quality in all systems and processes. * Human Resource Development * To enhance organizational perform ance by institutionalizing an objective and open performance management system. * To align individual and organizational needs and develop business leaders by implementing a career development system. * To enhance commitment of employees by recognizing and rewarding high performance. To build and sustain a learning organization of competent world – class professionals. * To institutionalize core values and create a culture of team – building, empowerment, equity, innovation, and openness which would motivate employees and enable achievement of strategic objectives. * Sustainable Power Development * To contribute to sustainable power development by discharging corporate social responsibilities. * To lead the sector in the areas of resettlement and rehabilitation and environment protection including effective ash – mutilation, peripheral development and energy conservation practices. To lead development efforts in the Indian power sector through efforts at policy advocacy, assisting customers in reform, disseminating best practices in the operations and management of power plants etc. * Research and Development * To pioneer the adoption of reliable, efficient and cost – effective technologies by carrying out fundamental and applied research in alternate fuels and technologies. * To carry out research and development of breakthrough techniques in power plant construction and operation that can lead to more efficient, reliable and environment friendly operation of power plants in the country. To disseminate the technologies to other players in the sector and in the long run generating revenue through proprietary technologies. TOTAL CAPACITY TOTAL GENERATION NTPC 28840 MW All India 130558 MW NTPC 552. 712BUs All India 218. 84 BUs STATIONS -WISE GENERATION 2009-10| STATIONS| FUEL TYPE| CAPACITY(MW)| GEN. (MU)GROSS| NORTHERN REGION| | 5490| 45515| Singrauli| Coal| 2000| 16264| Rihand| Coal| 2000| 16743| Unchahar| Coal| 1050| 8952| Tanda| C oal| 440| 3555| National capital region 4347 29285| Badarpur| Coal| 705| 5108|Dadri| Coal| 1330| 7829| Anta| Gas| 413| 3002| Auraiya| Gas| 652| 4528| Dadri| Gas| 817| 5607| Faridabad| Gas| 430| 3212| Western Region 7653 62532| Korba| Coal| 2100| 17955| Vindhayachal| Coal| 3260| 27586| Sipat| Coal| 1000| 8175| Kawas| Gas| 645| 4327| Jhanor gandhar| Gas| 648| 4488| Eastern region 7400 48974| Farakka| Coal| 1600| 10239| Kahalgaon| Coal| 2340| 11314| Talcher-Kaniha| Coal| 3000| 23759|Talcher-Thermal| Coal| 460| 3662| Southern Region 3950 32533| Ramagundan| Coal| 2600| 21595| Simhadri| Coal| 1000| 8521| Rajiv Gandhi CCP| Liquid Fuel| 350| 2418| TOTAL 28840 218840| NTPC PLF Vs Average PLF Of other Generators in India Growth in Generation NTPC vs Rest of India FINANCING OF NEW PROJECTS The capacity addition programs shall be financed with a debt to equity ratio of 70:30.Directors of NTPC believe that internal accruals of the company would be sufficient to finance the equity component for t he new projects. Given its low gearing and strong credit ratings, your company is well positioned to raise the required borrowings. NTPC is exploring domestic as well as international borrowing options including overseas development assistance provided by bilateral agencies to mobilize the debt required for the planned capacity expansion program. During the year 2009-10, NTPC has tied up loans of Rs. 168,190 million including a large ticket loan of Rs. 85,000 million with State Bank of India and Rs. 7,500 million with Canara Bank for part funding of debt requirement in respect of cap ex for next 3 years. In addition, loans amounting to Rs. 55,690 million have also been tied with other banks to fulfill the debt requirement for next three years. Bonds amounting to Rs. 15,000 million were raised from domestic market for financing the capital expenditure and refinancing of the loans. FIXED DEPOSITS The cumulative deposits received by NTPC from 277 depositors as at march 31st, 20210 stoo d at 13. 39 million. Further, an amount of Rs 4 million has not been claimed on maturity by 33 depositors as on that date.FUEL SECURITY coal supplies NTPC has signed Long Term Model Coal Supply Agreement ( CSA) with Coal India Limited ( CIL) on May 29, 2009 for supply of coal to its stations for 20 years. Based on the revised model CSA, coal agreements have been signed with the various subsidiary coal companies of CIL by coal based stations except Farakka and Kahalgaon. Additional 7. 35 MMT of coal has been tied up with CIL and singareni collieries Co. Ltd for Farakka, Kahalgaon and other projects. This include 0. 55 MMT of coal procured through E- auction. During the year 2009-10 NTPC has received 136. million tonnes of coal consisting of domestic coal of 129. 9 million tonnes ( about 4. 5% higher than the coal received in previous year) in imported coal to the tune 6. 3 million tonnes, at the stations. During 2009-10, NTPC has entered into agreement with MMTC for supply of about 1 2. 5 MMT of imported coal which is highest ever in NTPC till date. Further, in order to bridge the short fall in coal supply, Central Electricity Authority advised the power utilities to set target for import of coal during 2010-11 NTPC has been advised by CEA to place the orders for import of coal aggregating to 13. 0 Mts during 2010-11. GAS SUPPLIES During the year 2009-10 NTPC received 13. 8 MMSCMD of gas/RLNG as against 10. 75 MMSCMD received during 2008-09 registering an increase of 29. 12%. the gas off take in 2009-10 includes 9. 08 MMSCMD APM/PMT gas, 4. 45 MMSCMD RLNG and 0. 35 MMSCMD of KG D6 basin gas. NTPC renewed APM gas agreement up to the year 2021 PMT gas agreements up to the year 2019 for its gas station. NTPC has also signed long term contract for supply of RLNG of 2. 0 MMSCMD on firm basis and 0. MMSCMD on fall back basis with GAIL for a period of 10 years for NCR gas station viz Anta, Auraiya, Dadri and Faridabad. Further, Government Of India allocated additional gas 4. 46 MMNSCMD form KG-D6 basin. Out of this quantity, 1. 81 MMSCMD has already been tied up and the balance would be tied up during the year 2010-11. NTPC has arranged for tying up of spot RLNG on reasonable endeavour basis based on requirement. Also, NTPC has fallback RLNG supply agreements at pooled price with GAIL, AIOCL, BPCL and GSPCL. DEVELPOMENT OF COAL OF MINING PROJECTCoal mining being integral to NTPCs fuel strategies, is being developed in project mode all notifications for mining area land acquistion have been completed for Pakri Barwadih, Chatti-Barriyatu, Keredari and Talipalli coal blocks. Rehabilitation action plans were approved by board for Pakri Barwadih, Chatti- Barriyatu and Keredari coal blocks and disbursement of land plant compensation commenced with approval of mining plan for Dulanga (7MTPA) and Talaipalli (18MTPA) by ministry of coal this year, mining plan approval total 53 MTPA was recived.Enviornmental clearance was accorded for Pakri- Barwadih, Chat ti- Barriyatu and Keredari coal blocks. Stage-l forest clearance for Pakri barwadih coal block was accorded by MOEF. NTPC has tied up with NESCD for permanent power arrangement for coal mining project. With completion of detailed exploration in two coal blocks that is Talaipalli which was unexplored and Dulanga which was partly explored, Geographical Reports are available for all coal blocks. NTPC has taken a no. Of CSR measures for the benefit of the people around its coal mining sites.Under community development activities, it is planned to set up an ITI at Barkagaon district Hazaribag, Jharkhand and also to adopt and upgrade another ITI at Pussore district Raighar, Chattisghar besides undertaking other community development activities. OTHER INITIATIVES FOR SECURING COAL SUPPLIES To leverage the strength of established players in mining and related areas, NTPC has formed following joint venture companies . Name of the company| J V Partners| Purpose| CIL NTPC Urja Private Limited (incorporated on 27. 04. 010)| Coal India Limited| For Undertaking the Development, O&M of Brahmini and Chichro Patsimal coal blocks and integrated power projects| NTPC SCCL Global Ventures pvt Ltd, (incorporated on 31. 07. 2007)| The Singareni Collieries company Ltd. | For undertaking development and O&M of coal blocks in India and abroad| International Coal Ventures Pvt. Ltd. (incorporated on 20. 05. 2009)| SAIL, CIL, RINL and NMDC| For exploring various opportunities in Australia, Mozambique, Canada , Indonesia and USA, etc for acquisition of stake in coal mining and thermal coal mines. | Exploration ActivitiesUnder NEPL 7,company has been allotted one block at combay basin as a sole operator and three blocks out of which two blocks are in KG basin and another in Andaman, as a member of consortium led by ONGC with 10% participating interest in each block. Renovation & Modernization(R & M) NTPC undertakes R&M under project mode with focus on feasible and cost effective technology upgrade,efficiency improvement to bring the latest design to old vintage unit . It gi ves an opportunity to leverage the technological advancement which has taken place in power industry so as to continue economical power generation.It may also help to reduce emission to green house gases and avail clean Development Mechanism benefits apart from life extension of plants.. Apart from the above ,Company is providing consultancy services for R&M of old units of state electricity boards through a department â€Å"ARDP-R&M†. Vigilance Company is striving to bring more transparency to its business processes and as a step in this direction has signed a memorandum of understanding with Transparency International India December 2008 . The Integrity Pact is being implemented for all contracts having value exceeding Rs 100 millions.Two independent External Monitors have been nominated by the Commission for all contracts values exceeding Rs 1000 million. Human Resource Management Company takes pride in its highly motivated and competent human resource that has contributed its best to bring the company to its present heights. The productivity of employees is reflected in the consistent improvement of MAN- MW ratio of the year. The overall Man MW ratio for the year 2009-10 excluding JV / subsidiaries capacity is 0. 82 and 0. 80 including capacity of JV /subsidiary.Generation per employee has increased to 9. 22 MUs registering an increase of 5. 37 % over the last year. The total employee strength of the company stood that 24,955 as on 31. 3. 2010 against 24,713 as on 31st march 2009. The attrition rate executives during the year reduced to 1% from 1. 88% from the previous year. | Fiscal 2010| Fiscal 2009| NTPC| Number of employees| 23743| 23639| Subsidiaries & Joint Ventures| Employees of NTPC in subsidiaries & Joint Ventures| 1212| 1074| Total employees| 24955| 24713| EMPLOYEE RELATIONDuring the year employees relation scenario in the company continued to be conduciv e marked by industrial harmony and mutual trust. Regular interactions takes place amongst the management and apex forums of workmen called National Bipartite committee and with the executive forum named NTPC Executive Federation of India. Employees participation in management has been boosting morale of employees. The process of pay revision of wage and benefits structure for employees in executive category and workmen category was completed on 16. 09. 2009 and 7. 07. 2010 respectively TRAINING AND DEVELOPMENTInline with its long term objectives of being a learning organization company has policy of continuously investing in training and development of not only its own employee but also of its professionals of the power sectors. The imparts training at its sites as well as at the corporate level in diverse areas including general management,power station operations and maintenance,project constructions,erection and commissioning and information technology. Training imparted is alway s in tune with new emerging needs in diverse areas like nuclear ,coal mining,hydro power,super critical technology,power trading etc.Growth of NTPC: NTPC has set new benchmarks for the power industry both in the area of power plants construction and operations. It is providing power at the cheapest average tariffs in the country. With its experience and expertise in the power sector, NTPC is extending Consultancy services to various organizations in the power businesses. NTPC is committed to the environment generating power at minimal environment 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 of NTPC in and around its Ramakundam power station (2100 MW) has contributed in reducing the surrounding area temperature by about 3 degree c. NTPC has also undertaken proactive steps for ash utilization. In 1991, it se t 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, building material. â€Å"centre for power efficiency and environment protection (CENPEEP)† has been established in NTPC with the assistance of United states Agency for International Development. (USAID).Company is efficiency oriented, eco-friendly and eco-nurturing initiative a symbol of NTPCs concern towards environment 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 projects. Through its Rehabilitation and Resettlement program the company endeavors to improve the overall socio-economic status of project affected population. NTPC was among the first Public sector enterprises to enter into a Memorandum of understanding (MOU) with the Governmen t in 1987-88.NTPC has been placed under the ‘Excellent category' (the best category) every year since the MOU system became operative. Recognizing the excellent performance and vast potential, Government of the India has identified NTPC as one of the jewels of Public sector Maharatnas- a potential global giant. Inspired by its glorious past and vibrant, NTPC is well on its way to realize its vision of being â€Å"one of the world's largest and best power utilities, powering India's growth†. NTPC registered yet another impressive performance and has earned a provisional profit of 8826. 6 crore in financial year 2010-11 as compared to 8728. 2 crore last year. The highest ever capacity addition of 2490 MW (including 500 MW in JV) and the operational excellence is achieved during the financial year. There are sixteen coal based stations of NTPC which has achieved a plant load factor of more then 88. 29%. Overview- Installed capacity Growth in Capacity: – Installed ca pacity reaches 34,194 MW ( including 3364 MW under Jvs) – Highest ever capacity addition of 2490 MW (including 500 MW IN JV) – 14,748 MW is under construction at 15 locations. Projects| No. f projects| Commissioned capacity (MW)| Coal | 15| 24395| Gas/ liquid fuel| 7| 3955| Total| 22| 28350| Owned by JVCs Coal and gas | 4| 2294| Grand Total| 26| 30644| Regional Spread of generating Facilities: Region | Coal| Gas| Total| Northern| 7035| 2312| 9347| Western| 6360| 1293| 7653| Southern| 3600| 350| 3950| Eastern| 7400| -| 7400| JVs| 814| 1480| 2294| Total| 25209| 5435| 30644| SL No. | Coal based (owned by NTPC)| State| Commissioned Capacity (MW)| 1| Singrauli| Uttar Pradesh| 2000| 2| Korba| Chhattisgarh| 2100| 3| Ramakundam| Andhra Pradesh| 2600| | Farakka| West Bengal| 1600| 5| Vindhyachal| Madhya Pradesh| 3260| 6| Rihand| Uttar Pradesh| 2000| 7| Kahalgaon| Bihar| 2340| 8| Dadri| Uttar Pradesh| 840| 9| Talcher Kaniha| Orissa| 3000| 10| Unchahar| Uttar Pradesh| 1050| 11| T alcher Thermal| Orissa| 460| 12| Simhadri| Andhra Pradesh| 1000| 13| Tanda| Uttar Pradesh| 440| 14| Badarpur| Delhi| 705| 15| Sipat- II| Chhattisgarh| 1000| Total| 24,395| Coal based Joint Ventures: SL No. | Coal Based (owned by JVs)| State| Commissioned Capacity| 1| Durgapur| West Bengal| 120| 2| Rourkela| Orissa| 120| | Bhilai| Chhattisgarh| 574| Total| 814| Hydro based Power Projects (Under Implementation): NTPC has increased thrust on hydro development for a balanced portfolio for long term sustainability. The first step in this direction was taken by initiating investment in Koldam Hydroelectric Power Project located on Satluj river in Bilaspur district of Himachal pradesh. Two other hydro projects construction are Tapovan Vishnugad and Loharinag Pala. On all these projects construction activities are in full swing. SL No. | Hydro Based| State| Approved Capacity (MW)| | Koldam (HEPP)| Himachal Pradesh| 800| 2| Loharinag Pala| Uttarakhand| 600| 3| Tapovan Vishnugad (HEPP)| Utta rakhand| 520| Total| 1920| Gas /Liquid Fuel Based Power Stations: NTPC Ltd. has a combined gas based commissioned capacity of 3955 MW. NTPC caters to the peeking demand of power. SL No. | Gas Based (owned by NTPC)| State| Commissioned Capacity (MW)| 1| Anta| Rajasthan| 413| 2| Auriya| Uttar Pradesh| 652| 3| Kawas| Gujarat| 645| 4| Dadri| Uttar Pradesh| 817| 5| Jhanor-Gandhar| Gujarat| 648| 6| Rajiv Gandhi CCPP Kayamkulam| Kerala| 350| | Faridabad| Haryana| 430| Total| 3955| Gas based joint ventures: SL No. | Coal Based (owned by JVs)| State| Commissioned Capacity| 1| RGPPL| Maharashtra| 1480| Total| 1480| The energy conservation parameters like specific oil consumption and auxiliary power consumption have also shown considerable improvement over the years. Renewable & Distributed Generation: Renewable Energy: Renewable energy (RE) is being perceived as an alternative source of energy for â€Å"Energy Security† and subsequently â€Å"Energy Independence† by 2020.Renewa ble energy technologies provide not only electricity but offer an environmentally clean and low noise source of power. Objectives: NTPC plans to broad base generation mix by evaluating conventional and non-conventional sources of energy to ensure long run competitiveness and mitigate fuel risks Portfolio of Renewable Power: NTPC has also formulated its businesses plan of capacity addition of about 1,000 MW through renewable resources. SL No. | Renewable Energy Sources| Capacity| 1| Wind Energy Farms| 650 MW| 2| Small Hydro Project| 300 MW| | Solar Power Project| 704 MW| 4| Biomass Power Project| 15 MW| 5| Geothermal Power Project| 30 MW| Total| 1010 MW| Long Term Growth Plans: NTPC has prepared a corporate plan setting a targer of becoming a 1,28,000 MW company by 2032 with 28% capacity from non-fossil sources. NTPC is working on a basket of new projects of more then 45,000 MW for implementation. Government of India has approved allocation of 50% power to the home states from fourte en power projects of NTPC, with total capacity of 35,680 MW. Sustaining Market Leadership: Highest ever generation of 220. 4 BU from NTPC units as against 218. 84 BU in 2009-2010. NTPC's share in country's generation was 27. 4% in 2010-11, with 17. 75% of the national capacity. World class capacity utilization: Seven NTPC coal stations figure among the top 10 stations in the country in terms of PLF (Plant Load Factor). It has achieved PLF of 88. 29% during 2010-11 (National PLF 75. 07%). Three coal stations achieved PLF of over 95%, seven other stations achieved more than 90% PLF. Robust Financials: 100% realization of the billing is there for the eighth consecutive year. Provisional and unaudited net sales of Rs. 4,488 crore in Q4 2010-11 as against Rs. 12,305 crore (unaudited) in Q4 2009-1, registering an increase of 17. 74%. Provisional and unaudited Gross revenue of Rs. 15,106 crore in Q4 2010-11 as against Rs. 12,981 crore (unaudited) in Q4 2009-10, registering an increase of 1 6. 37%. Sustaining Market Leadership: Total electricity available in the country| 811. 104 BUs| Electricity import from Bhutan| 5. 61 BUs| Total electricity generation in the country| 805. 494 BUs| Total generation from NTPC| 220. 54 BUs| NTPC's share in total electricity generation in the country| 27. 40%|Financial Performance: Capital expenditure of Rs. 12,817. 61 crore during 2010-11, an increase of 22. 46% over the last year's figure of rs. 10,467. 13 crore. NTPC Group's Capital Expenditure was rs. 16,326. 58 crore as against Rs. 14,334. 54 crore over the last year, an increase of 14%. It has declared an interim dividend of Rs. 3 per equity share having face value of rs. 10 being 30% of paid-up capital translating into a dividend payout of Rs. 2,473. 64 crore. New loans aggregating to Rs. 3,479 crore tied up with domestic Banks and other Financials institutions during 2010-11 including Rs. 000 crore from HUDCO and Rs. 1000 crore from HDFC Bank. Cumulative loans of Rs. 52,787. 35 crore tied up so far. Five series of bonds on Private Placements Basis issued to eligible institutions aggregating Rs. 720 crore. Out of the five series of Bonds issued during the year, four series of Bonds aggregating to Rs. 420 crore have been issued to Army Group Insurance Fund (AGIF) under the funding line extended by AGIF for Rs. 1,200 crore. Outstanding amounts of Bonds as on 31. 03. 2011 is Rs. 9. 570 crore as against total amount of Rs. 14,755. 35 crore raised so far.NTPC PAKRI-BARWADIH'S ORGANIZATIONAL PROFILE The NTPC Ltd, the sixty largest company of the world in thermal power generation has taken up Pakri-Barwadih Coal Mining Project as a basket mine for all its projects located in eastern and northern regions. The project is going to affect 19 villages including 16 from Barkagaon block and 3 from Keradari block in the district of Hazaribag, Jharkhand. In the wake of the setting up of the project, large acres of residential and agriculture lands will be acquired, beside s the acquisition of government and forest land.The Pakri-Barwadih Coal Mining block is the NTPCs first mining venture located at North Karanpura coalfields of Hazaribagh district in Jharkhand state. It is bounded by longitudes 85? 10†² to 85? 15'E and latitude 23 ? 51'30† to 23 ? 55'30†. In 2004-05, the ministry of coal, Government of India has allocated the 43. 27sq. km Pakri-Barwadih block to national thermal power corporation now NTPC Ltd. For captive mining for supply of coal to their super thermal power stations. The entire block of Pakri-PBarwadih blocks falls in the Hazaribagh district.The Hazaribagh -Khelar-Ranchi state highway passes through the eastern part of the block touching Barkagaon and Tandwa villages. The nearest township is Hazaribag located at a distance of 25km from Barkagaon in the southern part of the block. The nearest rail stations are Ranchi Road and chitarpur on the Gomoh-Barkahana-Dehri-on sone loop lines of SE Railway both around 70-75 km from the block. Ranchi, The state capital, is around 120-130 km from the block. The mine is planned for annual production capacity of 15 million tones (MT) The geological reserves of the coal block are estimated at 1436MT.Project Highlights Salient Features of Pakri Barwadih Coal Mining Project Total project area : 3319. 42 hectare Production : 15 Million tons per year Mineable Reserves : 519. 35 M. Te (? 300 m Depth Five coal seams, Avg. thickness : 2-3 m D to G grade coal Method of Work : Mechanized open-cast mining Life of mine : 39 yearsEnvironment clearance obtained : On 19. 05. 09 Forest clearance(stage-II) obtained : On 17. 09. 10 The Project: The Pakri-Barwadih Coal Mining Project is going to acquire about 8787 acres of land of which about 62% is private land including residential and agricultural land and the rest is government land. NTPC and Coal Mining: To broad -base its businesses and also to ensure growth, diversification in the areas related to NTPC's core busine sses of power generation such as hydro power, distribution, trading, Coal Mining , LNG, etc. ave been identified as priority areas. The power major's foray into cal mining is aimed at ensuring timely availability of fuel for its stations and at controlling fuel costs. â€Å"NTPC has eight blocks in all. It has been allotted two coal blocks-Brahmini and Chicharao Patsimal both in Jharkhand where coal would be extracted through a 50:50 joint ventures with CIL. The centre has also allotted five more blocks to NTPC. These are Kerandari and chatti Bariatu in North Karanpura, Chhatrasal in Singrauli, Dulanga in the ib valley and Talaipalli in Chhattisgarh. â€Å"All the eight block, including the Pakri-Barwadih block that was allotted earlier, have a total mineable reserves of about 5. 7 billion Tonnes of coal. † Production is expected by 2008 in Pakri Barwadih block. NTPC is all set to emerge as a coal mining major with production capacities of at least 60 MT in the next eight ye ars. Mine developer and Operator for Pakri-Barwadih Coal Mining Block (311. 7 Million MT over 27 years). NTPCs objectives for foraying into Coal mining: 1) To have fuel security. 2) To secure assured Quality and Quantity of coal supply. 3) To attain price competitiveness on the delivered coal.Key Thrust Area: To develop and operate the mine in and efficient manner, using latest technology. So as to produce coal of required quantity and of desired quality parameters , in a cost effective and environment friendly manner, with due regard to safety and compliance of all legal aspects. Impoverishment Risk Assessment: In mining-induced displacement and resettlement projects, eight categories of risks are identified that the PAPs are likely to suffer from. They are: a) Landlessness b) Joblessness c) Homelessness d) Marginalization e) Increased Morbidity f) Loss of access to common property resources g) Food insecurity ) Community disarticulation HR- Employee Benefits (EB)-(Establishment): This section of the HR department looks after the employees and their benefits right from joining the company till the retirement. It deals with the following: Employee Development Centre-Training Section: The training section shall cover all regular employees of the company nominated for training. It shall be endeavor of the company to provide seven man days of training in a training year to every employee. Employees shall make full use of the training systems to support this endeavor to create a learning organization. It has following objectives:Public Relation Section: Legal Section: Industrial Engineering Department: Employee services (General Administration): NTPC LIST OF AWARDS FOR EXCELLENCE IN PERFORMANCE: NTPC Limited has been ranked top awarded for MoU Award for Excellence in Performance, instituted by DPE, consecutively for two years, 2004-05 and 2005-06 with ‘Excellent' rating. Dr. Manmohan Singh, Hon'ble Prime Minister of India presented the MoU Awards to Shri T. Sankaralingam, CMD, NTPC Ltd. * NTPC-AN EMPLOYER OF CHOICE: NTPC has been ranked fifth among the top ten â€Å"Best companies to work for in India† by Mercer HR Consulting-Business Today Survey 2005. CONSULTANCY: NTPC provides consultancy in all its aspects of power plant construction and management right from concept of commissioning and beyond. Combining the technical, managerial and financial skills, it provides the holistic solutions to power businesses all over the world, * NTPC DISTRIBUTED GENERATION: NTPC Limited has initiated the concept of electrification of remote villages by setting up Distributed Generation projects and demonstrating a sustainable business model leading to integrated growth of villages for achieving the goal of â€Å"Electricity for all†. ENVIRONMENT-GREEN POWER: NTPC delivers power at minimal environment cost, and achieves it. Right from the stage of its project conceptualization, technology selection to operations, care is taken to preser ve the natural ecology and minimize environmental impact. * CENPEEP: (The Center for Power Efficiency ; Environmental Protection) , resource center for state of art technologies for performance optimization, continues to strive for performance optimization of power plants.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. Shri Chandan Roy, Director (Operations), NTPC Limited has been conferred with Eminent Engineer Award by the Institution of Engineers (India), for his distinguished services inEngineering Sector during the year 2006 in the area of NCT of Delhi. On the occasion of Power Line magazine’s Tenth Anniversar y celebrations, on 11th October, 2006 in New Delhi, Mr. Sushi Kumar Shinde, and Union Minister of Power presented â€Å"Expert Choice Awards† to honor the leading achievers in the power sector. NTPC was recognized as the â€Å"Best Organization in Central Sector†. NTPC WINS GOLDEN PEACOCK AWARD FOR CORPORATE SOCIAL RESPONSIBILITY NTPC has been bestowed with Golden Peacock Award for Corporate Social Responsibility (CSR) 2012 constituted by Institute of Directors (IOD), New Delhi. Shri Arup Roy Choudhury, CMD, NTPC figures at # 56 in the listing of India Inc's 100 Most Powerful CEOs, 2012 by the Economics Times, India's leading business newspaper. He is at # 2 among the CEOs of the State Owned Enterprises (SOEs)†¦ * NTPC Limited has been ranked 7th overall in ‘India’s Best Companies to Work for 2010’, a study by The Great Places to Work Institute India and The Economic Times. The Company is also ranked 1st among large organizations’ with o ver 10,000 employees, 1st in the Public Sector Enterprises segment and 1st in the Manufacturing and Production Industry segment.Shri R K Rustagi, Executive Director (HR ; PMI), Shri N N Misra, Executive Director (HR ; ER), Shri A K Bhatnagar, GM (HR ; Corporate Communications) NTPC received the awards from Mr Prasenjit Bhattacharya of Great Places to Work Institute, India. * Study conducted by Great Place to Work Institute, India in collaboration with The Economic Times. NTPC, New Delhi has been ranked 7th in the Top 10 Great Places to Work (GPTW) and has the distinction of being only PSU in the Top 10 Best Companies to Work For.NTPC also has the distinction of being a part of the Best Workplaces List continuously for the last six studies. This year's Top 50 list has emerged from 427 organizations belonging to 17 different industries with employee strength in the range of 100 to 33,000. HR VISION â€Å"To enable our people to be a family of committed world class professionals, maki ng NTPC a learning organization†. Research Topic – PACE – THE PERFORMANCE MANAGEMENT SYSTEM @ NTPC PERFORMANCE MANAGEMENT SYSTEM: AN INTRODUCTIONThe role of HR in the present scenario has undergone a sea change and its focus is on evolving such functional strategies which enable successful implementation of the major corporate strategies. In a way, HR and corporate strategies function in alignment. Today, HR works towards facilitating and improving the performance of the employees by building a conducive work environment and providing maximum opportunities to the employees for participating in organizational planning and decision making process. Today, all the major activities of HR are driven towards development of high performance leaders and fostering employee motivation.So, it can be interpreted that the role of HR has evolved from merely an appraiser to a facilitator and an enabler. Performance management is the current buzzword and is the need in the curren t times of cut throat competition and the organizational battle for leadership. Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee development programmes and rewarding achievements.The process of performance management starts with the joining of a new incumbent in a system and ends when an employee quits the organization. Performance management can be regarded as a systematic process by which the overall performance of an organization can be improved by improving the performance of individuals within a team framework. It is a means for promoting superior performance by communicating expectations, defining roles within a required competence framework and establishing achievable benchmarks. Objectives: To accomplish organizational goals through a system of performance assessmen t linked to company’s objectives. * To facilitate fulfillment of individual aspirations and promotion of professional excellence. * To encourage a two – way communication process between the appraise and the reporting officer for binging objectivity in performance appraisal system. * To evaluate the potential of the executive to assume higher responsibilities along the hierarchy. * To involve the appraise through various stages of performance management, thereby reducing the performance gaps. To map competencies and potential of executives for enabling the organization to source the talent generally from within the company for meeting organizational growth. * To involve the executive to share the responsibility and become accountable for efficient management of the business for result oriented performance through mutual involvement. * To provide a transparent system to help each executive to evaluate his own performance and develop himself with the help of reporting of ficer. * To provide for removal of differences, if any, in performance appraisal through intervention of the reviewing officer.To conclude, performance management can be regarded as a proactive system of managing employee performance for driving the individuals and the organizations towards desired performance and results. It’s about striking a harmonious alignment between individual and organizational objectives for accomplishment of excellence in performance ESTABLISHING PERFORMANCE STANDARDS PROCESS OF PERFORMANCE APPRAISAL COMMUNICATING STANDARDS AND EXPECTATIONS MEASURING THE ACTUAL PERFORMANCE COMPARING WITH STANDARDS DISCUSSING RESULTS (PROVIDING FEEDBACK)DECISION MAKING – TAKING CORRECTIVE ACTIONS Focus of Performance Management: * The focus of the performance management system for senior executives is to appraise them on different components of managerial responsibilities, consisting of performance, generic managerial competencies, values and potential, totali ng to 100 marks. * The performance component as identified and measures evolved would have 50% wieghtage in total appraisal. * The company’s concern for actualization of organizational core values is reflected in the performance management . Generic Managerial competencies exhibited by an Appraise while discharging duties have been given . * The Company’s concern for actualization of organizational Core Values is reflected in the Performance Management . * The Performance Management System brings to focus important managerial attributes and strikes a balance between ‘Performance’ and other aspects of managerial talents/skills. Executives will have a set of Key Performance Areas to be identified through discussion and achieve them during the performance period. The system is to develop the competencies by involving the executive in setting targets and identifying Key Performance Areas. * To utilize the Performance Management System for facilitating individu al career development and bring organization – wide HR intervention at senior levels to bridge competency gaps. PERIODICITY: * The Performance Appraisal Period would run concurrent with the financial year i. e. from 1st April to 31st March. * The System provides for setting up of Key Performance Areas (KPAs) and reviewing the same in two half-yearly periods. The first half year is from 1st April to 30th September and the second half- year is from 1st Oct. to 31st March. * While reviewing the KPAs of the first half-year, the targets for Key Performance Areas for the second half year are evolved. * While reviewing the KPAs of the first half year, the targets for Key Performance Areas for the second half year are evolved. * At the end of the Performance Appraisal year, the review for the second half of the year is undertaken. The review would also involve annual appraisal of KPAs, Competencies, Values and Potential Appraisal.COMPONENTS OF PERFORMANCE REVIEW: * The Performance Ma nagement System, consisting of the following components is implemented through ‘Performance Appraisal Form’. * PART I – PERFORMANCE * Part IA: first half year performance * Part IB: second year performance Review of KPA’s for 2nd half year * Part IC: annual performance * Part ID: comments on performance * PART II – competencies * PART III – values * PART IV – potential appraisal * PART V – performance and potential profile PART I-PERFORMANCE: Part IA: FIRST HALFYEAR PERFROMANCE The System provides for the Reporting Officer (Appraiser) and the executive (Appraise) to identify through discussion and agree upon a set of Key Performance Areas (KPAs) in brief at the beginning of the first half-year. * While identifying KPAs, actual ‘Measures’ for each KPA is to be defined and written. The Measure could have Quantitative Targets, Time Schedule for achieving KPAs fully/partially, Qualitative Improvements etc. , based on th e nature of the KPA item * The KPA Targets may be having different weightings and limited to 8 Key Performance Areas only.The idea is to enable the executive to focus on given deliverables and not miss important critical areas. The KPAs should be more focused, concrete and measureable. They should be more than the â€Å"Norm† i. e. normal standard of performance expected. The KPAs reflect ‘Stretch Standard’ which is in excess of â€Å"Norm†. The KPAs should be ‘SMART’ i. e. Specific, Measurable, Agreed (mutually arrived at by the Appraiser and the Appraise), Realistic and Time-Bound. * One of the KPAs should be â€Å"Staff Development†, as building a performing team is an essential target for senior executives.The measures for this could be man days of training & development activities for the Unit/ Department/function vis-a-vis the Company’s training targets, HR initiatives like Professional Circles, Quality Circles, and Suggest ion Scheme etc. * The Appraiser and Appraise jointly evolve KPAs, define measures and allocate marks for each KPA at the beginning of first half-year by 15th April. * The Performance under Part IA is jointly reviewed and performance evaluated at the beginning of 2nd half year and not later than 15th October. At the time of joint review, actual achievement is briefly recorded against each KPA and marks obtained w. r. t. each KPA is indicated in relevant column. * The aggregate of marks obtained for different KPAs is worked out and indicated as aggregate of IA. Both the Appraise and the Reporting Officer sign the Part IA. PART IB – SECOND HALF YEAR PERFORMANCE * The System helps to review the Key Performance Area Targets for the Second Half-Year based on the evaluation of 1st half-year KPAs depending on actual achievements. The reworked KPA targets are briefly recorded, ‘Measures’ for each KPA defined and Marks allocated. KPAs which extend beyond the 1st half year may be re-recorded in the targets of the 2nd half-year. * The KPAs may undergo change owing to target accomplished, new targets coming up, change of role etc. * The Performance Evaluation of 2nd half-year Performance is jointly undertaken on completion of 2nd half year/Annual Performance year and not later than 15th April. * During the Performance Evaluation, the actual achievement is assessed against each KPA and marks obtained against each KPA are indicated. The marks obtained are aggregated at the bottom out of 50 marks as aggregate. PART IC: ANNUAL PERFORMANCE * This part consolidates the 1st half-year and 2nd half-year Performance of the Appraise by aggregating Performance Marks obtained in Part IA and Part IB. * The Annual Performance Marks out of 50 marks be computed based on the formula mentioned in Part 1C and marks obtained be indicated in the Box. * The marks so obtained out of 50 would be the marks secured for â€Å"Annual Performance† in the achievement of KPAs. The Appraise and the Reporting Officer would jointly endorse the Annual Performance by signatures. Normalization Process: Objectives of Normalization Process: – Ensure parity and integrity by minimizing rater variation various departments. – Enhance objectivity and transparency in the appraisal system. PMS Scores from Reporting Reviewer to check integrity Top 30% Middle 65% Performance Management – Assess the overall achievement of the businesses unit MoUs and functional goals; normalization would be done in view of the overall achievement of these goals. Plot distribution of scores for the cluster to check for skewing within and across departments. – Checks to be made whether employees have been overrated or underrated on various PMS parameters such as: (a) KPA assessment (b) Competencies, value and Potential assessment – Make suitable adjustments to scores, where necessary. – Scores (revised and unchanged) and reasons for normalization to be documented in the PMS form. – All executives in the cluster must be categorized into Top 30%, Middle 65%and Bottom 5%. COMPANY VALUES AND RATINGS: The Corporate Values ‘COMIT’ and the indicative observable behavior in respect of each value is as under: A. Customer focus: The Executive has conviction that the customer (Internal & External) is the center of all activity; he is courteous, sincere, patient and sensitive to the customers and honours commitments on time. B. Organizational pride: The Executive holds the company in high esteem and rejoices in belonging to it; he demonstrates loyalty and commitment to the organisation and has a sense of ownership and belongingness with it. C. Mutual respect and trust:The Executive has high regard for and faith in the fellow organisational members; he believes in collaboration and openness and has good team spirit. D. Initiative and Speed: The Executive believes in taking the first step, thinking new and ahead and being swift without compromising on quality; he is creative and innovative and has the willingness to experiment and take risks. E. Total Quality: The Executive believes in pursuing excellence in all spheres of activity; he makes continuous efforts in improving standards of performance, systems and processes.LITERATURE REVIEW: Performance Management System: * Performance management is one of the most important requirement for successful business and human resource policy (Kessler, 2003). During the performance management revolution , many PMS's were developed such as the balanced scorecard (Kaplan, Norton, 1992), Performance pyramid (Lynch, cross, 1991) and the performance prism (Neely Adams , 2000) The objective of such systems is to help organizations define a set of measures that reflect their objectives and assess their performance accordingly.These system is usually multidimensional. * Rewarding and promoting effective performance in organizations, as well as identifying ineffective performers for developmental programs or other personnel actions, are essential to effective to human resource management (Pulakas, 2003). The ability to conduct Performance appraisals relies on the ability to assess an employees’s performance in a fair and accurate manner. Evaluating employee performance is a difficult task. Performance evaluations have been conducted since the time of Aristotle (Landy, Zedeck, cleveland, 1983). The earliest formal employee Performance evaluation program is thought to have originated in the united states of military establishment shortly after the birth of the republic ( Lopex, 1968). The measurement of an employees performance allows for rational administrative decisions at the individual employee level. It also provides raw data for the evaluation of the effectiveness of such personnel-system components and processes as recruiting policies, training programs , selection rules, promotional strategies and reward allocations (Landy, Zecleck, cleveland, 1983).In addition it provides the foundation for behaviorally based employee counseling. In the counseling setting , performance information provides the vehicles for increasing satisfaction , commitment * and motivation of the employees. Performance management and feedback can play a valuable role in effecting the grand compromise between the needs of the indivisual and the needs of the organization ( Landy, Zecleck, cleveland, 1983). * Kennerley, M. Neely, A, 2002. A framework of the factors affecting the evolution of performance measurement systems.International journal of operations and production management 22(11). 1222-1245. Laitinen E. K, 2002. A dynamic performance measurement system: evidence from small finnish technology firms. Scandinavian journal of management 18, 65-99. Pritchard R. D, Holling H, Lammers, F. Clark, B. D 2002. Improving organization performance with the productivity measurement and enhancement system : an international collaboration Nova Scie nce, New York. Lebas, M. J, 1995, Performance management system. Jornal of production economics 41, 23-35. Neely, A. D.Adams . C, Crowe, P, 2001. The performance system revolution : why not and what next? Journal 19(2), 205-228. Rouse, P, Putterill , M, 2003. An integral framework for performance appraisal Management Decision 41(8), 791-805. * Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees. * Performance in a job is a matter, which needs to be considered both in terms of results achieved and behavior demonstrated.Results required in relation to quantity, quality or timing can be established in most aspects if a large number of jobs. Comparing results reached to results required is essential in evaluating the performance. Reviewing results in the context of actions and behavior is necessary to develop a full understanding of individual performance. In determining what actions have led to success or the lack of it, this aspect of examining performance will represent a significant element in forming plans for the future, so that strengths can be built upon and weakness addressed. There are, of course, certain jobs or features of certain jobs, where it is not always possible to state a required result or standard that clearly. In these instances considering behavior assumes a greater significance w hen appraising the performance. * The most important part of such job however, would concern the health and * In this case, examples of such action might be ensuring that specialized help is summoned when necessary, listening to residents who want to talk about their problems, or perhaps arranging appropriate diversions and entertainment. Performance appraisal appraises performance of an operating unit, like department or section, or of an individual. The Government of India may appraise the performance of the BARC as an organization. The Director of BARC may appraise the performance or any department of division. These Performance appraisals start from facts/data, lead to opinions on adequacy/ appropriateness and should lead further to some decisions being made on whether any changes are necessary in the manner or direction of work of the appraised unit, individual.At the operating unit level the decision may relate to the allocations of resources. * * The decisions may also relate to the continuance. In the case of the individual, the appraisal may be of :- * (a) His outputs (how well has the work been done). * (b) Inputs (what are his skills, behavior patterns, motivation etc. ) * A face-to-face discussion in which one employee's work is discussed, reviewed, and appraised by another, using an agreed and understood framework.Usually, line managers conduct the appraisals of their staff, although peers can appraise each other, and line managers can themselves be appraised by their staff through 360 degree appraisal. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. Many writers and consultants are using the term â€Å"performance management† as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context. Performance appraisal is a method of acquiring and processing the information needed to improve an individual employee’s performance and accomplishments. -(Douglass) * It is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance. -(Newstrom ) * A prominent personality in the field of Human resources, â€Å"performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job. Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning -(Flippo) * According to Lawler (2000) when using the merit pay method, individual performance is appraised, usually by a supervisor, and as a resul