PERFORMANCE MANAGEMENT SYSTEM IN NTPC

PRESENTED TO: Dr. RINKU SANJEEV

PRESENTED BY : SWETA GUPTA (BM- 011230) VINAV JAIN (BM-011244)

Introduction
NTPC Ltd was incorporated on November 7, 1975 as a private limited company with the name National Thermal Power Corporation Pvt Ltd. NTPC Ltd is the largest power generating company in India. Their other business includes providing consultancy, project management and supervision, oil and gas exploration, and coal mining. The company contributed 28.6% of the total power generation of India.

Objectives of Study
To compare the past system for performance appraisal with the new performance management system.

To find out is there any improvement in their performance after the appraisal. To study the effectiveness of the new Performance Management System.

Performance Appraisal System of NTPC

Earlier in the NTPC Performance appraisal system was used till 2004,naming Grading System. In this method certain categories of abilities of performance are defined well in advance. candidates are put in a particular category depending on their trait and characteristic.

Drawbacks of Grading System

Grades were completely unknown to the candidate being appraised. The result of the employee performance was also not known. Promotion was the only reward, which was granted to the employee, and also it was given after 3 years. An element of dissatisfaction was present, as the reward for the performance was seems to be not sufficient.

Present Performance Management System in NTPC

NTPC has accordingly reviewed the existing Appraisal System of senior executive levels. The revised Performance Management System having components of Performance Planning, Monitoring, Review, and Development.
The performance of the employees is evaluated both half yearly and annually.

 The system is to develop the competencies by involving the executive in setting targets and identifying Key Performance Areas. It aims to bring the concept of ownership and accountability on both appraise and Appraiser to create mutual trust and confidence and to utilize the Performance Management System for facilitating individual career development.

Effectiveness of Performance Management System in NTPC

To accomplish overall organizational vision & mission by linking individual performance to company objective. To encourage two-way communication between the executive & the reporting officer & bring about transparency in the performance assessment process. To identify high performers& recognize them through rewards & incentives.

Recommendation
Presently in the PMS the performance of the candidate is evaluated annually as a result employees are not highly satisfied with it . The PMS should provide sufficient scope to the employee for accomplishment of their group objective along with their individual objective . The annual way of filling the form or performance report in the current PMS should be replaced by online.

Conclusion
management appraise the performance in order to take the decision regarding the rewarding the employee in order to motivate him or taking the corrective actions. NTPC took the initiative and call a external consultancy AT KEARNEY to revise a new system for appraising the performance. The consultancy revises the performance management system known as PMS which was bought into practice in 2004. It facilitates the two-way communication between