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CHAPTER - I

INTRODUCTION

The introductory Chapter consists , Major aims of the study, scope of Personnel Policy concept and definition, through which I have started my study in Narmada Hydroelectric Development Corporation, Bhopal.

1.1 MAJOR AIMS OF THE STUDY

I have identified the following aims for the present study; with which the entire study has been conducted and concluded.

1. To study the nature of Personnel Policy and its importance in NHDC, Bhopal.

2. To understand the important stages of formulation to implementation of Personnel Policy in NHDC, Bhopal.

3. To understand the role of HR Department in formulation to implementation of personnel Policy in NHDC, Bhopal.

4. To get information from employees on Personnel Policy and its benefits in terms of their fulfillments of basic needs and career development in NHDC, Bhopal.

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1.2 MEANING AND DEFINITION OF PERSONNEL POLICY

INTRODUCTION

Programmes are concrete schemes of action worked out by the managers to accomplish certain objectives. A programme is action-based and result-oriented. It provides practical guidelines to managerial activities. It prescribes how enterprise resources should be used. It is a single use plan because it is not used in the same form time and again once the objectives have been achieved. For instance, employment or training programme of a company is meant to be executed within a time frame. Every programme must have well-defined objectives and it should be supported by sound policies, procedure and practices.

Policies are broad guidelines as to how the objectives of a business are to be achieved. Policies provide the guidelines which we should keep in view while achieving the ends. A policy is “an established guiding canon premised on objective, devised to govern the activities of the business enterprise and from which the basic precepts of conduct are derived.” A policy is designed to guide the organizational members to deal with a particular situation in a particular manner. It delimits the area within which a decision is to be made and assures that the decision will be consistent with and contributive to business objectives.

A policy is a predetermined and accepted course of thought and action to serve as a guide towards certain accepted objectives. In other words, we can say that policies are related to the organization’s overall purpose and its objectives in the various areas with which its operations are concerned. Personnel policies lay down the decision making criteria in line with the overall purpose of the organization in the area of human resource management. Personnel policies are developed by the top management to assist the managers at various levels to deal with the people at work. Thus personnel policies can be interpreted as the recognized intentions of top management with respect to efficient management of work force. Some examples of personnel policies are given below:

1. The employees will not accept any gift form any supplier except for token gifts of purely nominal or advertising value.

2. Each employee will proceed on at least one week vacation each year.

3. The employee will not accept any outside assignment.

Personnel policies cover the principles and rules of conduct governing the dealings of the organization with its employees, and set the tone for the administration of personnel programmes in a manner conductive to the attainment of the objectives of the organization. The need for sound personnel policies stems from the fact that in order to achieve the overall objectives of the enterprise, an atmosphere has to be created in which optimum and spontaneous co-operation of the employees can be achieved.

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DEFINITIONS

“General statements that guide decision making are called policies. Policies is defined the boundaries within which decisions can be made, and they direct decisions towards the accomplishments of objectives.”

- by Hicks and Gullet

“Policies are the general statements of understandings which guide or channel thinking and action in decision making. They limit the area with in which decision is to be made and ensure that decision will be consistent with and contribute to objectives.”

- by Koontz, O’Donnel and Weihrich

On analyzing the above definitions we can conclude that:

(a) The policy provides guidelines for deciding a course of action to the organizational objectives;

(b) The policy limits the area within which the decision will be consistence with the organizational objectives;

(c) The policy is usually expressed in qualitative conditional or general manner; and

(d) Policy is formulated at all managerial levels. It exists in all areas of the organization and may be major or minor in nature depending upon the segment of the organization.

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1.3 IMPORTANCE AND NECESSITY OF SOUND PERSONNEL POLICIES

The raison d’etre for formulating personnel policy is basically two fold: one, to have a formal statement on corporate thinking which will serve as a guideline for action. Two, to establish consistency in the application of the policies over a period of time so that each one in the organization gets a fair and just treatment.

Personnel policies need to be specifically created because of the following reasons:

(1) The basic need and requirements of both an organization and its employees require deep thought. The management is required to examine its basic convictions as well as give full consideration to practice in other organizations.

(2) Established policies ensure consistent treatment of all personnel throughout an organization. Favoritisms and discrimination are thereby minimized.

(3) A certainty of action is assured even through the top management personnel may change. The tenure of the office of any manager is finite and limited; but the organization continues, and along with it continues the policies; and this continuity of policies promotes stability in an organization.

(4) Because they specify routes towards selected goals, policies serve as standards or measuring yards for evaluating performance. The actual results can be compared with the policies to determine how well the members of an organization have lived up their professed intentions.

(5) Sound policies help to build employee enthusiasm and loyalty. This is especially true when they reflect established principles of fair play and justice and when they help people to grow within an organization.

(6) They set patterns of behavior and permit participants of plan with a greater degree of confidence.

(7) Policies are “control guides for delegated decision making.” They seek to ensure consistency and uniformity in decisions on problems “that recur frequently and under similar, but not identical, circumstances.”

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ADVANTAGES OF PERSONNEL POLICIES

Policies, as useful instructional devices, offer many advantages to the personnel working at various levels. These are:

Delegation: They help managers operating at different levels to act with confidence without the need for consulting supervisors every time.

Uniformity: They increase the chances of different people at different levels of the organization making similar choices, when independently facing similar situations. They make the actions of organizational members more consistence.

Better control: As personnel policies specify the relationship shared between the organization, management and its employees, they allow members to work towards achievements of the objectives of the organization without friction/ conflict, paving the way for better control.

Standards of efficiency: Policies can also serve as standards in the execution of work. They enable the management to see if they have been translated in action by various groups in the organization or not. In the light of actual performance, existing policies may be subjected to amendment/ refinement.

Confidence: Policies make the employee aware of where they stand in the organization and create confidence in them while confronting routine and recurring problems. They reduce chances of misinterpretation, misrepresentation and friction.

Speedy decisions: Policies can speed up decision making by providing a blanket framework within which personnel decisions can be made. They summaries past experience.

Coordinating devices: Personnel policies help in achieving coordination. If organizational members are guided by the same policies, they can predict more accurately the actions and decisions of others. They ensure a steady course of action and prevent unwarranted deviations from planned operations.

In the absence of a policy, similar questions must be considered time after time. Lack of a policy means that the organization has established no continuing position. Despite their usefulness, personnel policies are not always easy to formulate and implement. A number of hurdles come in the way.

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1.4 OBJECTIVES, PRINCIPLES, AND CHARACTERISTICS OF PERSONNEL POLICIES

A management’s personnel policy has two types of objectives, general and specific. The statement of general objectives should express the top management’s basic philosophy of human resources and reflect its deep underlying convictions as to the importance of people in an organization and the management activity which deals with people, i.e., personnel administration. The management must formulate and develop a basic creed, which should contain a clear-cut statement of company’s general objectives of the personnel management’s major responsibility. The statement of specific objectives should refer to the various activities of personnel administration connected with staffing, training, developing, wage and salary administration, motivation, employee services and benefits, employee records, labor relations and personnel research.

The Aims and Objectives of personnel policies should be/ are:

(1) To enable an organization fulfill or carryout the main objectives which have been laid down as the desirable minima of general employment policy;

(2) To ensure that its employees are informed of these items of policies and to secure their co-operation for their attainment;

(3) To provide such conditions of employment and procedures as will enable all the employees to develop a sincere sense of unity with the enterprise and to carry out their duties in the most willing and effective manner;

(4) To provide an adequate, competent and trained personnel for all levels and types of management;

(5) To protect the common interest of all the parties and recognize the role of trade unions in the organization;

(6) To provide for a consultative participation by employees in the management of an organization and the framing of conditions for this participation, which, however, shall not take place in technical, financial or trading policy.

(7) To provide an efficient consultative service which aims at creating mutual faith among those who work in the enterprise. (i) By developing management leadership which is bold and imaginative and

guided by moral values; (ii) By effectively delegating the human relations aspects of personnel

functions to line managers;(iii) By enforcing discipline on the basis of co-operative understanding

and a humane application of rules and regulations; and

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(iv) By providing for a happy relationship at all levels;

(8) To establish the conditions for mutual confidence and avoid confusion and misunderstanding between the management and the workers, by developing suggestion plans, joint management councils, work committees, etc., and by performance appraisal discussions;

(9) To provide security of employment to workers so that they may not be distracted by the uncertainties of the future;

(10) To provide an opportunity for growth within the organization to persons who are willing to learn and undergo training to improve their future prospects;

(11) To provide for the payment of fair and adequate wages and salary to workers so that their healthy co-operation may be ensured for an efficient working of the undertaking;

(12) To recognized the work and accomplishments of the employees by offering non- monitory incentives; and

(13) To create a sense of responsibility, on the part of those in authority for the claims of employees as human beings, who should be guaranteed protections of their fundamental rights and offered enough scope for developing their potential.

In brief, Personnel Policies should respect human dignity and personnel integrity, ensure fair treatment for all, irrespective of caste, creed, or colour, and offer reasonable social and economic security to employees. They should be so designed as to ensure that work and accomplishment are properly recognized, that safe and healthy conditions of work are created, that common interest are promoted and employee participation is encouraged, that the role of trade unions is recognized and their functions and responsibilities are respected, and that the employees' satisfaction and motivation and their development as individuals are properly looked after.

Peter Drucker has rightly said: "The management must gear its policies and objectives in such a fashion that the employees perform their work and do their assigned tasks. It implies a consideration of human beings as resource, i.e., as something having peculiar psychological properties, abilities and limitations that require the same amount of engineering attention as the properties of any other resources as having, unlike any other resources, personality, citizenship, control over weather they work, how much and how well, and thus requiring motivation, participation, satisfaction, incentives, and rewards, leadership, status and function. And it is management, and management alone, that satisfy these requirements. For they must be satisfied

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through work and through the job within the enterprise and management is activating organ of the enterprise.”

PRINCIPLES OF PERSONNEL POLICIES

In designing personnel policies, the management must balance the needs, goals, objectives and values of both the employers and the employees. Since these policies are rules of conduct, they are based on the following principles:

(i) Put the right man in the right place by a careful selection and placement to make sure that he is physically, mentally and temperamentally fit for the job he is expected to do and that the new employee may be reasonably expected to develop into a desirable employee, so that “there will be the minimum number of square pegs in round holes.”

(ii) Train everyone for the job to be done, so that they qualify for better jobs, so that their accomplishments are limited to their ambitions and abilities, so that they do their present work very efficiently.

(iii) Make the organization a coordinated team through a proper coordinate and administration of different departments and divisions, so that there is a minimum of friction and unproductive or unnecessary work. This calls for proper planning and organization, control and direction of the entire organization without destroying the initiative of the individual employee.

(iv) Supply the right tools and the right conditions of the work, for the better the tools, facilities and working conditions, the larger the output produce with the same human effort at lower costs so that, ultimately, higher wages may be paid and more good jobs provided.

(v) Give security with opportunity, incentives, recognition. In order that he may stick to his job, each employee should have sound incentives for work, such fair compensation, and recognition for results achieved, reasonable security, and opportunity and hope for advancement in the organization.

(vi) Look ahead, plan ahead for more and better things. Superior products should be produced and distributed, and these should be attractive and meet the demands of the costumers. This calls for research and a policy of continuing product planning and development.

In brief, the principles should ensure that equity and justice are accorded to all the employees; that every employee has scope for development to the limit of his capabilities; that fairness is guaranteed in maintaining discipline and that these principles are followed without discrimination against any grade of employees.

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FEATURES OF A GOOD POLICY

The policies should be developed with great care and co-operation with managers at various levels. The policy statements should have the following features:

(a) Linking with organizational objectives: The policy formulation should be in context with the organizational objectives. It should help in the achievements of these objectives.

(b) Careful Formulation: The policy formulation should be done very carefully and in a systematic and planned manner. Since policy lay the basis of the organization, long-term planning should be taken into account. As far as possible adhocism should be avoided.

(c) Clarity: The policy should be clear, definite and self-explanatory. It should not leave any scope for ambiguity or misinterpretation.

(d) Consistency: The policy should be consistence in the operational functioning of the organizational. The policy of all functional areas should be consistent and integrated with each other so that the effectiveness and efficiency of the organization is maintained.

(e) Written Statement: Once the policies are decided by the management, they should be put in writing. A written policy is clear and specific. It ensures continuity and conformity. It can be communicated easily and has uniformity of application.

(f) Balanced Policy: A policy should be balanced in nature. It should be neither too stiff nor very flexible which may create ambiguity. The policy should be stable so that long term planning is not affected. But at the same time it should incorporate components of flexibility so that the organization can adopt to the changes taking place in the environment.

(g) Periodic Review: The policy should be reviewed periodically. This is because of the rapid changes affecting the business environment. With the changing times some policies become obsolete which require periodic deletion or substitution.

(h) Communication: Once the policy is framed it should be communicated to all the concerned persons. It facilitates in taking decisions, if the policies are communicated widely and timely.

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1.5 SCOPE OF PERSONNEL POLICIES

Personnel policies must cover all areas of human resource management. Usually personnel policies are framed with regard to all functions of human resource management as stated below:

1. Employment Policies(i) Minimum hiring qualifications.(ii) Preferred sources of recruitment.(iii) Reliance on various selection devices such as tests, reference checks,

and interviews.

2. Training and development policies(i) Opportunities for training and development.(ii) Basis for training(iii) Types of training, viz., on-the-job, off-the–job.(iv) Programmes of executive development.

3. Transfer and promotion policies(i) Rationale for transfer.(ii) Periodicity of transfer.(iii) Length of service and qualifications required for promotion.(iv) Weightage to seniority and merit in promotion.

4. Compensation Policies(i) Minimum wages and salaries.(ii) Incentive Plans.(iii) Profit Sharing.(iv) Non-Monetary Rewards.

5. Integration and Human Relations Policies(i) Handling of Grievances.(ii) Recognitions of labour unions.(iii) Workers’ participation in management.(iv) Discipline.

6. Working conditions and welfare policies(i) Kinds and standards of working conditions. (ii) Safety programme.(iii) Types of welfare services.(iv) Financing of employee services.

There may be personnel policies in addition to above cited examples. The top management while designing personnel policies must take the human resource or personnel manager into confidence because he is the person who is mainly concerned

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with performing the human resource functions and implementation of human resource programmes and policies.1.6 TYPES OF PERSONNEL POLICIES

Personnel Policies may be classified into several categories depending on(i) Their source (originated appealed and imposed) (ii) Scope (general or specific) and (iii) Form (within or implies).

These may be stated thus:

Originated Policies: These are established by top management deliberately so as to guide executive thinking at various levels.

Appealed Polices: These are formulated to meet the requirements of certain peculiar situations which have not been covered by the earlier policies. Such requests usually came from subordinates who fail to handle the cases based on guidance offered by existing policies.

Imposed policies: These are formed under pressure from external agencies such as government, trade associations and unions.

General policies: They reflect the basic philosophy and priorities of the top management in formulating the broad plan for mapping out the organization’s growth chart.

Specific policies: These policies cover specific issues such as hiring, rewarding and bargaining. Such policies however, should be in line with the basic framework offered by the general policies.

Written or implied policies: Implied policies are inferred by the behavior of members (such as dress code, gentle tone while talking to customers, not getting angry while at work etc.). Written policies, on the other hand, spell out managerial thinking on paper so that there is very little room for loose interpretation.

There are various types of policies. Jucius identifies two types, viz., functional or organizational groupings of policies; and the centralized policies. The functional grouping of policies are those policies which are grouped for different categories of personnel, e.g., for the management dealing with personnel planning, organizing and controlling or for the management concerned with functions of procuring , developing and utilizing manpower. The centralized policies are framed for companies with several locations. They are formulated at the head office and apply through out the organization.

Policies may also be classified as major or minor. Major policies pertain to the over-all objectives, procedures and control which affect an organization as a whole. They cover in a general way nearly every phase of an enterprise and its products and methods of financing, its organizational structure, plant location, its marketing and personnel. Such policies are formulated by the Board of Directors, and a framework is established within which major executives fit the remaining policies necessary to carry out the major objectives of an organization. Minor policies, on the other hand, cover relationships in a

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segment of an organization, with considerable emphasis on details and procedures. Such policies are the outgrowth of major policies and preserve their utility of purpose.1.7 FORMULATION, IMPLEMENTATION AND EVALUATION

OF PERSONNEL POLICIES

Policy formulation and implementation involves the following steps:

i. Identifying the need: initially important areas of personnel management (recruitment, selection, training, compensation, bargaining) must have a policy formulation which is clearly spelt out. Additional policy guidelines can come at any stage depending on the recurrence of a ticklish issue at various levels. (appealed policies).

ii. Collecting Data: Once priorities areas are listed, steps should be taken to collect facts before formulating a policy. Various sources could be tapped for this purpose such as (i) company’s records (ii) past practices (iii) survey of industry practices (iv) experience of personnel handling various issues (v) top management philosophy (vi) organizational culture (vii) employee aspirations and (viii) changing economic, social and legislative etc.

iii. Specifying alternatives: Policy alternatives should emerge clearly after collecting relevant data from various sources. These have to be evaluated carefully in terms of their contribution to organizational objectives. It is always better to involve people at various levels, especially those who are going to use and live with such policies. Top management should put the stamp of approval only when every thing is above board and the stated policy clearly reflects organizational priorities.

iv. Communicating the policy: to gain approval at various levels, the formulated policy should be communicated through out the organization. Policy manual, in-house journal and discussions with people at various levels may be used to reach out to employees quickly. Special coaching programmes can also inform people about the manner of application.

v. Evaluating the policy: personnel policies, to be effective, must be reviewed, evaluated and controlled regularly against certain standards. Evaluation helps determine changes in existing policies. All the policies should be reviewed annually and some policies should be reviewed at specific times for example when there is collective bargaining or after strike/lock out, etc. Departmental policies may be reviewed through participation of all employees. Outside consultants or experts from other organizations may be engaged to review crucial policies. Adequate care should be taken to review the policies in the following situations when

(a) Employees offer suggestions;

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(b) Employees express grievances; (c) Unsatisfactory reports about employee performance and behavior; (d) Company plans for change like expansion, diversification, contraction, adoption of new technology and introduction of new methods.

Personnel policies, to be effective, should have a favorable impact on the objective and functions of P/HRM and help the parties concerned.

Evaluating the Impact of Personnel Policies

The system and methods of human resource management are mostly based on personnel policies. Hence, appraising the impact of personnel policies is beneficial to the employees, organization and society at large. The impact of personnel policies can be measured in terms of cost and benefit to employees, organization and society.

HRM policies help the organization in terms of attainment of organizational goals, increasing the efficiency, adaptability and achieving of long-run results. Further, organizational and human outcomes such as turnover, absenteeism and commitment are the result of human resource policies. They help the employees to have awareness and a clear idea about the various programmes. HRM policies also affect the society. Some HRM policies affect commonly the individual, the organization and the society. They relate to the employee’s health, psychological and physical well being. Various HRM policies result in commitment, competence, cost effectiveness and congruence. These human resource outcomes lead to long term consequences like individual well being, organizational effectiveness and social well being as illustrated in the following table.

T a b l eImpact of P/HRM Policies

P/HRM Policy choices Personnel/HumanResource outcome

Long-termConsequences

Employee influenceHuman resource supply

Selection systemReward systemHRD system

Work environment

CommitmentCompetenceCongruence

Cost effectiveness

Individual well beingOrganizational effectiveness

Social well being

Source: Modified version from S.K. Bhatia, “Assessing the overall Impact of HRM policies”, The Hindu, 15th October 1987, p.18

The impact of human resource policies can measured through their outcomes viz., commitment of the employee towards the organization. Employee commitment, in turn, can be evaluated through the length of service of an employee (stability of employment), absenteeism, employee attitude towards the job, organization, etc. The competence of an employee can be appraised through performance appraisal techniques. Congruence of an employee to policies can be identified through the nature and frequency of grievances, disagreement, discord and conflict. Cost and effectiveness can be measured through

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human resource accounting techniques. However, assessing the impact of human resource management policies is highly difficult, but not impossible.

CHAPTER - II

ORGANIZATIONAL PROFILE (ABOUT NHDC)

I have carried out my project work on the topic of “Personnel Policy” in Narmada Hydroelectric Development Corporation Ltd., Bhopal. Brief detail of the organization is given below.

2.1 NHDC

AN INTRODUCTION

Narmada Hydroelectric Development Corporation Ltd. (A joint Venture of NHPC & Govt. of M.P.) was set up on 1” August 2000 with its Corporate Office at Bhopal. NHDC was entrusted with the construction of Indira Sagar Project (1000 MW) and Omkareshwar Project (520 MW). Its authorized share capital is Rs. 3,000 crores, assets of Rs. 7224.63 crores (as on 31.03.2007) and paid up capital of Rs. 1962.58 crores. Both the projects have been completed ahead of schedule in the years 2004-05 and 2007 respectively. NHDC had mastered the technology to complete Hydro Power project (from concept to commissioning) ahead of schedule. It is an ISO 9001-2000 certified company. It is the largest organization for Hydropower development in the state of Madhya Pradesh in terms of hydropower capacity.

NHDC is committed to develop the hydropower and other renewable energy potential in Madhya Pradesh at a fast pace and generate cheap, clean and reliable power by opting the latest technologies, developing power projects within planned gestation period, protecting environment, socio-economic enlistment and preserving ecology in all its aspects including planning, investigation, research, design and preparation of preliminary feasibility and detailed project repots, construction, operation and maintenance of hydroelectric power stations and projects and sale of power generated at hydroelectric stations.

MISSION OF NHDC

The aim of NHDC is to harness the vast hydro potential of Madhya Pradesh in order to produce the clean, cheap, pollution free and inexhaustible power in the state. All the related aspects of construction of a Hydel Project like investigation, preparation of detailed project reports, planning, design construction, operation, maintenance, transmission, distribution, sale and releasing water for the irrigation shall be done under one root.

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VISION OF NHDC

A premiere Organization in the State of Madhya Pradesh for sustainable and vast hydropower potential development at faster pace in Narmada Basin with strong environment conscience.

OBJECTIVES

To plan, promote and organize an integrated and efficient development of Hydro Power potential of Narmada River and its tributaries in Madhya Pradesh in all its aspects.

To undertake, where necessary, the construction of inter-state transmission lines and ancillary works for timely and coordinated inter- stage exchange of power.

To coordinate the activities of its subsidiaries, to determine their economic and financial objectives, targets and to review, control, guide and direct their performance with a view to secure optimum utilization of all resources placed at their disposal

To act as an agent of Government and Public sector financial institutions.

To carry on the business of purchasing, selling, importing, exporting, producing, trading, manufacturing or otherwise dealing in all aspects of development of Hydropower.

QUALITY POLICY

We, at NHDC are committed to develop the hydropower and renewable energy potential in Madhya Pradesh at a fast pace and generate cheap, clean and reliable power.

In order to attain this we will strive: To adapt the latest technologies. To develop power projects within planned gestation period. To protect environment, socio-economic upliftment and preserve ecology. To create a safe and motivating working environment. To continually improve quality management system processes.

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2.2 ORGANISATION STRUCTURE OF NHDC

Abbreviations:

ISP-Indira Sagar Power StationOSP-Omkareshwar Power StationR&R- Rehabilitation & Re-Settlement Office PM&C- Planning, Monitoring & Commercial E&SC-Engineering & State Co-ordination

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INDIRA SAGAR POWER STATION (ISP)

Indira Sagar Power is situated 10 Km from the village Punasa in Khandwa District of Madhya Pradesh. The foundation stone of this project was laid by the then Hon’ble Prime Minister of India Late Smt. Indira Gandhi on 23.10.1984. It is a multipurpose project on the river Narmada with installed capacity of 1000 Megawatt (8x125). Ot will generated 2698 MUs energy, annually. The project will irrigate 2.70 lakh ha. Land annually. As per CCEA sanction the project cost is Rs. 4355.57 Crores (Sept. 2000 Price Level). Due to early commissioning of units, substantial amount of savings has been made in the actual completion cost.

The Project consists of Concrete Gravity Dam of Length 653 meter at top with maximum height (above deepest foundation level) of 92 meter. The Dam involved pouring of 14.00 lacs cubic meter concrete. It consists of 12 main spillway and 8 auxiliary Spillway blocks with effective width of 20 m each. 20 No. Radial gates of size 20 mx17 m have been erected for regulation of flood water. The surface Power House is situated on the right bank of the river, with Machine hall (202 meter long, 23 meter wide, 53 meter high), Service bay (42 meter long, 23 meter wide, 24 meter high) and Transformer yard (202 meter long, 20 meter wide) to house 8 Nos. Francis type turbines of 125 MW capacity each.

The water conductor system consists of one Head Race Channel of length 530 meter, width 75 meter and depth 50 meter with water carrying capacity of 2200 cumecs. Water enters into turbine from intake structure by 8 Nos. Penstick of 8 meter diameter and 157 meter length each. Water flow capacity of each Penstock is 275 cimecs. After power generation water is discharged back into river Narmada through 850m long Tail Race Channel.

Gross Reservoir Capacity of ISP is 12.2 billion cubic meters, which is:

Sufficient for the domestic water recruitment of 100 crores people of India for whole year.

The largest reservoir of India, which is 1.25 times larger than Bhakra Reservoir.

BENEFITS OF PROJECT

Annual Power Generation

Stage-I -2698 MUsStage-II -1850 MUsStage-III -1515 MUs

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Irrigation and Food Grains

Cultivated area -1.75 Lakh HectareArea to be irrigated -1.23 Lakh HectareAnnual Irrigation -2.70 Lakh HectareNo. of villages benefited -564Annual Production of Food grains -4.00 Lakh TonnesAnnual Production of Other crops -10.55 Lakh Tonnes

Pisciculture

Approx 1500 tonnes of fish production, annually from the 913 Sq. Km reservoirs.

Industrial Development

Establishment of New industries in Nimar and Malwa Region due to availability if irrigation and power.

Training

Professional training of various trades being given to project affected families at ITI, Narmada Nagar. One Vocational Training Centre has also been started by NHDC for ladies/girls of PAFs.

Education

Kendriya Vidyalaya started in June 2001 at Indira Sagar Project, Narmada Nagar to provide education to the children of project personnel and adjoining areas.

Supply of water to thermal power plant

Water to be supplied to the proposed 1000 MW thermal power plant in the nearby village Bir.

Tourism

At FRL, the reservoir will spread over 913 Sq. Km. area and will provide opportunities for tourism development and approximately one lac tourists will be attracted every year.

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OMKARESHWAR POWER STATION (OSP)

Omkareshwar Power Station is a multipurpose project, which offers opportunity of power generation & irrigation on both the banks of river Narmada in districys Khandwa, khargone & Dhar of Madhya Pradesh. The project is situated 80 Km from Indore and 40 Km down stream of Indira Sagar Project. The Cabinet Committee on Economic Affairs (CCEA) sanctioned the Project with an estimated cost of Rs. 2224.73 Crores (Nov. 2002 Price Level) and total gestation period of 5 years. Omkareshwar Project was cleared by CCEA on 29.03.2003. The foundation stone of this project was laid by the then Hon’ble Prime Minister of India Shri Atal Bihari Vajpayee on 30.08.2003. All the eight units of this project have started generating power from Nov. 2007 well ahead of sanctioned schedule. Due to early commissioning of units, substantial amount of savings has been made in the actual completion cost.

Total installed capacity of the Omkareshwar Project is 520 MW (8x65). The project will generate 1167 million units energy, annually. Total catchmenty area at the dam site is 64880 Sq.Km. out of which 3238 Sq.Km is downstream of Indirasagar Power Station.

The project consist of 949 m long concrete dam with maximum height of 53 m the deepest bed level across the river narmada. A central Ogee-type Spillway 570m long with crest level E1 179.6m has been provided to pass the Probable Maximum Flood of 88315 cumecs. 23 No. radial gates of size 20m x 18m has been erected for regulation of flood water. 8 penstocks have been erected in 208m long power dam with maximum height of 49m. 10 Nos. sluice gates of size 3.5m x 4.5m at the level of 173.5m for diversion purpose which has now been plugged.

The surface power house (202m x 23m x 53m) of the project is with in the body of dam on the right bank of Narmada consisting of 8 units of 65 MW capacities each with conventional Francis Type Turbines. Water is carried to the Turbines through 8 no. penstocks water is discharged back in the river through 145m long Tail Race Channel.

BENEFITS OF PROJECT

Annual Power GenerationStage-I -1167 MUsStage-II -696 MUsStage-III -540 MUs

Irrigation and Food GrainsCultivated area -2.14 Lakh HectareArea to be irrigated -1.47 Lakh HectareAnnual Irrigation -2.83 Lakh HectareNo. of villages benefited -529Annual Production of Food grains -7.25 Lakh TonnesAnnual Production of Other crops -8.35 Lakh Tonnes

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PiscicultureApprox 360 tonnes of fish production every year.

Tourism94 Sq. Km. reservoir near Omkareshwar Jyotirlinga will be a boon for tourism development in Madhya Pradesh. Approximately 5 Lakh tourists per year will be attracted.

REHABILITATION AND RESETTLEMENT

Due to the formation of reservoirs of ISP & OSP many villages were coming under submergence. Rehabilitation and Resettlement of the Project Affected Families (PAFs) is not only the mammoth task but also include the humanitarian perspective. NHDC has established office at Khandwa for smooth and expeditious work. There were about 40000 PAFs under ISP and 6000 PAFs under OSP. For Indira Sagar it is estimated that Rs. 1723 Crores would be spent against R&R Works vis-à-vis CCEA sanctioned cost of Rs. 1161 Crores and for Omkareshwar Project it is estimated that Rs. 221 Crores would be spent against CCEA sanctioned cost of Rs. 117 Crores.

ENVIRONMENTHydro Power though it is by far the best environmentally preferred option of energy generation, there is still room for improvement so as to make it sustainable.

NHDC is fully conscious of its responsibility towards conservation of Environment while executing these Hydroelectric Projects. All out efforts have been made to offset any inadvertent impact on Environment. The projects on Narmada river, as a matter of fact have been precursor in initiating debate on Environment conservation and hydro power development in India and as a result passed through a very stringent environment scrutiny.

NHDC believes in the fact that the human race is dependent on the well being of our natural resources, floral and faunal diversity and other Environmental parameters. Big storage schemes on one hand takes care of vagaries of monsoon, on the other hand these schemes provide irrigation facilities in large areas. However, these schemes also entail ecological changes. Therefore, it is inevitable to foresee, plan for and mitigate unintended undesirable environmental impacts due to these schemes.

The Indira Sagar Project and Omkareshwar Project were cleared from the Ministry of Environment and Forests, Government of India. The following Environmental requirements are being taken care of:

1. Catchment area treatment.

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2. Compensatory Treatment3. Command area treatment4. Developing Flora/Fauna of adjoining areas5. Seismicity6. Health Aspects7. Archaeological/Anthropological Aspects.

NHDC is committed to comply with all the legal environmental requirements and always strives to prevent environmental degradation during the course of execution of its projects.

MAJOR ACHIEVEMENTS

Indira Sagar Power Station awarded with National Gold and Silver Awards of ‘Best Executed Hydropower Station’ by the Hon’ble Prime Minister of India.

Omkareshwar Project has started generation of power from all of its eight units from Novemember 2007.

During 2006-07, turnover of Rs. 748.54 crores and net profit of Rs. 454.31 Crores was earned by generating power from ISP.

Dividend of Rs. 68.146 crores paid for Financincial Year 2006-07 to NTPC and GoMP as per their equity contribution i.e. 51:49.

During 2006-07, 2605 million units of Power generated from Indira Sagar Power Station.

Upto Oct. 2007, 8438 million units from ISP and 236 million power from OSP supplied to Madhya Pradesh.

Up to 2006-07, Power from ISP supplied to Madhya Pradesh at an average rate of Rs. 1.92 per unit.

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2.3 ROLE OF HR IN NHDC

People are in the main assets of the corporation and accordingly conscious effort has been made to provide the environment for continuous development in line with organizational goals, priorities and individual aspiration of employees. HR initiative undertaken to improve employees performance level include KRA based appraisal system at Senior Executive level as an initial step towards progressive implementation at all level and training for multitasking and redevelopment. The corporation unique work culture is based on Trust & openness. The organization looks at each and every employee as an achiever who will make the difference.

Periodical job rotation and inner location transfer are undertaken to facilitate development and broaden outlook. The human resources functions follow integrated approach to actualize the HR goals. As a learning Organization the new recruits are attached with senior executive under a systematic and formal training to integrate them into the culture of the company. As a part of post employment training and development opportunity, a systematic training plan has been formulated for ensuring minimum seven man-days training per year. This has been designed to groom employee for assuming positions of higher responsibility. The company also continues to focus on building leadership capability and strategic orientation through a series of training programmes and workshops. Demonstrating its high concern for people, we have developed employees’ welfare, health and social security system leading to high level commitment. The employee attrition rate has been lowest in the industry. We have developed Modern Township with best quality of life, containing amenities like, educational, medical and recreational facility for employees and their family members. Corporation also has empanelled hospitals at various locations to meet employee health needs. We have the best record in the industry for accident free man-hours. The corporation emphasizes aligning people capability and competency with current and emerging business challenge.

HRM

POLICIES PROCEDURES SYSTEM

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Responsibility

Although the process of HRM is the primary job of HR Manager, the responsibility extends to other managers also for proper human resources management. Because, employees of an Organization are being employed in different departments are functionally controlled by their respective executives and administratively controlled by HR Division.

In facts, help & co-operation are necessary from bottom to top level for effective management of human resources in any type of Organization

HRM Components

ACQUISTION H R PlanningRecruitment

InternalExternal

Employee Socialization

MAINTAINANCE Safety and HealthIndustrial Relations

DEVELOPMENT Employee TrainingManagement DevelopmentCareer Development

EXTERNAL INFLUENCES

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Organizational Structure of Corporate HR Department

Abbreviations:

HRD- Human Resource DevelopmentATR- Administration Training and HRD & Rajbhasha

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ESTT&ADM- Establishment and Administration.CHAPTER – III

INTRODUCTION

NHDC being a technical organization requires adequate and appropriate number of man power with multifunctional talents and skills. To acquire develop, motivate, utilize and retain Human Resource for continued achievement of NHDC’s objective and roles, a sound Personnel Policy is inevitable. Accordingly a sound and employee oriented Personnel Policy is being implemented. Brief extract of HRM policies adopted in NHDC’s Corporate Office, Bhopal is given below:

3.1 NHDC’s PERSONNEL POLICY

HRM - POLICIES

MEANING OF POLICY

In general policy is termed as “man made rules of pre-determined course of action that is established to guide the performance of work toward organization’s objectives”. Standing plan which specifies routes toward selected goals & serves as standards or measuring yards for elevating performance. Duly agreed statement of organization consisting of its over all purposes & its objectives in various areas with which its operations are concerned. (i.e. personnel, finance, production, marketing and so on)

From the discussion held with the Rules and Policy Section it has been noticed that NHDC Ltd being a Joint Venture of NHPC and Govt of Madhya Pradesh, Personnel Policies of its major stock holder i.e National Hydroelectric Power Corporation Ltd (NHPC) is being adopted with the approval of Competent Authority. Personnel Policies of Corporation maybe grouped under the following heads for reference and study.

1. Wages Policy & Administration

Wage Structure Pay Fixation Rules

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2. Recruitment & Promotion Policy

General Recruitment Rules Recruitment Rules of Para-medical Staff Promotion Policy for Executives Promotion Policy for Supervisors Promotion Policy for Workmen Joining Time Rules Seniority Rules Training & Development Policy

3. Employees Allowances Policy

House Rent Rules Children Education Expenditure Rules Traveling Allowance Rules Conveyance Allowance Rules

4. Policy on Employees Benefits

Leave Rules Leave Travel Concession Rules Medical Attendance Rules Scheme of Company lease / Self lease Accommodation Group Personal Accident Insurance Scheme Family Welfare Scheme

5. Policy on Grant of Advances

House Building Advance Rules Conveyance Advance Rules Computer Advance Rules Furniture Advance Rules Multipurpose Advance Rules

6. Policy on Employees Service Conditions & Performance Evaluation

Conduct, Discipline and Appeal Rules Performance Appraisal Rules

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In addition to above major policies, NHDC ltd has also policy pertaining to employees benefits and service related matters.

BRIEF OF SOME PERSONNEL POLICIES OF NHDC LTD

PAY STRUCTURE & ALLOWANCES

NHDC ltd is proving following scale of pay and allowances and as per Wage Policy of Corporation.

1. SCALES OF PAY

NHDC LTD has the following Scales of pay on Industrial DA Pattern (IDA), for Workmen, Supervisors and Executives upto Executive Director Level (excluding the appointments made by the Central Government) on a uniform basis in the Corporation.

Workmen Supervisors Executives

GradeCode

(Rs.)GradeCode

(Rs.)GradeCode

(Rs.)

W-0 3750-2.5%-5450* S-1 7900-3.5%-13700 E-18000-290-300-330(2)-350-360-370-390-410-420-440-460-470-480-13400

W-14400-3%-8430 S-2 8600-3.5%-14920 E-2

8600-330(2)-350-370-380-400-420-430-450-470-490-510-530-540-14600

W-24700-3%-9010 S-3 9300-3.5%-15590 E-2A

10750-420-430-450-470-490(2)-530-540(3)-550(2)-16750

W-35000-3%-9590 Spl.Gr 10000-4%-16000 E-3

13750-550-575-600-610-620-625-685(2)-18700

W-45800-3%-10790 E-4

16000-660-685(4)-700(2)-20800

W-56700-3%-12500 E5

17500-630-685(2)-700(4)-22300

W-67200-3.5%-13100 E-6

18500-700(2)-730-750-780-850-890-23900

W-77900-3.5%-13700 E-7

19500-750-810-845-880-910-945-960-25600

W-88550-3.5%-14850 E-8

20500-670(2)-850-900-950-980(2)-26500

W-99000-3.5%-15100 E-9

23750-900-950-980(2)-990-28550

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2. DEARNESS ALLOWANCE

Dearness Allowance in the pay scale payable would be governed as per the following provision:

DA shall be revised on 1st April, 1st July, 1st October & 1st January of each year based on the percentage increase / decrease in the quarterly average of All India Consumer Price Index (AICPI) for the quarters ending February, May, August and November respectively over AICPI 1708 (Base 1960 = 100).

There shall be 100% neutralization of DA for employees. DA shall be payable on Basic pay only. The percentage increase / decrease in the quarterly average of AICPI for the

period ending February, May, August and November over index 1708 would be taken upto one decimal point.

The amount of DA would be rounded off to nearest rupee.

3. CITY COMPENSATORY ALLOWANCECity Compensatory Allowance is admissible in ‘A’, ‘B-1’ and ‘B-2’ class cities.

The rates at which City Compensatory Allowance is admissible is being notified from time to time. Classification of cities shall be regulated in term of the Central Government Orders issued from time to time.

4. HOUSE RENT ALLOWANCE

City/town Rate Per Month w.e.f. 24.8.99A-1 30% of PayA 25% of PayB-1, B-2 & C 15% of PayUnclassified 10% of Pay

5. LEASED ACCOMMODATIONExecutives of NHPC are provided with the facility of Company Leased Accommodation in the form of Third Party Leased Accommodation and Self-Leased Accommodation. The rate of monthly rental ceiling of the lease amount is based on the maximum of the scale, as under:

Classification of cities

Percentage rates of monthly rental ceiling

A-1 Class 40% of max of the pay scaleA Class 35% of max of the pay scale

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B1, B2 & C 25% of max of the pay scaleUnclassified 20% of max of the pay scale

6. NON-PRACTICING ALLOWANCE – For Medical Doctors

For Medical Officers in IDA pay scales, NPA shall be payable @25% of basic pay. Non-practicing allowance at the revised rates would be admissible only in respect of those medical posts for which a medical qualification recognized under the Medical Council Act 1956 or under the Dentists Act 1948 has been prescribed as an essential qualification and to which this allowance is attached at present. NPA will not count for any other purpose.

7. NIGHT SHIFT ALLOWANCE – Admissible only in IDA pay pattern

Pay Grade Rate p.n.Shift(Rs)E-5 and E-6 190E-3 and E-4 150E-1 to E-2A 115Special Grade 88S-1 to S-3 65W-6 and above 65Upto W-5 40

8. WASHING ALLOWANCE

All Workmen and Supervisors receiving uniform cloth (livery) shall be eligible for Washing allowance @ Rs. 100 per month.

9. CHILDREN EDUCATION ASSISTANCE

A. Children education expenditure reimbursement@ Rs. 250/- pm per child restricted to 2 children

B. Hostel subsidy@ Rs. 1500/- pm per child restricted to 2 childrenNote: Hostel Subsidy is payable only to employees posted at Projects/Power Stations

NOTE: For detailed terms & conditions for admissibility of any of the allowances briefed in this chapter, respective rules in the HR Manual may be referred to.

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CONDUCT DISCIPLINE AND APPEAL RULES

SHORT TITLE AND COMMENCEMENT

These rules shall be called "NHPC Conduct, Discipline and Appeal Rules" and come into force with effect from 14.5.1979.

APPLICATION

These rules shall apply to all employees except workmen as defined in the Industrial Employment (Standing Orders) Act, 1946.

Nothing in these rules shall operate to deprive any employee of any right or privilege to which he is entitled; by or under any law for the time being in force; or by the terms and conditions of service or any agreement subsisting between such person and the Corporation.

Wherever, it is necessary to make provisions in respect of employees inconsistent with any of these rules, the authority making appointments with the prior approval of the Corporation may by an agreement with such employees, make such provision and thereupon these regulations shall not apply to such employees to the extent to which the provisions so made are inconsistent.

GENERAL

1 Every employee of the Corporation shall at all times:

(i)   Maintain absolute integrity;(ii)  Maintain devotion to duty; and(iii) Do nothing which is unbecoming of an employee of the Corporation and conduct

himself at all times in a manner which will enhance the reputation of the Corporation.

2 Every employee of the Corporation holding a supervisory post shall take all possible steps to ensure the integrity and devotion to duty of all employees for the time being under his control and authority.

3 No employee shall

(i) In the performance of his official duties, act in a discourteous manner;(ii) In his official dealings with the public or otherwise adopt dilatory tactics or

willfully cause delays in disposal of the work assigned to him.

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No employee shall, in the performance of his official duties, or in the exercise of powers conferred on him, act otherwise than in his best judgment except when he is acting under the direction of his official superior;

MISCONDUCT

Without prejudice to the generality of the term “misconduct" the following acts of omission and commission shall also be treated as misconduct.

Theft, fraud or dishonesty in connection with the business or property of the Corporation or of property of another person within the premises of the Corporation.

Taking or giving bribes or any illegal gratification.

CRITICISM OF GOVERNMENT AND THE CORPORATION

No employee shall, in any radio, TV broadcast or in any document published under his name or under any pen name or pseudonym or in any communication to the press or in any public utterances make any statement.

GIVING OR TAKING DOWRY

No employee of the Corporation shall: give or take, abet giving or taking of dowry; or demand directly or indirectly from the parents or guardians of a bride or bridegroom, as the case may be, any dowry. For the purpose of this rule, "Dowry" has the same meaning as in the Dowry Prohibition Act, 1961 (28 of 1961). more than Rs.15,000/-.

PENALTIES

The following penalties may, for good and sufficient reasons and as hereinafter provided, be imposed on an employee:

Minor Penalties

a. Censure.

b. Withholding the increments of pay with or without cumulative effect.

c. Withholding of promotion.

d. Recovery from pay of such other amount as may be due to him of the whole or part of any pecuniary loss caused to the Corporation by negligence or breach of orders.

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e. Reduction to a lower stage in the time scale of pay for a period not exceeding 3years, without cumulative effect and not adversely affecting his terminal benefits.

Major Penalties

a. Reduction to a lower time scale of pay, grade, post or service

b. Removal from service

c. Dismissal from service

d. Compulsory Retirement.

IMPOSITION OF PENALTIES

The Disciplinary Authority may impose any of the penalties specified under rule on any employee, after following the laid down procedure under this rules. No major penalty shall be imposed by any authority lower than actual appointing authority.

LEAVE RULES    These rules shall apply to the employees of the Corporation including Departmental Trainees / Trainees / Workmen covered under Industrial Employment (Standing Orders) Act, 1946 working in regular scales of pay. "Regular employee" means an employee who is declared by the Corporation to have satisfactorily completed his   prescribed period of probation on initial appointment.

Corporation grants to eligible employees the following types of leave as per the provisions stipulated under the Leave Rules.

"Earned leave" "Half pay leave "Commuted leave" "Extraordinary leave" Maternity Leave Paternity Leave Quarantine Leave Child Care Leave SPECIAL DISABILITY LEAVE

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GENERAL CONDITIONS a. Leave cannot be claimed as a matter of right. When the exigencies of Corporation

service so require, leave of any kind may be refused or revoked by the authority competent to grant it. The kind of leave applied for by the employee cannot be altered except at the request of the employee. Such alterations should not be permissible between disability leave and other kinds of leave.

b. An employee’s claim to leave is regulated by the rules in force at the time the leave is applied for and granted.

c. An employee who is dismissed or removed from service and is reinstated on appeal or revision shall be entitled to count for leave his service prior to dismissal or removal, as the case may be. Except as otherwise provided in these rules, any kind of leave under these rules may be granted in combination with or in continuation of any other kind of leave, except casual leave.

d. An employee while on leave including leave preparatory to retirement or leave granted beyond the date of retirement or quitting service shall not take up any service or employment elsewhere including the setting up of a private professional practice of any nature without obtaining the previous sanction of the competent authority.

e. No leave shall be earned in respect of any period of employment during leave preparatory to retirement. Normally no leave shall be granted to an employee until a report regarding its admissibility has been obtained from the authority maintaining the leave account. If leave is sanctioned without such report in any case, it shall be subject to admissibility being certified by the authority maintaining the leave account.

f. Leave shall not be granted to an employee when a competent disciplinary authority has decided to dismiss or remove or compulsorily retire him/her from the service of the Corporation.

g. Prefixing and suffixing holidays to leave shall be allowed automatically except in cases where for administrative reasons permission for prefixing/suffixing holidays to leave is specifically withheld. In the case of leave on medical certificate, if the day on which an employee is certified medically fit for rejoining duty happens to

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be a holiday, he shall automatically be allowed to suffix such holiday(s) to his medical leave and such day(s) shall not be counted as leave.

h. In case an employee is recalled to duty before the expiry of his leave, such recall to duty shall be treated as compulsory in all cases.

i. An employee who desires to extend his leave shall make an application to that effect to the sanctioning authority in sufficient time to reach the latter before the expiry of the leave already granted.

j Except in emergency, applications for leave for three days or more shall be made at-least seven days before the date from which the leave is required.

k A copy of the orders passed on the application shall be given to the employee, and if leave is curtailed, refused or postponed, the reasons shall be recorded in writing by the authority making the order.

l An employee before proceeding on leave shall furnish in the application his address during the period of leave.

m An employee who has been sanctioned leave or an extension of leave on medical grounds shall not resume duty unless he produces a "Fitness Certificate" from an Authorized Medical Attendant.

n Unless the authority competent to grant leave extends the leave, an employee who remains absence after the end of sanctioned leave shall be deemed to be absent unauthorized.

EARNED LEAVE

All employees are entitled for 30 days EL in a calendar year. The earned leave account of the employee shall be maintained in two parts i.e. Encashable leave account and non-Encashable leave account. The credit to be afforded to the leave account of each employee in respect of Earned leave at the commencement of each calendar half year shall be at a uniform rate of 15 days and shall be segregated as under w.e.f. 01.07.2001: On 1st January and 1st July every year

Encashable account - 11 days Non- encashable account - 4 days

The credit in advance of 15 days Earned leave on 1st of Jan. or July if exceeds the maximum accumulation limit will not lapse but will be adjusted against the Earned leave availed / encashed during the period of next credit of Earned leave and only un-availed /

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un-encashed portion of leave credited in advance will lapse at the end of the period of six months

HALF PAY LEAVE

20 days in respect of each completed year of service.*Note: There is no ceiling on accumulation of HPL in respect of employees on IDA Scales of Pay.

COMMUTED LEAVE

a) An employee is entitled to commuted leave not exceeding half the amount of half ay leave due.

b) A maximum of 120 days on full pay during the entire service will be allowed.In respect of employees on IDA scale of pay, there is no Ceiling on amount of commuted leave that can be availed during entire service.

MATERNITY AND PATERNITY LEAVE

Employees on IDA scales of Pay

1. Maternity Leave may be granted to regular married female employees (excluding Apprentices) during Pregnancy and/or Miscarriage/abortion in accordance with the following rules:-

a. Regular employee means an employee who has completed 1 year service even if the order of completion of probation has not been

issued for want of police verification etc. In case of Trainees, the period of training will be taken into account for 1 year service condition where training has been declared to be successfully completed.

b. Maternity Leave shall be granted on full pay for a period which may extend upto 135 days or to the end of 90 days from the date of

confinement, whichever is earlier, subject to production of medical certificate from AMA.

c. Maternity Leave may be granted to a married female employee for a period upto 135 days w.e.f. the date of commencement (before

delivery but not earlier than 45 days from the expected date of

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delivery) subject to the condition that prior permission is obtained by the employee and she fulfills all other prescribed criteria. The condition for restriction of Maternity Leave to 90 days from the date of confinement can, therefore, be relaxed with the prior approval of Sanctioning Authority.

In respect of matters not -specified above, the provision of Maternity Benefit Act, 1961 shall apply. PATERNITY LEAVE

The male employees with less than 2 surviving children shall be granted Paternity Leave for a period of 15 days only twice in the entire service during confinement of his wife. This will be regulated as under:-

A male employee with less than two surviving children will be granted paternity leave for a period of fifteen days during the confinement of his wife. During the period of such leave he shall be paid leave salary equal to the pay drawn immediately before proceeding on leave. Paternity Leave shall not be debited against the leave account and may be combined with any other kind of leave (as in the case of Maternity Leave). It may not normally be refused under any circumstances. Paternity leave is to be availed within the same period in which Maternity Leave is availed.

RECRUITMENT RULES

These rules will be called "National Hydroelectric Power Corporation Ltd. Recruitment Rules" and will come into force with effect from 3rd September, 1977.

Except as otherwise provided by or under these Rules they shall apply to all persons appointed against regular posts in connection with the affairs of the Corporation or any of the Projects / Units / Power Stations under its administrative control. These Rules shall not apply to appointments on casual or on contract basis for specific jobs and periods.

CLASSIFICATION OF POSTS

For purposes of recruitment the posts under the Corporation are classified in the following cadres / groups:

CADRE/ GROUP POST GRADE CODE1 Management Cadre Executive Director

General ManagerChief/Chief EngineerSr. Manager

E-9E-8E-7E-6

2 Executive Cadre ManagerDy.Manager

E-5E-4

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Asstt. ManagerEngineer / OfficerTrainee Engineer / OfficerAsstt. Engg. / Officer

E-3E-2AE-2E-1

3 Supervisory Cadre Special GradeSr. Sup. Gr.ISr. Sup. Gr.IISupervisor

S-4S-3S-2S-1

4 Workmen Cadre Highly Skilled Skilled/Ministerial/ Office Based Staff

Semi-Skilled Unskilled

W-8,W-9 W-4 to W-7

W-2 to W-6W-0 to W-4

SOURCES OF RECRUITMENT

The posts under the Corporation shall be filled in by resorting to one or more of the following methods:

a. Promotion of existing employees from the lower scales who meet the prescribed standards

b. Direct recruitment from outside candidates or through Press Advertisement in Employment News, National Dailies or local News Paper, as the need be

or through internal induction by issue of internal advertisement/circular for employees who meet the prescribed qualification, job specifications, subject to any instructions issued by the Central Government in this regard from time to time.

c. Through Employment Exchanges as per provisions of the Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959.

d. Deputation from Central/State Governments or Public Sector Enterprises.e. Recruitment of persons declared as surplus by the Government and other Public

Enterprises, etc. as per directives of the Central Government.

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3.2 ROLE OF HR DEPARTMENT IN FORMULATION, IMPLEMENTING AND EVALUATING PERSONNEL POLICIES.

NHDC being a joint venture of NHPC and Govt. of M.P has been adopting a Personnel Policy of NHPC, hence NHDC do not have any initiative role in formulating any Personnel Policy, where as it has been understood from the discussions with NHDC’s HR Department that initiative role is being taken for formulation of own Personnel Policies for NHDC. Initiative role shall be consisting of

1. Preparation of Draft Personnel Policy.

2. Obtaining comments and suggestions of HODs, HOPs and employees.

3. Policy Compilation/Review

4. Approval of Policy

5. Implementation of Personnel Policy

6. Evaluation of Personnel Policy

STEPS IN POLICY FORMULATION

Step 1: Preparation of draft policies. Study prevailing problems in organization Calling the helps of the experts Calling policies of other industries Guidelines of state and central governments

Step 2: Circulation of draft policies and obtain comments from the concerned. Incorporate relevant comments

Step 3: Preparation of second draft policy. Explaining and Discussion with the concerned. Financial concurrence Incorporate agreed points into the draft. Signing of Memorandum of Understanding

Step 4: Finalization of Policies. Approval of top management

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Step 5: Implementation and Administration of policies. Communication to all the concerned Post implementation evaluation of policy. Review and amend the policy wherever and whenever required.

HRM - PROCEDURES

It indicates “HOW?” HRM policy is to be carried out. It spells out in details the methods/processes, movements and specific rules and regulations and also indicates the steps, time, place and personnel responsible for implementing it. Procedures go further than policies in helping to clarify what is to be done in particular circumstances. Procedures are less general than policies and more specific in outlining the course of action and the sequence of activities necessary for implementation of policies. It consists of entire broad course of action governing employees at all levels.

E.g.

Formulate and implement HRD policy in NHDC is a general policy. Whereas to formulate and implement the following activities should be carried out.

Preparation of competency standards for each level of employees in different discipline( Workmen , Supervisor, Executives).

Identify the competency level of employees (through survey, discussion, questionnaire)

Analyze the competency gaps. Impart Knowledge and skill development training to the needy employees as per

level of activity. To bring about change in the performance of the individual/group of employees in

specific and the performance of the organization in general in pre-determined time span.

HRM SYSTEM CONCEPT

SYSTEM

A set of Objects working together & complementing each others’ job to achieve pre-specified goals.

HRMS

It is a Sub-System of general Management, which has a set of activities having the nature of interdependent & performing together with other sub systems, towards the achievement of Organizational predetermined goals.

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Fig: - HUMAN RESOURCE MANAGEMENT SYSTEM

HUMAN RESOURCE MANAGEMENT SYSTEM

1. HR Acquisition Recruitment Employee Socialization HR Planning

2. HR DevelopmentEmployee Training & Development Career Development

3. HR MotivationCompensation & BenefitsPerformance EvaluationRewards & PromotionDisciplineJob Design

4. HR MaintenanceSafety & Health of EmployeesIndustrial RelationsPersonnel AuditOther matters

MAN P OWE R

HR POLICIES

AND

PROCEDURES

HR MOTIVATION

HR DEVELOPMENT

HR ACQUISITION

HR MAINTAINENCE

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3.3 IMPLEMENTATION OF PERSONNEL POLICIES IN NHDC

NHDC is adopting Personnel Policies of NHPC and the same is implementing by the following methodology.

i. By issue of Personnel Policy and Periodical Compendium.

ii. By issue of employee hand books.

iii. By issue of office orders & circulars regarding modifications on Personnel Policy.

iv. By issue of circulars and guidelines on specific policy regarding clarification by NHPC as well as NHDC.

v. Periodical HR heads meeting con to discuss various issues pertaining to Personnel Policies and necessity of reviews.

vi. Presentations and lectures on Personnel Policies.

vii. vii. Review and modification of Personnel Policy wherever and whenever needed as per Government Directives/orders or as per law applicable to NHDC.

Visit hrmba.blogspot.com for more

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CHAPTER – IV

4.1 SOURCE OF DATA AND SELECTION OF SAMPLES

I selected samples for my study from NHDC Corporate Office for the purpose of my study and collection of data. The total manpower of NHDC is approximately 775 (including 265 Executives, 95 Supervisors, and 415 workmen). NHDC being a joint venture of NHPC & Govt of M.P, consists employees of NHPC, NHDC cadre and Govt. of M.P. on deputation.

Out of 115 regular employees working at NHDC Corporate office, Bhopal. I selected 15 employees i.e. 5 employees from each category (executives, Supervisors, and work men) at simple random category for collection of data through Questionnaire Method.

4.2 COLLECTION OF DATA

To study the Formulation, Implementation and Evaluation of ‘PERSONNEL POLICY’ in NHDC Ltd. was a very complex task for the purpose of my study and acquisition of relevant information and data, I used more than one method of data collection to elicit information as reliable and valid as possible. The sources used are:-

A. PRIMARY SOURCES

I adopted following method to collect some primary data in support of my study on Personnel Policies through the following methods:

1. Personal Interviews: I adopted this method because Personal Interview with a employees is a very useful technique to know about the real situation existing in different department along with their own opinion regarding the topics.

2. Questionnaires Method: To make my study scientific and receiving the desired information, formulate a comprehensive questionnaire consisting of all relevant factors that have direct / indirect relation with ‘Personnel Policies’.

B. COLLECTION OF DATA BY SECONDARY SOURCES

1. Policy extract collected from Rules & Policy section of HR Department, NHDC Ltd. regarding wages, Recruitment, Promotion, and Advances etc.

2. Co-operation employees Hand Book on Personnel Policy.3. Information Collected through NHDC’s website.

www.nhdcindia.com

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4.3 SAMPLE QUESTIONNAIRE

A STUDY ON “PERSONNEL POLICY” WITH REFERENCE TO

NARMADA HYDROELECTRIC DEVELOPMENT CORPORATION

LTD., NHDC PARISAR, SHAMLA HILLS, BHOPAL.

QUESTIONNAIRE

Part-I. PERSONAL DATA :

1. Employee No. :

2. Designation :

3. Department :

4. Scale of Pay & Gross Pay :

5. Age : SEX : M/F

6. Qualification :

Part-II. PERSONNEL POLICY

Instruction

1. Please, go through the following items carefully and indicate your answer with the help of the Key words given below if it describes the particular aspect of NHDC Personnel Policy. As such you are requested to answer the entire items truly. Please do not skip away.

2. Select the number from the given choices below and write it next to the statement

to go express your answer.

Sl No Grade of Response to be recorded

Numerical Value given to the Grade

1 Excellent 52 Very Good 43 Good 34 Average 25 Poor 1

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Note:- In terms of amount of benefits you receive from Personnel Policy of NHDC and /or degree of implementation of Personnel Policies in NHDC

PLEASE DO NOT USE KEY NO.5 i.e. “POOR” OFTEN.

A. PAY & BENEFITS

Think of the pay you get now, how well your present pay recognise

your service, skill, ability and professional knowledge and able to meet

expenses?

Pay Scale offering …………………………

Allowances/Perks with Pay Scale …………………………

Other Benefits such as leave, LTC etc …………………

Special Incentives ………………………………

Payment is made timely ………………………………

B. OPPORTUNITIES FOR PROMOTION :

This portion tells about the scope of promotion facilities provided by

your Organization in your career.

Opportunity for advancement……………………..

Promotion on merit/ outstanding service……………………….

Promotion policy………………………

Regular promotion……………………………..

Promotion with Pay Scale……………….

C. IMPLEMENTATION & UNDERSTANDING OF PERSONNEL POLICY

Personnel Policy is equally applied …………………

Personnel Policy is interpreted in simple ways…………………..

Timely Modification / Clarification is given……………………..

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Personnel Policy is available / circulated in English/ Hindi with a view to

make employees understand ……………

Level of your Co-operation in implementing Personnel Policy …………

Signature of the Respondent

Date:-

4.4 ANALYSIS OF DATA THROUGH GRAPHICAL REPRESENTATION

Analysis of Employees’ InformationFrom the particulars given by samples, an analysis has been done on the basis of

age, education, category, and degree of Implementation and Benefits of Personnel Policy following Graphs/Charts has been evolved.

CHART-1

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CHART-2

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CHART-3

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CHART-4

SCALE

1st Grade – POOR2nd Grade – AVERAGE3rd Grade – GOOD4th Grade – VERY GOOD5th Grade – EXCELLENT

The above chart has been prepared on the basis of responses given by samples in the questionnaires, as they have been asked to give their response with regard to ‘degree of implementation and benefits of Personnel Policies in NHDC.

The above chart gives an impression that the degree of Implementation and its benefits of Personnel Policies in NHDC is very good because 4 th Grade i.e. Very Good has the highest frequency (60).

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4.5 MAJOR FINDINGS, CONCLUSION AND SUGGESTION

In the present study, an attempt has been made to understand nature and importance of Personnel Policy in NHDC and its benefits through implementation.Three different tools have been used in the study. This Chapter provides the following major findings, conclusions and suggestion about the study conducted. These are given on the basis of analysis and interpretation of data collected.

A) FINDINGS:

1. The findings of the study reveal that there is significant difference between the supervisory and non-supervisory personnel with regard to the socio-economic variables such as salary, education, sex, age, etc.

2. It is quite interesting to note that results pertaining to the perception of supervisory and non-supervisory personnel on the personnel Policy reveals that the employees pay their involvement and concentration to their individual factors and adhere them in letter and sprit.

3. From the perception of the respondents on benefits of Personnel Policy it is found that the all cadre employees have significantly expressed higher satisfaction namely, pay, allowances, medical benefits, welfare facilities, social security and career development etc.

B) CONCLUSIONS:

In conclusion, though the present Study has certain limitations such as time constraints, it can be concluded with the perceptions of the sample employees (i.e. 15) on Personnel Policy and its benefits in NHDC, and the Corporation provides various benefits and facilities through various Personnel Policies based on their nature of work, grade, and post. Further it is concluded with this study that there is significant positive relationship between the implementation of Personnel Policy of NHDC and co-operation of line and staff employees in the organization.

C) SUGGESTION:

I have provided the following suggestion, after the findings and conclusions of present study, for adding image of the individual Organization with excellence through HR and to get higher status in hydroelectric sectors.1. Finalization of own Personnel Policy in NHDC by effective process of

formulation to implementation.

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CHAPTER-V

BIBLIOGRAPHY / REFFERED BOOKS

BOOK NAME AUTHOR(S)

1. Human resource management V. S. P. RaoText and cases

2. Personnel management C. B. Mamoria

3. HR Management & Development H. C. Sainy & Sharad

Kumar

2. Human Resource Management T. N. ChhabraConcepts and Issues

5. Research Methodology C. R. Kothari

Referred Web Site: www.nhdcindia.com

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