Human Resource Management Practices at the National thermal Power Corporation (NTPC) in India

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Case Details:

Case Code : HROB073
Case Length : 24 Pages
Period : 2000-2005
Pub. Date : 2005
Teaching Note : Available
Organization : National Thermal Power Corporation
Industry : Utilities
Countries : India

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"I firmly believe in the idea that the basic difference between a winning company and a losing company is the difference among their employees."¹

- C. P. Jain, Chairman and Managing Director, NTPC, in 2000.

"It's a power giant with the heart of a Public Sector Unit, but the mind of a private enterprise. A big reason why not even one in a hundred of its employees ever thinks of leaving NTPC."

- Business Today, September 14, 2003.

"The best employers (included NTPC) inspire and maintain a passion for outstanding achievement. They not only pose sharp focus and clarity but also share it simply and effectively with the employees."²

- Mick Bennett, Managing Director, Asia-Pacific, Hewitt Associates in 2004.

A Great Place to Work !

National Thermal Power Corporation Limited (NTPC), a public sector power major, bagged top positions in several workplace surveys conducted in 2004.

It figured among the top ten 'Best companies to Work for in India' survey conducted by Mercer HR Consulting.³ It was also ranked the third best employer for the second consecutive year in the 'Best Employers in India' survey by Hewitt Associates.⁴ In addition, it was also adjudged the third great place to work by Grow Talent Company⁵ in the 'Great Places to Work' Study, ahead of companies like Johnson and Johnson, Cadbury, Philips Software, etc. (Refer Exhibit I for the list of company rankings).

This ranking was based on an international benchmark, the Great Place to Work Trust Index, used by Fortune magazine in preparing its '100 best companies to work for' list.

Human Resource and Organization Behavior | Case Study in Management, Operations, Strategies, Human Resource and Organization Behavior, Case Studies

The above surveys commended the company's leadership commitment to employees; the alignment of its HR policies with corporate strategy; its learning and development efforts; its value-driven culture and its ability to create work-life balance for its employees.

Besides these, the company won several other awards for its HR practices (Refer Exhibit II for awards won by NTPC for its HR practices). NTPC's website glowed with a picture of its happy employees and a tag line that read "Generating Smiles Beyond Megawatts."

The awards did not come as a surprise to its 20,971 employees,⁶ whose low attrition rate of 0.17% (for 2004) also testified to their fondness and attachment to the company (Refer Exhibit III for details of trends in attrition). NTPC had bagged top positions in these surveys over several multinational companies operating in India. NTPC was exceptional in being the only Public Sector Undertaking (PSU)⁷ that ranked in these surveys.

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1] http://darpg.nic.in/content/upload/Event114.htm.

2] "TCS, Bharti, NTPC Best Employers," December 10, 2004, www.theeconomictimes.com.

3] Mercer HR Consulting is a global HR firm offering human resources management software and consulting services. It conducted the 'Best companies to work for in India' survey, 2004, in association with Business Today magazine.

4] Hewitt Associates is a global HR outsourcing and consulting firm delivering a complete range of human capital management services. It conducted the 'Best Employers in India' survey that covered 220 major companies operating in India for 2004 in association with CNBC TV18.

5] Grow Talent Company Limited, conducted 'The Great Place to Work Study' in partnership with The Great Place to Work Institute, Inc. of the US and Businessworld magazine. The survey for 2004 covered 130 organizations in India.

6] As of March 31, 2005 the employee strength increased to 23,500.

7] A corporation with government ownership.