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A Case Study of Job Satisfaction of Executives in relation to Performance Management System of NTPC Limited, Kaniha
Apoorva Behera
Research Scholar, P.G Department of MBA, Berhampur University Email [email protected]
Abstract - Executives are the most precious asset of any company. Every organizations now a days is using performance appraisal for various purposes, so that the real potential of the human asset can be known and utilized in a systematic and a planned way. This paper explore the ways that how Indian Public sector organization, NTPC has practiced and implemented Performance Management System to retain the executives and talent sustainability.
The study shall further review the transformation in some of the performance management components to manage the talent in the organization. The performance management system of any organization is made by considering the factors or aspects that can be identified by the continuous learning and proper determination of the system. Performance appraisal not only evaluates the work but also try to boost the morale and motivate them to do the best. Given that all appraisal involve judgments which are not always fair, organization use multifarious techniques and tools to measure performances as objectively as possible. Besides a good technique, successful performance appraisal requires a consistent approach, clear standards, measures and bias free rating that will leads to job satisfaction of executives.
Keywords: Performance appraisal, Job satisfaction, morale, motivation, executives, asset, talent sustainability.
INTRODUCTION
Executives are the most precious assets of any company.
Every organization now a days is using various methods for appraising the performance of the employees so that the real potential of the human asset can be known and utilized in the proper way. Performance appraisal not only evaluates the work done by the employees but also try to boost the morale and motivate them to do their best. Job satisfaction and performance can be taken as two sides of a coin in a holistic term because when the executives have internal and external satisfaction with what they are doing then it can be directly reflected through the performance. Another plausible psychological explanation for people’s resistance to performance evaluations is that negative appraisal can represent a straightforward threat to one’s self esteem.
Attempting to understand the nature of job satisfaction and its effect on work performance is not easy.
Organizational psychologists have been wrestling with the question of the relationship between job satisfaction and job performance. Two are positively related in a particular fashion, happy worker is a good worker.
Job satisfaction is a complex and multifaceted concept, which is a different thing to different people. Job satisfaction is usually linked with motivation, but the nature of the relationship is not clear. Satisfaction is not same as motivation. Job satisfaction is more an attitude, an internal state. In recent years attention to job satisfaction has become more closely associated with broader approaches to improved job design and work organization, and the quality of working life movement.
LITERATURE REVIEW
Selected review of literature is presented in this section.
Job satisfaction is so important in that, its absence often leads to lethargy and reduced organizational commitment (Moser, 1996). According to Jamal, (1997)
“when job satisfaction is not there, problems are started.
At times the movement is from one profession to another that is considered a greener pasture. This later is common in countries grappling with dwindling economy and its concomitant such as poor conditions of service and late payment of salaries (Nwagwu, 1998).
According to Cooper (2005),” job satisfaction cannot be a resultant of a single factor. There are many aspects which are dynamic and individual in nature. Cruz-Castro and Sanz-Menéndez, (2010) believed that job satisfaction is the indicator of job involvement and employee engagement at large. There are various concepts which are inter- related: job involvement, job stress, job satisfaction, and organizational commitment with burnout among correctional staff.
Griffin et al (2011) in their research indicate that job burnout is a negative response that is harmful to the employee and to the organization. Specifically, job satisfaction had an inverse relationship with emotional exhaustion, depersonalization, and a sense of reduced accomplishment at work, whereas job stress had a significant positive relationship with depersonalization and emotional exhaustion. Job involvement also had a positive association with emotional exhaustion, whereas commitment to the organization had no relationship with any of the three dimensions of burnout.
Ting (2012) found that few school or educational studies have simultaneously explored both internal marketing and organizational commitment, and of those that have only direct effects were examined. This study clarifies the relationship between school organization's internal
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marketing and teachers' organizational commitment by examining the mediating role of teachers' job involvement and job satisfaction. The results show that internal marketing, job involvement, and job satisfaction all have a direct impact on organizational commitment.
The history of job satisfaction stems back to the early 1900’s with the situationist perspective on job satisfaction. This perspective states that satisfaction is determined by certain characteristics of the job and characteristics of the job environment itself. This view has been present in the literature since the first studies by Hauser, Taylor and the various projects at the Western Electric plants in Hawthorne (Cranny, Smith &
Stone 1992). These studies follow the assumption that when a certain set of job conditions are present a certain level of job satisfaction will follow. The Hawthorne Studies are considered to be the most important investigation of the human dimensions of industrial relations in the early 20thcentury. They were done at the Bell Telephone Western Electric manufacturing plant in Chicago beginning in 1924 through the early years of the Depression. The Hawthorne plant created an Industrial Research Division in the early 1920’s.
Personnel managers developed experiments to explore the effects of various conditions of work on morale and productivity (Brannigan & Zwerman 2001). “Today, reference to the “Hawthorne Effect” denotes a situation in which the introduction of experimental conditions designed to identify salient aspects of behavior has the consequence of changing the behavior it is designed to identify. The initial Hawthorne effect referred to the observation that the productivity of the workers increased over time with every variation in the work conditions introduced by the experiments” (Brannigan &
Zwerman 2001). Simply stated when people realize that their behavior is being watched they change how they act. The development of the Hawthorne studies also denotes the beginning of applied psychology, as we know it today. These early studies mark the birth of research on job satisfaction relating to ergonomics, design and productivity.
One of the most popular and researched measures of job satisfaction is the Job Descriptive Index (JDI). “The JDI is a 72-item adjective checklist type questionnaire developed by Smith, Kendall, and Hulin in 1969”
(Gregson, 1991). This measure basis itself on five facets of job satisfaction. The first facet is the work itself, satisfaction with work itself is measured in terms of the core job characteristics such as autonomy, skill variety, feedback, task identity, and task significance (Hackman
& Oldham, 1975). Supervision, the second facet, is measured in such ways as how supervisors provide feedback, assess employee’s performance ratings, and delegate work assignments. Coworkers, the third facet, are measured in terms of social support, networking, and possible benefits attached to those relationships (Cranny, Smith & Stone, 1992). Pay, the fourth facet, is an important source of satisfaction because it provides a
potential source of self-esteem as well as the generic opportunity for anything money can buy (Brockner, 1988). Obviously satisfaction with pay is measured primarily by current income but also by opportunities for salary increases. Promotion is the final facet and the one that the JDI explicitly assesses how perceptions about the future can affect job satisfaction. Today the facets of the JDI are generally assessed by modifying the adjective checklist and using a Likert scale on statements such as, “opportunities for advancement are plentiful” measured from one (strongly disagree) to five (strongly agree) (Cranny, Smith & Stone, 1992).
OBJECTIVES OF THE STUDY
The objective of the study is basically to know about the effect of performance management system on Job satisfaction of executives and also the employee perception about performance management system and satisfaction across the department of NTPC, Kaniha.
To get the internal view on the job satisfaction among the executive. To identify the key components of performance management system at NTPC.
Company Profile
In the year 1975 NTPC was setup. It is the largest power company to accelerate power development in India.
NTPC is the power generation, which is the mainstay of the company it has already ventured into consultancy, power trading, ash utilization and coal mining. NTPC has sound people policies as the base of its strong workforce, whose toil and dedication makes it one of the market leaders in power generation in the country. In the public sector, NTPC policies have become best practices to be followed. Right from recruitment to training, retention, up gradation of employees, we make sure that the employee welfare is first- it is paramount for the organization. The concept of Corporate Social Responsibility is deeply ingrained in NTPC culture. It also strives to develop mutual trust with the communities that surround its power stations through its expansive CSR initiatives.
The performance management system of NTPC is like a benchmark that has been followed across the board. This is an organization where even today, people join and remain with the organization till retirement. The culture of the organization too, is entwined around the very Indian spirit of celebration.
Our Vision
“A World integrated power major, Powering India’s growth, With increasing global presence”
Our Mission
“DEVELOP AND PROVIDE RELIABLE POWER, RELATED PRODUCTS
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AND SERVICES AT COMPETITIVE PRICES, INTEGRATING MULTIPLE
ENERGY SOURCES WITH INNOVATIVE AND ECO-FRIENDLY
TECHNOLOGIES AND CONTRIBUTE TO SOCIETY”
Our core values B: - Business ethics
E: - Environmentally and economically sustainable C: - Customer Focus
O: - Organization and professional pride M: - Mutual Respect and Trust
M: - Motivating self and Others I: - Innovation and Speed
T: - Total quality for Excellence
T: - Transparent and Respected Organization E: - Enterprising
D: - Devoted
SWOT ANALYSIS FOR NTPC STRENGTHS
Strong market position and integration levels Strong R & D capabilities
Operational excellence Stable Credit Ratings Wide asset portfolio WEAKNESSES
Lack of owned transmission and distribution assets Unbalanced fuel mix
Stringent government rules Increasing operating expenses OPPORTUNITIES
Strategic diversifications Globalization initiatives
Increasing demand for power generation New business development
THREATS
Increasing competition Rise in fuel prices
Forthcoming strict environmental norms Shortage of skilled workers
Increasing raw materials cost PMS POLICY OF NTPC, KANIHA
The philosophy of Performance Management System of NTPC, Kaniha is to build a culture of performance by aligning individual and organizational objectives and encouraging open communication and continuous feedback. PMS is applicable to all the executives of NTPC .
PMS PROCESS:
The PMS process is divided into the following stages;
Performance Planning Mid Year Review Annual Assessment Normalization
Feedback, Coaching and Counseling PERFORMANCE PLANNING:
It is the process of defining expectations, setting measures and targets, determining priorities and weightages of results to be achieved.
MID YEAR REVIEW:
The concerned HR department submit the PMS form to the reporting officer for midyear review with the respective executives.
ANNUAL ASSESSMENT:
The concerned HR triggers the process of completion of Annual Assessment through resubmission of PMS forms to all reporting officers.
NORMALISATION:
Executives would be normalized within a cluster from a population of executives.
FEEDBACK, COACHING AND COUNSELLING:
Coaching is an on the job approach to help individuals to develop, to raise their skills and levels of competence.
Counseling is a process by which executives can receive assistance in sorting out issues and relate to current and future responsibilities and aspirations.
Role of Executive
The executive shall fill out appropriate portions of the form, attend the PMS meeting at all stages (Performance planning, midyear review and annual assessment) prepare to have an open and frank discuss about his/her performance.
The PMS aims at creating amity and deconvergence of individual and organizational goals and it should be taken in that spirit.
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The executive is required to show the necessary flexibility and adaptability to the organizational needs and display system discipline through adherence to all PMS requirements.
Methodology
For the study of PMS, data collection sources include;
Primary Sources:
Questionnaire method
Personal Interview
Observation
QUESTIONNAIRE METHOD
Keeping in view the objective of the study, few questionnaires were designed and were given to the executives personally to collect their views about the PMS.
PERSONAL INTERVIEW
Personal interview was conducted with some senior persons of the organization.
OBSERVATION
Some necessary and important information’s were also collected by observation.
Secondary Sources:
Secondary data are gathered and recorded prior to the current research. These are the historical data already collected and recorded by researchers. This data often prove to be of great value in exploratory research. In this study the secondary data were collected from various sources like- Internet, books, newspapers, brochures, journals, business magazines etc.
SAMPLING
The study was exploratory in nature. Survey technique was used to collect primary data. The scope of study included executives working in NTPC. There were 50 respondents chosen due to insufficient and incomplete information, it was purely exploratory study and there was no assumption/hypothesis used.
FIELD WORK DETAILS
The First Super Thermal Power Station is the pride of Orissa, which is located in Talcher, Kaniha. It is about 30 kms to the north of Talcher Town, near Kaniha Block and surrounded by sleepy villages like Bijigol, Gadasila, Rangabeda, Patharmunda, Bhimkand, Karadei and Tolakabeda; the river Brahmani and its two branches Tikira and Singhrajhar meandering close-by and verdant green forests that are dotted with tiny hamlets stretch to far horizon. It was here on June 2, 1989; the then Prime minister of India, Shri Rajiv Gandhi laid the foundation stone of NTPC’s most prestigious project. Now Talcher, Kaniha is pride to Orissa as the 2nd largest power
generating station in India having generation capacity of 3000 MW
LIMITATIONS OF THE STUDY
Any researcher work generally suffers from several limitations so also the present study suffers from the limitations like:
The organization also did not give certain information with a plea of organization confidence. Some of the staff was apathetic towards giving interviews of data to the researcher.
The subject was too big but time available was too less.
At times it was often felt that there is a difference between the real feeling and the feedback given by executives. Exact feedback must be given so that the analysis done would be correct. Some of the executives were not interested in the subject matter. I was unable to discuss issues related to my project with some people and only responses to questionnaire were collected.
CONCLUSION
PMS is the process through which organizations generate value within their intellectual asset. Generating value within these assets involves proper implementation of performance management and feedback. A healthy PMS helps improving customer service, enhance employee retention by recognizing value of employee performance and rewarding them.
NTPC is a PSU that has an excellent HR department and its market leader in the power sector. The mechanisms that help employees develop their potential, Job rotation, company’s promotion policies and numerous rewards given by the company motivates the people and has a significant effect on the Job satisfaction of employees.
The executives find people friendly at work, they get the chance to learn new things, receive good respect from the people, have enough freedom in their job and take part in decision making. NTPC can touch new heights in the field of energy management by managing its manpower more efficiently; addressing their training needs, recognizing the high performances and giving them the freedom of expressing their points.
GENERAL INFORMATION Date:
SECTION A
Please put a tick [ ] in appropriate box:
1. Name of the Employee:
2. Gender : [ ] Male [ ] Female 3. Age: _______ Years
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4. Marital Status: [ ] Single [ ] Married 5. Qualification: [ ] Intermediate [ ] Graduate [ ]
Post Graduate [ ] Professional 6. Designation: _______________
7. Position: [ ] Top Level Management [ ] Middle Level Management [ ] Junior Level Management
8. How long have you been in your present career or line of work? ______________ Years
SECTION B
Instructions: The statements below have five options ranging from strongly agree to strongly disagree given against them. Please show your response by putting a tick ( √ ) mark in appropriate box against each statement.
Sl.
No.
Statements Strongly
Agree
Agree Neither Agree nor Disagree
Disagree Strongly Disagree
1. I am satisfied with the fringe benefits I receive 2. The people are very friendly with whom I work.
3. I have enough freedom in my job.
4. I get the chance to learn new things in my job.
5. I receive good respect from the people with whom I work with.
6. I feel good about myself as a person, when I do something in my job.
7. I am satisfied with the way I get treatment from the people with whom I work with.
8. I get a chance to take part in making decisions.
9. I am satisfied with all the company policies
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Web
[1] Human Resource and Personnel Management - K. Ashwathapa
[2] Organizational Behavior - Stephen P. Robins [3] http/intranet 1-KHSTPP
[4] http:// www.ntpc.co.in/ index.php? option=com content & view= article & id=28 &Itemid+41
&lang=enwww.ntpc.co.in
