PRESENSATION ON ANALYSIS OF NTPC BY MCKINSEYs 7-S FRAMEWORK

Submitted to :
Prof. Sudhendhu Bali

Submitted by:
Satinder Rai Bansal (13104080)
Damandeep Singh (13104022)
Amandeep Singh (13104036)
Ashish Tanwar (13104074)
Arunesh (12104012)

Introduction
Established in 1975, NTPC, the largest power company the country has been consistently powering of the growth of India.
NTPC has ventured into consultancy, power trading, ash utilization and coal mining. NTPC became a Maharatna company in
May, 2010, one of the only four companies to be awarded this status. The company is guided by the People before Plant
Load Factor mantra which is the template for all its human resource related policies. it is worlds 3rd largest thermal power
generator and second most efficient capacity utilization.

Shared Values
VISION A world class integrated power major, powering Indias growth, with increasing global presence
MISSION
Develop and provide reliable power, related products and services at competitive prices, integrating multiple energy sources with innovative and ecofriendly technologies and contribute to society.
CORE VALUES BE COMMITTED
Objectives
Customer Focus:-To foster a collaborative style of working with customer growing to be a preferred brand for supply of quality power.
Human Resource Development:-To enhance commitment of employees by recognizing and rewarding high performance.
Agile Corporation:-To ensure effectiveness in business decisions and responsiveness to change in the business
environment by Adopting a portfolio approach to new business development.
Performance Leadership:-To continuously improve on project execution time and cost in order to sustain long run competitiveness in generation.
Financial Soundness:-To maintain and improve the financial soundness of NTPC by prudent management of the financial resources.
Sustainable & Development:-To contribute to sustainable power development by discharging corporate social responsibilities.

STRATEGY:NTPC focus mainly on ways to increase the generating capacity of the plants
They have achieved various diversified growth in HYDRO POWER, COAL MINING, POWER TRADING ASH
BUISNESS, NUCLEAR POWER, RENEWABLE POWER.
The major challenges before the company are: the continual upgradation of the power technology, ensuring
uninterrupted fuel supply, acquisition of land for projects, timely execution of projects, and tackling
environmental issues.
The corporate and business strategies of NTPC focus on expansion through integration; diversification into coal
mining, power trading and manufacturing of power equipment; internationalization through joint ventures,
acquisition, and strategic alliances.
The NTPC has a strategic management group that is involved in deliberating on the key strategic issues
continually and providing direction.
Company has prepared its long term Corporate Plan for the period 2010 2032 which includes all strategies and
growth targets, fuel choices, technology choices and measures to deal with the likely changes in the business
environment. . It has set itself the target of becoming a 128,000MW power producer by 2032.

STRUCTURE:The present organization structure of NTPC is hybrid of functional and geographic forms and plant
level units of structure.
Functional Departments:-1) Finance & Admin
2) Human Resource
3) Operation & Management
The chairman, MD heads and directors of NTPC looks after commercial, operations, technical, human resource(HR), projects and
finance.Regional executive directors oversee the region-based divisions of north,south,west,east and NCR that supervise plant level
operation.

STYLE:NTPC has a comprehensive system of rewards and incentives that include ares such as industrial releations,
productivety, safety, and environment.
Directors and managers are provided benefits under the performance-linked incentives scheme.
The company provides higher education support to employees desirous of enhancing their qualifications.
NTPC actively encourages a culture of mutual respect and trust amongst peers, superiors and subordinates.
Quality Assurance:-NTPC has invested hugely in quality with the view to secure long term plant reliability.
NTPC provides investment in terms of committing adequate number of qualified and trained human resources for quality related
activities laboratories at the construction sites
SYSTEM:Performance Management System:-It is a continuous process to understand the employees ability, competencies, relative merits and
worth of the organization.NTPC believes in achieving organizational excellence through human resource.
Environmental Management System:- It is committed to protecting the fragile ecology as well as ensuring a sustainable growth of
power. Going Higher on Generation, lowering Green House Gas Intensity is NTPC vision statement on managing our environment.
VIGILANCE SYSTEM:-NTPC ensures transparency, objectivity and quality of decision making in its operations, and to monitor the
same, the company has a vigilance Department headed by chief vigilance officer, a nominee of central vigilance commission.
RISK, CONCERNS AND THEIR MANAGEMENT SYSTEM:-. A fuctional level director committee called Risk Managemnt
Committee (RMC) has been constituted to identify and review the risks and to formulate action plans and strategies to mitigate risks on
short term as well as long term basis.

STAFF

NTPC currently employ approximately 24,546 employees. NTPC pays an annual renumeration of approximate
15,77,000 per employ and spent approx. 2,84,000 per year per employ on other employ releated cost like medical
facilities.
The steps involved in staffing process includes: Manpower Planning and Budgeting
Creation of Posts
Recruitment:-It further includes-1.Written test 2. Group discussion 3. Interview
Job Title, job Specifications, Role Outline and Pay scales
SKILLS
NTPC subscribes to the belief that efficiency, effectiveness and success of the organisation depends largely on the skills, abilities
and commitment of the employees who constitute the most important asset of the organisation.So they spend much on training and
skill development. NTPC has a training budget which is more than Rs.50 crores.
TRAINING AND DEVELOPMENT PROGRAMS:-NTPC established a training institute called the Power Management Institute
(PMI) which comprises PERFORMANCE MANAGEMENT, CAREER PATHS and LEADERSHIP DEVELOPMENT.NTPC also
ran technical training centers at all its 20 plants. They were called Employee Development Centers (EDCs).
Internal Programs in NTPC for skill development:-Programs include the National Open Competition for Executive Talent
(NOCET), Professional Circles, Quality Circles, Business Minds and quizzes for their employees. A management journal called
Horizon is published quarterly to enable the employees to share their ideas and experiences across the Company.
MOU Signed By NTPC For Skill Development:-NTPC Limited and NPTI signed a MOU for running of Solapur Power Training
Institute being set up at Solapur, Maharashtra. MoU signed between NTPC, NSDF & NSDC, Ministry of Skill Development &
Entrepreneurship, Govt. of India which include total cost allocation of 6.5 crore.

 Analysis of the project

After studying the Mckinseys 7-s Framework we analyze that the company has various strengths and weakness in
their framework.
The strengths of the company are: NTPC is the leading power generation company in India, so it has the advantage of its settled infrastructure and
huge economy to expand their network.
Democratic style of leadership with centralization of authority and responsibility to the divisions so that employees
have been empowered to do their work independently without pressures from their higher authority so it has good
structure.
Company gives good salary and incentives to their employees and make good quality working environment for the
employees to work and give rewards to the employees for their good performance which encourage the employees
to work hard.
Huge investment on training and skill development programs so thats why it has highly skilled workforce and
experienced human resources exposed to the state of the art technologies in project execution and power
generation.
Performance management system of NTPC clearly establishes an understanding about what is to be achieved and
developing the people to ensure that how it is to be achieved .

Weaknesses
Company is using older methods of power trading which do not reach all the consumers
properly whereas their competitors like tata power and NHPC are using e-bidding method for
power trading which is the most effective method in modern age.
In comparison with their competitors the company is using old technologies and having joint
ventures with Indian companies which do not have much experience in new technologies.
As the government is the part of the structure of the company so there is time lag in decision
making and sometimes have to suffer from political pressures.
Due to the government intervention, sometimes NTPC does not get the right person according
to their need for job.
As the mission of the company is to use innovative and eco-friendly technology but still the
company is stick to the coal based technology which is non renewable and not eco-friendly,so
in near future they may suffer from coal shortage and also from environmental problems.
NTPC is unable to complete its project within decided time in its plan so they are lagging in the
power generation market.
As the capacity of power generation of NTPCs competitors is increasing at a faster rate but
NTPC is unable to cope up with the speed of their competitors. As a result the plant load factor
of NTPC is decreasing whereas of TATA POWER it is increasing which shows that if they do not
change their strategy they will lag in the power generation market.
In some cases it is seen that NTPC is unable to provide proper resettlement and rehabilitation
to the affected people such as in NTPC Keredari block of Jharkhand's Hazaribagh district people
was left unsettled without compensation.

 Recommendations
NTPC has very less penetration into nuclear power generation market. Since coal fields also are in their saturation stage
there will be huge demand for nuclear power in future. NTPC has made a joint venture with NPICL to generate 2000MW which
is very minute. But these do not add value with respect its venture into nuclear power generation.Because, these
organizations did not have expertise skills in nuclear power generating equipments or/and its technologyNTPC can excel in
nuclear power by making JVs with foreign players who are expert in nuclear power generation and subsequently get access
to its technology, manufacturing of equipment, resource mining and dumping.
The government interventions must be reduced and the control from government must be transferred to its top management
and its shareholders so that NTPC could grow more without any disruptions and it also lead to good structure.
NTPC must be given the full authority for the recruitment and selection procedure so that they could select their staff with
the required talent and skill.
Company must use the upgraded platform for the power trading so that they can link to more consumers in order to increase
their PLF and their income. The platform like E-Bidding is the best method for power trading.
NTPC is investing more on its coal based plants. Some of its new projects are ash utilization, coal mining, new coal based
plants which shows that they have major focus on coal based power. Instead of investing on these plants they must expend
more and more on renewable sources of energy such as solar,wind etc. as they are replenish able in nature and does not
come to end and also environmental friendly. NTPC should think over its strategy again and should think over the addition of
more capacity of renewable energy resources plant.
By using new technologies and doing JVs with foreign companies they can increase their project speed and it also help them
in increasing their capacity addition process so that they can hold its top position in the power generation market.
NTPC must try to expand its services to all over the India especially to the remote areas where there is still no electricity and
must reach the bottom of pyramid market. In India , there is still 28 crore people who do not have power in their homes.So
these people must be the target of the NTPC as a consumers to sell their power at less profit because this market has the
potential to open a gateway of great profit and also a life changing move for the consumers.
NTPC must create a proper policy for the resettlement and rehabilitation of affected people and must provide proper
compensation for the affect on their life.

THANK YOU