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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.


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,


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,



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.


“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

(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.


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

(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.”


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

• 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.


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
(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

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


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.


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

(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.


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
with performing the human resource functions and implementation of human resource
programmes and 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

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
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.


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;

(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 e
Impact of P/HRM Policies
P/HRM Policy choices Personnel/Human Long-term
Resource outcome Consequences
Employee influence Commitment Individual well being
Human resource supply Competence Organizational
Selection system Congruence effectiveness
Reward system Cost effectiveness Social well being
HRD system
Work environment
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
human resource accounting techniques. However, assessing the impact of human
resource management policies is highly difficult, but not impossible.



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


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


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.


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.

• 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
• 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


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.



ISP-Indira Sagar Power Station

OSP-Omkareshwar Power Station
R&R- Rehabilitation & Re-Settlement Office
PM&C- Planning, Monitoring & Commercial
E&SC-Engineering & State Co-ordination


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

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.


Annual Power Generation

Stage-I -2698 MUs

Stage-II -1850 MUs
Stage-III -1515 MUs

Irrigation and Food Grains

Cultivated area -1.75 Lakh Hectare

Area to be irrigated -1.23 Lakh Hectare
Annual Irrigation -2.70 Lakh Hectare
No. of villages benefited -564
Annual Production of Food grains -4.00 Lakh Tonnes
Annual Production of Other crops -10.55 Lakh Tonnes


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.


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.


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


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.


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.


Annual Power Generation

Stage-I -1167 MUs
Stage-II -696 MUs
Stage-III -540 MUs

Irrigation and Food Grains

Cultivated area -2.14 Lakh Hectare
Area to be irrigated -1.47 Lakh Hectare
Annual Irrigation -2.83 Lakh Hectare
No. of villages benefited -529
Annual Production of Food grains -7.25 Lakh Tonnes
Annual Production of Other crops -8.35 Lakh Tonnes

Approx 360 tonnes of fish production every year.

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


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.

Hydro 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

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.

2. Compensatory Treatment

3. Command area treatment
4. Developing Flora/Fauna of adjoining areas
5. Seismicity
6. Health Aspects
7. 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


• 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

• 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.


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.




• 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

H R Planning

Safety and
Employee Training
Health EXTERNAL Management

Organizational Structure of Corporate HR Department


HRD- Human Resource Development

ATR- Administration Training and HRD & Rajbhasha
ESTT&ADM- Establishment and Administration.



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:




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

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

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



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


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

Grade Grade Grade
(Rs.) (Rs.) (Rs.)
Code Code Code
W-0 3750-2.5%-5450* S-1 7900-3.5%-13700 E-1 370-390-410-420-440-460-470-
W-1 8600-330(2)-350-370-380-400-
4400-3%-8430 S-2 8600-3.5%-14920 E-2 420-430-450-470-490-510-530-
W-2 10750-420-430-450-470-
4700-3%-9010 S-3 9300-3.5%-15590 E-2A 490(2)-530-540(3)-550(2)-
W-3 13750-550-575-600-610-620-
5000-3%-9590 Spl.Gr 10000-4%-16000 E-3
W-4 16000-660-685(4)-700(2)-
5800-3%-10790 E-4
W-5 17500-630-685(2)-700(4)-
6700-3%-12500 E5
W-6 18500-700(2)-730-750-780-
7200-3.5%-13100 E-6
W-7 19500-750-810-845-880-910-
7900-3.5%-13700 E-7
W-8 20500-670(2)-850-900-950-
8550-3.5%-14850 E-8
W-9 23750-900-950-980(2)-990-
9000-3.5%-15100 E-9


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

• 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.


City 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.


City/town Rate Per Month w.e.f. 24.8.99

A-1 30% of Pay
A 25% of Pay
B-1, B-2 & C 15% of Pay
Unclassified 10% of Pay


Executives 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 Percentage rates of monthly rental

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

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


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-6 190
E-3 and E-4 150
E-1 to E-2A 115
Special Grade 88
S-1 to S-3 65
W-6 and above 65
Upto W-5 40


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


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 children
Note: 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.



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


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

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.


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

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.

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;


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.


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.


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/-.


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.

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

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.


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.


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


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

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.


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 /

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


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.


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.


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

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

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.

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.


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.


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


1 Management Cadre Executive Director E-9
General Manager E-8
Chief/Chief Engineer E-7
Sr. Manager E-6

2 Executive Cadre Manager E-5
Dy.Manager E-4
Asstt. Manager E-3
Engineer / Officer E-2A
Trainee Engineer / Officer E-2
Asstt. Engg. / Officer E-1
3 Supervisory Cadre Special Grade S-4
Sr. Sup. Gr.I S-3
Sr. Sup. Gr.II S-2
Supervisor S-1

4 Workmen Cadre Highly Skilled W-8,W-9

Skilled/Ministerial/ Office Based Staff W-4 to W-7

Semi-Skilled W-2 to W-6

Unskilled W-0 to W-4


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
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
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.

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


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

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.


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.


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,
• 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.



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


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.




1. HR Acquisition
Employee Socialization
HR Planning

2. HR Development
Employee Training & Development
Career Development

3. HR Motivation
Compensation & Benefits
Performance Evaluation
Rewards & Promotion
Job Design

4. HR Maintenance
Safety & Health of Employees

Industrial Relations
Personnel Audit
Other matters

NHDC is adopting Personnel Policies of NHPC and the same is

implementing by the following methodology.

By issue of Personnel Policy and Periodical Compendium.

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.

Presentations and lectures on Personnel Policies.

ii. vii. Review and modification of Personnel Policy wherever and

whenever needed as per Government Directives/orders or as per law
applicable to NHDC.

Visit for more


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.


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:-


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’.


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.




1. Employee No. :
2. Designation :
3. Department :
4. Scale of Pay & Gross Pay :
5. Age : SEX : M/F
6. Qualification :



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 Numerical Value given to the
recorded Grade
1 Excellent 5
2 Very Good 4
3 Good 3
4 Average 2
5 Poor 1

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


Think of the pay you get now, how well your present pay recognise
your service, skill, ability and professional knowledge and able to meet

Pay Scale offering …………………………

Allowances/Perks with Pay Scale …………………………
Other Benefits such as leave, LTC etc …………………
Special Incentives ………………………………
Payment is made timely ………………………………


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……………….


Personnel Policy is equally applied …………………
Personnel Policy is interpreted in simple ways…………………..
Timely Modification / Clarification is given……………………..

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


Analysis of Employees’ Information

From 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.


Age Analysis of Employees

Number of employees

3 3
2 2 2 2 2 Supervisors

1 1 1 1

0 20 to 35 36 to 45 45 and above

Age in Years


Analysis of Employees' Education

Number of Employees

3 3 3

2 2 2 Supervisors
Work Men

1 1 1 1 1 1

Non-Technical Technical Proffessional

Type of Education

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Category Analysis of Employees

5 5 5
Number of Employees

Number of

Workmen Supervisors Executives

category of Employee

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Analysis of 'Degree of
Implementation and benefits of
Personnel Policies'

Frequency of response

40 Frequency
55 60 of Response
20 25
1st 2nd 3rd 4th 5th
Grade Grade Grade Grade Grade
Grade of response


1st Grade – POOR

2nd Grade – AVERAGE
3rd Grade – GOOD
4th Grade – VERY GOOD
5th 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 4th Grade i.e. Very Good
has the highest frequency (60).


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.


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.


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.


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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1. Human resource management V. S. P. Rao

Text and cases

2. Personnel management C. B. Mamoria

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


2. Human Resource Management T. N. Chhabra

Concepts and Issues

5. Research Methodology C. R. Kothari

Referred Web Site: