Study of Performance Management System in N.H.P.C

INTRODUCTION: The Performance Management System is a process of setting objectives, making plans to achieve those objectives and accomplishing the desired results. Rewards and recognition are the end stage of this process. Organizations use this system to assess the performance of an individual, a team, a function and then the organization as a total. In this project, the whole performance management system is described for the company NHPC.

This cycle starts when NHPC signs a Memorandum of Understanding (MoU) with the Government of India. In this memorandum the vision, mission and values, targets and action plans are mentioned. In NHPC, system have been devised to cascade Organizational Goals into individual goals by framing out objectives of the company from the MoU at corporate level and there by preparing a Balance Score Card both at corporate and unit level. The summarized feature of this process is sequentially breaking down the organizational goals into an individual’s e-MAP.

This project describes about the Performance Management System which is followed in NHPC. This project also describes the problems faced by the appraisees and the appraisers in this system. It also elaborates about the steps taken by the appraisers to improve the performances of the appraisees so that their efficiency can be increased and later the rewards and recognitions are given in the form of promotions, incentives and empowerment.


To study the process and to understand the importance of Performance Management System in NHPC that synchronizes the performance of the employees so as to make the work effective.

  • To analyze the Performance Management System of NHPC in detail and its effectiveness.
  • To analyze the problems faced by the appraisee and the appraiser in this system.
  • To analyze the steps taken by the appraisers for the improvement of the performances of the appraisees.



NHPC Limited (Formerly National Hydroelectric Power Corporation), A Govt. of India Enterprise, was incorporated in the year 1975 with an authorised capital of Rs. 2000 million and with an objective to plan, promote and organize an integrated and efficient development of hydroelectric power in all aspects. Later on NHPC expanded its objects to include other sources of energy like Geothermal, Tidal, Wind etc

Market Value

At present, NHPC is a schedule ‘A’ Enterprise of the Govt. of India with an authorized share capital of Rs. 1,50,000 Million . With an investment base of over Rs. 2,20,000 million Approx. In 2009-2010 NHPC made a profit after tax of Rs2090 crores . A increase of 94% than the previous year profit of 1050 crores. NHPC is among the top ten companies in India in terms of investment. Department of Public Enterprise, Govt. of India recently conferred prestigious Miniratna status to NHPC.

Initially, on incorporation, NHPC took over the execution of Salal Stage-I, Bairasiul and Loktak Hydro-electric Projects from Central Hydroelectric Projects Control Board. Since then, it has executed 14 projects with an installed capacity of 5295 MW on ownership basis including projects taken up in joint venture. NHPC has also executed 5 projects with an installed capacity of 89.35 MW on turnkey basis. Two of these projects have been commissioned in neighbouring countries i.e. Nepal and Bhutan at a capacity of 14.1 &60 MW.

On-going work

Presently NHPC is engaged in the construction of 10 projects aggregating to a total installed capacity of 4502 MW . NHPC has planned to add 5322 MW during 11th Plan period. 12 projects of 9651 MW are awaiting clearances/Govt. approval for their implementation. Detailed Projects report or Feasibility Report are being prepared for 7 projects of 5755 MW.

Since its inception in 1975, NHPC has grown to become one of the largest organizations in the field of hydro power development in the country. With its present capabilities, NHPC can undertake all activities from concept to commissioning of hydroelectric projects.




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