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Approach Paper on Talent Acquisition & Retention pl an, Career Development and Succession Planning

A. Talent Acquisition and Retention

Talent acquisition aims at making available the right talent , at the right place , at the right time , at the right cost . It relates to all the areas within the ambit of Talent Management, from accurate manpower requirement projection system to basically the entire employee life cycle. To be successful, it is vital to have the talent acquisition strategy customized according to the organization’s business needs and other external environmental factors so as to provide a competitive edge.

We are the Central Transmission Utility (CTU) of the country engaged in power transmission business with the mandate for planning, co-ordination, supervision and control over complete inter-State transmission system and operation of National & Regional Power Grids. We operate around 82,354 circuit kms of transmission lines along with 135 Sub-stations. We are pioneering in new technology areas like smart grids, UHVAC, ±800kV HVDC, FACTS, etc. Additionally, we have also forayed in the area of Telecom having a Broadband Telecom Network of about 22,000 kms connecting over 110 cities utilizing our extensively spread Transmission Infrastructure. We have also emerged as a key player in the area of Consultancy in Power Transmission.

The structure of our organization is highly complex being horizontally differentiated according to geographical spread and then functions. It is also highly differentiated vertically as well as spatially. The nature of our business as well as the organization structure should be the foundation point for all our strategies.

While for recruitment, we simply need a job specification and no. of vacancies to be filled. For Talent Acquisition, we need to know the role specification so that right talent can be acquired whether from internal / external sources meeting the role / competency requirement.

Talent Acquisition is a strategic function and is linked to the long term plans of company and is aimed at developing the Core Competency of the organisation. So Talent Acquisition and Retention Strategies are part of a larger Competency Framework in the organisation and both Organisational and People (Technical/ Functional & Behavioural) Competencies are essential pre-requisites of a Talent Acquisition and Retention plan.

Core Competency and Competency Framework : Core Competencies are the unique internal skills, processes, systems that provide the organisation competitive advantage in the market and that can not be easily imitated by the competitiors. As these are unique, so there can be 3-5 core competencies of the organisation and for sustenance & development of those competencies we need to have certain strategies in respect of our process/ system and our people. Role Analysis and Competency Mapping exercise

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provide the required level of Competency (Technical/ Functional & Behavioural) for a given role and existing level of Competencies of individuals performing that role. Therefore alongwith identification of Organisational Core Competecy (Details of Core Competency Development is enclosed at Annexure-I ), organisation wide Role analysis and Competency mapping need to be done for finding out the Competency Gap or Talent Need .

Talent Need / Requirement projection : It is the launching stage and plays the most crucial role in success of the whole process of talent acquisition. Determine long term and short term requirements based on business plan, planned projects, manpower norms, employee data, Competency database, attrition trend depending on the business requirement. E.g. projections for Consultancy projects would be short term with (possibly) shorter lead time, while that for O&M would be long term with sufficient lead time. At the end of requirement projection, the following should be clearly outlined:

• Job Description: Designation, tasks, activities, tools and technology involved. • Job Specification • Role Specification : competencies • Numbers • Time and Duration of the requirement • Location

A sample of the above is illustrated at Annexure II .

This function is currently undertaken by the corporate IE department in POWERGRID.

Sourcing the Talent : This is the second stage of talent management process that involves analyzing how talent should be sourced. E.g. internal versus external, permanent versus temporary, onshore versus offshore. Some of the important decisions to be made during sourcing are:

a. Do we possess the required talent internally? I.e. Is it possible to fulfill the requirement through redeployment of existing surplus workforce, if any? If not, then

b. Does the requirement call for specialized experienced personnel? If yes, are they readily available in the market? If not, then

c. Is it possible to train personnel to fit the requirement? d. Can the long term projections be fulfilled through induction of fresh recruits and

developing them in house? e. For offshore projects, is it more economical to recruit and train local workforce

rather than transferring our workforce to the location?

For successful implementation of strategy, sourcing should be done based on the job description, available internal talent pool, attrition rate and external market trends. An accurate and updated inventory of employee skills, competencies, experiences, and career interests is essential for making the right decisions.

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Attracting the Talent : Once the source has been determined, it is important to attract the talented people to work with us. After all the main aim of talent management process is to hire the best people from the industry. This is the stage when people are invited to join the organization. Currently, we release advertisement in leading newspapers nationwide before the commencement of every recruitment process. The advertisements are also hosted on our website. Also, as seen from past experiences, the majority of candidates come to know about the vacancies through online job forums .

Since the last three years we have also been visiting reputed institutes like the IIMs, IITs and NITs for campus selection. In order to attract the best candidates from these institutes, Campus Branding activities can be undertaken. Effective branding activities shall increase our brand recognition in reputed institutes thus attracting even better talent and will also help the students of these institutes to make an informed decision about joining POWERGRID. Some of the possible activities for campus branding are organizing paper presentation competitions, technical talks etc.

In addition, we may also formalize the policy of inducting Summer Trainees from IITs and NITs. A summer trainee spends about 40 – 60 days in the organization and experiences it quite closely. For example, a paper presentation competition can be held, inviting participation from the students of IITs and NITs. Members of the best 10 teams can be given an opportunity to undergo their summer trainings at POWERGRID. Such practice shall also be helpful in campus branding.

Selecting the Talent : This involves determining the best tool to evaluate a candidate’s “fit” with the organization through a series of assessments. E.g. technical, cognitive and behavioral tests, face-to-face interviews. The evaluation methodology should be based on the job description of the required positions. Essentially, the tools used to evaluate potential candidates should have high predictability for their future performance. For illustration, marks obtained by a candidate in the Core Engineeri ng Subjects may be a better indicator of their future performance t han the overall percentage obtained by them in B.Tech.

While recruiting experienced personnel for lateral positions, the selection can be based on the area and quality of their professional experience. However, while recruitment of fresh talent, their technical knowledge and ability to learn and grasp may be evaluated.

In POWERGRID, we had been conducting All India Written test for selection of Executive Trainees. The test has now been replaced by the GATE examination which is conducted jointly by the IITs and IISc.

Onboarding : The often overlooked but utmost important stage of the process of talent acquisition is onboarding which establishes the first impression of the organization among the new joinees. Personnel joining POWERGRID as Trainees undergo an yearlong training module which gives them an overall idea about the organization and its working. However, those selected against lateral positions are straightaway deployed. A

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short orientation program for all new recruits covering a brief overview of all the functions of organization shall help them in getting acquainted with POWERGRID.

Retention :

Retention of talent is a result of various factors such as compensation, job satisfaction, challenges involved in a job, personal development of an employee, rewards and recognition, organization culture and the fit between job and talent.

Deployment and Development : After joining, the recruits are to be deployed as per the requirement projection/ talent need. Subsequently, it is vital to update the talent pool continuously through various methodologies like trainings, job rotation, job enrichment, enlargement and other capacity building measures.

Performance Management: Measuring the actual performance of an employee is necessary to identify her true potential. The performance appraisal system in POWERGRID takes into account the performance of the individual as well as her potential and accordingly a rating is assigned. This rating is also used for the purpose of promotion to next grade and is linked to the variable performance based component of their pay, i.e. PRP. As per the current practice, the performance rating is not disclosed to the individual. However, disclosure of ratings might have certain benefits too. The best performers may feel appreciated and get motivated while the average performers may get to know the potential areas of improvement.

In addition to performance appraisal system, assessment centers/ multi rater assessment (360degree assessment) tool may be introduced for assessment of individual’s potential or competency, especially for roles at higher level and for effecting other HR interventions. Further, IT enabling of PMS would help in utilizing the evaluation data for various purposes e.g. periodic updation of competency inventory, job descriptions, training need identification as well as for career planning.

Employee Recognition Management Scheme: Once the top talent is identified, they should be properly acknowledged. Since the compensation structure is bound by DPE guidelines which limit the monetary component that we can reward the employees with, we need to explore the possibilities of non-monetary rewards. Some possible options are recognition of best performers in open houses, employee of the month schemes etc. Good performers can be sent for sponsored vacations both in India and abroad, along with their families. For being most effective, recognition should be quick.

Career and Succession Planning : As mentioned above, data generated during performance evaluation process can be used for career planning as well as succession planning. Additionally, we need to take into account other inputs like long term requirement projection and individual career choices to formulate career paths which suit both the organization’s as well as individual’s requirement. Additionally, Succession planning for positions at higher level is especially vital. In order to ensure the success of

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the succession plan for a given position, it needs to be aligned with the career plans of the concerned individuals.

Job Enrichment : Employees can be motivated by giving them the opportunity to use the range of their abilities in additional varied assignments. Further, it will also result in developing the competencies of the employees and prepare them for future assignments at the next level.

Work Life Balance : One of the most important factors in retention of talent is maintaining a work life balance. The nature of our business requires employees to work at difficult locations, which necessitates employees to stay away from their families. We understand that mere monetary rewards are not enough to keep the motivation levels up for such employees. Deployment at remote location is the major challenge in retaining the manpower, and is likely to increase in days to come. We need to review the location specific benefits provided to these personnel, like medical benefits, HRA, special leaves etc with the aim of ensuring the well-being of their families as well. While reviewing these benefits, we may refer to other such organization with their geographical spread in remote locations, like Banks, the Postal Department, Indian Army etc.

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Talent Management

Business Plan

• Requirement projection

• Sourcing the Talent • Attracting the Talent • Recruiting the Talent • Selecting the Talent

• Training and Development • Job Enrichment

• Succession planning

• Career Planning • Recognition and

Rewards • Job Enrichment • Work life balance

• Transfer policy

• Manning norms

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Talent Acquisition

Projection — determining future talent and workforce requirements, clearly outlining the roles. Identify required competencies. Sourcing — analyze how talent should be sourced. E.g. internal versus external, in-house versus outsourced, permanent versus temporary, onshore versus offshore Attracting — recruit the target talent pool through a variety of methods and mediums. E.g. newpapers, radio, television, job portals, corporate web site, job referral programs, campus recruitment, internal promotions, etc. Evaluation and selection — determine a candidate’s “fit” with the organization through a series of assessments. E.g. technical, cognitive and behavioral tests, face-to-face interviews. Onboarding — facilitate the rapid introduction of new hires into the company for both the short and long term.

Business Plan

Competency Mapping

Future Projects

Job Analysis – Identify roles and competencies

Competency

Assessment -

Identify

available

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Talent Retention

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ANNEXURE-I

What is core competency?

• A unique ability that a company acquires from its founders or develops and that cannot be easily imitated.

• Core competencies are what give a company one or more competitive advantages, in creating and delivering value to its customers in its chosen field.

• Also called core capabilities or distinctive competencies.

Classification of Organizational Competencies

Identifying Core Competencies

The three factors that differentiate Core competencies from others are:

a.Provides potential access to a wide variety of ma rkets

b. Makes a significant contribution to the perceive d customer benefits of the end product

c. Difficult for competitors to imitate

A core competence should be "competitively unique": In many industries, most skills can be considered a prerequisite for participation and do not provide any significant competitor differentiation. To qualify as "core", a competence should be something that other competitors wish they had within their own business.

A competence which is central to the business's operations but which is not exceptional in some way should not be considered as a core competence, as it will not differentiate the business from any other similar businesses. Resources that are standardized or easily available will not enable a business to achieve a competitive advantage over rivals.

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Examples:

1.

2. Why has Saga established such a strong leadership in supplying financial services (e.g. insurance) and holidays to the older generation?

Core Competencies that enable Saga to enter apparently different markets:

- Clear distinctive brand proposition that focuses solely on a closely-defined customer group

- Leading direct marketing skills - database management; direct-mailing campaigns; call centre sales conversion

- Skills in customer relationship management

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3. Why have Tesco been so successful in capturing leadership of the market for online grocery shopping?

Core competencies that mean customers value the Tesco.com experience so highly:

- Designing and implementing supply systems that effectively link existing shops with the Tesco.com web site

- Ability to design and deliver a "customer interface" that personalises online shopping and makes it more efficient

- Reliable and efficient delivery infrastructure (product picking, distribution, customer satisfaction handling)

4. Why does Dell have such a strong position in the personal computer market?

Core competencies that are difficult for the competition to imitate:

- Online customer "bespoking" of each computer built

- Minimisation of working capital in the production process

- High manufacturing and distribution quality - reliable products at competitive prices

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Steps to take in order to develop and leverage core competency.

Before taking up development of core competencies, they need to be properly identified.

Stage 1: Identification

• Identify the Core Committee Members:

A core committee of about 3-4 members headed by the CMD/Director(Personnel) shall be formed. This committee shall be responsible for driving the process of identification.

• Take inputs from all Directors and Executive Directors in a format:

An overview of the concept of organizational core competency and a short questionnaire as given below shall be circulated among all the Directors and EDs.

Analysis of the results from the above shall give us a list of the existing and desired competencies that can possibly be termed as our Core Competencies.

• The Core committee members shall discuss the inputs taken from Directors and EDs.The discussion shall be a structured discussion moderated by an external expert dealing with Core Competency.

• For each of the competence in the list obtained after analysis of the inputs from the Directors and EDs, the committee shall discuss the following:

Week 0

Week 1

Q1. Please list the factors that shall differentiate POWERGRID from our existing

and potential competitors.

Q2. Do they provide a competitive edge over others?

Q3. Are these factors replicable? If yes, then how easily?

Q4. Are they sustainable in the long run?

Q5. What are the potential dangers?

Q6. Please list 2 factors that are absolutely essential for emerging as the market

leader in these times of open competitive bidding?

Week 3

Week 4

Evaluate existing

Evaluate desired

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• Arrive at 3-5 final crisp organizational core competencies.These factors should not

have any ambiguity. For example “project completion” cannot be a competence. However, “On time project completion” can be.

Stage 2: Development

At the end of stage 1, we shall have 3 to 5 competences identified for the organization. Now, in order to successfully develop organizational competences, they have to be inculcated at individual and functional level.

Depending on the competence, the way of development shall be different for each of them. It may require modifications in the delegation of power, reporting structure, HR systems and processes,investment in new technology, among others.

A task force comprising of two executives in the level of ED/ GM shall be formed for each of the identified competences. One member from HR shall also be part of the team. The task force shall have 4 weeks to come up with the steps required to be taken in order toinculcate, develop and sustain the competence throughout the organization. At the end of four weeks they shall submit their reports to the CMD.

However, some interventions shall be common and absolutely essential for all the competencies. These are:

o Regular internal communication to all the employees apprising them of the commitment to that particular core competence.

o Including the competence in our performance appraisal system.

For other interventions, let us consider two examples (only indicative)

Example 1: Smart Grid

Category: Knowledge Based competence

In case of “Smart Grid” technology, POWERGRID has the first mover advantage. If we decide to leverage this advantage to obtain a competitive edge over other players

Q1. Does it give a sustainable competitive edge to POWERGRID?

Q2. Can it be replicated easily by our potential competitors?

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and to sustain it in the long run, the following interventions are required at various levels:

Organization Function Individual o Investment in

technology

o Identify and allocate sufficient resources for Smart Grid technology.

o Ensure that the concerned individuals are up-to-date with the latest technology and findings in the field.

o Regular technical trainings for knowledge updation

Example 2: On-time project completion

Category: Assembly competence, Knowledge Based competence

Completion of projects on time requires the efforts from all levels. Setting up a good record of on time project completion shall help us in getting new projects and avoiding any possible penalties for late completion.

On time completion of projects shall depend on the following factors:

a) Quick managerial decision making

b) Quick execution

c) Minimum dependence on external entities

Organization Function Individual o Modify delegation of

power for quick decision making

o Allocate resources for minimizing dependence on external factors such as forest clearance, right of way etc.

o Develop resources with expertise in quick execution of a particular task and share them across projects.

o Prepare and adhere to stage-wise project execution plan

o Evaluate individuals on task completion

o Assess knowledge gaps if any which are causing delay. Provide adequate training.

o Training on Project Management

Stage 3: Sustenance

The core committee shall meet quarterly to review the progress done in the area.

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Also, core competencies are not permanent. They may cease to provide competitive edge depending on changing market conditions and other internal and external factors.

Hence, this exercise needs to be repeated every two years.

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Annexure II

Sample - Requirement Projection

• Job Description: • Designation : Engineer (Electrical) • Role : Substation (O & M) • Tasks : 1. Construct, test, maintain, and repair substation relay and

control systems. 2. Inspect and test equipment and circuits to identify

malfunctions or defects, using wiring diagrams and testing devices such as ohmmeters, voltmeters, or ammeters etc.

3. Consult manuals, schematic wiring diagrams, and engineering personnel in order to troubleshoot and solve equipment problems and to determine optimum equipment functioning.

4. Notify facility personnel of equipment shutdowns. 5. Open and close switches to isolate defective relays; then

perform adjustments or repairs. 6. Repair, replace, and clean equipment and components

such as circuit breakers, brushes, and commutators. 7. Disconnect circuit breakers and isolators, and connect the

same to high-voltage lines.

• Work Activities: 1. Repairing and Maintaining Electronic Equipment —

Servicing, repairing, calibrating, regulating, fine-tuning, or testing machines, devices, and equipment that operate primarily on the basis of electrical or electronic (not mechanical) principles.

2. Getting Information — Observing, receiving, and otherwise obtaining information from all relevant sources.

3. Identifying Objects, Actions, and Events — Identifying information by categorizing, estimating, recognizing differences or similarities, and detecting changes in circumstances or events.

4. Communicating with Supervisors, Peers, or Subordinates — Providing information to supervisors, co-workers, and subordinates by telephone, in written form, e-mail, or in person.

5. Inspecting Equipment, Structures, or Material — Inspecting equipment, structures, or materials to identify the cause of errors or other problems or defects.

6. Monitor Processes, Materials, or Surroundings — Monitoring and reviewing information from materials, events, or the environment, to detect or assess problems.

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• Competencies:

Knowledge Electrical - Knowledge of the practical application of electrical engineering science and technology. This includes applying principles, techniques, procedures, and equipment to the design and production of various machines and tools. Design — Knowledge of design techniques, tools, and principals involved in production of precision technical plans, blueprints, drawings, and models. Mathematics — Knowledge of arithmetic, algebra, geometry, calculus, statistics, and their applications. Computers and Electronics — Knowledge of circuit boards, processors, chips, electronic equipment, and computer hardware and software, including applications and programming. Physics — Knowledge and prediction of physical principles, laws, their interrelationships, and applications to understanding fluid, material, and atmospheric dynamics, and mechanical, electrical, atomic and sub- atomic structures and processes. Skills Critical Thinking — Using logic and reasoning to identify the strengths and weaknesses of alternative solutions, conclusions or approaches to problems. Equipment Maintenance — Performing routine maintenance on equipment and determining when and what kind of maintenance is needed. Repairing — Repairing machines or systems using the needed tools. Operation Monitoring — Watching gauges, dials, or other indicators to make sure a machine is working properly. Quality Control Analysis — Conducting tests and inspections of products, services, or processes to evaluate quality or performance. Abilities Oral Comprehension — The ability to listen to and understand information and ideas presented through spoken words and sentences. Information Ordering — The ability to arrange things or actions in a certain order or pattern according to a specific rule or set of

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rules (e.g., patterns of numbers, letters, words, pictures, mathematical operations). Problem Sensitivity — The ability to tell when something is wrong or is likely to go wrong. It does not involve solving the problem, only recognizing there is a problem. Control Precision — The ability to quickly and repeatedly adjust the controls of a machine or a vehicle to exact positions. Deductive Reasoning — The ability to apply general rules to specific problems to produce answers that make sense.

• Job specification Qualification: Graduate Engineer in Electrical Discipline with at least 65% marks Age: 28 years

• Numbers : 20 • Lead time: 2 years • Location: Anywhere in India

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B. CAREER DEVELOPMENT

With the employee strength of around 9775 employees as on 31-Mar-2011, the manpower, in POWERGRID, has grown over the years. Along with the growth of manpower, the company has gained monumental intellectual and managerial capabilities not to mention the immense experience in construction and O&M of transmission lines and substations. Having such huge addition in human resources, the company must be committed towards retention of its knowledge base and intellectual capital and assets in the work force. Especially with the upcoming situation where private players are coming into the transmission business and the change of regime from cost-based to tariff based bidding, it is a challenge for the company to retain key leaders in various fields that directly or indirectly affect its business and hence sustenance. The business environment in near future will see rapid technological changes, intense competition, shortening project life cycles, ever increasing demand from stakeholders for better services, strict environmental laws, etc. In order to incorporate such changes and come out of challenging situations successfully POWERGRID should be prepared in advance.

THE NEED FOR CAREER DEVELOPMENT AND SUCCESSION PLAN NING

Today, organizations are becoming more dependent upon people because they are increasingly involved in more complex technologies and are attempting to function in more complex economic, political and socio-cultural environments. The more complex organizations become, the more they will employ sophisticated and highly trained people both in managerial and individual contributor/staff roles. The price of low motivation, turnover, poor productivity and intra-organizational conflict will be higher in such an organization.

It has been observed over the years that some employees want to rise to high level managerial positions but many others want to play a role of a technical or functional expert and prefer minimal managerial responsibility. Further, some want job security, while others are seeking challenging career and growth opportunities. These patterns of motivation, talent and values serve to stabilize and constrain the career in predictable ways. This implies that organizations must develop multiple reward systems to deal with different types of people. Further it has been observed among young people that work and career are not as central a life pre-occupation. Due to prolonged period of economic affluence, people see more options for them and are increasingly exercising those options. People are concerned with a balanced life in which work, family, self development play equal roles.

Planning our manpower based on the erroneous assumption that if we develop our present Human Resources, they will be able to fill whatever job demands may arise in future, will work only as long there are no major changes in job requirements as the organization grows and develops. But if jobs themselves

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change, the system is bound to fail. Hence the assertion should be more on job/role planning independent of the present people in the organization.

Career development is the system of determining successive jobs whether these represent promotion, lateral movement to new functions, or simply new assignments within a given area. In most PSU organizations there is no such system present but an ad-hoc process of moving people as jobs open up. Succession planning is a process whereby an organization ensures that employees are developed to fill each key role within the company. Through succession planning process, a company develops employees’ knowledge, skills, and abilities, and prepares them for advancement into more challenging roles. Effective, proactive career and succession planning leaves the organization well prepared for expansion, the loss of a key employee, filling a new, needed job, employee growth, and organizational redesign for opportunities.

Many examples exist on how some of the best and most venerable organizations have failed to adapt to change, implement their strategic plans successfully or prepare for a more uncertain future. Every organization depends upon its apt leadership to guide it through un-precedented changes and therefore must give thought to the leadership that will be required to implement strategies that call for changes in the direction or capabilities of the organization.

To effectively plan careers and succession, we must identify the organization’s long term goals. We need to identify and understand the developmental needs of employees. We must ensure that all key employees understand their career paths and the roles they are being developed to fill. We need to focus resources on key employee retention. The only way to keep talented people is to provide them with challenging assignments that keep them stretching, growth opportunities and finding more promising opportunities they might find elsewhere. Thus retaining leaders in key functional areas becomes an economic and strategic challenge.

Proposed Solutions In this section we propose several steps that can be individually or collectively implemented in order to face the challenges and the future need of the organization.

Identifying and Grooming young talents enabling the m to take key leadership roles in future

It is an absolute neccessity that we groom the young inducted executives of today in an effective manner so that they may be able to take up key leadership positions of the company in the future. It is required to identify key positions in the company e.g. ED (Region), ED(OS), ED(Engg), ED(Telecom), etc. depending upon the future business requirement and groom the freshly inducted

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executives to take up such positions. Our present system of job rotation, promotion and career development needs a revival especially in this aspect.

As said above, key positions should be identified and key attributes for each positions should be carefully found. This is in turn derived from an effective leadership strategy. The following section deals with leadership strategy. This demands all concerned departments to be consulted and decisions be made keeping the future requirements in mind. The grooming of young executives must start right from the time they are inducted.

Over the years, it has been observed that ETs posted at CC or RHQs are not as exposed to the fundamentals of transmission, construction and operation of the transmission system as required. Thus their idea and knowledge about the company's core business and related issues is not complete. Therefore it should be mandated that ETs be invariably posted to sites during the beginning of their career i.e. at the time of final posting after ET training.

The following portion deals with the various procedures that we may implement to prepare an executive for a key post right from the beginning of his/her career.

1. Before their final posting each ET should undergo competency based assessments (using a combination of various assessment tools like Psychometric test, 180 / 360 degree assessment, etc.) to identify their competencies and skills. Accordingly they should be posted to site for different functions.

2. Further each ET should remain in their respective posting locations for a minimum of 3 years. After every 3 years each executive should be assessed in a similar manner as stated above, also including their appraisal scores and feedback taken from his/her respective reporting officer. The objective of this assessment would be to identify the performance of the executive in his/her current function and also his/her potential to perform in other functions.

3. Further, this assessment should be performed once every 3 years during his/her entire tenure in service till he/she reaches E6/E7 level. During this entire tenure the executive must have been posted to atleast 3 different regions and must have experience in atleast 3 different functions.

4. An executive, inducted as an ET, may be posted to CC after atleast 6 years of service at site. But his/her posting in CC would be decided by the results of the above assessments for a particular department/role at CC.

5. On reaching the level of E6/E7, a comprehensive assessment on his/her entire tenure of service (from E2-E6/E7) should be made, to identify key performing executives and their expertise in relative functions. This would further identify the potential candidates who would go in future to hold a key functional position. It is from then on that the selected executives should be groomed and trained specifically for the leadership positions in identified functions. An assessment tool discussed in an approach paper on Succession Planning may be used for identifying potential candidates.

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Encouraging employees to pursue their careers as a Generalist or a Specialist

It has been observed that many employees want to rise to high level managerial positions but some others want to play a role of a technical or functional expert and prefer minimal managerial responsibilities. The former category of employees is termed as Generalists and the latter as Specialists . For obvious reasons we need both Generalists and Specialists in POWERGRID. Therefore it is required to appreciate and encourage this career need of an individual, develop it and harness it towards the interest of the company.

An additional advantage of this process is that core functional competencies of the organisation will develop. Core competencies of an organization are particular strengths relative to other organizations which provide it with competitive advantage. Since core competencies are developed through the process of continuous improvements over the period of time, the idea of developing specialists will help the organization enhance its core competencies.

POWERGRID has unmatched expertise in the field of substation and transmission line construction and their operation. This expertise has allowed us to even take up consultancy assignments regarding the same. Several competencies may be identified within the field of transmission like Hot Line Maintenance, Engineering- HVAC / HVDC, Contract Services, Test Lab, Transformer/Reactor Specialist etc. The development of these competencies will increase the knowledge base of the company and provide it with the necessary edge to stay ahead in the business.

Based on the requirement and statistics a certain percentage (say 10%) of employees should be allowed to follow a Specialist Career within the company. Such people should be selected not only based on their choice but also by judging their skills and passion towards the technical/functional field that they expertise in. Since the role of such people is entirely different from the usual managerial staff, they should also be treated in a separate manner. The cadre of such employees should be different. Further their performance monitoring and career growth strategy including promotion policy should be different from the rest. In case of a Generalist, more emphasis would be to develop his behavioral competencies whereas in case of a Specialist we should emphasize on the development of technical and functional competencies.

A Specialist career might not incorporate various grades/cadres as present in the general career path. Thus their emoluments, facilities, perks etc should be based on the years of experience in that specialization rather than the grade or level.

Mentoring : Each One – Teach One Approach

Every individual in the organization learns and responds according to the environment that he/she is exposed to. It is not only the foundation of one’s career but also the way he/she is groomed that determines the quality of a

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professional. As an analogy, we may compare this with a farmer growing crops. The farmer sows the seed but his responsibility does not end here. He also has to take care to fertilize and water the growing crop in order to get a good yield. Similarly, the way a young executive is groomed determines his attitude, performance and personality as a whole. Thus a brilliant ET falling under the control of a demotivated under-performing senior will tend to lose his focus, motivation and ultimately his will to work. On the contrary, a sincere not so brilliant ET under the influence of effective mentoring can turn out to be an effective leader in the organization.

Thus effective mentoring of subordinates is a key issue on which we should focus. It is the responsibility of the mentor to build his subordinates in order to increase the quality of executives in future. The experience and expertise of a senior fed early in to a growing executive will empower the young executive to grow manifolds.

For this purpose, the “Each One – Teach One” strategy may be adopted. The following are the key steps taken in this approach:

1. Every leader in the grade of CM and above should effectively choose one or two of his subordinates who are potential candidates to be groomed for a period of three years. The management should identify key performing leaders as potential mentors and should encourage and assist them for this purpose. It is prudent to consider that a mentor is not the direct reporting officer of the candidate.

2. Once the young talents are identified, they should be groomed accordingly under the sole responsibility of their mentor.

3. Yearly evaluation by the mentor will determine the quality and extent of grooming.

4. Further after the stipulated amount of time, a final report of their growth should be prepared and submitted by the mentor for evaluation and reference. Similarly the candidates should also submit a report regarding the effectiveness of the strategies taken by the mentor and also their own evaluation of themselves. This should be provided back to the mentor as a feedback to the mentor – which will help to asses himself for further mentoring.

5. After the stipulated time, the chosen candidates should be moved/rotated to other functional area for further exposure, under the mentorship of another leader. This process should continue throughout the career of the candidate.

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C. Succession Planning

It’s a proven management concept that organisations which don’t take proactive steps to plan for future talent needs face certain disruptions, heavy financial costs and even disasters, when key employees retire or are lured away by competitors. During the forthcoming years in POWERGRID, it would be critical to ensure continuity at higher managerial position by identifying/ building competitive capability from within.

Retirement status of Sr. executives as mentioned below in our organisation clearly indicates that vacancy of 138 executives are arising with in a span of 6 years. This necessitates development of succession plan at key positions by identifying & developing potential successors who will assume roles in future.

Retirement status of Sr. Executives

Level 2011-

12 2012-

13 2013-

14 2014-

15 2015-

16 2016-

17 Tot

ED 1 7 4 5 1 4 22

GM 2 3 4 3 10 6 28

AGM 2 7 3 8 8 6 34

DGM 2 13 5 11 12 11 54

Tot 7 30 16 27 31 27 138

Succession Planning is a process which ensures identification & development of executives to replace senior management on separation/superannuation etc.

The Proposed Process

1) Identification of core technical & behavioural trai ts/ competencies essential for performance at senior positions :- Senior positions require various competencies/ behavioural traits such as leadership, Business Attitude, vision and strategic thinking etc to successfully discharge their responsibility & motivate employees within their span of control. Competencies are set of related attributes for effective/ superior job performance. Before developing a ranking system to identify potential successors, set of related competencies/ behavioural traits needs to be identified. We may identify required competencies for each Sr. level position by conducting interviews and discussions with present & previous incumbents. Separate instruments (questionnaires & formats) shall be developed for identification of competencies (Functional & Managerial) in the next stage.

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2) Development of Ranking System to identify Potential Successors :- A Ranking system shall be developed to identify potential successors on the basis of following measure.

Measure-I: Last 10 years performance assessment based on appraisal report would fetch maximum 100 points. 10 marks are kept for each year i.e. for outstanding-10 marks, Very good-8, Good-6, Average- 4, Unsatisfactory-0.

Measure-II: Total experience in the related functio n based on appraisal ratings in that duration. Maximum 5 points are kept for each year of experience but maximum points will be awarded only if the candidate has achieved outstanding rating in that year. If his rating is very good, 4 marks will be awarded, Good-3, Average-2 & unsatisfactory-0. Maximum mark a candidate may get on this Measure is 50.

Measure-III: Years of service left would be the other measure. 5 points are assigned for each year of service left with maximum 25 points .

Measure–IV: Executive Assessment on required competencies for t he vacant position using Multi rater Assessment tool will assess the executive’s potential to assume higher responsibilities in future. The assessment will be done at least by 10 people (to get feedback from various agencies) covering superior, 3 peers, 3 subordinates and 3 other departments executives. Average of each will be taken keeping 150 marks for this Measure . Separate questionnaires & formats for this multi rater assessment shall be developed . Traits/competencies identified at measure 1 would form the basis of assessment.

Measure–V: Special Awards/ Achievements: This factor will also be considered in ranking based appraisal system. Maximum points assigned for this Measure is 25. Special achievements are classified into 4 categories with weightage assigned to each of these.

Achievements Marks

Winning International award 25

Winning national level award 20

Representing company at international level forums 15

Representing company at national forums 10

Measure–VI: Medical Fitness will also be a factor to consider the suitability as potential successor for the senior level position. Approach behind this thinking is that if any executive or his family member is suffering from any major ailment/

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chronic problem, he will not be able to concentrate fully on his job and effectively discharge his responsibility. Information regarding the health & medical fitness of the executives will be adjudged from the average medical claim during previous 5 years.

Maximum marks would be 25 & shall be given on medical expenses of self as given below:

Average annual claim less than Rs.15,000/- including OPD & hospitalization

25

Average annual claim between 15,001-50,000 15

Average annual claim between 50,001-2 lakhs 10

Average annual claim more than 2 lakhs Nil

It is pertinent to mention here that above ranking system framed for the purpose of Succession Planning in POWERGRID will not affect existing Performance Appraisal System of the organisation.

3) Development of Potential Successors :- The whole exercise is not only aimed to assess the potential of Executives and develop the ranking for identifying the potential successors but also to trace out the gap areas to fill it with various HRD interventions. Gap areas will be indicated by the multi rater assessment exercise. After assessment and ranking of potential successors, identified deficiencies/ gap areas will provide training inputs to Corporate HRD deptt., which, after careful planning will design executive developmental plan for potential successors.

4) Sample:- A sample succession plan for the position of ED (CS) is placed in next pages. Position – ED (CS)

1. Job Profile :Managerial Identification of tasks and targets in accordance with the organizational goals and assigning responsibilities to middle management executives according to their skills and capabilities to accomplish successfully the goals. Inculcating culture which has positive outlook and less scope for conflicts, conflicts resolution without affecting the work culture, ensuring proper intra group, inter departmental and inter organizational working relations, implementing systems and procedures for consistency and quality in working as well as cross verifying the same for compliance. Further, improvement in systems and procedures and technical

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specifications based on feed back, ensuring proper interfacing between groups and motivating the department for group effective working.

Job Profile:Functional

� Responsible for entire gamut of pre-award contract management and material management activities including planning, contract packaging, tendering, bid evaluation, award finalisation. Liaisoning with concerned functions, regions and sites for effective coordination of contractual activities. Liaisoning with funding agencies and contractors whenever required to ensure prompt actions/expedite activities. Ensuring dispute resolution, contract closing with fulfillment of all formalities in a time bound and cost effective manner. Providing necessary guidance and help to site for effective post award management. Development and improvement of contract/materials management systems, procedures and documentation. Continuous assessment and adoption of changes in contract/materials related policies, practices to cope up with changing business environment including legal framework. Ensuring development of competency and expertise in the functional areas of Contract Services/Materials Management in accordance with the organizational requirements.

Job Specification

EDUCATIONAL QUALIFICATIONS :Graduate in Engineering from a recognized University/Institute. A post graduate degree or diploma in management or L.L.B. will be an added advantage.

EXPERIENCE PROFILE :23 years post qualification experience with at least 1 year as GM, with adequate exposure to entire gamut of contract and materials mgmt. specially international contracting is essential. Sufficient knowledge of legal / financial aspects, the trends and practices in contract, materials and project management. Should have proficiency in Finance, Project management, legal aspects of contracts and contractual intricacies. Must have leadership quality with cost and quality consciousness, logical reasoning, persuasion, negotiation and assertiveness skills.

2. Identified Traits/ Competencies Managerial a)

b)

c)

…

Functional/Technical a)

b)….

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Behavioural a)…

3. Ranking System

S.No. Measure Total Marks Ranking System

1 Last 10 yrs. Performance Assessment

4OS+4VG+2G

= 4x10+4x8+2x6

= 84/100

Each year- max.10 marks with maximum of 100 marks in last 10 years

Out of 10 marks ( for each yr)

Outstanding-10

Very good-8

Good-6

Average-4

Unsatisfactory-0

2 Experience in Contract Services

(having 5 yrs of experience)

2OS+1VG+ 2G

=2x5+1x4+2x3

=20/50

Each year- max. 5 marks with maximum of 50 marks .

Out of 5 marks(for each yr) Outstanding-5

Very good - 4

Good-3

Average-2

Unsatisfactory – 0

3 Years of Service Left (5 yrs of service left)

25/25 Each year- 5 points with max. 25 points

4 Multi rater Assessment

100/150 Assessment by superior + 3 peers+3 subordinates+3 other deptt. executives on identified competencies for the position covering at least 10 people = Avg. of each taken with max. points assigned for this measure is 150

5 Special Awards/ Achievements (Represented

10/25 Winning International award-25

Winning national level award-20

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company in national forum)

Rep. company at international forums- 15

Rep. company at national forum- 10

6 Medical Fitness 25/25 Average annual claim less than 15,000 Including OPD & hospitalization - 25

Average annual claim between 15,001- 50,000 - 15

Average annual claim between 50,001- 2 lakhs - 10

Average annual claim more than 2 lakhs- NIL

TOTAL 264/375 Based on the total marks, ranks will be assigned after assessment of all eligible executives & accordingly names will be recommended for the position.

3. Ranking Incumbent

Incumbent 1…

Incumbent 2…

Incumbent 3…

4. Identified Training Need for Succession Planning Incumbent 1 a)

b)

c)

Incumbent 2 a)

b)

c)

Incumbent 3 a)

b)

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c)

This approach paper is an attempt to demonstrate th e need & process of Succession Planning in POWERGRID. Moreover, while o utlining organisation’s succession plan, discussion with present incumbents , guidance from top management will provide a major fillip to the plan and efforts of HR will ensure its successful execution.