A STUDY ON EXCELLENCE IN HR PRACTICES

THROUGH EMPLOYEE EMPOWERMENT

INTRODUCTION:
Human Resources of an organization represent one of its largest
investments. The term human resources at the macro level indicate the
sum of all the components (like skill, creative ability) possessed by all the
people. Human resources at the organizational level include all the
component resources of employees from rank and file to top level
management. So, it includes the resource, of all people who contribute
their services to the attainment of organizational goals.
In order to ensure that organizations are sustainable in the medium
to long term scenario, employees must be motivated towards their work,
to acquire knowledge related skills and to perform with best of their
abilities. Further, greater employee involvement could be achieved
through a carefully managed process that strives for participation by
integrating every employee with the organization, which may yield high
productivity and competitive advantage for the organization. The best HR
practice should ensure that employees at all levels are given power to
influence decision making; they are given information about the
organizations operations and performance, and also trained to operate
the business with a proficient understanding. High quality employees
assure an organization of having a sustainable competitive advantage or
even a short-term advantage, only when they are motivated and aligned
with the conducive organizational systems that facilitate enhancement of
their skills and competencies.
In this way, leadership is critical to the sustainability of an
organization and it needs to be recognized that the leaders of
organizations now require new skills and competencies. Old styles of
leadership, reinforced by traditional bureaucratic hierarchies are no longer
appropriate to Indian organizations that now face the challenges of
competing in global markets and rapid technological change. It is a
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common practice to evaluate a companys performance by the profits it

makes. It is true that to survive, a company needs to generate profits on a
continuous basis. In fact, the relative measures of profitability like profit
margin, return on investment, return on equity, earnings per share, etc.,
are the bottom-line results which are used to rate the performance of
companies.
RELEVANCE OF THE STUDY:
This study will be a significant endeavor in the area of Human
Resource Management in general and employee empowerment in
particular. The survival of a company does not depend on profitability
alone; managers in practice have to learn the hard way that an unequal
focus on the financial health of the organization too results in several
irreparable adverse consequences. The main challenge before a manager
is therefore two dimensional such as: empowering people, and aligning
their individual goals with the objectives of the organization.
This research will therefore be very much relevant in the context of
contemporary business and industry, and will be beneficial to HR
professionals and executives. It will also serve as a future reference for
researchers on the subject of strategic human resources and it will lead
the companies to attain organizational effectiveness.
NEEDS OF THE STUDY:
While it is possible to identify changes in work and organization
which seek to render the attitudes and behavior of employees more
visible to the management gaze, there are needs and initiatives which
seek to shape employee identity and secure motivations and definitions of
interests which match the needs of the employer. The core area of
concern before the industry today is how to develop a feeling among the
employees they are being empowered to take the right decisions. Any
study on HRM has to begin with the assumption that there is a need to
legitimate the trespass on the employees autonomy by the employer in
order to ensure that the end objective of an organization is not
compromised.

There

is

tendency

to

evolve

great

deal

of

sophisticated HRM to deal with this critical concern through employee

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empowerment which ensures that the employer does not invade into
employee privacy, autonomy and decision making process.
Power is a critical infrastructure for economic development and
important in quality of life. It is basic input to improve the standard of
living and agricultural and industrial development in the country.
Electricity, now-a-days, has no more remained a luxury item only to urban
elites but has become an integral part of mans life, both personal and
economic.

For

effective

implementation

of

various

development

programme in agriculture, industry, science and technology, energy has

been the most important factor in the form of electricity. Electrical energy
keeps lifes clock ticking on the earth. It is required to cook our food, to
light our houses, to run tractors and pumps in the farms. Availability of
electrical energy in adequate quantities is an indispensable condition for
achieving sustained growth of industries. Indias power sector Electricity is
an integral utility in modern society, with links to everything from a
human's subconscious fear of the dark to the practical need for working
illumination in an industrialized world. The entire world essentially runs on
electricity, in one form or another.
Orissa is the first State in the Country to have undertaken reform
and restructuring in power sector to make power supply more efficient
and to be able to meet the investment needs of the sector. The State
Electricity Board which was a monolithic organization, looking after
generation, transmission and distribution of power was unbundled. The
Grid Corporation of Orissa Limited (GRIDCO) was entrusted with the
responsibility of Transmission and Distribution Systems, whereas Orissa
Hydro Power Corporation owned and operated all hydro power generation
stations in the State from 1st April'1996. The Orissa Electricity Reforms
Act 1995 came into force with effect from 1st April'1996. An independent
transparent

regulatory

regime,

Orissa

Electricity

Regulatory

Commission (OERC) was established in April, 1996 in order to look after

the regulation measures and also to promote accountability in the sector
and to encourage private sector investment. Subsequently, in April, 1999,
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the distribution business of GRIDCO was privatized when GRIDCO

disinvested 51% of its share of its equity holding in Distribution
Companies to Private Investors with financial and technical capabilities.
Disinvestment in power distribution sector is a major step in the power
sector reform initiative which is now being replicated in other States of the
Country.
NESCO, WESCO & SOUTHCO was incorporated on 19.11.1997 under
the Companies Act, 1956. It has taken over the Business of Distribution
and Retail Supply of Electricity in the North Eastern Zone, Western &
Southern Zone of the Orissa of GRIDCO.GRIGDICO
Pursuant to the Orissa Electricity Reforms Act 1995 and Orissa
Electricity Reforms (Transfer of Assets, Liabilities, Proceedings and
Personnel of GRIDCO to Distribution Companies) Rules 1998, in the year
1998 all the assets of GRIDCO pertaining to the distribution business and
distribution undertaking in the North Eastern, Western & Southern Zone of
GRDICO was transferred to NESCO,WESCO & SOUTHCO vide Orissa
Gazette Notification Published vide Sr. No. 750/98

dated 26/11/1998

and NESCO,WESCO & SOUTHCO started its business operation on and

from that data.
By virtue of Power Sector reform in Orissa, NESCO, WESCO &
SOUTHCO became a subsidiary of BSES Limited, Mumbai on 1st April 1999
by acquisition of 51% of the shareholding of the Company by BSES
Limited.
Keeping in view the objectives of the power sector reform, the
management of the Company has been handed over to BSES Ltd. (Now
Reliance Energy Limited,), Mumbai on 01.04.1999, upon transfer of 51%
shares hold by GRIDCO in the company in favour of BSES Ltd. through
competitive bidding process.
North Eastern Electricity Supply Company of Odisha Ltd. (NESCO) has a
workforce of about 4000. This force is the real asset of the company. The
welfare and well being of this asset has been given top priority by the
4

company. Hence this topic is selected to study and analyze the human
resources management practices in North Eastern Electricity Supply
Company of Odisha

Ltd. and to present conclusions and suggest

measures to improve Human resources management practices in North

Eastern Electricity Supply Company of Odisha Ltd.
Empowerment requires an increase in agency (discretionary power
exercised by

subordinates) within organizations as employees are

required to become increasingly self-regulating and to accept delegated

responsibilities. Rather than making questions of managerial control less
salient than before, empowerment makes them more so because freedom
of discretion requires discipline to be reliable, be it surveillance, reporting
systems, or self-regulation.

In the backdrops of the vital revelations above, there is an

impending need to carry out an investigation into the changing role of HR
managers in empowering employees of the organization under study i.e.
NESCO, which is in the power sector.

OBJECTIVES OFTHE STUDY:

The investigator has outlined the following as objectives of the
present research:

To assess the quality of human resource function in the power

sector.
To find out the internal industrial relations system between the

management, worker and unions.

To build a conceptual framework of the study relating to Human

Resource Management.
To examine the Human Resource Management practices in NESCO

India Limited
To examine the recruitment, training and promotion practices in
NESCO India Limited.
5

To examine the performance appraisal and employer employee

relations in NESCO India Limited.

To examine the socio-economic measures like wage structure,
corporate social responsibility and job satisfaction level in NESCO

India Limited.
To suggest measures for improving employee empowerment in

NESCO.
To analyze the impact of HRM practices upon the employees
empowerment in NESCO India Limited.

SCOPE OF THE STUDY:

As the human capital takes center stage in todays economy, the HR
function is becoming a strategic powerhouse in organizations. Recent
times certainly have proven this maxim to be true. Starting with the
Internet boom through the recent economic downturn and on to todays
anticipation of recovery, companies have been forced to continuously
adjust their corporate strategies to keep up with the relentless pace of
change in the economic environment.
The human resource function has been at the center of this period
of upheaval. During the economic good times, companies looked to HR to
attract, retain and motivate the critical-skill workers necessary for rapid
business growth. As the economy cooled, organizations depended on HR
to find ways to reduce costs while getting the most from existing, limited,
resources. Now, as the focus shifts to recovery, HR executives must
ensure their workforces have the skills required to restore organizational
competitiveness and to contribute to long-term business objectives.
As the human capital takes center stage in todays economy the HR
function is becoming a strategic powerhouse in organizations. The HRs
strategic race begins with designing HR architecture i.e. the HR functions,
HR systems and strategic employee behaviors that relentlessly emphasize
and reinforce the implementation of the organizations strategy.
In a customer-focused business environment, organisations require
radically a different mindset, strategy and management skills from what
was the norm in the stable and supply-constrained environment of the
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past. At organisation level, there is a growing belief that the continuing

technological innovation, the primacy of customer and knowledge, the
changing values and working habits of the knowledge society demand
radically different organizational form and emphasis. Such a structure is
characterized as being responsive, flexible and cross-activity oriented. To
achieve responsiveness and flexibility, organizations should bring
decision-making processes closer to work and people who influence work
and customers. The most appropriate form of organizations to enhance
the interface between external and internal customers uses a network
structure, as revealed through several researchers in their review of the
literature. It is also found that network organizations have loosely coupled
networks and alliances, in which units are responsive to each other but
retain separateness and their own identity. This requires management to
promote empowerment and collaborative individualism.
METHODOLOGY:
i). Nature of the Study: Present study is exploratory in nature,
seeking to evaluate the ethical concern among the employees in
selected organizations.
ii). Formulation of Hypotheses:
If the Company has to remain viable, importance should be
given on both training and development practices required with the
change of time. Hence it was hypothesized that Effective training
and development practices lead to employee empowerment.
Positive relationships may be assured between human
resource management functions like maintenance, integration,
morale

and

satisfaction

of

individuals

and

groups

in

the

organization. Hence the hypothesis formed is as follows: Effective

implementation of the operative functions of HRM lead to employee
empowerment.
Organization made the human beings socially responsible and
create the concept of World in a small miniature. There is positive
interlink between human resource control system and effectiveness
of whole of Organization not only in terms of economic aspect but
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also psychological aspect of both the individuals and groups.

Therefore, the hypothesis formed is: The locus of control in HRM
practices lead to employee empowerment.

iii). Sources of Information:

The present study shall take the help of both primary and
secondary data to arrive at its findings logically. The database shall
be a mix of exploratory, observational, quantitative, qualitative
structured questionnaires, unstructured approach and survey and
interview

conducted.

For

secondary

data

books,

journals,

magazines, newspapers, official papers of NESCO, News, periodical,

articles on internet, home web sites, and a host of documents
available in research literature concerning employee empowerment.
a. Primary Data: To acquire fundamental knowledge on the subject of
employee empowerment, a sample of employees working across the
organization shall be administered with a structured questionnaire,
besides observation and consulting them on their areas of concern.
Officials of the organizations involved with the management of
employees shall also be contacted, and their views on employee
empowerment shall also be noted.
b. Secondary Data: It shall consist of the published books, referred
journals, bulletins and reports with regards to the concept and
practice

of

employee

empowerment.

Various

reports,

policy

programs and guidelines adopted by the organization under study

and the corresponding best practice adopted by other organizations/
institutions shall also be incorporated into the study for right
interpretation and logical reasoning.
iv). Sampling Technique:
A representative sample shall be administered with the instrument/
questionnaire after carrying out the validity and reliability tests.
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v). Statistical Tools and Tests: The simple statistical shall be used
for analyzing the data collected by using instrument/questionnaire as
well as the relevant research literature, which shall then be computed.
vi). Data Analysis: The collected data shall be analyzed with the help
of appropriate statistical tools. The investigator shall attempt to evolve
a model for employee empowerment on the basis of the data collected
and analyzed, besides taking into account the review of research
literature.
Various parameters adopted by the present research for
sampling

and

data

analysis,

in

nutshell,

include

the

following:
a. Geographical Scope:
This study is to be carried out among a sample of

employees

working in Corporate Office Balasore, 5 circles, 2 GRFs as well as

other 16 divisions of NESCO.
b. Operational Scope:
For the study of Employee Empowerment in North Eastern
Electricity

Supply

Company

of

Odisha

Ltd.

(NESCO),

senior

employees will be included in the first strata, and in the second

strata Senior employees of the Circle will be included. Sample size
of 500 respondents working in all parts of five districts of NESCO will
be selected.
c. Periodical Scope:
The study will cover the data for the period of two years from 2015 2017
LIMITATIONS:
Present study is an attempt to reveal the degree of
employee empowerment in a selected industry. Though it is aimed at a
thorough analysis of employee empowerment, it has certain limitations
due to paucity of time and resources at the level of respondents as well
as the researcher. However, the study could be extended in future to

reveal the total picture of employee empowerment across various

organizations.
SCHEME OF CHAPTERS:
After gathering information from various sources, the investigator
would seek to develop a logical sequence leading to the scheme of
chapters. As such, Chapter-I of the present study deals with the
introduction and methodology, followed by Chapter-II which provides a
brief profile of organizations under study. In the Chapter-III, the
investigator presents a review of research literature in the area of
study, followed by Chapter-IV which deals with the analysis and
interpretation of data. Finally, in Chapter-V, the investigator brings out
the summary of findings, conclusion and suggestions emanating from
the present study.
The above Chapter Scheme is tentative. Depending on the actual
research work it may change in due course of the study.

(Bijoyalaxmi Panda)

(Dr.

Satyabrata Patro)
Research Scholar
Research Guide

References
Books:
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Aswathappa K, Human Resource and Personnel Management: Text and

Cases, Tata McGraw-Hill Education,2005
Chhabra T.N, Human Resource Management: Concepts and Issues,
Dhanpat Rai & Co., 2014
Dessler

Gary,

Human

Resource

Management,

10th

Edition,

Pearson/Prentice Hall, 2005

Mamoria C.B., Gankar S. V., Personnel Management,23rd Edition,Himalaya
Publishing house, 2003
Rao V.S.P., Human Resources Management, 3rd Edition, Excel Books India
Rao P.Subba, Essential of HRM & IR: Text, Cases & Games, 3rd Edition,
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Sims Ronald R., Human Resource Management: Contemporary Issues,
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Bennis, W. (1997). Becoming leader of leaders, in Gibson, R. (Ed.),
Rethinking the future. Nicholas Brealey Publishing, pp.149-63.
Drucker, P.F. (1999). Management challenges in the 21st century,
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Karpin, D. (1995). Enterprising Nation: Renewing Australias Managers to
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Limerick, D. and Cunnington, B. (1993). Managing the New Organisation.
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Toffler, A. and Toffler, H. (1997). In Rethinking the Future. Gibson, R. (Ed.),
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Tim Claydon and Mike Doyle, Trusting Me, Trusting You? The Ethics of
Employee Empowerment. De Montfort University, Leicester, UK
Journals:
Lawler, E. (1994). Total quality management and employee involvement:
Are they compatible?

Academy of Management Executive. vol. 8

no.1 pp68-76.
Websites:
www.nescoorissa.cpm
www.google.co.in
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