CHAPTER CONTENT PAGE no. 1 ABOUT THE COMPANY 1.1 NATIONAL THERMAL POWER COOPERATION 1 1.2 COMPANY PROFILE 3 1.3 RIHAND SUPERTHERMAL POWER STATION 5 1.4 INDUSTY PROFILE 7 1.5 NEED OF STUDY 8 1.6 OBJECTIVE OF STUDY 9 1.7 SCOPE OF STUDY 9 2 LITERATURE SURVEY 2.1 ORGANISATIONAL CHANGE 10 2.2 CHANGE MANAGEMENT 13 2.3 ENTREPRENEUR RESOURCE MANAGEMENT 18 3 REASERCH 3.1 REASERCH METHODOLOGY 27 3.2 SAMPLE 27 3.3 TOOL FOR DATA COLLECTION 27 3.4 PROCEDURE 28 3.5 DATA ANALYSIS 28 4 RESULT 4.1 COMMUNICATION 29 4.2 EFFECTIVENESS OF TRAINING 30 4.3 MEASURE THE LEVEL OF RESISTANCE 32 5 CONCLUSIONS 34 BIBLIOGRAPHY 35
Transcript
CHAPTER CONTENT PAGE no.
1 ABOUT THE COMPANY
1.1 NATIONAL THERMAL POWER COOPERATION 1
1.2 COMPANY PROFILE 3
1.3 RIHAND SUPERTHERMAL POWER STATION 5
1.4 INDUSTY PROFILE 7
1.5 NEED OF STUDY 8
1.6 OBJECTIVE OF STUDY 9
1.7 SCOPE OF STUDY 9
2 LITERATURE SURVEY
2.1 ORGANISATIONAL CHANGE 10
2.2 CHANGE MANAGEMENT 13
2.3 ENTREPRENEUR RESOURCE MANAGEMENT 18
3 REASERCH
3.1 REASERCH METHODOLOGY 27
3.2 SAMPLE 27
3.3 TOOL FOR DATA COLLECTION 27
3.4 PROCEDURE 28
3.5 DATA ANALYSIS 28
4 RESULT
4.1 COMMUNICATION 29
4.2 EFFECTIVENESS OF TRAINING 30
4.3 MEASURE THE LEVEL OF RESISTANCE 32
5 CONCLUSIONS 34
BIBLIOGRAPHY 35
CHAPTRE 1
ABOUT THE COMPANY
1.1 NATIONAL THERMAL POWER COOPERATION
NTPC, the largest power Company in India, was setup in 1975 to accelerate power development in the country.
It is among the world’s largest (6th) and most efficient power generation companies. In Forbes list of World’s
2000 Largest Companies for the year 2007, NTPC occupies 411th place.
NTPC has installed capacity of 29,394 MW. It has 15 coal based power stations (23,395 MW), 7 gas based power
stations (3,955 MW) and 4 power stations in Joint Ventures (1,794 MW). The company has power generating
facilities in all major regions of the country. It plans to be a 75,000 MW company by 2017.
NTPC has gone beyond the thermal power
generation. It has diversified into hydro
power, coal mining, power equipment
manufacturing, oil & gas exploration,
power trading & distribution. NTPC is now
in the entire power value chain and is
poised to become an Integrated Power
Major.NTPC's share on 31 Mar 200 8 in the
total installed capacity of the country was
19.1% and it contributed 28.50% of the
total power generation of the country
during 2007-08. NTPC has set new benchmarks for the power industry both in the area of power plant
construction and operations.With its experience and expertise in the power sector, NTPC is extending consultancy
services to various organizations in the power business. It provides consultancy in the area of power plant
constructions and power generation to companies in India and abroad.
In November 2004, NTPC came out with its Initial Public Offering (IPO) consisting of 5.25% as fresh issue and
5.25% as offer for sale by Government of India. NTPC thus became a listed company with Government holding
89.5% of the equity share capital and rest held by Institutional Investors and Public. The issue was a resounding
success. NTPC is among the largest five companies in India in terms of market capitalization.
Recognizing its excellent performance and vast potential, Government of the India has identified NTPC as one of
the jewels of Public Sector 'Navratnas'- a potential global giant. Inspired by its glorious past and vibrant present,
NTPC is well on its way to realize its vision of being "A world class integrated power major, powering India's
growth, with increasing global presence".
Vision
A world class integrated power major, powering India's growth with increasing global presence.
Mission
Develop and provide reliable power related products and services at competitive prices, integrating multiple
energy resources with innovative & Eco-friendly technologies and contribution to the society
Core Values – BCOMIT
Business ethics
Customer Focus
Organizational & Professional Pride
Mutual Respect & Trust
Innovation & Speed
Total Quality for Excellence
1.2 COMPANY PROFILE
Future Of The Generation Business
Developing and operating world-class power stations is NTPC's core competence. Its scale of operation, financial
strength and large experience serve to provide an advantage over competitors. To meet the objective of making
available reliable and quality power at competitive prices, NTPC would continue to speedily implement projects
and introduce state-of-art technologies.
Total Capacity Portfolio
India's generation capacity can be expected to grow from the current levels of about 120 GW to about 225-250
GW by 2017. NTPC currently accounts for about 20% of the country's installed capacity and almost 60% of the
total installed capacity in the Central sector in the country. Going forward, in its target to remain the largest
generating utility of India, NTPC would endeavor to maintain or improve its share of India's generating capacity.
Towards this end, NTPC would target to build an overall capacity portfolio of over 66,000 MW by 2017.
Fuel / Energy Mix For Capacity Addition
Currently, coal has a dominant share in the power generation capacities in India. This is also reflected in the high
share of coal-based capacities in NTPC's current portfolio. With high uncertainties involved in Domestic gas/
LNG, both in terms of availability and prices, NTPC would continue to set up large pit-head coal based projects,
including few integrated coal cum power projects. To reduce the dependence on fossil fuels, there is a need to
push for renewable sources of power in the sector. NTPC would avail of opportunities to add hydropower to its
portfolio subject to competitive tariffs. A first step in this direction has already been taken with the investment in
Koldam Hydro Power Project. NTPC would continue to closely monitor developments on nuclear front also and
be open to setting up around 2000 MW of Nuclear power generation capacity, possibly through a Joint Venture.
As a leader in power generation, NTPC would also consider other energy sources such as biomass, cogeneration,
fuel cells, etc for future development thereby reducing the dependence on thermal fuels.
While a decision on the fuel/energy mix for NTPC in the future would be largely governed by their relative tariff-
competitiveness, the fuel mix in 2017 may be different from the existing portfolio, though not very significantly.
Diversification Along The Value Chain
NTPC has achieved the distinction of being the largest thermal generating company in India. In the past, this
focus was adequate as the industry was highly regulated with limited diversification opportunities. Over last few
years, the country has been facing acute shortages, both in coal and gas, severely affecting optimum utilization of
its power stations and these shortages are likely to continue in future as well. This is in spite of the fact that India
is one of the largest producers of coal in the World. To safeguard its competitive advantage in power generation
business, NTPC has moved ahead in diversifying its portfolio to emerge as an integrated power major, with
presence across entire energy value chain. In fact, to symbolize this change, NTPC has taken on a new identity
and a new name 'NTPC Limited'. NTPC has recently diversified into coal mining business primarily to secure its
fuel requirements and support its aggressive capacity addition program. In addition, NTPC is also giving thrust on
diversification in the areas of power trading and distribution. Diversification would also allow NTPC to offer new
growth opportunities to its employees while leveraging their skills to capitalize on new opportunities in the sector.
Establishing A Global Presence
To become a truly global company serving global markets, it is essential for NTPC to establish its brand equity in
overseas markets. NTPC would continue to focus on offering Engineering & Project Management Services,
Operations & Maintenance services, and Renovation & Modernization services in the international market.
Establishing a successful services brand would be a precursor to taking higher investment decisions in different
markets. Going forward, NTPC would continue to evaluate various options for strengthening its presence in
global markets including setting up power generation capacity, acquisition of gas blocks etc.
Circa 2017: NTPC's Corporate Profile
By the year 2017, NTPC would have successfully diversified its generation mix, diversified across the power
value chain and entered overseas markets. As a result NTPC would have altered its profile significantly. Elements
of the revised profile that NTPC would seek to achieve are:
Amongst top five market capitalization in the Indian market
An Indian MNC with presence in many countries
Diversified utility with multiple businesses
Setting benchmarks in project construction and plant availability & efficiency
Preferred employer
Have a strong research and technology base
Loyal customer base in both bulk and retail supply
A leading corporate citizen with a keen focus on executing its social –responsibility
1.3 RIHAND SUPERTHERMAL POWER STATION
THE VICINITY:
This region locally known as “ Dakshinachal” is now one of the major power centres in the country.besides two
other projects of NTPC viz.Singrauli (2000mw) aand vindhyachal (3269 mw) ,other power stations in the area are
– two thermal and two hydel stations of Govt. Of U.P.viz. Anpara thermal (1600MW) , obrathermal (1550MW),
Rihand hydel(300MW),Obra hydel (100MW). And also the Renusagar Power co.(732.5MW) of
Hindalco.industries in these area are,other than the coal mines Hindalco-a major aluminium producing
factory,kanoria chemicals and high tech carbon at Renukoot.
The foundation stone of Rihand super thermal power project was laid down on 9 February 1982. It is one of
the NTPC’s best power plants, in the northern region constructed by Northern Engineering Industries (U.K.).
Rihand completes the power triangle with Singrauli STPS, Vidhychal STPS. It is situated in Bijpur village and
in the industrial belt of the district- Sonebhadra of Uttar Pradesh, which is situated at the border of MP&UP.
This plant is situated at the south bank of Rihand Reservoir (Govind Ballabh Pant Sagar), made artificially. Its
area is about 50X10 sq.km. It is a large reservoir, having huge mass of water, from which five thermal power
plants and one hydro power plant takes water for operation.
The capacity of RhSTPP, Ist stage of 2X500 MW is in operation and IInd stage of the 2X500 MW plant under
construction and one unit has been synchronized in the month of March 2005 and the second unit has to be
synchronized till the month of November. High voltage direct current (HVDC) transmission system is the
unique feature of this power plant. It is used to transmit DC current from this plant to Delhi. In Rihand STPP,
coal from Amlori mines is used as a fuel to produce thermal energy. Coal normally contains 30% to 40% ash
content. When it is burned in the boiler furnace, it results in large amount of ash depositions in various regions
of the boiler via; water wall tubes, super heater tubes, reheater tubes, plugging of air heater baskets with the fly
ash. This soot deposition reduces the heat transfer from flue gases to water/steam flowing inside the tubes.
Therefore, its removal is very essential in the boiler. For this soot blowing system is used.
SALIENT FEATURE
Location: Bijpur village, Distt. Sonebhadra. (U.P).
Total proposed capacity: 3000 MW, in 3 stages each of 2X500MW
Total land (in acres): UP MP Total
4680 1752 6432
Power Evacuation: +/-500Kv HVDC Bipolar line to Dadri (Delhi), 400kV single circuit
The redundant staff will be required to operate the current systems and processes until the new solution is
ready - and maybe for some period of parallel running. Since it is a legal or contractual requirement in
most countries to announce potential redundancies well in advance and to give individuals notice before
their departure date, the question is how to ensure they give good service and do no damage to the
organization or the new systems.
There may also be implications for the survivors - those people who you are relying upon to deliver the
new solution. They may be affected by the bad news concerning their colleagues. They may even go
through a period of uncertainty when they do not know whether or not they themselves will be retained.
What needs to be done to maintain their support and enthusiasm? Bear in mind that the same issues could
confront project team members as well as the target population.
By this stage in a major change, there needs to be a substantial support mechanism for the target
population. As the key messages are communicated, the project team needs to be ready to help and
prepared for the inevitable issues. By this time, the sponsorship cascade should be complete and solid -
often extending down to local champions carefully placed in the users' teams. Support mechanisms will
ease the users' troubles, for example with appropriate training at the right time, desk-side coaching, good
help desk /call centre support.
Organizational Change Management should not stop with the end of the project. During the Benefit
Realization stage of the lifecycle, continuing emphasis will be needed to encourage the community to
adapt to the new ways of working and get the most from the change.
2.3 ENTREPRENEUR RESOURCE MANAGEMENT
Enterprise resource planning (ERP) is the planning of how business resources (materials, employees, customers etc.) are acquired and moved from one state to another.
An ERP system supports most of the business system that maintains in a single database the data needed for a variety of business functions such as Manufacturing, Supply Chain Management, Financials, Projects, Human Resources and Customer Relationship Management.
An ERP system is based on a common database and a modular software design. The common database can allow every department of a business to store and retrieve information in real-time. The information should be reliable, accessible, and easily shared. The modular software design should mean a business can select the modules they need, mix and match modules from different vendors, and add new modules of their own to improve business performance.
Ideally, the data for the various business functions are integrated. In practice the ERP system may comprise a set of discrete applications, each maintaining a discrete data store within one physical database
Origin of the term
The initial ERP originated as an extension of MRP (material requirements planning, and then manufacturing resource planning) and CIM (computer-integrated manufacturing) and was introduced by research and analysis firm Gartner. ERP systems now attempt to cover all basic functions of an enterprise, regardless of the organization's business or charter. Non-manufacturing businesses, non-profit organizations and governments now all use ERP systems.
To be considered an ERP system, a software package must provide the function of at least two systems. For example, a software package that provides both payroll and accounting functions could technically be considered an ERP software package.
However, the term is typically reserved for larger, more broadly based applications. The introduction of an ERP system to replace two or more independent applications eliminates the need for external interfaces previously required between systems, and provides additional benefits ranging from standardization and lower maintenance (one system instead of two or more) to easier and/or greater reporting capabilities (as all data is typically kept in one database).
Examples of modules in an ERP which formerly would have been stand-alone applications include: Manufacturing, Supply Chain, Financials, Customer Relationship Management (CRM), Human Resources, Warehouse Management and Decision Support System.
Overview of ERP Solutions
Some organizations — typically those with sufficient in-house IT skills to integrate multiple software products — choose to implement only portions of an ERP system and develop an external interface to other ERP or stand-alone systems for their other application needs. For example, one may choose to use human resource management system from one vendor, and the financial systems from another, and perform the integration between the systems themselves.
This is very common in the retail sector, where even a mid-sized retailer will have a discrete Point-of-Sale (POS) product and financials application, then a series of specialized applications to handle business requirements such as warehouse management, staff roistering, merchandising and logistics.
Ideally, ERP delivers a single database that contains all data for the software modules, which would include:
Order to cash, Inventory, Order Entry, Purchasing, Product Configuration, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission Calculation
Financials
General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets
Projects
Costing, Billing, Time and Expense, Activity Management
Human Resources
Human Resources, Payroll, Training, Time & Attendance, Roistering, Benefits
Customer Relationship Management
Sales and Marketing, Commissions, Service, Customer Contact and Call Center support
Data Warehouse
And various Self-Service interfaces for Customers, Suppliers, and Employees
Enterprise Resource Planning is a term originally derived from manufacturing resource planning (MRP II) that followed material requirements planning (MRP). MRP evolved into ERP when "routings" became a major part of the software architecture and a company's capacity planning activity also became a part of the standard software activity. ERP systems typically handle the manufacturing, logistics, distribution, inventory, shipping, invoicing, and accounting for a company. Enterprise Resource Planning or ERP software can aid in the control of many business activities, like sales, marketing, delivery, billing, production, inventory management, quality management, and human resource management.
ERP systems saw a large boost in sales in the 1990s as companies faced the Y2K problem in their legacy systems. Many companies took this opportunity to replace their legacy information systems with ERP systems. This rapid growth in sales was followed by a slump in 1999, at which time most companies had already implemented their Y2K solution.
ERPs are often incorrectly called back office systems indicating that customers and the general public are not directly involved. This is contrasted with front office systems like customer relationship management (CRM) systems that deal directly with the customers, or the eBusiness systems such as eCommerce, eGovernment, eTelecom, and eFinance, or supplier relationship management (SRM) systems.
ERPs are cross-functional and enterprise wide. All functional departments that are involved in operations or production are integrated in one system. In addition to manufacturing, warehousing, logistics, and information technology, this would include accounting, human resources, marketing, and strategic management.
ERP II means open ERP architecture of components. The older, monolithic ERP systems became component oriented.
EAS — Enterprise Application Suite is a new name for formerly developed ERP systems which include (almost) all segments of business, using ordinary Internet browsers as thin clients.[citation needed]
Before
Prior to the concept of ERP systems, it was not unusual for each department within an organization to have its own customized computer system. For example, the human resources (HR) department, the payroll department, and the financial department might all have their own computer systems.
Typical difficulties involved integration of data from potentially different computer manufacturers and systems. For example, the HR computer system (often called HRMS or HRIS) would typically manage employee information while the payroll department would typically calculate and store paycheck information for each employee, and the financial department would typically store financial transactions for the organization. Each system would have to integrate using a predefined set of common data which would be transferred between each computer system. Any deviation from the data format or the integration schedule often resulted in problems.
After
ERP software, among other things, combined the data of formerly separate applications. This simplified keeping data in synchronization across the enterprise, it simplified the computer infrastructure within a large organization, and it standardized and reduced the number of software specialties required within larger organizations.
Best Practices
Best Practices were also a benefit of implementing an ERP system. When implementing an ERP system, organizations essentially had to choose between customizing the software or modifying their business processes to the "Best Practice" function delivered in the vanilla version of the software.
Typically, the delivery of best practice applies more usefully to large organizations and especially where there is a compliance requirement such as IFRS, Sarbanes-Oxley or Basel II, or where the process is a commodity such as electronic funds transfer. This is because the procedure of capturing and reporting legislative or commodity content can be readily codified within the ERP software, and then replicated with confidence across multiple businesses who have the same business requirement.
Where such a compliance or commodity requirement does not underpin the business process, it can be argued that determining and applying a Best Practice actually erodes competitive advantage by homogenizing the business as compared to everyone else in the industry sector.
Because of their wide scope of application within a business, ERP software systems are typically complex and usually impose significant changes on staff work practices. Implementing ERP software is typically not an "in-house" skill, so even smaller projects are more cost effective if specialist ERP implementation consultants are employed. The length of time to implement an ERP system depends on the size of the business, the scope of the change and willingness of the customer to take ownership for the project. A small project (e.g., a company of less than 100 staff) may be planned and delivered within 3-9 months; however, a large, multi-site or multi-country implementation may take years.
To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. These firms typically provide three areas of professional services: consulting, customization and support. The client organization may also employ independent program management, business analysis, change management and UAT specialists to ensure their business requirements remain a priority during implementation.
Data migration is one of the most important activities in determining the success of an ERP implementation. Since many decisions must be made before migration, a significant amount of planning must occur. Unfortunately, data migration is the last activity before the production phase of an ERP implementation, and therefore receives minimal attention due to time constraints. The following are steps of a data migration strategy that can help with the success of an ERP implementation:
1. Identifying the data to be migrated 2. Determining the timing of data migration 3. Generating the data templates 4. Freezing the tools for data migration 5. Deciding on migration related setups 6. Deciding on data archiving
Process preparation
ERP vendors have designed their systems around standard business processes, based upon best business practices. Different vendor(s) have different types of processes but they are all of a standard, modular nature. Firms that want to implement ERP systems are consequently forced to adapt their organizations to standardized processes as opposed to adapting the ERP package to the existing processes. Neglecting to map current business processes prior to starting ERP implementation is a main reason for failure of ERP projects. It is therefore crucial that organizations perform a thorough business process analysis before selecting an ERP vendor and setting off on the implementation track. This analysis should map out all present operational processes, enabling selection of an ERP vendor whose standard modules are most closely aligned with the established organization. Redesign can then be implemented to achieve further process congruence. Research indicates that the risk of business process mismatch is decreased by:
Linking each current organizational process to the organization's strategy; Analyzing the effectiveness of each process in light of its current related business capability;
Understanding the automated solutions currently implemented.
ERP implementation is considerably more difficult (and politically charged) in organizations structured into nearly independent business units, each responsible for their own profit and loss, because they will each have different processes, business rules, data semantics, authorization hierarchies and decision centers. Solutions include requirements coordination negotiated by local change management professionals or, if this is not possible, federated implementation using loosely integrated instances (e.g. linked via Master Data Management) specifically configured and/or customized to meet local needs.
A disadvantage usually attributed to ERP is that business process redesign to fit the standardized ERP modules can lead to a loss of competitive advantage. While documented cases exist where this has indeed materialized, other cases show that following thorough process preparation ERP systems can actually increase sustainable competitive advantage.
Configuration
Configuring an ERP system is largely a matter of balancing the way you want the system to work with the way the system lets you work. Begin by deciding which modules to install, then adjust the system using configuration tables to achieve the best possible fit in working with your company’s processes.
Modules - Most systems are modular simply for the flexibility of implementing some functions but not others. Some common modules, such as finance and accounting are adopted by nearly all companies implementing enterprise systems; others however such as human resource management are not needed by some companies and therefore not adopted. A service company for example will not likely need a module for manufacturing. Other times companies will not adopt a module because they already have their own proprietary system they believe to be superior. Generally speaking the greater number of modules selected, the greater the integration benefits, but also the increase in costs, risks and changes involved.
Configuration enables a company to tailor a particular aspect of the system to the way it chooses to do business. For example, an organization can select the type of inventory accounting – FIFO or LIFO – it will employ or whether it wants to recognize revenue by geographical unit, product line, or distribution channel.
So what happens when the options the system allows just aren’t good enough? At this point a company has two choices, both of which are not ideal. It can re-write some of the enterprise system’s code, or it can continue to use an existing system and build interfaces between it and the new enterprise system. Both options will add time and cost to the implementation process. Additionally they can dilute the system’s integration benefits. The more customized the system becomes the less possible seamless communication becomes between suppliers and customers.
Many organizations did not have sufficient internal skills to implement an ERP project. This resulted in many organizations offering consulting services for ERP implementation. Typically, a consulting team was responsible for the entire ERP implementation including planning, training, testing, implementation, and delivery of any customized modules. Examples of customization includes additional product training; creation of process triggers and workflow; specialist advice to improve how the ERP is used in the business; system optimization; and assistance writing reports, complex data extracts or implementing Business Intelligence.
For most mid-sized companies, the cost of the implementation will range from around the list price of the ERP user licenses to up to twice this amount (depending on the level of customization required). Large companies, and especially those with multiple sites or countries, will often spend considerably more on the implementation than the cost of the user licenses -- three to five times more is not uncommon for a multi-site implementation.
Customization Services
Customization Services involves any modifications or extensions that change how the out-of-the-box ERP system works.
Customizing an ERP package can be very expensive and complicated. Some ERP packages are not designed to support customization, so most businesses implement the best practices embedded in the acquired ERP system. Some ERP packages have very generic features, such that customization occurs in most implementations. It is also often possible to extend the standard ERP package by purchasing third party software to provide additional functionality.
Customization work is usually undertaken as bespoke software development on a time and materials basis.
Customization can be further classified into: Core system customization or custom extensions in custom libraries
Core system customization is where customers change the software vendors’ proprietary code. This means that the software will no longer be supported by the vendor for the particular function that was customized as the code would be modified to the customers need. The customers IT department will then normally support the code in-house or subcontract a consulting organization to do so.
Custom extensions are where a customer build bolt on custom applications that run parallel to the standard system i.e. custom extended applications. Modules that are extended but core code not changed remain supported but the extensions will have to be supported by the customers IT department or subcontracted consulting organization
Maintenance and Support Services involves monitoring and managing an Operational ERP system. This function is often provided in-house using members of the IT department, but may also be provided by specialist external consulting and services companies.
Advantages
In the absence of an ERP system, a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. Tasks that need to interface with one another may involve:
Design engineering (how to best make the product) Order tracking from acceptance through fulfillment The revenue cycle from invoice through cash receipt Managing interdependencies of complex Bill of Materials Tracking the 3-way match between Purchase orders (what was ordered), Inventory receipts (what
arrived), and Costing (what the vendor invoiced) The Accounting for all of these tasks, tracking the Revenue, Cost and Profit on a granular level.
Change how a product is made, in the engineering details, and that is how it will now be made. Effective dates can be used to control when the switch over will occur from an old version to the next one, both the date that some ingredients go into effect, and date that some are discontinued. Part of the change can include labeling to identify version numbers.
Some security features are included within an ERP system to protect against both outsider crime, such as industrial espionage, and insider crime, such as embezzlement. A data tampering scenario might involve a disgruntled employee intentionally modifying prices to below the breakeven point in order to attempt to take down the company, or other sabotage. ERP systems typically provide functionality for implementing internal controls to prevent actions of this kind. ERP vendors are also moving toward better integration with other kinds of information security tools.[12]
Disadvantages
Problems with ERP systems are mainly due to inadequate investment in ongoing training for involved personnel, including those implementing and testing changes, as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and how it is used.
Disadvantages
Customization of the ERP software is limited. Re-engineering of business processes to fit the "industry standard" prescribed by the ERP system
may lead to a loss of competitive advantage. ERP systems can be very expensive leading to a new category of "ERP light" solutions ERPs are often seen as too rigid and too difficult to adapt to the specific workflow and business
process of some companies—this is cited as one of the main causes of their failure.
Many of the integrated links need high accuracy in other applications to work effectively. A company can achieve minimum standards, and then over time "dirty data" will reduce the reliability of some applications.
Once a system is established, switching costs are very high for any one of the partners (reducing flexibility and strategic control at the corporate level).
The blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale.
Resistance in sharing sensitive internal information between departments can reduce the effectiveness of the software.
Some large organizations may have multiple departments with separate, independent resources, missions, chains-of-command, etc, and consolidation into a single enterprise may yield limited benefits.
The system may be too complex measured against the actual needs of the customer.
CHAPTER 3
REASERCH
3.1 REASERCH METHODOLOGY
A SURVEY was conducted among employees of NTPC RIHAND, through a structured questionnaire “SURVEY ON ATTITUDE OF EMPLOYEES ON INTRODUCTION OF ERP SYSTEM” .The questionnaire was administered among 150 executives of NTPC RIHAND.
3.2 SAMPLE
The sample is consisting of 150 executives of NTPC RIHAND selected randomly selected out of 432 executives of the organization.
The sample was further classified into groups on basis of technical knowledge and designation.
A structured questionnaire “SURVEY ON ATTITUDE OF EMPLOYEE ON INTRODUCTION OF ERP SYSTEM AT NTPC RIHAND”. The questionnaire content 16 questions to measure their responses.
The rating was five point scale: Totally true =1 Quite true=2 Neutral =3 Quite false=4 Totally false=5.
Questionnaire also collected some demographic information, like: Age Years of service Designation Department
On basis of objectives, questionnaire may be divided into three parts;
Awareness in employees about ERP SYSTEM (communication): 1,2,3,5 and 10. Effectiveness of training provided: 4,7,9,11,14 and 16. Level of resistance: 6,8,12,13 and 15.
3.4 PROCEDURE
A specifically designed questionnaire “SURVEY ON ATTITUDE OF EMPLOYEES ON IMPLIMENTATION OF ERP AT NTPC RIHAND” was distributed among the executives of NTPC RIHAND, to measure their attitude attributes the new system.
3.5 DATA ANALYSIS
1. Master table was prepared in MS-EXCEL.
2. Simple graphical presentations were made to draw conclusion.
3. The five point scale of questionnaire was restructured into three point scale, with following
considerations:
Positive = totally true + quite true
Neutral = neither true nor false
Negative = quite true + totally true
CHAPTER 4
RESULT
4.1 OBJECTIVE 1: COMMUNICATION
CHART 4.1.1
Result: The level of communication shows positive trend, 54% of executives were aware of the ERP System.
CHART 4.1.2
Result: The non-technical executives are more informed than the technical executives.
POS-ITIVE53%
NEUTRAL18%
NEGATIVE28%
ORGANIZATION WIDE RESPOSE
POSITIVE
NEUTRAL
NEGATIVE
POSITIVE NEUTRAL NEGATIVE0
10
20
30
40
50
60
COMPARISION ON KNOWLEDGE BASIS
TECHNICAL
NON-TECHNICAL
CHART 4.1.3
Result: Higher level executives were more informed.
4.2 OBJECTIVE 2: EFFECTIVENESS OF TRAINING
Chart 4.2.1
Result: The training provided was effective for most of the employees (52%).
POSITIVE NEUTRAL NEGATIVE0
10
20
30
40
50
60
70
COMPARISION ON DESIGNATION
LOWER EXECUTIVES
HIGHER EXECUTIVES
POS-ITIVE52%
NEUTRAL23%
NEGATIVE25%
ORGANIZATION WIDE RESPONSE
POSITIVE
NEUTRAL
NEGATIVE
CHART 4.2.2
Result: The training was more effective for technical executive, who were mostly engineers (53.33%).
Chart 4.2.3
Result: The fresher’s were benefited most by the training irrespective of their department they were working.
POSITIVE NEUTRAL NEGATIVE0
10
20
30
40
50
60COMAPRISION ON KNOWLEDGE BASIS
TECHNICAL
NON-TECHNICAL
POSITIVE NEUTRAL NEGATIVE0
10
20
30
40
50
60
COMPARISION ON DESIGNATION
LOWER EXECUTIVES
HIGHER EXECUTIVE
4.3 OBJECTIVE 3: MEASURE THE LEVEL OF RESISTANCE
CHART 4.3.1
Result: Resistance was found to be least within the employees; this may have come from their faith in their organization.
Chart 4.3.2
Result: Technical department appears to more comfortable with this new system.
POSITIVE35%
NEUTRAL17%
NEG-ATIVE48%
ORGANISATION WIDE RESPONSE
POSITIVE
NEUTRAL
NEGATIVE
POSITIVE NEUTRAL NEGATIVE0
5
10
15
20
25
30
35
40
45
50
COMPARISION ON KNOWLEDGE BASIS
TECHNICAL
NON-TECHNICAL
Chart 4.3.3
Result: Fresher’s/ lower executives were more accepting the new system.
POSITIVE NEUTRAL NEGATIVE0
5
10
15
20
25
30
35
40
45
50
COMPARISION ON DESIGNATION BASIS
LOWER EXECUTIVE
HIGHER EXECUTIVE
CHAPTER 5
CONCLUSIONS
1. The level of communication is satisfactory in the organization. There is significant difference in awareness among technical and non-technical executives about ERP System.
2. The training provided is also satisfactory. The organization should build its own training resource instead of using external training agent. There is difference between effectiveness of training for technical and non technical as well as between higher and lower executives.
3. There is no visible sign of resistance among the employees. There is nominal difference between the levels of resistance between any of group divided under the study.
4. The change appears to be successful in functioning, and helping the organization in achieving its goal in long and short term, as three main factors (communication, training and resistance) was found to be in facilitating state.
5. The employees are supportive, so the collaborative style of management will be more effective.
Bibliography
Books:
1. Thornhill, A., Lewis, P. Millmore, M., & Saunders, M. (2000), Managing Change: A human resource strategy approach.
2. Colenso, M. Successful organizational change: Evolution and revolution in the organization.
3. Nilakant, & Ramanarayan, S. (1998). Change management. Response Books.
