NPS - What is the Meaning of NPS and Its Importance | HRMantra HR Software

NPS - What is the Meaning of NPS and Its Importance | HRMantra HR Software

5 to 7 minutes 

The National Pension Scheme is a government-sponsored pension scheme for the purpose of saving tax-free retirement money.

NPS is open for everyone; any interested salaried individual can invest the recurring amount every month in their NPS account throughout the time they are earning a stable income. On retirement, depositors can withdraw part of the deposited funds in a lump sum and utilize the remaining for buying annuity to secure regular income after retirement.

In this blog, let''s learn more about the National Pension Scheme or National Pension Yojna, covering:

• What is a National Pension Scheme (NPS)?
• How to Open an NPS Account?
• How to Invest in an NPS Account?
• How to Check an NPS Balance?
• National Pension Scheme Calculator
• Summing Up

What is a National Pension Scheme?

NPS is a voluntary savings scheme that, under the regulation of the Ministry of Finance, enables an individual to save money for securing his/her monetary requisites after retirement. The scheme is systematic and is also very flexible in its plan.

Many of the fresh starters or those new to the corporate industry are misinformed or confused when it comes to managing their funds or payroll disbursed each month.

The onus of being a responsible HR professional can also organize sessions with newly joined in order to share such schemes and make them financially aware of NPS, EPF, and more.

How to Open an NPS Account?

You can open your NPS account both online and offline.

Offline Process

• Find the PoP - Point of Presence (can be a bank) registered with PFRDA.
• Visit the PoP center and request the application form to open the NPS account.
• Fill the form and submit it in the center along with attached KYC details. Your account will be opened, and a PRAN or Permanent Retirement Account Number will be sent along with a password in the welcome kit. You can start with your initial investment not less than Rs 500 or Rs 250 monthly or Rs 1000 annually.

Online Process

In this digital era, we want everything to be easily accessible and that too on our fingertips.

Voila!

You can open your NPS account with your mobile phone in just a few clicks. But before you begin the process, ensure that your PAN, Aadhar, and mobile number have been linked.

1. Go to the official website of National Securities Depository Limited https://enps.nsdl.com/eNPS/NationalPensionSystem.html
2. You will see the National Pension Scheme in the right-middle with a button below it.
3. Under the button, there is an option to click for ""Registration.""
4. Mention your relevant details like Applicant''s type, status, account type, status, etc.
5. The OTP will be sent to the registered mobile number. Enter your details by filling in your name, address, date of birth, contact details, payment details, scheme, and nomination. Upload KYC documents along with the photo and signature.
6. In just one second, you will receive a message with your PRAN no on your contact no. Finish up by e-signing your form to complete your application.

NPS Calculator

An NPS account or scheme requires prior computation of return on investment for investment. Given below is the formula used for ROI calculation:

A = P (1 r/n) ^ nt

The above equation''s A stands for amount, and the rest are variables defined below:

• P = Principal Sum
• R/r = Rate of interest per annum
• N/n = Number of times interest compounds
• T/t = Total tenure

Example -

Assuming that you are 34 years old and contributing Rs 3000 a month. You shall be required to keep adding to the pension account for another 26 years.

Let the ROI be expected at 10 % p.a.

Total Principal = Rs 9.36 Lakh

Sum Assured on Maturity = Rs 44.35 Lakh

How to Invest in an NPS Account?

Investing in an NPS account is very simple. You can contribute to an NPS account using three options:

• Website: If you are willing to invest in your NPS account through the website, then simply sign in and click on ''Contribute Online''. The link will take you to the eNPS portal, where you may fill in the details of your contribution and let the portal do the rest—calculate the total payable amount after applying the appropriate charges.
• Make the payment via the payment gateway options that are most convenient for you: Net banking, Credit/Debit card, or UPI. That''s it!
• Mobile App: Download the NPS by Protean App now, and invest without any hesitation, from anywhere, at any time. You only need to remember the PRAN details along with the payment options. The user interface has been designed in a user-friendly manner, so you will not face any trouble investing in it.
• Nodal Office: Find the nearest nodal office and ask the authorized employee for an investment form for an NPS account. Fill in the necessary details and submit them with a cheque/DD.

Do remember to take an acknowledgement receipt to maintain investment proof.

How to Check an NPS Balance?

Three of the easiest ways to check the balance of your NPS account are:

• National Securities Depositories Limited (NSDL) portal: Login and find the ''holding statement'' option to know your NPS total account balance. You can also see the detailed statement by clicking on ''transaction statement''.
• NSDL e-Gov APP: Download the App from the Play Store or Apple Store, depending on the type of your phone, and log in to your NPS account using your PRAN and password. You can view the details of your NPS holdings, Tier I and Tier II holdings, and transactions.
• Subscribe to SMS service: Give a missed call to 9212993399 from your registered mobile number. Within a second of missing your call, you''ll receive an SMS with account balance details.

Conclusion

Start planning your retirement from now and spread the word amongst your employees too. The NPS scheme can be a great way to save and invest your fund to make your retirement stress-free.

Stay aware!

Keep learning more about finance and your investments!

Organizational Change: Meaning and Importance

What is Organisational Change? Why Is It Important? | What are the Prerequisites? | Methods of Organisational Change | Urgenthomework Blog

Angelina Meluyan

This organizational change definition is a wide term that incorporates all changes related to an organization in one way or another. These changes can also pertain to management, location, company purposes, and many other factors.

For effective planning of your organizational change management strategy, you initially need to identify the type of change.

This allows the execution of the proper change management strategy to deliver results. Secondly, knowing what type of change will help to choose the change management tools.

Table of Content

• Organisational Change Definition
• Why is Effective Organisational Change Management Important?
• Different Types of Organisational Change
• Strategies for Facilitating Successful Organisational Change
• Final Thoughts
• FAQs

Why is Effective Organisational Change Management Important?

Organisational change is a part of doing business.

Staff come and go, companies expand, teams and divisions are formed, businesses adopt technology to try and stay competitive—all amid the need to manage these changes in an effective and proper manner.

It is very critical to ensure that your staff understands the nature of the change and how they will be affected. Effective Organisational change management empowers organizations to navigate such transitions smoothly.

For example, training facilitates the acceptance of technology among workers. That way, they thoroughly embrace the innovation, and the implementation of change is not impeded by support tickets and confused customers.

By identifying the type of changes you will implement, you can create a plan to keep employees up to date.

You can ask for feedback as you put in the changes and then rewrite your change management plan to enable your team to start receiving the support needed to learn to cope with the changes successfully.

Types of Organisational Change

Different types of change require different approaches. From performance to communication, all these areas need to be tailored in line with the nature of change to be implemented.

1. Strategic Change

Organizations undertake business changes, accomplish goals, maintain an edge in the market, or respond to potential opportunities or threats.

Strategic change implies a change in the company''s strategies, structure, or processes. The onus of change normally rests with the management and the CEO.

2. People Driven Organizational Change

While all changes involve people, people-driven types of change include implementing parental leave policies or integrating new team members into the workforce.

When implementing a people change, management must be aware that workers, due to human nature, will always resist this aspect of change.

In connection with people-driven change, there has to be transparency and communication coupled with compassionate strong leadership.

3. Structural Change

Structural changes: Changes made in an organization''s framework, which can result from external factors, such as adopted change by changing the way in which the company is run.

Key major transformations: Changes in the management system; various organizational responsibilities handed to teams, departments, and leaders, their authority, and order; organization of work and its regulation.

Transformation drivers: Mergers and acquisitions, redundancy of operations, market dynamics, modifications, or changes in processes or policies.

These changes interlace and are intertwined, driven by people because they affect the majority of workers directly in the end.

4. Technological Change

Market pressures including those of growing competition brought about by technological change.

It is primarily a technological change when software or a system is implemented that would improve business functionality.

Inadequately communicated technological project goals, badly communicated, that scare and anger the employees and eventually cause resistance.

5. Unplanned Change

Action through unexpected events. Unplanned change cannot be accomplished. Can be managed through change management.

6. Corrective Change

Conservative in nature. When an error is detected or a place where a discrepancy exists and a remedy is to be taken. As it is a change conceived to overcome a problem, it requires action.

While conservative change may not be ideal, it is simply unavoidable. What is, however attractive about change is the fact that its effectiveness can be judged by merely asking the following question: How easy or rapid the change was?

Organisational Change Fore-staging Strategies

Once you have identified what form of organisational change you want to undertake here are a suggestion to ensure that the transformation is effective:

• Vision and Goals: Understand the reasons behind the change, how it impacts business outcomes, and when it is to be considered a success. Planned and communicated purpose, vision, and goals can be really helpful for a successful change. It helps both employees and leaders understand the underlying reasons for change and what it is trying to achieve.
• Prioritization is necessary as not all the problems can be worked on. Firstly, the issues need to be resolved. For instance, three enterprise applications cannot be implemented one by one in a single time. Secondly, the buy-in of all employees in the organization is necessary. It means involving people like their leadership, management, and supervisors. This makes them feel important, part of, and respected.

This step having been satisfied also lets any potential conflicts or concerns be expressed so that they can also be resolved in the implementing process.

Final Thoughts

Ensure that a change execution plan is appropriately created during implementation. This plan should stipulate the milestones. Take into consideration the several aspects such as the scope of the project, the integration, resources, communication, timeframes, cost, procurement, and risks. An execution plan that is designed shall be able to overcome barriers and resistance to change at the same time speeding the pace of implementation.

Frequently Asked Questions

What is the key perspective for organisational change?

Answer: For change management to be realised, there is a need to have leaders who do not only embrace change themselves but also guide others in going through it.

What are the five key elements of organisational change?

Answer: In trying to move through change successfully, organizations ought to focus on five aspects; Culture, Communication, Courage, Belief and Empathy.

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