Performance Management System & PRP in BSNL DPE WORKSHOP CHANDIGARH 30-05-2011 Presentation by
description
Transcript of Performance Management System & PRP in BSNL DPE WORKSHOP CHANDIGARH 30-05-2011 Presentation by
1
Performance Management System
&PRP in BSNL
DPE WORKSHOP CHANDIGARH
30-05-2011
Presentation byD P De, Sr GM( Establishment) & Madhu Arora, GM(Restructuring)
BSNL Corporate office
2
2
Index
• Challenges before BSNL
• Recent Performance of BSNL
• PBT and PRP Payments
• Group Performance Management System(GPMS) in BSNL
• Way forward for Individual PMS (IPMS)
3
Total no. of Employees
Executives 56,290Non- Executives 2,26,400Total 2,82,690
3
Total no. of Employees
4
Challenges before BSNL
4
5
Key Challenges Faced by BSNL
•Fixed to Mobile Substitution:• Declining Landline Revenues
– From Rs 20,421 Cr, in 05-06 to Rs 8268 Cr in 09-10
•Stiff Competition in Mobile Sector:
•High Manpower Cost
•Skill set of employees
•Service in non-remunerative Areas
Key Challenges Faced by BSNL
6
6
Performance of BSNL-Last few years…
7
%age Telephone Market Share of BSNL
7
Year Wired lines Wire Less Grand Total
WLL GSM Total
31.03.2001 86.46 0 0 0 77.73
31.03.2002 87.21 43.14 0.27 3.11 74.33
31.03.2003 86.92 45.34 17.78 20.05 69.98
31.03.2004 86.60 10.13 20.09 17.44 54.41
31.03.2005 86.72 10.17 23.01 19.41 47.69
31.03.2006 85.22 8.66 24.8 19.96 39.27
31.03.2007 82.75 7.97 22.59 18.66 31.29
31.03.2008 80.05 6.69 18.82 15.64 24.10
31.03.2009 77.42 5.28 16.2 13.32 18.98
31.03.2010 75.34 3.78 15.01 11.88 15.66
28.02.2011 72.78 2.44 14.87 11.41 14.00
%age Telephone Market Share of BSNL
8
Financial Performance
Parameters
2006-07
2007-08
2008-09
2009-10
Income 39,715 38,053 35,812 32,045
Expenditure
31,466 33,636 34,354 34,078
Net Profit 7,806 3,009 575 (-)1,823
In Rs Crores
8
Financial Performance
9
PRP and Productivity Linked Incentive Payments in BSNL
9
10
Prior to DPE guidelines of 26-11-2008 on PRP,
Productivity linked Incentive was being paid
in BSNL
10
11
LAST 3 YEARS’ PERFORMANCE
FINANCI-AL YEAR
PBT 3% of PBT
2% of PBT
5% of PBT
DISTRIB-UTABLE PROFIT
TOTAL PLI PAID
1 2 3 4 5 6 7
2007-08 4451.55 133.55 89.03 222.58 2708.45 362.29
2008-09 1271.63 38.15 25.43 63.58 574.85 113.89
2009-10 -2197.48 -65.92 -43.95 -109.87 -1822.65 NIL
IN RUPEES CRORES
12
PLI GUIDELINES ADOPTED
S. NO. MOU GRADING / PROFIT MULTIPLICATION FACTOR
1. EXCELLENT 1.4
2. VERY GOOD 1.1
3. GOOD 0.85
4. FAIR 0.75
5. POOR/ NO PROFIT BY COMPANY
NO INCENTIVE
PLI AMOUNT = BASIC PAY X MULTIPLICATION FACTOR CORRESPONDING TO MOU GRADING SUBJECT TO MINIMUM AND MAXIMUM LIMITS
CATEGORY MINIMUM MAXIMUM
NON-EXECUTIVE RS. 7,000 RS. 10,000
EXECUTIVE RS. 10,000 RS. 12,500
SUBJECT TO 50% CEILING LIMIT OF PERKS AND ALLOWANCES TO BE PAID WITH THE APPROVAL OF BOARD, KEEPING IN VIEW THESE GUIDELINES
CASUAL LABOURERS @ RS. 3000 (FIXED)
PLI GUIDELINES ADOPTED
13
PAYMENTS OF PLI/PRP
2007-2008• MOU GRADING WAS ‘FAIR’• EXECUTIVES AND NON-EXECUTIVES :
0.75 TIMES OF BASIC PAY SUBJECT TO RESPECTIVE MINIMUM AND MAXIMUM LIMITS
• CASUAL LABOURS AND TSMs : Rs 3000
14
PAYMENTS OF PLI/PRP2008-2009
• REMUNERATION COMMITTEE INFORMED OF DPE DECISION REGARDING PERFORMANCE MANAGEMENT SYSTEM (PMS) & PERFORMANCE RELATED PAY (PRP)
• COMMITTEE NOTED THAT CONSULTANT IS IN PROCESS OF DEVELOPING PMS; DISTRIBUTABLE PROFIT Rs 575 CRORES
• COMMITTEE RECOMMENDED FOR 50% OF MINIMUM PLI PAYABLE AS PER GUIDELINES
• BOARD AGREED TO ABOVE• NON-EXECUTIVES AND EXECUTIVES PAID: Rs 3500 &
Rs 5000 RESPECTIVELY• CASUAL LABOURS AND TSMs : Rs 1500
15
PAYMENT OF PLI/ PRP2009-2010
• PBT WAS Rs. (-) 2197 CRORES• NO ADMISSIBILITY OF PLI OR PRP AS
COMPANY HAD INCURRED LOSSES• MATTER WAS PLACED BEFORE
REMUNERATION COMMITTEE• REMUNERATION COMMITTEE
RECOMMENDED NO PLI/ PRP PAYABLE IN VIEW OF OPERATIONAL LOSS DURING YEAR 2009-2010 AND LIKELY LOSSES DURING 2010-2011.
• NO PLI/ PRP PAID
16
PMS in BSNL
16
17
17
Importance of PMS
• PMS very crucial- especially in context of challenges
before BSNL and company’s current situation
• What is measured well is managed well
• Brings objectivity, fairness, transparency in
assessment- Builds Credibility of process
• Harmonize individual, group and Company goals
• Motivate employees for superior performance from
each, to the best of his/her ability
Importance of PMS
18
Performance Management System in BSNLPerformance Management System in BSNL
19
Group Performance Management System (GPMS) Covers all BSNL employees in 19 group types
Each Territorial Circle, non-Territorial Circle, SSA is a Group
Key Performance Indicator(KPI) based score cards designed for objective and transparent assessment of performance
GPMS in operation since last year.
Web based IT application developed which facilitates on-line data entry and evaluation.
GPMS score to form the basis of PRP, other financial incentives
Group Performance Management System (GPMS)
20
As part of GPMS design, all BSNL employees have been structured along 19 groups
Category of groupsCategory of groups Group TypeGroup Type
1. Consumer Fixed Access 2. Consumer Mobility 3. Enterprise 4. New businesses5. Corporate Affairs6. HR (Incl. Legal and Vigilance)7. FinanceSub-totalTerritorial CircleSub-total1. Project Circle2. Maintenance Region3. Inspections (earlier T&D)4. QA5. Telecom Stores6. Telecom Factory7. ITPC8. NCES9. Data N/W10. Training CircleSub-totalSSAs
Total
Number of group typesNumber of
group types
11111117111111111111
101
19
Number of groups
Number of groups
11111117
26265411131113
21330
384
Corporate office
Territorial circles
Non Territorial Circles
SSA
As part of GPMS design, all BSNL employees have been structured along 19 groups
21
Organisation redesign
Metrics for appraisal and scoring are drawn from various dimensions to give a fair appraisal
6
5
4
3
2
1
WeightingTargetMeasureObjective
Weighting and mix
The appropriate mix of KPIs will depend on the role and on the
importance of each perspective
There should be no more than 5–7 objectives in total; more could result in lack of focus, potentially undesirable trade-offs, and reduced performance
FinancialWhat impact can this person have, in terms of
financial measures?
Customer / MarketHow can this person maximize customer
satisfaction?
Operations / ProcessesWhat are the operations / processes relevant to this person that most drive performance?
Employee developmentWhat can this person do to most actively
facilitate the development of others?
1
2
3
4
Key performance indicatorsKey performance indicators
22
22
Individual PMS (IPMS)-Way Forward
23
Going forward- Individual performance evaluation
• Aimed at measuring individual’s performance in most objective manner.
• Individual Performance Management System(IPMS) being introduced
• Scorecards contain key performance indicators(KPIs) specific individual’s job (IPMS scorecards).
Going forward- Individual performance evaluation
24
Plan for IPMS Implementation through out the country
• KPI based IPMS scorecards being prepared for each role at Executive level
• IPMS planned for progressive implementation throughout the organization.
• Linkages of Performance Appraisal with IPMS achievements
Plan for IPMS Implementation through out the country
25
25
Bell Curve Approach
• Bell curve methodology not yet implemented
• Experience sharing by other PSUs will help BSNL
26
GPMS score and PAR rating
• IPMS is being progressively rolled out and would be integrated with ERP implementation
• BSNL is taking various strategic initiatives to improve its competitive position and financial performance
• PMS is being strengthened and several other measures are being taken to foster performance oriented work culture in the organization
• The company hopes to turn around by next year and would thus become eligible for PRP payments
Till such time that the Individual PMS is implemented, GPMS
would be utilized as Performance Appraisal rating (PAR) of each executive in a group
GPMS score and PAR rating
27
27