A Presentation On New

Performance Management System (PMS) In

Airports Authority of IndiaOn 30th May 2011

At Chandigarh

Core Functions of AAICore Functions of AAI

•Development & Management of Airport Infrastructure •Air Traffic Management and CNS Infrastructure

AAI manages 115 airports including civil enclaves as:- 19 International airports - 96 Domestic airports

In addition CNS ATM Services are provided atDelhi, Mumbai, Bangalore, Hyderabad and Cochin;Lengpui, Diu, Puttaparthy, Vidyanagar and Jamshedpur,

Tura, Latur and Nanded.

AAI provides air navigation infrastructure and air traffic services in the Designated Airspace.

Span of OperationsSpan of Operations

The Operations of AAI is categorized into 5 Regions:

Regional SetupRegional Setup

Northern RegionNorthern Region

Southern RegionSouthern Region

Western RegionWestern Region

Eastern RegionEastern Region

Northern Eastern RegionNorthern Eastern Region

AAI has its corporate head-quarters at R G Bhavan, Safdarjung Airport New Delhi.The Operations of AAI is Managed Through 5 Regions:

Regional SetupRegional Setup

Region/Airport No. of Airports No. Of Employees

Executives Non-Executives

Northern Region 30 1504 2762

Southern Region 23 1477 1610

Western Region 24 1126 2929

Eastern Region 22 746 997

North Eastern Region 16 409 658

Kolkata Airport 182 1044

Chennai Airport 219 945

Corporate Headquarters 755 949

Total 115 6418 11894

Compliance of DPE instructions (OM dated 26.11.08 , 28.05.2009 & 05.04.2010)

Developing robust & transparent PMS with Bell-curve approach – prerequisite for Performance Related Pay (PRP) [26.11.2008]

Performance Appraisals to be consultative & transparent. The appraisal to be shared with the appraisee [28.05.2009]

The Objective of New PMS are: Re align the organizational / Departmental objectives with individual objectives

– Thrust on ‘Performance Driven Culture’ Evaluate potential of the appraisee to assume higher responsibilities, ex-cadre

posts To identify the high performance for rewards

New PMSNew PMS

New PMSNew PMS

• DPE Prescribed Performance Appraisal Forms to Board Level & Below Board Level executives in MOU signing PSE’s in 2005

• DPE issued new set of guidelines on PAR for E-8 & above in April 2010.

• Based on DPE instructions and inputs from PMS of other PSEs, the New PMS to evaluate the performance of executives was introduced for year 2010-11.

• New PMS in AAI has been categorized for two levels: Level E-1 to E-7 Level E-8 & above – as per DPE instructions

Salient Features Of New PMSSalient Features Of New PMS

Parameters and their relative weights for level E-1 to E-7

S.No. Component Executives (E-1 to E-7)

1. Key Performance Area(KPA) 60%

2. Functional/Managerial competencies 15%

3. Core Values 10%

4. Potential 10%

5. Special Achievement 5%

TOTAL 100%

PMS Is a FIVE Step ProcessPMS Is a FIVE Step Process• Cascading down the Organizational and Departmental goals/objectives

• Setting KPA (targets) & assigning weightage to these KPA & deciding Functional / Managerial competencies required to achieve these goals after sufficient discussions between Appraiser & Appraisee

• The KPA has to be SMART (Specific, Measurable, Agreeable, Realistic & Time Bound)

• Review of performance revisit KPAs• Assessing the resources skill requirement

• Discuss & arrive at assessment of performance on the basis of agreed targets, functional/managerial competencies, special achievement, potential & core values actualization by individual

• Training & Development Plan

I. Performance Planning

I. Performance Planning

II. Mid Year ReviewII. Mid Year Review

III. Annual AssessmentIII. Annual

Assessment

Moderation to ensure parity and minimizing the

variations of assessment by Normalization Committee ( At Region level, CHQ level to ensure objectivity & transparency in PMS)

‘Bell curve’ envisages 10-15% executives as outstanding, 10% below par and balance 75-80% are acceptable

Communication of final performance and developmental feed back to appraisee

If there is 5% reduction in overall score after normalization/moderation, the executives may be counselled by Reporting Authority

PMS Is a FIVE Step ProcessPMS Is a FIVE Step Process

IV. NormalizationIV. Normalization

V. Feedback & Counseling

V. Feedback & Counseling

Performance Related PayPerformance Related Pay • There has not been a provision for Performance Related Pay in AAI

till date. AAI is now in the process of implementing PRP.

Financial Year

PBT 3% of PBT

PRP distributed from 3% PBT

Incremental PBT 10% of Incremental PBT

2% of PBT

PRP distributed from Incremental PBT

5% of PBT

Total PRP Paid

Distributable Profit

Years Involved

Amount

07-08 1739 52 No Incremental PBT

54 973

08-09 1115 34 (08-09)-(07-08)

(-)624 34 619

09-10 1228 37 (09-10)-(08-09)

(+)112 11 2 39 640

Figures in Crores

Thank You!!Thank You!!

Presented by:

Vilas Bhujang, Executive Director (HR), Airports Authority of IndiaE-Mail ID: edpers@aai.aero