mmtc
Post on 26-Oct-2015
41 Views
Preview:
DESCRIPTION
TRANSCRIPT
PERFORMANCE PERFORMANCE MANAGEMENT SYSTEM MANAGEMENT SYSTEM & PRP IN MMTC LIMITED& PRP IN MMTC LIMITED
COMPANY’S PROFILECOMPANY’S PROFILE
MMTC Limited is a Miniratna Company under the MMTC Limited is a Miniratna Company under the administrative control of Department of Commerce, administrative control of Department of Commerce, Ministry of Commerce & Industry, Government of India.Ministry of Commerce & Industry, Government of India.
Set up in 1963, MMTC Limited is the largest Set up in 1963, MMTC Limited is the largest International Trading Company of Govt. of India and the International Trading Company of Govt. of India and the first Public Sector Enterprise to be accorded the status of first Public Sector Enterprise to be accorded the status of ‘FIVE STAR EXPORT HOUSE’‘FIVE STAR EXPORT HOUSE’..
Its vast International Trade Network spans almost in all Its vast International Trade Network spans almost in all countries in Asia, Europe, Africa, Oceania and America countries in Asia, Europe, Africa, Oceania and America giving MMTC a global market coverage. giving MMTC a global market coverage.
33
MMTC’S TRADE PROFILEMMTC’S TRADE PROFILE
The major items of trade include Minerals, Non-Ferrous Metals, The major items of trade include Minerals, Non-Ferrous Metals, Precious Metals, Coal & Hydro Carbon, Agro Products, Fertilizers Precious Metals, Coal & Hydro Carbon, Agro Products, Fertilizers and Fertilizer raw material. and Fertilizer raw material.
MMTC is major player in the minerals trade and is the single largest MMTC is major player in the minerals trade and is the single largest exporter of minerals from India.exporter of minerals from India.
MMTC is the largest importer of gold and silver in the Indian sub MMTC is the largest importer of gold and silver in the Indian sub continent.continent.
MMTC is also engaged in manufacture/and retail sale of silverwares MMTC is also engaged in manufacture/and retail sale of silverwares and artifacts made of silver in the brand name ‘and artifacts made of silver in the brand name ‘SANCHISANCHI’.’.
44
PERFORMANCE PERFORMANCE MANAGEMENT SYSTEMMANAGEMENT SYSTEM
To link individual performance to To link individual performance to company objectivescompany objectivesTo build a culture of performanceTo build a culture of performanceTo encourage two-way communicationTo encourage two-way communicationTo make evaluation objective and reduce To make evaluation objective and reduce subjectivitysubjectivityTo identify high performers and provide To identify high performers and provide career progression opportunities to career progression opportunities to them.them.
55
Development of Strategic GoalsAt the Top Level
Cascading Down of Goals at various DivisionLevel and other levels below
Cascading Down of Goals at the Regional Level
Draft of plans and Signing ofMemorandum of Understanding
Creating Strategy Linked Performance
Management
66
KPA based Performance KPA based Performance Appraisal process Appraisal process
• Joint review of performance
• Document changes in KPAs if any
• Assessment of KPAs, Competencies, Values and Potential by appraiser
• Training and Development Plans
• Review by reviewing officer
PMS Process
Step 1
• Identify KPAs, constituents, weightages, measures and targets
Step 4
Step 3
Step 2
77
TIME SCHEDULE TIME SCHEDULE (Up to E-7 (Up to E-7 Level)Level)
S. No. Month Stages in Appraisal
1 March Distribution of Appraisal Forms
2 April Finalization of KPAs and targets/ weightage
3 September/ October Mid- year review of KPAs
4 April (Next Year) Submission of Appraisal report by appraisee to appraiser & forwarding to report by appraiser to reviewing officer after giving the rating.
5 May(Next Year) Final submission of Appraisal reports after signing by reviewing and counter signing authority.
6 June/ July Moderation of reports by the moderation committee
88
TIME SCHEDULE TIME SCHEDULE (E-8 Level & (E-8 Level & Above)Above)
Sl. No. Activity Cut-off Date
1 Finalization of Targets, weightage 30th June (Reporting Yr.)
2 Circulation of PAR 30th September
3 Submission of PAR after self- appraisal by the Officer to Reporting Authority
31st October
4 Submission of PAR after appraisal by Reporting Authority to Reviewing Authority
15th November
5 Submission of PAR after review by Reviewing Authority to Accepting Authority
30th November
6 Furnishing of PAR after appraisal by Accepting Authority to Nodal Officer
15th December
7 Disclosure of PAR 31st December
8 Submission of Representation, if any 15th January
99
Components of Performance Components of Performance Appraisal (Up to E-7 Level) Appraisal (Up to E-7 Level)
Sl. No. Component Weightage
1 Performance 50%
2 Competencies 20%
3 Values 15%
4 Potential 15%
1010
Components of Performance Components of Performance Appraisal (E-8 & above)Appraisal (E-8 & above)
Designation Weightage
MOU Targets
Individual targets flowing from MOU targets
Personal Attributes & functional Competencies
Total
Chief Executives
75 - 25 100
Functional Directors
40 35 25 100
E8 & E9 25 50 25 100
1111
Features of KPA based Features of KPA based PMS PMS
Covers all Executives below Board level.Drawn from the business plans, objectives
and functions of Division .Number of KPA indices not more than
eight, out of which development of subordinate, a mandatory field.
The unit of measurement based on SMART principle (Specific, Measurable, Attainable, Relevant & time- bound).
1212
GUIDELINESGUIDELINESKPAs are determined along with target of performance and their weightage in beginning of the year.As far as possible targets are based on SMART principle (Specific, Measurable, Attainable, Relevant & time-bound).Decided by one to one discussions held between the appraisee & appraiser.Competencies, Potential & value is assessed by the appraiser on the basis of his/ her observations.The appraiser recommends for training for the development of appraisee.
1313
Benchmark Norms for Benchmark Norms for Rating Scale(1 to 5)Rating Scale(1 to 5)
Rating Qualitative Quantitative
5 Significantly above expectations
On achieving 100%
4 Moderately above expectations
On achieving 80% or more
3 Meets the expectations
On achieving 60% or more
2 Moderately below expectations
On achieving 40% or more
1 Significantly below expectations
On achieving less than 40%
1515
1.MMTC is MOU signing Company and has earned profit in 2007-08, 2008-09 & 2009-10.
2.MMTC has a robust and transparent Performance Management System, which includes KPA based appraisal system.
3.MMTC has Independent Directors on its Board.
Remuneration Committee :
MMTC has formed a Remuneration Committee headed by an Independent Director.
CONDITIONS FOR IMPLEMENTING PRP
1616
PRPPRP
Variable Pay / Performance Related Pay Variable Pay / Performance Related Pay (PRP) is made integral part of (PRP) is made integral part of compensation package w.e.f. 2007-08. compensation package w.e.f. 2007-08. PRP depends on several factors-PRP depends on several factors-
PRP is paid on the basis of MOU rating of the PRP is paid on the basis of MOU rating of the Company ranging from 100% for Excellent to no Company ranging from 100% for Excellent to no PRP for ‘Poor rating’ of the Company.PRP for ‘Poor rating’ of the Company.
MOU rating of MMTC was ‘Excellent’ in last 3 years.MOU rating of MMTC was ‘Excellent’ in last 3 years.
CONTD.
1717
PRP is directly linked to profit of MMTC-PRP is directly linked to profit of MMTC- 60% of PRP with a ceiling of 3% of PBT comes from profit of the
company and 40% of PRP comes from 10% of incremental profit. Total PRP limited to 5% of PBT exclusively for executives.
As 2007-08 was base year and there was no incremental profit in year 2008-09 only 60% of the PRP was distributed to Executives during these 2 years.
During 2009-10 Company achieved highest ever net profit. PRP with in maximum 5% PBT ceiling has been disbursed to Executives
PRP depends on the grade of the Executives-PRP depends on the grade of the Executives- Percentage ceiling increases from 40% at junior level to 200% Percentage ceiling increases from 40% at junior level to 200%
for CMD.for CMD.
PRPPRP
CONTD.
1818
• PRP also depends on performance of executive. Executives with ratings- Outstanding, Very Good, Good, Above Average and Average performance ratings get PRP up to 100%, 80’%, 60%, 50% and 40% . No PRP for ‘Poor Rating’.
• From financial year 2011-12 Above Average performance rating (50% PRP) has been removed to make PRP scheme at par with DPE 5 tier rating system.
PRPPRP
1919
Constraints faced Constraints faced
Implementation of new Appraisal System-Implementation of new Appraisal System- Apprehension among Executives for new System- Apprehension among Executives for new System-
Workshop organized to explain importance, benefits Workshop organized to explain importance, benefits of new KPA based Appraisal System.of new KPA based Appraisal System.
Implementation of Bell CurveImplementation of Bell Curve
Regulation of PRP in case of less than 3 months Regulation of PRP in case of less than 3 months appraisal period. appraisal period.
2121
PRP FACTORS
1) MOU RATING
EXCELLENT 100%VERY GOOD 80%GOOD 60%FAIR 40%POOR NIL
2) GRADE INCENTIVE
E0 TO E3 40%
E4 TO E5 50%
E6 TO E7 60%
E8 TO E9 70%
DIRECTORS 150%
CMD 200%
top related