coal india pms manual€¦ · coal india pms manual it is a process to meet the following...

Coal India PMS Manual


Performance Management Manual

1 Section


What’s Inside ?

Executive Summary and Version of PMS Manual

Performance Management System- Adoption of Balanced Score Card Framework

Target Setting

Review

PMS Overall Process

Final Rating

PMS Audit Committee

2


Coal India has undertaken the initiative to implement the Balance Scorecard based Performance Management System to enhance fairness, transparency and inculculate a culture of meritocracy in the organization.

The revamp of the existing Performance Management system is also aimed to act as an input to other HR systems like Performance Related Pay (in accordance with the guidelines issued by DPE), Training and Development, Career Planning and Rewards & Recognition.

The rating and score of the new Performance Management system would formulate the basis for promotion and performance related pay.

In order to create and launch the new system, CIL partnered with a global HR Advisory firm Right Management India

The project was conducted in three critical phases: :

Diagnostics Phase - Detailed ―As-Is‖ study of the existing system

Design Phase - Creation of Unique Position List, KPI Inventory, Scorecards, PMS Manual and Form

Implementation Phase - Pilot Implementation, Train the Trainer programs and Troubleshooting

PMS form has been given the nomenclature of PRIDE which stands for Performance Report for Individual Development of Executive.

We would like to specially thank the senior management team of Coal India and the members of the following teams for sharing their concerns, requirements and reservations on current policies, which greatly facilitated the design and implementation of this initiative. Steering Committee Team Design Team KPI Task Force Team Master Champion Team

The scope of the report pertains only to executives.

Executive Summary

Balance Scorecard based Performance Management System is a dynamic system in any organization and would undergo changes as per the learning that takes place from the previous years.

That being the case, this is Version 1 of the Balance Scorecard based Performance Management System Manual.

The right of updating/changing the manual rests with Coal India Limited only. The manual cannot be modified by any other person. The manual is the property of the Coal India Pvt. Ltd. and should not be photocopied or reproduced without permission.

The power to interpret the provision of the manual/ PMS is reserved with the Director (P&IR) -CIL/ Chairman- CIL and their interpretation will be final.

Version of the Manual

3

Performance Management System – Adoption of Balanced Scorecard

Framework


It is a process to meet the following objectives:

Ensure that the executive understands the target of the organization as a whole, and that of the Department and the specific section/unit

Set the executive‘s target and assess how the executive has performed against the defined target

Provide feedback to the executive to ensure that s/he understands his/her performance

Reward executive for their performance

It is a tool for translating and deploying organizational strategy into performance. It provides a balanced view of an organization‘s performance strategy across the four Perspectives – Financial, Customer, Internal Business Process and Learning & Growth.

Balanced Scorecard was popularized by Robert Kaplan and David Norton in 1992.

Performance Management System

Balanced Scorecard

What does Balanced Scorecard do?

Aligns & Cascades organization targets to departments and individuals targets

Drives Performance Culture Sets Performance goals Clarifies ―targets‖ and assesses executives against those

targets

Builds a performance based culture

Recognize talent and their achievements for corporate success

Establish direct linkage of performance and reward Helps in :

— Identification of individual development needs and — Initiation of specific actions required to improve

individual performance

5


Key Terminologies to Know

Training & Development

Reward & Recognition

Career & Succession Planning

Balance Scorecard based Performance Management System helps to create a scientific rational for executive performance and Performance Related Pay. It also helps in identifying the high performers in the organization and thus serves as the basis for reward and recognition schemes. Performance ratings and recommendations from the system become the primary basis for deciding executive‘s performance related pay and promotion.

Career and succession planning: Potential evaluation and capturing career aspirations are an important part of the Balance Scorecard based Performance Management System. This information then becomes an input for career and succession planning.

Individual learning needs are identified through the performance review and captured in the development plan. They are used as an input for preparation of organizational and individual learning and development programs.

Key Result Area (KRA)- ―Selective areas‖ of job, in which a high level of performance is required

Key Performance Indicators (KPI) - Identify ―WHAT‖ would indicate performance

Rating Scale – Clearly defines level of performance which would determine the performance rating varying from 1 to 5

Linkage with other Systems

Performance Management System is linked with other key HR Systems. Some of the details are as follows :

6

Illustration

KRA KPI Rating Scale

Cost Control

Penalties & Fine Index

Rating scale to be adhered is as follows : 5- If number of cases imposed is 0 4- If number of cases imposed is between 1-2 3- If number of cases imposed is between 3-5 2- If number of cases imposed is between 5-7 1- If number of cases imposed is greater than 7


PMS Overall Process


Overall process of Balance Scorecard based Performance Management System is as follows :

Overall Process

1.Target Setting-The first stage of PMS process is Target Setting. In this stage ,clear and measurable standards of performance are set for executives in the entire organisation. 2.Review- The second stage of PMS process is Review

Mid Year Review- Mid year Review is held to assess the progress of performance till Mid year against the set target. This session aims to provide feedback to enable executive to understand what he /she is doing well, and what he/she needs to do differently. No rating is provided in this stage

3.Final Review –Final Review is held during the end of Appraisal cycle to review and discuss the extent of executive‘s achievements has been obtained against agreed targets. Each executive provides a rating to his/her own performance. This is followed by rating provided Reporting and Accepting authority. Assessment would also be done on ―Personal Attributes― and "Special Achievements‖ by Reporting and Accepting authority. Feedback would also be provided on the developmental needs. 4.Feedback and Developmental Planning- During the Final Review process the supervisor will discuss executive‘s strengths and Areas of Development based on his / her observations during the year and seek the executive‘s self-assessment.

Performance Management Cycle

8

Activity Timelines

Target Setting 1st April to 30th April

Mid Year Review 1st Oct to 31st Oct

Final Review 1st June to 30th June

Moderation at

Area/Subsidiary

1st July to 20th July

Final Rating &

Moderation

31st July


Organization Target Setting Process

Individual Target Setting

Target Setting

Key Performance Indicator

Personal Qualities

Evaluation

Framework

Feedback Discussion with Reporting authority

Self Appraisal Mid Year Review

Performance

Review

Self Appraisal

Moderation Committee (only in certain cases)

Feedback Discussion with Accepting Authority

Feedback Discussion with Reporting Authority

Appellate Authority (only in certain cases)

Final Review

Performance Cycle

9

Special Achievements and Innovation


Target Setting


Target Setting – is one of the most crucial stage of Performance Management System. It is in this stage that clear and measurable standards of performance are set for the entire organisation. As a part of the Design phase of the program - KPI and Rating Scale has been clearly defined for each unique position in CIL. Against these defined KPI, the executive needs to set the target post discussion with his/her the Reporting authority for the year

Target Setting

11

Number of KPIs for each KRA

Number of KPI‘s are dependent upon various factors like:

•Span of Control (Determined from the number of positions that are directly reporting to the

to the position under consideration)

•Span of Accountability (Determined from the organizational hierarchy at which the position

under consideration is located in the organization structure)

•Span of Support (Determined from the degree to which interdepartmental alignment &

support is necessary for the position under consideration to execute his or her work

assignment)

•Span of Influence (Determined from the decision making authority that has been delegated

to the position under consideration)

Targets – Targets are quantitative elements. They indicate the ―how much‖ which would

define the meeting expectation performance criteria

Targets have to be set post discussion with the functional controlling officer for the entire year

• It is mandatory that a minimum of 8 KPIs are assigned to an executive out of

which Process Quadrant will have minimum 3 KPIs including the super

ordinate goal. In addition to these 8 mandatory KPIs the Learning and Growth

Quadrant will have the following 2 additional KPIs with weightage as

mentioned against them.

Guidelines

*This will not be applicable to executives who are not reporting/accepting authority.

Sl

No KPI Weightage

1

Timely completion of PMS cycle (from Goal setting to

half yearly review to final assessment ) as per schedule

for self.

2

2*



for all subordinates.

2


Quadrant No. of

Fixed

KPIs

Minimum

(Including

Fixed KPI)

Maximu

m KPIs

Weightage

Process 1 3

Total

Min.

8

KPIs

5 60

Financial 1 1 3 20

Customer -- 1 3 10

L&G -- 1 3 6 or 8

Additional

KPIs

2 or 1 2 or 1 2 or 1 4 or 2

Total 4 or 3 10 or 9 16 or 15 100

The Minimum and Maximum number of KPIs in each Quadrant is shown in the table below:

12


Sample Form for Goal Setting

Illustrations

KPI Name

Achievement

Target

Rating by Self, Reporting Authority and Accepting Authority

Quadrant

13

Weighted Score


Review


Mid Year Review

Mid year (for the period 1st April to 30th September of the current year) review will be

conducted between 1st October-31st October of the current year

Appraiser would review the progress of performance and provide feedback to the

executive to enable him/her to understand what he /she is doing well, and what he/she

needs to do differently to improve performance

Rating would not be provided for the performance in the Mid year

First Level of review would be done by the executive himself/herself

Second Level of review would be done by the Reporting authority.

Final Review (For the period 1st April of the current year to 31st March of the subsequent

year) will be conducted between 1st June – 30th June

Appraiser would review the progress of performance (i.e. Targets against KPI for the Year)

and provide feedback to the executive to enable him/her to understand what he/she is doing

well, and what he/she needs to do differently to improve performance

Appraisal would also be done on “Personal Qualities” and “Special Achievement &

Innovation” for the entire year

The entire appraisal process will go through the following levels of review:-

• Self review would be done by the executive himself/herself

• Review would be done by the Reporting Authority

• Review would be done by the Accepting Authority

• If the office is rated Poor there would be a review by the Appellate Authority

For executives up to E-6 level: Subsidiaries can constitute a committee for considering the

cases of executives who are rated as Poor. The said Committee will consist of FDs of the Company with CMD of the Company as the approving authority. However, the said committee cannot raise the total score above Good (Score up to 2.99)

For executives in E-7 level: CIL HQ will constitute a committee for considering the cases of

executives in E7 level who are rated as Poor. Committee will consist of FDs of the CIL HQ/Subsidiaries with Chairman of CIL as the Approving authority. However, the said committee cannot raise the total score above Good (Score up to 2.99)

* All cases of CIL HQ,RSO and Delhi Office will be referred to Committee which would consist of

FDs of the CIL HQ/Subsidiaries with Chairman of CIL as the Approving authority The decision of the Competent Authority and the final grading shall be communicated to the

executive reported upon within 15 days of receipt of the decision. Normalization process would be done by Moderation Committee, if required

Final Review

15


Conducting the Review Discussion

Preparation for the discussion:

Both executive and reviewer needs to prepare to ensure that the discussion is effective and productive

Reviewer needs to fix up the time and date of the discussion to enable the executive to be prepared to present his/her case

Both the executive and reviewer need to consolidate the points to be discussed in advance and clearly record the information/ behavior supporting the same to discuss and finalize the rating

Performance Discussion :

• Feedback basics – Effective feedback helps the executive sustain good performance, to develop new skills and to improve performance where necessary. Feedback is most effective in reinforcing or improving work performance when the executive has confidence on the basis of that feedback

• Guidelines for giving behavioral feedback – Behavioral feedback should be based on specific, observable or verifiable data and information based on events, and should be delivered as close to the event or behavior as possible

• Concluding the Discussion: Summarize the way forward / development plan and conclude on a positive note and ensure both parties are at the same level of understanding for moving ahead

Some do’s for the Reviewer

Analysis of performance should concentrate on both results and the efforts taken to achieve the results

Assess results against agreed targets and ensure that the evaluation is objective and data based

Essential to end with a way forward or action plan for future which is agreeable to both the parties

Criticism should be constructive and developmental. It should reflect the areas of improvement and also ways to improve

Ensure frank discussion on constraints, problems faced, support required in absence of which the discussion will be incomplete

Share the mutual responsibility and work towards development planning in a phased manner

Ensure that no personal biases direct the discussion

Complete documentation has to be ensured and conclude the meeting on a positive note

16


Final Rating


KPI Score Computation

KPI Score against each parameter is determined as follows :

Performance (KPI) Score of Reporting Authority

18

Sum of column 8 =0.8+0.6+1+0.4+0.2+0.15+0.15+0.10+

0.2+0.25= 3.85

Weighted Score: 0.6Weightage * Rating / 100

E.g for “Coal Production Achievement” : Column 6 multiplied by Coloumn2 i.e. : (20*4) /100= 0.80

Performance (KPI) Score of Accepting Authority

Sum of column 9 =0.8+0.6+1+0.4+0.2+0.15+0.15+0.10+

0.2+0.25= 3.85

Quadrant (1) Key Performance Indicators (2) Weightage (3) Target (4)

Achievement

Rating Weighted Score

(5) Self (To be filled by executive)

(6) Reporting Authority (To be filled by Reporting Authority)

(7) Accepting Authority (To be filled by Accepting Authority)

(8) Wgt * Reporting Authority Rating)/100 To Multiply col (6 )and col (2)

(9) Wgt * Accepting Authority Rating /100 To Multiply col (7 )and col (2)

PR

OC

ES

S

(6

0%

)

Coal Production Achievement

20 4 4 0.8 0.8

Statutory Norms 20 3 3 0.6 0.6

Schedule Adherence 20 5 5 1 1

FIN

AN

CIA

L

(2

0%

)

Profit Variance Per Tonne 10 4 4 0.4 0.4

Legal Case Cost 5 4 4 0.2 0.2

Penalties & Fines 5 3 3 0.15 0.15

CU

STO

MER

(1

0%

)

Query Resolution 5 3 3 0.15 0.15

Terminal Dues Clearance 5 2 2 0.1 0.1

LEA

RN

IN

G &

G

RO

WT

H (

10

%)

Coordination Meeting 5 4 4 0.2 0.2

Training 5 5 5 0.25 0.25


Goal Setting Process :

Personal Attributes

Personal Attributes- Rating Scale

Rating Scale for Personal Attributes

5- Exceeds expectations

4- Meets expectations most of the times

3-Consistently meets expectations

2-Partially meets expectations

1-Consistently does not meet expectations

19

Personal Qualities Score Average Score =Sum of score/No of Personal Qualities i.e. 10)

Personal

QualitiesDefinition

Effective

communication

skills

The ability to communicate in a clear, simple and transparent way to make

others understand the situation

Has a good understanding of the business and the environment including the

laws and rules related to the business

Make efforts to develop self and team and to make them contribute to the

long term business strategy and vision of Coal India Ltd.

Problem solving

and Analytical

ability

Analyzes and solves a problem by identifying the reasons of a problem in a

proper way

Ability to develop

and motivate team

members

Provides guidance and support to the team, encourages team work, inspires

and motivates team

Ability to

coordinate and

develop

collaborative

partnerships

Builds strong and effective relationship with internal and external

stakeholders. Makes positive use of the existing relations through strong

networking to meet the objectives of the organization

Innovation and

change orientation

Takes efforts and initiatives to introduce innovative processes and systems in

the department. Manages, directs and leads change initiatives for effective

learning processes. Encourages new and innovative approaches in the

department

Planning and

Organizing

Has the ability to plan the activities to be carried out by self and by team. Is

able to prioritize and handle emergencies to achieve goals and objectives

within defined timelines

Result orientation Has a strong willpower to achieve desired results. Ensures that the

department and the organization adhere to high standards of efficiency and

excellence to achieve effective results based on great performance

Business Acumen Ability to understand the relationship between revenue and expenses. Uses

the financial data and information to make practical business decisions

External Influence

for Personal Gains

Using external influence to persuade others to take biased decisions in

favour of self

Strategic

orientation and

Decision making

ability



Overall Score Computation

Total Final Score Definition

Below 1.25 Poor

1.25-1.99 Fair

2.00-2.99 Good

3.00-3.99 Very Good

4.00 & Above Outstanding

Final Conversion Scale

Based on the range of Overall Score as computed above the final appraisal rating is provided to the executive

20

Illustration : Performance (KPI) Score - 2.5 Personal Qualities Score - 2.75 Achievement Score- 3 Grade : E5 Final Calculation : 0.65 * 2.5 +0.30 * 2.75 +0.05 * 3=2.60

2.60 Final Score Final Rating Good

Grade Calculation for determine the Overall Score

E5 to E7 0.65 * Performance (KPI) Score + 0.30 * Personal Qualities Score +0.05 * Achievement Score

E1 to E4 0.75 * Performance (KPI) Score + 0.20 * Personal Qualities Score +0.05 * Achievement Score


PMS Audit Committee



PMS Audit Committee would be formulated to review the entire PMS process and provide report on actual adherence to processes

An audit team consisting of minimum 15 members from various disciplines (in grade E7 and above) to be formulated in each subsidiary/establishment/ CIL HQ

Audit team to be further divided into smaller three member team and would be given responsibility to conduct a random audit for a list of Departments

Sample size for random audit would be 5 % of total PRIDE forms from each Department

Final audit report would be submitted within the prescribed timelines and format to Director (Personnel)

PMS Audit Committee

In case of non adherence to timelines for submission of the PRIDE form,, a penalty clause to be introduced which would result in a 0.5 deduction in the overall rating to ensure process discipline.

In case of non-completion of Goal Setting by the executive even after expiry of the penalty period, the PRIDE rating for the assessment year of such executives will be taken as ―POOR‖ with Zero score.

If the non-completion of Goal Setting within the stipulated time is due to reluctance of the executive to accept Targets as suggested by the Reporting Authority, the Reporting Authority will have the authority to accept the targets with modifications as he may deem fit and communicate accordingly.

If an executive fails to submit year-end self-appraisal within the stipulated time, his performance rating for the assessment year will be taken as ―POOR‖ with Zero score.

In case the Reporting Authority neither accepts nor refuses the Goal Setting submitted by the executives, the same will be deemed as accepted on the expiry of the time limit with penalty of 2 marks to the Reporting Authority.

Disciplinary action under CDA Rules will follow in the case of non-adherence to the process of PMS by any executives.

22

Non Compliance of PMS Process


Frequently Asked Questions

2 Section


1. Who is eligible for evaluation under the PMS?

All executives upto E7 grade are eligible for evaluation under the PMS.

2. Are executives on contract/part time engagement entitled for review under the PMS?

Only those executives who are in a permanent roll in the organization are eligible for evaluation under the PMS. Thereby, executives on contract/part time engagement are not entitled for review under the PMS.

3. Are executives on deputation eligible for PMS evaluation and PRP?

Eligibility for PMS evaluation and PRP would be on the basis on the terms and conditions of deputation.

4. What is the Assessment period/year?

Assessment period/year is from 1st April of the previous year to 31st March of the current year.

5. What does the word PRIDE & KPI stands for?

— PRIDE stands for ―Performance Report for Individual Development of Executive‖

— KPI stands for ―Key Performance Indicators‖

6. What are “super-ordinate” KPIs?

―Super-ordinate‖ KPI‘s are the organizational goals and every executive working in CIL is directly or indirectly contributing towards these goals. The two identified super-ordinate KPIs are as follows:

— Coal Production Achievement - to be provided a minimum weightage of ―20‖ percent

— Profit Variance per tonne- to be provided a minimum weightage of ―10‖ percent

These superodinate goals will be present in the PRIDE of all executives.

— For executives in Unit Level- Coal production target and Profit variance per tonne for the unit to be considered as the target for all executives in that Unit

— For executives in Project Level- Coal production target and Profit variance per tonne for the project to be considered as the target for all executives in the Project

— For executives in Area Level- Coal production target and Profit variance per tonne for the project to be considered as the target for all executives in the Area

— For executives in Subsidiary HQ/CIL HQ Level- Coal production target and Profit variance per tonne for the Subsidiary/CIL HQ respectively to be considered as the target for all executives in the Subsidiary HQ/CIL HQ

— * Delhi Office and RSO to be considered a part of CIL HQ

Super-ordinate KPIs for CMPDIL are :

— Achievement of Exploration Target - to be provided a minimum weightage of ―20‖ percent

— Overall Profit/Loss Variance - to be provided a minimum weightage of ―10‖ percent.

Eligibility and Terminology

24


7. Who is the Nominated officer?

The Subsidiary level EIS Nodal officer managing MP_COMP domain will be the nominated officer for PMS at Subsidiary level.

The Subsidiary company shall authorize Nominated officers for each Area and HQ establishment for EIS and PMS process, who shall be assigned separate Login ID and Password to manage their respective domain.

Nominated officers will play a pivotal role in managing the EIS/PMS Process.

He/she will maintain a status of the current state of PMS Forms i.e. how many have been appraised and how many are still due for appraisal.

8. Where would the completed PRIDE form be kept after the appraisal process & the feedback has been given to the Appraisee?

Data access control will be given to EIS Domain Managers and other user department as per their need

9. How will the rating be communicated to the executive post completion of the Appraisal process?

Final PRIDE rating after moderation can be viewed by executives by their EIS log in ID and password.

Custodian of PRIDE Form

25

Process

10. Is it mandatory that each of the four quadrants (Process, Finance, Customer and Learning & Growth) has a KPI?

It is mandatory that a minimum of 8 KPIs are assigned to an executive out of which Process Quadrant will have minimum 3 KPIs including the super ordinate goal. In addition to these 8 mandatory KPIs, the Learning and Growth Quadrant will have the following 2 additional KPIs with weightage as mentioned against them.

Sl.

No KPI Weightage

1



for self.

2

2*



for all subordinates.

2

*This will not be applicable to executives who are not Reporting/Accepting authority.


Quadrant No. of

Fixed

KPIs

Minimum

(Including

Fixed KPI)

Maximum

KPIs

Weightage

Process 1 3

Total

Min.

8

KPIs

5 60

Financial 1 1 3 20

Customer -- 1 3 10

L&G -- 1 3 6 or 8

Additional

KPIs

2 or 1 2 or 1 2 or 1 4 or 2

Total 4 or 3 10 or 9 16 or 15 100

The Minimum and Maximum number of KPIs in each Quadrant is shown in the table below:

26



27

11. Would the target setting be done once or twice a year?

Targets would be fixed only once at the beginning of the year.

12. Who will identify the KPI and Weightage in an executive’s scorecard?

Executives would need to refer to the unique position scorecard to identify the KPI for each position. In case the relevant KPI doesn‘t exist in the unique position scorecard, they can refer to the KPI inventory. This need to done in discussion with the Reporting Authority with respect to the applicability and accordingly the goals would be set in the scorecard.

Weightage has to be determined in discussion with the Reporting authority.

There needs to be a formal sign off on the PRIDE Form stating that the KPI and targets have been agreed and signed off by the Reporting authority and the concerned executive.

13. Can the same KPI be given to more than one executive?

As one goes lower in the hierarchy it is likely that many executives will share a team goal. While the KPI can be same for many executives, target against each KPI would vary depending on individual to individual basis

14. What is the eligible period of performance for Mid Year Review to take place?

An executive must spend a minimum period of ninety days in the role to be eligible for Mid Year Review. Otherwise the Mid Year Review process can be skipped.

15. Would there be ratings given in the Mid Year Review?

No, there would be no rating on the KPI‘s against set targets during the Mid Year Review.

However there would be overall feedback and challenges to meet targets captured in Mid Year Review Form.

16. What happens if course correction in targets is needed during the Mid Year Review?

Targets can be revised during mid year review. This will be done after initiation of target revision by Assesse or Assessor. However it can be done only under exceptional circumstances post receiving approval from concerned Functional Director.


17. Who are Reporting and Accepting authority ?

A. Unit/Project/Sub Area

i. For executives posted in mining department Reporting Authority is an executive to whom the appraisee reports directly and Accepting Authority is the Reporting Head of such Reporting Authority.

ii. Colliery Manager will be either Reporting Authority or Accepting Authority for all executives on the roll of a mine.

iii. Project Officer/Sub Area Manager will be Reporting Authority for all executives directly reporting to him and will be the Accepting Authority for executives reporting to his Direct Reports.

iv. Staff officers in a project will be the Reporting Authority for executives reporting directly to them and will be the Accepting Authority for executives of their respective discipline for whom Colliery Manager is the Reporting Authority.

B. Area

i. For Staff officers based in Area, the Reporting Authority is Area General Manager.

ii. For executives under Staff officers based in Area, the Reporting Authority is Staff Officer and Area General Manager will be their Accepting Authority.

iii. Staff officers in an Area will be the Accepting Authority for executives of their respective discipline for whom Project Officer is the Reporting Authority. Where there is no staff function at Area level, Area General Manager will be the Accepting Authority for such executives of the Project.

iv. Area General Manager will be the Reporting Authority for all mining executives directly reporting to him and Accepting Authority for mining executives reporting to Project Officer.

v. Area General Manager will be the Reporting Authority for Executives in the secretarial cadre reporting to him and Director (P), subsidiary, will be their Accepting Authority.

C. Unit/Project/Sub Area

i. For HODs based in HQ, the Reporting Authority is Functional Director.

ii. For executives under HOD based in HQ, the Reporting Authority is HOD and Functional Director will be their Accepting Authority.

iii. Where work is sectionalized under an HOD, the Sectional Head will be the Reporting Authority for executives in the section and the HOD will be their Accepting Authority.

iv. Functional Director will be both the Reporting and Accepting Authority for executives up to E7 directly reporting to him.

v. CMDs/Chairman will be both the Reporting and Accepting authority for executives up to E7 directly reporting to them in their Secretariat.

vi. Functional Director or Authorized HOD of HQ will be the Accepting Authority for Area Staff Officer for whom the Area General Manager is the Reporting Authority.

vii. Technical Secretary to Functional Director/CMD/Chairman will be the Reporting Authority for executives directly reporting to them and Functional Director/CMD/Chairman will be their Accepting Authority.

viii. For other special circumstances the Area General Manager, for Areas or the Functional Directors may decide the reporting and accepting hierarchy within the

frame of ‗Dual Assessment‘ and ‗Empowerment at lower level.


28

Coal India PMS Manual 29

18. Can the KPIs be interchanged between quadrants?

The interchangeability of KPIs from one quadrant to the other is permitted post discussion with the Reporting authority.

19. How is PRP linked to final rating?

There is a direct relation between PRP and Rating as per the DPE guidelines.

20. What is the provision of revision and introduction of KPIs?

Provision in the new system for revision and introduction of KPIs is on a periodic basis:

Centralized system in CIL HQ/Subsidiary HQ to be institutionalized for collection of inputs wherein subsidiary HQ can share suggestions with CIL HQ – Director (Personnel) / Chairman who can make any amendments.

21. What are the timelines for filling in a PRIDE Form? What happens in case the deadlines are not met?

The PMS calendar has clarity on deadlines for filling in the PRIDE Form.

Activity Timelines

Target Setting 1st April to 30th April

Mid Year Review 1st Oct to 31st Oct

Yearly Review 1st June to 30th June (Subsequent Year)

Moderation at Area/Subsidiary 1st July to 20th July

Final Rating & Moderation 31st July

All executives are required to adhere to the timelines.

In instances of delay, a penalty clause to be introduced which would result in a

0.5 deduction in the overall rating to ensure process discipline.

— In case of non-completion of Goal Setting by the executive even after expiry of the penalty period, the PRIDE rating for the assessment year of such executives will be taken as ―POOR‖ with Zero score.

— If the non-completion of Goal Setting within the stipulated time is due to reluctance of the executive to accept Targets as suggested by the Reporting Authority, the Reporting Authority will have the authority to accept the targets with modifications as he may deem fit and communicate accordingly.

— If an executive fails to submit year-end self-appraisal within the stipulated time, his performance rating for the assessment year will be taken as ―POOR‖ with Zero score.

— In case the Reporting Authority neither accepts nor refuses the Goal Setting submitted by the executives, the same will be deemed as accepted on the expiry of the time limit with penalty of 2 marks to the Reporting Authority.

— Disciplinary action under CDA Rules will follow in the case of non-adherence to the process of PMS by any executives.


23. Who is responsible for maintaining the data for various KPIs?

Both Appraisee and Reporting authority are responsible for maintaining the data for various KPIs.

Special Situations

24. How will the situations be handled if the executive is performing multiple roles of 2-3 positions?

In case an executive is handling 2-3 roles, the executive needs to refer to the scorecards of all the unique positions that he/she is handling and take relevant KPIs from all of them post discussion with Reporting authority.

25. What happens when an executive is transferred during the year?

In the assessment year, if the period of assessment is more than nine months, such rating will be considered final for the whole year, and no further assessment is required for the period of less than three months.

In all other cases average of all PRIDE ratings will be taken as the final score for the year. There will be no assessment for a period less than 3 consecutive months.

26. What happens when the Appraisee is on Authorized Leave?

If the duration of the Authorized leave is more than 9 (Nine) months during the assessment year, the executive will not be eligible for PRIDE review.

The rating of the executive for the assessment year, in such case, will be equivalent to the average rating of the previous 3 (Three) years immediately preceding the assessment year.

This will only be for the promotion purpose; the executive will not be entitled to the PRP for the assessment year.

22. Once the executive is transferred to a new position/location, when does he/she need to fill his/her PRIDE Form?

In case of transfers (including transfer from one position to another position, either within the same Department or outside the Department, within the same area or outside the area, within the same Subsidiary/establishment or outside the Subsidiary/ establishment), the concerned executive must fill up the PRIDE form within 15 days of taking up the new role.


29. Areas/Units where there is no production happening or the work has been stopped due to unforeseen circumstances?

During the goal setting phase, only the relevant KPIs currently applicable to them, considering the existing work scenario, would be selected post discussion with the Reporting authority.

Two super-ordinate goals of ―Coal Production Achievement‖ and ―Profit variance per tonne‖ will also be applicable to them. They would be assigned targets of their respective subsidiaries.

— Other Departmental KPIs can be considered for the same purpose

— Creation of new KPIs only under special circumstances which needs to be approved from CMD of the respective subsidiary

30. Who are the members of Appellate Committee and what are their powers?

Appellate Committee will consist of the following members:

— For executives up to E-6 level: Subsidiaries can constitute a committee for considering the cases of executives who are rated as Poor. The said Committee will consist of FDs of the Company with CMD of the Company as the approving authority. However, the said committee cannot raise the total score above Good (Score up to 2.99)

— For executives in E-7 level: CIL HQ will constitute a committee for considering the cases of executives in E7 level who are rated as Poor. Committee will consist of FDs of the CIL HQ/Subsidiaries with Chairman of CIL as the Approving authority. However, the said committee cannot raise the total score above Good (Score up to 2.99)

— All cases of CIL HQ,RSO and Delhi Office will be referred to Committee will consist of FDs of the CIL HQ/Subsidiaries with Chairman of CIL as the Approving authority

The decision of the Competent Authority and the final grading shall be communicated to the Executive reported upon within 15 days of receipt of the decision.

27. What happens when the executive’s service is terminated due to following?

Death

In the event of death of an executive during the Assessment year, the Company level Average score of the Grade of the executive will be taken as the Rating of the Executive for the Assessment year (Company for the purpose would mean CIL/Subsidiary as the case may be).

Termination by way of disciplinary action

The executive is not entitled for PRIDE review and PRP payout for the assessment year.

28. What happens when the executive is posted under the Reporting Authority who is not on CIL/Subsidiary role (excluding CCO)?

Company level average score of the grade of the executive will be the rating of the executive for the assessment year. (Company for the purpose would mean CIL/Subsidiary as the case may be).


Cases of Retirement/Deputation and Resignation

31. Are executives who are retiring entitled to PRIDE Form Review?

Yes, executives who are retiring are entitled to PRIDE Form Review and to a prorated PRP payout (i.e. from the commencement of the Assessment year to the last working day).

Retirement includes retirement on Medical ground, Superannuation & VRS.

32. What happens if an executive has voluntarily resigned from the organization?

In case an executive has voluntarily resigned from the organization and has spent less than six (6) months of the assessment period in the organization, he/she would not be entitled to PRIDE Form Review and prorated PRP payout.

However, if the executive has voluntarily resigned from the organization and has spent more than six months of the assessment period, he/she would be entitled to PRIDE Form Review. The PRP payout would be calculated on a pro-rata basis i.e. from the commencement of the Assessment year to the last working day of the concerned executive.

33. Are executives under Vigilance entitled for PMS evaluation and PRP?

PRIDE evaluation of executives under vigilance case would be done as in the case of any other executive. PRP entitlement will be decided as per the final outcome of the vigilance case.

Induction on PMS Process

34. What would be the process adopted to educate executives on the PMS Process?

A session would be undertaken on the PMS Process during the induction process for all new joinees.


35. PRIDE evaluation on Transfer/Retirement of Reporting/Accepting Authority

PRIDE evaluation to be done by Reporting Authority and Accepting Authority on roll at the time of Assessment provided the reporting period is more than 3 months.

If the reporting period with a Reporting Authority is less than 3 months the Accepting Authority will review PRIDE both as Reporting and Accepting Authority.

Similarly if the period of engagement with Accepting Authority is less than 3 months the Reporting Authority will review PRIDE on behalf of the Accepting Authority.

In other cases falling outside the scope of the above instances, the Reporting & Accepting Authority on roll will review the PRIDE Form irrespective of their period of engagement with the Appraisee.

36. Explanation to “Special Achievement & Innovation”

Successful Completion of an extraordinarily challenging task, or, Major systemic improvement initiative, or, Process improvement leading to

Cost optimization

Process cycle time reduction

Quality improvement

Productivity improvement

Waste elimination

33

coal india pms manual€¦ · coal india pms manual it is a process to meet the following...

Documents