Presentation on PERFORMANCE MANAGEMENT SYSTEM in MSTC LIMITED 22 nd July 2011

1. Presentation on PERFORMANCE MANAGEMENT SYSTEM in MSTC LIMITED 22nd July 2011 Recycling Waste - Protecting Environment - Promoting Growth

2. established in1964. a psu under ministry of steel - mini ratna category – I business of the company : (A) e-Commerce services  e-Auction  e-Procurement (B) Trade  Procurement & Sale of Imported & Domestic material. offices : Corporate Office - kolkata REGIONAL OFFICESBRANCH OFFICES delhi,  bangalore mumbai,  vizag chennai vadodara. Kolkata human resource 159 Executives 156 non-executives COMPANY PROFILE Recycling Waste - Protecting Environment - Promoting Growth

3. Financial Report… Rs. in Crore 150.41 (A Government of India Mini Ratna Company)

4. SCOPE • To assess the performance of executives • To link executive compensation based on performance level • To plan for their development Recycling waste to wealth

5. OBJECTIVES • TO LINK PERFORMANCE ASSESSMENT WITH ACHIEVEMENT OF ORGANISATIONAL OBJECTIVES • TO ENHANCE OBJECTIVITY IN FIXING TASKS / TARGETS • TO ENSURE OBJECTIVE ASSESSMENT OF PERFORMANCE AND POTENTIAL • TO DISTINGUISH BETWEEN DIFFERENT LEVELS OF PERFORMANCE ON RELATIVE BASIS • TO ENSURE TRANSPARENCY • TO ENSURE DISTRIBUTION OF RATINGS AT DIFFERENT LEVELS • TO IDENTIFY THE DEVELOPMENT ACTIONS Recycling waste to wealth

6. APPRAISAL PROCESS • Self – Appraisal • Performance Review and Planning • Performance Assessment • Evaluation and Final grading • Development Plan Recycling waste to wealth

7. SELF APPRAISAL • Key Performance Areas & Tasks / targets set by Reporting Officer in consultation with appraisee • Appraisee will report on :- • Tasks/Targets fulfilled • Constraints faced • Facilitating Resources • Suggestions for Improvement • Highlights of Performance • Major Strengths • Developmental Needs Recycling waste to wealth

8. Performance Review and Planning • After the self appraisal, Performance Review and planning held between the appraisee and the Reporting Officer • Discussion during PRP session on:-  the extent of tasks / targets fulfilled  major strengths of the appraisee  developmental needs  suggestions for improvement of the individual and the team performance • agreed & signed by both the Reporting Officer and the Appraisee Recycling waste to wealth

9. PERFORMANCE ASSESSMENT • Assessment by Reporting Officer & Reviewing Officer • Assessment on a 5 point rating scale • Appraisees classified into the following grades 84 and above - O 68 to 83 - A 52 to 67 - B 20 to 51 - C • If not found fit, appraisee may be declared as “unfit” or non - promotable for ensuing year Contd. Recycling waste to wealth

10. Contd.. • The HR Department compiles the total scores based on scores given by Reporting Officer & Reviewing Officer • Total factor scores for an appraisal group arranged in the following distribution pattern :- O - 10% A - 20% B - 45% C - 25% Recycling waste to wealth

11. Contd.. • PERFORMANCE REVIEW COMMITTEE (PRC) PRC constituted comprising Heads of Departments under chairmanship of cmd Role of PRC –  Study distribution pattern of grading  Evaluate & moderate grades based on relative performance in a cadre/grade  Moderation not to be of more than one stage up or down  Final grading ensuring distribution of 10% O, 20% B, 45% B & 25% C Recycling waste to wealth

12. Highlights • Appraisal System based on KPAs/KRAs • Enhanced level of objectivity in fixing Tasks/Targets mutually between reporting officer & appraisee and assessment • Self-Appraisal ensures transparency • Differentiation of individual level performance – functional & grade-wise Recycling waste to wealth

13. CONTD.. • Executives in a grade/function are placed in a distribution curve akin to bell-curve, i.e. O - 10% A - 20% B - 45% C - 25% Non-promotable C - As decided by PRC • Written Communication of adverse rating / non-promotable report to the appraisee • Hence, Performance appraisal system is both transparent & robust Recycling waste to wealth

14. REMUNERATION COMMITTEE MEMBERS • SHRI G. S. CHUGH, INDEPENDENT DIRECTOR • SHRI L. SIDDHARTHA SINGH, DIRECTOR(GOVT. NOMINEE) • ONE INDEPENDENT DIRECTOR TO BE INDUCTED IN THE COMMITTEE SHORTLY Recycling waste to wealth

15. CALCULATION OF PRP Component of PRP (60% from Current year Profit & 40% from 10% Incremental Profit) X Annual Basic X MOU Rating X Grade Incentive X Company performance weightage 72.5% Region/ Branch/ Unit Performance 5% Actual PBT Vs. Budgeted PBT 7.5%. Individual Performance weightage 15% Performance Rating + + + X Ratio of Required amount to Available Amount Recycling waste to wealth

16. profitability: Current Years Profit (60% from Current year ‘s Profit – max 3 % of pbt) Incremental Profit(40% from 10% of Incremental Profit (Rs. In Crore) COMPONENTS OF PRP Subject to 5% of PBT • Annual basic pay • MOU rating: • Grade Incentive Recycling waste to wealth

17. COMPONENTS OF PRPContd. • Performance rating weightage: • Company performance : 72.5% • Region/ Branch/ Unit Performance: 5.0% • Actual PBT vs Budgeted PBT : 7.5% • Individual performance : 15.0% TOTAL: 100% • ratio of required amount to available amount : (Rs. in Crore) Recycling waste to wealth

18. ILLUSTRATION Recycling waste to wealth

19. DISTRIBUTION OF PRP Recycling waste to wealth

20. Thank you Recycling waste to wealth