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Performance Management System & PRP in BSNL DPE WORKSHOP CHANDIGARH 30-05-2011 Presentation by

Performance Management System & PRP in BSNL DPE WORKSHOP CHANDIGARH 30-05-2011 Presentation by D P De, Sr GM ( Establishment) & Madhu Arora, GM(Restructuring) BSNL Corporate office. Index. Challenges before BSNL Recent Performance of BSNL PBT and PRP Payments

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Performance Management System & PRP in BSNL DPE WORKSHOP CHANDIGARH 30-05-2011 Presentation by

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  1. Performance Management System & PRP in BSNL DPE WORKSHOP CHANDIGARH 30-05-2011 Presentation by D P De, Sr GM( Establishment) & Madhu Arora, GM(Restructuring) BSNL Corporate office

  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 EmployeesExecutives 56,290Non- Executives 2,26,400Total 2,82,690 Total no. of Employees

  4. Challenges before BSNL

  5. Key Challenges Faced by BSNL 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

  6. Performance of BSNL- Last few years…

  7. %age Telephone Market Share of BSNL %age Telephone Market Share of BSNL 6

  8. Financial Performance Financial Performance In Rs Crores 7

  9. PRP and Productivity Linked Incentive Payments in BSNL

  10. Prior to DPE guidelines of 26-11-2008 on PRP,Productivity linked Incentive was being paidin BSNL

  11. LAST 3 YEARS’ PERFORMANCE IN RUPEES CRORES

  12. PLI GUIDELINES ADOPTED PLI GUIDELINES ADOPTED PLI AMOUNT = BASIC PAY X MULTIPLICATION FACTOR CORRESPONDING TO MOU GRADING SUBJECT TO MINIMUM AND MAXIMUM LIMITS CASUAL LABOURERS @ RS. 3000 (FIXED) SUBJECT TO 50% CEILING LIMIT OF PERKS AND ALLOWANCES TO BE PAID WITH THE APPROVAL OF BOARD, KEEPING IN VIEW THESE GUIDELINES

  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/PRP 2008-2009 • 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

  17. Importance of PMS 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

  18. Performance Management System in BSNL Performance Management System in BSNL

  19. Group Performance Management System (GPMS) 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

  20. As part of GPMS design, all BSNL employees have been structured along 19 groups As part of GPMS design, all BSNL employees have been structured along 19 groups Number of group types Number of groups Category of groups Group Type 1. Consumer Fixed Access 2. Consumer Mobility 3. Enterprise 4. New businesses 5. Corporate Affairs 6. HR (Incl. Legal and Vigilance) 7. Finance Sub-total Territorial Circle Sub-total 1. Project Circle 2. Maintenance Region 3. Inspections (earlier T&D) 4. QA 5. Telecom Stores 6. Telecom Factory 7. ITPC 8. NCES 9. Data N/W 10. Training Circle Sub-total SSAs Total 1 1 1 1 1 1 1 7 1 1 1 1 1 1 1 1 1 1 1 1 10 1 19 1 1 1 1 1 1 1 7 26 26 5 4 1 1 1 3 1 1 1 3 21 330 384 Corporate office Territorial circles Non Territorial Circles SSA

  21. Organisation redesign

  22. Individual PMS (IPMS)-Way Forward

  23. Going forward- Individual performance evaluation 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).

  24. Plan for IPMS Implementation through out the country 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

  25. Bell Curve Approach • Bell curve methodology not yet implemented • Experience sharing by other PSUs will help BSNL

  26. GPMS score and PAR rating 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

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