Performance related pay in central public sector enterprises in India.
Singh, Punam ; Mishra, R.K.
Introduction
The public sector enterprises in India have always been considered
as 'model employers'. The brightest of candidates dreamt of
working for a public sector enterprise. However, with the opening of
economy, the situation has taken a u-turn, the public sector enterprises
are in a war for talent with its private counterparts. It is not only
losing its talent pool to the private sector but fresh talents are more
attracted to join private sector or MNCs were there is tremendous career
progression along with attractive pay packages. With increase in
opportunities, CPSEs are also finding it difficult to retain talented
employees. As a result, public sector is under severe pressure in terms
of attracting and retaining talent.
Pay has been considered an important reward to motivate the
behavior of employees from the very inception of management science
(Taylor, 1911) .The linkage between perceptions, pay and performance has
been studied and established (Adams, 1963; Vroom, 1964; Lawler, 1971).
Compensation serves to attract, retain and motivate high-potential
employees. Meanwhile, the fulfillment of above goals is subject to
constraints such as the maintenance of equity, cost control and legal
requirements (e.g. wage and salary legislation).
"Compensation refers to all forms of financial returns and
tangible services and benefits employees receive as part of an
employment relationship" (Milkovich & Newman, 2005). The phrase
"financial returns" refers to an individual's base
salary, as well as shortand long-term incentives. "Tangible
services and benefits" are such things as insurance, paid vacation
and sick days, pension plans, and employee discounts. (Milkovich &
Newman, 2005) have used the term compensation and pay interchangeably in
their book on compensation management and hence the term pay and
compensation is used interchangeable in literature.
Linking pay with performance which is commonly referred as
performance related pay has been followed worldwide in all sectors for
attracting, motivating and retaining talent. Performance related pay
links the compensation of the employees to their performance and their
contribution to the organizational goals. Therefore, periodic
performance reviews play a vital role and provide the basis for
performance related pay. It is because of this reason that the CPSEs
have to first develop a transparent and robust Performance Management
System before the implementation of PRP in their respective
organizations.
CPSEs in India, so far have been following a system wherein the
entire compensation was guaranteed, irrespective of the performance of
the company or the individual. The second pay revision for CPSEs was
accepted by the cabinet on 26th Nov, 2008 to be implemented with
retrospect from 1st Jan, 2007.The pay revision had recommended for the
implementation of PRP for the first time in the history of public sector
enterprises. Since PRP of an individual is based on performance against
Key Result Areas (KRAs), all CPSEs should develop a robust and
transparent Performance Management System.
Challenges before CPSEs
Intense Competition for Business & Talent: It is widely
acknowledged that the public sector enterprises today are required to
function in an intensely competitive environment dictated by market
forces unleashed especially in the post liberalization phase of the
country. The competition faced by the CPSEs from Indian private sector
companies and the Multi-National Corporations (MNCs) operating in and
outside the country, extends to both business and talent. In sharp
contrast to the formative years of the public sector, barring very few
exceptions, no Indian CPSE enjoys a product / service monopoly status or
a captive consumption facility from its parent ministry / department. In
such a situation, the CPSEs have to be as innovative, as ef ficient and
as nimble footed the private sector companies and MNCs to successfully
compete and win in the market place. Talent--both technical and
managerial--becomes the fundamental requirement for such success. The
vast differentials in the remuneration, even at the entry level in some
cases and at the middle and senior levels in all cases, have made
attraction and retention of talent extremely difficult in CPSEs in the
last 10-15 years. Engineering and management graduates from IITs and
IIMs do not look at CPSEs as a career option today. Same is almost the
case with respect to regional engineering colleges and even government
engineering colleges. In the 60s & early 70s, CPSEs were the
preferred destination for most of the bright and young engineering
talent of the country. Probably it is this residual talent, at the helm
of the affairs of the Indian CPSEs today, that is contributing to the
admirable success of the performing public sector companies of the
nation.
Attraction & Retention of Talent : While the junior cadres of
management in CPSEs were the targeted community for talent poaching in
the earlier years, it is the middle management and senior management
personnel who are being lured away in increased numbers now because of
the tremendous remuneration gaps between CPSEs and private sector
companies & MNCs. The operations of CPSEs are getting very adversely
affected in view of this exodus of the experienced and valued cadre of
executives of the CPSEs.
It is a fact that the remuneration levels of the entry level
executives in CPSEs in some cases are comparable, and sometimes better,
to the corresponding emoluments in the private sector. Even such CPSEs
are finding it near impossible to attract bright talent. The reasons are
twofold: In the earlier times, CPSEs, in a large measure, have been the
training platforms for top class Engineering and Management Graduates.
In the last one and half to two decades, there are several avenues open
to these groups in the private sector companies and MNCs. Secondly and
more importantly, the growth opportunities available to the talented
ones in the private sector companies and MNCs are far more attractive
and rapid compared to the CPSEs.
Therefore, solutions to the problems of 'Attraction' and
'Retention' are increasingly becoming difficult. As things
stand, attracting talent is far more difficult compared to retaining
talent. For some time to come, till CPSEs become equally attractive
destinations to the talented engineering and management graduates, as
they were in the sixties and seventies, intensive and specialized
inhouse induction and training programs appear to be the only solution.
In respect of retention of talent some concrete steps have to be taken
to preserve the aggregate knowledge and experience within the preserves
of CPSEs to cope with the ever-increasing challenges in the market
place.
Uniformity & Differentiation: Barring some exceptions, in the
last few years 'Uniformity' has been the guiding principle in
respect of remuneration of the executives of CPSEs--with close linkages
to the remuneration packages of the Central Government officers. While
this linkage had some basis and rationale in the formative periods of
CPSEs, the time has certainly come for snapping this linkage and move
towards industry standards in respective of the remuneration packages.
As opposed to the 'Uniformity' principle practiced in the
CPSEs, 'Differentiation' is the guiding factor for
remuneration in the private sector companies and the MNCs. This
'Differentiation' takes place based on several factors like:
* Industrial sector to which the organization belongs
* Functions to be carried out by the executive
* Location of the organization
* Performance level of the executive
* Paying capacity of the organization PRP Studies -Evidence from
across the World
PRP refers to the variable part of pay, awarded on an individual or
on a team or group basis depending on performance. Variable pay is
distributed in forms such as bonuses, incentives, on-the-spot bonuses,
profit sharing, and Various other Pay-for-Performance schemes. They
essentially are based on a principle that suggests an individual's
pay should vary based upon performance (of the individual, group, or
organization).
A number of propositions in support of merit pay may be drawn from
theories put forward by experts such as vroom (1964) and Skinner (1969).
Public administration research on PRP usually relies on what is often
called expectancy (Vroom, 1964; Porter & Lawler III, 1968) and
reinforcement theory (Skinner 1969). Vroom's expectancy theory,
briefly, indicates that the greater the belief that effort will lead to
reward and the greater the value placed on that reward, the greater the
motivation to work will be. Skinners proposition is that behavior that
is rewarded (in his terms, reinforced) will become more frequent.
Reinforcement theory stresses the effect of cultivating a behavioral
norm of high work effort through reinforcing behavior with positive
rewards.
The first review of the effects of merit pay reforms emanating from
the Civil Service Reform Act (CSRA) was Perry's (1986) assessment
of contingent pay for public managers. The scope of his review was
limited to research on individual contingent pay systems that added
performance increments to base pay. Based on research prior to 1985,
Perry could not identify any study that found positive effects. Although
the evidence was limited, he concluded that merit pay in the public
sector was plagued by invalid contracts, information asymmetries where
the supervisor lacked accurate information about the subordinate
performance, and diminished capacity to coordinate interdependence.
A National Research Council (NRC) panel, convened under contract to
the U.S. Office of Management, subsequently reviewed both public and
private sector research on pay for performance (Milkovich & Wigdor,
1991). Composed of members from academia, business, and government, the
NRC directly acknowledged the gap between the promise and reality of pay
for performance in the federal government. The NRC panel found that
political attacks devaluing public service might have created a climate
in which it was difficult to achieve the consensus and trust important
for successful pay for performance. Perry, Mesch & Paarlberg (2006),
analyzed 17 review articles, including three meta-analyses and nine
research syntheses on financial incentives, developed several
generalizations about financial incentives that are relevant to the
present study. The study concluded that individual financial incentives
are ineffective in traditional public sector settings and joined prior
reviews of pay-for-performance systems in concluding that the
effectiveness of financial incentives is dependent on organizational
conditions.
Marsden (2004), OECD (2005b) & Marsden (2009) have studied the
link between PRP and performance and also the secondary benefit of PRP
implementation. Apart from the direct link between performance and
individual rewards, advocates in the field of public administration
highlight secondary effects associated with performance pay: it helps to
recruit and retain highly -skilled and/or motivated staff who presumably
would do better under such an arrangement; increases the awareness for
organizational goals by defining explicit performance standards; weakens
the power of public sector unions; makes managers more responsible;
signals core organizational goals to outside actors; increases the link
between individual and organizational job goals; reduces the overall
wage bill by moving away from automatic pay increases; and leads to an
increase in overall job satisfaction through the individual recognition
of employee efforts.
PRP in the form of bonuses or merit increases to basic pay has been
used more frequently in the OECD in recent years. According to one
estimate, approximately two-thirds of OECD countries have introduced PRP
in some form or the other (OECD, 2005). The United Kingdom, Switzerland
and the Czech Republic apply PRP more extensively than countries such as
New Zealand, Austria and the Netherlands. In Finland, for example, the
proportion of basic salary that PRP can represent can amount to over 40%
of the total. In the US, while PRP is of limited use in the core public
administration, it is at the center of efforts to improve teacher
accountability over the past decade. As per the OECD report (2005),
introduction PRP scheme dates to the year of 1964 in Canada and 1978 in
US. It was introduced in France (2004), Hungary (2002) and Switzerland
(2000).The report also mentions that OECD countries have revised their
PRP scheme and implementation to make it more effective. US implemented
a revised scheme in (1984) and again revisited it in 1994 and 2004.
Denmark which introduced the scheme in 1987 also revised/ revisited the
scheme from (1997-2002).
The 2nd pay revision Committee (2008) for CPSEs in India
recommended that Variable Pay or Performance Related Pay (PRP) be made
an integral part of the compensation package and should progressively
become major a component of the executive compensation. The PRP should
be directly linked to the profits of the CPSE/unit and performance of
the executives. The percentage ceiling of PRP, progressively increasing
from junior level to senior level executives, expressed as percentage of
pay (http://dpe.nic.in/sites/upload_files/ dpe/files/Chapter_6_
Recommendations_Final.pdf) Cardona (2007) has reviewed incentive
programs in the US, particularly the Performance Management and
Recognition System, he also studied the UK's Inland Revenue Service
performance scheme and similar attempts in Australia. Several common
issues in the implementation of performance pay have been discussed such
as employees have hardly ever scored less than satisfactory in their
evaluations, bonus systems were designed so that only very few employees
actually received any payments and the majority of staff found the
system de-motivating and inciting jealousies. Straberg (2010)
highlighted the problem of perceived unfairness following the
introduction of performance pay in an OECD country, although he notes
that there was no empirical linkage between pay justice perceptions and
workplace behaviors. Managers equally found little positive changes
resulting from the introduction of performance pay (Hasnain et al 2012).
Performance-related pay (PRP), has been introduced in many countries as
a possible tool for improving the productivity and accountability of the
public sector. Over the past fifteen years, a majority of OECD countries
have implemented PRP in the central administration (core civil service),
in specialized entities such as revenue administration, and for key
service delivery staff such as teachers and medical personnel. Middle
income countries, and to some extent low income countries, perhaps
drawing on the OECD example, have also experimented with PRP in an
attempt to inject performance-orientation in otherwise dysfunctional
bureaucracies.
Reasons for Implementation in India
What gets measured gets managed and what gets managed is done? Abid
ing by this principle, the mantra for establishing a performance
oriented culture is to implement a PRP system based on a transparent and
robust performance management system. As per IIMA report on introduction
of performance measurement and performance incentives in government
organizations, there are 8 broad reasons for implementation of
performance measurement and performance incentives. These are:
1. Enhance employee productivity/performance: Performance
measurement and incentives will be linked to achievement of targets and
not length of service. This will motivate employees to work towards
their targets, thus enhancing their productivity/performance. This can
be one of the earliest achievements.
2. Better internal business processes: One of the key effects of
implementing performance related incentives (PRI) will be that
inefficient or redundant business processes will have to be reviewed to
improve organizational, group and/or individual performance.
3. Improved public/stakeholder service delivery: PRI will have an
overall strong positive impact on service delivery to public/stake
holders. Most of the outputs/outcomes in government departments/
organizations deal with service delivery to citizens or other stake
holders and PRI will sharpen the focus on outputs/ outcomes.
Citizen/Stakeholder orientation of employees will be furthered if
performance targets/ measures are suitably directed.
4. Develop result/business orientation: Targets and measures
related to result/business orientation will help in developing employees
focus in this direction. Result orientation focuses on efficient and
effective governance and business orientation focuses on promoting
market value of products/services.
5. Strengthen team spirit: Group rewards help in fostering
teamwork. They also assist in clarifying organizational/ group
objectives and engage employees with the organization's goal.
6. Perception of procedural justice: PRI has a two-way link with
perceived procedural justice. On the one hand, proper goal setting,
regular feedback and transparent assessment of performance will lead to
perception of procedural justice. On the other hand, perceived
procedural justice is very critical for long term success of PRI.
7. Attract talent: Steep rise in salary and job conditions like
autonomy are making private sector jobs seem much more attractive to the
younger generation. If the government wants to attract good talent in
future then PRI with delegation and transparency holds the key.
8. Accountability: Metrics developed to measure employees'
work output, competencies and stakeholder orientation will bring the
much-needed shift in their focus from political bosses to ordinary
citizens. Transparent system will be a deterrent to corruption among
employees.
Implementation Issues
The accepted recommendations of the 2nd Pay Revision Committee,
formed to revise the pay of the executives and non-unionized supervisors
in India have posed some challenges to the CPSEs since the concept of
CTC is new to CPSEs and this has to drive them to attract talent from
educational campuses. Due to lack of precedence and in the absence of
suitable guidelines and standards on how to monetize individual perks
and allowances, there is a possibility that different PSEs adopt
different valuations and thereby arrive at difference CTC numbers, as
observed by the Ernst and Young Associates (2008).
The 2nd Pay Commission review committee for the CPSEs has
recommended variable pay along with the fixed pay as an integral
component of compensation structure in CPSEs in India. The committee
proposed to change the current pattern of compensation and bring in the
component of variable pay as part of the total compensation. The
variable component is relatively low for lower level executives and
progressively increases to as high as to 200% of the ba sic pay at the
level of the CEOs. The variable component is what is referred to as
Performance Related Pay and will be linked to individual, group,
businessunit and company performance.
PRP in the case of CPSEs will be based on the physical and
financial performance and will come out of the profits of the CPSE. 60%
of the PRP will be given with the ceiling of 3% of profit before tax
(PBT) and 40% of the PRP will come from 10% of the incremental profit.
The total PRP however will be limited to 5% of the year's PBT,
which will be for both executives and non-unionized supervisors.
The most important pre-requisite is the signing of the MOU with the
ministry under which the CPSE belongs. The MOU rating will form the
basis of PRP with all the Key Results Areas (KRA) identified in the MOU.
CPSEs which do not sign a MOU with the ministry will not be eligible for
PRP. Enterprises achieving excellent MOU rating will be eligible for
100% PRP. Similarly enterprises achieving very good, good, and fair
ratings are eligible for 80%, 60% and 40% respectively. Enterprise
achieving poor rating will not be eligible for PRP irrespective of the
profitability of the CPSE.
The next important pre-requisite seeks the CPSEs adopt "Bell
Curve Approach" in grading executives so that not more than 10% to
15% executives are graded as "outstanding / excellent".
Similarly, 10% of the executives should also be graded as "Below
Par".
All the enterprises are also required to constitute a remuneration
committee headed by an Independent Director. Enterprise without
Independent Directors on their board will not be eligible for PRP.
Remuneration committee will decide the annual bonus/ variable pay pool
policy for the executives and non-unionized supervisors, within the
prescribed limits. In view of the above pre-requisite of implementing of
a robust and transparent performance management system to pay PRP is
compulsory.
The Indian PRP Experience
Variable pay for government employees has been recommended and
accepted for the first time through the Sixth pay revision for
government employees proposing for the introduction of performance
linked pay scheme. Maheshwari & Singh(2010) have studied the
organizational readiness for PRP. In case of CPSEs, the 2nd pay revision
for executives and non unionized supervisors of CPSEs accepted by the
cabinet on 26th December, 2008 has recommended and accepted for PRP and
eventually grading of employee using a bell curve approach.
A Few CPSEs such as National Thermal Power Corporation (NTPC),
Indian Oil Corporation (IOCL), The Shipping Corporation of India Limited
(SCIL) and Bharat Heavy Electricals Limited (BHEL) have already been
using the concept of performance linked pay scheme for many of their
projects before the 2nd pay revision. Project Construction Incentive
Scheme of National Thermal Power Corporation (NTPC) for Barh (3 x 660
MW) Plant has been successfully implementing performance related
incentive schemes for some time. The incentive plan decided for the Barh
project was group based in order to foster team spirit and create a
cohesive environment essential for producing quick results. The NTPC
experience shows that productivity rise is the highest when all direct
and indirect employees are integrated in an incentive scheme which leads
to collective collaboration. A set of targets was mutually agreed upon
for the grant of incentives on the Barh project which comprised major
milestones that NTPC wanted to achieve in a given time-frame. Project
incentives (PI) were also coupled with generation incentives to
incentivize the start of generation and achieve efficiencies in
generation.
The entitlement was as per categories of employees. The overall
limit to PI was capped at 25% of the annual basic pay. However,
additional performance related incentives were given in the form of
extra incentive payment, if the project was completed ahead of the
planned schedule. Thus, if the project was completed one month before
schedule, PI cap was raised to 26.25% of the basic pay, and to 27.50% of
the basic pay if the project was completed two months ahead of schedule.
Indian Oil Corporation operates two schemes i.e. the Productivity
Incentive Scheme (PIS) and Performance Linked Incentive (PLI). Bharat
Heavy Electricals Limited has introduced the Plant Performance Payment
Scheme (PPPS) and Performance Linked Incentive Scheme. The BHEL PPPS was
introduced during 1973-74 to rationalize and replace the diverse
production incentive schemes prevalent in the various units. The
Shipping Corporation of India Limited had a scheme that covered all
shore based employees of SCI and is administered on the basis of
organization's performance and individual measure. The scheme
covers all shore based employees of SCI and is administered on the basis
of organization's performance and individual measure.
There is a great need for systematic evaluation of PRP schemes, and
of incentive pay systems more widely. Our current understanding is based
on a rather small number of studies that have sought to measure the
effects of PRP systematically. We know even less about the articulation
between organizational performance objectives and those of individual
employees, and to what extent the systems of integrated targets can
improve or reshape performance.
Research Gaps & Objectives
From the literature, it is obvious that the use of PRP as an
integral part of the compensation is growing across the world. There is
a small but growing empirical research on the implementation of PRP in
public sector across the globe and especially in OECD countries. There
are a number of studies on PRP implantation and impact in public sector
in OECD countries (World Bank, 1999; OECD, 2005; Kiragu & Mukandala,
2003; Cardona, 2007; Hasnain et al, 2012; Strasberg, 2010). There is
lack of empirical research in this area in the Indian context. Among the
very few exhaustive works is an IIM report (2008) on performance pay in
public sector. There is lack of empirical research on performance
related pay implementation and impact in CPSEs in India. The objectives
of this paper are to study as to how is PRP perceived by the executives
of CPSEs in India and identify implementation difficulties.
Methodology of the Study
In order to study the perception of executives of CPSEs in India, a
survey was conducted in select CPSEs in India namely, NMDC Ltd., Power
Grid Corporation of India Ltd, NTPC (National Thermal Power
Corporation), ECIL (Electronic Corporation of India Limited), Rastriya
Ispat Nigam Limited (RINL) and BDL (Bharat Dynamics Limited). The study
covered all cadres of officers (lower, middle and senior level).
Although no sector specific limits have been identified for the study as
many as 155 executives were surveyed to know about their perception
towards PRP based on a structured questionnaire. The response rate was
60%.The Convenience sampling technique was used and the data was
collected during the period of July 2012 to December 2012. Basic
descriptive statistics have been used to represent the data col lected.
There were 12 statements that were posed to the executives of CPSEs
below board level and the responses are summarized in Table 1.
It is clearly evident that a good percentage of executives agreed
to have a transparent and robust PMS along with an agreement on KRA/KPAS
being set mutually and also KRAs/KPAs being challenging and objective.
Good percentage agreed that their performance is rewarded and the
grading systems in their organizations differentiate performers from
non-performers. A large percentage of employees are satisfied with the
way PMS and PRP is implemented in their organizations.
Satisfaction towards PMS has been an objective, transparent and
robust indicator. However, organizations cannot successfully implement
PRP practices in their organizations, and it is the most important
prerequisite.
The other important evidence from the data which calls for some
serious action from the management is regarding the need for more
information towards the newly implemented PMS and PRP systems. That a
considerable percentage of executives have expressed a neutral response
should be a cause of concern to their organizations. These organizations
need to communicate as well as educate the advantage and benefits of the
new system as well as take initiatives towards institutionalization of
these newly implemented systems by the employees.
Challenges of Implementation
1. Communicating the PRP practices:
PRP design is only part of the problem because the efficacy of a
program also depends on the quality of implementation, and managers
often underestimate the challenges associated with execution. One
continuing challenge has to do with communication about how the program
works and what is required to achieve rewards. From the present study,
it is clearly found that a significant 28.7 percentage of the
respondents have neutral opinion, one of the reasons could be lack of
information. Organizations need to invest more time to communicate and
help employees understand the reasons for it and how it was designed to
work.
2. Training of reviewing officer: An other problem that often
receives insufficient attention is the match between current managerial
skills and the skills necessary to effectively implement performance
related pay program. Such programs require managers to mutually set
KPAs/ KRAs, rate employees and deliver critical feedback. Organizations
often fail to assess what new skills will be needed and to provide
appropriate training prior to implementing performance related pay. Thus
reviewing officers need sufficient training and sensitization before
implementation of such program.
3. Issues of transparency and fairness: It is widely believed that
the performance of public sector can be improved by differentiating
between high performers and low performers. Differentially rewarding
employees according to performance becomes a powerful tool to enhance
public sector performance. The above assertions have been validated
empirically by different studies conducted by independent researchers
and institutions like the World Bank and OECD and also cited in
literature. There are also number of instances where performance
measurement systems have failed to provide desired results and have been
reduced to another mechanical, form filling activity. India's own
case of ACRs (Annual Confidential Reports) has been one of the clear
examples, which has eventually failed to distinguish between performers
and nonperformers.
PRP practices are implemented with the idea of differentiating
talent with the objective of rewarding performance. In a system which
follows a bell curve approach, the very basis of differentiating should
be based on a system which is transparent and fair. Hence it has to be
based on a transparent and robust PMS.
Conclusion & Scope for Future Study
PRP should be designed taking into consideration the management
physilopohy towards attraction and retention of talent as the very
culture of the organization. Implementation of PRP in public sector is a
great challenge. But the task of implementation can be made effective if
performance -related pay is based on a well designed, holistic,
transparent and robust performance management system. PRP system should
be implemented with the involvement of employees at all levels, bringing
in a system of mutual goal setting and how they can be achieved,
incorporating periodic follow-ups throughout the year and ensuring
consistent ratings across the organizations. Performance-related pay
impacts in terms of improved performance and in the form of bringing in
desired change in employee behavior will result only if managers can
develop a spirit of fairness in linking performance measures and pay and
also developing confidence in the system that performance will lead to
desired outcome. There is a tremendous scope for future research In
terms of studying the impact of PRP on executives. A framework can be
developed to measure the impact of PRP in organizations to understand
whether it is fulfilling the very objectives for which PRP is
implemented in organizations.
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Punam Singh (E-mail:punamsingh @ipeindia.org) is Asst Professor,
Institute of Public Enterprise, Hyderabad. R K Mishra (E-mail:
rkmishra@ipeindia.org) is Director & Sr. Professor in the same
Institute.
Table 1 Perception of Executives Regarding PRP in Select CPSEs in
India (%)
Strongly Disagree Neither
disagree agree nor
disagree
Performance is adequately 7.2 15.8 25
rewarded in my organization
My organization has a 7.3 14 29.3
transparent Performance
Management System (PMS)
My organization has a robust 9.4 61.1 34.9
PMS
The PMS is developmental in 3.4 14.2 29.1
nature
KPAs (Key Performance Areas) / 4.9 12.6 25.9
KRAs (key result areas) are
set by mutual consent of me
and my reporting officer
Performance measures are 4.7 13.4 23.5
reasonable
Performance measures are 3.4 11 28.8
objective
KRAs/KPAs are challenging 3.4 10.3 36.3
Grading System differentiates 5.4 12.1 33.6
performers to non- performers
Introduction of PRP has 5.3 15.2 28.5
motivated me to perform better
I am Satisfied with the PMS of 8 15.3 25.3
the organization
I am satisfied the way PRP is 9.3 15.2 25.2
implemented in my organization
Agree Strongly
agree
Performance is adequately 40.1 11.8
rewarded in my organization
My organization has a 40.7 8.7
transparent Performance
Management System (PMS)
My organization has a robust 33.6 6
PMS
The PMS is developmental in 48.6 4.7
nature
KPAs (Key Performance Areas) / 43.4 13.3
KRAs (key result areas) are
set by mutual consent of me
and my reporting officer
Performance measures are 50.3 8.1
reasonable
Performance measures are 49.3 7.5
objective
KRAs/KPAs are challenging 38.4 11.6
Grading System differentiates 39.6 9.4
performers to non- performers
Introduction of PRP has 38.4 12.6
motivated me to perform better
I am Satisfied with the PMS of 44 7.3
the organization
I am satisfied the way PRP is 41.1 9.3
implemented in my organization