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WHAT IS KRA ?

Key Result Areas or KRAs refer to general areas of


outputs or outcomes for which the departments role is
responsible.
Key Result Area in simple Terms may be defined as
Primary responsibilities of an Individual, the core
area which each person is accountable for.

Key Results Areas enables you to take ownership of


your job and to accept responsibility for those areas in
which achieving results are your responsibility.

Importance of KRAs.
Set goals and objectives
Prioritize their activities, and therefore improve their
time/work management
Clarify roles of department or individual

Focus on results rather than activities


Align their roles to the organizations business or
strategic plan
Promote an environment of self-management.

DETERMINANTS OF KRA

VISION STATEMENT
MISSION STATEMENT
CORPORATE OBJECTIVES
*CORPORATE STRATEGY
*CORPORATE BUSINESS
UNITS/
DEPARTMENTAL
PLANS/STRATEGY.

Specific

Measur
able

SMART

Achiev
able

Relevant

Time
Bound

Present scenario of appraisal system


in POWERGRID
Traditional way of maintaining appraisal
system
E1 to E3 Filled at the end of the calendar year.
Part I Self Appraisal by Appraisee
- Main Responsibilities and task accomplished
- Major Achievements
- Task Assigned but not completed and reasons
thereof
Part II Reporting officer
- Brief comment by reporting officer after discussion with
the apparisee.
- Brief comment on apparaisees job knowledge, cost
consciousness, initiative, communication skills and
commendable work done in Hindi
- Integrity assessment

E4 & E5 Filled at the end of the calendar year.


Part I Self Appraisal by Appraisee
- Main Responsibilities and task accomplished
- Major Achievements
- Task Assigned but not completed and reasons thereof
Part II Reporting officer
- Brief comment by reporting officer after discussion with
the apparisee.
- Brief comment on apparaisees job knowledge, cost
consciousness, initiative, communication skills and
commendable work done in Hindi
- Assessment of managerial traits such as organizing
ability, team effectiveness, cost effectiveness,
development of subordinates and judgment.
- Integrity assessment

E6 /E7/E7A - Appraisal Period Financial year


Part IA Performance Planning & Review
- Targets/ Key Result Areas for the year to be filled in by
the appraisee after discussion with Reporting officer.

Part IB Review Discussion 1st Half


- Targets /KRAs assigned and filled.
- Brief record of discussion of the reporting officer with
the appraisee.
Part IC Review Discussion 2nd Half
- Targets /KRAs assigned and filled.
- Brief record of discussion of the reporting
officer with the appraisee
Part II Executive Abilities
- Assessment on 10 parameters such as Job
Knowledge, Organizing Ability, Cost Effectiveness,
Team Effectiveness, Initiative, Judgment,
Development of Subordinates, Commendable work
done in Hindi and Peer Relationship.
- Integrity assessment

Management objective for different


appraisal formats for different levels
E1 to E3 Operational level executives
E4 & E5 Managerial cadre heading sections
within Department.
E6 to E7A Middle Managerial cadre

Use of Performance management system


- Clarity of expectations and responsibilities of the

employee.
- Review the performance of the employees over a
given period of time.
- Assess the gap between the actual and the desired
performance.
- Identify training and development needs of the future.
-Provide information to assist in the HR decisions like
promotions, transfers etc.
- To reduce the grievances of the employees.
- Helps to strengthen the relationship and
communication between superior subordinates and
management employees.

Need for Changing to a new system


To objectively provide for performance planning,
target setting and measurement.

To promote performance feedback to all executives,


with the objective of improving their performance.
Have Individual Target Alignment with
organizational MOU.
Make PMS as a business tool for appraisers to
manage performance of their team.
Link the reward system to Performance as suggested
in the Pay Commission Report.
Bring about efficiency in administration of the
Performance Management System (e-PMS).

The pay revision circular has directed


that all the CPSEs should develop a robust
and transparent Performance Management
System. CPSEs would adopt Bell Curve
Approach in grading the officers so that
not more than 10% to 15% executives are
Outstanding/Excellent. Similarly, 10% of
executives should be graded as Below Par.
The Sixth pay Commission report
also suggested adoption of Balance
Scored Card to determine the eligibility
of PRP for each Executive.

PMS in other PSUs


To have a better understanding of industry practice in

PMS, we visited NTPC, NHPC, IOCL and BHEL to see


and understand their system and also held detailed
discussion regarding designing, implementing and
running a forward looking PMS.
It was concluded from all the above meetings that all

these organizations today have KRA system. IOCL and


BHEL have e-enabled their Performance Management
System. KRAs have to be set after mutual discussion
between Appraiser and apraisee.
All the oragnisations have conducted extensive work
shop and training for making KRA directory and making
the new PMS acceptable in the organizations.

Introducing
New Performance
Management System
in POWERGRID

All the Executive in the organization has


been divided into THREE JOB CLUSTERS
E1 to E5
E6/E7/E7A
E8 & E9

- Cluster I
- Cluster II
- Cluster III

These job clusters have been finalized by IE


Group during Competency Mapping exercise
The new PMS is applicable to first two job
clusters
No Change has been made in the E8 & E9
PMS
The New Appraisal formats in the New
PMS has been approved by the Board of
Directors.

The New Appraisal formats have the following


features:Part I PERFORMANCE, Part - A.pdf, Part - B.pdf
- KRA has to be set with measurable targets
- KRA has to be aligned with MOU targets.
- KRA to be set after mutual discussion
between Appraiser and appraisee.
- KRA to be reviewed bi-annually
- Performance Review sheet shall be filled at
the end of Appraisal Period which shall
include need for training and development.
Part II Competencies (E1toE5), (E6toE7A)
- All the Executives shall be assessed of 9
competencies identified for various job
cluster.
- Appraiser shall rate the appraisee on a scale
of 1 to 5 on competencies

Part III VALUES (E1 to E5), (E6 to E7A)


- The values for all the job cluster is same.
- Appraiser shall rate the appraisee on a scale of
1 to 5 on values
Part IV POTENTIAL APPRAISAL (E1to E5), (E6to E7A)
- All the Executives shall be assessed on 5
potential appraisal attributes
- Potential Appraisal attributes shall differ as per
the job cluster
- Appraiser shall rate the appraisee on a scale of
1 to 5 on values potential appraisal attributes

Marking System in the Appraisal


formats
Appraisal Parameters

E1 to E5

E6 to E7A

Performance

75

65

Competencies

15

15

Values

05

10

Potential

05

10

Total

100

100

COMPETENCIES
CompetenciesE6-E7A.doc

CompetenciesE1-5.doc.

1. Business Environment

1. Business Knowledge:

2. Profession Specific Knowledge:

2. Profession Specific Knowledge:

3. Decision Making

3. Decision Making

4. Planning & Coordination

4. Planning & Coordination

5. Systematic Thinking

5. Problem Solving

6. Learning Orientation

6. Collaboration & Networking

7. Result Orientation

7. Accountability

8. Leadership

8. Drive & Initiative

9. Team Player

9. Team Player

POTENTIAL APPRAISAL
E6/E7/E7A

E1/E2/E2A/E3/E4/E5

1. Inspire People

1. Leadership Abilities

2. Team Building

2 Business Sense

3. Ability to build a Strategic


Vision

3. Foresight

4. Business Sense

4. Innovation

5. Coaching

5. Trust and Respect

Expectation from the New


PMS
Target setting at all executive levels
Cascading of MOU to the lower levels to

achieve optimum performance


To provide objective assessment.
Clarity in the beginning itself as to what is
expected.
Performance feedback to all
Help in the overall achievement of Organization
Goal
Bring about efficiency in administration of the
Performance Management System by
implementing e-PMS

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