Key Result Areas” or KRAs refer to general areas of outputs or outcomes for which the department’s 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. WHAT IS KRA ? 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 organization’s business or strategic plan Promote an environment of self-management.

VISION STATEMENTMISSION STATEMENTCORPORATE OBJECTIVES*CORPORATE STRATEGY *CORPORATE BUSINESS UNITS/ DEPARTMENTAL PLANS/STRATEGY. DETERMINANTS OF KRA

Specific Measur able Achiev able Relevant Time Bound SMART

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 apparaisee’s 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 apparaisee’s 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 – 1 st Half - Targets /KRAs assigned and filled. - Brief record of discussion of the reporting officer with the appraisee. Part –IC – Review Discussion – 2 nd 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. KRA’s 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 - Cluster I E6/E7/E7A- Cluster II E8 & E9- Cluster III 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. These job clusters have been finalized by IE Group during Competency Mapping exercise

The New Appraisal formats have the following features:- Part –I PERFORMANCE, Part - A.pdf, Part - B.pdfPart - A.pdfPart - 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)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)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)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 Performance7565 Competencies1515 Values0510 Potential0510 Total100100

COMPETENCIES CompetenciesE6-E7A.docCompetenciesE1-5.doc. 1. Business Environment1. Business Knowledge: 2. Profession Specific Knowledge: 3. Decision Making 4. Planning & Coordination 5. Systematic Thinking5. Problem Solving 6. Learning Orientation6. Collaboration & Networking 7. Result Orientation7. Accountability 8. Leadership8. Drive & Initiative 9. Team Player

POTENTIAL APPRAISAL E6/E7/E7AE1/E2/E2A/E3/E4/E5 1. Inspire People1. Leadership Abilities 2. Team Building2 Business Sense 3. Ability to build a Strategic Vision 3. Foresight 4. Business Sense4. Innovation 5. Coaching5. 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