1. WORKSHOP ON Performance Management System & Performance Related Pay
Presentation by NSIC

2. NSIC established in 1955 with the aim to:
NSIC’s MANDATE
NSIC established in 1955 with the aim to:
aid, counsel, assist, finance, protect and promote the interests of MSMEs in India.
NSIC achieves its mandate by:
Devising schemes which are need based and demand driven,
Catering to the requirements of the MSMEs through a judicious blend of `Commercial’ and `Promotional’ activities.
Functioning on self-sustaining basis, with cost recovery in each scheme.

3. NSIC’s SCHEMES MARKETING CREDIT TECHNOLOGY SUPPORT SERVICES
Raw Material Distribution
Registration for Government Purchase
Tender & Consortia Marketing,
Marketing Events
Marketing Intelligence
CREDIT
Credit for Raw Materials & Marketing
Credit facilitation through 15 Banks.
TECHNOLOGY
Training
Material Testing
Job-work
Energy and Environment Audit
SUPPORT SERVICES
Performance and Credit Rating
B2B Portal
Training – cum –Incubation
Software Technology Parks
International Cooperation

4. NSIC’s BRIEF OUTLINE
A self sustaining, profit making, dividend paying company – Dividend being paid since
No budgetary support for its operations since
Mini – Ratna (Category-II) status conferred in
Achieved ‘Excellent’ MOU rating continuously since
‘Nil’ comments received from C&AG on Annual Accounts continuously since
Manpower – 849 in and 896 in

5. NSIC’s BRIEF OUTLINE Training & Redeployment of Manpower.
All offices independent profit centre.
Reach & Volume of Operations multiplied manifold during last few years ( to ):
Total business increased from Rs crore to Rs crore (increase of 407%).
Business per employee increased from Rs crore to Rs crore, (increase of 380%)
Gross Margin increased from Rs crore to Rs crore (increase of 900%),
Gross Income increased from Rs crore to Rs crore
Profit Before Tax increased from Rs 3.00 crore to Rs crore ,

6. Performance Appraisal System in NSIC
MOU signed with each Head at the Field Office, Zonal Office and at Head office outlining the targets for each year.
Targets / work allocations are assigned to each employee at Field Office(s) and Head Office, at the beginning of each Financial year.
Targets / work allocations are also made to all employees engaged in Support Services.
The achievements of the field offices get evaluated on monthly basis by the respective Zonal Head, on quarterly basis by the Directors. A half yearly review is made by the CMD.
Achievements at the end of the year are compared with the targets / work allocations assigned for the year.

7. Performance Appraisal System in NSIC
NSIC adopted new ‘Annual Performance Assessment Report’ (APAR) with effect from
APAR has three segments aggregating to 100 marks viz.
Performance Evaluation (60 marks),
Functional Competencies (20 marks), and
Discipline (20 marks)
Annual Appraisal is linked with the achievements against the targets / work allocation.
Marks obtained against performance in APAR get graded as per details given below:
Marks
Grading
91-100
Excellent
71-90
Very Good
46-70
Good
31-45
Fair
1-30
Inadequate/Poor

8. Performance Appraisal System in NSIC
Performance Evaluation:
made by comparing the achievements against the targets / work allocation.
Functional Competencies:
the achievements w.r.t following are assessed:
Professional Ability and Job Knowledge
Quality of Work
Judgement, Decision Making and Initiative
Organizational Commitment
Discipline:
System Discipline
Personal Conduct
Punctuality and Frequency of Leave
Inter Personal Relations

9. Performance Related Pay (PRP) in NSIC
DPE’s guidelines on PRP followed.
Remuneration Committee of the Board constituted, consisting of three independent Directors.
Headed by an Independent Director.
PRP paid in NSIC from to Executives and in to Executives and Unionized cadres.

10. Details of PBT, PRP, Distributable Profit
(Rs. In Crore)
Financial Year
PBT
3% of PBT
PRP from 3%
Incremental PBT
10% of Col. 6
2% of PBT
PRP from Col. 6
5% PBT
Total PRP
Distributable Profit
Year
Amt. 1 2 3 4 5 6 7 8 9 10 11 12
25.94
0.78
(09-10)
(-)
(08-09)
19.02
1.90
0.52
1.30
3.27
35.17
1.06
(10-11)
9.23
0.92
0.70
1.76
3.97
PRP for and was restricted to Distributable Profit for each of these years.

11. Bell Curve Approach in NSIC
DPE’s guidelines on compliance of ‘Bell Curve Approach’ followed w.e.f
For complying with ‘Bell Curve Approach’, NSIC has taken:
15% of the highest ranked amongst the ‘Excellent’ graded employees, and
10% of the employees have been graded as ‘Poor’.

12. THANK YOU