Performance Management

System
South Eastern Coalfields Ltd

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 SECL- a Profile

 SECL is the largest Miniratna subsidiary of Coal India Ltd,

Corporate Head quarter at Bilaspur (CG)
 It is the largest coal producing company in India.
 SECL meets 17% of Nation’s primary energy demand and
caters to 22% of Nation’s coal requirement.
 Since its formation in 1986 , SECL attained a sustained growth
from a level of 36.15 million tonnes to 112.705 million tonnes
in 2010-11.
 MOU Performance Rating of SECL for the last three years is
“EXCELLENT”.
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 SECL- a Profile
 PBT for 2010-11 increased to Rs.3777.12 Crs. compared to Rs.
3063.57 Crs. in the previous year

 It operates through 13 administrative Areas in Chhattisgarh &

Madhya Pradesh; Total 93 Coal Mines

MINES CG MP Total

UG 41 28 69
OC 14 09 23
MIXED 01 00 01
Total 56 37 93
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 SECL- a Profile

Year Production off PBT Manpower Productivity

take (OMS)
2005-06 83.02 81.202 1286.12 85871 4.19

2006-07 88.502 86.1 1777.83 84368 4.53

2007-08 93.791 95.15 2067.37 82782 4.83

2008-09 101.15 103.2 1817.93 81434 5.26

2009-10 108.07 105.89 3063.57 79781 5.96

2010-11 112.705 109.2 3777.12 78609 6.47

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 SECL- a Profile

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 SECL- a Profile

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 SECL- a Profile

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 Vision of SECL

“The Vision of South Eastern Coalfields

Limited is to be the leading energy supplier in
the country by adopting the best practices and
contemporary technology from mine to
market.”

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 We integrate the Mission of CIL

“Produce and market the planned quantity

of coal and coal products efficiently and
economically with due regard to safety,
conservation & quality.”

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 PMS in SECL

Objectives

1. Performance Improvement
2. Performance Assessment
3. Development Need Assessment

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 PMS in SECL

The Process

 Goal Setting
 Performance Review – Quarterly
 Performance Assessment
 Development Assessment
 Performance based benefits

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 PMS in
SECL

Goal Setting
Nurturing Participative Culture

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 PMS in SECL
The Process
1. Goal setting : at Corporate Level
o SECL derives its Goals from CIL through MOU
o Key Goal areas included in the MOU:
Financial Parameters
Quality & Customer Satisfaction
Human Resource Development
R & D/ New Initiative
Project Implementation
Corporate Social Responsibilities
Corporate Governance
Production /off-take/safety
Sustainable Development
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 PMS in SECL
The Process

Goal setting : at Corporate Level

o Preparation of Annual Plan for each Mine by Area

Teams by January
o Capacity assessment of Units by IED / CMPDIL in
February
o Specific goal assignment to Areas as per Annual Plan
through Joint consultation with Area Team by the end
of February

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 PMS in SECL
The Process

Goal setting : at Area level

 Specific Target assignment for each mines &

departments through Joint Consultation by the Area
Team and Project Teams

 Support services to the Project & Resource

allocations are also decided at the meeting.

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 PMS in SECL
The Process

Goal setting : at Individual level

 Identification of Key Performance Area for each

Executives

 Preparation of Task Assigned & Accepted

Document [TAAD] for each Executive in the month
of March in consultation with the Executive
concerned by his Reporting Officer.

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 PMS in
SECL
The Process

Performance Review
Improvement through continuous feedback

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 PMS in SECL
The Process

Performance Review: at Corporate Level

 Firstweek of every Month with Area Team

 Goals revised as needed
 Assistance/Resources reallocated as needed
 Appreciations to leading performers
 Counseling to the below par achievers

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 PMS in SECL
The Process

Performance Review: at Area Level

 Firstweek of every Month with Project Team

 Goals revised as decided at the Corporate meeting
 Assistance/Resources reallocated as needed
 Appreciations to leading performers
 Counseling to the below par achievers

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 PMS in SECL
The Process

Performance Review: at Individual Level

 Performance Counseling meeting held with each

Executive at the end of every Quarter by the Reporting
Officer

 Quarterly Performance on KPA as per TAAD,

Development areas, Exposure, Training Needs etc are
discussed at the meeting and recorded

 Thrust areas for subsequent Quarter are shared

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 PMS in SECL
The Process

Performance Evaluation
Fostering Superior Performance

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 PMS in SECL
The Process

Performance Evaluation: Corporate level

 Performance assessed as per MOU parameters

 Company is rated based on the DPE guidelines as

“Excellent”, “Very Good”, “Good”, “Fair” and
“Poor”

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 PMS in SECL
The Process

Performance Evaluation: Area Level

 Performance of each Units and Area as a whole are

assessed on various parameters :

Productivity; Quality; Quantity; Development; Cost;

Safety; Industrial Relations; Welfare; Asset
Management, Innovation; etc.

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 PMS in SECL
The Process

Performance Evaluation: Individual Level

 Self Evaluation by Executives on KPA performance

for the Year.
 First Level Review by Reporting officer
 Second Level Review by Head of the Department
 Third Level Review by Area GM
 Final Review by the Concerned Director/CMD

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 PMS in SECL
The Process

Performance Grading
• For officers up to E7 grade, the task performed per TAAD
carry 60 marks.
• Other qualities such as the professional & technical skills;
Managerial skills; Planning; Environment and Man
Management carry 40 marks.
• Grading is given to identify different levels of performance

Grading Marks
Excellent 85 - 100
Commendable 60 - 84
Adequate 41 - 59
Inadequate 40 & below
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 PMS in SECL
The Process

Development Need Assessment

Excellence through People Development

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 Generic Competencies PMS in SECL

1.Professional & Technical

Skills 4. Managerial Competencies

Knowledge Leadership/Team Building

Application Commitment
Communications
2. Planning
Delegations
3. Environment & Man Inter-disciplinary Perception
Management Decision making
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 PMS in SECL

Benefits
Implementing Strategy by linking Benefits to
Performance

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 Linking Benefits with Performance

P
E
R
F
O
R
Benefits
M
E
N
C
E

•Public
Recognition
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 PMS in
SECL

 Performance Related Pay [PRP]

 Performance of the company as per MOU

 Performance of the Executive concerned,
 Grade of executives
 Available PBT
 Incremental Profit

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 PRP

O.M. dated 26.11.2008 stipulates that:

a) 60% of PRP will be given with the ceiling of 3% of PBT;
b) 40% of PRP will come from 10% of incremental profit;
c) The total PRP limit will be 5% of the years’ PBT;
d) For 2007-08 amount available will be 3% of PBT;
e) PRP scheme will begin from financial 2007-08 and there will
be no incremental profit, this being the first year of
introduction of PRP.

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 PRP Available for SECL

Rs in Crs
year Profit Before Tax Available PRP
2007-08 2067.37 51.33
2008-09 1817.93 35.44
2009-10 3063.57 91.68
2010-11 3777.12 90.99

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 Executive Evaluation Report [EER]]

To be filled by appraisee as per Reporting 1st Review 2nd

TAAD Officer Review
(i) Key Tasks Achievement % Assessment % Comment Comment

(ii) Constraints
(iii) Effort made to
overcome constraints
(iv) Strength/ Quality
(v) Improvement/
Assistance Areas
Final achievement (%-
age)
Points obtained out of 60

(Appraisee) (Appraisor) (Appraisor) (Appraisor)

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 EER FORMAT-Personal Qualities

Scale : Marks for each quality Reporting 1st Level 2nd Level
E7 & below 10+15+5+10 Officer Review Review
1. Professional & Technical Skills
(a) Knowledge
(b) Application
2. Managerial Skills
(a)Leadership/Team Building
(b)Commitment
(c)Communications
(d)Delegations
(e)Inter-disciplinary Perception
(f)Decision making
3. Planning
4. Environment & Man Management
Final achievement (%-age)
Points obtained out of 40
(Appraisor) (Appraisor) (Appraisor)
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 EER FORMAT-Training &
Development needs
Training & Development needs Reporting 1st Level 2nd Level
Officer Review Review
1. Needs Development Training
(Specific Areas)
2. May be considered for wider
exposures (Specific Areas)
3. Training / Development Areas
4. Needs Enriched Job

(Appraisor) (Appraisor) (Appraisor)

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 EER FORMAT- Assessment
a) Reporting Officer :Comments –

Grading Excellent Commendabl Adequate Inadequate

e
85-100 60-84 41-59 40 & below

b) Review by 1st Level : Comments –

Grading Excellent Commendabl Adequate Inadequate

e

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 EER FORMAT- Assessment
c) Review by 2nd Level Comments –

Grading Excellent Commendabl Adequate Inadequate

e

d) Review by Functional Head :Comments –

Grading Excellent Commendabl Adequate Inadequate

e

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 EER FORMAT- Assessment

e) Review by 3rd Level

In case of Excellent/Inadequate and/or
any difference of opinion between 1st &
2nd Level Review
Comments –

Grading Excellent Commendable Adequate Inadequate

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 Assessment E8 & E9 Grade

• Performance & Potential of Senior Level Executives are

assessed on the basis of:
 Performance
 Leadership Competencies
 Values
 Potential
• Rating on 4 point scale and final rating on the marks
obtained .

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 Assessment E8 & E9 Grade

 50% marks for key performance areas [25% each for

mid year review and year end review]
 20% marks for competencies .[Business Management
Knowledge , Profession Specific Knowledge, Making Business
Decision, Vision etc.]
 15% marks for Values [demonstrated in day to day
activities.]
 15% marks for Generic Attributes .[Leadership
Abilities, Team Building, Business Sense, Communication Skill
and ability build a Strategic Vision.]
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 Assessment E8 & E9 Grade

Grading Excellent Commendable Adequate Inadequate

85-100 60-84 41-59 40 & below

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 Balanced Score Card based PMS

A Strategic HR consulting and change Management firm

has been appointed as Consultant for designing and
implementing a Balanced Score Card based Performance
Management System (PMS).

The Balanced Score Card based PMS is likely to be

implemented from the assessment year 2011-12

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 PMS in SECL

Thanks

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