Performance-based incentive scheme now on a voluntary basis

The department of science and technology (DST) that took the lead in formulating a performance-related incentive scheme for research organizations it funds, now plans to implement the scheme on a voluntary basis because some beneficiary organizations are still not convinced of the efficacy of the scheme.The dept of science and technology proposes to scrap annual confidential reports

The Sixth Pay Commission had carried out a study through the Indian Institute of Management, Ahmedabad, on a performance-based incentive system, to ostensibly improve the performance outputs of Central government employees.

The study, according to the official website of the pay commission, was aimed at working out a model whereby a base salary is attached to each post based on skills and responsibility and simultaneously, a second component would be payable over and above the salary on the basis of the productivity and performance of employees, either individually or as a group.

The study recommended an annual bonus of up to 20% to employees whose achievements exceed certain targets, which has been accepted by the cabinet.
The government has also given in-principle approval to contractual postings in government departments of employees hired from private sector.

As reported previously in Mint, a finance ministry official who didn’t wish to be identified had recently said that DST has already moved to put in place an incentive-based system.
“Once DST implements it, we expect there will be pressure on other government departments to follow suit,” this official had added.
“Some people aren’t convinced yet and so we will be implementing this on a voluntary basis,” said a senior official in the ministry of science and technology, who didn’t want to be identified.
DST is the largest funder, excluding the atomic energy and space ministries, of basic research programmes in the country. It is the most important source of funds for nearly 17 autonomous organizations that are working in a range of fields from astronomy to biology.
“But I’m confident that once a few adopt, the rest will come around,” the same official added.

One major change the scheme proposes is to do away with the current annual confidential reports and bring in annual performance management reports.
Here a 12-point criteria matrix would be drawn up, that evaluate criteria such as the number of articles published in peer-reviewed journals, impact factors of the journals, (These measures refer to how often a particular research paper is cited by peers in the field, and the frequency of well-cited research papers appearing in a particular journal) and the quality and impact of new schemes initiated (by scientists on the managerial side).

“One of the measures suggested for annual review is impact factor of a journal, and citation indexes. However, it would be unfair to use the same scale to compare output in veterinary sciences to (that in) nanotechnology, as nanotech is a much hotter field than vet sciences. A good paper on vet sciences will never be highly cited. That’s how the system works,” said a scientist, who didn’t want to be identified given the sensitivity of the issue, at the Wadia Institute of Himalayan Geology, one of the autonomous research institutes funded by the DST.

Another proposal in the scheme that hasn’t gone down well is to have independent experts from other institutions rate scientists, which, the formulators of the scheme say,will help remove bias and infuse transparency in the rating system, said a DST official familiar with discussions on the scheme.

Moreover, the scheme is expected to be budget-neutral, meaning no extra funds will be provided. “Finance committees are extremely tight anyway. So obviously the extra money will come from cuts in laboratory tests, and stricter controls in procuring equipment,” the scientist from the Wadia institute added.

The department currently plans to allot Rs60-70 crore in the first phase, beginning this year.
However, many scientists seem to be receptive of performance incentives, as the only way they can hope for substantial increments is to get promoted.
In government labs, scientist grades vary from A to G, the latter being the highest, and on an average it takes about 20 years to go from A to G.

“I think it would be welcome. Even at F and G, pay hikes are not substantial. There are more perks like allowances for subscribing to journals, and increased funds for attending international conferences,” said Madhavan Rajeevan, a scientist at the Indian Space Research Organisation and formerly with the India Meteorological Department, which follows a pay structure similar to DST.









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Six Steps to Building a Better Performance-Review Process

Not many employees relish being criticized. But performance reviews.evaluating both the positive and negative aspects of an employee's performance.serve many purposes, and are an integral part of every company's HR plan.

Why Conduct Performance Reviews?

The best reason to conduct performance reviews is that they improve communication. Performance reviews enable employees to receive feedback on how well they have been doing their jobs, and to set goals for the next year. At many companies, they also provide a way for employees to assess their managers.

Retention is another related benefit.

"One of the biggest reasons people leave organizations is because of the lack of communication," says Ian Alexander, a vice president of sales and marketing at KnowledgePoint, which sponsors a website, PerformanceReview.com, that helps managers write better reviews faster. "People quit their managers instead of quitting their jobs."

Improved employee performance is another benefit of performance-review programs. A well-designed performance-review program keeps people focused on performance and continuous improvement.

How to Build a Better Performance-Review Program There are six steps your company can take to maximize the benefits it gets from its performance-review program:


Customize the review for each department and job so employees are evaluated by factors that are most relevant to their positions. The more specific the criteria used to evaluate people in specific jobs, the more effective the review will be. Evaluate about five to seven competencies, which might include:

Job knowledge
Leadership
Management ability
Teamwork
Communication
Ethics
Judgment
Problem-solving ability

Consider linking performance to raises or bonuses. Although some companies have been decoupling performance reviews and compensation, linking the two can provide an incentive for employees to improve performance.

Be consistent in format, approach, and ratings throughout the company. For example, if a rating of "five" indicates exemplary performance, a rating of "five" should have the same meaning in every other department in the company.and if it's difficult to earn a "five" in the sales department, it should be equally as difficult to earn a "five" in the IT department.

Be honest. Honest evaluations that note good work as well as poor performance may help deter litigation. A disgruntled employee fired for repeated poor performance may have little ammunition against a company's careful documentation of shoddy work in a wrongful termination case.

Consider 360-degree reviews. Performance reviews can be conducted not only by managers but also by subordinates and peers.
Bryan Robinson, a producer for ABCnews.com, believes in the merit of evaluating supervisors as well as subordinates. "I would favor evaluating bosses or supervisors at least once a year because they need to be evaluated, too. Just like there are a lot of bad employees, there are a lot of bad supervisors," he says.

Before doing this, though, you should determine the costs and benefits of this type of program. While 360-degree reviews can lead to better communication, and a better understanding of which relationships are working in your company and which ones aren't, they can also be very time-consuming and costly.


Emphasize that nothing expressed in a performance review should come as a surprise to anyone involved. In other words, aim to use the performance review as a tool to improve everyday communication between coworkers and between managers and subordinates. As Alexander says, "Performance evaluations are a good vehicle to open lines of communication, but if you're not speaking on a daily basis, the evaluation at the end of the year is not doing anyone any good." - Linda Kim Linda Kim is a writer living in San Francisco.





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