Performance Management and Appraisal Project - JUSCO

Adarsh Gopi (H12062) Aditya Khokhar (H12063) Akanksha Jain (H12064) Amey Joshi (H12065) Anabel Benjamin Bara (FH12001)

Organization Background & Inception

Carved out of Tata Steel from its Town Services Division in 2004 Today Jusco is Indias only comprehensive urban infrastructure service provider Its services include water, power, infrastructure, public health and horticulture services JUSCO works alongside civic bodies, large and small industries, local government bodies, communities Nature of business carried in Jamshedpur
JUSCO range of services covers operations & maintenance of the entire water cycle, conveyance, and distribution JUSCO integrates this services with capabilities such as asset management activities, GIS, billing, collection and Non-Revenue Water reduction programs

Organization Structure
Since inception JUSCO had different divisions/departments with their respective Executive Heads: 11 departments in total
However managing these departments altogether became difficult Therefore these departments were restructured and merged into five different departments in order to bring synergies and coordination in their activities
MANAGING DIRECTOR

CHIEF EDUCATION

CFO

COMPANY SECRETARY

GM (BD & CS)

GM (WD)

GM (PSD)

GM (HR & IR)

GM (JTS)

BD & CS - Business Development & Corporate Service division WD - Water and Waste Water division PSD - Power Service division HR & IR - Human Resource & IR division JTS - Jamshedpur Town Services division

Major Services Offered

Water and Waste Water
Operation and Maintenance of Water Treatment Plants Sewage Treatment Plants & distribution networks. Build new Water Treatment Plant and Sewage Treatment Plant on EPC or BOOT basis. Technical and Management support to improve performance of the Water Treatment Plants, Sewage Treatment Plants and Distribution Systems. Customer support services including call centre facilities for prompt handling of complaints.

Power Distribution
Jusco uses its experience and expertise to ensure that the overall level of AT&C losses in Jamshedpur distribution system remains at about 8% against about 24% of other distributors

The Power Services Division holds two licenses for the purchase, sale and distribution of electricity; augmenting and maintaining the power distribution infrastructure

Major Services Offered

Engineering and Constructions
Building and Industrial Construction
Geared to provide EPC Services as well as exclusive construction solutions for Residential/ Commercial/ Industrial/ Recreational requirements

Road Construction and Maintenance facilitating economic growth Design and Planning Consultancy
Understanding and delivering the physical planning, architectural and structural needs of modern townships

Township Management solutions for Indias urban growth & development

Municipal Solid Waste & Public Health

JUSCO has put in place the expertise and skills to strategies, devise and design the blueprint for excellent Waste management for the city of Jamshedpur.

It adheres to the MSW-Management & handling Rules 2000 were enacted with obligatory requirements for improvement in MSW management infrastructure in cities across the country

PMS at Jusco
JUSCOs PMS can be classified into two parts: For executives and
Officers, & For non-officers

Performance of officers
It is measured at an individual level and targets are mutually decided between he officer and immediate superior JUSCO has adopted the PMS for officers based on the Ensuring Development and growth of Employees (EDGE) framework The process begins with finalization of corporate BSC, which is cascaded through business/functional BSCs to KRAs of each officer through the KPM tree Goal setting happens through a dialogue with the superior The process involves target setting against cascade measures and initiatives, signing performance contracts, deciding PDP, mid-year review, end year appraisal and Talent review and Feedback

PMS at Jusco: Performance of Officers

KRAs Defined
KRA Measures
Customer Customer Satisfaction Survey Score (CSSC) MOU Compliance Reduction of grievance escalated by customers Management of assets to reduce duplication and reduce cost of purchasing new assets Settlement of Insurance claims Proper Statutory Compliance (i.e. renewal of licenses/registration etc.) Ensuring general administrative functions for smooth operation of daily activities both in JSR and Projects Proper Management of inventory for assets like PCs, Laptops, Furniture etc. Liaison with govt. officials, legal bodies, social organizations, local security and administrative officials Ensuring at least one project as a part of OJT for the team with proper coaching and guidance. Reduction in use of consumable and convert

Weights

Targets
CSSC> 4 (5pt scale) 90% Reduction by 10% Reduction of cost by 10% 100% compliance within stipulated dates 100% support to other departments Allocation of Pcs., Laptops, Furniture within 3 days of requisition. Regular meeting with the govt. officials to build rapport and smooth operations. 1 OJT project for each team members Reduction by 12% w.r.t.. FY12

Finance

Internal Business Process

People Development Special Projects

PMS at Jusco: Performance of Officers

KRA Weights for different Grades and Departments

Column1 E1/E1B E2 E3 Finance 25 20 15 Customer 25 25 20 Internal Business 15 20 30 People Development 25 25 20 Special project 10 10 15 100 100 100

E4 10 20 45

E5 5 20 55

E6 5 20 55

O 0 15 65

10 10 10 10 15 10 10 10 100 100 100 100

E1 - GMs E1B- DGMs E2 - Chiefs E3 - Senior managers (Head of department) E4 - Manager E5 - Deputy manager O - Officer

Steps Involved
1. Weights are defined for 5 different performance measures 2. The supervisor and employees set certain KRA measures and accordingly a final rating is arrived at 3. Now the supervisor presents the case of the employee under him to the talent Review team 4. The final rating is normalized to fit the bell curve.

PMS for non-executives

For unionized employees, performance assessment happens through achievements of KPI targets of bonus agreement
Annual bonus is paid to non-officers on the basis of performance against KPI targets in the bonus agreement, which includes service delivery parameters

Performance Management Problems

1..Subjectivity in the Rating System
Target selection process Rating Awarding Methodology Highly dependent on the supervisors impression of the employee 2.Geographical Diversity Same performance evaluation systems for different locations 3.Potential Assessment The supervisor again identifies this 4.The KRAs The KRAs in most cases are decidedly vague and sometimes have no relevance at all

Organizational Problems
Managing surplus manpower Volatile industry
14-15% attrition at the mid to senior management level

How to communicate to line managers

Recommendations
Normalization of rating according to geographies Objective measures (as proposed by us) are used to arrive at a rating of the employee and then only normalization through bell curve occurs. Sufficient time given to set KRAs. They should be in line with organizational objectives

Metrics Development
JUSCO is a utility service that also undertakes major projects all across India

Metrics for:
Projects Services

Metrics Development: Projects

Projects: The idea above is that these KPIs can be used at a project level (probably for the executives/managers of the project) as these are objective measures and will critically monitor he progress of the project.
CSF KPI
Cost Budget Utilization keeping in mind the % of money utilized vs. money allotted. agreed profit norms of the project Adherence to agreed profit norms. Quality Collection Efficiency % efficiency Adherence to the construction Cost of rework parameters as agreed in the Contract.

Time Adherence to milestone achievements Adherence to execution plan as per execution plan.
Safety Adherence to safety standards is Lost time injury frequency project sites.

Metrics Development: Projects

For the workers, adhering to SOPs is important Instead of only a completion date, identify milestones for the project. Create a Work breakdown Structure and assign a process owner to each process. (Start Date, and End Date,% Completed etc.)

Metrics Development: Services

Input Indicators
Economic Indicator Efficiency Indicator

Output Indicators
These are the indicators that measure the quality as well as the impact of the products in terms of the achievement of the overall objectives
In terms of quality, they measure whether the products meet the set standards in terms of the perceptions of the beneficiaries of the service rendered

Removed Subjectivity
For example, this rating system is for the Budget Utilization metric

Budget Utilization (Finance) Less than 0.6 or greater than 1.4 0.6-0.7 or 1.3-1.4

Rating 1 2

0.7-0.8 or 1.2-1.3
0.8-0.9 or 1.1-1.2 0.9-1.1

3
4 5