Suggestions for Seventh pay commission
 | |
| Growth rate with external periodic inflation correction (DA) assumed |
The
fundamental differences
S.no.
|
a
private company
|
a
government organization
|
P1
|
Project
review is open and clear
|
Project
review is opaque and vague
|
P2
|
Job
insecurity: Hire and fire policy
|
Job
security: with an entry age of 18 and retirement age of 65;
|
P3
|
The
insecurity of the job motivates the employee to be always obedient
to the boss
|
Keeping
a person motivated day in day out for 47 long years of career, is
very difficult
|
P4
|
Attrition
rate touch 30-40% in higher age group
|
Retention
rate is more than 90% in higher age group
|
P5
|
A
good pyramid structure
|
A
difficult pyramid structure, sometimes an inverted pyramid
|
P6
|
The
promotions, perks and allowances can be left to whims and fancies
of the boss as the boss is accountable and can be fired
|
The
promotions, perks and allowances can never be left to whims and
fancies of the boss as the boss is not accountable and can never
be fired
|
P7
|
The
increment rate and bonus can be varied with company performance
every quarter, every year
|
The
increment rate and promotion norms are is fixed for 10 years or
till next pay commission is implemented
|
P8
|
The
pay, promotions, perks and allowances are in opaque system and is
okay as the performances are in open
|
A
long term, futuristic, transparent and open guidelines is the need
of the hour, which don’t change year to year, to avoid
demotivation, prejudices, bias and corruption
|
P9
|
Top
executives take a huge pay and perks home
|
Top
executives face pay saturation and stagnation
|
P10
|
Every
work is accounted and reasonably credited with proper
documentation and delegation
|
Charity
expected by bosses with no records of any work or documentation as it is complete micromanagement
|
P11
|
Contract
employee is respected as an expert in the field
|
Contract
employee is treated as a casual daily laborer
|
A
good and healthy private public partnership is required for growth of
the country as you can’t expect the private players to be charitable
to carry out non profitable services like primary education, health-care
and rural infrastructure development.
A1)
Pay
scale
minimum = 10,000/-; max = 2,50,000/- A single and continuous band,
with no grade pay or hierarchy. Lesser importance to Highest paid
person's opinion (HiPPO), equal value for anyone's idea.
The emphasis is on lesser pay saturation at the Top for lesser people at the top, with greater responsibility and accountability, and greater compensation, for successful completion of asked tasks.The starting pay should be comparable to the IITs placements.
A1.1) 10,000/- for tradesman entry
A1.2) 20,000/- for Assistants entry
A1.3) 30,000/- for Engineers; An annual increment @4% rate will take more than 40 years to reach to reach 1,50,000/- the L1 level.
A1.4) 75,000/- for Project managers – minimum 20 years experience as engineers.
A1.5) 1,50,000/- for Secretary L1 Level = second top most level =minimum 10 years experience as Project manager level.
A1.6) 2,00,000/- for Secretary L0 level = top most level =minimum 5 years experience as L1 level.
A1.7) Entry age of 18 and retirement age of 65 possible without pay saturation providing ample options to counter lack of motivation.
The emphasis is on lesser pay saturation at the Top for lesser people at the top, with greater responsibility and accountability, and greater compensation, for successful completion of asked tasks.The starting pay should be comparable to the IITs placements.
A1.1) 10,000/- for tradesman entry
A1.2) 20,000/- for Assistants entry
A1.3) 30,000/- for Engineers; An annual increment @4% rate will take more than 40 years to reach to reach 1,50,000/- the L1 level.
A1.4) 75,000/- for Project managers – minimum 20 years experience as engineers.
A1.5) 1,50,000/- for Secretary L1 Level = second top most level =minimum 10 years experience as Project manager level.
A1.6) 2,00,000/- for Secretary L0 level = top most level =minimum 5 years experience as L1 level.
A1.7) Entry age of 18 and retirement age of 65 possible without pay saturation providing ample options to counter lack of motivation.
A2) APAR Grading = done by immediate superior for a team of minimum 10 persons.
A2.1) A for Above average (A1, A2, A3) not more than 20%. Annual increment of 2.5%.
A2.2) B for Average. Annual increment of 1%.
A2.3) C for below average not more than 10% .A consistent C ranker asked for relocation/reorientation by HRD or VRS for age greater than 55.Annual increment of 0%. Regular DA updates are always there twice a year.
A2.4) D for unfit for service or a case for VRS if age greater than 50.
A2.5) Superior's APAR grading =20% done by subordinates (anonymous IT-enabled) + 80% by boss
A2.6) Gradings/score open after one month
A2.7) Annual PRIS and variable increments based this grading.
A3) Open and transparent Peer review = every four years after previous promotion, irrespective of annual grading.
Grading on objective scale like work output, patents filed, papers published, impact factor, citations, knowledge not on subjective points like honesty, sincerity, integrity.
A3.1) Promotion is two maximum possible annual increments (4%) paid together.
A3.2)
Top 10% promoted the same year (fast track = four years), rest 90%
promoted next year, if absolute score is greater than 6/10.
A3.3) Absolute score of greater than 9/10 with top 10% ranking (A1 candidates) recommended for special award/increment.
A3.4) Bottom 10% with an absolute score of less than 6/10 asked for relocation/reorientation by HRD or VRS for age >55.They are eligible for promotion peer review only after four years. They will stagnate in the same pay without any increments.
A3.5) Only two continuous fast track promotions possible for an annual lot intake of 100.
A3.6) It has to be at least 1 hour long for review of 10000 hours of works, not 15 minutes.
A3.7) The difference in performance between the best and the rest has to be significant, say like 100:25 or 50:25 and not 20:19. Never 25:24!
A3.8) This top 10% selected as the best (to be promoted on fast track of four years), asked to present their work to their peers, to inspire them (the rest 90%) to perform better.
A3.9) The concept of a small minority winning, encourages challenging the status quo, taking risks and making mistakes! The other way round we create a bunch of losers (the discarded lot) and the winners (majority) who are afraid to fail, make mistakes and delay taking decisions!
A3.3) Absolute score of greater than 9/10 with top 10% ranking (A1 candidates) recommended for special award/increment.
A3.4) Bottom 10% with an absolute score of less than 6/10 asked for relocation/reorientation by HRD or VRS for age >55.They are eligible for promotion peer review only after four years. They will stagnate in the same pay without any increments.
A3.5) Only two continuous fast track promotions possible for an annual lot intake of 100.
A3.6) It has to be at least 1 hour long for review of 10000 hours of works, not 15 minutes.
A3.7) The difference in performance between the best and the rest has to be significant, say like 100:25 or 50:25 and not 20:19. Never 25:24!
A3.8) This top 10% selected as the best (to be promoted on fast track of four years), asked to present their work to their peers, to inspire them (the rest 90%) to perform better.
A3.9) The concept of a small minority winning, encourages challenging the status quo, taking risks and making mistakes! The other way round we create a bunch of losers (the discarded lot) and the winners (majority) who are afraid to fail, make mistakes and delay taking decisions!
A4) Open and transparent Project review every six months
A4.1) Project Team score normalized to project score.
A4.2) Project team performance related incentive to promote team work.
A4.3) Complete project plan document in hand, with individual responsibility clearly defined before fund allocation for project. A4.4) an insincere and vague project review will lead to complete collapse of the system
A5) Recruitment
and retention:
Recruitment is a costly
procedure if identifying the real talent is the criteria. Hence
retaining the good talents is also vital for long term growth of the
organization. There are many situations when the project demands
expertise not available inside the organisation. Here the recruiting
a contract employee comes handy. The contract employee who is in for
a particular expertise should be equally important as the permanent
employee. The conducive environment where both exist with mutual
respect will be beneficial for the organisation. In the long run a
significant number of contract employees will lead to better
efficiency and lower operating cost for the organization. All
pay and allowances accounted in corresponding project budget.
A6) Retirement: Standardized
retirement dates with all employees retiring on June 30 or December
31. Voluntary retirement
after a maximum of forty years of service or superannuation at an age
of 64, whichever earlier.
All employees retire
on June 30 or December 31 after their 64th birthday, or before
completion of 40 years in service.
Not a single day more is allowed in service, under any circumstances.
Experts can be given on contract employee list. General employees can
be on contract till the age of 70, distinguished fellows on roll till
age of 80, the contract peer reviewed every fours. By 65th birthday
they are eligible for international standard pension benefits.
A7) Project managers’ champions’
league: There will be 40
vacancies for project managers in an organisation with employee
strength of 10000. They
will constitute A1, A2, A3 and B-league of managers of 10 numbers
each. After every two years top two A1 league managers will be
declared champions, recognized by performance awards and rewarded
with good bonus. Bottom two A1-league managers demoted to A2 league
managers, with top two A2-league managers promoted to A1-league.
Similar promotions and demotions will exist between A2-A3 and A3-B
league of managers. A1 league managers will be provided with bigger
project and greater responsibility with larger chunk of resources as
compared to their A2, A3, and B-league peers.
A8) Awards and recognition:
Organisation should promote
innovation and hard work and those do that consistently and
sincerely, must be recognized and rewarded. The awards must never be
consolation awards and should never contradict the annual grading and
promotion peer reviews.
A9) Intellectual property generation:
21st
century will have wars fought on intellectual property. The country
with greatest number of IPs with a significant quality will win it.
Thus all organisations should encourage the innovation at individual
employee level, without red tapes. For
employees who completed five years in service and earning more than
50,000/- per month will have a chance to file one patent in their
career in their name with the organisation bearing the cost of fees
and paper work. For all other employees, 50% of the patenting cost
will be borne by the employee, paying in 5 year term easy monthly
installments. An employee having an international patent will be
allowed to file another, with no questions asked. The royalties
earning on the patent will be shared 50-50 with organisation and the
innovator. 10% of the project budget should be earmarked for the
patent filing and paperwork costs. Patent filing process should be
easy and each individual encouraged filing a patent.
A10) Perks and allowances: Maximum of 200% of the basic pay along with basic pay for the best performers,less than 0.1% of the employee strength. This is a very rare case (less than 10 in 10000 cases) and after a really good detailed peer review awards this 200% allowance for very high performance, exceeding all expectations. For top 1% performers, 100% of basic pay paid as allowance after annual peer review. These extra payments approved by corresponding project budgets. For
top performers not exceeding 20% of the employee strength, annual
perks and allowances will be around 50-60% of the basic pay, along
with the basic pay. For the
rest it has to be less than 20-30% of the basic pay. For
non performers not exceeding 10% of the employee strength at each
level, it should be zero. Forced bottom 10% bell curve fitting is not recommended.
Details
1) Objective:
To manage a public sector Research and Development (R&D)
organisation, whose mandate and vision are clearly defined,
efficiently and effectively, without a hire and fire policy.
2) Introduction: I would say one of the qualities of a great leader and the most difficult to posses- are to bend down and listen and feel the ground realities and have the courage to face the criticisms with sincerity and integrity. Here I provide some basic guidelines for Management policies for the future.
2) Introduction: I would say one of the qualities of a great leader and the most difficult to posses- are to bend down and listen and feel the ground realities and have the courage to face the criticisms with sincerity and integrity. Here I provide some basic guidelines for Management policies for the future.
3) Decline of dependence of HiPPO: Highest Paid Person’s Opinion: The next wave of management will center on the concept of harvesting expertise, solutions and knowledge — not just from within the organization, but from anywhere that expertise can be identified and gathered.
4) Guidelines:
The guidelines basically try to follow the idea of “the individuals
must grow with the organisation” in true letter and spirit. Any
other way around –individual grows, organisation doesn’t or
organisation grows, individual doesn’t - is bad for the future of
any organisation. This thus implies a truly employee friendly
organization with no hire and fire policy and providing enough growth
opportunities for the employee.
5) What is growth:
Growth needs to be defined as per the mandate and vision of the
organisation. If it is basic research – it is measured in quality
publications with good impact factor and number of citations, if it
is R&D, it should be reflected in number of patents filed,
technologies transferred and royalties earned. If it is strategic, then it is measured by defence induction, If it is plant or a
service it measured by plant and service availability and if it is
production it is measured by clear profit earned directly or
indirectly.
Definitely we can always set our
standards very low at the start and slowly raising the standards with
time, experience and confidence gained. But never the other way
around as it will be highly demotivating for the individual employees
and devastating for the organisation in the long run.
This clear cut distinction of type of
work is very important –putting a right person in the right place
and promoting the right person in the right place is very important.
6) Disclaimer:
The ideas mentioned here are based purely on my intuitions and
experience and not based on any research and in depth analysis and
doesn’t carry a stamp of authority in the subject of management. I
may be using some instances as examples – should not be taken as
pointing fingers.
6.1) This scheme is to be used for organizations which use tough screening and recruitment interview with a selected to appeared candidates ratio of less than 0.1% and not for adhoc appointees. Like say 1, 00,000 candidates appeared for the written test and 1000 called for interview and less than 100 is selected. Here a cream is selected and there is not much to differentiate among them and each is equally competent and has the potential to lead the organization. Thus except for some bad patches in the career they should be provided equal and ample opportunities to correct career graph.
6.2) Rarely, any private company can boast of such selectivity expect for a few IITs and IIMs campus placements.
6.3) Also to expect anyone to be an A1 candidate for all the 40 years long career is ridiculous. Either the person is from another planet or the peer review is poor. As even Messi had bad days! Even FC Barcelona did not win anything in 2014!
6.1) This scheme is to be used for organizations which use tough screening and recruitment interview with a selected to appeared candidates ratio of less than 0.1% and not for adhoc appointees. Like say 1, 00,000 candidates appeared for the written test and 1000 called for interview and less than 100 is selected. Here a cream is selected and there is not much to differentiate among them and each is equally competent and has the potential to lead the organization. Thus except for some bad patches in the career they should be provided equal and ample opportunities to correct career graph.
6.2) Rarely, any private company can boast of such selectivity expect for a few IITs and IIMs campus placements.
6.3) Also to expect anyone to be an A1 candidate for all the 40 years long career is ridiculous. Either the person is from another planet or the peer review is poor. As even Messi had bad days! Even FC Barcelona did not win anything in 2014!
7) HR policy:
Any HR policy to produce the desirable results has to be efficient
and effective. To be efficient a proper pyramid hierarchy has to be
maintained in the system in harmony within the working employees
running the system. To be effective, there has to be a proper review
and appraisal system in place for the individual and also for the
project work as per the predefined mandate and vision of the
organization.
Thus a proper HR policy which is
both efficient and effective will have a system in place which has
the right person at the right place.
8) Recommended pay scale
Pay
scale
|
Maximum
Annual
increment @4%
|
Financial
level for entry for recruitment
|
Designation
|
Qualification/
experience/ Vacancy based responsibility
|
Optimum
age of entry to the level
|
Minimum
Years in service to be eligible for next level
|
Hierarchy
levels
|
10000
|
400
|
Level
7
|
Technician
|
ITI
|
18
|
8
|
H16,
H15
|
20000
|
800
|
Level
6
|
Assistant
|
Diploma
|
20
|
20
|
H14,
H13, H12, H11, H10
|
30000
|
1200
|
Level
5
|
Engineer*
|
B.Tech
|
21
|
5
|
H9
|
40000
|
1600
|
Level
4
|
Sr.Engineer
|
Mentor
|
26
|
5
|
H8
|
50000
|
2000
|
Level
3
|
Team
leader
|
400
in 10000
workers
|
31
|
10
|
H7,H6
|
75000
|
3000
|
Level
2
|
Project
Manager**
|
40
in 10000
workers
|
41
|
10
|
H5,H4,H3
|
150000
|
6000
|
Level
1
|
Group
board members
|
4
in 10000
workers
|
51
|
8
|
H2,H1
|
200000
|
8000
|
Level
0
|
Secretary
|
1
in 10000 workers
|
60
|
5
year term
|
H0
|
*An exceptionally talented engineer,
making an entry at age of 21, can retire at 65, at the financial
Level 1, without being a project manager, by continuing in technical
side as an expert, professor, professor emeritus. He/she can be part
of project review committee under group board where his/her expertise
is required.
**Anyone in the financial level 3 can be
promoted to financial level 2 as a project manager, based on his/her
capability. Project managers not meeting the standards can be demoted
back to financial level 3.
8.1.Pay scales in detail
Hierarchy
levels
|
Pyramid
levels
|
Pay
|
Qualification
for entry
|
Management
vertical
|
H16
|
P8
|
10000
|
12th
pass/ITI equivalent
|
M7
|
H15
|
P8
|
12000
|
Minimum
four years experienced 12th
pass/ITI equivalent
|
|
H14
|
P8
|
15000
|
Any
Graduates, Specialised Diploma starting at 20000/-
|
|
H13
|
P8
|
17500
|
Any
Graduates with four years experience
|
|
H12
|
P7
|
21500
|
Specialised
Diploma with experience
|
M6
|
H11
|
P7
|
26000
|
AMIE
entry; B.Tech entry at 30,000/-
|
|
H10
|
P7
|
31000
|
||
H9
|
P6
|
38000
|
Specialised
post graduates starting at 40000/-
|
M5
|
H8
|
P6
|
46000
|
Doctorate
with Specialised expertise
|
|
H7
|
P5
|
55000
|
Post
Doctorate with International experience
|
M4:
team leaders, 400 for 10000
|
H6
|
P5
|
67000
|
Rare
entry
|
|
H5
|
P4
|
81000
|
Rare
entry
|
M3:
project managers, 40 for 10000
|
H4
|
P4
|
98000
|
Rare
entry
|
|
H3
|
P3
|
119000
|
Rare
entry
|
M2:Experts
for project review, ombudsmen
|
H2
|
P2
|
144000
|
Recommended
|
M1:
Directors on Board, 8 in 10000
|
H1
|
P1
|
175000
|
Rare
entry
|
|
H0
|
P0
|
211000
|
Recommended
|
M0:
CEO, 1 for 10000
|
8.2. Direct recruitment at senior
levels: Rare entry to H0-H6
levels, based on merit, academic records, experience, and age of the
candidate. Contract appointment with similar package is recommended.
An exceptionally talented manager, with an age less than 35 should
not be recruited at project manager level as the pay will get
saturated soon. It is recommended to have a project manager of age greater
than 41 or one can be hired on contract basis.
8.2.1 Any employee joining the department at any level must be able to see future growth potential and not saturation/stagnation after a few years of service as pay increase is the only motivation as the administration powers are vacancy limited.
8.2.2. Hence when any person is being recruited the management must see where it expects him/her to be, when he/she retires, with said qualifications,experience and merit, and then place him/her in that pay level or provide contract appointment.
8.2.1 Any employee joining the department at any level must be able to see future growth potential and not saturation/stagnation after a few years of service as pay increase is the only motivation as the administration powers are vacancy limited.
8.2.2. Hence when any person is being recruited the management must see where it expects him/her to be, when he/she retires, with said qualifications,experience and merit, and then place him/her in that pay level or provide contract appointment.
8.3. For employee strength of 10000:
For annual intake of 40 at
H10 levels, 80 at H14 levels, 160 at H16 levels, assuming a 40 years
long career the employee strength will reach a steady state value of
10000. We can have 1 CEO, 8 Directors on Board, Different experts for
different projects, 40 project managers and 400 team leaders. There
will be as per calculations around 400 employees each at P3, P4, P5
levels. Of these 40 will be project managers, 400 team leaders, the
rest can be assigned task of different levels. Like being part of
intellectual property management, documentation review, archiving and
standardisation, interview committee, safety committee, project
review committee, ombudsmen, HR and recruitment planning. In
addition, to these administrative responsibilities which come on
rotation basis, they can grow as experts in their fields as M.Tech &
PhD guides, assistant professor, associate professor, professor,
professor emeritus, provide academic support to the parent
origination as well as to other institutes and colleges as visiting
professor.
8.4.Grading:
Each employee, except in management level M6 and M7, is annually
rated by his boss and peers. The grades are normalised as per the
score received in the project review report card. Each employee, in
the management level M6 and M7 is bi-annually rated by his/her boss.
The perks and increment decided based on these grades.
Each boss assesses their sub-ordinates
in following four categories.
Grades
|
Implications
|
Score
in 0-10 scale
|
A
|
Exceeds expectations/Better
than me, not exceeding 20% of the sub-ordinates strength
|
Greater
than 8
|
B
|
Meets expectations/Is
okay, similar to me
|
Greater
than 6 but Less than 8
|
C
|
Does not meet expectations / Poor
than me, not exceeding 10% of the sub-ordinates strength
|
Greater
than 4 Less than 6
|
D
|
Unfit
for service- refer to HR to standard procedures. The corresponding Recruitment chairman/ previous peer review committee chairman held accountable
|
Less
than 4
|
Rare
|
A
Score of 9 and above and a score of 4 and below
|
|
Very
rare
|
A
Score of 10 and a score of 2 and below
|
|
8.5. Increment:
The Maximum Annual increment @2.5% is available to only top high
rated performers-category A, not exceeding 20%. This is assuming the
fact that top 20% people do 80% of the significant job. The average
and slightly below average performer –the category B- will only get
1% annual increment. The category C not more than 10% of the employee
strength, are the poor performers and don’t deserve any increment
nor any perks or allowances.
8.5.1. Sixth pay commission note: As
per the sixth pay commission highlights available on the website: The
high performers not exceeding 20% during the year being allowed an
increment at a higher rate of 3.5% and rest a rate of 2.5%. Rest of the 6CPC is implemented but not this critical requirement, which is the crux of Pareto distribution, as identifying 1 in five persons, the peer review committee have to work harder. So they decided to make it 60-40.
8.5.2. A person with 4% annual
increment will take minimum 17 years of service to double the
starting pay salary. And even 40 years of service the salary will not
be five times the starting pay. Annual increment of anything greater
than 5% is not recommended as the pay will double in less than 14
years.
8.5.3. I recommend a 4% increment for
promotion and for A1 project managers. 2.5%
annual increment for high performers not exceeding 20% during the
year, 1% for the rest and 0% for non-performers.
I will recommend that non performers, not exceeding 10% be given 0%
increment, with high performers not exceeding 20% given 2.5%
increment. Also the increment rate for two increments at the time of
promotion should be 4% and not 3%.
8.5.4. If we assume the pareto distribution of work, i.e. 20% of the people contribute towards the 80% of the work, the 4% contribute towards the 64% of the work and the 0.8% contribute towards 51.2% of the work. Only a minute 0.16% contribute towards a major 41% of the work. Hence the high-performers are really a small percentage.
8.5.4. If we assume the pareto distribution of work, i.e. 20% of the people contribute towards the 80% of the work, the 4% contribute towards the 64% of the work and the 0.8% contribute towards 51.2% of the work. Only a minute 0.16% contribute towards a major 41% of the work. Hence the high-performers are really a small percentage.
8.6. Career growth: To
highlight the career growth rate for different increment following
table is provided
Annual
Increment
Rate
in percentage
|
Career
Growth rate as percentage change with respect to starting pay,
after corresponding years, for corresponding annual increment, not
considering promotion
|
||||||||
1
year
|
5
years
|
10
years
|
15
years
|
20
years
|
25
years
|
30
years
|
35
years
|
40
years
|
|
1
|
101
|
105.1
|
110.4
|
116.1
|
122
|
128
|
135
|
141.6
|
149
|
2
|
102
|
110.4
|
121.9
|
134.5
|
148.5
|
164
|
181
|
200
|
221
|
2.5
|
102.5
|
113
|
128
|
144.8
|
163.8
|
185
|
209.7
|
237
|
268.5
|
3
|
103
|
115.9
|
134
|
155.7
|
180.6
|
209.3
|
242.7
|
281.3
|
326
|
3.5
|
103.5
|
118.7
|
141
|
167.5
|
198.9
|
236
|
280.6
|
333
|
396
|
4
|
104
|
121.6
|
148
|
180
|
219
|
266
|
324
|
395
|
480
|
5
|
105
|
127.6
|
162.8
|
207.9
|
265
|
339
|
432
|
551.6
|
704
|
Growth rate with external Periodic Inflation correction assumed
8.6.1. Basic minimum pay scale
is equal to 25 times the minimum prescribed daily wages for a skilled
labourer. The maximum pay scale is 25 times the Basic minimum pay
scale. The ratio between the basic maximum pay scale to minimum pay
scale is 25.Say for example if daily wages is fixed at 400 rupees per
day, minimum pay scale should be 10,000 and the maximum pay scale
should be 250,000.
8.6.2. Minimum to maximum pay scale
Ratio of 1:25: The person
joining in minimum pay
scale can dream to retire in middle of the pay scale. The person
joining in the middle of the pay scale can dream to retire in top of
the pay scale. A person with 4% annual increment will take minimum 40
years of service for the salary to be five times the starting pay.
Thus the minimum ratio required of minimum pay scale to middle of the
pay scale is 1:5. Also the minimum ratio required of middle pay scale
to top of the pay scale is 1:5. Thus
the minimum required Minimum to maximum pay scale Ratio is 1:25.
If the maximum annual increment is fixed at 3% the ratio can be fixed
at 1:16, which is 1:12 for sixth pay commission.
8.6.3. Pay scales should be fixed
based on responsibilities assigned to an individual.
The responsibilities assigned to an individual should be based on
potential and capacity to deliver and experience and merit of the
individual. Thus a continuous evaluation should be in place which
handles both management hierarchy requirements and also acts as a
financial motivator for the individual. M4 level person chosen from
L4 group as team leaders who in future have two options of growth.
One is as project managers and another is to be a technical expert
and become professor and professor emeritus. One individual can grow
from L7 to L6 and to L5 based on performance and merit.
A continuous growth for all and
stagnation for none is guaranteed with average annual rate of
increment of 1% and maximum annual rate of increment of 2.5%. A
promotion review which occurs every four years provides two
increments of 4%.
8.6.4. We cannot compare a Private
sector to government sector
as the private sector is profit and goal oriented; they use hire and
fire policy along with highly variable perks and allowances to their
high performers. In government this will be difficult as it works on
employee welfare and the guidelines and framework are already set and
pre-defined.
Yes variable pay based on performance
is must but a transparent peer and project review is vital in
deciding the parameters to be judged and evaluated for performance.
The review committee should be held accountable for the review.
8.6.5. The following table shows the
growth rate for annual increments and promotion increments.
Annual
Boss Grading @2.5%
|
A
|
B
|
C
|
A
|
B
|
C
|
A
|
B
|
C
|
||
A
|
B
|
C
|
A
|
B
|
C
|
A
|
B
|
C
|
|||
A
|
B
|
C
|
A
|
B
|
C
|
A
|
B
|
C
|
|||
A
|
B
|
C
|
A
|
B
|
C
|
A
|
B
|
C
|
|||
Peer
review grading @4%
|
A
|
A
|
A
|
B
|
B
|
B
|
C
|
C
|
C
|
||
Growth
rate after four years
|
116%
|
111%
|
108%
|
107%
|
104%
|
101%
|
107%
|
103%
|
100%
|
||
Five
years
|
118.9%
|
113.7%
|
110.7%
|
111%*
|
112%
|
109%
|
Stagnate
and relocate
|
||||
case
|
Fast
track in four years, next year annual increment @2.5%
|
One
year delayed
|
Review
after four years
|
||||||||
*one year delayed, zero increment
fourth year, and single 4% increment fifth year as a penalty on boss
for consistently over-rating the performance for last four years.
|
| Growth rate with external Periodic Inflation correction assumed |
8.6.6. It is not the package that
attracts and retains the talent.
It is the projects handled and work culture. You don't hire a Lion
and put him on a vegetarian diet inside a zoo. The best of the Lion
comes out in the real jungle with really good and healthy animals in.
Healthy and fair Competition without restrictions to growth that is
important with nobody stepping on each other’s foot. Stop yes boss culture and you will have best talents coming inside and also will
retain them. For that- The boss should be on rotation and project
basis. Let there be 360 degree evaluation of bosses. Let individuals
choose their projects and their project managers. Allow a flexible
system where inter department transfers are easy and transparent. Use
ITES for project reporting and vacancies available in project.
8.6.7. The pay bands bring in
unwanted hierarchy. I
recommend a flat organisation with a continuous pay structure
starting from 10000 to 250000 with 4% increment. Secretary and
Project Managers have complete freedom to assign the grading and
increment and no questions asked. But they should make the
individuals know how they do it. They should let team leaders to
assign the grades. Allow 360° evaluations of managers by the peers.
20% of the boss grading should be done by subordinates. Conduct
promotion interview by independent committee every four years and let
open assigned grades. Secretary and Project Managers will get their
share of pay and allowances only on successful completion of
objectives and projects after five years of evaluation. Proper
project review is critical. If a project is successful and there is
reasonable profits as per external audit share the profit as award
and incentive. The pay
structure should be similar in the PSU but need not pay all the
allowances. Make redeployment
transfers and rotations based on individual preference and easy. New
responsibility new work culture brings in more energy and thus
improves efficiency. Make the work responsibilities for the
individual in the open forum and allow the individuals to file
reports in open and transparent manner.
8.6.8. Vacancy based hierarchy: If it
is that important to have a rigid pyramid command in line structure
there can a post like Chief officer, senior officer, officer, junior
officer, assistants and helpers in a ratio of 1:4:40:400:4000:6000,
with required pay scale eligible to apply.
8.6.9. Promotions cannot maintain or
provide hierarchy: Say every
year we recruit 100 engineers. After every four years they undergo
peer review. Top 10% are promoted that year and rest 90% eligible,
next year. Thus a long term average will be 490 numbers at each
level. This will be situation for any drop percentage r. The steady
state average for number of persons attending the peer review at each
level will be N/(1-r) where N is average number of annual intake.
Thus at each level the numbers will be equal and constant, drop rates
and review interval is standard and normalised.
8.6.9.1.
If there is non-uniform drop rate and number years for peer review to
maintain a pyramid structure hierarchy, may be possible. Drop rate
and number of years of residency period decrease with each level
starting from 8 years at junior level to 2 years at senior level. But
this not recommended.
8.6.9.2.
I recommend a standard uniform structure of peer review every four
years after last promotion with uniform pass rate 10% on fast track
four year case and 90% on five years case.
8.6.9.2.1. The concept of a small minority winning, encourages challenging the status quo, taking risks and making mistakes!
8.6.9.2.2.The other way round we create a bunch of losers (the discarded ones- the minorities) and the winners (majority) who are afraid to fail, to make mistakes and delay decision making! Also these so called "winners" tend to be bad team players, worse managers, worst listeners and highly egoistic!
8.6.9.3.If we assume the Pareto distribution of work, i.e. 20% of the people contribute towards the 80% of the work, the 4% contribute towards the 64% of the work and the 0.8% contribute towards 51.2% of the work. Only a minute 0.16% contribute towards a major 41% of the work. Hence the high-performers are really a small percentage. In short the best stands out among the crowd! I think, thats why we call them OUTSTANDING!
8.6.9.3.1.This should be our guiding principle. If we have 1000 very good employees, how many of them do you see to be outstanding 20 years down the lane? The leadership must able to answer this question with clarity of why, what and how.
8.6.9.3.2.The difference in performance between the best and the rest has to be significant, say like 100:25 or 50:25 and not 20:19. Never 25:24!
8.6.9.3.3. If it is number of publications, it should be 20 for the best, if the average is 10. If it is the number of citations, it should be 5 for the best if the average is 2.5 in the lot. If it is identifying the best PhD guides, number of students successfully completed PhD under the guide should be 10 if the average is 2.5.If it is number of patents filed, it should be 4 for the best engineers, when the average is 1.25. If the technology transfer earnings are considered, it should be 5 lakhs if the average is 1.25 lakhs. If it is production, the best should have delivered 1000 units, if the average has been 250 units. In short the best stands out among the crowd! I think, thats why we call them OUTSTANDING!
8.6.9.3.4. The parameters and peer review is critical here. This process should be difficult for the best to score more than 70%. Then only we can identify the outstanding. And can never identify the best, when everyone scores more 99%. The education sector is an example of inability to identify the outstanding students.
8.6.9.3.5. The ineligible ones that are the ones scoring less than 6/10 on absolute scale in the peer review and belonging to bottom 10% in the lot of peer review, stagnate for four years and reviewed again after four years.
8.6.9.2.1. The concept of a small minority winning, encourages challenging the status quo, taking risks and making mistakes!
8.6.9.2.2.The other way round we create a bunch of losers (the discarded ones- the minorities) and the winners (majority) who are afraid to fail, to make mistakes and delay decision making! Also these so called "winners" tend to be bad team players, worse managers, worst listeners and highly egoistic!
8.6.9.3.If we assume the Pareto distribution of work, i.e. 20% of the people contribute towards the 80% of the work, the 4% contribute towards the 64% of the work and the 0.8% contribute towards 51.2% of the work. Only a minute 0.16% contribute towards a major 41% of the work. Hence the high-performers are really a small percentage. In short the best stands out among the crowd! I think, thats why we call them OUTSTANDING!
8.6.9.3.1.This should be our guiding principle. If we have 1000 very good employees, how many of them do you see to be outstanding 20 years down the lane? The leadership must able to answer this question with clarity of why, what and how.
8.6.9.3.2.The difference in performance between the best and the rest has to be significant, say like 100:25 or 50:25 and not 20:19. Never 25:24!
8.6.9.3.3. If it is number of publications, it should be 20 for the best, if the average is 10. If it is the number of citations, it should be 5 for the best if the average is 2.5 in the lot. If it is identifying the best PhD guides, number of students successfully completed PhD under the guide should be 10 if the average is 2.5.If it is number of patents filed, it should be 4 for the best engineers, when the average is 1.25. If the technology transfer earnings are considered, it should be 5 lakhs if the average is 1.25 lakhs. If it is production, the best should have delivered 1000 units, if the average has been 250 units. In short the best stands out among the crowd! I think, thats why we call them OUTSTANDING!
8.6.9.3.4. The parameters and peer review is critical here. This process should be difficult for the best to score more than 70%. Then only we can identify the outstanding. And can never identify the best, when everyone scores more 99%. The education sector is an example of inability to identify the outstanding students.
8.6.9.3.5. The ineligible ones that are the ones scoring less than 6/10 on absolute scale in the peer review and belonging to bottom 10% in the lot of peer review, stagnate for four years and reviewed again after four years.
8.6.9.4.
To maintain pyramid hierarchy, annual recruitment at three levels in
the ratio of 1:2:4 is recommended. If annual intake engineers,
assistants and tradesmen are 40:80:160 the steady state employee
strength will be around 11200 and the employee distribution in
percentage will be as follows.
Pyramid
levels
|
Percentage
employees
|
Employees
|
Remarks
|
P8
|
35
|
3920
|
Expect
to go up with contract employees
|
P7
|
39
|
4334
|
|
P6
|
15
|
1684
|
|
P5
|
4
|
444
|
|
P4
|
3.5
|
392
|
|
P3
|
3.5
|
397
|
Expect
to go down due to VRS
|
P2
|
0.22
|
25
|
|
P1
|
0.01
|
1
|
|
Total
|
100
|
11200
|
Annual
intake of 280 employees, 40 years career
|
8.6.9.5. This is possible if we have nine sub levels for the above said three levels. These sub levels are overlapping. If one joins at a lowest sub level SL8 the average person will take 40 years to reach SL0. By that time average person would have retired. Hence the sub levels slowly take the shape of pyramid at higher levels. In addition to the retirement tapering the top, one more condition is added. The promotion to top two sub levels SL1 and SL0 is single attempt. Hence only top 10% make it. This will lead to a large number stagnating at SL3 level. At this stage the expected age is 50 - 55 and a few may take VRS, leading some reduction in numbers.
8.6.9.6. Following the estimated
employee statistics at each pay scale level for an annual intake of
40 engineers, 80 assistants and 160 technicians.
H16
|
H15
|
H14
|
H13
|
H12
|
H11
|
H10
|
H9
|
H8
|
H7
|
H6
|
H5
|
H4
|
H3
|
H2
|
H1
|
||||||||||||||
196
|
196
|
196
|
196
|
196
|
196
|
397
|
25
|
1
|
|||||||||||||||||||||
Average
age for PG specialised entry at 40000
|
23
|
28
|
33
|
38
|
43
|
48
|
53
|
58
|
63
|
||||||||||||||||||||
392
|
392
|
392
|
392
|
392
|
392
|
795
|
50
|
2
|
|||||||||||||||||||||
20
|
25
|
30
|
35
|
40
|
45
|
50
|
55
|
60
|
Average
age for Graduates entry at 15000
|
||||||||||||||||||||
784
|
784
|
784
|
784
|
784
|
784
|
1590
|
101
|
4
|
|||||||||||||||||||||
18
|
23
|
28
|
33
|
38
|
43
|
48
|
53
|
58
|
Average
age for 12th
pass/ITI entry at 10000
|
||||||||||||||||||||
784
|
784
|
1176
|
1176
|
1176
|
1176
|
1982
|
689
|
995
|
246
|
198
|
196
|
196
|
397
|
25
|
1
|
||||||||||||||
P8
= 3920
|
P7=4334
|
P6=1684
|
P5=444
|
P4=392
|
P3
|
P2
|
P1
|
||||||||||||||||||||||
9. Planning and budgeting:
Complete plan available to the team. Debate and brainstorm on the
plans and when final plan ready then only release the money. This
will curb futile expenses. Then reward the reuse of existing
resources. Right people at the right places not yes boss culture.
People are accountable at the same time they have the freedom to take
decisions. No undue interference. The jobs with clear definition of
duties and responsibilities can be outsourced and should be
outsourced. That is where planning is crucial. Have proper plan ready
and outsource the frozen and final requirements.
10) Proper pyramid hierarchy:
Motivations and Needs
The pyramid shown above is as per
Maslow’s hierarchy of needs (A Theory of Human Motivation A. H.
Maslow (1943) Originally Published in Psychological Review, 50,
370-396).
Hierarchy
levels
|
Needs
of human nature
|
Hierarchy
Level 0
|
Self
actualization=self fulfillment
|
Hierarchy
Level 1
|
Self
esteem and reputation of the individual
|
Hierarchy
Level 2
|
Sense
of belonging: work group team and family
|
Hierarchy
Level 3
|
Safety
needs and the sense of security and stability
|
Hierarchy
Level 4
|
Basic
human needs of food cloth and shelter
|
Any officer joining the government
organisation, with publication of appointment in the gazette, after
the probation period, directly goes to Hierarchy Level 2 overriding
the Hierarchy Levels 3 and 4.Thus it is always recommended to have a
few years of contract service, and if required extending the
contract, before clearing the probation and offering a permanent post
in the organization. Also it is equally important to weed out the
consistent long term (>10 years) non-performers from the
organisation, even after the standard procedures of relocation,
training and counseling.
11) Recommended type of Recruitment
11.1)
Graduate level: The results of All India based written examination
like GATE score used to shortlist the top 25% of the applied for
interview and only 50% asked to join as trainee. The trainees choose
the project and project coordinators of their choice after all the
project co-coordinators make a presentation. The number of projects
presented should always be 120% greater than the trainees
shortlisted. The contract of 25 % basic + 75% perks with hostel stay.
The contract payment comes from project associated. 2-4 years project
work as on the job trainee on contract basis with high performance
related incentives on par with the best in the industry. Only top 20%
these consistent performers awarded MTech/MSc and absorbed in the
organization. For the rest 70% contract renewed for two years and
reviewed. Bottom 10% in the review asked to leave with reasonable notice period and
compensation. The absorbed candidates will be posted as level H9.
11.2)
Post Graduate level M.Tech and M.Sc: The results of All India based
written examination like NET score used to shortlist the top 25% of
the applied for interview and only 50% asked to join as trainee. The
trainees choose the project and project coordinators of their choice
after all the project co-coordinators make a presentation. The number
of projects presented should always be 120% greater than the trainees
shortlisted. The contract of 40 % basic + 60% perks with hostel stay.
The contract payment comes from project associated. 4-6 years project
work as on the job trainee on contract basis with high performance
related incentives on par with the best in the industry. Only top 20%
these consistent performers awarded PhD and absorbed in the
organization. For the rest 70% contract renewed for two years and
reviewed. Bottom 10% in the review asked to leave with reasonable notice period and
compensation. The absorbed candidates will be posted as level H8.
11.3) Post doctoral fellows: PhDs from
good institutes + the journal publication impact factor + citations
based rank list. The fellows choose the project and project
coordinators of their choice after all the project co-coordinators
make a presentation. The projects presented should always be 120%
greater than the fellows shortlisted. The contract of 50 % basic +
50% perks with hostel stay. The contract payment comes from project
associated. 4-6 years project work as Post doctoral fellows on
contract basis with high performance related incentives on par with
the best in the industry. Only top 20% these consistent performers
absorbed in the organization. For the rest 70% contract renewed for
two years and reviewed. Bottom 10% in the review, asked to leave with golden
handshake. The absorbed candidates will be posted as level H7.
11.4) Lateral recruitment at higher
levels: A very rare case recruitment to higher levels based on
previous years of experience, relevant area of expertise and merit.
Generally a project based contract with an industry standard package
is proposed for recruitment at a very senior level of management. The
appointment of experienced persons with a specific area of expertise
for specific projects should be encouraged as it has a scope to
encourage new ideas and innovation.
11.5) Strategic project managers: It
always recommended to appointing a senior defense personal to be the
in-charge of the project. A senior technical personal can be
interviewed from a list of eligible candidates and selected as part
of project planning team. Once the project plan is finalized the
person can be made responsible to manage the project.
11.6) The recruitment at technician
level is to be done on a large scale with contract appointment of 10
times the annual average vacancy requirement with an equal number in
the waiting list. Every one year 10% best technicians clear probation
and 10% more appointed in contract from the waiting list.
Also a 50% reservation for
locals is recommended at this level.
11.7) Encouraging team-spirit in the work culture: The 50% of the performance based pay will be dependent on the average performance of the team or group. This will encourage brain storming and sharing of knowledge pool.
11.7) Encouraging team-spirit in the work culture: The 50% of the performance based pay will be dependent on the average performance of the team or group. This will encourage brain storming and sharing of knowledge pool.
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