The government is planning to make it mandatory for companies to put in place a mechanism to monitor performance of junior and mid-level employees of over 200 CPSEs to ensure that their salary hikes are strictly based on their performance.
In 2009-10 there were 249 CPSEs, out of which 217 were in operation. Barring casual workers the CPSEs employed 14.9 lakh people.
The Department of Public Enterprises is in the process of making it mandatory for Central Public Sector Enterprises (CPSEs) to have a proper Performance Management System (PMS) in place of distributing the performance-related pay to the non-unionised supervisors and lower executives.
"We have been pressing hard to make sure that every PSU (or CPSE) has a robust performance management system before the September 1, 2011," Secretary in the Department of Public Enterprises (DPE) Bhaskar Chatterjee told PTI.
He added, those who do not have a proper system in place, would be asked not to distribute any PRP to their staff.
At present, there is no systematic way to monitor the performance of these employees in PSUs.
"It was more in the bureaucratic nature of having impressionistic trait-based evaluation. There was really no real assessment of achievement against targets so on and so forth," Chatterjee said.