Crazy KRA

Updated: Jan 19 2007, 05:30am hrs
Overshooting key result area (KRA) targets is good, HR managers agree, and variable pay systems typically reward this. What gets rewarded gets reinforced, as NTPCs GK Agarwal said at AIMAs all-India seminar held at Uppals Orchid, Delhi, on performance incentives.

But what about over-overshooting

Not good. You might start compromising on something, Agarwal cautioned. A durable reward structure, he added, might look like this: 10% of annual pay extra for achieving 80% of the target, 20% for the full target, 30% for 110% of the figure and 35% for 120%but no further escalation. If someone overvaults even that mark (the overheat point), it may be time to re-look, re-map and re-load the KRA set, to include what might be getting short shrift.

Er, minister

With global-scale M&As hogging the headlines these days, government ministers have had to devise new ways to capture newsprint. A new trick is to make numerical utterances that sound large enough in terms of scale to match the numbers that appear in the papers.

Just the other day, for example, Union steel minister Ram Vilas Paswan, made a valiant attempt to score a big one. He cheerfully told newspersons in Delhi that the countrys largest steel manufacturer, the government-owned Sail, will invest Rs 1,00,000 crore by 2020 to increase its production capacity to 40 million tonnes, up from 14.6 million tonnes at present.

The gargantuan numbers were enough to throw Sail officials into a flap, the following day, with stock exchanges getting in touch to verify the projection. It was simply a long-term vision, the officials clarified. The steel-makers Board had made no such approval.