In the system of Appraisal, the targets are relative to past performance and not the absolute performance. For example, in a sports academy, an athlete running 400m in 50 seconds (as against 51 seconds achieved in previous year) can be a better performer than other athlete running 400m in 48 seconds (as against 48 seconds achieved in previous year), or
A company giving Rs. 100 crore profit in performance year as compared to Rs 90 crore profit in the previous year can be considered a good performer . The same company would have been a bad performer if it had given 200 crore profit in performance year as compared to Rs 205 crore profit in the previous year. Absolutely 200...
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cr performance is better, but appraisal will give the 100 Cr performer, a much higher rating.
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In the instant case, matter relates to annual performance rating of GM SER with respect to the given targets (which are not equally difficult for same) and not the absolute performance of SER Railway. Performance grading has been introduced to improve the financial performance of loss making zones, as most of the zones of IR are operating in losses, and IR intend to operate all zones as profit centres.
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A lot of confusion is prevailing regarding the performance rating of the zonal heads in media, and now one of the IR websites too appear to be in the same lot.
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IR is surviving mainly due to revenue surpluses generated by some of the predominantly freight carrying zones like SECR, ECoR, SER, NCR etc which operate at operation ration as low as 50% as against national avg of around 90-100%. These zones give enough surplus revenues to wipe off the losses incurred by other zones and still give a net surplus to IR.
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SER, SECR & ECoR are tri-sisters (freight/ profit making zones) carved out of old SER. Present SER is no match to her sisters i.e. SECR, ECoR in this matter. The coal loading freight zones were given stiff incremental loading targets and they failed as not enough new thermal power plants have been commissioned last year. As a result the loading was low and the ratings of zones fell for no fault of theirs.
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With OR of IR zooming above 100 i.e. 109%, there may be only a few zones actually giving profits to IR. SECR & ECoR (OR 50-60%) are guaranteed to give profits to IR and there may be a few more amongst rest of 15 zones.