Draft Human Resource Policy Version 1.

2 –
Summary of Changes

CSAIL HR Department
Agenda
• Assumptions & Objective
• Scope of the HR Policy Version 1.2
• Summary of Changes – An Overview
• New Performance Management System
Assumptions & Objective

• Assumptions

– All the employees are generally aware of the previous HR Policy Version 1.1

– All the Employees have generally gone through the Draft HR Policy Version 1.2 shared
earlier for comments

– All the Employees generally understand that no major changes have been made in the
Policy except for the Performance Management mechanism

• Objective

– The objective of this presentation is to give an overview of the changes made in HR

Policy to enable the employees to have a quick look on the changes.
Scope of the Draft HR Policy Version 1.2

• HR Policy Version 1.2 will be applicable to all Local Employees and All
Chinese Employees (Hired through Third Party) of CSAIL and Project
Companies

• HR Policy will not be applicable to the Chinese Employees deputed by

CTGI and CTG and to Local Employees on Third Party. These categories
of employees will be governed by their respective Policies.
Summary of Changes – An Overview
• Policy Chapters
– Previous Policy comprised of 10 Chapters, New Policy contains 12 Chapters
– In previous Policy, Employee Classification, Workforce Planning and Recruitment
& Selection (Procedure) was One Chapter. In new Policy HR Planning and
Recruitment & Selection has been made separate Chapter.
– In previous Policy Business Travel was part of Employee Management – General
Rules. In New Policy It has been made a separate Chapter
– Chapter regarding Expatriate Management has been removed.

• General Changes – Chapter wise

– Chapter 1 – Introduction, Vision & Mission & Values
• No Change
– Chapter 2 – Employee Classification, Management Level, Grading Structure &
Ti t l e s
• Different Grading Levels have been applied in CSAIL and Project Companies based on
Generation Capacity
• Previously there were 3 Managem ent Levels. Senior, Middle & Junior. Now, one more
Level has been added which is Top Management
• Title of Deputy General Manager has been incorporated at Grade 19. Consequently the
Titles at Grade 19 and above have moved one step up.
• Technical Titles has been incorporated for Staff involved in Technical Work.
Summary of Changes – An Overview
• General Changes – Chapter wise (Continued………)
– Chapter 3 - Workforce Planning & HR Budget
• HR Planning process has been simplified keeping in view the limited Business activity
• HR Budget procedure has been incorporated duly aligned with Finance Department’s Budget activity
– Chapter 4 - Recruitment & Selection (Policy & Procedure)
• Interview panel formation have been revised and further simplified
• ICC Employee Screening Procedure have been incorporated into hiring procedure
• Personality Tests requirement have been removed
• Stipend for Internees have been revised from 15,000 PKR/month to 20,000 PKR/month
– Chapter 5 - Compensation & Benefit
• In addition to current Utilities and Medical Allowance, following New Allowances have been introduced for all
Grades
– Conveyance Allowance
– Attendance Allowance
– Mobile Allowance
– Site Allowance (For Site Based Employees)
– House Rent Allowance (For Site Based Employees)
– Night Shift Allowance (For Site Based Employees)

• Optional Social Benefit has been renamed as Leave Fare Assistance and its payment has been simplified. The
receipts and purchases have been removed
• Car, Fuel, Driver and all related expenses and entitlements have been withdrawn & replaced by Conveyance
Allowance.
• Annual Increments have been taken out from Performance Management Chapter 7 and has been included in
Compensation & Benefit Chapter. Annual Increments have been made uniform across the company.
Summary of Changes – An Overview
• General Changes – Chapter wise (Continued………)
– Chapter 6 – Employee Management General Rules & Guidelines
• In order to encourage good attendance discipline, Attendance Reward concept have been introduced.
• Chinese New Year and Moon Festival has been added in Public Holidays
• Annual leaves entitlement has been changed from 22 days to 20 days
• Annual Leave Encashment for Un-availed Annual leaves has been added
• Food Allowance option has been incorporated for the companies not able to manage Lunch
• For working on Public Holidays & Weekends, Max PKR 1,000/= per day has been fixed to cover Meals if Lunch
or Dinner falls during the work
• Formula for calculating one day Salary has been changed from 30 days to 26 days for all situations
– Chapter 7 – Code of Conduct / Code of ethics and Disciplinary Procedure
• No Change
– Chapter 8 – Employee Grievance Procedure
• Employee Grievance Procedure has been linked with Integrity Compliance Program
– Chapter 9 - Performance Management System & Promotions/ Up-gradations
• The PMS Mechanism has been changed completely and has been aligned with the CTGI Performance
Management System. Details are mentioned in the Policy document which may be gone through very carefully.
• Annual Salary Increment has been taken out from this chapter and has been put under Chapter 3 Compensation
& Benefit
• Promotions procedure has been changed which is mentioned in the Policy Document.
Summary of Changes – An Overview
• General Changes – Chapter wise (Continued………)
– Chapter 10 - Training & Development
• Training methods have been mentioned in the policy comprising of External Trainings and On Job Training
• Honorarium has been incorporated for the Internal Trainers who will impart Training under On Job Training @
10,000 per Training Session.

– Chapter 11 – Career Management System

• No Change

– Chapter 12 - Business Travel & expenses

• Daily Allowance standard has been fixed as PKR 1,000 for Travel between Office & Site to cover Meals
• International Travel expense reimbursement has been linked with “Measures for Expenses Management of
Temporary Overseas Trips of China Three Gorges South Asia Investment Ltd.” which was prepared and issued
by Asset & Finance Department.
• The implementation of Business Travel related Chapter will be made by Administration Department and/or Asset
& Finance Department
Summary of Changes
• Interview Panel Formation
Before
For CSAIL Level Hiring
From Grade SS-11 to MM-18 - Chief Operating
Officer, HR Department and Requesting Department
Head or their nominees
From Grade SM – 19 to SM – 21 – President & CEO
CSAIL, Chief Operating Officer CSAIL Requesting
Department Head or nominee, HR Department CSAIL
For Project Companies
From Grade SS-11 to JS- 15 - Chief Executive Officer
, HR Department and Requesting Department Head
or their nominees
From Grade MM-16 to MM-18 – CEO, Requesting
Department Head or Nominee, HR Department of
Project Company and CSAIL HR.
From Grade SM – 19 to SM – 21 – CEO, Requesting
Department Head or nominee, HR Department of
Project Company and CSAIL HR. Chief Operating
Officer CSAIL, President & CEO CSAIL
After
For CSAIL Level Hiring
1.From Grade SS-11 to MM-18 –member of top
management heading the relevant function, Head of
requesting Department and HR Department CSAIL
2.From Grade SM – 19 to SM – 23 – Any two
members from Top Management, Head of requesting
department and HR Department CSAIL
For Project Companies
3.From Grade SS-11 to JS- 15 - HR Department and
Requesting Department Head or their nominees
4. From Grade MM-16 to SM-20 – member of top
management, Requesting Department Head or
Nominee, HR Department of Project Company.
For Senior Manager, D.GM and GM – CSAIL HR will
also be part of the panel
Performance Management System
Scope
The performance management system applies to all permanent & Contract
employees, including employees on probation and trainees (Local &
Expatriates).

Eligibility
Employees who have been confirmed on or before June 30th and employees
who leave the company after June 30th will be eligible for performance bonus
for the current performance year. Overall employment time period of six (6)
months should have been completed.
Performance Management System

Performance Cycle
• Performance management cycle begins January 1 and ends December 31.
• The Performance Evaluation will take place at the end of the year. No Half
Year Evaluation anymore.
• Following are the main elements of Performance Management System
– T a r g e t Setting
– Annual Performance Appraisal
– Decisions on Performance Bonus
– Decision on Promotion / Up-gradation
Performance Management System

Principles of Performance Management System

– Targets and Performance Evaluation system works at three levels. Company
level, Department Level and Individual level.
– Targets and Performance Evaluation of CSAIL will be decided by CTGI
based on the Business requirements & Proposal of CSAIL Top
Management.
– Targets setting and Performance Evaluation of Project Companies and
CSAIL Departments will be decided by CSAIL Performance Management
Committee (PMC) Leadership ensuring that Target Setting is aligned with
the targets assigned to CSAIL by CTGI.
– Project Companies PMC will assign Department Level targets to the
concerned Department.
– Concerned Department Heads will assign Individual Level Targets to the
employees within their departments.
Performance Management System
Structure, Roles & Responsibilities of CSAIL
Performance Management Committee
Sr No Title Status in PMC
1 President & CEO CSAIL Chairman (Leadership)
2 Chief Operating Officer CSAIL (COO) Member (Leadership)
3 Deputy Chief Executive Officer CSAIL Member (Leadership)

4 Chief Financial Officer CSAIL (CFO) Member (Leadership)

CSAIL PMC Leadership Responsibilities:

1. Drafting & Revision of Performance Management System.
2. Finalization of Target Setting and Performance Evaluation and
signing of with the concerned parties.
3. Approve the results of the Company Level & CSAIL Department
Level Performance Evaluation.
4. Review the results of CSAIL Individual Level Performance
Evaluation.
Performance Management System
Under the PMC Leadership, the secretariat is established which
is Comprising of the following:
Sr No Title Status
1 Head HR CSAIL Member
2 Head Asset & Finance CSAIL Member
3 Head Legal & Risk Management CSAIL Member
4 Head Project Development CSAIL Member

CSAIL PMC Secretariat Responsibilities:

1. Implement approved Performance Management System.
2. Work out the base work in target setting and performance evaluation within
CSAIL & Project Companies.
3. Present consolidated results of target setting and performance evaluation to
CSAIL PMC Leadership for decisions.
4. Implement final decisions of the CSAIL PMC Leadership.

Project Companies should replicate the same structure within

Project
Companies.
Performance Management System

Principles of Performance Management System

– Targets and Performance Evaluation system works at three levels. Company
level, Department Level and Individual level.
– Targets and Performance Evaluation of CSAIL will be decided by CTGI
based on the Business requirements & Proposal of CSAIL Top
Management.
– Targets setting and Performance Evaluation of Project Companies and
CSAIL Departments will be decided by CSAIL Performance Management
Committee (PMC) Leadership ensuring that Target Setting is aligned with
the targets assigned to CSAIL by CTGI.
– Project Companies PMC will assign Department Level targets to the
concerned Department.
– Concerned Department Heads will assign Individual Level Targets to the
employees within their departments.
Performance Management System
Target Setting Structure
1.For Company Level & Department Level Targets, following are the
categories and their weightages
a)Operational Targets 60%
b)Management Targets 20%
c)HSE Targets 10%
d)Integrity Compliance Targets 10%

2.For Individual Level Targets, following are the categories and their
weightages
A) Functional Targets
60% b)*Urgent Targets, if any
20% c) Team Work Targets
10% d) Integrity Compliance Targets
10%
*These are the targets assigned during the year by the Department
Head. If no Urgent Target is assigned during the year, then its
Weightage %age will be added to the Functional Targets.
Performance Management System

• Target Setting Procedure

– Company Level & CSAIL Department Level
• PMC Secretariat will start the procedure for Target Setting in the month of November
every year
• All the Project Companies & CSAIL Departments will submit the “Targets Proposals”
For the coming year by December every year
• PMC Secretariat will consolidate the proposals and arrange comments from all the
members of PMC. The consolidated comments will then be presented to the
Chairman for review.
• PMC Secretariat will communicate the comments of the PMC to the Project
Companies and CSAIL Departments for their further comments.
• PMC Secretariat will arrange a final meeting of the PMC with Project Companies
Management & CSAIL Department Heads for Final Agreement & Signing.
• The Project Companies & CSAIL Departments will only propose Operational Targets.
Management Targets, HSE Targets & Integrity Compliance Targets will be assigned
by the PMC.
• The Company Target Sheets & Departmental Targets Sheets m u s t be signed by the
concerned parties and handed over to the HR Department.
• Format for the same is as per Annexure .
Performance Management System

• Target Setting Procedure (Continued.)

– Project Company Department Level
• The Project Companies should follow the same procedure as mentioned above, for Project
Companies Department Level Target Setting.
• Format for the same is as per Annexure

– Individual Level
• Once the Department Level Targets are finalized, then Department Head will finalize the Targets
with every employee within the department
• The Individual Targets should be aligned with Company Level & Department Level Targets
• There should be 5-10 Functional Targets to be assigned to Individual based on the employee’s
abilities and potential.
• The Individual Target sheets must be signed by the concerned parties as per format enclosed as
Annexure and handed over to the HR Department
• Any “Urgent Targets” assigned during the year must be recorded by the Head of the Department
for objective evaluation at the end of the year. These “Urgent Targets” have to incorporate in the
Target Evaluation Sheet, assign appropriate %age weightage and then give the evaluation
accordingly.
The Target Setting activity should be completed within January every year. However, it may be noted
that the Company Level Targets may be adjusted in the month of March when the Targets are
finalized by CTGI.
Performance Management System

• Target Setting Guideline

• Specific - The desired outcome o r results are clearly defined

• Measurable - Establish concrete c r i t e r i a f o r measuring p r o g r e s s toward t h e

attainment of each Target set.

• Achievable - The Target is challenging b u t realistic given time a n d resources

• Relevant - The Target is aligned with t e a m /dept./company objectives a n d

direction

• Time Bound - Deadlines are set for accomplishment

Performance Management System
• Target Evaluation
Scoring Criteria
The Performance Ranking has been divided into four categories which is mentioned as follows:
.
Score Ranking

90 – 100 Grade A
80 – 89.99 Grade B
60 – 79.99 Grade C
Below 60 Grade D

Remark: While calculating the final scoring, no rounding off is

allowed. In case of Score in decimal, only 2 decimal places will be
taken
 Performance Management System

• Target Evaluation Principles

• Company Level Distribution of Scoring (CSAIL Perspective)

. CSAIL’s Ranking Project Companies CSAIL Departments

If CSAIL is Grade A 100% can get Grade A 50% can get Grade A

If CSAIL is Grade B 70% can get Grade A 40% can get Grade A

If CSAIL is Grade C 50% can get Grade A 30% can get Grade A

If CSAIL is Grade D 0% can get Grade A 0% can get Grade A

Performance Management System
• Target Evaluation Principles
• Department Level Distribution of Scoring (Project Companies
Perspective)

.
Project Company’s Ranking by CSAIL Project Company Department

If Company is Grade A 50% can get Grade A

If Company is Grade B 40% can get Grade A

If Company is Grade C 30% can get Grade A

If Company is Grade D 0% can get Grade A

Performance Management System
• Target Evaluation Principles
Individual Level Distribution of Scoring (All Companies)
Four Categories
1. Company Leadership
2. ACEO of the Company
3. Department Heads
4. Employee under Department

.
 Performance Management System

• Target Evaluation Principles

Company Leadership ACEO of the Company

Company Evaluation I Company Leadership I Remarks Company Evaluation Company Leadership Remarks

If Company is Gracie A 1100% c a n get Gracie A If Company is Grade A 60% can get Grade A -

If Company is Gracie B 60% can get Grade A If Company is Grade B 40% can get Grade A -

If Company is Gracie C If Company is Grade C 0% can get Grade A -

40% ca n get Gracie A Excluding CEO of the Company

If Company is Gracie D I 0% can get Gracie A If Company is Grade D 0% can get Grade A -

Department Heads Employee under Department

Company Evaluation Head of Department

If Company is Grade A 60% Department Head can get Grade A Departmental Evaluation Individual

If Company is Grade B 40% Department Head can get Grade B If Department is Grade A 40% of its employees can get Grade A

If Company is Grade C 0% Department Head can get Grade C If Department is Grade B 30% of its employees can get Grade A

If Company is Grade D 0% Department Head can get Grade D If Department is Grade C 20% of its employees can get Grade A

If Department is Grade D 0% of its employees can get Grade A

Performance Management System
Procedure for Performance Evaluation

Company Level & CSAIL Department L e v e l

1 PMC Secretariat will start the procedure for Evaluation in the month of
January every year.

2 PMC Secretariat will ask Project Companies and CSAIL Departments for
the submission of achievements against the assigned targets along with
the evidences by mid-January.

3 PMC S e c r e t a r i a t will a r r a n g e scoring from concerned officials

as mentioned in Management Targets & Most Critical Indicators.

4 PMC Secretariat will assign preliminary scoring as per criteria and

prepare the First Evaluation Draft.

5 PMC Secretariat and P MC Leadership will review the First

Evaluation Draft and g i v e comments. The c o n s o l i d a t e d
c o m m e n t s w i l l then b e presented to the Chairman for review.

6 PMC Secretariat w i l l communicate t h e c o m m e n t s o f the P M C to

the
Project Companies and CSAIL Departments for their further comments .

7 PMC Secretariat w i l l arrange a final meeting of the P M C with Project

Companies Management & CSAIL Department Heads for Final
adjustments, if any.

8 PMC Secretariat will inform the F i n a l i z e d Rank in g t o t h e

P r o j e c t
Companies & CSAIL departments.

9 PMCs of Project Companies will carry out evaluation of D e p a r t m e n t s

and CSAIL Department Heads will carry out evaluation of Individual as
per criteria given below.

10 All the Individual Evaluations must be properly signed by all the

involved parties and submitted to HR Department for further processing
i.e. Bonus payments, Salary Increment & promotions w h i c h have been
discussed separately at the end of this chapter .

11 Format for the same is as per Annexure .

Performance Management System
Scoring Criteria – Deadline, Cost Impact, Frequency, Efficiency, Quality

Deadline:

The deadline is quantitative and thus can be quantified.

The points will be 100 in case the Target is achieved on or before targeted
date. In case of delay from the Target date, deduction of points will be made
as follows:
1 Deduction of 5 points for up-to 30 calendar days delay
2 Deduction of 10 points for up-to 31-60 calendar days delay
3 Deduction of 20 points for up-to 61-90 calendar days delay
4 Deduction of 30 points for up-to 90-150 calendar days delay
5 Deduction of 40 points for delay of more than 150 calendar
days

Cost Impact:

Budget Control, Profit, Overall Cost Control, Revenue Generation, Economic

Value Addition, Generation Capacity, Investment Control etc. are some of
the examples for considering cost Impact
1 The points will b e 100 in case the Targeted numbers are achieved or
exceeded. In c a s e o f shortfall in targeted numbers a n d
achieved numbers, the deduction of s c o r e will be made @ 5
points per unit shortfall.
Performance Management System

Scoring Criteria
Frequency

Frequency referred to the expectation whereby Project

Companies, Department Heads and Individual Employees are expected to
fulfill reporting
/ Information requirements t h r o u g h o u t t h e year. These
reporting / information requirements may be daily, weekly, monthly,
half yearly and yearly with some specific deadlines for submission of
report/information. The delay will be counted per number of time.

1 The points will be 100 in case the reports/information is submitted on

time always. In case of delayed submission the deduction of score will
be made @ 5 points per delay per incident for 5 working days d e l a y
and @ 10 points per delay per incident if delay is more than 5 working
days

Efficiency

While evaluating the Efficiency the aspects of Support, Services, Team

Work and e f f i c i e n t resolution of the issues m u s t b e kept in mind. In
order to measure the efficiency aspects of the Target, PMC can arrange a
survey to collect information from the related parties. The survey can
be formal or informal. Whatever score is achieved by the Project
Company, Departments (CSAIL & Project Companies), the same will be given
in the Efficiency Target.
For Individual Evaluations, the Supervisor will arrange a survey among
the related parties and follow the same procedure for giving score in
Efficiency Target.
Performance Management System

Scoring Criteria

Quality

The quality refers to the quality of equipment specifications

& manufacturing, tools, machines, maintenance, civil works, defect
& replacement rates of the parts, Legal Compliance and Compliance
of required Standards in Policy making (for example IFC
Standards, International Standards, Chinese Standards etc.).

 Quality control is to evaluate the quality problems found by CSAIL or

Owner Engineer during Internal & External Inspections.

 For scoring Criteria, CTGI Standard will be used.

Performance Management System
Evaluation System

For Company Level & Department Level

For Company Level & Department Level Targets, following are the categories
and their weightages and some explanation as to who will be responsible for
different targets:
1. Operational Targets (60%); Operational Targets will be evaluated by PMC
2. Management Targets (20%): These targets will be variable every year and
evaluators will be mentioned in the Target Sheets every year.
3. HSE Targets (10%): HSE Targets will be evaluated by E & S Department.
4. Integrity Compliance Targets (10%): Integrity Compliance Targets will be
evaluated by PMC after taking comments from Chief Integrity Officer or nominee.
For Individual Level Targets
Functional Targets (60%): To be evaluated by the Immediate Supervisor
*Urgent Targets, if any (20%): To be evaluated by Immediate Supervisor
Team Work Targets (10%): To be Evaluated by other Colleagues (to be identified by
the Immediate Supervisor). Minimum 3 colleagues should be identified and an
Average score should be taken as final.
Integrity Compliance Targets (10%): To be evaluated by the Chief Integrity Officer.
Performance Management System
Calculation formula for Final Individual Score

1. Management

Final Individual Score = {(Company Score X 70%) + (Individual Score X 30%)}

2. Department Head

Final Individual Score = {(Department Score X 70%) + (Individual Score X 30%)}

3. Individual employee under the Department

Final Individual Score = {(Department Score X 30%) + (Individual Score X 70%)}

Performance Management System
Reward & Punishment Scoring System

Rules for the Additional Points (Bonus Points)

In cases where PMC (Leadership) thinks that the Score Achieved by the Project
Companies and Department is not as per the actual performance because of the
reason that Project Company and Department has contributed significantly to the
CSAIL overall Reputation (Internal & External), Receiving Team Awards (As
Company or as Department) and Efficient & Effective Handling of Issues / Challenges
arise abruptly. For such situation, PMC may award Bonus Points up-to 10 points to the
total points.

Rules for the Punishment Points

In cases where PMC (Leadership) thinks that the Project Company and Department
has achieved score which it does not deserve because of the reasons of wrong
Decision making, major safety violations, quality issues, major environmental
protection violations, threatening public security, major confidentiality breach and
company reputational loss, the PMC (Leadership) may deduct Punishment Points up-to
10 points from the total score or directly degrade the Company and Department Grade
from higher to lower grade.
Performance Management System
Bonus, Promotion, Punishments

Performance Bonus
Sr # Company / Department Base Value
Ranking

1 Grade A 4 months Gross Salary

2 Grade B 3 months Gross Salary

3 Grade C 2 months Gross Salary

4 Grade D 0 months Gross Salary

Sr # Individual Ranking Rate of Bonus

1 Grade A 1.2 to 1.5

2 Grade B 0.8 to 1.1

3 Grade C 0.4 to 0.7

4 Grade D 0
Performance Management System
Bonus, Promotion, Punishments

Promotion to the next Grade

1. The employee should have spent minimum of 2 years in the existing position in
CSAIL or its Project Companies.
2. The performance appraisal rating should be Grade A for recent 2 years, however
one Grade B can also be considered based on the discretion of the Management.
3. The employee should fulfill the minimum criteria of the position as described in the
Job Description
4. Further preference will be given to the employees who have acquired additional
knowledge and skills by doing certifications / Diploma in the relevant field /
function.
5. The promotions will be considered in the month of January only. No midyear
promotions will be allowed in order to keep uniformity and harmony within
the system.
Performance Management System
Bonus, Promotion, Punishments

Punishments

1. For all employees receiving Grade D, Supervisors will identify the reasons and a
record it in the specified place in Individual Evaluation Form. Based on the
findings of the reason, Supervisor will recommend that whether the employee
should be served with a letter of warning or not. In case letter of warning is
recommended, HR Department will serve the letter of warning, on behalf of the
Management, and record it in the Personnel File accordingly.
2. In case an employee receives Letters of Warning (for under-performance) for two
successive years, the employee will be separated from employment.
3. The Supervisors are encouraged to help employees to improve their performance
by conducting coaching / mentoring sessions to make the employee productive
part of the company