Give the best possible summary of the third paragraph.
Directions: Read the following passage and answer the question that follows:
People are definitely a company’s greatest asset. It does not make any difference whether the product is cars or cosmetics. A company is only as good as the people it keeps. The success of any organization depends on how the performers are rewarded and how much the non-performers go unnoticed in the system. Several organizations have called for introducing a robust performance based compensation system that basically fixes accountability on the employees and compensates them accordingly. There are calls for introducing variable pay systems, ESOPs etc. However, practical these solutions might seem at present, the possible fallouts of such systems must be kept in mind. Introducing such systems on the lines of private sector banks will essentially hit at the core of the culture of the public sector banks and the relationship that it has with its employees. And, since it is clear that it will be very difficult for the PSBs to actually pay at the levels of the private sector banks, introducing such a system would essentially mean affecting one thing that still attracts people to such jobs that is the emotional connect in terms of pride etc. Also, it will mean incentivizing managers to take decisions that maximize short-term profits and in the process probably affecting long term prospects.
Keeping in mind the responsibility that the PSBs have towards the society as a whole (something the private counterparts cannot be held accountable for), it is very important that managers at the PSBs take decisions that positively affect the long terms prospects of the banks. Introducing such explicit performance oriented systems can negatively affect the pursuit of such goals. It does not, however, mean that the banks need not lay stress on the performance. Obviously, there is a need to revamp the performance evaluation systems, probably introduce modern systems like 360 degrees appraisal etc. Also, the general compensation levels may need to be looked into and possibly increased as may be possible.
There is a requirement of the introduction of scientific manpower planning. We need to scientifically come up with parameters and benchmarks against which the productivity of the employees can be measured. Welfare of the employees needs to be looked into and it is a very important part of the talent management. There needs to be substantial increase in the allocation of welfare fund for the welfare and especially for the welfare of the retired employees. It is equally important to increase the involvement of the employees in general and the new recruits specially. In this context the policy of reward and punishment must be revamped. Any disciplinary proceeding against an employee regarding procedural lapses must be completed within the shortest possible time. It must be kept in mind that employee faces least mental harassment since the employee is nearly non-productive in this period. The above matters are very important in keeping the motivational level of the employee intact because it is now an established fact that only a motivated employee can deliver results. “The highest reward for a man’s toil is not what he gets for it, but what he becomes by it.”
Creation of congenial climate for talent nurturing calls for creation of atmosphere where employees are adequately and correctly compensated for their performance; and their talents and performances are recognized and appreciated. Apart from having right climate, the other important issues that one looks into before giving a medium to long term commitment for a career, is satisfaction arising from job enrichment/rotation, getting recognition for doing a good job, expectation of performance-based payment, flexibility in terms of job hours and other related aspects, both monetary and non-monetary incentives and a fast track promotion process through which one can look for prospects of a good career ahead. This becomes all the more important because today’s employee compares his job with the kind of job his friend/peer might be having at a private sector counterpart. More flexibility at the level of bank in deciding the compensation level reflecting the capacity of the bank to pay will be a welcome step. Today, all negotiations and settlements are reached at the industry level. There needs to be a difference in the amount being paid at a low-performing and a high performing bank. Such steps will motivate the employees of a bank on the whole to work harder and, more importantly, together. (The Indian Banker, Jan 2012)