Link pay with productivity, recommends finance panel

1. Link pay with productivity,
recommends finance panel

2. Contd..
The 14th Finance Commission has suggested linking pay with
productivity with a focus on technology , skills and incentives,
a move aimed at raising the productivity of government
employees. The panel has recommended that in future
additional remuneration be linked to increase in productivity .
The Seventh Pay Commission is expected to submit its
recommendations by August and it has been asked to look at
the issue of raising productivity and improving the overall
quality of public services in the country .
The Sixth Pay Commission had also said that steps should lead
to improvement in the existing delivery mechanism by more
delegation and de-layering and an emphasis on achieving
quantifiable and concrete end results. Emphasis is to be on
outcome rather than processes, it had said. The earlier Pay
Commissions had also made several recommendations to
enhance productivity and improve administration.

3. Contd..
The 14th Finance Com mission's recommendations assume
significance at a time when the Narendra Modi government has
focused its attention to improve the delivery of public services
and is taking steps to use technology to improve efficiency .
The Union government has taken several steps to shore up the
bureaucracy and has changed the way attendance is measured
in government offices.
“Further we recommend that Pay Commissions be designated
as Pay and Productivity Commissions with a clear mandate to
recommend measures to improve productivity of an employee,“
said the 14th Finance Commission headed by former Reserve
Bank of India Governor Y V Reddy .
The Reddy panel said productivity per employee can be raised
through the application of technology in public service delivery
and in public assets created.

4. Contd..
“Raising the skills of employees through training and
capacity building also has a positive impact on
productivity. The use of appropriate technology and
associated skill development require incentives for
employees to raise their individual productivities,“
the Reddy led panel said.
“A Pay Commission's first task, therefore, would be
identify the right mix of technology and skills for
different categories of employees.The next step
would be to design suitable financial incentives
linked to measureable performance,“ the panel said.
An internal study by the panel showed the
expenditure on pay and allowances (excluding
expenditure for Union territories) more than
doubled for the period 2007-08 to 2012-13 from Rs
46,230 crore to Rs 1.08 lakh crore.

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