Monday, August 30, 2010

Can we choose our own pay hike?

As someone pointed on Twitter in early June, the UPA Govt did the unthinkable, or rather the Govt did what was the dream of every student, "to publish their own report card". If the ministers of the Govt set such standards, can the MPs be far behind? Around a week back, the MPs signed their own hefty (300%) pay hike!!! God how we wish we could decide our own pay hike, but then if we do have such a power would we really be as greedy as our MPs?


The Yadavs who weren't satisfied with what they looted in Bihar & UP wanted a hike in the salaries of MPs. The reason, they felt MPs were earning lesser than the bureaucrats. But who are to question that the average wealth of the MPs are Rs. 5.04 crores. What justifies the hike, when most of the MPs have just 60% attendance in the Loksabha? How come the attendance of the house was the highest when the MPs were discussing the MP salary hike, but the same enthusiasm was not shown by the MPs while discussing serious issues like price rise debate or the direct tax code (which by the way has been postponed to 2012!!).
If only democracy and the Govt functions as the corporate world does we could have expected the following:
  • MPs would be elected on probation for 6 months after an election. Their pay structure must be 50% fixed pay and the remaining 50% would be variable. Out of this variable pay 50% would be paid out based on the performance of the MP, 25% based on the performance and responsibility of the MP's political party and the remaining 25% will be paid out based on the growth rate of India.
  • The elected MPs objectives will be at the begining of the term based TOR (Terms Of Reference). These objectives have to be both qualitative and quantitative. With suitable weightage added to each objective.
  • There will be a half yearly appraisal of the MP's performance where in the MP has to approach his/her constituency and get the feedback of the people who elected him/her.
  • The MPs have to sit for an annual appraisal every financial year, where in he/she have to approach the consituency again for the feedback.
  • Each MP will be appraised and given a particular performance rating of 1 to 5 (Where in 1-Consistently exceeds expectation;2-Exceeds expectations occassionaly;3-Sticks to the expectation;4-Falls short of expectation;5-Non performer).
  • This rating will have to follow a bell curve i.e only 5% of MPs can be appraised as rating 1, 10% can be appraised at rating 2, 65% must be appraised at rating 3; 10% must be appraised at rating 4 and 5% will appraised at rating 5%.
  • MPs with rating 1 will be eligible for 100% of their variable component; rating 2 will be eligible for 90% of their variable component; rating 3 eligible for 75%; rating 4 and 5 are not eligible for the variable component at all.
  • MPs with rating 5 will need to have a Personal Constituency Development plan in place against which their performance will be monitored every month, if the MP falls short of expectation again; the MP will lose his post and by-election has to be conducted in that constituency.
I don't mean to say that the corporate appraisal method is ideal way to determine the pay hike, obviously there are loopholes in that process as well, but then it is definitely better than the way the MPs decide to sign their own hike. The "aam admi" gets the price rise, while the MPs are fested with pay hikes. But then the method I sighted occurs only in utopia, or rather utopian democracy. What we see in India today is Democrazy!!

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