Government of Nepal Office of the Prime Minister and Council of Ministers

Terms of Reference (TOR) for the Construction of Online Performance Based Incentive System (PBIS) 1. Overview 1.1 Current Manual System Performance Based Incentive System (PBIS) has been practiced in this organization since a year's duration to motivate and make responsible employees at their respective work. Currently, the PBIS system is paper based manual system. Each section prepares PBIS monthly activities, defines their monthly targets and sends it to General Administration section for approval. Once PBIS activities and indicators of respective sections are approved, each section sends monthly PBIS report to General Administration section. Based on that report and various other performance measures such as output of e-Attendance, Dress Code and others, employees are provided incentives upto maximum amount of 50% of their salary. Currently, personnel at General Administration section needs to analyze the monthly PBIS report submitted by different sections and manually calculate attendance status of each employee. The process itself is un-scientific and cumbersome. Hence, there is a need to construct an electronic PBIS system. 1.2 New Electronic System In the new software based automated system, each section will be able to send their monthly activities along with their respective indicators to general administration section for approval electronically. Moreover, the authority administered to approve the activity will approve electronically and each section sends their monthly progress of the approved activities/indicators electronically. Moreover, the system will automatically calculate the PBIS amount based on the business rules injected on it. The business rule to calculate PBIS amount to each employee should be clear and quantifiable. 2. Need to Construct Online PBIS System To enable scientific calculation of PBIS amount of each employee. To enable each section to provide PBIS activities/indicators online. To approve PBIS activities/indicators submitted by each section online. To enable each section to provide their PBIS details online. To enable cross verification of progress submitted by different agencies online. To eliminate the existing paper based system and introduce paperless electronic system To reduce the material cost, work complexity and human dependency while calculating PBIS. To enable real time online monitoring of Activity Status by respective supervisors. To provide feedback on Activity by Supervisors in real time manner.

To share the implementation responsibility among all level of stakeholders in efficient & elegant manner.

3. Features of the New System The proposed system is going to have following different features: Generic Type i.e. Suitable for many government offices. Each section is able to define their own set of tasks and activities. Ability to add units and weight for each activity. Ability to add indicators in percentage for each activity. Ability to add activities for required number of months. Ability to pre-send estimated activities. Ability to send report to administration section each month. Administration section can verify activities and forward to upper level. Ability to define rules for calculating percentage and other indicators. Can take data from Attendance Management System for attendance report. Can input data about Employee Uniform regularity. Can generate various reports based on individual, section, division and office as a whole. And many more Developed Software must use Open Source Platform (Database and Programming Language)

4. Duration: The duration to complete the construction of online monitoring system will be 3 months (approx) 4. Estimated Resources 4.1 Human Resource i) Graphical Interface Designer: 0.5 MM ii) Database Designer: 1 MM iii) System Developer: 3MM (Two developers for three months) iv) System Tester: 0.5 MM Total Man Month Required: 5 MM Note: MM=Man Months

4.2 Cost Estimation 1. Human Resource cost (3 MM programmer, 1 MM data base designer,0.5 MM interface designer, 0.5 MM System Tester) @5MM * 20000 = 1,00,000 2. Software Development Documentation cost = 10,000 3. Software Installation/ Training / Network Configuration / Operating Environment Development Cost = 18,000 4. User Support cost = 5,000 5. Software Maintenance cost on demand = 45000 6. Miscellaneous cost = 5000 Total Estimated Cost(1+2+3+4+5+6) : NRS 1,83,000 13%VAT = 23,7,90 Grand Total Estimated cost: 2,06,790 ( Two lakhs six thousand seven hundred and ninety rupees ) 5. Conclusion and Recommendations With the reference of above mentioned points, I hereby recommend concerned authorities of the office to take an action towards the construction of online automated Performance based Incentive System (PBIS).