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Four-tier structure for EPFO suggested

Special Correspondent

Plan to computerise entire system under new business model


  • Claims can be processed and settled online within three days
  • XLRI study points out disparities in workload of different units

    NEW DELHI: A four-tier organisational structure has been recommended for the Employees Provident Fund Organisation (EPFO) to integrate its human resources with the new business model contemplated under the business process reengineering exercise.

    The exercise contemplates total computerisation. Once implemented, subscribers can submit their claims for withdrawal, settlement and transfer to any EPF office and the claims would be processed online and settled within three days.

    The Jamshedpur-based Xaviers Labour Relations Institute (XLRI) has suggested the four-tier model, with a branch office at the lowest level and a corporate office at the highest. Between these two offices will be a regional and a zonal office.

    XLRI, commissioned by the EPFO to undertake a comprehensive study, submitted its report this past weekend.

    The study, carried out by a team of senior professors, headed by E.M. Rao (Personnel Management and Industrial Relations), recommended scrapping of the district office in the present dispensation and suggested the setting up of business units (branch and regional offices) that would have direct interface with the establishments and members. These business units would be relocated so as to be closer to customer-bases, the two-part report has said.

    The main thrust of the 350-page study is to infuse customer and service-orientation among the rank and file of the EPFO in the spirit of a service provider.

    The study pointed out that the glaring disparities in the workload among business units was found to be one of the major impediments to efficient and timely service to the growing number of customers.

    Specific workload norms have been recommended for the branch and regional offices based on the twin criteria of the number of establishments covered and the number of members.

    A permanent standing machinery at the corporate level to monitor the workload of business units on a continuous basis and to proactively initiate appropriate actions well in advance, in the creation of new units or recruitment of human resources, has also recommended.

    Changes in the procedures and practices, coupled with empowerment of officers to ensure prompt and timely service, strict enforcement of the provisions of the EPF Act and designating officers exclusively for customer services and grievance redressal are some other suggestions.

    It calls for restructuring of positions and pay scales, prescribes specific and measurable performance standards for employees and favours introduction of performance-related pay.

    Other suggestions include introduction of individual, group and unit-wise incentive schemes, merit-based promotions and creation of a fast-track channel for employees with outstanding record of performance besides a methodology for continuous training and development of employees at all levels.

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