PRC Tips ,
 PRC TIPS

EGM Management:

Below is a list of Tips for the Mid-Year PRC Process.  Each tip refers to 
information that we have received many questions about and would like to 
clear up any confusion.  We will be meeting with each of you individually 
before the final meetings to ensure that we have captured accurate 
information on all your employees for the meetings.  Please contact me if you 
need further information (X36019).

Exempt vs. Non-Exempt Employees:
? All exempt employees who were hired prior to Jan. 1, 2001 will be 
represented in a PRC meeting and will be ranked (those hired after Jan.1, 
2001 will receive feedback only).  Employees who transferred after 4/30/2001 
will be reviewed by their previous Business Unit.
? Non-exempt employees will receive feedback only, they will not be rated in 
a meeting, only those up for promotion will be discussed.  At year end they 
will be ranked in categories 1-3 only.

Preferred Distribution:
? The preferred distribution is as follows:
 Category 1= 5%
 Category 2= 30%
 Category 3= 30%
 Category 4= 20%
 Category 5= 15%

Descriptors vs. Ratings:
? Descriptors (highly effective, effective, etc...) are used on employee 
feedback forms only and reveal how the employee performs in a skill area 
(i.e.. communication, teamwork, etc...)
? The ratings refer to how the employee ranks next to his peers.  There are 5 
categories of performance ratings-
 -  1= relative to peers the employee is generally among the top 5% of his 
peers;
 -  2= relative to peers the employee is generally between 5%-35% of his 
peers;
 -  3= relative to peers the employee is generally between 35%-65% of his 
peers;
 -  4= relative to peers the employee is generally between 65%-85% of his 
peers;
 -  5= relative to peers the employee is generally among the bottom 15% of 
his   peers.
mike.mcconnell@enron.com, jeffrey.shankman@enron.com, 