2. What is PMS ? PMS is the process of assessing progress towards achieving predetermined goals. It involves building on the processes, adding the relevant communication and action on the progress achieved on these predetermined goals, helps the organization to achieve their strategic goals
3. Essential Components of a Performance Management System are: A performance plan is negotiated between a manager and employee for a given period (usually one year). During the year the manager gives employees feedback Performance is appraised at year-end decisions are made to reward, discipline or develop employees. The cycle is completed with a new performance plan.
4. THE MAHINDRA GROUP Mahindra is the market leader in multi-utility vehicles in India. Only Indian company among the top three tractor manufacturers in the world. The Group has a leading presence in key sectors of the Indian economy, including the Automotive, financial services, trade & Logistics, Automotive components, Information Technology and Infrastructure Development.
5. Process of Goal Setting in Mahindra STRATEGY, VISION, MISSION &BUDGET BUSINESS GOALS ORGANIZATIONAL OBJECTIVES DEPARTMENTAL OBJECTIVES ROLE / INDIVIDUAL OBJECTIVES KEY RESULT AREA (KRA)
6. What is balance score card ? Balance Score card is a unique management method which outperforms the traditional methods of performance evaluation owing to its ability to give an integrated view of the organization, by incorporating both the financial and non financial parameters. It can be used to significantly improve implementation of objectives and strategies. It provides a mechanism for controlling and monitoring the organizational progress. A balance scorecard is a way of communication to keep the team members up-to-date, help in translating strategy into operational and measurable terms and achieve strategic implementation.
7. Departmental Goal Setting Balanced Score Card approach By Robert S. Kalpan and David P. Norton’s, 1992 Measures performance on 4 perspectives
8. It improves financial performance by making better resource allocation, investment trade-offs and gives feedback on past performance which serves as direction for future course of action. It directs the Physical, human and financial resources to plan and policies which would give the maximum output.
10. Feedback How do customer see us? Internal Process What we must Excel at? Learning and Development Can we continue to improve and create value? Financial How well do we look at our stakeholders?
11. INDIVIDUAL GOAL SETTING Communication Workshop KRA Setting Performance Appraisal Mid Term Review Feedback and Counseling
12. Step 1 : Communication Workshop 2 day workshop in the month of May.-June ‘KRA Setting’ and how to conduct performance appraisal’ Useful to both Appraiser and Appraisees
13. Step -2 KRA Setting Individual Goal Linked to Business.i.e. 3-5 KRA’s Set after discussion between appraiser and appraisee Forms a basis for the calculation of performance payout The KRA sheets are sent to Corporate HR Department
14. Step-3 Mid Term Review Conducted in the month of October Measure and evaluate performance in terms of the goals set Discussion of correction measures
15. Step-4 Performance Appraisal Done in the month of April Employees are reviewed on the basis of achievement of KRAs, assessment of significant tasks other than KRAs Leadership competencies - M&M Ltd has adopted 7 leadership competencies Employee’s feedback is recorded
16. Discussion is held between appraiser & reviewer to jointly arrive at overall rating of the employee For the performance pay calculation, the overall performance is divided into two parts: -Business Performance-Individual Performance
17. Step-5 Feedback and Counseling Appraiser gives feedback to the subordinate immediately after the final performance appraisal Reviewing if all the employees have got the appraisal report
18. Why performance appraisal is needed? Helps in identifying Areas for Improvement. Provides development opportunities for the growth of people. Generate Data for actions relating to Increments, Promotions, etc.
