PMS at Mahindra and Mahindra

1. Performance
Management System
at

2. What is PMS ?
• A process for establishing a mutual understanding
about what is to be achieved and how it is to be
achieved.
• Its assists organizations to plan, analyze and
manage their performance, so that decisions,
resources and actions can be better aligned with
business strategies to achieve required results.

3. Components of Performance
Management System
• Performance Planning
• Performance Appraisal and Reviewing
• Feedback on the Performance followed by
personal counseling and performance facilitation:
• Rewarding good performance
• Performance Improvement Plans
• Potential Appraisal

4. Process of PMS at
Mahindra
STRATEGY, VISION, MISSION
BUSINESS GOALS
ORGANIZATIONAL OBJECTIVES
DEPARTMENTAL OBJECTIVES
ROLE / INDIVIDUAL OBJECTIVES
KEY RESULT AREA (KRA)

5. Departmental Goal Setting
• Balanced Score Card approach
• By Robert S. Kalpan and David P. Norton’s, 1992
• Measures performance on 4 perspectives

6. Performance is measured in 4
perspective
CUSTOMER
INTERNAL
PROCESS
BSC
L & D
FINANCIAL

7. How do customer see us? Feedback
What we must Excel at?
Can we continue to improve and
create value?
How well do we look at our
stakeholders?
Internal Process
Learning and
Development
Financial

8. Individual goal setting
Communication
Workshop
Mid Term
Review
KRA Setting
Performance
Appraisal
Feedback and
Counseling

9. 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

10. 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

11. 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

12. 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

13. • 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

14. 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

15. Conclusion

16. Thank you.