This document provides information on the performance management systems of HDB Financial Services and Mahindra & Mahindra Financial Services. It begins with an introduction to the two NBFC organizations and outlines their product portfolios. It then describes the goal setting process, which involves communicating KRAs, setting targets, mid-term reviews and final performance appraisals. Various assessment tools used are also summarized, including self-appraisals, 180-degree feedback and forced distribution. The document concludes that understanding these NBFCs' PMS procedures provides insight into effectively executing performance management systems.

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Jaipuria Institute of Management, Jaipur
Course: Performance Management System
Term: IV Term (Year: 2018-20)
Report
On
Performance Management System of NBFC Sector
Submitted By: -
Name
AnushkaAgarwal
Kriti Sharma
ShubhamKumar
ShubhamRathi
Swikriti Jha
Vidushi Mathur
Submitted To: - Dr. Anvay Bhargava

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ACKNOWLEDGEMENT
“It was not possible to prepare a project report without the assistance and encouragement of
other people. This one is certainly no exception.”
On the very outside of this report we would like to extent our sincere and heartfelt obligations
towards all the personages of NBFC sector who have helped us in this endeavour. Without their
active guidance, help, cooperation and encouragement, we would not have made headway in
this project.
We are thankful and pays our gratitude to our faculty of Performance Appraisal System for
his valuable guidance and support on completion of this project in it’s presently.
We extend our gratitude to “Japura institute of management, Jaipur” for giving us this
opportunity.
We also acknowledge with a deep sense of reverence, our gratitude towards all the team
members, who were very supportive for the completion of the project.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking you
Group 6

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TABLE OF CONTENT
S. No. Particulars Page No.
1 Acknowledgement 2
2 Chapter 1 : Introduction 4
3 Chapter 2 : PMS Information 8
4 Chapter 3 : Goal Settings 9
5 Chapter4: Assessments 12
6 Chapter 5: Performance Management and Employee
Development
16
7 Chapter6: Conclusion 17
8 Chapter 7 : References 18
9 Annexures 19

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CHAPTER 1 (INTRODUCTION)
Non-Banking financial companies are registered under companies act. It is divided into two
segments organized and unorganized sector (partial hold of government) the financial services
are offered by these companies are quite similar to that of Banking services. They help in
bridging up the gaps of the needs of the people. Financial sector is one of the most spreading
sector for the developing countries like India. this consist of financial markets, institutes.an
NBFC organization is an organization which has a key business of providing loans and the
services or a portions by the method or some other way viewed as NBFC
About Organization
HDB financial Services
HDB Financial services is a subsidiary company of HHDFC bank which is one of the biggest
private sectoral bankof india. HDB. The organization has a characterstics of vision of being an
NBFC . offering many services to public dealing in goal loan, loan against property, auto loans,
business advances.
Product Portfolio
LOANS: providing loans
 Secured Loans:
o Securities
o Against Shares
o Against Property
o Gold Loans
o Car Loans
o Enterprise Business
o Equipment Loans.
 Unsecured Loans
o Personal loans
o Business Loans
 Insurance
o Life Insurance

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o General Insurance
MAHINDRA FINANCE
Mahindra and Mahindra finance is the subsidiary of Mahindra and Mahindra Limited (Mcap:
Rs 859 billion)*It is india`s largest tractor and utility vehicle manufacturer
The key business area is the financing purchase of new equipment’s and pre-owned auto and
utility vehicles, tractors, cars, commercial vehicles, construction equipment’s and SME
financing.
Product portfolio
 Loans for auto and utility vehicles, tractors, cars, commercial vehicles and construction
equipment
 Loans for pre-owned cars, multi-utility vehicles, tractors and commercial vehicles
 Loans for varied purposes like project finance, equipment finance and working capital
finance
 Offers personal loans typically for weddings, children’s education, medical treatment
and working capital
 Advises clients on investing money through AMFI certified professionals under the
brand “MAHINDRA FINANCE FINSMART”
 Insurance solutions to retail customers as well as corporations through our
subsidiary
 Loans for buying, renovating, extending and improving homes in rural and semi-urban
India through our subsidiary MRHFL
 Asset Management Company/ Investment Manager to ‘Mahindra Mutual Fund’, which
received certificate of registration from SEBI
PESTLE ANALYSIS

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Pestle analysis of the industry will show the factors affecting the sector and its functioning for
the decision making and other objectives. In today’s world financial sectors is dealing in
providing many services such as home loans, personal loans, car loans etc. This sector is so
competitive that if one fails to grab the opportunity then it becomes the cream for others.
POLITICAL FACTOR: Finance industry is related and linked to the government rules and
regulations, the government laws is playing an important role in the same. The another political
factor is about the change in BS 3 TO BS 4 in engine which is giving an decline in the sector
not only this the resent news is about the rib s strict law to enter into thence market and the
disbursement policy of the Loans which is an another factor for the decline in the disbursement
of loans
ECONOMIC FACTOR: financial sector is playing a crucial role in the economic progress of
the country which is at a decline stage. The growth in India for the financial sector is 8.5%.
Automobile industry and the farm equipment sector is at decline state now which will also
affect the growth of the sector. If we discuss about the FDI`S the government has strict policies
regarding this but if there will be FDI then the sector will pick up the raising point and will in
return gives an boom to the financial industry. Application of GST has increased 5% growth
in the market. But the economic factor is affecting the industry in both positive and negative
way both.
SOCIAL FACTOR: It is affected by the social causes as it is providing the social support /
financial support to the economy. As the population is increasing the demands are also
increasing day by day. People are getting more concern about the social status so it is fulfill ing
the needs and services of the people by creating the needs and with but on the contrary part the
mindset of the people is not getting changed for providing and fulfilling the needs of the people.
But as the time will change the mindset of the people will also change and the sector will grow
more.
TECHNOLOGICAL FACTOR: The rapid changing era of digitalization the world is also
focusing upon AI and have frequently upgradation of the list of the companies and the sector.
People have started dealing in virtual currency the easy and the smart way to deal with the
target audience. If in the rapid digitalizing world the technology should be upgraded and the
adaption because the financial industry is the fast growing industry. The increase in technology
improves the quality of the services provided.

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LEGAL FACTOR: It is related to the rules and regulations Legal factor is related to the legal
environment which restricts the companies or sectors to perform according to themselves they
have to undergo a proper guidelines and the policies for the working as they are dealing in the
finance and they are also supported by the government to reduce the risk on the contrary the
repayment of the loans is increased money is blocked so the sector has to follow strict rules
and regulations for getting their money back and which also affects the industry life cycle

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CHAPTER 2 (PRELIMINARY INFORMATION)
The whole project is evolving around the information provided by the following
COMPANY NAME: HDB Financial services
Employee Name Designation Location
Surendra Pratap
Singh
Relationship
Manager
Lucknow
COMPANY NAME: Mahindra & Mahindra Financial Services
Employee
Name
Designation Location Contact Details
Ankur
Chartuvedi
Regional
HR,Rajasthan
Jaipur,RO Chaturvedi.ankur@mahindra.com
Subroto Sarkar Circle Head
HR
Delhi RO Subroto.sarkar@mahindra.com
Abhishek
Shrivastava
Territory HR Jaipur RO Sharma.abhishek@mahindra.com
Tarun Sharma Territory
Manager
(DMT-Delhi
Circle)
Jaipur RO sharma.tarun3@mahfin.com
Human resource department of the organization assisted in providing the information about the
performance appraisals methods used and the criteria for the appraisals and how the procedure
is conducted for the appraisal of the employees.
Also the Direct marketing department (Territory Manager) and Relationship Manager Officer
has shared the goal sheet and the performance appraisal criteria’s and the weightage given.
Organization also shared the review done and the process of the appraisal done and the Post
Appraisal procedure and the steps taken.

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CHAPTER 3 (GOAL SETTING)
GOAL SHEET FOR BOTH THE ORGANIZATION
S.No. KRA`s` MEASUREMENTS WEIGHTS
1 Code Creation/Id creation Xx
2 Project – Existing Customer (Loan
Advancing )
Conversions-(Leads to
business)
Xx
3 Project-New Customer (Loan
Advancing )
Conversions- (Leads to
Business)
Xx
4 training employees on
policies/programs/skills/OTJ
Number Of Employees xx
The goal sheet of the organization is specified and are made on the basis of SMART goals
components. Which Specified, Measurable, Attainable, Result Focused, Time Oriented.
Goals are set on the basis of the working of the employees and the business to be maintained
for that quarter/Year/Month and the last performances the employee has made.
The review of these KRA is bifurcated into quarterly goals. And monthly goals but the final
appraisal is made on the overall achievement of the yearly goal sheet.
Under KRA`s of the organization they are made on the basis of the project running by the
department/ vertical for the existing customers the new customary they have to pitch and other.
These projects are given weights and the measurements of the projects are on the basis of the
conversion of the leads into business.
PROCESS FOLLOWED
The procedure of the performance appraisal followed by the organization is discussed below:

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COMMUNICATION
The first task for the performance appraisal is communication of the KRA. The communication
of the KRA is being done every year in the month of May or June in that the goal’s projects
are being discussed and the specification for the goas has to be set. It helps to get the clear
knowledge how the appraisal will be conducted.
KRA SETTING
These targets are set after the discussion with the superior. The signature of both the parties are
taken and then these sheets are sent to the Head Office for the approval.
These goals are given different weights depending upon the projects going on and the
importance of the project. And then the rating for the same is given by the reporting for the
appraisal.
If the last year`s performance of the employee is good then new projects are added to the KRA.
MID TERM REVIEW
o Mid-term review is conducted in month of October and September.
o The discussion regarding the achievement is done.
o If employee fails to complete the given KRA then the problems are discussed and then
further action is taken upon it.
PERFORMANCE APPRAISAL
o The review or the performance appraisal is done in the month of April and May.
o Employee and the superior they both sit together and discuss and fill the significant
tasks and the achievements sheet of the KRA
o They fill up the appraisal forms on which the assessment is carried out the criteria for
the assessment is :
 Performance appraisal on the basis of goal set and the actual work done
 Training and development needs of the employee done

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o The validation of the scores further is done by the Regional HR circle head and the
ABMs in which employees are rated on two basis
 Performance pay rating
 Overall rating
o The performance pay rating is given on the scale of 1 to 5.
o On the basis of the KRA : No distribution is there for this
PERFORMANCE CALCULATION
The calculation of the performance is done on both that is the business and individual
performance will be taken into consideration.
These scores are then considered and then distribution for the scores is done and compared and
then according to the criteria followed appraisal is decided.
In the month of July end and August these appraisal letters are given to the employees.

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CHAPTER 4 (ASSESSMENTS)
Assessment Tools Used:
SELF APPRAISAL
Self-appraisal is one of the best way for the communication between the department and the
team. Self-appraisal assessment help in self motivating the employee.it helps in getting a
critique for their own goals and the behaviour It helps in identifying how an employee see
themselves as a team player and a team leader. Also it helps me highlighting the
misunderstanding and the disagreements between subordinate and the appraiser. And self-
assessment is one of the great way to improvise yourself and honesty.
SAMPLE SELF APPRAISAL FORM
Employee Performance Appraisal Form
Employee Name
Date of Review:
Department/Vertical
Branch:
Reporting Name
Bell Curve distribution180 degree appraisalSelf Appraisal

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Please rate yourself on the following scale of 5
5 Significantly exceeded expectation
4 Achieved Expectation and exceed on few
3 Achieved Expectation
2 Achieved most expectation
Section1
KEY RESPONSIBILITY EXPECTED OUTCOME SELF RATING
Section2
Criteria’s Marks/Ratings( On above mentioned Scale)
5 4 3 2
Job Knowledge/Domain
Expertise
Oral Communication
Written Communication
People Skill
Journalism skills
Persuasion Skills
Productivity
Employee Signature:
Date :
Reference: Employee and HR Team

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The self-appraisal form is then submitted to the appraiser and then the next appraisal
assessment is followed.
180 DEGREE APPRAISAL
The method used for the performance appraisal is 180 degree appraisal in this method a meeting
is conducted between the appraisers and appraise. In this meeting as the employee has been
given an appraisal form for self-rating then appraisal is done on that basis .this method helps
in to observe there subordinate more closely and clearly.
While the appraisal is being discussed there is a particular format used by the appraiser and he
also mark his ratings and views about the same. This appraisal sheet is then signed by both
appraiser and appraise and then sent to Head office for further discussions and the results.
FORCED DISTRIBTION
Every appraisal method has its own pros and cons keeping in mind the rules and the
requirements of the organization it uses these method for appraisal.
In forced distribution method the employees are categorised on the basis of their final scores
of their performance and then the distribution is done in which employees of the organization
is scaled into three parts that is the High/Top performer employees , the Average performer
and the Low/Non- performer employees.

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These formats and the criterial is then distributed on the Bell curve with the scores of all the
employees of individual development and the KRA I.e. the business goals and then the
appraisal of the employee is done on that basis .
The organization is easily able to identify the stars of the business. This helps the organization
as a motivating tool to perform better and also pushes the management to deal with the issues.
Sometimes because of this the great performers are also left behind because of the force
distribution and the criteria set which leads to discrimination among the employees.
After this the sheet is reviewed and discussed by the superior with one to one discussion and
then the loop holes are discussed and the appraisal is done as per the above mentioned tools.

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CHAPTER 5 (MANAGING PERFORMANCE)
The success of an organization depends upon how and employees develop himself.
Realizing how worker potential may appear to be similarly as foggy, even while moral support
and turnover is at beginning levels. Flipping those elements may include a few distinct
arrangements.
Prior to following up on one arrangement, ensure you comprehend why representatives are
failing to meet expectations first. This data is significant to guaranteeing the arrangements you
pick truly take care of the issue.
DEVELOPMENT PLANS
 Mentoring: when the appraisal is done and if the organization is seeking for succession plan
at that time this mentoring helps a lot for guiding the employee for the new role. And if the
results of the appraisal is not in favour then mentoring is used for employees to remove the
loopholes and hindrance. Mentoring is done for exercising in particular skills.
 Coaching: on the job training is give after the appraisal and if any new project has to be
included or there is any change in the role of the employee then trainings are provided. On
the job trainings are included in this and this is beneficial if the employee has not been
appraised then this also used.

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CHAPTER 6 (CONCLUSION)
From the discussed performance management system and procedure used by both the
organization we get the understanding of PMS and the ability of its execution. In both the
organization.
Starting with the PESTLE analysis of the sector and then analysing the need of PMS system
and understanding the PMS system of both the companies. For this we created the goal sheets
with the reference of the actual goal sheet and then identified the requirement and then
understand the techniques of goal setting and then followed the procedure for PMS. After that
we created the assessment sheet for the self-appraisal
There were different competences on which the candidate can rate and further assessment can
be done.
The methods used for the appraisal is 180 degree appraisal and for self-appraisal the form was
created for self-appraisal and the ratings on the scale of 5-2 has to be given. Also the weights
were assigned for the project with different criteria. Then these scores rating is done with
normal distribution curve and then appraisal is being decided.
We also understood the concept of different performance appraisal and pros and cons of the
different methods of performance appraisal.
We comprehended the idea of execution of methods and when they are utilized and person and
job fit. There are numerous of execution devices dependent on various parameters and
contrasting organization to organization.
Examining the exhibition of the correct workers with the correct device can be trying for the
organization in the light of the fact that there are mistakes as well, however the prices of an all-
around developed execution the executive framework can be huge, on the ground that
successful PMS is the establishment on which evaluation program is constructed.

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CHAPTER 7 (REFENCES)
1. https://phdessay.com/performance-appraisal-of-mahindra-finance/
2. https://www.bartleby.com/essay/Performance-Appraisal-of-Mahindra-Mahindra-
P36Y5CK4KRYYS

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ANNEXTURE
Goal/KRA sheet of Mahindra Finance and the appraisal sheet ratings of Direct Marketing.
Ratings
Sr.
No KRA's Measurement
Weig
htage 5 4 3 2
1
MFSUTRADHAAR (Per
Mth Per EDMT)
FINAL CODE 15 40 30 20 10
BISZ
CONVERSION(mi
n 50% leads from
total Sutradhaars)
10 20%
15
%
10
%
8%
2
PROJECT RESPONSE
BISZ
CONVERSION 15 15%
12
%
10
% 8%
3
LEAD MANAGEMENT
- MFCW APP
LEADS ENTRY IN
MFCW APP
15
no
of
ED
MT
*10/
day
no
of
ED
MT
*8/
day
no
of
ED
MT
*6/
day
no
of
ED
MT
*5/
day
4
NOC RETENTION % RETAINED 15 30%
25
%
20
%
15
%
5 OEM LIASONING FOR
ACTIVITIES
NO OF
ACTIVITIES/MON
TH 15 10 8 6 5
6
IMPLEMENTATION
OF PROJECT
NAVRATNA
EXTENT OF
IMPLEMENTATIO
N ACROSS
DIVISION
10
100
%
80
%
70
%
60
%
7
Identification of gaps in
employees and training
them on
policies/programs/skills/O
TJ to make them future
ready
NO OF
EMPLOYEES
TRAINED
5 5 4 3 2

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