Performance management system at mahindra and mahindra Limited
- 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.