Executive Summary: Performance Management System
Executive Summary: Performance Management System
Executive Summary: Performance Management System
EXECUTIVE SUMMARY
Effective management of people is a key to ensure that the organization makes the best use
of the talent it has at its disposal and the contribution of every employee towards the achievement of
corporate goals and objectives is maximized.
Mahindra and Mahindra groups is a leading industry with a manpower of around 22000
employees. With such a large manpower existing in the company the HR department of such a
company plays a major role. I selected performance management system as my topic as it is the
one of the unique processes practiced in Mahindra and Mahindra groups.
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INTRODUCTION
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1. Primary objectives:
• Study of performance management system at Mahindra First Choice Services
ltd.
• Conduct survey for understanding overall effectiveness of PMS target setting
process and give recommendations.
1. Secondary objectives:
• Observing Performance Review discussions and their effectiveness in Target
setting process.
• Understanding operational issues at Target setting process and helping
employees through training support.
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• Confidential information:
Few areas where it is found that company is not ready to disclose their policies, that
puts some sort of restriction to my project work.
• Sample size:
Mahindra first choice services ltd .being a very large organization the sample size
adopted was random stratified sampling. So it was not possible to interview each and
every employee.
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Research
Methodology
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RESEARCH METHODOLOGY:
Research as defined by Redman and Mory refers to a “systematized effort to gain new
knowledge”. It is actually a voyage of discovery. Research is an academic and such should be used
in a technical sense. It is thus, an original contribution to the existing reserve of knowledge making
for its achievements. It is aptly the pursuit of truth with the help of study, observation, comparison
and experience. As such the term ‘research’ refers to the systematic method consisting of
formulation of hypothesis, collecting the facts or data, analyzing the facts and reaching conclusions
either in the form of solution towards the concerned problem in certain generalization for some
theoretical formulation.
The research carried out could be cited out as descriptive, qualitative and quantitative.
PRIMARY DATA:
Observation:
Observing the target setting process discussion and taking active
participation in it.
Telephone:
Solving of the PMS queries while the process is ongoing or
online and providing required details.
Questionnaires:
Survey feedback of target setting process through preparation of
questionnaires.
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SECONDARY DATA:
Intranet:
The secondary data was taken from the intranet site
Newspapers:
Some of the information regarding the current importance of
PMS was taken from Indian express.
Periodicals:
Data from the periodicals was used to understand the whole PMS
process specially the mid-term review and final review.
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QUESTIONNAIRE:
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To meet the needs of the business and the management. {Rather than just serve the
interests of the employees}.
To link human resource strategies or policies to the business goals and objectives.
To find ways for human resources to “add value” to the business.
To help a business gain the commitment of its employees to its values, goals and
objectives.
HRM is relatively a new term what was earlier called as personnel management. This is a
management function which helps managers to plan, recruit, select, train, develop, remunerate and
maintain members for an organization. Human resource management, in the sense of getting things
done through people. It’s an essential part of every manager’s responsibilities, but many
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“People are our most valuable assets” is a cliché which no member of any senior
management would disagree with. Yet, the reality of many organizations is that their people remain
under valued
under trained
under utilized
poor motivated, and consequently
perform well below their true capability.
The objectives of HRM are basically drawn from and contribute to the accomplishment of
the organizational objectives. The other objectives of HRM are to meet the needs, aspirations,
values and dignity of individual employees having due concern for the socio-economic problems of
the community and the country.
To create and utilize an able and motivated workforce to accomplish the basic organizational
goals.
To establish and maintain sound organizational structure and desirable working relationships
among all the members of the organization.
To secure the integration of individual or groups within the organization by co-ordination of
the individual and group goals with those of the organization.
To create facilities and opportunities for individual or group development so as to match it
with the growth of the organization.
To attain an effective utilization of human resources in the achievement of the
organizational goals.
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To identify and satisfy individual and group needs by providing adequate and equitable
wages, incentives, employee benefits and social security and measures for challenging work,
prestige, recognition, security and status.
To maintain high employee morale and sound human relations by sustaining and improving
the various conditions and facilities.
To strengthen and appreciate the human assets continuously by providing training and
development programs.
To provide fair, acceptable and efficient leadership.
To provide facilities and conditions of work and creation of favorable work atmosphere for
maintaining stability of employment.
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The HR managers of today may find it difficult because of the rapidly changing business
environment and therefore they should update their knowledge and skills by looking at the
organization’s needs and objectives. The HRM challenges are:
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Psycho-social environment:
Nowadays employee participation is required not only in performing job but
also in democratizing humanizing the institution.
Employee satisfaction:
Managers should be aware of techniques to motivate their employees so that
their higher level need can be satisfied.
Modern technology:
There would be unemployment due to modern technology and this could be
corrected by assessing manpower needs and finding alternate employment.
Computerized information system:
This is revolutionary in managerial decision making and is having impact on
coordination in the organization.
Legal environment:
To meet the changes in the legal environment, adjustments have to be made to
the maximum utilization of human resources.
Managing human relations:
As the workforce comprises of educated and uneducated, managing the
relations will be of great challenge.
In spite of all the problems the HR managers are able to overcome all these problems with
the support of the management and employees. In the current business world managing employees
is becoming a complex task and this can be handled effectively only by our great HR leaders.
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Human resources management has its own limitations also. Though personnel management
has been in practice for quite some time now, Human resource management is of recent origin.
Some companies already have their personnel management departments while some have taken
initiative to appoint human resource managers to look after their personnel function. What is
actually needed is the fundamental change in attitudes, approaches and the very management
philosophy.
At least some HRD people hold the view that HRM is something very distinct from
personnel management and neglect the importance of personnel management. This is very
dangerous approach. It must be understood that a balanced and integrated approach is necessary.
Actually speaking the philosophy outlook, attitude, and approach to the company own people may
undergo a change not only for top management but other levels of management. Then an integrated
approach to HRM is necessary i.e. it becomes the part of the personnel management, while the
whole personnel function must be viewed through the human resource angle.
HRM philosophy and thrust must come from the top and accepted by people at all levels. But
unfortunately in many organizations top bosses remain passive leaving the HRD functions to be
carried out by the personnel manager waiting for the result to come. If good result emerges the
credit will go to the magnanimity of the boss and all the discredit remains with the personnel
manager. Hence the personnel manager will look at the HRD program with suspicion. This is a very
serious limitation.
Management must not be satisfied with the few training program as it happens in some
organizations now. HRM functions must constantly strive to determine the actual needs and an
aspiration of the companies own people and plans to satisfy them, develop their potentiality and use
them. But unfortunately management’s productivity and profitability approach still remains
undisturbed in many organizations. HRM is of recent origin as it lacks universally approved
academic base.
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Most of the HRD programmers are limited to the classroom training in many organizations.
This is another drawback of HRD. On the job training developmental programmers, career planning
and career counseling are used to develop people. Actually speaking, unless a proper learning
atmosphere is created no training program would be able to produce expected results.
In many organizations adequate information and database may be lacking. This is serious
threat to accuracy of information without HRM practice is difficult. Collection storing and retrieval
of information must therefore be given first priority which many manager neglect.
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Throughout your career, your performance will be monitored and appraised, and your
level of salary, rank, and responsibility will depend on how well you satisfy the established
criteria for job performance. Of course, the performance management of your work is not
new to you. It has been going on since we started school. Our performance has been
appraised through class room examinations, term papers, standardized tests and oral
presentations- all techniques designed to assess the quality of our work. In principle, they are
similar to the techniques used on the job, and the results of these evaluations obviously have
an important bearing on your future.
Although you may not take formal examinations during your years with an
organization, performance management at work are just as important as those in college. Our
pay raises, promotions, and job duties affect not only our income and standard of living but
also our self esteem, emotional security, and general satisfaction with life. In a sense we are
never finished passing tests; once we have been evaluated and hired by a company, our
performance will continue to be assessed.
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• Administrative, for use with personnel decisions such as pay increases and promotions.
• Research, usually for validating selection instruments.
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• Employee improvement:
Performance management programs should provide feedback to employees about their
job competence and their progress within the organization. Psychologists have found that this
kind of information is crucial to maintaining employee morale. Appraisals can also suggest
how employees change certain behaviors or attitudes to improve their work efficiency. This
purpose of performance management program is similar to that of improving training. In this
instance, however a worker’s shortcomings can be altered through self – improvement rather
than through formal retaining. Workers have a right to know what is expected of them – what
they are doing well and how they might improve.
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LABOR UNIONS:
Labor unions require that seniority (length of service) rather than assessment of
employee merit be taken as the basis for promotion. However, length of job experience alone
is no indication of the ability to perform a higher level job. Senior people must be given the
first opportunity for promotion, but they must qualify for that promotion because of their
abilities, not solely because of length of service. Performance evaluations can provide a
reliable basis for decisions.
EMPLOYEES:
Few people like to be tested or evaluated, particularly if they anticipate an unfavorable
rating. Not many people are so confident of their skills that they expect consistently to
receive praise from their superiors. And few of us welcome criticism, no matter how
objective it is or how tactfully it is offered. Because many of us would rather not be assessed
and be told of our weaknesses or deficiencies, we may react with suspicion or hostility to the
idea of performance management.
MANAGERS:
Managers who have had unsatisfactory experiences with inadequate and poorly
designed performance programs may be skeptical about their usefulness. Some managers
dislike playing the role of judge and are unwilling to accept responsibility for making
decisions that affect the future of their subordinates. This tendency can lead managers to
inflate their assessments of the workers’ job performance, giving higher ratings than
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• OUTPUT MEASURES:
Even though we have corrected the output data to compensate for the
different quality of performance, we must also consider the possibility that other factors can
influence or distort performance measure. Perhaps the employee who made so many
keyboard errors works in a vast, open room surrounded by many other employees and a lot
of noisy equipments. The other employee being evaluated may have a private office and
office distractions. Or perhaps one is responsible only for short, routine business letters and
the other transcribes technical reports from the engineering department. It would be unfair to
assign performance ratings without correcting for differences in office environment and level
of difficulty of the job tasks.
tangible product can be counted, performance appraisal may not always be completely
objective. In repetitive jobs, such as assembly – line work, subjective judgments may have
less impact on the final appraisal. In these instances, a straight forward record of quantity and
quality of output may suffice as a measure of job performance.
How would you like to have every moment of your behavior throughout the workday
monitored and recorded? Would it bother you? It may surprise you to learn that a lot of
employees, perhaps the majority, are not bothered by electronic performance monitoring.
Some of them like it and prefer it to other forms of performance appraisals. Psychologists
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have found that a person’s reaction to electronic monitoring depends on how the data
compiled on their job performance are ultimately applied. When the information is used to
help employees develop and refine job skills, most workers report a favorable attitude toward
computerized monitoring.
Many employees like this high tech performance appraisal technique because it
ensures that their work will be evaluated objectively, not on the basis of how much their
supervisor may like or dislike them. Also, employees believe that such objective measures
can provide support for their requests for pay raises or promotions.
Having noted that many employees like computerized performance monitoring, it may
seem contradictory to report that they also find it stressful, or so they claim in surveys asking
whether the technique causes stress. Keep in mind, in trying to reconcile these disparate
findings, that research results may not be contradictory after all. It is quite conceivable that
many employees prefer computerized monitoring over other, more subjective, forms of
appraisal, yet still found it stressful. Indeed, it would be surprising if some workers did not
claim that all forms of appraisal are stressful to some degree.
The monitoring of an individual’s job performance is far more stressful for that
employee than is monitoring the performance of the work group as a whole. In the latter
case, each workers performance is combined with that of other group members. Also, both
field studies and laboratory studies show that people who work as part of a cohesive group,
even when the group members are monitored individually. The social support provided by
the other members of a close- knit work group helps to reduce the stress.
The knowledge of continuous monitoring, of knowing that every action one takes or
fails to take is being recorded, can lead workers to focus more on the quantity of their output
than the quality. Thus the stress of computerized monitoring may result in a reduction of
work quality, which has a negative effect on overall job performance and satisfaction.
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Jobs on which employees do not a produce a countable product – or one that makes
sense to count are more difficult to assess. How would you evaluate the performance of fire
fighters? Count the number of fires they put out in a day? How would you appraise brain
surgeons? By the number of brains they operate in each week? For business executives, tally
the number of decisions they make each month?
And what about football players? Their jobs also differ in complexity from ordinary
jobs as psychologists demonstrated in a study of 106 NFL players. Quarterbacks, for
example, must quickly process information and make decisions for themselves and their
teammates on every play. Wide receivers on the team have a less complex job. They engage
in very little information processing as they carry out the specific assignments given to them
for each play. The study showed that worker performance in complex jobs is more strongly
influenced by environmental factors, including the actions of other people, over which they
have little control. This means that it is much more difficult to evaluate this performance as
objectively as performance in less complex jobs.
In such situations, I-O psychologists must find some way to assess the merit of the
persons work, not counting by or keeping a precise record of output but by observing work
behavior over a period of time and rendering a judgment about its quality. To determine how
effective or ineffective an employee is, the assessors must ask people who are familiar with
the person and the work, usually a supervisor; but sometimes they must also colleagues, sub-
ordinates, and even the employee being evaluated.
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➢ Rating technique:
Performance rating scales are the most frequently used merit rating
technique. The supervisor’s task is to specify how or to what degree the work
possesses each of the relevant job characteristics. To rate work quality based on
observations of the worker‘s performance. The supervisor expresses a judgment on
a rating scale. Some companies rate employees on specific job duties and on
broader factors such as co – operation, supervisory skills, time
Management, communication skills, judgment and initiative, and attendance. In
addition, many organizations compare current performance with their past
evaluations, asking supervisors to indicate whether employees have improved,
worsened, or shown no change since the last appraisal.
Rating scale
1 2 3 4 5
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➢ Ranking technique:
In the ranking technique, supervisors list their workers in order from
highest to lowest or best to worst on specific characteristics and abilities and on
overall job proficiency. You can see that there is a a major conceptual difference
between rating and ranking. In ranking each employee is compared with all others
in the work group or department. In rating, each employee is compared with his or
her past performance or with a company standard. Thus ranking is not as direct a
measure of job performance as is rating.
An advantage of the ranking technique is its simplicity. No elaborate
forms or complicated instructions are required. Ranking can be accomplished
quickly and the technique is usually accepted by supervisors as a routine task.
Supervisors are not being asked to judge workers on factors such as initiative or
cooperation, qualities they may not be competent to assess. Ranking has its
limitations, however, when there are a large number of employees to appraise.
Supervisors would have to know all the workers on their shifts quite well to make
comparative judgments of their efficiency.
With a work group of 50 or 100 subordinates, it becomes difficult and
tedious to rank them in order of ability or merit. Another limitation is that because
of its simplicity, ranking less evaluative data that does rating. Worker strength and
weaknesses cannot be readily determined by ranking, and there is little feedback or
information to provide to workers about how well they are doing or how they
might improve their task performance. The ranking technique for performance
appraisal also makes s it difficult for supervisors to indicate similarities among
workers. It is usually applied only when a small number of workers are involved
and when little information is desired beyond an indication of their relative
standing.
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Evaluation techniques:
➢ Assessment centres:
Assessments centres are a popular method of managerial performance
appraisal. Managers participate in simulated job tasks such as management games,
group problem solving, leaderless group discussions, in – basket tests, and
interviews. Recall that assessment centers do not assess actual job behavior but,
rather, a variety of activities that are like those encountered on the job.
Assessments center evaluations appear to have high validity when used for
performance appraisal purposes.
➢ Evaluation by Superiors:
The most frequently used technique for the performance appraisal of managers
is assessments by their superiors in the organization. Standard rating sheets are
rarely used. Typically the rater writes a brief descriptive essay about the person’s
job performance. An evaluation by an immediate superior is often supplemented
by the judgments of the executives at the higher levels.
➢ Evaluation by colleagues:
It is a technique for having managers or executives at the same level assess one
another in terms of their general ability to perform the jobs and their specific traits
and behaviors. Although ratings given by peers and colleagues tend to be higher
than ratings assigned by superiors, research shows a positive co – relation between
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high peer ratings and subsequent promotion. Attitudes towards peer rating among
managers are generally positive.
➢ Self evaluation:
Another approach to managerial performance appraisal is to ask people to
assess their own abilities and job performance. One technique is similar to
management by objectives (MBO). Managers and their superiors meet to establish
goals for managerial performance – not specific production targets but personal
skills to be developed or deficiencies to be corrected. After a time, the mangers
meet again with their superiors to discuss their progress.
Self – ratings tend to be higher than evaluations by superiors and to greater
leniency. Self ratings focus more on interpersonal skills, whereas ratings by
superiors emphasize initiative and specific job skills.
➢ Evaluation by subordinates:
Another approach to performance appraisal of managers involves evaluation by
subordinates. The technique, sometimes described as upward feedback, is similar
to having students evaluate their classroom instructors.
In a research conducted over a 5 yr period, psychologists found that managers
who received poor to moderate ratings from subordinates at the beginning of the
period showed far more improvement in subsequent ratings than managers who
received higher initial ratings. Managers who met with subordinates to discuss
their ratings improved more than managers who did not meet with subordinates.
➢ 360 – Degree feedback:
Another approach to managerial performance appraisal involves combining
evaluations from several sources into an overall appraisal. Any number of
individual ratings can be so combined, but the ultimate multisource approach is
called 360 degree feedback. It combines the full circle of ratings from all sources –
superiors, subordinates, peers, self, and evaluations by the organization’s
customers or clients who have dealings with the person being rated.
Multisource feedback may also reduce many forms of bias. Also if ratings
show a high level of agreement, a manager may be more willing to accept criticism
because it comes from sources other than the immediate supervisor.
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The fact that performance appraisals can be easily biased is no reason to abandon hope of
achieving more objective evaluations. We have noted steps that can be taken to reduce some sources
of error. Providing training and feedback to raters, and allowing subordinates to participate, can also
decrease errors, and increase accuracy, and promote satisfaction with the evaluation process.
➢ TRAINING:
Training the persons who conduct performance appraisals involves two
elements: 1) creating an awareness that abilities and skills are usually distributed in
accordance with the normal curve, that is acceptable to find broad differences within a
group of workers. 2) Developing the ability to define objective criteria for worker
behaviors – the standards or average performance levels against which workers can be
compared.
I – O psychology research supports the idea that rater training can reduce errors
in performance appraisals, particularly leniency and halo errors. The more active rates
are involved in the training process, the greater the positive effects. Having raters
participate in group discussions and in practice sessions about providing feedback to
subordinates generally produces greater results than having raters attend lectures
about the rating process.
➢ PROVIDING FEEDBACK TO RATERS:
Providing feedback to raters can also improve performance appraisals. In a
classic study, marketing managers in a large high – Tech Company received
feedback from trained raters about the evaluations those managers had given
their subordinates. The feedback included information about how each
manager ratings differed from the ratings given by other managers. When these
marketing managers evaluated their subordinates a year later, they assigned
lower ratings than did a control group of marketing managers who had received
no feedback about their earlier ratings. More than 90% of the managers in the
experimental group said that the feedback had influenced their second set of
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ratings. The researchers concluded that the feedback had reduced the leniency
error.
➢ SUBORDINATE PARTICIPATION:
Allowing employees to participate in the evaluation of their own hob
performance has been shown to lead to improvements in the appraisal process.
Allowing employees to have a say in how their job performance is assessed
significantly increases satisfaction with and acceptance of the organizations
performance appraisal system. Employee participation also leads to a heightened
belief in the fairness and the usefulness of the appraisal process and to an increase in
motivation to improve job performance.
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To provide opportunity for two-way communication between superior and subordinate for
the period of appraisal.
To provide feedback for personal effectiveness and self improvement through career
discussion.
To identify employees with potential for higher levels of job responsibility with supportive
development opportunities.
To provide data for organizational development processes, this will evolve and sustain a
productive and challenging work culture.
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INDUSTRY
PROFILE.
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The Indian automotive industry includes dominant players like Mahindra and
Mahindra, Tata Motors, Maruti Udyog. It is a fast growing industry in terms of size and
future aspects.
• The automobile industry’s contribution to the India’s current GDP is ~5% and is
expected to be ~10% by 2016.
• Currently it provides employment to ~10 million people in the country and this is
expected to rise to 25 million by 2016.
• Mahindra is a dominant player in the automobile industry in India, with a 28% market
share.
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COMPANY
PROFILE.
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INTRODUCTION
The US $ 6.7 billion Mahindra group is among the top 10 industrial houses in India. With
about 62 years of manufacturing experience, the Mahindra group has built a strong base in the
business world. The Mahindra group has ambitious global aspirations and has a presence on five
continents. Mahindra and Mahindra LTD was incorporated on October 2, 1945 as a private limited
company Mahindra and Mohammed by two brothers. Mr. J.C Mahindra and Mr. K.C Mahindra
along with Ghulam Mohammed. It was converted in to a public limited company on June 5, 1955.
Mahindra and Mahindra one of the largest private sector company in India is the flagship company
of the Mahindra Group.
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VALUES:
“We don’t have a group – wide statement. Our core purpose is what makes all of us want to
get up and come to work in the morning.” Our core values are influenced by our past, tempered by
our present, and will shape our future. They are an amalgam of what we have been, what we are,
and what we want to be.
These values are the compass that will guide our actions, both personal and corporate.
BOARD OF DIRECTORS:
The board of directors of the company has, as its members, eminent persons from
Industry, Investment, Finance and other branches of business, who bring diverse experience and
expertise to the board.
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Automotive sectors.
Two – wheelers.
Farm equipments.
After – market.
Financial services.
Mahindra partners division.
Information technology.
Infrastructure development.
Systech sector.
Speciality business.
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Mahindra First Choice Services Ltd. operates as a used car retailer. It offers cars
through its outlets and a superstore. The company was founded in 2008 and is based in
Mumbai, India. It operates a superstore in Goregaon, India. Mahindra First Choice Services
Ltd. operates as a subsidiary of Mahindra and Mahindra ltd.
Key Developments for Mahindra First Choice Services ltd.
Mahindra First Choice Services limited to increase service outlets to 450 in the next
four years.
12.08.2010
Mahindra First Choice Services limited plans to ramp up its service outlets to 450 – India
from the present nine in the next four years. At present the company has nine outlets in four
cities in the country. The company plans to ramp it up to 450 outlets in the next 450 years.
The outlets will come up on company owned franchise basis. The first franchised outlet has
come up in Hyderabad
26.05.2010
Mahindra First Choice Services ltd. stated that it is launching an initial public offering {IPO}
In the next three years. M & M ltd. president for HR, after market and corporate services and
member of the group executive board, Rajeev Dubey stated that the company has its sight on
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the IPO option for the Indian market and is likely to hit the capital markets in the next 2 to 3
years.
The Mahindra group was honored with nine communication awards at the 48th annual
Association of Business Communicators of India. {ABCI} awards night in Mumbai on
Friday, 7th November 2008. These are among the most prestigious communication awards in
India.
Mr. Anand Mahindra received the CEO of the year award at the Asia Pacific HRM congress
held at Land’s End Bandra, Mumbai on February 13, 2008. Mr. Mahindra was felicitated for
his “Outstanding and unparalleled contribution for providing strong, efficient, ethical and
visionary leadership”.
On January 19, Mr. Anand Mahindra, Vice Chairman and Managing Director of Mahindra
and Mahindra, was honored with Business India’s Businessman of the year 2007.
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PMS PROCESS
AT
MAHINDRA
FIRST CHOICE
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SERVICES.
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STAGES OF PMS
Performance Management Process at Mahindra first choice services consists of four key stages:
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Define expectations, what an individual has to achieve in the form of the objectives how
performance will be measured and the capabilities needed to deliver the required result. Proper
development plan are made to set the target.
Target setting is done through MPA (Major Performance Areas). Following are the major
parts of the MPA form.
I. Results: KRA
II. CFT
III.NPI
IV. Development Plan
Through this form Appraisee and the Appraiser set the Targets and prepare the development plan,
through mutual consultation. It is a document, which all three parties, the Appraisee, the Appraiser
as well as reviewer need to agree on.
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KEY RESULT AREAS, (KRA’s) are the critical functions that are distinct characteristic of
a job or role.
Individual target are based on the current assignments. The result expected of the individual are
linked not only to the specific parameters of the jobs, but are also aligned to business and corporate
target by using balanced score card.
Departmental plan, which is developed through Balance Score Card, is cascaded down to arrive at
individual plans where the employee and the immediate superior jointly determine, the major
performance areas and targets for achievement.
Following are the major element of the KRA based on which performance evaluation takes place.
This defines the scope of the activity that is going to be performed by the employee. This is
similar to the objective, which gets defined through balanced scorecard.
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The activity maintained above is expected to have linkage with the higher –level balanced
scorecard so as to align the outcome of the activity to organization achievement.
WEIGHTAGE%
Weight age indicates the time in terms of % that is required to perform the task or activity.
This out of 100% of total time that is available to the employee.
Difficulty Level
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Degree of Difficulty
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Measuring Index
Every activity needs to be assessed based on its deliverables, which are measurable.
Measuring index define the key performance measure (for example-cost reduction achieved –
Rs .crores-is a measuring index)
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Target Performance
This is target given achievement of the activity with respect to key performance
measure. In above case target performance could be RS. In crores
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• The Team members must hail from more than one function.
• The CFT should have a strategic intent.
• It should be operational for more than 7 months.
• The team leader should be a very senior officer {to ensure credibility of the
appraisal process}.
I. NPI:
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The teams which are working on introduction of new vehicle/ variants are
called NPI teams. These comprise of members from different functional areas
like, NPI, ERC, Manufacturing, ADD, SQIG, Auto Matl, QA etc.
The employees working in CFT’s / NPI’s need to fill up the Key result areas
for the CFT activity consultation with CFT Head.
The development plan sheet is to be filled in by the appraisee in consultation with the
appraiser depending upon the Developmental needs in the present and any future
assignments the appraisee is required to take up.
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Training needs:
Career Planning :
By providing exposure to the candidates through Special assignments,
their career planning can be done. Assignments helps a lot create new ideas
that in turn help them to groom their overall personality.
Job Rotation:
The appraiser and the appraisee have to decide and indicate the job
changes contemplated for the appraiser and the specific developmental needs
that would be fulfilled by such changes and mention them in the column
provided in the form.
Succession Planning:
The Development Plan helps in deriving the Succession Plans for the
individuals and thus helps in grooming them for the future.
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This is formal evaluation stage when a review of performance over a period takes
place. This stage covers achievements, progress and problems as the basis for a revised
performance agreement and personal development plan. It also leads to performance rating.
While doing these processes, there is the creation of new ideas in terms of taking additional
responsibility which at times is not beneficial to the employee but to the company as well.
Mid -term review enables mainly following:
Mid-term review is done between appraisee, appraiser {including CFT/ NPI Head if
applicable} and reviewer, formally agreed and approved by all of them.
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Review of the employee performance is taken in order to check end analyze the
appraisee’s performance in the given period. The potential of the employee is assessed from the
review and feedback is given to them on their performance.
If the appraisee is CFT/NPI member, then the key result areas go to the
CFT/NPI head first and once it is reviewed and appraised by him with merit
rating, only then it becomes available to prime appraiser and reviewer.
The appraiser including CFT heads and reviewer must ensure that all
appraisee’s under him are appraised and the appraisal forms are forwarded to
the HR department through on-line system as per the target date.
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[Based on performance plans / key result areas] This is directly derived from the
RESULTS section in A i.e. the key result areas. Following guideline is referred while
evaluating the performance level of the appraisee and the proposed merit rating.
DIFFICULTY OF TARGETS
RESULTS ACHIEVED
HIGH MEDIUM LOW
Targets substantially
surpassed.
A B+ B
>110%
Targets achieved
90 – 110% B+ B C+
75 – 90% B C+ C
< 60% C D D
60 – 75%
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This starts by reviewing at goals that were set for the past year, and other key events that shaped up
this year’s performance.
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NORMALISATION: Linking
of performance evaluation to employee development and rewards to motivate and reinforce
desired behavior. Special Normalization process is also carried out for review.
Y – Axis: - Rating
A B+ B C+ C D
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○ Merit increase:
Increase in the consolidated salary based on the person’s
performance in the previous year. It is based on the performance review of
the employee in the company and his potential to complete his goals and
his devotion towards to it.
○ Market correction:
Increase based on a survey of compensation trends to ensure
that the highest rated person would get compensated in line with the best
in the industry.
○ Performance pay:
Increase in pay based on the overall performance rating of
the person and the performance of the company. Increase in the pay is
basically on the potential of the employee and this is basically a reward
given to the employee.
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REWARDS:
WOW
THANK YOU NOTE
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MONETARY REWARDS:
DATA ANALYSIS
Q.1) Awareness of the overall PMS process prevailing in Mahindra First choice services Ltd.
Interpretation: From the above graph it can be stated that HUMAN RESOURCE division and
QUALITY ASSURANCE division were more aware about the PMS process than FINANCE
division. In the company as a whole the overall awareness is 3.84.
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Q.2) Awareness of the divisional level objectives and initiatives developed and deployed
through the divisional Balanced Scorecard.
Interpretation: From the above graph it can be stated that QUALITY ASSURANCE division is
more aware about the divisional level objectives and initiatives developed and deployed through the
divisional Balanced Scorecard than FINANCE division. In the company as a whole the overall
awareness is 3.56.
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Q.3) Are the Key Result Areas and corresponding Targets decided in discussion with
appraiser.
Interpretation: From the above graph it can be stated that in FINANCE division and QUALITY
ASSURANCE division the Key Result Areas and corresponding targets are decided in discussion
with the appraiser. In the whole company the overall awareness is 3.76.
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Q.4) Are you given a chance to participate in cross - functional team assignments and take
improvement initiatives.
Interpretation: From the above graph it can be stated that in FINANCE division the chance to
participate in cross – functional team assignments and take improvements initiative is more. In the
company as a whole the overall awareness is 3.49.
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Interpretation: From the above graph it can be stated that in FINANCE division and the target
setting discussions are value added. In the company as a whole the overall awareness is 3.16.
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Q.6) Discussion of training and development needs between appraiser and appraisee.
Interpretation: From the above graph it can be stated that in HUMAN RESOURCE division the
discussion of training and development needs between appraiser and the appraisee are more
affective in this division. In the company as a whole the overall awareness is 3.26.
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Q.7) Are there any Discussions on Job rotation options before recommendation.
Interpretation: From the above graph it can be stated that in FINANCE division and HR division
the discussions on Job rotation options before recommendation was greater than the QUALITY
ASSURANCE division. In the company as a whole the overall awareness is 3.02.
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Interpretation: From the above graph it can be stated that in HUMAN RESOURCE division the
online PMS system is found to be more user – friendly than in the QUALITY ASSURANCE
division. In the company as a whole the overall division is 3.02.
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Interpretation: From the above graph it can be stated that in HUMAN RESOURCE division the
overall satisfaction on PMS process is more than in the FINANCE division. In the company as a
whole the overall awareness is 3.24.
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OVERALL RESPONSE:
Interpretation: From the above pie-chart it can be stated that 85% of sample size agree to overall
PMS process prevailing in the company. Thus the overall satisfaction about the process can be
sensed.
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Divn # Dept#
# Division / Department are mandatory fields as these will help us in co – relating the analysis.
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Date:
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CONCLUSION
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Like all other processes the Performance Management process too has a few
shortcomings. I have listed a few key measure points like Final Rating, HR communication,
Training need Identification etc and a course of action plan is suggested. There should not be any
difference between the Grading / Rating given by the superior and the actual Grading / Rating
received. The stages i.e. Target Setting, Mid Term Review etc should be strictly adhered to the time
lines. Mutual understanding and co- operation between the Cross – Functional Team Head and the
Cross – Functional Team Member. These were the suggestions made by me in order to make the
process more appealing to the employees and the HR department to carry it out in a more smooth
way.
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