Performance Management System
Assignment – PMS System of Indian industry..
(Mahindra & Mahindra)

MASTER OF BUSINESS ADMINISTRATION

Performance management system
Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee development programmes and rewarding achievements.

Performance management system includes the following actions. * Developing clear job descriptions and employee performance plans which includes the key result areas (KRA') and performance indicators.

* Selection of right set of people by implementing an appropriate selection process.

* Negotiating requirements and performance standards for measuring the outcome and overall productivity against the predefined benchmarks.

* Providing continuous coaching and feedback during the period of delivery of performance.

* Identifying the training and development needs by measuring the outcomes achieved against the set standards and implementing effective development programs for improvement.

* Holding quarterly performance development discussions and evaluating employee performance on the basis of performance plans.

* Designing effective compensation and reward systems for recognizing those employees who excel in their jobs by achieving the set standards in accordance with the performance plans or rather exceed the performance benchmarks.

* Providing promotional/career development support and guidance to the employees.

* Performing exit interviews for understanding the cause of employee discontentment and thereafter exit from an organization.

Objectives of Performance Management
Performance management aims at building a high performance