Performance Management System-Automobile Industry. Mini project.Submitted by: Himanshi Shah, Vikas Kumar, Bharat Dhurve, Anjali Rathod, Neha Mishra, Neeta Handa. PGD-HRM, SEM III.

What is Performance Management?Performance Management is a process to ensure that goals are consistently being met in an efficient and effective manner.

Tata Motors- SBU Alignment

Tata Motors- Core functions

Organizational Structure:TLC

Process of mapping of KRAs in Tata Motors

PMS Systems in Tata Motors & Mahindra & Mahindra

PMS in Tata Motors

PMS in M&M

Tata Motors Vs M&M- PMS System used:

Tata Motors: Balanced Score Card M&M : Balanced Score Card Observations:Both the firms use top down approach in mapping the objectives. The Department goal setting is done through the Balance Score Card Approach . After Departmental goals, Individual goals are set. Aligns with Strategic objectives of the company with the individual goals.

Tata Motors Vs M&M - PMS Facilitation of frame work:Tata Motors: In-house M&M: Outsourced

Skill/Level of expertise in implementing

PMSBusiness understanding & alignment with the overall corporate strategy the most important criterion in both the firms. Tata Motors also focuses on people sensitivity indicating that it s a peoples organization.

Tata Motors Vs M&M- PMS Frequency of Appraisal:Tata Motors: Once a year M&M : Twice a year(focus on the mid term objectives)

Workshops & Trainings:Tata Motors: Mandatory Training programmes for employees chosen by the employee &approved by the peer. M&M: More of group based learning exercise. Compulsory 2 day workshop to be attended by every employee

Tata Motors Vs M&M- PMS Challenges in implementing PMS:Tata Motors: Quality of MPAs framed by the employees Seriousness about timeliness Migration to online system was not easy

M&M : Mid term reviews are easier said than done as it is not easy to find time to allocate to these reviews. Training needs of an employee not aligned clearly as it is a group exercise. Quality of KRAs mentioned by the employee. Need to be reworked more than once.

Tata Motors Vs M&M- PMS Feedback and Counseling :The superior gives an immediate feedback to the subordinate after the final performance appraisal. The appraiser and the appraise together review the overall performance of an individual against the agreed targets. Helps in identifying areas for improvement. Provides development opportunities for the growth of the people. Agree/ Generate data for actions relating to increments , promotions etc.

Tata Motors Vs M&M- PMS Measurement of performance ratings:Tata Motors: 6 point scale.

M&M : 5 point scale.

Rewards & RecognitionsTata Motors: Increments related to ratings and Annual Pay for Performance

M&M : Leadership Rewards and Recognition Employee of the Month Employee awards, gifts ,reward programs

Conclusion Top down rather than bottom up approach is

preferred by the firms. BSC is the most important tool. Used by the firms

today because of its inherent advantage of aligning the firms strategic goal with the individual goal. Constant monitoring (half yearly reviews) helps to

keep away the surprises at the end of the year. Tata Motors is a much more individual driven

organization & M&M imparts group objectives.

Points to Ponder on Tata Motors Ltd. PMS is online & linked to SAP. For effective PMS, skip-level meetings are

considered very important (FGD). A Group Leader doesn t perform the

appraisal but is responsible for day-to-day monitoring.

Points to Ponder on Tata Motors Ltd. Focus on: Kaizen, Quality Circles, Cross

Functional Teams. Disclosure of PA results: 1st July. For Bargainable work force :Skill Versatility Test (Performance enhancement reward scheme), includes :Safety, Quality, Delivery, Cost, Morale, Environment, Involvement in QC & Kaizen.

ANNEXURETopic Copy of QuestionnaireMicrosoft Office Word Document

Document

Feedback to questionnaire by HR-Tata Motors. Organizational StructureHR-Tata Motors Ltd.

Microsoft Office

Microsoft Office

References: Ms.Deepa Shukla (Sectional Head-HR-PMS

& Employee Engagement.) Tata Motors Ltd, PSBU, Pune. Ms.Deepti (Sr.Manager-HR-PMS) Mahindra

& Mahindra, Pune.

Challenges for PMS as faced by the employees of TATA

Difficulty in evaluating in areas of subjective targets/goals Timeliness to be followed in terms of goal setting, defining & aligning them with company objectives as well as mid term reviews. Measuring the MPAs Difficulties faced in online Performance system Ratings on TLP as against the targets not visible to the appraisee

RecommendationsPMS to be more transparent PMS data to be used for forming talent pool as well as for internal & external transfers/job rotation Rewards to be linked to achievements/performance Divisional heads to review performance quarterly Avoid certain shocks All grey areas to be distinctly classified by concerned authorities for bringing clarities to lower levels as well as bring ownership & commitment towards MPAs/PMS

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