HRM Group Assigenment Group-1

8/12/2019 HRM Group Assigenment Group-1

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Human Resource Management

Group Assignment on

Performance Management

System

2014

GROUP NO: 1

DHRUV MISRA

PRAJAKTA TALHATI

OBIE THERATHANATH CHERIANAMIT NANKANI

VENKATARAM GRANDHI

DATE: FEB 9TH2014

SP JAIN SCHOOL OF GLOBAL MANAGEMENT


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1 | P a g e S P J a i n S c h o o l o f G l o b a l M a n a g e m e n t H R M

Contents

1. Does the organization analyses its strategic and operational plans to identify objectives for their

performance management system? ............................................................................................................. 4

Process of Performance Management in Mahindra & Mahindra ............................................................ 5

2. How does the organization develop KPIs and how do they measure and assess their achievement? .... 5

Development of KPIs in Mahindra & Mahindra ........................................................................................ 7

3. How often do they engage employees in formal performance management sessions? ......................... 7

Example from Mahindra & Mahindra ....................................................................................................... 8

4. How are formal performance management sessions structured? ........................................................... 8

Formal Management Review Sessions in Mahindra & Mahindra ............................................................ 9

5. How do they document the outcomes of performance management sessions and how are these

stored? .......................................................................................................................................................... 9

Document of PMS in Mahindra & Mahindra .......................................................................................... 10

6. How do they ensure that the performance management system covers a range of employment

situations? ................................................................................................................................................... 10

Example ................................................................................................................................................... 10

7. What methods do they use for providing performance feedback? ....................................................... 11

Performance Feedback in Mahindra & Mahindra .................................................................................. 12

8. How do they gain support for their performance management system? .............................................. 12

Support for PMS in Mahindra & Mahindra ............................................................................................. 12

9. How do they identify and deal with performance gaps? ........................................................................ 13

Identify and Deal with Performance Gaps .................................................................................................. 13

Performance Gap .................................................................................................................................... 13

Identification of Performance Gaps at Mahindra & Mahindra............................................................... 13

Dealing with Performance Gaps at Mahindra & Mahindra .................................................................... 14


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10. How do they acknowledge excellent performance? ............................................................................ 14

Acknowledge Excellent Performance ......................................................................................................... 14

Excellent Performance ............................................................................................................................ 14

Performance related pay programs ........................................................................................................ 14

Performance Pay at Mahindra & Mahindra............................................................................................ 15

Development Opportunities at Mahindra & Mahindra .......................................................................... 15

11. How do they address poor performance? ............................................................................................ 15

Address poor performance ......................................................................................................................... 15

Poor Performance ................................................................................................................................... 15

Managing Poor Performance .................................................................................................................. 15

Addressing poor performance at Mahindra & Mahindra ....................................................................... 16

12. What are the organizations procedures for terminating employees? Do these meet legislative

requirements? ............................................................................................................................................. 16

Termination Process at Mahindra & Mahindra Ltd. ............................................................................... 17

13. How do they create and implement performance improvement plans? ............................................. 18

13.1. Creating and Implementing Performance Improvement Plan ...................................................... 18

13.2. Reason for Poor Performance ........................................................................................................ 18

13.3. Performance Improvement Plan.................................................................................................... 18

13.4. Creating Performance Improvement Plan ..................................................................................... 19

13.5. Implementing Performance Improvement Plan ............................................................................ 19

Creation of PIP in Mahindra & Mahindra: .............................................................................................. 20

Implementation of PIP in Mahindra & Mahindra: .................................................................................. 20

14. How do they train managers supervisors who participate in the feedback process? .......................... 20

Training Managers / Supervisors for participating in the feedback process .............................................. 20

14.1. Performance Feedback Process ..................................................................................................... 20

14.2. Communication is the key element ............................................................................................... 20


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Training for feedback at Mahindra & Mahindra ..................................................................................... 21

15. What grievance procedures do they have in place for employees who disagree with their

performance appraisal? .............................................................................................................................. 22

Grievance Procedures post Performance Appraisals ................................................................................. 22

Grievance ................................................................................................................................................ 22

Need for grievance arbitration ............................................................................................................... 22

Grievance Procedure .............................................................................................................................. 22

Grievance Procedure at Mahindra & Mahindra ..................................................................................... 23

Suggestion ............................................................................................................................................... 23

16. What career advice do they offer to employees? ................................................................................ 23

Career Advice Offered to Employees .......................................................................................................... 23

Employer of the Choice ........................................................................................................................... 23

Manage Employee Development............................................................................................................ 24

Career Management ............................................................................................................................... 24

Career Management at Mahindra & Mahindra ...................................................................................... 25

17. How does the organization design learning and development plans to contribute to the

Development of a learning organization? In other words, is the organization a true learning

Organization? How do you know this? ....................................................................................................... 26

Learning and Development at Mahindra & Mahindra ........................................................................... 27

18. What methods of training do they use? ............................................................................................... 27

Training Methodology at Mahindra & Mahindra ................................................................................... 29

19. What steps do they take to ensure that the performance management system is continuously

improved? ................................................................................................................................................... 29

Continuous Improvement of PMS at Mahindra & Mahindra ................................................................. 29

20. What contemporary issues do you foresee in managing staff ongoing performance? ....................... 30

Contemporary issues faced in Mahindra & Mahindra ............................................................................ 30

References .................................................................................................................................................. 32


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1. Does the organization analyses its strategic and operational plans to

identify objectives for their performance management system?

Yes organizations analyses its strategic operational plans to identify objectives for their PMS because

that gives a clear linkage between peoples KRAs and Companies goals, this also helps organizations to

clearly demarcate between each individuals responsibilities and roles.

To put more emphasis on linkage between organizations strategy and PMS, Performance Planning and

Evaluation (PPE) systems are becoming popular in organizations. If the strategy is not aligned with PMS

the probability of organization achieving its goals becomes negligible. Under a PPE system a yearly

performance plan is mapped for every employee and at the year end the same is evaluated (Kramar, et

al., 2013).

Figure 1: Performance Management Cycle (Eckerson, 2009).


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Process of Performance Management in Mahindra & Mahindra

The above can be exemplified through an example of Mahindra and Mahindra limited:

Every year a process is conducted which is called Management Business Review (MBR). During the

process the president policy of that year is shared with all business CEs and thereon they derive their

policy for their own business and this way this entire process goes to the lower level of officer in the

organization (Verma, 2014).

Figure 2: Example of Policy Linkage to PMS (Verma, 2014)

2. How does the organization develop KPIs and how do they measure

and assess their achievement?

Ideally the KPIs should be Specific, Measurable, Achievable, Reviewable, and Time-bound (SMART).

The following 5 criterion are important for development of KPIs

STRATAGIC CONGRUENCE

It refers to the extent to which the KPIs stimulate the job performance that is in- line with the

mission, vision & goals of the company.

VALIDITY

The content of the KPI should not be deficient or contaminated. This means that the

performance measure should be able to asses all relevant aspects of the job description.

RELIABILITY


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This is a very qualitative aspect that asserts on the consistency of the performance measure.

It emphasizes on being fair to every individual irrespective of different managers reviewing

them.

ACCEPTABILITY

This depends on an individuals perspective to view the performance measure. The KPIs

developed should be accepted by the employees and the managers and not considered as a

waste of time or an unfair system.

SPECIFICITY

The KPIs should paint a clear picture of what is expected out of an employee and methods bywhich they can be achieved.

There can be various approaches to measure the performance and access the achievements. The type of

approach to be taken depends the type of organization. The Different types of approaches are

mentioned below.

Comparative approach

In this method the individuals in a team are compared with each other on the basis of their

performance and also on the basis of their designation.

There are various tools to implement comparative approach i.e. Ranking, Forced

Distribution and Paired comparison.

Attribute Approach

Under this a set of performance dimensions are developed with respect to job description.

These dimensions can be traits like leadership, initiates, team-work etc. The individuals are

analyzed on the basis of these traits using graphical rating scales and mixed standard

scales.

Behavioral Approach

In this the performance measure defines the behavior an employee should exhibit to

perform effectively. For instance in critical incident approach the managers keep a note of

effective and ineffective performance instances of each employee also under the


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organizational behavior modification a behavioral feedback and reinforcement

mechanism is setup.

Results Approach

This approach focusses on final objective. Result approach is used by:

Management by Objective (MBO)

Here the top management defines the companys strategic goals, which are then passed on to

the next management level and so on. At every level these strategic goals are targeted for the

goal setting process (Kramar, et al., 2013).

Development of KPIs in Mahindra & Mahindra

Mahindra and Mahindra uses Result approach to Measure the performance and also to develop the

KPIs. The goals on organizational levels are developed during the blue chip meeting and MBR

workshops, these are generally 3 year goals which are termed as promises, on the basis of the long term

goals the KPIs of the top management is decided and that becomes their goal sheets based on the goal

sheet of the top management the KPIs of the middle management is decided department wise and that

further drills down to the operational level. For all KPIs the level of performance are determined. Level

4 and 5 are mandatorily qualitative LOPsand not activity based. Once these KPIs are made in the start

of the year at the end of the year the performance of an individual is measured on the basis of the level

of achievement of each KPI which was given in his goal sheet (Verma, 2014).

3. How often do they engage employees in formal performance

management sessions?

The human resource department is responsible for the involvement of employees in the formal

performance management session. The frequency of this varies from organization to organization. In

general the minimum involvement comprises a formal session of training that delivers the details of the

performance management system and the working structure. After this at the beginning of every

financial year the goal setting session is held for all the employees. Here the KPIs and KRAs are identifiedand with the consensus of the employee and the manager it is finalized for the year. The employee

starts working as per this and this is reviewed semi-annually. If there are any adjustments or revisions to

be made then it is done. The final review takes place when the end of the financial year nears by. In the

final review the ratings for the employee is given based on his performance with respect to his/her goal

sheet. The incentives are given based on these ratings.


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Example from Mahindra & Mahindra

This process can be explained through an example of Mahindra and Mahindra limited. In this

organization the Measure of Performance (MOP/KRA) are drilled down to the lowest level of officer and

goal sheets are uploaded on line every year by 31st March for the next financial year. This is reviewed

semi-annually and then the final review is done at the year-end (Verma, 2014).

4. How are formal performance management sessions structured?

In every formal performance management session the employee is rated on the basis of plan v/s actual

status of his/her goal sheet. This is doneby means of one-on-one interaction between the manager and

the individual. The frequency of these kind of reviews will be as mentioned in the previous answer.

Self-ratings have a tendency towards inflated assessments. The best use of self-rating is as a prelude to

the performance feedback session to get the employees thinking about their performance and to focus

a discussion on areas of disagreement (Kramar, et al., 2013).

In order to overcome the disadvantages of self-ratings a method of 360 degree feedback is roped in.

This refers to interacting with every stakeholder the employee deals with directly.

Managers, peers, subordinates and customers are also used as a source of performance information

apart from self.

The managers have adequate opportunity to see the day to day working of an individual and rate them

accordingly. The issue with only using manager as a source of performance information is that if the

manger is not able to observe the employee on a regular basis due to the job structure (e.g. Sales) or if

the structure of work is complex or varied (Kramar, et al., 2013).

Peers are an excellent source for performance information because they themselves are involved in a

similar job role and are actively interacting with the individual on the day-to-day basis. This context is

important in case of managing the performance of teams. A disadvantage of this method is that there is

a potential of personal feelings and biasness to overrule the actual feedback (Kramar, et al., 2013).

The third source can be subordinate that helps to evaluate how well a manager treats his subordinates

and also helps in evaluating an individuals people management skills. The disadvantages to this is it

vests power in hands of subordinates over the mangers that can lead to mangers emphasizing more on

employee satisfaction rather than productivity (Kramar, et al., 2013).


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In a customer centric role customers can be used a valid source of performance information, many

organizations in service industry like Marriott and Whirlpool consumer service division conducts mail

surveys seeking feedbacks regarding the service provided to them (Kramar, et al., 2013).

Formal Management Review Sessions in Mahindra & MahindraTo support the above with an example consider the structure adopted in Mahindra & Mahindra Ltd.

Once the KPIs and KRAs are defined in the goal setting procedures, the reviews are conducted on self-

basis. To support the same 360 degree feedback is preferred. The stakeholders involved in this are

decided on the basis of the job description the person relates to. For example an employee working in

the Sales and Customer service department is evaluated on the basis of customer feedbacks. For

employees in the Vendor Management department the Vendors are also preferred for a feedback.

Thus we can conclude that midyear and annual appraisal reviews are conducted and the structure

depends on the type of job description of the employees. For new joiners they have a performance

dialog in the sixth month of service before their confirmation (Verma, 2014).

5. How do they document the outcomes of performance management

sessions and how are these stored?

The performance management sessions are undertaken frequently in the organizations and the

organizations ensure that the documented outcomes of these performance management sessions

are assessable and stored properly i.e. in accordance with the organizational policy (Kramar, et al.,

2013).

These documents/records can be used by the organization at any point in time in future and so it

becomes important to include all the material regarding the performance of each employee in a

particular format and store it formally and centrally (ideally on the central server).

The organizations keep these records very particularly as they can be of use to both either the

employer or the employee per the situation. The fired / dismissed employees can use these records

to challenge the decision to terminate them wherein the employer can use these records to

terminate the underperforming employees (Kramar, et al., 2013).

However, for the employees who are performing poorly from long period of time, this method could

run the risk of unfair dismissal actions without starting formal review procedures (Kramar, et al.,

2013).


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Document of PMS in Mahindra & Mahindra

Mahindra & Mahindra Performance appraisals happens twice in a year one is a mid-year review and

the other happens at the end of year. The organization uses an online portal known as Harmony E-

Portalall the data of PMS is recorded and stored via this portal on Server Online.

6. How do they ensure that the performance management system

covers a range of employment situations?

The organizations ensure that the performance management system covers a range of employment

situations by implementing different options like Step Review System, Peer Review System, and

Ombudsman (Community Foundations of Canada (CFC ), 2014).

Even with the well implemented PMS, there may be situations where the employees are not

satisfied with the opinions of the managers about their performance appraisals and so to discuss

disagreement the employees can go through a procedure having options written above

Step Review SystemIn this system, the disagreement of the employees is been heard

by the leaders and managers who are up in the hierarchy like the immediate bosses

manager, the department head or even the executive director (Community Foundations

of Canada (CFC ), 2014).

Peers Review SystemIn this system, the small group of employees peers along with

the supervisors manager, look into the disagreement and take the decision

(Community Foundations of Canada (CFC ), 2014).

OmbudsmanIn this system, the employees gain assistance from an individual within

the organization who is designated as impartial ombudsman (Community Foundations

of Canada (CFC ), 2014).

Example

The PMS in Mahindra & Mahindra Ltd. Ensures that every employment situation is covered under it.Once the companies objectives are finalized for the financial year the same is drilled down to each and

every department. The cumulatives of different objectives identified for each department sums up to

the organisational objectives. This can be very clearly observed in the KRAs and KPIs of indiviuals

working in different departments.For exampleif the organisations objective is to be No 1. in Tractors

by volume then the a person working in Sales departmentwill have his KPI in terms of sales volume


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increase. His counterpart of Manufacturing department will have a KPI of maximizing the daily

production rate in consensus with the sales target, also a person working in Qualitywill be responsible

for zero defects at the same time.

7. What methods do they use for providing performance feedback?

The organizations use different methods to provide the performance feedback to the employees.

They provide the feedback in a way that shows positive behavioral responses to the employee to

which the feedback is provided. Some of the methods used for providing performance feedback

are:-

Providing Feedback more frequently than once a year - Providing feedback frequently is

better as it ensures that the employees become aware of the performance deficiencies

immediately once they get aware of them. Also, this will help them to be in line with

the final appraisal session so that they may not be surprised by the evaluation (Kramar,

et al., 2013).

Self-Rating before the session The self-rating method helps the employees to think

about their performance as well as their weaknesses before the feedback session. This

practice also helps the session to go on more smoothly and let the discussion go on only

on those areas where the disagreement agrees between the manager and the

employee (Kramar, et al., 2013).

Encouraging employees to participate: - There are basically three methods or

approaches for this.

o Tell and SellManagers tell the employees how they have rated them and then

explain why they have given them the rating (Kramar, et al., 2013).

o Tell and Listen In this approach, managers tell the employees about their

rating and then let the employees explain if they are satisfied or not (Kramar, et

al., 2013).

o Problem SolvingIn this approach, both the manager and the employee work

together on the areas of disagreement and come to a common conclusion

without any arguments or disrespect for each other. This is as far the best

approach among the three (Kramar, et al., 2013)


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Performance Feedback in Mahindra & Mahindra

To support the above mentioned theory with an example of Mahindra & Mahindra Ltd. A formal

feedback session is held for every employee by his manager twice a year. Also during day to day work by

means of morning meetings and monthly Management Review Meetings (MRM) constructive feedbacks

are given to employees. To cater to the middle and senior management level such as Deputy Mangers,

Head of Departments and Vice Presidents a third party known as Gallup is hired. Under this system

an online survey is circulated among the employees to seek feedback regarding their senior managers.

This survey is very comprehensively analyzed and action plans for improvements are made accordingly.

8. How do they gain support for their performance management

system?

The organizations gain support for their performance management system by regular

communication between their employees and the HR managers and especially from senior leaders.

In most of the companies the senior leaders like the CEO or Managing Director release

communication on regular intervals regarding the performance management system to motivate

the employees towards their regular duties as well as to bring transparency to the process. Senior

managers and leaders in the company also interact with the teams as well as individual employees

on regular intervals regarding any issues they are having with their subordinates or immediate

bosses.

For example, In HSBC, the senior leaders organize regular breakfast meetings with the individual

employees or a bunch of employees selected randomly from different teams and projects and

discuss about the grievances or problems which they are feel regarding the performance

management systems or feedback.

Their goal is always to link and keep in sync the employee activities with the strategic goals of the

organization as well as to furnish valid and vital information from the employees so that they can

use the same to make administrative decisions about them and to provide them with the usefulfeedback regarding the same (Kramar, et al., 2013).

Support for PMS in Mahindra & Mahindra

In Mahindra & Mahindra open communication is believed to be the key to success and hence PMS is

no exception to this belief. Regular communication especially from senior leaders, President himself


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releases a communication mail on the same year on year. Communication mails from Chief people

officer also comes at right intervals. To bring transparency to the process senior leaders of HR also

interacts every year during appraisal time with plant leadership teams (Verma, 2014).

9. How do they identify and deal with performance gaps?

Identify and Deal with Performance Gaps

Performance Gap

The difference between the planned performance and the delivered performance is called as

Performance Gap. Both managers as well as HR Professionals are involved in identifying performance

gaps and formulating strategies to handle these gaps.

The reasons for poor performance of an employee could be because of:

1. Lack of skills and abilities

2. Less domain knowledge

3. Low motivation

4. Inadequate process knowledge

5. Improper resources

6. Group dynamics

7. Incorrect role expectations

8. Lack of energy

Identification of Performance Gaps at Mahindra & Mahindra

Identifying performance gaps is a key role of HR professionals and the managers. HR person gets

feedback and reviews about the employee from his or her manager (Mahindra, 2012).

1. KPI AnalysisThe employee reviews are compared with the KPIs for the employees role. The

KPI or Key performance Indicators help in analyzing each and every employee to their required

level of performance. KPI serves as a benchmark for comparison.

2. Balance Score Card A tool that has long been used in strategic business management and is

designed to provide a framework to manage resources to achieve strategic objectives.

3. Peers ComparisonAn employees performanceis compared with his peer group and evaluated

to identify performance gaps.

There are four points (which ever unit it is applicable) based on which the balanced score card works for

KPI analysis (Mahindra, 2012)

1. Financial PerspectiveTracks the financial performance


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2. Customer PerspectiveTracks the customer satisfaction, attitude, customer care etc.

3. Internal process perspectiveTracks the internal operational goal achievements

4. Learning and growth perspectiveAnalyses the intangible assets that the organization benefits

from the employee

Based on the above perspective levels are decided during the performance appraisal process called MOP

which reflects the gap in performance. The midterm appraisal has this specific purpose of measuring

where the employee stands during the half way and how can things be brought to desired levels.

Dealing with Performance Gaps at Mahindra & Mahindra

Once the performance gap is identified, HR Professionals, managers and the employee need to

collaboratively work towards improvement of the performance (Mahindra, 2012). This way it becomes

easier to channelize all the necessary energy into rectifying the problem.

For cases whose performance is very low and are rated MI (Must Improve) (Mahindra, 2012) there is a

separate dialog that happens and a performance Improvement plan is made and monitored.

The identification of performance gaps can be easily carried out in the background as a continuous

process, however bridging the gap needs the employees assistance.

10. How do they acknowledge excellent performance?

Acknowledge Excellent Performance

Excellent Performance

When an employee demonstrates high ability to and high motivation in achieving the goals of an

organization, he or she is cites an excellent performance. The employee is appreciated by means of

giving him or her rewards and recognition (Kramar, et al., 2012).

A high performance is managed by following means (London, 2003):

1. Reward good performance

2. Identify development opportunities3. Provide honest and direct feedback

Performance related pay programs

Traditional way to recognize an employees excellent performance is using payments as a means of

rewards. The different pay programs are (Kramar, et al., 2012):


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1. Merit pay

2. Incentive pay

3. Profit-sharing

4. Ownership

5. Gain-sharing

6. Skill-based

Performance Pay at Mahindra & Mahindra

The rating differentiates the performance and potential for exceptional people and in line with the

rating an increment and promotion is given to the employee (Mahindra, 2012). Also the PP

(Performance Pay) is another differentiator of performance. Better the performance better is the PP.

Development Opportunities at Mahindra & Mahindra

Apart from raise in the pay, Mahindra & Mahindra acknowledges the performance by providing the

employee with additional roles and responsibilities on promoting the employee.

Mahindra employees also receive additional perks and incentives corresponding to their new job role.

11. How do they address poor performance?

Address poor performance

Poor Performance

The employee performs poor when he has either low ability or low motivation (Kramar, et al., 2012).

The reason for poor performance of an employee is two-fold:

1. Employee ability

a. Less knowledge

b. Lack of skills or ability

2. Situational constraints

a. Personal problems

b. Lack of available resources

c. Inadequate trainingd. Peer pressure or group influence

Managing Poor Performance

Once the reason for low performance is identified, there are different ways by means of which the poor

performance can be managed or improved (Kramar, et al., 2012).


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1. Employees with low ability-low but high motivation also called as misdirected effort (London,

2003)

a. Coaching & Training for skills development

b. Frequent Feedback

c. Goal setting

d. Restructured job assignment

2. Employees with low motivation-low but high ability also called as under-utilizers (London, 2003)

a. Provide honest and direct feedback

b. Provide counselling

c. Team building and conflict resolution

d. Stress management

3. Employees with low ability-low and low motivation also called as deadwood (London, 2003)

a. Withhold pay increases

b. Demotion

c. Outplacement

d. Firing

e. Specific, direct feedback on poor performance

Addressing poor performance at Mahindra & Mahindra

There are five ratings given to an employee depending on his or her performance. The rating for poor

performance is MI (Must Improve). This is identified in the midweek review. The employee is then given

a chance to improve. Purpose of midterm review itself is to identify areas where things are not on track

and accordingly identify action plan to improve and sustain the performance. A Performance

Improvement Plan is prepared for such employees.

A Performance Improvement Plan, PIP, is a process used by managers to help their poor performing

employees to improve performance or modify behavior and to identify performance and/or behavioral

issues that need to be corrected and create a written plan of action to guide the improvement and/or

corrective action (Anonymous, Performance Improvement Plans (PIP), 2014).

In case of extreme poor performance and employees inability to perform, severe steps such as

termination can also be taken by Mahindra & Mahindra.

12. What are the organizations procedures for terminating employees?

Do these meet legislative requirements?

Terminating employees is neither a delightful experience for the employer nor is it for the

employee who receives the pink slip. However, its one of the tough realities in the corporate

world. There are certain termination procedures which provide guidelines to be followed to make


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the termination process as smooth as possible from the organization as well as the employee

point of view. Below mentioned are the required procedures that should be followed to make the

firing process incident-free ensuring the ongoing security of the organization.

a) Informing the employee about his / her termination with at least one witness.

b) Disabling the network access of the terminated employee immediately.

c) Performing the Exit Interview and letting the employee know why he / she has been

terminated.

d) Escorting the ex-employees off the premises.

e) Retrieving any smart cards, laptops, drawer keys, IDs or any other property belonging to

organization.

f) Arranging the return of any equipment or the terminated employee may possess like

notebook, notes or documentation etc.

g) Intimating the Human Resource Department about the termination let them arrange for the

full and final settlement including final paycheck, vacation pay (Stewart, 2014).

Yes, all the above termination procedures meet legislative requirements. There are different acts by the

legislation like the new federal act, fair work act 2009 and other common laws which state that no

employee should be a victim of unfair dismissal and there should be an appropriate balance between the

rights of employees and the rights of employers to determine the conditions of termination as both the

employers and the employees have the rights that must be protected (Kramar, et al., 2013).

Termination Process at Mahindra & Mahindra Ltd.

The appointment letter of the company contains the conditions under which termination may happen.

Some of the major reasons are unethical behavior like fake budget claims, sexual harassment towards

any employee, financial mismanagement etc. Apart from the ethical issues, underperformance is a critical

front considered for termination. However this happens after prolonged warnings and improvement

opportunities. Yes these meet the legislative requirements as per Government regulation of the countries

of operations (Verma, 2014).


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13. How do they create and implement performance improvement

plans?

13.1. Creating and Implementing Performance Improvement Plan

An organization should manage all their employees, high performers or low performers, in order to gain

a competitive advantage. Human Resource is the biggest resource of any organization. Therefore, by

managing their behavior an organization can manage its results. The performance of an employee

should be in congruence with the strategic goals of the organization.

One of the biggest inhibitions of any employee regarding performance management is that, the

appraisal process is benefited only by the top performers of the organization (Kramar, et al., 2012). This

can be avoided if the organization prepares an improvement plan for its employees based on their

evaluations. Moreover, PMS should try to improve the performance of an employee by minimizing the

hindrances to employee performance.

13.2. Reason for Poor Performance

The reason for poor performance of an employee is two-fold:

1. Employee ability

a. Less knowledge

b. Lack of skills or ability

2. Situational constraints

a. Personal problems

b. Lack of available resources

c. Inadequate training

d. Peer pressure or group influence

13.3. Performance Improvement Plan

A Performance Improvement Plan is a process used by managers to help their poor performing

employees to improve performance or modify behavior and to identify performance and/or behavioral

issues that need to be corrected and create a written plan of action to guide the improvement and/or

corrective action (Anonymous, Performance Improvement Plans (PIP), 2014).


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Figure 3: Success Ladder for PIP

13.4. Creating Performance Improvement Plan

The PIP is created to involve the employee in creating a strategy for his or her performance

improvement. This should be done before taking any actions on the employee. The steps involved in

creating PIP are:

1. Identify the performance issues

2. State expectations

3. Create Timelines

4. Develop action plans

5. Define evaluation criteria

6. Review the improvement

13.5. Implementing Performance Improvement Plan

4: Implement PIP

PIP can be implemented in the following manner:

1. 360 degree feedback

2. Coaching

3. Training and development

IdentifyIssues

StateExpectations

Create

Timelines

DevelopAction Plans

DefineEvaluation

Criteria

ReviewImprovement

360 degreefeedback

Coaching Training


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In Mahindra, PIP is implemented in the similar manner. First the plan for performance improvement of

marginalized employees is created. It is then implemented and the employee is monitored for his or her

performance.

Creation of PIP in Mahindra & Mahindra:PIP is developed in consultation with the employee by defining clear cut measures. Changes are done

after interaction with focused group discussions. PIP should:

1. Be specific

2. Focus on solving problem

3. Be goal-oriented

4. Be time-bound

Implementation of PIP in Mahindra & Mahindra:

PIP is signed off with the employee and is monitored month on month. The results are documented and

then analyzed if there is a need for further actions to be taken.

14. How do they train managers supervisors who participate in the

feedback process?

Training Managers / Supervisors for participating in the feedback

process

14.1. Performance Feedback Process

Performance Feedback Process is a process whereby the defined expected performance information and

the measured performance information is fed back to the employee, so that he or she can correct any

deficiencies (Kramar, et al., 2012). Feedback is the information that employees receive while they are

performing; concerning how well they are meeting the organization objectives (Kramar, et al., 2012).

Many managers avoid the process of feedback because they hate confrontations. Also, some managers

fail to articulate feedback which gives a wrong impression on his team and will ruin the team harmony.

Hence, providing proper and timely feedback is necessary for the organization to grow.

14.2. Communication is the key element

The key to effective feedback is communication. An effective communication will:

1. Foster employee relationships


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2. Create a platform to discuss and clarify expectations from the employee regarding his

performance

3. Set a benchmark to measure the performance of an employee

4. Help create an action plan used to monitor and provide feedback

5. Help recognize employee efforts and accomplishments

6. Develop effective managers and efficient employees

As George Bernard Shaw says, "The single biggest problem in communication is the illusion that it has

taken place.To avoid this and to promote managers should be trained for participating in the feedback

process.

Training for feedback at Mahindra & Mahindra

Mahindra & Mahindra facilitates the feedback process by training and coaching managers. Workshops

are conducted so that managers learn and develop skills required for good communication and for

employee feedback. Action plan for such sessions is prepared and communicated to the mangers. Once

the sessions are conducted the results are shared with their managers who in turn suggest if any

improvements are required.

Managers are trained with regards to three phases of feedback cycle:

1. Before feedback meeting

2. During feedback meeting

3. After feedback meeting

During the training program, Mahindra & Mahindra gives special attention to the below points:

1. Feedback is a continuous process and hence manager should often indulge in this activity

2. To begin with any discussion, manager should inform his employee regarding the topic of

discussion and set a right context for it

3. Manager should check with the employee what he or she feels about his or her performance

4. Manager should appreciate and/or comment on employees behavior

5. While doing the above, manager should focus only on solving the problem and should discuss

only about the employees work and results and not about the employee as a person

6. Manager should suggest ways of improvement instead of criticism

7. Manager must define goals and timelines for review8. Manager should analyze the reason for poor performance and discuss with poor performers

about ways in which they can improve


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15. What grievance procedures do they have in place for employees

who disagree with their performance appraisal?

Grievance Procedures post Performance Appraisals

Grievance

Fairness and transparency are crucial for the success of an organizations Performance Management

System. It is the right of every employee to be treated equally and with dignity and respect.

Procedural Theory Justice Theory (Kramar, et al., 2012) explain how employees judge whether they

have been treated fairly or not. Employees have the right to register a complaint or file a grievance

related to wages, hours of work, working conditions, performance evaluations, merit raises, job

assignments, reprimands, and the interpretation or application of a rule, regulation or policy

(Anonymous, Employee Rights, 2014).

Grievance is defined as a claim by an employee that he or she is adversely impacted by the

misinterpretation or misapplication of a written company policy or collectively bargained agreement

(Yost, 2012).

Need for grievance arbitration

Grievance arbitration is needed for the following reasons:

1. Unfair treatment given to an employee on account of appraisal politics

2. Employee not satisfied with his ratings

3. Decreased motivation

4. Misjudgment of an employees efforts and hence given low ratings

Grievance Procedure

To address grievances, employers need to implement a grievance handling procedure which will help

employees to resolve conflicts. Failure to do so would result into serious consequences or litigation.

A Grievance Procedure is a means of internal dispute resolution by which an employee may have his or

her grievance addressed (Yost, 2012). Different organizations follow different procedure but follow a

common framework.


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Grievance Procedure at Mahindra & Mahindra

The appraisal process at Mahindra & Mahindra is performed on an online portal. The appraisal cycle

closes only after the employee has signed-off and commented on his appraisals. In case of disagreement

with the ratings received, a link is shared with the employee wherein he can raise his concerns and

challenge the decision of the management.

Steps involved in Grievance Addressing are:

1. Employee has to formally initiate the process by submitting his concern in writing using the

grievance form

2. Employees supervisor or manager will review its validity

3. Next, a committee is formed comprising of the employees unit head, manager and the

department HR manager

4. Based on the data available and submitted by the employee any of the following decision can be

taken:a. Grievance is invalid

b. Grievance is resolved

c. Mutual agreement or further probing into the concern

5. The whole process is time bound and should be completed within a stipulated time frame

Suggestion

Sometimes the process may turn out to be dirty. After the grievance is addressed, the employee-

manager relationship may get harmed. In turn this will spoil the work culture and thereby hampering

the organizations growth. It might even result into moving out of the employee and hence a loss in

resource strength. This situation fails the existence of Grievance Process.

In such cases, out sourcing the Grievance Procedure or involving a third party can prove to be helpful.

This will eliminate any biases and ensure the transparency and authenticity of the procedure.

16. What career advice do they offer to employees?

Career Advice Offered to EmployeesEmployer of the Choice

Today, most global organizations aspire to become the Employer of the Choice. One of the

characteristics of such organizations is to effectively manage their talent and to provide good career

advice to its employees.


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Stephen K. Green, HSBCs chair, views performance and climate as inextricably linked: If we dont

create the proper climate internally and live up to our brand promise, we wont be able to achieve our

strategic objective managing for growth (Ready & Conger, 2007). For any company to remain

innovative and competitive, it requires a fresh approach to employee development and an injection of

new ideas (Floris, 2008) (Kramar, et al., 2012).

Manage Employee Development

Source: Based on M. London, 2003, Job Feedback: Giving, Seeking, and Using Feedback for Performance

Improvement, 2nd ed., Lawrence Erlbaum Associates, Mahwah, NJ, pp. 967. (London, 2003) (Kramar, et al., 2012)

Based on the performance of an employee, a proper career is advised to the employee for his or her

development. Employee Development and Career Management go hand-in-hand. Sometimes,

organization advices its low performers to undergo a job rotation or work at a different job level.

Organization also helps in the career advancement of high performers by letting them choose a new

career direction for them as long as it fits in the organizations strategies.

Career Management

Career is defined as the pattern of work-related experiences that span the course of a persons life

(Kramar, et al., 2012). Career management system needs (also called a development planning system) is


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a system aimed at retaining and motivating employees through identifying and meeting their

development (Kramar, et al., 2012).

Steps in the career management process (Kramar, et al., 2012):

1. Self-Assessment2. Reality Check

3. Goal-setting

4. Action Planning

The above process is a responsibility of both the employees as well as the employer (Kramar, et al.,

2012). Below is a chart of their responsibilities (Kramar, et al., 2012):

Source: From R. Kramer, 2012, Human Resource Management in Australia, 4th edition, McGraw Hill Australia Pty

Ltd, North Ryde, NSW, pp. 451.

Career Management at Mahindra & Mahindra

The EMPOWER program at Mahindra & Mahindra helps its employees to choose their career path.

Career dialog happens with employees for creating a career path for them. Basis the same an Integrated

Development Plan, IDP is developed for filling the gap between career aspiration and current capability.

The following are key characteristics of EMPOWER:

1. EMPOWER is response to employee need

2. Employees and managers participate in this program

3. Evaluation of employee is ongoing in order to provide feedback for improvement

4. Based on some constraints, units at Mahindra can be customised to facilitate the employee

Career Management


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5. The process is fair and transparent and hence every employee has access to all the information

6. Senior management at Mahindra & Mahindra support and encourage employees to take an

active role in career management

17. How does the organization design learning and development plans

to contribute to the Development of a learning organization? In other

words, is the organization a true learning Organization? How do you

know this?

An organization with effective training systems designs the training by a six set method.

Step 1: Conduct need assessment

Step 2: Ensures whether employees have the motivation and basic skills required to enhance

themselves

Step 3: Ensure the training sessions includes the necessary factors for its success

Step 4: After the training the trainees imply there learnings to their jobs.

Step 5: Choosing an appropriate training methodology

Step 6: Evaluation of training outcomes and financial objectives

Figure 4: Needs Assessment Process (Kramar, et al., 2013).


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PresentaionMethod

Hands onMethod

GroupBuildingMethod

In the above figure organization analysis involves determining the suitability of training with respect to

the organizations key business strategies, available resources and support of managers and peers

(Kramar, et al., 2013).

The term person analysis involves identification of the employees who need to undergo the training

process it includes analyzing the skill sets owned by individuals in comparison to the job requirements,

thus identifying the gap to be fulfilled by the training process. It also evaluates the employees readiness

for training (Kramar, et al., 2013).

Task Analysis involves identifying the learning and skills to be imparted to fulfill the job requirements


A true learning organization focuses on creating a learning environment, the organization communicates

the objectives of the training to the employees. The employees are clear on the benefits they will

achieve from the trainings. Employees have a clear idea of the resources, and the training structure


The learning environment encourages the employees to learn by observing and interacting with others

this enables transfer of training which is also key factor in a learning organization (Kramar, et al., 2013).

Learning and Development at Mahindra & Mahindra

To cite an example, Mahindra & Mahindra has high focus on capability building. For every role a

competency matrix is available. All technical capability gaps are identified through the same Also M&M

has a set of behavioral competencies. Gaps are identified against the same during the appraisal and

accordingly trainings are imparted as per need of the individual (Verma, 2014).

18. What methods of training do they use?

The 3 different type of training methods adopted by most of the organizations are


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Presentation Method

This comprises of:

Classroom instructions: 1 Trainer addresses to a group of people. Includes

interactive sessions, discussions, case studies and pre and post assessments.

Audio Visual Techniques including computer based slides and videos.

Blended learning which mix of both classroom and audio visual technique.

Hands-On Method

This comprises of:

On-job training effective for newly hired employees. This is specific to the job

design and the learning takes place while the employees are actively involved in

the job.

Simulations have a real world scenarios designed for the learning to take place,

simulators replicate physical equipment that employees use on their job in a risk

free environment.

Business games and case studies are also used for developing higher other

intellectual skills such as analysis synthesis and evaluation.

Behavior modeling applicable for imparting interpersonal skills, the employees

are modelled towards key behaviors for particular situations.

Group Building Methods

It is a very effective tool for overall team building and helping employees to understand

each other. Different type of group building methods are as follows:

Advantage Learning focuses on self-awareness, problem solving, conflict

management and risk taking by means of outdoor activities. After every activity

a session is held to reflect on the learnings that can be applied to a day to day

work.

Team Trainings includes cross training and team coordination training, imparts

complementary skill so as to substitute a team member on his/her absenteeism.

In Action learning a real problem is provided to the workgroups and they

commit a timeline and a roadmap to resolve the issue (Kramar, et al., 2013).


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Training Methodology at Mahindra & Mahindra

Mahindra and Mahindra Ltd. uses all the above method training methods depending on the

requirement, for instance every graduate engineering trainee (GET) goes through on-job training for a

period of one year, in which he/she works for different departments for short term projects (Verma,

2014).

19. What steps do they take to ensure that the performance

management system is continuously improved?

According to Institute of Management Accountants, in order to insure continuous improvement in the

performance management system the following points need to be catered.

Training initiatives need to be taken to impart the understanding of the complete working of the

PMS system.

Ongoing evaluation of the KPIs in order to analysis critical success factors that continuously

change with the changing business environment. The KPIs need to be updated accordingly.

In a work scenario there might arise a problem that is nowhere covered in the KPIs. To combat

these specific measures should be taken and can be discontinued once the issue is resolved and

it should be documented for future references. Such lessons learned help in refining the

performance management systems.

The PMS should be viewed as a dynamic system, KPIs must be updated as the firm evolves

(Institute of Management Accountants, 1998).

An important tool that adds to the continuous improvement of PMS is the feedback mechanism.

It is believed that ongoing dialogues and feedbacks are more effective than annual meetings to evaluate

progress. This provides an opportunity to make necessary changes in order to achieve the objectives.

Upper management support by means of transparent communication highlighting the importance of

PMS plays a vital role to continuous improvement of PMS (MacMillan, 2014).

Continuous Improvement of PMS at Mahindra & Mahindra

To exemplify this in Mahindra & Mahindra Every year engagement survey is rolled out which captures

engagement level of employees related to PMS process. Action plan is made based on the findings. Also

input is taken from results of the GPW (Grate places to work) survey for improvement on PMS process.


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Also there are training sessions held every year before the filling up of goal sheets on PMS, so that the

working of PMS is known to all the employees and especially the new joinee (Verma, 2014).

20. What contemporary issues do you foresee in managing staff ongoing

performance?

For any organization, getting its employees management skills right is one of the most

challenging part. There can be many reasons for the underperformance of an employee. There

may be situations which can be one of the most stressful parts of an HR managers role(Kramar,

et al., 2013).

There may be many contemporary issues in managing staff ongoing performance. Some of them

are listed below.

a) Discouraged Teamwork:

If the employee doesnt get a good rating in performance appraisal, his moral towards his

job and work goes down, which actually affects the output of the team as a whole (Kramar,

et al., 2013).

b) Mediocre performing employees

The criteria for measuring mediocre performing employees is same as that of measuring

very good or very bad performers due to which sometimes the mediocre performers also

get a rating for which they are not eligible (Kramar, et al., 2013).

c) Assessors are inconsistent or use different criteria or standards for different employees in

the sense that they sometimes become lenient in measuring an employees performance

who has been a good performer in the past (Kramar, et al., 2013).

d) Emotional Anguish

Some employees can get very hurt by their performance rating which may lead to medical

problems, mental health issues, alcohol or drug related issues (Kramar, et al., 2013).

Contemporary issues faced in Mahindra & Mahindra

Overlapping roles is one of the contemporary issue faced by this organization. The major reason for this

is conflict in the KPIs and KRAs of two individuals. This occurs mostly within the departments. Another


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issue is slight uncertain targets, team goals which are difficult to be measured individually. The major

concern is with the misaligned goals due to changing and dynamic market conditions (Verma, 2014).


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Human Resource Management in Australia(5th ed.). Sydney: Mc Graw Hill Education. Retrieved

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Kramar, R., Bartram, T., De Cieri, H., Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2012).

Human Resource Management in Australia.North Ryde, NSW: McGraw Hill Australia Pty Ltd.

London, M. (2003).Job Feedback: Giving, Seeking, and Using Feedback for Performance Improvement(2

ed.). NJ, Mahwah: Lawrence Erlbaum Associates.

MacMillan, A. (2014, February 8). Optimize Performance Mangement.Retrieved from Success Factor:

http://www.successfactors.com/en_us/lp/articles/optimize-performance-management.html

Mahindra, M. &. (2012). M & M HR Handbook.

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