A large Engineering company reviews its performance management system

A leading Indian engineering company was facing the challenge of employee disillusionment with the existing performance management system. The performance management process guidelines were not followed and it was perceived as a form filling exercise. The staff did not see any transparency in the system nor any linkage to rewards. IN3X was contracted

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to conduct a comprehensive audit of issues plaguing the PMS and suggest remedial action.

We conducted a thorough review

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of the existing process and met with key stakeholders to understand their expectations and concerns. The key findings of our audit were a clear lack of leadership

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support to the performance management process. The management was oriented towards a very traditional management style that valued loyalty and individual centric reward over a structured performance management system. As a result there had been a gradual dilution in the credibility of the process. While the process design per se did not have too many lacunae, the primary challenge was to generate leadership commitment to a core business process in order to change its perception and ownership out of HR to the business.

We have recommended a comprehensive change management process to support refinement and improvement in the process effectiveness. Recommended process changes include strengthening of the performance measures and building competencies to support KRAs. The issues related to the leadership commitment have been more challenging to handle. We are in the process of developing a comprehensive business case showcasing the benefits of increased leadership support to the PMS.

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