Essay Performance Management

644 Words Sep 12th, 2014 3 Pages
Performance management system of Maruti Suzuki India Limited
To ensure an objective & transparent system of employee’s performance assessment and to facilitate employee development and career growth towards building a performance oriented culture. It is an online process, based on clear & measurable Key Result Areas (KRAs) and involves active participation from appraiser & appraisee, ensuring feedback & suggested improvements.
The Performance Management System at Maruti Suzuki India Limited comprises of two components - Potential Assessment & Performance Assessment. Hence, it is called PPMS, i.e. Potential & Performance Management System. Source: Maruti Suzuki PMS handbook
Performance Management System at MSIL is directly linked
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1. Strategic congruence:
The current performance system of MSIL is congruent with the organization’s strategy. The appraisal form clearly tries to build a bridge between individual goals and the organizations goal.
2. Context congruence:
There is high contextual congruency of the PMS at Maruti in terms of congruency of the system with that of the organization’s cultural. Maruti’s culture is very open which is clearly reflected in their performance management system.

3. Thoroughness:
The performance system of MSIL is very thought of and fulfils the four dimensions of thoroughness. Firstly, under the current PMS all the employees are evaluated including managers. Secondly, under the potential assessment system both the behavioural and functional results are evaluated. Thirdly, the feedback given covers both the positives and the areas of the improvement of the employees. The only problem with the current PMS is that the review period spans just a couple of weeks before the final review and doesn’t span over the entire period. This is one area where the PMS of Maruti Suzuki falls short.

4. Practicality:
The system/software used by Maruti Suzuki for entering the employee

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