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Performance Management System
Notes SBU Goals
SBU goals are set by the process of discussions between the SBU Chief and the Divisional
heads of the concerned SBU.
The final goals are set on the basis of discussions between the SBU Chief and the Chief
Executive of the company.
Company Goals
The CEO of the company consults the SBU Chief and Corporate Heads for evolving
company goals.
Performance and Evaluation Parameters
The final package under PBC scheme of each individual, depending on his position in
management, is on the basis of performance of the following:
Designation Performance of : (goals related to)
1. President Personal, SBU and Company
2. Sr. Vice Presidnet/Vice Personal, Divison and SBU
President/Sr. General Manager
3. General Manager/Sr. GM Personal, Division and SBU
4. Dy. GM/Sr. Manager Personal and Division
Lessons from Cg’s Experience
1. There is no standardized PBC scheme which can fit all types and sizes of organizations.
Business line, product range, operating environment, corporate culture, business
strategy, management style and various other factors influence the shape and success
of a PBC scheme in an organization.
2. The management should be clear about expectations from the scheme.
3. The review of the scheme should be an ongoing process to make it responsive to the
changing needs of the organization.
4. Care should be taken to guard against “sand bagging” of goals.
5. No PBC scheme can be 100% objective. Efforts should be to reduce the subjectivity to
the minimum. Efforts should also be made to reduce heartburn amongst executives of
different profi t centres.
6. It should be simple, measurable, achievable, realistic and time bound.
7. Finally, it is critical that a PBC scheme should fit into the overall HR strategy of the
organization.
Question
Make a critical analysis of evaluation parameter used by Cromption Greaves Ltd.
12.5 Summary
Performance and results are important but concern for people, their well-being and
fairness of treatment is equally important. If organisations want to attract high performers
and retain and motivate the high performer, they have to be willing to reward excellent
performer highly.
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