THDC India Ltd.—Performance Management System

The case is based on the current performance management system (PMS) followed by THDC India Ltd. (THDCIL). It intends to provide inputs about the importance of sound and objective performance management as a key HR subsystem that helps in planning, measuring and integrating performance, contributing towards organizational and business objectives, and developing a collaborative organizational culture. The case portrays an incident of performance review grievance between a superior (Mr Ajay Kumar) and a subordinate (Mr Prashant Kumar) and shows an organization’s struggle to handle an inefficient performance planning claim by a subordinate. Despite creating a clear mandate and SMART (specific, measurable, attainable, realistic and timely) PMS goals, the HR team and employees are continuously showing resistance to discuss and develop SMART KRAs and KPIs collaboratively. It further talks about the issues in the performance planning process regarding goal setting, providing regular feedback and managing performance effectively while actively engaging employees. It also states how an incident about the unsatisfactory appraisal rating of Mr Prashant Kumar led to organizational chaos and employee dissatisfaction. It further provides insights into managing an aggrieved manager using performance review discussion and coaching. It also intends to give students an insight into the different steps in designing and modifying performance management to suit business requirements. The case may help students appreciate the different roles played by HR, such as employee champion, administrative expert, strategic partner and change agent for aligning and achieving individual, team and organizational goals and objectives. They would also gain knowledge and skills to understand the role of HR in designing, executing and managing the PMS by analysing a real-life situation.