Performance Management System - Case Study


The client is an owner driven organization that is involved in manufacturing of chemicals as a raw material for pharmaceutical companies and manufacturers of various dyes.


Organizational Context

The client company felt the need to approach NAMAN because they wanted to implement the following changes:



  • Transform traditional business practices into a more modern approach
  • Empower and build Heads of Department and Managers on decision making & problem solving skills so that the top management can focus on other key business areas
  • Implement the Performance Management System in order to build a rational and a transparent culture of evaluating and appraising employees



NAMAN Intervention

We proposed the implementation of a combination of both the Management by Objectives (MBO) and the Competency Based Performance Management System (PMS). In order to ensure smooth implementation of the Performance Management System, the following steps were taken:


Phase I - Organizational goals



  • Orientation session was conducted on the Role of HoDs and Managers in managing performance for HoDs and Manage
  • Identification of critical areas and goal setting for the HoDs
  • Since the client company lacked appropriate data, NIMSPL team assisted the HoDs in developing the MIS and in capturing information from existing systems.
  • Monthly performance reviews of the HoDs were conducted. NIMSPL facilitated and encouraged healthy confrontation during the review meetings wherein the Top Management gave feedback to the HoDs on each of their goals.



Phase II - Goal setting



  • Training session on setting goals were conducted for HoDs and managers.
  • Orientation sessions on PMS were conducted for Reportees of the Managers and HoDs
  • NIMSPL facilitated the Managers in developing performance goals for the employees



Phase III - Review and feedback



  • Session on giving feedback was conducted for HODS and Managers.
  • Similar session on receiving feedback was conducted for reportees
  • The NIMSPL team encouraged healthy confrontation during the review meetings with HoDs and their direct reports so that the HoDs provided constructive feedback regarding the achievement of business goals and made their direct reports accountable for achieving those goals.





  • Top Management was now able to take realistic decisions based on the availability of accurate and current data
  • The HoDs were able to see patterns and trends in the data that they captured and therefore started sharing proposals to the Top Management on various aspects such as improving quality, reducing cost, increasing manpower or budgeting.
  • During the monthly review meetings, as a result of healthy confrontation, the Top Management was able to help HoDs realize that they had the necessary powers and resources to take day-to-day decisions and ensure continuity of work. The Top Management was also able to reiterate to the HoDs that they were responsible and accountable for achieving the business goals of their department.
  • The Top Management consistently gave a message that the Performance Management System was here to stay. At the same time, they were open to suggestions for improvement from HoDs and managers. This created an open forum for managers and HoDs to participate in establishing a system at an organizational level.





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