Return to Previous Page

Performance Management at Progress Information Technologies

CASELET, HUMAN RESOURCE MANAGEMENT
ET Cases, 5 Pages

Case Preview

Performance Management at Progress Information Technologies

 

The atmosphere in the conference room at the Head Office of Progress Information Technologies (PIT) was very tense. Vilas Trivedi (Vilas), senior delivery head, and Sharad Gandhi (Sharad), head of Banking, Financial Services and Insurance (BFSI) vertical, were listening to Raghu Kulkarni (Raghu), Chief Executive Officer (CEO) of PIT, in rapt silence. Raghu has had a long innings in the corporate sector as a CEO, and had only recently taken up the position of CEO at PIT. Vilas appeared very nervous and uncomfortable, and had put his head down. The senior delivery heads, vertical heads, and other top management team members had come together to finalize the annual appraisal ratings. A moderation process was on to fit the ratings in the bell curve.

“We need to have a sharp performance focus. Hence, it is imperative that we follow a forced distribution method as per the industry norms. No deviations would be allowed,” Raghu thundered. There were murmurs of protest, but Raghu would have none of it. He continued, “Look at the other organizations in India and abroad. We should learn how these companies perform at astronomical levels. Progress Information Technologies should be the leader of the Indian Information Technology (IT) sector, and be a role model for others. We need to demand performance from our people. I am not happy with the mediocre incremental increase in performance the organization is clocking year-after-year. The problem is that you have rated your team members in a very liberal manner, without taking into account what actually we need to achieve...........

Teaching Note Preview

Performance Management at Progress Information Technologies

 

Synopsis

This case focuses on the challenges of Performance Management System (PMS) at Progress Information Technologies (PIT), a mid-sized IT organization in India. Raghu Kulkarni (Raghu), Chief Executive Officer (CEO) of the organization, had a mandate to grow the organization rapidly. Historically, PIT had grown in an incremental way. Raghu, however, wanted to change this situation. He felt that the executives in the organization were rating the employees in a liberal manner, without considering the growth the organization should achieve. Therefore, he advocated a forced choice method of relative ranking, based on a bell curve or normal distribution, and merciless moderation of the performance ratings. Vilas Trivedi (Vilas), a senior delivery head rated Anil Khan (Anil) and Yatin Angre (Yatin) – two of his project leads – as good performers.Vilas created high expectations in their minds through his words and actions, during the course of the previous performance cycle. However, Sharad Gandhi (Sharad), the vertical head, forced Vilas to moderate the ratings of the employees due to pressure from Raghu. In the bargain, Anil’s ratings were lowered due to failure in managing a capability building initiative. Also, Yatin’s aspirations to be rated as a top performer (as he was due for promotion based on tenure) were not met due to the fitment of the ratings in the normal distribution format and because he was less qualified amongst the group of project leads. Sharad instructed Vilas to appropriately convey the feedback to the concerned project leads. Vilas conveyed the performance ratings to Anil and Yatin without taking any ownership, pleaded his helplessness and blamed his superiors for decisions regarding performance evaluation.

Case Positioning and Setting

This case can be used in MBA programmes and Executive Education programmes for courses in Organization Management and Human Resource Management. It can also be used in General Management courses as an introduction to the challenges pertaining to performance management in emerging economies like India. The case can be useful to understand the behaviour/attitudes of managers in organizations towards performance evaluation and feedback processes. It would help to develop a focus on the practical aspects of managing performance appraisals and feedback processes.

Learning Objectives

This case will help students to develop the following:

  • • Understanding the linkage between organizational strategy and performance management
  • • Understanding of the performance management process
  • • Importance of timely feedback to improve performance of the employees and set right expectations for rewards
  • • Nuances of and issues due to the use of normal distribution (bell curve) approach in performance management

 

Use of the Case

With respect to industrial organizations, particularly in the emerging economies, this case can be used in discussions on the following:

  • • Linkage of business strategy to performance management
  • • Effective implementation of the performance management process to ensure execution of business strategy and high employee motivation
  • • Importance of regular and candid feedback to drive performance
  • • Alternatives to the bell curve approach of performance management process

 

Assignment Questions

I. What are the issues emerging from the case?
II. Critically examine the performance management system at Progress Information Technologies. What was working well and where did things go wrong?
III. ...............

............................................

$3.66
Rs 0
Product code: HRM-2-0071, HRM-2-0071A

Abstract

This case focuses on the challenges of Performance Management System (PMS) at Progress Information Technologies (PIT), a mid-sized IT organization in India. Raghu Kulkarni (Raghu), Chief Executive Officer (CEO) of the organization, had a mandate to grow the organization rapidly. Historically, PIT had grown in an incremental way. Raghu, however, wanted to change this situation. He felt that the executives in the organization were rating the employees in a liberal manner, without considering the growth the organization should achieve. Therefore, he advocated a forced choice method of relative ranking, based on a bell curve or normal distribution and merciless moderation of performance ratings.

Vilas Trivedi (Vilas), a senior delivery head, rated Anil Khan (Anil) and Yatin Angre (Yatin) – two of his project leads – as good performers. Vilas created high expectations in their minds through his words and actions, during the course of the previous performance cycle. However, Sharad Gandhi (Sharad), the vertical head, forced Vilas to moderate the ratings of the employees due to pressure from Raghu. In the bargain, Anil’s ratings were lowered due to failure in managing a capability building initiative. Also, Yatin’s aspirations to be rated as a top performer (as he was due for promotion based on tenure) were not met due to the fitment of the ratings in the normal distribution format, and because he was less qualified amongst the group of project leads. Sharad instructed Vilas to appropriately convey the feedback to the concerned project leads. Vilas conveyed the performance ratings to Anil and Yatin without taking any ownership, pleaded his helplessness and blamed his superiors for all the decisions regarding performance evaluation.

The case presents the business issues regarding linkage of performance management to business strategy, effective implementation of the performance management process, candid and regular performance feedback, and normal distribution/bell curve approach to performance evaluation.



Pedagogical Objectives

  • Linkage of organizational strategy to performance management
  • Understanding of the effective implementation of performance management process
  • Importance of timely and candid feedback to improve performance of the employees and set right expectations for rewards
  • Nuances of and issues due to the use of normal distribution (bell curve) approach in performance management

Case Positioning and Setting

This case can be used in MBA programmes and Executive Education programmes for courses in Organization Management and Human Resource Management. It can also be used in General Management courses as an introduction to the challenges pertaining to performance management in emerging economies like India. The case can be useful to understand the behaviour/attitudes of managers in organizations towards performance evaluation and feedback processes. It would help to develop a focus on the practical aspects of managing performance appraisals and feedback processes.



This Case Pack Includes:
- Abstract
- Caselet
- Teaching Note (**ONLY for Academicians)
$3.66
Rs 0

Related products




Request for an Inspection Copy

(Strictly for Review Purpose, Not to be Used for Classroom Discussion/Trainings)