Performance management system has been influential as a method that would help improve individual and organizational efficiency. This demonstrated the need to undertake this research with a case study approach in titled challenges faced and the best practices in performance management system implementation in the Indian manufacturing sector.
The main goals of this research are to explain the nature of PMS, to examine the methods used in PMS, to recognize the challenges faced by managers and to discuss best practices in PMS. To achieve these targets, managers provided in-depth information on their performance management program and interviews with four managers were conducted.
The research found that the performance management program was not effective and therefore the company faced certain issues such as staff discontent, lack of training and high attrition rate. It was proposed that management review its performance management program before it becomes a debacle and make a few improvements, such as coaching managers in conflict management and offer more inherent incentives based on human resource efficiency and provide consistent feedback with positive criticism to encourage the workforce to perform better.