CPL, India: Web of Performance, Pay and Promises

Abstract

Country Public Limited (CPL) was a public sector enterprise in India. It manufactured electric equipments and had a strong customer-base in India and overseas. It had witnessed a major setback in 2012 in the form of de-growth of 25% in comparison to the previous year. Rising attrition of young talented employees had added to the dismay. Perturbed by the current state of affairs at CPL, Raghav Dutta, the General Manager for its Delhi division asked for the assistance of his consultant friend Gayatri Sharma. Gayatri attempted to get to the root of the problem. Her analysis based on thorough discussions with employees and managers threw up many horrifying facts about the performance management system at CPL. Through her investigation, Raghav came to know about the major anomalies with the entire performance management process at CPL which had been negatively impacting employees' and organizational performance like a slow poison. The case is poised at this tricky juncture where Raghav needs to find suitable solutions to plug in the loopholes in the existing performance management system and suggest the same to the company board. The case illustrates the principles for effective management of performance. It allows students to evaluate the advantages and disadvantages of using the performance related pay measures and specifically the bell curve method of performance evaluation. It weighs up the effects of performance management practices on employees' behavioural and attitudinal outcomes such as motivation, attrition and job performance which may have a resulting impact on overall organizational performance.

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