Study level/applicability This case has been tried and tested in the classroom setting with management students pursuing a post graduate diploma in business management (PGDBM). The case has been administered to students in Chennai Business School, Chennai in their core course human resource management (first year PGDBM) and to second year students specializing in HR in their course Performance management and compensation management in G D Goenka World Institute, Sohna.
Case overview The case is set in the southern part of India in a retailing organization which grew from a small retail store catering to the daily needs of the student community to a four store retail store (Bolts). Mr Andrew (Head, HR), introduced performance management and appraisal at Bolts. Since the appraisal was interrelated with various other HR systems like motivation, compensation, training and development and promotions, it generated a lot of excitement among the employees. After implementation of performance appraisal, the organization seems to experience one problem after another. There were complaints from customers, followed by a range of challenges such as discontented employees, unprofessional behavior, low motivation in the organization and loss of profit.
Expected learning outcomes Understand and analyze the performance management in general and performance appraisal in a specific Indian context, its linkages with various other HR systems in organization and the various issues and challenges attached with it. Understand people management in small organizations and organizations in emerging markets. Assess and identify HR practitioners problems in studying SMEs HR related problems in an Indian context.