Performance Management

System

Mylan Pharmaceutical Company

Presented by Group 9
Madhu Bharadwaj (G005)
Tarushi Bhatia (G009)
Sravani Ganta (G016)
Dhruv Goda (G018)
Akansha Goel (G019)
Kanika Munjal (G039)
Arushi Sharma (G046)
Introduction to topic

• Organizations are run and

steered by People. It is through
people that goals are
Measurement
objectives realized.
• The performance of an
employee is his resultant Quality Time Cost

behaviour on task which

observed and evaluated

Feedback
to register Relevant
Learning
success Actions
and failure
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Pharmaceutical Industry-India
• Currently valued at around $25-27 Billion ~ 3% of the global
pharmaceutical industry in terms of value and 10% in terms of
volume.
• It is poised to reach $55 Billion in the next 4 yearsUsing Awesome
Backgrounds
• India is en-route to becoming the sixth largest market in the world
by 2020 in terms of absolute size.

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 Mylan Pharmaceutical Company
• Mylan N.V. is an American global generic and
specialty pharmaceuticals company registered
in Netherlands
• In 2007, Mylan acquired a controlling interest
in India-based Matrix Laboratories Limited
• Mylan grew from the third-largest generic and
pharmaceuticals company in the US
• Workforce of more than 30,000 people who
are based in India

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Performance Management System at Mylan

 Objectives ( or “what” part of performance)

 Values (or “How” part of performance)
Each one of these are given 50% weightage in PMS

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Objectives of Performance Management
System
• Fundamental goal of performance management
is to promote and improve employee
effectiveness

Performance Management Cycle 6

Three phase system and 360-degree
Assessment process

Plan Monitor Review

Employee’s
Job Description Highlight
Progress

Key Performance
Results Achieved Self-Assessment
Objectives

Individual Performance
Work Plan Behaviours and Assessment
Team Dynamics Meeting

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Findings

Goal Setting
• Top Down Fashion- Management by Objectives
• Strategic Goals Departmental and Functional Goals Individual
Goals

KPA Weightage to KPA/KRA

• Objectives laid above are converted into
KPA/KRA
• Manager and subordinate discuss at the
beginning of the year regarding KPA/KRAs
• Each Employee is assigned 3 to 5 KPA a
year
• Most KPA/KRA are designed with SMART
objective and are quantitative in nature.
• Impact of KPA to broader organizational
objectives
• Amount of time and effort to be
dedicated to each objective
• Performance objective- Weightages
between 10% to 60% for each criteria
• Weightage given to values are 20% each

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Year End Appraisal

• Employee does self evaluation against agreed KRAs by providing necessary

details of achievement every year.
• Employee evaluation is reviewed by his manager and he rates against each KRA.
• Manager may agree or disagree and provide his justification for the same.
• Rating is based on 5 point scale using bell curve technique-5 being the highest
and 1 being the lowest.

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Normalization

• Ratings are as per recommended norm

• No group / sub-group has advantage or disadvantage due to rating bias
of a manager
• In case of deviation, Manager is asked to review the ratings for his
employees in line with agreed distribution.

Bell Curve Distribution of Rating

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 Questionnaire

Training and Development Competencies to be evaluated Compensations

• Potential evaluation is
used for chalking out
training and development
program for individual
• People with low rating are
put on performance
improvement plan
Promotion
• Technical skills which are related with
the functioning of the job.
• Developmental Training – soft skills
to manage job better & acquire
future responsibilities
• Team Building
• Leadership
• Communication
• Commitment to values-A person is
evaluated on his ability to stick to
values such as integrity, reliability,
service etc.
• Based on performance, company
decides average increment % for the
year
• Individual increment % is decided
based on his / her grade & normalized
rating for the year
• Higher the rating – higher the
increment
• There is variable component in the
form bonus and amount varies with
grade
• 50% of the bonus amount is based
on company performance
• 50% of the bonus on individual
performance

• Based on potential appraisal and also on vacancy at next role

Career and Succession Planning

• Based on potential evaluation and job requirements

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 CONCLUSION

• Process by which the organizations determine how effectively the

employees are performing the job.
• It takes place primarily for managerial employees with a view to identifying
weakness and strengths as well as opportunities for improvement and skills
development.
• It is very difficult to give a complete remark after conducting a research
within such a limited time frame.
• It can be said that, the appraisal system of Mylan is a modern and well
worked out system with a little room for improvement.

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RECOMMENDATION

• The appraisal is carried out on a yearly basis at Mylan. It should

instead be a continuous process.
• Periodically feedbacks should be held with the subordinate in order to
discuss his/her appraisal and set objectives for upcoming period.
• Self and superiors are involved in the rating process. Involving peers
or subordinates or implementing 360 degree feedback will evaluate
an employee from multiple differing perspectives.

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THANKYOU