The case describes existing performance management systems at a leading business school in India, the National Institute of Management - Central India campus (NIM CI campus). The institution, which is ranked among the top 20 business schools in India, is facing critical issues of attracting and retaining faculty members. The director of the NIM CI campus has implemented a unit based performance measurement and incentive system, which has worked favorably and enabled the institute to recruit top academicians. However, the management committee believes that the system has outlived its utility and desires to replace it with more robust systems that are less vulnerable to misuse. The faculty members, however, support retention of the existing system. The key teaching objective of this case is to understand performance management systems from the perspectives of different stakeholders and develop a framework that meets all objectives of performance management. The case enables users to understand all steps in performance management and examine shortcomings at each stage. The role of incentive systems, both as a tool to enhance individual performance and as a management control mechanism, is also discussed. The case provides users an opportunity to evaluate the strategic significance of performance management.
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