PMS Nestle

Performance Management System

Performance Management System •

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Performance management is the continuous  process of identifying, measuring and evaluating the performance of the individuals and teams and aligning their performance with the organizational goals. A process that significantly affects organizational success by having managers and employees work together to set expectations, review results and reward

PERFORMANCE MANAGEMENT PROCESS

Set Goals

Communicate

Evaluate

Observe

Performance Management Continuous

Goal directed

Revaluation

!y Performance Management " Total #uality

Traditional $erformance a$$raisal are often tense and counter$roductive

Strategic $lanning

!y Nestle considers PMS im$ortant" •

 estl! "ndia recognizes that people make the difference

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encourages and supports its people to inculcate the clearly laid down estl! "ndia #eadership Principles

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 estl! "ndia will push you to broaden your horizon, both nationally $ internationally  estl! "ndia believes in giving as much responsibility as

Nestle gro%s talent & teams •

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Passion for building and sustaining an environment where people have a sense of personal commitment to their work  %nderstands the importance of continuous learning and improvement committed to giving and receiving honest, accurate and timely feedback  &elieves in the importance of building diverse teams, and promotes the advantages of gender balance

!y PM is difficult " 'ob()utcomes not *uantified Personal relationships with employees %nable to give criticism Personality biases Poor communication +onflicting goals

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Tec!ni'ues of PM •

ssay -openended/

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Management by )b0ective

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1anking

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&ehaviorally Anchored 1atings -&A1S/

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+ritical "ncidents

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2orced 3istribution

Performance Management Tec!ni'ues used by Nestle &alanced Scorecard #inked System  A strategic planning and management system

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)riginated by 3r. 1obert 4aplan -5arvard &usiness School/ and 3avid orton as a performance measurement framework •

(alance Scorecard )esign Process 6ranslating the vision into operational goals

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+ommunicating the vision and link it to individual performance •

&usiness planning7 index setting

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2eedback and learning, and ad0usting the strategy accordingly •

Nestle Performance Scorecard Measurements Standards

Manager*s assessment

  +eaders!i$, Et!ics-.ntegrity Customer .nteraction Community .nvolvement Contribution to Overall (usiness Peo$le   Performance   Team%or/ 

Manager*s assessment

(elo% Par

Par

Abov e Par

Nestle Performance Scorecard00 Measurements Customer Satisfaction

E1ternal com$any survey Goal of 234

Strategy .m$lementation

Ob5ective standards

  6ouse!olds Cross7sell, s$lits, mergers Retail asset balances Mar/et s!are  Financial   Revenue

Ob5ective stadards

(elo% Par

Par

Abov e Par

Essay Tec!ni'ue •

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3escribe in detail the *uantity and *uality of the employee8s performance during the past twelve months 3escribe the employee8s strength and weakness 5ow do you describe the employee8s potential within the company9 :hat leadership skills does the employee bring to the 0ob9 :hat future development activities do you recommend for the employee9

C!allenges •

#ack of integration

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3esign challenges

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 #ack of leadership support

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"mplementation failure

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"ncompetence

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+ommunication challenges

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#ack of monitoring

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#ack of evaluation

Areas Areas of of .m$rovement Improvement •

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%se practical tools to improve employee performance %se a sound framework for performance development

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1ely on multiple sources of information

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"dentify key 0ob performance dimensions

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3evelop a structured process and reliable measures