Project Report (colgate palmolive)

PROJECT REPORT PERFORMANCE MANAGEMENT SYSTEM

KUSHAGRA SAXENA

SUMMER INTERN 2005

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PMIR 2004-06

XLRI JAMSHEDPUR

ACKNOWLEDGEMENT

The two months summer training at Colgate Palmolive India Baddi Facility has been an

incredible learning experience. I thank Colgate Palmolive for giving me this opportunity

to work and learn with complete freedom and constant guidance.

This project could not have been completed without the constant support and guidance of

my project guide Ms. Poonam Sharma who always gave me her valuable time despite the

pressures of her job. I’m grateful to her for arranging meetings, sometimes at short

notices, with the HR managers of various factories operating in the region to aid in

effective benchmarking which was critical to the completion of this project.

I’m also thankful to Mr Pramod Pedgaonkar, Technical Training Manager, for sharing his

insights and vast experience in the field of Performance Management Systems. The final

project could not have shaped in this way without his encouragement, support and

guidance.

I’m grateful to Mr Dhiren Doshi, Associate Director – Organizational Effectiveness, New

Jersey, for providing invaluable inputs at the critical stage of project. His guidance and

knowledge sharing was of immense help in aligning the Performance Management

System with the best Colgate Practices across the globe.

A special note of thanks for Mr. Manu Mehrotra, Facility Head and Mr. V Sriram,

Operations Manager, for their timely interventions that provided structure and direction

to the project.

I thank the entire Colgate Palmolive India Baddi Team for their support and

encouragement all through the project. There was never a moment where I felt like an

outsider.

Lastly, I thank Mr Debashish Roy, VP HR and Ms. Sonali Mathias, Manager – Training,

for the constant support and encouragement from the Head Office.

Kushagra Saxena

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PREFACE

It was a great pleasure and incredible learning experience working with Colgate

Palmolive India on this project of “Developing Performance Management System” for

technicians and team members at the newly set up Baddi Facility.

The overlaying aim of this project was to develop a Performance Management System

that is easy to understand and simple to implement and at the same point of time is highly

structured, unambiguous and measures all competencies expected out of Colgate

Employees. The Performance Management System is aided by a variety of tools that

facilitate the smooth and structured functioning of the system.

I hope I have been able to match the expectations of Colgate Palmolive with regard to my

work and attitude during the internship. I look forward to feedback regarding the project

and my performance during the period of my internship.

Kushagra Saxena

PMIR 2004-06

XLRI, Jamshedpur

Phone: 9431302747

Email: [email protected]

[email protected]

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mailto:[email protected]

mailto:[email protected]

METHODOLOGY

The process of developing Performance Management System involved broadly eight

steps taken over the period of approximately six weeks. These steps are described below:

Step I – Defining Scope and Expectations

The first step was to meet the Baddi Strategic Team and define the scope of the project

and clearly understand the expectations from the project. At this stage I was apprised of

the current status of the Factory which necessitated the prioritizing of the various

components of the project.

Due to absence of clear compensation and benefits policy and grade system policy, it was

decided that the project will entail research and recommendations on the same while the

Performance Appraisal System and Employee Recognition Schemes will be worked out

to minute details to facilitate its implementations as soon as possible.

Step II – Data Collection

Having set out clear expectations, the next step was to collect data relevant to

Performance Management System from the following sources:

1. Colgate Palmolive Factories in India

2. Colgate Palmolive Factories abroad

3. Benchmark Factories in Baddi and adjoining areas

4. Select FMCG factories across India

Step III – Benchmarking

The data so collected was collated and compared across categories and observations were

drawn. It was noted that most factories in India did not have structured Performance

Management System for worker category while this practice was actively followed in

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Colgate Factories abroad. At best, the Indian factories had a highly subjective appraisal

process that was aimed at taking corrective actions.

Step IV – Designing the Performance Appraisal System

After benchmarking the primary target was to create a Performance Appraisal System

that would be highly structured, unambiguous and will measure various competencies

expected from a Colgate Employee.

The Performance Appraisal System was broadly based on the international format

followed by Colgate with modifications to simplify and adapt it to Indian conditions. The

rating was reduced to three levels instead of four levels followed by Colgate to ensure

simplicity.

Various tools such as ranking meeting, skill inventory etc were designed to eliminate

rater bias. Concepts like Gating were introduced to ensure consistency in all aspects of

performance.

Step V – Linking Performance Appraisal System to other fields

Once the Performance Appraisal System was designed, its results were linked to the

following to ensure performance enhancement:

1. Compensation & Benefits

2. Training & Development

3. Employee Recognition Schemes

4. Grade System

As the policies for grade system and compensation & benefits were not clear during the

duration of project, the linkages were recommendatory in nature. Each linkage was

arrived at only after careful benchmarking across Colgate Worldwide, Colgate India and

Baddi Region.

Three detailed Employee Recognition Schemes were formulated to institute non monitory

recognition of good performance and behavior. These schemes aim at motivating the

employees to perform better and at the same time drive the Colgate Values, Baddi

Guiding Principles and team work

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Step VI – Primary Presentation to Baddi Team & Incorporation of Inputs

Next, the Performance Management System so developed was presented to the Baddi

Strategic Team and their inputs were solicited. All the inputs were discussed and the

changes required to the Performance Management System were noted down. These

changes were then incorporated in the Performance Management System.

Step VIII – Approvals

After incorporating all inputs, the project was presented to the Baddi Strategic Team for

approval. Upon their approval the project was presented to Mr. Debashish Roy, VP

Human Resources who gave his inputs. The project was closed after incorporating Mr.

Roy’s inputs.

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PERFORMANCE MANAGEMENT

SYSTEM

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BADDI FACILITY

COLGATE PALMOLIVE (INDIA) LTD

CONTENTS

INTRODUCTION 10

SCOPE 10

PERFORMANCE APPRAISAL SYSTEM 11

Performance Appraisal Criteria 11

Performance Appraisal Frequency 12

Number of Appraisers 13

Performance Appraisal Tools 13

Critical Incident Diary 13

Performance Appraisal Form 14

Evaluation Manual 14

Calculation Sheet 14

Skill Inventory 14

Ranking Meeting 15

Improvement Statement 15

Counseling Session 15

Review Session 15

Performance Appraisal Methodology 16

Performance Appraisal Feedback System 19

Scope for Future Modification 20

PERFORMANCE REWARD SYSTEM 21

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Benchmarking 21

Performance Reward 21

Performance based Wage Increment 21

Productivity Bonus 22

Performance Reward System – Salient Features 23

LINKING PERFORMANCE APPRAISAL T&D 24

EMPLOYEE RECOGNITION SCHEME 25

Team of the Month 25

Thank You Slips 27

Innovator Employee 27

RECOMMENDATIONS ON GRADE SYSTEM 29

Benchmarking 29

Merits & Demerits 30

Recommendations 30

ANNEXURE

Annexure 1 – Critical Incident Diary 31

Annexure 2 – Performance Appraisal Form 35

Annexure 3 – Evaluation Manual 39

Annexure 4 – Ranking Meeting Guide 45

Annexure 5 – Skill Inventory 49

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INTRODUCTION

Performance Management System is critical to functioning of any organization. In

Colgate Palmolive India Baddi Facility it is of paramount importance to measure the

performance of the technicians and team members as these are the people who will

actually drive the production from the front. The performance so measured and appraised

will then form basis of various other HR functions like compensation & benefits, career

growth, training and development etc.

SCOPE

This performance management system covers the following areas:

1. Performance Appraisal System

2. Linking PA to Training & Development

3. Linking PA to Performance Pay/Bonus

4. Recommendations on viability and need of Grading System within

technician/team members

5. Linking PA to Grade System, if recommended

6. Other Performance Enhancing Measures – Recognition Schemes

While the Performance Appraisal System, Recognition Schemes & Performance

Appraisal linkage with Training & Development is covered in great detail and depth, the

other aspects of Performance Management System are contingent on policies that are yet

to be formulated by the head office (for example compensation & benefits policy for

Baddi) and are thus dealt in relatively less detail.

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PERFORMANCE APPRAISAL SYSTEM

Performance Appraisal System measures the performance of workers on variety of

parameters; document it on an easy to understand form, establish clear guidelines to

perform the appraisal and finally, institute a feedback mechanism to communicate the

results of appraisal and suggestions to the employees. The Performance Appraisal will

lead to the banding of the technicians/ team members into “Below Expectations”,

“Meets Expectations” or “Exceeds Expectation” on the basis of final percentage score

attained by them.

PERFORMANCE APPRAISAL CRITERIA

The performance of the technicians and team leaders will be appraised under the

following three broad categories:

1. Functional Competency :

This category consists of all work related competencies displayed by the

employee. Work of each department is broken down into five functional

competencies that are critical to smooth performance of the department. These

five functional competencies can be modified periodically as the factory evolves.

Functional Competency carries a weightage of 50% in the Performance Appraisal

System.

2. Quantitative Measures :

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The quantitative measures represent that part of the Performance Appraisal

System which will constantly change as the factory evolves. In the beginning the

quantitative measures will consist of the attendance and punctuality record of the

technicians/ team members. Once the desired level of attendance and punctuality

is achieved and is stabilized, the quantitative measures can be changed to include

some other critical factor that needs reinforcement. (For Example, if adherence to

safety standards is not up to the mark, PPE compliance can be introduced as a

quantitative measure.)

Quantitative Measures carry a weightage of 25% in the Performance Appraisal

System.

3. Adherence to Baddi Guiding Principles:

This section of Performance Appraisal System will measure the behavioral aspect

of performance of technicians/ team members. The emphasis of this section will

be on:

o Housekeeping

o Personal Hygiene

o Waste Management

o Team Work

o General behavior exhibited at work

In addition to the above five categories, deviation on any other behavioral

parameter will be measured under this section.

Adherence to Baddi Guiding Principles will carry a weightage of 25% in the

Performance Appraisal System.

PERFORMANCE APPRAISAL FREQUENCY

The Performance Appraisal process will run twice a year and the results of the

Performance Appraisal will be declared on 31st January and 31st July of every year. The

process of the appraisal will be based on continuous evaluation as described in the

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Performance Appraisal Methodology section. The time lines for submission of

Performance Appraisal are as follows:

Performance Appraisal Timelines

Distribution of Forms 31st June & 31st December

Submission of Completed Forms to HR Department 15th July & 15th January

Declaration of Comprehensive results 31st July & 31st January

NUMBER OF APPRAISERS

All performance appraisals of technicians and team members will be carried out jointly

by two appraisers – the team leader of the appraisee and the PMS Facilitator. The PMS

Facilitator will be part of the process only for the first few years to guide the appraisal

process in the right direction. Once the Performance Appraisal System has stabilized, the

team leader will carry out the appraisal alone.

PERFORMANCE APPRAISAL TOOLS

• Critical Incident Diary

• Performance Appraisal Form

• Evaluation Manual

• Skill Inventory

• Calculation Sheet

• Ranking Meeting

• Feedback Tools:

– Improvement Statement

– Counseling Sessions

– Review Session

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CRITICAL INCIDENT DIARY1

The Critical Incident Diary forms the basis of the whole appraisal process. Critical

Incident Diary is an instrument to continually record technician/team member’s

deviations (positive as well as negative) from expected behavior and links such deviation

to relevant guiding principle. Every technician/ team member will have a page dedicated

to him in the Critical Incident Diary and all observations will be noted down there.

PERFORMANCE APPRAISAL FORM2

The performance appraisal form has been designed to make the process of appraisal

uncomplicated, easy to understand and less time consuming. The form is divided into the

following six parts:

1. Functional Competence

2. Quantitative Measures

3. Following Our Guiding Principles

4. Final Rating

5. Improvement Statement & Comments

6. Signatures

The exact procedure of arriving at the rating is detailed under Evaluation Manual.

EVALUATION MANUAL3

The evaluation manual details the exact procedure of filling up the Performance

Appraisal form and arriving at the rating of the employee. It explains the contents of

appraisal form and the way to fill each section in a lucid and objective language. It will

be essential for the appraisers to understand the evaluation manual and conduct the

appraisal only as described in the evaluation manual so as to maintain uniformity and

fairness in the appraisal.

1 Annexure 12 Annexure 23 Annexure 3

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CALCULATION SHEET

The calculation sheet is a Microsoft Excel spreadsheet which aids the team leaders to

calculate the rating of the employee once the scores have been determined. The sheet is

semi automated and gives the percentage score and pre-gating rating for each individual

once the raw scores of all components have been entered.

SKILL INVENTORY4

The skill inventory is a detailed document containing the list of various functional

competencies required by technicians/ team members in different departments. It lists

down the functional descriptor, i.e. statements describing what constitutes

Exceeds/Meets/Does Not Meet Expectation for each functional competency. The skill

inventory will aid in bringing uniformity in ratings and removing rater bias.

RANKING MEETING

The ranking meeting will take place one all the Performance Appraisal forms have been

filled up and the preliminary ratings have been assigned. The ranking meeting will bring

uniformity in the ratings and will ensure that all S&C members and team leaders agree

with the ratings given to the technicians/ team members. This will go a long way in

establishing the credibility of the Performance Appraisal process. The exact procedure of

conducting ranking meeting is detailed under Ranking Meeting Guide5.

IMPROVEMENT STATEMENT

The improvement statement is a part of the Performance Appraisal Form which lists

down the various areas of improvement of the appraisee agreed upon between the

appraiser and appraisee during appraisal. Improvement statement is dealt with in great

depth in Evaluation Manual.

COUNSELING SESSION

Counseling sessions will be held before the ranking meeting. Both the appraisers and the

appraisee will attend the session and discuss the performance of the appraisee. The

4 Annexure 55 Annexure 4

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improvement statement will be filled during this session. The ratings will be decided but

not revealed to appraisee during this session.

REVIEW SESSION

Review session will be held after the ranking meeting. This session will be attended by

the HR Manager, Function Head and the Appraisee will involve reinforcement of

counseling session, revealing the final rating and brief discussion on performance and

improvement statement of appraisee.

PERFORMANCE APPRAISAL METHODOLOGY

The primary aim of this Performance Management System is to make it easy to

understand while maintaining its objectivity and exhaustive nature. The appraisal process

needs to be extremely concise and less time saving to ensure its effective implementation.

The following are the steps to be followed for the Performance Appraisal mechanism:

1. Explaining the Performance Appraisal Mechanism to Employees:

Before the actual implementation in the first year and in the beginning of every

subsequent appraisal period, all concerned employees – technicians and team

members & the appraisers will attend a session on Performance Appraisal

objectives, methodology and rationale. They will be explained what is expected

of them under each head in the Performance Appraisal form. All doubts and

issues must be cleared during this session.

2. Critical Incident Recording

A Critical Incident Diary in the prescribed format will be provided in each

department where the technicians and team members are employed. The

guidelines for Critical Incident Diary recoding are as follows:

a. Critical Incident Diary will be primarily maintained by Team Leaders.

S&C members can also record entries in Critical Incident Diary whenever

they notice a critical incident.

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b. All significant instances of deviation from the standards must be recorded

in the Critical Incident Diary.

c. All deviations – Negative as well as Positive must be noted down. The

Performance Appraisal System is not only corrective; it is also meant to

recognize high performers.

d. Efforts should be made to record the deviation against the relevant guiding

principle however in case it is difficult to link it to guiding principle, the

incident should be noted in any row.

e. All critical incidents should be recorded in real time. i.e. The observer

should record the incident as soon as it occurs. The Critical Incident Diary

updating should not be a day end activity.

3. Filling Performance Appraisal Form

The procedure of filling up the Performance Appraisal form is detailed in the

evaluation manual that would be provided to each appraiser for reference. The

following guidelines must be complied with while filling the form:

a. Team leaders must thoroughly go through the evaluation manual

provided with the appraisal form and fill the form exactly in the manner

described in the manual.

b. All team leaders should thoroughly go through the Critical Incident Diary

once the Performance Appraisal Forms are distributed and fill in the rating

on the form on the basis of such critical incidents.

c. The rating should not be affected by the personal judgments of the team

leaders. Each rating must be backed by clearly written down critical

incidents. The facility head and/or manufacturing/production/HR

Managers can ask team leaders to justify the rating given on the basis of

written down critical incidents.

d. During the form filling exercise the appraiser will keep the skill

inventory6 and as a reference guide to decide on the rating of employee on

various functional parameters.

6 Annexure 5

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e. Last year’s improvement statement should be kept as a reference to track

targeted improvements.

f. Gating Concept:

The gating concept, as explained in the evaluation manual, states: No

employee will get an overall rating greater than or equal to “Meets

Expectation” unless the ratings in all three components are at least

“Meets Expectation”

This concept ensures that no employee will get a favorable rating due to

his exceptional performance in one component of Performance Appraisal

Form when the performance in some other component is dismal.

4. Counseling Session

Once the appraisers have finalized the ratings, the counseling session will be held

and the performance will be discussed with the appraisee. The counseling

session will be conducted as described in the following section on feedback tools.

5. Form Submission:

Completed form (with improvement statement & signatures of appraisers and

with final rating in pencil) should be forwarded to the HR department. The HR

department will then collate all data and make necessary preparations for the

ranking meeting.

6. Ranking Meeting:

Once all appraisals have been completed and the data has been submitted, the HR

department will convene a Ranking Meeting. In the ranking meeting all

relevant S&C members will discuss the ratings assigned to technicians and team

members and seek clarifications and make the necessary corrections. This meeting

will ensure the consensus of all relevant S&C members on the ratings and will

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reduce rater bias. The procedure to conduct the ranking meeting is detailed in the

Ranking Meeting Guide7.

7. Review Session – Final Rating & Feedback:

After the conclusion of the ranking meeting, the final ratings of the technicians

and team members will be frozen and put down on the form. Thereafter the

review sessions will be conducted as described in the following section on

feedback tools.

8. Signatures:

At the end of the review session the appraisee and the function head will sign the

form and submit it to HR Department for compilation and declaration of various

Performance Management System results.

PERFORMANCE APPRAISAL FEEDBACK SYSTEM:

Performance so appraised should be communicated to the employee and comprehensive

feedback must be given so as to suggest & explain the ways to improve the performance

and appreciate good work. This feedback mechanism will work in the following manner:

1. Personal Counseling Sessions:

Every employee will have counseling session with his team leader on the

appraisal in presence of the PMS Facilitator. The appraisers will discuss the

achievements and shortcomings of the appraisee. The team leader will appreciate

the positive incidents and provide guidelines to improve the performance in the

problem areas. Employee’s performance on each Performance Appraisal criteria

will be discussed and explained to the employee. The preliminary ratings will be

finalized at this stage but will not be revealed to the appraisee as the rating might

change after the ranking meeting.

2. Improvement Statement:

7 Annexure 4

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A written statement will be prepared by the technicians/ team members in

consultation with the team leader & PMS Facilitator detailing how they intend to

improve their performance in the next appraisal period. This improvement

statement will be noted down in the space provided in the form.

3. Review Session:

The review session will be attended by appraisee, the HR Manager and the

Function Head. The HR Manager and the Function Head will briefly discuss the

achievements and the shortcomings of the appraisee and will also discuss the

special points raised in the ranking meeting, if any. Thereafter the ratings will be

revealed to the appraisee and the form will be duly signed by all concerned. The

purpose of this session is to reinforce the feedback given in the counseling session

and to discuss things beyond performance appraisal. The ratings assigned in the

ranking meeting will not be changed during this review. Once the Employee

Satisfaction Survey has been instituted in the factory, its findings can also be

discussed at this stage.

4. Dissatisfaction with Appraisal:

If any technicians/ team members is dissatisfied with his appraisal and has

sufficient reason to believe that there is inaccuracy in the appraisal, he can take up

the issue with manufacturing/production/HR manager.

SCOPE FOR FUTURE MODIFICATION

The Performance Appraisal System can be modified anytime by adding/altering

components of the behavioral and functional categories. The weightage of various

components can be varied according to the observations made as the plant evolves.

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PERFORMANCE REWARD SYSTEM

BENCHMARKING

A detailed study was carried out in the Baddi Industrial Area to understand the practices

followed to link performance with compensation. The performance pay policies of other

Colgate Plants in the country were also studied. Broadly two conclusions can be drawn

from the study:

1. All companies have some component of pay linked to performance

2. The performance pay is of two types:

a. Performance Bonus linked to appraisal results or overall plant productivity

b. Performance based wage increments

PERFORMANCE REWARD SYSTEM

The compensation of the technicians/ team members will be linked to the performance by

two components:

1. Individual Performance based wage increments

2. Plant Productivity based bonus

PERFORMANCE BASED WAGE INCREMENT

The yearly wage increments will be dependent on the individual performance of the

technicians/ team members. The wage increments will be decided as follows:

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Decide Average Increment figure every year

Decide Individual Increment based on normal curve

o 3 Bands of increments based on Performance Appraisal percentage score

o Top 15% - Middle 70% - Bottom 15%

Middle Band gets the pre decided average increment

Top and bottom Bands get higher and lower increments respectively

Overall decided average maintained

Rationale

The performance based wage increment is based on the following rationale:

Results in permanent change in Income Level – Strong Motivator

Clear difference in pay level of consistent performers & non performers in long

run

Helps recognize & retain the best talent

PRODUCTIVITY BONUS

The second component of performance reward system, Productivity Bonus, will be linked

to the overall plant performance. It will be decided as follows:

Flat rate of bonus for all technicians and team members on basis of Plant AU

Certain minimum acceptable AU level will attract zero productivity bonus

Every percentage point over such level leads to increasing productivity bonus

For example,

Asset Utilization (%) Productivity Bonus

>= 65 0

66 500

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Low Performers

High Performers

Average Performers

67 525

68 550

69 575

… …

88 1450

89 1475

90 1500

Rationale

The productivity bonus is based on the following rationale:

Links overall performance to reward

Promotes overall teamwork

Sets clear motivation for increasing productivity

Peer Pressure – Performers will automatically check non performers

PERFORMANCE REWARD SYSTEM – SALIENT FEATURES

Enhances individual performance

o Directly links Performance Appraisal results to Salary Structure

o Permanent Change

Enhances performance as a unit by linking AU to bonus

o Promotes coordination and instills a sense of responsibility

o Temporary Change

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LINKING PERFORMANCE APPRAISAL TO T&D

The performance appraisal results so obtained will be used to determine the training and

development needs of employees. The following three step process will be followed to

ensure that Performance Appraisal results are actively linked with Training &

Development:

1. The HR department will review the completed Performance Appraisal forms to filter

out all forms where:

a. Overall Rating is “Below Expectation” and/or

b. Rating in any functional or behavioral competency is “Below Expectation”

These shall be the employees who need training in various fields.

2. The forms so filtered out will then be analyzed to establish any possible trend in lack

of competencies. If more than 10 people exhibit the lack of same competency, a mass

training need exists. For example, if 13 people are scoring “Below Expectation” in

the Making department, there exists a specific need for refresher training in the

making concepts.

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3. The list of the employees in need of training along with established trend, if any, will

be forwarded to the Training & Development department for further action.

EMPLOYEE RECOGNITION (NON MONITORY) SCHEMES

The following schemes aim at giving due recognition to the employees who exhibit

desirable functional and behavioral competencies. Apart from driving the BFAs and

Guiding Principles, these schemed will prove to be positive motivation tools and will aid

in preventing monotony on the shop floor.

1. Team of the Month

Concept

Every month a team of the month will be decided on objective and measurable

basis. The distinction will not fetch any monitory reward but will act as an

important motivator for the employees.

Purpose

Reinforce the concept of team work

Motivate employees to perform better

Addresses the need for recognition

Will ultimately lead to increased individual & team performance

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Evaluation

Every month the employees will be rated individually on the following

parameters and the cumulative score of each team will be calculated to determine

the team of the month:

Criteria Weightage

Attendance 15 Marks

Punctuality 15 Marks

EOHS Compliance 15 Marks

Adherence to BFA, Guiding Principles 25 Marks

Team Work (Same for all team members) 30 Marks

Total 100 Marks

Attendance: Every employee will start at a score of 12 and a score of –2 will be

awarded for every uninformed/unjustified absence. A score of +3 will be awarded

for full attendance.

Punctuality: Every employee will start at a score of 15 and a score of –2 will be

awarded for every incidence of late coming.

EOHS: Every employee will be judged by his team leader on the EOHS standards

followed by him, including safety violations if any. Critical incidents must be

noted down to substantiate the rating.

Adherence to BFA, Guiding Principles: Every employee will be judged by his

team leader on the adherence to BFA & Guiding Principles. Critical incidents

must be noted down to substantiate the rating.

Team Work: Every team will be judged by its team leader on the team work

displayed by it. Critical incidents must be noted down to substantiate the rating.

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Note: The absolute value of all the positive and negative scores assigned to

various critical incidents for the last three parameters will be decided by the team

leader on the basis of its importance and gravity.

Reward

1. Display the name and photographs of all team members at prominent place for

one month

2. Public announcement of result – Applause & Appreciation

3. Lunch with the facility head, production manager and team leader

2. Thank You Slips

Concept

Each time an employee is helped out of the way by some other employee; he will

write a thank you note describing the incident in brief and will put the note in the

“Spread a Smile” box. At the end of the month the box will be opened and the

person with highest number of slips to his credit will get an appreciation gift.

Purpose

Promote culture of team work beyond teams

Promote spirit of helpfulness

Recognize and reward people who go out of the way to help others

Motivate employees to display desired behavior

Evaluation

Simple counting of thank you slip.

The team leader will keep a track of the reasons stated and prevent any

carteling/foul play.

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Reward

1. Gift pack containing toothpaste/toothbrush etc and an exclusive “spread a

smile” keychain

2. Display the name and photographs of the winner at prominent place for one

month

3. Public announcement of result – Applause & Appreciation

3. Innovator Employee

Concept

Employees develop certain skills as they gain work experience. It may be an

innovative way of doing the same job or any other activity that enhances the

speed or productivity. An innovator employee would be one who has developed

such unique skill and trains the other employees on the same.

Purpose

Sharing of useful knowledge

Reinforce the core value – continuous improvement

Avoidance of “reinventing of wheel”

Recognizing and appreciating the employee who develops such unique skills

Evaluation

The employee will first explain the skill/method to the team leader. If team leader

is convinced that it indeed is helpful to increase productivity and/or reduce time,

he will christen the employee as “Innovator Employee” and schedule training

sessions.

Reward

Recognition as “Innovator Employee” & opportunity to showcase their learning

Display the name and photograph of the innovator employees along with their

contribution at prominent place for one month

“Innovator Employee” key chain

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RECOMMENDATIONS ON GRADE SYSTEM

BENCHMARKING

A detailed study on the grade system prevalent in various industries in Baddi, Colgate

plants in the country & some other FMCG plants across the country was carried out. The

results of the study are summarized below:

Sl No

CompanyName Location

Grade System

No Of Grades

Basis of Promotion Observations

1 Dabur Baddi Yes 3 Performance

1. Responsibilty of work lies with upper grades 2. Lower grades at times exploited by upper grades 3. Same work but clear "percieved" growth path

2Unichem Pharma Baddi No - -

1. Completely flat structure for 9 years 2. Differentiation only in terms of performance linked payscales 3. Workers percieve growth in terms of performance pay and the start performer respect that comes along

3 Joyco/Wrigleys Baddi Yes 5+8 Performance

1. Aims at providing clear growth path 2. Each higher grade comes with greater responsibility and "higher level" work

4 Pepsi Sangrur Yes 6 NA

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5 Nestle Moga Yes 5Performance + Skill

6 Morepen Parwanoo Yes 9Performance + Seniority

1. Three levels within grades with seniority as pre requisite

7 HLL Rajpura Yes 4 NA

8Indo-Gulf Fertilizers Jagdishpur Yes NA NA

9 Godrej Mumbai Yes NA NA

10 ITC Bangalore Yes 14Seniority + Performance

1. Seniority is pre requisite for promotion irrespective of performance 2. Some promotions only if vacancy exists

MERITS & DEMERITS

The relative merits and demerits of grading system in an organization are tabulated

below:

Merits Demerits

Provides clear Growth Path

o Positive Motivator

o Drives Performance

o Retaining Employees

Problems in Team Work

o Higher grade dominating lower

grades

o “Status Difference”

Addresses need for recognition Rationale? (Same Work across grades)

RECOMMENDATIONS

On the basis of the benchmarking study, relative merits and demerits and discussions

with Baddi Management, the following recommendations are made on the feasibility of

grade structure in the Colgate Palmolive India Baddi Facility:

Premature to introduce grade system

o Will hamper teamwork

o Unnecessary hierarchy

o At this point performance pay should be the only driver

o Let the need for grade system evolve

Review: August 2007

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o Review the situation

o Assess motivation and aspiration levels of technicians and team members

o Alter performance reward system OR introduce grade system as the need be

ANNEXURE 1Critical Incident Diary

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Critical Incident DiaryGuiding Principle Date Critical Incident Name & Rank Sign

Our People

We value diversity of ideas and

approaches of individuals, treat them

with respect, dignity and mutual trust

We affect positive change in the work

place by effecting positive change in

peoples lives

Business

We are business focused and strive for

high standards of individual, team and

organization performance

We are responsive and committed to

delivering cost competitive products

that meet high standards of quality and

customer satisfaction

Our Values

We will demonstrate our fundamental

values of caring, global teamwork and

continuous improvement in our day to

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Employee Name: ________________________ Employee Code: ______

day interactions

Integrity in all personal and business

interactions is the foundation of our

success

Our Environment

Everybody is responsible and

accountable for creating and sustaining

a safe, healthy and clean environment,

both inside and outside the plant

Communication & Decision Making

We communicate our expectations

clearly to our people

We will openly seek and share

information and will challenge

ourselves to find better and more

innovative ways to excel personally as

well as professionally

GUIDELINES

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1. Critical Incident Diary will be primarily maintained by Team Leaders. S&C members can also record entries in Critical

Incident Diary whenever they notice a critical incident.

2. All significant instances of deviation from the standards must be recorded in the Critical Incident Diary.

3. All deviations – Negative as well as Positive must be noted down. The Performance Appraisal System is not only corrective;

it is also meant to recognize high performers.

4. Efforts should be made to record the deviation against the relevant guiding principle however in case it is difficult to link it to

guiding principle, the incident should be noted in any row.

5. All critical incidents should be recorded in real time. i.e. The observer should record the incident as soon as it occurs. The

Critical Incident Diary updating should not be a day end activity.

6. All fields in the Critical Incident Diary should be filled up. Incomplete entries do not solve any purpose and will result in

confusion while filling up the Performance Appraisal Form.

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ANNEXURE 2Performance Appraisal Form

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COLGATE PALMOLIVE INDIA LTD BADDI FACILITY

PERFORMANCE REVIEW FOR TECHNICIANS & TEAM MEMBERS

APPRAISEE’S NAME: _________________________________ EMP. CODE: ___________ DATE : _____________DD/MM/YYYY

Date Of Joining : _____________ APPRAISAL: ROUTINE REVIEW APPRAISAL No : 2005 /

APPRAISERS' NAME: (1). _________________________________ (2). ___________________________________

Scoring Key:Below Expectation – 2 Points Meets Expectation – 3 Points Exceeds Expectation

– 4 Points

1. FUNCTIONAL COMPETENCY – (Weightage - 50%) |------------------Tick One---------------------|

Core SkillsBelow

Expectation

Meets Expectatio

n

Exceeds Expectatio

nComments

F1 -

F2 -

F3 -

F4 -

F5 -

Percentage Score: [(F1+F2+F3+F4+F5)/20] x 100 = [(__+__+__+__+__)/20]*100

A=%

Functional Rating (Tick One)Below 65% : Below Expectation 65% – 85% : Meets Expectation Above 85% : Exceeds Expectation

Kushagra Saxena Page 38 4/11/2023


2. QUANTITATIVE MEASURES (Weightage – 25%) |------------------Tick One---------------------|

MeasureBelow

Expectation

Meets Expectatio

n

Exceeds Expectatio

nComments

Q1 – ATTENDANCE

Q2 – PUNCTUALITY

Percentage Score: [(Q1+Q2)/8] x 100 = [(__+__)/8]*100

B = %

Quantitative Measures Rating (Tick One)Below 65% : Below Expectation 65% – 85% : Meets Expectation Above 85% : Exceeds Expectation

3. FOLLOWING OUR GUIDING PRINCIPLES (Weightage – 25%) |------------------Tick One---------------------|

MeasureBelow

Expectation

Meets Expectatio

n

Exceeds Expectatio

nComments

ADHERANCE TO BADDI GUIDING PRINCIPLES

Percentage Score: [Score/4] x 100 = [(___)/4]*100

C = %

Guiding Principles Rating (Tick One)Below 65% : Below Expectation 65% – 85% : Meets Expectation Above 85% : Exceeds Expectation

4. FINAL RATING Final Rating [After Applying Gating] (Tick



(A x 0.5) +(B x 0.25) + (C x 0.25)

D = %One)Below 65% : Below Expectation 65% – 85% : Meets Expectation Above 85% : Exceeds Expectation

GATING: If rating in any of the three components of Performance Appraisal is “Below Expectation”, then overall rating will be “Below Expectation”5. IMPROVEMENT STATEMENT

COMMENTS BY APPRAISER 1 COMMENTS BY APPRAISER 2 COMMENTS BY Function Head :



6. SIGNATURES DATE : _____________

APPRAISEES' SIGNATURE : ______________________ APPRAISERS' SIGNATURE : (1). ________________________

Function Head’s SIGNATURE : ___________________ (2). ________________________


ANNEXURE 3Evaluation Manual

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Evaluation Manual

This evaluation manual seeks to provide step by step explanation to fill up the Colgate

Palmolive India Baddi Facility performance review form so that there is consistency in

approach and complete understanding of each component. Both appraisers should go

through his manual thoroughly before appraising the performance of the employee.

The form is divided into the following six parts:

7. Functional Competence



10. Final Rating

11. Improvement Statement & Comments

12. Signatures

The first four parts will constitute the Performance Appraisal evaluation. Each employee

will be rated on these parts and their sub components on a three level Rating scale:

Rating Points

Below Expectation 2

Meets Expectation 3

Above Expectation 4

The method for arriving at the rating is described in detail in the following pages.

1. Functional Competency

Functional Competency will carry a weightage of 50% in the Performance

Appraisal

Functional Competency will consist of Five Key Competencies that are essential

for performance of the job.

Each department will have its own different set of five competencies.

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The employee will be given rating from 2 to 4 on each competency based on his

performance as judged by his team leader.

The team leader will maintain the critical incident diary throughout the appraisal

period and use the inputs noted there in consultation with the rating description

given in Annexure 18 to arrive at the rating of the technicians and team members.

The overall functional score (in percentage) will be determined by the following

formula:

Percentage Score: [(F1+F2+F3+F4+F5)/20] x 100 =

[(__+__+__+__+__)/20]*100

A=%

Where,

F1, F2…F5 = Scores in Functional Competencies

20 = Maximum Score

The overall functional rating will be determined using the following key:

Below 65% Below Expectation65% – 85% Meets ExpectationAbove 85% Exceeds

Expectation


The quantitative measures consist of Attendance & Punctuality and carry a weightage

of 25% in the Performance Appraisal. The rating will be determined according to the

following guidelines:

1. Attendance:

Below Expectation Meets Expectation Above Expectation Leave is excessive

(above site av.) Is poor at providing

reasonable notice

Leave is not above site average

Early notification of absence or lateness

Rarely takes leave Goes out their way to

provide coverage where required

2. Punctuality:

Below Expectation Meets Expectation Above Expectation Punctual start and

finish times are an issue

Is punctual with start and finish times

Starts early and finishes late where required to ensure

8 Annexure 1

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smooth handovers

The overall quantitative measures score (in percentage) will be determined by the

following formula:

Percentage Score: [(Q1+Q2)/8] x 100 = [(__+__)/8]*100

B=%

Where,

Q1, Q2 = Scores in Attendance & Punctuality respectively

8 = Maximum Score



Expectation


“Following Our Guiding Principles” will carry a weightage of 25%

The critical incidents will be noted against the relevant guiding principle

All critical incident that are not covered in the Functional Competencies and

Quantitative Measures will be taken into account under this category

Emphasis to be given to the critical incidents in the following area:

o Housekeeping

o Personal Hygiene

o Waste Management

o Team Work

o General behavior exhibited at work

The appraiser will assign a rating of Below, Above or Meets Expectation based on

the critical incidents


following formula:

Percentage Score: [(G1)/4] x 100 = [(__)/8]*100

C=%

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Where,

G1 = Score in “Following Our Guiding Principles”

4 = Maximum Score



Expectation

4. Overall Rating

Once the overall functional, quantitative and guiding principles’ scores & ratings

have been assigned, the overall Performance Appraisal percentage score and rating

will be determined in the following manner:


following formula:

(A x 0.5) +(B x 0.25) + (C x 0.25)D = %

Where,

A = Score in Functional Competency

B = Score in Quantitative Measures

C = Score in “Following Our Guiding Principles”

The overall Performance Appraisal rating will be determined using the following

key:


Expectation

Gating Concept:

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No employee will get an overall rating greater than or equal to “Meets

Expectation” unless the ratings in all three components are at least “Meets

Expectation”

5. Improvement Statement

After arriving at the overall percentage secured by the employee and the rating assigned

to him as described above, the appraiser will discuss in detail the positive and negative

attributes with the appraisee and they will jointly list down the areas where there is

scope/need for improvement. The appraisee will list down all such areas of improvement

in this section.

Once the improvement statement has been written down, the Appraiser, Function Head

and the PMS Facilitator will enter their comments (if any) on the overall appraisal.

6. Signatures

This section will consist of the signatures of the appraisee, appraiser, function head and

the PMS Facilitator. The duly signed form will be submitted to the HR department for

further use.

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ANNEXURE 4Ranking Meeting Guide

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RANKING MEETING GUIDE

PURPOSE

This document will provide step by step guide to hold a ranking meeting. It is essential to

follow the steps described here to attain the objective of ranking meeting.

RANKING MEETING

Ranking meeting is a meeting between all relevant S&C employees to:

1. Validate the rating of all technicians and team members arrived at by the

appraisers

2. Eliminate rater bias by analyzing ratings of all technicians and team members

together

3. Discuss and arrive at the final ranking list of technicians and team members.

The meeting will be held jointly for operations and support departments.

PRE-WORK FOR RANKING MEETING

The following pre-work need to be completed before ranking meeting is convened:

1. Departments should complete appraisals of all technicians and team members

working in the department.

2. The technicians and team members should be ranked in descending order of the

final percentage score attained by them in the appraisal.

3. Completed appraisal forms and the ranking data should be forwarded to HR

Department for consolidation.

4. HR Department should prepare the consolidated Ranking sheet for all the

technicians and team members with option to sort it by:

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a. Department (Eg Production, Utilities etc)

b. Function (Eg Making, Micro Lab etc)

c. Group (Eg Technician, Team Member etc)

d. Rater/Appraiser

e. Components of Performance Appraisal Form

PARTICIPANTS OF RANKING MEETING

Ranking Meeting

1. Manufacturing Manager

2. Production Manager

3. HR Manager

4. Technical Services Manager

5. Engineering Manager

6. Operations Team Leaders

7. PMS Facilitator

RANKING MEETING PROCESS

Step I

All the participants of ranking meeting will be shown the ranking of technicians

and team members sorted by:

a. Department (Eg Production, Utilities etc)

b. Function (Eg Making, Micro Lab etc)

c. Group (Eg Technician, Team Member etc)

d. Rater/Appraiser

e. Components of Performance Appraisal Form

No Discussion takes place during this step

Participant will note down the names of technicians/ team members

o Who they think should be moved up or down the ranking

o About whom they feel need for clarification

Step II

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Participants will make a list of technicians/ team members with the suggested

change (up or down) in ranking

The convener will go round the room and collect one name from each participant.

Only one name is taken at a time to avoid repetition of names given by various

participants.

Step III

Each name so collected will raised and the participant who gave the name will

explain the reason for his suggested change in ranking

The appraiser of that technician/ team member will clarify reason for the rating

assigned

All participants will discuss and arrive at a decision on the ranking of that

technician/ team member.

In such a way all names collected in round 1 will be discussed

Step IV

Once all names of round 1 are completed, steps II and III will be repeated till all

names noted down by all participants have been discussed and decided upon.

FINAL RANKING LIST

Once both, operations and support, rating meeting are over, HR department will

consolidate all the results and publish a final ranking list of all the technicians and

team members.

This list will not be shared with the technicians and team members.

A list of technicians and team members in alphabetical order will be published

with 3 categories – namely: Exceeds Expectation, Meets Expectation & Below

Expectations. This list will be shared with all employees of Baddi Facility

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ANNEXURE 5Skill Inventory

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Skill Inventory Below Expectation Meets Expectation Above Expectation 2 3 4

Change-OversDoes not fully understand the changeover process; Does not complete work in an accurate and timely manner

Understand sequence and steps of core aspects of Changeover process; Completes changeover timely, in right sequence, with the right tools

Demonstrates complete familiarity with all aspects changeover process, tools & line adjustments; Consistently contributes to reducing changeover times without compromising safety and quality

Cleaning & Sanitization

Does not fully understand the C&S process; Does not understand the C&S SOP and visual clean standards. Does not complete work in an accurate and timely manner, Needs constant supervision.

Understand sequence and steps of core aspects of C&S process; Completes C&S timelyand accurately. Understands and follows C&S SOP and visual clean standards. Needs minimal supervision

Demonstrates complete familiarity with all aspects C&S process; Understands and trains others in C&S SOP and visual clean standards. Needs virtually no supervision.

Documentation

Does not appriciate the need for documentation and data collection; Lacks complete understanding of documentation process; Has had issues with timely and accurate completion of documentation

Completes required data collection & documentation timely and accurately; Reports errors in documentation

Takes initiatives to ensure that self and team documentation is completed timely & accurately ; Adresses & Corrects all issues; Identifies need for additional value adding documentation

Cross Functional Knowledge

Does not understand the manufacturing process and how his work links to operations performance; Has not made effort to become involved outside own work area

Understands the manufacturing operation and how his work links to operations performance

Takes initiative to be involved and build relationships with the operations teams; Leverages understanding of operations to identify improvement oppurtunities

Core Work According to Function

Preventive MaintainanceLacks in skills of PM, has had issues with timely completion of PM work, needs continuous inputs/feedback

Understands types and frequency of PM work; Completes PM timely and accurately; Communicates status to team leader

Creates ways for speeding up PM’s; Suggests new PM’s that need to be done; Tracks uncomplete PMs and takes intiative to bring it to closure; Shows ability to work towards predictive maintainance and communicates to team leader

Break Downs

Does not respond quickly to breakdowns; No sense of urgency when doing repairs; Repairs are generally inadequate or sub standard

Responds quickly to breakdowns; Repairs done with a sense of urgency; Repairs done to an adequate standard; Raises major concern & issues in a timely manner

Overcomes recurring problems; Instills a sense of urgency in others; Is considered an expert in their area

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Quality

Does not fully understand and appreciate the quality standards, inspections and documentation; Has had issues in meeting all quality expectations

Understands the product quality standards; Completes all quality tests, inspections and documentation; Immediately addresses and/or raise the alarm about quality issues

Proactively identifies and takes steps to rectify quality issues; Suggests and implements ways to improve quality

Safety

Does not fully comply with PPE requirenments; Demonstrates unsafe work practices; Does not implement safety feedback

Follows all PPE requirenments; Demonstrates safe work practices

Identifies unsafe practices and condtions; Provides feedback to otherts on safety requirenments; Identifies improvement opportunities

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Documents

Project Report (colgate palmolive)