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nestle performance management tools
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PMS 1
PMS 2
PMS 3
Performance Management
Techniques
PMS 4
Performance Management System
• 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.
PMS 5
PERFORMANCE MANAGEMENT PROCESS
Communicate
Observe
Evaluate
Set Goals
PMS 6
Performance Management vs Performance Appraisal
• Performance management:– Dynamic, continuous process.– Improves organizational
effectiveness.– Strategic goals.
• Performance appraisal:– Periodic (usually annual) event.– Formal review.– Last step in performance
management process.
PMS 7
Performance Management
Continuous
Goal directed
Revaluation
PMS 8
Why Performance Management ?
Total Quality
Traditional performance appraisal are often tense and counterproductive
Strategic planning
PMS 9
Why Nestle considers PMS important?• Nestlé India recognizes that people make the difference• encourages and supports its people to inculcate the clearly laid down Nestlé India Leadership Principles • Nestlé India will push you to broaden your horizon,
both nationally & internationally• Nestlé India believes in giving as much responsibility
as possible to the individual
PMS 10
Nestle grows talent & teams
• passion for building and sustaining an environment where people have a sense of personal commitment to their work
• Understands the importance of continuous learning and improvement
• committed to giving and receiving honest, accurate and timely feedback
• Believes in the importance of building diverse teams, and promotes the advantages of gender balance
PMS 11
Why PM is difficult ?
•Job/Outcomes not quantified•Personal relationships with employees•Unable to give criticism•Personality biases•Poor communication•Conflicting Goals
PMS 12
Techniques of PM
• Essay (open-ended)• Management by Objective• Ranking• Behaviorally Anchored Ratings (BARS)• Critical Incidents• Forced Distribution
PMS 13
Performance Management Techniques used by Nestle
Balanced Scorecard Linked System
• a strategic planning and management system
•originated by Dr. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework
PMS 14
Balance Scorecard design process
•Translating the vision into operational goals
•Communicating the vision and link it to individual performance
•Business planning; index setting
•Feedback and learning, and adjusting the strategy accordingly
Nestle Performance Scorecard
Measurements Below Par
Par Above Par
Standards Manager’s assessment
Leadership,
Ethics/Integrity
Customer Interaction
Community Involvement
Contribution to Overall Business
People Manager’s assessment
Performance
Teamwork
Training & Development
Employee Satisfaction
Control Auditors’ standards
Audit
Legal
Regulatory
Nestle Performance Scorecard..
Measurements Below Par
Par Above Par
Customer Satisfaction External company survey Goal of 80%
Strategy Implementation Objective standards
Households
Cross-sell, splits, mergers
Retail asset balances
Market share
Financial Objective stadards
Revenue
Expense
Margin
Nestle Link to Compensation
Ratings Bonus
“Above Par” 30%
“Par” 15%
“Below Par” 0%
PMS 18
Essay Technique• Describe in detail the quantity and quality of the
employee’s performance during the past twelve months
• Describe the employee’s strength and weakness• How do you describe the employee’s potential
within the company?• What leadership skills does the employee bring
to the job?• What future development activities do you
recommend for the employee?
PMS 19
Challenges
• Lack of integration• Design challenges• Lack of leadership support• Implementation failure• Incompetence• Communication challenges• Lack of monitoring• Lack of evaluation
PMS 20
Areas of Improvement
• Use practical tools to improve employee performance• Use a sound framework for performance development• Rely on multiple sources of information• Identify key job performance dimensions• Develop a structured process and reliable measures