case

1. • Submitted by-Group No:05
20107-Shalmali
20109-Shreya Hegde
20112-Sinchana T K
20113- Sofi Kushalappa
20114-Soumya Kurtkoti
20115-Sree Sowmya Pukkella
20128- Amrutha Anil
20148- Komal Vashistha
CASE- 5 HENKEL BUILDING A WINNINGCULTURE
Submitted to- Dr. Mousumi Sengupta

2. INTRODUCTION
• Henkel is one of the largest manufacturers if chemical brands.
• Provides the leading technological brands in Laundries &
homecare, adhesive technologies, and beauty care.
• Henkel was a comfortable and stable work.
• Many employees have not received a negative response
evolution.
• Rorsted implement a change initiative in stages to build a
“winning culture”.
• First, they announced a series of ambitious financial targets.
• Introduced a system of performance management, classified as
the performance of managers and potential progression on a
four-point scale.
• Included an obligatory ranking requirement.
• These ratings significantly affected managers’ compensation
premium.
• Instrumental in achieving his first strategic priority “to achieve
full business potential”.

3. TIMELINE

4. Performance
grid

5. BONUS
• Group performance:
Henkel set two or three key performance indicators
at the company level which was measured on a scale
of 0% to 200%.
• Team Performance:
It based on specific business unit targets or local
market targets also measured against KPIs on a scale
of 0%to 20%.
• Individual Performance:
It was calculated using two inputs each weighted
50%
Two equally weighted individual KPIs measured,
scale of 0%to 150%.

6. PROBLEMS
Pressures on
employees
Competencies are
not considered
New approach is
time consuming
Ranking system Linking the Bonus
Unhealthy
competition
Importance is
given to quantity.
Excess incentives are
accumulated with top
performers

7. RECCOMENDATION
• The evaluation should consider the efforts of the employees as well
• Internal feedback from the employees to understand the problems they are facing.
• The time taken in DRT process should be reduced.
• Non-monetary benefits help to increase the moral of the employees.
• Individual performance should be given more weightage than the group evaluation.

8. LEARNING
• A company culture that is consistent with the
requirements for good strategy execution can energize
employees, deepen their commitment to execute the
strategy flawlessly, and enhance worker productivity in
the process.
• For an organization’s incentive system to work well, the
details of the reward structure must be communicated and
explained.
• One of the clearest benefits of regular reviews is the
opportunity to improve the overall performance in the
workplace.
• Training the underperforming employees will help the
organization to increase their overall performance or
productivity.

9. THANKYOU