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Nestle performance management

nestle performance management tools

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Nestle performance management

  1. 1. 1PMS
  2. 2. 2PMS
  3. 3. Performance Management Techniques 3PMS
  4. 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 andPMS 4
  5. 5. PERFORMANCE MANAGEMENT PROCESS PMS 5 Communicate ObserveEvaluate Set Goals
  6. 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. 6PMS
  7. 7. Performance Management Continuo us Goal directed Revaluatio n 7PMS
  8. 8. Why Performance Management ? Total Quality Traditional performance appraisal are often tense and counterproductive Strategic planning 8PMS
  9. 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 9PMS
  10. 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 10PMS
  11. 11. Why PM is difficult ? •Job/Outcomes not quantified •Personal relationships with employees •Unable to give criticism •Personality biases •Poor communication •Conflicting Goals 11PMS
  12. 12. Techniques of PM • Essay (open-ended) • Management by Objective • Ranking • Behaviorally Anchored Ratings (BARS) • Critical Incidents • Forced Distribution 12PMS
  13. 13. Performance Management Techniques used by Nestle Balanced Scorecard Linked System 13PMS • a strategic planning and management system •originated by Dr. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework
  14. 14. Balance Scorecard design process PMS 14 •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
  15. 15. Nestle Performance Scorecard Measurements Below Par Par Abov e 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
  16. 16. Nestle Performance Scorecard.. Measurements Below Par Par Abov e 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
  17. 17. Nestle Link to Compensation Ratings Bonus “Above Par” 30% “Par” 15% “Below Par” 0%
  18. 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 18
  19. 19. Challenges • Lack of integration • Design challenges • Lack of leadership support • Implementation failure • Incompetence • Communication challenges • Lack of monitoring • Lack of evaluation PMS 19
  20. 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 PMS 20