nestle performance management tools

1. 1PMS

2. 2PMS

3. Performance
Management
Techniques
3PMS

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. PERFORMANCE MANAGEMENT
PROCESS
PMS 5
Communicate
ObserveEvaluate
Set Goals

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. Performance Management
Continuo
us
Goal directed
Revaluatio
n
7PMS

8. Why Performance Management
?
Total Quality
Traditional performance appraisal are
often tense and counterproductive
Strategic planning
8PMS

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. 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. Why PM is difficult ?
•Job/Outcomes not quantified
•Personal relationships with employees
•Unable to give criticism
•Personality biases
•Poor communication
•Conflicting Goals
11PMS

12. Techniques of PM
• Essay (open-ended)
• Management by Objective
• Ranking
• Behaviorally Anchored Ratings (BARS)
• Critical Incidents
• Forced Distribution
12PMS

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. 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. 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. 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. Nestle Link to Compensation
Ratings Bonus
“Above Par” 30%
“Par” 15%
“Below Par” 0%

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. Challenges
• Lack of integration
• Design challenges
• Lack of leadership support
• Implementation failure
• Incompetence
• Communication challenges
• Lack of monitoring
• Lack of evaluation
PMS 19

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