This document summarizes and compares the performance management systems of Google, Apple, Statoil, Coca Cola, and IBM. At Google, goals are jointly set by managers and individuals and form the basis for assessment. Training and development aims to equip individuals with needed skills. Assessment is 360 degrees based on goals. High performance is highly rewarded. At Apple, goals are discussed by managers and individuals and individuals are measured on agreed goals. Training ensures additional skills beyond job requirements. Leadership leads by example. High performance is rewarded through a partnership program. Statoil's planning includes understanding risk and actions to meet targets. Goals are set through feedback and surveys. There is ongoing training and constant review and feedback.

1. Performance
Management
Assignment
Topic: Performance appraisal system &
Management systems of various
companies…
Submitted by:
SHERYL MEHRA
Division- C
Batch: 2012-2015

2. Performance ManagementatGoogle
 Planning
1. Goals Management: managers and Individuals jointly set goals based on the overall
objectives of the company, this is agreed on. Goals once set become the basis for
assessing individuals and managers. Everything needed in order to achieve such goals are
provided including incentives and training. Individuals are made aware of their
contribution towards the achievement of the organizational goals.
2. Recruitment /Hiring: One of the core values of Google is to recruit great people, who
have the desire skills and experience in the field they operate. They closely link their
recruitment process to the organizational goals, which intend yield a high result of
equally high quality workers.
SOURCE: Google (2011)
3. Training/Development: There are several training programs at Google which aims at
equipping individuals with the needed skills in order to be able to be abreast with time.
This actually helps Google increase the knowledge base in the organization and therefore
tends to help them achieve their objectives (Google, 2011)
 Coaching: Management give the necessary support to staff to help them achieve the
standards and objectives of the organization, this involves review of the organizational
performance plan, observing and documenting performance and giving feedback. At

3. Google, individual performance towards the achievement of the organizational goals is
monitored by their line managers; this includes regular checks, and guiding individuals
throughout the process(Beasley, 2008)
1. Communication: Communication is very paramount in every organization, Google
therefore, ensure that there is effective flow of information throughout the
organization. Since decisions are made based on information, individuals are well
informed about their performance, as well as changes in operation, these information
are authentic and tends to help individuals achieve their goals (Rudnick et al.2011)
 Appraisal: Assessment at Google is 360 degrees, this is where individual performance is
accessed and feedback is given by number of people including managers, subordinates,
Colleagues and customers (Armstrong, 2009). The assessment is based on initial goals set
and agreed, on by both line managers and staff, with effective monitoring and feedbacks
to employees on their actions towards the achievement of the goals. This measurement is
not only based on individual’s ability to exhibit his skills, but his involvement in most
activities, including voluntary work. (Na, 2011)
 Rewarding/Retaining: Google view its employees as their greatest assets, and believes
that satisfied employees = satisfied customers = high profitability and market share.
(Andersen & Mittal, 2000). High performances are highly rewarded, Google gives
founders award which is to reward good contribution, all these and more help to achieve
high performance goals of the organization.
Performance ManagementatApple
 Planning:
1. Goals Management: unlike Google, Apple goals are made known to employees
immediately organizational goals are set. This is jointly discussed by line-managers
and the necessary steps taking in order to achieve such goals. However, individuals
are measured based on these goals agreed on and initiated. Individuals are informed
on their contribution to the achievement of the objectives of the company (Lliev et al.
2004).
2. Recruitment/Hiring management: The HR objectives in Apple are: “Provide the
company with necessary personnel to assure superior performance. Employees should
at all times strive for the highest quality in all they do. Ensure proactive internal
career progression” (Lliev et al. 2004).Apple is noticed of recruiting peoples whose
attitude and qualities meet the needs of the company. Employee competence and the
ability to deliver in order to achieve the overall objectives of the company, is
considered during the recruitment process. Apple also tends to recruit people who
admire their product and services, thus people who love to work with them. (Lliev et
al. 2004).

4. SOURCE: (www.apple.com, 2011)
3. Training/Development: The secret to Apple’s innovations are the intellectual capital
they have, knowledge management is the most important key in this firm, Apple
therefore ensure that employees are highly trained, they realise the need for their
staffs to get additional skills rather than what they require to do their work. This
clearly define the organizational strategy of aligning individual objectives with that of
the organization, employees feel more attached to work when they receive such
trainings (www.accessessays.com, 2011)
 Coaching: management give the necessary support to staff to help them achieve the
standards and objectives of the organization, this involves review of the organizational
performance plan, observing and documenting performance and giving feedback.
Management tends to ensure that individuals whose performance is not up to standard are
corrected and given the necessary guidance
1. Leadership: Leaders in Apple are supposed to lead by example, Steve Jobs was one of the
greatest leaders who really impacted on apple not just technologically but also leadership,
he had good leadership qualities which make employees prompt to work whenever he is
involved: Leaders at Apple act as mentors and coaches, this is what we call leadership by
example, and they also encourage teamwork and togetherness (Little, 2011).
2. Communication & Decision making: Since communication is very important in every
organization, Apple has a very strong skill of communicating information from top to
down and the vice versa, feedbacks are given on time and the necessary steps are taking
to improve performance
Pros and Cons: Employees in Apple are not allowed to use social media at work, not only that
but also are not allowed to make any critical comment on the company on any social media,
since Apple considers its image as the centre of its success. Individuals in the organization are no

5. allowed to do anything that will destroy their image since it is the centre of their success
(Künzler, 2011)
 Appraisal: Appraisal at Apple is on-going and tends to give feedbacks to both appraiser
and appraised and to serve as formal opportunity for personal counselling, motivation
salary reviews and allocation of merit payments. Staff members are accessedbased on
terms of objectives, tasks and results achieved based on pre-determined goals planned
and agreed jointly by individuals and their line managers. The appraisal system helps the
HR to determine any shortage in a particular skill, and therefore undertake recruitment to
replace such efficiency. Rewards are given for good performance.The figure below
shows how appraisal is done in Apple(Lliev et al., 2004)
Figure 1: Performance Appraisal in Apple.
SOURCE: (Lliev et al., 2004)
 Rewarding/Retaining:
Apple give great reward to employees for high performance, they have a partnership program
(which include managers and employees) which tends to steer the affairs of the company;
employees who make immense contribution to this program are also rewarded. Apple believes in

6. giving recognition to people who impact on the company which in turn raise their morale. (Lliev
et al., 2004)
Performance ManagementatStatoil
 Planning
Planning starts with understanding risk and actions needed to manage risk and includes:
• actions required to move towards strategic objectives and deliver on KPI (Key Performance
Indicators) targets, including action planning (what, how, who, when)
• unbiased forecasts (what they expect to happen)of these actions’ expected effect on relevant
KPIs, providing an early warning of possible gaps in reaching targets(what they want to happen,)
and for other financial/operational trends, this forecast is aimed at supporting decision
making.(Statoil Book,2011)
1. My Performance Goals (MPG): The goals of the company are set based on delivery
defining member’s accountability and support evaluation, and behavioural goals help
them to live their values, and to address the behaviour required and expected in order to
achieve delivery goals. These goals are set on feedback from the People@Satoil dialogue,
the Even stronger Values (EVS) survey, Global People Survey (GPS) results, and day-to-
day observations from leaders and colleagues.(Statoil, 2011)

7. (SOURCE: http://www.statoil.com, 2011)
2. Recruitment/Hiring: Statoil is an international oil and gas company with 25,000
employees and business activities in 34 countries. The company employs skilful
personnel whose capabilities aids in the achievement of the company’s goals.
(Statoil.com, 2011)
3. Training/Development: Selected employees receive regular training on new technologies,
however, there is on-going training in the organization between line managers and
employees which tend to ensure effectiveness and constant agreement and review of
employee goals.
 Coaching/ Compliance and leadership: Leaders are made to understand task, know the
requirement and identify the risks involved and give the possible training. The leaders
communicate with the individuals and give them the necessary feedback and support
about the quality of work, and behaviour. The diagram below shows a system they call
compliant and leadership. (Statoil Book, 2011)
Coaching at Statoil
Fig. 3 SOURCE: Statoil Book (2011)
1. Communication & Decision making: there is free flow of information between
employees and information about new developments is communicated to all within the
shortest possible time (Stat Book, 2011)

8.  Appraisal: the appraisal in Statoil start with an initial review of the ambition of team
members, this is followed by a review of the previous year’s delivery and behaviour.
After this, new goals are set which includes the creation of awareness of the company’s
long-and short-term developmental plans is based on goals established between team
members in the organization. There is constant review to give feedback to employees on
their ability to achieve their pre-determined goals, and the necessary guidance given to
those who have some shortfalls. From here, individual capabilities are identified in each
team and developmental actions are taking for improvement. This appraisal aims at
rewarding, deploying and counselling. This system however, tends to closely link
individuals to the organization through effective teamwork and a clear understanding of
corporate objectives is ensured through effective team management. The figure below
shows how performance appraisal is done in Statoil (Stat Book, 2011)
Performance Appraisal at Statoil
Fig. 2 SOURCE: Statoil book (2011)
 Rewarding and Retaining: As a former national oil company in a Nordic social
democracy, Statoil’s policies of reward and remuneration seek to balance a broad range
of objectives and concerns. Their reward system is based on both result and process, and
are closely linked with the performance, higher performance at higher levels attract

9. higher rewards. This they do to achieve a common goal of developing the community
interest between the group’s employee and its owners (http://www.statoil.com, 2011)
Performance Management atCoca Cola:

12. Performance Management atIBM:
Performance Appraisal in IBM In the competitive era, IBM focuses on employee
satisfaction becauseof satisfy employees provide their best efforts to the
organizational growth by providing customer satisfaction. IBM provides monetary
and nonmonetary benefits to their employees on the basis of their performance.
IBM focuses on team work rather than peer pressures that enhance the motivation
towards theorganization. IBM believes on their traditions. IBM has its own culture,
values, traditions, history, practices and rules and regulations for wholeemployees.
Performance Appraisal system of IBM shows their uniqueculture. According to
this Walton E. Burdick, Quality employees play a vital role in this competitive
environment to achieve the organizational goals.Thomas Watson (Founder of
IBM) stated that creativity and values of an individual makes an organization. An
organization success depends ontheir employees performance. Louis V. Gerstner
(Former chairman &CEO IBM) focused on flexible and innovative consistent
performance eappraisal system. IBM focuses on innovation through the effective

13. workforce performance. So they have launched ³Personnel Management's Training
and Management Assistance Program´ at their U.S. Office. IBM helps to govt.
agencies to produceeffective workforce by providing relevants kills, knowledge,
supportive environment and team work for organizational growth as well as self
advancement. (IBM, 2010)
Conclusion IBM focus on employee satisfaction because thesatisfy employee play
a vital role to achieve the organizationgoals through the innovation and creativity
towards their assignedtasks. Motivated employees provide their best efforts for
theorganization growth as well as self improvement.