Nestle performance management
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This document discusses performance management systems (PMS). It defines performance management as identifying, measuring, and evaluating employee performance to align it with organizational goals. A key part of PMS is continuous communication between managers and employees to set expectations, provide feedback, and evaluate results. The document contrasts performance management, which is an ongoing process to improve effectiveness, with performance appraisal, which is an annual formal review. It outlines why companies like Nestle consider PMS important for talent development, continuous learning, and building diverse high-performing teams. The document also discusses techniques Nestle uses in its PMS, including a balanced scorecard linked to compensation.
Nestle performance management
- 1. 1PMS
- 2. 2PMS
- 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
- 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
- 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