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Performance

Management
System

PMS 1
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 and reward
performance. PMS 2
PERFORMANCE MANAGEMENT
PROCESS

Set Goals Communicate

Evaluate Observe

PMS 3
Performance
Management
Continuous

Goal directed

Revaluation

PMS 4
Why Performance Management ?

Total Quality

Traditional performance appraisal are


often tense and counterproductive

Strategic planning

PMS 5
Why Nestle considers PMS
important?
Nestl India
recognizes that people
make the difference
encourages and supports
its people to inculcate
the clearly laid down Nestl India Leadership Principles
Nestl India will push you to broaden your horizon, both
nationally & internationally
Nestl India believes in giving as much responsibility as
possible to the individual PMS 6
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

PMS 7
Why PM is difficult ?

Job/Outcomes not quantified


Personal relationships with employees
Unable to give criticism
Personality biases
Poor communication
Conflicting goals

PMS 8
Techniques of PM

Essay (open-ended)
Management by Objective
Ranking
Behaviorally Anchored Ratings (BARS)
Critical Incidents
Forced Distribution

PMS 9
Performance Management
Techniques used by Nestle
Balanced Scorecard Linked System

A strategic planning and management system

Originated by Dr. Robert Kaplan (Harvard Business


School) and David Norton as a performance measurement
framework

PMS 10
Balance Scorecard Design Process

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
PMS 11
Nestle Performance Scorecard
Measurements Below Par Abov
Par e Par
Standards Managers assessment

Leadership,

Ethics/Integrity

Customer Interaction

Community Involvement

Contribution to Overall
Business
People Managers assessment

Performance

Teamwork

Training & Development


Employee Satisfaction
Nestle Performance Scorecard..
Measurements Below Par Abov
Par 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
Essay Technique
Describe in detail the quantity and quality of the
employees performance during the past twelve
months
Describe the employees strength and weakness
How do you describe the employees 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 14
Challenges
Lack of integration
Design challenges
Lack of leadership support
Implementation failure
Incompetence
Communication challenges
Lack of monitoring
Lack of evaluation
PMS 15
Areas
Areas of
of Improvement
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 16