Nestle

Group Members

Kamran Aqeel (2012-mba-27)

Nida Munir (2012-mba-29)

Maida Afzal (2012-mba-31)

Samia Ishtiaq (2012-mba-33)

Submitted to:

Sir Nabeel Arif

Solution for the Problems in High Performance & PMS

1

This Project of “Managing People for high performance” is completed with a great effort and

true spirit by the following persons,

Kamran Aqeel

Samia Ishtiaq

Nida Munir

Maida Afzal

All these members work hard for collecting information and for completing the report, they

work as a team and true team spirit was among them. The main purpose of the part two of our

project is to understand how to manage the peoples for high performance and how the problems

can be solved related to the high performance of the employees working in an organization.

All the credits go to ALLAH THE All MIGHTY AND THE MOST BENEFICIAL for

giving us such power and wisdom to complete the report on time. May Allah’s blessings

remain on us forever (Ameen) at the last we would like to thank Sir Nabeel Arif for taking us

in confidence and giving us an opportunity to make the report and to learn that what are the

problems companies face now a days in Managing people for high performance.

Acknowledgment

2

Table of Contents Executive Summary ................................................................................................................................. 5

OVERVIEW OF THE FIRST REPORT........................................................................................................... 6

(PART 2) ................................................................................................................................................... 7

HOW THE IDENTIFIED ELEMENTS OF HIGH PERFORMANCE CAN BE IMPROVED ................................... 7

Organizational structure: .................................................................................................................... 7

Information system: ............................................................................................................................ 7

Task design: ......................................................................................................................................... 8

Reward system: ................................................................................................................................... 8

People (selection, training and development): .................................................................................. 8

Justice and equity: .............................................................................................................................. 8

Higher productivity and efficiency: ..................................................................................................... 8

Organizational structure: ................................................................................................................ 8

Management Information system: ................................................................................................. 9

People(Selection & recruitment): ................................................................................................... 9

Reward system: ............................................................................................................................... 9

Contribution to the Lower Cost .......................................................................................................... 9

Reward system: ............................................................................................................................... 9

Training and development: ........................................................................................................... 10

Higher Product Quality ..................................................................................................................... 10

Justice and equity: ........................................................................................................................ 10

Selection: ....................................................................................................................................... 10

Customer Satisfaction ....................................................................................................................... 10

Seller Group: ................................................................................................................................. 10

Low Employee Turnover ................................................................................................................... 10

Justice and equity: ........................................................................................................................ 10

Information system: ...................................................................................................................... 10

Learning Organization ....................................................................................................................... 10

DESIGN PERFORMANCE MANAGEMENT SYSTEM ................................................................................ 11

Introduction: ..................................................................................................................................... 11

Importance of Performance Management System .......................................................................... 11

Performance appraisal system link with Performance management system: ................................. 11

Steps to make a performance management system: ....................................................................... 11

3

Defining Vision Statement of the Nestle: ......................................................................................... 12

Planning Performance:...................................................................................................................... 12

SMART Objectives: ............................................................................................................................ 13

Steps to Setting SMART Goals: ...................................................................................................... 14

Competencies: .................................................................................................................................. 16

Core competencies ....................................................................................................................... 16

Technical Competencies: .............................................................................................................. 16

Managerial Competencies: ........................................................................................................... 17

Leadership: .................................................................................................................................... 17

Our PMS and its link with the Leadership: .................................................................................... 18

Motivation tools: ........................................................................................................................... 18

Team Work: ................................................................................................................................... 19

Implementation: ............................................................................................................................... 19

Performance Review: ........................................................................................................................ 19

How to optimize your performance Review process ..................................................................... 19

Training & developments: ................................................................................................................. 20

Training relating to the Globe: ...................................................................................................... 20

Pen picture: ................................................................................................................................... 21

Assessment or performance appraisal: ................................................................................................ 21

Ratio in Smart objectives and Competencies: .................................................................................. 21

360-degree-performance-appraisal .................................................................................................. 21

Self-Assessment: ........................................................................................................................... 22

Peers: ............................................................................................................................................ 23

Sub ordinates: ............................................................................................................................... 23

Customers: .................................................................................................................................... 23

Superiors: ...................................................................................................................................... 23

Performance Appraisal form: ............................................................................................................ 24

Lenient and Stick Grading: ................................................................................................................ 25

Example: ........................................................................................................................................ 25

Provide rewards: ................................................................................................................................... 26

Automating Best Practices with Technology: ................................................................................... 26

Importance to the Continuous Excellence Department: .................................................................. 27

Balance Score Card: .......................................................................................................................... 27

Perspectives: ..................................................................................................................................... 29

4

Learning & Growth Perspective .................................................................................................... 29

Business Process Perspective ........................................................................................................ 29

Customer Perspective ................................................................................................................... 29

Financial Perspective..................................................................................................................... 29

Community Perspective ................................................................................................................ 29

Marketing Perspective: ................................................................................................................. 29

Need of the Balance Scorecard: ........................................................................................................ 29

CONCLUSION ......................................................................................................................................... 30

5

Executive Summary

In this report we discuss about the performance management system that how we can manage

peoples for working according to the quality standards and how can the problems that the

Nestle face related to the high performance can be resolve so for this we discuss the concept of

performance management system. In our performance management system we define the goals

for the company which have to achieved by the departments and fatherly by the employees of

the company for achieving these goals there are some competencies that are needed to

accomplish these goals these goals are the SMART goals means they should be specific,

measurable, achievable, realistic and time bound, after planning all these thing then implement

them and after this company executives should review and monitor the performance of the

employees in which if there are some trainings and developments are needed then it should be

given to the employees so that they can make their performance better, then final at the end of

the year all the employees should be assessed , on the basis of 360 degree performance appraisal

system then final give them reward according to their activities done in the year, their

performance and there effort for achieving the goals.

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OVERVIEW OF THE FIRST REPORT

In first report first of all we gave a brief introduction of the Nestle Company.

Than we also discuss about the Human Resource Management of Nestle and Continuous

excellence Department.

We also show the methodology for collecting data.

Than in first dimension we show the Elements of high performance work system

Organizational structure

Information system

Task design

Reward system

People (selection, training and development)

Justice and equity

Than we show the Outcome of high performance work system

Higher productivity and efficiency

Contribution to lower cost

Higher product quality

Great customer satisfaction

Low employee turnover

Learning organizations

Than we show the HRM practices organization is doing to achieve high performance

And then how well company has managed its performance management.

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(PART 2)

HOW THE IDENTIFIED ELEMENTS OF HIGH

PERFORMANCE CAN BE IMPROVED The elements of the higher performance are following:

Organizational structure

Information system

Task design

Reward system

People (selection, training and development)

Justice and equity

Outcome of high performance work system are following:

Higher productivity and efficiency

Contribution to lower cost

Higher product quality

Great customer satisfaction

Low employee turnover

Learning organizations

Elements of the higher performance

Organizational structure:

If we talk about the organizational structure of the Nestle so the problem is that there are wide span of

control which make the managers difficult to handle the employees so the span of control of the

employees must be according to the capacity.

It also depends on the situation and on the nature of the work, for example a department where there

are no need to direct the employees very much, in this place if the span of control of the employees is

very high than it will no need to narrow the span of control but the place where the employees need

directions, supervision, in this place if the span of control of the employees is wide than it effects the

performance of the manager as well as performance of the employees.

Information system:

Problesm in the first report regarduing the infornmation system was that the lower level

employees can not use the latest technology so the company should trained them instead of

providing esay communication tools because if you want to increase your performcane then

you have to compete with the latest technology .

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Task design:

All the employees should know about there jobs and job descriptions should be given to them

so that they should know about the work, they done.

Reward system:

In KPIs define by us there are customer perspective so there are both internal and external

cutomers about which we are talikng so internal cutomers are our employees and we have to

satisfied them, whether in case of rewards or in case of job satisfaction . all the employees have

same level of evaluation if the concept which is discuse above(Lenient grading or strike

grading)is applied in an organization then there are no justice In the organization related to

evaluation as well as in reward system.

People (selection, training and development):

If there are any kind of problem related to the people then we have to solved these problems

because in our community perspective people are also included.and if we talk about the peoples

within the orgnization then all the employees thoses are desrve there reward, their trainings and

development they should be provided by these facilities and their problems have to be resolve

by SMART goals.

Justice and equity:

In the problems related to the justice and equityhtere should also eliminate the concept of the

Lenient grading or strike grading, in the evaluation as well as in the selection process because

if there are different nature of the managers evaluate employees then the employee who work

efficient but evaluate by the stick manager will never compensted for good work and in case

of selection theses kind of employees loss the opertunity to select.

Outcome of high performance

Higher productivity and efficiency:

Organizational structure:

If we talk about the orgnizational structure than the span of control of the employees

are very wide so for the better performance system the span of control of the employees should

be limited and the so that the employees can better managed by mangers if there are lot of

employees under a singel manger than it is hard for him to manage these employees and

increase their performance.

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Management Information system:

Information system is very effective but for the lower level employees it is difficult to handle

this kind of information system so it affects the productivity of the lower level employees so

the solution for this problem should be that you have to trained your every employee for

GLOBE instead of managing easy way of communication for lower level employees.

People(Selection & recruitment):

People should selected according to the job specification but we observe the element of

Intercede in some cases so employees are not employed according to the job

Specification in these cases so the employees don’t know how to perform according to the

standard of quality work so in these cases productivity and efficiency effects so there should

be very strict rules regarding the selection of the employees.

Moreover when there are some training programs than it should be for every deserving

employee instead of think about financing, if it is out of budget then no one employee should

be sent for the training.

Reward system:

Reward system should be improved, employees those deserve the extra rewards only those

should be rewarded with extra facilities with this step the employees productivity will increase

because they desire for more and more reward.

Contribution to the Lower Cost

Reward system:

In nestle we observe that there are so many facilities for the upper level management that is

clearly shown that it increase the cost very much so our suggestions are that the managers

should be reward for their effective work instead of providing the costly facilities just for their

joining the jobs.

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Training and development:

There are a lot of cost incurred in the training and development of those employees those

deserve and need these training and development but as well as these training and development

also given to those people those not deserve or need it so it increase the cost, so cost can be

optimize by giving the training to the needy and deserving employees.

Higher Product Quality

Justice and equity:

There should no factor of favouritism, because it affect the quality because if employee gain

any kind of favouritism than they feel no need to constraint on their quality work and product

quality also so there should be stick rules and bench marks without any kind priority or biasness

so that the evaluation can be based on justice and equity and leads to the better quality.

Selection:

If there is an element of Intercede, employees are not selected according to their qualification

which affects the quality of work and quality of products so employees are selected according

to the requirement and there should be some stick rules and procedures.

Customer Satisfaction

Seller Group:

Customers are directly linked with the sellers when seller group not satisfied with company

than he can’t satisfy customer.

Low Employee Turnover

Justice and equity:

There should be no element of priority or favouritism if there is equality among all the

employees then it leads to the low turnover.

Information system:

Globe system is difficult to understand so the employees should give training so that they can

use it easily and never think to leave the organization.

Learning Organization

Some employees those don’t want to learn something because they feel proud to work in Nestle

and feel no need for learning so for this problem theses employees should be realized that every

organization have some problems no organization is perfect, if they make them realized for this

thing then these employees can take a look for increasing the performance, work hard for better

performance and make their work superb.

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DESIGN PERFORMANCE MANAGEMENT

SYSTEM

Introduction:

Performance Management System permits a business to bear profitability and performance by

linking the employee's pay to competency and input. It provides opportunities for concerted

personal development and career growth. Managing this process effectively is not easy. It calls

for a high level of co-ordination, channelled information flow, and timely review. Whether

employees are at a single place, or spread across multiple locations, the use of technology can

help simplify the complete process for more effective information management.

Importance of Performance Management System

Performance management system is a forward looking process for setting goals and regularly

checking progress towards achieving these goals. It is a continual feedback process whereby

the observed outputs are measured and compared with the desired goals. Any discrepancy is

then feedback into changing the inputs of the process so as to archive the desired goals if

performance management system properly designed and implemented it can change the course

of growth and pace of impact of organizations. Performance management could be defined as

it begins when the job is defined and ends when an employee leaves the company.

Performance appraisal system link with Performance management

system:

Your company should be a performance management system not a performance appraisal

system. In performance appraisal system there are just evaluation of the employees that what

are they doing whether they satisfied with the job done by them or not but in performance

management system you analyse your competencies, your goals, Key performance indicators

and then evaluate whether your company is performance according to the standards or not if

not then how can you improve your performance so if your company have a performance

management system instead of performance appraisal system then it will increase the perform

can of your company more.

Steps to make a performance management system:

Performance management involves more than simply providing an annual review for each

employee. It is about working together with that employee to identify strengths and weaknesses

in their performance and how to help them be a more productive and effective worker. Learn

how to develop a performance management system so that you can help everyone in your

organization work to their full potential.

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Figure 1: Performance Management System

Defining Vision Statement of the Nestle:

To be a leading, competitive, Nutrition, Health and Wellness Company delivering improved

shareholder value by being a preferred corporate citizen, preferred employer, preferred supplier

selling preferred products.

Planning Performance:

In planning of the performance management system we define the individual goals, we should

plan what should be achieved, to what standard, and what competencies are needed, and what

development are needed. We set annual targets and goals which we have to be achieved with

in a specific time period and employees related to their goals are evaluated on the basis of their

performance and their efforts to achieve these goals.

1

Defining Vision Statment

2

Planning performance

3 Implementation

4

Performance Review & Monitoring

5

Assessment & Reward

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Figure 2: Planning performance

SMART Objectives:

SMART Stands for Specific, Measurable, Actionable (or Achievable), Realistic (or Relevant),

and Time

So Nestle objectives should be:

S = Specific: In this they should know exactly what they want to achieve with all the details?

Goals must be well defined. They must be clear and unambiguous.

M = Measurable: in this they evaluate that can they quantify their progress so they can track

it?

How will they know when they reach their goal?

Define specific criteria for measuring progress toward the accomplishment of each goal

they set so that they can measure and keep track of their progress.

A = Attainable: Is their goal a challenge but still possible to achieve?

Goals must achievable. The best goals require them to stretch a bit to achieve them but they

are not impossible to achieve.

R = Realistic: Is their goal realistic and within their reach? Are they willing to commit to their

goal?

Almost certainly their goal is realistic if they truly believe that it can be accomplished.

Relevant: Is their goal relevant to their life purpose?

Their goal must be consistent with other goals established and fits with their immediate and

long-term plans?

T = Timely/Time Bound: Does their goal have a time limit?

Competencies are needed

Smart objectives,(individ

ual goals)

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Goals must have a clearly defined time frame including a starting date and a target date. If they

don’t have a time limit then there is no urgency to start taking action towards achieving their

goals.

Steps to Setting SMART Goals:

1. Make sure the goal you are working for is something you actually want, not just

something that sounds good.

2. A goal cannot oppose any of your other goals.

3. Develop goals in all areas of life: Family, Home, School, Athletics, Financial, Career,

Social, Mental, Ethical, etc.

4. Write your goal in the optimistic instead of the undesirable.

5. Write your goal out in comprehensive detail.

6. By all means, make sure your goal is high enough

7. This is the most important, documentation of your goals.

Figure 3: SMART Objectives

Increase the awareness

Cost reduction

Improve Performance of Sales Executives

Customer engagement

Increase the quality

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Goal Category Explanation

Increase the

awareness

Customer Conducts market research and develops sales plans and

increase customer awareness .Sales plan must be reported

every quarter to management team for analysis and

approval.

Target: Review, update, management approvals on a

quarterly basis and increase customer awareness by 10%

Cost reduction

Process Increase the prevention cost instead of internal failure

cost and reduce the price

Target: Increase in cost reduction by 5 % within a quarter

year

Improve

Performance of

Sales Executives

Learning

& Growth

To ensure that all sales executives meet/exceed the sales

targets provided to them.

Track the performance of sales team and guide them

consistently meet sales targets.

Target: improvement which give benefit for 1 billion

Customer

engagement

Customer To ensure that customers are happy with our services and

their needs are being met

To meet customers, get their feedback on customer

feedback form and discuss the same in the quarterly

management meeting.

Target: 3 customer meetings and feedbacks every month

Increase the quality

Business

process

Increase the quality to increase the customer satisfaction

Target: Increase the quality by 10% in a year

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Competencies:

Core competencies

Technical Competencies

Managerial Competencies

Core competencies

Honesty

Loyalty

Integrity

Corporate social responsibility

Mutual Coordination

Hardworking

Technical Competencies:

Use of technical tools for increasing performance:

If we talk about the elements of the high performance discussed above that how these elements

can be achieve through technical tools like:

Assignment method for optimizing cost:

Assignment method can be used for the purpose of optimize cost incurred in assigning different

task to different peoples demanding different costs, or optimize the cost of contract giving to

different companies.

Assignment method used to optimizing profit:

Assignment method can be used to optimizing profit by assigning the most profitable party for

a contract.

Johnson Rule:

John some rule can be used to optimizing the time incurred in a specific process.

Scatter diagram:

Scatter of fish diagram can be used to find the cause of different effects so that the cause can

be eliminated and effects can be reduced.

Check sheets:

Check sheets can be used for the purpose of how many times different problems are occurred.

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Control chart :

Control chart be minimizing errors, cause and effect diagram can be used for the main cause

of the problem.

Affinity diagrams

It is a kind of brain storming tool, it can be used to gather large amounts of ideas, opinions and

issues so that the performance can be enhanced.

Moreover:

Relations diagrams

Systematic diagrams/Tree Diagrams

Matrix diagrams

Arrow diagrams

Histogram

Pareto chart

Scater Diagram

These all are the different technical tools which can be used to enhance the productivity,

effecieny and performacne of a company.

Managerial Competencies:

Planning

Controlling

Organizing

Leadership

Ability to inspire

Evaluation skills

Analytical skills

Inter personal skills

Coordination skills

Political skills

Motivation skills

Leadership:

Leadership is a function of knowing yourself, having a vision that is well communicated,

building trust among colleagues, and taking effective action to realize your own leadership

potential." (Prof. Warren Bennis)

So if you apply leadership then your organization can grow because of the leadership you can

know who you are, and by leadership you can inspire to achieve your desire goals.

In an increasingly dynamic world, leaders face significant challenges and opportunities. These

stem from shifts to new social patterns and unprecedented worldwide competition. Achieving

on-going success requires that each Nestlé leader understands the context and capitalises on it,

as described in the following principles:

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Lead to win

Lead to win has built credibility as a result of coherent action, leadership and achievement.

It’s able to think from different perspectives and to create a climate of innovation. This

implies openness to risk and the possibility of making mistakes, but also the willingness to

correct and learn from them. Lead to win believes in the importance of alignment and

management of expectations. It has broad interests, a good general education, responsible

behaviour as well as a balanced lifestyle.

Manage for results

If you manage for results it embraces personal commitment and courage in execution. It

includes the capacity and the willingness to take initiatives and risks while maintaining

composure under pressure. It values proactive cooperation in order to create synergies at

local, regional and global levels. It embraces change and is able to implement it and manage

its consequences. It believes in achieving business objectives rooted in compliance and

sustainable practices.

Grow talent and teams.

Grow talent and teams are a passion for building and sustaining an environment where people

have a sense of personal commitment to their work and give their best to promote our

Company’s success. It understands the importance of continuous learning and improvement,

as well as sharing knowledge and ideas freely with others. It also believes in the importance

of building diverse teams, and promotes the advantages of gender balance.

Compete and connect externally

Constantly looks for ways to satisfy our consumers and customers while attracting new ones

in unique and compelling ways. It displays curiosity and open-mindedness as well as a high

level of interest in other cultures and lifestyles.

Our PMS and its link with the Leadership:

Our PMs is based on the continuous improvement in every activity of the employees and our

SMART objectives are of such nature which can make any company leading so our PMS is

according to the leadership principles.

Motivation tools:

Motivation is the willingness to apply high levels of efforts to reach organizational goals,

conditioned by the effort’s ability to satisfy some individual needs.

There are financial and non-financial motivational tools.

Financial tools: Financial motivations are salary bonuses profit share, allowances performance related pay etc.

Non-financial tools: Non-financial motivations are job enlargement, job enrichment, job rotation, employee

empowerment, employee involvement and appreciation etc.

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Team Work:

Team is a small group of people with complementary skills, who work together to achieve a

shared purpose and hold themselves mutually accountable for performance results and the team

work is the process of people actively working together to accomplish common goals so we

should also gave importance to the team work for achieving performance excellence.

Implementation:

In implementation we make communicate goals and objectives to different employee’s related

to different activities. Then we also control documentation operational control or emergency

preparedness.

Performance Review:

In today's workplace, performance improvement and the role of performance management is

an increasingly popular topic. After setting perspectives and working on them and struggle to

achieve goals you have to review results that whether the desire outcome is achieved or not.

Why the intense focus on performance management now. Business forces are ever-increasing

and organizations are now required to become even more effective and efficient, perform better

on business strategy, and do more with less in order to remain competitive.

Frequently when performance management is mentioned, people think of the employee

performance appraisal or review. Performance management, however, involves so much more.

Properly constructed appraisals should represent a summary of an on-going, year-round

dialogue. Focusing only on an annual appraisal form leads to misunderstanding and under

appreciation of the benefits of performance management.

An effective performance management process enables managers to evaluate and measure

individual performance and optimize productivity by:

Aligning individual employee’s day-to-day actions with strategic business objectives

Providing visibility and clarifying accountability related to performance expectations

Documenting individual performance to support compensation and career planning

decisions

Establishing focus for skill development and learning activity choices

Creating documentation for legal purposes, to support decisions and reduce disputes

How to optimize your performance Review process:

Set goals effectively

Begin with perofomence planning

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Ensure the ongoing process

Goals mangment

Gather information from a number of sources

Documentation

Adequately Prepare and Train Your Managers

The review

Link Performance mangment and Reward and recognition

Evaluate and encourage full participation

In our performance maangent system we set half early review of the performance in which we

review the performance of the employees regarding their competencies and SMART goals that

are assign to the employees of the company.

Training & developments:

After all the review and managing performance system if there are some problems regarding

the achieving of goals then you provide trading and development to the employees so that they

can learn how to improve the performance and can apply in the organization.

Training relating to the Globe:

There should training given to every employee for the Globe because Globe is one of the best

things in the Nestle which can increase the performance of the employees so every employee

should be trained for using Globe effectively.

Training feedback/Need for the year

Please specify areas where you would need input by way of training (professional or

personal)also specify what would be your effort in developing yourself in these areas

Date Trainig

need

Particulares

of the

programe

My

commitment/efforts

Remarks (Appraisor)

Pen picture of the individual to be filled by the appraiser

21

Pen picture:

A 'pen picture' is what is traditionally called a short bio-sketch, or personal sketch.

In performance management system you can use pen picture of the employees to evaluate them

and to increase their performance mangers take the pen picture of the employees and know

about them effectively. In this manager not rate the employees numerically. In it manager give

a statement and express his employee personality and gave him future career recommendation.

In it manager also tell the weak and strong points to him and give suggestion how to improve

it and also tell whether training is required for him or not.

Strong point: Strong and good points in an employee

Weak points: Weak and the points which are unachievable by the employee

Future Recommendation: Future recommendations for the good career of the employees.

Assessment or performance appraisal:

Ratio in Smart objectives and Competencies:

SMART objectives 70%

Competencies 30%

360-degree-performance-appraisal

Typically, performance appraisal has been limited to a feedback process between employees

and supervisors. However, with the increased focus on teamwork, employee development, and

customer service, the emphasis has shifted to employee feedback from the full circle of sources

depicted in the diagram below. This multiple-input approach to performance feedback is

sometimes called “360-degree assessment” to connote that full circle.

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Figure 4: 360 degree performance appraisal

Simply 360- degree performance appraisal system mean using the variety of sources that

provide the best picture of performance.

Self-Assessment:

This form of performance information is actually quite common but usually used only as an

informal part of the supervisor-employee appraisal feedback session. Supervisors frequently

open the discussion with: “How do you feel you have performed?” In a somewhat more formal

approach, supervisors ask employees to identify the key accomplishments they feel best

represent their performance in critical and non-critical performance elements. In a 360-degree

approach, if self-ratings are going to be included, structured forms and formal procedures are

recommended.

Give the brief description of the duties assign to you

Key

performance

Areas

Weightage Results Achieved A B C D

Weightage: each KPA is need to give the Weightage depending on its importance in the

individual job profile. Total weightage of all KPA should be the 100%

Employee

Self Assessment

Superiors

PeersSub

ordinates

Customers

23

Peers:

With downsizing and reduced hierarchies in organizations, as well as the increasing use of

teams and group accountability, peers are often the most relevant evaluators of their colleagues’

performance. Peers have a unique perspective on a co-worker’s job performance and

employees are generally very receptive to the concept of rating each other. Peer ratings can be

used when the employee’s expertise is known or the performance and results can be observed.

There are both significant contributions and serious pitfalls that must be carefully considered

before including this type of feedback in a multifaceted appraisal program.

Sub ordinates:

An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for

“Subordinates Appraising Managers”) is among the most significant and yet controversial

features of a “full circle” performance evaluation program. Both managers being appraised

and their own superiors agree that subordinates have a unique, often essential, perspective. The

subordinate ratings provide particularly valuable data on performance elements concerning

managerial and supervisory behaviours. However, there is usually great reluctance, even fear,

concerning implementation of this rating dimension. On balance, the contributions can

outweigh the concerns if the precautions noted below are addressed

Customers:

Internal customers are defined as users of products or services supplied by another employee

or group within the agency or organization. External customers are outside the organization

and include, but are not limited to, the general public.

Superiors:

Evaluations by superiors are the most traditional source of employee feedback. This form of

evaluation includes both the ratings of individuals by supervisors on elements in an employee’s

performance plan and the evaluation of programs and teams by senior managers.

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Performance Appraisal form:

Competencies (30%)

Core Competencies Excellent Good Average Poor

Honesty

Punctuality

Hardworking

Meet the requirements

Loyalty

Integrity

Corporate social responsibility

Mutual Coordination

Technical Competencies

Command in the related competencies

Problem solving ability

Quality of work

Managerial competencies

Organization and Clarity

Listening Skills

Keeping Others Informed

Written Communication

Sensitivity to Others

Smart objectives (70%)

Achieving given goals

Job knowledge

Comments:

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I have fill the appraisal form true to the best of my knowledge

Signature & date……………… Signature & date………………

(Appraiser) (Appraisee)

Rank……………… Rank………………

Name……………… Name………………

Service no……………… Service no………………

Signature & date………………

(reviewing Officer)

Rank………………

Name………………

Service no………………

Final Grading of the individual………………………………………………………

90%-

100%

Outstanding

Performance is the exceptional and exceed the expectations, consistently

demonstrates excellence standards in the job requirement.

75%-89% Good

Performance is good meets the requirement

60%-74% Fair

Performance is fair needs some improvements

By using this form the appraisers can effectively assess the employees and can make the best decision,

by using it they can come to know about the performance of the employees regarding their KPI,

competencies as well as about the SMART objectives they achieved related to them.

Lenient and Strict Grading:

The difference in evaluation of the employees because of the difference between the evolution

of the strict and lenient employees is a very big problem must be resolve for high performance

of the employees, for their motivation, for their better performance, until unless all the

employees not evaluate at the same level it effects the productivity, efficiency, employee

satisfaction, employee performance and employee turnover etc.

Example:

For example a manager grade an employee 1 who is very good in his work and his performance

is high, but because of the strictness of the manager this employees gain grade 6 form 10.

Now an employees whose performance and involment in the work is low than the employee 2

but he is graded by the manager who is a lenient manager, now the manager grade him 8.

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Now in this situation this is agianst the jsutice and equity,and the employee who diserve more

grads than the other and receive low because of the differnce between the managers,he

demotivated and his productivty and effeciency effects a lot,so for removing these problems

all the employees should be evaluate at the same level and there should be some benchmarks

for the eveluation of the employees.

Managers should be answer to the top management and top managemnt should be answerable

to the further top management,for example the manager of centre of expertise evluate the

employees with the strick grading and the manager of share services grading is leinient toward

employees, so they both should be anserable to the human resource manager and further human

resource manager is answerable to the managing director and the manging director should be

answerable to the head of swiz land.

Figure 5: Improving Grading System by Centralization

With this step every manger will be accountable for his decsion and he cant grading on his own

desir be beacasue he will be answerable for that,and the element of the biasness also removed.

Provide rewards: Once employees are assessed in their performance then they are provided some rewards

according to their capabilities, past activities, and their performance.

Automating Best Practices with Technology:

More and more organizations are relying on innovative technology solutions to implement

performance management best practices and automate painful manual processes. A move to

web-based, on-demand technology is making these systems affordable, regardless of the size

of an organization, with quick implementation schedules, no IT support requirements and

automatic upgrades.

Manger of Centre of Expertisse

Manger of Share

Services

Head of Human

Resource

Manging Director

Head Of Swiz Land

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An automated system can ensure that the performance management process is built around

world-class best practices, easy to complete, efficient and consistent across an organization.

Necessary visibility into organizational and departmental goals is simplified, as is access to

necessary data to support accountability, consistent standards, (by viewing manager average

ratings) and identification of top performers. In addition, technology enables companies,

managers and employees to address many of the issues discussed. When selecting an automated

performance management solution make sure to do your research. Some solutions offer nothing

more than an electronic appraisal form while others offer complete best-of-breed goal

management solutions. The best solutions offer:

Instant form routing and paperless processes

Goal tracking and cascading functionality for complete visibility and alignment

Automated goal management and performance review reminders

Legal scan wizards to ensure appropriate/legal use of language

Writing assistants to help managers prepare appraisal forms

Support tools providing coaching support to managers when they need it most

Dashboards to deliver company-wide, aggregated or individual reporting

It is especially important that technology provides us access to performance data and the ability

to evaluate progress against goals, compare average manager ratings, easily access

performance levels of individuals and use this data to support decision making. Aggregating

and analysing data in traditional paper-based forms is often too time-consuming and costly.

Importance to the Continuous Excellence Department:

As discussed in the first report that there are a separate department named as Continuous

excellence department in Nestle for continues excellence of the performance of the Nestle, the

aim of this department is to achieve the excellence so every department including HR

department should give special importance to this department for achieving desired goals.

Balance Score Card:

The balanced score card is a strategic planning and management system that is used broadly in

business and industry, organizations worldwide to align business activities to the vision and

strategy of the organization, improve inner and exterior communications, and monitor

organization performance against strategic goals.

The balanced scorecard has grown from its early use as a simple performance measurement

framework to a full strategic planning and management system. The “new” balanced scorecard

transforms an organization’s strategic plan from an attractive but passive document into the

"marching orders" for the organization on a daily basis. It delivers an outline that not only

provides performance measurements, but helps planners identify what should be done and

measured. It allows executives to truly execute their strategies.

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Perspectives:

Learning & Growth Perspective

Self-assessment for continuous improvement

Self-assessment for strategic & tactical planning

Business Process Perspective

Zero % defective

Continuous Production

Work Specialization

Do the right things right every time

Maximum Utilization of Resources

Customer Perspective

Lifetime Loyalty

Quality Products

Availability

Financial Perspective

Maximum Profit

Efficient use of Capital

Community Perspective

Environment Friendly

Hygienic Goods

Marketing Perspective:

Customer attraction

Customer retention

Customer loyalty

Customers Satisfaction

Need of the Balance Scorecard:

Managers can review the balance score card for the alignment of the activities of the different

people related to the different perspectives means whether the activities of one perspective

effect the activities of other? Or the activities of one perspective is in the best practice of the

other perspective so by this thing the performance of the organization can be optimize.

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CONCLUSION

In conclusion we provide our point of view regarding the elements of high performance system

that how can elements of high performance system can be improved and how the performance

management system of an organization can be improved moreover we develop a performance

management system in which we make our performance management system in which we

define Vision statement of the company than set the goals, implement them and then review or

monitor them on the quarter yearly basis, then make 360 degree assessment of the employees

by this the performance of the employees as well as performance of the organization can be

achieved.