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Performance Management System

At
Chaudhary Group

Submitted to:
Ms. Guru Laxmi Hait
Course Instructor
Performance Management

March, 2020
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Performance Management System

Performance management system is the systematic approach to measure the performance

of employees. It is a process through which the organization aligns their mission, goals and
objectives with available resources (e.g. Manpower, material etc.) systems and set the priorities.

The competency, skills and knowledge gaps are also identified through this process
which can be improved by providing guidance, trainings, coaching and mentoring to employees
or teams at different levels and designations. It optimizes the results through a roper channel and
process which reduces the conflicts and grievances among teams or employees. Because each
individual is clear about the expectations from his/ her role and put their efforts to meet
performance standards.

This process can be applied to single department / function or to whole organization. It

aims to continuously monitor and measure the performance standards against the desired goals
and objectives

Chaudhary Group

Chaudhary Group is the most reputed company of Nepal. The first step towards
establishing the business empire goes to late Bhuramull Chaudhary some 142 years ago. Late
Bhuramull Chaudhary used to import fabrics and textiles from various parts of India and
supplied them in the palace of Rana with the help of his son and several porters. In that time,
there was no need to register to open private business firm so this operation functioned under
the informal name of Bhuramull Lunkaran Das.

Chaudhary Group has been serving the nation since last 65 years. It is a conglomerate of
over 40 businesses. More than 40,000 people are working with the owner who are speeding the
development of the company. Chaudhary Group has been contributing in the field of food and
beverages, automobiles, infrastructure, consumer durables and other specialties. In the starting
phase, Chaudhary Group just provided single service to the Ranas but in the present context it
is providing multi service to everybody.
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CG touches almost every aspects of public life – with presence in industries like food,
beverages, finance, biotech, tobacco, brewery, infra, electronics, cement, packaging,
hydropower, education, realty, developers, hotels & resort and
hospitality.The CG, as the first Nepalesecompany, also has growing presence in South Asia’s co
mpetitive FMCG markets.
The team members of Chaudhary Group comprise of excellent professionals and
expertise that work to guide the clients as per their requirements. There is solid foundation of
trust and cooperation between team members which has contributed to its success. The teams
have good cooperation and thus understand their roles; what to expect and how to respond to
work effectively.
Mission and Vision
Vision
To be a five billion dollar enterprise by 2020.
Mission
- Understand consumer needs and meet those with safe, effective and world-class products.
- Integrate our dealers, distributors, retailers, suppliers and JV partners into the CG
Corp Global Family.
- Recruit, develop, motivate and retain the best talents within the country; recruit if need
be from abroad and provide them a challenging and demanding environment.
- Foster a strong employee feeling of oneness and ownership within the company.
- Emerge as a Model Corporate institution and contribute effectively towards the growth
of Nepali society and the country at large.
- Become the most admired company in Nepal.
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Performance Management Process at CG

Analysis of performance management of Chaudhary Group

1. 360 Degree Performance Appraisal:

At CG they follow 360 Degree performance appraisal where superiors, peer groups and
subordinates provide holistic and objective evaluation of the employees. Then the assessment is
communicated transparently to all employees individually
2. Management by Objectives (MBO):
The MBO focuses attention on participative goals that are tangible, verifiable &
measurable. The senior level and subordinates jointly determine goals to be considered during
appraisal period & what level of performance is necessary for subordinates to satisfactorily
achieve specific goals. During performance appraisal period the superior & subordinates update
& alter goals as necessary due to changes in business environment
3. Appraising of performance:
Chaudhary Group follows two different types of appraisal process for the employees who
just joined and the employees already working in the organization. For the employee who has
newly joined has to go through 30days, 60days and 90 days evaluation process. And for the old
employees they evaluate the performance in a yearly basis. Usually evaluation at CG is done at
year end however midyear review is also done for the internal purpose.
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4. Purpose of performance management system

The purpose of an employee evaluation is to measure job performance. CG uses

Performance management system in order to find out the employee training and development
needs. Training is usually provided to supports employees to acquire new skills, build employee
aptitude and current performance. Performance measurement through employee evaluations is a
component of CG’s compensation structures. The ratings employees receive as a result of
supervisors observing and evaluating their performance can directly impact the amount of the
employee’s salary or wage increase. It also gives supervisors and managers an opportunity to
recognize employees’ hard work, dedication and commitment. Instead of monetary rewards,
evaluations also are used to identify highly proficient workers to whom the employer can assign
additional duties and responsibilities, or even promote to a leadership role.

5. Identify areas for improvement

One of the key objectives of performance evaluation at CG is to address any of the
areas that are most closely related to the employee's ability to reach his or her personal goals
and contribute to the organization. It helps the CG to identify causes of any problems in
achieving goals and emphasize problem solving and concentrating on future actions.