Nestle

Solution for the Problems in High

Performance & PMS

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
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Acknowledgment
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.
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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
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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
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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
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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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5
Assessment &
4 Reward
Performance
3 Review &
Implementation Monitoring
2
Planning
1 performance
Defining Vision
Statment

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.
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Smart
Competencies are
objectives,(individ
needed
ual goals)

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?
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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.

Increase the awareness

Cost reduction

Improve Performance of Sales Executives

Customer engagement

Increase the quality

Figure 3: SMART Objectives

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Goal Category Explanation

Increase the Customer Conducts market research and develops sales plans and
awareness 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 Learning To ensure that all sales executives meet/exceed the sales
Performance of & Growth targets provided to them.
Sales Executives Track the performance of sales team and guide them
consistently meet sales targets.
Target: improvement which give benefit for 1 billion

Customer Customer To ensure that customers are happy with our services and
engagement 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 Increase the quality to increase the customer satisfaction
process 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 Particulares My Remarks (Appraisor)

need of the commitment/efforts
programe

Pen picture of the individual to be filled by the appraiser

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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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Self
Assessment

Customers Superiors

Employee

Sub
Peers
ordinates

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 Weightage Results Achieved A B C D

performance
Areas

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%
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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%- Outstanding
100% 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.

Manger of
Centre of
Expertisse Head of
Human Manging Head Of
Director Swiz Land
Resource
Manger of
Share
Services

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.
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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.