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Project

Report

on

Performance Management System of Nestle

2019-2021

Submitted by – Submitted to –

Dr. Manisha Shukla

Aashi Bilala
Ananya Singh
Aakrati Rathore
Muskan Mittal
Pragya Baghel
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CONTENT
TITLE PAGE
Introduction 3
Importance of performance management system. 3
Steps to make a performance management system. 4
How the identified elements of high performance can be improved. 5
Outcome of high performance work system are following :- 8
Planning Performance for Nestle 11
SMART Objectives 16
Nestle SMART Objectives 17
Competencies 19
Ratio in Smart objectives and Competencies 20
Conclusion 21

Introduction
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The performance management method is a systematic approach to the

performance assessment of employees, it is a mechanism by which the
organization alliance its mission and objectives with the available resources
(e.g. personal ,material ,etc.) procedures and priorities performance
management framework enables an organization to bear profitability and
performance by relating the compensation of its workers to skill and feedback ,
it offers opportunities for concerted personal growth and career development , it
is not easy to handle this process effectively it calls for a high degree of
collaboration channelled knowledge flow and timely analysis
if workers are in a single location Or spread through several locations the use of
technology may help to simplify the entire process of more efficient information
management.

Importance of performance management

system.

The performance management system is a forward looking mechanism for

setting priorities and continuously tracking progress towards achieving those
objectives it is a continuous feedback mechanism by which the observed
outputs are Calculated and compared to the desired objectives

Any difference is then the feedback on adjusting the inputs of the process in
order to archieve the desired targets if the performance management system
correctly developed and applied will alter the direction of development and the
rate of impact of the organization performance management could be described
as beginning when the jobs defined ending when the employee leave the
organization
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Steps to make a performance management

system

Performance management requires more than just having an annual evaluation

for employee it is about working with employee to understand this friends and
limitations of their sex and how to help them become a more efficient and
successful worker .learn how to build a performance management framework to
help everyone in the company function optimally

 Defining vision statement

 Planning performance
 Implementation
 Performance review and monitoring
 Assessment and reward

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
 Justice and equity

Outcome of high performance work system are following :-

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 Higher productivity and efficiency

 Contribution to lower cost
 Higher product quality
 Great customer satisfaction
 Low employee turnover
Planning Performance for Nestle
Inplanningoftheperformancemanagementsystem,we identify the
individual goals, plan what should be done, to what standard, what skills
are required, and what growth is needed. We set annual targets and
objectives that we have to accomplish over a particular period of time,
and workers are judged on the basis of their success and their attempts to
achieve these goals.

Smart Competencies are

objectives, (individual goals) needed

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
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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?

Definespecificcriteriaformeasuringprogresstowardtheaccomplish
mentofeachgoal they set so that they can measure and keep track
of theirprogress.

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?

Goalsmusthaveaclearlydefinedtimeframeincludingastartingdateandatarg
etdate.Ifthey don’t have a time limit then there is no urgency to start
taking action towards achieving their goals.
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Nestle SMART Objectives

Goal
Increase
the
awareness

Cost reduction

Improve
Performance of
Category
Customer

Process

Learning
& Growth
Explanation
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%
Increase the prevention cost instead of
internal failure cost and reduce the price
Target: Increase in cost reduction by 5 %
within a quarter year
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To ensure that all sales executives meet/exceed

the sales targets provided to them.
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Sales Track the performance of sales team and guide

Executives them consistently meet sales targets.
Target: improvement which give benefit for 1
billion
Customer Customer To ensure that customers are happy with our
engagemen services and their needs are being met
t 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
process satisfaction Target: Increase the quality by
10% in a year

Competencies
1. Core competencies

2. Technical Competencies

3. Managerial Competencies

1. Core Competencies
 Honesty
 Loyalty
 Integrity
 CSR
 Hardwiring
2. Technical Competencies:
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Use of technical tools for increasing performance:

Ifwetalkabouttheelementsofthehighperformancediscussedabovethathowt
heseelements can be achieved through technical toolslike:

 Assignment method for optimizing cost:

Assignmentmethodcanbeusedforthepurposeofoptimizecostincurredinassi
gningdifferent task to different peoples demanding different costs, or
optimize the cost of contract giving to differentcompanies.

 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.
 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

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of ideas, opinions and issues so that the performance can be enhanced.

3. Managerial Competencies
 Planning
 Controlling
 Organizing
 Leadership
 Ability to Aspire
 Evaluation skills
 Analytical skills
 Inter personal skills
 Coordination skills
 Motivation skills

Usage :
In implementation we make communicate goals and objectives to different
employee's related to various exercises. At that point we additionally control
documentation operational control or crisis readiness.

Execution Review:
In the present work environment, execution improvement and the job of
execution the executives is an inexorably famous subject. In the wake of setting
points of view and chipping away at them and battle to accomplish objectives
you need to audit results that if the craving result is accomplished.
Why the serious spotlight on execution the executives now. Business powers are
always expanding and organizations are now required to become even more
effective and efficient,perform better on business system, and accomplish more
with less to remain competitive.
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Much of the time when execution the board is referenced, individuals think
about the employee performance appraisal overview. Performance
management,however,involves so much more. Appropriately developed
evaluations ought to speak to a synopsis of an on-going, all year exchange.
Zeroing in just on a yearly evaluation structure prompts misconception and
under enthusiasm for the advantages of performance management.
A viable presentation the executives cycle empowers chiefs to assess and
quantify singular execution and improve profitability by:
• Aligning singular worker's everyday activities with vital business
objectives
• Providing perceivability and explaining responsibility identified with
performance expectations
• Documenting singular execution to help pay and profession arranging
choices
• Establishing center for expertise improvement and learning
activitychoices
• Creating documentation for legitimate purposes, to help choices and
reduce disputes.

Instructions to streamline your exhibition

Review measure:
• Set goalseffectively
• Begin with performance arranging
• Ensure the ongoingprocess
• Goalsmanagment
• Gather data from a number ofsources
• Documentation
• Adequately Prepare and Train YourManagers
• Thereview
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• Link Performance management and Reward andrecognition

• Evaluate and support fullparticipation
In our exhibition manage framework we set half early audit of the presentation
in which we review the performance of the employees regarding their
competencies and SMART goals that are allocate to the workers of the
company.
Preparing &developments:

After all the audit and overseeing execution framework if there are a few issues
with respect to the achieving of goals then you provide trading and development
to the employees so that they can figure out how to improve the exhibition and
can apply in the organization.

Preparing identifying with the Globe:

There should preparing given to each worker for the Globe since Globe is
perhaps the best thing in the Nestle which can expand the presentation of the
representatives so every worker ought to be prepared for utilizing Globe
successfully.
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 Traini Particulare My Remarks
g need s of the commitment/effo (Appraisor)
programe rts

Pen picture of the individual to be filled by the appraiser

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In performance management system you can use pen picture of the

employees to evaluate them and to expand their presentation troughs
take the pen image of the workers and think about them adequately. In
this supervisor not rate the representatives mathematically.In it manager
give a statement and express his employee personality and gave him
future career recommendation. In it chief likewise advise the feeble and
solid focuses to him and give recommendation how to improve it and
furthermore tell whether preparing is needed for him or not.

 Solid point:

 Solid and valid statements in a worker

 Frail focuses:

 Frail and the focuses which are impossible by the representative

 Future Recommendation:

 Future suggestions for the great vocation of the workers.

Ratio in Smart objectives and Competencies:

SMARTobjectives 70%
Competencies 30%
360-degree-performance-appraisal - a feedback process between employees
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Simply 360- degree performance appraisal system mean using the

variety of sources that provide the best picture of performance.

Self-Assessment:
This type of execution data is very normal yet typically utilized uniquely as a
casual piece of the chief worker examination input meeting. Bosses habitually
open the discussion with:"How do you feel you have performed?"In a
somewhat more formal approach, chiefs request that workers distinguish the
key achievements they feel best speak to their exhibition in basic and non-basic
execution components. In a 360-degree approach, if self-evaluations will be
incorporated, organized structures and formal techniques are suggested.
GIVE THE BRIEF DESCRIPTION ASSIGN TO YOU

Key Weightag Results Achieved A B C D

performan e
ce 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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Companions:
With scaling back and decreased chains of command in associations, just as the
expanding utilization of teams and group accountability,peers are often the most
relevant evaluators of their colleagues' exhibition. Friends have an exceptional
viewpoint on a collaborator's work execution and representatives are by and
large open to the idea of rating each other.Peer evaluations can be utilized when
the worker's ability is known or the presentation and results can be noticed.
There are both huge commitments and genuine entanglements that should be
deliberately considered prior to remembering this sort of criticism for a
multifaceted appraisal program.

Sub ordinates:
An upward-examination cycle or input overview (once in a while alluded to as a
SAM, for "Subordinates Appraising Managers") is among the most huge but
questionable highlights of a "round trip" execution assessment program. The
two administrators being evaluated and their own superiors agree that
subordinates have a unique,oftenessential,perspective.The subordinate
appraisals give especially significant information on execution components
concerning administrative and administrative practices. Notwithstanding, there
is typically incredible hesitance, even dread, concerning usage of this rating
measurement. On equilibrium, the commitments can exceed the worries if the
safeguards noted beneath are addressed

Clients:
Inside clients are characterized as clients of items or administrations provided
by another representative or gathering inside the office or association. Outer
clients are outside the association and incorporate, yet are not restricted to, the
overall population.
Bosses:
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Assessments by bosses are the most conventional wellspring of worker input.

This type of evaluation includes both the ratings of individuals by supervisors
on elements in an employee's presentation plan and the assessment of projects
and groups by senior managers.
Performance Appraisal form:

Competencies (30%)
Core Competencies Excellen Good Averag Poor
t e
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
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Comments:

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

Signature&date……………… Signature &date………………
(Appraiser) (Appraisee)
Rank……………… Rank………………
Name……………… Name………………
Serviceno……………… Serviceno………………
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 utilizing this structure the appraisers can viably survey the representatives
and can settle on the best choice, by utilizing it they can come to think about the
presentation of the workers with respect to their KPI, capabilities just as about
the SMART targets they accomplished identified with them.
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Give rewards:
Whenever representatives are evaluated in their presentation then they are given
a few awards as indicated by their capacities, past exercises, and their
exhibition.
Robotizing Best Practices with Technology:
An ever increasing number of associations are depending on inventive
innovation answers for execute execution the board best practices and robotize
difficult manual cycles. A transition to online, on-request innovation is making
these frameworks moderate, paying little heed to the size of an association, with
fast usage plans, no IT uphold prerequisites
A mechanized framework can guarantee that the presentation the board cycle is
worked around top notch best practices, simple to finish, productive and steady
across an association. Fundamental perceivability into authoritative and
departmental objectives is improved, as is admittance to vital information to
help responsibility, predictable guidelines, (by survey director normal
appraisals) and recognizable proof of top entertainers. Also, innovation
empowers organizations, managers and employees to address many of the
issues discussed.When selecting an automated performance management
solution make sure today our research .Some solutions offer nothing in excess
of an electronic examination structure while others offer total best-of-breed
objective administration arrangements. The best solutions offer:

• Instant structure steering and paperless cycles

• Goal following and falling usefulness for complete perceivability
andalignment
• Automated objective administration and execution reviewreminders
• Legal check wizards to guarantee fitting/lawful use oflanguage
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• Writing aides to assist directors with planning appraisalforms

• Support instruments giving training backing to administrators when they
need it most

Balanced Score Card:

Thebalancedscorestrategicplanningandmanagementsystemthatisusedbroadlyin
business and industry, associations worldwide to adjust business exercises to the
vision and procedure of the association, improve inward and outside
interchanges, and screen association execution against strategic goals.
It conveys a blueprint that gives execution estimations, yet assists organizers
with recognizing what ought to be done and estimated.

Points of view:
Learning and Growth Perspective
Self-evaluation for ceaseless improvement
Self-evaluation for key and strategic arranging
Business Process Perspective
Zero % blemished
Continuous Production
Work Specialization
Do the right things right every time
Maximum Utilization of Resources
Client Perspective
Lifetime Loyalty
Quality Products
Availability
Monetary Perspective
Most extreme Profit Efficient utilization of Capital
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Community Perspective
Environment Friendly
Hygienic Goods
Showcasing Perspective:
Customer fascination
Customer maintenance
Customer steadfastness
Customers Satisfaction

Need of the Balance Scorecard:

Directors can survey the equilibrium score card for the arrangement of the
exercises of the various individuals identified with the alternate points of view
implies whether the exercises of one viewpoint impact the exercises of other?
Or then again the exercises of one point of view is in the best act of the other
viewpoint so by this thing the exhibition of the association can be upgrade.

Conclusion
In conclusion we provide our point of view regarding the elements of high
performance system that how could components of superior framework can be
improved and how the performance the board arrangement of an association can
be improved also we build up an exhibition the executives framework where we
make our presentation the executives framework wherein we define Vision
statementofthecompanythansetthegoals,implementthemandthenreviewor screen
them on the quarter yearly premise, at that point make 360 degree appraisal of
the workers by this the presentation of the representatives just as execution of
the association can be accomplished.