PMS at

Hindustan
Unilever Ltd

Shubhangi Kesarwani
Smrity Mishra
Sreyashi Mukherjee
 Sector Information

– The Indian FMCG sector is the fourth

120
Revenues (Billion $)
largest sector in the economy
103.7
– The FMCG sector has grown at an annual 100

average of about 11 percent over the last

80
decade
60
– The sector is expected to grow at a 44.9 47.3 49

34.8 36.8
compounded annual growth rate (CAGR) 40

of 20.6 percent in FY2020

20

– The present market size of FMCG sector is

0
$49 billion 2011 2012 2013 2015 2016 2020

Source: ibef.com Revenues (Billion $)

 FMCG

HOUSEHOLD & PERSONAL-

FOOD & BEVERAGE HEALTH CARE
CARE

18% 32% 50%

Health beverages, Oral care, skin care,

OTC products & ethical
staple/cereals, etc deodorants etc
MARKET BREAK-UP BY REVENUE(FY16*)

SKIN CARE, 5%
DIGESTIVE, 7%
Hair Care, 23%
HOME CARE, 6%

OTC & ETHICALS , 9%

FOODS, 19%
ORAL CARE, 15%

HEALTH, 16%
Growth Prospective

 India has a population more than 1.150 billions which is

just behind china
 According to the estimates, by 2030 India's population
will be around 1.450 billion
 FMCG Industry which is directly related to the
population is expected to maintain a robust growth rate
– Hindustan Unilever (HUL) is the largest fast moving consumer goods (FMCG)
company
– HUL's brands are spread across 20 distinct consumer categories
– Has employee strength over 15000 & 1200 managers
– There 75 manufacturing locations in India and caters its wide range of products
to 6.3million outlets
– Offers different category and products which caters to the need of every
income segment in the country
Performance Management
System at HUL
– A structured method of formally and objectively evaluating employees’
performance with respect to their objectives.
– Addresses the issue of an employee’s development by providing them with
structured and in-depth analysis of strengths and areas of improvement
– Provides with input for annual increments, training and development.
– Employee Performance management at HUL includes planning work and setting
expectations, developing the capacity to perform, continuously monitoring
performance and evaluating it.
Purpose of PMS

– Administration – Development
– Determine promotion of employees – Provide performance feedback to all
– Determine increment in pay of concerned
employees. – Identify individual skills, core
– Determine transfer & change in job competencies, strength &
assignments. weaknesses

– Determine retention or termination – Assist employees in setting goals

– Decide on layoffs – Identify training needs

– Decide need for training – Improve communication

– Decide salary & related issues
Methods of Performance
Appraisal at HUL
 360 Degree Performance Appraisal:
 provide feedback from superiors, peer groups and subordinates
to provide holistic and objective evaluation of the employees.
 assessment is communicated transparently to all employees
individually
 career paths are shared with them
Continued…

 Management by Objectives (MBO):

 The MBO focuses attention on participative goals that are tangible, verifiable
& measurable
 The superior & 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
 If not achieved identify reasons for deviation
 Process of PMS in HUL

Establish Performance Standard &

communicate standard & expectation to
employees

Annual
Measure actual performance with the target Performance
Annual Goal
Setting
Review

Compare actual performance with set

standards & find out deviations

Suggest changes in job analysis & standards if Mid-Year

necessary Review

Follow Up
PROBLEMS of PMS

– Rating biases
– Halo effect
– Error of central tendency
– Personal Prejudice