Performance management in Coco-cola

India Pvt .ltd

• Under the Guidance of

• UMA MA’AM
• Prepared by:
• Devyani Subramanian: - 197370592007
• Farha naaz Malek - 197070592009
Introduction
• The Coca-Cola Company is the world's largest beverage company.

• It is no.1 brand according to fortune 2009 survey.

• The company operates a franchised distribution system dating from 1889.

• The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock i

s listed on the NYSE (New York Stock Exchange).
• Its current chairman and CEO is Muhtar Kent.

• Key Result Area - KRA is the basis of performance management at Co

ca-Cola Company.
Organisational Structure
Values of Coca Cola
Brands
• AdeS soy-based beverages
• Aquarius
• Ayataka green tea
• Chivita
• Ciel water
• Costa Coffee
• Dasani waters
• Del Valle juices and nectars
• Fairlife
• Fanta
• Fresca
• Gold Peak teas and coffees
• Honest Tea
• ILOHAS
• innocent smoothies and juices
• Minute Maid juices
• Powerade sports drinks
• Simply juices
• Schweppes
• smartwater
Performance Measurement Stages of
Coca-Cola

Stage 1 Stage 2 Stage 3 Stage 4

Plan Reward and Mid-term
performa Review
Annual nce
Performa Recognition
for the
nce year
•Assess results •
Review Set KRAs •Performance‐linke •Review
•Prepare current d pay results
•Finalize •Competency
year current year
development •Recognize
Development
plan plan Top development
Performers plan
Dimensions of Performance

Business Plan Achievement

Key result area #1

People development weightag

Key result area #2 e 20%

Competencies
Key result area #3
weightage 60%
Performance Review Objectives
owner: administrative manager

Performance Delivery and Results Review

• To assess progress on ‘What’ - Business Results
• To assess progress on ‘How ’ - Self/ People Development and
Competencies
• To clarify the actions to be taken next year to maximize performance.

Performance Development Coaching

• To review progress on Performance Development Plan for KRA1, KRA 2 and Competencies
• To credit and compliment good progress
• To coach Associates so that he / she can maximize performance following Year
 Performance Review Objectives (Cont’d)
owner: administrative manager

Recognize Top Performers

• To recognize and provide positive feedback to Top Performers to
ensure they are motivated and also challenged / stretched to enhance
their growth

Performance Improvement Planning

• To review status of Bottom Performers already under PIP and

take appropriate actions.
• To prepare Performance Improvement Plan for newly-identified
Bottom Performers.
Steps in the performanc
e review process
Step 1: Associate
Self Assessment

Step 5 : Rating Step 2 : Admin manager

Assessment &
Communication , Plan Alignment with
KRA for next year. Functional Manager

Step 4 : Calibration Step 3: Performance

meetings Review Discussion
Performance Appraisal o
f Coca-Cola

Coca cola performance appraisal is annually. They

appraise the employee due to their performance about
goals of the organization. They set the goals at the start
of the year and tell the employees about the goal if the
employees achieve this goal they appraise the
employees.
STEPS IN APPRAISING EMPLOYEES PERFOR
MANCE OF COCA-COLA
Define the job:
Means making sure that youandyour sub ordinate
agree on his or her duties and job standard.

Appraise the performance:

Means comparing your subordinate's performanceactual
to the standards that have been set.

Provide the feedback:

Means discuss the subordinate performance and

progress, and make plans for required. anydevelopment
 Performance Management System and Appraisal

What is the big picture? Processes that are going to How are they going to execute?
enable them

Talent Talent Differentiated

Strategy Assessment & Reward &
Development
Segmentation Interventions

Closely Aligned to Business Strategy

Measurement Driven
•Differentiated ‘Rewards’ motivates and drives
high performers to achieve better results.

•Further, since 73% associates are in SP category, the

differentiation is critical to build and support high
performance culture.

•For the purpose of Rewards :

 SP sub‐ categorized as SP‐, SP and SP+;

 EP sub‐categorized as EP and EP*.
Role Expansion Assignments to work on Regional/National issue taskforce. Sponsorship to
conferences, and visits t other countries (on rare occasions). Advanced Learning and
Development Opportunities Appreciation Letter / Certificates Recognition for
accomplishments /OE Certification etc. etc through Bottling HUB / Forum/ Buzz
Differentiated Compensation
 Recognizing & Managing Top Performers

Role Expansion
Assignments to work on Regional/National issue taskforce.
Sponsorship to conferences, and visits to other countries (on rare
occasions).
Advanced Learning and Development Opportunities
Appreciation Letter / Certificates
Recognition for accomplishments Certificationetc. etc
/OE through Bottling HUB / Forum/
Buzz
Differentiated Compensation
Accelerating Performance of Solid Performers

Build on their Strengths. Help them leverage what they are best at.

Identify critical tasks for which performance needs to be enhanced

Create a Development Action Plan to enhance performance on critical

tasks

Assign Projects to utilize their skills & build confidence

Challenge withappropriate stretch objectives to enable

peak performance

Facilitate problem-solving so barriers to performance are removed

Encourage progress and recognize contribution

Ensure that they are fairly compensated.

 Managing Bottom Performers

Prepare robust 30-90 day Performance Improvement Plan (PIP) – include

specific, measurable actions with clear timelines

Guiding Principles
– Longer for Senior people with newly identified performance issues.

–Shorter for more junior people, or people with a history or pattern of

performance issues.

Review & Take appropriate actions

– If PIP results completely on-track, then align back to KRAs for the role.

– If results not on track, but demonstrates maturity and drive to improve

performance, revise PIP with shorter timelines (e.g. 30-60days)
–If results not on track, and does not demonstrate enough drive to
improve performance, exit. – Failure, exit Guidelines
 Main parameters used as a base of reward syst
em

•Inflation rate factor

•Market potential (what of individuals worth according to

his/her expertise, job experience etc.)

•Matching with his/her presence career path

•Personal development of an individual

•Sales rewards
 Supporting practice
s

•Safety
•Re-creational activities
•Training and development
•Individual goal setting
 Criteria of rewarding employe
es

They are using different techniques to define their reward criteria to work according to define
standards of organization. System is developed by doing great market search so as to compete rivals
to the way to satisfy their internal employees more than that to get more profitability and customer
loyalty.

• Grade jump
• Designation change
• Special assignments (inter departmental transfer)
• Financial aspects
• Grade jump and designation change
• Training and development
• Personal development of an individual
• Career grooming

They make close collaborative or communication system with employees so as to fetch information
on the part of their problems to satisfy them all to increases their efficiency and effectiveness.
Because need and wants of employees are changing day by day to satisfy meaningful needs and
wants are very important in the behalf of organization so as to use best potential of both physical
and mental competencies is very important. That’s why defining criteria of rewarding them have a
significant importance for the mutual benefits of both employees and organization.
Types of Rewards of
Coca Cola
Yearly Basis
• Employee salary increment
• Grade Jump
• Designation change
• Annual incentive Plan (AIP) (for business performance, but fixed)
• Personal Progress report (PPR) (Annual Appraisal)

Monthly Basis
• Making the move (MTM, sales target achieve)
• Monthly turn hall (extraordinary performance)

Quarterly Basis
• Employee of the Quarter (EOQ, non sales)
• Sales Dangle context
 Recommendation

Implications from Performance Measurement

System:
Coca Cola believes and follows the GROW and the WHALE
DONE approach. The grow model helps the employee to
understand where he wants to be and also what all he/she has to
accomplish/develop to reach from the current level. The PMS is a
continuous process as the review is not done annually or quarterly,
but it’s a continuous process of performance
measurement,
management and improvement with daily and monthly reviews by
the manager.
Recommendation

Appraisal system is an effective technique to

support and change culture of the organization
optimistically; it would only be possible if the
system is equal for all employees of organization.
Therefore, company’s management should utilize
this system to all employees so as to increase
effectiveness and productivity.
Thank You