Title page

Introduction

• The country's growing middle-class population, paired with increased per

capita income, has been contributing to the expansion of FMCG industry.
• Agile and competitive work environment encourages new HR practices
• Effective performance management systems are essential for employee
motivation
 Marico Bangladesh Overview
• Multinational FMCG company with
diversified product portfolio
• Began its journey in 1999
• powerhouse of brand that touches 4 out of 5
households in Bangladesh
• strong distribution network that reaches
more than 790,000 outlets across the country
• Core purpose is to “make a difference”
H-R processes in Marico

• Recruitment and selection:

Online assessment -> viva conducted by HR
manager -> interview with department head
• Training and development:
on the job training: (RMP) training focuses on
succession planning and is provided to Territory
Manager
Off the job training: lectures and seminars
• Compensation and benefits:
Financial benefits: Pension plans, retirement
plans, and performance bonuses
Others: sick leave, vacation, maternity leave,
paternity leave and childcare
 H-R processes in Marico

• Employee relations:
Open culture that fosters growth mindset
Mutual respect
Amicable environment

• Compliance:
Corporate Governance Framework designed to
increase efficiency, reduce risk, and promote
respectful corporate culture
Code of Conduct ensures that major internal control

• HR data analytics:
Use of SAP for an integrated workforce database
 Characteristics of PM system in Marico
• Three appraisals per year

• cloud based software for

• Rating based appraisals per
human capital management
year
(HCM) that uses software as a
service (SaaS) model
• Self appraisal, supervisor
appraisal and grand supervisor
appraisal
PM system Process in Marico
shundor flowchart hobe

Planning
Performance Appraisal
Feedback
Reward Allocation
Review
 Planning

Set Strategic Business

Define SMART Goals Identify KPIs
Plan

A strategic business plan is allocated the goals that have to be defined are the KPIs are automated in the
and designed in harmony with the SMART goals. Each defined goal is performance management software
functions in individual departments then set to have a specific weightage that the company uses. These
to evaluate performance of indicators are specific to the
employees. function or departments at Marcio.
 Performance Appraisal

• The Goal Library includes KPIs according to every function

in the department.
• Certain weightage is assigned to the goal and the whole
concept follows the 80/20 rule.
• a skill library designated for each employee in the
organization. Employees can assess their skills from the skill
library.
 Performance Appraisal

• 4 point rating scale to assess competencies

• A rating of “0” implies no knowledge in the respective skill/ competency; “1” indicates basic
knowledge; “2” moderate knowledge; “3” advanced knowledge and “4” outstanding
knowledge.
 Performance Appraisal
• Contents of rating form:
Self appraisal
1. Employee information: Name and Employee ID
2. Learning Supervisor appraisal
3. Career aspirations
4. Skills assessment
5. Development plan with check in dates Grand supervisor appraisal
6. Feedback of supervisor and peers
7. Goals and goal scoring
8. Employee comment: How did I achieve it?
 Feedback

• Candid one on one discussion with managers

• progress, identifying gaps in their competencies and abilities and
working towards short term and long term goals.
• Training for development
 Reward Allocation

• Quizzes conducted after training

• reward is allocated to the employees through the combination of assessing both their
performance and potential.
• Rating obtained from appraisals are used to identify promotions and increments in
salary.
 Review

• an assessment takes place during April.

• Mid-year, there is another self-assessment and mid-term review takes place at
September.
• This continuous review is to identify the gaps in employee competencies and the
progress of their goals.
 Employee Perception about PM
Criteria Included/ Justification
Excluded
Congruent  Marico ensures that the strategic goals of the organization are
considered when planning the PM process.
Thorough  Employees perceive the PM system to cover evaluations for an
entire period with proper feedback sessions.
Practical  Employees perceive the performance appraisals to be a lengthy
process that requires quite a lot of time.
Meaningful  According to employees at Marico,
Specific  Employees believe that external factors are not considered when • Moderate to high procedural justice
they are being evaluated.
Reliable  Employees believe that the rating scales can sometimes be
ambiguous and very subjective.
• Low to moderate distributive justice
Acceptable
and Fair
 Employees believe that the system follows procedural justice.
Nevertheless due to the subjective nature of rating, the perceived • Low to moderate interactional justice
fairness on distributive and interactional justice is low.
Inclusive  The PM system at Marico represents concerns of all involved.
Open  Employees can only see ratings of themselves. Peer rating is not
practiced at Marico.
Correctable  Employees believe that since the performance metrics are already
standardized in the system, there is less scope for external factors
to be considered.
Standardized  Managers at Marico provide consistent evaluation. All the KPIs
are automated into the SAP software so the process is
standardized.
Ethical  The performance management system at Marico is ethical from
the employees perspective.
 Challenges
1. Rigourous process
2. Lengthy and time consuming
3. Significant amount of follow-up required
 Covid 19Challenges

• Shift towards work from home

• Restructuring of PM cycle
• Adjustment of targets
• More flexible appraisals
• Simplified targets
• Calibrated metrices
 Recommendations

• Frequent 360-degree performance appraisals:

• Updated KPIs to encourage contextual performance:
• Implementation of Management by Objectives: