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Comparison of Performance Appraisal of Different Companies Under FMCG Sector in India
Comparison of Performance Appraisal of Different Companies Under FMCG Sector in India
HRM
CIA
TYPES
Management by objective (MBO)
Behaviorally anchored rating scales (BARS)
360 Degree
Assessment center
General appraisal
FMCG industry follows the modern techniques for performance appraisal and certain similarities
has been noticed in the studies between the competitors and differences also to take the
competitive advantages.
P&G's core to the performance appraisal is work the 'Work and Development plan' (W&DP) system that
P&G has globally across all organizations, functions etc. The W&DP had four components
Also it has pre system to evaluate employee performance so as to reach an objective human
resource decision which is backed by documentation proof. It is majorly based on Management
by Objective (MBO) principle which concentrates on end result.
Process-
In terms of the 1st step steps in performance appraisal i.e. 'Defining the job' - with W&DP the
employee and his/her one level up manager .
2 level up manager agrees on the work and development plan for the year ahead, which defines
clearly the actions together with deadlines i.e. 'defining the job'.
P&G use ratings to assess contributions relative to others at job level, in order to manage
compensation and career progression according to the company's principles, as follows:
- Reward competitively
For these ratings P&G uses forced distribution method, in this method various percentages are
allocated to several performance categories. The portions in each category need not be
symmetrical. In Procter and Gamble the top 5%, middle 90% and bottom 5% method is used to
rate the employees in various categories.
Peers, peers are often the most relevant evaluators of their colleagues performance.
Peers have a unique perspective on a co-workers job performance and employees are
generally very receptive to the concept of rating each other. Peer ratings can be used
when the employees expertise is known or the performance and results can be observed.
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.
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 employees performance plan and the evaluation of programs and
teams by senior managers.
90%- 100% Outstanding 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. 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 involvement 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.