Project Report (colgate Palmolive)

PROJECT REPORT P

ERFORMANCE

MANAGEMENT SYSTEM

KUSHAGRA SAXENA SUMMER INTERN 2005

ACKNOWLEDGEMENT

Kushagra Saxena

PREFACE Kushagra Saxena PMIR 2004-06 XLRI, Jamshedpur

METHODOLOGY Step I – Defining Scope and Expectations Step II – Data Collection Step III – Benchmarking Step IV – Designing the Performance Appraisal System Step V – Linking Performance Appraisal System to other fields Step VI – Primary Presentation to Baddi Team & Incorporation of Inputs Step VIII – Approvals

PERFORMANCE MANAGEMENT SYSTEM

BADDI FACILITY COLGATE PALMOLIVE (INDIA) LTD CONTENTS

INTRODUCTION

10

SCOPE

10

PERFORMANCE APPRAISAL SYSTEM

11

Performance Appraisal Criteria

11

Performance Appraisal Frequency

12

Number of Appraisers

13

Performance Appraisal Tools

13 13 14 14 14 14 15 15 15 15

Performance Appraisal Methodology

16

Performance Appraisal Feedback System

19

Scope for Future Modification

20

PERFORMANCE REWARD SYSTEM

21

Benchmarking

21

Performance Reward

21 21 22

Performance Reward System – Salient Features

23

LINKING PERFORMANCE APPRAISAL T&D

24

EMPLOYEE RECOGNITION SCHEME

25

Team of the Month

25

Thank You Slips

27

Innovator Employee

27

RECOMMENDATIONS ON GRADE SYSTEM

29

Benchmarking

29

Merits & Demerits

30

Recommendations

30

ANNEXURE Annexure 1 – Critical Incident Diary

31

Annexure 2 – Performance Appraisal Form

35

Annexure 3 – Evaluation Manual

39

Annexure 4 – Ranking Meeting Guide

45

Annexure 5 – Skill Inventory

49

INTRODUCTION SCOPE

PERFORMANCE APPRAISAL SYSTEM

“Below Expectations”, “Meets Expectations” or “Exceeds Expectation”

PERFORMANCE APPRAISAL CRITERIA Functional Competency: Quantitative Measures: 3. Adherence to Baddi Guiding Principles: o o o o o

PERFORMANCE APPRAISAL FREQUENCY NUMBER OF APPRAISERS

PERFORMANCE APPRAISAL TOOLS CRITICAL INCIDENT DIARY1

PERFORMANCE APPRAISAL FORM2 EVALUATION MANUAL3 CALCULATION SHEET SKILL INVENTORY4 RANKING MEETING Ranking Meeting Guide IMPROVEMENT STATEMENT COUNSELING SESSION REVIEW SESSION

PERFORMANCE APPRAISAL METHODOLOGY 1. Explaining the Performance Appraisal Mechanism to Employees: objectives, methodology and rationale 2. Critical Incident Recording must Negative as well as Positive real timei.e. 3. Filling Performance Appraisal Form evaluation manual Each rating must be backed by clearly written down critical incidents skill inventory6 improvement statement Gating Concept No employee will get an overall rating greater than or equal to “Meets Expectation” unless the ratings in all three components are at least “Meets Expectation” 4. Counseling Session Form Submission: Ranking Meeting: Ranking Meeting Guide 7.

Review Session – Final Rating & Feedback:

8.

Signatures:

PERFORMANCE APPRAISAL FEEDBACK SYSTEM: 1. Personal Counseling Sessions: 2. Improvement Statement: Review Session: 4. Dissatisfaction with Appraisal:

SCOPE FOR FUTURE MODIFICATION

PERFORMANCE REWARD SYSTEM BENCHMARKING PERFORMANCE REWARD SYSTEM PERFORMANCE BASED WAGE INCREMENT • • o o Low Performers

•

Average Performers

High Performers

• • Rationale • • • PRODUCTIVITY BONUS • • • example

Rationale • • • •

PERFORMANCE REWARD SYSTEM – SALIENT FEATURES • o o • o o

LINKING PERFORMANCE APPRAISAL TO T&D EMPLOYEE RECOGNITION (NON MONITORY) SCHEMES 1. Team of the Month Concept Purpose • • • • Evaluation Total Reward Thank You Slips Concept out of the way Purpose • • • • Evaluation • • Reward

100 Marks

and 3. Innovator Employee Concept Purpose • • • • Evaluation Reward • • •

RECOMMENDATIONS ON GRADE SYSTEM BENCHMARKING

Sl No

Company Name

Location

Grade System

No Of Grades

Basis of Promotion

1

Dabur

Baddi

Yes

3

Performance

2

Unichem Pharma

Baddi

No

-

-

3 4

Joyco/Wrigleys Pepsi

Baddi Sangrur

Yes Yes

5+8 6

5

Nestle

Moga

Yes

5

Performance NA Performance + Skill

Parwanoo Rajpura

Yes Yes

9 4

8

Morepen HLL Indo-Gulf Fertilizers

Performance + Seniority NA

Jagdishpur

Yes

NA

NA

9

Godrej

Mumbai

Yes

NA

NA

6 7

10

ITC

Bangalore

Yes

14

Seniority + Performance

MERITS & DEMERITS •

• o

o

o

o

o •

RECOMMENDATIONS

•

Observations 1. Responsibilty of work lies with upper grades 2. Lower grades at times exploited by upper grades 3. Same work but clear "percieved" growth path 1. Completely flat structure for 9 years 2. Differentiation only in terms of performance linked payscales 3. Workers percieve growth in terms of performance pay and the start performer respect that comes along 1. Aims at providing clear growth path 2. Each higher grade comes with greater responsibility and "higher level" work

1. Three levels within grades with seniority as pre requisite

1. Seniority is pre requisite for promotion irrespective of performance 2. Some promotions only if vacancy exists

• Premature to introduce grade system o o o o • Review: August 2007 o o o

ANNEXURE 1 Critical Incident Diary

Employee Name: ________________________

CRITICAL INCIDENT DIARY Our People •

•

Business • •

Employee Code: ______

Our Values • •

Our Environment •

Communication & Decision Making • •

GUIDELINES must Negative as well as Positive real timei.e.

ANNEXURE 2 Performance Appraisal Form

COLGATE PALMOLIVE INDIA LTD FACILITY

BADDI

PERFORMANCE REVIEW FOR TECHNICIANS & TEAM MEMBERS APPRAISEE’S NAME: _________________________________

EMP. CODE: ___________

DATE : _____________ DD/MM/YYYY

Date Of Joining : _____________

APPRAISAL: ROUTINE REVIEW

APPRAISERS' NAME: (1). _________________________________ Below Expectation – 2 Points 1. FUNCTIONAL COMPETENCY – (Weightage - 50%) Core Skills

APPRAISAL No : 2005 /

(2). ___________________________________

Scoring Key: Meets Expectation – 3 Points – 4 Points

|------------------Tick One---------------------| Below Meets Exceeds Expectatio Expectatio Expectatio n n n

Exceeds Expectation

Comments

F1 F2 F3 F4 F5 Percentage Score: [(F1+F2+F3+F4+F5)/20] x 100 = [(__+__+__+__+__)/20]*100

A=

%

Functional Rating (Tick One) Below 65% : Below Expectation 65% – 85% : Meets Expectation Above 85% : Exceeds Expectation

  

COLGATE PALMOLIVE INDIA LTD FACILITY

2. QUANTITATIVE MEASURES (Weightage – 25%) Measure

BADDI

|------------------Tick One---------------------| Below Meets Exceeds Expectatio Expectatio Expectatio n n n

Comments

Q1 – ATTENDANCE Q2 – PUNCTUALITY Percentage Score: [(Q1+Q2)/8] x 100 = [(__+__)/8]*100

B=

%

3. FOLLOWING OUR GUIDING PRINCIPLES (Weightage – 25%) |------------------Tick One---------------------| Below Meets Exceeds Measure Expectatio Expectatio Expectatio n n n

Quantitative Measures Rating (Tick One) Below 65% : Below Expectation  65% – 85% : Meets Expectation  Above 85% : Exceeds Expectation 

Comments

ADHERANCE TO BADDI GUIDING PRINCIPLES Percentage Score: [Score/4] x 100 = [(___)/4]*100

C=

%

Guiding Principles Rating (Tick One) Below 65% : Below Expectation  65% – 85% : Meets Expectation  Above 85% : Exceeds Expectation 

COLGATE PALMOLIVE INDIA LTD FACILITY

BADDI

4. FINAL RATING

Final Rating [After Applying Gating] (Tick One) Below 65% : Below Expectation  5. IMPROVEMENT STATEMENT 65% – 85% : Meets Expectation  Above 85% : Exceeds Expectation  GATING: If rating in any of the three components of Performance Appraisal is “Below Expectation”, then overall rating will be “Below Expectation” (A x 0.5) +(B x 0.25) + (C x 0.25)

D=

COMMENTS BY APPRAISER 1

%

COMMENTS BY APPRAISER 2

COMMENTS BY Function Head :

6. SIGNATURES

DATE : _____________

APPRAISEES' SIGNATURE : ______________________ APPRAISERS' SIGNATURE : (1). ________________________ Function Head’s SIGNATURE : ___________________

(2). ________________________

ANNEXURE 3 Evaluation Manual

Evaluation Manual

1. Functional Competency • • • • • critical incident diary • Percentage

Score:

[(F1+F2+F3+F4+F5)/20]

x

100

[(__+__+__+__+__)/20]*100

A=

%

• Below 65% 65% – 85% Above 85%

Below Expectation Meets Expectation Exceeds Expectation

Quantitative Measures Attendance: Below Expectation • Leave is excessive (above site av.) • Is poor at providing reasonable notice

Meets Expectation • Leave is not above site average • Early notification of absence or lateness

• •

Above Expectation Rarely takes leave Goes out their way to provide coverage where required

Punctuality: Below Expectation • Punctual start and finish times are an issue

•

Meets Expectation • Is punctual with start and finish times

•

Above Expectation Starts early and finishes late where required to ensure smooth handovers

=

Percentage Score: [(Q1+Q2)/8] x 100 = [(__+__)/8]*100

B=

%

• Below 65% 65% – 85% Above 85%

Below Expectation Meets Expectation Exceeds Expectation

3. Following Our Guiding Principles • • • • o o o o o • • Percentage Score: [(G1)/4] x 100 = [(__)/8]*100

C=

%

• Below 65% 65% – 85% Above 85%

Below Expectation Meets Expectation Exceeds

Expectation

4. Overall Rating • (A x 0.5) +(B x 0.25) + (C x 0.25)

D=

%

• Below 65% 65% – 85% Above 85%

Below Expectation Meets Expectation Exceeds Expectation

• Gating Concept: No employee will get an overall rating greater than or equal to “Meets Expectation” unless the ratings in all three components are at least “Meets Expectation”

5. Improvement Statement 6. Signatures

ANNEXURE 4 Ranking Meeting Guide

RANKING MEETING GUIDE PURPOSE RANKING MEETING PRE-WORK FOR RANKING MEETING PARTICIPANTS OF RANKING MEETING Ranking Meeting RANKING MEETING PROCESS Step I • • No Discussion • o o

Step II • • Step III • • • • Step IV • FINAL RANKING LIST • • •

ANNEXURE 5

Skill Inventory

Skill Inventory

Below Expectation 2

Meets Expectation 3

Above Expectation 4

Change-Overs

Does not fully understand the changeover process; Does not complete work in an accurate and timely manner

Understand sequence and steps of core aspects of Changeover process; Completes changeover timely, in right sequence, with the right tools

Demonstrates complete familiarity with all aspects changeover process, tools & line adjustments; Consistently contributes to reducing changeover times without compromising safety and quality

Cleaning & Sanitization

Does not fully understand the C&S process; Does not understand the C&S SOP and visual clean standards. Does not complete work in an accurate and timely manner, Needs constant supervision.

Understand sequence and steps of core aspects of C&S process; Completes C&S timelyand accurately. Understands and follows C&S SOP and visual clean standards. Needs minimal supervision

Demonstrates complete familiarity with all aspects C&S process; Understands and trains others in C&S SOP and visual clean standards. Needs virtually no supervision.

Documentation

Does not appriciate the need for documentation and data collection; Lacks complete understanding of documentation process; Has had issues with timely and accurate completion of documentation

Completes required data collection & documentation timely and accurately; Reports errors in documentation

Takes initiatives to ensure that self and team documentation is completed timely & accurately ; Adresses & Corrects all issues; Identifies need for additional value adding documentation

Cross Functional Knowledge

Does not understand the manufacturing process and how his work links to operations performance; Has not made effort to become involved outside own work area

Understands the manufacturing operation and how his work links to operations performance

Takes initiative to be involved and build relationships with the operations teams; Leverages understanding of operations to identify improvement oppurtunities

Core Work

According to Function

Preventive Maintainance

Lacks in skills of PM, has had issues with timely completion of PM work, needs continuous inputs/feedback

Understands types and frequency of PM work; Completes PM timely and accurately; Communicates status to team leader

Creates ways for speeding up PM’s; Suggests new PM’s that need to be done; Tracks uncomplete PMs and takes intiative to bring it to closure; Shows ability to work towards predictive maintainance and communicates to team leader

Break Downs

Does not respond quickly to breakdowns; No sense of urgency when doing repairs; Repairs are generally inadequate or sub standard

Responds quickly to breakdowns; Repairs done with a sense of urgency; Repairs done to an adequate standard; Raises major concern & issues in a timely manner

Overcomes recurring problems; Instills a sense of urgency in others; Is considered an expert in their area

Quality

Does not fully understand and appreciate the quality standards, inspections and documentation; Has had issues in meeting all quality expectations

Understands the product quality standards; Completes all quality tests, inspections and documentation; Immediately addresses and/or raise the alarm about quality issues

Proactively identifies and takes steps to rectify quality issues; Suggests and implements ways to improve quality

Safety

Does not fully comply with PPE requirenments; Demonstrates unsafe work practices; Does not implement safety feedback

Follows all PPE requirenments; Demonstrates safe work practices

Identifies unsafe practices and condtions; Provides feedback to otherts on safety requirenments; Identifies improvement opportunities