FINAL PROJECT

PERFORMANCE & COMPENSATION MANAGEMENT

Presented By
ABDUL NASIR ENAM

VISION
Nestls global vision is to be the recognized leading Nutrition, Health and Wellness Company. Nestl Pakistan subscribes fully to this vision of being the number one Nutrition, Health, and Wellness Company in Pakistan.

OUR MISSION
To positively enhance the quality of life of the people of Pakistan by all that we do through our people, our brands and products and our Core Shared Values activities.

CORE VALUES
Transparency and honesty in dealing with people are a sine qua non for efficient communication. This is complemented by open dialogue with the purpose of sharing competencies and boosting creativity. Communication To communicate is not only to inform; it is also to listen and to engage in dialogue. Flexible The willingness to cooperate, to help others and to learn is a r equired basis for advancement and promotion within our company.

PERFORMANCE MANAGEMENT SYSTEM

Definition: Performance Management is a comprehensive process Good performance Management is based on continuous, honest and constructive dialogue between supervisors and employees Goals and objectives should be SMART.

AT NESTLE
Formal assessment by Line Managers and HR once in a year with feedback. Subordinate can question an unfair evaluation. Specific Key Performance Indicators have been enlisted by the HR department. One of the important key performance indicators is achievement following the Nestle management and leadership principles. Remuneration structure and promotion criteria take into account individual performance.

PERFORMANCE OBJECTIVES
The performance Objectives is to ensure that employees list the key performance priorities in a given performance year. These objectives need to be aligned with the business and manager objectives and should be discussed and agreed with the manager. As the level of performance achievement influences the level of reward, visibility on how each employee can influence their reward via their performance. Short Term Bonus is influenced by level of performance . In order to create a complete picture of an employee's performance achievement in a given performance year, managers and employees should also compete, as achievement against these objectives will influence the

PE 4 PHASES
Objective setting (Jan-Feb): Performance objectives are agreed with the manager. Interim Review (Jun - Aug): Review progress against objectives. Calibration Meeting (Dec-Jan): Management meeting to ensure effective and equitable performance evaluation across the organization. Year End Review (Dec-Feb): PE rating - evaluation of achievement against objectives (What) and Nestl Behaviors (How).

THE 4 NESTLE BEHAVIOURS

Practice What You Preach, Result Focus, Proactive Cooperation and Initiative in the execution of your objectives

BEHAVIOURAL CORE COMPETENCY

Transparent performance appraisal systems and the freedom given to them to question their seniors benefit not only the employees but even the organization as a whole

Reward Principles
Performance Driven - The level of your Reward is linked to your performance, hence the highest performers will see the greatest Reward. There is also a direct link between the performance of the business and the Reward we're able to offer Competitive - We benchmark all aspects of Reward to ensure we offer all our employee competitive Reward package Inclusive - Our Reward program is designed to reflect the valuable contribution which every employee makes, not just senior managers Flexible - We've made it our top priority to allow you to tailor the Reward you receive toy our circumstances, whenever possible or practical.

REWARDS & INCENTIVES

Passion

to Win awards- These quarterly awards have been institutionalized to reward those who over-achieve their targets.
Long-service Awards- To recognize employees who have been with the company for more than 30 years. Nestle Idea Award- It was found from the correspondent that the company institutes Nestle Idea Award every quarter to recognize and award employees who come up with relevant and innovative ideas which have the potential of being implemented at Nestle . For all aspects of Reward Nestle apply the fundamental principles outlined below

Achievement
level of performance achievement will have a direct impact on employees Salary Review and Short Term Bonus (STB) pay out (if applicable).

Performance Development Guide

Development areas are found out on the basis of dialogue between line manager and subordinate Allows employees to improve his/her career goals, strengths and development needs. It helps the organization to develop a focused and actionable development plan Quality development of employee during appraisal

NESTLE BEHAVIOURS RATING SCALE

OBJECTIVES EVALUATION(WHAT): Not achieved Achieved Exceeded BEHAVIOURAL EVALUATION (HOW): Does not meet standards Meet standards Exceed standards

CONCLUSION
Nestle is the world leader in FMCG industry. People trust on the products launched by the company even the product is facing some problems. Nestle today move for new strategies to retain their customer and also want to get new customer. Nestle enhance their internal and external policies to satisfy their customers and also their employees. HR plays a major role to maintain Nestle status in the market.