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PMS at Hindustan Unilever LTD: Shubhangi Kesarwani Smrity Mishra Sreyashi Mukherjee

The document discusses the performance management system (PMS) at Hindustan Unilever Limited (HUL), describing how HUL uses methods like 360 degree feedback and management by objectives to evaluate employee performance annually, set goals, provide feedback, and identify training needs to help employees improve and further their careers. It also outlines some potential problems with PMS like rating biases, halo effects, and personal prejudice that need to be addressed.

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Rishi Mitra
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67 views13 pages

PMS at Hindustan Unilever LTD: Shubhangi Kesarwani Smrity Mishra Sreyashi Mukherjee

The document discusses the performance management system (PMS) at Hindustan Unilever Limited (HUL), describing how HUL uses methods like 360 degree feedback and management by objectives to evaluate employee performance annually, set goals, provide feedback, and identify training needs to help employees improve and further their careers. It also outlines some potential problems with PMS like rating biases, halo effects, and personal prejudice that need to be addressed.

Uploaded by

Rishi Mitra
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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PMS at

Hindustan
Unilever Ltd

Shubhangi Kesarwani
Smrity Mishra
Sreyashi Mukherjee
Sector Information

– The Indian FMCG sector is the fourth


120
Revenues (Billion $)
largest sector in the economy
103.7
– The FMCG sector has grown at an annual 100

average of about 11 percent over the last


80
decade
60
– The sector is expected to grow at a 44.9 47.3 49

34.8 36.8
compounded annual growth rate (CAGR) 40

of 20.6 percent in FY2020


20

– The present market size of FMCG sector is


0
$49 billion 2011 2012 2013 2015 2016 2020

Source: ibef.com Revenues (Billion $)


FMCG

HOUSEHOLD & PERSONAL-


FOOD & BEVERAGE HEALTH CARE
CARE

18% 32% 50%

Health beverages, Oral care, skin care,


OTC products & ethical
staple/cereals, etc deodorants etc
MARKET BREAK-UP BY REVENUE(FY16*)

SKIN CARE, 5%
DIGESTIVE, 7%
Hair Care, 23%
HOME CARE, 6%

OTC & ETHICALS , 9%

FOODS, 19%
ORAL CARE, 15%

HEALTH, 16%
Growth Prospective

 India has a population more than 1.150 billions which is


just behind china
 According to the estimates, by 2030 India's population
will be around 1.450 billion
 FMCG Industry which is directly related to the
population is expected to maintain a robust growth rate
– Hindustan Unilever (HUL) is the largest fast moving consumer goods (FMCG)
company
– HUL's brands are spread across 20 distinct consumer categories
– Has employee strength over 15000 & 1200 managers
– There 75 manufacturing locations in India and caters its wide range of products
to 6.3million outlets
– Offers different category and products which caters to the need of every
income segment in the country
Performance Management
System at HUL
– A structured method of formally and objectively evaluating employees’
performance with respect to their objectives.
– Addresses the issue of an employee’s development by providing them with
structured and in-depth analysis of strengths and areas of improvement
– Provides with input for annual increments, training and development.
– Employee Performance management at HUL includes planning work and setting
expectations, developing the capacity to perform, continuously monitoring
performance and evaluating it.
Purpose of PMS

– Administration – Development
– Determine promotion of employees – Provide performance feedback to all
– Determine increment in pay of concerned
employees. – Identify individual skills, core
– Determine transfer & change in job competencies, strength &
assignments. weaknesses

– Determine retention or termination – Assist employees in setting goals

– Decide on layoffs – Identify training needs

– Decide need for training – Improve communication


– Decide salary & related issues
Methods of Performance
Appraisal at HUL
 360 Degree Performance Appraisal:
 provide feedback from superiors, peer groups and subordinates
to provide holistic and objective evaluation of the employees.
 assessment is communicated transparently to all employees
individually
 career paths are shared with them
Continued…

 Management by Objectives (MBO):


 The MBO focuses attention on participative goals that are tangible, verifiable
& measurable
 The superior & subordinates jointly determine goals to be considered during
appraisal period & what level of performance is necessary for subordinates
to satisfactorily achieve specific goals
 During performance appraisal period the superior & subordinates update &
alter goals as necessary due to changes in business environment
 If not achieved identify reasons for deviation
Process of PMS in HUL

Establish Performance Standard &


communicate standard & expectation to
employees

Annual
Measure actual performance with the target Performance
Annual Goal
Setting
Review

Compare actual performance with set


standards & find out deviations

Suggest changes in job analysis & standards if Mid-Year


necessary Review

Follow Up
PROBLEMS of PMS

– Rating biases
– Halo effect
– Error of central tendency
– Personal Prejudice

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