A good performance management system is to ensure that the employees are aware of the criticality of the contributions they make to the overall goal of the organization. The system should be such that the employees know what the management expects from them and works towards that while at the same time the duty of the organization is to equip them with the support and skill for them to reach there.
A NEW PERFORMANCE MANAGEMENT SYSTEM FOR P & G
The final results are not the only aspect of performance but of course the effort that goes into it also counts a lot. Many a time, irrespective of the efforts that have gone in the idea or project does not taste success which takes a toll on the employee’s morale and performance appraisal (Samson & Daft, 2003:347-354). In order to take care of this and make the system rewarding for each action of the employee at work, it is suggested that P & G follows the popular balanced scorecard method with certain modifications tuned to the organizational strategy.
LINKING THE PMS TO THE STRATEGY
For instance, Pantene, a leading brand of the hair care segment of P & G, recently introduced the Lively Clean shampoo that was meant to give the consumer light and lively hair every day. The shampoo gave a fresh lift to the hair by cleaning dirt and residue. The possible innovation that would have gone into this would have been the aim that the product development had from the customer to make their hair clean and energetic in the scene of increasing pollution and contamination. This goal would then have been passed on to the other functions based on which each department would have done their bit to create this product.