Performance Management System of P&G

Performance Management System of P&G

Introduction to Procter & Gamble

The company, Procter & Gamble Company, is an American multinational consumer goods company that is having billions of customers all across the world. The company is enjoying a leading position globally among its giant competitors. Procter & Gamble has the most trusted and quality brands in its portfolio that provides the strength to the company. The company is operating its business in many European and Asian countries and it is having around two hundred thousand employees all around the world.

Procter & Gamble has achieved such competitive position and strength through its creative and effective human resources. The effective and enhanced performance management of the employees has always remained a major concern for Procter & Gamble. The company implements various performance management processes and it sets various performances criteria so as to retain its competitive position in the industry. The following section aims at discussing in detail the performance management system that is being used by Procter & Gamble. It will also be discussed that how the company carries out its various performance feedback processes.

Performance management system of Procter & Gamble

The performance management system intakes the communication link between the managers and the employees so as to make clear the responsibilities of the job and to improve the performances of the employees. According to Rao, T. (2004), the performance management system is an integrated process that not only enhances the work performances of the employees but it also develops the skills and abilities of every employee that directly and positively impacts the overall performance and profitability of the company.

The Procter & Gamble Company has its diverse workforces that and this has given tough challenge to the company to manage the diverse workforce. The company implements improved performance management systems on the timely basis to set the competitive standards. Currently the company is using best processes that are further giving strength to its brand image and brand loyalty. The performance management tools that are used by Procter & Gamble involve self development evaluation, the skills development planning, and performance target planning, mentoring and performance feedback. To maintain the performance standards of the human resources, the senior authority of the Procter & Gamble's HR department reviews the diversity aspects in every business units annually so that they can improve the upcoming generation of their company leaders. Under the company's performance management system, the supervisors of every business units are also required to analyze the diversity reviews so that they can make the skills and performance development plans for their less efficient employees. The company maintains the collaboration between employees and the employers to empower the employees and to attain its desired performance objectives.

Formal performance feedback process

According to Krausert, A. (2009), the performance feedback process is more effective when it is formalized and standardized. Procter & Gamble believes that the accurate provision of performance feedback provides the opportunity to the human resources to build their specific ...