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Topic: Performance measurement and appraisal of Coca-Cola

Company

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Group Members

Md. Likhon 080102005

Farhan Uddin Ahmed 080102023

Md. Atiqul Islam

080102025

Muhammad Sazzad Hussain Chowdhury

080102027

Shabnam Jahan 070102004

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Muhammad Sazzad Hussain Chowdhury

080102027

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Performance Measurement

Performance measurement is the process whereby an organization establishes the parameters within which programs, investments, and acquisitions are reaching the desired results.

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Appraisal

Performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the qualitative & quantitative aspect of job performance.

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History The Coca-Cola Company is the world's largest beverage company.

It is no.1 brand according to fortune 2009 survey.

The company operates a franchised distribution system dating from 1889.

The Coca-Cola Company is headquartered in Atlanta, Georgia.

Its stock is listed on the NYSE (New York Stock Exchange).

Its current chairman and CEO is Muhtar Kent.

Key Result Area - KRA is the basis of performance management at Coca-Cola Company.

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Chief Executive Officer

Vice President Supply Chain

Chief Finance Officer

Human Resource Director

Vice President BSG

Regional Vice President (North)

Region Vice President

AGM/AOD - Unit 1

AGM/AOD - Unit 2

AGM/AOD - Unit 3

AGM/AOD - Unit4

Region Finance

Region Human Resource

Region Customer Service

Region External Affairs

Region Cold Drink

Region Legal

Region BSG

Region Director/Manager Market ExecutionRegion Capability

Management

Region Channel

Organization Structure of Coca-Cola

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Performance Measurement Stages of Coca-Cola

Stage 1Annual

Performance

Review

Stage 2Plan

performance for the year

Stage 3Reward

and Recognit

ion

Stage 4Mid-term

Review

•Assess results

•Prepare current year development plan

•Set KRAs

•Finalize current year Development plan

•Performance‐linked pay

•Recognize Top Performers

•Review results•Competency development plan

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Farhan Uddin Ahmed 080102023

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Dimensions of Performance

Key result area #1

Business Plan Achievement

Key result area #2

People development

weightage 20%

Key result area #3

Competencies weightage 60%

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Performance Review Objectivesowner: administrative manager

Performance Delivery and Results Review

• To assess progress on ‘What’ - Business Results • To assess progress on ‘How ’ - Self/ People Development and

Competencies • To clarify the actions to be taken next year to maximize performance.

Performance Development Coaching • To review progress on Performance Development Plan for KRA1,

KRA 2 and Competencies• To credit and compliment good progress • To coach Associates so that he / she can maximize performance

following Year

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Recognize Top Performers

• To recognize and provide positive feedback to Top Performers to ensure they are motivated and also challenged / stretched to enhance their growth

Performance Improvement Planning

• To review status of Bottom Performers already under PIP and take appropriate actions.

• To prepare Performance Improvement Plan for newly-identified Bottom Performers.

Performance Review Objectives (Cont’d)owner: administrative manager

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Step 1: Associate Self Assessment

Step 2 : Admin manager Assessment

& Alignment with Functional Manager

Step 3: Performance

Review Discussion

Step 4 : Calibration meetings

Step 5 : Rating Communication , Plan KRA for next

year.

Steps in the performance review process

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Md. Likhon 080102005

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Performance Appraisal of Coca-Cola

Coca cola performance appraisal is annually. They appraise the employee due to their performance about goals of the organization. They set the goals at the start of the year and tell the employees about the goal if the employees achieve this goal they appraise the employees.

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STEPS IN APPRAISING EMPLOYEES PERFORMANCE OF COCA-COLA

Define the Job

Appraise the performance

Provide the feedback

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Define the job:Means making sure that you and your sub ordinate agree on his or her duties and job standard.

Appraise the performance:Means comparing your subordinate's actual performance to the standards that have been set.

Provide the feedback:Means discuss the subordinate performance and progress, and make plans for any development required.

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Talent Strategy

Talent Assessment & Segmentation

Differentiated Reward &

Development Interventions

What is the big picture? Processes that are going to enable them

How are they going to execute?

Closely Aligned to Business Strategy

Measurement Driven

Performance Management System and Appraisal

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•Differentiated ‘Rewards’ motivates and drives high performers to achieve better results.

• Further, since 73% associates are in SP category, the differentiation is critical to build and support high performance culture.

•For the purpose of Rewards : SP sub‐ categorized as SP‐, SP and SP+; EP sub‐categorized as EP and EP*.

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Shabnam Jahan 070102004

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Role Expansion

Assignments to work on Regional/National issue taskforce.

Sponsorship to conferences, and visits to other countries (on rare occasions).

Advanced Learning and Development Opportunities

Appreciation Letter / Certificates

Recognition for accomplishments /OE Certification etc. etc through Bottling HUB / Forum/ Buzz

Differentiated Compensation

Recognizing & Managing Top Performers

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Build on their Strengths. Help them leverage what they are best at.

Identify critical tasks for which performance needs to be enhanced

Create a Development Action Plan to enhance performance on critical tasks

Assign Projects to utilize their skills & build confidence

Challenge with appropriate stretch objectives to enable peak performance

Facilitate problem-solving so barriers to performance are removed

Encourage progress and recognize contribution

Ensure that they are fairly compensated.

Accelerating Performance of Solid Performers

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Prepare robust 30-90 day Performance Improvement Plan (PIP) – include specific, measurable actions with clear timelines

Guiding Principles

– Longer for Senior people with newly identified performance issues.

– Shorter for more junior people, or people with a history or pattern of performance issues.

Review & Take appropriate actions

– If PIP results completely on-track, then align back to KRAs for the role.

– If results not on track, but demonstrates maturity and drive to improve performance, revise PIP with shorter timelines (e.g. 30-60days)

– If results not on track, and does not demonstrate enough drive to improve performance, exit. – Failure, exit Guidelines

Managing Bottom Performers

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Md. Atiqul Islam

080102025

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•Inflation rate factor

•Market potential (what of individuals worth according to his/her expertise, job experience etc.)

•Matching with his/her presence career path

•Personal development of an individual

•Sales rewards

Main parameters used as a base of reward system

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Supporting practices

•Safety•Re-creational activities•Training and development•Individual goal setting

Above parameters are used by Coca Cola to make their reward system practices well in the market, object is to make their employees feel comfort, satisfied, motivated towards achievement of organizational tasks, competent to perform to the extent to attain organizational mission and vision terminologies and compete with outside rivals successfully. Because the management believes that if employees are loyal to the organization then they perform better to the way to overcome any competitive goal with accordance to desired results with remarkable customer satisfaction.

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Criteria of rewarding employees

They are using different techniques to define their reward criteria to work according to define standards of organization. System is developed by doing great market search so as to compete rivals to the way to satisfy their internal employees more than that to get more profitability and customer loyalty.

•Grade jump•Designation change•Special assignments (inter departmental transfer)•Financial aspects•Grade jump and designation change•Training and development •Personal development of an individual•Career grooming

They make close collaborative or communication system with employees so as to fetch information on the part of their problems to satisfy them all to increases their efficiency and effectiveness. Because need and wants of employees are changing day by day to satisfy meaningful needs and wants are very important in the behalf of organization so as to use best potential of both physical and mental competencies is very important. That’s why defining criteria of rewarding them have a significant importance for the mutual benefits of both employees and organization.

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Yearly Basis•Employee salary increment•Grade Jump•Designation change•Annual incentive Plan (AIP) (for business performance, but fixed)•Personal Progress report (PPR) (Annual Appraisal)

Monthly Basis• Making the move (MTM, sales target achieve)•Monthly turn hall (extraordinary performance)

Quarterly Basis•Employee of the Quarter (EOQ, non sales)• Sales Dangle context

Types of Rewards of Coca Cola

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Implications from Performance Measurement System:Coca Cola believes and follows the GROW and the WHALE DONE approach. The grow model helps the employee to understand where he wants to be and also what all he/she has to accomplish/develop to reach from the current level. The PMS is a continuous process as the review is not done annually or quarterly, but it’s a continuous process of performance measurement, management and improvement with daily and monthly reviews by the manager.

Recommendation

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Recommendation

Appraisal system is an effective technique to support and change culture of the organization optimistically; it would only be possible if the system is equal for all employees of organization. Therefore, company’s management should utilize this system to all employees so as to increase effectiveness and productivity.

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