PERFOMANCE MANAGEMENT IN CARREFOUR

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INTRODUCTION

PERFOMANCE MANAGEMENT

A “strategic and integrated approach to deliver sustained success to organizations by improving performance of people who work in them and by focusing on the needs of the customers.

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Carrefour is a French international retail chain.

The second largest retail group in the world in terms of revenue and third largest in profit after Wal-Mart and Tesco.

Headquartered in Levallois-Perret, France, Carrefour is the largest hypermarket chain in the world in terms of size.

Annual revenue of Carrefour is €85.96 billion (2009) and its operating income is €1.705 billion (2009)

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With annual profit of €385 million (2009), this retail giant has a work force of over 495,000 (2009) employees

Carrefour is shortly going to start its business in India soon

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PERFOMANCE MANTAINENCE

To maintain its performance, Carrefour works on two basic principles which are:-

• Customer satisfaction and,• Employee satisfaction

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Customer satisfaction

The basic principle of success in retail industry is customer satisfaction

More is the customer satisfaction, higher is the stores income

Carrefour’s top priority is to fully satisfy their customers irrespective of their class

The major source of customer satisfaction is the amount of their savings while buying goods from a store

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Focusing on this, Carrefour strictly follows policy of “Daily lowest price”

Hence customer gets special discounts everyday depending upon the MOP of items

Other rule which Carrefour follows strictly is “Best quality for customers”

CONTD..

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Carrefour maintains a separate team of experienced Quality managers at every store

These Managers strictly follow Quality norms and reject all such goods which are not up to the level

Carrefour even has a policy of penalizing suppliers in terms of money if they fail to deliver goods of pre defined quality

CONTD..

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Consequently Carrefour has gained the trust of it’s customers in terms of quality of goods

Thus Carrefour achieves customer’s satisfaction by applying –

“BEST QUALITY AT BEST PRICE”

CONTD..

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Employee Satisfaction

Second principle for performance management which Carrefour follows is Employee satisfaction

Carrefour has work force of nearly 5 lakh people from different cultures and countries across the globe

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It understands that without employee satisfaction, customer satisfaction is impossible, consequently No Performance hence No growth

Hence Employee satisfaction is a part of basic framework on which Carrefour stands

CONTD..

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CONTD..

Carrefour has applied a no. of policies in order to achieve Employee satisfaction

It is a mandatory practice in Carrefour to provide best working environment to it’s employees

In India, Carrefour’s Head office is situated in Cyber park, Gurgaon which is one of the best industrial area in whole NCR

Carrefour has not yet started it’s business in India but it is still spending millions of Rs just to provide best to it’s employees

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A cafeteria is maintained within the office for recreation of employees offering free snacks

Carrefour provides transportation facility to its employees so that optimum usage of working hours is achieved

Also a concierge desk is maintained for employees Employees can plan their travel, make payment of

their mobile bills or credit card bills, send couriers and many more through this concierge desk and that too absolutely without any service charges

CONTD..

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In crux, employee need not worry for any such petty works on daily basis

There is even a cheque drop box within company office so that employee need not go anywhere for cheque deposits or payments which inturn saves their time and energy

Hence Carrefour focuses on removing such small concerns from employees mind so that they can deliver optimum results

CONTD..

They provide the best environment so that employee feel encouraged & motivted

It does n't hav any big strategy to maintain its performance,instead it focuses on daily needs of employees to reduce the stress

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APPRAISAL AND PROMOTION

Now lets see what Carrefour does for bigger aspects of employee satisfaction i.e Salary, appraisal and promotion

bases of promotion: -seniority -meritCarrefour’s annual package for fresher

is around 3.5 L to 4.0 L which must be one of best in Indian industrial regime

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CONTD..

Also Carrefour gives most of it’s employees, designations with greater responsibilities so that one can realize his/her potential. For eg – in India most of the employees are managers for theirs KRAs

higher you go, heavier you get

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CONTD..

It has a policy of promoting employees not only within their depts but also from one dept to another depending upon their knowledge and performance

Mr. Frank Kenner, who was working as operations lead in Carrefour Indonesia is now HR Director in Carrefour India

Thus this prevents employees for monotonous routine of work and responsibilities and gives them opportunity to diversify there experience and knowledge in various fields

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CONTD..

Carrefour has a policy of assigning small goals to their employees rather than big task so that stress can be reduced

Also to make their work easy, company provides it’s employees various training from outsourced trainers. For eg – training on Microsoft excel and Microsoft access was provided to business users who majorly use these tools in their daily work

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