Performance Management in Pepsico

             

Global performance management practices

Hindustan Unilever (HUL)

Hindustan Unilever is a british-dutch origin manufacturing company with its company headquarters in Mumbai, India. It was founded in the year 1933 and the current CEO is Mr. Sanjiv Mehta. The range of its products include from food, beverages, cleaning agents, personal care products, consumer goods to water purifiers.

Presently (2019) HUL portfolio holds 35 product brands in 20 categories with sales of Rs.34619 crores in2017-18.

According to Fortune India 500, HUL stands in the 41^st position with revenue of Rs.36088(in crores).

‘Doing well by doing good’ is the conduct of the business and sustainability is its main component. the secret of their success lies in attracting the best talent from the market, providing them with clear defined career paths with job rotations and diversity of experiences and empowering employees at each level. Also by providing individual development plans with focus on building knowledge and skills preparing them for future roles.

At HUL leadership development is about “Leaders Building Leaders” where the leaders take up the responsibility of building and grooming other potential leaders. HUL practices the ‘Connected 4 Growth’ framework which planted the “Cluster Category Business Teams” (CCBTs) which involve representatives from all the functions. It presently has 15 CCBTs, run by young leaders the way they think best. This practice has helped the company to release more energy which made it agiler & responsible, and propelled to be more future facing organization based on Empowerment, Collaboration, and Experimentation.

HUL performance management and reward processes are geared to building a ‘Performance and Execution’ focused work culture. There are a number of tools and processes that drive transparency and rigor in assessing and developing people. For example, employees are plotted on the Leadership Differentiation tool which not only evaluates the ‘What’ of their performance but also the ‘how’ of their performance. Mechanisms like 360* degree approach provide a holistic and object evaluation of the employees. The LDT position is communicated transparently with individual employees and career paths shared with them.

The main objective of the performance management and reward process is to inspire employees to deliver to their best potentials every day by setting audacious goals and stretching themselves to deliver them.