PERFORMANCE MANAGEMENT AT HINDUSTAN UNILEVER LIMITED

HINDUSTAN UNILEVER

                                              

INTRODUCTION

·        HINDUSTAN UNILEVER (HUL Hindustan Unilever Limited (HUL) is a British-Dutch manufacturing company headquartered in Mumbai, India. Its products include foods, beverages, cleaning agents, personal care products, water purifiers and consumer goods.

·        HUL was established in 1933 as Lever Brothers and following merger of constituent groups in 1956 was renamed as Hindustan Lever Limited. The company was renamed in June 2007 as "Hindustan Unilever Limited".

·        As of 2019 Hindustan Unilever portfolio had 35 product brands in 20 categories and employs 18,000 employees with sales of Rs. 34,619 crores in 2017-18.

BRANDS AND PRODUCTS

HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products. Sixteen of HUL's brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2014), carried out by Brand Equity, a supplement of The Economic Times.

·        PERFORMANCE MANAGEMENT SYSTEM AT HUL

       i.             A structured method of formally and objectively evaluating employees’ performance with respect to their objectives.

     ii.            Addresses the issue of an employee’s development by providing them with structured and in-depth analysis of strengths and areas of improvement.

  iii.            Provides with input for annual increments, training and development.

   iv.            Employee Performance management at HUL includes planning work and setting expectations, developing the capacity to perform, continuously monitoring performance and evaluating it.

·        PURPOSE OF PMS

       i.            Administration

     ii.            Determine promotion of employees

  iii.            Determine increment in pay of employees.

   iv.            Determine transfer & change in job assignments.

     v.            Determine retention or termination

   vi.            Decide on layoffs.

vii.            Decide need for training.

viii.            Decide salary & related issues.

   ix.            Development

     x.            Provide performance feedback to all concerned.

   xi.            Identify individual skills, core competencies, strength & weaknesses.

xii.            Assist employees in setting goals.

xiii.            Identify training needs.

xiv.            Improve communication

·        METHODS OF PERFORMANCE APPRAISAL AT HUL :

                               I.            360 Degree Performance Appraisal: Provide feedback from superiors, peer groups and subordinates to provide holistic and objective evaluation of the employees.  assessment is communicated transparently to all employees individually.Career paths are shared with them.

                            II.            Management by Objectives (MBO): The MBO focuses attention on participative goals that are tangible, verifiable & measurable.The superior & subordinates jointly determine goals to be considered during appraisal period & what level of performance is necessary for subordinates to satisfactorily achieve specific goals. During performance appraisal period the superior & subordinates update & alter goals as necessary due to changes in business environment  If not achieved identify reasons for deviation

·        Process of PMS in HUL:  Establish Performance Standard & communicate standard & expectation to employees Measure actual performance with the target Compare actual performance with set standards & find out deviations Suggest changes in job analysis & standards if necessary Follow Up Annual Goal Setting Mid-Year Review Annual Performance Review.