performance appraisal of coca cola

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Topic: Performance measurement

and appraisal of Coca-Cola

Company


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Performance Measurement

Performance measurement is the process

whereby an organization establishes theparameters 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 inthe work spot, normally including both

the qualitative & quantitative aspect of

job performance.


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HistoryThe 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 ExecutiveOfficer

Vice PresidentSupply Chain

Chief Finance

Officer

Human ResourceDirector

Vice PresidentBSG

Regional VicePresident (North)

Regional VicePresident(Central)

Region Vice President

AGM/AOD -Unit 1

AGM/AOD -Unit 2

AGM/AOD -Unit 3

AGM/AOD -Unit4

Region Finance

Region HumanResource

Region CustomerService

RegionExternal Affairs

Region ColdDrink

Region Legal

Region BSG

RegionDirector/M

anagerMarket

Execution

RegionCapability

Management

Region Channel

Organization Structure of Coca-Cola


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Performance Measurement Stages ofCoca-Cola

Stage 1Annual

PerformanceReview

Stage 2Plan

performancefor the year

Stage 3Reward andRecognition

Stage 4Mid-term

Review

Assess results

Prepare current

year

development

plan

Set KRAs

Finalize

current year

Development

plan

Performancelinke

d pay

Recognize Top

Performers

Review

resultsCompetency

development

plan


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Dimensions of Performance

Key result area#1

Business PlanAchievement

Key result area #2People development

weightage 20%

Key result area#3

Competenciesweightage 60%


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Performance Review Objectives

owner: 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 enhancetheir growth

Performance Improvement Planning

To review status of Bottom Performers already under PIP andtake appropriate actions.

To prepare Performance Improvement Plan for newly-identifiedBottom Performers.

Performance Review Objectives (Contd)

owner: administrative manager


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Step 1: AssociateSelf Assessment

Step 2 : Admin managerAssessment &

Alignment withFunctional Manager

Step 3: PerformanceReview Discussion

Step 4 : Calibrationmeetings

Step 5 : RatingCommunication , Plan

KRA for next year.

Steps in the performance review process


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Performance Appraisal ofCoca-Cola

Coca cola performance appraisal is annually. Theyappraise 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


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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

StrategyTalent

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 highperformers to achieve better results.

Further, since 73% associates are in SP category, the

differentiation is critical to build and support highperformance culture.

For the purpose of Rewards :

SP subcategorized as SP, SP and SP+;

EP subcategorized as EP and EP*.


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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 criticaltasks

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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Inflation rate factor

Market potential (what of individuals worth according tohis/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 informationon 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. Thats why defining criteria of rewarding them have a

significant importance for the mutual benefits of both employees and organization.


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Yearly BasisEmployee salary increment

Grade Jump

Designation changeAnnual 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 BasisEmployee 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 its 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 tosupport and change culture of the organization

optimistically; it would only be possible if the

system is equal for all employees of organization.

Therefore, companysmanagement should utilize

this system to all employees so as to increase

effectiveness and productivity.


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performance appraisal of coca cola

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