Performance Management : P & G

Performance management can be defined as a systematic process, which helps an organization by improving the effectiveness of its

Procter & Gamble Co is an American global consumer goods company. P&G have various products that range from personal hygiene products to household products.

Procter & Gamble (P&G) is a multinational consumer-product company which operates in nearly 80 countries with more than 300 brands. With its core competency in development and commercialization of products and brands such as Pampers, Tide, and Wella which are part of P&G 's 22 billion-dollar brands, P&G has been highly successful in the market with sales of $68 billion and a net profit of $8 billion in 2006. Its aggressive international expansion and innovation-driven strategy enable the company to achieve economies of scale as well as to differentiate itself from strong competitors like Unilever, and Kimberly-Clark. Due to its large size and complexity, the organizational structure tends to be centralized. The

* Plan: need to clearly identify what performance is required and how it will be measured

Performance management is a holistic procedure collectively brings various types of elements that constitute towards the flourishing exercise of people management including, above all, learning and development.

Using the concepts of performance management and organizational goals, develop an argument regarding the relationship between the two (2) concepts. Be sure to include discussion regarding the impact of one to another and the challenges presented.

We will provide branded products and services of superior quality and value that improve the lives of the world’s consumers, now and for generations to come. As a result, consumers will reward us with leadership sales, profit and value creation, allowing our people, our shareholders, and the communities in which we live and work to prosper.

P&G have manufacturing facilities operating globally in over 80 countries and is organized along seven geographic areas. Their three Global Business Units (GBUs) are P&G Beauty, P&G Family Health and P&G Household Care. All of P&G’s 17 billion dollar brands are included in each of the GBUs and P&G offers over 300 total brands in more than 160 countries. P&G’s Market Development Organization operates in the seven geographic areas, which consisted of North America, Western Europe, Northeast Asia, Latin America, Central, and Eastern Europe/Middle East/Africa, Greater China and ASEANA/Australasia/India. (P&G, el at)

P&G's dominance in many categories of consumer products makes its brand management decisions worthy of study. For example, P&G's corporate strategists must account for the likelihood of one of their products cannibalizing the sales of another.

(Armstrong and Baron 2010) define performance management as 'a process which contributes to the effective management of individuals and teams in order to achieve high levels of organisational performance. As such, it establishes shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved'. They go on to stress that performance management is a key tool within an organisation to ensure that managers, manage the

The definition of the term ‘performance management’ varies in different literatures. As Hutchinson(2013) summed up, combined with Den Harton’s theory(2004), it is a continuous process which links individual and team objectives with organizational goals by measure and improve employee’s skill and performance. According to Armstrong (2012), human resource management aims at making sure the organization has the most talented, skilled and engaged people in order to attain its goals. In this context, performance management is one staple practice helping managers identifying and retaining most competent employees as well as correcting poor performance.

P&G holds a leading global market share in its diverse product portfolio. The company holds around 70% of the global market share in the blades and razors segment and it holds over 30% of the global market share in both baby care and feminine segments. P&G’s leading position is built on its strong brand portfolio. Many brands such as Head & Shoulders, Tide and Clairol, are in the leading position within their market segments. Furthermore, the well-known brands, Gillette, Pampers and Duracell, were ranked among top 100 world’s most valuable brands in 2013.

Procter & Gamble Co. (P&G) is the world’s largest consumer packaged goods company headquartered in downtown Cincinnati, Ohio, United States. It was firstly originated by William Procter and James Gamble on October 31, 1837. P&G has more than 80 brands which dominate the market. The products include cleaning agents, personal care products and pet food. For 178 years, P&G has set foot in more than 180 countries worldwide. P&G recorded $83.1 billion in sales in 2014. The growth in sales always increases in rapid and steady state annually. Fortune, an American business magazine has also surveyed that P&G was listed as the top 20 most admired companies among the business people and number one among the industry (Fortune, 2007).

According to Hyde (2004), performance management is a group of guidelines utilized in refining productivity, handling workplace behavior, training and development of staff, and providing positive feedback on a regular basis. A good employee performance management system entails components that help employers concurrently accomplish goals and sustain employee satisfaction. Performance management allows a business to identify strategic goals, and measure/manage performance against those goals. It contains a set of incorporated management and systematic methods that deal with financial and operational activities.

Once America’s most innovative consumer products company, Procter and Gamble (P&G) started by selling soaps and candles in a small Cincinnati storefront in 1837 (Procter and Gamble, 2008). After a hundred and seventy-one years P&G has grown to over one hundred household brands in over eighty countries (Markels 2006). Their products range from air fresheners to prescription drugs. However, as P&G headed into the twenty-first century they announced that they would not be meeting their 1st quarter earnings forecast [Lafley, 2003]. Revenue margins were dropping and P&G was quickly losing market share to Kimberly Clark and Johnson & Johnson. After missed earnings P&G’s stock price fell from $59.18 to $26.50 between January 2000 and March 2000