Performance Management : P & G

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.

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

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

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)

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.

A performance management system should consist of planning, monitoring, reviewing and evaluating (Hrcouncil.ca, 2015). During the planning phase management should identify, clarify and agree upon expectations of the employee. Also, in this phase management needs to determine how results will be measured, agree on the monitoring process and document the plan for performance management. Furthermore, this step is imperative for management to identify and ensure the performance objectives are explicitly stated to the employee. In the development of this phase management would

As a large global company, P&G has strengths that have helped them to acquire such a vast market share. The company’s culture, strong product quality, the ability to understand customers, brand equity, and centralized management is at the

This market is a well established market and P&G would have competition from existing companies and businesses since they include similar resources and advertising techniques. The competing companies and firms produce similar products and as such new ideas and innovation is necessary for the survival of P&G.

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

(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

We will provide branded products and services of superior quality and value that improve the lives of the world's consumers. 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.

The analysis of the corporate strategy triangle will help to understand how P&G achieves a competitive advantage. On the one hand, Procter & Gamble owns tangible resources such as distribution hubs, which help to build the quick response supply chain. On the other hand, it possesses intangible resources such as its brand names, product patents and market shares. Furthermore P&G performs well in consumer understanding by investing hundreds of millions annually in market

The sales of its product dropped and the pressure from the competitor made the company fall into a big financial issue. At the same time, Burk Jager, the CEO resigned from the work. During his tenure, P&G’s shares dropped about 52% and the market capitalization decreased 85 billion USD. Therefore, A. G. Lafley became the CEO of P&G. He saved the company against the financial lost by determining the true demand of consumers. He also restructured the company by laying off the employees and cultivating the leadership. Such business practices are able to benefit the company by cutting down on the unnecessary expenses; and there is a focus on what it is good at. As such, a victorious army ensures that it will win before going into battle. The result was affirmative as P&G’s annual sales revenue grew by 33%. In 2004, P&G sales reached $51.4 billion and gained the profit of $6.4 billion. The Procter & Gamble Company’s current market capitalization has more than $200 billion

Procter & Gamble (P&G) is a Fortune 500 American multinational company, and a world 's leading consumer goods company. P&G’s work is driven by a Purpose of providing branded products and services of superior quality and value to improve the lives of the world’s consumers now and for generations to come. P&G now has 50 Leadership Brands, which are among the world 's best known and which account for more than 90% of P&G sales. P&G entered the Chinese market through a joint venture in 1988. Now, P&G is the most successful foreign marketer in China as measured by market share.

The Procter & Gamble business strategy is to focus on creating new brands and categories so the company can focus on being the best in branding, innovation and scale. This is what sets this company apart from many of its competitors. The Proctor and Gamble are the global leader in all of their core businesses within the company which consists of laundry, baby care, hair care and feminine protection. This report is designed to understand the company’s business model and strategies, and analysis how the P&G has formulated its business-level strategies to pursue its business model.