2. Sector Information
– The Indian FMCG sector is the fourth
largest sector in the economy
– The FMCG sector has grown at an annual
average of about 11 percent over the last
decade
– The sector is expected to grow at a
compounded annual growth rate (CAGR)
of 20.6 percent in FY2020
– The present market size of FMCG sector is
$49 billion
34.8 36.8
44.9 47.3 49
103.7
0
20
40
60
80
100
120
2011 2012 2013 2015 2016 2020
Revenues (Billion $)
Revenues (Billion $)Source: ibef.com
3. FMCG
FOOD & BEVERAGE
18%
HEALTH CARE
HOUSEHOLD & PERSONAL-
CARE
32% 50%
OTC products & ethical Oral care, skin care,
deodorants etc
Health beverages,
staple/cereals, etc
4. MARKET BREAK-UP BY REVENUE(FY16*)
Hair Care, 23%
FOODS, 19%
HEALTH, 16%
ORAL CARE, 15%
OTC & ETHICALS , 9%
HOME CARE, 6%
DIGESTIVE, 7%
SKIN CARE, 5%
5. Growth Prospective
India has a population more than 1.150 billions which is
just behind china
According to the estimates, by 2030 India's population
will be around 1.450 billion
FMCG Industry which is directly related to the
population is expected to maintain a robust growth rate
6. – Hindustan Unilever (HUL) is the largest fast moving consumer goods (FMCG)
company
– HUL's brands are spread across 20 distinct consumer categories
– Has employee strength over 15000 & 1200 managers
– There 75 manufacturing locations in India and caters its wide range of products
to 6.3million outlets
– Offers different category and products which caters to the need of every
income segment in the country
7. Performance Management
System at HUL
– A structured method of formally and objectively evaluating employees’
performance with respect to their objectives.
– Addresses the issue of an employee’s development by providing them with
structured and in-depth analysis of strengths and areas of improvement
– Provides with input for annual increments, training and development.
– Employee Performance management at HUL includes planning work and setting
expectations, developing the capacity to perform, continuously monitoring
performance and evaluating it.
8. Purpose of PMS
– Administration
– Determine promotion of employees
– Determine increment in pay of
employees.
– Determine transfer & change in job
assignments.
– Determine retention or termination
– Decide on layoffs
– Decide need for training
– Decide salary & related issues
– Development
– Provide performance feedback to all
concerned
– Identify individual skills, core
competencies, strength &
weaknesses
– Assist employees in setting goals
– Identify training needs
– Improve communication
9. Methods of Performance
Appraisal at HUL
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
10. Continued…
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
11. 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
12. PROBLEMS of PMS
– Rating biases
– Halo effect
– Error of central tendency
– Personal Prejudice
