What is quality performance reporting?
Quality performance reporting concentrates on the various paths to be followed to achieve high employee satisfaction, performance efficiency and increased stakeholder value.
Performance measurement process evaluates the developments made towards the attainment of the established goals whereas performance reporting makes necessary additions of some key aspects such as communication and efficient movements to these developments to achieve the predefined goals (Bourne, Franco and Wilkes (2003)).
“A need to connect the quality objective with performance targets”
Connecting the performance appraisal techniques with the predetermined goals of the company holds the key to efficient quality performance reporting.
The prime objective of Unilever is ‘Meeting everyday needs of people everywhere’. And with stiff competition from other global rivals it becomes essential that the company adopt effective performance evaluation tools and techniques.
The scorecard approach
The scorecard approach is one of the performance reporting tool that the company has been using for years. It is a very important technique which helps the managerial personnel’s in converting the entities mission and strategies into well-structured performance measures. “The balance scorecard: Measures that drive performance” (Kaplan and Norton1992).The scorecard was first applied by Unilever River Plate Argentina and Unilever Australia in the year 1995.The Unilever is aware of the fact that the balanced scorecard offers a common platform for the entire organization for performance evaluation and demands a systematic approach for carrying on the companies day to day and long term activities efficiently.
The Unilever scorecard approach can be broken down into mainly three stages.
Stage one starts with the construction of balance scorecard for the succeeding year on the basis of the current year’s information .The stage involves defining of the performance targets which must be both attainable and measurable. Specific areas need to be identified to collect the required information.
The second stage emphasize on around the year monitoring process. Information is gathered on the present performances and they are compared against planned targets at specific time intervals. Such comparison pinpoints areas which has the scope for further improvement. And incase if the actual performance exceeds the budgeted performance it highlights the need for revision of the standards.
The third and final stage is performed at the end of the year. The overall performance is compared against the standards and assessed and these information’s are then used to prepare the scorecard for the next year. Capability assessment is conducted on each of the specific areas identified in the earlier stage .The assessment is done to determine if these areas were capable of meeting the prescribed performance standards. And if performance standards are not satisfied then necessary actions are suggested to improve the situation.
On completion of the three stages it was found that certain improvements need to be made to enhance the quality of performance. The suggestion for improvement was accepted by the members of the company. An introduction booklet (accompanied by a summary card) was generated for the senior managerial personnel. A more comprehensive performance guide was offered to the intranet users and adequate training was also provided to them.
Application of the results
The most important step in the integration stage was to connect the corporate center requirements with results obtained from the balanced scorecard. A qualified facilitator was called upon to work alongside the ‘centers leadership group ‘for specific time period of three months.
What should be done to ensure continuous commitment of individuals
One of the most effective methods followed to capture employee commitment is establish a fair rewarding system. A fair pay scale, chances of advancement, providing challenging tasks or few words of appreciation can really boost up the confidence of the employees. The remuneration system followed by the company must be such that it must be completely based on the competence, skill and talent of the individual.
One such tech