Performance Management System at Novartis
I. The description of the performance management system at Novartis. 1. Overview of the PM system at Novartis
An international employee PM system is a designed, implemented, and evaluated intervention of an MNE for the purpose of managing the performance of its global workforce so that performance at all levels contributes to the attainment of strategic global objectives and results in overall MNE desired performance (GHRM Performance Management & Novartis Part II, PPT, Schuler, 2013). In 1998, Novartis established a performance management system that evaluated employees and matched their compensation to both business results and certain values and behaviors (Jordan Siegel, 2008). Before 2002, most divisions at Novartis used different evaluate metrics to assess performance. While after 2002, they began to use one uniform system to conducting performance assessment around the world. The universal system graded employees on “business results” and “values and behaviors”, resulting in a nine-box matrix for assessing employee performance (Frame work for global talent management, Randall S. Schuler, Susan E. Jackson and Ibraiz Tarique)(see exhibit 1). Each of performance dimensions is evaluated with a three-point scale. For instance, “1” indicates poor performance, “2” indicates satisfactory performance, and “3” indicates superior performance (Jordan Siegel, 2008). And the business results are specific to each business unit, while the value and behaviors are constant across Novartis. These value and behaviors involves the following (Jordan Siegel, 2008):
• Being results driven
• Having a customer/quality focus
• Being innovative and creative
• Demonstrating competence
• Exercising leadership
• Being fast/action oriented
• Demonstrating empowerment and accountability
• Showing commitment and self-discipline
Through aligning performance management system with company’s values, Novartis strives to ensure that decisions taken throughout the whole value
An international employee PM system is a designed, implemented, and evaluated intervention of an MNE for the purpose of managing the performance of its global workforce so that performance at all levels contributes to the attainment of strategic global objectives and results in overall MNE desired performance (GHRM Performance Management & Novartis Part II, PPT, Schuler, 2013). In 1998, Novartis established a performance management system that evaluated employees and matched their compensation to both business results and certain values and behaviors (Jordan Siegel, 2008). Before 2002, most divisions at Novartis used different evaluate metrics to assess performance. While after 2002, they began to use one uniform system to conducting performance assessment around the world. The universal system graded employees on “business results” and “values and behaviors”, resulting in a nine-box matrix for assessing employee performance (Frame work for global talent management, Randall S. Schuler, Susan E. Jackson and Ibraiz Tarique)(see exhibit 1). Each of performance dimensions is evaluated with a three-point scale. For instance, “1” indicates poor performance, “2” indicates satisfactory performance, and “3” indicates superior performance (Jordan Siegel, 2008). And the business results are specific to each business unit, while the value and behaviors are constant across Novartis. These value and behaviors involves the following (Jordan Siegel, 2008):
• Being results driven
• Having a customer/quality focus
• Being innovative and creative
• Demonstrating competence
• Exercising leadership
• Being fast/action oriented
• Demonstrating empowerment and accountability
• Showing commitment and self-discipline
Through aligning performance management system with company’s values, Novartis strives to ensure that decisions taken throughout the whole value