In 2008, Henkel announced Kasper Rorsted as the new CEO. Henkel is a company that is organized into three major business units: Adhesive Technologies, Laundry and Home Care, and Cosmetics/Tolietries. This appointment of Rorsted came at a vital time for Henkel. Even though they were performing well in the adhesives business, they were not doing so great in the laundry and personal care markets. Others had been describing them as “the happy underperformer” company. With the appointment of Rorsted, he brought it upon himself to help stabilize the company and do whatever he could to help Henkel grow. First, he set very ambitious four-year financial goals for sales growth, EBIT margin and EPS. To help achieve these goals, he decided to revitalize
…show more content…
I think that this system does do a good job of motivating employees to become better and pushes them to work harder. Being content within the company and not working hard enough was a serious problem at Henkel when Rorsted was hired. Thus, this new performance evaluation system seems to fit in with the new strategic goals of the company which are based on growing and being competitive. I do think that people need to be evaluated for a longer period of time during the DRT forums though. An example of this is the discussions at the beginning of the case on Mr. Al Diri & Mr. Benzekri. The discussion seem to be too short and not in depth enough and does not have enough structure in my opinion. A way Henkel could improve on this is making each employee create SMART goals. This would give the forum something more to talk about and would give them more measurable and specific goals to evaluate. At the same time, these goals may motivate employees more and give them a better idea of what they need to do to be successful and received a higher rating. Also, if possible I think the “frame of orientation” should be removed. In regards to specific behaviors related to each rating, it would appear that the hardest working are ranked in the top tier (and the least hard working in the lowest tier). In regards to potential, it would seem those who have the highest potential are the …show more content…
Roughly half is based on team performance (company and team), whereas the other half is based on individual performance, with a direct relation to an employee’s rating. Thus, the employee is motivated to help the company and team reach its goals, showing an importance for teamwork. At the same time, employees want to reach their own goals and improve their rating, but only if it helps the company too. Ultimately, the compensation system serves as a tool to help the company grow because people are trying to improve the company as a whole but be competitive while doing this, which fits in great with the new strategy and culture of
I think that this system does do a good job of motivating employees to become better and pushes them to work harder. Being content within the company and not working hard enough was a serious problem at Henkel when Rorsted was hired. Thus, this new performance evaluation system seems to fit in with the new strategic goals of the company which are based on growing and being competitive. I do think that people need to be evaluated for a longer period of time during the DRT forums though. An example of this is the discussions at the beginning of the case on Mr. Al Diri & Mr. Benzekri. The discussion seem to be too short and not in depth enough and does not have enough structure in my opinion. A way Henkel could improve on this is making each employee create SMART goals. This would give the forum something more to talk about and would give them more measurable and specific goals to evaluate. At the same time, these goals may motivate employees more and give them a better idea of what they need to do to be successful and received a higher rating. Also, if possible I think the “frame of orientation” should be removed. In regards to specific behaviors related to each rating, it would appear that the hardest working are ranked in the top tier (and the least hard working in the lowest tier). In regards to potential, it would seem those who have the highest potential are the …show more content…
Roughly half is based on team performance (company and team), whereas the other half is based on individual performance, with a direct relation to an employee’s rating. Thus, the employee is motivated to help the company and team reach its goals, showing an importance for teamwork. At the same time, employees want to reach their own goals and improve their rating, but only if it helps the company too. Ultimately, the compensation system serves as a tool to help the company grow because people are trying to improve the company as a whole but be competitive while doing this, which fits in great with the new strategy and culture of