Performance management means the process whereby the contribution of each employee in an organisation is defined, observed and assessed. This assessment is made on the basis of a series of predefined indicators that are critical to the success of the Company and the employee himself.
PM is a unique, vital opportunity for personal development and guidance; during the process, particular value is given to feedback, with an open dialogue between the employee and management.
In short, we could say that Performance Management starts from the past to improve the future. PM engages all Pirelli office staff worldwide (executives, managers and white collar employees). The opening of the process takes place between January and March, while the closing takes place one year later, when the process starts over again for the following year. So, the previous year was closed in 2013, and showed that the redemption rate (namely the percentage of all opened assessments that were closed) was very high: 92.1% (out of a total of about 6,000 people assessed), among whom 92.5% of women successfully completed their Performance Management process, and thus topping the overall average by 0.4 percentage points.
Alongside this significant quantitative result, there is another consideration linked to the quality of the assessments: the introduction of Calibration Meetings.
These are meetings organised by the managers of individual functions, Business Units and countries, those they report to directly and the HR managers in question. During these meetings the assessments of the people belonging to that specific unit are discussed and evaluated together, with the aim of guaranteeing a shared, balanced distribution of assessments, and making the process more homogeneous and consistent.
In the 2013 a new PM software programme was implemented and made available over :Pnet, the Pirelli intranet. It is designed to be more flexible, more in line with the company organisation, more intuitive and usable, and perfectly integrated with the other Human Resources Management systems currently in use. The new Performance Management platform, chosen from the leading software packages on the market, was launched on occasion of the 2013 Opening. The new system boasts a range of innovative features: the option of selecting objectives from a catalogue of corporate business indicators; cascading the objectives top-down; assigning technical competences that can be selected from a library organised into professional families. These new characteristics sit alongside those present in the previous programme and included in the new programme with the aim of assessing the quality and efficacy of the work carried out and constructing a structured Development Plan which enables the Company to identify actions to support performance improvement and fulfilment of objectives assigned.
All the PM forms of the participants in the process worldwide contain the Core Values. These are model forms of conduct applicable to all functions and regions that are aimed at realising the premium strategy of the Company. There are three Core Values, and they are broken down into as many areas that are considered crucial to the Company: the Business area, which covers aspects that relate particularly to the product and market; the People area, which highlights the attention devoted by Pirelli to its own people; and finally the Change area, which highlights the importance that change and innovation have for the Company.
Beginning in 2011, a skills mapping process was undertaken on the Performance Management platform to provide:
- the Company with a complete, punctual snapshot of the distribution of skills and include specific training campaigns in the plan;
- the supervisor an opportunity to discuss his/ her subordinates’ strengths and areas needing improvement. The professional families involved in the process were Industrial, Quality and HSE, in eight countries (China, Egypt, Italy, Romania, Turkey, United Kingdom, United States, and Germany).
In the 2012 and 2013 Performance Management processes, drawing on the results of 2011, the technical skills deemed crucial to covering the various roles in all the professional families were mapped and compiled in a catalogue of selectable skills in the Performance Management software programme. This enables the Company to identify the areas where specific skills are present, with a view to the mobility and transferability of resources.
These technical skills can be selected by supervisors using the PM management software, and they are naturally complemented by the revised training catalogue which, in the section dedicated to the Professional Academies (i.e. the professional academies for each professional family), contains training courses conceived and provided (mainly but not exclusively) by trainers within the specific professional family. This provides individuals not only with the skills target to be achieved but also the most appropriate tool to be able to do so.