Académique Documents
Professionnel Documents
Culture Documents
SUBMITTED BY:
PRABHJOT KOUR
ENROLLMENT NO.:
(5395)
PROJECT GUIDE:
MR. NARENDER SINGH
I express my thanks to the company and its staff who gave me opportunity
to this project.
I express my sincere thanks Mr. S.Patnaik (Sr. Executive (HR) & Our
Project Guide).Jai Beverages Pvt. Ltd. Jammu for their sincere and proper
guidance, direction and encouragement given to me for the successful
completion of this project.
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DECLERATION
PRABHJOT KOUR.
(5395)
3
BIBLIOGRAPHY
1. Material Provided by JBPL (PEPSICO)
Jammu
2. Web-sites:
www.google.com
www.jaibeverages.com
www.pepsico.com
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INDEX
5
COMPANY
PROFIL
E
6
CONTENTS
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“COMPANY PROFILE”
PEPSI BOTTELING PLANT IN JAMMU (J&K)
Name of the unit
JAI BEVERAGES PVT. LTD. (PEPSI GROUP)
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employment generated by the unit has already surpassed a figure of 50, and is growing
steadily. The excise deposited to the government exchequer has already crossed an
amount of Rs.361 Lacs, and is again growing. The once semi deserted main road of the
industrial complex, has become very busy and would soon be required to be widened.
In short, the coming of Jai Beverages Pvt. Ltd into the state of Jammu and Kashmir has
surely made a big mark into the industrialization of the state, with many a big industrial
house watching eagerly the outcome of this prestigious unit.
Jai Beverages Pvt. Ltd. is a part of the diversified Jaipuria Group being the major
franchise of the Pepsi in India?
The group has 19 Pepsis bottling plant in India and Nepal. It also has the franchise
for modern bread, pizza hut besides, business interest in information technology,
education, healthcare and textile retailing.
Jai Beverages Pvt. Ltd situated at Bari–Brahmana (SIDCO) distt. Jammu .The
company is producing and marketing the complete range of Pepsi drinks for the state of J
& K.
The new beverages plant having state of art machinery from krones, gesulin &
MAG plast among the international industrial giants and hildon, tula, IDMS etc. among
Indian manufacturers. The fully automatic plant is being run by a team of professionals
who have already made a mark for themselves by creating history in the international
Pepsi system by achieving the gold medal in the first year of operations from over 400
plants world wide.
The company its unused space into green gardens, recycling waste water and has a
modern working effluent treatment plant. The company gives its first preference to
workers safety, quality product and healthy working environment.
As per market share at present Pepsi is enjoying 42% market share .Whereas,
leader since 15 years in Jammu market on 50% market share. At present on the basis of
commitments, quality, skills and energetic team Pepsi feels they will give neck to neck
fight to our levels.
Company’s logo
This logo of Jaipuria group of companies was unveiled by Mr. C.K Jaipuria, in
the presence of Mr. Anuraan Japery, Mr. Rehirans Jaipuria & all the senior managers of
this group on 7th of Dec.2005 at Jai Beverages Pvt. Ltd.Jammu.
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Company’s vision
“Let’s Grow Together”
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1. INTRODUCTION TO THE PRODUCT –SOFT DRINK
Soft drinks can trace their history back to the mineral water found in nature
springs. Bathing in natural springs has ling been consider a healthy thing to do and
mineral water was said to have curative powers. Scientists soon discovered that gas
carbonium or carbon dioxide was behind in natural mineral water.
The first marketed soft drinks (noncarbonated) appeared in the 17 th century. They
water made from water and lemon juice sweetened with honey. In 1676, the comparing de
lemonades of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors
would carry tanks of lemonade on their backs and dispensed cups of the soft drink to the
thirsty Parisians.
In 1767, an Englishman, Dr. Joseph priestly, created the drinkable manmade glass
of carbonated water. Three years later, the Swedish chemist Torbern Bergman invented a
generating apparatus that made carbonated water from chalk by the use of sulfuric acid.
Bergman’s apparatus allowed imitation mineral water to be produced in large amounts.
In 1810, the first us plant was issued for the “means of mass manufacture of
imitation mineral water “to Simons and Rundell of Charleston, South Carolina.
Carbonated beverages did not achieve great popularity in America unit 1832, when John
Mathews mass manufactured his apparatus for sale to others.
The drinking of either natural of artificial mineral water was considered a healthy
practice. American pharmacists. Who were selling most of the mineral water started to
add medicinal and other flavorful herbs to the unflavored beverage example, birch bark
dandelion, sarsaparilla and fruit extracts. The early drugs stores with their soda fountains
become a popular part of America culture. Customer wanted to take drinks with them and
the soft drink bottling industry grew from the customer demand.
Over 1500 US patents were filled either for a cork, cap or lid for the carbonated
drink bottle tops. The bottle tops were under a lot of pressure from the gas. Inventors were
trying to find the best way to prevent the carbon dioxide (bubbles) from escaping. In
1892, Willam painter, a Baltimore machine stop operator, machine stop operator patented
the “crown cork bottle seal”. It was the first very successful method of keeping the
bubbles in the bottle.
In 1899, the first patent was issued for a glass-bowing machine for the automatic
production of glass bottles, earlier glass bottles had all been hand blow. Four years later,
the mew bottle-blowing machine was in operation. The inventor, Michel J Owens, an
employee of Libby Glass Company, first operated it. Within a few years, glass bottle
production increased from 1500 bottle a day to 57000 bottles a day.
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2. ABOUT THE SOFT DRINK
WATER
Soft drink production starts with a pure source of water. Regular soft drink
contains 90% water while diet soft drink contains up to 99% water Drinking water
contains trace amount of various elements that affect its taste. You have probably
noticed that top differ in carious regions of the county. Bottler use sophisticate
filtering and other treatment equipments to remove any residual impurities and to
standardize the water used to make soft drinks. That’s why your favorite soft drink
tastes the name in New York as it dies in India.
CARBON DIOXIDE
A colorless and odorless gas, carbon dioxide is the essential characterizing
ingredient in all “carbonated” beverages. It is given off when we breathe and is
used by the plants to product oxygen.
When dissolved in water, carbon dioxide imparts taste. For that reason
natural sources of carbonated. Of effervescent, mineral water were once highly
prized. These rare mineral water were once also believed to have beneficial
medicinal properties. Efforts to make and sell “artificial effervescent mineral
water” underway Europe and US by 1800.
It was the innovative step of adding flavors to these popular “soda water”
that gave birth to the soft drink beverages we enjoy today. In these days of soft
drink manufacturing, carbon dioxide was made from sodium salts. This is why
carbonated beverages were called, sodas or “soda water”.
Today bottlers buy pure carbon dioxide as a compressed gas in the high-
pressure cylinders. Carbon dioxide gas is absorbed into flavored soft drink in a
carbonator machine just before the container is sealed. While under pressure and
chilled, soft drink may absorb up to four times the beverage volume of carbon
dioxide.
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FLAVORS
One of the most important ingredients in the soft drinks is flavoring. Most
soft drink bottles mix many individual flavors to create distinctive tastes. Natural
flavors in the soft drink come from spices, natural extracts and oils. Fruit –
flavored soft drink such as orange and lemon-lime often contains natural fruit
extracts. Other flavors such as root beer and ginger are contain flavoring made
from herbs and spices.
There are also some artificial or man made flavoring used in soft drinks.
Nature does not produce enough of some flavors to satisfy world demand. Also
some flavors are limited geographically and seasonally.
COLORS
Many people do not realize important color is to taste perception. Color
affects our psychological impression of food. If you don’t believe it. Try eating a
familiar food in the dark. The color used in the food and beverages comes both
from natural and synthetic sources.
CAFFEINE
Caffeine is substance that occurs naturally in more than 60 plants including
coffee beans, tealeaves, kola nuts and cocoa beans. In some cases, small amounts
of caffeine are added to soft drinks as a part of the flavor profile. The amount of
caffeine in soft drinks is only a fraction of that found in an equal amount of coffee
or tea.
Caffeine has a classic bitter taste that enhances other flavors. It has been
part of almost every cola and pepper type beverage since they were first
formulated more than 100 years ago and has been enjoyed in coffee, tea and
chocolate beverages for centuries.
Even though some people feel the effects of caffeine are harmful, scientific
research has refused these claims. The ling history of caffeine’s use confirms that
it is safe when consumed in moderation. For people who wish to restrict their
caffeine intake, many caffeine free soft drinks are available.
ACIDULANTS
Similar to fruit juices and many other food products, most drinks are
slightly acidic. Acidulates add a pleasant tartness to soft drinks for one or two
common food acidulates (phosphoric acid and citric acid) occasionally; other
acidulates such as malice acid is also used.
PRESERVATIVE
Soft drinks do not normally get spoiled because of their acidity and
carbonation. However, storage conditions and storage tome can sometimes impact
taste and flavor. For this reason some vs. contains small amounts of preservatives
that are commonly used in many foods.
POTASSIUM
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Potassium is another essential nutrients found in many natural and man
made food ingredient like sodium, potassium exists naturally in drinking water
and therefore, in soft drinks. Small amount of potassium are also found in some of
the flavoring agents and other ingredients used in soft drinks.
SODIUM
Because the name “soda pop” and “soda water” were associated with early
soft drinks. Many people falsely believe that carbonated beverages contains
significant amount of sodium. That is true.
Sodium, the name form of various salts, is present in many natural and
man made compounds. It is an essential nutrient responsible for regulating and
transferring body fluids. As well as other important body functions. Although an
adequate daily intake of sodium is necessary for good health, excessive
consumption has been to high blood pressure in some people.
SWEETENERS
Non-diet soft drinks
Most regular (non-diet) soft drinks are sweetened with either sucrose or
high fructose corn syrup, (HFCS). A mixture of these sweeteners many also be
used. Sucrose, the familiar sweetener in your sugar bowl, cines firm sugarcane or
sugar beets.
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HOW SOFT DRINKS ARE MADE?
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After the drink has been carbonated, it is transferred under pressure to the filling
machine. Here, the bottles or cans are filled and are then passed by conveyor belt to the
sealing machine.
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Soft drink Produced by JBPL (PEPSICO), Jammu:-
1- AQUAEINA
2- PEPSI
3- MIRINDA ORANGE
4- MIRINDA LEMON
5- 7 UP
6- MOUTAIN DEW
7- SLICE
Current year:-
“Yeh Hai Youngistan Meri Jaan”
This plant has started in year 2000 & since then achieved lot many mile
stones:
1. Quality gold in year-2000-2001 (it was first time in 100 years of Pepsi’s existence that
any plant taken gold in its first years of operation)
2. Quality gold-2001-02. We repeated history in second year also.
3. Ring of honor (sale’s prestigious award):- our sales head Mr. Naginder Razdan
achieved this award in year2004-05 & 2005-06 again.
4. Mr. Sámi butt sales manager for Kashmir valley nominate this year for Asia ring of
honor.
5. Quality gold in year-2000-2001 (it was first time in 100 years of Pepsi’s existence that
any plant taken gold in its first years of Operation)
6. Quality gold-2001-02. We repeated history in second year also.
7. Ring of honor (sale’s prestigious award):- our sales head Mr.Naginder Razdan
achieved this award in year2004-05 & 2005-06 again.
8. Mr. Sami butt sales manager for Kashmir valley nominate this year for Asia ring of
honor.
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HUMAN RESOURCE
FINANCE
SHIPPING
PURCHASE
HEAD OFFICE
STORES
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ORGANATIONAL CHART – JAMMU UNIT
MD
A JAIPURIA
EXEC VP
N RAZDAN
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ORGANATIONAL CHART – HR & ADMN
JAMMU
VP – HR
N SINGH
AM – HR SHIPPING
(VACANT) A K SHUKLA
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Human
Reso
urce
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CONTENTS
1. Introduction
2. HR Rules in JBPL
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“Human Resource”
Human resources is a term with which many organizations describe the
combination of traditionally administrative personnel functions with performance,
Employee Relations and resource planning. The field draws upon concepts developed in
Industrial/Organizational Psychology.
1. Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work.
10. Career development
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HR Rules
in
JBPL, Jammu
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“HR Rules”
FOR PF :-
To deduct PF of only those employees whose salary is up to Basic +D.A.6500.
1. Employee contribution 8.33%
2. Employer contribution 8.33%
3. Administration Charges 4% of employee and employer contribution.
4. EDLI deducted on wages for PF 1%.
5. When new employee joined Form no. 2 will be filled by him.
6. For getting PF no. of employees form no. 5 is to be filled.
7. Monthly form no. 12 will be sent which includes detail of every employee.
8. Form no. 3 A prepared for individual details at the end of year Employee +
Employer Contribution.
9. Form no. 6 includes details of all PF members from March to February of every
year and their contribution.
ESI RULES:-
To deduct ESI of those employees whose total salary is upto 10,000/-
1. Employer contribution 4.75%
2. Employee contribution 1.75%
3. Form no. 1 is to be filled at the time of joining of employee.
4. Form no. 3 is to be filled for getting ESI no. of employees.
5. Half yearly return after 6 months from period April to September and October to
March on form no. 6.
LEAVE RULES:-
EARNED LEAVE (PL):-
1. One leave is provided on 20 days of working.
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2. This type of leave is provided when he has completed 240 days of working.
CASUAL LEAVES:-
1. 7 CL is provided to employees as a casual leave.
SICK LEAVES:-
1. 7 SL is provided to those employees who are not covered under ESI range.
HOLIDAYS:-
1. 11 days of holidays is provided to workers and staff.
LABOUR RATES:-
Unskilled workers Rs. 66 per day
Semi skilled workers Rs. 88 per day
Skilled workers Rs. 147 per day
Supervisors / Clerical Rs. 94 per day
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Human
Resource
Department
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CONTENTS
1. Activities Handled
2. Functions
3. Policy & Procedures
4. Objective
5. Maintaining good interpersonal relations
6. HRD Functions & Tasks in JBPL
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“HUMAN RESOURCES DEPARTMENT”
A) Activities Handled at a glance.
i) Service File (Employee’s file)
ii) Recruitment
iii) Leave
iv) Training
v) Resignation
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ii) Recruitment
Obtaining approval from competent authority – COO
Releasing an advertisement for recruitments.
Receiving applications.
Scanning / Scrutinizing the applications on the basis of criteria mentioned
Short listing the candidates
Sending the interview call letters
Sending invitation letter to panel members
To obtain confirmation calls and mails from respective candidates
Conduction of interview and selection of candidate/s, verification of concerned
certificates
Sending the appointment letter/s (in duplicate)
Receiving the acceptance copy duly signed
iii) Training
To get the details of a training program.
To assess the need for providing the training of that particular program.
Getting it discussed with competent authority and obtaining the approval of CEO
(via note)
Sending suitable candidate/s concerned in that particular stream or area for the
program.
iv) Resignation
One month prior notice is to be given.
Obtaining the approval from competent authority – COO (via note) and getting the
acceptance.
Handling over the all relevant document to the person concerned duly
acknowledged.
Clearance or recovery of dues if any related to company.
Issue of experience certificate and relieving letter.
v) Sanction of Leave
Balance of leave is to be checked before applying.
Applying for the leave in the prescribed format and getting it signed by the
recommending official.
Forwarding the same to the to COO for sanction.
Submitting the same to HRD.
Accordingly updations to be made
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FUNCTIONING:
♦ MANPOWER ANALYSIS: -
It also goes manpower analysis in the organization. It sees that in
which area more manpower is needed and then fills up those posts. It looks
that how efficient the manpower is and accordingly provides training and
development.
♦ PROVIDING TRAINING:-
Once the individuals are selected they are given training for 3
months.
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POLICY & PROCEDURES:
♦ Recruitment is done through advertisements and walk in interviews. Firstly
the personnel department before being sent to another department screens
the candidates.
♦ There is periodic performance appraisal for all the employees and
promotion is linked with that by this they weigh various qualities of the
individual.
♦ Training and development is provided to all the employees so that their
efficiency is increased.
♦ Various facilities are provided for the welfare of employees’ link, Meals,
Tea etc.
OBJECTIVE:
♦ The foremost principal of H.R. is that every individual has its own worth
and dignity and that should be respected. The primary of this department is
to development human resource. It tends to develop their skills so that their
efficiency is increased.
♦ Another objective is to sharpen their scales and proved them such a healthy
environment, which enables him to work and employ, feels that his ideas
count and his job is respected.
♦ Another objective of this department is to motive the employees so that
feels like having challenging work and their potential is increased.
♦ DISCIPLINARY ACTION: -
This department also tries to maintain discipline in the organization.
In case any indiscipline is created then disciplinary actions are taken.
♦ ADMINISTRATION:-
It also administers the organization as a whole. It looks to all the
organization and strives to solve them and looks after the over-all
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administration of the company that what is going on in the plant l and how
each and every thing has to be managed.
HRD’s
Functions &
Tasks
in
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JBPL, Jammu
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Scheduling HR Interview - Telephonic / Personal,
Selection update recruitment sheet
Selection Taking HR Interview - Personal / Telephonic
Selection Offer Negotiation
Selection Offer Letter
Selection Follow-up on Joining - Every 15 days
Inform IT Department to arrange System 15 days
Selection before joining
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Formalities
New Joinee
Formalities Policies of Companies
New Joinee
Formalities Provide Staff ID Pass
New Joinee
Formalities Work place, equipments etc
New Joinee
Formalities Introduction to colleagues
New Joinee
Formalities New Entrants New Job - Introduction to Superior
New Joinee
Formalities Arrange Meeting with Seniors
New Joinee Ask IT Department to create Mastiff Email ID of
Formalities the New Joine
New Joinee Send New Joinee Introduction Mail to all
Formalities Employees (To - employee, CC - New Joinee)
New Joinee Send Welcome Note along with Policies link to
Formalities New Joinee on Mastiff Email ID
New Joinee
Formalities Complete the Induction Checklist
New Joinee Complete the New joinee file and hand-over to
Formalities HR Associate
New Joinee
Formalities Input New joinee Data in Payroll
New Joinee Inform Senior HR about new joinee formalities
Formalities completion and get the file reviewed
New Joinee
Formalities Meeting with New Joinee
New Joinee
Formalities Appointment Letter
New Joinee Send mail to Accounts Department about New
Formalities joinee Salary details
Employee Meeting with New joinee and Superior after one
Confirmation month
Employee Mail for Employee Performance Status after 45
Confirmation days for Confirmation
Employee Mail to Admin for New Joinee Permanent I-Card
Confirmation (after taking confirmation from Senior)
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Co-ordination with Trainers for feedback of
Training Trainees
Communicate the trainees about performance
Training feedback
Training Employment Letter (if any)
Training Complete the trainee employment formalities
Leave
Maintenance Daily Attendance Sheet Updation
Leave
Maintenance Leave Records Maintenance
Leave Monthly Attendance and leave Updates, send
Maintenance mail to employees (if leaves any)
Leave Monthly Attendance and leave Updates (Send to
Maintenance Senior HR by 4th of every month)
Review the monthly leave status and send report
Leave to Accounts for Salary Release by 6th of every
Maintenance month
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any issues inform the respective Manager and
Communication Management)
Exit formalities Talk to Employee about Resignation
Exit formalities Talk to his Senior/Manager about his issue
If relieving is confirmed, finalize his last date,
notice period, mail the employee about his last
Exit formalities date and other formalities
On relieving day, conduct exit interview, get the
Exit formalities exit form filled
Issue necessary documents – Relieving
Letter/Experience Letter/Salary Slips (if
Exit formalities required)
Collect company assets which are with him/her
Exit formalities -library books, I-Card, others etc.
Calculate his leaves, any deductions, any amount
due towards the employee, and inform the
accounts to settle the employees accounts (if
Exit formalities relieving formalities are duly completed)
Inform IT Department to deactivate his Company
Exit formalities Email Account
Document his exit documents in his employment
Exit formalities file
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Pepsi Interview
&
Recruiting
Surveys
39
Pepsi Interview & Recruiting Surveys are detailed accounts of the recruiting/hiring
process and interviews at Pepsi (how many rounds of interviews, who conducted the
interviews).
(7 total PepsiCo, Inc. Interview surveys)
Position
Excerpt
interviewed for
Accountant 3 interviews, with the manager of human resources,
Driver I do not remember any specific interview question
When I first applied at Pepsi they weren't taking
Merchandiser
applications anymore
Hiring process was like any process. They use the internet
Sr. Analyst
to get candidates and supplement
Very open-ended with the opportunity to discuss previous
HR Manager
experience, current attributes and plans
QUAKER: 2 rounds of interviews first with direct report
Account Manager
manager and then his superior.
5 rounds of interviews. I was interviewed by Argentina
Marketing Manager
Gral. Manager, Marketing Director, Marketing...
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Employee
Retenti
on
CONTENTS
1. Introduction
2. Compensation
3. Growth & Carrier
4. Support
5. Importance of Relationship in Employees Retention Program
6. Organizational Environment
7. Importance of Employees Retention
8. Employees Retention Strategies
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9. What Makes Employees Leave?
“Employee Retention”
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Employee Retention involves taking measures to encourage employees to remain
in the organization for the maximum period of time. Corporate is facing a lot of problems
in employee retention these days. Hiring knowledgeable people for the job is essential for
an employer. But retention is even more important than hiring. There is no dearth of
opportunities for a talented person. There are many organizations which are looking for
such employees. If a person is not satisfied by the job he’s doing, he may switch over to
some other more suitable job.
Employees today are different. They are not the ones who don’t have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or the
job, they switch over to the next job. It is the responsibility of the employer to retain their
best employees. If they don’t, they would be left with no good employees. A good
employer should know how to attract and retain its employees. Retention involves five
major things:
<<Relationship>> <<Support>>
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Employee retention would require a lot of efforts, energy, and resources but the results are worth
it.
Compensation
Compensation constitutes the largest part of the retention process. The employees always
have high expectations regarding their compensation packages. Compensation packages
vary from industry to industry. So an attractive compensation package plays a critical role
in retaining the employees.
Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options,
bonuses, vacations, etc. While setting up the packages, the following components should
be kept in mind:
Salary and monthly wage: It is the biggest component of the compensation package. It is
also the most common factor of comparison among employees. It includes
o Basic wage
o Dearness allowance
Salary and wages represent the level of skill and experience an individual has. Time to
time increase in the salaries and wages of employees should be done. And this increase
should be based on the employee’s performance and his contribution to the organization.
Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.
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Long-term incentives: Long term incentives include stock options or stock grants. These
incentives help retain employees in the organization's startup stage.
After retirement: It includes payments that an Employee gets after he retires like EPF
(Employee Provident Fund) etc.
The important factors in employee growth that an employee looks for himself are:
Work profile: The work profile on which the employee is working should be in sync with
his capabilities. The profile should not be too low or too high.
Training and development: Employees should be trained and given chance to improve
and enhance their skills. Many employers fear that if the employees are well rained,
they’ll leave the organization for better jobs. Organization should not limit the resources
on which organization’s success depends. These trainings can be given to improve many
skills like:
• Communications skills
• Technical skills
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• Special project related skills
Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch with
the employees.
Support
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of them is
a success. Management should try to focus on its employees and support them not only in
their difficult times at work but also through the times of personal crisis. Management can
support employees by providing them recognition and appreciation.
Employers can also provide valuable feedback to employees and make them feel valued
to the organization.
The feedback from supervisor helps the employee to feel more responsible, confident and
empowered. Top management can also support its employees in their personal crisis by
providing personal loans during emergencies, childcare services, employee assistance
programs, counseling services.
Employers can also support their employees by creating an environment of trust and
inculcating the organizational values into employees. Thus employers can support their
employees in a number of ways as follows:
By providing feedback
By counseling them
A supportive work culture helps grow employee professionally and boosts employee
satisfaction. To enhance good professional relationships at work, the management should
keep the following points in mind.
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Respect for the individual: Respect for the individual is the must in the organization.
Relationship with the immediate manager: A manger plays the role of a mentor and a
coach. He designs ands plans work for each employee. It is his duty to involve the
employee in the processes of the organization. So an organization should hire managers
who can make and maintain good relations with their subordinates.
Relationship with colleagues: Promote team work, not only among teams but in different
departments as well. This will induce competition as well as improve the relationships
among colleagues.
Recruit whole heartedly: An employee should be recruited if there is a proper place and
duties for him to perform. Otherwise he’ll feel useless and will be dissatisfied. Employees
should know what the organization expects from them and what their expectation from
the organization is. Deliver what is promised.
Promote an employee based culture: The employee should know that the organization
is there to support him at the time of need. Show them that the organization cares and
he’ll show the same for the organization. An employee based culture may include decision
making authority, availability of resources, open door policy, etc.
Induce loyalty: Organizations should be loyal as well as they should promote loyalty in
the employees too. Try to make the current employees stay instead of recruiting new ones.
Organization Environment
It is not about managing retention. It is about managing people. If an organization
manages people well, retention will take care of itself. Organizations should focus on
managing the work environment to make better use of the available human assets.
• Culture
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• Values
• Company reputation
• Risk taking
• Leading technologies
• Trust
o Flexible hours
o Telecommuting
o Dependent care
o Vacations
o Wellness
• Work environment: It includes efficient managers, supportive co-workers,
challenging work, involvement in decision-making, clarity of work and
responsibilities, and recognition.
Lack or absence of such environment pushes employees to look for new opportunities.
The environment should be such that the employee feels connected to the organization in
every respect.
1. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of
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money to a company's expenses. While it is difficult to fully calculate the cost of turnover
(including hiring costs, training costs and productivity loss), industry experts often quote
25% of the average employee salary as a conservative estimate.
2. Empower the employees: Give the employees the authority to get things done.
3. Make employees realize that they are the most valuable asset of the organization.
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7. Recognize and appreciate their achievements.
9. Create an environment where the employees want to work and have fun.
These practices can be categorized in 3 levels: Low, medium and high level.
Job and person mismatch: A candidate may be fit to do a certain type of job which
matches his personality. If he is given a job
which mismatches his personality, then he won’t be able to perform it well and will try to
find out reasons to leave the job.
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• Lack of appreciation: If the work is not appreciated by the supervisor, the
employee feels de-motivated and loses interest in job.
• Lack of trust and support in coworkers, seniors and management: Trust is the
most important factor that is required for an individual to stay in the job. Non-
supportive coworkers, seniors and management can make office environment
unfriendly and difficult to work in.
• Stress from overwork and work life imbalance: Job stress can lead to work life
imbalance which ultimately many times lead to employee leaving the
organization.
• New job offer: An attractive job offer which an employee thinks is good for him
with respect to job responsibility, compensation, growth and learning etc. can lead
an employee to leave the organization.
51
Performanc
e
Appraisal
CONTENTS
1. Introduction
2. Contents of Performance Appraisal Form
3. Process
4. Purpose
5. Objectives
6. Approaches
7. Techniques
52
8. Challenges of Performance Appraisal
9. Performance Appraisal Softwares
10. Key to change Organizational Culture
11. Linking compensation to Performance
12. Relationship between Performance Appraisal and Organizational
Performance
13. Performance Appraisal for Employees at different Levels
14. Criteria
15. Pre-requisites for Effective & Successful Performance Appraisal
“PERFORMANCE APPRAISAL”
People differ in their abilities and their aptitudes. There is always some difference
between the quality and quantity of the same work on the same job being done by two
different people. Therefore, performance management and performance appraisal is
necessary to understand each employee’s abilities, competencies and relative merit and
worth for the organization. Performance appraisal rates the employees in terms of their
performance.
53
Performance appraisals are widely used in the society. The history of performance
appraisal can be dated back to the 20th century and then to the second world war when the
merit rating was used for the first time. An employer evaluating their employees is a very
old concept. Performance appraisals are an indispensable part of performance
measurement.
1. Quality of work
2. Quantity of work
3. Teamwork:
4. Job knowledge
54
5. Initiative
• Consider the extent to which the employees sets own constructive work practice and
recommends and creates own procedures.
• Self-starter, develop and implement new methods, procedures, solutions, concepts,
designs and/or applications of existing designs or procedures.
• Accepts additional challenges and responsibilities and willingly assist others, self-
reliant.
• Completes assignment on time.
6. Interpersonal relations
• Consider the extent to which the employee is cooperative, considerate, and tactful in
dealing with supervisors, subordinates, peers, faculty, students and others.
• The degree to which he or she complies with or over sees the compliance with university
safety rules.
• The following are also to be completed for supervisory personnel and members of the
administrative staff.
8. Communications abilities
55
• Understanding practical and workable solutions.
• Recognizing when a decision is necessary, asking for input, making decisions and
providing information and feedback in a timely manner.
• The extent to which the individual provides guidance and opportunities to his or her staff
for their development and advancement in the university.
12. Dependability
• Consider the extent to which the employee completes assignments on time and carries
out instructions.
• Starts work at appropriate time;
• Respects time allowed for breaks and lunch;
• Follows policies for requesting and reporting time off;
• Helps ensure work duties are covered when absent;
• Employee’s presence can be relied upon for planning purposes.
• Attendance and punctuality meets supervisor’s requirements.
56
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the
standards which will be used to as the base to compare the actual performance of the
employees. This step requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their contribution to the
organizational goals and objectives. The standards set should be clear, easily
understandable and in measurable terms. In case the performance of the employee cannot
be measured, great care should be taken to describe the standards.
57
COMPARING THE ACTUAL WITH THE DESIRED
PERFORMANCE
The actual performance is compared with the desired or the standard performance.
The comparison tells the deviations in the performance of the employees from the
standards set. The result can show the actual performance being more than the desired
performance or, the actual performance being less than the desired performance depicting
a negative deviation in the organizational performance. It includes recalling, evaluating
and analysis of data related to the employees’ performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on
one-to-one basis. The focus of this discussion is on communication and listening. The
results, the problems and the possible solutions are discussed with the aim of problem
solving and reaching consensus. The feedback should be given with a positive attitude as
this can have an effect on the employees’ future performance. The purpose of the meeting
should be to solve the problems faced and motivate the employees to perform better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions, or the
related HR decisions like rewards, promotions, demotions, transfers etc.
To judge the gap between the actual and the desired performance.
58
According to a recent survey, the percentage of organizations (out of the total
organizations surveyed i.e. 50) using performance appraisal for the various purposes are
as shown in the diagram:
• Identifying the gaps in desired and actual performance and its cause – 76
• To judge the gap between the actual and the desired performance.
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• To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
This approach was a past oriented approach which focused only on the past
performance of the employees i.e. during a past specified period of time. This
approach did not consider the developmental aspects of the employee performance
i.e. his training and development needs or career developmental possibilities. The
primary concern of the traditional approach is to judge the performance of the
organization as a whole by the past performances of its employees. Therefore, this
approach is also called as the overall approach. In 1950s the performance appraisal
was recognized as a complete system in itself and the Modern Approach to
performance appraisal was developed.
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The various methods and techniques used for performance appraisal can be
categorized as the following traditional and modern methods:
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this
method compares each employee with all others in the group, one at a time. After all
the comparisons on the basis of the overall comparisons, the employees are given the
final rankings.
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4. CRITICAL INCIDENTS METHODS
In this method of performance appraisal, the evaluator rates the employee on
the basis of critical events and how the employee behaved during those incidents. It
includes both negative and positive points. The drawback of this method is that the
supervisor has to note down the critical incidents and the employee behavior as and
when they occur.
5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer
discusses and interviews the supervisors to evaluate and rate their respective
subordinates. A major drawback of this method is that it is a very time consuming
method. But this method helps to reduce the superiors’ personal bias.
6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behavior of the
employees on job. The checklist contains a list of statements on the basis of which the
rater describes the on the job performance of the employees.
8. FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is
asked to distribute the employees in some fixed categories of ratings like on a normal
distribution curve. The rater chooses the appropriate fit for the categories on his own
discretion.
B) Modern-Method
1. MANAGEMENT BY OBJECTIVES
The concept of ‘Management by Objectives’ (MBO) was first given by
Peter Drucker in 1954. It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employees set their goals to be
achieved, the standards to be taken as the criteria for measurement of their performance
and contribution and deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the comparison
of the employee’s actual performance with the standards set. Ideally, when employees
62
themselves have been involved with the goal setting and the choosing the course of action
to be followed by them, they are more likely to fulfill their responsibilities.
Clarity of goals – With MBO, came the concept of SMART goals i.e. goals
that are:
Specific
Measurable
Achievable
Realistic,
Time bound.
The goals thus set are clear, motivating and there is a linkage between
organizational goals and performance targets of the employees.
The focus is on future rather than on past. Goals and standards are set for the
performance for the future with periodic reviews and feedback.
2. 360-DEGREE-PERFORMANCE-APPRAISAL METHOD
360 degree feedback, also known as 'multi-rater feedback', is the most
comprehensive appraisal where the feedback about the employees’ performance comes
from all the sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e.
superior), subordinates, team members, customers, suppliers/ vendors - anyone who
comes into contact with the employee and can provide valuable insights and information
or feedback regarding the “on-the-job” performance of the employee.
360 degree appraisal has four integral components:
1. Self appraisal
63
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.
Self appraisal gives a chance to the employee to look at his/her strengths and
weaknesses, his achievements, and judge his own performance. Superior’s appraisal
forms the traditional part of the 360 degree appraisal where the employees’
responsibilities and actual performance is rated by the superior.
Self assessment is an indispensable part of 360 degree appraisals and therefore 360
degree appraisals have high employee involvement and also have the strongest impact on
behavior and performance. It provides a "360-degree review" of the employees’
performance and is considered to be one of the most credible performance appraisal
methods.
64
Despite the fact that 360 degree appraisals are being widely used throughout the
world for appraising the performance of the employees at all levels, many HR experts and
professionals argument against using the technique of 360 degree appraisals. The main
arguments are:
• With the increase in the number of raters from one to five (commonly), it become
difficult to separate, calculate and eliminate personal biasness and differences.
• The results can be manipulated by the employees towards their desired ratings
with the help of the raters.
• The 360 degree appraisal mechanism can have an adversely effect the motivation
and the performance of the employees.
• 360 degree feedback can be adversely affected by the customers’ perception of the
organization and their incomplete knowledge about the process and the clarity of
the process.
Often, the process suffers because of the lack of knowledge on the part of the participants
or the raters.
3. ASSESSMENT CENTRES
An assessment centre typically involves the use of methods like social/informal
events, tests and exercises, assignments being given to a group of employees to assess
their competencies to take higher responsibilities in the future. Generally, employees are
given an assignment similar to the job they would be expected to perform if promoted.
The trained evaluators observe and evaluate employees as they perform the assigned jobs
and are evaluated on job related characteristics.
The major competencies that are judged in assessment centre are interpersonal
skills, intellectual capability, planning and organizing capabilities, motivation, career
orientation etc. assessment centre are also an effective way to determine the training and
development needs of the targeted employees.
65
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which
combines the graphic rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of behavioral statements
describing important job performance qualities as good or bad (for e.g. the qualities like
inter-personal relationships, adaptability and reliability, job knowledge etc). These
statements are developed from critical incidents.
In this method, an employee’s actual job behavior is judged against the desired
behavior by recording and comparing the behavior with BARS. Developing and
practicing BARS requires expert knowledge.
• Lack of competence
Top management should choose the raters or the evaluators carefully.
They should have the required expertise and the knowledge to decide the criteria
accurately. They should have the experience and the necessary training to carry
out the appraisal process objectively.
66
• Errors in rating and evaluation
Many errors based on the personal bias like stereotyping, halo effect (i.e.
one trait influencing the evaluator’s rating for all other traits) etc. may creep in the
appraisal process. Therefore the rater should exercise objectivity and fairness in
evaluating and rating the performance of the employees
• Resistance
The appraisal process may face resistance from the employees and the
trade unions for the fear of negative ratings. Therefore, the employees should be
communicated and clearly explained the purpose as well the process of appraisal.
The standards should be clearly communicated and every employee should be
made aware that what exactly is expected from him/her.
The performance appraisals softwares automate the appraisal processes and assist
the HR by adding online capacities to the processes. The performance appraisal software
can be customized according to the needs of the organisation. The various forms and other
processes can be designed in accordance to the practices being followed in the
organisation.
The software standardizes the appraisal process. The software applications also
have guidelines for the users to guide them throughout the process, alerting the users
about the errors and mistakes (if any), suggesting the appropriate language to be used,
provides a systematic records of the necessary documents to the rater and the HR
Department.
Several software packages are available which also provide the 360-degree review
program so that employees can get a multi-rater feedback about their performance.
67
• Designed with the latest technologies, they are easy to understand and make things
structured, organized and standardized throughout the organisation.
• Performance Measures, KPI and KRA’s, goals and objectives for each employee,
team and department can be weighted and listed according to their importance and
priority.
• Use of the standard performance appraisal softwares can help to reduce the
subjectivity and the bias in the ratings of the appraisers.
• It facilitates the calculations and adjustments of the performance related pay and
other related HR decisions.
• Automatic reminders can be sent to the employees and the concerned authorities
for the due appraisals.
• Helps to improve the productivity of the employees and employee retention in the
organisation.
• Keeps a detailed record of the past performances and the reviews of the
employees.
Various studies in the field of human resources have already proved that performance
appraisal process can affect the individual performance (in a negative or positive way),
thus having an impact on the collective performance.
• Performance appraisal process focuses on the goal setting approach throughout the
organisation.
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• Performance appraisal helps the clarity and understanding of the roles and
responsibilities of the employees.
One of the latest strategies being followed in all sectors through out the world for
retention and talent management is “linking compensation to performance”. Commonly
known as “Performance pay” or “Performance based pay”, it links the compensation of
the employees to their performance and their contribution to the organizational goals.
Therefore, periodic performance reviews play a vital role and provide the basis of
performance related pay.
Commissions, incentives and bonuses, piece rate pay help the employer to pay the
employee according to their productivity and hard work.
• Deciding and clearly defining the performance goals and the performance
measures
• Setting the target bonus for different levels of performances
• Measuring the performance of the employee
• Giving rewards and bonus according to performance
Organizations are also designing variable compensation plans for various roles and
positions in the organization.
69
• Profit Sharing – Sharing the profits of the enterprise with the employees as
bonus.
Although performance related pay has always been a topic of discussions and
controversies with many arguments against it, but it has also been proved that
performance based pay motivates employees to perform better and earn, and encourages
learning, innovation, creativity, problem solving and empowerment which can be
facilitated through proper performance measurement and reviews.
Performance appraisal processes are one of the central pillars of the performance
management which is directly related to the organizational performance and have a direct
impact on it. Employee performance ultimately effects the organizational performance
and objectives.
For an organisation to be effective, the goals, the standards and the action plans
need to be planned well in advance. Thus, performance appraisal facilitates the
achievement of organizational goals. It also facilitates the optimal use of the
organizational resources.
Where the performance appraisal improves the work performance and employee
satisfaction, it can also demotivate employees and leaving a bad impression on the good
employees. Most of the employees do not approve of continuous performance monitoring
and performance appraisals, and also consider it as a burdensome activity. According to
70
Professor Kuvaas “Performance appraisals and other tools which involve feedback
and target management should be adapted to the employee’s individual needs and
characteristics. Otherwise, there is a risk of harming the good employees without
being able to help the less good.”
• Performance as managers
Performance as managers
71
The responsibilities of managers include a series of activities which are concerned
with planning, organizing, directing, leading, motivating and controlling. Managers can
be rated on the above parameters or characteristics
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• Documentation – Means continuous noting and documenting the performance. It
also helps the evaluators to give a proof and the basis of their ratings.
• Practical and simple format - The appraisal format should be simple, clear, fair
and objective. Long and complicated formats are time consuming, difficult to
understand, and do not elicit much useful information.
• Evaluation technique – An appropriate evaluation technique should be selected;
the appraisal system should be performance based and uniform. The criteria for
evaluation should be based on observable and measurable characteristics of the
behavior of the employee.
• Personal Bias – Interpersonal relationships can influence the evaluation and the
decisions in the performance appraisal process. Therefore, the evaluators should
be trained to carry out the processes of appraisals without personal bias and
effectively.
73
In JBPL,
Management
By
Objective
(MBO)
Method Is
Used
74
PAY
FOR
PERFORMANCE
75
“Performance Related Pay”
Performance Related Pay
• Performance Related Pay (PRP) or Variable Pay is the reward paid to individuals
based on performance against the predetermined objectives aligned to the
business.
• PRP is essentially a method of linking the pay of an individual to his/her
performance achieved at work (usually) against agreed objectives.
• It is a method to remove or bridge the gap between pay and performance.
• It is based on premise in general that top performers are funded at the cost of
lower/non-performer.
Benefits:
• Motivating people and creating performance oriented culture
• To attract, retain and utilize most talented or right people in the organization
• To catch top performers attention and sends a signal to a poor performing
employee
• Sends vital signals about the organization priorities and values
• Transforming reward from entitlement to achievement
• Close to 78% companies view that this has positive impact on business results
• Shifting compensation cost from fixed to variable expenses
• 20% people contributing 80% of the results should be suitably rewarded
• Best way to increase productivity to secure dominance in the market
• Paying for performance works much better in down times than in boom times
• It is right and proper to pay in accordance with the contribution made by
individual
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• Good “Performance Management Program (PMP)” in place which
• Establishes clearly defined “SMART” individual objectives and competencies
aligned to overall organization goals
• Encourages and supports open, honest feedback and review of all
• Hold employees accountable for results
• Hold managers for substandard performance and for improving or removing poor
performers
• Formally recognizes and rewards the higher performance
• Clear identification of the target group, department, level etc.
• Requires high performance culture
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“MEASURING PERFORMANCE”
GOALS 2007
December, 2006
Name Job Title Qualification
Reporting to Deptt. Date of joining
GOALS FOCUSING ON GROWING THE BUSINESS
GOALS/OBJECTIVES DESIRED STRATEGIC
RATING PRIORITIES/ACTION PLAN
(66)
1. SALES VOLUME/ 25
MARKET SHARE
2. DISTRIBUTION 8
LEADERSHIP
10
3. VISIT MANAGEMENT 12
4. PROFITABILITY/ COST/
DISCOUNT CONTROL
12
5. PROCESS ORIENTATION 67
GOALS FOCUSING ON GROWING PEOPLE/ORG. CAPABILITY
OBJECTIVES DESIRED STRATEGIC
RATING(33) PRIORITIES/ACTION PLAN
1. COACH AND DEVELOP 18
FOR
15
2. SALES TRAINING 33
PERFORMANCE RATING SCALES & LEVELS
5 SAT Significant Above Target : Significantly exceeded expectations
4 AT Above Target : Consistently exceeded expectations
3 OT On Target : meet all & exceeded some expectations
2 BT Below Target : Meet some, but not all, expectations
1 SBT Significant Below Target : Significantly below expectations
78
“Arriving at Performance Level”
PART - I PART - II
PERFORMANCE
WEIGHTED WEIGHTED
PERFORMANCE LEVEL
AVERAGE AVERAGE
LEVEL ( TOTAL OF
PERFORMANCE PERFORMANCE
PART I & II)
LEVEL LEVEL
15
SAT 5 5 X 2 = 10 5X1=5 15 14
13
12
AT 4 4X2=8 4X1=4 12
11
10
OT 3 3X2=6 3X1=3 9 9
8
7
BT 2 2X2=4 2X1=2 6 6
5
4
3
SBT 1 1X2=2 1X1=1 3
2
1
79
“Establishing Linkage of Performance
to Reward”
PART - I PART - I I B
TOTA
ASE
WEIGHTED WEIGHTED L OF VARIAB TOTA
PERFORMA PAY
AVERAGE AVERAGE PART LE PAY L
NCE LEVEL RAIS
PERFORMA PERFORMA I & (%) INCR
E
NCE LEVEL NCE LEVEL II
(%)
15 15 15 30
SAT 5 5 X 2 = 10 5 X 1 = 5 15 14 14 11 25
13 13 7 20
12 12 4 16
AT 4 4X2=8 4 X 1 = 4 12
11 11 2 13
10 10 0 10
OT 3 3X2=6 3X1=3 9 9 9 0 9
8 8 0 8
7 7 0 7
BT 2 2X2=4 2X1=2 6 6 6 0 6
5 5 0 5
4 0 0 0
3 0 0 0
SBT 1 1X2=2 1X1=1 3
2 0 0 0
1 0 0 0
80
Data
Analysis
81
Number of Employees working at different levels in JBPL
Employees Years
2005 2006 2007 2008
Top-level 14 17 23 22
Managers
Middle-level 78 88 102 106
Managers
Front-line 23 22 22 41
supervisors
Total 115 127 147 169
Managers Years
2005 2006 2007 2008
HR 1 1 1 1
Sales 4 6 7 8
Marketing 1 1 1 1
Production 5 4 7 7
& Quality
Finance 1 2 2 2
Shipping 1 1 2 1
Purchase 0 1 1 1
Head Office 1 1 1 0
Store 0 0 1 1
82
Number of Employees placed at different Performance Level
according to their roles and responsibilities change:
Top-Level Managers:
Year 2005=14 Managers
Year 2006=17 Managers
Year 2007=23 Managers
Year 2008=22 Managers
16
14
12
SAT
10
AT
8
OT
6 BT
4 SBT
2
0
2005 2006 2007 2008
In 2005, there were 14 Managers. 3 more Managers were joined in 2006 and 6
Managers were joined in 2007. But in 2008, there were only 22 Managers because one of
them is transferred to another State.
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ANALYSIS:
Most of the Managers are at SAT (Significant Above Target)
Performance Level
Maximum of the Managers are at AT (Above Target) Performance
Level.
Some of the Managers are at OT (On Target) Performance Level.
This is due to their efficiency and contribution towards the organization.
Middle-Level Managers:
Year 2005=78 Managers
Year 2006=88 Managers
Year 2007=102 Managers
Year 2008=106 Managers
60
50
40 SAT
AT
30
OT
20 BT
SBT
10
0
2005 2006 2007 2008
ANALYSIS:
84
Lack of alignment of individual and organizational goals.
Managers are not thrilled to deliver less then favorable news.
Influence of higher rating by other department.
Front-Line Supervisors:
Year 2005=23 Supervisors
Year 2006=22 Supervisors
Year 2007=22 Supervisors
Year 2008=41 Supervisors
25
20
SAT
15
AT
OT
10
BT
SBT
5
0
2005 2006 2007 2008
ANALYSIS:
85
Lack of productivity and effectiveness, contributes least to organization bottom
line.
CONCLUSION:
The Performance Appraisal methods vary from one organization to another.
Change in method of Performance Appraisal has observable and immediate side effect
on organizational processes like work task, job design, organizational structure,
knowledge and skill required, and values, attitudes and behavior of employees.
Substantive changes in one or more of the above factors leads to perceive or actual
psychological threat of job displacement, reduction in economic security, disruption of
social arrangements and redefining of authority relationships. These threaten the
psychological and social status of an employee, triggering off resistance to change.
86