Performance Appraisal System Dabur India Ltd.

Summary

Performance appraisal, by providing a dynamic link to employee recruitment,

selection, training and development, career planning, compensation and
benefits, safety and health and industrial relations, is a vital tool for strategy
execution. It signals to managers and employees what is really important; it
fixes accountability for behaviour and results; and it helps to improve
performance.
This project will explain the knowledge about the performance appraisal. It
can be used as a means of assessing potential for promotion, assisting
people to perform better and indicating future training needs.
This project will help in studying the purpose of performance appraisal.
Performance appraisal is a management program, not just an HR department
responsibility. It can help in development of scientific basis for reward
allocation, wage fixation, incentives. It serves as a mechanism for
communication between superiors and subordinates.
This project will help in knowing the problems and hurdles faced by
ineffective performance appraisal. This research work comprise of both
primary as well as secondary data.

Objective of the Study:

This project aims at studying the system of performance appraisal and its
effectiveness in an organization. Performance appraisal is the most
significant and indispensable tool for the management as it provide useful
information for decision making in area of promotion and compensation
reviews.
Thus a broad objective of the study includes:
• To know the present system of performance appraisal
• To know the extent of effectiveness of the appraisal system
 • To identify and know the area for improvement system

Conclusion:
• The promotions rule though defined need to be communicated to every
employee before appraisal process is done and also justify the promotion as
a result of the appraisal. That the promotion policy followed differs at
different position and category. Uniformity has to be there in the
implementation of promotion policy at all levels.
• The process of performance appraisal followed in Dabur India Ltd. at the
supervisory and above level IS to say not well but of satisfactory level. The
employees do not rate it very good.
• The appraisal outcome has to be used frequently for the purpose of
reward on performing well together with the feedback on the performance.
Also when performance goes down employee has to be given feedback and
motivated to do better.
• The organization at present doesn't lie career planning and career
suggestion plans.
• In Dabur India Ltd. feedback is being provided to the employee though on
a few occasion.
• Performance appraisal in Dabur India Ltd is done on an annual basis.
• More emphasis on training and job rotation as remedial measures.
• The mechanism of counseling pre-performance and post performance is
not in practice at the organization in strict term. During the course of study
suggestion came from the employee side for the need of counseling.

Suggestions
• Training the Appraiser: It is proposed that appraiser be trained for clear
understanding of the system and its objective and also counseled to be
honest, fair, just, unbiased in appraising the appraisal.
• Factors/traits of evaluation: It is proposed that appraisal evaluated on
above factors/traits be given suitable remark or justification for being given
different quantitative grade.
• Greater clarity has to be has to there in terms of job responsibility. This is
possible when the appraisal is done on the basis of the description.
• In the organization, performance appraisal is done on an annual basis
which should be done Quarterly to make it more effective.
• Consistency is demanded in the promotional policy. It should not change
every year.
• Monetary difference between two grades should not be large; it should be
motivating in nature.
• Performance appraisal system should be made more transparent and
rationale.
• Performance feedback: The performance feedback sessions should be
improved which would results in increasing employee motivation to improve
performance. The following could be incorporated.
o Pin point the problem behaviors and make sure the employee is
aware of it.
o Make sure the employee understands the consequences of the
problem behaviors. Get employee's commitment to change and make
sure he cares about the change.
o Assistance should be provided to improve poor performance.
Make a realistic plan appropriate to the behavior and set a time frame
for improvement.
o To make sure to review performance time to time.
• The other change which has to be incorporated at the supervisor and the
level above are:
o These should be listing down of task undertaken during the last
one year and the result achieved.
o In some areas of performance there should be self appraisal and
more and more counseling so that employee improves upon weak
area and understands what is expected of him/her at the organization
level.
o Based on the above an open appraisal system is suggested.