DISSERTATION REPORT ON PERFORMANCE APPRAISAL (AT PARLE INDUSTRIES LIMITED)

SUBMITTED TO KUMAON UNIVERSITY IN PARTIAL FULFILMENT OF BACHELOR OF BUSINESS ADMINISTRARION (THREE YEARS FULL TIME DEGREE PROGRAMME)

SUBMITTED BY DEEPANSHI JOSHI B.B.A (IV SEMESTER) (2008-2011)

JAI ARIHANT INSTITUTE

CERTIFICATE

This is to certify that ANJALI SHARMA has completed the project title PERFORMANCE APPRAISAL AT BIL. under my guidance and supervision.

She is submitting the project in the partial fulfillment of the requirement for the award Masters of Business Administration, UTTRAKHAND TECHNICAL University, DehraDun.

This work is original and has not been published or submitted elsewhere for any purpose what so ever. All sources of information have been mentioned and dully acknowledged.

SUBMITTED TO: MISS. RINKY RANA (FACULTY MBA.DPT.)

ACKNOWLEDGEMENT

I am very thankful to my Faculty Guide MISS.RINKY RANA without whose meticulous attention, invaluable suggestions, encouraging guidance and creative support; I would not have been able to complete my dissertation which is one of the important parts of the MBA program.

She helped me in simplifying the problems involved in the work. I would also like to thank the overwhelming support of all the people who gave me an opportunity to learn and gain knowledge.
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Kamal Malkani

(MBA.IV SEM)

PREFACE

As a part of my MBA IV Sem. program , I was asked to undergo 6 weeks of Summer Training in any organization, so as to give exposure to practical knowledge and to get familiar with the various activities taking place in organization.

I got an opportunity to undergo Summer Training in the reputed organization PARLE INDUSTRIES LIMITED, PANTNAGAR, where I was assigned the project entitled PERFORMANCE APPRAISAL..

DECLARATION

I KAMAL MALKANI student of MBA IV sem. of DEVSTHLI VIDYA PEETH INSTITUTE, hereby declare that this Dissertation report PERFORMANCE APPRAISAL is written and submitted by me under the guidance of MISS. DEEPTI SARKI is my original work. The entire analysis and conclusion of this report are based on the information which is collected by me during the training period. The empirical finding in the report are based on the data collected myself while preparing this project. I have not copied any thing from any source or other project submitted for the similar purpose, if any.

KAMAL MALKANI

CONTENT
Chapter-1: EXECUTIVE SUMMARY 1-2

Chapter-2: OBJECTIVE OF THE STUDY

3-4

Chapter-3: INTRODUCTION ABOUT BRITANNIA Company overview Company Profile Board of Directors Mile stones Activities of the company

5-22

PANTNAGAR UNIT

Introduction Company Profile SWOT Analysis Department of the company Chapter-4: PERFORMANCE APPRAISAL 23-44

Definition of Performance Objectives,& Features of Performance Appraisal Process & Methods of Performance Appraisal Key elements of Performance Appraisal Problems of Performance Appraisal Process of Performance Appraisal Performance Appraisal at BIL. Process of Appraisal in Britannia Industries Limited Chapter-5: LITERATURE REVIEW 45-50

Chapter-6: RESEARCH METHODOLOGY

8

51-54

 Sample Size Method of Sampling Area of work Method of Data collection Scope of the study Sources of data collection Limitation of the study Chapter-7: ANALYSIS & FINDINGS 55-56

Chapter-8: RECOMMENDATIONS

57-58

Chapter-9: CONCLUSION

59-60

Chapter-10: QUESTIONNAIER

61-66

Chapter-11: BIBLIOGRAPHY

67-68

CHAPTER-I
10

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY FOR PERFORMANCE APPRAISAL

Performance appraisals can be a good way for organizations to boost employees' motivation and their competitive edge. But creating useful performance appraisals -- and making sure they are used effectively throughout an organization -- isn't easy. The 10 lessons here can help your company move closer to appraisals that help staff perform their best.

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"The irony is that our organization has been doing formal appraisals for at least 30 years and we still struggle to do them right. It takes a clear purpose, a good system, and effective managers all operating together to get the job done." -- Director of human resources, Fortune 500 manufacturing organization. It is common knowledge that most managers and employees find participating in formal performance appraisals as appealing as having a root canal. However, it is also true that -- for better or worse -- formal performance appraisals are an inescapable part of organizational life. There are two main reasons that formal performance appraisals are here to stay. First, formal appraisals are required to justify a wide range of human resource decisions such as pay raises, promotions, demotions, terminations, and selection validation. They also are key to evaluating recruitment results and determining training needs. Second, formal appraisals are required to maintain a competitive edge. In a recent study of highperformance organizations, the practice of employing a value-added performance appraisal process was cited as one of the top 10 vehicles for creating competitive advantage. The manufacturing organizations in this study clearly stated that an effective appraisal and review process created focus, a platform for measurement, a vehicle for employee improvement, and a means of linking key outcomes to performance.

Our lessons for developing and sustaining a high-performance appraisal system are based upon two key tenets. The first tenet suggests that if appraisal processes operate as a system, a systems perspective must be applied to identify the critical appraisal system components and stages to make sure that organizational procedures and practices work in harmony. The second tenet is that individual managers play a pivotal role in achieving effective appraisals and that they need the right tools and support to be effective.

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CHAPTER II OBJECTIVE OF THE STUDY

13

OBJECTIVE OF THE STUDY

The objective for my Dissertation Report, is to make my self capable for moving forward in corporate world, to gain knowledge & experience & know how to work in the organization environment. It will help me to gain more & more about corporate sector, which was very essential for me to do. Therefore I joined BIL Pantnagar to improve my capabilities.

MAIN OBJECTIVE

To Know about the existing system of Performance Appraisal in Britannia Industries Limited To study the awareness of the employees regarding the appraisal system. To evaluate the effectiveness of appraisal system. To know the satisfaction of the employees, with the appraisal system followed in BIL.

SUB-OBJECTIVE
Are the present performance appraisal is sufficient enough to analyze the ability of a company. To see the difference between the theoretical knowledge & practical knowledge.

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CHAPTER-III INTRODUCTION ABOUT THE COMPANY

15

COMPANY OVERVIEW

In 1929 a small company by the name of Parle products emerged in British dominated India. The intent was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies. The company knew that it wouldnt be an easy task, but they decided to take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. A decade later it was upgraded to manufacture biscuits as well. Since then, the Parle name has grown in all directions, won international fame and has been sweetening people's lives all over India and abroad. Apart from the factories in Mumbai and Bangalore Parle also has factories in Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest biscuit and confectionery plants in the country. Additionally, Parle Products also has 7 manufacturing units and 51 manufacturing units on contract.

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COMPANY PROFILE

TYPE: FOUNDED IN: HEADQUARTERS: KEY PEOPLE:

PUBLIC 1982 BANGALORE Mr.NUSLI WADIA(CM) MS.VINITA BALI(MD)

INDUSTRY: PRODUCTS:

FOOD BISCUITS, CAKE, BREAD, BUTTER, MILK, CURD etc

EMPLOYEES: REVENU: WEBSITE:

2,337 22,663 MILLIONS(2009-2010) http://www.britannia.co.in

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BOARD OF DIRECTORS

NAME
Mr. Nusli N Wadia Ms. Vinita Bali Mr. George Casala Mr. Keki Dadiseth Mr. Avijit Deb Mr. Stephan Gerlich Mr. A K Hirjee

DESIGNATION
Chairman Managing Director Director Director Director Director Director

18

Mr. Nimesh N Kampani Mr. S. S Kelkar Dr. Vijay Kelkar Mr. Pratap Khanna Mr. Jeh Wadia Mr. Francois Xavier Roger Field Marshall Sam Manekshaw

Director Director Director Director Director Director Director Emeritus

MILE STONES

1892

The Genesis Britannia established with an investment of Rs. 295 in Kolkata

1910

Advent of electricity sees operations mechanized

1921

Imported machinery introduced; Britannia becomes the first company East of the Suez to use gas ovens

1939- 44

Sales rise exponentially to Rs.16,27,202 in 1939 During 1944 sales ramp up by more than eight times to reach Rs.1.36crore

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1975

Britannia Biscuit Company takes over biscuit distribution from Parrys

1978

Public issue Indian shareholding crosses 60%

1979

Re-christened Britannia Industries Ltd. (BIL)

1983

Sales cross Rs.100crore

1989

The Executive Office relocated to Bangalore

1992

BIL celebrates its Platinum Jubilee

1993

Wadia Group acquires stake in ABIL, UK and becomes an equal partner with Group Danone in BIL

1994

Volumes cross 1,00,000 tons of biscuits

1997

Re-birth new corporate identity Eat Healthy, Think Better leads to new mission: Make every third Indian a Britannia consumer

BIL enters the dairy products market Britannia Khao World Cup Jao a major success! Profit up by 37%

1999

2000

Forbes Global Ranking Britannia among Top 300 small companies

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2001

BIL ranked one of Indias biggest brands No.1 food brand of the country Britannia Lagaan Match: Indias most successful promotional activity of the year Maska Chaska: Indias most successful FMCG launch BIL launches joint venture with Fonterra, the worlds second largest dairy company Britannia New Zealand Foods Pvt. Ltd. Is born Rated as One amongst the Top 200 Small Companies of the World by Forbes Global Economic Times ranks BIL Indias 2nd Most Trusted Brand Pure Magic Winner of the World star, Asia star and India star award for packaging Treat Duet- most successful launch of the year Britannia Khao World Cup Jao rocks the consumer lives yet again Britannia accorded the status of being a Super brand Volumes cross 3,00,000 tons of biscuits Good Day adds a new variant Coconut in its range Re-birth of Tiger Swasth Khao, Tiger Ban Jao becomes the popular chant! Britannia launched Greetings range of premium assorted gift packs The new plant in Uttarakhand, commissioned ahead of schedule. The launch of yet another exciting snacking option Britannia 50-50 Chakkar. Pepper

2002

2003

2004

2005

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OUR PRODUCTS

22

WHAT MAKES A BRITANNIA

If you think Britannias are extraordinary individuals who are passionate about everything they docreate inspiration through everything they doand succeed in everything they doyoure probably right. Britannians are hand-picked for a singular purposeto perpetually ensure Market Leadership and generate exemplary performance in every function. Britannians exhibit the following leadership behaviors (we fondly call BULBs Britannia Universal Leadership Behaviors)

Integrity

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Team Orientation People Development Learning Orientation Customer Orientation Quality Orientation Drive for Results Entrepreneurial Spirit System and Process Orientation Communication

If feel you stack up well in terms of all these behaviorsdont waste timeJoin us!!!

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OBJECTIVES OF THE COMPANY

The objectives of the company are as follows:

1. To acquire and take over as a going concern the biscuit manufacturing business now carried on at Dum dum junction under the styles or firms of V.S Brothers and company, Gupta and company and Britannia biscuits company and all or any of the lands, buildings, plant and machinery, assets and liabilities of the proprietors of that business in connection there with and with a view thereto to enter into the agreement referred to in clause 3 of the companies article of association and to carry the same into effect with or without modification.

2. To manufacture, buy, sell, prepare for market and deal in farinaceous foods for all kinds and in particular biscuits, breads, cakes and confectionary and food of every description suitable for individuals.

3. To carry on business as millers and grain merchants, dealers in flour, rice and other produces.

4. To carry on business as bakers and confectioners and to manufacture buy, sell, refine prepare, grow, import export and deal in provisions of all kinds of wholesale and retail, whether solid or liquid.

5. To make, accept, endorse, discount and issue promissory notes, bills of exchange and other negotiable instruments etc.

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INTRODUCTION ABOUT PANTNAGAR UNIT

26

INTRODUCTION ABOUT THE UNIT (PANTNAGAR BRANCH)

INTRODUCTION

Britannia industries limited was established at Pantnagar on 1st April 2005in the area of approximately 20 acres mainly for the purpose of production of biscuits as this area is free from almost all types of taxes. In Britannia Industries Limited there are many types of departments which are inter connected to each other and work together for the welfare of the Company as the whole. There is a well built communication system inside the Company which helps in doing the work on time and with full efficiency and effectiveness. The departments of the Company includes Quality assurance, Stores, Production, Purchase, Maintenance, Engineering, Packaging and dispatch, Personnel and training, Finance, legal and administrative security.

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In the Company when the raw material is entered in the Company from that time onwards the quality of material is taken into consideration. Firstly the material is taken into the laboratory and it is being tested and after that it is being taken in progress. At the production plant also care is being taken for the neatness and cleanness of the biscuits and the biscuits are prepared in full hygienic conditions. For this purpose all the persons who enter the production or plant area is not allowed to go inside without wearing a cap. New concept like 5S is also being implemented in Britannia Industries Limited. The Company is perusing for ISO14001certificate and it is ISO 22000 certified. There are four plants in operation in the Company at this branch. First plant is for Marie Gold which has a flexi line for Good day also. Second plant is for Good day, third one is for 50:50 variants, pepper chakkar and Maska Chaska. Forth and last plant is for Bourbon which has a flexi line for Orange cream also.

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MAIN EVENTS OF THE COMPANY

1) Bhumi poojan of Britannia industries limited was on 20th may 2004. 2) Machinery was set up on 23rd march 2005. 3) Production trial was taken on 23rd march 2005 itself. 4) Actual production was started on 1st April 2005. 5) First dispatch of finished goods was done on 20th April 2005. 6) Biggest plant of the company is plant number two. 7) The company is set up in an area of approximately 20 acres. 8) Minimum production of the company is 180 tons per day. 9) Maximum production is 300 tons per day. 10) Control of management is through Board of Directors. 11) It is a public limited company. 12) The auditors of the company are Lovelock & Lewes. 13) The bankers of the company are:

State Bank of India. Standard Chartered Bank. ABN Ambro Bank. City Bank. The hongkong and shanghai banking corporation limited. Bank of America. HDFC Bank limited. ICICI Bank limited.

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NUMBER OF PLANTS AND PRODUCTION AT THE PANTNAGAR BRANCH

Not all the brands of Britannia are produced in this branch only some brands of biscuits are produced at this branch. Production of biscuits in Britannia Pantnagar branch is divided in to four Plants.

1) Plant I Marigold Good day butter Good day Pista badam

2) Plant II good day cashew

3) Plant III fifty- fifty (50-50) i) ii) iii) 50-50 50-50 Maska Chaska 50-50 pepper chakker

4) Plant IV Chocolate treat bourbon Orange treat

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OBJECTIVES OF THE UNIT

Investing in appropriate technology. Working collaborators with the business partners. Quality products to customers. Continuous training and retraining of the employees to create culture that value quality and food safety as a core pillar of the business. To control the wastage and save time and efforts. To work under the principals of Kiazen, Haccp and 5 S.

THINGS YOU DONT KNOW ABOUT BRITANNIA

Britannia products are sold in over two million outlets, reaching millions of customers who buy approximately 2.4 billion packets each year. A small army keeps Britannia going over 180 stock keeping units, 3000 employees, over 2200 authorized whole sellers and 56 depots. The number of biscuits produced by Britannia in one year would be the equivalent of one pack of twelve biscuits for every two people in the world. Stacked on top of each other, all Britannia biscuits sold in a year would stand 10,000 times taller than Mount Everest. Britannia has had a long association with cricket and cricket players. Nearly half the members of the current Indian cricket team serve as its brand ambassadors. Launched in 1997, Tiger became the largest selling Britannia biscuit brand in just 4 months of launch. It crossed Rs.1 billion sales mark in its very first year and is growing stronger.

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SWOT ANALYSIS
STRENGTH
Goodwill of company Financially a very strong company Effective well designed and developed production and marketing network. Superior quality and service to provide maximum benefits to customers. The family environment in the company. Dedicated work force. Continuous growth. Market share of the company. Tax benefit to the company.

WEAKNESSES
No uniform of the officers and of the workers too. Storage capacity of the company is limited. Land is not properly utilized. Raw material is wasted at the time of unloading. Unit is situated far away from main plant. There is no board of Britannia at the entry gate.

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OPPORTUNITY
There can be minimization of waste. There must be more efficient utilization of the raw material. More and more incentives should be given to workers to motivate them which help in increasing the employee moral. There can be use of the foreign technologies for efficient utilization of raw material so that the production of a biscuit can be increased. Lang can be used more efficiently.

THREATS
New entrants in the business Threats of substitute products. Availability of the other brands. Rivalry among the competitions.
Taste and preference of customers.

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Departments/ hierarchy of the company

There are mainly six departments of the company. These are as follows:

UNIT HEAD

Human resource

Accounts

Production

Purchase

Maintenance

Quality

Officers

Officers

Officers Officers Officers Officers

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CHAPTER-IV INTRODUCTION ABOUT

35

PERFORMANCE APPRAISAL

36

PERFORMANCE APPRAISAL

Performance appraisal or merit rating is one of the oldest and most universal practices of management. Performance appraisal is a method of evaluating the behavior in the works pot, normally including both the quantitative and aspects of job performance. It implies assessing the performance of an employee on the job. A formal defining by C. Heyel is as following:Performance appraisal is the process of evaluating the performance & qualification of the employees in term of the requirements of the job for which he is employed for the purpose of administration including placement, selection for promotion, providing financial rewards & other action which require differential treatment among the member of a group as distinguished from action affecting all members equally. According to Dale S. Beach: Performance appraisal is the systematic Evaluation of the individual with regard to his or her performance on the job & his potential for development.

According to Shubin: evaluation is a systematic appraisal of the employees personality traits & performance on the job & is designed to determine his contribution & relative worth to the firm.

According to Deal Yoder: All formal procedures used in working Organization to evaluate personalities & contribution s & potentials of group member.

A formal definition of Performance appraisal is that, It is the systematic evaluation of the individual with respect to his or her performance on the job & his potential for development. A more Comprehensive definition is, Performance appraisal is a formal structured system of measuring & evaluating an employees job, related behaviors & outcomes to discover how & why the employee is presently

37

Performing on the job & how the employee can perform more effectively in the future so that the employee, organization & society all benefit. Under Performance appraisal we evaluate not only the performance of a worker but also his potential for development.

TRENDS IN PERFORMANCE APPRAISAL

ITEM 1. Terminology 2. Purpose

FORMER EMPHASIS Merit-Rating Determine wage increase, promotion, transfer, layoff

PRESENT FOCUS Performance Appraisal Development of the individual improved job performance. For managerial & technical personnel.

3. Application

For rank & file workers

4. Factors rate d

Personal traits

Performance, result or accomplishment.

5. Techniques

Rating scales with emphasis upon scores

Mutual goal-setting, critical incidents, group appraisal. Superior stimulates employee to analyse himself & set goals with the help.

6. Post appraisal

Superior communicates his rating to the subordinate & seeks to have employee accept the rating.

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FEATURES OF PERFORMANCE APPRAISAL

1) Performance appraisal is the systematic description of an employees job relevant strength and weaknesses. 2) It is a continuous process in every large-scale organization. 3) The basic purpose is to find out how well the employee is performing the job & establish a plan of improvement. 4) Performance evaluation is not job evaluation. 5) Appraisals are arranged periodically according to a definite plan.

FUNCTIONS
Identification the areas of training & development. Helps in reward allocation. Provide the opportunity to review the strange & weakness of the employees. It helps in career planning & personnel development. Helps in establishing credibility of the selection procedure. Act as a motivation factor.

OBJECTIVES OF PERFORMANCE APPRAISAL

1) SALARY INCREASE: Performance appraisal play a role in making decision about salary increase. Normally salary increase depends on how employee is performing his job. There is continuous evaluation of this performance either formally or informally in small organization. There is direct contact between employees & Performance appraisal has to be a undertaken.

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2) PROMOTION: Performance appraisal plays a significance role where promotion is based on merits most of organization use a combination of merit & seniority for promotion. Performance appraisal discloses how an employee is working in his present job & what his strong & weak points are. It can be decided whether he can be promoted or not. It is also used for transfer, promotion, demotion & discharge of employees. 3) TRAINNING & DEVELOPMENT: Performance appraisal tries to identify the strengths & weaknesses of an employee on his present job. This information can be used for devising training & development programmes appropriate for overcoming weakness of the employees. 4) FEEDBACK: Performance appraisal provides feedback to employees about their performance. It tells them where they stand. A person works better when he knows how he is working first, the person gets feedback about his performance & try to overcome his deficiencies second, when the person gets feedback about his performance, he can relate his work to the organizational objectives. 5) PRESSURE ON EMPLOYEES: Performance appraisal put a post of pressure on employees for better performance. If the employees are conscious that they are being appraisal in respect of certain factors & their future largely depends on such appraisal, Appraisal can work automatically as control device.

PROCESS OF PERFORMANE APPRAISAL

Establishment of Performance Standards

Establishment of Performance Standards

Establishment of Performance Standards

40

Establishment of Performance

Establishment of Performance Standards

1) of

ESTABLISMENT measures again

OF which we

PERFORMANCE: are going to compare

We the

need performance

some of

kind

employees.

some of these standards are based on job description should be clear enough to be measured & understood by everyone standers are the expectations.

2)

COMMUNICATE EXPECTATION TO EMPLOYEES: Standards need to be communicated is

employees so that they know what is expected of them & how will they about it.

It has to be received by employees & manager should receive the feedback so that he comes to know whether employees have understood the intention of communication.

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3)

MEASURES ACTULY PERFORMANCE: After setting standard you will some critical to measure the

performance of employees.

4)

COMPARE ACTUAL PERFORMANCE WITH STANDARD: This is done to

see if any discrepancy exist & if so then how will it be rectified.

5)

DISCUSS APPRAISAL WITH EMPLOYEE: Performance of employee is reviewed & then manager

has to convince the employees about his judgment. He conduct meeting with employees for this purpose.

6)

INITIAL CORRECTIVE ACTION: If there is any deviation in performance then suggestive corrective

action can be provided to the employees.

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METHODS OF PERFORMANE APPRAISAL

PERFORMANCE APPRAISAL METHODS

Individual evaluation method

Multiple-person evaluation method

Other method

Confidential report Easy evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored Rating scale Forced choice method MBO

Ranking Paired Comparison Forced Comparison

Group appraisal HRA Assessment center Field review

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APPRAISAL BASED ON TRADITIONAL TRAITS

There are various methods of Performance Appraisal based on traits: 1) Ranking Method: Ranking is the oldest & simplest method of appraisal in which a person is ranked against other on the basis of certain traits & characteristics. It is not good for large number5 of employees. It does not indicate absolute or equal difference of ability between individuals. 2) Faired comparison Method: Paired comparison is a slight variation of ranking system. In this method each person or employees is compared with all other person. Then the rank is given according Rader gives rating & puts a tick mark the name of each employee alter which the name of ticks are counted & the employees having the most no. of tick marks is rated the highest. The larger the no. of employees the more difficult in composition.

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3) Grading: In this method certain categories well in advance & persons are put in their traits & characteristics such categories are like :- outstanding, goods, average, poor, very poor or may be in terms of A, B, C, D etc. 4) Forced Distribution Method: It assumes that employees performance conforms to the bell-shaped, this method tries to remove the error of leniency or central tendency error.

10

20

30

40

50 30% - Average 40% - Below Average

10% - Excellent 20% - Good

This method can be challenged people might question why they have been put in the category. This method is useful to rate job performance & Promotability. 5) Forced-choice Method: The forced-choice rating method contains a service group of statement & the rater checks how effectively the statement each individual being evaluated. Since forced choice is made might be disliked by the managers also depends on whether the statements properly formulated or not. The ultimate scoring lines with the H.R department.

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6) Check- list Method: It is list of traits pertaining to the job. There are two options Yes or No. this list is passed to H.R Department & they have a recording key. Accordingly they mark the Yes or No & give the overall rating. It is easily administered standardized & economical since it is applicable for everyone. 7) Critical incidents Method: Here focus on the incidents which are crucial for the performance of job. The behavior of employee is checked & a record is maintained about how he reacted in a particular situations. Here, since, we are keeping a record of job-related behavior it is more appropriate. We are considering both effective & iniency & primary basis. Chances of improvement are there. 8) Graphic scale Method: Graphic scale also known as linear rating scale is the most commonly used method of performance appraisal. In this method a printed appraisal from is used for each appraise. It contain various employee characteristics & his job performance various characteristics include initiative, leadership, dependability, co-operativeness, enthusiasm, creative ability, decisiveness etc. The rating is done on the basic of scale which is in continuum. The central idea behind this scaling is to provide the rate varying degree of a particular quality. The degree of quality is measured on a scale which can very from three points to several points, graphical scale method is good one in measuring various job behavior of an employee. However it is not free from raters biases.

Satisfactory

Unsatisfactory

10

9) Essay Method: It is a detailed description or narrative form of the employee evaluation. It does not provide any quantitative data to compare & is very unstructured, one need to have good analytical & writing skills. The essay method is useful in providing useful information about an employee on the basic of which he can be apprised. 10) Field Review Method: Employee are related by any other person expect than the immediate supervisor or own dept, the person can be from some other dept, or outside the organization ratings are given on the

46

employees record with organization & the information provided by the supervisor when he is interviewed by enumerator. A complied report given by the enumerator & is free form bias. It based on second final information.

APPRAISAL BASED ON MODERN METHOD

1) Assessment Centre: It is only method used for promotion. In this method there is a team of experts or evaluators who judge the performance. In this method all the candidates who clime for promotion are called participant. They asked to do different exercise of development or they have to give the answers of the expert. By this expert know their behavior or attitude & according to this expert prepare report & gave promotion. 2) Human Resource Accounting Method: Human Resource According are a valuable asset of any organization. This asset can be valued in term of money. Under this method performance is judged in term of cost & contributions of employees. Cost of human resource planning, recruitment, selection, induction, training, compensation etc. Contribution of human resource is the money of labour productivity or value added by human resources. 3) Behaviorally Anchored Rating Scale (BARS): This method combines graphic rating scales with critical incidents methods. BARS are descriptions of various degrees of behavior relating to specifics performance dimensions. The behavior of the employees is checked through graphic rating method.

NEED FOR PERFORMANE APPRAISAL

Provide information about the performance ranks basing on which decision regarding salary fixation, conformation, promotion, transfer & demotion are taken. To prevent grievances & indisciplinary activities.

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 Provides information which helps to counsel the subordinate. Provides feedback information about the level of achievement & behavior of subordinate. Provides information to diagnose deficiency in employee regarding skill, knowledge, determine training & developmental need & to prescribe the means for employee growth provides information for correcting placement.

PURPOSE
To create & maintain a satisfactory level of performance. To provide information for making decision regarding lay-off, retrenchment, etc. To guide the job changes with the help to continuous ranking. To contribute to the employee growth & development through training, self & management development programmes. To facilitate for testing & validating selection tests, interview techniques through comparing their scores with performance appraisal ranks. To ensure organization effectiveness through correcting employee for standard & improved performance, & suggesting the change in employee behavior. To facilitate fair & equitable compensation based on performance. To help the superior to have a proper understanding about their subordinates.

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KEY ELEMENTS OF PERFORMANCE APPRAISAL SYSTEM

Human Performance

Performance Appraisal

Employee Feedback

Performance Measure

Performance Related Standard

Human Resource Decisions

Employee Record

49

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USES OF PERFORMANCE APPRAISAL

1) PERFORMANCE IMPROVEMENT: Performance feedback allows the employee, manager, & personnel specialists to intervene with appropriate action to improve performance. 2) COMPENSATION ADJUSTMENTS: Performance evaluation help decision-makers determine who should receive pay rises. Many firms grant part or all of their pay increases & bonuses based upon merit, which is determine mostly through performance appraisals. 3) PLACEMENT DECISION: Promotion, transfer, & demotion are usually based on past or anticipated performance. Often promotions are reward for past performance. 4) TRAINING & DEVELOPMENT NEEDS: Poor performance may indicated the need for retaining. Likewise, good performance may indicate untapped potential that should be developed. 5) CAREER PLANNING & DEVELOPMANT: Performance feedback guides career decision about specific career paths one should investigate. 6) STAFFING PROCESS DEFICIENCIES: Good or bad performance implies strength or weakness in the personnel department staffing procedure. 7) INFORMATION INACCURACIES: Poor performance may indicate errors in job analysis information, human resource plans, or other parts or the personnel management information system. Reliance on inaccurate information may have led to inappropriate hiring, training, or counseling decisions. 8) JOB DECISION ERRORS: Poor performance may be a symptom of ill-conceived job designs. Appraisals help diagnose these errors. 9) EQUAL EMPLOYMENT OPPORTUNITY: Accurate performance appraisals that actually measure jobrelated performance ensure that internal placement may be able to provide assistance. FEEDBACK TO HUMAN RESOURCES: Good / bad performance throughout the organization indicates how well the human resources function is performing.

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PROBLEMS OF PERFORMANCE APPRAISAL

1)

Rating Biases: The problem subjective measure (is that rating which is not verifiable by others) has the opportunity for bias. The rater biases include: (i) Halo effect, (ii) The error of central tendency, (iii) The leniency & strictness biases, (iv) Personal prejudice, & (v) The recency effect.

2) 3) 4) 5) 6) 7) 8) 9)

Failure of the superior in conducting performance appraisal & post performance appraisal interviews. Most part of the appraisal is based on subjectivity. Less reliability & validity of the performance appraisal techniques. Negative rating affects interpersonal relating & industrial relations system. Influence of external environment factors & uncontrollable internal factors. Feedback & post appraisal interview may have a setback on production. Management emphasizes on punishment rather than development of an employee in performance appraisal. Some rating particularly about the potential appraisal is purely based on guesswork.

ADVANTAGES OF PERFORMANCE APPRAISAL

There will be an objective analysis of traits of both the superior & subordinate. There will be change to subordinate to express his views even after performance appraisal. An employee shall express his emotional needs & his value system, which is considered taboo will today. It overcomes the communication barrier. It will remove the inherent weakness of the appraisal system, i.e., subjective assessment of vague & abstract performance targets, unclear guidelines for appraisal etc.

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PERFORMANCE APPRAISAL AT BRITANNIA INDUSTRIES LTD.

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PERFORMANCE APPRAISAL AT BRITANNIA

Definition of performance in MAP is based up on Key Result Areas of KRAs and Routine Responsibilities.

KRAs are critical outcomes towards which effort is directed to achieve desired business results.

Routine Responsibilities are significant on-going tasks or outcomes that are undertaken or delivered on day-to-day basis.

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KRAs

Routine Responsibilities

Competencies

Performance Plan

Development Plan

Performance & Development Plan

Unique Role and Responsibility (URR) templates provide the KRAs, relative weight of KRAs and Routine Responsibilities, the competencies and their required proficiency levels for a role. The URR Template in MAP helps deliver consistency and clarity. On expected performance measures to Appraisees and Appraisers alike. MAP allows the Appraisee to define the performance measures applicable to the Appraisees situation using combination of KRAs and Routine Responsibilities. The achievement against targets sets for each of these will together constitute the Appraisees Performance Plan in the Performance Cycle or Period.

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Performance Cycle at a Glance

A Performance Cycle refers to the year for which your performance is being evaluated. Key phases of evaluating Performance at Britannia: 1. Performance and Development Planning 2. Mid Year Review 3. Final Review

The figure below provides an overview of the Performance Cycle with key dates for each phase.

Unit/business Sector Draft Budget End February

Offline Performance Planning March-Mid April Normalision & score Appraiser Final Review & Feedback

ONGOING FEEDBACK Mid Year Review Appraise May

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Final Review & Feedback

April

Mid April-End April

September-October

In certain cases, such as those involving a mid-cycle change in role to transfers etc, an Appraisee may be more than one Performance Plan in a Performance Cycle. The period that each Performance Plan covers is referred to as the Performance Period for that Performance Plan.

PROCESS OF PERFORMANCE

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APPRAISAL IN BRITANNIA INDUSTRIES LIMITED

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BRITANNIA INDUSTRIES LIMITED

STAFF ASSESSMENT FORM

Name: Job & Position Title:

Emp. No.

Grade: Function:

A. PERFORMANCE ASSESSMENT from__/__/____to__/__/____Location:

Rating Scale for Individual KRAs (1) Needs improvement (2) Meets expectations (3) Above Expectations (4) Outstanding

S.No

Outcome Measure Low

Standard Medium High

Weightage Achievement Self % Rating

Coachs Rating

CRITICAL KRAs

IMPORTANT KRAs

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OVERALL PERFORMANCE ASSESSMENT (By Coach)

1. Needs Improvement 2. Meets Expectation

3. Above Expectation

4. Outstanding

EMPLOYEES SIGNATURE

COACHS SIGNATURE

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B. POTENTIAL ASSESSMENT 1. LEADERSHIP COMPETENCY: (LC)

Rating scale for individual competency: (Scale would be from 1-4.1 being the lowest and 4 being the highest) S.NO. Competency Proficiency required for position Self Rating Coach Rating

1 2 3 4

Team working Thinking logically Listening & Responding Planning & Initiating OVERALL ASSESSMENT (By Coach)

2. FUNCTIONAL COMPETENCY: (FC) Rating scale for individual Functional Competency: (Scale would be from1-4.1 being the lowest and 4 being the highest)
S.NO. Competency Proficiency required for position Self Rating Coach Rating

1 2 3

Customer Centricity Drive for Results Process & Systems Orientation

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Innovation OVERALL ASSESSMENT (By Coach)

C. NEEDS IDENTIFIED FOR TRAINING

LEADERSHIP COMPETENCY
1 2 3 4

FUNCTIONAL COMPETENCY

D. ASPIRATIONS & FEEDBACK

Self assessment(By Employee) STRENGTHS AREAS FOR IMPROVEMENT Assessment by the coach

CAREER ASPIRATIONS DISCUSSION DETAILS PRE BAT DIALOGUE POST-BAT FEEDBACK

Employees Signature _______________ Coachs Signature____________ Date _______________ Date

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_____________

OVERALL RANKING:
Outstanding Exceeds Expectation Meets expectation

(Tick appropriate box)

Below Expectation Needs Improvement

H.R. HEAD

FUNCTIONAL HEAD

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BRITANNIA INDUSTRIES LIMITED

MID-YEAR PERFORMANCE REVIEW (A copy of the review year (2007-08) BAT Form to be attached with this form) Employee Name Function/Location Review Period Coach

PROGRESS ON GOALS (KRAs)

Post discussion of the Employee and Coach, the progress on goals identified on the BAT Form is noted below

GOAL REVISION / ADDITIONS, DELETIONS ANOTHER CHANGES IF ANY

(Any change in the Employees Job Description or KRAs should be noted here. As well as areas of work requiring improvement)

TRIANING & DEVELOPMENT REQUIREMENTS INVIEW OF CHANGED ROLE/ JOB DESCRIPTION

REVIEW COMMENTS
(By Coach)

Employees Signature
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Coachs Signature

Date:

Date:

CHAPTER-V LITERATURE
REVIEW
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LITERATURE REVIEW ON PERFORMANCE APPRAISAL

Title: A review of performance appraisal within Liverpool Direct Revenue Services.

Authors: Lamb, Frank

Publisher: University of Chester.

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Abstract:

This dissertation sets out to review and explain the challenge of performance management and how this is addressed through the performance appraisal process within Liverpool Direct Revenues Service. The research will examine the elements which constitute a high performing appraisal process and consider the current problems inherent within the appraisal process within the revenues service and the impact this maybe having on service delivery. The study also considers the impact on staff and their development of an appraisal system which is not delivering key messages or addressing individual performance issues. The research used a number of data capture methods. Secondary survey data was used to underline and support findings from the primary interview data. In addition a survey of all frontline staff within the revenues service was undertaken to provide a greater wealth of data and enrich the overall research. As a result of this research it was discovered that the revenues service does not have a coherent performance appraisal process. There exists a clear dichotomy between senior managers and senior officers as to what elements should be present in the performance appraisal. The research also discovered there was little engagement or confidence in the process from the participants. The research makes several recommendations which include the training of all managers within the revenues service and the embedding of the appraisal process within the organisation. Further recommendations are made to improve staff engagement in the process and create better feedback of information.

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Title:Performance without Appraisal (Pay, Promotion, and Improvement) Authors: Esther Derby (scrum alliance) Abstract:

The idea of merit rating is alluring. The sound of the words captivates the imagination: pay for what you get; get what you pay for; motivate people to do their best, for their own good. The effect is exactly the opposite of what the words promise. Everyone propels himself forward, or tries to, for his own good, on his own life preserver. The organization is the loser. Merit rating rewards people who do well within the system. It does not reward attempts to improve the system. W. Edwards Deming in Out of the Crisis In my previous column, I suggested that ScrumMasters should steer clear of annual performance reviews. Rating and ranking individuals interferes with a ScrumMasters responsibilities as a coach in service to the team. In fact, I went further than that: I suggested that managers and the rest of us steer clear of performance reviews, as well. My suggestion does run counter to widespread practice. But Im not alone in questioning performance evaluations and rankings. W. Edwards Deming identified performance appraisal as one of the Seven Deadly Diseases of Management. Deming is clear and concise in stating the negative effects of performance appraisals and merit ratings: It nourishes short-term performance, annihilates long-term planning, builds fear, demolishes teamwork, nourishes rivalry and politics. *Deming p. 102+ More recently, Stanford University professors Robert Sutton and Jeffrey Pfeffer combed through data and studies related to widespread management practices. They reference a survey of 200 human resource professionals which reports that forced rankinga common component of performance appraisal programs results in lower productivity, inequity and skepticism, negative effects on employee engagement, reduced collaboration, and damage to morale and mistrust of leadership. *Pfeffer and Sutton, p. 107+ They go on to describe the damage done by merit pay plans.

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In short, the evidence supporting the benefits of rating, ranking, and then tying pay to the ratingthe stuff of performance evaluationsis thin to none. Deming had it right.

My readers did raise legitimate concerns: Without performance appraisals. How do we determine how much to pay people? How do we know who to promote or fire? How do people know they need to improve? Organizations do need answers to these questions. Performance appraisals and pay-for-performance (PFP) arent the only way to answer those questions, or even the best way. In this column, Ill walk through some alternatives to the prevailing practice.

How do we determine how much to pay people?

One reader pointed out, people get their salaries on an individual basis. True. Tying annual salary actions to ratings and rankings is just one way to determine what those actions should be. There are other rational and non-capricious ways to adjust individual salaries: Adjust based on the cost of living so that the buying power of salaries keeps pace with economic conditions. Allow all employees to share in the companys success through profit sharing. Adjust salaries based on the current market rate for skills and roles.

Another reader posed the rhetorical question, So all certified scrum masters earn the same amount? Performance is a function of the person and the environment. Systems thinking and lean production at Toyota tell us that gains in productivity come from inspecting and adapting the system, not from focusing on individual performance. An improvement mindset, thinking for the long term, eliminating waste, respect for people, and removing impediments bring high performance. Still, there are people who are clearly outstanding performers (both outstandingly good and outstandingly poor), who outperform the limits of the system. Once again, pay increases based on performance ratings is only one way to accomplish the goal of recognizing outstanding individuals.

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Peopleand their jobsevolve over time. ScrumMaster may start off coaching a team on the basics of Scrum, and over time, take a bigger role working on systemic issues that hinder the team. Or he may develop exceptional coaching skills. If someone is truly performing above others within the same job it may be time to promote him or reclassify his job so that its at a higher pay level.

How do we know who to promote or fire?

Other readers asked, Without yearly ratings, how will we know who to promote? Looking at how a person has evolved in his job and the level of responsibilities is one way. Another option is to treat promotions as seriously as hiring: create a rigorous internal application process that involves interviews and auditions. The truth is that many outstanding performers arent doing it for the money. They stay for love of their work and are most rewarded by new and challenging assignments. The reverse question came up, too: How will we know who to fire? It doesnt take a rating to fire someone. If someone isnt doing his job, theres no reason to keep him on the payroll until the annual review cycle comes around. A ScrumMaster will know when someone isnt doing his job or is making it harder for other people to do their jobs. He can coach the person, or if coaching is not or is no longer an option, work with a functional manager to move the person off the team. (Some teams manage their own team membership, and people who need to go move off the team, without a managers involvement.) And, poor performers will hang onto a job even if they arent receiving raises. They wont be improving, though. Theyll be harboring resentment and telling themselves that they really are above average. As with identifying outstanding good performers, consider the environment, as well as individual skills. Ask whether someone is truly underperforming, or whether the system is limiting his performance. I spoke with a new agile coach recently who was beginning to doubt he was in the right role. I just cant get this group moving in the right direction, he said. Maybe I should go back to being a developer. When he described the situation to me in detail, I began to wonder if any new coach could move this group in the right direction. The project has several stakeholders who disagree about the direction of product. The team is split into three factions, which swirl around a long standing conflict between two team members. One member of the team is skeptical of agile methods and baits the coach at every opportunity. When hes not baiting the coach, hes working to bring other team members to his point of view. The new coach is struggling

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in his job. The person who is supposed to mentor him is missing in action. I dont think firing himor giving him a low ratingis the answer. It would be more fruitful (and more difficult) to look at the system that assigned a brand new coach to this project and failed to provide support.

How do people know they need to improve?

How will people know they need to improve if they dont have an annual review? The answer to this question is simple (though not easy): their ScrumMaster will tell them. A letter or number rating or ranking is an evaluation. It may tell someone he needs to improve, but it doesnt tell him what specifically he needs to do differently. In order to improve, people need clear behavioral descriptions and they need to understand the impact of behavior or results. Some managers provide specific examples along with the letter or number evaluation grade. However, most humans resist labels, so they may be busy with the emotional response to the rating, and not ready to fully listen as the manger gives examples. Scrum runs on frequent feedback loops. That includes feedback to people on their work interactions and work results. Feedback on an annual cycle is worse than useless and is totally out of congruence with agile methods. When organizations adopt Scrum, sooner or later they bump up against the problems caused by asking people to work collaboratively and then measuring and rewarding them for individual effort. But Scrum is all about making issues visible, so we can inspect and adapt. The time has come look at the evidence about pay and appraisal systems. We may want to succumb to the allure of the merit pay words, but performance appraisals are a barrier to delivering valuable software; its time for them to go.

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CHAPTER-VI RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

When we talk of Research Methodology, we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using so that research results are capable of being evaluated either by research himself or by others.

As the title of the project suggests the project is about the study of the performance appraisal in the company. So my objective is that to know that how the working appraisal should be maintained in the company & which method is used in this.

Performance Appraisal has been considered as a most significant and indispensable tool for every organization for the information it provides is highly useful in making decisions regarding various aspects such as promotions and merit increases. Thus, an attempt was made to study the Performance Technique in BRITANNIA.

SAMPLE SIZE

The sample size refers to the no. of employees selected from the co. to constitute a sample. The sample size used for study includes 80 employees from the company.

METHOD OF SAMPLING

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The process employed for the sample was Random Sampling. Random Sampling is the sampling in which every person has an equal opportunity of being selected in the sample. The method is more representative of the persons as there are no personal biases.

Sample Size: The sample size taken is 80 in which 20 were executives and 60 were supervisors and workers Method of Sampling: Random Sampling Area of work: Performance Appraisal

Method of Data collection:Primary and Secondary.

PRIMARY DATA
Primary data is that data, which is collected for the first time & thus happens to be original in character. The primary source to carry out study is:a) Questionnaire b) Schedule c) Observation d) Interview

SECONDARY DATA
Secondary data are those which have already been collected by someone else and have already been passed through the statistical process. Acc. to Dessel-Data collected by other persons

All the data has been collected from internal source, that includes :a) Magazines

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b) Books c) Websites d) Reports e) Files f) Staff

SCOPE OF THE STUDY

It provides useful information for research and also introduces the researcher with the practical problem faced in the company. This research is very important for any Human Resource student to gain a real time experience. I have done my research at Britannia in Performance Appraisal. There are many departments in Britannia but my research work is confined with Human Resource department where I studied that how the Performance Appraisal method should be done.

TOOLS FOR DATA COLLECTION

The data was collected by me from both the sources for my Dessertation report. In primary method of data collection personal interviews was used and in case of secondary ways of data collection of magazines and books of Britannia were used.

LIMITATION TO THE STUDY

Following are the limitations of this project: While going through the research I had faced a bit problem like frequent visits were required. Workers and supervisors were not immediately responding. Due to the tight schedule of managers, there are some difficulties for me to get co-operation and attention. Extra large unit to cover. Large no. of employees in the company, more than 2000, not possible to cover entire lot.

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CHAPTER-VII ANALYSIS & FINDINGS

ANALYSIS & FINDINGS
In BIL, I Came to Know about the appraisal method of an employee. During my visit at BIL, I found that it works under the guidance of its head office.

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 The Appraisal method of an employee was totally based up on the proper test and interview of an employee. I also found that their appraisal Method was very good. The time period for appraisal is based on quarterly basis. Besides all the above findings I also found that the BIL is the well reputed, well managed and the well built company. The Management of company is very Hardworking in nature and takes care about the well being of their staff and workers. They are provided with all the required facilities. They are goal oriented and work as a team in a whole and the main emphasis of the company is on the quality products manufacturing. I also found that in the last month of the financial year highest production and the highest dispatch was made.

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CHAPTER-VIII
RECOMMENDATIONS
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RECOMMENDATIONS
After making a Study on the topic of Performance Appraisal system in BIL, I Would Suggest that the following Points should be implemented:-

Give the employee a few days notice of the discussion and its purpose.

Prepare notes and use the completed performance appraisal form as a discussion guide so that each important topic will be covered.

Be ready to suggest specific developmental activities suitable to each employees needs.

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They would suggest changes in job analysis & standards, if necessary.

There should be no negative ratings because it affects interpersonal relations and industrial relations systems.

The feedback must be positive, corrective on observed behavior and facts and not on inferences, assumptions or what one has heard from others.

The final performance rating must be done in a fair manner.

Appraisal tools must be relate to the employees satisfaction.

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CHAPTER-IX CONCLUSION

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CONCLUSION
At last it is concluded that the company as a whole is a well branded company. The goodwill of the company is very high.
After having a study of the present system of Performance Appraisal system in Britannia Industries Limited Rudrapur I have come up with a conclusion that Britannia industries Limited employees are aware of the system of Performance Appraisal being followed in their organisation i.e. KRA(staff assessment form). Most of the employees hold the view that the system of KRA is effective to evaluate and truly reflects their roles and activity. About the company it is derived that the company is very well managed and its management is highly devoted towards the quality of their products and the well being of their staff members and workers. Staff members and workers are also work very enthusiastically and complete every assignment on time. Every one is very supportive in nature and cooperate each other. They work effectively and efficiently to achieve the company goals and the individual goals. This is the reason that the company is achieving commanding heights and the last month of the financial year 2009-2010 made the records of highest production and highest dispatch and BRITANNIA as a whole has achieved the Second position in the FMCG sector in India.

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CHAPTER-X QUESTIONNAIRE
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Performance appraisal questionnaire:I/ Employee information 1. Employee name: 2. Position: 3. Department: 4. Start working from: II/ Rating scales Yes / No / NA III/ Appraisal questions 1. Are u satisfied with the methods of Performance Appraisal? 2. Quality of personal objective setting is poor.
3. Which method of performance appraisal is mostly used in your company?

4. Ratings are sometimes seen as based on subjective judgments?

5-IS Appraisal method of an employee totally based up on the proper test and interview of an employee?

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1.Are u satisfied with the methods of Performance Appraisal? (a) Yes (b)No Ans:

yes no

Interpretation:65% of employees are satisfied with the methods used by company for performance appraisal,but 35% of employees are not satisfied with the methods used in performance appraisal. 2. Quality of personnel objective setting is poor ?
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(a) Yes (b)No Ans:

yes no

Interpretation:55% of employees think that quality for setting personnel objective is poor where as 45%of employees think its not so.

3.Which method of performance appraisal is mostly used in your company?

(a) Individual Method (b) multiple-person evaluation method (c) others Ans:

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Individual Method multiple-person evaluation method others

Interpretation:Multipe person evaluation method is mostly used according to 5o% of employees,40% says individual method is used and 10% says other methods are used.

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4. Ratings are sometimes seen as based on subjective judgments. (a) Yes (b) No Ans:

yes no

Interpretation:40% employees says,yes that ratings are sometimes seen to be based on subjective judgment,where as 60% of employees says no.

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5-IS Appraisal method of an employee totally based up on the proper test and interview of an employee? (a) Yes (b) No Ans:

yes no

Interpretation:70% of employees says that appraisal method is totally based up no proper test and interview but 30%of employees does not agree with this.
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CHAPTER-XI BIBLIOGRAPHY

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BIBLIOGRAPHY
Websites
www.britindia.com www.sidcul.com www.google.com

Books PERSONAL MANAGEMENT----------- C.B. MAMORIA ESSENTIALS OF HUMAN RESOURSE MANAGEMENT AND INDUSTRIAL RELATIONS ------------ P.SUBA RAO
MANAGING HUMAN RESOURSE------ R.S. DWIVEDI

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