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SUMMER TRAINING PROJECT REPORT
ON
PERFORMANCE APPRAISAL
OF BRITANNIA INDUSTRIES LIMITED
SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE DEGREE OF MASTER OF
BUSINESS ADMINISTRATION
(2006-08)
UTTARAKHAND TECHNICALUNIVERSITY, DEHRADUN
SUBMITTED BY: SUBMITTED TO:NEETU SINGH Mrs. SHANU KHATRI
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CERTIFICATE
I have the pleasure in certifying that Ms. Neetu singh is a bonafide student of III
semester of the Masters Degree in Business Administration of Institute of
Management Studies, Dehradun under Class ID No. MB06008
She has completed her Summer Training Project work entitled Performance
Appraisal under my guidance.
I certify that this is his original effort and has not been copied from any other source.
This project has also not been submitted in any other university for the purpose of
award of nay degree.
This project fulfills the requirement of the curriculum prescribed by Uttarakhand
Technical University, Dehradun for the said course.
Signature:
Name of the Guide: MR. S.K Mathur
Date: 10TH
AUGUST, 2007
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ACKNOWLEDGEMENT
I readily acknowledge my indebt ness to my parents whose support, dedication and honest efforts
have given me an immense help in doing this project.
It gives me immense pleasure to express my deep sense of gratitude and appreciation to my external
guides Mr. S.K. Mathur, Mr. Pandey, Mr. Mahak Singh, Mr. Deepak, and Mr. Dubey whose
constant encouragement and valuable suggestion gave back bone support in completing this project.
I take the opportunity to thanks to Mrs. Shanu Khatri for motivating, encouraging, guiding and
supporting at every step and sparing his valuable time for me.
Last but not the least I record my sincere thanks to all beloved and respectable persons who helped
me and could find any separate mention.
Above all I praise GOD the most beneficial, the most merciful that I have been able to complete
my training project successfully.
NEETU SINGH
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DECLARATION
I NEETU SINGH student of MBA III sem. of IMS DEHRADUN hereby declare that this
project report PERFORMANCE APPRAISALis written and submitted by me under the guidance of
Mrs. Shanu Khatriis 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.
NEETU SINGH
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CONTENT
ACKNOWLEGEMENT
DECLARATION
Chapter-1: INTRODUCTION ABOUT BRITANNIA
Company overview Company Profile Board of Directors Management team Mile stones
History of Biscuits Activities of the companyPANTNAGAR UNIT
IntroductionCompany ProfileSWOT Analysis5S of BILDepartment of the companySafety policy of the company
CHAPTER-2: RESEARCH METHODOLOGY
Sample SizeMethod of SamplingArea of workMethod of Data collectionObjective of the studyPeriod of the studyScope of the studyLimitation of the studySources of data collection
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CHAPTER-3: PERFORMANCE APPRAISAL
Definition of PerformanceTrends, Objectives,& Features of Performance AppraisalProcess & Methods of Performance Appraisal360 Performance AppraisalKey elements of Performance AppraisalProblems of Performance AppraisalProcess of Performance AppraisalProcess of Appraisal in Britannia Industries Limited
CHAPTER-4: ANALYSIS & FINDINGS
CHAPTER-5: RECOMMENDATIONS
CHAPTER-6: CONCLUSION
CHAPTER-7: BIBLIOGRAPHY
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CHAPTER-I
INTRODUCTION
ABOUT
THE COMPANY
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COMPANY OVERVIEW
The story of one of Indias favorite brands reads almost like a fairy tale. Once upon a time, in
1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with
an initial investment of Rs.295. The company we all know as Britannia today.
The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of
electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez
Canal to use imported gas ovens. Britannias business was flourishing. But, more importantly, Britannia
was acquiring a reputation for quality and value. As a result, during the tragic World War II, the
Government reposed its trust in Britannia by contracting it to supply large quantities of service biscuits
to the armed forces.
As time moved on, the biscuit market continued to grow and Britannia grew along with it. In
1975, the Britannia Biscuit Company took over the distribution of biscuits from Parrys who till now
distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed
60%, firmly establishing the Indian ness of the firm. The following year, Britannia Biscuit Company was
re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs.100crores
revenue mark.
On the operations front, the company was making equally dynamic strides. In 1992, it celebrated
its Platinum Jubilee. In 1997, the company unveiled its new corporate identity Eat Healthy, Think
Better and made its first foray into the dairy products market. In 1999, the Britannia Khao, World Cup
Jao promotion further fortified the affinity consumers had with Brand Britannia.
Britannia strode into the 21stCentury as one of Indias biggest brands and the pre-eminent food brand of
the country. It was equally recognized for its innovative
Approach to products and marketing: the Lagaan Match was voted Indias most successful promotiona
activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became Indias most
successful product launch. In 2002, Britannias New Business Division formed a joint
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Venture with Fonterra, the worlds second largest Dairy Company, and Britannia New Zealand Foods Pvt.
Ltd. Was born. In recognition of its vision and accelerating graph, Forbes Global rated Britannia One
amongst the Top 200 Small Companies of the World, and The Economic Times pegged Britannia Indias
2nd
Most Trusted Brand.
Today, more than a century after those tentative first steps, Britannias fairy tale is not only going strong
but blazing new standards, and that miniscule initial investment has grown by leaps and bounds to crores
of rupees in wealth for Britannias shareholders. The companys offerings are spread across the spectrum
with products ranging from the healthy and economical Tiger biscuits to the more lifestyle-oriented
Milkman Cheese. Having succeeded in garnering the trust of almost one-third of Indias one billion
populations and a strong management at the helm means Britannia will continue to dream big on its path
of innovation and quality. And millions of consumers will favor the results, happily ever after.
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COMPANY PROFILE
Registered office of Britannia Industries Limited is situated in West Bengal. This company is registered
under Companies Act, 1956.
Britannia biscuits Company Limited was originally incorporated on 21st
March 1918under Indian
Companies Act under the name The Britannia Biscuits Company Limited under section 21 of
Companies Act and approval of Central Government.
The main aim of the Company is to make available good and improved quality biscuits to each and every
part of the country.
The Company is perusing for ISO14001certificate and it is ISO 22000 certified.
The Company was established at the Pantnagar branch on 21
st
May 2005 mainly for production with aproduction coverage area of approximately 20 acres.
The control of management is through Board of Directors.
The Companys head and registered office and works place are located at the below mentioned addresses:
Registered & Head office : Britannia Industries Limited
5/1A, Hungerford Street
Kolkata- 700017
Works Place :(a) Britannia Industries Limited
33, Industrial Area
Lawrence Road,
Delhi- 110035
(b) Britannia Industries Limited
Plot No.1, Sector- 1
Integrated Industrial Estate
Pantnagar, Rudrapur- 263153
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(c) Britannia Industries Limited
15, Taratola road,
Kolkata700088
(d) Britannia Industries Limited
MTH road, Padi
Chennai600050
(e) Britannia Industries Limited
Ready road (East), Mazagaon,
Mumbai- 400010
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BOARD OF DIRECTORS
NAME DESIGNATIONMr. Nusli N Wadia Chairman
Ms. Vinita Bali Managing Director
Mr. George Casala Director
Mr. Keki Dadiseth Director
Mr. Avijit Deb Director
Mr. Stephan Gerlich Director
Mr. A K Hirjee Director
Mr. Nimesh N Kampani Director
Mr. S. S Kelkar Director
Dr. Vijay Kelkar Director
Mr. Pratap Khanna Director
Mr. Jeh Wadia Director
Mr. Francois Xavier Roger Director
Field Marshall Sam Manekshaw Director Emeritus
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MANAGEMENT TEAM
RICHA ARORA General Manager Marketing
AMITAVA MUKHERJEE National Sales ManagerPURNENDU ROY Head of R&D
V. MAD Company Secretary & Head of Legal
VINOD MENON Head of Internal Audit & Projects
GAUTAM BANERJEE General ManagerMaterials
ASHOK KUMAR GUPTA General ManagerAccounts Planning
SAROJ KUMAR CHAKRABORTY General Manager & Head of Technical
Dr. K.N. SHASHIKANTH Corporate Quality Assurance Manager
TS PURUSHOTHAMAN Corporate HeadIT & Systems
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MILE STONES
1892The GenesisBritannia established with an investment of Rs. 295 in Kolkata
1910Advent of electricity sees operations mechanized
1921Imported 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
1975Britannia Biscuit Company takes over biscuit distribution from Parrys
1978Public issueIndian shareholding crosses 60%
1979Re-christened Britannia Industries Ltd. (BIL)
1983Sales cross Rs.100crore
1989The Executive Office relocated to Bangalore
1992BIL celebrates its Platinum Jubilee
1993Wadia Group acquires stake in ABIL, UK and becomes an equal partner with
Group Danone in BIL
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1994Volumes cross 1,00,000 tons of biscuits
1997Re-birthnew corporate identity Eat Healthy, Think Better leads to new
mission: Make every third Indian a Britannia consumer
BIL enters the dairy products market
1999Britannia Khao World Cup Jao a major success! Profit up by 37%
2000 Forbes Global RankingBritannia among Top 300 small companies
2001BIL 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
2002BIL 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 MagicWinner of the World star, Asia star and India star award for
packaging
2003Treat Duet- most successful launch of the year
Britannia Khao World Cup Jao rocks the consumer lives yet again
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2004Britannia accorded the status of being a Super brand
Volumes cross 3,00,000 tons of biscuits
Good Day adds a new variantCoconutin its range
2005Re-birth of TigerSwasth 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 Pepper
Chakkar
THE ORIGIN OF EAT HEALTHY THINK BETTER
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Britannia the biscuit leader with a history-has withstood the tests of time. Part of the reason for its
success has been its ability to resonate with the changes in consumer needs-needs that have varied
significantly across its 100+ year epoch. With consumer democracy reaching new levels, the one common
thread to emerge in recent times has been the shift in lifestyles and a corresponding awareness of health.
People are increasingly becoming conscious of dietary care and its correlation to wellness and matching
the new pace to their lives with improved nutritional and dietary habits. This new awareness has seen
consumers seeking foods that complement their lifestyles while offering convenience, variety and
economy, over and above health and nutrition.
Britannia saw the writing on the wall. Its Swasth Khao Tan Man Jagao (Eat Healthy, ThinkBetter) re-
position directly addressed this new trend by promising the new generation a healthy and nutritious
alternative-that was also delightful and tasty.
Thus, the new logo was born, encapsulating the core essence of Britanniahealthy, nutritious, and
optimisticand combining it with a delightful product range to offer variety and choice to consumers.
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OURPRODUCTS
Nutri Choice Sugar Out
Sounds like yesterday when people commented that healthy foods
meant compromising on the taste. Nutri Choice Sugar Out is the
most novel product range to have been introduced in the market. The
product is not just sweet but tastes great, and yet contains no added
sugar.
This is because Nutri Choice Sugar Out is sweetened with
Sucralose, derived from sugar, which provides the same sweetness
as any other biscuit, without the added calories of sugar.
This range is available in 3 delicious variants namely Lifetime,
Chocolate cream, and Orange cream, targeted towards all health
sensitive people. It is also relevant for consumers with sugar related
ailments.
We are sure that you will be pleasantly delighted with its great
taste and equally surprised to know that it has no added sugar.
Dont be taken for a ride when you read Sugar Free label on
many biscuit packs marketed in India or abroad. Even with 100%
no-added sugar, wheat-cereals in biscuits have their own natural
sugar content. Britannia has chosen to represent these biscuits with
No Added Sugar claim, as there is no added sugar in the
processing of Nutri Choice Sugar out.
Nutri Choice Digestive Biscuit
Nothing can be more difficult than making small efforts in our
daily life towards healthy and active living. 24/7 we are engrossed in
our busy schedules; skipping meals, missing walks, along with
inadequate sleep and frequently eating-out, all take a heavy toll on
our health.
At least with the new and improvedNutri Choice Digestive
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Biscuit, we have one less thing to worry about. Made with 50%
whole-wheat and packed with added fiber (10% of our daily dietary
needs), these delightfully tasty biscuits are amongst your healthiest
bites of the day.
In your next visit to a shop just look out for its Golden-green
international carton pack.
Try one and youll know that youve made one smart choice
Nutri choice.
50-50 Jodi Banao Offer
With a brand name like 50-50, can the product be anything but
fun. And so to enhance this Masti 50-50 has now brought the Jodi
Banao offer. With assured gifts like Friendship Bands and Mobile
Slings which are a craze with the youth, and grand prizes like Mobile
Phones, Laptops, Sunglasses, Wrist Watches and a Trip to Paris, 50-
50 has brought in all the elements that keep you engaged in fun. And
all these prizes with the unique taste experience of 50-50
products.50-50 ke saath Apni Jodi Banao
Treat Fruit Rollz
All kids who have relished the yummy creamy treasures of
Britannia Treat in exciting flavors, have yet another reason to
celebrate! Britannia Treat launches the amazingly yummy Treat
Fruit Rollz!! These tasty soft rolls are filled with real fruits and
provide a healthy yet mouth-watering treat to the kids. Fruit Rollz
comes in four masti fruit flavorsJuicy Apple, Strawberry Surprise,
Tangy Orange and Delicious Dates!
Want to know a little secret? They make the best tiffin treats! So
during snack time what better than to munch on the delicious and
healthy Fruit Rollz and discover the yummy fruit flavor from within
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the shells. Keeping up with Britannias platform of taste bhi, health
bhi, Fruit Rollz is indeed a yummy snacking option for kids, while
keeping the Moms assured about the goodness provided by the fruit
filling.
So go on and treat yourself to the lip-smacking snack!
New Britannia Milk Bikis
Milk Bikis, the favorite growth partner of Kids, now brings
greater value and delight to all with its new product and pack design.
Recently re-launched in its existing Southern & Eastern markets, and
extended across India, the new Milk Bikis is all set to add excitement
and appeal to nutritious food. Whoever said that good food needs
to look dull and boring, will just have to take a look at Milk Bikis.
With a unique and attractive honeycomb design and an enhanced
product experience, the new biscuit prompts the Kids will love it
reaction amongst mothers. The milk goodness in the recipe is now
enhanced with SMART NUTRIENTS4 vital vitamins, iron and
iodine, proven to aid mental and physical development in growing
kids. The premium packaging, besides appealing to kids, also
ensures that the biscuits remain fresh and crisp.
So, whether its breakfast time or snack time at school, rest assured
that kids will look forward to munching these crunchy, milky
biscuits which even helps in their development. And yes, adults
wont be far behind in reaching out for a pack!
Britannia Marie Gold Doubles
Everybodys favorite Marie biscuit now comes in a completelynew avatar! Recently launched in Tamil Nadu, Britannia Marie Gold
Doubles is all about doubling expectations and experience.
Naturally, everything about it is new and exciting. This special
variant of Marie, through a patented production process, offers three
delicious layers in a new flavor conceptwith the same old
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crispiness and a subtle new taste. The shape of the new Marie Gold
Doubles biscuit is completely altered and nowhere resembles the
classic round Marie biscuit. The premium packaging is also a
breakthrough design with an outer sleeve and unique shape. So
whether people favor the biscuit themselves or gift it, Britannia
Marie Gold Doubles is definitely double the enjoyment!
Britannia 50-50 Pepper Chakkar
The launch of the latest 50-50 variant left everybody guessing
What it eez? From TV ads, radio, outdoor and in-store display
materials to events, a website and SMS and email blasts, traditional
and new media were blended synergistically to create excitement and
curiosity about the unique taste of the biscuit. The tangy and
distinctive pepper flavored biscuit, thats thin and crispy and more
like a snack, caught the imagination of a younger audience craving
something to nibble on. The 50-50 Pepper Chakkar launch is truly a
case of leveraging the marketing mix to best advantage.
More Power to Britannia Treat!In a one-of-its-kind tie-up with the immensely popular kids show
Power Rangers on Toon Disney, Britannia Treat created a huge
buzz amongst kids. The brand activity targeted children in three
citiesDelhi, Mumbai and Bangaloreat various touchpoints such
as schools, malls, residential colonies and amusement parks. The
idea behind it was to bring fun and adventure into the Britannia Treat
brand of cream biscuits with the help of a unique new collectible toy
the Power Rangers Shooter. These exciting new toys were
available with packs of Britannia Treat, and kids had to collect them
to solve the Power Rangers contest. An eye-catching float,
specially designed to promote this contest, was moved around these
cites and became the pulse point of Shooter Mania. At the end of
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10 days, the activity touched 225 schools across the three cities and
reached more than 50,000 kidsand got every kid talking about
Britannia Treat.
Britannia Tigers Alti Palti Offer for Children
Alti Palti was an exciting offer to go with the most popular biscuit
in the countryBritannia Tiger. Children love lenticular or 3D
picture collections and Tiger biscuits gave them just that. With the
purchase of Britannia Tiger, kids collected lenticular gifts such as
rulers, book labels, bag tags and stickers. Each gift had the animated
Tiger mascot on it doing crazy things like skateboarding, cycling,
dancing and more.
As part of the promotion, a life-size Tiger mascot visited select
schools and distributed the 3D collection to the lucky children. They
even got to photograph themselves with their favorite Tiger! This
exciting offer ran at retail stores across the country. Buzz was
created with in-store display materials like attractive dispensers and
branded posters all based on the Alti Palti theme.
The Alti Palti craze caught on like wildfire amongst the kids just
like Britannia Tiger biscuits!
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ANNUAL PERFORMANCE (FY 2006)
Britannias gross sales turnover increased to Rs18179 million in 2005-06 from Rs16,154 million in the
previous year, registering a growth of 13%. Operating profit at Rs1,763 million increased by 7%, profitbefore tax and exceptional items at Rs.1,958 million declined by 19% against 2004-05 , impacted by the
profit on sale of long term investments that accrued to other income last year.
The Company achieved these results despite significant increases in input cost, particularly sugar, fuel and
oils, coupled with aggressive pricing in the industry. Your Companys focused initiatives on
commercializing market place opportunities, supply chain efficiencies and overall cost management
resulted in its top line growth and profitability. Operating margin at 10.3% in 2005-06 compared with
10.9% in the previous year was impacted by the inflation in input costs
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Despite stiff competition, your Company stabilized and held its overall market share at 31.7% in volume
and 38.8% in value for the last year.
Exports turnover during the year was Rs111.71 million against Rs71.65 million in 2004-05, a growth of
56%.
The major exceptional items during the year were:
Compensation and amortization of VRS costsRs.111 million Profit on sale of propertiesRs.117 million
After considering all the exceptional items, Profit before tax and Net Profit works out to Rs.2,007
million and Rs.1,464 million respectively. Earnings per Share are Rs.59.96 for 2005-06
Britannia believes in giving the best value to consumers through its brands and constantly looks for
ways to enhance the overall consumer experience. 2005-06 witnessed a boost in product
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innovation and renovation and as many as six new launches were executed and well received in the
market. The Companys largest brand Tiger, was successfully renovated with the re-staging of Tiger
Glucose and the fortification of Tiger Creams.
New variants were introduced in Treat Duet and Pepper Chakkar was launched under the 50:50 brand
umbrellas. The Compay also introduced Marie Gold Doubles in a totally new to market format and a new
range Greetings an assortment of biscuits was introduced during Diwali, targeted at the large gifting
opportunity.
The Company also seized the growing opportunity in adjacent categories like Cakes and the launch of
Cup Cakes was the first step in strengthening this business.
Additionally, new packaging formats were introduced in several markets to tap into attractive price
points from consumers perspective. Britannia will continue to invest in its brands and deliver growth
through an emphasis on brand activation, anchored by new product launches.
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HISTORY OF BISCITS
Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves
munching on biscuits, but do they know how biscuits began? The history ofbiscuits can be traced back to a recipe created by the Roman chef Apicius, in
which a thick paste of fine wheat flour was boiled and spread out on a
plate. When it had dried and hardened it was cut up and then fried until
crisp, then served with honey and pepper.
The word Biscuit is derived from the Latin words Bis (meaning
twice) and Coctus (meaning cooked or baked). The word Biscotti is
also the generic term for cookies in Italian. Back then, biscuits were
unleavened, hard and thin wafers which, because of their low water content,
were ideal food to store.
As people started to explore the globe, biscuits became the ideal
traveling food since they stayed fresh for long periods. The seafaring age,
thus, witnessed the boom of biscuits when these were sealed in airtight
containers to last for months at a time. Hard track biscuits (earliest version
of the biscotti and present-day crackers) were part of the staple diet of
English and American sailors for many centuries. In fact, the countries
which led this seafaring charge, such as those in Western Europe, are the
ones where biscuits are most popular even today. Biscotti is said to have
been a favorite of Christopher Columbus who discovered America!
Making good biscuits is quite an art, and history bears testimony to that.
During the 17th and 18th Centuries in Europe, baking was a carefully
controlled profession, managed through a series of guilds or professional
associations. To become a baker, one had to complete years of
apprenticeshipworking through the ranks of apprentice, journeyman, and
finally master baker. Not only this, the amount and quality of biscuits baked
were also carefully monitored.
The English, Scotch and Dutch immigrants originally brought the first
cookies to the United States and they were called teacakes. They were often
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flavored with nothing more than the finest butter, sometimes with the
addition of a few drops of rose water. Cookies in America were also called
by such names as jumbles, plunkets and cry babies.
As technology improved during the Industrial Revolution in the 19th
century, the price of sugar and flour dropped. Chemical leavening agents,
such as baking soda, became available and a profusion of cookie recipes
occurred. This led to the development of manufactured cookies.
Interestingly, as time has passed and despite more varieties becoming
available, the essential ingredients of biscuits havent changed like soft
wheat flour (which contains less protein than the flour used to bake bread)
sugar, and fats, such as butter and oil. Today, though they are known by
different names the world over, people agree on one thing nothing beats
the biscuit!
Some interesting facts on the origin of other forms of biscuits:
The recipe for oval shaped cookies (that are also known as boudoir biscuits,
sponge biscuits, sponge fingers, Naples biscuits and Savoy biscuits) has
changed little in 900 years and dates back to the house of Savoy in the 11th
century France. Peter the Great of Russia seems to have enjoyed an oval-shaped cookie called lady fingers when visiting Louis XV of France.
The macaroona small round cookie with crisp crust and a soft interior
seems to have originated in an Italian monastery in 1792 during the French
Revolution.
SPRING-uhr-lee, have been traditional Christmas cookies in Austria and
Bavaria for centuries. They are made from a simple egg, flour and sugar
dough and are usually rectangular in shape. These cookies are made with a
leavening agent called ammonium carbonate and baking ammonia.
The inspiration for fortune cookies dates back to the 12 th and 13th
Centuries, when Chinese soldiers slipped rice paper messages into moon
cakes to help co-ordinate their defense against Mongolian invaders.
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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 BULBsBritannia Universal
Leadership Behaviors) :
Integrity 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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ACTIVITIES OF THE COMPANY
Sales
Marketing
Research and Development
Quality Assurance
Exports
Technical & Operations
Finance and IT
Human Resources & Legal
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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 atDum 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 inparticular 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 othernegotiable instruments etc.
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INTRODUCTION
ABOUT
PANTNAGAR UNIT
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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.
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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COMPANY PROFILE
1) Bhumi poojan of Britannia industries limited was on 20 th 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 Ia) Marigoldb) Good day butterc) Good day Pista badam
2) Plant IIa) good day cashew
3) Plant IIIa) fifty- fifty (50-50)
i) 50-50ii) 50-50 Maska Chaskaiii) 50-50 pepper chakker
4) Plant IVa) Chocolate treat bourbonb) 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.
STORAGE AND USAGE OF RAW MATERIAL
There are many types of raw materials which are used in Britannia for the production of different types of
biscuits. Some of them are wheat flour, sugar, butter, skimmed milk powder, cashew, salt, different
types of fats which includes different oils, sodium bi carbonate, ammonium bi carbonate etc.
Now the question comes of their storage. As we can see that some of the materials which are
used in Britannia industries need cold storage while some needs normal storage. So on the basis of the
need of different raw materials they are stored in different storage places. The materials which are stored
in cold storage are at the temperature of 5 degree Celsius while the materials which need normal storage
are stored at the normal temperature. There classification of some of the raw materials is as follows:
Normal storage raw material
Wheat flour Sugar
Ammonia Skimmed milk powder Palm oil Salt
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Cold storage raw material
Butter Cashew Essences Skimmed milk powder Condensed milk
HOW THE PRODUCTION PLAN COMES?
The production plan comes directly from companys head office which is situated at Bangalore every month
The plan consists of:
Variety name How much production to do for the particular variety. Total production in tons. Area where varieties will be dispatched along with quantity. Dispatch order.
THINGS YOU DONT KNOW ABOUT BRITANNIA
Britannia products are sold in over two million outlets, reaching millions of customers who buyapproximately 2.4 billion packets each year.
A small army keeps Britannia going over 180 stock keeping units, 3000 employees, over 2200authorized whole sellers and 56 depots.
The number of biscuits produced by Britannia in one year would be the equivalent of one pack oftwelve 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 tallerthan Mount Everest.
Britannia has had a long association with cricket and cricket players. Nearly half the members of thecurrent Indian cricket team serve as its brand ambassadors.
Launched in 1997, Tiger became the largest selling Britannia biscuit brand in just 4 months of launchIt 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 thatthe 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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5 SOF BRITANNIA INDUSTRIES LIMITED
SEIR I
It is sorting between waited and unwanted things in a selected area, region or domain.
SEITON
It means a place for everything and everything in its place.
SEISO
It deals with the job of thoroughly cleaning the workplace .
SEIKETSO
It means standardization which is needed to maintain SEIRI, SEITON and SEISO. It leads to use of visual
management to avoid mistakes.
SHITSUKE
It means discipline which is called for strict adherence to a system form our present unsystematic way .
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HACCP CONCEPT
Identification of potential food safety problems.
Determination of now and where these can be prevented. Description of what to do and training of the personnel. Implementation and recording.
HACCP PRINCIPLES
Conduct a hazard analysis Determine the HACCPs Establish Critical Limit (s) Establish a monitoring system. Establish corrective actions. Establish verification procedures Establish documentation.
HACCP
A structured application of basic rules for preventing food borne diseases.
WHY HACCP
Need for hygiene requirements (control measures) specific to food and process and theirassociated potential hazards.
Prioritizing control measures.
Need for ensuring that essential measures were correctly implemented and carried out. Need for planning of corrective measures in case of failure. Need for monitoring the process parameters to be able to control safety at all times.
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UNIT HEAD
Human resource
Officers
Accounts
Officers
Production
Officers
Purchase
Officers
Maintenance
Officers
Quality
Officers
Departments/ hierarchy of the company
There are mainly six departments of the company. These are as follows:
HEADS OF DEPARTMENTS OF THE COMPANY
Unit Head : Mr. Manas Dutta
Finance : Mr. Mudit Agarwal
Human Resource : Mr. S.K. Mathur
Production : Mr. Mahak Singh
Purchase : Mr. Abhijeet Dutta
Engineering : Mr. Neeraj Agarwal
Standards : Mr. Dhananjay
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QUALITY AND FOODSAFETY POLICY OF THE COMPANY
The purpose of this policy is to ensure that we win through quality in the market place. This means that
we must do every thing to ensure consistent delivery of quality products to the customers every time.
Our commitment to quality and food safety will be reflected in every action and is non
negligible. That means:
All ingredients used in our factories always meet specified quality standards. All factories and depots maintain high standard of hygiene which ensures that our products are healthy
and safe for consumption. Our manufacturing products always ensure delivery of products consistent with product and pack
specifications which are free from contamination.
Our supply chain practices enable delivery of fresh products to our customers.
We will fulfill these objectives through:
Investing in appropriate technology and equipping our factories adequately. Working collaborates with our business partners to create win winbusiness outcomes. Developing process which enable consistent delivery of quality products to our customers. Continually training and retraining our employees and business partners to create a culture
that values quality and food safety as the core pillars of our business.
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CHAPTER-II
RESEARCHMETHODOLOGY
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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
organisation 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 samplesize used for study includes 80 employees from the company.
METHOD OF SAMPLING
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
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Method of Data collection: Secondary and Primary.
OBJECTIVE OF THE STUDY
The objective for doing my summer training 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 acompany.
To see the difference between the theoretical knowledge & practical knowledge.
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PERIOD OF STUDY
I did my summer internship at BRITANNIA INDUSTRIES LTD., which is one of the largest FMCG
Company in India. The duration of my study was 60 days (8 weeks). My timing of work was from 9:30
A.M. to 5:30 P.M., 6 days in a week.
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 in 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.
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 trainee 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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SOURCES OF DATA COLLECTION
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) Questionnaireb) Schedulec) Observationd) Interview
SECONDARY DATASecondary 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) Magazinesb) Booksc) Websitesd) Reportse) Filesf) Staff
DATA COLLECTION METHOD
The data was collected by me from both the sources for my training project 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.
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CHAPTER-III
INTRODUCTION
ABOUT
PERFORMANCE
APPRAISAL
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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 ofPerformance 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
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.
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APPRAISEE APPRAISER
KRAs Routine Responsibilities Competencies
Performance & development Planning
Mid Year Review
Feedback & coaching
Final Review
Final Score
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Final Performance Rating
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Performance & Develo ment Plan
DEFINATION OF PERFORMANCE
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 achievedesired business results.
Routine Responsibilities are significant on-going tasks or outcomes that are undertaken ordelivered on day-to-day basis.
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 theperformance 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.
KRAsRoutine
Responsibilities Competencies
Performance Plan Development Plan
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FEEDBACK AND COACHING
The process of continuous Feedback and coaching is an inherent and critical part of MAP.
The Mid Year and Final Reviews are specifically focused on Feedback and Coaching and hence require
the Appraisee and the Appraiser to have a formal feedback session.
For feedback and Coaching to be truly effective, it should be provided and received on an on- going basis.
When used effectively, Feedback & Coaching is a powerful means of positively impacting performance.
Feedback and Coaching helps an Appraiser in both obtaining information and providing inputs on how an
Appraisee is performing and whether or not he/she is headed in the right direction. It is also an
opportunity for the Appraisee to solicit resources and help that may be required for enhancing his/her
performance.
Most people are comfortable in providing positive feedback. However, they are hesitant to initiate a
conversation that involves sharing of negative or unpleasant performance related information. Such
hesitation needs to be overcome, considering the importance of feedback in correcting the performance
level of the Appraisee, and the consequent benefit to the Appraisees career.
Coaching impacts Performance
Feedback
Positive feedback Corrective feedback Feedback focused on identifying obstacles to performance Feedback for the purpose of sharing information.
Lon
termi
m
act
erformance
Information
Feedback
Coaching
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Performance Cycle at a Glance
A Performance Cycle refers to the year for which your performance is being evaluated.
The Performance Cycle of MAP is one year coinciding with BRITANNIAs financial year.
MAP follows an April to March cycle and consists of three Key phases:
1. Performance and Development Planning2. Mid Year Review3. Final Review
The figure below provides an overview of the Performance Cycle with key dates for each phase.
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.
March-Mid April
Appraiser
ONGOING
FEEDBACK
Appraise
Unit/business Sector Draft Budget End February
Offline Performance Planning
Normalision &
score
Mid Year
Review
Final Review &
FeedbackFinal Review & Feedback
September-October
Mid April-End
April
April
May
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PERFORMANCE AND DEVELOPMENT PLANNING
The performance& Development Planning phase of MAP is initiated in March, upon the finalization of
the draft budget for BRITANNIA INDUSTRIES LIMITED Unit business objectives and developmentinitiatives will be derived from this and cascaded to your Performance Planning.
The Appraisee will be assigned a URR based on the role that he/she performs. The template will provide
the Appraisee the relevant KRAs and Routine Responsibilities. The Appraisee will use the built-in-
flexibility to develop the Performance Plan suited to his/her situation.
Performance and Development Planning Process
Appraiser will review
identify flexible KRAsand write Optional KRAs
if re uired
Appraisee will set
Targets & developAction Plan for each
KRA
Appraiser will assignPercentage weight age to
each KRA & Routine
Responsibility out of total
of 100% for each section
Appraisee will
draw-up
Development plan
Appraiser will
complete assignrelevant URR to
Appraisee
Appraiser will
send finalized plan
to reviewer for
Sign-off
Appraiser will discuss
Targets using Stretch Tool& Finalize Performance &
Development Plan
Appraisee will
submit Performance& development plan
to A raiser
Final Performance &
Development plan for the
Appraisee
raisee will defineine responsibility &
lop Actions Plans
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CREATING PERFORMANCE PLAN
1. Select KRAsBased on the URR assigned, the Appraisee will have a set of Essential KRAs and in addition,
can select other relevant one from the list of Flexible KRAs.
Essential KRAs are predetermined and compulsory for performance of the role. Flexible KRAs are suggested as relevant for a role but are not compulsory. The Appraisee
selects the appropriate KRAs.
The total number of Essential and Flexible KRAs put together cannot exceed 12. Incase therequired number of KRAs in the Flexible list cannot be accommodated within the Flexible
section; the Appraisee will use Optical section to add the same in his/her Performance &
Development Plan.
Optional KRA Section comprises of KRAs that can be added by the Appraisee if they havenot been captured in either of the above two categories and may be required in a specific
location or Performance Period. As stated above, thy also include KRAs that cannot be
accommodated because of the limit of 12 Essential plus Flexible KRAs. These must be
included in the Appraisees plan. A maximum of 3 such KRAs can be added.
2. Set Targets and Action Plans for KRAsFor each KRA:
a) A specific Target must be defined by the Appraisee that quantifies or verifies theextent of achievement in a given timeframe.
b) The Target thus defined should correspond to Rating 3-Meets Expectations on the5-point Rating Scale.
c) The required level of achievement for each of the remaining four ratings on thescale (1, 2, 4 & 5) must also be defined, using the target against the Rating 3 as the
central point. This will prevent subjectivity while evaluating the Appraisees
performance at the end of the year.
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Targets must be defined using the Stretch Tool, by applying all Six Dimensions that determine
Stretch. Along with target the Appraisee will develop an action plan consisting of specific steps
required to achieve the target for each KRA.
3. Define routine responsibilities: In addition to the KRAs the appraisee will identify therelevant routine responsibilities care should be taken to insurethatthe appraisees performance
on routine responsibilities is verifiable objectively, which would prevent subjectivity while
evaluating performance later. The max of ten routine responsibilities can be selected.
4. Assign weights: The overall weightages between KRAs and routine responsibilities for aparticular URR have been predefined. The appraise will propose weightage for each KRAs
and routine responsibility. The weightages for each of the section of KRAs and routine
responsibilities should upto 100% respectively. Weightages should be allocated keeping in
mind the critically of the major and the efforts required to accomplish the same.
5. Creating development plan: Development planning in MAP focuses on building individualcapability using competencies. Competences relevant to a role are pre-defined in its URR
along with the desired Proficiency level.
From the list of competencies identified for the role, the Appraiser will identify a maximum of
three competencies as Developmental that form the basis of the Appraisees Development
Plan.
The Development plan will be drawn-up by the Appraisee in discussion with the Appraiser
and will consist of learning initiatives such as training, cross-functional exposure, short-term
assignments etc. The Appraiser will facilitate adherence to the Development Plan drawn up
for the Appraisee.
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The Development Plan concludes with the above steps.
Obtain Appraisers and Reviewers Sign-off on Performance & Development Plan
At this stage, the Appraisee will discuss and finalize the Performance and
Development plan with the Appraiser. Up on finalization, the Appraiser would forward the
Performance and Development Plan the Reviewer for final-offs.
Editing the Performance and Development Plan
Extraneous circumstances that significantly impact the Performance and Development Plan
of an Appraisee may during the Performance Cycle. In such situations, the Appraisee
requires the Reviewers approval to edit the plan.
The edited plan will be finalized with the Appraiser and Reviewers sign-off.
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MID YEAR REVIEW
Mid Year Review is an interactive feedback session between the Appraisee and the Appraiser,
conducted during the month of October for the half-year ended September 30.
It is a mid-cycle process for reviewing and tracking achievements thus reducing the scope for year-
ended surprises.
The Mid Year Review does not result in a performance score and will be treated as a course
mechanism wherein the Appraiser guides the Appraisee on whether the Appraisee is on the track to
achieve the Performance and Development Plan finalized in April. The Appraisee is on track to
achieve the Performance and Development Plan finalized in April. The Appraisee is able to
incorporate these inputs to ensure achievement.
Mid-Year Review Process
Mid Year Review begins with the Appraisees self-appraisal. In the self-appraisal the Appraisee will
comment on his/her current level of achievement on KRAs. Routine Responsibilities and
competencies, which will then be discussed with the Appraiser for his feedback and inputs.
The Appraiser and the Appraisee will refer to documented and objective facts regarding performance
Related events for a meaningful performance discussion.
Appraisee willcomplete self
appraisal on
performance and
Appraisee will submit
self appraisal to
appraiser.
Appraiser will provide
feedback on performanceand guide Appraisee on
future direction
Mid year feedback will be
documented.
Mid year feedback
document completed.
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Documentation of the performance discussion concludes the Mid Year Review phase of MAP.
In case of extraneous circumstances, the Mid Year Review provides for a revision in the Appraisees
Performance and Development Plan. After obtaining the Reviewers specific approval to change the
plan, the Appraisee in discussion with the Appraiser would modify the plan and send the plan to the
Reviewer for-off. The plan will be considered final only after the sign-off has been obtained.
The Reviewer steps into the Mid Year Review phase only if a change is required in the Performance
Plan of the Appraisee.
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FINAL RE VIEW
During the Final Review phase, the Appraiser will assess the Appraisees level of achievement onKRAs Routine Responsibilities and the demonstration of Competencies.The Final Review will be
concluded in the month of April.
Final Review Process
Appraiser will review
Self-Appraisal andperformance outcomes
of the appraisal for theperformance cycle
Appraiser sendsfinal review
documents and
overall score to
reviewer
Reviewervalidates and
provides final
score.
Appraiser will determine
overall score based on
KRA score, routineresponsibility score and
the weightage assigned to
each section
Appraisee will
complete self
approval and submitto the appraiser.
Appraiser will
determine rating on
each KRA, routine
responsibility and
competency
Appraiser will provide
feedback on each area
of performance and
development to
appraisee.
Final score is
communicated toappraisee and
appraiser
Conducts
finalreview
phase.
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The Final Review Phase will begin with the Appraisees self-appraisal wherein he/she give a self-rating
on performance parameters- KRAs and Routine Responsibilities defined in the Performance Plan and the
Competencies defined in the Development Plan.
The Appraiser will review the outcomes and self-appraisal and will evaluate the Appraisee on the
Performance Plan. The Appraiser will assign a Rating for each KRA, Routine Responsibility and
Competency using the appropriate Rating scale.
UNIQUE ROLE & RESPONSIBILITY (URR) TEMPLATE
Unique Role & Responsibility Template have been introduced in BIL to standardize measurement of
performance across individuals, teams, functions and units.
The templates ensure consistency and uniformity in terms of the KRAs that are applicable to a role. At the
same time, they also provide flexibility to incorporate differences that might exist in jobs mapped to the
same unique role. The flexibility take care of the specific emphasis or focus that a role may require in a
given performance period.
Unique Roles are jobs that may be held by different incumbents but are essentially the same. For instance,
there may be certain differences in incumbents like designation, years of experience, number of people
supervised etc. but if the expectations of performance from them and their responsibilities are essentially
the same, they perform the same Unique Role.A Unique Role & Responsibility Template (URR template) described such a Unique Role and has been
developed for all Unique Roles within BIL.
The template provides:
Unique Role name Brief description of the role KRA Competencies and their proficiency levels Overall weightage of the KRAs Section to Routine Responsibility Section
Each Appraisee would be assigned a URR by his Appraiser at the start of the Performance Cycle. This
URR will be used by the Appraisee for the purpose of creating the Performance and Development Plan.
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The URR template has two categories of KRAs that have been predetermined.
1) Essential KRAs-KRAs those are predetermined and compulsory for performance of the role.These will become part of the Performance Plan of each Appraisee who is mapped to this URR.
2) Flexible KRAs-KRAs those are predetermined and relevant to a role though not compulsory.These suggested for adoption by the Appraisee as applicable flexible KRAs give the Appraisee to
choose such KRAs from the list that he/she feels would be relevant for measuring performance in
the performance Cycle.
RATING KRAs AND ROUTINE RESPONSIBILITIES
KRAs and Routine Responsibilities have a 5-point scale where each rating has been articulated and
explained.
Rating Competencies
The 5-point Rating Scale for Competencies a different from the one used for KRAs and Routine
Responsibilities.
The Appraisee will be evaluated on all Competencies in the URR using the Competency Scale.
Each rating on the scale has been articulated to describe the extent to which an Appraisee has displayed
the behaviors described in the required proficiency level of the Competency.
Based upon the behaviors observed, the Rating that best describes the set of displayed behaviors is chosen
as the Rating on that Competency.
1
Significantly
Below
Expectations
2
Moderately
Below
Expectation
3
Meets
Expectation
4
Moderately
Above
Expectaatio
5
Significantly
Above
Expectations
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TRENDS IN PERFORMANCE APPRAISAL
ITEM FORMER EMPHASIS PRESENT FOCUS
1. Terminology Merit-Rating Performance Appraisal2. Purpose Determine wage increase,
promotion, transfer, layoff
Development of the
individual improved job
performance.
3. Application For rank & file workers For managerial & technicalpersonnel.
4. Factors rate d Personal traits Performance, result oraccomplishment.
5. Techniques Rating scales with emphasisupon scores
Mutual goal-setting, critical
incidents, group appraisal.
6. Post appraisal Superior communicates hisrating to the subordinate &
seeks to have employee
accept the rating.
Superior stimulates
employee to analyse
himself & set goals with the
help.
FEATURES OF PERFORMANCE APPRAISAL
1) Performance appraisal is the systematic description ofan employees job relevant strength andweaknesses.
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.
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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 salaryincrease. 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.
2) PROMOTION: Performance appraisal plays a significance role where promotion is based onmerits 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 forbetter 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.
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PROCESS OF PERFORMANE APPRAISAL
1)ESTABLISMENT OF PERFORMANCE: We need some kindof measures again which we are going to compare the performance of employees.
some of these standards are based on job description should be clear enough to be measured &
understood by everyone standers are the expectations
Establishment of
Performance Standards
Establishment of
Performance Standards
Establishment of
Performance
Establishment of
Performance
Establishment of
Performance Standards
Establishment of
Performance Standards
1
4
2
35
6
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2)COMMUNICATE EXPECTATION TO EMPLOYEES: Standards need to becommunicated 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.
3)MEASURES ACTULY PERFORMANCE: After setting standard you will some critical tomeasure the performance of employees.
4)COMPARE ACTUAL PERFORMANCE WITH STANDARD: This is done tosee 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 suggestivecorrective action can be provided to the employees.
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METHODS OF PERFORMANE APPRAISAL
PERFORMANCE APPRAISAL METHODS
Individual
evaluation
Multiple-person
evaluation method
Other method
Confidentialreport
Easy evaluation Critical incidents Checklists Graphic rating
scale Behaviorally
anchored
Rating scale Forced choice
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 isranked 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 thismethod 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 nameof 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.
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
10% - Excellent 30% - Average
20% - Good 40% - Below
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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.
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 ofjob. 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 commonlyused 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.
1 2 3 4 5 6 7 8 9 10
Satisfactory Unsatisfactory
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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 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 ofexperts 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 ofany 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 scaleswith 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.
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NEED FOR PERFORMANE APPRAISAL
Provide information about the performance ranks basing on which decision regarding salaryfixation, conformation, promotion, transfer & demotion are taken.
To prevent grievances & indisciplinary activities. 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 theirscores with performance appraisal ranks.
To ensure organization effectiveness through correcting employee for standard & improvedperformance, & 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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CONTENTS OF PERFORMANCE APPRAISAL
Every organization has to decide upon the content to be appraised before the programme is approved.
Generally content to be appraised is determined on the basis of job analysis. Content to be appraised maybe in the form of contribution to organizational objectives (measures) like production, cost saving, return
on capital, etc. other measure are based on :-
1) Behavior, which measure observable physical action, movements2) Objective, which measure job-related result like amount of deposits mobilized. 3) Traits, which are measure in terms of personal characteristics observable in employees job
activities.
Content to be appraisal may vary with the purpose of appraisal and type level of employees.
3600 PERFORMANCE APPRAISAL
The appraiser may be any person who has through knowledge about the job content, contents to be
appraised, standards of contents, & who observes the employee while performing a job. The appraiser
should be capable of determining what is more important & what is relatively less important. He should
prepare report & make judgment without bias. Typical appraisers are :- Supervisor, Peers,
Subordinates employees themselves, Users of service & Consultants. Performance appraisal by all
these parties is called 3600
Performance Appraisal.
Supervisors: Supervisor includes superiors of the employee, other superiors having knowledge aboutthe employee & department head or manager. General practice is that immediate superiors appraisal
the performance, which in turn is reviewed by the departmental head/manager.
Peers: Peer appraisal may be reliable if the work group is stable over a reasonably long period oftime & performs tasks that require interaction.
Subordinates: The concept of having superior rated by subordinates is being used in mostorganizations today, especially in developed countries. Such a novel method can be useful in other
organization setting too provided the relationship between superiors & subordinates are cordial.
Self-Appraisal: If individuals understand the objectives they are expected to achieve & the standardsby which they are to be evaluated, they are to a great extent in the best position to appraise their own
performance.
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Users of Service Customers: Employee performance in service organizationsrelating to behaviors, promptness, speed in doing the job & accuracy, can be better judged by
the customers or users of services.
Consultants: Sometimes consultants may be engaged for appraisal when employeesor employers do not trust supervisor appraisal & management does not trust the self-
appraisal or peer appraisal or subordinate appraisal.
SYSTEM OF PERFORMANCE APPRAISAL
Performance appraisal is a nine-step process:-
At the First Stage, Performance standards are established based on job description & job
specification. The standards should be clear, objective & incorporate all the factors.
The Second Stage is to inform these standards to all the employees including appraisers.
The Third Stage is following the instruction given for appraisal, measurement of employee
performance by the appraisers through observation, interview, records & reports.
Fourth Stage is finding out the influence of various internal external factors on actual performance.
Fifth Stage is comparing the actual performance with that of other employees & previous
performance of the employee & others.
1. Establish performance standards.2. Communicate standard / expectation to employee.3. Measure actual performance by following the instructions.4. Adjust the actual performance due to the environmental influences.5. Compare the adjusted performance with that of other & previous.6. Compare the actual performance with standard & find out deviation,
if any.
7. Communicate the actual performance to the employee concerned.8. Suggest changes in job analysis & standard, if any necessary.9. Follow-up performance appraisal report.
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Sixth Stage is comparing the actual performance with the standards & finding out deviations.
Seventh Stage is communicating, the actual performance of the employee & other employees doing the
same job & discuss with him about the reasons for positive or negative deviation from the pre-set
standards as the case may be.
Eighth Stage is suggesting necessary changes in standards, job analysi