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A Project Report on Employee Information Management System Submitted for partial fulfillment of award of BACHELOR OF BUSINESS ADMINISTRATION Degree In COMPUTER AIDED MANAGEMENT (2009-2012) Submitted By: ANKITA KAUSHAL
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Page 1: Project on Performance Appraisal

A Project Report

on

Employee Information Management System

Submitted for partial fulfillment of award of

BACHELOR OF BUSINESS ADMINISTRATION

Degree InCOMPUTER AIDED MANAGEMENT

(2009-2012)

Submitted By:ANKITA KAUSHAL

IDEAL INSTITUTE OF MANAGEMENT AND TECHNOLOGYKARKARDOOMA, DELHI

Page 2: Project on Performance Appraisal

(Approved By G.G.S. Indraprastha University, Delhi)

CONTENT

1. Introduction

2. Company Profile

3. Statement of the problem

4. Objectives of study

5. Research Methodology

- Primary Data- Secondary Data

6. Data Analysis

7. Findings

8. Conclusion

9. Limitation

10. Recommendations

11. Annexure

12. Biblography

Page 3: Project on Performance Appraisal

PERFORMANCE APPRAISAL SYSTEM

INTRODUCTION TO THE TOPIC

Human Resource (or personnel) management, in the sense of getting things

done through people, is an essential part of every manager’s responsibility,

but many organizations find it advantageous to establish a specialist division

to provide an expert service dedicated to ensuring that the human resource

function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any

senior management team would disagree with. Yet, the realities for many

organizations are that their people remain undervalued, under trained and

underutilized.

Performance Appraisal is the process of assessing the performance and

progress of an employee or a group of employees on a given job and his /

their potential for future development. It consists of all formal procedures

used in the working organizations to evaluate personalities, contributions

and potentials of employees.

 

Page 4: Project on Performance Appraisal

PREFACE

Managing human resources in today’s dynamic environment is becoming

more and more complex as well as important. Recognition of people as a

valuable resource in the organization has led to increases trends in employee

maintenance, job security, etc

My research project deals with “Performance Appraisal as carried out at

DABUR PVT LTD”. In this report, I have studied &evaluated the

performance appraisal process as it is carried out in the company.

The first section of my report deals with a detailed company profile. It

includes the company’s history: its activities and operations, organizational

structure, etc. this section attempts to give detailed information about the

company and the nature of its functioning.

The second section deals with performance appraisal. In this section, I have

given a brief conceptual explanation to performance appraisal. It contains

the definition, process and significance of performance appraisal.

In the third section of my report, I have conducted a research study to

evaluate the process of performance appraisal at DABUR PVT Ltd.; this

section also contains my findings, conclusions, suggestions and feedback.

The fourth and final section of this report consists of extra information that I

related to the main contents of the report. These annexure include some

graphs and diagrams relating to the company, graphs relating to the research

study and important documents upon which the project is based.

Page 5: Project on Performance Appraisal

 

RATIONALE OF THE STUDY

Performance Appraisal is the important aspect in the organization to

evaluate the employees performance. It helps in understanding the

employees work culture, involvement, and satisfaction. It helps the

organization in deciding employees promotion, transfer, incentives, pay

increase.

 

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that

are essential for the effective functioning of the organization:

1.    Recruitment

2.    Selection

3.    Induction

4.    Performance Appraisal

5.    Training & Development

Recruitment

The process of recruitment begins after manpower requirements are

determined in terms of quality through job analysis and quantity through

forecasting and planning.

Page 6: Project on Performance Appraisal

Selection

The selection is the process of ascertaining whether or not candidates

possess the requisite qualifications, training and experience required.

Induction

a)    Induction is the technique by which a new employee is rehabilitated

into the changed surroundings and introduced to the practices, policies

and purposes of the organization.

WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the

performance and progress of an employee or a group of employees on a

given job and his / their potential for future development. It consists of all

formal procedures used in working organizations and potential of

employees. According to Flippo, “Performance Appraisal is the systematic,

periodic and an important rating of an employee’s excellence in matters

pertaining to his present job and his potential for a better job.”

CHARACTERISTICS

1.    Performance Appraisal is a process.

2.    It is the systematic examination of the strengths and weakness of an

employee in terms of his job.

Page 7: Project on Performance Appraisal

3.    It is scientific and objective study. Formal procedures are used in the

study.

4.    It is an ongoing and continuous process wherein the evaluations are

arranged periodically according to a definite plan.

5.    The main purpose of Performance Appraisal is to secure information

necessary for making objective and correct decision an employee.

PROCESS

The process of performance appraisal:

1.    Establishing performance standards

2.    Communicating the Standards

    3.   Measuring Performance

    4.   Comparing the actual with the standards

    5.   Discussing the appraisal

     6.Taking Corrective Action

LIMITATIONS

1.    Errors in Rating

2.    Lack of reliability

3.    Negative approach

4.    Multiple objectives

5.  Lack of knowledge

Page 8: Project on Performance Appraisal

METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable

challenge, even considering the available battery of appraisal techniques.

But attempting to avoid these pitfalls by doing away with appraisals

themselves is like trying to solve the problems of life by committing suicide.

The more logical task is to identify those appraisal practices that are (a) most

likely to achieve a particular objective and (b) least vulnerable to the

obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal

stated at the outset of the article, I shall briefly review each, taking them

more or less in an order of increasing complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or

more covering an individual's strengths, weaknesses, potential, and so on. In

most selection situations, particularly those involving professional, sales, or

managerial positions, essay appraisals from former employers, teachers, or

associates carry significant weight.

Page 9: Project on Performance Appraisal

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more

consistent and reliable. Typically, a graphic scale assesses a person on the

quality and quantity of his work (is he outstanding, above average, average,

or unsatisfactory?) and on a variety of other factors that vary with the job but

usually include personal traits like reliability and cooperation. It may also

include specific performance items like oral and written communication.

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the

personnel or central administrative staff meets with small groups of raters

from each supervisory unit and goes over each employee's rating with them

to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a

consensus, and (c) determine that each rater conceives the standards

similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and

establish objective standards of comparison between individuals, but it does

not involve the intervention of a third party.

Page 10: Project on Performance Appraisal

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly

high standards, employees in some organizations are being asked to set - or

help set - their own performance goals. Within the past five or six years,

MBO has become something of a fad and is so familiar to most managers

that I will not dwell on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare

people who work for different supervisors, individual statements, ratings, or

appraisal forms are not particularly useful. Instead, it is necessary to

recognize that comparisons involve an overall subjective judgment to which

a host of additional facts and impressions must somehow be added. There is

no single form or way to do this.

The best approach appears to be a ranking technique involving pooled

judgment.

Page 11: Project on Performance Appraisal

The two most effective methods are alternation ranking and paired

comparison ranking.

1.    “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another

method for evaluating employees. Since it is usually easier to distinguish

between the worst and the best employees than to rank them, an alternation

ranking method is most popular. Here subordinates to be rated are listed and

the names of those not well enough to rank are crossed. Then on a form as

shown below, the employee who is highest on the characteristic being

measured and the one who is the lowest are indicated. Then choose the next

highest and the next lowest, alternating between highest and lowest until all

the employees to be rated have been ranked.

2.    “Paired-comparison ranking”:

 This technique is probably just as accurate as alternation ranking and might

be more so. But with large numbers of employees it becomes extremely time

consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings

(i.e., when two or more people are asked to make independent rankings of

the same work group and their lists are averaged), are among the best

available for generating valid order-of-merit rankings for salary

administration purposes.

Page 12: Project on Performance Appraisal

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about

the assessment of future performance or potential? In any placement

decision and even more so in promotion decisions, some prediction of future

performance is necessary. How can this kind of prediction be made most

validly and most fairly?

360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call

360-degree feedback. The feedback is generally used for training and

development, rather than for pay increases.

Most 360 Degree Feedback system contains several common features.

Appropriate parties – peers, supervisors, subordinates and customers, for

instance – complete survey, questionnaires on an individual. 360 degree

feedback is also known as the multi-rater feedback, whereby ratings are not

given just by the next manager up in the organizational hierarchy, but also

by peers and subordinates. Appropriates customer ratings are also included,

along with the element of self appraisal. Once gathered in, the assessment

from the various quarters are compared with one another and the results

communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO.

Like the critical incident method, it focuses on actual behavior and actual

results, which can be discussed objectively and constructively, with little or

no need for a supervisor to "play God."

Page 13: Project on Performance Appraisal

Advantages

Instead of assuming traits, the MBO method concentrates on actual

outcomes. If the employee meets or exceeds the set objectives, then he or

she has demonstrated an acceptable level of job performance. Employees are

judged according to real outcomes, and not on their potential for success, or

on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be

observed easily. The MBO method recognizes the fact that it is difficult to

neatly dissect all the complex and varied elements that go to make up

employee performance.

MBO advocates claim that the performance of employees cannot be broken

up into so many constituent parts, but to put all the parts together and the

performance may be directly observed and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot

be reasonably accomplished. Supervisors and subordinates must have very

good "reality checking" skills to use MBO appraisal methods. They will

need these skills during the initial stage of objective setting, and for the

purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that

fluid objectives may be distorted to disguise or justify failures in

performance.

Page 14: Project on Performance Appraisal

Benefits of Performance Appraisals

Measures an employee’s performance. Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and

analysis. Improves understanding and relationship between the employee and

the reporting manager and also helps in resolving confusions and misunderstandings.

Plays an important tool for communicating the organization’s philosophies, values, aims, strategies, priorities, etc among its employees.

Helps in counseling and feedback.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and

biases referred to as 'rating errors'. These errors can seriously affect

assessment results. Some of the most common rating errors are: -

Leniency or severity: - Leniency or severity on the part of the rater makes

the assessment subjective. Subjective assessment defeats the very purpose of

performance appraisal. Ratings are lenient for the following reasons:

a)    The rater may feel that anyone under his or her jurisdiction

who is rated unfavorably will reflect poorly on his or her own

worthiness.

Page 15: Project on Performance Appraisal

b)    He/She may feel that a derogatory rating will be revealed to

the rate to detriment the relations between the rater and the

ratee.

c)     He/She may rate leniently in order to win promotions for the

subordinates and therefore, indirectly increase his/her hold over

him.

Central tendency: - This occurs when employees are incorrectly rated near

the average or middle of the scale. The attitude of the rater is to play safe.

This safe playing attitude stems from certain doubts and anxieties, which the

raters have been assessing the rates.

Halo error: - A halo error takes place when one aspect of an individual's

performance influences the evaluation of the entire performance of the

individual. The halo error occurs when an employee who works late

constantly might be rated high on productivity and quality of output as well

as on motivation. Similarly, an attractive or popular personality might be

given a high overall rating. Rating employees separately on each of the

performance measures and encouraging raters to guard against the halo

effect are the two ways to reduce the halo effect.

Rater effect: -This includes favoritism, stereotyping, and hostility.

Extensively high or low score are given only to certain individuals or groups

based on the rater's attitude towards them and not on actual outcomes or

behaviors; sex, age, race and friendship biases are examples of this type of

error.

Page 16: Project on Performance Appraisal

Primacy and Regency effects: - The rater's rating is heavily influenced

either by behaviour exhibited by the ratee during his early stage of the

review period (primacy) or by the outcomes, or behavior exhibited by the

ratee near the end of the review period (regency). For example, if a

salesperson captures an important contract/sale just before the completion of

the appraisal, the timing of the incident may inflate his or her standing, even

though the overall performance of the sales person may not have been

encouraging. One way of guarding against such an error is to ask the rater to

consider the composite performance of the rate and not to be influenced by

one incident or an achievement.

Performance dimension order: - Two or more dimensions on a

performance instrument follow each other and both describe or rotate to a

similar quality. The rater rates the first dimensions accurately and then rates

the second dimension to the first because of the proximity. If the dimensions

had been arranged in a significantly different order, the ratings might have

been different.

Spillover effect: - This refers to allowing past performance appraisal rating

to unjustifiably influence current ratings. Past ratings, good or bad, result in

similar rating for current period although the demonstrated behaviour does

not deserve the rating, good or bad.

 

ROLES IN THE PERFORMANCE APPRAISAL PROCESS 

Page 17: Project on Performance Appraisal

a)  Reporting Manager

Ø      Provide feedback to the reviewer / HOD on the

employees’ behavioral traits indicated in the PMS Policy

Manual

Ø      Ensures that employee is aware of the normalization /

performance appraisal process

Ø      Address employee concerns / queries on performance

rating, in consultation with the reviewer

b)  Reviewer (Reporting Manager’s Reporting Manager)

Ø      Discuss with the reporting managers on the behavioral

traits of all the employees for whom he / she is the reviewer

Ø      Where required, independently assess employees for the

said behavioral traits; such assessments might require

collecting data directly from other relevant employees

c)     HOD (In some cases, a reviewer may not be a HOD)

Page 18: Project on Performance Appraisal

Ø      Presents the proposed Performance Rating for every

employee of his / her function to the Normalization

committee.

Ø      HOD also plays the role of a normalization committee

member

Ø      Owns the performance rating of every employee in the

department

d)  HR Head

Ø      Secretary to the normalization committee

Ø      Assists HOD’s / Reporting Managers in communicating

the performance rating of all the employees

e)  Normalization Committee

Ø      Decides on the final bell curve for each function in the

respective Business Unit / Circle

Ø      Reviews the performance ratings proposed by the HOD’s,

specifically on the upward / downward shift in ratings, to

ensure an unbiased relative ranking of employees on overall

performance, and thus finalize the performance rating of

each employee

 

Page 19: Project on Performance Appraisal

KEY CONCEPTS IN PMS

In order to understand the Performance Management System at DABUR,

some concepts need to be explained which play a very important role in

using the PMS successfully. They are:

Ø      KRA’S (KEY RESULT AREAS): The performance of an

employee is largely dependent on the KRA score achieved by the

employee during that particular year. Thus, it is necessary to answer a

few basic questions i.e.

o       What are the guidelines for setting the KRA’s for an

employee?

o       How does an employee write down his KRA’s for a

particular financial year?

o       KRA’s: The Four Perspectives.

o       How is the KRA score calculated for an employee on the

basis of the targets sets and targets achieved? 

Ø      BEHAVIORAL TRAITS: Some of the qualitative aspects of an

employees’ performance combined with the general behavioral traits

displayed by the employee during a year constitutes his behavior

traits. An employee is assigned the rating on the basis of the intensity

of the behavior displayed by him. They play a very important role in

the deciding the final performance rating for an employee as is even

capable of shifting the rating one level upwards/downwards.

Page 20: Project on Performance Appraisal

Ø      DABUR 2010 LEADERSHIP COMPETENCY

FRAMEWORK: This competency framework is a simple and

structured way to describe the elements of behaviors required to

perform a role effectively. This framework also tries to assess the

performance of an employee objectively.

Ø      THE PERFORMANCE RATING PROCESS: The rating process

tries to explain the four different types of rating that an employee can

achieve i.e. EC, SC, C and PC. It also explains the criteria, which is

considered for awarding any of these ratings to the employee.

Ø      PROMOTION AND RATING DISRTRIBUTION

GUIDELINES: The promotion and normal distribution guidelines

provide the framework within which the performance appraisal

process has to work. It is very important that the HR department pays

due attention to these guidelines while preparing the bell curves for

various functions and the consolidated bell curve for all the functions.

These guidelines also help in deciding upon the promotion cases in a

year.

 

 PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR SIGNIFICANT CONTRIBUTOR

Page 21: Project on Performance Appraisal

(EC)

 

·         Performs consistently and

substantially above expectations

in all areas

·         Achieves a final score

greater than or equal to 115%

·         Consistently delivers on

stretch targets

·         Is proactive

·         Spots and anticipates

problems, implements solutions

·         Sees and exploits

opportunities

·         Delivers ahead of time

·         Sees the wider picture-

impacts across business

·         Focuses on what’s good for

the business

·         Seen as role model by others

·         Recognized as exceptional

by other functions as well

·         Motivates others to solve

(SC)

 

·         Performs above

expectations in all areas

·         Achieves final score

between 100-114%

Versatile in his/ her area of

operation

Develops creative solutions

and require little / minimal

supervision

Sets examples for others

Take ownership of own

development

Coaches others

Demonstrates business

initiative

Is self motivated

Supportive team player

Leads own team very

Page 22: Project on Performance Appraisal

problems

·         Develops others

·         Provides open and honest

feedback

·         Able to establish and lead

cross-functional teams

 

effectively

Demonstrate functional

initiative

·          

PROJECT REPORT ON "PERFORMANCE APPRAISAL"LITERATURE REVIEW AND CONCEPT FORMULATION

 Human Resource (or personnel) management, in the sense of getting things

done through people, is an essential part of every manager’s responsibility,

but many organizations find it advantageous to establish a specialist division

to provide an expert service dedicated to ensuring that the human resource

function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any

senior management team would disagree with. Yet, the reality for many

organizations are that their people remain under valued, under trained and

under utilized.

Following are the various functions of Human Resource Management that

are essential for the effective functioning of the organization:

1.    Recruitment

Page 23: Project on Performance Appraisal

2.    Selection

3.    Induction

4.    Performance Appraisal

5.    Training & Development

EXECUTIVE SUMMARY

Page 24: Project on Performance Appraisal

COMPANY DABUR INDIA LIMITED

PRODUCT Manufacturing of Ayurvedic Medicines.

PROJECT TITLE: Performance Appraisal in Dabur India Ltd.MISSION OF

THE PROJECT This report deals with the findings and recommendations regarding viability of industry under the following heads.

To make a detailed study of the industry in terms of its existing market size, future market potential and important customer segments.

To study from various performance appraisal programs adopted by the company.

To seek the players about the most popular type of products in demand.

To study the staff workers and their preference parameters. To study the possibility to change the performance appraisal

method as per needs of the company. To explore the current market scenario, the major players, the

products being offered by them.

Page 25: Project on Performance Appraisal
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COMPANY PROFILE

DABUR INDIA LTD. Is among one of the best FMCG Company. Dr.

S.K.BURMAN established DABUR in the year 1884. He was a resident of

Bengal and was a doctor by profession in a village. Being a doctor and a

kind man he always used to serve others, as it is said “to achieve, your

vision should be clear.” This made Burman to make where DABUR stands

now from 1884 to the successive 100+ years.

Dr. Burman had a kind of thinking that, “what is life’s worth which cannot

bring to others.” Thus, he started with this and the ideal of a humane and

equitable society led to initiatives taken to take somepart of what DABUR

has gained from the community.Hence, he started in 1884 with his footsteps

towards service to society.His mission was to provide effective and

affordable cure to the society in villages. With missionary zeal and fervor,

Dr. Burman undertook the task of preparing natural cures for the killer

diseases of that time,like cholera , malaria and plague. DABUR INDIA

LTD. is always in promotion to:-

Running it as not only a profit making organization but also to

promote research and welfare activities in rural as well as urban

areas.

Promoting health and hygiene among the people by making

medical trust.

Organizing environmental awareness programmer among young

minds.

Page 28: Project on Performance Appraisal

COMPANY PROFILE

DABUR INDIA LIMITED

FOUNDER : Dr.S.K.BURMAN

CHAIRMAN : Mr.V.C.BURMAN

VICE CHAIRMAN : Mr.ANAND BURMAN

C.E.O. : Mr. SUNIL DUGGAL

WHOLE TIME DIRECTOR: Mr.PRITAM DAS NARANG

: Mr.PRADEEP NARANG

: Mr.AMIT BURMAN

DIRECTOR :Mr.MAHARAJA GAJ SINGH

:Mr.STUART PURDY

:Mr.AJAY BHEL

Page 29: Project on Performance Appraisal

OVER HUNDRED YEARS OF CARING

Dabur commenced operation in 1884 and is today a multi – locational, multi

– product enterprise. The company has major interest in health and beauty

care.

Dabur is leader in Ayurveda - the traditional Indian health care system.

The company manufactures and markets a range of oncologicals. Dabur is

one of the companies in the world to product PACLITAXEL – AN ANTI

CANCER DRUG. The company has developed its own Eco – friendly

process to manufacture this drug from raw material stage.

The company has 12 manufacturing plants in India, Nepal and Egypt. Dabur

products are also manufactured in Dubai.

Dabur has transactional network of 19 offices serving both rural and urban

markets in India.

The company has sales and marketing offices in Dubai and London. Dabur

products are available in over 50 countries.

Page 30: Project on Performance Appraisal

Founding Thoughts

"What is that life worth which cannot bring comfort to

others"

The doorstep ‘Daktar’

The story of Dabur began with a small, but visionary endeavour by Dr. S. K.

Burman, a physician tucked away in Bengal. His mission was to provide

effective and affordable cure for ordinary people in far-flung villages. With

missionary zeal and fervour, Dr. Burman undertook the task of preparing

natural cures for the killer diseases of those days, like cholera, malaria and

plague.  

Soon the news of his medicines traveled, and he came to be known as the

trusted 'Daktar' or Doctor who came up with effective cures. And that is how

his venture Dabur got its name - derived from the Devanagri rendition of

Daktar Burman. Dr. Burman set up Dabur in 1884 to produce and dispense

Ayurvedic medicines. Reaching out to a wide mass of people who had no

access to proper treatment. Dr. S. K. Burman's commitment and ceaseless

efforts resulted in the company growing from a fledgling medicine

manufacturer in a small Calcutta house, to a household name that at once

evokes trust and reliability.

Page 32: Project on Performance Appraisal

2003   Dabur demerges Pharma Business

2005   Dabur aquires Balsara

2006   Dabur announces Bonus after 12 years

2006   Dabur crosses $2 Bin market Cap, adopts US GAAP

Page 33: Project on Performance Appraisal

DABUR AT A GLANCE

Dabur India Limited has marked its presence with some very significant

Page 34: Project on Performance Appraisal

achievements and today commands a market leadership status. Our story of

success is based on dedication to nature, corporate and process hygiene,

dynamic leadership and commitment to our partners and stakeholders. The

results of our policies and initiatives speak for themselves.

 

Leading consumer goods company in India amongest turnover of

Rs.1899.57 Crore (FY02)

2 major strategic business units (SBU) - Consumer Care Division

(CCD) and Consumer Health Division (CHD)

3 Subsidiary Group companies - Dabur Foods, Dabur Nepal and

Dabur International and 3 step down subsidiaries of Dabur

International - Asian Consumer Care in Bangladesh, African

Consumer Care in Nigeria and Dabur Egypt.

13 ultra-modern manufacturing units spread around the globe

Products marketed in over 50 countries

Wide and deep market penetration with 47 C&F agents, more than

5000 distributors and over 1.5 million retail outlets all over India 

Page 35: Project on Performance Appraisal

CCD, dealing with FMCG Products relating to Personal Care and Health Care

Leading brands -

Dabur - The Health Care Brand

Vatika-Personal Care Brand

Anmol- Value for Money Brand

Hajmola- Tasty Digestive Brand

and Dabur Amla, Chyawanprash and Lal

Dant Manjan with Rs.100 crore turnover

each

Vatika Hair Oil & Shampoo the high growth brand

Strategic positioning of Honey as food product,

leading to market leadership (over 40%) in

branded honey market 

Dabur Chyawanprash the largest selling Ayurvedic

medicine with over 65% market share.

Leader in herbal digestives with 90% market share

Hajmola tablets in command with 75% market

share of digestive tablets category

Dabur Lal Tail tops baby massage oil market with

35% of total share

Page 36: Project on Performance Appraisal

CHD (Consumer Health Division), dealing with classical Ayurvedic

medicines 

Has more than 250 products sold through

prescriptions as well as over the counter

Major categories in traditional formulations

include:

-AsavArishtas

-RasRasayanas

-Churnas

- Medicated Oils

Proprietary Ayurvedic medicines developed by

Daburinclude:

-NatureCare

Isabgol

-Madhuvaani

- Trifgol

Division also works for promotion of Ayurveda

through organised community of traditional

practitioners and developing fresh batches of

students 

 

Page 37: Project on Performance Appraisal

CORE VALUE

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VISION

MISSION

"To be the leader in the Natural Foods & Beverages Industry."

Strive to deliver this by:

Consistently delighting the consumer through

Being the company of choice for our business

Delivering higher returns to stakeholders

PRINCIPLES

OWNERSHIP

This is our company. We accept personal responsibility, and accountability

to meet business needs.

PASSION FOR WINNING

We all the leaders in our area of responsibility, with a deep commitment to

deliver the results. We are determined to be the best at doing what matters

the most.

PEOPLE DEVELOPMENT

Page 39: Project on Performance Appraisal

People are our most important asset. We add value through result driven

training, and we encourage and award excellence.

CONSUMER FOCUS

We have superior understanding of consumer needs and develop products to

fulfill them better.

TEAM WORK

We work together on the principle of mutual trust and transparency in a

boundary less organization. We are intellectually honest in advocating

proposals, including recognizing risks.

INNOVATION

Continuous innovation in products & processes is the basis of our success.

INTEGRITY

We are committed to the achievement of business success with integrity. We are honest with the consumers, with business partners and with each other.

MILESTONE TO SUCCESS

1884 - Established by Dr. S K Burman at Kolkata

1896 - First production unit established at Garhia

1919 - First R&D unit established

Early 1900s - Production of Ayurvedic medicines

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1930 - Automation and upgradation of Ayurvedic products

manufacturing initiated

1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

1940 - Personal care through Ayurveda

1949 - Launched Dabur Chyawanprash in tin pack

1957 - Computerisation of operations initiated

1970 - Entered Oral Care & Digestives segment

1972 - Shifts base to Delhi from Calcutta

1978 - Launches Hajmola tablet

1979 - Dabur Research Foundation set up

1979 - Commercial production starts at Sahibabad, the most

modern herbal medicines plant at that time

1984 - Dabur completes 100 years

1988 - Launches pharmaceutical medicines

1989 - Care with fun

1994 - Comes out with first public issue

1994 - Enters oncology segment

1994 - Leadership in health care

1996 - Enters foods business with the launch of Real Fruit Juice

1996 - Real blitzkrieg

1998 - Burman family hands over management of the company to

professionals

2000 - The 1,000 crore mark

2001 - Super specialty drugs

2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs

64.4 crore

2003 - Dabur demerges Pharmaceuticals business

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2005 - Dabur aquires Balsara

2006 - Dabur announces bonus after 12 years

2006 - Dabur crosses $2 bin market cap, adopts US GAAP

DABUR PRODUCTS

PRODUCTS

HEALTH SUPPLIMENT :

Dabur chyawanprash

Dabur Glucose D

DIGESTIVES :

Hajmola Mast Masala

Anardana

Hajmola

Hajmola Candy

Hajmola Candy Fun2

Pudin Hara (Liquid and Pearls)

Pudin Hara G

Dabur Hingoli

BABY CARE :

Dabur Lal Tail

Dabur Baby Olive Oil

Dabur Janma Ghunti

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NATURAL CURES :

Shilajit Gold

Nature Care

Sat Isabgol

Shilajit

Ring Ring

Itch Care

Shankha Pushpi

Dabur Balm

HAIR CARE OIL :

Amla Hair Oil

Amla Lite Hair Oil

Vatika Hair Oil

Anmol Sarson Amla

HAIR CARE SHAMPOO :

Vatika Henna Conditioning Shampoo

Vatika Anti Dandruff Shampoo

Anmol Natural Shine Shampoo

SKIN CARE :

Gulabari

Vatika Fairness Face Pack

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ORAL CARE :

Dabur Red Gel

Dabur Red Toothpaste

Dabur Lal Dant Manjan

Dabur Binacca Toothbrush

REAL :

Real Fruit Juice

Real Active

HOMMADE :

Cooking Paste

Coconut Milk

Tomato Puree

CAPSICO RED

LEMONEEZ

DABUR HONEY

AYURVEDIC SPECIALITIES :

Dashmularishta

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Ashokarishta

Lauhasava

Mahanarayan Tail

Juritap

Madhuvani

Lavan Bhaskar Churna

INTERNATIONALRANGE :

HEALTH CARE :

Dabur Chyawanprash

Pudinhara

Hajmola Tablets

Dabur Honey

Shilajit

SKIN CARE :

Natural Soap

ORAL CARE :

Herbal Tooth Paste

HAIR CARE :

Vatika Shampoo and Conditioners

Dabur Amla Hair Oil

FOODS:

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Real juices

Homemade Foods Products

Dr. BURMAN (RUSSIA)

Health Supplements

Ayurvedic Tooth Paste

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DABUR GROUP

DABUR GROUP

With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses

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more efficiently. Given the vast range of products, sourcing, production and marketing have been divested to five leading group companies that conduct their operations independently:

 

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Our major IT Initiatives

Implementation of Manufacturing Process ERP for frontend

operations;

Supply chain and working capital management to control

manufacturing, distribution planning, invoicing, receivables, banking

and schemes;

Integration with Baan (backend ERP) initiated last year in production

units and head office;

Intranet based Employee Management System for payroll and HRIS;

Future Challenges

Target of end-to-end networking by end of financial year 2006-07

Extending the Supply Chain Automation to both ends, in

Secondary Sales and e-Procurement;

Launch of E -Procurement using Free Markets' online bidding

engine. 

Vendor Managed inventories for fast moving raw materials and packaging

materials, and outsourced manufacturers' systems to be integrated with the

BaaN ERP system. 

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MANUFACTURING FACILITIES

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AWARDS

     

Dabur CEO amongst 25 Best of the Best India's truly world

class managers

Dabur CFO amongst

India's top three CFOs

Dabur wins ICSI National

Award for Excellance in

Corporate Governance

Dabur amongst top

'HOT FMCG' Companies

The second annual listing of the smartest chief financial

officers in India Inc.

Dabur India in Forbes "Best

under a Billion"

Dabur amongst top 10 Great

Place to Work

Dabur India ranks 53rd Most Valuable Indian

Company

Dabur India rated IInd most dynamic FMCG

company

India's most valuable

companies

 

LDM into Limca Book of records 2005

 

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FORBES: Amongst the top 20 “Best under a billion” companies in

India under $ 1 billion recognized by FORBES

Great Places to work – Ranked 10th among the Top 25 Great Places

to Work

ICSI award for Excellence in Corporate Governance

Market Cap crosses $ 1 billion. Best performing stock in the NSE in

2005 with 122% growth

The Economic Times company of the year – nominated amongst the

top 10

Economic Times – 42nd in the list of top 500 companies this year,

2nd in FMCG

BT 500 – 53rd in Business Today ranking on 500 India's Most

Valuable Companies

Chairman nominated for the E&Y Entrepreneur of the year award

CEO – Among top 25 - Smart Managers of the Year.

Udyog Ratna for Chairman and Gr. Director from Uttranchal

government and Himachal Pradesh Government.

Dabur Foods got 4 Awards At The 7th Annual Dairy & Beverages

Seminar

Tallest inflatable and longest billboard made during the Kumbh mela and

submitted to Limca Book of records have been published in 2005

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STATEMENT

“ APPRAISING THE EMPLOYEES OF THE ORGANIZATION IS VERY IMPORTANT FOR THE SUCCESSFUL GROWTH OF ANY BUSINESS THEREFORE, HERE I ANALYZE HOW DABUR CARRIES THE PROCESS OF PERFORMANCE APPRAISAL IN THEIR COMPANY AND ”.

Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.

The latest mantra being followed by organizations across the world being – "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. It helps to align the individual performances with the organizational goals and also review their performance.

Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.

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OBJECTIVES OF THE STUDY

This project is aim at studying the system of performance appraisal.

Performance appraisal is the most significant and indispensable tool for the

management as it provides useful information for decision making in the

area of promotions and compensation reviews.

To carry out the study of Dabur, we framed the following objectives

1. Identification of the technique of performance appraisal followed in

Dabur.

2. Employee attitude towards the present appraisal system.

3.To identify and know the area for improvement system.

4. Review of the current appraisal system in order to

    1. Enhance productivity

    2. Attain global standards

5. To provide suggestions & recommendations from the study conducted.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

The quality and reliability of research study is dependent on the

information collected in a scientific and methodological manner. Scientific

planning of designing of research method is a blue print for any research

study. Therefore, proper time and attention should be given in designing

the plan of research. While proper definition of problem tells the

researcher where he has to go, proper design tells him how he should go.

Selection of methodology for a particular project is made easy by sorting

out a number of alternative approaches, each of them having its own

advantage and disadvantages. Efficient design is that which ensure that the

relevant data are collected accurately.

The researcher has to think about what procedure and techniques should

be adopted in the study. He should arrive at the final choice by seeing that

the methodology chosen for project is indeed the best one, when

compared with others.

RESEARCH DESIGN :

Research design is the first and foremost step in methodology

adopted and undertaking research study. It is overall plan for the collection

and analysis of data in the research project. Thus it is an organized,

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systematic approach to be the formulation, implementation and control of

research project.

Infact a well planned and well balanced research design guards against

collection of irrelevant data and achieves the result in the best possible

way.

SAMPLE DESIGN :-

The universe of study being large, researcher has to resort to sampling

method of data collection. On the basis of a section of the universe selected

in a prescribed manner one is able to deduce for the universe. For the

sample results to be applicable on the universe, sample should be

adequately chosen so to make it representative and reliable.

SAMPLING PLAN:

Sample Size = 50 Employees

          Sample Area = Dabur India Limited,sahibabad,ghaziabad

Duration = Two (2) Months.

Ø DATA COLLECTION METHOD :

Data are the bricks with which the researcher has to make a house.

While the quality of research findings depend on data, the adequacy of

appropriate data in turn depends upon proper method of data collection. A

number of methods are at the disposal of the researcher of which one has

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to select the most appropriate one for visualizing the research objective.

Thus he has to see that the method adopted is compatible with the

resources and research study.

a) Primary Data : Data which are collected fresh and for the first

time and thus happens to be original in character. Primary data are

gathered for specific purpose.

b) Secondary data : Data that collected from primary data i.e., they

are already exit some where. For the purpose of our study we

collected both the data.

DATA COLLECTION:

            Data Sources:

(i)   Secondary Data through Internet

(ii) Primary Data through Questionnaire

(iii) Contact Method

(iv) Personal Interaction

DATA PRESENTATION AND ANALYSIS:

1.    Bar graphs

2.    Pie Diagrams

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DATA ANALYSIS

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Data Analysis

By having discussion with senior production officers of Dabur India Pvt.

Ltd. and filling of the questionnaire, the data was collected which is

analysed as follows: -

1. Type of performance appraisal preferred Table-1

S. No View Percentage1. Yes 85%2. No 15%

quaterly half-yearly monthly annually0

10

20

30

40

50

60

70

80

90

Interpretation

After analyzing the data, the results shows that 85% of the senior production officers prefer quarterly performance appraisal and 15% prefer half-yearly performance appraisal.

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2.Senior’s satisfied by subordinate’s performance

Table-2

S. No View Percentage1. Yes 85%2. No 15%

185%

215%

Satisfied with Subordinate performance

Interpretation

After analyzing the data, the results shows that 85% of the senior

production officers feel that their seniors are satisfied with their

performance and 15% can’t say.

This analysis shows there is lack of appraisal by the immediate seniors.

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3.Satisfied with their own Performance

Table-3

S. No View Percentage1. Yes 85%2. No 15%

185%

215%

Satisfied with their own performance

Interpretation

After analyzing the data, the results shows that 85% of the senior

production officers are satisfied with their own performance and 15%

are not satisfied with their own performance.

This implies that satisfaction level has to be increased among senior

production Officers.

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4. Performance appraisal improves performance

Table-4

S. No View Percentage1. Yes 100%2. No 0%

1100%

Improves Performance

Interpretation

After analyzing the data, the results shows that 100% of the senior production officers feels that performance appraisal do helps in performing better.Through this we come to know that process of performance appraisal is coming out to be positive and it should be continued.

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5. Information is submitted timely by the senior production officers to their seniors

Table-5

S. No View Percentage1. Yes 100%2. No 0%

1100%

Improves Performance

Interpretation

After analyzing the data, the result shows that 100% of the senior

production officers submit all the information timely to their

seniors.This shows that all the senior production officers submit all the

information timely to the seniors.

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6. Adequate and fair chance provided to defend against adverse entries

in your appraisal

Table-6

S. No View Percentage1. Yes 67%2. No 13%

Defend against adverse entries

Interpretation

After analyzing the data, the results shows that 67% of the senior

production officers feel that they are provided with a chance to

defend them against adverse entries in their appraisal whereas 33%

denies it.This shows that there is lack of chances provided to defend

against adverse entries in appraisal.

7.Reason for bad performance

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Table-7

Personal 16%Officials 16%Others 16%

No bad performance 52%

Personal Officials Others No bad performance0%

10%

20%

30%

40%

50%

60%

In percentage

In percentage

Interpretation

After analyzing the data, the results shows that 16% of senior

production officers performed bad due to personal reasons,16%

of senior production officers due to official reasons, 16% of

senior production officer’s due to other reasons and no bad

performance from the rest of the 52% of senior production

officers.

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This shows that there are some reasons, which are required to be rectified to improve performance.

8. Awareness of appraisal system.

Table-8

S. No View Percentage1. Yes 67%2. No 13%

Awareness of appraisal system

Interpretation

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After analyzing the data, the results shows that 67% of the senior

production officers are fully aware of the appraisal system and rest

33% are unaware of this system.This shows that awareness about the

performance appraisal system is to be increased.

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FINDINGSBased on my analysis of data collected during my study in Dabur

India Pvt Ltd, Sahibabad, Ghaziabad, I have got the following :-

1.) Performance appraisal in Dabur India Pvt Ltd, Sahibabad,

Ghaziabad , is done annually.

2.) For appraisal in Dabur India Pvt Ltd,Sahibabad,Ghaziabad,

a SELF-APPRAISAL form is given to the staff members and

they fill it up. And then after according to their self-

observation and through the appraisal form filled by the

staff members rating is given to the members. Accordingly

then incentives and promotions are granted.

3.) In Dabur India Pvt Ltd, Sahibabad, Ghaziabad, at the

majority senior staff members submit all the information

timely to their superiors.

4.) In Dabur India Pvt Ltd, Sahibabad, Ghaziabad, there is lack

of proper knowledge among senior production officers

about the procedure followed in Performance Appraisal.

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5.) There is lack of fair chances provided to defend yourself

against adverse entries in your appraisal.

6.) All senior production officers agree that performance

appraisal system helps them to perform better.

7.) There is lack of satisfaction level among the senior

production level officers regarding to their own work as

they have monotony at their work.

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LIMITATIONS

According to research undertaken by me, and the results

obtained, following are the recommendations to improve the

procedure of performance appraisal followed in Dabur India Pvt

Limited: -

1) Staff members should be provided with the training about

performance appraisal and they should be made very well

aware about the thing that this exercise can help them in

developing their performance and attitude which will help

them on their own part at majority and company at minority.

2) Senior-Subordinate meetings should be made very regular so

that every can keep his point in front without any hesitation

and that will add to their innovation and creation.

3) The process of performance appraisal should be made goal-

oriented.

4) Staff members should be provided with the well-defined

targets.

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Recommendations

As we know “Performance appraisal is a systematic and objective way of

judging the relative worth or ability of an employee in performing the task.

Performance appraisal helps to identify those who are performing their

assigned tasks and those who are not and the reasons for such

performance.”

The company should go for the 360degree performance appraisal.

Under this method the person whose performance is to be judged is in

between and his peers, supervisor, head and the manager of the

company is around him who rate the performance of the employee

based upon certain predefined criteria’s.The system is like:

360-degree Performance Appraisal

Person whose performance to rate

Supervisors Peers

Head

Manager

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The company should appraise the performance of the workers by

giving them some incentives, which motivate them to work to their

fullest capacity and to motivate them to work more and show good

and better results.

For the top management of the company it should offer them holiday

package, appraise performance by recognizing there work in meetings

etc. this will help to raise their moral and they can work better. They

don’t want financial help as they earn enough to maintain their status.

They want their work recognition.

For the lower group the company can increase their wages, give them

pension schemes, provide them the medical facilities etc because they

want financial help from the company to insure their proper living.

The should keep changing the raters for the performance appraisal

system from time to time so that they don’t become bias at anytime

for any employee.

The method of the company should be changed periodically so that

the employees have mo chance to complain for the method.

The criteria decided upon which the performance has to be rated

should not be fixed it should be changed from time to time.

The standards of the rating should be very specific, clear and concise.

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There should be the feeling of teamwork in the organization.

The system should be cost effective and it should suit the budget of

the company.

The performance, which is been measured, should be verifiable and

measurable afterwards also.

Above are few recommendations, which can be looked over while doing

the performance appraisal of the company.

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CONCLUSIONAfter collecting the information from the senior production officers

with the help of personal discussion, filling the questionnaire and

analyzing the data, I have derived the following conclusion –

In Dabur India Pvt Ltd,Sahibabad,Ghaziabad performance appraisal is

conducted annually. Under this process, a self-appraisal form has

been given and senior production officers have to fill that form which

throws light on their basic achievements during the past accounting

year.

After that the immediate boss who has been observing the

immediate subordinate throughout the year rates him according to

the self appraisal form filled and personal observation under

following factors-

a) Quality of work.

b) Quantity of work.

c) Job knowledge.

d) Dependability.

e) Innovation and creativity.

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f) Ability to learn.

g) Attendance.

h) Reactions to criticism.

i) Discipline.

j) Customer relations.

k) Subordinate development.

The rating given is confidential and out of the knowledge of their

subordinates. Accordingly, promotions and incentives are granted to the

deserving ones.

Rating given to the senior production officers is done confidentially and

whatever information is been filled in the self-appraisal form is not cross-

questioned.

The sole objective for taking part in performance appraisal of Senior

production officers in Dabur India Pvt Ltd,Sahibabad,Ghaziabad is to be

awarded with promotions and incentives but the basic reason why

performance appraisal is conducted is to develop the performance and

attitude.

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Senior production officers of Dabur India Pvt Ltd,Sahibabad,Ghaziabad

follow the procedure of performance appraisal given by the senior

managers because they have monotony in their work and they have no

time for any innovation or creativity.

Also I concluded that Dabur considers performance appraisal important

because of the following reasons

Performance appraisals provide employees and managers with

opportunities to discuss areas in which employees excel and those in which

employees need improvement. Performance appraisals should be

conducted on a regular basis, and they need not be directly attached to

promotion opportunities.

Personal Attention

1. During a performance appraisal review, a supervisor and an

employee discuss the employee's strengths and weaknesses. This

gives the employee individual face time with the supervisor and a

chance to address personal concerns.

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Feedback

2. Employees need to know when their job duties are being fulfilled and

when there are issues with their work performance. Managers

should schedule this communication on a regular basis.

Career Path

3. Performance appraisals allow employees and supervisors to discuss

goals that must be met to advance within the company. This can

include identifying skills that must be acquired, areas in which one

must improve, and educational courses that must be completed.

Employee Accountability

4. When employees know there will be regularly scheduled evaluations,

they realize that they are accountable for their job performance.

Communicate Divisional and Company Goals

5. Besides communicating employees' individual goals, employee

appraisals provide the opportunity for managers to explain

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organizational goals and the ways in which employees can participate

in the achievement of those goals.

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ANNEXURE

STUDY OF PERFORMANCE APPRAISAL SYSTEM

1. What type of performance appraisal you prefer?

Annually Quarterly

Monthly Half yearly

2. Are your seniors satisfied with your performance?

Yes No

3. Are you satisfied with your performance?

Yes No

4. If no do you think you can perform better?

Yes No

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5. Does performance Appraisal help you in performing better?

Yes No

6. Do you submit information timely to your superiors?

Yes No

7. Do you get adequate and fair to defend your self against adverse entries in your appraisal?

Yes No

8. What actually comes as the reason for your bad performance? (if any)

Personal Official Other

9. Are you fully aware of the appraisal system followed in your company?

Yes No

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10. Any suggestion to alter existing Performance Appraisal system of your company? ______________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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BIBLIOGRAPHY

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BIBLIOGRAPHY

MAGAZINE

Business Today

Advertising & Management

Free Press journal

NEWSPAPERS

Economic Times

Hindustan Times

Financial express

Business standard

WEBSITE

www.google.com

www.dabur.com

Books

Human resources development -T.N. CHABBRA

Human resources development - V.S.P. RAO

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