Table Of Contents

Sr. No. Topic Page No.

1 Introduction To Topic…………………………………………………………… 2

2 Executive Summary………………………………………………………………… 5

3 Objective Of Project…………………………………………………………………. 7

4 Scope Of The Project………………………………………………………………… 10

5 Pepsi Profile……………………………………………………………………………… 16

6 Company Profile………………………………………………………………………. 21

7 Introduction To Product……………………………………………………………. 26

8 Human Resource Management………………………………………………… 34

9 Recruitment & Selection…………………………………………………………… 49

10 Training & Development………………………………………………………… 61

11 Pepsi Interviews & Recruitment Surveys…………………………………… 62

12 Employee Retention…………………………………………………………………. 63

13 Performance Appraisal…………………………………………………………….. 76

14 Pay For performance……………………………………………………………….. 104

15 Data Analysis………………………………………………………………….......... 107

16 Questionnaire………………………………………………………………………….. 129

17 Findings & Recommendations………………………………………………….. 135

18 Conclusion……………………………………………………………………………….. 139

19 Bibliography……………………………………………………………………………..

.

141

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Introductio

n

To | 2

TopicIntroduction To The Topic

Human Resource

Human resources is a term with which many organizations describe the combination of traditionally administrative personnel functions with performance, Employee Relations and resource planning. The field draws upon concepts developed in Industrial/Organizational Psychology.

The objective of Human Resources is to maximize the return on investment from the organization's human capital and minimize financial risk. It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner.

Human resource management serves these key functions:

1. Selection 2. Training and Development 3. Performance Evaluation and Management 4. Promotions 5. Redundancy 6. Industrial and Employee Relations 7. Record keeping of all personal data. 8. Compensation, pensions, bonuses etc in liaison with Payroll 9. Confidential advice to internal 'customers' in relation to problems at work. 10. Career development

Management

Management in all business and organizational activities is the act of getting people together to

accomplish desired goals and objectives using available resources efficiently and effectively.

Management comprises planning, organizing, staffing, leading or directing, and controlling an

organization (a group of one or more people or entities) or effort for the purpose of

accomplishing a goal.

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Development

Development is a theory is a framework for the expansion of human capital within an organization

through the development of both the organization and the individual to achieve performance

improvement.

Adminstration

The administration of a business consists of the performance or management of business operations and thus the making or implementing of a major decision. Administration can be defined as the universal process of organizing people and resources efficiently so as to direct activities toward common goals and objectives.

Organising

An organization which distributes tasks for a collective goal. The word itself is derived from the Greek word organon, itself derived from the better-known word ergon - as we know `organ` - and it means a compartment for a particular job.

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Executive

Summary | 5

Executive Summary

Soft drink industry scenario the world is almost the same with two major players i.e. Pepsi Co.

and Coca-Cola having the major thank in the pie. The other Major player in the industry is

Cadbury-Schweppes and some local players in individual countries.

The major components of the industry consist of the concentrate manufactures, bottlers and the

sales and distribution network of the companies the rule and responsibilities of each of the are

different. The major activity taken up by the concentrate 2 India fountain sales form a very

insignificant part of the sales revenue. During the initial stages both soft drinks. Majors used a

network of independent bottlers to bottle and market their products. Independent bottling arose

primarily because it was not possible to create an effective organization for operating a vertically

integrated company with hundreds of geographically separated manufacturing unit and local

delivery operation given the limited transportation and communication system of the time and

the lack of sophisticated financial and management controls.

In India after the exist of Coke in 1977 the Indian Soft Drink market was controlled by Parle and

Pure Drinks. By the and of 1970 Campa Cola was practically alone in cola market Parles

introduced Thumsup in the beginning of 1980s. By the and of 80’s Parle with Limca, Gold Spot

and Thums up emerged as clear winner with around 60% market share.

In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This proposal

was rejected on the grounds that the import of concentrate could not be agreed and the use of

foreign brand name was not allowed. In year 1988 Pepsi again floated a project this time in

collaboration with Punjab Agro Industrial Corporation (PIAC) and Voltas India Limited and

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succeeded. Finally in June 1990 Pepsi was launched in India under the brand name of ‘ Lehar

Pepsi’. Taking full advantage of the liberalization policies of the government Pepsi set up a new

company in India called PepsiCo India Holding Pvt. A wholly around subsidiary Coca Cola

company which is a leader in Soft drink industry returned to India after a gap of 16 years in

1995. The most strategic step taken by Coca Cola was the purchase of Parle brands. With this

coke instantly had the ownership of countries tap soft drinks brands as well as got access to

Parles extensive 54 plant bottling as well as a pre set distribution network.

ObjectivesOf

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Project

Objectives Of The Project

The main and forecast objectives of the project are to scan thoroughly the Human Resource

Development and Management. It is more than two decades the HRD & HRM became popular

in the country. It was in 1975 a decision was made to start a dedicated department towards HRM,

initiated by Larsen & Turbo Limited.

Main goals to be achieved via this project are:

GOAL 1

The Human Resources organization will develop its professional competencies to further the

institution’s fulfillment of its mission and achievement of the Yeshiva University Strategic Plan

goals.

GOAL 2

Human Resources will undertake review and enhancement of Human Resources systems,

processes, procedures and policies using the principles of continuous quality improvement and

excellent and seamless client service.

GOAL 3

Human Resources will support the enhancement of University performance through competitive

positioning, policies and programs, appropriate assessment, recognition and reward mechanisms.

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GOAL 4

Human Resources will develop and deliver training programs to help staff and managers

accomplish the goals of the Yeshiva University Strategic Plan.

GOAL 5

Human Resources will support implementation of Affirmative Action Plans and expand diversity

outreach and training efforts.

GOAL 6

Human Resources will assist in development of appropriately future-focused labor management

philosophy and supporting strategies.

GOAL 7

Human Resources will provide support of Enterprise Resources Planning (ERP) initiatives,

including change management, and systems development activities.

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Scope

Of | 10

Project

Scope Of The Project

HUMAN RESOURCES DEPARTMENT

A) Activities Handled at a glance.

i) Service File (Employee’s file)

ii) Recruitment

iii) Leave

iv) Training

v) Resignation

B) Detailed procedure of the activities handled along with documentation involved:

i. Service File :

Curriculam Vitae

Proof of Educational Qualification (Mark sheets and Certificates)

Senior secondary certificate/ mark sheet

Higher secondary certificate/ mark sheet

Graduation mark sheet

Post Graduation mark sheet

Professional qualification / mark sheet

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Copy of appointment letter.

Detail sheet in original (annexure to interview call letter)

Two recent passport size photographs

Experience certificate/s

Relieving letter if possible

Promotion letter

Increment letter

Renewal letter

ii) Recruitment

Obtaining approval from competent authority – COO

Releasing an advertisement for recruitments.

Receiving applications.

Scanning / Scrutinizing the applications on the basis of criteria mentioned

Short listing the candidates

Sending the interview call letters

Sending invitation letter to panel members

To obtain confirmation calls and mails from respective candidates

Conduction of interview and selection of candidate/s, verification of concerned

certificates

Sending the appointment letter/s (in duplicate)

Receiving the acceptance copy duly signed

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iii) Training

To get the details of a training program.

To assess the need for providing the training of that particular program.

Getting it discussed with competent authority and obtaining the approval of CEO (via

note)

Sending suitable candidate/s concerned in that particular stream or area for the program.

iv) Resignation

One month prior notice is to be given.

Obtaining the approval from competent authority – COO (via note) and getting the

acceptance.

Handling over the all relevant document to the person concerned duly

acknowledged.

Clearance or recovery of dues if any related to company.

Issue of experience certificate and relieving letter.

v) Sanction of Leave

Balance of leave is to be checked before applying.

Applying for the leave in the prescribed format and getting it signed by the

recommending official.

Forwarding the same to the to COO for sanction.

Submitting the same to HRD.

Accordingly updations to be made

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FUNCTIONING:

MANPOWER ANALYSIS: -

It also goes manpower analysis in the organization. It sees that in which area

more manpower is needed and then fills up those posts. It looks that how efficient

the manpower is and accordingly provides training and development.

RECRUITMENT AND SELECTION: -

Firstly this department interviews the candidates and then they are sent to

the concerned departments. Then the H.O.D. interviews the candidate after which he

is finalized by the G.M. they go for recruitment through adds, walk-in interviews,

competitions and references.

SALARY AND WAGES:-

One of the important functions of this department is to administer the Salary

and wages of the entire company. They have all the details of the salary structure of

the employees and when they pass the salary then it is given through accounts

department.

PROVIDING TRAINING:-

Once the individuals are selected they are given training for 3 months.

POLICY & PROCEDURES:

Recruitment is done through advertisements and walk in interviews. Firstly the

personnel department before being sent to another department screens the

candidates.

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There is periodic performance appraisal for all the employees and promotion is

linked with that by this they weigh various qualities of the individual.

Training and development is provided to all the employees so that their efficiency

is increased.

Various facilities are provided for the welfare of employees’ link, Meals, Tea etc.

MAINTAINING GOOD INTERPERSONAL RELATIONS: -

This department also works to maintain good relations among that the

employees in the organization so that they have co-ordination as well as informal

structures are found.

DISCIPLINARY ACTION: -

This department also tries to maintain discipline in the organization. In case

any indiscipline is created then disciplinary actions are taken.

HANDLING GREVIENCES of EMPLOYEES:-

This department also listens to all the grievances of employees and tries to

be proactive in solving their problems so that they can work properly. There are

suggestions and complaints as well as problems.

ADMINISTRATION:-

It also administers the organization as a whole. It looks to all the

organization and strives to solve them and looks after the over-all administration of

the company that what is going on in the plant l and how each and every thing has to

be managed.

HUMAN RESOURCE AND TRAINING SUPPORT

The corporate human resource support system is involved in all Human

Resource Management and Human Resource Development activities.

THE HR SUPPORT PROVIDED TO THE AFFILIATED UNITS IS IN

TERMS OF:

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Recruitment and selection support for senior HOD level positions.

Profile | 16

INTRODUCTION

Pepsi-Cola was first made in New Bern, North Carolina in the United States in theearly 1890s by

pharmacist Caleb Bradham.On August 28, 1898 , "Brad's drink" was changed to "Pepsi-Cola"

and later trademarked on June 16,1903.Caleb Bradham bought the name "Pep Kola" from a local

competitor and changed itto Pepsi-Cola. "Pepsi-Cola" is an anagram for "Episcopal" - a large

church across the street from Bradham's drugstore. Caleb Bradham and his customers simply

thought the name sounded well or the fact that the drink had some kind of "pep" in it because it

was a carbonated drink;they gave it the name "Pepsi".

As Pepsi was initially intended to cure stomach pains, many believe Bradham coined the

Name Pepsi from either the condition dyspepsia (stomachache or indigestion) or the possible

one-time use of pepsin root as an ingredient (often used to treat upset stomachs). It was made of

carbonated water, sugar, vanilla, rare oils, and kola nuts while the original recipe included

the enzyme pepsin is disputed.

HISTORY

Pepsi is a world leader in convenient snacks, foods and beverages. Its revenue is more than 39

billion Dollars and over 185, 000 employees. The company consists of Pepsi Co Americas Foods

(PAF), Pepsi Co Americas Beverages (PAB) and Pepsi Co International (PI) Pepsi Co Americas

Foods includes all Latin America Food and snacks businesses and all business in Mexico. Pepsi

Co America Beverages includes Pepsi Co Beverages all North America and all Latin American

Beverage Businesses. Pepsi Co International includes in the United Kingdom, Europe, Africa

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Middle East and Asia. Pepsi Co Brands are available in 200 Countries .Some of the Pepsi Co

Brands names are more than 100 year old but the corporation is relative young. Pepsi Co was

founded in 1965. Pepsi and Coca cola merge with each other and the name of the product is

Pepsi Cola. Pepsi Co merged with the Quaker oats Company in 2001.

PEPSI HEADQUARTERS

Pepsi Headquarter is located in New York. The Seven Building Headquarter is designed by

Edward Durrell Stone.

MISSION

"To be the world's premier consumer Products Company focused on convenient foods and

beverages. We seek to produce healthy financial rewards to investors as we provide opportunities

for growth and enrichment to our employees, our business partners and the communities in

which we operate. And in everything we do, we strive for honesty, fairness and integrity."

VISION

Pepsi co’s responsibility is to continually improve all aspects of the world in which we

Operate environment, social, economic-creating a better tomorrow then today. It

encompasses citizens and corporate social responsibility, which are about doing the right things

for the society and for the business. It encompasses the heath of the company, which is

about fulfilling our mission of creating financial rewards and growth. We have articulated what

we stand for and the core values we are committed to support.

OBJECTIVES

The Objectives that the Pepsi Company wishes to achieve is that it wants to remain and

continue to be the best or number one beverage company in India. As Pepsi is already the

number one beverage company in India but it has to maintain its position power and status to in

order to achieve their target market.

BOARD OF DIRECTORS

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Pepsi’s business strategy and affairs are overseen by the Board of Directors, which is comprised

of 2 executive directors and 10 independent outside directors. Only independent outside directors

make up its three standing Board Committees.

Board of Directors (left to right): Victor J. Dzau, Arthur C. Martinez,

Sharon Percy Rockefeller, Daniel Vasella, Alberto Ibargüen, Lloyd G. Trotter, Dina Dublon,

Michael D. White, Ray L. Hunt, Indra K. Nooyi, Ian M. Cook, James J. Schiro

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CELEBRITIES FOR PEPSI

Amitabh Bachchan

Shahrukh Khan

Saif Ali Khan

Fardeen Khan

Kareena Kapoor

Preity Zinta

Sachin Tendulkar

Saurav Ganguly

Yuvraj Singh

Harbhajan Singh

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Rahul Dravid

Zaheer Khan

Mohammad Kaif

Priyanka Chopra

FAMOUS CATCH LINES

“Yehi Hai Right Choice Baby……Aaha !!”

“Nothing Official About It”

“Choice of Next Generation”

“More Cricket More Pepsi”

“Yeh Aazadi Hai Dil Ki”

“Yeh Dil mange More”

“Zor Ka Jhatka Dheere Se Lage”

“Pepsi Ke Liye Hum Besharam Hain”

“Yeh Pyaas Hai Badi”

“Do The Dew”

“Oye… Bubbly !!”

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Compan

y

Profile

DHILLON KOOL DRINKS AND BEVERAGES Pvt Ltd.

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Dhillon kool drinks & Beverages Pvt Ltd. Was started in 1989. Mr. Kewal Singh Dhillon &

PepsiCo partners invested more than U.S. $1 Billion.

In 1989, company started two filling stations in Phillaur and Panipat. Its registered office in

Chandigarh.

MEMBERS OF THE COMPANY

Kewal Singh Dhillon(CMD)

Kanwar Singh Dhillon(CEO)

Sanjay Kinger(PepsiCo partner)

Surinder Kumar Gupta(Director)

Manohar Lal Arora(Director)

B.C. Kataria(Plant Director)

Satinder Sharma(Sr. Manager & P.A. Department)

Sudhir Kumar Aggarwal(A/c’s Manager, Account Dept.)

S.S. Chaudhary(Sr. Engineer)

MISSION STATEMENT

“Our mission is to be the world’s premier consumer product’s company focused on convenient

foods and beverages. We seek to produce healthy financial rewards to invest as we provide

opportunities for growth and enrichment. Our employees, our business partners and the

communities in which we operate. And in everything we do, we strive for honesty, fairness and

integrity!” as exclaimed by Pepsi Co’s.

CORPORATE CITIZENSHIP

Pepsi Co’s believe that they are corporate citizen; it has a responsibility to contribute to the

quality of life in our commodities. This philosophy is put into action through support of social

agencies, projects and programs. The scope of this support is extensive-ranging from sponsorship

of local programs and support of employee’s voluntary activities to contribute to time, talent and

funds to programs of national impact. Each division is responsible for its own giving program.

Corporate giving is focused on giving where Pepsi Co’s employees volunteer.

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WELFARE ACTIVITIES

Company provides welfare activities to its employees like:

Uniform

Transportation facilities

Canteen

Annual meet etc.

DRINKS PRODUCED BY THE COMPANY

Pepsi

Mirinda

Mountain Dew

Aquafina

7up

DEPARTMENTS

HUMAN RESOURCE

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FINANCE

SALES & MARKETING

PRODUCTION & QUALITY

SHIPPING

PURCHASE

HEAD OFFICE

STORES

CORE VALUES AND PRINCIPLES

ORGANISATIONAL VALUES

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Our commitment is to deliver sustained growth, through empowered people, acting with

responsibility and building trust.

Commitment

Our values reflect our aspirations - the kind of company we want PepsiCo to be. We express our

values in the form of a commitment.

Sustained Growth is fundamental to motivating and measuring our success. Our quest for

sustained growth stimulates innovation, places a value on results, and helps us understand

whether today's actions will contribute to our future. It is about growth of people and company

performance. It prioritizes making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will get

the job done, while being consistent with the processes that ensure proper governance and being

mindful of the rest of the company's needs.

Responsibility and Trust form the foundation for healthy growth. It's about earning the

confidence that other people place in us as individuals and as a company. Our responsibility

means we take personal and corporate ownership for all we do, to be good stewards of the

resources entrusted to us. We build trust between ourselves and others by walking the talk and

being committed to succeeding together

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IntroductionTo

Product

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INTRODUCTION TO THE PRODUCT –SOFT DRINK

Soft drinks can trace their history back to the mineral water found in nature springs. Bathing in

natural springs has ling been consider a healthy thing to do and mineral water was said to have

curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind in

natural mineral water.

The first marketed soft drinks (noncarbonated) appeared in the 17 th century. They water made

from water and lemon juice sweetened with honey. In 1676, the comparing de lemonades of

Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of

lemonade on their backs and dispensed cups of the soft drink to the thirsty Parisians.

In 1767, an Englishman, Dr. Joseph priestly, created the drinkable manmade glass of carbonated

water. Three years later, the Swedish chemist Torbern Bergman invented a generating apparatus

that made carbonated water from chalk by the use of sulfuric acid. Bergman’s apparatus allowed

imitation mineral water to be produced in large amounts.

In 1810, the first us plant was issued for the “means of mass manufacture of imitation mineral

water “to Simons and Rundell of Charleston, South Carolina. Carbonated beverages did not

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achieve great popularity in America unit 1832, when John Mathews mass manufactured his

apparatus for sale to others.

The drinking of either natural of artificial mineral water was considered a healthy practice.

American pharmacists. Who were selling most of the mineral water started to add medicinal and

other flavorful herbs to the unflavored beverage example, birch bark dandelion, sarsaparilla and

fruit extracts. The early drugs stores with their soda fountains become a popular part of America

culture. Customer wanted to take drinks with them and the soft drink bottling industry grew from

the customer demand

Over 1500 US patents were filled either for a cork, cap or lid for the carbonated drink bottle

tops. The bottle tops were under a lot of pressure from the gas. Inventors were trying to find the

best way to prevent the carbon dioxide (bubbles) from escaping. In 1892, Willam painter, a

Baltimore machine stop operator, machine stop operator patented the “crown cork bottle seal”. It

was the first very successful method of keeping the bubbles in the bottle.

In 1899, the first patent was issued for a glass-bowing machine for the automatic production of

glass bottles, earlier glass bottles had all been hand blow. Four years later, the mew bottle-

blowing machine was in operation. The inventor, Michel J Owens, an employee of Libby Glass

Company, first operated it. Within a few years, glass bottle production increased from 1500

bottle a day to 57000 bottles a day.

ABOUT THE SOFT DRINK

WHAT’S IN SOFT DRINK?

Soft drink has been part of American lifestyle for more than 100 years. Many of today’s soft

drinks are the same as the first ones enjoyed in the 1800’s. Soft drink production begins with

creation of flavored syrup using a closely guarded company recipe.

The syrup is mixed with purified water and then carbonated by adding carbon dioxide gas under

pressure. This carbonation creates the “tingle fizz” that gives soft drinks a refreshing taste.

Now for a closer look at soft drink ingredients……………

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Like other foods, the ingredients that are used in making soft drink are approved and closely

regulated by the US Food and Drug Administration (FDA). All the ingredients used in soft

drinks are found in a variety of other foods.

WATER

Soft drink production starts with a pure source of water. Regular soft drink contains 90%

water while diet soft drink contains up to 99% water Drinking water contains trace

amount of various elements that affect its taste. You have probably noticed that top differ

in carious regions of the county. Bottler use sophisticate filtering and other treatment

equipments to remove any residual impurities and to standardize the water used to make

soft drinks. That’s why your favorite soft drink tastes the name in New York as it dies in

India.

CARBON DIOXIDE

A colorless and odorless gas, carbon dioxide is the essential characterizing ingredient in

all “carbonated” beverages. It is given off when we breathe and is used by the plants to

product oxygen.

When dissolved in water, carbon dioxide imparts taste. For that reason natural sources of

carbonated. Of effervescent, mineral water were once highly prized. These rare mineral

water were once also believed to have beneficial medicinal properties. Efforts to make

and sell “artificial effervescent mineral water” underway Europe and US by 1800.

It was the innovative step of adding flavors to these popular “soda water” that gave birth

to the soft drink beverages we enjoy today. In these days of soft drink manufacturing,

carbon dioxide was made from sodium salts. This is why carbonated beverages were

called, sodas or “soda water”.

Today bottlers buy pure carbon dioxide as a compressed gas in the high-pressure

cylinders. Carbon dioxide gas is absorbed into flavored soft drink in a carbonator

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machine just before the container is sealed. While under pressure and chilled, soft drink

may absorb up to four times the beverage volume of carbon dioxide.

FLAVORS

One of the most important ingredients in the soft drinks is flavoring. Most soft drink

bottles mix many individual flavors to create distinctive tastes. Natural flavors in the soft

drink come from spices, natural extracts and oils. Fruit –flavored soft drink such as

orange and lemon-lime often contains natural fruit extracts. Other flavors such as root

beer and ginger are contain flavoring made from herbs and spices.

There are also some artificial or man made flavoring used in soft drinks. Nature does not

produce enough of some flavors to satisfy world demand. Also some flavors are limited

geographically and seasonally.

COLORS

Many people do not realize important color is to taste perception. Color affects our

psychological impression of food. If you don’t believe it. Try eating a familiar food in the

dark. The color used in the food and beverages comes both from natural and synthetic

sources.

CAFFEINE

Caffeine is substance that occurs naturally in more than 60 plants including coffee beans,

tealeaves, kola nuts and cocoa beans. In some cases, small amounts of caffeine are added

to soft drinks as a part of the flavor profile. The amount of caffeine in soft drinks is only a

fraction of that found in an equal amount of coffee or tea.

Caffeine has a classic bitter taste that enhances other flavors. It has been part of almost

every cola and pepper type beverage since they were first formulated more than 100 years

ago and has been enjoyed in coffee, tea and chocolate beverages for centuries.

Even though some people feel the effects of caffeine are harmful, scientific research has

refused these claims. The ling history of caffeine’s use confirms that it is safe when

consumed in moderation. For people who wish to restrict their caffeine intake, many

caffeine free soft drinks are available.

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ACIDULANTS

Similar to fruit juices and many other food products, most drinks are slightly acidic.

Acidulates add a pleasant tartness to soft drinks for one or two common food acidulates

(phosphoric acid and citric acid) occasionally; other acidulates such as malice acid is also

used.

PRESERVATIVE

Soft drinks do not normally get spoiled because of their acidity and carbonation.

However, storage conditions and storage tome can sometimes impact taste and flavor. For

this reason some vs. contains small amounts of preservatives that are commonly used in

many foods.

POTASSIUM

Potassium is another essential nutrients found in many natural and man made food

ingredient like sodium, potassium exists naturally in drinking water and therefore, in soft

drinks. Small amount of potassium are also found in some of the flavoring agents and

other ingredients used in soft drinks.

SODIUM

Because the name “soda pop” and “soda water” were associated with early soft drinks.

Many people falsely believe that carbonated beverages contains significant amount of

sodium. That is true.

Sodium, the name form of various salts, is present in many natural and man made

compounds. It is an essential nutrient responsible for regulating and transferring body

fluids. As well as other important body functions. Although an adequate daily intake of

sodium is necessary for good health, excessive consumption has been to high blood

pressure in some people.

SWEETENERS

Non-diet soft drinks

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Most regular (non-diet) soft drinks are sweetened with either sucrose or high fructose corn syrup,

(HFCS). A mixture of these sweeteners many also be used. Sucrose, the familiar sweetener in

your sugar bowl, cines firm sugarcane or sugar beets.

HOW SOFT DRINKS ARE MADE?

1START WITH PURE WATER!

Soft drinks begin with purified water (much clearer than the tap water you drink at home).

The soft drink manufacturer filters tap water through fine, clean sand and gravel to get rid of any

undissolved impurities that may pass through the finished drink and ensures that the water does

not contain any unwanted particles.

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2ADD THE FLAVOUR

Once the water is purified, flavourings are added. These are prepared from natural and

nature identical sources and are added to a mixture of sugar and purified water to make a syrup.

This forms the soft drink base.

3NEXT STEP, ADD THE BUBBLES

The purified water and syrup base are then blended together to form a 'still' drink and then

mixed with carbon dioxide gas (CO2) in a machine called a carbonator.

4FILLING THE BOTTLES

After the drink has been carbonated, it is transferred under pressure to the filling machine.

Here, the bottles or cans are filled and are then passed by conveyor belt to the sealing machine.

5THE FINAL STAGE

The sealed bottles and cans are still quite cold at this stage, and if packed at this

temperature, moisture which forms on the container because of condensation would cause the

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cartons to become wet and less manageable. To prevent this, the bottles and cans are passed

through a hot water spray to bring them up to 'room' temperature.

6LABELS & PACKAGING

Most soft drink bottles have labels applied by a labeling machine. There are still some

bottles, mostly returnable, which have the label information printed directly on to the glass. Cans

also have the label printed on them, before they arrive at the soft drink manufacturing plant.

Human | 35

ResourceManageme

nt

HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is a process of bringing people and organization

together so that the goals of each are met. It is that part of the management process which is

concerned with managing Human Resources in an organization.

Simply put, Human Resource Management is a management function that helps managers

recruit, select, train, and develop members for an organization.

HRM tries to secure the best from people wining their whole hearted co-operation. In short, it

may be defined, as the art of procuring, developing and maintaining competent work force to

achieve the goals of an organization in an effective and efficient manner.

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Followings are the leading definitions of HRM………………………..

“Human Resource Management is a series of integrated decisions that from the

employment relationship: their quality contributes to the ability of organization and the

employees to achieve their objective”

“Human Resources Management is concerned with the people dimension in

management. Since every organization is made up of people, acquiring their service,

developing their skills/ motivating them to higher levels of performance and ensuring

that they continue to maintain their commitment to the organization are essential to

achieving organization objectives. This is true, regardless of the type of organization–

government business, education, health, recreation, or social action”

“Human Resource Management is the planning, organizing, directing and controlling

of the procurement, development, compensation, integration, maintenance and

separation of human resources to the end individual, organization, and social objectives

are accomplished.

Thus, HRM refers to set programs, functions and activities designed and carried out in order

to maximize both employee as well as organization effectiveness.

Features/Characteristics/Nature of HRM

1. Pervasive Force

HRM is Pervasive in nature. It is present in all enterprises. It permeates at every level of

management within an organization.

2. Action Oriented

HRM focuses attention on action rather than on record keeping, making procedures or

rules.

3. People Oriented

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HRM is all about people at work, both as individuals and group. It helps people on

assigned jobs in order to produce good results. The resultant gains are due to the people

and it motivates them toward further improvements in productivity.

4. Continuous Function

According to Terry, HRM is not a one short deal. It cannot be practiced only one hour

each day or one day a week. It requires a constant alertness and awareness of human

relation and their importance in every day operations.

5. Individual Oriented

HRM tries to help employees develop their potential fully. It enable them to give out their

best to the organization. It motivates employees through a systematic manner of

recruitment, selection, training and development coupled with fair wage policies.

6. Development Oriented

HRM intends to develop the full potential of employees. The reward structure is tuned to

the needs of employees. Training is offered to sharpen and improve their skills.

Employees are rotated on various jobs so that they gain experience and exposure. Every

attempt is made to use their talents fully in the service of organizational goals.

7. Integrating Function

HRM builds and maintain cordinal relations between people working at various levels in

the organization. In short, it tries to integrate human assets in the best possible manner in

the serviceof an organization.

8. Inter-Disciplinary Function

HRM is a multi-disciplinary activity, utilizing knowledge and inputs drawn from

psychology, sociology, anthropology, economics etc. to unravel the mystery surrounding

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the human brain, managers, need to understand and appreciate the contributions of all

such ‘soft’ disciplines.

SCOPE OF HRM

Procurement

Procurement includes recruitment and selection of right kinds of personnel to occupy the

various posts in the organization.

It includes :-

(a) Determination of manpower requirements

(b) Job Analysis

(c) Nature and scope of recruitment

(d) Employee selection and

(e) Placement of employees

Training & Development

Training & Development is a must to prepare the worker gaining proficiency in the methods

and techniques of work assigned to them. Efforts may be made to involve the employees in

the actual management situations. Employees participation in committee and Board meetings

may also contribute toward their development.

Job Analysis & Job Description

Job Analysis and Job Description involves the studies of job requirements of the enterprises

and assignment of well defined functions to jobs so that qualified employees may be hired. It

also forms the basis of wage determination.

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Remuneration

Provision of adequate remuneration for the work done by an employee involves Job Analysis

and Job Evaluation. It includes determining wage rates, incentives systems of wage payment,

merit-rating and performance appraisal.

Personnel Records

The function of personnel records includes collection bio-data of all employees pertaining to

their work e.g., training job performance, aptitude payment records.

Welfare and Industrial Relations

It includes health and safety programme, sanity facilities, recreational facilities, group

insurance employee association etc.

OBJECTIVES OF HRM

The primary objective of HRM is to ensure the availability of a competent and willing

workforce to an organization. Beyond this, there are other objectives, too.

Specifically, HRM objectives are four fold – Societal, Organisational, Functional and

Personal.

1) Societal Objectives

To be ethically and socially responsible to the needs and challenges of the society while

minimizing the negative impact of such demands upon the organization. The failure of

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organizations to use their resources for the society’s benefit in ethical ways may lead to

restrictions.

For example, the society may limit HR decisions through laws that enforce reservation in

hiring and laws that address discrimination, safety, or other such areas of societal

concern.

2) Organisational Objectives

To recognize the role of HRM in bringing about organizational effectiveness. HRM is not

an end itself. It is only a means to assist the organization with its primary objectives.

Simply stated, the department exists to serve the rest of the organization.

3) Functional Objectives

To maintain the department’s contribution at a level appropriate to suit the organisation’s

demands. The department’s level of service must be tailored to fit the organization it

serves.

4) Personal Objectives

To assist employees in achieving their personal goals, at least insofar as these goals

enhance the individual’s contribution to the organization. Personal objectives of

employees must be met if workers are to be maintained. Retained and motivated.

Otherwise, employee performance and satisfaction may decline and employees may leave

the organization.

HRM OBJECTIVES AND FUNCTIONS

HRM Objectives Supporting Functions

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1. Societal Objectives

a) Legal Compliance

b) Benefits

c) Union-management Relations

2. Organisational Objectives

a) Human Resource Planning

b) Recruitment

c) Selection

d) Training & Development

e) Appraisal

f) Placement

g) Assessment

3. Functional Objective a) Appraisal

b) Placement

c) Assessment

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4. Personal Objective

a) Training & Development

b) Appraisal

c) Placement

d) Compensation

e) Assessment

FUNCTIONS OF HRM

The functions of HRM can be broadly

classified into two categories, viz.,

1) Managerial Functions

A) Planning

B) Organizing

C) Directing

D) Controlling

2) Operative functions

A) Employment

i) Job Analysis

ii) Human Resource Planning

iii) Recruitment

iv) Selection

v) Placement

vi) Induction & Orientation

B) Human Resource Development

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i) Performance Appraisal

ii) Training

iii) Management Development

iv) Career Planning & Development

a) Internal Mobility

b) Transfer

c) Promotion

d) Demotion

3) Compensation

A) Job Evaluation

B) Wage & Salary Administration

C) Incentives

D) Bonus

E) Fringe Benefits

F) Social Security Measures

4) Human Relations

5) Effectiveness of HRM

A) Human Resource Accounting

B) Human Resource Audit

C) Human Resources Research

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All the above maintained Categories and their respective sub headings are discussed in

details as follows :-

1) Managerial Functions :-

A) Planning

It is pre-determined course of action. Planning is determination of personnel programmes and

changes in advance that will contribute to the organizational goals. In other words, it involves

planning of human resources, requirement, recruitment, selection, training etc. It also involves

forecasting of personnel needs, changing values, attitudes and behavior of employees and their

impact on organization.

B) Organizing

An organization is a means to an end. It is essential to carry out the determined course of action.

Thus, organization establishes relationships among the employees so that they can collectively

contribute to the attainment of company goals.

C) Directing

The next logical function after completing planning and organizing is the execution of the plan.

The basic function of personnel management at any level is motivating commanding, leading and

activating and human relations besides securing employee contributions.

D) Controlling

After planning, organizing and directing the various activities of the personnel management, the

performance is to be verified in order to know that the personnel functions are performed in

conformity with the plans and directions. Controlling also involves checking, verifying and

comparing of the accruals with the plans, identification of deviations if any and controlling of

identified deviations.

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2) Operative Functions

The Operative Functions of personnel management are related to specific activities of personnel

management, viz., employment, development, compensation and relations. All these functions

are interacted by managerial functions.

A) Employment

It is the first operative function of HRM. Employment is concerned with securing and employing

the people possessing required kind and level of Human Resources necessary to achieve the

organizational objectives. It covers the functions such as job analysis, human resources planning,

recruitment, selection, placement, induction and internal mobility.

i) Job Analysis

It is the process of study and collection of information relating to the operations and

responsibilities of a specific job.

It includes :-

Collection of data, information, facts and ideas relating to various aspects of jobs

including man, machines and materials.

Preparation of job description, job specification, job requirements and employees

specification which will help in identifying the nature, levels and quantum of

human resources.

Providing the guides, plans and basis for the job design and for all operative

functions of HRM.

ii) Human Resources Planning

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It is a process for determination and securing that the organization will have an adequate number

of qualified persons, available at proper times, performing jobs which would meet the needs of

the organization and which would provide satisfaction for the individuals involved.

It involves :-

Estimation of present and future requirements and supply of human resources basing on

objectives and long range plans of the organization.

Calculation of net human resources requirements based on present inventory of human

resources.

Taking steps to mould, change, and develop the strength of existing employees in the

organization so as to meet the future human resource requirements.

Preparation of action programmes to get the rest o human resources from outside the

organization and too develop the human resources of existing employees.

iii) Recruitment

It is the process of searching for prospective employees and stimulating them to apply for jobs in

an organization.

It deals with :-

Identification of existing sources of applicants and developing them

Creation/Identification of new sources of applicants.

Stimulating the candidates to apply for jobs in the organization.

Striking a balance between internal and external sources.

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iv) Selection

It is the process of ascertaining the qualifications, experience, skill, knowledge etc., of an

applicant with a view to appraising his/her suitability to a job appraising.

This function includes :-

Framing and developing application blanks

Creating and developing valid and reliable testing techniques

Formulating interviewing techniques.

Checking of references

Setting up medical examination policy and procedure

Sending letter of appointment and rejection

Employing the selected candidates who report for duty.

V) Placement

It is the process of assigning the selected candidate with the most suitable job in terms of job

requirements. It is matching of employee specifications with job requirements. This includes :-

Counseling the functional managers regarding placement.

Conducting the follow-up-study, appraising employee performance in order to determine

employee adjustment with the job.

Correcting misplacements, if any.

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vi) Induction and Orientation

Induction and orientation are the techniques by which a new employee is rehabilitated in the

changed surrounding and introduced to the practices, policies, purposes and people etc., of the

organization. This includes :-

Acquaint the employee with the company philosophy, objectives, policies, career

planning and development, opportunities, product, market share, social and community

standing, company history, culture etc.

Introduce the employee to the people with whom he has to work such as peers,

supervisors and subordinates.

Mould the employee attitude by orienting him to the new working and social

environment.

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B) Human Resource Development :-

i) Performance Appraisal

It is the systematic evaluation of individuals with respect to their performance on the job and

their potential for development. It includes :-

Developing policies, procedures and techniques

Helping the functional managers

Reviewing of reports and consolidation of reports

Evaluating the effectiveness of various programmes

ii) Training

It is the process of imparting the employees the technical and operating skill of employees. It

includes :-

Identification of training needs of the individuals and the company

Developing suitable training programmes.

Evaluating the effectiveness of training programmes

iii) Management Development

It is the process of designing and conducting suitable executive development programmes so as

to develop the managerial and human relation skill of employees. It includes :-

Identification of the areas in which management development is needed

Conduction of development programmes

Evaluating the effectiveness of executive development program

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Recruitmen

t

& | 51

SelectionRecruitment And Selection @ PepsiCo

In Dhillon Kool Drinks & Beverages Pvt Ltd. , recruitment and selection refers to the chain and

sequence of activities pertaining to recruitment and selection of employable candidates and job

seekers for an organization. Every enterprise, business, start-up and entrepreneurial firm has

some well-defined employment and recruitment policies and hiring procedures. The human

resources department of large organizations, businesses, government offices and multilateral

organizations are generally vested with the responsibilities of employee recruitment and

selection.

Macro Human Resources Management Strategy

The HR department charts out the macro or long-term human resources development strategy of

an organization. Keys to this strategy are the processes and initiatives related to recruitment and

selection of new employees; these are carefully intertwined with the long-term corporate

objectives and goals of the organization. Top management also gives valuable input and makes

suggestions about expectations for the skills and qualities new employees need to have.

Defining Job Openings and Available Positions

The first process of any recruitment and selection program is defining the needs and

requirements for new workers and professionals for outlined job positions and openings.

Carefully devised and developed roles, responsibilities, skill sets and qualifications are defined

and the job postings placed in recruitment ads in various media. Large workforce organizations

also work with staffing agencies, HR contractors and online job portals to outsource certain

employee requirements.

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Evaluation Period

A rigorous process of evaluation follows the recruitment ads placement phase. Curriculum vitas

(CVs) and resumes of various candidates applying for the jobs are screened, classified and

filtered. Interviews are scheduled with the earmarked candidates. As per specific organizational

policies, written tests may be conducted. Face-to-face interviews are conducted and job seekers

and candidates evaluated on various parameters and organizational metrics.

Selection Process

Reference checks and detailed background checks are carried out to verify facts and matters

presented in resumes and CVs. Follow-ups are done with certain selected candidates to firm up

the hiring process. A thorough evaluation of the defined skill sets and qualifications of short

listed candidates, their written materials and work samples is done again in a transparent and

objective manner. Additional interviews or final interviews are conducted during this last stage

of recruitment and the hiring decision is finalized.

In Dhillon Kool Drinks & Beverages Pvt Ltd. the process of selection include following steps:

1. Reception

2. Invited the applications

3. Selection Test

4. Selection Interviews

5. Hiring authority decisions

6. Medical examination

7. Placement

Induction Process

Once the chosen candidates have been informed of their selection for the job postings, they are

granted offer letters and apprised briefly about their roles and responsibilities. During this

process, the chosen candidates are encouraged to ask questions about organization philosophies,

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work culture and employee practices. They are the informed about start dates, induction

programs, compensation packages and other details about their jobs.

It is the process to discover sources of manpower to meet the requirement of staffing schedule

and to employ effective measures for attracting that manpower in adequate numbers to facilitate

effective selection of an efficient working space.

Recruitment of candidates is the function preceding the selection, which helps create a pool of

prospective employees for the organisation so that the management can select the right candidate

for the right job from this pool. The main objective of the recruitment process is to expedite the

selection process.

Recruitment is a continuous process whereby the firm attempts to develop a pool of qualified

applicants for the future human resources needs even though specific vacancies do not exist.

Usually, the recruitment process starts when a manger initiates an employee requisition for a

specific vacancy or an anticipated vacancy.

Recruitment refers to the process of searching and appointing prospective candidates in an

organization. An organisation must undertake the recruitment procedure if it wants to appoint

the right people.

Methods of recruitment:

1. Internal Recruitment: vacancies are filled with people from within the organization.

2. Direct Recruitment: candidates are screened and short listed directly from the Institutes, also

called Campus Recruitment.

3. Indirect Recruitment: vacancies are advertised in Newspapers and other media such as

Television, Internet etc.

4. Placement Consultants: Companies place give their manpower requirements to Placement &

Recruitment Consultants who undertake the job of identifying suitable candidates for the

Company. It may include notification to employment exchanges etc.

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5. Present Employees: may suggest their friends or acquaintances to fill a particular position.

ON ROLL JOBS

Positions in the organization

Already existing position

New approval position

In the organization generally the positions will occur at time of resignation of the employee,

retirement, expire of the employee, transfer or promotion of the employee. New approval

position is the annual operation plan. Introducing new positions into the organization.IJP is the

Internal Job Posting used for only the existing employee in the organization and not for the new

approval position

Sources of recruitment

The generated gaps will be filled by using any of these sources

Consultancy

Employee referrals

IJP

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Consultancy: This source is being used by the company to fill the vacancy; the desire job

description of the position will be given to the consultancy. Depending up on the JD they work

out and gather suitable profiles of the candidates. The obtained profiles will be mailed to the

company , ones it get the approval from the company , those candidates will be sent to the

interview on given schedule time.

Employee Referral: Recruitment method in which the current employees are encouraged and

rewarded for introducing suitable recruits from among the people they know.The employee of

the company has the chance of referring the candidates for the positions. In the next step they

will be sent to the direct interview.

IJP (Internal Job Positioning):

This is an internal process for the existing employees, to apply for higher position with in the

company

Eligibilities

Employees should have min of 18 months experience of related work

Have chance of applying for next 2 level positions

Employees should get min of 2-2 rating in the PDR(Performance Development

Rating)

Recruitment and selection process (On roll jobs)

Recruitment is the process of searching the candidates for employment and stimulating them to

apply for jobs in the organization. Recruitment is the activity that links the employers and the job

seekers. The recruitment is the process of searching for prospective employees and stimulating

them to apply for the jobs in the organization. The recruitment and selection process of CE

positions .It includes a series of steps, as mentioned below:

Line manager

HR manager

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Psychometric test

Unit manager

Line Manager: An employee's immediate superior, who oversees and has responsibility for the

employee's work. A line manager at the lowest level of a large organization is a supervisor, but a

manager at any level with direct responsibility for employees' work can be described as a line

manager.

The line managers for the CE’s are the TDM’s(Territory Development Manager’s) will take the

interviews to the interviewees, the candidates who get selected in the round will be short listed

and will be moved to the next step

HR Manager : The HR manager responsible for personnel sourcing and hiring, applicant

tracking, skills development and tracking, benefits administration and compliance with

associated government regulations. In this the candidates will be interviewed by the HR

manager. The Hr manager will filters the candidates depending up on the job requirements and

priorities and then short listed candidates will be sent to the online test

Psychometric Test : It is the field of study concerned with the theory and technique of

educational and psychological measurement, which includes the measurement of knowledge,

abilities, attitudes, and personality traits. The field is primarily concerned with the construction

and validation of measurement instruments, such as questionnaires, tests, and personality

assessments.

In this round the candidates will face an online test. This test will be handled by third party and

candidates need to get passing marks. If they are not up to the mark will be rejected and the rest

of them will be moved to the final interview

Unit Manager : Potions within this job family are assigned responsibilities which involve

serving as the administrator and supervisor of a multi disciplinary team of staff members who are

assigned to work within a specific offender unit or multiple community work centers; directs the

operations of a semi-autonomous unit within a minimum or maximum-sized institution or

separate community work centers.

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This is the final stage of the interview conducted by the unit manger who is responsible for every

aspect that takes place in the organization. The candidates who get selected in this round are

ultimately selected in the interview.

OFF ROLL JOBS

PSR – Job Description

PSR jobs are off rolled jobs, fall under distribution role.

JD: The primary work is to get orders from the outlets and need to reach the specified target.

Secondary work is to create new accounts i.e. getting orders from new outlets.

They are supposed report directly to their concern CE (Customer Executive)

IMPORTANCE OF PSR

A PSR are the sale persons, they involved in selling products of our company in return for

money. It is an act of completion of a commercial activity.

It’s almost impossible for an entrepreneur to run a business without a sales strategy. This in turn

requires somebody, not necessarily the entrepreneur, to have a talent for selling products and

services to businesses or the general public.

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A sale is completed by the seller or the provider of the goods or services to an acquisition or

appropriation or request followed by the passing of title (property or ownership) in the item and

the application and due settlement of a price, the obligation for which arises due to the seller's

requirement to pass ownership, being a price he is happy to part with ownership of or any claim

upon the item. The purchaser, though a party to the sale, does not execute the sale, only the seller

does that. To be precise the sale completes prior to the payment and gives rise to the obligation

of payment. If the seller completes the first two above stages (consent and passing ownership) of

the sale prior to settlement of the price, the sale is still valid and gives rise to an obligation to

pay.

Without such a person or team, a business will struggle to remain profitable. In fact, the success

of a business plan is likely to depend on the expertise of sales staff

Increasing sales and market share - it's perhaps the simplest reason for hiring a salesperson, but

one of the most sensible. Once you have established there's a need for your product or service

you need to maximize your possible revenue. A professional salesperson can help you do this

A salesperson is therefore critical to a business. As well as improving sales revenue and

increasing market share, the best salespeople take advantage of opportunities, and suggest new

areas into which a business might successfully move.

IDEAL PROFILE

The PSR’s are the frontline people who will directly contact the customers. The minimum

qualification they have to maintain is intermediate and he should be needy person. The young

people will suit more to this profile rather than the older one. They will be energetic, with fresh

blood and can work harder.

PSR’s should be familiar with both national and local languages i.e., for a punjabi candidate it is

Hindi and Punjabi. Since Punjab is the place where we find many different cultured people, hence

national language helps them to maintain the communication with the customer.

This profile emphasis mostly on Hindi and Punjabi rather than English and the candidates should

be as tough handed since they have to work under sun and even late nights in the season time

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specially, unless they are hard workers they can’t stick to the job. So they have to work hard at all

times.

If the candidate is an experienced person it will be easy to both candidate and CE to handle the

things. Since an experienced person holds more knowledge compared to a fresher which saves

time and money in turn. It even makes the job easy to perform.

Recruitment and selection (off role jobs)

Consultancies

Employee referrals

HR Manager

Consultant :It is an individual who possesses special knowledge or skills and provides that

expertise to a client for a fee. Consultants help all sorts of businesses find and implement

solutions to a wide variety of problems, including those related to business startup marketing,

manufacturing, strategy, organization structure, environmental compliance, health and safety,

technology, and communications.

Some consultants are self-employed, independent contractors who offer specialized skills in a

certain field; other consultants work for large consulting firms, such as Anderson Consulting or

Gemini Consulting, that offer expertise in a wide range of business areas; and still other

consultants hail from academia.

Company directly contact the consultancies and specifies how many candidates are required to

fill the gap. Then after the consultancy will work on it and send the profiles of candidates to the

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company. Ones after getting the approval by the company they specifies the interview schedule

for these candidates who are supposed to come for the interview.

Employee referral:It is an internal recruitment method employed by organizations to identify

potential candidates from their existing employees' social networks An employee referral scheme

encourages a company's existing employees to select and recruit the suitable candidates from

their social networks.

As a reward, the employer typically pays the referring employee a referral bonus. Recruiting

candidates using employee referral is widely acknowledged as being the most cost effective and

efficient recruitment method to recruit candidates and as such, employers of all sizes, across all

industries are trying to increases the volumes they recruit through this channel.

HR Manager

A human resources (HR) officer develops, advises on and implements policies relating to the

effective use of personnel within an organization.

The candidates will be directly interviewed by the HR manager. Depending up on the priorities

candidates will get selected.

Important questions in the interview

At Dhillon Kool Drinks & Beverages Pvt Ltd. , Generally the interview questions depends up on

the resume of the candidates

Regarding experience

If they having any experience, questions will be about the previous job like as job

profile and more

Family background

Quires from resume

Like as hobbies, and educational details

Why did he leave the previous organization

Own a bike or not

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In turn the HR Manager will analyze the candidate in the followings sectors too

Ability to Prospect – Do they know how to go about finding qualified potential buyers

for the product?

Product Knowledge – Do they have some industry, or related industry, experience or

education?

Negotiating/Securing the Order – Do they possess the strength to ask for the money

and are they willing to work with the client to establish the needs of the client and make

those fit the corporate structure? We don’t want hard closers. We want people that help

their clients buy.

Problem Solving – Are they defensive or do they listen to a problem fully before trying

to achieve resolution?

Reporting – Will they communicate information back to you in a timely manner? Will

they follow your company’s processes and procedures?

Time Management /Flexibility – Are they capable of managing their time in order to get

more sales-time out of every day? Are they willing to be flexible in their scheduling to

accommodate client needs?

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Training and Development

After selecting the candidate it is necessary to give them proper training for the particular job?

Under it the human resource department attach the new employee with the existing

employee.The fresher may judge all the activities of the existing employees. The training period

is about 2 to 3 weeks. After completed the training the employee work independently.

“Training is the of increasing the knowledge and skill of an employee for doing a particular

job.”or Training is a short term educational process and utilizing a systematic and

organized procedure by which employees learn technical knowledge and skills for a definite

purpose.

“Development is a systematic process of growth and development by which the managers

develop their abilities to manage ,or it is concerned with improving the performance of the

managers by giving them opportunities for growth and development, which in tern

depends on organasation structure of the company.”

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“Pepsi Interview & Recruiting Surveys”

Pepsi Interview & Recruiting Surveys are detailed accounts of the recruiting/hiring

process and interviews at Pepsi (how many rounds of interviews, who conducted the

interviews).

(7 total PepsiCo, Inc. Interview surveys)

  Position

  interviewed for  Excerpt

  Accountant 3 interviews, with the manager of human resources,

  Driver I do not remember any specific interview question

  MerchandiserWhen I first applied at Pepsi they weren't taking

applications anymore

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  Sr. AnalystHiring process was like any process. They use the internet

to get candidates and supplement

  HR ManagerVery open-ended with the opportunity to discuss previous

experience, current attributes and plans

  Account ManagerQUAKER: 2 rounds of interviews first with direct report

manager and then his superior.

  Marketing Manager5 rounds of interviews. I was interviewed by Satinder

Sharma HR Manager

Employee | 65

RetentionEmployee Retention

The picture states the latest statement that corporate believes in “Love them or Lose them”

Employee Retention involves taking measures to encourage employees to remain in the

organization for the maximum period of time. Corporate is facing a lot of problems in employee

retention these days. Hiring knowledgeable people for the job is essential for an employer. But

retention is even more important than hiring. There is no dearth of opportunities for a talented

person. There are many organizations which are looking for such employees. If a person is not

satisfied by the job he’s doing, he may switch over to some other more suitable job.

Let us understand the concept of employee retention with the help of an example:

Misha was a talented employee who delivered her best and completed all her work within the

desired time frame. Her work lacked errors and was always found to be innovative and thought

provoking. She never interfered in anybody else’s work and stayed away from unnecessary

gossips and rumours. She avoided loitering around at the workplace, was serious about her work

and no doubts her performance was always appreciable. Greg, her immediate boss never really

liked Misha and considered her as his biggest threat at the workplace.He left no stone unturned

to insult and demotivate Misha. Soon, Misha got fed up with Greg and decided to move on.

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Situation 1 - The HR did not make any efforts to retain Misha and accepted her resignation.

Situation 2 - The HR immediately intervened and discussed the several issues which prompted

Misha to think for a change. They tried their level best to convince Misha and even appointed a

new boss to make the things better for her.

Situation 1 would most likely leave the organization in the lurch. It is not easy to find an

employee who gels well with the system and understands the work. Hiring an employee, training

him and making him fit to work in an organization incur huge costs and thus sincere efforts must

be made to retain the employee. Every problem has a solution and the management must probe

into the exact reasons of an employee’s displeasure. Employees sticking to an organization for a

longer time tend to know the organization better and develop a feeling of attachment towards it.

The employees who stay for a longer duration are familiar with the company policies, guidelines

as well as rules and regulations and thus can contribute more effectively than individuals who

come and go.

A good employer should know how to attract and retain its employees. Retention involves five

major things:

                                             

  <<Compensation>>                        <<Environment>>                        <<Growth>>

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                 <<Relationship>>                                                       <<Support>>

In today’s environment it becomes very important for organizations to retain their employees.

The top organizations are on the top because they value their employees and they know how to

keep them glued to the organization. Employees stay and leave organizations for some reasons.

The reason may be personal or professional. These reasons should be understood by the

employer and should be taken care of. The organizations are becoming aware of these reasons

and adopting many strategies for employee retention.Employee retention would require a lot of

efforts, energy, and resources but the results are worth it.

Compensation

Compensation constitutes the largest part of the retention process. The employees always have

high expectations regarding their compensation packages. Compensation packages vary from

industry to industry. So an attractive compensation package plays a critical role in retaining the

employees.

Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options,

bonuses, vacations, etc. While setting up the packages, the following components should be kept

in mind:

Salary and monthly wage: It is the biggest component of the compensation package. It is also

the most common factor of comparison among employees. It includes

o Basic wage

o House rent allowance

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o Dearness allowance

o City compensatory allowance

                     

Salary and wages represent the level of skill and experience an individual has. Time to time

increase in the salaries and wages of employees should be done. And this increase should be

based on the employee’s performance and his contribution to the organization.

Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.

Economic benefits: It includes paid holidays, leave travel concession, etc.

Long-term incentives: Long term incentives include stock options or stock grants. These

incentives help retain employees in the organization's startup stage.

Health insurance: Health insurance is a great benefit to the employees. It saves employees

money as well as gives them a peace of mind that they have somebody to take care of them in

bad times. It also shows the employee that the organization cares about the employee and its

family.

After retirement: It includes payments that an Employee gets after he retires like EPF

(Employee Provident Fund) etc.

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Miscellaneous compensation: It may include employee assistance programs (like psychological

counseling, legal assistance etc), discounts on company products, use of a company cars, etc.

Growth and Career: Growth and development are the integral part of every individual’s career.

If an employee can not foresee his path of career development in his current organization, there

are chances that he’ll leave the organization as soon as he gets an opportunity.

The important factors in employee growth that an employee looks for himself are:

Work profile: The work profile on which the employee is working should be in sync with his

capabilities. The profile should not be too low or too high.

Personal growth and dreams: Employees responsibilities in the organization should help him

achieve his personal goals also. Organizations can not keep aside the individual goals of

employees and foster organizations goals. Employees’ priority is to work for themselves and

later on comes the organization. If he’s not satisfied with his growth, he’ll not be able to

contribute in organization growth.

Training and development: Employees should be trained and given chance to improve and

enhance their skills. Many employers fear that if the employees are well rained, they’ll leave the

organization for better jobs. Organization should not limit the resources on which organization’s

success depends. These trainings can be given to improve many skills like:

Communications skills

Technical skills

In-house processes and procedures improvement related skills

C or customer satisfaction related skills

Special project related skills

Need for such trainings can be recognized from individual performance reviews, individual

meetings, employee satisfaction surveys and by being in constant touch with the employees.

Support

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Lack of support from management can sometimes serve as a reason for employee retention.

Supervisor should support his subordinates in a way so that each one of them is a success.

Management should try to focus on its employees and support them not only in their difficult

times at work but also through the times of personal crisis. Management can support employees

by providing them recognition and appreciation.

Employers can also provide valuable feedback to employees and make them feel valued to the

organization.

The feedback from supervisor helps the employee to feel more responsible, confident and

empowered. Top management can also support its employees in their personal crisis by

providing personal loans during emergencies, childcare services, employee assistance programs,

counseling services.

Employers can also support their employees by creating an environment of trust and inculcating

the organizational values into employees. Thus employers can support their employees in a

number of ways as follows:

By providing feedback

By giving recognition and rewards

By counseling them

By providing emotional support

Importance of Relationship in Employee Retention Program

Sometimes the relationship with the management and the peers becomes the reason for an

employee to leave the organization. The management is sometimes not able to provide an

employee a supportive work culture and environment in terms of personal or professional

relationships. There are times when an employee starts feeling bitterness towards the

management or peers. This bitterness could be due to many reasons. This decreases employee’s

interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition.

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A supportive work culture helps grow employee professionally and boosts employee satisfaction.

To enhance good professional relationships at work, the management should keep the following

points in mind.

Respect for the individual: Respect for the individual is the must in the organization.

Relationship with the immediate manager: A manger plays the role of a mentor and a coach.

He designs ands plans work for each employee. It is his duty to involve the employee in the

processes of the organization. So an organization should hire managers who can make and

maintain good relations with their subordinates.

Relationship with colleagues: Promote team work, not only among teams but in different

departments as well. This will induce competition as well as improve the relationships among

colleagues.

Recruit whole heartedly: An employee should be recruited if there is a proper place and duties

for him to perform. Otherwise he’ll feel useless and will be dissatisfied. Employees should know

what the organization expects from them and what their expectation from the organization is.

Deliver what is promised.

Promote an employee based culture: The employee should know that the organization is there

to support him at the time of need. Show them that the organization cares and he’ll show the

same for the organization. An employee based culture may include decision making authority,

availability of resources, open door policy, etc.

Individual development: Taking proper care of employees includes acknowledgement to the

employee’s dreams and personal goals. Create opportunities for their career growth by providing

mentorship programs, certifications, educational courses, etc.

Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the

employees too. Try to make the current employees stay instead of recruiting new ones.

Organization Environment

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It is not about managing retention. It is about managing people. If an organization manages

people well, retention will take care of itself. Organizations should focus on managing the work

environment to make better use of the available human assets.

People want to work for an organization which provides

Appreciation for the work done

Ample opportunities to grow

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes

Culture

Values

Company reputation

Quality of people in the organization

Employee development and career growth

Risk taking

Leading technologies

Trust

Types of environment the employee needs in an organization

Learning environment: It includes continuous learning and improvement of the

individual, certifications and provision for higher studies, etc.

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Support environment: Organization can provide support in the form of work-life

balance. Work life balance includes:

o Flexible hours

o Telecommuting

o Dependent care

o Alternate work schedules

o Vacations

o Wellness

Work environment: It includes efficient managers, supportive co-workers, challenging

work, involvement in decision-making, clarity of work and responsibilities, and

recognition.

Lack or absence of such environment pushes employees to look for new opportunities. The

environment should be such that the employee feels connected to the organization in every

respect.

Importance Of Employee Retention

The process of retention will benefit an organization in the following ways:

1. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of

money to a company's expenses. While it is difficult to fully calculate the cost of turnover

(including hiring costs, training costs and productivity loss), industry experts often quote

25% of the average employee salary as a conservative estimate.

2. Loss of Company Knowledge: When an employee leaves, he takes with him valuable

knowledge about the company, customers, current projects and past history (sometimes

to competitors). Often much time and money has been spent on the employee in

expectation of a future return. When the employee leaves, the investment is not realized.

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3. Interruption of Customer Service: Customers and clients do business with a company

in part because of the people. Relationships are developed that encourage continued

sponsorship of the business. When an employee leaves, the relationships that employee

built for the company are severed, which could lead to potential customer loss.

4. Turnover leads to more turnovers: When an employee terminates, the effect is felt

throughout the organization. Co-workers are often required to pick up the slack. The

unspoken negativity often intensifies for the remaining staff.

5. Goodwill of the company: The goodwill of a company is maintained when the attrition

rates are low. Higher retention rates motivate potential employees to join the

organization.

6. Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring

a new employee and then training him/her and this goes to the loss of the company

directly which many a times goes unnoticed. And even after this you cannot assure us of

the same efficiency from the new employee.

Employee Retention Strategies

The basic practices which should be kept in mind in the employee retention strategies are:

1. Hire the right people in the first place.

2.Empower the employees: Give the employees the authority to get things done.

3. Make employees realize that they are the most valuable asset of the organization.

4. Have faith in them, trust them and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

7. Recognize and appreciate their achievements.

8. Keep their morale high.

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9. Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium and high level.

             <Low>                               <Medium >                               <High>

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What Makes Employee Leave?

Employees do not leave an organization without any significant reason. There are certain

circumstances that lead to their leaving the organization. The most common reasons can be:

Job is not what the employee expected to be: Sometimes the job responsibilities don’t come

out to be same as expected by the candidates. Unexpected job responsibilities lead to job

dissatisfaction.

Job and person mismatch: A candidate may be fit to do a certain type of job which matches

his personality. If he is given a job

which mismatches his personality, then he won’t be able to perform it well and will try to find

out reasons to leave the job.

No growth opportunities: No or less learning and growth opportunities in the current

job will make candidate’s job and career stagnant.

Lack of appreciation: If the work is not appreciated by the supervisor, the employee

feels de-motivated and loses interest in job.

Lack of trust and support in coworkers, seniors and management: Trust is the most

important factor that is required for an individual to stay in the job. Non-supportive

coworkers, seniors and management can make office environment unfriendly and

difficult to work in.

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Stress from overwork and work life imbalance: Job stress can lead to work life

imbalance which ultimately many times lead to employee leaving the organization.

Compensation: Better compensation packages being offered by other companies may

attract employees towards themselves.

New job offer: An attractive job offer which an employee thinks is good for him with

respect to job responsibility, compensation, growth and learning etc. can lead an

employee to leave the organization.

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Performanc

e

Appraisal

PERFORMANCE APPRAISAL

People differ in their abilities and their aptitudes. There is always some difference between the

quality and quantity of the same work on the same job being done by two different people.

Therefore, performance management and performance appraisal is necessary to understand each

employee’s abilities, competencies and relative merit and worth for the organization.

Performance appraisal rates the employees in terms of their performance.

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Performance appraisals are widely used in the society. The history of performance appraisal can

be dated back to the 20th century and then to the second world war when the merit rating was

used for the first time. An employer evaluating their employees is a very old concept.

Performance appraisals are an indispensable part of performance measurement.

Performance appraisal is necessary to measure the performance of the employees and the

organization to check the progress towards the desired goals and aims.

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

the improvement of the future performance of the employees.

CONTENTS OF PERFORMANCE APPRAISAL FORM:

1. Quality of work

• Consider accuracy, thoroughness, effectiveness.

• Pressure, ability to meet standards of quality.

• Use of time and volume of work accomplished.

• Work output matches the expectations established.

2. Quantity of work

• Competence, thoroughness, and efficiency of work regardless of volume.

• Neatness and accuracy.

3. Teamwork:

• Establish and maintain effective working relationship with others.

• Shares information and resources with others

• Follows instructions of supervisor and respond to requests from others in the team in a helpful

manner.

• Contributing work and effort to group performance to meet agreed upon objectives and achieve

team success

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4. Job knowledge

• Application of appropriate level of technical and procedural knowledge in specific field

• Degree of technical competence

• Understanding of job procedures, methods, facts and information related to assignments.

• Perform duties with minimal supervision but seek guidance where and when appropriate to the

job, consults the appropriate staff

5. Initiative

• Consider the extent to which the employees sets own constructive work practice and

recommends and creates own procedures.

• Self-starter, develop and implement new methods, procedures, solutions, concepts, designs

and/or applications of existing designs or procedures.

• Accepts additional challenges and responsibilities and willingly assist others, self-reliant.

• Completes assignment on time.

6. Interpersonal relations

•. Consider the extent to which the employee is cooperative, considerate, and tactful in dealing

with supervisors, subordinates, peers, faculty, students and others

7. Health and safety compliance

• The degree to which he or she complies with or over sees the compliance with university safety

rules.

• The following are also to be completed for supervisory personnel and members of the

administrative staff.

8. Communications abilities

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Performance appraisal of communications includes elements as:

• Ability to listen and understand information;

• Presents information in a clear and concise manner.

• Knows appropriate way of communicating with immediate superiors and the management

• Demonstrates respect for all individuals in all forms of communication

• Regardless of their background or culture;

9. Planning and organizing:

• Adapting to changes and using resources effectively;

• Maintains confidentiality as appropriate.

• Setting objectives, establishing priorities, developing plans;

• Arranging work schedules and prioritizing work to meet deadlines.

• Know when to ask for clarification before proceeding on a work project.

10. Problem analysis and decision making

• Anticipating problems and facilitate problem resolution.

• Willingness to make necessary and immediate decisions given incomplete information.

• Understanding practical and workable solutions.

• Recognizing when a decision is necessary, asking for input, making decisions and providing

information and feedback in a timely manner.

11. Staff development

• The extent to which the individual provides guidance and opportunities to his or her staff for

their development and advancement in the university.

12. Dependability

Performance appraisal of dependability includes elements as:

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• Consider the extent to which the employee completes assignments on time and carries out

instructions.

• Starts work at appropriate time;

• Respects time allowed for breaks and lunch;

• Follows policies for requesting and reporting time off;

• Helps ensure work duties are covered when absent;

• Employee’s presence can be relied upon for planning purposes.

• Attendance and punctuality meets supervisor’s requirements.

Process of Performance Appraisal

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ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the standards which will

be used to as the base to compare the actual performance of the employees. This step requires

setting the criteria to judge the performance of the employees as successful or unsuccessful and

the degrees of their contribution to the organizational goals and objectives. The standards set

should be clear, easily understandable and in measurable terms. In case the performance of the

employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the standards to all the

employees of the organization. The employees should be informed and the standards should be

clearly explained to the. This will help them to understand their roles and to know what exactly

is expected from them. The standards should also be communicated to the appraisers or the

evaluators and if required, the standards can also be modified at this stage itself according to the

relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

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The most difficult part of the performance appraisal process is measuring the actual performance

of the employees that is the work done by the employees during the specified period of time. It is

a continuous process which involves monitoring the performance throughout the year. This stage

requires the careful selection of the appropriate techniques of measurement, taking care that

personal bias does not affect the outcome of the process and providing assistance rather than

interfering in an employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard performance. The

comparison tells the deviations in the performance of the employees from the standards set. The

result can show the actual performance being more than the desired performance or, the actual

performance being less than the desired performance depicting a negative deviation in the

organizational performance. It includes recalling, evaluating and analysis of data related to the

employees’ performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on one-to-one

basis. The focus of this discussion is on communication and listening. The results, the problems

and the possible solutions are discussed with the aim of problem solving and reaching consensus.

The feedback should be given with a positive attitude as this can have an effect on the

employees’ future performance. The purpose of the meeting should be to solve the problems

faced and motivate the employees to perform better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to improve the

performance of the employees, take the required corrective actions, or the related HR decisions

like rewards, promotions, demotions, transfers etc.

Purpose of Performance Appraisal

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To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

To diagnose the training and development needs of the future.

Provide information to assist in the HR decisions like promotions, transfers etc.

Provide clarity of the expectations and responsibilities of the functions to be performed

by the employees.

To judge the effectiveness of the other human resource functions of the organization

such as recruitment, selection, training and development.

To reduce the grievances of the employees.

Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

According to a recent survey, the percentage of organizations (out of the total organizations

surveyed i.e. 50) using performance appraisal for the various purposes are as shown in the

diagram:

The most significant reasons of using Performance Appraisal are:

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Making payroll and compensation decisions – 80%

Training and development needs – 71%

Identifying the gaps in desired and actual performance and its cause – 76

OBJECTIVES OF PERFORMANCE APPRAISAL:

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior – subordinates

and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training

and development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be performed

by the employees.

To judge the effectiveness of the other human resource functions of the organization such

as recruitment, selection, training and development.

Approaches to Performance Development

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Performance appraisal - Traditional approach

Traditionally, performance appraisal has been used as just a method for determining and

justifying the salaries of the employees. Then it began to be used a tool for determining rewards

(a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees.

This approach was a past oriented approach which focused only on the past performance of the

employees i.e. during a past specified period of time. This approach did not consider the

developmental aspects of the employee performance i.e. his training and development needs or

career developmental possibilities. The primary concern of the traditional approach is to judge

the performance of the organization as a whole by the past performances of its employees.

Therefore, this approach is also called as the overall approach. In 1950s the performance

appraisal was recognized as a complete system in itself and the Modern Approach to

performance appraisal was developed.

Performance appraisal - Modern approach

The modern approach to performance development has made the performance appraisal process

more formal and structured. Now, the performance appraisal is taken as a tool to identify better

performing employees from others, employees’ training needs, career development paths,

rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations. The results of

performance appraisals are used to take various other HR decisions like promotions, demotions,

transfers, training and development, reward outcomes. The modern approach to performance

appraisals includes a feedback process that helps to strengthen the relationships between

superiors and subordinates and improve communication throughout the organization.

The modern approach to performance appraisal is a future oriented approach and is

developmental in nature. This recognizes employees as individuals and focuses on their

development.

Techniques Of Performance Appraisal

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The various methods and techniques used for performance appraisal can be categorized as the

following traditional and modern methods:

A) Traditional Methods of Performance Appraisal

1. ESSAY APPRAISAL METHOD

This traditional form of appraisal, also known as “Free Form method” involves a description

of the performance of an employee by his superior. The description is an evaluation of the

performance of any individual based on the facts and often includes examples and evidences

to support the information. A major drawback of the method is the inseparability of the bias

of the evaluator.

2. STRAIGHT RANKING METHOD

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This is one of the oldest and simplest techniques of performance appraisal. In this method, the

appraiser ranks the employees from the best to the poorest on the basis of their overall

performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON

A better technique of comparison than the straight ranking method, this method compares each

employee with all others in the group, one at a time. After all the comparisons on the basis of the

overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS

In this method of performance appraisal, the evaluator rates the employee on the basis of critical

events and how the employee behaved during those incidents. It includes both negative and

positive points. The drawback of this method is that the supervisor has to note down the critical

incidents and the employee behavior as and when they occur.

5. FIELD REVIEW

In this method, a senior member of the HR department or a training officer discusses and

interviews the supervisors to evaluate and rate their respective subordinates. A major drawback

of this method is that it is a very time consuming method. But this method helps to reduce the

superiors’ personal bias.

6. CHECKLIST METHOD

The rater is given a checklist of the descriptions of the behavior of the employees on job. The

checklist contains a list of statements on the basis of which the rater describes the on the job

performance of the employees.

7. GRAPHIC RATING SCALE

In this method, an employee’s quality and quantity of work is assessed in a graphic scale

indicating different degrees of a particular trait. The factors taken into consideration include both

the personal characteristics and characteristics related to the on-the-job performance of the

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employees. For example a trait like Job Knowledge may be judged on the range of average,

above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION

To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the

employees in some fixed categories of ratings like on a normal distribution curve. The rater

chooses the appropriate fit for the categories on his own discretion.

B) Modern-Method

1. MANAGEMENT BY OBJECTIVES

The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. It

can be defined as a process whereby the employees and the superiors come together to identify

common goals, the employees set their goals to be achieved, the standards to be taken as the

criteria for measurement of their performance and contribution and deciding the course of action

to be followed.

The essence of MBO is participative goal setting, choosing course of actions and decision

making. An important part of the MBO is the measurement and the comparison of the

employee’s actual performance with the standards set. Ideally, when employees themselves have

been involved with the goal setting and the choosing the course of action to be followed by them,

they are more likely to fulfill their responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered employees who

have clarity of the roles and responsibilities expected from them, understand their objectives to

be achieved and thus help in the achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are:

Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are:

Specific

Measurable

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Achievable

Realistic

Time bound

The goals thus set are clear, motivating and there is a linkage between organizational

goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the

performance for the future with periodic reviews and feedback.

Motivation – Involving employees in the whole process of goal setting and increasing

employee empowerment increases employee job satisfaction and commitment.

Better communication and Coordination – Frequent reviews and interactions between

superiors and subordinates helps to maintain harmonious relationships within the

enterprise and also solve many problems faced during the period.

2. 360-DEGREE-PERFORMANCE-APPRAISAL METHOD

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal

where the feedback about the employees’ performance comes from all the sources that come in

contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),

subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact

with the employee and can provide valuable insights and information or feedback regarding the

“on-the-job” performance of the employee.

360 degree appraisal has four integral components:

1. Self appraisal

2. Superior’s appraisal

3. Subordinate’s appraisal

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4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and

weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the

traditional part of the 360 degree appraisal where the employees’ responsibilities and actual

performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like

communication and motivating abilities, superior’s ability to delegate the work, leadership

qualities etc. Also known as internal customers, the correct feedback given by peers can help to

find employees’ abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360

degree appraisals have high employee involvement and also have the strongest impact on

behavior and performance. It provides a "360-degree review" of the employees’ performance and

is considered to be one of the most credible performance appraisal methods.

360 degree appraisal is also a powerful developmental tool because when conducted at

regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the

employees. A 360 degree appraisal is generally found more suitable for the managers as it helps

to assess their leadership and managing styles. This technique is being effectively used across the

globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and

Reliance Industries etc.

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Arguments Against 360 Degree Performance Appraisal

Despite the fact that 360 degree appraisals are being widely used throughout the world for

appraising the performance of the employees at all levels, many HR experts and professionals

argument against using the technique of 360 degree appraisals. The main arguments are:

360 performance rating system is not a validated or corroborated technique for

performance appraisal.

With the increase in the number of raters from one to five (commonly), it become

difficult to separate, calculate and eliminate personal biasness and differences.

It is often time consuming and difficult to analyze the information gathered.

The results can be manipulated by the employees towards their desired ratings with the

help of the raters.

The 360 degree appraisal mechanism can have an adversely effect the motivation and the

performance of the employees.

360 degree feedback – as a process- requires commitment of top management and the

HR, resources (time, financial resources etc), planned implementation and follow-up.

360 degree feedback can be adversely affected by the customers’ perception of the

organization and their incomplete knowledge about the process and the clarity of the

process.

Often, the process suffers because of the lack of knowledge on the part of the participants or the

raters.

3. ASSESSMENT CENTRES

An assessment centre typically involves the use of methods like social/informal events, tests and

exercises, assignments being given to a group of employees to assess their competencies to take

higher responsibilities in the future. Generally, employees are given an assignment similar to the

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job they would be expected to perform if promoted. The trained evaluators observe and evaluate

employees as they perform the assigned jobs and are evaluated on job related characteristics.

The major competencies that are judged in assessment centre are interpersonal skills, intellectual

capability, planning and organizing capabilities, motivation, career orientation etc. assessment

centre are also an effective way to determine the training and development needs of the targeted

employees.

4. BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the

graphic rating scale and critical incidents method. It consists of predetermined critical areas of

job performance or sets of behavioral statements describing important job performance qualities

as good or bad (for e.g. the qualities like inter-personal relationships, adaptability and reliability,

job knowledge etc). These statements are developed from critical incidents.

In this method, an employee’s actual job behavior is judged against the desired behavior by

recording and comparing the behavior with BARS. Developing and practicing BARS requires

expert knowledge.

5. HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method

tries to find the relative worth of these assets in the terms of money. In this method the

performance of the employees is judged in terms of cost and contribution of the employees. The

cost of employees include all the expenses incurred on them like their compensation, recruitment

and selection costs, induction and training costs etc whereas their contribution includes the total

value added (in monetary terms). The difference between the cost and the contribution will be

the performance of the employees. Ideally, the contribution of the employees should be greater

than the cost incurred on them.

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Challenges Of Performance Appraisal

In order to make a performance appraisal system effective and successful, an organization comes

across various challenges and problems. The main challenges involved in the performance

appraisal process are:

Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced by the top

management. The performance data to be considered for evaluation should be carefully

selected. For the purpose of evaluation, the criteria selected should be in quantifiable or

measurable terms

Create a rating instrument

The purpose of the performance appraisal process is to judge the performance of the

employees rather than the employee. The focus of the system should be on the

development of the employees of the organization.

Lack of competence

Top management should choose the raters or the evaluators carefully. They should have

the required expertise and the knowledge to decide the criteria accurately. They should

have the experience and the necessary training to carry out the appraisal process

objectively.

Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait

influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal

process. Therefore the rater should exercise objectivity and fairness in evaluating and

rating the performance of the employees

Resistance

The appraisal process may face resistance from the employees and the trade unions for

the fear of negative ratings. Therefore, the employees should be communicated and

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clearly explained the purpose as well the process of appraisal. The standards should be

clearly communicated and every employee should be made aware that what exactly is

expected from him/her.

Performance Appraisal Software

The growing size of the organisations, the competition in the labour market and the importance

of the performance management and appraisals have given way to the use of performance

appraisal softwares. Many companies providing the HR services and the software companies

provide the performance appraisal softwares.

The performance appraisals softwares automate the appraisal processes and assist the HR by

adding online capacities to the processes. The performance appraisal software can be customized

according to the needs of the organisation. The various forms and other processes can be

designed in accordance to the practices being followed in the organisation.

The software standardizes the appraisal process. The software applications also have guidelines

for the users to guide them throughout the process, alerting the users about the errors and

mistakes (if any), suggesting the appropriate language to be used, provides a systematic records

of the necessary documents to the rater and the HR Department.

Several software packages are available which also provide the 360-degree review program so

that employees can get a multi-rater feedback about their performance.

Benefits of using performance appraisal softwares

By using the performance appraisal softwares, an organisation can reap the following benefits:

The performance appraisal software can be implemented organisation wide, covering all

the employees at the levels (from lowest rank to top management) and across all the

branches of the organisation throughout the world.

Designed with the latest technologies, they are easy to understand and make things

structured, organized and standardized throughout the organisation.

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Performance Measures, KPI and KRA’s, goals and objectives for each employee, team

and department can be weighted and listed according to their importance and priority.

Use of the standard performance appraisal softwares can help to reduce the subjectivity

and the bias in the ratings of the appraisers.

It facilitates the calculations and adjustments of the performance related pay and other

related HR decisions.

Automatic reminders can be sent to the employees and the concerned authorities for the

due appraisals.

It helps the HR department in appraising the performance and to manage the performance

of the employees efficiently and effectively.

Helps to improve the productivity of the employees and employee retention in the

organisation.

Keeps a detailed record of the past performances and the reviews of the employees.

Performance Appraisal Process - Key to Change organizational Culture

The performance appraisal process provides an opportunity for introducing organizational

change. It facilitates the process of change in the organizational culture. The interactive sessions

between the management and the employees, the mutual goal setting and the efforts towards the

career development of the employees help the organization to become a learning organization.

Conducting performance appraisals on a regular basis helps it to become an ongoing part of

everyday practice and helps employees to take the responsibility of their work and boosts their

professional development.

Various studies in the field of human resources have already proved that performance appraisal

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process can affect the individual performance (in a negative or positive way), thus having an

impact on the collective performance.

Performance appraisal: An opportunity for an organisational culture shift

Performance appraisal process focuses on the goal setting approach throughout the

organisation.

Performance appraisal helps the clarity and understanding of the roles and responsibilities

of the employees.

The performance appraisal processes have the potential positive effects on recruitment

It increases organisational effectiveness i.e. what to do and how to do through a formal

and structured approach.

Some evidence of the beneficial effects of team rewards

Therefore, performance appraisal is also an important link in the process of change in

organization culture.

LINKING COMPENSATION TO PERFORMANCE

One of the latest strategies being followed in all sectors through out the world for retention and

talent management is “linking compensation to performance”. Commonly known as

“Performance pay” or “Performance based pay”, it links the compensation of the employees to

their performance and their contribution to the organizational goals. Therefore, periodic

performance reviews play a vital role and provide the basis of performance related pay.

Commissions, incentives and bonuses, piece rate pay help the employer to pay the employee

according to their productivity and hard work.

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The process of performance based pay involves:

Deciding and clearly defining the performance goals and the performance measures

Setting the target bonus for different levels of performances

Measuring the performance of the employee

Giving rewards and bonus according to performance

Organizations are also designing variable compensation plans for various roles and positions in

the organization.

Types of Performance Pay

Merit pay – The first step to performance pay, merit pay means setting some basic salary

according to the position and the rank of the employee and the variable part of the salary

is based on the periodic performance reviews.

Profit Sharing – Sharing the profits of the enterprise with the employees as bonus.

Incentives and Performance Bonus – Rewards for special accomplishments or

fulfillment of the targets set such as sales commission.

Gain sharing - Sharing of gains as a result of the increased performance of the

employees with them.

Although performance related pay has always been a topic of discussions and controversies with

many arguments against it, but it has also been proved that performance based pay motivates

employees to perform better and earn, and encourages learning, innovation, creativity, problem

solving and empowerment which can be facilitated through proper performance measurement

and reviews.

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Relationship Between Performance Appraisal and Organizational

Performance

Performance appraisal processes are one of the central pillars of the performance management

which is directly related to the organizational performance and have a direct impact on it.

Employee performance ultimately effects the organizational performance and objectives.

According to a few HR professionals, the appraisals have no value for the organisation as there is

no direct relationship in performance appraisals and the organizational performance. Also, there

is no strong evidence to prove that appraisals positively impact the performance of the

employees. But the HR professionals who see the organizational performance as a result or sum

of the employee’s performance, argue that apart from the direct benefits to the organisation,

appraisals contribute to employee satisfaction, which in turn leads to improved performance.

For an organisation to be effective, the goals, the standards and the action plans need to be

planned well in advance. Thus, performance appraisal facilitates the achievement of

organizational goals. It also facilitates the optimal use of the organizational resources.

Performance appraisals – a double-edged sword

Performance appraisal is like a double edged sword for an organisation. Although it has many

benefits for the organisation, various studies have also revealed that performance appraisals have

the equal probability of having a bad impact on the organizational as well as the employee

performance.

Where the performance appraisal improves the work performance and employee satisfaction, it

can also demotivate employees and leaving a bad impression on the good employees. Most of the

employees do not approve of continuous performance monitoring and performance appraisals,

and also consider it as a burdensome activity. According to Professor Kuvaas “Performance

appraisals and other tools which involve feedback and target management should be

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adapted to the employee’s individual needs and characteristics. Otherwise, there is a risk of

harming the good employees without being able to help the less good.”

Performance appraisal processes can create a sense of insecurity in the working environment and

can become an obstacle in achieving the required changes in the attitudes and the performance of

the employees. The element of bias in the appraisals can also worsen the situation.

Therefore, performance appraisals can effect the organizational performance both positively and

negatively, and should be dealt with care and expert knowledge and experience.

Performance Appraisal For Employees at Different Levels

Performance appraisal is important for employees at all levels throughout the organization. The

parameters, the characteristics and the standards for evaluation may be different, but the

fundamentals of performance appraisal are the same. But as the level of the employees’

increases, performance appraisal is more effectively used as the tools of managing performance.

Performance appraisals of Managers:

Appraising the performance of managers is very important, but at the same time, it is one of the

most difficult tasks in the organization. It is difficult because most of the managerial work cannot

be quantified i.e. it is qualitative in nature like leading his/her team, guiding, motivating,

planning etc.

Therefore, the two things to be noted and evaluated for the purpose of appraisals are:

Performance in accomplishing goals, and

Performance as managers

Performance in accomplishing goals

Managers are responsible for the performance of their teams as a whole. Performance in

accomplishing goals would mean to look at the completion or achievement of the goals set for a

team of employees which is being assigned to or working under a particular manager. The best

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measuring criteria for a manager are hi goals, his plans of course of action to achieve them and

the extent of achievement of the goals.

Performance as managers

The responsibilities of managers include a series of activities which are concerned with planning,

organizing, directing, leading, motivating and controlling. Managers can be rated on the above

parameters or characteristics

Criteria for measuring performance at different levels:

The criteria for measuring performance changes as the levels of the employees and their roles

and responsibilities change.

A few examples for each level are described below:

For top level management

Degree of organizational growth and expansion

Extent of achievement of organizational goals

Contribution towards the society

Profitability and return on capital employed

For middle level managers

Performance of the departments or teams

Co-ordination with other departments

Optimal use of resources

Costs Vs. revenues for a given period of time

The communication with superiors and subordinates

For front line supervisors

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Quantity of actual output against the targets

Quality of output against the targets

Number of accidents in a given period

Rate of employee absenteeism

Pre-requisites for Effective & Successful Performance Appraisal

The essentials of an effective performance system are as follows:

Documentation – Means continuous noting and documenting the performance. It also

helps the evaluators to give a proof and the basis of their ratings.

Standards / Goals – The standards set should be clear, easy to understand, achievable,

motivating, time bound and measurable.

Practical and simple format - The appraisal format should be simple, clear, fair and

objective. Long and complicated formats are time consuming, difficult to understand,

and do not elicit much useful information.

Evaluation technique – An appropriate evaluation technique should be selected; the

appraisal system should be performance based and uniform. The criteria for evaluation

should be based on observable and measurable characteristics of the behavior of the

employee.

Communication – Communication is an indispensable part of the performance appraisal

process. The desired behavior or the expected results should be communicated to the

employees as well as the evaluators. Communication also plays an important role in the

review or feedback meeting. Open communication system motivates the employees to

actively participate in the appraisal process.

Feedback – The purpose of the feedback should be developmental rather than

judgmental. To maintain its utility, timely feedback should be provided to the employees

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and the manner of giving feedback should be such that it should have a motivating effect

on the employees’ future performance.

Personal Bias – Interpersonal relationships can influence the evaluation and the

decisions in the performance appraisal process. Therefore, the evaluators should be

trained to carry out the processes of appraisals without personal bias and effectively.

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In DKDBPL,

Management

By

Objective

(MBO)

Method Is

Used

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PAY

FOR

PERFORMANCE

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Performance Related Pay

• Performance Related Pay (PRP) or Variable Pay is the reward paid to individuals based

on performance against the predetermined objectives aligned to the business.

• PRP is essentially a method of linking the pay of an individual to his/her performance

achieved at work (usually) against agreed objectives.

• It is a method to remove or bridge the gap between pay and performance.

• It is based on premise in general that top performers are funded at the cost of lower/non-

performer.

Ways of linking Pay to Performance

• Varieties of ways such as cash bonuses, additional salary/increments, faster incremental

progression, all of which have their strong and weak points.

• Different plans each uniquely suited to different employee groups/departments.

• Separate from profit related pay, group incentive schemes or profit sharing scheme.

• Not to be confused with base pay adjustments.

Benefits:

• Motivating people and creating performance oriented culture

• To attract, retain and utilize most talented or right people in the organization

• To catch top performers attention and sends a signal to a poor performing employee

• Sends vital signals about the organization priorities and values

• Transforming reward from entitlement to achievement

• Close to 78% companies view that this has positive impact on business results

• Shifting compensation cost from fixed to variable expenses

• 20% people contributing 80% of the results should be suitably rewarded

• Best way to increase productivity to secure dominance in the market

• Paying for performance works much better in down times than in boom times

• It is right and proper to pay in accordance with the contribution made by individual

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Creating Effective PRP Plan

Full commitment from the management and senior executives

Compensation system that

Differentiates rewards, not just performance

Sets clear performance-reward linkage

Support and involvement of senior executives and managers who will own, educate and

communicate the plan

Good “Performance Management Program (PMP)” in place which establishes clearly defined

“SMART” individual objectives and competencies aligned to overall organization goals

Encourages and supports open, honest feedback and review of all

Hold employees accountable for results

Hold managers for substandard performance and for improving or removing poor performers

Formally recognizes and rewards the higher performance

Clear identification of the target group, department, level etc.

Requires high performance culture

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DATA

ANALYSIS

DATA ANALYSIS

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Analysis has been made on the data collected by means of Questionnaires. For this purpose, I

prepared two questionnaires – First for the permanent Workers and Staff members and Second

for the Managers of Dhillon Kool Drinks & Beverages Ltd.

The Questionnaires have been prepared keeping in mind the level and magnitude of activities

carried out by the Workers, Staff & Managers. The basic aim of questionnaire is to find out the

mental perspective of the respondent towards the Performance Appraisal exercise followed at

Dhillon Kool Drinks & Beverages Ltd.

The Questionnaire also aims at finding the level of motivation of the respondent with reference

to the performance appraisal exercise i.e. whether the respondent feels motivated after his

appraisal and works hard for the same.

The questionnaire also highlights some suggestions given by the respondents as alternatives

which the organization can practice for better working and for improving satisfaction level of the

employees.

ANALYSIS BASED ON QUESTIONNAIRE ( WORKERS & STAFFS)

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Q1) Are you aware of the Performance Appraisal (PA) Method followed in Dhillon Kool

Drinks & Beverages Ltd.?

Yes No

RESPONSE

NO. OF

RESPONDANTPECENTAGE

Yes 24 60%

No 16 40%

TOTAL 40 100%

YES

NO

Inference

From the sample size of 40 respondents, only 24 are aware about the performance appraisal

system while other 16 are unaware about this.

It is thus cleared from the above analysis that about 40 % doesn’t know the performance

appraisal system at VBL

Q2) Are you satisfied with the existing P.A. Method followed in the Company?

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Highly Moderate Not at all

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

HIGHLY 11 28%

MODERATE 19 47%

NOT AT ALL 10 25%

TOTAL 40 100%

HIGHLY

MODERATE

Not at All

Inference

It is thus cleared from the above analysis that about are 28 % strongly satisfied, 47% are

moderately satisfies and 25% are unsatisfied by the performance appraisal system at VBL.

This shows a very much unsatisfaction among employees regarding Performance System at

VBL

Q3) Are there Biases in the existing P.A. Method?

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Yes No

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 28 70%

No 12 30%

Total 40 100%

YES

NO

Inference

About 70% of the employees feel that there are biases in the Performance Appraisal system at

VBL.

This part constitutes a large amount of the total respondents.

Q4) Are you satisfied with the increment in your Salary?

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Yes No

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 07 18%

No 33 82%

Total 40 100%

YES

NO

Inference

From 40 respondent, 33 unsatisfied from their increment in salary and only 7 are satisfied.

This shows a improper increment in salary or low satisfaction level among employee regarding

their salary increment.

Q5) Did Dhillon Kool Drinks & Beverages Ltd. provide any training at beginning of your

joining?

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Yes No

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 29 72%

No 11 28%

Total 40 100%

YES

NO

Inference

Among 40 respondents, 29 said that they got training after joining the organization while rest 11

respond to NO.This shows that Training Program is also not undertaken with much care or there

may be some malfunctioning.

Q6) Is proper action taken after the fulfillment of the PA Forms?

Yes No

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RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 12 30%

No 28 70%

Total 40 100%

YES

NO

As per the respondents, the proper actions are not being carried after the filling of Appraisal

Forms.

About 70% of the respondents, responds to NO, which shows a much amount and also some

mal-functionings in Performance Appraisal System

Q7) Is the PA exercise strictly followed or is just a formality?

Strictly followed Moderate Formality

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RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Strictly Followed 08 12%

Moderate 20 50%

Formality 12 30%

TOTAL 40 100%

StrictlyFollowed

Moderate

Formality

Inference

The above data shows that very few employee feels that the Performance Appraisal System

really works in a proper way and most of were in the view of it as a Formality one and is made

on the papers.

Q8) Are you satisfied from the Feedback you get from your Supervisors?

Completely Moderate Not at all

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RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Completely 10 25%

Moderate 15 37%

Not at all 15 38%

TOTAL 40 100%

Completely

Moderate

not at all

Inference

From the above analysis one can find that there not proper discussion is being carried among

seniors and the junior employees

Q9) If the existing PA Method be changed? Would you readily accept the change?

Yes No

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RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 29 72%

No 11 28%

Total 40 100%

YES

NO

Inference

Among 40 respondents, 29 said to change in existing Performance Appraisal Method and also

they will accept the newer method while rest 11 were satisfied to the existing method and are not

willing for new method

Q10) After filling PA Forms, are the results discussed between the Seniors &

Subordinates ?

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Yes No

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 28 70%

No 12 30%

Total 40 100%

YES

NO

Inference

About 70% of the employees feel that there are biases in the Performance

ANALYSIS BASED ON QUESTIONNAIRE (MANAGERS)

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Q1) Are you aware of the Performance Appraisal (PA) Method followed in Dhillon Kool

Drinks & Beverages Ltd.?

Yes No

RESPONSE

NO. OF

RESPONDANTPECENTAGE

Yes 35 87%

No 05 13%

TOTAL 40 100%

Yes

No

Inference

From the sample size of 40 respondents, 35 are aware about the performance appraisal system

while other 05 are unaware about this.

It is thus cleared from the above analysis that about 13 % doesn’t know the performance

appraisal system at VBL

Q)2 Who Appraises the Leaders/Heads/Managers?

Self Supervisors

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Peers Unit Manager

Sub-ordinates Chair Person

RESPONSE NO. OF RESPONDANT PECENTAGE

Self 02 5%

Peers 02 5%

Subordinates 04 10%

Supervisors 02 5%

Unit Manager 12 30%

Chair Person 18 45%

Total 40 100%

Self

Peers

Subordinates

Unit Manager

Supervisors

Chair Person

InferenceThis shows that the Managers are Appraised mostly by the Unit Managers & the Chair

Person

Q3) Is PA at Managerial level seriously undertaken?

Yes No

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RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 07 18%

No 33 82%

Total 40 100%

YES

NO

Inference

The above analysis shows that the Performance Appraisal is taken under seriously as about 82%

respondents have agreed regarding the respective question.

Q4) Are you satisfied with the existing P.A. Method followed in the Company?

Highly Moderate Not at all

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RESPONSE NO. OF

RESPONDENT

PERCENTAGE

HIGHLY 11 28%

MODERATE 19 47%

NOT AT ALL 10 25%

TOTAL 40 100%

HIGHLY

MODERATE

Not at All

Inference

It is thus cleared from the above analysis that about are 28 % strongly satisfied, 47% are

moderately satisfies and 25% are unsatisfied by the performance appraisal system at VBL.

This shows a very much unsatisfaction among employees regarding Performance System at

VBL

Q5) Are you satisfied with the increment in your Salary?

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Yes No

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 33 82%

No 07 18%

Total 40 100%

YES

NO

Inference

From 40 respondent, 33 unsatisfied from their increment in salary and only 7 are satisfied.

This shows a improper increment in salary or low satisfaction level among employee regarding

their salary increment.

Q6) Does the Appraisal System of the company motivates you?

Always To a great extent

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To some extent Not at all

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Always 18 44

To a great

Extent

10 25

To some

extent

07 18

Not at all 05 13

Total 40 100%

Always

To Many Extent

To Some Extent

Not at all

Inference

The analysis shows that the Managers are motivated to different levels. However, most of the

Managers are motivated “Always” form the Performance Appraisal method at the organization.

Q7) Are there Biases in the existing P.A. Method?

Yes No

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RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 28 70%

No 12 30%

Total 40 100%

YES

NO

Inference

About 70% of the employees feel that there are biases in the Performance Appraisal system at

VBL.

This part constitutes a large amount of the total respondents.

Q8) In your opinion, do Managers requires Management Development Programmes

(MDP)?

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Yes No

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 33 82%

No 07 18%

Total 40 100%

YES

NO

Inference

From 40 responding Managers, around 33 agreed in the view that the MDP should be given to

them, while rest 07 disagreed and doesn’t need the programme

Q9) Has Dhillon Kool Drinks & Beverages Ltd. organized any Training Programmes for

its

Managers or Department Heads etcs?.

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Yes No

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

Yes 29 72%

No 11 28%

Total 40 100%

YES

NO

Inference

Among 40 respondents, 29 said that they got training after joining the organization while rest 11

respond to NO. This shows that Training Program is also not undertaken with much care or there

may be some malfunctioning.

Q10) Do you think the Training MDP will affect the performance levels of the Leaders?

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Highly Moderate Not at all

RESPONSE NO. OF

RESPONDENT

PERCENTAGE

HIGHLY 11 28%

MODERATE 19 47%

NOT AT ALL 10 25%

TOTAL 40 100%

HIGHLY

MODERATE

Not at All

Inference

Regarding affect of MDP over Mangers, many of the respondents were in Moderate view.

However, respondent in view of Highly & Not at all are almost the same.

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Questionna

ire

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QUESTIONNAIRE

( For Workers & Staff Members )

Name :- ……………………………………………..

Age:- (Tick mark to which you belong)

Under 20 years Under 50 years

Under 30 years Under 60 years

Under 40 years Under 70 years

Deptt :-

Production Accounts Maintenance

Quality Control Security Marketing

TPT PMX HR

Designation:-…………………..

Grade:-

W1 S1

W2 S2

W3 S3

Current Salary (in Rs):-…………………….

Experiences(in Years) :-………….................

First Promotion :-…………………….

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Salary (Before 1st Promotion):-……………..

1) Are you aware of the Performance Appraisal (PA) Method followed in Dhillon Kool

Drinks & Beverages Pvt Ltd.?

Yes No

2) Are you satisfied with the existing P.A. Method followed in the Company?

Highly Moderate Not at all

3) Are there Biases in the existing P.A. Method?

Yes No

4) Are you satisfied with the increment in your Salary?

Yes No

5) Did Varun Beverages Ltd. provide any training at beginning of your joining?

Yes No

6) Is proper Training given/recommended in PA Forms?

Yes No

7) Is proper action taken after the fulfillment of the PA Forms?

Yes No

8) Is the PA exercise strictly followed or is just a formality?

Strictly followed Moderate Formality

9) Are you satisfied from the Feedback you get from your Supervisors?

Completely Moderate Not at all

10) After filling PA Forms, are the results discussed between the Seniors &

Subordinates ?

Yes No

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QUESTIONNAIRE

(For Managers)

Name :- ……………………………………………..

Age:- (Tick mark to which you belong)

Under 20 years Under 50 years

Under 30 years Under 60 years

Under 40 years Under 70 years

Deptt :-

Production Accounts HR

Quality Control Security Marketing

TPT PMX Maintenance

Designation:-…………………..

Grade:-

M1 M6

M2 M7

M3 M8

M4 M9

M5 M10

Current Salary (in Rs):-………………….

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Experiences(in Years) :-………….............

First Promotion :-………………….

Salary (Before 1st Promotion):-…………..

Are you aware of the Performance Appraisal (PA) method followed in Varun

Beverages Ltd.?

Yes No

How frequently is PA done ?

Monthly

Quarterly

Semi-Annually

Annually

Who Appraises the Leaders/Heads/Managers?

Self

Supervisors

Peers

Sub-ordinates

Is PA at Managerial level seriously undertaken?

Yes No

Are you satisfied with the existing P.A. Method followed in the Company?

Highly Moderate Not at all

Are you satisfied with the increment in your Salary?

Yes No

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Does the Appraisal System of the company motivates you?

Always

To a great extent

To some extent

Not at all

Are there Biases in the existing P.A. Method?

Yes No

Which PA Method would you alternatively suggest for the existing one?

……………………………………………………………………………

……………………………………………………

10) Suggestions (if any):-………

………………………………………………….....................................

……………………………………………………………………………….

………………………………………………………………………………..

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Findings

&

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Recommen

dationsFindings

Findings Regarding Performance Appraisal Survey:

After analysis of the data collected and compiled we can say that, DKDBPL is doing well but a

major area for the concern is that the employees feel themselves are not being involved in the

decision making activity. This may bring down the moral of the employees. Thus, the company

should feel more free to work and accomplish the maximum results.

In conducting this study, it was found some employees are satisfied with the company’s

appraisal technique whereas some are not. This is bringing down the motivation level of the

employees. Thus, the management should pay heed to the problems faced by the dissatisfied

employees and may even implement the suggestions given by them.

The company should have manageable working hours and equitable pay to ensure employee

satisfaction. The company should also reward the efficient employees occasionally to motivate

them. Public appreciation of his/her performance may also prove fruitful to this purpose.

The Performance Appraisal methods vary from one organization to another. Change in method

of Performance Appraisal has observable and immediate side effect on organizational processes

like work task, job design, organizational structure, knowledge and skill required, and values,

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attitudes and behavior of employees. Substantive changes in one or more of the above factors

leads to perceive or actual psychological threat of job displacement, reduction in economic

security, disruption of social arrangements and redefining of authority relationships. These

threaten the psychological and social status of an employee, triggering off resistance to change.

Findings regarding other aspects of project:

There was found to be a timely well-structured and well-administered organizational

culture in VBL.

The wages and salaries structure of the company was found to be strictly in accordance

with the law.

A duly and timely filing of all returns in relation to wages and salary administration was

carried out.

The awareness level among the employees regarding the various leaves and facilities

being provided by the company were found to good.

There was a general satisfaction amongst the people with regards to their salaries in

relation to their merits.

It was found that company did not provide any educational facilities to the employees.

There was a general satisfaction amongst people with regards to canteen and other

facilities. Also they are not completely satisfied by the welfare activities of company.

The salary of most of the people could satisfy either their basic needs only, or their needs

as well as reserve requirements.

A majority of the employees working at Pepsi are satisfied with the leaves they are

provided.

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Recommendations

After the detailed discussion with the company administrative services to be provided by the

company. I have also discussed recruitment, selection, training, employee retention, performance

appraisal of the employees. I have given some recommendations regarding how to improve it are

as follows:

DKDBPL should build a strong management and development framework to stand the

vigorous competition from the various industries.

Paper work must be reduced, computerized work should be more.

There should be on-line information of all the employees regarding all the activities

performed by them like performance, communication skills, quality of work, over time

devoted by each employee, etc.

By adopting MBO method, Employees compete against each other and don’t help others.

I saw attendance system and give some recommendations to improve it

Proper implementation and revision of company norms

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Conclusion

For employee who use company provided bus to reach the campus, what awaits them in an

environment, which is open, friendly, warm and flexible.

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Its comfortable feeling to be employed at Dhillon Kool Drinks &Beverages Pvt Ltd. (Phillaur).

All I really need to do is well just my job. And when I need to take a break from the job, there is

arrest room.

The best thing about Dhillon Kool Drinks &Beverages Pvt Ltd. is that it has a flat structure,

which facilities faster communication.

Being a franchisee of Pepsi Foods, it attracts the best talent in the company. And then, having got

in professionals, Dhillon Kool Drinks &Beverages Pvt Ltd. manages a fairly good retention rate.

The exit barrier, which Dhillon Kool Drinks &Beverages Pvt Ltd. has built, is a job content and

long service award.

Mind you all this comes without a jumbo compensation package.

The charisma of its technology is best exhibited in this bottling plant. The whole process of

production and bottling is fully automatic. Through it has replaced manpower, but it otherwise

facilities mass-production and ensures quality. Product to the customer.

The relationship between the workers and the management is impressively amicable. Very low

absenteeism shows the high morale and enthusiasm of workers. Uniform dress code in the

organization shows the uniformity and unity among employees.

The production process of Dhillon Kool Drinks &Beverages Pvt Ltd. is fully automatic and

hands nowhere touch the liquid in the bottles.

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Bibliography

| 145

BIBLIOGRAPHY

1. Material Provided by DKD&BPL (PEPSICO)

Phillaur

2. HUMAN RESOURCE MANAGEMENT

Human Resource Management &

Personnel Management - K. Aswathapa

Human Resource Management - T.N. Chabra

3. Web-sites:

www.PepsiCo.com

www.Pepsizone.com

www.Pepsiindia.com

www.google.com

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