A SUMMER TRAINING REPORT ON PERFORMANCE APPRAISAL
Training Supervisor
Submitted By
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ACKNOWLEDGMENT
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EXECUTI EXECUTIVE VE SUMMAR SUMMARY Y
This project takes a look in various kinds of merchandising activities, market share of Pepsi and Coca Cola and various sales promotion schemes, which are followed in the soft drink industry. The two major global players i.e. Pepsi and Coca Cola dominate the soft drink industry in India. India is one of few battlegrounds in the world where there is neck-to-neck competition competition between the two. Both the companies claim to be b e in number one sport coating the data produced by two different marketing research companies. Where coke follows ORG data and says it has 57% share, Pepsi follows IMRB data and says it has 49% market shares in India. In 2004 the cola war has begun afresh. Coca cola India today claimed that it has h as increased its market share form 57 percent in the carbonated soft drink (CSD) Category in 2002 to 61 percent at the end of December December 2003, as per ORG - Marg figures. figures. Pepsi, however, however, contested contested the figures by saying that it market share stood at 47.6 pe4rcent during the same period and Coca Cola India had a combined combined market share of only 52.4 percent, as per IMRB figures. In this cutthroat competition, both of the cola majors have to do something special to the service. This something special is done in various forms of advertising and sales promotion schemes provided by the two companies. Coca cola's 200ml strategy has paid off. New consumers are coming in droves from the hinterland. This apart, the company undertook a series of cost-cutting measures to ensure efficient distribution. According to Mr. Sunil Gupta, president Coca Cola India, apart from the 200 ml strategy, strategy, ultra light glass bottles saved transport transport costs, centralized procurement procurement of raw material cut down wastage and the hub-and-spoke distribution system ensured deeper penetration and faster turnaround of returnable glass bottles.
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TABLE OF CONTENTS S.NO.
TITLE
Page No.
1.
2.
INTRODUCTION
1.1
OVERVIEW OF THE INDUSTRY
1.2
PROFILE OF THE COMPANY
1.3
PROBLEMS OF THE COMPANY
1.4
COMPETITION INFORMATION
1.5 SWOT ANLYSIS RESEARCH METHODOLOGY 2.1
SIGNIFICANCE
2.2
MANAGERIAL USEFULNESS OF THE
STUDY
3. 4. 5. 6. 7.
2.3
OBJECTIVE OF THE STUDY
2.4
SCOPE OF THE STUDY
2.5
RESEARCH METHODOLOGY
2.6 LIMITATIONS CONCEPTUAL DISCUSSION DATA ANALYSIS FINDINGS AND RECOMMENDATIONS ANNEXURE BIBLIOGRAPHY
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Chapter 1 INTRODUCTION
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INTRODUCTION 1.1 OVERVIEW VIEW OF SOFTDRINK INDUSTRY 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. Although Coca-Cola and Pepsi Cola are premier marketing companies the fundamental competitive advantage that allowed that to compete so effectively lies in their ability to operate through a very cumbersome distribution system. 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 succeeded. Finally in June 1990 Pepsi was launched in India
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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. The Texas soft-drink industry dates from 1839, when Dr. Thomas Mitchell, an English physician living in Houston, operated an apothecary with a soda fountain from March until his death on October 1. Carbonated water had bubbled from springs in Europe since Roman times. During the eighteenth century, scientists experimented with "fixed air" and produced "aerated waters." Some of them used bicarbonate of soda in their experiments, and the term "soda water" became ensconced in the English language. By 1810 New York City had "soda fountains," where proprietors dispensed artificial "mineral waters" for therapeutic purposes. Flavored soda water, which developed with the rise of the ice industry, was available in apothecary shops, but bottled soda water was an expensive product. Sailing ships took ice from northeastern states to New Orleans in 1820 and later to Houston, and in 1838 a Houston newspaper noted that ice sold for 50 cents per pound. In 1850 Texas had none of the sixty-four bottling plants in the nation. The first notice of a soda-water manufacturer in Texas was issued in 1866, when the Houston City Directory listed J. J. C. Smith's establishment as a "mineral water manufactory." In the 1870 census, Galveston and Brownsville reported "manufacturers of mineral and soda water." Victoria and Austin had two ice-making machines. Texas had one of the four ice plants in the nation. In 1880 Texas had eleven bottling plants: four in San Antonio, two each in Galveston and Austin, and one each in Houston, Dallas, and Mexia. In 1890 Texas had forty-two soda-water plants, plus five unspecified bottlers and seven breweries. The 1890s saw major changes in the state's soft-drink industry. New plants appeared with the introduction of the Hutchinson bottle stopper, patented in 1879 and manufactured in Chicago. (In a Hutchinson stopper, a wire loop protruded from the bottle neck and was
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fastened to a rubber seal; when seated the seal blocked the escape of gas from the water in the drink.) Most plants served one or two counties, and occasionally they shipped by rail to neighboring communities. The bottler's largest investment was in bottles and cases. No deposit was charged and bottle stealing among bottlers was common, even when glass blowers embossed the name of the town on the bottles. In 1891 the Elliott Bottling Works of Paris called a convention to address the problem. Twenty-nine bottlers and suppliers, principally from East Texas, met in October in Dallas and formed the Texas State Bottlers Protective Association. They drafted a constitution and by-laws aimed at preventing "the unlawful use of registered bottles, boxes, siphons, etc." But policing was impossible. By the 1890s two beverages had changed the character of the soft-drink industry. In 1885 Charles Alderton, a Waco pharmacist, originated Dr Pepper Phos-Ferrates (see DR PEPPER COMPANY), and in 1886 John Pemberton concocted Coca-Cola in Atlanta, Georgia. In 1885 Wade B. Morrison, who owned the Old Corner Drug Store in Waco, arranged with Robert Sherman Lazenby, owner of a small bottling plant, to mix and ship Dr Pepper Phos-Ferrates syrup to area drugstores. In 1891 a feed-store operator in Dublin, Texas, began bottling soda waters, including Dr Pepper. Other plants in Central Texas followed suit. However, during the 1890s no Texas bottling plant advertised a franchised soft drink and no company listed such a product in its company or corporate name. In 1898, during the Spanish-American War, Lazenby had an exclusive War Department contract to bottle and ship his Circle A Ginger Ale to servicemen in foreign lands. He supplied both army and navy installations until World War I. In 1900 Texas had 139 soda-water bottling plants. Lemon, ginger, ale, vanilla, orange, sarsaparilla, and raspberry were the principal flavors. The state also had seventy-seven ice plants, more than any other. Only one bottling plant used power-a four-horsepower central motor which delivered power by belts to carbonators and bottle-washing machines. In 1899 two lawyers from Tennessee, B. F. Thomas and Joseph Whitehead, secured "bottling rights" from the Coca-Cola Company of Atlanta, Georgia. They issued contracts to produce and sell Coca-Cola within control areas. Although Texas and parts of New England were excluded, the system provided the capital and the entrepreneurship needed to
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develop the soft-drink industry nationally. Thomas and Whitehead offered contracts in specific geographic regions, Thomas taking the northern and eastern states and Pacific coast and Whitehead taking the South and Southwest. Thomas built a bottling plant in Chattanooga, Tennessee, and Whitehead built one in Atlanta. Whitehead sold a half interest to J. T. Lupton, a lawyer from a Virginia tobacco family. Lupton helped finance the CocaCola bottling plant in Atlanta, and in 1902 his relatives opened plants in Dallas and Houston. Within three years Coca-Cola was selling its syrup to twenty-nine Texas plants. Soft drinks were among the first consumer products controlled by the franchise system. In 1914 twenty Texas bottlers listed Coca-Cola as part of their trade name, and eight did not. Other Texas companies did not issue franchises until the 1920s. Delaware Punch, a noncarbonated drink formulated in 1913 in San Antonio, was among the first to join CocaCola in issuing franchises in Texas. Between 1899 and 1914 the number of Texas plants doubled and the value of production tripled. In 1914 Texas had 262 plants (4.8 percent of the nation's total), but only the Coca-Cola bottlers included the franchise in their trade name. Between 1914 and 1924 a number of flavor manufacturers or distributors began offering franchises patterned after the Coca-Cola model. In 1922 Texas had 179 bottling works, but only 33 included a copyrighted soft drink in their trade name-30 with Coca-Cola and 3 with Whistle. By 1923 Texas had 205 plants (of 4,514 nationally). In 1924 nine bottlers were producing "cola" drinks besides Coca-Cola, including Chero-Cola, Tex-A-Cola, Lime Cola, Keen Kola, and Cola Hiball. Cola-Cola filed a lawsuit against all "imitators," won a raft of court decisions, and stopped the traffic for a decade. The Chero-Cola Company of Columbus, Georgia, changed its corporate name to Nehi Company and promoted fruit flavors. Other franchises in Texas included Whistle (six plants), Orange Crush (three), NuGrape (one), Grapico (two), and Cherry Blossoms (one). Bottling plants also manufactured other merchandise: ice (five plants), ice cream (ten), candy (eleven), creamery products (three), and beer (one). Out of 276 bottling firms, 114 produced no franchised soft drinks. In 1924 Texas bottlers marketed eleven trademarked products. By 1929 the state had thirty-four Nehi plants, ten Dr Pepper plants with name identification by trademark, three Orange Squeeze plants, and six other plants incorporating a beverage 5
name. name. Coca Coca-C -Col olaa gave gave bottl bottler erss "excl "exclus usive ive right rights" s" to use its its trade tradema mark rk in 6½-o 6½-ounc uncee returnable bottles in a specific territory. In 1929 Texas had 325 bottling plants, 16.3 percent of the national total. The number declined to 260 in 1931 and 210 in 1933. During the Great Depression, Depression, Seven-Up and Pepsi-Cola sought markets in Texas, mainly under the promotion of Jodie W. McCarley of San Antonio. While shagging baseballs for the Cleveland Indians in St. Louis, McCarley met Pearl Whitcraft and Ed Taylor, who owned soda-water plants in the city. In 1929 Taylor offered McCarley a chance to get in the bottling business by assuming a debt owed a St. Louis flavor manufacturer. McCarley set up a small bottling bottling plant in his home in San Antonio with second-hand second-hand machinery, machinery, and peddled his drinks each morning. morning. In addition addition to generic generic flavors, flavors, he sold Knight Club Ginger Ale, mostly to bootleggers. Ed Taylor also put McCarley in touch with C. L. Griggs, owner of the Howdy Company, which offered franchises on Howdy Orange. In 1928 Griggs had copyrighted Seven-Up, a lithiated lemon drink promoted as a mixer. In January 1930 McCarley, the second bottler in the nation to receive a Seven-Up franchise (Taylor was the first), was given an opportunity to sell Seven-Up in seventy-eight Texas counties. Business was slow: he signed up only one bottler, Ed Knebel, who had moved his small plant from Pflugerville to Austin in 1930. In 1932 McCarley obtained a franchise to sell Hires Root Beer. Then Whitcraft notified McCarley that Pepsi-Cola was interested in Texas, and on April 1, 1934, McCarley and a partner secured a Pepsi-Cola franchise for sixty-four counties. McCarley was the first Texan to bottle Pepsi-Cola. In his first year he sold sold 13,300 13,300 cases cases of Pepsi Pepsi in twelve twelve-ounc -ouncee beer beer bottle bottless of brown, brown, green, and "flint" "flint" (colorless). As his business expanded, he began operating five route trucks, and in 1937 he moved to a larger plant in San Antonio. By the 1930s, Pepsi and Nehi's Royal Crown Cola had established markets in Texas. Nehi had a statewide system known as Chero-Cola bottlers. bottlers. Depression Depression prices enabled bottlers bottlers to offer twelve-ounce twelve-ounce drinks for five cents retail, and twelve-ounce bottles became popular. Between 1934 and 1939 Pepsi signed up bottlers bottlers in eighteen eighteen Texas Texas towns, towns, though many many of these these did not not survive. survive. Texas bottlers were highly competitive. With Cola-Cola leading the way, they maintained an eighty-cent wholesale price for a case of twenty-four bottles. The Coca-Cola franchise
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system had developed, however, when each plant served an area that a horse-drawn truck could could cove coverr in a day. day. The mo moto torr truc truck k expan expande ded d deale dealerr terr territ itori ories es.. Altho Althoug ugh h each each community had a wealthy Coca-Cola bottler, Walter Mack, Pepsi president in 1938-39, saw opportunities. Coca-Cola maintained 1,150 franchise areas in the nation, but Mack was able to franchise 550 areas for Pepsi. Pepsi also ran ads at independent radio stations and later on the networks. By early 1938 many Texas Coca-Cola bottlers, under company pressure, pressure, had dropped all flavors except Coca-Cola. Coca-Cola. Dr Pepper started franchising franchising in 1925 and offered the drink to Coca-Cola bottlers, who declined to accept. In 1938 the Texas softdrink industry comprised 297 plants. Most held multiple franchises. At the outbreak of World War II, II, the soft-drink industry faced rationing of sugar, crown caps, cork, gasoline, tires, trucks, and coolers. Though prices were frozen and labor became scarce, bottlers profited from the military bases established in Texas, since quota-exempt sugar was available to the military, which deemed soft drinks essential to morale. CocaCola Cola promptl promptly y mov moved ed its vending machines, machines, introduced introduced in the late 1930s 1930s in service service stations, grocery stores, and at-work outlets, to military bases. Few bottlers had vending machines, especially multiple choice vending. These bottlers found markets at the Post Exchanges. After the war, soft drink demand soared. On October 23, 1946, wartime controls were lifted, but sugar rationing continued until July 28, 1947. Bottlers were reluctant to break the "nickel price." Coca-Cola advanced its price from 80 cents to 90 cents to $1 a case, but still did not raise the retail price of 5 cents. Some coin-vending machines had a six-cent mechanism, but they were awkward to use. While Coca-Cola kept sales prices down, other companies, especially Pepsi and RC Cola, were stuck with a twelve-ounce bottle and its higher ingredient costs. In1955 Coca-Cola introduced the "king-size" (ten or twelve ounce) and the "famil "family-s y-size ize"" bottle bottless (twent (twenty-s y-six ix ounces) ounces).. The familyfamily-siz sizee returna returnable ble became became popular in Texas, particularly particularly in urban areas. Dr Pepper and Seven-Up followed. followed. Nehi had authorized the "Par-T-Pak" in quart or family size in the 1930s, but sales had been slow. Bottlers soon saw the economy of returnable bottles. As prices and bottle sizes increased, a conflict loomed between "big-bottle "big-bottle bottlers" bottlers" and "little-bottle "little-bottle bottlers." bottlers." Clifton Clifton C. Carter, Carter,
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a vice president of the Texas State Bottlers Association, sought to resolve the problem. In 1952 the Texas State Bottlers Association enrolled 226 bottling plants as dues-paying member members; s; 145 plants plants were were non-mem non-member bers. s. Carter Carter,, member membershi ship p chairm chairman, an, soug sought ht new members members and saw a major increase in membership membership to 71 percent of total Texas bottlers. In February 1954 Carter became president, W. L. "Brownie" Dorris became vice president, and J. Conrad Dunagan became second vice president. Association officers made swings through Texas to enlist members. Carter visited eleven cities, Dorris nine, and Dunagan five. Their efforts bore fruit. By enlisting members, the association began to defuse the bottling bottling controversy controversy and other problems. problems. In 1957 the American American Bottlers Bottlers of Carbonated Carbonated Beverages, of which the Texas State Bottlers had been an affiliate since 1919, cited the Texas group as the "outstanding state bottlers' association in the nation." Dunagan was elected to the ABCB Executive Board in 1961 to the presidency for 1957-58. Texas, with more ABCB members than any other state, brought the national convention to Dallas in 1961. Vice President Lyndon B. Johnson gave the keynote address. As the Texas bottlers worked out their differences, innovations changed the industry in packaging, packaging, manufacturing, manufacturing, and distribution. distribution. Cans with linings that could withstand withstand the acidity of soft drinks were introduced, along with materials to withstand high degrees of carbonation. carbonation. Calcium Cyclamate and sodium cyclamate cyclamate were combined with the synthetic synthetic sweetener saccharin to produce an acceptable diet drink. Nehi had tried to market Diet Rite in 1952 in Texas, but acceptance was spotty. However, diet drinks gained steadily and reached an annual rate of 15 percent of the soft-drink market by 1969. Major soft-drink companies, as well as major brewers, had developed canned drinks during World War II, but a "metallic" "metallic" taste persisted persisted because because the cans lacked lacked special acid-resis acid-resistant tant linings. linings. CocoCola introduced canned drinks in 1960, when it authorized the Kimble Food Products Company Company of Fort Fort Worth Worth to offer offer canned canned Coca-Co Coca-Cola la to franchi franchised sed bottle bottlers. rs. Althoug Although h supermarkets quickly accepted canned drinks, they sold only 450 million cans in 1954, a fraction of the 30.3 billion bottles sold. Canned-drink sales fell to 317 million by 1956, when Royal Crown, Nehi, and Par-T-Pak entered the market. Canned RC Cola, Diet Rite, and Nehi flavors arrived in Texas by rail from Columbus, Georgia. The glass-container industry, aware that Texas supermarkets objected to handling returnable bottles, introduced 8
light-weight glass bottles. The larger sizes, twenty-six to thirty-two ounces, easily competed with aluminum and steel cans. Marketing strategies also changed. In the 1920s, soft drinks were sold for home consumption. Grocery stores offered a twenty-four-bottle wooden case, and plants also sold cases from the floor or loading docks. In 1922 CocaCola sought additional markets by producing a cardboard six-bottle carton, but the boxes were too expensive for one-trip use. Strengthened paperboard solved the problem. In 1933 Coca-Cola distributed 2 cent postcards to bottlers for stores to use as coupons with which a customer could received a free six-pack by paying the twelve-cent bottle deposit. This encouraged housewives both to return the empties and buy more. In the 1970s the federal government threatened the franchise system in the soft-drink industry. In 1971 the Federal Trade Commission declared the existing franchises to be illegal restrictions on interstate commerce and sued the major companies. After lengthy hearings, the FTC examiner ruled for the soft-drink companies. While the threat of franchise cancellation hung over their heads, some bottlers turned to cooperatives to build canning plants. Pepsi-Cola built a plant at Conroe, and in July 1970 turned it over to a corporation composed of Texas Pepsi-Cola bottlers. By 1972 West Texas bottlers planned a cooperative to produce Coca-Cola and other franchised products. Amarillo, Lubbock , and Monahans bottlers sought ties with New Mexico and Oklahoma bottlers. They established the Southwest Canners, with J. Conrad Dunagan as president, Pat W. McNamara as vice president, and R. E. Nickles as secretary-treasurer. But Coca-Cola warned that the bottlers who used their franchise territory to host a cooperative could incur substantial liabilities. The organizers also discovered that Texas lacked legislation to permit issuing tax-exempt bonds for industrial development, so Southwest Canners located its plant in Portales, New Mexico, in the Clovis Coca-Cola franchise. New Mexico permitted industrial bonds to acquire land, buildings, and equipment, and an Albuquerque investment bank underwrote $2 million in municipal bonds. The Portales plant opened in the spring of 1975. By then, however, the FTC decision favoring franchises had been overruled-a shocking set-back. The bottlers now sought federal legislation to rescue their franchises. As most congressional districts in Texas had bottling plants, the bottlers found wide support. But
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Texas representative George H. Mahon, chairman of the Appropriations Committee, would not release the bill. Finally, Sam Hall, of Marshall, introduced a measure to call the bill from committee by a House vote. Both House and Senate approved the measure, and the soft-drink franchise system was saved. In the late 1970s and early 1980s, bottling franchises began to consolidate. Coca-Cola, which had relied heavily upon independents until the 1980s, began to purchase large independent bottling groups in 1986 and consolidate them into Coca-Cola Enterprises. In July 1986 Coca-Cola Enterprises acquired Rainwater Coca-Cola Bottling Companies in Texas, and in September they acquired control of the McAllen and Brownsville Coca-Cola Bottling Companies. By the mid-1990s many of the major urban markets for Coke were serviced by Coca-Cola Enterprises, supplemented by other company franchises and independents. In 1996 Pepsi-Cola had company-owned bottling facilities at Conroe, Houston, Mesquite, and San Antonio, and worked through independent bottlers at Abilene, Hallettsville, and Corpus Christi. Dr Pepper merged with the Seven-Up Company in 1986 and soon thereafter moved its manufacturing operations to facilities in St. Louis, although the company's corporate headquarters remained in Dallas.
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COMPANY PROFILE
ABOUT PEPSICO COMPANY PepsiCo is a world leader in convenient foods and beverages, with 2004 revenues of more than $29 billion and 153,000 employees. The company consists of Frito-Lay North America, PepsiCo Beverages North America, North America, PepsiCo International and Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $78 Billion.
Many of PepsiCo’s brand names are more than 100 years old, but the corporation is relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
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Frito-Lay. Tropicana was acquired in1998 and PepsiCo merged with Quaker Oats Company including Gatorade in 2001.
PepsiCo’s 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 growth and enrichment to our employees, business partners and the communities in which we operate. And n everything we do, we strive for honesty, fairness and integrity.”
PepsiCo’s World Headquarter
PepsiCo’s world Headquarter is located in Purchase, New York , approximately 45 minutes from New York City. The seven building headquarters complex was designed by Edward Durrell Stone , one of America’ foremost architects. The building occupies 10
acres of a 144 acre complex that includes the Donald M. Kendall Sculpture Gardens , a world acclaimed sculpture collection in a garden setting.
PEPSI – THE INDIAN SCENARIO Since the entry of Pepsi – Cola to India in 1989, the soft drink industry has under gone a radical change. When Pepsi-Cola entered Indian market, Parle was the leader with the Thumps-Up being its flagship brand.
Other products offering by Parle included Limca & GoldSpot , another upcoming player in the market was, the erstwhile bottler of Coca-Cola , “Pure Drinks”. Its offering includes Campa-Cola, Campa-Lemon & Campa-Orange.
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With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in for more aggressive marketing to sustain share.
The chronology of the initial phase of the Cola Wars in India are ……
1977 Milestone
Parle launched Thumps-Up and pure drinks launched Coca-Cola.
1990 Milestone
In March, “Pepsi-Cola and 7-Up” launched markets in north India.
In May, the Government cleared the Pepsi-Cola project again but with a change in brand name to “Lehar Pepsi”, simultaneously it rejects the Coca-Cola application “Citra” from the Parle, stable hited the market.
1991 Milestone
Pepsi-Cola extended its soft drinks business and reached at national scale. Pepsi-cola launched its product in Shimoga and Bombay.
1992 Milestone
In January, Brito Foods application is cleared by the FIPB. Pepsi-Cola and Parle start initial negotiation for a strategic alliance but took break off after a while.
1993 Milestone
Pepsi-Cola launched “Slice & Teem” captured about 25-30% of the soft drink market in about 2 years.
1994 Milestone
Pepsi bought “Dukes & Sones ”.
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1995 Milestone
Pepsi-Cola lunched Cans, having capacity of 330ml in various flavours.
1996 Milestone
Pepsi-Cola domestic and International operations combined into a PepsiCola Company. International and Domestic operations combined into one business unit called “Frito-lay Company”.
1997 Milestone
Pepsi-Cola brought “Mirinda Orange” Opposite to “Fanta”.
1998 Milestone
Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”. In September, final approval for the Pepsi Foods Ltd. Project granted by the “Cabinet Committee ” on economic affairs of the “Rajeev Gandhi Govt .”
1999 Milestone
Pepsi-Cola launched “Diet Pepsi” can and 1.5 Lit.
“PET” bottle for
health conscious people.
2001 Milestone
Pepsi-Cola launched Slice in “Tetra” Pack .
2003 Milestone
Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season. season.
2005-Milestone
Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of movie Batman.
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2005-Milestone
Pepsi-Cola launched 7-up as “7-up ice”.
Pepsi-Cola launched “Mountain Dew” to be more competitive with Coca-cola.
CELEBRITIES FOR PEPSI Following are some celebrities celebrities for Pepsi : -
Amitabh Bachchan
Shahrukh Khan
Saif Ali Khan
Fardeen Khan
Kareena Kapoor
Preity Zinta
Sachin Tendulkar
Saurav Ganguly
Yuvraj Singh
Harbhajan Singh
Rahul Dravid
Zaheer Khan
Mohammad Kaif
Priyanka Chopra
FAMOUS CATCH LINES
Some famous lines of Pepsi are : •
“Yehi Hai Right Choice Baby……Aaha !!”
•
“Nothing Official About It”
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•
“Choice of Next Generation”
•
“More Cricket More Pepsi”
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“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”
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“Do The Dew”
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“Oye… Bubbly !!”
R .K .Jaipuria Group
It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Our services touch different aspects of commercial and civilian domains like those of Bottling, food chain and education. Headed by Mr. R. K. Jaipuria, the group as today can lay claim to expertise and leadership in the fields of education, food beverages.
The business of the company was started in 1991 with tie- up with Pepsi Foods Limited to manufacture manufacture and market Pepsi brand of beverages in geographically geographically pre-defined territories territories in which brand and technical support was provided by the Principles viz., Pepsi foods Limited. The manufacturing facilities were restricted at Agra Plant, only Varun Beverages Ltd. is the flagship company of the group.
The group also become the first franchisee for Yum Restaurants International [formerly Pepsi Co Restaurants (India) Private Limited] in India.
It has exclusive franchise rights for the Northern & Eastern India. It has total 27 pizza Hut Restaurants under its company.
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It diversified into education by opening the first school in Gurgaon under Management of Shimoga Public School Society. The schools of the group are run under a registered Trust namely Champa Devi Jaipuria Charitable Trust.
Companies are medium sized, professionally managed, unlisted and closely held between Indian Promoters and Foreign collaborators.
The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the year ” award was presented to Mr. R. K. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawai, USA. The award was presented by Mr. Donald M. Roger A. Enrico , Chairman of the Board & C.E.O., PepsiCo Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.
Vision:-
Being the best in everything we touch and handle.
Mission:-
Continuously excel to achieve and maintain leadership position in the chosen business and delight all stakeholders by making economic value additions in all corporate functions.
Success :-
Production of innovative, high quality retail branded beverages combined with world class packaging.
Driven by management team with a relentless focus on achieving superior customer service, driving earnings improvement and shareholder value.
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People :-
RKJ creates an environment where employee enjoy a greater degree of empowerment – both individually and in their work teams.
The employees are equipped with the necessary tools, training and well management backup for strong performance and accountability, as well as with an environment of open communication and involvement.
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THE RKJ GROUP INVESTMENT
COMPANIES CHART
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VARUN BEVERAGES LTD, GREATER NOIDA
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VARUN BEVERAGES LTD (PEPSI), Plot No – 2, Surajpur Bypass, Greater Noida is a
Bottling Plant of Pepsi Cola Brands. Today, VBL is the top position holding company among the soft drink bottling companies in India. Its registered office is located in New Shimoga and corporate office at Noida. It is a Franchise company of PepsiCo India holding.
It’s a “R.K. JAIPURIA GROUP COMPANY”. The group is a largely
diversified rising group having interest in Soft Drink Bottling, Restaurant chains under the Brand name of Pizza Hut and Tricon & Creambell Ice Cream manufacturing, power project, Export and many other projects. It is having Pepsi Bottling Plants in various places of India as well as out of India. It is on the rising path under and the wisdom guidance of its chairman
Mr. R.K.JAIPURIA.
The VBL plant was established in the year 1995 in Greater Noida. It was the first plant to start its operation in the Greater Noida Industrial Development Area. Greater Noida Industrial Development Authority has awarded and given early production incentive for being starting and competing the project very first in Greater Noida. The company’s mainly operate the Bottling and marketing of Pepsi Cola Brand. Its product brand are Pepsi, Mirinda-orange, Mirinda-Lemon, Mirinda-Apple, Slice, 7-Up, Evervess Soda. Its marketing Network is spread in
Western-UP, Haryana, Rajasthan,
Shimoga(TRANS YAMUNA) and Uttaranchal. VBL has always secured top position in its best quality and marketing. Mr.R.K.JAIPURIA who is the chairman of the group, received various award for the best quality and marketing. He has also been awarded for good quality and marketing in South Asia with “EXCELLANCY AWARD ” by Mr. GEORGE BUSH, former president of U.S.A. in 1998. AIM
The main aim of VBL Greater Noida plant is to provide soft drink to the people of India in its assigned territory, which is helpful in keeping cool their mind.
20
The aim of this company is also to provide full satisfaction to the customers. And most importantly, through a range of customer relevant product manufactured with care and quality in a fully hygiene environment.
QUALITY POLICY •
Deliver the best product in the market place
•
The highest Quality
•
The best Tasting
21
Different Brands of Pepsi Co.(India) Pepsi Co is today having the soft drinks market in India with lots of its brands. They have
also diversified into different sectors. Their popularly exiting brands in the Indian Market are as follows: Soft Drinks
1) Pepsi 2) Pepsi Blue 3) Diet Pepsi 4) Mountain Dew 5) Slice 6) 7Up Purified Drinking Water Aquafina Fruit Juice Tropicana Chips Frito-Lays Ruffles
22
Composition of Pepsi Pepsi
Contains: Carbonated water, high fructose corn syrup and/or sugar, caramel color, phosphoric acid, caffeine, citric acid and natural flavors Calories 100
Total Fats (g) 0 Sodium (mg) 25 Potassium (mg) 10 Total Carbohydrates (g) 27 Sugars (g) 27 Protein (g) 0 Caffeine (mg) 25 Pepsi Blue
Contains: Carbonated water, high fructose corn syrup and/or sugar, citric acid, natural and artificial flavors, phosphoric acid, potassium citrate, potassium benzoate and potassium sorbate (to preserve freshness), caffeine, gum arabic, ascorbic acid and calcium disodium EDTA (to protect flavor), blue 1, red 40 Calories 100 Total Fats (g) 0 Sodium (mg) 25 Total Carbohydrates (g) 27
23
Sugars (g) 26 Protein (g) 0 Caffeine (mg) 25 Diet Pepsi
Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium benzoate (preserves freshness), caffeine, citric acid and natural flavors Calories 0 Total Fats (g) 0 Sodium (mg) 25 Potassium (mg) 20 Total Carbohydrates (g) 0 Sugars (g) 0 Protein (g) 0 Caffeine (mg) 24
PRODUCTION SET UP Greater Noida plant is a dedicated plant for 7 major products. These are as follows : PRODUCT
BOTTLING FILLING
PEPSI
300ML, 200ML
MIRINDA ORANGE
300ML, 200ML
MIRINDA LEMON
300ML, 200ML
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SLICE
250ML
7- UP
300ML, 200ML
EVERVESS SODA
300ML
MOUNTAIN DEW
200ML & 300ML
Plant is producing 10 million cases every year. Plant has employed about 200 employees on permanent and casual basis. There are 40 mangers/officers/ supervisors and rest of workmen. Plant is dispatching near about125-150 trucks in peak seasons per day to various location. This Plant is spread in peak seasons per day to various location. This plant is spread over 7.5 acre.
1.3 •
•
•
PROBLEMS OF THE ORGANIZATION
Service delivery / Logistics perception is weak Negative Environment Top management takes large amount of time to approve high value loan borrowers.
1.4
COMPETITION INFORMATION
•
COCA-COLA INDIA PVT LTD
•
DABUR INDIA LTD
•
MOUNT EVEREST MINERAL WATERS LTD
•
NARANGS HOSPITALITY SERVICES PVT LTD
•
PARLE AGRO PVT LTD
•
PARLE BISLERI LTD
25
•
PIOMA INDUSTRIES LTD
26
1.5
SWOT ANALYSIS
STRENGTHS
1.
Company belongs to the FMCG sector so the demand will never die.
2.
A large and strong distribution network. (In comparison to the other competitive brand Pepsi is having better reach to the market.)
3.
Professional and dedicated manpower. (Starting from the higher-level management to the sales-man Pepsi’s employees is having great degree of dedication and professional attitude towards selling the products. On the other hand companies’ operational staff always try their maximum strength to meet the demand and utilize the recourses to maximum.)
4.
More emphasis on market penetration. (Companies efforts of providing the Pepsi and other products to the customer’s doorstep are working vis-ã-vis wherever the transportation is not possible dealers are appointed.)
5.
In comparison to Coca-Cola’s red color, which is brighter and have more visibility Pepsi’s blue color provide sense of relax ness in the bright sunny day.
6.
In the rural areas and outskirts of the city where there is maximum population is illiterate, Pepsi is having an edge. (As compared to Coca-Cola, pronouncing Pepsi is lot more easy reason for more demand of the Pepsi and its brands.)
7.
More popularity among the kids and female youth. (Because of the sweetened taste Pepsi and its other brands attracts the kids and female more. Mirinda is found more popular among kids.).
8.
Retain ability of the T.V. advertisements of Pepsi is far more in comparison to Coca - Cola. (Pepsi’s T.V. advertisement in which Sachin Tendulkar whistles at the end
27
has maximum retain ability. Other than this world cup 2003 advertisement campaign that comprises of Sachin Tendulkar, Shane Warne and Carl Hooper, advertisement campaign which comprises of Amitabh Bachan, Karma Kapoor and Adnan Sami and latest advertisements of Pepsi and Mountain Dew (Do the Dew) are very famous. On the other hand Coca-Cola’s advertisement campaign of” thanda matlab Coca-Cola” and Amir Khan’s five rupees add have the maximum retainability. WEAKNESS
1.
Coca-Cola’s red color has more visibility than Pepsi’s blue color. (Because of the bright color of Coca-Cola it is more visible even from the distance as compared to Pepsi)
2.
Pepsi’s sinages are far more scattered as compared to Coca-Cola. (Because of this at some places it looks that the market is captured by Coca-Cola.).
3.
Low plant capacity because of which company is not able to meet its demand during the peak season. (Devyani Beverages India Ltd., Pepsi’s Greater Noida plant has one continuous assembly line for preparing tetra and four continuous assembly lines’ which are filling around 15,000 bottle/day, which is insufficient to complete the demand during the peak seasons.).
4.
Lesser plant utilization during the off-peak seasons. (During the winter season as the demand is very low, plant and resource utilization goes down.)
5.
Lack of automaton in the administrative department in the plant, which results in wastage of time and sometimes in resources also.
OPPORTUNITIES
28
1.
Demand is more than the production. (Because of the heat the demand of the soft drink raised drastically which is the good opportunity for the company a the rival brands are also finding it difficult to complete the demand. Therefore PepsiCo. has to increase the production.)
2.
In the rural areas PepsiCo’s distribution network is far stronger vis.-I-vis to any of the competitor. Therefore it is viable to make it more stronger, as this can restrict the entry of the other brands in the rural market.
3.
Kids demand for the Mirinda more as compared to any other orange flavor soft drink brand.
4.
With the launch of slice tetra PepsiCo has entered in to one more segment of soft drink beverages, which was more or less captured by the “Frooti” till now.
THREATS
1.
Not able to meet the market demand during the peak season. (As the plant capacity is very low the company is not able to meet the existing demand during the peak seasons).
2.
Pepsi is not picking up the empty bottles of Coca-Cola on the other hand Coca-Cola is exchanging the Pepsi’s empty bottles with the filled bottles of Coca-Cola. (This is hitting the Pepsi in two ways, firstly our bottles are getting tucked with the CocaCola and creating shortage of empty bottles of Pepsi in the market, and secondly when our salesman goes to distribute the re-filled bottles in the market, he tends to meet with the lack of sales at the end of the day despite of the increasing demand because wherever he goes he found the empty bottles of Coca-Cola everywhere which he is asked not to picked up.
29
3.
There is lot of complaints are coming up about the impurities or leakage of gas or leakage of carbonated water. (Within the last 30 days I met around 50 such complaints because of which retailers were very angry with the company).
4.
Some of the filling equipments in the plant are quite old which one of the reasons for low production is.
5.
There is no proper policy of distributing the merchandising assets of the company to the retailers. (Many of the retailers have so many things though their sales are low but few of them don’t have anything inspite of large sales.).
30
Chapter 2 OBJECTIVE AND RESEARCH METHODOLOGY
31
RESEARCH METHODOLOGY
2.1
SIGNIFICANCE The main significance of the project is to identify the level of motivation, job satisfaction and performance among the employees after & before the conduction of Performance Appraisal Exercise.
2.2
MANAGERIAL USEFULNESS OF THE STUDY To point out and suggest the organization to adopt remedial actions to remove those loopholes, aiming to improve the productivity and efficiency of the worker and increase the level of job satisfaction among them.
2.3
OBJECTIVE To critically study the HR Policies and Performance Appraisal system existing at
•
Varun Beverages Ltd. •
To study the various types of Performance Appraisal methods.
•
To study the Performance Appraisal method being used at Varun Beverages Ltd.
•
To establish a direct relationship between work performance and Performance Appraisal system.
2.4 •
SCOPE OF THE STUDY To find out the loopholes (if any) in the Performance Appraisal System at Varun
Beverages Ltd.
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•
2.5
To have an overlook over the changes and improvements made in the Company
METHODOLOGY
Research Methodology is a way to systematically solve the research problem involving a study of various steps that are adopted by the researcher in studying his/her research problem. Data Collection
There are two methods for collecting the data. They are: 1)
Primary Data
2)
Secondary Data
Primary data: There are several methods of collecting Primary data. These are given below. A- Observation method: The observation method is the most commonly used method especially in studiesrelating to behavioural sciences. Under the observation method the information is sought by way of investigator’s own direct observation without asking from the respondent. B:- Interview method: The interview method of collecting data involves presentaion of oral verbal and stimuli reply in terms of oral verbal responses. This method can be used through personal interviews and if possible through telephonic interviews. C:- Questionnaires;- This method of data collection is quite popular particularly in case of enquiries. It is being adopted by private individuals, research purposes, private and public organizatoions and evenby governments. In this method questionnaires are sent to the
33
persons ofconcern with the request to answer the questions and return the questionnaires.The respondents have to answer the questions on their own. In this project I have used questionnaires as one of the primary sources of collecting data. Secondary Data
When an investigator uses the data that has been already collected by others is called Secondary Data. The secondary adapt could be collected from Journals, Reports and various publications, web sites. The advantages of the secondary data can be- it is economical, both in terms of money and time spent.
Sample Designing: Target Population : The target population under this survey are the schools, canteens,
colleges, restaurants, banquet halls and other beverage stalls etc. which keep Pepsi products and are in contract with Pepsi Food Pvt Ltd. Also the target population is limited to the north and West Shimoga only. Type of Universe :
Retailers or marketers who sell Pepsi products in the finite type of universe.
Consumers of Pepsi products are the infinite type of universe.
Type of Sampling : The sample is drawn on non-probability sampling basis i.e. non-
random sampling technique has been used. The list of target population is definite and already decided in advance. Sample Size: The sample size taken into consideration includes simple of around 90
related people in various different location. The sample size has been decided in accordance with the instructions been given by the Pepsi Food Pvt. Ltd.
2.6
LIMITATIONS
34
Every Study suffers from certain limitations and so does this project. So, the applicability of the findings and recommendations is subjected to the following mentioned constraints/limitations
Respondents were reluctant to give their views on data or open to other
Shortage of time duration for the research work
Hiding of some true facts by the respondents due to the fear of the management
Though care has been taken, judgement errors may have occurred
Employees being very busy did not get enough time to give responses wholeheartedly
Some of the responses given by the respondents were not legible and clear.
35
Chapter 3 CONCEPTUAL DISCUSSION
36
CONCEPTUAL DISCUSSION 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. 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 .
37
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
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
38
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 the human brain, managers, need to understand and appreciate the contributions of all such ‘soft’ disciplines. SCOPE OF HRM 1.
Procurement
Procurement includes recruitment and selection of right kinds of personnel to occupy the various posts in the organization. It includes :-
39
(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. 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.
40
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 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
41
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.
42
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
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)
2)
Managerial Functions
A)
Planning
B)
Organizing
C)
Directing
D)
Controlling
Operative functions
A)
B)
Employment i)
Job Analysis
ii)
Human Resource Planning
iii)
Recruitment
iv)
Selection
v)
Placement
vi)
Induction & Orientation
Human Resource Development i)
Performance Appraisal
ii)
Training
iii)
Management Development
iv)
Career Planning & Development
44
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
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, 45
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. 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
46
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
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 :-
47
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.
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. 48
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.
vi)
Correcting misplacements, if any. Induction and Orientation
49
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 :-
51
Identification of the areas in which management development is needed
Conduction of development programmes
Evaluating the effectiveness of executive development program
PERFORMANCE APPRAISAL In simple terms, Performance Appraisal may be understood as the assessment of an individual’s performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgement, versatility, etcs. A formal definition of Performance Appraisal is : “It is the systematic evaluation of the individuals with respect to his or her performance on the job and his or her potential for development”
According to Dale Yoder, “all formal procedures used in working organization to evaluate personalities and contributions and potentials of group members” According to Flippo, “ Perfromance Appraisal is a systematic, periodic and so far as humanly possible, an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job”. Thus under Performance Appraisal, we not only evaluate the performance of a worker but also his potential for development.
Objectives of Performance Appraisal The main purposes of employee assessment are :-
52
Training, and Transfers have been effective or not. Performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns.
53
When to Appraise ?
The appraisals are conducted wheneverthe supervisor or personnel managers feel it necessary.
However systematic appraisals are conducted on a regular basis, say for
dxample every six months or annually. Whose Performance should be Rated ?
To the question as to whose performance should be rated? That is, who can be Ratee ? The answer is obviously – Employees! And when we say employees, it may be individual, group, teams, or division. Who are Raters ?
Raters are immediate Supervisors, specialists from HR Department, Subordinates, Peers, Committees, Clients, Self-appraisals, or a combination of several.
USE OF PERFORMANCE APPRAISAL Followings are the some major use of Performance Appraisal to the organization :-
Poor Performance indicates the need for retraining. Likewise, good performance may indicate untapped potential that should be developed. 2) Compensation Adjustments
Performance evaluations help decision-makers determine who should receive pay raises. Many firms grant part or all of their pay increases and bonuses based upon merit, which is determined mostly through performance appraisals.
54
Promotions, transfers, and demotions are usually based on the past or anticipated performance. Often promotions are reward for past performance. Good / bad performance throughout the organization indicates how well the human resource function is performing. Performance feedback allows the employee, manager, and Personnel specialists to intervene with appropriate actions to improve performance. Performance feedback guides career decisions about specific career paths one should investigate. Poor performance may be a symptom ill-conceived job designs. Appraisals help diagnose these errors. Deficiencies
Good or bad performance implies strengths or weakness in the personnel department’s staffing procedures.
PROCESS OF PERFORMANCE APPRAISAL Performance Appraisal is a nine step process :Step 1
In this step the performance standards are established based on the Job Description and Job Specification. The standards should be clear, objective and incorporate all the factors. Step 2
Under this step, the Performance Standards are informed to all the employees including Appraisals.
55
Step 3
In this step, the instruction given to appraisal are followed, measurement of employee performance by the appraisers through observation, interview, records and reports are done. Step 4
This step find out the influence of various internal and external factors on actual performance. Step 5
This step is to comparing the actual performance with that of other employees and previous performance of the employee and others. Step 6
The sixth step of Performance Appraisal Process, the actual performance is measured with the standards and finding out deviations. Step 7
The seventh step compares, the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for the positive or negative deviations from the pre-set standards as the case may be. Step 8
This step suggest necessary changes in standards, job analysis, internal and external environment. Step 9
The last step is the follow-up of performance appraisal report. This step includes guiding, counseling, coaching and directing the employee or making arrangements for the training and development pf the employee in order to ensure improved performance.
56
If the actual performance is very poor and beyond the scope of improvement, it may be necessary to take steps for demotion or retrenchment or any suitable measure.
57
METHODS OF PERFORMANCE APPRAISAL
1) Past Oriented Methods a)
Rating Scales
This is the simplest and the most popular technique for appraising employee performance. It consists of several numerical scales, each representing job-related performance criterion such as dependability, initiative output, attendance, attitude, co-operation and the like. Each scale ranges from excellent to poor. The rater checks the appropriate performance level on each criterion, then computes the employee’s total numerical score. The number of points scored may be linked to salary increases whereby so many points equal a rise of some percentage. b)
Checklist method
In this method, the raters doesn’t evaluate employee performance; he supplies reports about it and the final rating is done by the personnel department. A series of questions are presented concerning an employee to his behavior. The rater, then , checks to indicate if the answer to a question about an employee is positive or negative. To value of each question may be weighed equally or certain questions may be weighted more heavily than others. Generally, the questions are on ‘Yes/No’ pattern. c)
Forced Choice Method
In this method, the rater is given a series of statements about an employee. These statements are arranged in block of two or more, and the rater indicates which statement is most or least descriptive of the employee.
58
Typical statements are :-
d)
i)
Learns Fast………………….Works hard
ii)
Work is reliable…………… Performance is a good example
iii)
Absent often…………………usually tardy Forced Distribution Method
One of the errors in rating is leniency-clustering a large number of employees around a high point on a rating scale. The forced distribution method seeks to overcome the problems by compelling the rater to distribute the rates on all points on the rating scale. For example, the following distribution might be assumed to exist – Excellent 10%, Good 20%, Average 40%, Below Average 20% and Unsatisfactory 10% e)
Critical Incidents Method
This approach focuses on certain critical behaviors of an employee that makes all the difference between effective and non-effective performance of a job. Such incidents are recorded by the superiors as and when they occur. f)
Field Review Method
This is an appraisal by someone outside the assesee’s own department usually some one from the corporate office or the HR department. The outsider reviews employee records and holds interview with the ratee and his/her superior. The method is primarily used for make promotional decision at the managerial level. This method is also useful when comparable information is needed from employee in different units or locations.
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g)
Cost Accounting Method
This method evaluates performance from the monetary returns the employee yields to his or her organization. A relationship is established between the cost include in keeping the employee and the benefit the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit. h)
Comparative Evaluation Approaches
This method is a collection of different methods that compare one worker’s performance with that of his/her co-workers. The usual comparative forms used in this kind of evaluation are the Ranking method and the Paired Comparison Method. i.
Ranking Method
In this, the superior ranks his / her subordinates in the order of their merits, starting from the best to the worst. Ranking can be given duly form A+, A, B+, B……and so on. ii.
Paired – Comparison Method
Under this method, the appraiser compares each employee with every other employee, one at a time. For example, there are five employees name A, B, C, D, and E, the performance of A is first compared with the performance of B and a decision is made about whose performance is better. Then A is compared with C, D, and E. The same procedure is repeated for other employees.
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The number of comparisons may be calculated with the help of formula which is as under N(N-1)/2 Where, N= the number of employees to be compared. After the comparison, the result can be tabulated and a rank is created from the number of times each person is considered to be Superior.
2) Future – Oriented Appraisals a)
Management By Objectives (MBO) Method Peter F. Drucker was the first who gave the concept of MBO to the world way in 1954
when his The Practice Of Management was first published. According to Prof. Reddin, “BO is the establishment of effectiveness areas and effectiveness standards for the managerial positions and the periodic conversions of these into measurable time bound objectives linked vertically and horizontally and with future planning”. MBO helps and increases employee motivation but it relates over all goals to the individual’s goals and helps to increase an employee’s understand of where the organization is and where it is heading. MBO results in a “means ends” chain. Management at succeedingly lower level in the organizations establishes targets which are integrated with those at the next higher level. Thus, it can insure that everyone’s activity is ultimately aimed towards organization’s goals. MBO identifies performance deficiencies and enables the management and the employees to set individualized self-improvement goals and thus proves effective Training and Development programme.
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b)
Psychological Appraisals
Large organizations employ full-time industrial psychologists. When psychologists are used for evaluations, they assess an individual’s future potential and not the past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations. The psychologist then writes an evaluation of the employee’s intellectual, emotional motivational and other workrelated characteristics that suggest individual potential and may predict future performance. c)
Assessment Centres
This method is mainly used for executive hiring. Assessment centres are now being used for evaluating executive or supervisory potential. An assessment centre is a central location where managers may come together to have their participation in job-related exercises evaluated by trained observers. The principle idea is to evaluate managers over a period of time, by observing their behavior across a series of selected exercises or work samples. Assesses are requested to participate in in-basket exercises, work groups (without leaders), computer simulations, role playing, and other similar activities which requires the same attributes for successful performance, as in the actual job. After recording their observations of rate behaviors, the raters meet to discuss these observations. Finally a decision is generated based on the discussion made.
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THE APPRAISAL INTERVIEW The post appraisal interview has been considered by most of the organizations, as well as employees, as the most essential part of appraisal system. This interview provides the employee the feedback information, and an, opportunity to the appraiser to explain the employee his rating, the traits and behavior he has taken into consideration for appraisal. It helps both the parties to review standards, set new standards based on the reality factors, and helps the appraiser to offer his suggestions, help, guide and coach the employee for his advancement.
OBJECTIVES OF APPRAISAL INTERVIEW 1)
to let employee know where they stand
2)
to help employees do a better job by clarifying what is expected of them
3)
to plan opportunities for development and growth
4)
to strengthen the superior-subordinate working relationship by developing a mutual agreement of goals
5)
to provide an opportunity for employees to express themselves on performance related issues
Guidelines for effective Appraisal Interview
select a good time
inform to all employee a few days before the interview
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minimize interruptions
welcome, set at ease
start with something positive
Ask open-ended questions to encourage discussion
Listen
Manage eye contact and body language
Be specific
Rate behavior, not personality
Layout development plan
Discuss the future as well as the past
Encourage subordinate participation
Try to make constructive discussion always
Always make the discussion on the right track
Complete form
Set mutual agreeable goals for improvement
End in a positive , encouraging note
Set time for any follow-up meetings
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PROBLEMS OF PERFORMANCE APPRAISAL The major problems in Performance Appraisal are :Rating Biases
The problem subjective measure (is that rating is not verifiable by others) has the opportunity for bias. The rater biases include :i)
Halo Effect
It is the tendency of the raters to defend excessively on the rating of one trait or behavioral consideration in rating all other traits or behavioral considerations. ii)
The Error Central Tendency
Some raters follow play safe policy in rating by rating all the employees around the middle point of the rating scale and they avoid rating the people at both the extremes of the scale. They follow play safe policy because of answerability to management or lack of knowledge about the job and person he is rating or least interest in his job. iii)
Leniency & Strictness
The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently. Such ratings do not serve any purpose. Equally damaging one is assigning consistently low rates.
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iv)
Recency Effect
The raters generally remember the recent actions of the employee at the time of rating and rate on the basis of these recent action – favorable or unfavorable - rather than on the whole activities. 2)
Failure of the superior in conducting Performance Appraisal and
Post
Performance Appraisal interviews. Less reliability
and
validity
of the Performance Appraisal
Techniques. 4)
Negative rating affect Interpersonal Relations and Industrial Relation System
5)
Influence of external environmental factors and uncontrollable internal factors
6)
Some ratings particularly about the potential appraisal are purely based on guesswork
7)
Supervisors may get confused due to many objectives of Performance Appraisal
8)
Management emphasizes on punishment rather than development of an employee in Performance Appraisal.
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COMPETITIVE ADVANTAGES OF PERFORMANCE APPRAISAL Improving Performance
An effective appraisal system can contribute to competitive advantage by improving employee job performance in two ways – by directing employee behavior towards organizational goals, and by monitoring that behavior to ensure that the goals aremet. Making Correct Decisions
Appraisal is a critical input in making decisions on such issues as pay raise, promotion, transfer, training etcs Ensuring Legal Compliance
Promotions made on factors other than performance might land up a firm in a legal battle. Minimizing Job Dissatisfaction & Turnover
Appraisal minimizes the frustration, dissatisfaction resulting increase in the turnover among theemployees by generating a strong feeling of motivation. Consistency between organizational strategy & behavior
Performance Appraisal system is an important organizational mechanism to elicit feedback on the consistency of the strategy-behavior link.
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360° PERFORMANCE APPRAISAL METHOD The Performance Appraisal method, in which multiple raters are involved in evaluating performance, is called 360-degree appraisal. The 360-degree technique is understood as systematic collection of performance data on an individual or group, derived from a number of stakeholders- the stakeholders being the immediate supervisors, team members, customers, peers, and self. The appraiser should be capable of determining what is important and what is relatively less important. He should prepare reports and make judgements without bias. Supervisors
Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head or Manager. Peers
Peer appraisal may be reliable if the work group is stable over a reasonably long period of time and performs tasks that require interaction. Peer Consider the following factors while appraising :
Delegation of authority
Team Spirit
Motivation Subordinates
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The concept of having rated by subordinates is being used in most organizations today, especially in developed countries. Such a novel method can be useful in other organizational settings too provided the relationships between superiors and subordinates are cordial. Self
If individual understand the objectives they are expected to achieve and the standards by which they are to be evaluated, they are to a great extent in best position to appraise their own performance. Customers
Employee performance in every service organizations relating to behaviors, promptness, speed in doing the job and accuracy, can better be judged by the customers or users of services. Consultants
Sometimes consultants may be engaged for the appraisal when employees or employers do not trust supervisor for appraisal and management does not trust the self-appraisal or peer appraisal or subordinate appraisal.
360 degree appraisal form design - template guidelines Job descriptions are also a useful starting point for (but by no means the full extent of) establishing feedback criteria, as are customer/staff survey findings in which expectations/needs/priorities of appraisee performance are indicated or implied. A 360 degree appraisal template typically contains these column headings or fields, also shown in the template example below:
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•
Key skill/capability type (eg communications, planning, reporting, creativity and problem solving, etc - whatever the relevant key skills and capabilities are for the role in question).
•
Skill component/element (eg 'active listening and understanding' [within a 'communications' key skill], or 'generates ideas/options' [within a 'creativity/problem solving' key skill]). The number of elements per key skill varies - for some key skills there could be just one element; for others there could be five or six, which I'd recommend be the maximum. Break down the key skill if there are more than six elements - big lists and groups are less easy to work with.
•
question number (purely for reference and ease of analysis)
•
specific feedback question (relating to skill component, eg does the person take care to listen and understand properly when you/others are speaking to him/her? [for the active listening skill])
•
tick-box or grade box (ideally a,b,c,d or excellent, good, not good, poor, or rate out of 5 or 10 - N.B. clarification and definitions of ratings system to participants and respondents is crucial, especially if analysing or comparing results within a group, when obviously consistency of interpretation of scoring is important)
360 degree feedback form template example A typical 360 degree feedback form template would look like this. This template allows a mixture of key skills comprising one, two, three, four, and up to six elements. The number of elements per key skill/capability would vary of course, so if necessary adjust the size of the boxes in the first column accordingly to accommodate more or less elements. See the notes directly above for more explanation about the purpose of each column and heading, and the feedback scoring method.
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Feedback Form headings and instructions: appraisee name, da feedback respondent name, position (if applicable) plus l I instructions and guidelines for completion, etc.
key area
skill/capability Sk skill/capability question element n number q 1 2 3 4 5 6 7 8 9
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feedback feedback question score
Chapter 4 DATA ANALYSIS
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DATA ANALYSIS 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 Varun 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 Varun Beverages Lt.
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.
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ANALYSIS BASED ON QUESTIONNAIRE ( WORKERS & STAFFS)
Q1) Are you aware of the Performance Appraisal (PA) Method followed in Varun Beverages Ltd.?
Y Yes
No N
NO. OF RESPONSE
RESPONDANT
PECENTAGE
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
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Q2) Are you satisfied with the existing P.A. Method followed in the Company?
H Highly
Moderate M
RESPONSE
N Not at all
NO. OF
PERCENTAGE
RESPONDENT HIGHLY
11
28%
MODERATE
19
47%
NOT AT ALL
10
25%
TOTAL
40
100%
HIGHLY MODERA 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?
75
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 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.
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Q4) Are you satisfied with the increment in your Salary?
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 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.
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Q5) Did Varun Beverages Ltd. provide any training at beginning of your joining?
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 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.
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Q6) Is proper action taken after the fulfillment of the PA Forms?
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 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
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Q7) Is the PA exercise strictly followed or is just a formality?
Strictly followed
Moderate M
F Formality
RESPONSE
NO. OF
PERCENTAGE
Strictly Followed
RESPONDENT 08
12%
Moderate
20
50%
Formality
12
30%
TOTAL
40
100%
Strictly Followed 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.
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Q8) Are you satisfied from the Feedback you get from your Supervisors?
Completely
Moderate M
N Not at all
RESPONSE
NO. OF
PERCENTAGE
Completely
RESPONDENT 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
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Q9) If the existing PA Method be changed? Would you readily accept the change?
Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 29
72%
No
11
28%
Total
40
100%
YES NO
Inference
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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 ?
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 28
70%
No
12
30%
Total
40
100%
YES NO
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Inference
About 70% of the employees feel that there are biases in the Performance
ANALYSIS BASED ON QUESTIONNAIRE (MANAGERS)
Q1) Are you aware of the Performance Appraisal (PA) Method followed in Varun Beverages Ltd.?
Y Yes
No N
NO. OF RESPONSE
RESPONDANT
PECENTAGE
Yes
35
87%
No
05
13%
TOTAL
40
100%
84
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
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%
85
Chair Person
18
45%
Total
40
100%
Self Peers Subordinates Unit Manager Supervisors Chair Person
Inference
This shows that the Managers are Appraised mostly by the Unit Managers & the Chair Person Q3) Is PA at Managerial level seriously undertaken? Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 07
18%
No
33
82%
Total
40
100%
86
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?
H Highly
Moderate M
N Not at all
RESPONSE
NO. OF
PERCENTAGE
HIGHLY
RESPONDENT 11
28%
MODERATE
19
47%
NOT AT ALL
10
25%
87
TOTAL
40
100%
HIGHLY MODERA 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?
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 33
82%
No
07
18%
88
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 To some extent Not at all
RESPONSE
NO. OF
PERCENTAGE
Always
RESPONDENT 18
44
To a great
10
25
89
Extent To some
07
18
extent 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?
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
Yes
RESPONDENT 28
70%
No
12
30%
90
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)?
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
RESPONDENT
91
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 Varun Beverages Ltd. organized any Training Programmes for its Managers or Department Heads etcs?.
Y Yes
No N
RESPONSE
NO. OF
PERCENTAGE
RESPONDENT
92
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?
Highly
Moderate
Not N at all
93
RESPONSE
NO. OF
PERCENTAGE
HIGHLY
RESPONDENT 11
28%
MODERATE
19
47%
NOT AT ALL
10
25%
TOTAL
40
100%
HIGHLY MODERA 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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FINDINGS AND RECOMMENDATIONS
95
RECOMMENDATIONS
•
Certain recommendations can be made after interviewing various employees at different levels with the help of my data sheet.
Some recommendations are as follows :-
•
Good performer should not only be rewarded by promotion etc.,but also by appreciation of their performance in public
•
Worker’s opinion regarding their job should be given more priority. The work related benefits like overtime, production incentives expenses should be provided to the employees
•
There should be proper utilization of existing manpower
•
Employees should be given recognition at proper intervals.
•
Suggestions from the employees should be welcomed with open arms and if found suitable should be implemented
•
More opportunities should be given to the employees regarding, T&D, MDPs, participation in decision makings etcs.
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CONCLUSION After analysis of the data collected and compiled we can say that, VBL 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.
If the organization does so, one can say for sure that the company will have a brighter future.
97
ANNEXURE
98
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:-
W W1
S1 S
W W2
S2 S
W W3
S3 S
Current Salary ( in Rs):-…………………….
Experiences( in Years) :-………….................
First Promotion
:-…………………….
Salary (Before 1st Promotion):-……………..
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1)
Are you aware of the Performance Appraisal (PA) Method followed in Varun Beverages Ltd.? Y Yes
2)
No N
Are you satisfied with the existing P.A. Method followed in the Company? H Highly
3)
Moderate M
Are there Biases in the existing P.A. Method? Y Yes
4)
No N
Are you satisfied with the increment in your Salary? Y Yes
5)
No N
Did Varun Beverages Ltd. provide any training at beginning of your joining? Y Yes
6)
No N
Is proper Training given /recommended in PA Forms? Y Yes
7)
No N
Is proper action taken after the fulfillment of the PA Forms? Y Yes
8)
No N
Is the PA exercise strictly followed or is just a formality? Strictly followed S
9)
N Not at all
Moderate M
F Formality
Are you satisfied from the Feedback you get from your Supervisors? Completely
Moderate M
N Not at all
10) After filling PA Forms, are the results discussed between the Seniors & Subordinates ?
100
Y Yes
No N 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:-
M M1
M M6
M M2
M M7
M M3
M M8
M M4
M M9
M M5
M M10
Current Salary ( in Rs):-………………….
Experiences( in Years) :-………….............
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First Promotion
:-………………….
Salary (Before 1st Promotion):-…………..
Are you aware of the Performance Appraisal (PA) method followed in Varun Beverages Ltd.? Y Yes
No N
How frequently is PA done ? Monthly Quarterly S Semi-Annually Annually
Who Appraises the Leaders /Heads/Managers? Self Supervisors Peers S Sub-ordinates
Is PA at Managerial level seriously undertaken? Y Yes
No N
Are you satisfied with the existing P.A. Method followed in the Company? H Highly
Moderate M
Are you satisfied with the increment in your Salary? Y Yes
No N
Does the Appraisal System of the company motivates you? Always
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N Not at all
To a great extent T To some extent Not at all N Are there Biases in the existing P.A. Method? Y Yes
No N
Which PA Method would you alternatively suggest for the existing one? …………………………………………………………………………… ……………………………………………………
Suggestions (if any):-………
…………………………………………………..................................... ………………………………………………………………………………. ………………………………………………………………………………..
103
REFERENCES
104
