PROJECT REPORT
Project Title
PERFORMANCE APPRAISAL SYSTEM & ITS EFFECTIVENESS IN AN ORGANIZATION REPORT SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE
POST GRADUA GRADUATE TE DIPLOMA IN MANAGEMENT (APPROVED BY AICTE)
(2007-2009)
SUBMITTED TO
SUBMITTED BY
Mahendra Asati
INJ BUSINESS SCHOOL GREATER NOIDA CERTIFICATE
This is to certify that__________________ , _______________ Prasad is a bonafied student of two year regular course of PGDM(post graduation diploma in management) management) in our institute. The project titled "Study of Performance appraisal in an organization and it's effectiveness " is her original work.
The student bears a good moral character.
Faculty (HR Department)
ACKNOWLEDGEMENT
My sincere thanks to faculty supervisor __________________ and agency supervi supervisor sor ________ ____________ _______ _______ ______ __ under under whose whose able able guidan guidance ce and kind kind coop cooper erat atio ion n I was was able able to comp comple lete te the the proj projec ectt work work titl titled ed "St "Study udy of Performance Appraisal System and its Effectiveness in an Organisation" Organisation" .
All those employ employees ees of Dabur Dabur India India Ltd deserve deserve specia speciall thanks thanks for their their cooperation and help in the collection of necessary and relevant material for this work. Also, I do thank and remember my friends for their effort and helping hand. Every effort has been made to enhance the quality of work. However, I owe the sole responsibility of the shortcoming, if any, in the study.
_______________________
CONTENTS
Page Nos.
Chapter 1:
Introduction
Chapter 2:
Objective and Methodology Methodology of the Study
Chapter 3:
Oraganisation Profile
Chapter 4:
Performance Appraisal- Theoretical Theoretical Review
Chapter 5:
Performance Appraisal System in
Dabur India Ltd. Chapter 6:
Analysis and Interpretation Interpretat ion of Data
Chapter 7:
Conclusion and Suggestions
ANNEXURES
CHAPTER 1 INTRODUCTION
CHAPTER 1 TITLE OF THE PROJECT:
Study of Performance Performance Appraisal Appraisal System and Its Effectiveness Effectiveness in an Organization
INTRODUCTION
The history of performance appraisal appraisal is quite brief.
Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War -not more than 60 years ago. Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things historical, it might well lay claim to being the world's second oldest profession! There is, says Dulewicz (1989), "... a basic human tendency to make judgments about those one is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of appr apprai aisa sal, l, peopl peoplee will will tend tend to judg judgee the the work work perfo perform rman ance ce of othe others rs,, including subordinates, sub ordinates, naturally, informally and arbitrarily. arbitrarily.
The human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Perf Perfor orma manc ncee appr apprai aisa sall syst system emss bega began n as simp simple le meth method odss of inco income me justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The The proc proces esss was was firm firmly ly linke linked d to mate materi rial al outco outcome mes. s. If an empl employ oyee ee's 's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These These observa observatio tions ns were were confir confirmed med in empiri empirical cal studie studies. s. Pay rates rates were were important, yes; but they were not the only element that had an impact on
employee performance. It was found that other issues, such as morale and selfesteem, could also have a major influence. As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time. Modern Appraisal
Perfor Performan mance ce apprai appraisal sal may be define defined d as a struct structure ured d formal formal intera interacti ction on between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations -but not all -appraisal results are used, either directly or indirectly, indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.)
Whether Whether this is an appropriate appropriate use of performance performance appraisal appraisal -the assignment assignment and justification of rewards and penalties -is a very uncertain and contentious matter. Controversy, Controversy
Few Few issue issuess in mana manage geme ment nt stir stir up more more cont contro rove vers rsy y than than perfo perform rman ance ce appraisal. There are many reputable sources -researchers, management commentators, psy psych chom omet etri rici cian anss -who -who have have expr expres esse sed d doubt doubtss abou aboutt the the vali validi dity ty and and reliability of the performance appraisal process. Some have even suggested that the process is so inherently flawed that it may be impossible to perfect it (see Derven, 1990, for example). At the other extreme, there are many strong advocates of performance appraisal. Some view it as potentially "... the most crucial aspect of organizational life" (Lawrie, 1990). Between these two extremes lie various schools of belief. While all endorse the use of performance appraisal, there are many different opinions on how and when to apply it, There are those, for instance, who believe that performance appraisal has many important employee development uses, but scorn any attempt to link the process to reward outcomes -such as pay rises and promotions. This group bel belie ieve vess that that the the linka linkage ge to rewa reward rd outc outcom omes es redu reduce cess or elim elimin inat ates es the the deve develo lopm pmen enta tall valu valuee of appr apprai aisa sals ls.. Rath Rather er than than an oppo opport rtun unit ity y for for cons constr truc ucti tive ve revi review ew and and enco encour urag agem emen ent, t, the the rewa reward rd-- link linked ed proc proces esss is
perceived as judgmental, punitive and harrowing. For example, how many people would gladly admit their work problems if, at the same time, they knew that their next pay rise or a much-wanted promotion was riding on an appraisal result? Very likely, in that situation, many people would deny or downplay their weaknesses.
Nor is the desire to distort or deny the truth confined to the person being appraised. Many appraisers feel uncomfortable with the combined role of judge and executioner. executioner. Such reluctance is not difficult to understand. Appraisers often know their appr apprai aise sess well well,, and and are are typi typica call lly y in a dire direct ct subo subord rdin inat atee-su supe perv rvis isor or relationship. They work together on a daily basis and may, at times, mix socially. Suggesting that a subordinate needs to brush up on certain work skills is one thing; giving an appraisal result that has the direct effect of negating a promotion is another. The The resu result lt can can be rese resent ntme ment nt and and seri seriou ouss mora morale le dama damage ge,, leadi eading ng to workplace disruption, soured relationships and productivity declines.
On the the othe otherr hand hand,, ther theree is a stro strong ng riva rivall argu argume ment nt whic which h clai claims ms that that performance appraisal must unequivocally be linked to reward outcomes. The advocates of this approach say that organizations must have a process by which rewards -which are not an unlimited resource -may be openly and fairly distributed to those most deserving on the basis of merit, effort and results.
There is a critical need for remunerative justice in organizations. Performance appraisal -whatever its practical flaws -is the only process available to help achieve fair, decent and consistent reward outcomes. It has also been claimed that appraises themselves are inclined to believe that appraisal results should be linked directly to reward outcomes -and are suspicious and disappointed when told this is not the case. Rather than feeling relieved; appraises may suspect that they are not being told the whole truth, or that the appraisal process is a sham and waste of time. The Link to Rewards
Recent Recent research research (Bannister (Bannister & Balkin, Balkin, 1990) has reported that appraises appraises seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other. other. There is also a group who argues that the evaluation of employees for reward purposes, and frank communication with them about their performance, are part of the basic responsibilities of management. The practice of not discussing reward issues while appraising per perfo form rman ance ce is, is, say say crit critic ics, s, base based d on inco inconsi nsist sten entt and and muddl muddled ed idea ideass of motivation. In many organizations, this inconsistency is aggravated by the practice of having separate wage and salary reviews, in which merit rises and bonuses are decided arbitrarily, arbitrarily, and often secretly, secretly, by supervisors and managers.
There are basically three purposes to which performance appraisal can be put. First, it can be used as a basis for reward allocation. Decision as to who gets sala salary ry incr increa ease se,, prom promot otio ion, n, and and othe otherr rewa reward rdss are are dete determ rmin ined ed by thei their r performance evaluation. Second, these appraisals can be used for identifying areas where development efforts are needed. The performance appraisal is a major tool for identifying deficiencies in individuals. Finally it can be used as a criterion against which selection devices and development programs are validated. As a key input into management's reward and punishment decision, performance appraisals can motivate or de-motivate employees. Three different approaches exist for doing appraisals. Employees can be appraised against
1.
Absolute Absolute standards standards
2.
Relative standards
3.
Objectives
PERFORMANCE MANAGEMENT
Since organizations exits to achieve goals, the degree of success that individual employees have in reaching their individual goals is important in determining organization effectiveness. Performance system is fundamentally, a feed back process, which require sustained commitment. The cost of failure to provide such feedback may result in a loss of key professional employees, the continued poor performance of empl employ oyee eess who who are are not not meet meetin ing g perf perfor orma manc ncee stan standa dard rdss and and a loss loss of commitment by employees, in sum, the myth that the employee know what. they they are are doing doing with without out adeq adequa uate te feed feedba back ck from from mana manage geme ment nt can can be an expensive fantasy. fantasy.
THE APPRAISAL PROCESS
1.
Establishing Performance Standard
2.
Communicate Performance expectations to employees
3.
Measure actual performance
4.
Compare actual performance with standards
5.
Discussion with the employees and identification development programs to bridge the gap.
6.
Initiate action
THE PURPOSE OF APPRAISING PERFORMANCE
In general the appraisal systems serve a two fold purpose 1.
To improve the work performance of employees by helping them realize and use their full potential in carrying out their firms mission.
2.
To provide information to employees and managers for managers for use use in making , work related decisions.
More specifically appraisals serve the following purposes. a)
Appraisals provide feedback to employees and help the. "' management identify the areas where development efforts are "' needed to bridge the gaps thereby serving as vehicles for vehicles for personal personal " and career development.
b)
It helps management management spot individual individualss who who have have specific specific skills skills so so that that their promotions/transfer are in line with organizational requirements.
c)
Appraisal Appraisal serve as a key input for administering a formal organisation reward and punishment system.
d)
The The perfo perform rman ance ce syst system em can can be used as a crite criteri rion on again against st which which selection devices and development programs are validated.
REQ EQU UIREM IREME ENT
OF
THE
PER PERFORM ORMANCE
MANAGE GEM MENT
SYSTEM.
Reliability: The foremost requirement of a sound system is reliability. In this cont contac actt it refe refers rs to consi consist sten ency cy of judgm judgmen ent. t. For For any any give given n empl employ oyee ee,, appraisals made by raters working independently of one another should agree clos closel ely y. But But rate raters rs with with diff differ eren entt pers perspe pect ctiv ivee (e.g (e.g.. supe superv rvis isor ors, s, peer peers, s, subordinates) may see the same individuals job performance very differently. To provide reliable data, each rater must have an adequate opportunity to observe what the employee has done and the condition under which he or she has done it. By making appraisal system relevant, sensitive and reliable we assume the resulting judgment are valid as well.
Acceptability: In practice, acceptability is the most important requirement of all, for it is true that human resources program must have the support of. those who will use them. Unfortunately, many organizations do not put much effort into garnering the front end support and participation of those who will use the apprai appraisal sal system system.. Ultima Ultimatel tely y it is manage managemen ment's t's respon responsib sibili ility ty to define as clearly as possible the type and level of job behaviour desired of employees.
It is important to enlist the active support and cooperation of subordinates by making explicit what aspects of job performance they will be evaluated on.
Practicality: Practicality: This implies that appraisal instruments are easy for managers and employees to understand and to use.
For years, years, personn personnel el specia specialis lists ts have have search searched ed for the 'Perfe 'Perfect; ct; apprai appraisal sal method as if it were some kind of miraculous cure for many pitfalls that plague organizations. Such a method does not exist. In tomorrow’s world of work far more emphasis needs to be placed on process issues. Factors such as timing and frequency are no less important. In sum performance appraisal is a dialogue involving people and data. Both technical and human issues are involved. Neither can be overemphasized at the expense of the other.
WHO SHOULD SH OULD EV E VALUATE ALUATE PERFORMANCE?
The most fundamental requirement for any rater is that he or she has an . adequate opportunity to observe the rates job performance over a reasonable period of time. This suggest several possible pos sible raters.
The immediate immediate supervisor: Generally Generally appraisal appraisal is done by this person. He is probably the most familiar with the individual's performance and in most jobs has had the best opportunity to observe actual job performance. Further more, the immedi immediate ate supervi supervisor sor is probabl probably y best best able able to relate relate the indivi individual dual's 's performing to department and organizational objectives.
In some some jobs jobs such such as outsid outsidee sales, sales, law law enforc enforceme ement nt and teachi teaching, ng, the immediate supervisor may observe a subordinate's actual job performance
rarely (and indirectly thru written reports). Here judgment of peers play important role. However, there is a danger of potential bias.
Subordinates: Appraisal by subordinates can be useful input to the immediate development. Subordinates know first hand the extent to which the supervisor actually delegates, how well he communicates, the type of leadership he has and the extent to which he or she plans and orgasms. Self appraisal: On one hand it improves the rate's motivation and moral, on the other it tends to be more lenient, less variable and biased. The evidence on the accuracy of self assessment is fairly complex.
In industry it is seen that feed back/ input is taken from various sources -Peers, subordinates, superiors etc. Some companies have gone step ahead in taking feed feedba back ck from from the the cust custom omer erss and and inte integr grat atin ing g it into into the the perf perfor orma manc ncee management process.
APPROACHES TO PERFORMANCE MANAGEMENT
The traditional approach: The one dimensional model
The Job
Define what results have to e achieved
Performance contact
Define a set of key objectives against the accountabilities Accountabilities i.e, output Review performance against the key objectives
In this model job expectations are defined in terms of what results have to be achieved. This model doesn't have a long term focus and can't be used for employee development and career path planning,
A satisfactory performance implies doing a job effectively and efficiently, with a mini minimu mum m degr degree ee of empl employ oyee ee -cre -creat ated ed disr disrup upti tion ons. s. Empl Employ oyee eess are are performing well when they are productive. Yet productivity itself implies both conc concer ern n for for effe effect ctiv iven eness ess and and effi effici cien ency cy.. Effe Effect ctiv iven eness ess refe refers rs to goal goal accomplishment. Efficiency evaluates the ratio of inputs consumed to outputs achie achieved ved.. The greater greater the output output for a given given input, input, the more more effic efficien ientt the employees. Similarly, Similarly, if output is a given, consumed to get that output results in greater efficiency.
There are basically three purposes to which performance appraisal can be put. First, it can be used as a basis for reward allocations. Decisions as to who gets sala salary ry incr increa ease ses, s, prom promot otio ions, ns, and and othe otherr rewa reward rdss are are dete determ rmin ined ed by thei their r performance evaluation. Second, these appraisals can be used for identifying areas where development development efforts efforts are needed. needed. Management Management needs to spot those individuals who have specific skill or knowledge deficiencies. The performance appr apprai aisa sall is a majo majorr tool tool for for iden identi tify fyin ing g thes thesee defi defici cien enci cies es.. Fina Finall lly y, the the perfo performa rmance nce apprai appraisal sal can be used used as a criter criterion ion agains againstt which which select selection ion devices and development programs are validated.
Chapter 2 OBJECTIVE & METHODOLOGY
Chapter 2
OBJECTIVE & METHODOLOGY
1. Objective of the study
This This projec projectt aims aims at studyi studying ng the syste system m of perfor performan mance ce apprai appraisal sal and its its effectiveness in an organization. Performance appraisal is the most significant and indispensable tool for the management as it provide useful information for decision making in area of promotion and compensation reviews.
Thus broad objectives of the study includes:
2.
•
To know the present system s ystem of performance appraisal
•
To know the extent of effectiveness of the appraisal system
•
To identify and know the area for improvement system
Sample of the study
The population covered for the present study consisted of employee belonging to supervisory and the level above. For the purpose of this study, survey covered the employee of DABUR INDIA LTD. falling under supervisor and the level above. The study covered a sample of 100 employee belonging to supervisory level and above.
3.
Methodology Methodology of the project
The The proj projec ectt wor work has has been been carr carriied out out in three hree sta stages, ges, a stru struct ctur ured ed questi questionna onnaire ire with with object objective ive and questio question n was commun communic icate ated d tested tested and finalize. During the second stage, the questionnaire was administered to the employees at Dabur India Ltd. by contacting them. The work relating to data entry compilation, data analysis and report writing constituted the third stage. Interview index was also used at some places to get information on the project subject.
The details of the methodology adopted are presented below:
The Questionnaire
Keeping in view the objective of the study, questionnaire was designed and tested on few employees. After getting the proper response and sanction from the concerned department the questionnaire was finalized. Response to Questionnaire Questionnaire
In all 96 questionnaire were given to employees falling in the category of supe superv rvis isor orss and and abov above. e. Out Out of whi which 48 coul could d be coll collec ecte ted d back back duly duly comp comple lete ted. d. The The rese resear arch cher er indi indivi vidua duall lly y cont contac acte ted d the the empl employ oyee eess to get get response on the questionnaire.
Data entry and analysis
It has been an uphill task to enter the enormous data received through the questionnaire which consisted nearly 20 questions. Response to the descriptive
questions though very few but was valuable for the purpose of study. Hence these were further structured in time with the system adopted for compilation and data analysis. Limitations
Many employees gave guarded answers to some crucial questions. Some of them did not fill the questionnaire due to lack of time Response could not be collected from the total sample selected. Some of the questionnaire could not be completed due to reasons other than time factor. The confidentiality of the system created some problem in g etting information.
Chapter 3 ORGANISATION PROFILE
Chapter 3 ORGANISATION PROFILE . History
The story of Dabur goes back to 1884, to a young doctor armed with a degree in medicine and a burning desire to serve mankind. This young man, Dr. S. K. Burman, laid the foundations of what is today known as Dabur India Limited. From those humble beginnings, the company has grown into India's leading manufacturer of consumer healthcare, personal care and food products. This phenomenal progress has seen many milestones, some of which are mentioned below:
•
1884 -Dr. S K Burman lays the foundation of what is today known as
Dabur India Limited. Starting from a small shop in Calcutta, he began a direct mailing system to send his medicines to even the smallest of villages in Bengal. The brand name Dabur is derived from the words 'Da' for Daktar or Daktar or doctor and 'bur' from Burman.
•
1896 -As the demand for Dabur products grows Dr. Burman feels the
need for mass production of some of his medicines. He sets up a small manufacturing plant at Garhia near Calcutta.
•
-The next next genera generatio tion n of Burman Burmanss take take a consci conscious ous Early Early 1900s 1900s -The decision to enter the Ayurvedic medicines market, as they believe that it is only through Ayurveda that the healthcare needs of poor
Indians can be met.
•
1919 -The search for processes to suit mass production of Ayurvedic
medicines without compromising on basic Ayurvedic Ayurvedic principles leads to the setting up of the first Research & Development laboratory at Dabur. This initiates a painstaking study of Ayurvedic medicines as mentioned in age-old scriptures, their manufacturing processes and how to utilize modern equipment to manufacture these medicines without reducing the efficacy of these drugs.
•
Ayurvedic Medicines is set up at 19208 -A manufacturing facility for Ayurvedic Narendrapur and Daburgram. Dabur expands its distribution network to Bihar and the northeast.
•
1936 -Dabur India (Dr. S K Burman) Pvt. Ltd. is incorporated.
•
diversifies into personal personal care products products with the launch launch 1940 -Dabur diversifies of its Dabur Amla Hair Oil. This perfumed heavy hair oil catches the imagination of the common man and film stars alike and becomes the largest hair oil brand in India.
•
1949 -Dabur Chyawanprash is launched in a tin pack and becomes
the first branded Chyawanprash of India.
•
1956 -Dabur buys its first computer. Accounts and stock keeping are
one of first operations to be b e computerized.
•
1970 -Dabur expands its personal care portfolio by adding oral care
pro produc ducts ts.. Dabu Daburr Lal Lal Dant Dant Manj Manjan an is laun launch ched ed and and capt captur ures es the the Indian rural market.
•
1972 -Dabur shifts base to Delhi from Calcutta. Starts production
from a hired manufacturing facility at Faridabad.
•
1978 -Dabur launches the Hajmola tablet. This is the first time that a
classical Ayurvedic Ayurvedic medicine is branded -from Shudhabardhak bati to Hajmola tablet.
•
-The Dabur Dabur Resear Research ch Foundat Foundation ion (DRF), (DRF), an indepe independe ndent nt 1979 -The company, company, is set up to spearhead Dabur's multi-faceted research.
•
1979 Commercial production starts at Sahibabad. This is one of the
larg larges estt and and most most mode modern rn produ product ctio ion n faci facili liti ties es for for Ayurv yurved edic ic medicines in India at this time.
•
-The Dabur abur bran brand d turns urns 100 100 but but is young oung ~eno ~enoug ugh h to 1984 -The experiment with new offerings in the market.
•
-Dabur become becomess a public public limit limited ed compan company y through through revers reversee 1986 -Dabur merger merger with with Vidogum idogum Limite Limited, d, and is re-chr re-christ istene ened d Dabur Dabur India India Limited.
•
1989 -Hajmola Candy is launched and captures the imagination of
children and establishes a large market share.
•
enters into a joint venture venture with Agrolimen Agrolimen of Spain for 1992 -Dabur enters
manufacturing and marketing confectionery items such as bubble gums in India.
•
-Dabur ur sets sets up the the oncol oncolog ogy y form formul ulat atio ion n plan plantt at Badd Baddi, i, 1993 -Dab Himachal Pradesh.
•
1994 -Dabur India Limited comes out with its first public issue. The
Rs.10 share is issued at a premium of Rs.85 per share. The issue is oversubscribed 21 times.
•
-Dabur reorg reorgani anizes zes its its busine business ss with with sales sales and market marketing ing 1994 -Dabur operations being divided into 3 separate divisions.
•
-Dabur enters enters the oncolo oncology gy (anti(anti-can cancer cer)) market market with with the 1994 -Dabur laun launch ch of Inta Intaxe xell (Pac (Pacli lita taxe xel) l).. Dabur Dabur beco become mess only only the the seco second nd company in the world to launch this product. The Dabur Research Foundation develops the unique eco-friendly process of extracting the drug from the leaves of the Asian Yew Yew tree.
•
1995 -Dabur enters into a joint venture with Osem of Israel for food
and Bongrain of France for cheese and other dairy products.
•
1996 -Dabur launches Real Fruit Juice which heralds the company's
entry into the processed foods market.
•
division is created, created, comprising comprising of Real Fruit Juice 1997 -The Foods division and Hommade cooking pastes to form the core of this division's product portfolio.
•
1997 -Proje -Project ct STARS STARS (Striv (Strivee To Achiev Achievee Record Record Succes Successes ses)) is
initiated by the company to achieve accelerated growth in the coming years. The scope of this project is strategic, structural and operational changes to enable efficiencies and improve growth rates.
•
1998 -The Burman family hands over the reins of the company to
professionals. Mr. Ninu Khanna joins Dabur as the Chief Executive Officer. ..
•
1999-2000 -Dabur achieves the Rs.IOOO crore turnover mark
What is that life worth which cannot bring comfort to others", these words of Dr. S K Burman have inspired generations of Dabur. Keeping r" these golden words in mind, Sandesh or the Sustainable Development Society was set up to carry out welfare activities aimed at improving the A quality of life of the rural people in its area of operation. This society is given complete financial and managerial support by Dabur India Limited.
PRODUCTS AND SERVICES
A vast array of products touching the lives of almost every individual, from an infant to a grand old man, from poor to rich; that's how the Dabur's range of health health personal personal care and food products products could be best explained. explained. Today Today Dabur trust has traveled beyond the boundaries of India and is available in more than 50 countries worldwide. These value for money products have made Dabur a household name Healthcare is one of the biggest and oldest divisions of Dabur with a wide range of OTC healthcare products. It comprises of:
Ayurvedic Health Tonics Chyawanprash
The leader in the chyawanprash market in India, Dabur Chyawanprash is one of the most well known Ayurvedic products in India and abroad. An effective herbal immune modulator, Dabur Chyawanprash has the essential goodness 'of amla and over 50 other herbs. Dabur has conducted several clinical trials on this product, which confirm its efficacy as a unique product that strengthens the body from within.
Digestives Hajmola Tablets
Hajmola Tablets Tablets are the first classical Ayurvedic Ayurvedic products to be branded and positioned as fun-filled product with medicinal properties. It finds mention in Ayur Ayurved vedic ic script scripture uress as Kshudha Kshudhavar vardha dhak k Bati, Bati, and was brande branded d as
Hajmola, a name derived from Hajma which means digestion in Urdu. It is available in regular and tamarind flavour. flavour.
Hajmola Candy
To cash in on the brand equity enjoyed by Hajmola, Dabur launched Hajmola Candy in 1989. Since then, the company has added Mango and tamarind flavors besides the regular one.
Pudin Hara
One of the oldest products in Dabur portfolio, Pudin Hara is available in liquid as well as capsule form. It has a special combination of mint oils and cures gastric problems without any side effects. The company has added effervescent powder with goodness of Mint for gas and acidity and named it Pudin Hara G.
Hingoli
Asafoetida Asafoetida or Hing is mentioned mentioned in Ayurveda yurveda as an effectiv effectivee aid in digestion, digestion, and is used a lot in Indian cooking. Dabur's Hingoli has all the goodness of asafoetida and other herbs.
Childcare Products
Dabur Lal La l Tail Tail
The largest baby massage oil in India, it has the goodness of herbs which helps in strengthening the bones of infants. Dabur Janma Ghutti
This Ayurvedic Ayurvedic preparation helps in strengthening the digestive d igestive system of new borns.
Women Care Products
Efarelle Comfort A herbal medicine in self gel capsule form to help overcome abdominal pain during PMS. A combination of natural oils, this formulation gives immediate relief from pain without any side effects. The largest division in terms of sales, the Family Products Division of Dabur has in its portfolio hair care and skin care products, oral care and select foods like honey.
Hair & Skin Care
Dabur is the leader in hair care products in India, and has covered almost all the categories of hair oils.
Dabur Amla Hair Oil -As a brand has made its mark beyond India and is a leading hair oil brand in Middle East and Africa. A perfumed heavy hair oil, it is Dabur's largest brand.
Dabur Special Hair Oil -It is light hair oil that combines the natural hair care properties of lemon and hibiscus.
Vatika -The fastest growing hair oil brand of India, Vatika has single handedly created an altogether new category of herbal enriched natural oils. The Vatika range also includes an herbal shampoo, which has made its mark in the very first year of its launch in the competitive shampoo market of India. The company has recently launched Vatika Anti -Dandruff Shampoo having herbal ingredients to fight the problem of Dandruff
Gulabari -Rose water derived from best of Indian roses makes the skin supple and glowing.
Oral Care
Dabur Lal Dant Manjan -It is the second largest tooth powder brand of India and the largest in coloured tooth power category. This herbal tooth powder is very popular in rural parts of India. Binaca Toothbrushes -After having acquired this dormant brand a few years back, Dabur launched toothbrushes toothbrushes under this umbrella. umbrella. There are plans to launch other oral care products under the Binaca brand.
Dabur Honey
When When reposi repositi tioned oned in 1993, 1993, it totall totally y change changed d the percep percepti tion on of Indian Indian consumer. Honey, which was mainly used for its medicinal properties in India, is today competing for space on breakfast table. Ayurvedi yurvedicc Specia Specialt lties ies is a range range of over over 350 Ayur Ayurvedi vedicc Medici Medicines nes -both. -both. classical Ayurvedic drugs and proprietary Ayurvedic medicines - developed by Dabur's own research and development. Dabur has products for all the 16~ categories as defined in the Ayurveda. Some of the leading products in this category are: Asav Arishtas -These are medicated decoctions with a self-generated alcohol content. content. Dabur has a range of over 30 Asav Arishtas. Arishtas. Some of the well-known well-known ones ones includ includee Dashmu Dashmular larish ishta, ta, Draksha Drakshasava sava,, Lohasav Lohasava, a, Partha Parthadya dyaris rishta hta and Ashokarishta. Chumas -These are finely ground medicinal powders used to treat a variety of
ailments ranging from digestive problems to cough and fever. Ras Rasayans -Preparations containing mineral drugs as main ingredients are
called Ras Rasayans. Dabur has a range of more than 50 Ras Rasayans which are used by Ayurvedic Ayurvedic practitioners in the cure of host of ailments. Medicated Oils -The oils boiled alongwith certain prescribed drugs are known
as medicated oils. These oils retain the curative properties of herbs and is used for inunction and massage. Launched over two years back, the Dabur Foods
range include juices under the brand name Real and cooking pastes under the brand name Hommade. To give a better focus this division has been carved out as a subsidiary company of Dabur India Limited. Subsidiarie. Dabur Foods Limited -Dabur Foods Limited, a 100% subsidiary of Dabur India Limite Limited, d, is spearh spearhead eading ing Dabur' Dabur'ss foray foray into into food proces processin sing g indust industry ry.. The company, set up in April 1999, is marketing a range of fruit juices under the brand name Real, Hommade Cooking Paste and Sauces and Lemoneez lemon juice. Dabur was the first company in India to introduce fruit juices in packaged form without any artificial additive. Real is today the market leader in this category with more than 50% market share. Hommade cooking paste is the oply national brand in this category. Lemoneez is the only product in its category available in unique drop and trickle pack and uniquelPharmaceuticals Branded Pharmaceuticals Pharmaceuticals -It includes a range of natural ethical products like
New New Livf Livfiit, Honi Honitu tus, s, Ulge Ulgell etc. etc. and and a rang rangee of contr ontraast media dia and gynecological. Oncology -This wide and formidable range includes brands such as Intaxel,
Docetaxel and Topotecan, all of which were manufactured for the first time in India by Dabur. Little wonder then, that Dabur is the undisputed market leader in this category in India and has plans to establish itself as a generic oncology player in select global markets.
Bulk Drugs and Chemicals -This range consists primarily of bulks in the
oncology category. category.
Joint Ventures Dabon International Limited -Dabur has also collaborated with Bongrain
of France for the manufacture and marketing pf specialty cheese and other dairy products. This joint venture company has already made its presence felt in the Indian cheese market through the launch of processed cheese under the brand name LeBon, and a specialty cheese under the brand name Delicieux.
Subsidiaries
Dabur has six subsidiary units, which come under the umbrella of the Dabur India organization. These are:
Dabur Foods Limited -Dabur Foods Limited, a 100% subsidiary of Dabur
India Limited, is spearheading Dabur's foray into food processing industry. The company, set up in April 1999, is marketing a range of fruit juices under the brand name Real, Hommade Cooking Paste and Sauces and Lemoneez lemon juice. Dabur was the first company in India to introduce fruit juices in packaged form without any artificial additive. Real is today the market leader in this category category with more than 50% market market share. share. Hommade Hommade cooking paste is the only national brand in this category. category. Lemoneez is the only product prod uct in its categor category y availa available ble in unique unique drop and trickl tricklee pack pack and unique uniquely ly shaped shaped
tabletop pack. Dabur Nepal Private Limited -Dabur Nepal was the first manufacturing
base overseas for Dabur group. The company is today the leading exporter of Nepal and the third largest and most modern manufacturing base for Dabur. Dabu Daburr Nepa Nepall is toda today y invo involv lved ed in prom promot otin ing g cult cultiv ivat atio ion n of herb herbss and and apic apicul ultu ture re acti activi viti ties es in Nepa Nepal. l. The The comp compan any y has has set set up stat statee of the the art art greenhouse at Banepa for developing saplings for 20 medicinal plants. Dabur Nepal has also set up an Apiculture centre for promoting bee-keeping activity in Nepal and developing queen bees and bee colonies for exports. -Dabur Egypt Egypt is groups groups gatewa gateway y to Africa. Africa. This This Dabur Dabur Egypt Egypt Limited Limited -Dabur manufacturing base set up a couple of years back to c~ater to the demands of Middle East and African market is producing Hair Care, Skin Care Products and Foods.
Dabur Oncology PIc. -Set up recently in UK, this subsidiary of Dabur India
Limited will be manufacturing anti-cancer formulations for European market. The company is in the process of setting up manufacturing base near London and is expected to start operation from year 2001.
Dabur Finance Limited
Dabur has an illustrious Board of Directors who are committed to take the company onto newer levels of human endeavour in the service of mankind.
Chapter 4 PERFORMANCE APPRAISAL
Chapter 4 PERFORMANCE APPRAISAL
Since organisation exist to achieve goals, the degree of success that individual empl employ oyee eess have have in reac reachi hing ng thei theirr indi indivi vidu dual alss goal goalss is impo import rtan antt in determining organizational effectiveness. The assessment of how successful employees employees have been at meeting meeting their individual individual goals, therefore, therefore, becomes a critical part of HRM. This leads us to the topic of performance appraisal.
PURPOSE
There are basically three purposes to which performance appraisal can be put.
•
First, it can be used as a basis for reward allocations. Decisions as to who who gets gets sala salary ry jncr jncrea ease ses, s, prom promot otio ions ns,, and and othe otherr rewa reward rdss are are determined by their performance evaluation.
•
Seco Second nd,, thes thesee appr apprai aisa sals ls can can be used used for for iden identi tify fyin ing g area areass where where develo developme pment nt effort effortss are needed needed.. Manage Managemen mentt needs needs to spot those those indivi individual dualss who have have specif specific ic skill skill or knowle knowledge dge defici deficienc encies ies.. The per perfforma ormanc ncee appr apprai aisa sals ls is a maj major tool tool for for ident dentiifyi fying the these deficiencies.
•
Finally the performance appraisal can be used as a criterion against which selection devices and development programs are validated. It is
one thing to say, for example, that our selection process is successful in differentiating differentiating satisfactory performers from unsatisfactory performers.
THE APPRAISAL PROCESS
Established performance standard
Communicate Communicate performance expectations to employee
Measure actual performance
Compare actual performance with standards
Discuss the appraisal with the employees.
If necessary, initiate the corrective action
The The appr apprai aisa sall proc proces esss begi begins ns with with the the esta establ blis ishm hmen entt of perf perfor orma manc ncee stan standa dard rds. s. Thes Thesee shou should ld have have evol evolve ved d out out of job job anal analys ysis is and and the the job job description description discussed under human resource planning. These performanc performancee standards should also be clear and objective enough to be understood and measured. Too often, these standards are articulated in some such phrase as "a
full day's work" or "a good job". Communication only takes place when the transference has taken place and has been received and understood by the subordi subordinat nate. e. Theref Therefore ore feedba feedback ck is necessa necessary ry from from the subordi subordinat natee to the manager. Satisfactory feedback censures that the information communicated by the manager has been received and understood in the way it was intended.
The The thir third d step step in the the appr apprai aisa sall in the the meas measur urem emen entt of perf perfor orma manc nce. e. To determine what actual performance. To determine what actual performance is, it is necessary necessary to acquire acquire informati information on about it. We We should be concerned concerned with how we measure and what we measure.
What we measure is probably more critical to the evaluation process than how we measure, since the selection of the wrong criteria can result in serious dysfunctional consequences. And what we measure determines, to a great extent, what people in the organization will attempt to excel at.
One of the most challenging tasks facing managers is to present an . accurate appraisal to the subordinate and then have the subordinate accept the appraisal in a constructive manner. Appraising performance touches on one of the most emot emotio iona nall lly y char charge ged d acti activi viti ties es the the asse assessm ssmen entt of anot anothe herr indi indivi vidu dual al's 's contribution and ability. The impression that subordinates receive about their assessment has a strong impact on their self-esteem and, very important, on their subsequent performance.
The final step in the appraisal is the initiation of corrective action when necessary. Corrective action can, be of two types. One is immediate and deals predominantly with symptoms. The other is basic and delves into causes. Immediate corrective action often described as "putting out fires," whereas basic basic correctiv correctivee action action gets to the source of deviation and seeks to adjust the difference permanently.
Immediate action corrects something right now and gets things back on track.
Chapter 5 PERFORMANCE APPRAISAL SYSTEM IN DABUR INDIA LIMITED
Chapter 5 PERFORMANCE APPRAISAL SYSTEM IN DABUR INDIA LIMITED In Dabur India Limited they have the system of performance appraisal of their employees. The main objective of this performance appraisal system is to evaluate the performance, promote their employees and to arrange for their various training programmes if they require for enhancing their skills in their respective areas and in contribution enhancement.. Employees are evaluated by how well they accomplish a specific set of obje object ctiv ives es that that have have been been dete determ rmin ined ed to be crit critic ical al in the the succ success essfu full comp comple leti tion on of thei theirr job. job. This This appr approa oach ch is freq freque uent ntly ly refe referr rred ed to as . manage managemen mentt by object objective ives. s. Manage Managemen mentt by object objective ivess is a proces processs that that conver converts ts organ organiza izati tion~l on~l object objective ivess into into indivi individua duall object objective ives. s. It can be thought of as consisting of four steps: goal setting, action planning, selfcontro control, l, and period periodic ic review reviews. s. In goal goal setti setting, ng, the organ organiza izatio tion's n's overal overalll objectives are used as guidelines from which departmental and individual objectives are set. In action planing, the means are determined for achieving the ends established in goal setting. That is, realistic plans are developed to attain the objectives. Self-control refers to the systematic monitoring and meas measur urin ing g of perf perfor orma manc nce. e. Fina Finall lly y, with with peri periodi odicc progr progres esss revi review ews, s, corrective action is initiated when behaviour deviates from the standards esta establ blis ishe hed d in the the goal goal-s -set etti ting ng phas phase. e. Dabu Daburr uses uses very very cons constr truc ucti tive ve
performance appraisal process while evaluating its employees. Its evaluation is based on quantitativewise q uantitativewise and objectivewise. Company Company set goals to its employee employee by properly properly reporting with its employees employees and then evaluating them upto what extent it has been achieved and if there is failure in reaching the target what are the causes or reasons behind it. Every evaluator has his or her own value system which acts as a standard against which appraisals are made. Relative to the true or actual performance an individual exhibits, some evaluator~ mark high and others low. The former is referred to as positive leniency error and the latter as negative leniency error. When evaluators are positively lenient in their appraisal, an individual's performance becomes over- stated; that is, rated higher than it actually should. Simil Similarl arly y, a negati negative ve lenie leniency ncy error error underst understate atess perfor performan mance, ce, giving giving the individual a lower appraisal. As such there is no scope of error as far as the Dabur company is concerned, but sometimes over estimation of target brings about a description in the evaluating criteria. Thus, though chances are less, positive leniency errors have been stated to be committed.
Outcome of Performance Appraisal Appraisal
As far as Dabur company is concerned, there are four outcomes possible: a.
Outstanding -If the performance evaluated by the management turns
out to be outstanding. If the employee performs in such a way as to collect 3 consecutive outstanding performance into his/her credit) he / she gets promoted.
b.
Excellent -If the performance evaluated by the management turns out to
be excellent. If the employee performs in such a way as to collect 3 consec consecuti utive ve excel excellen lentt perform performanc ancee into into his/he his/herr credit credit,, he/she he/she gets gets promoted. c.
Good -If the performance evaluated by the management turns out to be
good. The management sends the employee to the training programme to improve his/.her skill to perform form. d.
Below average -If the performance evaluated by the management turns
out to be below average. And, if the employee collects 3 below average to his/her credit, then he/she dismissed
Duration of Appraisal System
The The time time cons constr trai aint ntss enab enable less the the empl employ oyee ee to show show or proj projec ectt his/ his/he her r capabilities in term of performance as per the duration allowed. In Dabur India Limited, the performance appraisal system is carried out annually. annually. Feedback
The company provides the annual feedback to its employees and thus, in term bring out the highlights of the self assessment programme. This enables the better communicaiton between the management and employees ad thus, helps in promoting the business future.
Response
There are mixed responses from the feedback by the employees. It has helped some of the employees in motivating themselves while those who felt bad were thoroughly communicated and all the confusion and failure part were discussed with employees.
Chapter 6 ANAL ANALYSIS YSIS AND AND INTERPR INTERPRET ETA ATION OF DATA
Chapter 6 ANALYSIS AND INTERPRETATION OF DATA
Afte Afterr coll collec ecti ting ng the the data data on "Per "Perfor forma manc ncee Appr Apprai aisa sall Syst System em"" data data was was Anal Analyz yzed ed and and inte interp rpre rete ted. d. The The vari various ous topi topics cs cove covere red d for for anal analys ysis is and and interpretation of data are: )
1.
Promotions
A promotion may be defined as an upward advancement of an employee in an organisation to another job, which commands better pay/wages, better status / prest prestige ige and higher higher opport opportuni uniti ties es / challe challenge ngess and respons responsibi ibilit lity y, a better better working environment, hours of work and facilities etc.
Promoters have a salutary effect on the satisfaction of the promoted person's need for esteem, belonging and security. They also afford an opportunity for grea greate terr
self self-a -act ctua uali lizi zing ng acti action on thro throug ugh h
more more vari varied ed and and
chal challe leng ngin ing g
assignments. The promotion policies differ d iffer from an organisation to another. another.
The guidelines for departmental promotion in are same for male and female empl employ oyee ees. s. The The peri period od of expe experi rien ence ce requ requir ired ed for for fill fillin ing g a highe higherr post post departmentally varies from 3-5 years. 5 years experience for promotion to managerial managerial staff staff and 3 years years experience experience for promotion promotion to Junior Management Management staff is needed. The other area of promotion apart from seniority are merit and fitness. Though these guidelines are not in a written format the supervisor and manager get it at the time of appraisal from the personnel department.
As per the guidelines from the personnel department employees are to be promoted accordingly. However there is confusion among the employee as these guidelines guidelines are not being explained explained time to time, time, many are not aware of the existing promotion policy in the organisation.
Respondents were asked whether the promotion is well defined in the organisation. The responses are given below: N=96 Response
Number
Percentage
Yes
16
16.66
No Can't say
52
28
54.16 29.16
From the above table, it can be seen that 30% agree that promotion is well defined in the organisation. However 54% were not able to say it as there is lack of information about the promotion policy. Every employee need to be communicated about the existing promotion policy.
60
52
50 40 28
30 20
16
10 0 Yes
No
Can't Say
Series1
Respondent were also asked to suggest any change in the policy. policy. The responses were as given below:
Response
Number
Percentage
Merit not recognized
20
20.83
Does not define career plan
26
16.66
Not integrated with business
Heterogeneity within policy for
0 56
0 58.83
different position
Majority suggested for no change in the policy. policy. It seems they are satisfied with the current policy.
Aligning goal
Respondent were asked about the present system, does it help in aligning individual goal with those of the organisation. The responses were as given below: Response
Number
Percentage
Yes
44
45.83
No
12
Can't say
36
12.5
37.5
No response
4
4.16
Here the response from the supervisor were 45.83% for the factor that it help in aligning their goal with those of organisation.
45
44
40 35
36
30 25 20
Series1 12
15 10
4
5 0 Yes
No
Can't Say
No response
Career Progress
Care Career er prog progre ress ss is some someth thin ing g whic which h is cont contin inuou uous, s, with with the the inpu inputt from from orga organi nisa sati tion on in term term of trai traini ning, ng, feed feedba back ck and and couns counsel elli ling ng.. In toda today' y'ss changing scenario this has to be followed in every organisation so that an indi indivi vidu dual al make make prog progre ress ss in the the care career er addi adding ng valu valuee to hims himsel elff and and the the organisation. Respondent were asked about the current system helping in their career progress.
Career advancement is the most motivating factor when employee aspire for the advanc advanceme ement nt of his career career and for better better opportuni opportunitie tiess to use his/he his/her r talents. From the organisation's point of view, it is necessary to develop in manager. Some expectations of opportunities for the future in order to keep their motivation high. Career planning means helping the employee plan his career in terms of his capabilities with the context or organisational needs. Individual, after becoming aware of some of his/her capabilities and career and development opportunities chooses to develop himself/herself in a direction that improves his/her chances of being able to handle new responsibilities. It is also the responsibility of the employer to help him/her to identify the career oppo opport rtun uniity,
make make choi choice cess
and devel evelop op his/ his/he herr
caree areerr
opportunities for career planning and succession planning
and prov provid idee
Question asked was as follows: Are the issues like career planning and succession planning a part of company’s company’s policy The responses to the above were as given below:
Response
Number
Percentage
Yes
16
16.66
No
44
Cant say
36
37.5
Here only 46% of the respondent gave response that it does not while 38% gave response that there is no career development plan at all.
50
44 36
40 30 20
Series1
16
10 0 Yes
No
Can't Say
45.83
Feedback
Provid Providing ing feedba feedback ck playa playa constr construct uctive ive role. role. It helps helps the employ employee ee know his/ his/he herr weakn eaknes esss and and stre streng ngth th.. Fee Feedbac dback k prov proviides des for for the are area of improvement.
Respond Respondent ent were were asked asked about about the frequency frequency of feedbac feedback k based based on their their performance. The responses were as given below:
Response
Number
Percentage
Rarely
24
25
On a few occasion
40
41.66
Sometimes
24
25
Often
8
8.34
Almost always
Nil
Nil
41 percent responded that feedback is provided though on a few occasion. The frequency has to increase both from the individual and organisation point of view to keep the individual individual motivated motivated for work in line with the organisat organisational ional expectation.
40 35 30 25 20 15 10 5 0 Rarely
Ona few Som Sometimes occasion
Often
Alm Almost ost always
Remedial measure
Based on the performance the remedial measures are taken to do away with weakness if any and build on the strength and add to the existing capability
Response on the remedial measure were as given below:
Response
Number
Percentage
Job rotation
44
45.83
Sent to training programmed
40
41.66
Counseled
12
12.5
Any other
Nil
Nil
None
Nil
Here the response were both for job rotation rotation and training programme. programme. During the course it was felt that more training input is to be provided to the employee to overcome the weakness and improve upon the existing capability of the employee.
45 40 35 30 25 20 15 10 5 0 J ob rotation Sent to CounselledAn lled Any other training program
None
Nil
PROMOTION POLICY AND PERFORMANCE APPRAISAL APPRAISAL
SYSEM
Respo Respond nden entt were were aske asked d wheth whether er the the prom promot otio ion n polic policy y is link linked ed with with the the performance appraisal system
The responses were as given below: Response
Number
Percentage
Yes
54
56.25
No
28
29.15
Cant say
14
14.58
Majority response were that promotion policy is linked with the performance appraisal system.
60
54
50 40 28
30 20
Series1 14
10 0 Yes
No
Can't Say
SWOT ANALYSIS
1. Strength -Dabur India Limited is the first Indian major company which
came up with the idea of Ayurvedic concept in various family and health care care prod produc ucts ts.. most mostly ly whate whateve verr ingr ingred edie ient ntss it uses uses in its its produ product ct are are extracted from nature as it has very less synthetic chemical constituents used in its product and so it does not has any threat of side effect. As it has its product in major areas viz. family, health care and in food division it can easily has larger share of market. By this performance appraisal system act as motivating factor for its employees to a great extent by increasing their efficiency and skills. For example, if we see Dabur Lal Dunt Manjan, it is India's number one tooth powder doing very well in rural as well as in urban market.
2. Weakness -The main weakness of the company is that the company is
taking taking the perfor performan mance ce apprai appraisal sal in object objective ive wise, wise, while while evalua evaluatin ting g a particular employee performance, on objective wise, the employee does not get enough opportunity to express completely and freely the valid reasons of his/her failure to the organization. Weakness is also highlighted when Dabur India Limited do this performance appraisal procedure annually. annually.
-With ith the help help of this this perfor performan mance ce apprai appraisal sal system system the 3. Opportuni Opportunity ty -W employee always get feedback from the company. He / she can realize
easily his/her level of efficiency. By this performance appraisal system the employ employee ee gets gets enormo enormous us opportu opportunit nity y to enhanc enhancee their their skill skillss by special special training and various other managements programme. -While evaluatin evaluating g an employees employees performance performance the performance performance 4. Thre Threats ats -While appraisal system there is always a chance of fear that those employees who are unable to achieve their target can take it as a huge set back for them and in the log term it tends to decrease their efficiency level how good the employee is and thus it effect the over all performance of the organization.
Chapter 7 CONCLUSIONS & SUGGESTIONS
Chapter 7 CONCLUSIONS & SUGGESTIONS Conclusion The analysis and interpretation of data on study of performance appraisal and its effectiveness in an organization led to the following conclusions:
•
The promotion rule though defined need to be communicated to every employee before appraisal process is done and also justify the promotion as a result of the appraisal. That the promotion policy followed differs at diff differ eren entt posi positi tion on and and cate categor gory y. A unif uniform ormit ity y has has to be ther theree in the the implementation of promotion policy at all levels
•
The process of performance appraisal followed in Dabur India Ltd. at the supervisory and above level IS to say not good but of satisfactory level. The employees do not rate it very good
•
The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance. Also when performance goes down employee has to be given feedback and motivated to do d o better.
•
The orga organi niza zati tion on at pres presen entt does doesn' n'tt lay lay care career er plan planni ning ng and and care career er suggestion plans.
•
In Dabur India Ltd. feedback is being provided to the employee though on a few occasion.
•
Performance appraisal in Dabur India Ltd is done on an annual basis.
•
More emphasis on training and job rotation as remedial measures.
•
The mechanism of counseling pre-performance and post performance is not in practice at the organization in strict term. During. the course of study suggestion came from the employee side for the need of counseling.
Suggestions The study undertaken bring some s ome interesting result.
•
Training the Appraiser: It is proposed that appraiser be trained for clear understanding of the system and its objective and also counseled to be honest, fair, just, unbiased in appraising the appraisal.
•
Factors/traits of evaluation: It is proposed that appraisal evaluated on above factor factors/t s/trai raits ts be given given suitab suitable le remark remark or justi justific ficati ation on for being being given given different quantitative grade.
•
Greater clarity has to be has to there in terms of job responsibility. This is possible when the appraisal is done on the basis of the description.
•
In the organiza organizatio tion, n, perfor performan mance ce apprai appraisal sal is done done on an annual annual basis basis which should be done d one Quarterly to make it more effective.
•
Consistency is demanded in the promotional policy. It should not change every year.
•
Monetary difference between two grades should not be large, it should be motivating in nature.
•
Perf Perform orman ance ce appra apprais isal al syst system em shoul should d be made made more more tran transp spar aren entt and and
rationale. •
Perfor Performan mance ce feedba feedback: ck: The perfor performan mance ce feedbac feedback k sessio sessions ns should should be impr improve oved d whic which h would would resul results ts in incr increa easi sing ng empl employ oyee ee moti motiva vati tion on to improve performance. The following could be incorporated. •
Pin point the problem behaviors and make sure the employee is aware of it
•
Make sure the employee understands the consequences of the problem behaviors. Get employee's commitment to change and make sure he cares about the change
•
Assistance should be provided to improve poor performance. Make a realistic plan appropriate to the behaviour and set a time frame for improvement.
•
•
To make sure to review performance time to time
The other change which has to be incorporated at the supervisor and the level above are: •
These should be listing down of task undertaken during the last one year and the result achieved.
•
In some areas of performance there should be self appraisal and more and more counseling so that employee improve upon weak area and understand what is expected of him/her at the organization level.
•
Based on the above an open appraisal system is suggested.
In an open appraisal the employee would come together to set the targets, to unde underst rstan and d the the mutu mutual al expe expect ctat atio ions ns and and suppo support rt to be provi provide ded d by the the apprai appraiser ser to the employ employee ee for achiev achieving ing mutual mutually ly accept accepted ed goals/ goals/tar target gets. s. Through this process process of setting setting targets targets the interpers interpersonal onal relationsh relationship ip between between the appraiser and the employee would improve. The open appraisal system reduces the whims and fancies of the appraiser. It promo promotes tes result result-ori -orient entati ation on as it is based based on perfor performan mance ce rather rather than than on personality based appraisal.
Annexure a)
Questionnaire
b)
Bibliography
QUESTIONNAIRE TO STUDY PERFORMANCE APPRAISAL SYSTEM
Q.1.
Is the promotional policy well defined in your organization? a. Yes
Q.2.
b. No
c. can't say
Do you know the objectives of the Performance Performance appraisal appraisal system. system. If yes yes kindly kindly specify.
Q.3.
How often the performance appraisal form is filled or Performance Appraisal is done.
Q.4.
a.
fortnightly. fortnightly.
e.
not fixed.
b. monthly
c. six-monthly. six-monthly.
d. annually
On what basis is the performance appraisal done. a.
merit cum seniority
b. seniority cum merit.
d.
seniority only. only. e. any other. other. Pl. specify
c. merit only
Q.5 Who appraises you?
Q.6.
Q.7.
a.
appraisal committee. b.
your immediate supervisor
c.
self-appraisal
360 degree appraisal.
e.
any other please specify
What methods are being used for performance appraisal a.
forced choice distribution method.
b.
essay method
c.
ranking method.
d.
critical incident method
e.
any other, kindly specify
In your opinion does it identify the training needs? a.
Q.8.
d.
to a large extent
b. to some extent
c. cant say
d. not at all
Is the promotional policy linked with the performance appraisal system a.
yes
b. no
c. can't say
Q.9. Are the issues like career planning planning and succession succession planning planning a part of company's company's policy a. yes
b. no
c. can't say.
Q.I0 Does the system help you in i n aligning your goals with those of the organization. a.
yes
b.
no
c.
can't say
Q.11. Q.11. What What role role does top managemen managementt play play in the perform performanc ancee apprais appraisal. al. kindly kindly comment.
Q.12. Are you you a part of the appraisal appraisal committee a.
yes
b.
no
Q 13 . Do the employ employees ees get the feedback feedback of performanc performancee appraisal appraisal
Q.14
a.
yes, every time.
c.
only when required
d.
rarely
b.
often, but not always.
e.
never
Does the organization provide counseling after the the appraisal. a. always
b. often
c. rarely
d. never.
e. can't say. say.
Q.15 Q.15.. Who Who does does the the cou couns nsel elin ing g a. trained professionals
b. untrained counselors. c. can't say
Q.16. What kind of remedial measures measures are taken. a. job rotation
b. sent to training programmes
c. counseled
d. any other, kindly specify Q.17. How do you rate the overall assessment of performance appraisal a. Outstanding b. Very good c. Good e. Poor
d. Satisfactory
Q.18.
What do you feel are the positives in the perfomance appraisal system in
your organization, Kindly mention
Q.19
What do you you feel are the the shortcoming shortcomingss of the performa performance nce appraisal appraisal system system being followed in your organization, Kindly mention
Q.20. For how long have you been been working in this organisation
Q.21 Q.21.. Sugg Sugges estio tion n towa toward rdss impr improv ovin ing g the the perf perform orman ance ce appr apprais aisal al syst system em in your your organisation
BIBLOGRAPHY
1)
Flippo Flippo EdwinB EdwinB., ., Personnel Personnel management, management, Edition Edition sixth, sixth, Tata Mc Graw Hills, Hills, 1984, p.g. 225-230
2)
Gupta, Gupta, C.B., Human Resource Resource Management, Management, Edition Edition Fifth(Reprin Fifth(Reprint),Su t),Sultan ltan Chand and Sons, New Delhi 2001, P.G. 5.3-5.10
3)
Rao, P. Subba,Ess Subba,Essentials entials of Human Resource Resource Management Management and Industrial Industrial Relatio Relations ns;Ed ;Editio ition n Second Second,, Himalay Himalayaa Publis Publishin hing g House, House, New Delhi Delhi 2001, 2001, p.g.206-210
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