INTERNSHIP REPORT ON PERFORMANCE PERFORMANCE APPRAISAL AT VARUN BEVRAGES PVT. LTD LT D (PEPSICO)
Submitted in Partial fulfillment of
MASTER OF BUSINESS ADMINISTRATION In the
University School of Business CHANDIGARH UNIVERSITY, GHARUAN 2017-18
Submitted by: Name: ONKARPREET KAUR KAUR UID: 16MBA1100
University School of Business Chandigarh University
DECLARATION I, hereby declare that the work being presented in this report entitled “Performance Appraisal” Appraisal” is an authentic record of my own work, carried out under the supervision of Ms. “JYOTI VERMA”.
The matter embodied in this report has not been submitted by me for the award of any other degree. This an authentic research work and has not been copied or duplicated from any other source.
Specialization: - HR
ONKARPREET KAUR DATE
ACKNOWLEDGEMENT
I am fortunate to have got an opportunity to undergo the “Internship” at VARUN BEVERAGES PVT LTD (PEPSICO). The project has been very useful for me in
understanding the various pragmatic aspects of the management function practice in the real world. I express my deep sense of gratitude to Ms. JYOTI VERMA (HR MANAGER ), ), for their counsel throughout my training. I would also like to express my gratitude to all the members of Varun beverages for their assistance and constant motivation. Above all, I give my special thanks to all my faculty members who have supported me. I am very thankful to all of them who have guided me for my project.
(ONKARPREET KAUR)
CERTIFICATE This is certified that Ms. Onkarpreet Kaur UID NO . 16 MBA 1100 a student in program MBA, under university school of business, Chandigarh University, Gharuan, Punjab has completed the internship with VARUN BEVERAGES (PEPSICO) between 1ST JUNE 2017 TO 30TH JULY 2017 and his report is titled “PERFORMANCE APPRAISAL SYSTEM AT VARUN BEVERAGES LTD.”. Student has carried out work successfully under my supervision. I wish her success in life. Signature of Faculty supervisor Dr. Surat Singh PROFESSOR
PREFACE For management careers, it is very important to develop managerial skills. In order to achieve positive results along with theoretical concepts the exposure of real life situation existing in corporate world is very much needed. Therefore, it becomes necessary to undergo any project work. It exposes a student invaluable treasure of experience. I underwent training in VARUN BEVERAGES (PEPSICO), in Chandigarh. It was my fortune to get training in a very healthy company that has spread its roots in India and various other countries. I got the opportunity to view the overall working of the organization. In the fourth of coming pages, I have attempted to present a report covering different aspects of my training.
TABLE OF CONTENTS Topics Cover Page Declaration
Certificate of Authenticity of report to be signed by Faculty guide Acknowledgement Preface CHAPTER 1 FMCG industry in India Introduction about Varun beverages History of PEPSICO Pepsi in India Varun beverages Philosophy Future plans of the Company CHAPTER 2 Executive Summary Product Profile Consumer choice at Glance Promotions by company Comparison of PEPSI and COCA-COLA SWOT STEEP analysis CHAPTER 3 Objective of study Scope of the study CHAPTER 4 Review of Literature CHAPTER 5 Methodology CHAPTER 6 Analysis and Interpretation Chapter 7 Conclusion Bibliography Appendix
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I Ii Iii Iv 1-3 4 5-7 8-9 10-11 12 13 14-15 16 17 18-20 21 22-23 24 25 26-36 37-38 39-58 59 60 61
Chapter 1
A brief insight- The FMCG Industry in India Fast Moving Consumer Goods, also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and most relatively low cost. Consumers generally put less thought into the purchasing of FMCG than they do for other products. The Indian FMCG industry has witnessed significant changes through the 1990s. Many companies had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. Most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market. By the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. And the social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption. The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact that is leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector. Though the profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car or any other luxury good but he will not put off having his dinner. Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 crore. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 crore. This sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs.
Today: The fast moving consumer goods is the fourth largest sector in the Indian economy. The market size of FMCG in India is estimated to grow from US$ 30 billion in 2011 and to US$ 74 billion in 2018. Food products are the leading segment which is accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the FMCG sector. Rural – set to rise
Rural areas expected to be the major driver for Fast moving consumer goods, as growth continues to be high in these regions. Rural areas saw a 16 per cent rise, as against 12 per cent rise in urban areas. Most companies rushed to capitalise on this, as they quickly went about increasing direct distribution and providing better infrastructure to them. Companies are also working on creating specific products specially targeted for the rural market. The Government of India has also been supporting the rural population with higher minimum support prices (MSPs), loan waivers, and disbursements through the National Rural Employment Guarantee Act (NREGA) programme. These measures are helping in reducing poverty in rural India and given a boost to rural purchasing power. Hence rural demand is set to rise with rising incomes and greater awareness of brands in rural area. Urban trends
With the rise in disposable incomes, mid- and high-income level consumers in urban areas have shifted their purchasing trend from essential to premium products. In response, firms have started enhancing their premium products portfolio. Indian and multinational FMCG players are leveraging India as one of the strategic sourcing hub for cost-competitive product development and manufacturing to cater to international markets.
The FMCG sector consists of the 3 categories: 1. The Personal Care- Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care. The major players are: Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur and Procter & Gamble. 2. The Household Care - Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners), Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman. 3.The Branded and Packaged foods and beverages- Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Icecreams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Cadbury, Pepsi and Dabur.
CHANNELS OF BEVERAGE INDUSTRY
INTRODUCTION & COMPANY PROFILE
VARUN BEVERAGES: Varun Beverages with the merger of Varun Beverages -Cola and Frito-Lay. Tropicana was acquired in 1998. In 2001, Varun Beverages Co has merged with the Quaker Oats Company, creating the world’s fifth-largest beverage company, with 15 brands – each generating more than $1 billion retail sales per year. Varun Beverages success is the result of superior products, high standards of performance, distinctive competitive strategies and the high level of integrity of our people. Since the entry of Varun Beverages -Cola to India in 1989, the soft drink industry has under gone a complete change. When Varun Beverages entered, 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 & CampaOrange. The family manufactures and sell Carbonated and Non-Carbonated Soft Drinks and Mineral Water under Varun Beverages brand. The various flavors and sub- brands are Varun Beverages, Mirinda Orange, Mirinda Lemon, Mountain Dew, 7UP, Slice Mango, Slice Orange, Evervess Soda and Aquafina. Varun Beverages has the license to supply beverages in the territories of Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, 13 districts of Karnataka and whole of Nepal. The Varun beverages group has in total 28 bottling plants in West Bengal, Karnataka, Rajasthan, Gujarat and Maharashtra. (India & Nepal) and is responsible for producing and marketing 44% of Varun Beverages requirement in India. There are about 4, 50,000 soft drink retailers in India and their number is increasing day by day Varun Beverages -Cola North America's carbonated soft drinks, includes: Varun Beverages, Diet Varun Beverages, Varun Beverages Twist, Mountain Dew, Mountain Dew Code Red, Sierra Mist, and Mug Root Beer account for nearly one- third of total soft drink sales in the United States Varun Beverages Co, Inc. is one of the world's largest food and beverage companies. The company's principal businesses include:
Frito-Lay snacks
Varun Beverages -Cola beverages Gatorade sports drinks Tropicana juices
Quaker Foods
V B L, a bottling company, engages in bottling and distribution of Pepsi. The company was incorporated in 1995 and is based in Gurgaon, India. Varun Beverages Limited operates as a subsidiary of RJ Corp Limited.
BRIEF HISTORY: PEPSICO PepsiCo Inc., American food and Beverage Company which is one of the largest in the world, with the products which are available in more than 200 countries. It took its name in 1965 when the Pepsi-Cola Company merged with Frito-Lay, Inc. The company’s headquarters is in Purchase, New York.
Donald Mcintosh "Don" Kendall is a former businessman and political adviser. He is a former CEO of Pepsi Cola and he served as CEO of PepsiCo from 1971 to 1986.
Herman Warden Lay was a famous American businessman who was involved in potato chip manufacturing with his eponymous brand of Lay's potato chips. He started H.W. Lay Co., Inc., which is now part of the Frito-Lay Corporation, a subsidiary of PepsiCo
The very first Pepsi-Cola was created by Caleb D. Bradham (1866 – 1934), who was a pharmacist in New Bern, North Carolina. Hoping to duplicate the recent success of CocaCola, Bradham named his sweet sugary cola-flavoured carbonated beverage Pepsi-Cola in 1898. The drink proved to be so popular that in 1902 Bradham incorporated the Pepsi-Cola Company. After many years of moderate prosperity, the company fell on hard times after World War I and was reorganized and reincorporated on several occasions in the 1920s. In 1931 the company’s tra demark and assets were picked up by Charles G. Guth (1876 – 1948), who was the founder of the modern Pepsi-Cola. He established a new Pepsi-Cola Company, had a chemist formulated a better drink, set up new bottling operations, and began merchandising a successful 12-ounce bottle for five cents. Guth was also president of Loft, Incorporated, a candy manufacturer and soda-fountain chain (founded 1919), and in legal battles in 1936 – 39 he lost the controlling interest in the Pepsi-Cola Company to the new management of Loft. When in 1941 the Pepsi-Cola Company was merged into Loft, the name Loft, Inc., was changed to Pepsi-Cola Company.
Pepsi-Cola advertisement.
Pepsi-Cola Company: In 1950 Alfred N. Steele (1901 – 59), a former vice president of Coca-Cola Company, became the chief executive officer. His emphasis was on giant advertising campaigns and sales promotions increased Pepsi-Cola’s net earnings 11 -fold during the 1950s and made it the chief competitor of Coca-Cola. After the death of Steele, his wife, actress Joan Crawford, became an active director of the company. In 1965 Pepsi-Cola merged with Frito-Lay, Inc., the maker of snack foods such as Fritos, Doritos, Lay’s potato chips, and Rold G old pretzels. The newly company diversified further with the purchase of three restaurant chains — Pizza Hut, Inc. (1977), Taco Bell Inc. (1978), and Kentucky Fried Chicken Corp. (1986; now called KFC) — and Seven-Up International (1986), but in 1997 the restaurant chains were spun off into a new, separate company called Tricon Global Restaurants, Inc. Looking to add more and more products that were considered healthier, PepsiCo acquired the Tropicana and Dole juice brands from the Seagram Company in 1998, and in 2001 it merged with the Quaker Oats company to form a new division, Quaker Foods and Beverages. With the merger, PepsiCo’s popular brands included Pepsi cola, Frito -Lay snack products, Lipton Tea, Tropicana juices, Gatorade sports drinks, Quaker Oats cereals, and Rold Gold pretzels.
In the early 21st century, PepsiCo focused on expanding its operations in other countries, notably Russia, which was its second largest market. In 2008 PepsiCo bought a controlling interest in JSC Lebedyansky Russia’s largest juice manufacturer, and three years later it completed its acquisition of Wimm-Bill-Dann Foods. Those investments helped make PepsiCo the largest food and Beverage Company in Russia.
Evolution of Pepsi LOGO
History of Pepsi in India PepsiCo entered into India in 1989 and grew to become one of the country’s leading food and beverages companies. As one of the largest multinational investors in the country, PepsiCo has established a portfolio of brands that seek to refresh and excite Indian consumers. RJ Corporation has been associated with PepsiCo since the latter’s entry into India. In 1991, a license agreement was signed between the two companies and RJ corp. became PepsiCo largest bottling business in India through its entity, Varun Beverages Ltd. (VBL).we seek to serve our customers with passion to ensure Pepsi’s beverages brands retain their position as market leaders in our franchise areas. The group manufactures and markets carbonated and non-carbonated soft drinks and package drinking water under the Pepsi brand umbrella. The beverage portfolio includes refreshment brands like Pepsi, 7up, Mirinda and mountain dew, in addition to low calorie options such as diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, juice based drinks Tropicana, Tropicana twister and slice. Also lehar verves soda among local brands. The total turnover of the beverages division is about 800 cores and enjoy a healthy market share of 52% vis- a - vis competition in the geographical domains that the group operates. This is possible through rigorous & robust distribution set-up & aggressive input deployments in the market place. VBL has selling & distribution rights in territories of East Delhi, Western U.P., part of M.P., half of Haryana, whole of Rajasthan, Goa, 3 districts of Maharashtra, North East and the entire country Nepal. The group has in total 9 bottling & manufacturing plants in India & Nepal and is responsible for producing and marketing 30% of Pepsi business in India. PepsiCo, Inc. is currently one of the successful consumer products company in the world with annual revenues exceeding $30 billion and has more than 480,000 employees. The PepsiCo challenge (to keep up with archrival The Coca-Cola Company) never ends for the world's 2nd carbonated soft-drink maker. PepsiCo may be vying for more Pepsi-drinking people but its hefty snacks and juice sales help to quench the company's thirst for bottom-line growth. Frito-Lay’s salty snacks rule the US market; the snack division accounts for about one-third of company sales. The company announced a restructuring in 2007, splitting its two business units (Pepsi-Cola North America and PepsiCo International) into three: one for US food, a second for US drinks, and a third for food and drinks abroad. CEO of PepsiCo Indra Nooyi said that due to the company's healthy growth in recent years, PepsiCo is approaching a size that can be better t here unit sratherthantwo.The split looks like this: PepsiCo Americas Foods includes FritoLay NorthAmerica, Quaker, and the Latin American food and snack businesses; PepsiCo Americas Beverages includes North American beverage sales, including Gatorade and Tropicana; and PepsiCo International includes business in the UK, the rest of Europe, Asia, the Middle East, and Africa. With a saturated soft-drink market, the company continues to try new iterations: In2007 the company introduced its first vitamin-enhanced water, called Aquafina Alive. It signed a licensing agreement with Ben & Jerry's in 2006 for the sale of Ben & Jerry's milkshakes in the US, as well as a deal with Starbucks for the distribution of the coffee purveyor's Ethos water brand. Coke’s introduction of Blak, in 2006 Pepsi launched a coffee-flavored cola, named, Pepsi Max Cino, in the UK. Venturing
Further into the non-cola category, PepsiCo acquired sparkling juice companies IZZE and Naked Juice in 2006. It also began selling Fuelosophy, smoothie drink, at organic grocery store chain Whole Foods, and struck a deal to develop products with juice maker Ocean Spray Cranberries.
Key Facts Indian headquarters: Gurgaon, Haryana. Employment opportunities: Presently employs 6400 people and provides indirect employment to almost 200,000 people Facilities:
38 bottling plants 3 food plants
Varun Beverages
Philosophy
Our Vision
To become the most Successful & Profitable Beverage Company in the world having Market Leadership in the territories we operate.
Our Mission Being a Global, Growth Oriented and Profitable Organization by:
Offering best quality & refreshing product to every customer & consumer. Being a preferred employer providing consistent growth path, respect & empowerment. Creating value for our stakeholders by driving excellence in our operations. Being responsible towards environment & society.
Our Values
We hold strong values in business and fully respect our customers, associates and community. Our diversity and unity brings creativity to our relationships within our group, and to our associates. We continuously excel to achieve and maintain leadership position in the chosen businesses; and delight all stakeholders by making economic value additions in all corporate functions.
About Founder Chairman
Mr. Ravi Kant Jaipuria is the promoter and founding Chairman Of Varun beverages Limited. Mr. Jaipuria has three decades of hands-on experience in conceptualizing, Developing and expanding the Food, Beverages and Dairy Business in South Asia & Africa. He is the only Indian bottler to be awarded as the PepsiCo “International Bottler of the Year” award in the year 1997. It was presented at PepsiCo’s centennial year and the award was presented by Mr. Donald M. Kendall, Founder of PepsiCo Inc. in presence of Mr. George Bush, the 41st President Of USA. He is hands on, well connected and respected entrepreneur of the business community in South Asia and Africa.
FUTURE PLANS OF THE COMPANY
To capture major parts of the Global market to cater to the needs of both domestic as well as the international market.
To improve the productivity by effective utilization of resources.
To expand the scale of production to enjoy the benefit of economies of scale i.e. to increase the level of production to reduce the per unit cost.
To minimize the wastage or scrap to ensure the cost effectiveness.
To further improve the quality of the product so as to become the leading supplier of Safety beverages, foods, mineral waters etc in the world
Chapter 2 ‘A study on Employees’ Performance Appraisal of Varun Beverages’
Executive summary:-
Human Resource Management focuses on the most key element of the organization. There are several resources needed by the organization but most effective one is the human resources. Human resource functions are broadly recognized by all organization, among these important functions performance appraisal is a remarkable one. The report of the internship has been titled as; “A Study on Employees’ Performance Appraisal of Varun beverages”. The study basically based on the study overall employees performance appraisal. Literally, performance appraisal, performance assessment and performance management, all the three terms refer to the process of comparing the actual performance with the relative standards, here employees performances are evaluated to determine the extent to which employees performances contribute to strategize organization goals. The appraisal process of Varun Beverages, one of the largest franchisee in the world (outside US) of carbonated soft drinks (“CSDs”) and non -carbonated beverages (“NCBs”) sold under trademarks owned by PepsiCo have been described in a precise form. Having been an intern here, several things have been appeared in mind to make the report; finally performance appraisal process has been chosen. Performance appraisal has been selected because it is a vast area to study and so many things to learn in a realistic point of view. The report actually aimed at having a pragmatic notion on performance appraisal process and how it effects in the development of human resources and organization development. Here the study also has fulfilled some other relevant purposes, such as, having a view of assessment of the organization to discuss critically and recommend on the shortcomings that found. While making the analysis on Performance Appraisal Process I have provided detailed information about performance evaluation and I have covered all the related factors with it and in addition to that I have tried to incorporate the theories that I have learned with the practices I have seen. This report also provides a brief overview on different tasks I had to perform during my internship, the responsibilities I had to handle during the internship, my personal observation regarding the critical issues, the lacking of the HR Department and my recommendations for improving the total HR practices of Varun Beverages. In this project, all the respondents provided their full cooperation and participated enthusiastically.
PRODUCT PROFILE OF PEPSICO
There are Eight brands of Pepsi in India and they are differ in taste, flavor and also in their colors.
1. PEPSI Pepsi is considered to be cold drink. It is generally preferred by all sections of consumer. This is a case cow brand for the company in terms of sales revenue.
2. MIRINDA Mirinda is considered to be lemony in taste, and comes under the light drink.
3.7UP 7up is a good product at Pepsi and contains at lemon flavor.
4. MOUNTAIN DEW Mountain dew is also considered to be a cold drink. It is light comparison to Pepsi. It is preferred by all section of consumer but especially to teen-age. It is big source of company to cash its publicity
5. SLICE SLICE MANGO, in slice cold drink no gas only based on juice. It is a non-aerated soft drink. It is preferred mostly Children & Women.
6. Tropicana In Minute maid pulpy orange cold drink no gas only based on orange juice. It is a non-aerated soft drink.
7. Eversses Soda This is soda drink. It has no color and no flavor. It is generally used with alcohol and used by adults.
8. Aquafina water It is mineral water.
PepsiCo’s “green” PET Bottles and Cans 100 percent recyclable made entirely from renewable and plant sourced raw materials.
PepsiCo outsells Coca-Cola brands in most of the vital fast growing beverage categories such as bottled water, juices and sports drinks. Aquafina, Tropicana and Gatorade brands hold leading market shares in all of the three categories; surpass Coca-Cola's Dasani, Minute-Maid and Powerade brands respectively.
CONSUMER CHOICE AT A GLANCE
Pepsi
: Mainly preferred by youngster & kids
Mirinda
: Common Drink.
Slice
: Basically preferred by Ladies & kids.
7up
: Youngster
Mountain dew
: Youngster
Tropicana
: Basically preferred by Ladies & kids.
Eversses Soda
: Mostly those who consume liquor.
Aquafina
: Mostly preferred by travelers.
PROMOTION BY THE COMPANY All advertisement expenditure is incurred by PepsiCo India, but only D.P. Board, wall painting, S.G.A.’s etc. Company spends on it around 8 -9% total sales company
invested 305cr rupees in advertisement budget. Radio T.V Hoardings Road signs Sticker Neon light
Comparison PEPSI Co and Coca-Cola 1. Earnings PEP may own a more diverse product line, but Coca-Cola has been able to drive more earnings to its bottom line. While Pepsi’s net income has been trending downward in recent years, it manages to stay ahead thanks to superior margins. Pepsi has produced consistent net profit margins of around 10%, while Coca-Cola margins have been in the 15-18% range for the past several years.
2. Sales Coca-Cola may be able to produce more net income, but Pepsi has been generating more topline revenue than Pepsi for decades. Pepsi is primarily a beverage business, but Pepsi generates around half of its sales from food brands such as Doritos, Frito Lay and Quaker Foods. Soda sales declined for the 12th consecutive year as investors have been turning to bottled water.
3. Consecutive Dividend Increases Both Coca-cola and Pepsi have served their shareholders well over the past several decades with their commitment to continuously paying and growing their quarterly dividends. Both are dividend aristocrats, which are companies that have raised their dividend for at least 25 consecutive years.
4. Dividend Growth Perhaps just as impressive as their streak of consecutive dividend increases is the rate at which both companies have grown their dividends. Coca-cola has averaged an 8.5% annual increase over the past decade, while Pepsi has posted an average raise of nearly 10% over the same
5. Social Media Following Social media is an ideal channel for marketing a business, since users essentially opt in to receive low cost advertising. Effective strategies can generate strong word of mouth and can reach millions of individuals in minutes. Coca-cola recently passed 100 million likes on Face book, while Pepsi also maintains a strong presence. Both companies have smaller, yet important, followings on other platforms such as Twitter and Instagram.
6. Price Performance The continued weakness in soda sales has especially impacted Coca-cola’s stock. Over the past five years, Pepsi has significantly trailed the performance of both Pepsi and the S&P 500. Pepsi’s more diversified line up of food products have helped soften the blow of declining soda sales. However, on an overall basis, both companies have been experiencing negative sales growth. Due to these factors, Coca-cola and Pepsi have both been underperformers compared to the broader market.
SWOT ANALYSIS STRENGTH
•Pepsi is a well established company, so it has a very good reputation in the market. •Advertising of Pepsi is much more aggressive than coke. •Backed by huge promotion at National and International level. •Lot of SGA’s provided in the market
. WEAKNESS
•Non-fulfilment of commitments on time, made to shopkeepers. •Incompetent salesman who do not give the schemes in the market regularly. •Unavailability of various demanded flavours like Mirinda and Mirinda Lemon. •No repairement services on time for fridges. OPPURTUNITY
•May tie up or liaison with major showrooms, computer centres and restaurant. •Huge publicity of lemon Mirinda/ Slice has created a lot of demand. •Company has brand equity in the eyes of cus tomers, so its new products face no problem in penetrates in the market.
THREAT
•Threat of competitors’ new brand entry in the market in near future. •Restrictions made by Govt. agencies that soft drinks ar e harmful and non- nutritive. •Natural juices are now also available whose price are less or same as soft drinks.
STEEP analysis After its rival Coca-Cola, PepsiCo is the largest selling beverage internationally. In 2011, sales of this brand accounted for around 37% share of the global beverage market. As a result, the company felt the need to study and understand every country’s market by conducting STEEP analysis. The aim was to maintain the market position. No one will disagree that Pepsi is a big brand. At the time of analysis, it was at the 23rd spot in the Interbrand’s report for the World’s Leading Brands. The beverage’s advertisements feature famous celebrities and athletes. Past ads have flaunted stars like David Beckham, Britney Spears, Robbie Williams and Michael Jackson. It is noticed that Pepsi’s market reach is also quite diverse. From the US to New Zealand, you can find Pepsi in almost every country. Below, I have provided a STEEP analysis example for the firm, with a detailed explanation for all 5 factors:
Social It was found upon analysis that social factors impact Pepsi greatly. I believe the main reason behind this is that Pepsi is a non-alcoholic beverage, which has to maintain the strict and stark differences in cultures around the globe. Pepsi must communicate its image as a global brand in order to change people’s perception. The company expects the consumers to be able to think of the drink as something that connects the world together. Most often, the social implications are visible in marketing campaigns. A good example would be featuring religious festivals in TVC ads. So, Pepsi has to keep in line with all of those festivals if the team wants to understand the essence of their market. Analyzing the social factor would help cash upon the opportunity.
Technological With the advancement in technology, big and small companies feel the pressure to completely integrate themselves with the recent changes. Social Media is a very recent yet viral trend that every business is turning toward . The social media blast has increased interactive engagement with the customers and offers real time results too. So, Pepsi has to make attempts to stay ahead of all such developments. It is essential to give importance to how today be youth is utilizing technology for their benefit and how Pepsi can reach them to continue increasing brand engagement and brand recall.
Economic As it is aware, the economic downturn plagued the economy and companies had to completely restructure their marketing and sales campaigns. The decreasing profits led them to downsize internally and reconsider about how they should penetrate the market. I think economic conditions influence the business most, regardless of what kind of business it is. I would say in Pepsi’s favo ur that when the economic downturn started i.e. in 2008, it resulted in increased sales for the company . This is because people started spending more time with friends and family, or at home, when they got laid off from jobs.
Ecological Ecological factors might as well affect Pepsi, but it will not have any immense toll on its trade and profit generation. Ecological factors usually affect agricultural businesses more directly.
Political As I mentioned previously, Pepsi is a non-alcoholic beverage and so the FDA regulates it. Pepsi is expected to maintain a firm standard of the laws that the FDA sets. Many different markets across the world follow different set of regulations, which are either relaxed or severe. Pepsi’s competitors like Coca-Cola presents competitive pricing is a factor, which the firm should keep in mind all the time. The political scenario is very important because there can be certain civil disturbance in some markets. Another reason could be fall in sales due to inflation. The most important element of all is that cross-border situations are totally different. As a result, Pepsi has to stay in line with all changes and policies in order to adapt to them accordingly.
Chapter 3
Objectives of the study The study objectives are as follows – 1. To develop understanding of the subject. Performance Appraisal System implemented in various Organizations varies according to the need and suitability. Through my research, I have tried to study the kind of Appraisal used in the VBL and the various pros and cons of this type of system. 2. To conduct a study on social behaviour . Social behaviour is a very unpredictable aspect of human being life but social research is an attempt to acquire knowledge and to use the same for social development. 3. To enhance the welfare of employees. The Appraisal system is made by the Management but mostly does not take into consideration the opinion of the employees. This can lead to adverse problems in VBL. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Performance Appraisal System. 4. To exercise social control and predict changes in behaviour . The object of my research is to make it possible to predict the behaviour of individuals by studying the factors that govern and guide them.
SCOPE OF STUDY
STUDY OF HRD SYSTEM IN VARUN BEVERAGE LTD. PEPSICO HRD provides the tools are required to manage and operate an organization. Everything – production, management, marketing, sales, research &development, everything may be more productive if people of an organization are sufficiently motivated, trained, informed, managed and empowered. VARUN BEVERAGE LTD. considers human resources the most valuable asset of the group, it is important not only to provide them with adequate opportunities but also appropriate training to enhance their skills. VBL believes that a quality workforce build a quality organization. Towards this objective group’s retail training division has devised strategies that help develop the employee knowledge as well skills. The HRD is for the complete monitoring of various processes conducted for the employees of VBL ,in other words this department keeps track of the number of persons being trained, selected and recruited each month in a year, the engineer of this department keeps the note of the number of persons being trained, selected, and recruited each month. The system gives the complete information about the details of the persons their number for current menthe and also the cumulative figure. Considering the economic condition of country and the public sector undertaking in particular the chairman, as well as managers of the subsidiary companies have been emphasizing on the need for improving the effectiveness of executives, supervisors, workers at all levels of the company through intensive training. In VBL effective utilization of available manpower is of critical importance, this can be achieved through refresher training, basic training, retraining, on the job training of all employees, especially training of the apprentice and young entrants. The Human Resource Development Department promotes VBL to move ahead with its objectives .The management development division looks after training and development affords for executive through in- company and external training programs .The technical division looks after training of manufacturing personnel for skill development and coaching for carrier growth as well as meeting technical manpower needs.
Chapter - 4 Review of literature: INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Human Resource or personnel management, in the sense of getting things done through people, is an essential part of every manager’s responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. “People are our most valuable asset” is a cliché, which no member of any senior management team would disagree with. Yet, the reality for many organizations is that their people remain undervalued, under trained and underutilized. The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop ‘cultural awareness’, process organization knowledge and experience for new staff members. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. Recruitment 2. Selection 3. Induction 4. Performance Appraisal 5. Training & Development
Recruitment The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning.
Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications, training and experience required.
Induction Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization.
WHAT IS “PERFORMANCE APPRAISAL”?
Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a group of employees on a given job and his potential for future development. It consists of all formal procedures used in organizations and the potential of employees. According to Flippo, “Performance Appraisal is the systematic, periodic and an important rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job.” CHARACTERISTICS
1. Performance Appraisal is a process. 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. It is scientific and objective study. Formal procedures are used in the study. 4. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. What Is To Be Appraised? Appraisal is to be done of: •Behaviour, including observable physical action, movements. •Traits, which are measured in terms of personal characteristics
Who Will Appraise? •Superiors. •Peers. •Self Appraisal. •Subordinates.
When to Appraise? •Appraisal should be done periodically. •Appraisal should be done formally as well as informally. •Appraisal should be done systematically. •Appraisal of performance should also be done after an employee is promoted or transferred to another job.
TECHNIQUES OF PERFORMANCE APPRAISAL 1.Essay Appraisal: Essay Appraisal is a detailed description of an employee’s strengths, weaknesses, past performance, potential, and suggestions for improvement. In this, the ratter describes the performance of the employee in his “own words”. He has to devote considerable time and thought for writing his analysis. He generally writes from diary of observed critical incidents kept by him Merits •It is a simple method. •It provides detailed feedback to subordinates. •The ratter is given the opportunity to express specific points regarding a particular employee’s performance. Demerits •The usefulness of the essay appraisal depends heavil y on the writing skills of the supervisor. •The use of this evaluation for rewards and validation of selection devices is severely limited. •It is unstructured. •It provides only qualitative data
2. Critical Incident Appraisal: This method requires the rater to maintain a record of key behaviours that may be critical to make the difference between doing a job effectively and doing it ineffectively. The rater writes down anecdotes that describe what the employee did that was especially effective or ineffective. It provides information based on systematic observation of actual job performance. Merits •It looks at behaviours. •The list of critical incidents tells which of employee’s behaviours are desirable and which one calls for improvements. •It emphasizes rating on objective evidence rather than on the subjective evaluation of traits. •The supervisor finds counselling easier since he knows his subordinates’ strengths and weaknesses Demerits •It is time-consuming and burdensome for appraisers to regularly write these incidents down. •Critical incidents do not lend themselves to quantification. Thus, the comparison and ranking of subordinates is difficult. •It may lead to too much supervision with t he employees feeling constantly under “watch”
3. Checklist In the checklist method, the evaluator uses a list of “behaviouraldescriptions” and ticks those behaviours that apply to the employee. The rater merely goes down the list and gives “yes” or “no” responses. He “checks” and “ticks” the items. If the employee does not possess a listed trait, he leaves it blank.
Merits •The checklist method reduces some bias, since the rater and the scorer are different. Demerits •It is difficult and costly. Because if there is a big number of job categories, a checklist of items must be prepared for each category
4. Graphic Rating Scale: It is one of the oldest and most popular methods of appraisal. In this method, the appraiser, who is usually the supervisor, is supplied with printed form, one for each person to be rated. For lower level employees, typical qualities rated are quantity and quality of work, job knowledge, cooperativeness, dependability,initiative,industriousness, willingness to accep t responsibility, attitude. For managerialpersonnel, the attributes included are analytical abilit y, judgement, leadership, communication skills, initiative, knowledge of work, creative ability, imagination, interpersonal skills, planning and decision- making abilities. The assessor goes down the list of factors and notes that point along the scale that best describes the employee. Merits •Rating scales are less time- consuming to develop and administer. •They also provide space for the rater to comment on the evaluation given for each characteristic. •Rating scales are easy to understand and require no detailed training. • They allow many employees to be rated quickly. •In these scales, more than one performance dimensi on can be included. •They permit quantitative analysis and comparison. Since the standardizedcomparisons across sections and departments can be made. Demerits •The traits indicated on the scale are mostly subjective. •This method is subject to all the rat ing errors, i.e. leniency, severity, central tendency and halo effect
5. Forced Choice: In this method, the ratter has to choose between two or more statements, all of which may be favourable or unfavourable. The rater’s job is to identify which statements is most (or in some cases least) descriptive of the individual being evaluated.
Merits •The evaluation is more objective.
Demerits •This method tends to be disliked by raters because they are forced to makedistinctions between statements that are difficult to differentiate between. •Raters also may become frustrated. •It is very difficult to keep secret of the values attached to various statements.
6. Behaviourally Anchored Rating Scales (BARS): This method has been produced by combining major elements from the critical incident and graphic rating scale approaches. These scales are descriptions of various degrees of behaviour relating to an aspect of performance dimension. This approach starts with a rating scale but it uses critical incidents to provide “anchors” which means ‘examples’ for different points on the rating scale. These examples or anchors make the rating scale more job- specific rather than trait-oriented; it is hoped, less subjective and less error made. The appraiser rates theemployees based on items along a continuum, but the points are examples of actual behaviour of the given job rather than general descriptions or traits. Merits •BARS are based on a careful analysis of the job. These scales specify definite, observable and measureable job behaviour. •This method tends to reduce rating errors. •BARS evaluations are generally upheld due to its job relatedness .
Demerits •It is rather difficult, cumbersome and expensive method. •It is time- consuming to develop. •The behaviours used are actively- oriented rather than results- oriented.
7. Ranking Methods: Under this method, a man is compared with all others without considering any specific factors. A rank is prepared by placing the best at the top and thepoorest in performance at the bottom. An employee’s performance ranking cans bedetermi ned by using either one global criterion or a number of criteria. There are various ranking methods like: i.)Simple or Straight Ranking: This method requires the rater to rank all the subordinates from best to worst. It provides for an ordinal scoring- first, second, thirdand so on. In this the ranking is usually confined to one factor, i.e. overallperformance. It is a simple method but it may involve bias. ii.)Paired Comparison: This is a modified way of man- to- man ranking. In this, each employee is compared with all the others in pairs one at a time. The number of times an employee is judged better than the others determines his rank. The number of comparisons to be made can be decided on the basis of the following formula: N (N-1)2 Where, N is the number of persons to be compared.
This method is easier and simpler than the ranking method. It is subjective because appraisal is not based on specific job related performance. It also becomes cumbersome when the number of employees to be rated is large. Iii.)Alternative Ranking: Under this method, employees are ranked from best to worst on some characteristic. Thus, a new list is created with the name of the best employee at the top and the worst at the bottom. Again, the appraiser selects the best and poorest from the remaining employees and so on until all employees have been crossed off the original list and placed on the new list.
8. Forced Distribution Ranking: This method assigns employees to different performance groups: above average, average and so on. Thus, employees are rank ordered in terms of their “performance group”, rather than as individuals. This method assumes that the level of employee job performance conforms to a normal statistical distribution. The employee performance levels conform with a bell- shaped curve. Merits •They can be helpful when the results of the performance appraisal are used to distribute rewards such as pay raises or financial incentives. •They are inexpensive to design and implement. Demerits •The magnitude of differences in employee performance is not specified. •Ranking large numbers of employees may become a very cumbersome. •Ranking is not as useful as alternative methods in providing performance feedback, or in showing employee strengths and weaknesses necessary for the development of employee training and development programmes.
9. Confidential Report: A confidential report is a report prepared by the employee’s immediate superior. It covers limited range of aspects like the subordinate’s strengths, weaknesses, major achievements or failures and information on some personality traits. It Isa descriptive appraisal mainly used for promotions and transfer purposes. Only in recent year, this has been made necessary by trade unions and courts to communicate a negative confidential report to the e employee. This method focuses on evaluating rather than developing the employee.
10. Group Appraisal Method: Under this method, a group of evaluators assesses employees. This group consists of the immediate supervisor, head of the department and a personnel expert. This group determines the standards of performance for the job, measures actual performance of employees analyses the causes of poor performance and suggests for improvements. Personal bias is minimized due to multiple evaluators, but it is consuming method.
11. Field Review Method: Under this method, the line officers do not themselves fillip the rating form. Instead, the representatives of the personnel department come to the shop- floor and interview the supervisors to obtain pertinent information about employees. The interviewer asks questions and takes detailed notes of the answers given by supervisors. These are then approved by the concerned supervisor and then placed in the employee’s service file. This method relieves the supervisor of the need for filling in appraisal forms. This is an objective method because the supervisor’s personal bias is reduced due to the active involvement of the personnel officer. This may be a time-consuming method. Its successdepends upon the competence of the interviewer.
12. Assessment Centre Method: Under this method, a group of employees is drawn from different work units. They work together on an assignment. Evaluator’s observeand rank the performance of all the employees. The employees are evaluated bothindi vidually and collectively by using simulation techniques like role playing, businessgames and in- basket exercises. In this, job- related characteristics are evaluated todetermine employee potential for promotion. The qualities generally evaluated are interpersonal skills, communicating ability, and ability to plan and organize.
13. Human Resources Accounting Method: When well- recruited and developed employees leave the Company, the financial assets are decreased due to their higher productivity. Under this method, the performance is judged in terms of costs and financial gain. Costs of human resources consist of expenditure incurred on recruitment, selection, training, compensation, etc. Contribution of employees is the money value of their productivity and creative ideas. The performance of employees can be judged on the basis of difference between their costs and contributions. To judge performance, the following factors are considered: a.)Average value of production. b.)Quality of items produced. c.)Overhead cost. d.)Cost of errors, accidents, spoilage, wastages and damages. e.) The cost of the supervision.
14. Management by Objective (MBO): Peter F. Drucker was the first who gave the concept of MBO to the world way in 1954when 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 succeeding 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 ulti mately 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 program.
RECENT DEVELOPMENTS IN PERFORMANCE APPRAISAL 1.360 degree Performance Appraisal: The term ‘360 degree’ is used to describe the comprehensive nature of feedback derived from a composite rating from peers, subordinates, superiors and occasionally customers. First developed at General Electric, US in 1992, this system has become popular in India also. GE (India), Reliance Industries, Wipro, Infosys are using this method with greater benefits. The Press has recently reported that companies like 3M and British Aerospace is introducing 360 degree appraisal and feeding the results into the formula for performance- related pay for managers. The 360degree appraisal has proved to be useful especially for providing feedback for senior managers who are often neglected at the top in appraisal terms. In 360 degree appraisal, besides assessing performance, other attributes of the assessee like talent, values, loyalty etc are evaluated by the people who are best placed to do it. Since this kind of appraisal method uses multiple raters for appraisal, this offers a variety of benefits. Firstly, there will be objectivity in rating as more than one rater is involved in the assessment process. Furthermore the raters at different levels in the Organization often observe different faces of the employee’s performance. Another key advantage of the broad group of appraisers involved in the process is that it can provide a more meaningful appraisal for employees with little contact with their workplace. In such situation traditional top- down appraisals are of little value. But besides all this one particular criticism of many 360 degree systems is that all the raters are given the same instrument, despite different nature of the contact with the appraise.
2. Upward Appraisal: Upward Appraisal involves the employee rating their manager’s performance via an anonymous questionnaire. The process is anonymous to overcome employees’ worries about providing an honest but unfavourable feedback on managerial performance. The benefits of upward appraisal include improved managerial effectiveness and leadership through ‘makeyou- better’ feedback and increased employee voice and empowerment.
3. Team- based Appraisal: In this kind of appraisal the manager appraises the team of employees working under him as a whole. Targets are set, performance measured and assessments are made and rewards are allocated as with traditional individual appraisals .The manager makes no attempt to differentiate one member from another in performance terms. The teams are then encouraged to resolve internally any performance problems or competence deficiencies in order to facilitate overall team performance and development. Team members may themselves provide informal rewards or recognition of superior performance.Sometimes it is also seen that the individual appraisals of each team member are made but not by management. Rather,
it is in the form of peer appraisal, where team members appraise each other via the use of anonymous rating questionnaire
ERRORS IN PERFORMANCE APPRAISAL
1. Rating Errors in Performance Appraisals:Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: 2. Leniency or severity:Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the rate. c) He/She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him. 3. Central tendency : This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates. 4. Halo error: A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well as on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.
5. Rater effect: This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error. 6. Primacy and Regency effects: The rater's rating is heavily influenced either by behavior exhibited by the rate during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the rate near the end of the review period (regency). For example, if a salesperson captures an
important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement.
7. Performance dimension order: Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different. 8. Spillover effect: This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior does not deserve the rating, good or bad.
Chapter 5 Methodology
The research methodology I used for this project is simple and easy in comprehending. I have used two methods for collecting the desired information regarding PepsiCo Human Resource Management and Performance appraisal which were primary and Secondary data collection method. I have conducted a field study by visiting the HRM department of Varun Beverages. I have interviewed the Head of the HR department Ms. Jyoti Verma. and got the following information. The data source: Primary as well as Secondary. The research approach: Survey Method. The research instrument: Questionnaire. The respondents: The Managers & Employees of Varun Beverages. The primary data was collected with the help of survey information. A concise questionnaire was prepared keeping in mind the information specifications
Type of Research
A Research design specifies the methods and procedures for conducting a particular study. It is a map (or) blue print to which the research is to be conducted. The research design will give a clear cut idea of the procedure to be followed for the completion of the project. The research has been carried out with certain focused objectives which need to be fulfilled after the completion of the study. The completion of these objectives will throw some light on the problem. EXPLORATORY research design has been considered as a suitable methodology for present study and for data analysis. Sample size and method of selecting sample: Sampling refers to the method of selecting a sample from a given universe with a view to draw conclusion about that universe. A sample is a representative of the universe selected for study. Convenience sampling is used in exploratory research where the researcher is interested in getting an inexpensive approximation of the truth. As the name implies, the sample is selected because they are convenient.
This non probability method is often used during preliminary research efforts to get a gross estimate of the results, without incurring the cost or time required to select a random sample.
There are two types of sampling: Random Sampling – Random Sampling is a process of selecting the sample size randomly and no choice or preference to be made about the selection of respondents for the market survey and Questionnaire to be put forth against him. Systematic Sampling – It is a sampling where the limited number of selected respondents is figure out based on some criteria so that only those respondents can be asked for the purpose of filling questionnaire. Sample size: The sample size for the survey conducted was 50 respondents. All were employees of VBL PepsiCo. Random sampling Technique was used in the survey conducted.
RESEARCH DESIGN Research design is the overall description of all the steps though which the projects have preceded from the setting of objectives to the writing of the project report. The success of the project depends on the soundness of the research design, which includes problem definition, specific method of data collection and analysis and time required for the project. SOURCES OF DATA COLLECTION THE PRIMARY SOURCES
•Collection of data with the help of questionnaire related to performance and personal traits of employees and workers. •Use of company’s performance appraisal form designed by the company’s HR Manager.
THE SECONDARY SOURCES
•Books related to performance appraisal & induction policy. •Handbook of the c ompany. •Internal survey of the organization. •Searching on the internet for the significant information.
CHAPTER 6 ANALYSIS AND INTERPRETATION:
PERFORMANCE APPRAISAL PROCESS OF VARUN BEVERAGES .
Send Appraisal form to the Department Head
Department Head fills the general information about the employee
Department Head rate the employee as per their performance on the Job
Department Head note down the key responsibility areas of the assessee
The filled form is send back to the Manager and the Administration Department for the FEEDBACK purpose
The performance Assessement Report is Finaly approved by the Managing Director
Performance Appraisal Report VARUN BEVERAGES LTD.
Feedback Approval Name: …………………
Dept: …………………
Reporting to …………………
Designation: …………….. Grade: Staff/ Worker (Plz Tick) Note: (To be filled by Dept Head as per Job Description) KRAs: (Key Responsibility Areas of the Assess) 2. …………………………………………………………………. 3. …………………………………………………………………. 4. …………………………………………………………………. Performance Assessment Report: Factors:
(Please Tick)
Job Knowledge
Attitude
Quality of Work
Contribution To Work
Serious Gap
Satisfactory Knowledge
No Interest
Careless Indifferent
Below Standard
Somewhat on mark
Poor
Average
Well Informed
Interested in work
Good Satisfactory
Good
Good Knowledge
Exceptional Expertise
Enthusiastic Always at Job very Enthusiastic
Very Good
Excellent
Excellent
Contact With other
Poor
Average
Good
Excellent
Disciplined
Poor
Average
Good
Excellent
Attendance
Poor
Average
Good
Excellent
Report of HR & Admin Dept…………………………………………………………………………………………… …………..……………………………………………………………………………………… ………………………………………………………………………………………………… …………………………………… Approved by Managing Director: …………………………………………………………………
FACTS AND FINDINGS DATA INTERPRETATION
Facts and findings:1. Majority of respondent come under the age group of 25-30. 2. In the 50 respondent 50% of the respondent are male and 50% of the respondent are female. 3. 50% of the respondents have got the experience of 5-10 years 4. 40% of the respondents are getting the salary range between 8000-10000. 5. 100% of the respondents are getting the on the job training. 6. Majority of the respondents are satisfied with their present salary. 7. 60% of the respondents are satisfied with the incentives scheme. 8. 50% of the respondents are aware with the job responsibility. 9. 60% of the respondents believe they possess the leadership qualities in them. 10.40% of the sample size reveals that qualification is an important factor in the process of recruitment and selection
LIMITATIONS 1. Single Appraisal System: There was only one way in the Company to appraise the workers i.e. the superiors or Department Head appraised the workers but there was no policy for the workers to appraise their superiors. 2. Complex Appraisal Form: The previous performance appraisal form of the Company was very complex which made the appraisal process very confusing. But this drawback was removed later on by introducing the Simple Appraisal Performa.
3. Pre-decided Appraisal Performa: The performance appraisal report/ Performa of the Company were pre- decided which did not included all the significant parameters but I was not permitted to design my appraisal form. 4. Time Limitation: As the employees were burdened with their work they could not give adequate time to the appraisal process. 5. Favouritism: I observed in some cases where the supervisor had rated high to some employees on parameters like attitude towards work, discipline due to their favouritism which I observed was not actually true for those employees as they were lazy and working at the workplace.
6. Lack of Proper Appraisal Method: The Company is using Graphic Rating Scale Method of performance appraisal for years which is not enough keeping in mind the changing environment. The Company should be flexible to change the appraisal technique as per the changing situation .In the current scenario for having a clear and complete picture of the overall performance of the employees 360 degree Appraisal should be introduced in the Organization where the employee’s performance appraisal is made the superiors, peers subordinates, clients, etc. 7. Limited Scope: In the Company I was not permitted to evaluate the data for the appraisal purpose. The Company had already set its evaluation and appraisal system and I was bound to use the same data which was collected by the supervisor himself.
DATA ANALYSIS & INTERPRETATION OF STAFF SAMPLE SIZE: 30 JOB KNOWLEDGE S-2
S-3
S-4
Serious Gap
1
Satisfactory Knowledge
2
5
2
Well informed
8
2
1
Good knowledge
4
1
1
Exceptional expertise
1
1
1
16 14 12 Serious Gap
10
Satisfactory knowledge 8
Well informed Good knowledge
6
Exceptional Expertise 4 2 0 S-2
S-3
S-4
Interpretation:
Most of the employees have sufficient knowledge to perform their job effectively.
Attitude towards Work:
S-2
S-3
S-4
No interest
1
Careless
1
2
Interested in work
2
2
5
Enthusiastic at job
3
4
2
Always very enthusiastic
3
5
14
12
10 Always very ethusiastic 8
Enthusiastic at work Interested in work
6
Careless No interest
4
2
0 S-2
S-3
S-4
Interpretation:
More than 90% of employees have positive and enthusiastic attitude towards work.
Quality of work:
S-2 Below standard
S-3
S-4
2
2
Somewhat on mark
2
5
4
Good satisfactory
3
4
2
Very Good
1
1
Excellent
3
1
14 12 10 Excellent 8
Very good Good satisfactory
6
Somewhat on mark 4
Below standard
2 0 S-2
S-3
S-4
Interpretation : A considerable employee quality of work is not up to the mark, the staff employee need to improve their quality of work.
Contribution to work:
S-2
S-3
S-4
Average
5
2
1
Good
2
6
4
Excellent
1
4
5
Poor
14
12
10 Excellent
8
Good 6
Average Poor
4
2
0 S- 2
S-3
S-4
Interpretation:
All the workers are contributing well towards the work.
Discipline : S-2
S-3
S-4
Average
1
3
2
Good
6
4
4
Excellent
4
4
2
Poor
12
10
8 Excellent Good
6
Average Poor
4
2
0 S- 2
S-3
S- 4
Interpretation:
More than half of employees are well discipline at the work.
Contact with other
S-2
S-3
S-4
Poor
1
2
2
Average
2
4
4
Good
4
3
5
Excellent
2
1
14 12 10 Excellent
8
Good 6
Average Poor
4 2 0 S-2
S-3
S-4
Interpretation:
Most of the employees need to work on improving their relationship and contact with others.
ATTENDANCE S-2
S-3
S-4
Poor
1
Average
3
2
1
Good
5
6
4
Excellent
2
4
2
14
12
10 Excellent
8
Good 6
Average Poor
4
2
0 S-2
S-3
S-4
Interpretation:
Almost all the members are punctual and attentive.
QUESTIONNAIRE RESPONSE Q4.
AGE
20-30 30-40 40-50 50 and above
Majority of the employees are from age 30 to 50. Q5.
Satisfaction with PA process
YES NO
Majority of the employees are satisfied with the current PA process.
Q6.
How frequently should the Performance Appraisal be conducted in the Company
After 3 months After 6 months Once in year
Many of the employees say that the PA should be conducted after every 6 months. Q7.
Do you think the Company should stick to the same Appraisal techniques forever? 35 30 25 20 Do you think the Company should stick to the same Appraisal techniques forever?
15 10 5 0 Yes
No
Employees believe in changing the organization techniques with time.
Q8.
Do you have sufficient knowledge of the present job?
YES NO
Most of the employees are confident about their skills. Q9.
Is Performance Appraisal really effective in enhancing the performance of the employees?
YES NO
Most of the employees think that PA is very effective in improving the performance of the employees. It acts as a motivation.
Q10.
Do you think you have achieved the target performance level?
Significant Partial
Most of the employees are confident about their work done.
Q11.
What role does the Performance Appraisal play in the overall success of the Company
Significant Partial Minor
More than half of the employees of VBL think that PA plays important role in the success of the company.
Q12.
Is there a need of Post Appraisal interview in the Organization
YES NO
Employees believe that Post Appraisal interview should be conducted in VBL.
Q13.
Do you think separate training should be given to the raters for the appraisal programme ?
YES NO
More than half of the employees want that separate training should be given to the raters for the appraisal; this shows that somehow they are not satisfied by the current appraisal being done by the seniors.
Q14.
What role does the Performance Appraisal play in maintaining the cordial relationship between superiors and subordinates?
Major role Minor role
Employees believe that PA helps in improving the relationship between the seniors and the subordinates.
CHAPTER 7 CONCLUSION
From the entire study on the project on the topic, it is being concluded that the performance appraisal programme is very important for any Organization. The growth and success of the Company is mostly dependent on the efficiency and effectiveness of the human resource which can be properly measured through the effective performance appraisal programme. The Performance Appraisal Programme helps the management in assessing the current level of performance of the employees and can find the variance or gap between the current and desired level of performance of employees. In context of the Company under study i.e. Varun Beverage ltd (PepsiCo) , the Company has analyzed the performance of its staff members and the workers taking various parameters namely Job Knowledge, Attitude towards Work, Quality of Work. It is being analyzed that the employees have adequate job knowledge, they are very enthusiastic at work, they are punctual, well disciplined and maintain good relationship with others. On the other hand the quality of work is the aspect that draws the management attention for improvement. Through this appraisal the management could find out there as where the performance is lacking behind and could detect and analyze the root cause of the problem and try to remove the deviation to improve the overall performance of the Organization.
QUESTIONNAIRE SAMPLE SIZE: - 50 QUESTIONNAIRE FORM 1. NAME: ………………………………… 2. ADDRESS: ……………………………… 3. PHONE NO.: …………………………… 4. AGE
O 20-30 O 30-40 O 40-50 O 50 and above 5. Are you satisfied with the Performance Appraisal Process?
O Yes O No. 6. How frequently should the Performance Appraisal be conducted in the Company?
O After 3 months O After 6 months O Once in a year 7. Do you think the Company should stick to the same Appraisal techniques forever?
O Yes O No 8. Do you have sufficient knowledge of the present job?
O Yes O No.
9. Is Performance Appraisal really effective in enhancing the performance of the employees?
O Yes O No
10. Do you think you have achieved the target performance level?
O Significantly O Partially
11. What role does the Performance Appraisal play in the overall success of the Company?
O Significantly O Partially O Minor 12. Is there a need of Post Appraisal interview in the Organization?
O Yes O No 13. Do you think separate training should be given to the raters for the appraisal?
O Yes O No 14. What role does the Performance Appraisal play in maintaining the cordial relationship between superiors and subordinates?
O Major O Minor
SUGGESTIONS
Some suggestions to increase the usefulness of study: 1. Feedback: -
Efforts should be made to communicate the ratings to both the employees as well as the raters. The employees should be informed about their performance and should also be provided adequate counselling on how to fill the gap to reach the desired performance level. 2. Simplicity:
The Performance Appraisal Performa should be made as simple as possible toincrease the effectiveness of the programme and reduce the complexity and unnecessary confusion. 3. 360 degree Performance Appraisal:
360 degree performance appraisal should be introduced in the Organization to have a more accurate picture of the performance of the employee. 4. Trained Raters:
The Evaluators should be given adequate training in order to provide them knowledge and skills in designing appraisals, conducting post appraisal interviews and correcting the rating errors. 5. Post Appraisal Interview:
- After the appraisal of the employees, a post appraisalinterview should be conducted to know the difficulties of the work and training needs of the employees. 6. Unbiased:
The entire performance appraisal process must be unbiased. The rater must rate the employee on the basis of his real work performance and must also avoid favouritism while rating. 7. Frequent Appraisal:
The performance appraisal should be done at regular interval i.e. twice a year so that a perfect comparison of skills could be done. It should be done after 2 months for the new employees.
