Hrm Project Report Pds

7/28/2019 Hrm Project Report Pds

1/33

PROJECT REPORT

Project Title

PERFORMANCE APPRAISALSYSTEM&ITS EFFECTIVENESS IN ANORGANIZATIONREPORT SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE

POST GRADUATE DIPLOMA IN MANAGEMENT(APPROVED BY AICTE)

(2007-2009)S U B M I T T E D

T O S U B M I T T E D

B Y Mahendra Asati

INJ BUSINESS SCHOOL

GREATER NOIDACERTIFICATEThis is to certif y that__________________ , ______ _________ Prasad is a bonafied

student of two year regular course of PGDM(post graduation diplomain management) in our

institute.The project titled

"Study of Performance appraisal in an organization andit's effectiveness "

is her original work.The student bears a good moral character.Faculty (HR Department)


2/33

ACKNOWLEDGEMENTMy sincere thanks to faculty supervisor __________________ and

agencys uper v i s o r __ ___________________ under whos e ab l e gu i dance andk in dc o o p e r a t i o n I w a s a b l e t o c o m p l e t e t h e p r o j e c t w o r k t i t l e d

"S tud y of Performance Appraisal System and its Effectiveness in an Organisation"

.A l l t hos e empl oyees o f Dabur I nd i a L t d des e r ve s pec i a l t hanks f o r t he i r cooperation and hel p in the collection of necessary and relevan t material for thiswork.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 thesole responsibility of the

shortcoming, if any, in the study.

_______________________


3/33

CONTENTS

Page Nos.

Chapter 1: IntroductionChapter 2: Objective and Methodology of the StudyChapter 3:

Oraganisation ProfileChapter 4: Performance Appraisal- Theoretical ReviewChapter 5:

Performance Appraisal System in

Dabur India Ltd.Chapter 6: Analysis and Interpretation of DataChapter 7: Conclusion and

SuggestionsANNEXURES


4/33

CHAPTER 1 INTRODUCTION


5/33

CHAPTER 1

TITLE OF THE PROJECT:

Study of Performance Appraisal System and ItsEffectiveness in an Organization

INTRODUCTIONThe history of performance appraisal is quite brief.Its roots in the early 20th century can be traced to Taylor's pioneering Time an d

Mot ion s tudies . But th i s i s not very he lpful , for the same may be sa idaboutalmost everything in the field of modern human resources management.As a distinct and formalmanagement 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 , t he pract ice of appra isal is a very ancient art. In the scale of things historical, itmight well lay claim to being the world's secondoldest profession!There is, says Dulewicz

(1989), "... a basic human tendency to make judgmentsabout 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 systemo f a p p r a i s a l , p e o p l e wi l l t e n d t o j u d g e t h e w o rk p e r f o r m a n c e o f o t h e r s , including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical andlegal

problems in the workplace. Without a structured appraisal system, thereis l i t t l e ch an ce o fens ur i ng tha t t he judg men ts mad e w i l l be law ful , fai r , defensible and

accurate.P e r f o r m a n c e a p p r a i s a l s y s t e m s b e g a n a s s i m p l e

m e t h o d s o f i n c o m e justification. That is, appraisal was used to decide whether or not

the salary or wage of an individual employee was justified.T h e p r o c e s s w a s f i r m l yl i n k ed t o m a t e r i a l o u t c o m es . I f a n e m pl o ye e ' s performance was found to be

less than ideal, a cut in pay would follow. On theother hand, if their performance was better than

the supervisor expected, a payrise was in order.Little consideration, if any, was given to thedevelopmental possibil i t ies of appraisal . If was fel t that a cut in pay, or a

rise, should provide the onlyrequired impetus for an employee to either improve

or continue to performwell.Sometimes this basic system succeeded in getting the results that

wereintended; but more often than not, it failed.For example, early motivational researchers wereaware that different peoplewith roughly equal work abilities could be paid the same amount of

money andyet have quite different levels of motivation and performance.Th es e

obs e r va t i ons wer e conf i r med i n empi r i ca l s t ud i es . Pay r a t e swer e i mpor t an t , yes ; bu t t hey wer e no t t he on l y e l em en t t ha t had an i mpac t

o n employee performance. It was found that other issues, such as morale and self-esteem, could

also have a major influence.As a result , the traditional emphasis on reward outcomeswas progress ivel yrejected. In the 1950s in the United States, the potential usefulness of

appraisalas tool for motivation and development was gradually recognized. The generalmodel of

performance appraisal, as it is known today, began from that time.

Modern AppraisalPe r f o r mance appr a i s a l may be de f i ned as a s t r uc t u r ed f o r ma l i n t e r ac t i on

between a subordinate and supervisor, that usually takes the form of a periodicin t e rv i ew

(an nua l or i n wh ich the wor k pe rform anc e of the sub ordi nat e i s examined anddiscussed, with a view to identifying weaknesses and strengthsas well as opportunities for

improvement and skills development.In many organizations -but not all -appraisal results are

used, either directly or indirectly, to help determine reward outcomes. That is, the appraisalresults areused to identify the better performing employees who should get the majorityof


6/33

available merit pay increases, bonuses and promotions.By the same token, appraisal results are

used to identify the poorer performerswho may require some form of counseling, or in

extreme cases, demotion,dismissal or decreases in pay. (Organizations need to be aware oflaws in their country that might restrict their capacity to dismiss employees or

decrease pay.)

Whether this is an appropriate use of performance appraisal -the assignmentandjustification of rewards and penalties -is a very uncertain and contentiousmatter.

Controversy, ControversyF e w i s s u e s i n m a n a g e m e n t s t i r u p m o r e c o n t r o v e r s y t h a np e r f o r m a n c e appraisal.There are man y reputab le sources -r esea rcher s, management

commentators, p s y c h o m e t r i c i a n s - w h o h a v e e x p r e s s e d d o u b t s a b o u t

t h e v a l i d i t y a n d reliabil ity of the performance appraisal process. Some have

even sugges tedthat the process is so inherently flawed that it may be impossible to perfectit(see Derven, 1990, for example). At the other extreme, there are many strongadvocates of

performance appraisal. Some view it as potentially "... the mostcrucial aspect of organizational

life" (Lawrie, 1990).Between these two extremes li e va rious schools of bel ief. Whileall endorsethe use of performance appraisal, there are many different opinions on

howand when to apply it ,There are those, for instance, who believe that

p e r fo r ma nce a pp r a i s a l has many important employee development uses, but scorn any

attempt to link the process to reward outcomes -such as pay rises and promotions. Thisgroup b e l i e v e s t h a t t h e l i n k a g e t o r e w a r d o u t c o m e s r e d u c e s o r

e l i m i n a t e s t h e d e v e l o p m e n t a l v a l u e o f a p p r a i s a l s . R a t h e r t h a n

a n o p p o r t u n i t y f o r c o n s t r u c t i v e r e v i e w a n d e n c o u r a ge m e n t , t h er e w a r d - l i n k e d p r o c e s s i s perceived as judgmental, punit ive and harrowing.

For example, how many people would gladly admit thei r work problems i f ,

at th e sa me ti me , th ey knew that their next pay rise or a much-wanted promotion

was riding on anappraisal result? Very likely, in that situation, many people woulddeny or downplay their weaknesses. Nor is the desire to distort or deny the truth

confined to the person beingappraised. Many appraisers feel uncomfortable with

the combi ned role of judge and executioner.Such re luctance is not d ifficu lt tounderst and. Appra iser s oft en know their a p p r a i s e s w e l l , a n d a r e

t y p i c a l l y i n a d i r e c t s u b o r d i n a t e - s u p e r v i s o r r e l a t io ns h ip . The y

work together on a dai ly bas is and may, at t imes , mixsocial ly. Sugges t ingthat a subordinate needs to brush up on certain work ski ll s is on e th in g; gi vi ng

an ap pr ai sa l re su lt th at ha s t he di re ct ef fe ct of negating a promotion is

another.T h e r e s u l t c a n b e r e s e n t m e n t a n d s e r i o u s m o r a l e

d a m a g e , l e a d i n g t o workplace disruption, soured relationships and productivitydeclines.O n t h e o t h e r h a n d , t h e r e i s a s t r o n g r i v a l a r g u m e n t

w h i c h c l a i m s t h a t performance appraisal must unequivocally be linked to reward

outcomes. Theadv oca tes of this app roa ch say tha t o rgan iza t ion s m ust hav e a

p ro cess b ywhich rewards -which are not an unlimited resource -may be openly andfairlydistributed to those most deserving on the basis of merit, effort and results.

There is a critical need for remunerative justice in organizations. Performanceappraisal -whatever its practical flaws -is the onl y process avail able to he lpachieve fair, decent


7/33

and consistent reward outcomes. It has also been claimedthat appraises themselves are

inclined to believe that appraisal results should be linked directly to reward

outcomes -and are suspicious and disappointedwh en to ld th is is no t th e ca se.Ra t he r t han f ee l i ng r e l i eved ; appr a i s es mays us pec t t ha t t hey a r e no t be i ng

to ld th e wh ol e tr u th , or th at th e ap p ra is al process is a sham and waste of time.

The Link to RewardsRecent research (Bannister & Balkin, 1990) has reported that appraises seemto have

greater acceptance of the appraisal process, and feel more satisfiedwith it, when

the pro ces s i s di re ct l y l ink ed to rew ards . Suc h f ind ing s are a serious challengeto those who feel that appraisal results and reward outcomesmust be strictly isolated from each

other. There is also a group who argues thatthe evaluation of employees for reward

purposes, and frank communica tionwi th th em about thei r pe rfor mance , are par t of

the basic responsibilities of management. The practice of not discussing rewardissues while appraising p e r f o r m a n c e i s , s a y c r i t i c s , b a s e d o n

i n c o n s i s t e n t an d m u d d l e d id e a s o f motivation.In many organizat ions , thi s

inconsist enc y i s aggravated by the practi ce of having separate wage and salary reviews, inwhich merit rises and bonuses aredecided arbitrarily, and often secretly, by supervisors and

managers.

There are basically three purposes to which performance appraisal can be put.First, it can beused as a basis for reward al location. Decision as to who getss a l a r y i n c r e a s e ,

p r o m o t i o n , a n d o t h e r r e w a r d s a r e d e t e r m i n e d b y t h e i r performance

evaluation. Second, these appraisals can be used for identifyingareas wheredevelopment efforts a re needed. The performance appraisal is a major tool for

identifying deficiencies in individuals. Finally it can be used asa c r i t e r i on aga in s t whi ch

se le ct io n de vi ce s an d de ve lo pm en t pr og ra ms ar e 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

beappraised against1. Absolu te st andards2. Relative

standards3 . O b j e c t i v e s

PERFORMANCE MANAGEMENTSince organizations exits to achieve goals, the degree of success that individualemployees havein reaching their individual goals is important in determiningorganization

effectiveness.Performance system is fundamentally, a feed back process, which

requ iresustained commitment. The cost of failure to provide such feedback may resultin a loss

of key professional employees, the continued poor performance of e m p l o y e e sw h o a r e n o t m e e t i n g p e r f o r m a n c e s t a n d a r d s a n d a l o s s o f

commitment by employees, in sum, the myth that the employee know what.t h e y

a r e d o i n g w i t h o u t a d e q u a t e f e e d b a c k f r o m m a n a g e m e n t c a n b e

a n expensive fantasy.


8/33

THE APPRAISAL PROCESS

1. Establishing Performance Standard

2. Communicate Performance expectations to employees

3. Measure actual performance4. Compare actual performance with standards

5. Discussion with the employees and identification development programsto bridge the gap.

6. Initiate action

THE PURPOSE OF APPRAISING PERFORMANCEIn general the appraisal systems serve a two fold purpose

1. To improve the work performance of employees by helping themrealize and use their full

potential in carrying out their firms mission.

2. To provide information to employees and managersForuse in making ,work related

decisions.More specifically appraisals serve the following purposes.

a) Appraisals provide feedback to employees and help the. "' managementidentify the areaswhere development efforts are "' needed to bridge thegaps thereby serving as vehiclesfor

personal " and career development.

b) It helps management spot individuals who have sp eci fi c sk ill s so that their

promotions/transfer are in line with organizational requirements.

c) Appraisal serve as a key input foradministering a formal organisationreward andpunishment system.

d ) T h e p e r f o r m a n c e s y s t e m c a n b e u s e d a s a c r i t e r i o n a g a i n s tw h i c h selection devices and development programs are validated.

R E Q U I R E M E N T O F T H E P E R F O R M A N C E

M A N A G E M E N T SYSTEM.

Reliability: The foremost requirement of a sound system is reliability. In this c o n t a c t i t

r e f e r s t o c o n s i s t e n c y o f j u d g m e n t . F o r a n y g i v e n e m p l o y e e ,appraisals made by raters working independently of one another should agree c l o s e l y . B u t

r a t e r s w i t h d i f f e r e n t p e r s p e c t i v e ( e . g . s u p e r v i s o r s , p e e r s ,

subordinates) may see the same individuals job performance very differently.To p rov i d erel i abl e dat a, e ach r ate r mus t hav e an a deq uat e opp or tu ni t y to observe whatthe 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 a l l ,for i t i s t rue tha t human resources program mus t have the suppor t of . those

who will use them. Unfortunately, many organizations do not put mucheffort into garnering the

front end support and participation of those who will use the appraisal system.


9/33

Ult imat ely i t i s man age men t 's resp onsi bi l i ty to def ine as clear ly as possible

the type and lev el of job behav iour desi red of employees.It is important to enlist the

active support and cooperation of subordinates bymaking explicit what aspects of jobperformance they will be evaluated on.

Practicality: This implies that appraisal instruments are easy for managers andemployees to

understand and to use.Fo r yea rs , pe rso nn el sp ec ia l is ts ha ve se arc he d for the'Pe r f ec t ; appr a i s a l me t hod as i f i t wer e s ome k i nd o f mi r acu l ous cu r e f o r many p i t f a l l s t ha t plague organizations. Such a method does not exist. In tomorrows world

of work far more emphasis needs to be placed on process issues. Factors such astiming and

frequency are no less important. In sum performance appraisal isa dialogue involving peopleand dat a. Both technica l and human issues are involved. Neither can be overemphasized at

the expense of the other.

WHO SHOULD EVALUATE PERFORMANCE?The mos t f undament a l r equ i r emen t f o r any r a t e r i s t ha t he o r s he has an

.adequate opportunity to observe the rates job performance over a reasonable period

of time. This suggest several possible raters.The immediate supervisor: Generallyappraisal is done by this person. He is probably the most familiar with the individual's

performance and in most jobshas had the best opportunity to observe actual job performance.

Further more,the imm edi ate sup ervi sor i s p rob abl y be s t a ble to rela te the

i nd iv i dua l 's performing to department and organizational objectives.In som e j obs suc has outs ide sales , law enforcement and teaching, theimmediate supervisor may

observe a subordinate's actual job performance

r a r e l y ( and i nd i r ec t l y t h r u wr i t t en r epor t s ) . Her e j udgment o f p ee r sp l ayimportant role. However, there is a danger of potential bias.Subordinates: Appraisal by

subordinates can be useful input to the immediatedevelopment. Subordinates know first hand the

extent to which the supervisor actually delegates, how well he communicates, the type

of leadership he hasand the extent to which he or she plans and orgasms.Self appraisal: Onone hand it improves the rate's motivation and moral, on theother it tends to be more lenient, less

variable and biased. The evidence on theaccuracy of self assessment is fairly complex.In industry

it is seen that feed back/ input is taken from various sources -Peers,subordinates, superiorse tc . Some companies have gone s tep ahead in t ak ingf e e d b a c k f r o m t h e

c u s t o m e r s a n d i n t e g r a t i n g i t i n t o t h e p e r f o r m a n c e management

process.

APPROACHES TO PERFORMANCE MANAGEMENTThe traditional approach: The one dimensional modelThe Job Define what results Performance

contacthave to e achievedDefine a set of keyobjectives against

theaccountabilitiesAccountabilities i.e,outputReview performanceagainst the keyobjectivesInthis model job expectations are defined in terms of what results have to

bea c h i e ved . Th i s mo de l d o es n ' t h av e a l on g t e rm fo cu s a nd can ' t b e us e d

f o r employee development and career path planning,

A satisfactory performance implies doing a job effectively and efficiently, witha m i n i m u md e g r e e o f e m p l o y e e - c r e a t e d d i s r u p t i o n s . E m p l o y e e s a r e

performing well when they are productive. Yet productivity itself implies bothc o n c e r n f o r

e f f e c t i v e n e s s a n d e f f i c i e n c y . E f f e c t i v e n e s s r e f e r s t og o a l accomplishment. Efficiency evaluates the ratio of inputs consumed to outputsac hi ev ed .


10/33

The greater the output for a given input , the more ef f icient theemployees .

Similarly, if output is a given, consumed to get that output results ingreater efficiency.There are

basically three purposes to which performance appraisal can be put.First, it can be used as a basisfor reward allocations. Decisions as to who getss a l a r y i n c r e a s e s , p r o m o t i o n s , a n d

o t h e r r e w ar d s a r e d e t e r m i n e d by t h e i r perf ormance eval ua tion. Second,

these appraisals can be used for identifyingareas where development efforts areneeded. Management needs to spot thoseindividuals who have specific skill or knowledgedeficiencies. The performancea p p r a i s a l i s a m a j o r t o o l f o r i d e n t i f y i n g t h e s e

d e f i c i e n c i e s . F i n a l l y , t h e p e r fo r ma n ce ap p ra i sa l c a n b e u s ed a s a

c ri t e ri on agai ns t wh i ch s e l ec t io n devices and development programs are validated.


11/33

Chapter 2


12/33

Chapter 2

OBJECTIVE&

METHODOLOGY

Chapter 2OBJECTIVE & METHODOLOGY

1. Objective of the study

Th i s p r o j ec t a i ms a t s t udy i ng t he s ys t em of pe r f o r mance app r a i s a l andi t s effectiveness in an organization. Performance appraisal is the most significantandindispensable 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:

To know the present system of performance appraisal

To know the extent of effectiveness of the appraisal system

To identify and know the area for improvement system

2. Sample of the study

The population covered for the present study consisted of employee belongingto su pe r vi so r yand th e l evel above . For the p urpose of th i s s tu dy, s urveycovered the

employee of DABUR INDIA LTD. falling under supervisor andthe level above.The

study covered a sample of 100 employee belonging to supervisory level and above.

The study covered a sample of 100 employee belonging to supervisory leveland

above.

3. Methodology of the projectT h e p r o j e c t w o r k h a s b e e n c a r r i e d o u t i n t h r e e s t a g e s ,

a s t r u c t u r e d q ue st io nn ai re wi th ob je ct iv e a nd qu es ti on wa sco mm un ic at ed te st ed an d finalize. During the second stage, the questionnaire was

administered to theemployees at Dabur India Ltd. by contacting them. The work

rela ting to da taentry compilation, data analysis and report writing constituted the thirdstage.Interview index was also used at some places to get information on the projectsubject.The

details of the methodology adopted are presented below:

The QuestionnaireKeeping in v iew the objective of the stud y, questionnair e was designed and tested on

few employees. After getting the proper response and sanction fromthe concerned department

the questionnaire was finalized.

Response to QuestionnaireI n a l l 96 ques t i onna i r e wer e g i ven t o empl oyees f a l l i ng i n t he ca t egor y o f

s u p e r v i s o r s a n d a b o v e . O u t o f w h i c h 4 8 c o u l d b e c o l l e c t e db a c k d u l y c o m p l e t e d . T h e r e s e a r c h e r i n d i v i d u a l l y c o n t a c t e d t h e

e m p l o y e e s t o g e t response on the questionnaire.


13/33

Data entry and analysisI t has been an up h i l l t a s k t o en t e r t he enor mous da t a r ece i ved t h r ough

t h e questionnaire which consisted nearly 20 questions. Response to the descriptivequestions though very few but was valuable for the purpose of study. Hencethese

were further structured in time with the system adopted for compilation and data

analysis.

LimitationsMany employees gave guarded answers to some crucial questions.Some of them did not fill the

questionnaire due to lack of timeResponse could not be collected from the total sampleselected.Some o f the questionnaire could no t be completed due to reasons other

thantime factor.The confidentiality of the system created some problem in getting information.


14/33

Chapter 3ORGANISATION PROFILE


15/33

Chapter 3 ORGANISATION PROFILE.

HistoryThe s t o r y o f Dabur goes back t o 1884 , t o a young doc t o r a r med wi t h

a degree in medicine and a burning desire to serve mankind. This young man,Dr. S. K.

Burman, la id the foundat ions of what is toda y known as Dabur India Limited. Fromthose humble beginnings, the company has grown intoIndia's leading manufacturer of consumerhealthcare, personal care and food pr o du ct s. Th is ph en om en al p ro gr es s h as se e n

many milestones, some of which are mentioned below:

1884-Dr. S K Burman lays the foundation of what is today known asD ab ur In d i a Li m i t ed .

S t a r t i ng f r om a s ma l l s hop i n Ca l cu t t a , he began a d i r ec t ma i l i ng s ys t em

t o s end h i s med i c i nes t o even t hes mal l e s t o f v i l l ages i n Benga l . The b r andna me Da bu r is de ri ve d from the words

'Da'forDaktar

or doctor and'bur'from Burman.

1896-As the demand for Dabur products grows Dr. Burman feels then ee d fo r m ass p ro du c t ionof some of his medicines. He sets up asmall manufacturing plant at Garhia near

Calcutta.

Early 1900s-The next generat ion of Burmans take a consciousdecis ion to enter the

Ayurvedic medicines market, as they b elievethat it is only through Ayurveda that

the healthcare needs of poorIndians can be met.

1919-The search for processes to suit mass production of Ayurvedicmedicines without compromising

on basic Ayurvedic principles leadsto the setting up of the first Research & Development

laboratory atDabur. This initiates a painstaking study of Ayurvedic medicines asmentioned inage-old scriptures, their manufacturing processes andhow to utilize modern

equipment to manufacture these med icines without reducing the efficacy of these drugs.

19208-A manufacturing facility for Ayurvedic Medicines is set up at Narendrapur and Daburgram.

Dabur expands its distribution network to Bihar and the northeast.

1936-Dabur India (Dr. S K Burman) Pvt. Ltd. is incorporated.

1940


16/33

-Dabur diversifi es in to personal care produ cts wi th the launch of its Dabur Amla Hair

Oil. This perfumed heavy hair oil catches theimagination of the common man and film

stars al ike and becomesthe largest hair oil brand in India.

1949

-Dabur Chyawanprash is launched in a tin pack and becomesthe first brandedChyawanprash of India.

1956-Dabur buys its first computer. Accounts and stock keeping areone of first operations to becomputerized.

1970-Dabur expands its personal care portfolio by adding oral carep r o d u c t s . D a b u r L a l D a n t M a n j a n i s l a u n c h e d a n d c a p t u r e s t h e Indian

rural market.

1972-Dabur sh ifts base to Delhi from Calcutta . S tarts production from a hired manufacturing

facility at Faridabad.

1978-Dabur launches the Hajmola tablet. This is the first time that aclassical Ayurvedic medicine is

branded -from Shudhabardhak bati toHajmola tablet.

1979-T he Dab ur Re se arc h Fo un da tio n (DR F), an in de pe nd en t company, is set up to

spearhead Dabur's multi-faceted research.

1979Commercial production starts at Sahibabad. This is one of thel a r g e s t a n d m o s tm o d e r n p ro d u c t i o n f a c i l i t i e s f o r A yu r v e d i c medicines in India at this time.

1984- T h e D a b u r b r a n d t u r n s 1 0 0 b u t i s y o u n g ~ e n o u g h

t o experiment with new offerings in the market.

1986- Dabur becomes a pub l i c l i m i t ed company t h r ou gh r eve r s emer ge r w i t h

Vidogum Limited, and is re-chr is tened Dabur IndiaLimited.

1989-Hajmola Cand y is launched and captu res t he imagin ation of children and establishes a

large market share.

1992


17/33

-Dabur enters into a joint venture with Agrolimen of Spain for

manufacturing and marketing confectionery items such as bubble gums in India.

1993- D a b u r s e t s u p t h e o n c o l o g y f o r m u l a t i o n p l a n t a t B a d d i , H i m a c h a l

Pradesh.

1994-Dabur India Limited comes out with its first public issue. TheRs.10 share is issued at a

premium of Rs.85 pe r share . The issu e is oversubscribed 21 times.

1994-D ab ur r eo rg an iz es i ts b us in ess w ith sa les an d ma rk eti ng operations being

divided into 3 separate divisions.

1994

- D a b u r en t e r s th e o n c o l o gy ( a n t i - c an c e r ) m ar k e t w it h t h e l a u n c h o f I n t a x e l ( P a c l i t a x e l ) . D a b u r b e c o m e s o n l y t h e s e c o n d company in the

world to launch this product. The Dabur ResearchFoundation develops the unique

eco-friendly process of extractingthe drug from the leaves of the Asian Yew tree.

1995-Dabur enters into a joint venture with Osem of Israel for foodand Bongrain of France for cheese

and other dairy products.

1996-Dabur launches Real Fruit Juice which heralds the company'sentry into the processed foods

market.

1997-The Foods division is created, comprising of Real Fruit Juiceand Hommadeco ok ing pa ste s t o fo rm th e co re of thi s d iv isi on 's product portfolio.

1997-Pr oje ct STA RS (Str ive To Ach iev e Rec ord Su cce sses ) i s initiated by the

company to achieve accelerated growth in the comingyears. The scope of this project is strategic,

structural and operationalchanges 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 ExecutiveOfficer. ..

1999-2000-Dabur achieves the Rs.IOOO crore turnover mark What is that life worth which cannot bring

comfort to others", these wordsof Dr. S K Burman have inspired generations of Dabur. Keepingr" thesegolden words i n mind, Sandesh or the Sustainable Development Society was


18/33

set up to carry out welfare activities aimed at improving theA quality of life of the rural people in

its area of operation. This society isgiven complete financial and managerial support by Dabur

India Limited.

PRODUCTS AND SERVICESA vast array of products touching the lives of almost every individual, from aninfant to a

grand old man, from poor to rich; that's how the Dabur's range of health personalcare and food products could be best explained . To day Dabur trust has traveled beyondthe boundaries of India and is available in more than50 countri es worldwide. These value

for money products have made Dabur ahousehold 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 TonicsChyawanprashThe leader in the chyawanprash market in India, Dabur Chyawanprash isone of the

most well known Ayu rvedic produc ts in India and abroad. An effective herbal immune

modulator, Dabur Chyawanprash has the essentialgoodness 'of amla and over 50 otherherbs. Dabur has conducted severalclinical trials on this product, which confirm its efficacy

as a unique productthat strengthens the body from within.

DigestivesHajmola TabletsHajmola Tablets are the first classical Ayurvedic products to be branded and positioned as fun-

filled product with medicinal properties. It finds mentionin Ayurvedic scriptures as

Ks hudhavar dhak Ba t i , and was b r anded as

Hajmola, a name derived from Hajma which means digestion in Urdu. It isavailable in regularand tamarind flavour.

Hajmola CandyTo cash in on the brand equity enjoyed by Hajmola, Dabur launched HajmolaCand y i n 1 98 9 .Si nc e t he n, th e c om pa ny ha s a dd ed Man go an d t am ari nd flavors besides the

regular one.

Pudin HaraOne of the oldest products in Dabur portfolio, Pudin Hara is available in liquidas well ascapsule form. It has a special combination of mint oils and curesgastric problems

without any side effects.The company has added effervescent powder with goodness of

Mint for gasand acidity and named it Pudin Hara G.

HingoliAsafoetida or Hing is mentioned in Ayurveda as an effective aid in digestion,a n d is

us ed a l o t i n I nd i an cook i ng . Dabur ' s H i ngo l i has a l l t he goodnes s o f asafoetida and other herbs.

Childcare ProductsDabur Lal TailThe largest baby massage oil in India, it has the goodness of herbs which helpsin strengthening

the bones of infants.

Dabur Janma GhuttiThis Ayurvedic preparation helps in strengthening the digestive system of new borns.

Women Care ProductsEfarelle ComfortA herbal medicine in self gel capsule form to help overcomeabdominal painduring PMS. A combination of natural oils, this formulation gives

immediate relief from pain without any side effects.The larges t divis ion in terms of sales,

the Family Products Division of Dabur has in its portfolio hair care and skin careproducts , oral care and se lect foodslike honey.


19/33

Hair & Skin CareDabur is the leader in hair care products in India, and has covered almost all thecategories of hair

oils.Dabur Aml a Ha i r O i l - As a b r and has made i t s mar k beyond I nd i a and i s

a leading hair oil brand in Middle East and Africa. A perfumed heavy hair oil, itis Dabur's largest

brand.Dabur Special Hai r Oi l -I t is li gh t hai r oi l that combines the natura l hai r careproperties of lemon and hibiscus.Vatika -The fastest growing hair oil brand of India, Vatika hassingle handedlycreated an altogether new category of herbal enriched natural oils. The

Vatikarange also includes an herbal shampoo, which has made its mark in the

veryfirst year of its launch in the competitive shampoo market of India.The compan y hasrecently launched Vatika Anti -Dandruff Shampoo havin gherbal ingredients to fight the

problem of Dandruff Gulabar i -Rose water der ived from bes t of Indi an roses makes th e

skin suppleand glowing.

Oral CareDabur Lal Dant Manjan -It is the second largest tooth powder brand of Indiaand 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, Daburlaunched toothbrushes under this umbre lla. There are plans to launch other oral care

products under the Binaca brand.

Dabur HoneyWhen r epos i t i oned i n 1993 , i t t o t a l l y changed t he pe r cep t i on o f In di an consumer. Honey, which was mainly used for its medicinal properties inIndia,

is today competing for space on breakfast table.A yu r ved i c Sp ec i al t i es i s a r an ge o f

o v e r 350 Ayu r v ed i c Med i c i nes -b o t h . classical Ayurvedic drugs and proprietaryAyurvedic medicines - developed byDa bu r' s ow n re se ar ch a nd de ve lo pm en t. Da bu r

has products for all the 16~categories as defined in the Ayurveda. Some of the

leading products in thiscategory are:Asav

Arishtas-These are medicated decoctions with a self-generated alcoholcontent. Dabur has a range of

over 30 Asav Arishtas. Some of the well-knownone s in cl ud e Das hm ul ari sht a,

Drakshasava, Lohasava, Parthadyarishta andAshokarishta.

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 arecalled Ras Rasayans. Dabur

has a range of more t han 50 Ras Rasa yans whichare used by Ayurvedic practitioners in

the cure of host of ailments.

Medicated Oils-The oils boiled alongwith certain prescribed drugs are knownas medicated oils. These oils retain

the curative properties of herbs and is usedfor inunct ion and massage. Launched over two

years back, the Dabur Foodsrange 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 outas a subsidiary company

of Dabur India Limited. Subsidiarie.Dabur Foods Limited -Dabur Foods Limited, a 100%subsidiary of Dabur IndiaLim it ed , is sp ea rh ea di ng Da bu r' s fo ra y in to fo od


20/33

p ro cess in g in dus t r y . Th e compan y, set up in Apr il 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 inpackaged formwithout any artificial additive. Real is today the market leader in this categorywith

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 inunique drop and trickle packand

uniquelPharmaceuticalsBranded Pharmaceuticals-It includes a range of natural ethical products like N e w L i v f i t , H o n i t u s ,

U l g e l e t c . a n d a r a n g e o f c o n t r a s t m e d i a a n d gynecological.

Oncology-This wide and fo rmidable range includes brands such as Intaxel ,Docetaxel and

Topotecan, all of which were manufactured for the first time inIndia by Dabur. Little wonder

then, that Dabur is the undisputed market leader in this category in India and has plans toestablish itself as a generic oncology player in select global markets.

Bulk Drugs and Chemicals

-T hi s ran ge co ns ist s pr im ari ly of bu lks in th e oncology category.Joint VenturesDabon International Limited-Dabur has also collaborated with Bongrainof France for the manufacture and

marketing

pfspecialty cheese and other dairy products. This joint venture company has already made its

presence feltin the Indian cheese market through the launch of processed cheese under the brand

name LeBon, and a specialty cheese under the brand name Delicieux.

SubsidiariesDabur 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 p rocess ing indust ry. The company, set up in April 1999, is

marketing a range of fruit juices under the brand name Real, Hommade Cooking Pas teand Sauces and Lemoneezlemon 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 s hare. Hommade coo king paste is the onlynational brand in this category. Lemoneez is the only product in itsca t egor y a va i l ab l e i n

un i que d r op and t r i ck l e pack and un i que l y s haped

tabletop pack.

Dabur Nepal Private Limited -Dabur Nepal was the first manufactu ring 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.D a b u r N e p a l i s t o d a y i n v o l v e d i n p r o m o t i n g c u l t i v a t i o n o f

h e r b s a n d a p i c u l t u r e a c t i v i t i e s i n N e p a l . T h e c o m p a n y h a s s e t u ps t a t e o f t h e a r t greenhouse at Banepa for developing saplings for 20 medicinal plants.

Dabur Nepal has also set up an Apiculture centre for promoting bee-keeping activityin Nepal and

developing queen bees and bee colonies for exports.

Dabur Egypt Limited


21/33

-Dabur Egypt is groups gateway to Africa. Thismanufacturing 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 Productsand Foods.

Dabur Oncology PIc.-Set up recently in UK, this subsidiary of Dabur IndiaLimited will be manufacturing anti-cancer

formulations for European market.The company is in the process of setting up manufacturingbase near Londonand is expected to start operation from year 2001.

Dabur Finance LimitedDabur 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 4PERFORMANCEAPPRAISAL

Chapter 4PERFORMANCE APPRAISALSince organisation exist to achieve goals, the degree of success that individuale m p l o y e e s

h a v e i n r e a c h i n g t h e i r i n d i v i d u a l s g o a l s i s i m p o r t a n ti n determining organizational effectiveness. The assessment of how

successfulemployees have been at meeting their individual goals, therefore,

becomes acritical part of HRM. This leads us to the topic of performance appraisal.PURPOSEThere are basically three purposes to which performance appraisal can be put.

First, it can be used as a basis for reward allocations. Decisions as tow h o g e t ss a l a r y j n c r e a s e s , p r o m o t i o n s , a n d o t h e r r e w a r d s a r e determined by

their performance evaluation.

S e c o n d , t h e s e a p p r a i s a l s c a n b e u s e d f o r i d e n t i f y i n g a r e a s

w h e r e d e v e l o p m e n t e f f or t s a r e n e e d e d . M a n a ge m e n t n e e d s t o s p o t

t hos e i nd i v i dua l s who have s pec i f i c s k i l l o r knowl edge de f i c i enc i es . The

p e r f o r m a n c e a p p r a i s a l s i s a m a j o r t o o l f o r i d e n t i f y i n gt h e s e deficiencies.

Finally the performance appraisal can be used as a criterion againstwhich selectiondevices and development programs are validated. It is

one thing to say, for example, that our selection process is successful indifferentiating

satisfactory performers from unsatisfactory performers.

THE APPRAISAL PROCESSEstablished performance standardCommunicate performance

expectations to employeeMeasure actual performanceCompare actual performance with

standardsDiscuss the appraisal with the employees.If necessary, initiate the corrective actionT h e a p p r a i s a l p r o c e s s b e g i n s w i t h t h e e s t a b l i s h m e n t o f p e r f o r m a n c e s t a n d a r d s . T h e s e s h o u l d h a v e e v o l v e d o u t o f j o b

a n a l y s i s a n d t h e j o b descr ip tion d iscussed under human resource p lanning.

These per formances tandards should a l so be c lear and objec t i ve enoug h to be

u n de rs to od an d 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

thet r ans f e r ence has t aken p l ace and has been r ece i ved and under s t ood byt hes ubor d i na t e . Ther e f o r e f eedback i s neces s a r y f r om t he s ubor d i na t e t o


22/33

t h emanager. Satisfactory feedback censures that the information communicated by the manager

has been received and understood in the way it was intended.T h e t h i r d s t e p i n t h e

a p p r a i s a l i n t h e m e a s u r e m e n t o f p e r f o r m a n c e . T o determine what actualperformance. To determine what actual performance is,it is necessary to acqu ire

information about it. We should be concerned with how we measure and what we

measure.What we measure is probably more critical to the evaluation process than howwemeas ur e , s i nce t he s e l ec t i on o f t he wr ong c r i t e r i a can r e s u l t i ns e r i ous dys f unc t i ona l cons equences . And wha t we meas ur e de t e r mi nes , t o a

g r ea t extent, what people in the organization will attempt to excel at.One of the most

challenging tasks facing managers is to present an . accurateappraisal to the subordinate and thenhave the subordinate accept the appraisalin a constructive manner. Appraising performance

touches on one of the moste mo t i o n a l l y c ha r g e d a c t i v i t i e s t h e a s s e s s m en t

o f a n o t h e r i n d i v i d u a l ' s contribution and ability. The impression that subordinates

receive about their assessment has a strong impact on thei r sel f- esteem and, veryimportant, ontheir subsequent performance.

The f i na l s t ep i n t he appr a i s a l i s t he i n i t i a t i on o f co r r ec t i ve ac t i on

wh en necessary. Corrective action can, be of two types. One is immediate and dealsp re dom in an t l y w i th s ymp t oms . Th e o t he r i s b as i c and de lves i n to

c au se s. Immediate corrective action often described as "putting out fires," whereas

bas ic correct ive act ion gets to the source of dev iat ion an d seeks to ad jus t thedifference

permanently.Immediate action corrects something right now and gets things back on track.

Chapter 5PERFORMANCEAPPRAISAL SYSTEM INDABUR INDIA LIMITED

Chapter 5PERFORMANCE APPRAISAL SYSTEM IN DABUR INDIA LIMITEDIn Dabur India Limited they have the system of performance appraisal of theiremployees. The main objective of this performance appraisal system isto evaluate the

per fo rmance, promote thei r employees and to arrange fo r their various training

programmes if they require for enhancing their skills intheir respective areas and in contribution

enhancement. .Employees are evaluated by how well they accomplish as pe ci fi c s et o f o b j e c t i v e s t h a t h a v e b e e n d e t e r m i n e d t o b e c r i t i c a l

i n t h e s u c c e s s f u l c o m p l e t i on o f t h e i r j o b . T h i s a p p r o a c h i s

f r e q u e n t l y r e f e r r e d t o a s . m a n ag e me n t b y o b j ec ti v es . M a n ag e me n t b yob j ec t i ves i s a p r oces s t ha t conver t s o r gan i za t i on~ l ob j ec t i ves i n t o

in di vi du al ob je ct ive s. I t ca n be thought of as consist ing of four steps: goal

set ting, act ion planning, sel f -con tro l , and per iodi c revi ews . In goa l set t ing ,th e org an iz ati on 's ov er all objectives are used as guidelines from which

departmental and individualobjectives are set. In action planing, the means are determined

for achievingthe ends established in goal setting. That is, realistic plans are developed toattain

the objectives. Self-control refers to the systematic monitoring andm e a s u r i n g o fp e r f o r m a n c e . F i n a l l y , w i t h p e r i o d i c p r o g r e s s r e v i e w s , correct ive

action is init iated when behaviour deviates from the standardse s t a b l i s h e d i n

t h e g o a l - s e t t i n g p h a s e . D a b u r u s e s v e r y c o n s t r u c t i v e

performance appraisal process while evaluating its employees. Its evaluationis based onquantitativewise and objectivewise.Company set goals to its employee by properly

reporti ng with its employeesand then evaluating them upto what extent it has been achieved

and if there isfailure in reaching the target what are the causes or reasons behind it.Ev er yevalu ator h as h i s or he r own v alue sys tem which ac t s a s a s t a ndard against


23/33

which appraisals are made. Relative to the true or actual performancean individual exhibits,

some evaluator~ mark high and others low. The former is referred to as posit ive leniency

error and the latter as negative leniencyerror. When evaluators are positively lenient intheir appraisal, an individual's performance becomes over- stated; that is, rated higher than it

actually should.Sim ilar ly, a neg at iv e len ien cy er r or und ers t ates per form anc e,

gi v in g th e individual a lower appraisal. As such there is no scope of error as far astheDabur company is concerned, but sometimes over estimation of target bringsabout adescription in the evaluating criteria. Thus, though chances are less, positive leniency errors have

been stated to be committed.

Outcome of Performance AppraisalAs far as Dabur company is concerned, there are four outcomes possible:

a. Outstanding-If the performance evaluated by the management turnsou t to be ou ts ta nd in g. If

the employee performs in such a way as tocollect 3 consecutive outstandingper fo rmance into his/her credit ) he /she gets promoted.

b. Excellent

-If the performance evaluated by the management turns out to be ex cel l en t . I f t h eempl oyee pe r f o r ms i n s uch a way as t o co l l ec t 3cons ecu t i ve exce l l en t

p e r fo r ma nce i n t o h i s /h e r c red i t , he / s he ge t s promoted.

c. Good-If the performance evaluated by the management turns out to begood. The managementsends the employee to the tra ining programme to improve his/.her skill to perform form.

d. Below average-If the performance evaluated by the management turnsout to be below average. And, if theemployee collects 3 below averageto his/her credit, then he/she dismissed

Duration of Appraisal SystemT h e t i m e c o n s t r a i n t s e n a b l e s t h e e m p l o y e e t o s h o w o r p r o j e c t

h i s / h e r capabilities in term of performance as per the duration allowed. In DaburIndiaLimited, the performance appraisal system is carried out annually.

Feedback

The company provides the annual feedback to its employees and thus, in term bring out thehighlight s of the self assessment programme. Th is enables the better communicaiton

between the management and employees ad thus, helpsin promoting the business future.

ResponseThere are mixed responses from the feedback by the employees. It has helpedso me o f t he

empl oyees i n mot i va t i ng t h ems e l ves whi l e t hos e who f e l t bad were

thoroughly communicated and all the co nfusion and failure part were discussed with

employees.

Chapter 6ANALYSIS ANDINTERPRETATION OFDATA

Chapter 6ANALYSIS AND INTERPRETATION OF DATAA f t e r c o l l e c t i n g t h e d a t a o n " P e r f o r m a n c e A p p r a i s a l S y s t e m " d a t a

w a s A n a l y z e d a n d i n t e r p r e t e d . T h e v a r i o u s t o p i c s c o v e r e d f o r a n a l y s i s a n d interpretation of data are: )

1. PromotionsA promotion may be defined as an upward advancement of an employee in anorganisation toanother job, which commands better pay/wages, better status / p r es t i ge an d h i gh e r


24/33

op po rtu ni t i es / c ha lle ng es an d r esp ons ib il i ty, a be tte r working environment,

hours of work and facilities etc.Promoters have a salutary effect on the satisfaction of

the promoted person'sneed for esteem, belonging and security. They also afford anopportunity for g r e a t e r s e l f - a c t u a l i z i n g a c t i o n t h r o u g h m o r e

v a r i e d a n d c h a l l e n g i n g assignments. The promotion policies differ from an

organisation to another.The guidelines for depa rtmental promotion in are same for maleand femalee m p l o y e e s . T h e p e r i o d o f e x p e r i e n c e r e q u i r e d f o r f i l l i n ga h i g h e r p o s t departmentally varies from 3-5 years. 5 years experience for

promoti on tomanager ial st af f and 3 years experience for promotion to Junior

Managementstaff is needed. The other area of promotion apart from seniority are meritandfitness. Though these guidelines are not in a written format the supervisor andmanager get it

at the time of appraisal from the personnel department.

As pe r t he gu i de l i nes f r om t he pe r s onne l d epa r t men t empl oyees a r e t o be

promoted accor dingl y. However there is co nfusion among th e emplo yee as thes eguidelines are not being ex plained time to time, man y are not aware of the existing

promotion policy in the organisation.Respondents were asked whether the promotion is well

defined in theorganisation. The responses are given below: N=96Response Number PercentageY e s

1 6 1 6

. 6 6 No 52 54.16Can't say 2829.16From th e abov e t able , i t can be seen t ha t 30 % agree th a t promo t ion i s

we ll defined in the organisation. However 54% were not able to say it as there

islack of information about the promotion policy. Every employee need tobecommunicated about the existing promotion policy.

1652280102030405060Y e s N o C a n ' t S a y Series1

Respondent were also asked to suggest any change in the policy. The responseswere as given

below:

Response Number PercentageMerit not recognized 20 20.83Does not define career plan 26 16.66 Not integrated with business

0 0Heterogeneity within policy for 56 58.83different positionMajority suggested for no changein the policy. It seems they are satisfied withthe current policy.

Aligning goalRes ponden t wer e a s ked abou t t he p r es en t s ys t em, does i t he l p i na li gn in g individual goal with those of the organisation. The responses

we re as giv en below:

Response Number PercentageYes 44 45.83 No 12 12.5Can't say 36 37.5 No response 4 4.16Here the response from thesupervisor were 45.83% for the factor that it helpin aligning their goal with those of

organisation.

4412364051015202530354045Y e s N o C a n ' t S a y

N o responseSeries1

Career ProgressC a r e e r p r o g r e s s i s s o m e t h i n g w h i c h i s c o n t i n u o u s , w i t h t h e i n p u t

f r o m o r g a n i s a t i o n i n t e r m o f t r a i n i n g , f e e d b a c k a n d c o u n s e l l i n g . I nt o d a y ' s c h a n g i n g s c e n a r io t h i s h a s t o b e f o l l o we d i n e v e r y o r g a n is a t i on s o


25/33

t ha t a ni n d i v i d u a l m a k e p r o g r e s s i n t h e c a r e e r a d d i n g v a l u e t o

h i m s e l f a n d t h e organisation. Respondent were asked about the current system helping in

their career progress.Career advancement is the most motivating factor when emplo yeeaspire for the a dvanc ement of h i s career and fo r be t t e r oppo r tuni t i e s to us e

h is /h er talents. From the organisation's point of view, it is necessary to develop

inmanager. Some expectations of opportunities for the future in order to keeptheirmotivation high. Career planning means helping the employee plan hiscareer interms of his capabilities with the context or organisational needs.Individual, after

becoming aware of some of his/her capabilities and career anddevel opment oppor tuni ti es

chooses to develop h imself /he rself in a d irectionthat improves his/her chances of beingable to handle new responsibilities. It isalso the responsibil ity of the employer to help

him/her to identify the career o p p o r t u n i t y , m a k e c h o i c e s a n d

d e v e l o p h i s / h e r c a r e e r a n d p r o v i d e opportunities for career planning

and succession planningQuestion asked was as follows:Are the issues like career planning and succession planning a part

of companys policyThe responses to the above were as given below:

Response Number PercentageYes 16 16.66 No 44 45.83Cant say 36 37.5Her e on l y 4 6 % of t h e r e s po n de nt gave

r es pons e th at it d oes n o t whi l e 38 % gave response that there is no career development

plan at all.

16443601020304050Y e s N o C a n ' t S a y Series1

Feedback

Pr ov i d i ng f eedback p l aya cons t r uc t i ve r o l e . I t he l ps t he empl oyee

k n ow h i s / h e r w e a k n e s s a n d s t r e n g t h . F e e d b a c k p r o v i d e sf o r t h e a r e a o f improvement.R e s p o n d en t w e r e a s k e d a b o u t t h e

f re quen cy o f fe edba ck b ase d on t he i r performance. The responses were as given

below:

Response Number PercentageRarely 24 25On a few occasion 40 41.66Sometimes 24 25Often 8 8.34Almost always Nil Nil41

percent responded that feedback is provided though on a few occasion. Thefrequen cy has to

increase both from the individual and organisation point of view to keep theindividual motivated for work in line with the o rganisational expectation.

0510152025303540RarelyOnafewoccasionSometimesOftenAlmostalways

Remedial measureBased on the performance t he remedial measures are taken to do awa y 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 PercentageJob rotation 44 45.83Sent to training programmed 40 41.66Counseled 12 12.5Any other Nil Nil

None Nil NilHere the response were both fo r job ro tat ion an d tr aining programme.

Duringthe course it was felt that more training input is to be provided to the employeeto

over come t he weaknes s and i mpr ove upon t he ex i s t i ng capab i l i t y o f theemployee.

051015202530354045JobrotationSenttotrainingprogramCounselledAnyotherNone

PROMOTION POLICY AND PERFORMANCE APPRAISALAPPRAISALSYSEM


26/33

R e s p o n d e n t w e r e a s k e d w h e t h e r t h e p r o m o t i o n p o l i c y i s l i n k e d

w i t h t h e performance appraisal systemThe responses were as given below:

Response Number PercentageYes 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.5428140102030405060Y e s N o C a n ' t S a y Series1

SWOT ANALYSIS

1. Strength-Dabur India Limited is the first Indian major company whichcame up with the idea

of Ayurvedic concept in var ious family and healthca r e p r o d u c t s . m o s t l y

w h a t e v e r i n g r e d i e n t s i t u s e s i n i t s p r o d u c t a r e extracted from nature as

it has ver y less syn thetic chemical consti tuentsused in its product and so it does not hasany threat of side effect. As it hasits product in major areas viz. family, health care and in food

division it caneasily has larger share of market. By this performance appraisal system actas

motivating factor for its employees to a great extent by increasing their efficiencyand skills. For example, if we see Dabur Lal Dunt Manjan, it isIndia's number one

tooth powder doing very well in rural as well as in urbanmarket.

2. Weakness- The ma i n weaknes s o f t he company i s t ha t t he company i s t ak i ng t hep e r fo r ma nce a pp r a i s a l i n ob j ec t i ve wi se , wh i l e eva lu at in g a particular

employee performance, on objective wise, the employee does notget enough opportunity to

express completely and freely the valid reasonsof his/her failure to the organization.Weakness is also highlighted whenDabur India Limited do this performance appraisal

procedure annually.

3. Opportunity- Wi t h t he he l p o f t h i s pe r f o r mance appr a i s a l s ys t em t heempl oyee a l waysge t f eedback f r om t he company . He / s he can r ea l i ze

easily his/her level of efficiency. By this performance appraisal system theem plo ye e ge t s

en or mo us op po rtu ni ty to en ha nc e t he ir ski l ls by sp ec ia l training and variousother managements programme.

4. Threats -While evalu ating an emplo yees perfo rmance the perfo rmanceappraisal system there isalways a chance of fear that those employees whoare unable to achieve their target can take it as

a huge set back for them andin th e lo g te rm it te nd s to de cr ea se th ei r ef fi ci en cy

l e ve l ho w goo d t h eemployee is and thus it effect the over all performance of the

organization.

Chapter 7CONCLUSIONS &SUGGESTIONS

Chapter 7CONCLUSIONS & SUGGESTIONS

ConclusionThe analysis and interpretation of data on study of performance appraisal andits effectiveness inan organization led to the following conclusions:

The p r omot i on r u l e t hough de f i ned need t o be communi ca t ed t oe ve r yemployee before appraisal process is done and also justify the promotion asa r e s u l t o f


27/33

t h e a p p r a is a l . T h a t t h e p r om o t i on p o l ic y f o l l o w ed d i f f e rs a t d i f f e r e n t

p o s i t i o n a n d c a t e g o r y . A u n i f o r m i t y h a s t o b e t h e r e i n

t h e implementation of promotion policy at all levels

The process of performance appraisal followed in Dabur India Ltd. at

thesupervisory and above level IS to say not good but of satisfactory level.Theemployees do not rate it very good

The appraisal outcome has to be used frequently for the purpose of rewardon performing well

together with the feedback on the performance. Alsowh en pe rf or ma nc e go esdown employee has to be given feedback andmotivated to do better.

T h e o r g a n i z a t i o n a t p r e s e n t d o e s n ' t l a y c a r e e r p l a n n i n g a n d c a r e e r

suggestion plans.

In Dabur India Ltd. feedback is being provided to the employee though ona 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 notin prac tice at the

organizat ion in strict term. During. the course o f study suggestion came from the

employee side for the need of counseling.

SuggestionsThe study undertaken bring some interesting result.

Training the Appraiser: It is proposed that appraiser be trained for clearunder s t and i ng o f t he s ys t em and i t s ob j ec t i ve and a l s o couns e l ed t o

b ehonest, fair, just, unbiased in appraising the appraisal.

Factors/traits of evaluation: It is proposed that appraisal evaluated on abovefa c to r s / t r a i t s b e

gi ve n sui tab le rem ark or ju st i f ic at io n for be in g giv en 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 t ion , per formance appra i sa l i s done on an annual bas i swhich

should be done Quarterly to make it more effective.

Consistency is demanded in the promotional policy. It should not changeevery year.

Monetary di fference between two grades should not be l arge, it should be motivating

in nature.


28/33

P e r f o r m a n c e a p p r a i s a l s y s t e m s h o u l d b e m a d e m o r e t r a n s p a r e n t

a n d

rationale.

Pe r f o r mance f eedback : The pe r f o r mance f eedba ck s es s i ons s hou l d

b e i m p r o v e d w h i c h w o u l d r e s u l t s i n i n c r e a s i n g e m p l o y e em o t i v a t i o n t o improve performance. The following could be incorporated.

Pin point the problem behaviors and make sure the employee is awareof it

Make sure the employee understands the consequences of the problem behaviors.

Get employee 's commi tment to c hange and make sure he cares about the change

Assistance should be provided to improve poor performance. Make arealistic planapp rop r iat e to the be hav iou r an d se t a t ime f ram e fo r improvement.

To make sure to review performance time to time

The other change which has t o be incorporated at the sup ervisor and th e level above

are:

These should be l i s t i ng do wn of t ask un der tak en du r ing th e l as t one year and

the result achieved.

In some areas of performance there should be self appraisal and morea nd m or e

co un sel in g so th at em plo yee im pr ov e u po n w ea k a re a an d 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,

tou n d e r s t a n d t h e m u t u a l e x p e c t a t i o n s a n d s u p p o r t t o b e p r o v i d e db y t h e ap pr a i s e r t o t he empl o yee fo r ach i ev i n g mutu a l l y ac cep t e d

goals/targets.Through this process of setting targets the interpersonal relationship

between the appraiser and the employee would improve.The open appra isal sys tem reducesthe whims and fancies of the appraiser . I t pr om ot es res ult -o rie nt at i on as i t is

b as ed on pe r f o rm anc e ra t h er t h an on personality based appraisal.


29/33

Annexure

a ) Q u e s t i o n n a i r e

QUESTIONNAIRE

TO STUDY PERFORMANCE APPRAISAL SYSTEM

Q.1. Is the promotional policy well defined in your organization?a. Yes b. No c. can't say

Q.2. Do you know the objectives of the Performance appraisal system. If yes kindlyspecify.

Q.3. How often the performance appraisal form is filled or Performance Appraisal isdone.a.

fortnightly. b. monthly c. six-monthly. d. annuallye. not fixed.

Q.4. On what basis is the performance appraisal done.a. merit cum seniority b. seniority cum

merit. c. merit onlyd. seniority only. e. any other. Pl. Specify

Q.5 Who appraises you?a. appraisal committee. b. your immediate supervisor c. self-appraisal d.

360 degree appraisal.e. any other please specify

Q.6. What methods are being used for performance appraisala. forced choice distribution

method. b. essay methodc. ranking method. d. critical incident methode. any other, kindly

specify

Q.7. In your opinion does it identify the training needs?a. to a large extent b. to some extent c.

cant say d. not at all

Q.8. Is the promotional policy linked with the performance appraisal systema. yes b. no c. can't

say

Q.9.Are the issues like career planning and succession planning a part of company's

policya. yes b. no c. can't say.

Q.I0 Does the system help you in aligning your goals with those of the organization

.a. yes b. no c. can't say

Q.11 .Wha t r o l e does t op management p l ay i n t he pe r f o r mance appr a i s a l .

kindlycomment.

Q.12. Are you a part of the appraisal committeea. yes b. No

Q 13 .Do the employees get the feedback of performance appraisala. yes, every time.

b. often, but not always.c. only when requiredd. rarely e. Never

Q.14 Does the organization provide counseling after the appraisal.a. always b. often c. rarely d.

never. e. can't say


30/33

.Q . 1 5 . W h o d o e s t h e c o u n s e l i n g a. trained professionals b. untrained counselors. c.

can't say

Q.16. What kind of remedial measures are taken.a. job rotation b. sent to training programmes c.

counseledd. any other, kindly specify

Q.17. How do you rate the overall assessment of performance appraisala. Outstanding b. Very

good c. Good d. Satisfactorye. Poor

Q.18. What do you feel are the positives in the perfomance appraisal system inyour organization,

Kindly mention

Q.19 What do you feel are the shortcomings of the performance appraisal system

being followed in your organization, Kindly mention

Q.20. For how long have you been working in this organisation

Q . 2 1 . S u g g e s t i o n t o w a r d s i m p r o v i n g t h e p e r f o r m a n c e a p p r a i s a l

system in your organisat ion


31/33

REFERNCES

1) Flippo EdwinB., Personnel management, Edition sixth, Tata Mc Graw Hills,1984,

p.g. 225-230

2) Gupta, C.B., Human Resource Managem ent, Edition Fifth(Reprint),Sultan Chand

and Sons, New Delhi 2001, P.G. 5.3-5.10

3) Rao, P. Subba,Essentials of Human Resource Management and

Indus t r i a lRela t ions ;Edi t ion Second, Himalaya Publ i sh ing House , New Delhi

2 0 01 , p.g.206-210

0

1

2

3

4

5

6

Category 1 Category 2 Category 3 Category 4

Series 1

Series 2

Series 3


32/33

WEB SITES SURFEDwww.google.com

www.indiatimes.comwww.msn.com
http://www.google.com/http://www.google.com/http://www.indiatimes.com/http://www.indiatimes.com/http://www.scribd.com/doc/29771659/marketing-strategies-of-Dabur-India-Ltd-67http://www.scribd.com/doc/29771659/marketing-strategies-of-Dabur-India-Ltd-67http://www.scribd.com/doc/32558433/Strategic-Management-Project-for-Dabur-India-Limitedhttp://www.scribd.com/doc/32558433/Strategic-Management-Project-for-Dabur-India-Limitedhttp://www.scribd.com/doc/34921533/Dabur-company-FINALhttp://www.scribd.com/doc/34921533/Dabur-company-FINALhttp://www.scribd.com/doc/36916839/Scim-2-Csr09-Mba-35-2-Drafthttp://www.scribd.com/doc/36916839/Scim-2-Csr09-Mba-35-2-Drafthttp://www.scribd.com/doc/37941480/SWOT-Analysis-of-Dabur-India-Ltdhttp://www.scribd.com/doc/37941480/SWOT-Analysis-of-Dabur-India-Ltdhttp://www.scribd.com/doc/27172615/Marketing-Strategy-of-Dabur-Chwanprashhttp://www.scribd.com/doc/27172615/Marketing-Strategy-of-Dabur-Chwanprashhttp://www.scribd.com/doc/29326809/Marketing-Strategyhttp://www.scribd.com/doc/29326809/Marketing-Strategyhttp://www.scribd.com/doc/29327178/Marketing-Strategyhttp://www.scribd.com/doc/29327178/Marketing-Strategyhttp://www.scribd.com/doc/38183800/Marketing-Strategy-of-Dabur-Chwanprashhttp://www.scribd.com/doc/38183800/Marketing-Strategy-of-Dabur-Chwanprashhttp://www.scribd.com/doc/28745434/Dabur-Over-the-Yearshttp://www.scribd.com/doc/28745434/Dabur-Over-the-Yearshttp://www.scribd.com/doc/29886544/DABURhttp://www.scribd.com/doc/29886544/DABURhttp://www.scribd.com/doc/62710192/Chapter-1-Daburhttp://www.scribd.com/doc/62710192/Chapter-1-Daburhttp://www.scribd.com/doc/28612493/Rituhttp://www.scribd.com/doc/28612493/Rituhttp://www.scribd.com/doc/29326809/Marketing-Strategyhttp://www.scribd.com/doc/29326809/Marketing-Strategyhttp://www.scribd.com/doc/29327178/Marketing-Strategyhttp://www.scribd.com/doc/29327178/Marketing-Strategyhttp://www.scribd.com/doc/38183800/Marketing-Strategy-of-Dabur-Chwanprashhttp://www.scribd.com/doc/38183800/Marketing-Strategy-of-Dabur-Chwanprashhttp://www.scribd.com/doc/28745434/Dabur-Over-the-Yearshttp://www.scribd.com/doc/28745434/Dabur-Over-the-Yearshttp://www.scribd.com/doc/29886544/DABURhttp://www.scribd.com/doc/29886544/DABURhttp://www.scribd.com/doc/62710192/Chapter-1-Daburhttp://www.scribd.com/doc/62710192/Chapter-1-Daburhttp://www.scribd.com/doc/28612493/Rituhttp://www.scribd.com/doc/28612493/Rituhttp://www.scribd.com/doc/44490036/Project-on-Performance-Appraisalhttp://www.scribd.com/doc/44490036/Project-on-Performance-Appraisalhttp://www.indiatimes.com/http://www.google.com/


33/33
http://www.scribd.com/doc/29365835/Re-Positioning-at-Daburhttp://www.scribd.com/doc/36997786/Shapeshttp://www.scribd.com/doc/36997786/Shapeshttp://www.scribd.com/doc/36952046/R-Gopalhttp://www.scribd.com/doc/36952046/R-Gopalhttp://www.scribd.com/doc/36928952/Geriap-List-All-Case-Studieshttp://www.scribd.com/doc/36928952/Geriap-List-All-Case-Studieshttp://www.scribd.com/doc/36923898/Gsm-Call-Sequencehttp://www.scribd.com/doc/36923898/Gsm-Call-Sequencehttp://www.scribd.com/doc/36913496/Saphttp://www.scribd.com/doc/36913496/Saphttp://www.scribd.com/doc/36714154/JANMASHTAMIhttp://www.scribd.com/doc/36714154/JANMASHTAMIhttp://www.scribd.com/doc/22058695/SWOT-Analysis-of-Dabur-Indiahttp://www.scribd.com/doc/22058695/SWOT-Analysis-of-Dabur-Indiahttp://www.scribd.com/doc/29365835/Re-Positioning-at-Daburhttp://www.scribd.com/doc/29365835/Re-Positioning-at-Dabur

Documents

Hrm Project Report Pds