Professional Documents
Culture Documents
Words often fail to express inner feelings of gratitude and indebtedness to one’s
benefactors, but then it is the only readily available medium through which the
undersigned can express her sincere thanks to all those who are associated with her work
in one way of the other.
I also want to thank Mr. Brijesh Mishra, HR Manager for having granted my this
wonderful opportunity to pursue my summer project at DABUR . And to all the
respondents who featured in my survey but remain as nameless entities, I present a deep
bow of gratitude. And also to all those who have been of help directly or indirectly but
have not featured here.
In brevity, it was pleasure working in the organisation, which provided me the most
congenial environment for learning.
RITU SENGAR
MBA
ROLL NO:- 8429610
TABLE OF CONTENTS
Graph Page
Title
No. No.
1. Performance Appraisal is essential
1. EXECUTIVE SUMMARY
In today’s scenario, Human capital is acknowledged as one of the most potent sources in
contributing directly and significantly in the growth of any organization.
This project attempts to explore the most effective “HR policies and practices” for
smooth sailing of an organisation.
It was a research conducted to get the feedback of the employees from different
departments about the existing performance appraisal system followed in the
organization.
The main research objective was to understand the relevance of wide variety of methods
and techniques that can be explored towards performance of the organizational goals. In
today’s competitive world every organization is geared towards maximum return with
minimum investment. Human Resource Management plays a vital role towards planning
& controlling cost effective manpower support. This is widely affected by planning and
implementing “Effective Performance Appraisal System” which is the paramount part of
this project
Today, the FMCG is the fourth largest sector in the Indian economy and there are many
FMCG companies like HLL, ITC, Britannia, Tata Tea, Nestle, Godrej Consumer, Dabur,
Marico etc.
Dabur India Limited is the fourth largest FMCG company in India. Dabur has five other
subsidiaries- Dabur Foods, Dabur Nepal, Dabur Egypt, Dabur Oncology and Dabur
Pharma.
Business
Dabur’s product range encompasses health care, personal care, ayurvedic specialities and
food segments.
Brands
Well-known brands include Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola, Ll
Dantmanjan, Nature Care, Pudin Hara and Real.
Location
Dabur has been marketing its products in more than 50 countries all over the world. The
company has offices and representatives in Europe, America and Africa. Manufacturing
facilities are spread across three overseas locations.
Turnover
Building on a legacy of quality and experience for over 100 years, today Dabur has a
turnover of Rs.1899.57 with powerful brands.
3. COMPANY PROFILE
4. COMPANY HISTORY
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to
learn and grow to a commanding status in the industry. The Company has gone a
long way in popularizing and making easily available a whole range of products
based on the traditional science of Ayurveda. And it has very high standards in
developing products and processes that meet stringent quality norms.
Dabur introduces consumers to personal care through Ayurveda, with the launch
of Dabur Amla Hair Oil. The product was so popular that it became the largest
selling hair oil brand in India.
Addressing rural markets where homemade oral care is more popular than
multinational brands, Dabur introduces Lal Dant Manjan. With this a
conveniently packaged herbal toothpowder is made available at affordable costs
to masses.
Dabur establishes its leadership in health care as one of only two companies
worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research
Foundation develops an eco-friendly process to extract the drug from its plant
source .
o 1996- Enters foods business with the launch of Real Fruit Juice
o 1996- Real blitzkrieg
Dabur captures the imagination of young Indian consumers with the launch of
Real Fruit Juices- a new concept in the Indian foods market. The first local brand
of 100% pure natural fruit juices made to International standards, Real becomes
the fastest growing and largest selling brand in the country.
Dabur establishes its market leadership status by staging a turnover of Rs. 1,000
crores. Across a span of over 1000 years, Dabur has grown from a small
beginning based on traditional health care.
With the setting up of Dabur Oncology’s sterile cytotoxic facility, the Company
gains entry into the highly specialized area of cancer therapy. The state-of-the art
plant and laboratory in the UK have approval from the MCA of UK. They follow
FDA guidelines for production of drugs specifically for European and American
markets.
Dabur Worldwide
4.4 IT Initiatives
In Dabur India Limited knowledge and technology are key and efficiency.
Towards this overall goal of technology-driven performance, Dabur is utilizing
the world. It will also cut down costs and increase profitability. Information
Technology in a big way. resources which have helped the Company achieve
higher levels of excellence This will help in integrating a vast distribution system
spread all over India and across.
• Head – CPPD
• Head – Marketing
• Deputy General Manager – Operations
• Chief Financial Officer
DaburIndia
India Ltd
.
Corporate Office
Chairman
(VivekC Burman
)
Heads (Marketing)
Health Supplements
Dabur Chyawanprash
Dabur Chyawanshakti
Glucose-D
Digestives
Hajmola Yumstick
Hajmola Mast Masala
Anardana
Hajmola
Hajmola Candy
Pudina hara
Dabur Hingoli
Natural Cures
Shilajit Gold
Nature Care
Ring Ring
Itch Care
Back-aid
Shankha Pushpi
Dabur Balm
Sarbyna Strong
• Dabur Baby Care Product Range
Baby Care
Hair Care-Oil
Skin Care
Gulabari
Vatika Fairness Face Pack
Oral Care
Real
Homemade
Lemoneez
Honey
Capsico
Dashmularishtha
Ashokarishtha
Lauhasava
Mahanarayan Tail
Juritap
Madhuvani
Lavan Basked
4.10 Vision and Mission
• Founding Thought: “ What is that life worth which cannot bring comfort
to others.
• Vision: “ Dedicated to the health and well being of every household”.
• Mission: “ To become a leading nature-based health and family care
Products Company”.
People Development : People are the most important asset. Add value
through result driven training, and we encourage &
reward excellence.
In India, the Company’s business is carried out by three Strategic Business Units
(SBUs) namely:
Dabur Foods Limited as a wholly owned subsidiary with a share of 10% in its total
sales.
Food
CHD
CCD
CCD
82%
5. RESEARCH AND METHODOLOGY
Research is an organized inquiry designed and carried out to provide information to solve
the problem. The fact, search is an art of scientific investigation of a certain problem.
“Research is the process of systematically obtaining accurate answers to significant and
pertinent questions by the use of the scientific methods gathering and interpreting
information”.
a. Sample size:
Sample size is 50. Data was analyzed by surveying employees from different
departments.
b. Sample design:
This part is done through discussing and analyzing with my project guide and
referring to the subject regarding this topic. It was a random sampling.
c. Mode of analysis:
The methods used to analyze the data are as follows:
1) To study the importance of performance appraisal in the organization.
2) To find out whether the employees are satisfied with the present
performance appraisal system or not.
3) Interpret and analysis of the data and present it in a proper manner.
4) Uses of Microsoft excel for preparation of graph.
Title of the study
The title of the study is ‘Performance Appraisal’ at Dabur India Limited, Ghaziabad
(U.P)
1) The opinion of staff and manager are often in opposition, causing de-motivation.
2) The process is usually manager driven and the staff member is expected to be
compliant in the interview.
3) The process usually involves manager giving their opinion and the staff member
having to defend the position, rather than a positive discussion.
4) There is no room for remedial action during the year.
5) The process is usually done in a rushed manner to meet the budget development
process and therefore loses its relevance to performance.
SOURCES OF DATA
Data Collection is the collection of necessary detail to gain further information. This
requires both primary and secondary data.
A. Secondary data:
My HR guide, Mr. Pawan Ponia in Dabur India Limited, helped me in secondary
data collection.
Field Work:
Fieldwork is done for the purpose of collection of data. The fieldwork involved here are:
• Regular research to gather information on the relevant topic and have them
compiled according to the project specification.
• For getting proper guidance for the project, often discussion with the guide.
]
6. HUMAN RESOURCE AT DABUR
Dabur places great deal of confidence on its excellent pool of human resources, which it
realizes is the key to its further growth strategy. The company continued its efforts to
further align its HR policies, processes and initiatives to meet the business needs.
• Dabur implements performance metrics for all key positions based on two aspects
of the Balanced Score Card Approach- Financial and Internal Business Process.
This approach clearly outlines the expectation from each position and will be
upgraded to include two more aspects for any key managerial positions in future.
• The Company institutionalized the “Assessment and Development
Center”(A.D.C) approach to all positions from staff to officer cadre and also at the
senior levelsto objectively identify, develop and promote the talent from within,
and to provide individual feedback for development of the participating
employees.
• To encourage learning, the Company is planning to set-up a learning center,
which will be equipped with a library, I.T & Web based sources of knowledge. It
is also in the process of setting up a knowledge management portal and a
leadership and capability development cell
• Dabur is committed to attract fresh talents. Towards this end, the company
required over 20 candidates from leading management and engineering institutes
in the country, who will be inducted.
7. INTRODUCTION TO PERFORMANCE APPRAISAL
Performance Appraisal is the systematic evaluation of the individual with respect to his or
her performance on the job and his or her potential for development.
• Written report: The appraiser writes about the strengths, weaknesses, previous
performance and potential of the appraisee, with suggestions for
improvement. It is important that the appraiser is perceptive with
reasonable writing skill.
• Critical incidents: The appraiser highlights incidents or key events that show
the appraisee’s behavior as exceptionally good or bad in relation to
particular outcomes at work. This exercise would depict desirable
behaviors as well as behavior that signal a need for improvement.
• Graphic Rating Scale: This is a popular appraisal technique and it lends itself
to quantitative analysis and comparison of data. A set of performance
factors id identified, including such characteristics as quality of work,
technical knowledge, cooperative spirit, integrity, punctuality and
initiative. The appraiser would go through the set of factors rating them,
for e.g., on a scale 1 to 5 where the highest number would denote the best
rating.
• Multi-person Comparison: This technique is relative rather than an absolute
measure, is used to assess one person’s performance against one or more
other individuals.
• Multi-rater Comparative Evaluation: The total appraisal process consists of
interviews, psychometric testing, simulations of relevant work activities,
peer appraisals and appraisals by trained assessors.
• Self-appraisal: Self-appraisal has introduced as a mean for empowering
employees, enhancing teamwork and raising awareness of quality. The
employees are given appraisal forms on which they evaluate themselves
against criteria such as attendance, productivity, quality, safety, teamwork
and commitment.
7.4 Who are Raters?
Where superiors, subordinates and clients, make the appraisal it is called 360-
degree system of appraisal.
• Quality: The degree to which the process or result of carrying out an activity
approaches in terms of fulfilling the activity’s intended purpose.
• Quantity: The amount produced, expressed in monetary terms, number of
units or number of completed activity cycles.
• Timeliness: The degree to which an activity is completed or a result produced
at the earliest time desirable
• Cost Effectiveness: The degree to which the use of organization’s resources is
maximized in the sense of getting the highest gain by minimizing the losses.
• Need for Supervision: The degree to which a job performer can carry out a job
function.
• Interpersonal Impact: The degree to which a performer promotes feeling of
self-esteem, goodwill and cooperation among co-workers and subordinates.
7.6 Factors Determining Performance Evaluation
• 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. Rating employees separately on each of a number of performance
measures and encouraging raters to guard against the halo effect are the two
ways to reduce the halo effect.
• Leniency: Every evaluator has his own value system, which acts as a standard
against which he makes his appraisals. Relative to the true or actual
performance an individual exhibits, some supervisors have a tendency to be
liberal in their ratings.
• Central Tendency: This occurs when the evaluator assigns average or middle
ratings to the employees. The attitude of the rater is to play safe. This safe-
playing attitude stems from certain anxieties and doubts about the behavior of
employee. Such tendency distorts the evaluation.
• Rater Effect: This includes favoritism, stereotyping and hostility. Excessively
high or low scores are given only to certain individuals or groups based on the
rater’s attitude towards the rate. Age, sex, race and friendship biases are
examples of this type of error.
• Perceptual Set: This occurs when the rater’s assessment is influenced by
previously held beliefs. If supervisor, for example, has a belief that employees
hailing from one particular region are hard working, his subsequent rating of
an employee hailing from that region tends to be favorably high.
• Spillover Effect: This refers to allowing past performance appraisal ratings to
unjustifiably influence current ratings. Past ratings, good or bad, result in
similar rating for the current period although the demonstrated behavior does
not deserve the rating good or bad.
• Status Effect: It refers to overrating of employees in higher level job or jobs
held in high esteem, and underrating employees in lower level job or jobs held
in low esteem.
7.7 Appraisal Methods
• Rating Scale: This is the simplest and most popular technique for
appraising employee performance. The typical rating scale consist of several numerical
scales, each representing a job related performance criterion such as dependability,
initiative, output, attendance, attitude, co-operation, and the like. Each scale ranges from
excellent to poor. The rater checks the appropriate performance level on each criterion,
and then computes the employee’s total numerical score. The number of points scored
may be linked to salary increase. The disadvantages of this method are several. The
rater’s biases are likely to influence evaluation.
• Checklist: Under this method, a checklist of statements on the traits of the
employee and his or her job is prepared in two columns i.e., a ‘Yes’ and a ‘No’ column.
All that the rater should do is tick the ‘Yes’ column if the answer to the statement is
positive and in column ‘No’ if the answer is negative. After ticking off against each item,
the rater forwards the list to the HR department where the actual assessment of the
employee takes place. The advantages of a checklist are economy, ease of administration,
limited training of rater and standardization.
• Essay Method: In the essay method, the rater must describe the employee
within a number of broad categories, such as:
The strength of the Essay method depends on the writing skills and
analytical ability of the rater. A problem with this method is that the ratees
may be rated on the quality of the appraisals that they give.
The figure outlines the performance appraisal process. Each step in the process is
crucial and is arranged logically.
Per
A
8.1 The System
Eval
Ass
Assessment
5
Discuss
Computatio
Use
The performance appraisal of executives in Dabur is carried out through rating system of
performance appraisal by their immediate supervisor and then reviewed by latter’s boss.
The performance appraisal system followed at Dabur is ‘Rating Method’ and ‘Action by
Objectives Method’.
8.2 Mechanism
Finally, Contribution Enhancement Plan discusses rating for deciding upon the
performance rewards in the form of:
• Annual Rewards
• Promotions
The first stage is for the person initiating the review cycleto understand the
business plan so that there is clarity about the direction and priorities of the
organization. This will help ensure that individual BBO’s support the overall
business plan.
8.7 BBO’s Identification and Review Processes
BBO’s needed to be established the light of the annual business plan. The set
objectives must be relevant in context with each individual role.
The employees must prepare in advance his/her draft objectives for the next year
and contribution against objectives set for the past year. The same need to be
carried by the appraisee for discussion with the appraiser. The appraiser will also
come prepared with BBO’s (both past and future) for the employee. At the
meeting they will discuss the year ahead and seek agreement on various
objectives. During the same meeting they will also discuss the contribution
against the past year’s BBO’s. Once the objectives for the next year are set and
agreed upon the same need to be communicated to the employee in writing. The
employee shall be evaluated against BBO during mid-year at the end of
assessment year.
In the mid of the assessment year the appraiser and the appraisee should meet to
review the progress against the set BBO’s. This should include a discussion of an
assessment of whether any BBO’s should be amended, deleted or introduced. The
Interim Contribution Review is a formal opportunity to reinforce effective
behaviors, identify and correct any problems, give general feedback/advice, and to
ensure the annual assessment will be fair. This should be recorded in writing and a
copy is given to the individual.
8.9 Category of Contribution
The Contribution rating is to be done on a 5-point scale for each set BBO. Their
ratings are as follows:
Skills/Traits Ratings
Strongly Demonstrated 5
Fairly Demonstrated 4
Present but not constantly demonstrated 3
Require significant development 2
Not up to the expectation 1
After evaluation under Contribution Enhancement Plan (B), variable for each
executive is compared through (CEP B). Variable pay is a lump sum amount to be
paid to appraise once a year on the basis of the performance.
The assessment of variable pay is done using the following table:
% of fixed amount if
Criterion
criterion is 100 fulfilled
Company’s performance 33%
Dabur should hire professionals from outside to head key positions to become a player of
repute. In 1998, business was not big and being a family-owned company, there were
issues in hiring. Dabur was hiring literally at the rate of 20-30%. They started hiring from
campuses only in 1996-97. They went to the campuses and carried out serious brand
building exercise. Today their lateral hiring has come down to around 10-15%. Dabur
expanded their business and went to IIM for hiring. They also evolved new strategies and
a more structured hiring process. This was a huge success and they hired close 100
people in the last two years. The attrition rate at management level is 10% while at the
field staff level its 16%. Dabur has also introduced Esops for freshers to address the
retention issue right at the entry level. Currently, the annual training spend is around
Rs 1.5 crore.
Training and Development plays a vital role in CEP, which pertains to identification of
training needs through a joint process of discussion between Appraise and Appraiser. The
employee himself does this through guidance, feedback counseling and task force
assignment including self-development initiatives.
10. ANALYSIS AND INTERPRETATION
Q1. Do you think that Performance Appraisal is essential for the employees of the
company?
a) Fully
b) Partially
c) Not at all
Not at all
Partially 0%
20%
Fully
Partially
Not at all
Fully
80%
Analysis and Interpretation:
It shows 80% of the employees agree that performance appraisal is essential for the
employees of the company and 20% of the employees partially agree.
Currently annual appraisal system in Dabur India Limited is carried out for the employees
at executive levels and above only. The target set may be reviewed quarterly so that
strengths and weaknesses, if any, can be assesses and remedial measures suggested
accordingly.
Q2: Performance appraisal has been described as the responsibility, which is not liked
by the superiors. Do you think so?
a) Yes
b) Partially
c) Not at all
Not at all
Yes
27%
27%
Yes
Partially
Not at all
Partially
46%
Analysis and Interpretation:
46% executives say that they consider performance appraisal as the responsibility they
liked the least. 27% executives agree that it is a responsibility not liked by them and
remaining 27% denies about any such probability.
Considerable amount of time is spent for getting the appraisals done as per the existing
system. The company should improve the existing system by designing and
implementing departmental performance review system on a quarterly basis.
Q3: Do you agree that self-appraisal prior to performance appraisal facilitates you to
get high ratings?
a) Completely
b) Partially
c) Not at all
Completely
Not at all
27%
27%
Completely
Partially
Not at all
Partially
46%
*
Analysis and Interpretation:
45.5% of the employees say partially self-appraisal facilitates to get high ratings, 27.3%
employees agree completely and other 27.2% say self-appraisal does not help in high
ratings in performance appraisal.
Many FMCG companies (eg. Britannia) have implemented the self-appraisal system.
This has proved helpful in identifying the needs for in-house group
discussions/counseling methods/training and development programs.
Q4: Does your supervisor give you effective feedback on a regular basis?
a) Yes
b) Depends on the employees
c) Not at all
100
90
Yes
80
70 Depends on the
60 employees
Percentage 50 Not at all
40
30
20
10
0
Yes Depends on the Not at all
employees
Analysis and Interpretation:
It is clear in the graph that 100% of the employees say that the superior gives them
effective feedback on a regular basis.
Any company should give feedback to the employees periodically. They can also extend
proper diagnostic tips/ counseling methods at the required level.
Q5: Do you think that performance appraisal is the tool that improves employees’
performance level?
a) To a great extent
b) To some extent
c) Not at all
Not at all
To some extent
8%
18%
To some extent
To a great extent
Not at all
To a great extent
74%
Analysis and Interpretation:
The graph shows 74% employees agree that up to a great extent, 18% say that to some
extent and 8% of the employees believe performance appraisal not at all improves
performance appraisal.
Currently the company’s existing appraisal system is on annual basis. This may be
reviewed on a quarterly basis, which will help in assessing the strengths and weaknesses
of executives and role modifications can be suggested accordingly.
100%
90%
80%
70%
60%
50%
40% Consistently
30% Occassionally
Never
20%
10%
0%
Consistently Occassionally Never
Opinion of employees
Analysis and Interpretation:
The graph shows 100% of the employees are consistently capable of attaining their set
goals.
The target achieved by the employees may be vis-à-vis the target achieved last year. The
company should endorse proper diagnostic mapping for role modifications/ training and
development needs.
Q7: To what extent is the Dabur India Limited making progress towards its mission
and goals?
a) To a great extent
b) To some extent
c) No opinion
No opinion
To some extent
0%
18%
To some extent
To a great extent
No opinion
To a great extent
82%
Analysis and Interpretation:
In this graph 82% of the employees say that Dabur India Limited is making progress
towards its mission and goals to a great extent and 18% employees say that only to some
extent company is making progress towards mission and goals.
For the further progress of company’s mission and goals organizational planning and
development department should be involved for quarterly analysis of the feedback
received.
Q8: Do you get merit raise when the performance evaluation indicates that you are
meeting the set standard on the job?
a) To a great extent
b) To some extent
c) Not at all
Not at all
10%
To some extent
20% To a great extent
To some extent
Not at all
To a great
extent
70%
Apart from the merits awarded based on the performance indicators, HR should introduce
system for proper recognition rewards to such employees.
Q9: Do your co-workers and superiors help you to cope up with your poor
performance?
a) To a great extent
b) To some extent
c) Not at all
Not at all
0%
To some extent
To some extent
47%
To a great extent To a great extent
53% Not at all
Dabur India Limited can also concentrate on designing and implementing proper in-house
counseling program through group discussions/ personal interaction.
Q10: In your opinion to what extent are the superiors responsible for the progress of
Dabur India Limited?
a) To a great extent
b) To some extent
c) Not at all
To some extent
Not at all 28%
35%
To some extent
To a great extent
Not at all
To a great extent
37%
The graph shows 37% of the employees believe to a great extent superiors are responsible
for the progress, 28% are responsible to some extent and 35% say the superiors are not at
all responsible for the progress of the company.
For the progress of the company the performance appraisal of the top-level management
are also to be carried on a quarterly basis. Competency skills are to be assessed and
effective role modification areas are to be suggested.
10.1 QUESTIONNAIRE ON PERFORMANCE APPRAISAL
Name:
Age:
Gender:
Qualification:
Experience:
Department:
Q1: Do you think that Performance Appraisal is essential for the employees of
the company?
a) Fully
b) Partially
c) Not at all
Q4: Does your supervisor give you effective feedback on a regular basis?
a) Yes
b) Depend on the employees
c) Not at all
Q5: Do you think that performance appraisal is the tool that improves
employees’ performance level?
a) To a great extent
b) To some extent
c) Not at all
Q6: Are you capable of achieving the goals set for you?
a) Consistently
b) Occasionally
c) Never
Q7: To what extent is the Dabur India Limited making progress towards its
mission and goals?
a) To a great extent
b) To some extent
c) No opinion
Q8: Do you get merit raise when the performance evaluation indicates that you
are meeting the set standard on the job?
a) To a great extent
b) To some extent
c) Not at all
Q9: Do your co-workers and superiors help you to cope up from your poor
performance?
a) To a great extent
b) To some extent
c) Not at all
Q10: In your opinion to what extent the superiors responsible for the progress of
Dabur India Limited?
a) To a great extent
b) To some extent
c) Not at all
11. SUMMARY OF FINDING
• Superiors should give feedback to employees periodically. They can also provide
proper diagnostic tips/ counseling methods at required level.
• Dabur has an existing system on annual basis. They can review on quarterly basis.
• Dabur India Limited can endorse proper diagnostic mapping for role
modifications/ training and development needs.
• For the merit raise, HR should introduce system for proper recognition rewards to
such employees.
• Competency skills should be assessed and effective role modification areas can be
suggested for the better progress of the company.
12. RECOMMENDATION
• In order to have a better liaison within the co-workers and their superiors the
company should have a well-planned communication system and employees’ views
should be taken into consideration.
In the new millennium when the corporate world is designing newer techniques for
developing employees and retaining them, Dabur India Limited is no way behind and the
organizational structure is such that people works hand in hand to align the organizational
goals with the individuals’ goals.
To sum it up, this project has provided me with opportunities to learn different areas of
the HR function and has given me stepping-stones to climb up to reach the summit of HR
at the end of my career.
14. BIBLIOGRAPHY
For the purpose of this study, some broad sources of literature were referred to:
• Textbooks
i) Human Resource and Personnel Management- By K.Ashwathappa
ii) The essence of Human Resource Management- By Eugene Mc Kenna
iii) Organizational Theory- By Gareth Jones
iv) Organizational Behavior- By Stephen Robbins
• Internet Portals
www.dabur.com
www.google.com
www.humanresourcesmagazine.com.au
Intranet of Dabur