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INTRODUCTION

Human Resource Management:

The Human Resources Management (HRM) function includes a


variety of activities, and key among them is deciding what staffing needs
you have and whether to use independent contractors or hire employees
to fill these needs, recruiting and training the best employees, ensuring
they are high performers, dealing with performance issues, and ensuring
your personnel and management practices conform to various regulations.
Activities also include managing your approach to employee benefits and
compensation, employee records and personnel policies. Usually small
businesses (for-profit or nonprofit) have to carry out these activities
themselves because they can't yet afford part- or full-time help. However,
they should always ensure that employees have -- and are aware of --
personnel policies which conform to current regulations. These policies
are often in the form of employee manuals, which all employees have.

Note that some people distinguish a difference between HRM (a


major management activity) and HRD (Human Resource Development, a
profession). Those people might include HRM in HRD, explaining that
HRD includes the broader range of activities to develop personnel inside
of organizations, e.g., career development, training, organization
development, etc.

There is a long-standing argument about where HR-related


functions should be organized into large organizations, eg, "should HR be
in the Organization Development department or the other way around?"

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The HRM function and HRD profession have undergone
tremendous change over the past 20-30 years. Many years ago, large
organizations looked to the "Personnel Department," mostly to manage
the paperwork around hiring and paying people. More recently,
organizations consider the "HR Department" as playing a major role in
staffing, training and helping to manage people so that people and the
organization are performing at maximum capability in a highly fulfilling
manner.

Recently, the phrase "talent management" is being used to refer the


activities to attract, develop and retain employees. Some people and
organizations use the phrase to refer especially to talented and/or high-
potential employees. The phrase often is used interchangeably with the
field of Human Resource Management -- although as the field of talent
management matures, it's very likely there will be an increasing number
of people who will strongly disagree about the interchange of these fields.
For now, this Library uses the phrases interchangeably.

Performance Appraisal:

Simply put, it is the observation and evaluation of a school


employee’s work behavior and accomplishments for the purpose of
making decisions about the staff member. These decisions may include
wage, salary, and benefit determinations; promotion, demotion, transfer,
or termination actions; and coaching and counseling, training, or career
development options.

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There are three basic functions of an effective performance appraisal:

1. To provide adequate feedback to staff members on their performance

2. To serve as an opportunity to communicate face-to-face modifications


or changes to existing performance objectives

3. To provide data to administrators so they can evaluate a staff member


and judge future job assignments and compensation

The notion of performance appraisal has become an almost


universally accepted fact of life in most organizations. It often serves as
the basis for other human resource systems, such as salary management,
career development, and selection processes. Because of all of these uses
for the performance appraisal process, it is increasingly important that
school leaders more than ever need to improve their managerial and
supervisory skills in such areas as creating individual performance
standards, getting employee commitment to performance standards, and
conducting interim and end-of-year performance appraisal meetings.

Finally, the report is rounded up by presenting a case study


The report is made useful for readers by incorporating Suggestions and
Recommendations for all concerned on how to make a grand success of
appraisal system followed by their organizations.

Few blank formats of different appraisal methods and processes


have been included as in the report to show how today’s successful
organizations are trying to assess and evaluate their employee
performance.

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NEED OF THE STUDY

• This project has been undertaken to share my experiences on


Performance appraisal system as well as to enhance my
understanding of this fascinating subject by doing some study &
research in Coca-Cola company.

• The project explains the meaning of Performance Appraisal,


different methods used to evaluate the performance of employees
located in Coca-Cola company, its effective implementation and
the benefits of the system.

• It also aims at understanding the problems associated with


performance appraisal and suggests measures to be adopted to
overcome these issues at the company.

• Overall objective of the project is to understand the effectiveness


of performance appraisal system on Coca-Cola beverages ltd.

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SCOPE OF THE PROJECT

This project report covers the definition and meaning of


Performance Appraisal. It elucidates the benefits and drawbacks of the
traditional methods as well as recent advances in the field of performance
appraisal.

The project throws light on the concern areas for different people
involved in the appraisal process and attempts to find out ways to
overcome those problems.

Few formats of the performance appraisal forms have been


included in the project to show the way different companies are
evaluating the performance of their employees.

Thus, through this project report one can:

 have a reasonable understanding of the term performance


appraisal;

 understand what needs to be done for its effective implementation;

 know the key areas of performance indicators;

 understand the benefits of the system;

 know how it helps in designing the Performance Rated Pay system;

 know how it helps in planning of career of employees;

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METHODOLOGY

The study of the topic “ Performance Appraisal” has been done through
various sources.

The Primary source includes the personal experience, which has


been added in this project as the `Sample of Current Practice-Case Study’

The Secondary sources include:

• Information gathered through surfing the internet;


• Information available on intranet site on knowledge management;
• Different study materials;
• Private circulations from consultants;
• Deliberations with practicing consultants and experts in the field;
• Sample performance appraisal forms obtained from reliable
resources.

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LIMITATIONS

 The present study is conducted through personal interview with


questionnaire.

 This survey is conducted within limited time period 7days.

 In the personal interviews can include personal bias between the


respondent and me.

 This survey is conducted for only limited members that is 30.

 The project duration is too limited to 2 months only.

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A BRIEF INSIGHT – THE BEVERAGE INDUSTRIES IN
INDIA

In India, beverages form an important part of the lives of people. It


is an industry, in which the players constantly innovate, in order to come
up with better products to gain more consumers and satisfy the existing
consumers.

BEVERAGES

Alcoholic Non-Alcoholic

Carbonated Non-Carbonated

Cola Non-Cola Non-Cola

(FIGURE 1: BEVERAGE INDUSTRY IN INDIA)

The beverage industry is vast and there various ways of segmenting it,
so as to cater the right product to the right person. The different ways of
segmenting it are as follows:
• Alcoholic, non-alcoholic and sports beverages
• Natural and Synthetic beverages
• In-home consumption and out of home on premises consumption.
• Age wise segmentation i.e. beverages for kids, for adults and for
senior citizens
• Segmentation based on the amount of consumption i.e. high levels
of consumption and low levels of consumption.
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If the behavioral patterns of consumers in India are closely noticed,
it could be observed that consumers perceive beverages in two different
ways i.e. beverages are a luxury and that beverages have to be consumed
occasionally. These two perceptions are the biggest challenges faced by
the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as
well as and to make the industry more affordable.

Four strong strategic elements to increase consumption of the


products of the beverage industry in India are:
• The quality and the consistency of beverages needs to be enhanced
so that consumers are satisfied and they enjoy consuming
beverages.
• The credibility and trust needs to be built so that there is a very
strong and safe feeling that the consumers have while consuming
the beverages.
• Consumer education is a must to bring out benefits of beverage
consumption whether in terms of health, taste, relaxation,
stimulation, refreshment, well-being or prestige relevant to the
category.
• Communication should be relevant and trendy so that consumers
are able to find an appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and
also a wider spread of distribution. It is important to look at the entire
beverage market, as a big opportunity, for brand and sales growth in
turn to add up to the overall growth of the food and beverage industry
in the economy.

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COCA - COLA INTERNATIONAL

History:
Coca-Cola Enterprises, established in 1986, is a young
company by the standards of the Coca-Cola system. Yet each of
its franchises has a strong heritage in the traditions of Coca-Cola
that is the foundation for this Company.

The Coca-Cola Company traces it’s beginning to 1886,


when an Atlanta pharmacist, Dr. John Pemberton, began to
produce Coca-Cola syrup for sale in fountain drinks. However
the bottling business began in 1899 when two Chattanooga
businessmen, Benjamin F. Thomas and Joseph B. Whitehead,
secured the exclusive rights to bottle and sell Coca-Cola for most
of the United States from The Coca-Cola Company.

The Coca-Cola bottling system continued to operate as


independent, local businesses until the early 1980s when bottling
franchises began to consolidate. In 1986, The Coca-Cola
Company merged some of its company-owned operations with
two large ownership groups that were for sale, the John T.
Lupton franchises and BCI Holding Corporation's bottling
holdings, to form Coca-Cola Enterprises Inc. The Company
offered its stock to the public on November 21, 1986, at a split-
adjusted price of $5.50 a share. On an annual basis, total unit
case sales were 880,000 in 1986.

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In December 1991, a merger between Coca-Cola
Enterprises and the Johnston Coca-Cola Bottling Group, Inc.
(Johnston) created a larger, stronger Company, again helping
accelerate bottler consolidation. As part of the merger, the senior
management team of Johnston assumed responsibility for
managing the Company, and began a dramatic, successful
restructuring in 1992.Unit case sales had climbed to 1.4 billion,
and total revenues were $5 billion.

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Type Public (NYSE: KO)
Founded 1892 by Asa Griggs Candler
Headquarters Atlanta, Georgia, United States
Area served Worldwide
E. Neville Isdell (Chairman)
Key people
Muhtar Kent (Chairman-elect, CEO)[1]
Industry Beverage
Coca-Cola
Carbonated soft drinks
Products Water
Other Non-alcoholic beverages

Market cap USD 141.463 Billion (2008)


Revenue ▲ USD 28.857 Billion (2007) [1]
Operating
▲ USD 7.252 Billion (2007) [2]
income
Net income ▲ USD 5.981 Billion (2007) [3]
Total assets ▲ USD 43,103 MILLIONS (2009 APRIL )
Total equity ▲ USD 21,108 MILLIONS (2009 APRIL)
Employees 90,500 (2008)
Website www.TheCoca-ColaCompany.com
MANIFESTO FOR GROWTH

VALUES :

Coca-Cola is guided by shared values that both the employees as


individuals and the Company will live by; the values being:

• LEADERSHIP: The courage to shape a better future

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• PASSION: Committed in heart and mind
• INTEGRITY: Be real
• ACCOUNTABILITY: If it is to be, it’s up to me
• COLLABORATION: Leverage collective genius
• INNOVATION: Seek, imagine, create, delight
• QUALITY: What we do, we do well

VISION FOR SUSTAINABLE GROWTH

• PROFIT: Maximizing return to shareowners while being mindful


of our overall responsibilities.
• PEOPLE: Being a great place to work where people are inspired
to be the best they can be.
• PORTFOLIO: Bringing to the world a portfolio of beverage
brands that anticipate and satisfy peoples’ Desires and needs.
• PARTNERS: Nurturing a winning network of partners and
building mutual loyalty.
• PLANET: Being a responsible global citizen that makes a
difference.

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(FIGURE 2: VISION FOR SUSTAINABLE GROWTH)

MISSION

To create consumer products, services and communications, customer


service and bottling system strategies, processes and tools in order to
create competitive advantage and deliver superior value to;
• Consumers as a superior beverage experience

• Consumers as an opportunity to grow profits through the use of


finished drinks

• Bottlers as an opportunity to grow profits in volumes

• Bottlers as a trademark enhancement and positive economic value


added

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• Suppliers as an opportunity to make reasonable profits when
creating real value-added in an environment of system-wide team
work, flexible business system and continuous improvement

• Indian society in the form of a contribution to economic and social


development.

• To Refresh the World... In body, mind, and spirit

• To Inspire Moments of Optimism... Through our brands and our


actions

• To Create Value and Make a Difference... Everywhere we engage.

QUALITY POLICY

“To ensure customer delight, we commit to quality in our thoughts,


deeds and actions by continually improving our processes…Every time.”

OBJECTIVES/GOALS

Coca-Cola main objectives are to supply everyone their favourite


drink and to satisfy the consumer needs and wants. Coca-Cola second
main objectives are to provide profit to the shareholders and increase the
market share.

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YEAR WISE HISTORY OF BOTTLING

Year 1894: A modest start for a bold idea:


In a candy store in Vicksburg, Mississippi, brisk sales of the new
fountain beverage called Coca-Cola impressed the store's owner, Joseph
A. Biedenharn. He began bottling Coca-Cola to sell, using a common
glass bottle called a Hutchinson. Biedenharn sent a case to Asa Griggs
Candler, who owned the Company. Candler thanked him but took no
action. One of his nephews already had urged that Coca-Cola be bottled,
but Candler focused on fountain sales.

Year 1899: The first bottling agreement:

Two young attorneys from Chattanooga, Tennessee believed they


could build a business around bottling Coca-Cola. In a meeting with
Candler, Benjamin F. Thomas and Joseph B. Whitehead obtained
exclusive rights to bottle Coca-Cola across most of the United States for a
sum of one dollar. A third Chattanooga lawyer, John T. Lupton, soon
joined their ventur
Years 1900-1909: Rapid growth:

The three pioneer bottlers divided the country into territories and
sold bottling rights to local entrepreneurs. Their efforts were boosted by
major progress in bottling technology, which improved efficiency and
product quality. By 1909, nearly 400 Coca-Cola bottling plants were
operating, most of them family-owned businesses. Some were open only
during hot-weather months when demand was high

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Year 1916: Birth of the Contour Bottle:

Bottlers worried that Coca-Cola's straight-sided bottle was easily


confused with imitators. A group representing the Company and bottlers
asked glass manufacturers to offer ideas for a distinctive bottle. A design
from the Root Glass Company of Terre Haute, Indiana won enthusiastic
approval. The Contour Bottle became one of the few packages ever
granted trademark status by the U.S. Patent Office. Today, it is one of the
most recognized icons in the world.

In the 1920s: Bottling overtakes fountain sales:

As the 1920s dawned; more than 1,000 Coca-Cola bottlers were


operating in the U.S. Their ideas and zeal fueled steady growth. Six-
bottle cartons were a huge hit starting in 1923. A few years later, open-
top metal coolers became the forerunners of automated vending
machines. By the end of the 1920s, bottle sales of Coca-Cola exceeded
fountain sales

In the 1920s and 1930s: International expansion:

Led by Robert W. Woodruff, chief executive officer and chairman


of the Board, the Company began a major push to establish bottling
operations outside the U.S. Plants were opened in France, Guatemala,
Honduras, Mexico, Belgium, Italy and South Africa. By the time World
War II began, Coca-Cola was being bottled in 44 countries.

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In the 1940s: Post-war growth:

During the war, 64 bottling plants were set up around the world to
supply the troops. This followed an urgent request for bottling equipment
and materials from General Eisenhower's base in North Africa. Many of
these war-time plants were later converted to civilian use, permanently
enlarging the bottling system and accelerating the growth of the
Company's worldwide business.

In the 1950s: Packaging innovations:


For the first time, consumers had choices of Coca-Cola package
size and type-the traditional 6.5 ounce Contour Bottle, or larger servings
including 10, 12 and 26 ounce versions. Cans were also introduced,
becoming generally available in 1960.
In the 1960s: Introduction of new brands:

Sprite, Fanta, Fresca and TAB joined brand Coca-Cola in the


1960s. Mr. Pibb and Mello Yello were added in the 1970s. The 1980s
brought diet Coke and Cherry Coke, followed by PowerAde and
Fruitopia in the 1990s. Today scores of other brands are offered to meet
consumer preferences in local markets around the world.

In the 1970s and 1980s: Consolidation to serve customers:

Advancement in technology led to global economy, retail


customers of The Coca-Cola Company merged and evolved into
international mega chains. Such customers required a new approach. In
response, many small and medium-size bottlers consolidated to better
serve giant international customers. The Company encouraged and

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invested in a number of bottler consolidations to assure that its largest
bottling partners would have capacity to lead the system in working with
global retailers.

In the 1990s: New and growing markets:

Political and economic changes opened vast markets that were


closed or underdeveloped for decades. After the fall of the Berlin Wall,
the Company invested heavily to build plants in Eastern Europe. As the
century closed, more than $1.5 billion was committed to new bottling
facilities in Africa.

21st Century: Coca-Cola today:


The Coca-Cola bottling system grew up with roots deeply planted
in local communities. This heritage serves the Company well today as
consumers seek brands that honor local identity and the distinctiveness of
local markets. As was true a century ago, strong locally based
relationships between Coca-Cola bottlers, customers and communities are
the foundation on which the entire business grows.

The per capita consumption of company beverage products (not


just Coca-Cola) in 2009: Mexico comes in number one with a staggering
665 (8 fluid ounces) servings, followed by Malta with 598, Chile 426,
U.S.399 and Australia 332.

Interestingly, the number one sparkling (carbonated) soft drink in


China is Sprite; and in India is Thums Up (acquired by Coca-Cola in
1993), followed by Sprite. Even in Japan, Coca-Cola’s Georgia Coffee is
the number one soft drink. As consumer tastes vary from country to

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country, it is nearly impossible to have the same beverage top the
rankings in every market, but having the right portfolio strategy can still
put the company in the leadership position.

Globally, Coca-Cola has achieved No. 1 global ranking for


Sparkling Beverages, Juices and Juice Drinks, Ready-to-Drink Coffees
and Teas. The company is No.2 in Sports Drinks, No.3 in Packaged
Water, and Energy Drinks. Coca-Cola is working hard to achieve No. 1 in
all these NARTD (Non-Alcoholic Ready-To-Drink) beverage categories.

Another interesting tidbit is that Nestea is not mentioned at all in


the 2009 Annual Review. In the 2008 Annual Review, Nestea is listed as
one of Coca-Cola’s 13 billion dollar brands. Nestea trademark belongs to
Nestle and the beverage is being marketed and distributed throughout the
Coca-Cola system, and Beverage Partners Worldwide, a joint-venture
between Coca-Cola and Nestle.

In the 2009 report, Simply was the latest Coca-Cola brand to break
the one-billion dollar revenue in a year and was added to the list of
Billion Dollar Brands.

Looking at The Coca-Cola Company website, the corporate press


release dated February 11, 2010, was the first time that Simply brand was
added to the list of billion dollar brands and the total became 14. The
press release dated March 26, 2010, still listed 14 billion dollar brands,
but the press release dated March 29, 2010, the list became 13 billion
dollar brands.

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So why did Coca-Cola exclude Nestea from its billion dollar brands list?

Coca-Cola Nestle partnership started two decades ago in 1991 with


Coca-Cola Nestle Refreshments to market read-to-drink coffee and tea.
Then in 2001, the partnership was renewed as Beverage Partner
Worldwide, but in late 2006, the scope of products was reduced to just
ready-to-drink tea.

For coffee, Coca-Cola turned from the Swiss to the Italians by


signing a global partnership with illycaffè SpA to develop and market
ready-to-drink coffee under the illy issimo brand in late 2007 with final
agreement inked in March 2008.

In February 2008, Coca-Cola took a 40% stake in Honest Tea with


the rights to acquire the company after 3 years.

Personally, CEO of coca-cola enjoy Honest Tea more than Nestea.


Although CEO also like Gold Peak which was developed and marketed
by Beverage Partners Worldwide, it is very hard to find Gold Peak in
stores. Coca-Cola is expected to acquire 100% of Honest Tea in 2011 and
perhaps expand this popular brand.

Another brand that CEO have seen brewing in the Coca-Cola tea
portfolio is Fuze. Already CEO have seen Fuze brand freshly brewed tea
dispensers in Subway restaurants. Fuze is also a recent acquisition by
The Coca-Cola Company from 3 years ago.

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CEO don't know why Nestea got dropped from the list, but I am
not going to miss Nestea if it disappears from the shelves or vending
machines in the U.S. as it has in Japan a few years ago.

SWOT Analysis of Coca-Cola:

SWOT stands for Strengths Weakness Opportunities Threats.


SWOT analysis is a technique much used in many general management
as well as marketing scenarios. SWOT consists of examining the current
activities of the organization- its Strengths and Weakness- and then using
this and external research data to set out the Opportunities and Threats
that exist.

Strengths:

Coca-Cola has been a complex part of world culture for a very long
time. The product's image is loaded with over-romanticizing, and this is
an image many people have taken deeply to heart. The Coca-Cola image
is displayed on T-shirts, hats, and collectible memorabilia. This
extremely recognizable branding is one of Coca-Cola's greatest strengths.
"Enjoyed more than 685 million times a day around the world Coca-Cola
stands as a simple, yet powerful symbol of quality and enjoyment”
(Allen, 1995).

Additionally, Coca-Cola's bottling system is one of their greatest


strengths. It allows them to conduct business on a global scale while at
the same time maintain a local approach. The bottling companies are
locally owned and operated by independent business people who are
authorized to sell products of the Coca-Cola Company. Because Coke

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does not have outright ownership of its bottling network, its main source
of revenue is the sale of concentrate to its
bottlers.

Weaknesses:

Weaknesses for any business need to be both minimised and


monitored in order to effectively achieve productivity and efficiency in
their business’s activities, Coke is no exception. Although domestic
business as well as many international markets are thriving (volumes in
Latin America were up 12%), Coca-Cola has recently reported some
"declines in unit case volumes in Indonesia and Thailand due to reduced
consumer purchasing power." According to an article in Fortune
magazine, "In Japan, unit case sales fell 3% in the second quarter [of
1998]...scary because while Japan generates around 5% of worldwide
volume, it contributes three times as much to profits. Latin America,
Southeast Asia, and Japan account for about 35% of Coke's volume and
none of these markets are performing to expectation.

Coca-Cola on the other side has effects on the teeth which is an


issue for health care. It also has got sugar by which continuous drinking
of Coca-Cola may cause health problems. Being addicted to Coca-Cola
also is a health problem, because drinking of Coca-Cola daily has an
effect on your body after few years.

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Opportunities:

Brand recognition is the significant factor affecting Coke's


competitive position. Coca-Cola's brand name is known well throughout
94% of the world today. The primary concern over the past few years has
been to get this name brand to be even better known. Packaging changes
have also affected sales and industry positioning, but in general, the
public has tended not to be affected by new products. Coca-Cola's
bottling system also allows the company to take advantage of infinite
growth opportunities around the world. This strategy gives Coke the
opportunity to service a large geographic, diverse area.

Threats:
Currently, the threat of new viable competitors in the carbonated
soft drink industry is not very substantial. The threat of substitutes,
however, is a very real threat. The soft drink industry is very strong, but
consumers are not necessarily married to it. Possible substitutes that
continuously put pressure on both Pepsi and Coke include tea, coffee,
juices, milk, and hot chocolate. Even though Coca-Cola and Pepsi control
nearly 40% of the entire beverage market, the changing health-
consciousness of the market could have a serious affect. Of course, both
Coke and Pepsi have already diversified into these markets, allowing
them to have further significant market shares and offset any losses
incurred due to fluctuations in the market. Consumer buying power also
represents a key threat in the industry. The rivalry between Pepsi and
Coke has produce a very slow moving industry in which management
must continuously respond to the changing attitudes and demands of their
consumers or face losing market share to the competition. Furthermore,

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consumers can easily switch to other beverages with little cost or
consequence.
Product Life Cycle:

When referring to each and every product or service ever placed


before the consumer i.e. in the long term all the existing products and
services are dead. For e.g.:- Replacement of Ford Cortina ( a highly
successful car) by Ford Sierra, the replacement of sierra by the Ford
Mondeo and the replacement of the old Mondeo by the new Mondeo in
2001. So every product is born, grows, matures and dies. So in the
commercial market place products and services are created, launched and
withdrawn in a process known as Product Life Cycle.
To be able to market its product properly, a business must be aware of the
product life cycle of its product. The standard product life cycle tends to
have five phases: Development, Introduction, Growth, Maturity and
Decline. Coca-Cola is currently in the maturity stage, which is evidenced
primarily by the fact that they have a large, loyal group of stable
customers.
Furthermore, cost management, product differentiation and marketing
have become more important as growth slows and market share becomes
the key determinant of profitability. In foreign markets the product life
cycle is in more of a growth trend Coke's advantage in this area is mainly
due to its establishment strong branding and it is now able to use this area
of stable profitability to subsidize the domestic cola wars.

All objectives should be SMART i.e. Specific, Measurable,


Achievable, Realistic, and Timed.

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Selecting Target Market

Once the situation analysis is complete, and the marketing


objectives determined, attention turns to the target market. The soft drink
market is very large, and the business cannot be “all things to all people”,
so it must choose which market segments have the greatest potential. The
target market is the group of customers on whom the business focuses
attention. The target market is where Coca Cola focuses its marketing
efforts as it feels this is where it will be most productive and successful.
The target market for Coca cola is very wide as it satisfy’s the needs for
many different consumers, ranging from the healthy diet consciousness
through Diet Coke to the average human through its best selling drink
regular Coke. Most Coke products satisfy all age groups as it is proven
that most people of different age groups consume the Coca Cola product.
This market is relatively large and is open to both genders, thereby
allowing greater product diversification.

There are four broad ways which Coca Cola can segment its market:

→ Mass marketing
→ Concentrated marketing
→ Differentiated marketing
→ Niche marketing

The most apparent method used by Coca Cola is with no doubt the
differentiated marketing method as Coke satisfy’s a range of different
markets. Diet coke satisfy’s the weight consciousness, regular coke,
sprite, fanta the average human, coffee, iced tea etc. Each group of
beverages satisfy a particular group of people.

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2020 vision:

We have also begun rolling out our 2020 Vision, the roadmap for
winning together with our worldwide bottling partners. Our 2020 Vision
roadmap is bringing new clarity and focus to our global business and is
ensuring that our system is ideally positioned to make the most of the
abundant opportunities ahead of us. We believe our unique global
franchise model is the best way to win in the market, while providing
sustainable profitable growth for our customers and shareowners. Our
priorities remain centered on superior execution to drive value for today
while strategically investing in growth for tomorrow. Over the next
decade, we expect to see a global economy inevitably strengthened by
attractive demographic shifts, rapid urbanization, renewed entrepreneurial
energy and improved consumer sentiment. These trends bode well for the
future of The Coca-Cola Company and our system.”

♠ The Global Economic Recession Threatens Overall


Demand:

In 2008 and 2009, the global economy has fallen into a recession.
Not just the United States but countries from all over the world have felt
the impacts of the 2008 Financial Crisis. This may be a problem for
Coke, which derives approximately 75% of its sales from outside North
America. Still, the company has positioned itself well in international
markets both organically and through acquisitions, such as that of
Chinese juice maker Huiyuan for $2.4 billion. However the company was
unsuccessful with its purchase of Huiyuan as it broke anti trust laws in
China. On March 5, 2010, Coke's CEO said that emerging markets are
bouncing back quicker than more developed markets.

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“ PERFORMANCE APPRAISAL”

I. Background:

1. The concept of Performance Appraisal dates back to the First


World War and was then called “Merit Rating Programme”.
Over a period of time, this concept has been through an ocean
of change. The areas of evaluation have also changed.

2. Once an employee has been selected, trained and embarked on


his duties, it is time for performance appraisal. What is
performance appraisal? Why do companies need to take up this
task?

3. According to Carl Heyel, author/editor on management,


philosopher and teacher, “it is the process of evaluating the
performance and qualifications of the employees in terms of job
requirements, for administrative purposes such as placement,
selection and promotion, to provide financial rewards and other
actions which require differential treatment among the members
of a group as distinguished from actions affecting all members
equally”.

II. An integral part of performance management system:

1. Effective performance management requires a good deal of


face-to-face supervisor-employee interaction. By knowing the
subordinates, a supervisor can steer them onto a path of greater
productivity and optimized output. Long-term successful

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business owners view performance appraisal as a process of
getting to know the people who work for them. It is the most
significant and indispensable tool for an organization. It
provides information, which helps in taking important decisions
for the development of an individual and the organization.

2. Thus, one phase of the annual performance management cycle


is performance appraisal, the process of reviewing employee
performance vis-à-vis the set expectations in a realistic manner,
documenting the review, and delivering the review verbally in a
face-to-face meeting, to raise performance standards year over
year through honest and constructive feedback. In the process
management expects to reinforce the employee’s strengths,
identify improvement areas so that one can work on them and
also set stretched goals for the coming year.

3. It is composed of the following two processes both of which are


qualitative subject to human bias –
a. observation and
b. judgment

4. The parameters of performance are a combination of technical


expertise and behavioral attributes. The latter scores a high
degree of relevance with regard to potential appraisal.

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III. Concept Of Performance Appraisal:

The concept of Performance Appraisal can be explained with the


analogy illustrated below:

→ The head of the key represents the uniqueness of the employee.


No two employees are alike.
→ The ring represents the management’s requirement -the job
content.
→ The shaft represents the communication between the employee
and the company, the transmission of the task and the response
from the performer.

IV. Change:

1. A few decades ago, the employee used to be appraised by his


department head. The department head used to communicate his
feedback and comments only to the immediate superior of the
employee. Thus the feedback was kept confidential in nature.
As time passed by, the immediate superior started appraising his
subordinate’s performance and sending his confidential report to
the department head. These were the periods when the employee
was not included in his appraisal process. The decisions used to

30
be taken by his superiors relating to his pay hike, promotion etc.
Thus the system was non-transparent.

2. The current process of performance appraisal is much more


open and gives some scope for self-appraisal by the employee.
The self-appraisal is followed by a joint discussion with
superior and then a decision is taken by the department head on
his promotion, pay hike etc. The feedback relating to his
performance is directly given to the employee. Thus
performance appraisal process has gone through the phase of
non-transparency to transparency.

3. In this transparency phase, a performance appraisal can be


defined as a structured formal interaction between a subordinate
and supervisor, that usually takes the form of a periodic
interview (annual or bi-annual), in which the work performance
of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities
for improvement and skills development.

4. Whether an organization accepts or not the usefulness of


Performance Appraisal, whether it adopts a formal appraisal
system or not, top management is constantly appraising the
performance of its subordinate managers in day-to-day
interaction. The latter are doing the same to their own
subordinates. They are doing so because Performance
Appraisal, formal or informal, lies at the heart of art of
managing.

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5. Managing is a dynamic process, concerned almost entirely with
the present and the future, whereas Performance Appraisal, as
generally used has been a static rating of an employee related
almost entirely with the past. Recently, as some managements
were recognizing that “rating” by itself had very limited utility,
they began to appreciate that managing had evolved into an art.
They saw that “management by hunch” could not longer be
tolerated, and that measurements-no matter how vague – were
essential for the future development of the art of managing.

6. The need for measurements gave birth to several “systems” of


managing which attempted to apply measurements of various
sorts to the different aspects and elements of the manager’s job.
A number of these systems leaned on the better Performance
Appraisal methods for their measuring devices or at least for a
starting point for measurement. In some instances, these
systems expanded or broadened the meaning of Performance
Appraisal from a mere rating to include the whole concept of
management with all its elements.

Foundations of Performance Appraisal:

Performance Appraisal assesses how well people have been doing


their jobs and what they must do to be better in their jobs. It deals with
the content of the job and what they are expected to achieve in each
aspect of their work. Following are the foundations in Performance
Appraisal process:

32
I. Job Profile:
Job description concentrates more on the definition of tasks the
jobholder has to accomplish. It includes details of reporting
relationship and normally covers the overall purpose of the job. It
indicates how an individual’s job will contribute to the achievement
of objectives of a team or a department and, ultimately the mission
of the organization.

II. Objectives:
An objective describes something, which has to be accomplished.
Objectives define what organizations, functions, departments, teams
and individuals are expected to achieve.
There are two types of objectives:

i. Work or Operational Objectives:


It refers to the results to be achieved or the contribution to be
made to the accomplishment of team, departmental and
corporate objectives.

ii. Developmental objectives:


It is concerned with what individual should do and learn to
improve their performance and/or their knowledge, skills and
competencies (training and personal development plans).

III. Competencies:
Competencies refer to the behavioral dimensions of a role. It is the
behavior required of people to carry out their work satisfactorily.
Competencies are what people bring to a job in the form of

33
different types and levels of behavior. They govern the process
aspects of job performance.

IV. Values:
Increasingly, organizations are setting out the core values that they
think should govern the behavior of all their employees. Value
statements may be prepared which define core values in areas such
as care for customers, concern for people, competitiveness,
excellence, growth, innovation.

Three Essential Steps For Effective Performance Appraisal:


The process of getting to know the people who work for the organization
involves three essential steps viz. training, evaluation and review.

I. Training:
Successful training is the implementation of a system in which
everyone in the workplace is geared towards improvement. It
involves a hands on approach in which the employee is encouraged
to evaluate himself or herself under the guidance of the appraiser.
How it works?
First, the appraiser includes the employee in the appraisal process.
When an employee knows that his or her opinion of other workers is
taken into account, he or she also realizes that everyone else’s opinion
matters just as much. This not only empowers the employee and
improves relations in the workplace, but it encourages higher
productivity as well. This interactive approach is made complete with
the leadership of the appraiser. Carefully administering praise coupled
with constructive criticism keeps the workforce on its toes.

34
II. Evaluation:
The best methods for employee evaluation are based on results
and behavior. While conducting performance appraisal based on
employees’ characteristic traits is quite common, the results are often
subjective and unsatisfactory. A results-based approach to performance
appraisal is by far the cleanest, most objective method of tackling the
complex task of evaluation. It uses a rating system to measure
productivity within a given timescale. If an employee makes a certain
number of sales in a certain week, he or she can be rated by sheer worth
as well as ranked against other employees. The study of behavior is
closely tied to productivity. The pace of work, willingness to put in
overtime and ability to work with others all contribute to overall
productivity.
III. Review:
The review process should, again, employ the techniques of
interactivity. Before sitting down together, the appraiser should give the
employee a chance to review himself or herself. This not only
empowers the employee, but also saves a lot of time and possible
contention during the actual discussion. Initially the appraiser should
walk the employee through the process. The successful supervisor starts
out with an overview of why the review session is needed. Then the
supervisor takes the employee down a point-by-point list of every
aspect of the job. In each case, the employee should be given a chance
to describe his or her achievements and shortcomings. The supervisor
should always supplement this with added insight. While praising and
applying criticism, the supervisor maintains authority throughout the
review and indeed, the entire appraisal process.

Objectives and Benefits:

35
The objectives and benefits of Performance Appraisal system can
be summarized as under:
I. Objectives:
Data relating to Performance Appraisal of employees are recorded,
stored and used for several purposes like:

• Let the employees know where they stand in so far as their


performance is concerned and to assist them with constructive
criticism and guidance for the purpose of their development.

• Assessment of skills within an organization.

• Set targets for future performance.

• Effect promotions based on competence and performance.

• Strengthen relationship between superior and subordinate.

• Assess the training and development needs of employees.

• Identify the strengths and weaknesses of employees.

• Decide upon a pay raise (increments).

• Improve communication as it not only provides a system for


dialogue between the superior and the subordinate, but also improves
understanding of personal goals and concerns. This can also have the
effect of increasing the trust between the appraiser and appraisee.

• Determine whether human resource programs such, as selection,


training and transfers have been effective or not.

II. Benefits:
The following are the benefits of a successful appraisal system:

1. For the Organization:

36
♦ Improved performance throughout the organization due to:

− Effective communication of organization’s objectives


and values.

− Increased sense of cohesiveness and loyalty.

− Managers are better equipped to use their leadership


skills and to develop their staff.

♦ Improved overview of tasks performed by each member of


a group.

♦ Identification of ideas for improvement.

♦ Creation and maintenance of a culture of continuous


improvement.

2. For the appraiser:

♦ Opportunity to develop an overview of individual jobs.

♦ Opportunity to identify strengths and weaknesses of


appraisees.

♦ Increased job satisfaction.

♦ Opportunity to link team and individual objectives with


department & organizational objectives.

♦ Opportunity to clarify expectations that the manager has


from teams and individuals.

♦ Opportunity to re-prioritize targets

♦ Means of forming a more productive relationship with staff


based on mutual trust and understanding.

♦ Due to all above Increased sense of personal value

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3. For the appraisee:

♦ Increased motivation and job satisfaction.


♦ Clear understanding of what is expected and what needs to be
done to meet expectations.
♦ Opportunity to discuss aspirations and any guidance, support or
training needed to fulfill these aspirations.
♦ Improved working relationships with the superior.
♦ Opportunity to overcome the weaknesses by way of counseling
and guidance from the superior
♦ Increased sense of personal value as he too is involved in the
appraisal process

In line with the objectives of Performance Appraisal, to reap it’s


benefits, this system has to be effective failing which it may mar the very
purpose of performance appraisal.

Effective Appraisal Process:


When it comes to performance appraisal, managers and employees
agree about one thing: They hate going through them. Employees,
managers and HR experts agree that fear, guilt, responsibility and
resentment are the real reasons why most employees dread the appraisal
process. Besides some think that it is a ritual that is mandatory to follow.

38
An effective review process helps organizations in three areas:
1. evaluation and improving personnel selection and training
systems;
2. preventing wrongful termination; and
3. increasing real employee diversity

I. Good appraisals start with information from multiple sources, and


they evaluate employees at all levels from top to bottom.

II. This system requires both the appraisee and appraiser to jointly
assess the employee’s ability to complete the duties and achieve the
goals set forth in the previous appraisal.

III. HR professionals should consider the following steps and make the
appraisal process simple yet effective:

• The performance Appraisal form should reflect the strategic


objectives of the company. Many organizations use a form that
contains several sections.

• The results and impact section should address accomplishments


related to job responsibilities, goals and projects. It is a review
of past performance.

• A skills and abilities section should discuss the ways those


results were accomplished. By listing the core competencies
for each job classification – and for the entire organization –
this section can address the kinds of behavior that are critical
for success.

IV. Appraisal results, either directly or indirectly, determine reward


outcomes. The better performing employees may get the majority
of available merit pay increases, bonuses and promotions, while the
39
poorer performers may require some form of counseling or in
extreme cases no increases in pay. The assignment and justification
of rewards and penalties through performance appraisal is a very
uncertain and controversial matter and conveys both satisfaction as
well as dissatisfaction with an employee’s job performance.
Whatever is the case, organizations should foster a feeling that
performance appraisals are positive opportunities that provide for
overall development of the employee, in order to get the best out of
the people and the process. Hence performance appraisals should be
positive experiences and it should never be used to handle matters
of discipline.

Designing an Appraisal Process:

Before understanding the process of appraisal, the following terms


are revised:

▪ Performance refers to an employee’s accomplishment of assigned


tasks.

▪ Performance Appraisal is the systematic description of the job-


relevant strengths and weaknesses of an individual or a group.

▪ Appraisal period is the length of time during which an employee’s


job performance is observed in order to make a formal report of it.

▪ Performance Management is the total process of observing an


employee’s performance in relation to job requirements over a period
of time (i.e. clarifying expectations, setting goals, providing on-the-
job coaching, storing and recalling information about performance)

40
and then making an appraisal of it. Information gained from the
process may be fed back via an appraisal interview to determine the
relevance of individual and work-group performance to
organizational purposes, improve the effectiveness of unit and
improve work performance of employees.
Designing an appraisal program poses several questions, which need
answers. They are:

1. Whose performance is to be assessed?


2. Who are the appraisers?
3. What should be evaluated?
4. When to appraise?
5. What problems are encountered?
6. How to solve the problems?
7. What methods of appraisal are to be used?

1. Whose performance should be assessed?

The answer is obvious – employees. When we say employees, it is


individual or teams? Specifically, the appraisee may be defined as
the individual, work group, division or organization.

2. Who are the appraisers?

Appraisers can be immediate superiors, specialists from the human


resource department, subordinates, peers, committees, clients, self-
appraisals or a combination thereof.

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3. What should be evaluated?

One of the steps in designing an appraisal program is to determine


the evaluation criteria. It is obvious that the criteria should be
related to the job. The criteria for assessing performance can be:

a. Quality & Quantity


b. Timeliness
c. Cost Effectiveness
d. Need for supervision
e. Interpersonal impact
f. Innovation & Creativity
g. Problem Analysis
h. Customer orientation
i. Market Orientation
j. Entrepreneurial Drive
k. Negotiation skills etc.

This is not an exhaustive list, but several other parameters too can be
added depending on job requirements and organizational needs.

4. When to appraise/rate?

The most frequent rating schedules are semi-annual and annual.


New employees are rated more frequently than older ones. Some
practices call for ratings:

∙ Annually as per company practice


∙ After first 6 months of employment
∙ Upon promotion or within 3 months after promotion

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∙ When the job occupied has been reevaluated upward
∙ Upon special request, as when the employee’s salary is below
the average pay
5. What are the problems related to Performance Appraisal?

An ideal Performance Appraisal is done when the evaluation is free


from biases and idiosyncrasies of the evaluator. There are many
factors of appraisal that lead to failure of the system:
a. Negative attitude towards Performance Appraisal:
There is a large population of managers who are hostile or
indifferent to the Performance Appraisal processes and/or do it
badly if they do it at all.

i. Hostility from the appraiser:

The appraiser reacts indifferently to the appraising system


because he believes that it is a waste of time. At times
they feel that the scheme has nothing to do with their own
needs and it exists to feed the personnel database.

ii. Hostility from the appraisee:

Hostility from the people at the receiving end arises


because they feel Performance Appraisal is simply another
method in the hands of the managers to exercise their
command and control prerogatives. They feel that the data
collected will be utilized as evidence against them. In
some cases appraisees even have a feeling that the
outcome of the performance evaluation is predetermined
by the management or their superiors and the process is
completed only as a formality, due to which appraisees
lack interest in the entire appraisal process.

43
b. Halo Error:
Under this type of error, one marked characteristic or latest
achievement or failure of the appraisee (either favourable or
unfavourable) may be allowed to dominate the appraisal for the
entire year.

c. Logical Error:
This is a dangerous pitfall for the inexperienced appraiser. He
is very often inclined to arrive at similar assessments in respect
of qualities that seem logically related.

d. Constant Error:
When two appraisers rate an appraisee their ratings may be
different. One may show consistent leniency by giving him
high scores, the other my consistently rate him by giving low
scores.

e. Central Tendency:
It is also called as “Average Ratings”. Here, the appraiser tends
to avoid giving frank views to the question asked or the
appraiser is in doubt or he has inadequate information or he
simply wants to play safe and don’t displease anyone.

f. Mirror-Image Error or Projection Error:


This error arises when an appraiser expects his own qualities,
skills, and values in an appraisee. The appraiser may falsely
believe that if the appraisee is good he has to be like him
(appraiser) because the appraiser considers himself as the
standard.

44
g. Contrast Error:
This error occurs in the sequencing of ratings. If superior
performers are rated first, average performers are rated down, if
poorer performers come first, the average performers will be
rated more highly.

h. Biases of position, Sex, Race, Religion & Nationality:


There is a tendency to rate the occupant at a higher position
more favorably than the person in a lower position. Similarly
rating can be biased based on sex, religion and nationality too.

i. Lack of Skill in conducting Appraisal discussion:


Conducting Performance Appraisal discussions require certain
skills and training.

6. How to solve the appraiser’s problems?

The best way to overcome the problem is to give training to the


appraiser. Training can help improve the appraisal system to the
extent that distortion occurring due to appraiser errors such as halo,
leniency, central tendency and bias are minimized.

a. Factors that help to improve accuracy:

• The appraiser has observed and is familiar with behaviors to


be appraised.

• The appraiser has documented behaviors calling for


improvement.

• The appraiser has a checklist to obtain the review on job-


related information.

45
• The appraiser is aware of personal biases and is willing to
take action to minimize their effects.

• Rating scores by appraisers of one group or organization are


summarized and compared with those by other appraisers.

• The appraiser focuses attention on performance related


behaviors over which he has better control than on other
aspects of evaluation.

• Higher levels of management are held accountable for


reviewing all ratings.

b. Factors that may lower accuracy:

• The appraiser rates only when administrative actions are


contemplated.

• The appraiser is unable to express herself/himself honestly


and unambiguously.

• Appraisal systems, processes and instruments fail to support


the appraiser

• The appraiser is unaware of causes of rating errors.

• The appraiser has to rate employees on factors that are


poorly defined.

7. Techniques/methods of appraisal to be used?

There are different types of systems for measuring the excellence of


an employee. Each type has its own advantages and disadvantages. The
earlier developed methods, still being used, are Traditional Methods that

46
are non-transparent in nature. While other newer methods are transparent
in nature. Each of the method has it’s own format of appraisal form.

Traditional Methods of Appraisal:


Performance Appraisal is an exercise of observation and judgment,
a feedback process, and an organizational intervention. It is a
measurement process as well as an intensely emotional process. Above
all, it is an inexact, human process. While it is fairly easy to prescribe
how the process should work, descriptions of how it actually works in
practice are rather discouraging.

Some of the traditional methods of appraisal are explained below:


Ranking

In this, the superior ranks his/her subordinates in order of their merit,


from best to worst.

- It is done in a competitive group.


- It is done by placing the appraisee on numerical scales i.e. 1 st,
2nd, 3rd etc. in the total group.
- Ranking of an appraisee on his job performance/traits against
that of another member.

Person-to-Person/Paired Comparison

Under this method the appraiser compares each employee with every
other employee, one at a time.

- Certain key performance areas/traits are developed. E.g.:


Leadership, Creativity, Initiative etc.
- A scale for each factor is designed.

47
- A scale of people is also created for each factor.
- Each Appraisee is compared to every other person on the scale.
- Certain scores for each factor are awarded to the appraisee.

Grading

- Certain categories of traits/performance criteria, which are


worth of appraising, are established. E.g. cooperativeness, self-
expression, dependability, job knowledge etc.
- The actual performance (Key performance area) of an employee
is then compared to the predetermined grade definitions.
- Appraisee is allotted with the grade, which describes his
performance in the best possible manner.
- Any grade that is selected should be well defined.
Graphic Scales

- A printed form, one for each person to be rated is used.


- The factors included in the form are Employee characteristics
such as leadership, cooperativeness, enthusiasm, loyalty etc. or
Employee contribution which includes quantity and quality of
work, specific goals achieved, regularity of attendance,
responsibility assumed etc.
- The traits can be evaluated on continuous scale – the appraiser
places a mark along a continuum (range).
- The best method to use is the “multiple” type of scale wherein
one has to “tick off” the box, which suits the description of an
appraisee’s performance.
- Certain types of graphs are prepared based on these derived
ratings.

48
Checklist

- A series of questions are presented concerning an appraisee’s


behavior.
- The appraiser has to reply to the questions in either negative or
positive tone- (Yes/No).
- The value of each question may be weighted i.e. one can have
predetermined scale and scoring to those questions.

Essay

- A blank form is given to the appraiser.


- The form contains main heading such as employees’
characteristics, attitudes, job knowledge, potential etc.
- The appraiser is asked to put in words his impressions about the
employee.
- It contains factual and concrete knowledge.
- It gives specific information about the employee.

Confidential Reporting

- It is the most traditional way of appraising employee’s


performance. The basic assumption here is that since the
superior is in direct contact he knows his subordinates better
than any other and hence his appraisal would be more
appropriate.
- The superior writes a paragraph or so about his subordinate’s
strengths, weaknesses, intelligence, attitude to work,
attendance, conduct and character, work efficiency, etc.

49
Critical Incident Method

- Initially a set of noteworthy (good or bad) on-the-job behaviours is


prepared. This is usually in the form of incidents.
- These incidents are given to a group of experts who assign scale
values depending upon the degree of desirability for the job.
- This checklist is used by superiors for evaluating the employees.
- This method helps in identifying the key areas where the
employees are weak or strong.
- It emphasizes rating on objective evidence and helps in counseling.

Forced Choice Technique

- In forced choice system the appraiser is forced to choose one


from among a group of 4 statements that best fits the individual
being rated and one which least fits him.
- Each statement is given a value or a score.
- The evaluator does not know the score value of statements;
hence he cannot show any favor towards the appraisee.
- The method of arranging the traits involves a long process from
getting the description of “good” or “bad” employees to
establishing their validity and reliability.

Behaviourally Anchored Rating Scales (BARS)

- Behaviourally Anchored Rating Scales (BARS) are anchored


with descriptive alternative behaviors.

- For every given category of behavior or performance,


statements are ordered in an ascending or descending order of
excellence.

50
- Although these scales represent job-relevant dimensions of
performance, they still pose problems in determining which
actually, observed behaviours match with specifically anchored
performance scales.

- Despite this difficulty, BARS are a significant improvement,


since they require less inference on the appraiser’s part as
against traditional rating approaches.

The above methods are non-transparent in nature, as the appraisee


or the employee is not involved in the process of his appraisal. The rating
is done entirely by his superiors.

New Frontiers to Performance Appraisal :


In recent years the system of performance appraisal is becoming
more and more transparent wherein the employee, who is being
appraised, is involved in the process. The objectives or targets are set
with mutual understanding between the appraisee and his immediate
superior. The feedback regarding his performance is given to the
appraisee with areas of improvement by disclosing his strengths and
weakness and the opportunities available. I will take you into details of
these new frontiers to Performance Appraisal viz:

I. Management by Objectives (MBO)

II. 360º Feedback


III. Balanced Scorecard

I. MANAGEMENT BY OBJECTIVES
1. Management by Objectives is basically a process whereby the
superior and the subordinate managers of an enterprise jointly

51
identify its common goals, define each individual’s major areas of
responsibility in terms of the results expected of him and use these
measures as guides for operating the unit and assessing the
contribution of each of its members. Management by Objectives is
primarily to change the behaviour and attitude towards getting an
activity or assignment completed in a manner that it is beneficial for
the organization. Management by objectives is a result-oriented
process, wherein emphasis is on results and goals rather than a
prescribed method. A number of companies have had significant
success in broadening individual responsibility and involvement in
work planning at the lowest organizational levels.
2. The concept rests on a philosophy of management that emphasizes
integration between external control (by managers) and self-control
(by subordinates). It can apply to any manager or individual no
matter what level or function, and to any organization, regardless of
size.

For instance, the number of quality articles to be churned out in a


week at a publishing house is, let’s say, five. This is the goal of the
organization. This goal has to be set in coordination with the
writers. The emphasis here again would be on accomplishing this
task flawlessly over the week rather than the setting of a method to
accomplish the same. You are giving them a free hand to decide as
to how they want to work in order to accomplish target. This gives
the employee both responsibility as well as authority to do a job.
The employees are now responsible for its success or failure and it is
their baby. It is a VERY SMART MANAGEMENT TOOL where
the employee is involved in the decision making process.

52
3. Management by Objectives is a five-sutra process having
following basic steps:

i. Set Organizational Goals:

This envisages that organizational goals and business


strategies are expressed clearly, concisely and accurately.
They are periodically reviewed. They should be challenging
enough to motivate the employee. Clear and attainable goals
help channel energies towards desired behaviour and let the
employee know the basis on which he will be rewarded. At
this time, any appropriate changes in the organization
structure should be made: changes in titles, duties,
relationships, authority, responsibility, span of control and so
forth.
ii. Joint Goal Setting:

This step establishes short-term goals, which are


performance oriented, between the management and the
employee. The responsibilities are clarified to the
employees through organizational charts and job description.
The goals decided by the employee need to complement the
goals of the management. They also need to be flexible to
accommodate new ideas without losing individual
responsibilities. Moreover they should be easily
quantifiable. For example:

 To prepare, process and transfer to the office


superintended, all account payable vouchers within three
working days from the receipt of the voucher.
 To hold weekly meetings with all employees.

53
 To use program evaluation and review technique (pert)
for all new plant layouts.
iii. Performance Reviews:

This step suggests frequent performance reviews between


the manager and the employees. During the initial stages the
meetings be held once a month and later could be quarterly.
For maximum benefit these meetings should be scheduled
for more than once a year.

iv. Set check posts:

Establishment of major check posts to measure progress.


This is merely to check that the employee surges towards his
premeditated (planned) goal without any disruptions. These
check levels should be higher in the initial stages and then
gradually reduce. This demands that the manager should be
on constant alert and exercise sound judgment.

v. Feedback:

The employees who receive frequent feedback about their


performance are highly motivated than those who do not.
However, one has to ensure that the feedback is relevant and
specific. This helps the employee and the manager
understand where they stand.

The five-sutra process of management by objectives ensures that the


manager and the employee define and establish goals and objectives for
an employee to be achieved within a prescribed period of time. The
employee is to be supervised and evaluated, periodically. To this extent,

54
a frequent feedback and superior-employee interaction model must be
evolved.

4. Throughout the time period what is to be


accomplished by the entire organization should be compared with
what is being accomplished; necessary adjustments should be made
and inappropriate goals discarded. At the end of the time period a
final mutual review of objectives and performance takes place. If
there is discrepancies between the two, efforts are initiated to
determine what steps can be taken to overcome these problems. This
sets the stage for the determination of objectives for the next period.

Benefits of MBO Program


a. Helps and increases employee motivation because it relates
overall goals to the individual’s goals; and help to increase an employee’s
understanding of where the organization is and where it is heading.

b. Managers are more likely to compete within themselves than with


other managers. This kind of evaluation can reduce internal conflicts
that often arise when managers compete with each other to obtain scarce
resources.

c. Results in a “means-ends” chain. Management at succeedingly


lower levels in the organization establishes targets, which are integrated
with those at the next higher level. Thus, it can help ensure that
everyone’s activity is ultimately aimed toward organization’s goals.

d. Reduces role conflict and ambiguity. Role conflict exists when a


person is faced with conflicting demands from two or more supervisors;
and role ambiguity exists when a person is uncertain as to how he will be

55
evaluated, or what he has to achieve. Since MBO aims at providing clear
targets and their order or priority, it reduces both these situations.

e. Provides more objective appraisal criteria. The targets that


emerge from the ` process provide a sound set of criteria for evaluating
the manager’s performance.

f. Forces and aids in planning. By forcing top management to


establish a strategy and goals for the entire organization, and by requiring
other managers to set their targets and plan how to reach them.

g. Identifies problems better and early. Frequent performance


review sessions make this possible.

h. Identifies performance deficiencies. It enables the management


and employees to set individualized self-improvement goals and thus
proves effective in training and development of people.

i. Helps the individual manager to develop personal leadership,


especially the skills of listening, planning, counseling, motivating and
evaluating. This approach to managing instills a personal commitment to
respond positively the organization’s major concerns as well as to the
development of human assets. Such a manager has a far greater chance to
move ahead within the management hierarchy.

II. 360° FEEDBACK

With the movement in the eighties to find new strengths and


productivity through employee empowerment came the idea of
performance appraisals from subordinates, their superiors, their peers
and themselves – “360º feedback.”

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1. The 360º Feedback process is called multi-source assessment,
taps the collective wisdom of those who work most closely with
the employee, superiors, colleagues (peers), direct reports and
possibly internal and often external customers. The collective
intelligence these people provide on critical competencies or
specific behaviours and skills gives the employee a clear
understanding of personal strengths and areas ripe for
development. Employees also view this performance information
from multiple perspectives as fair, accurate, credible, and
motivating. Employees are often more strongly motivated to
change their work behaviours to attain the esteem of their
coworkers than to win the respect of their supervisor alone.

2. As the 360º Feedback process better serves the needs of


employees, it serves the changing needs of their organizations
too. Organizations are reducing hierarchy by removing layers of
management and putting more emphasis on empowerment,
teamwork, continuous learning, individual development, and self-
responsibility. The 360º Feedback Model aligns with these
organizational goals to create opportunities for personal and
career development and for aligning individual performance
expectations with corporate values.

57
Diagram showing the key stakeholders in a 360º Feedback
Process

Benefits to Key Stakeholders


The 360º Feedback process offers extensive and diverse benefits
to key stakeholders in the organization – and the organization too:

a. Customers: The process gives customers a chance to


strengthen the customer-supplier relationship. The 360º
Feedback captures the relevant and motivating information
from internal and external customers while giving them a
voice in the assessment process.

b. Employees: By participating in a process that has tremendous

impact on their careers, employees may help select what


evaluation criteria will be used to judge their performance
and who will provide feedback. Participation plays a critical
role for employees as they determine the fairness of the
process.

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c. Team members: The only option for identifying team and
individual members’ effectiveness is 360º Feedback. Failing
feedback from multiple sources, team members lack the
information necessary for effective individual development
and teamwork. With no team evaluation, accountability may
evaporate, and performance may falter (weaken).

d. Supervisors: This process expands supervisors’ insight


regarding the performance of each direct report by providing
them more comprehensive and detailed performance
information than they usually have access to. Also, the
process typically reduces by half, or more, the supervisor’s
time spent on evaluating individual employees.

e. Leaders and Managers: The process provides leaders and

managers an opportunity to tap information from the


organization that may otherwise not be shared with them for
fear of reprisal.

f. Organizations: Organizations can gain access to credible,


quantitative information to understand organizational
strengths and weaknesses, leadership gaps, and training
needs more fully. This information is much more useful
than relying on intuitive judgment or responding to those
who are making the most noise.

Why are Organizations adopting these systems?

Structure and cultural factors and employee’s relations have


motivated organizations to begin experimenting with 360º
Feedback systems. For example, as organizations remove layers
of management, flatten their structure, and begin using self-

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directed teams, the only practical option for performance
feedback is from multiple sources. As organizations change their
culture to align with their vision and values, 360º Feedback
becomes an ideal choice to communicate the new competencies
required by the new values.

Structure changes

Organizational structures have changed substantially since the


mid-1980s. The 360º Feedback process offers support for these
structural changes, such as growth in supervisor’s span of control,
the increased use of technical or knowledge workers, and
introduction of matrix and project management organization
design, and the move to working in teams.

g. Increased span of control: A typical manager used to


supervise three to nine employees. Today production and
service companies have moved from traditional span of
control to one supervisor for as many as seventy or more
direct reports. Classic supervisors with a large number of
reporting relationships lack the opportunity to observe many
individual performance actions.

h. Knowledge workers: A supervisor may not have enough

technical or expert knowledge to provide credible


performance feedback on employees in positions requiring
highly specialized knowledge, like MIS managers or
scientists. Many organizations have adopted a multi-source
system to provide accurate assessments by coworkers with
similar expertise.

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i. Matrix and Project Management: Many organizations have

adopted 360º Feedback systems because their employees


work in matrix or project management situations, with
employees often reporting to more than one supervisor
during a project.

Matrix organization structures occur as a result of the need to


deploy human assets at high velocity. People move quickly
from project to project and may only occasionally interact
directly with their supervisor. Project management designs
require information from multiple sources because no one
person has sufficient information to provide a complete
performance picture of the individual.

j. Team: When the organizational structure has moved from


classic supervisory designs to work teams, with leadership
dispersed throughout the team, team members offer highly
credible performance feedback.

Change in Organizational Culture

Revolutionary changes in organization cultures have made


traditional single-source assessments illogical and impractical.
Among these changes are:

a. Participative Leadership: Organizations have given


employees a voice in organizational decision processes and
have adopted 360º Feedback systems to drive culture change
and align individual behaviours with organizational values
and objectives. Leaders who best empower employees are
recognized and rewarded when those they lead provide
excellent performance feedback.

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b. Empowerment: The 360º Feedback process communicates
the appropriate actions needed from employees to support
this culture change, and these actions are then recognized
and rewarded.

c. Customer Services: The improved communication through


360º Feedback can translate to better customer service.

d. Quality Focus: The 360º Feedback systems provide the best


measures for competencies. This logical application for
individual performance measurement meshes with the
organization’s quality philosophy.

e. Reengineering: Reengineering or the reinvention of work


processes often requires new methods to obtain accurate
performance measures. Reengineering actions focus on
redesigning the way employees work in order to improve
individual, team, and organizational productivity. Since
360º Feedback systems improve the quality of information,
these systems logically support the reengineering effort at
organizations.

f. Competency-Based Reward: Information from multiple


sources offers the best method for measuring competencies.
Traditional, single-source measures are deficient at assessing
competencies because supervisors seldom have sufficient
opportunity to observe each employee’s full range of work
behaviours.

g. Team-Based Rewards: 360º Feedback systems are the most


appropriate ways to evaluate individual performance and
contribution. Team assessment provides these organizations

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with a credible information source for recognition and
rewards.

h. End of Entitlements: Multi-source performance measures


more clearly distinguish among levels of performance than
do single-source measures. Multi-source assessments are
substantially better at distinguishing high, medium, and low
performers, enabling appropriate recognition and rewards
and an end to automatic entitlements.

Employee Relations

No other information has more impact on an employee’s career


than information on his or her performance. Hence, the accuracy,
fairness and usefulness of performance measures are critical
factors to employees.

a. Career Development: The 360º Feedback process yields


specific and quantitative information for each employee to
use in making intelligent career decisions.

b. Fair Reward Decisions: Managers and employees want pay


and promotion decisions to be fair. Research across large
sets of employee groups indicates that users perceive 360º
Feedback to be fairer than single-rate processes.

c. Accurate Performance Measures: Assessment by multiple


coworkers is more reliable and objective than information
gained from a single person because they have the best
opportunity to observe work behaviours.

d. Valid Performance Measures: Assessment information


when provided by the individual’s work associates; the

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employee tends to perceive the results as having for more
credibility as against a single-source assessment.

e. Non-performance: Supervisors must document, justify and


confront non-performance. 360º Feedback systems helps in
identifying non-performers or poor-performers as co-
workers and team members are rarely reluctant to identify
them if they are not sufficiently contributing to the team’s
efforts and try to push them if they need help.

f. Diversity Management: Multi-source performance


measures moderate adverse discrimination against older
employees, presumably recognizing the great experience
level; are generally neutral to women as against single-
source assessment which are often biased.

g. Legal Protection: Multi-source assessments offer stronger


legal protection, resembling the jury system because the
model combines multiple perspectives.

Pitfalls of 360º Feedback

a. 360º feedback has produced some real successes; but when


not done artfully, including internal preparation, it can
rebound. Colleagues and subordinates are good judges of
behaviour and managerial style but are not best judges of a
manager’s job performance. Hence the ratings should be
used with caution in decisions for pay and promotions.

b. In practical, peers and subordinates tend to give negative


feedback about a manager due to bias or for setting scores.

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Such feedback may get undue importance when only
selected few peers and subordinates appraise a manager.

c. Also, at times, the organizational culture is unable to accept


the system.

Options for implementation

There are three common ways of getting 360º degree feedback


each more comprehensive and powerful in promoting change,
both organizational and personal:

i. using an outside consultant, minimizing any personal friction


within the organization;
ii. launching a comprehensive program in-house to get
feedback on all key people, top to bottom;
iii. creating a comprehensive program designed to uncover not
just personal flaws but systematic and organizational ones,
too.

The implementation of the same are detailed below:

a. Send a few managers to an outside consultancy for


assessment and feedback. Here, managers may hand out
survey to whom they know (and expect to get feedback with
minimal negative information) the data collected by the
consultancy, and the managers receive an "offsite" training
and feedback session with similar managers from different
companies.

While this approach has its merits, its major deficiency is


that a few individuals are changed, the overwhelming mass

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of management is not, and the systems and processes that
encourage old behaviors are still in place.

b. The second approach is to bring such a program "in-house",


where many managers receive 360º feedback. In this
approach, the feedback can be more systematic for two
reasons: i) surveys are handed out to all subordinates and
peers rather than those who have been "volunteered" by the
person receiving feedback. This tends to reduce "sampling
bias" of just giving it to those who might give just good
feedback; and ii) the implementation of this process can be
from the top of the organization down the bottom. This has
the advantage of allowing upper management to be an
example of willingly receiving such feedback and encourage
them to be both models of behavior and coaches to those
underneath them.

c. The third approach involves all of the second approach, and


also deals with "systems issues." Where 360º feedback alone
can only deal with problems caused by individual behavior,
it by itself does nothing for the systemic causes of problems,
such as organizational structure, inappropriate and distorted
measurement systems, company-wide lack of skills, or
performance appraisal and pay problems. 360º Feedback can
serve both as a catalyst to help management realize the
systemic causes of organizational problems, and can be part
of the solution, so that management style becomes in
harmony with other organizational changes senior
management is trying to make.

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The following issues need to be considered before implementation
of 360º feedback

Questions about implementing 360º feedback are easy to ask but


not so to answer. Often times, management assumes the answers
but does not openly discuss them with the result being much
chaos and confusion down the road.
Among these some of these questions are:

a. How ready is your organization to handle 360º Feedback?


Often times, organizations may be willing to pay consultants
to assist them in implementing such a system, but the
organization needs to be prepared. At times, "soft skills"
training in communication, leadership, management style,
meeting management etc. is useful in preparing
management. Teambuilding activities might also be useful,
as well as a general organizational climate survey to
determine the context of implementation and find any
additional issues beyond management style that might be a
problem.
b. Who needs to agree? Who will be the decision-making
body about 360º feedback? Will it be the head of the
organization, or Human Resources, or a cross-section of
employees from a variety of levels?
c. Who will be involved? Which employees are to be the
focus of the 360º feedback, and who will provide it to them?
d. Is this voluntary or mandatory? Will some employees be
offered the "opportunity" to receive this feedback, will
everyone receive it, or will just management receive the
feedback?

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e. What methods and measurements will be used? Will
employees just fill out numerical surveys, or will this
information be supplemented with observations and
interviews? Will the report be just a graph, a summary of
high need for change survey items, or will there be a written
report with recommendations? To what extent will this
report be personalized and handcrafted Vs being automated?
f. To what extent will the data be collected anonymously
and/or confidentially? While the intent may be to keep the
survey data anonymous, if written comments or interview
data are also included, the data may have to be altered to
avoid making obvious conclusions about who communicated
what. In addition, management must answer questions about
personal, confidential data that might be accidentally
revealed during interviews.
g. To what extent will the data be collected anonymously
and/or confidentially? While the intent may be to keep the
survey data anonymous, if written comments or interview
data are also included, the data may have to be altered to
avoid making obvious conclusions about who communicated
what. In addition, management must answer questions about
personal, confidential data that might be accidentally
revealed during interviews.
h. What will be done with alleged violations of laws, ethics
or policies? Though this may not be the intent of 360º
feedback, on occasion information is gathered that suggests
violations of legal, ethical and company codes of conduct.

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i. What information will be public? At first blush, you might
think that all data will be private, but does that mean that
one's own supervisor can't see the data and the report? Will
group and company averages be made public without them
being broken down into individual scores?
j. What consequences will there be? Will they receive
additional coaching and counseling, training, or be
terminated or re-assigned? Will the 360º feedback be the
sole determiner of this decision?
k. What logistics and support will be necessary to make this
successful? To what extent will the data be collected
electronically (via the Web or intranet) or on paper? What
administrative and technical support will be necessary?
l. What systems changes will accompany this
organizational change? As stated before providing
feedback on management style in and of itself can only be
part of organizational change and can rarely stand on its
own. As a result, one must ask how and when will 360º
degree feedback be incorporated into training, selection and
pay decisions?

III. BALANCED SCOREBOARD


1. Balanced Scorecard (BSC) is a set of measures derived from an
organization’s vision and strategy. It is a concept that helps
translate strategy into action. It requires an organization to
balance its goals across multiple perspectives to reduce the
chance that one goal will dominate others to the detriment of

69
the organization. It leads to a realistic compromise that
addresses short-term goals and longer-term staying power.
2. The balanced scorecard was developed by Robert S. Kaplan and
David P. Norton in early 1990s. The article The Balanced
Scorecard - Measures that Drive Performance of Harvard
Business Review (year 1992) – describes balanced scorecard as
a methodology used for measuring success and setting goals
from financial and operational viewpoints. With those
measures, leaders can manage their strategic vision and adjust it
for change.

3. BSC links performance measures by looking at a business's


strategic vision from four different perspectives: financial,
customer, internal business processes, and innovation &
learning. These four perspectives of the Scorecard provide a
balance between desired outcomes and drivers for those
outcomes and between objective and subjective performance
measures. BSC is prescriptive about a balanced range of
measures and about how one perspective defines the drivers for
the next.
a. Financial Perspective

The financial perspective provides a view of how the senior


executives, the board of directors and the shareholders see
the company. Typical metrics in this perspective might be
earning per share, revenue growth and profit maximization.
In the BSC, financial measures play a dual role: they define
the financial performance expected from the strategy and
they serve as the ultimate targets for the objectives and

70
measures of all the other scorecard perspectives. The
financial measures are chosen based on the business life
cycle and also the strategic theme chosen for the financial
perspective. In addition to increasing returns, most
organizations are concerned with the risk of these returns.
Therefore, when it is strategically important, these
organizations will want to incorporate explicit risk
management objectives into their financial perspective.

As a conclusion, eventually all objectives and measures in


the other scorecard perspectives should be linked to
achieving one or more objectives in the financial
perspective.

b. Customer Perspective

The customer perspective provides a view of how the


customers see the company. Kaplan and Norton contend that,
" to put the balanced scorecard to work, companies should
articulate goals for time, quality, and performance and
service and then translate these goals into specific
measures." Overall, this is a measure of how the company
provides value to the customer. Changes made to a business
process output that lowers the customer’s cost or allows the
customer to achieve his or her objective, have value for the
customer. For example, it’s not enough to simply bring down
the cost of an item. The delivery time and manner in which
the customer is dealt during times of sales and support are
important as well. It is a measure of that value that should be

71
captured by the metrics (e.g. market share, customer
satisfaction, customer loyalty, customer acquisition)
representing this perspective.

In this perspective, managers must first determine core


measures that will describe the successful outcomes of a
well-formulated and implemented strategy. They have to
also identify what are the attributes that the customers value
and choose the value proposition that they want to deliver to
the targeted customers. Today, many companies have a
corporate mission that focuses on the customer.

c. Internal Business Process Perspective

The internal business process perspective provides a view of


what the company must excel at to be competitive. Kaplan
and Norton recommend that, "companies also attempt to
identify and measure their company's core competencies, the
critical technologies needed to ensure continued market
leadership."

In this perspective, the managers must identify the internal


processes that are crucial to their organization and develop
the best possible measures with which to track the
organization’s progress. These processes should help them
deliver superior value to their customers and achieve
financial targets. The Balanced Scorecard go beyond the
simple assessment of existing processes, and usually
identifies new processes that the organization should

72
implement in order to be successful. By incorporating
innovation processes measures, the Balanced Scorecard
provides managers with a set of tools that does not only
reflect the short term, but also gives insight about the longer-
term.
d. Innovation and Learning Perspective

Kaplan and Norton underscore the importance of innovation


and learning in their statement that, "a company's ability to
innovate, improve, and learn ties directly to the company's
value." While the financial perspective deals with the
projected value of the company, the innovation and learning
perspective sets measures that help the company compete in
a changing business environment. This is of principal
interest to the CEO and the architects of the long-range
business plan. Their focus for this innovation is in the
formation of new or the improvement of existing products
and processes. This perspective looks at how effectively the
organization can redesign and implement new business
process, introduce and exploit new technology and adapt to
changing conditions in general. Thus the measures in this
perspective are truly the enablers of the other three
perspectives. These measures are like the roots of a tree that
will ultimately lead through the trunk of internal process to
the branches of customer results and finally to the leaves of
financial returns. Metrics of this perspective can be
adaptability, employee satisfaction, and willingness to share
and gain knowledge.

73
With the financial, customer and internal perspectives,
managers are able to identify the gaps between existing
organizational resources and the ones required to be
successful. The only way to close those gaps is for the
organization to judicially invest in employees and
information technology and to design the most appropriate
organizational structure that could support their strategy.

74
4. The steps of implementation are:

Identifying and defining Key Performance Indicators from the


multiple perspectives:

First the multiple perspectives are to be identified, which can be, as:
Financial Measure, Customer Measure, Internal Process and People
(Learning & Growth). After this the main task is to identify the Key
Performance Indicators (KPI) in each of these multiple perspective.

a. Identifying Key Action Areas

b. Implementation of Key Action Areas

c. Monitoring Key Action Areas

5. The advantages of the Balanced Scorecard:

a. First, the measures incorporated in the Balanced Scorecard are


grounded in the organization’s strategic objectives and competitive
demands. Therefore, this set of critical indicators helps the
organization focus its efforts on the strategic vision.

b. The four perspectives of the Balanced Scorecard enable


organizations to track financial results while simultaneously
monitoring progress in building the capabilities and acquiring the
intangible assets they need for future growth. The Balance
Scorecard then becomes the cornerstone of the organization’s
current and future success. Also, by balancing external and
internal measures, there is no trade-off among key success factors.

75
c. Finally, managers can use the Balanced Scorecard to:

‫ ־‬clarify and gain consensus about the strategy;

‫ ־‬communicate the strategy throughout the organization;

‫ ־‬align departmental and personal goals to the strategy;

‫ ־‬link strategic objectives to long-term targets and annual


budgets;

‫ ־‬identify and align strategic initiatives;

‫ ־‬perform periodic and systematic strategic reviews;

‫ ־‬obtain feedback to learn about and improve strategy.

6. Potential Problems with a Balanced Scorecard:

a. The creation of a Balanced Scorecard involves a considerable


amount of time on the part of everyone whose performance will be
measured; the selection of appropriate measures for the four
perspectives too is very time consuming. This is simply due to the
fact that there are a large number of potential goals and targets and
even more ways to measure them. People are likely to disagree
about which objectives to measure and how to measure those
objectives, and it will take time before consensus is achieved.

b. The time factor involved in designing a Balanced Scorecard can be


considerable since it involves a lot of people in the organization.
Their commitment is important not only in building the Balanced
Scorecard but especially in implementing and using it. Although a
Balanced Scorecard may be well designed, lack of participation

76
and commitment on the part of staff will make the scorecard
useless.

c. Finally, there is always a chance that too many measures will be


selected. This is a problem because it is very difficult to track a
large number of measures. Furthermore, some of the measures
selected may be objective, such as employee turnover rates, and
other measures may be subjective measures, such as employee
morale or quality time spent with customers. The subjective
measures, by definition, involve somebody’s judgment and,
therefore, are more prone to error. Consequently, there is a
question whether subjective measures should be used and if so
how can they be made more reliable.

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1. Is Performance appraisal given adequate importance in your
organization?

A – Yes
B – No
C – Partly

Particulars No. of respondents Percentage


A 15 50%
B 5 16.7%
C 10 33.3%

Interpretation:
The above chart shows that 50% of employees are satisfied, 16.7%
of employees are not satisfied and 33.3% of employees are partly
satisfied with the importance given to the performance appraisal given in
their organization.

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2. Is Performance appraisal really helpful in developing your
performance?

A – Yes
B – No
C – Partly

Particulars No. of respondents Percentage


A 20 67%
B 0 0%
C 10 33%

Interpretation:
The above chart shows that performance appraisal is really helpful
in developing their performance for 67% of the employees and partly
helpful for 33% of the employees.

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3. Have you ever had discussion regarding Performance appraisal
with your manager?

A – Yes
B – No

Particulars No. of respondents Percentage


A 25 83%
B 5 17%

Interpretation:
The above chart shows that 83% of the employees are having
discussion and 17% of the employees are not having discussion with the
manager regarding performance appraisal.

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4. The results you have faced at the end of annual review
A – Promotions
B – Increments
C – Additional responsibility
D – All the above
E – None of the above
Particulars No. of respondents Percentage
A 11 37%
B 6 20%
C 4 13%
D 5 17%
E 4 13%

Interpretation:
The above chart shows that 37% of the employees are getting
promotions, 20% of the employees are getting increments, 13% of the
employees are getting additional responsibility, 17% of the employees are
getting promotions, increments and additional responsibility and 13% are
not getting any benefits at the end of annual review.

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5. Is performance appraisal helpful in strengthening work
relationship through personal effectiveness?

A – Yes
B – No

Particulars No. of respondents Percentage


A 27 90%
B 3 10%

Interpretation:
The above chart shows that performance appraisal is helpful for 90%
of the employees and not helpful for 10% of the employees in
strengthening work relationship through personal effectiveness.

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6. Are you informed about your performance parameters?

A – Yes
B – No

Particulars No. of respondents Percentage


A 20 67%
B 10 33%

Interpretation:
The above chart shows that the performance parameters are informed
to the 67% of the employees and are not informed to the 33% of the
employees.

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7. Have you faced any problems during process of performance
appraisal?

A – Yes
B – No
C – Partly

Particulars No. of respondents Percentage


A 9 30%
B 12 40%
C 9 30%

Interpretation:
The above chart shows that 30% of the employees are facing
problems, 40% of the employees are not facing any problems and 30% of
the employees are facing some problems during the process of
performance appraisal.

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8. In your opinion performance appraisal in Coca-Cola is?

A – Very effective
B – Average
C – just a ritual

Particulars No. of respondents Percentage


A 14 47%
B 10 33%
C 6 20%

Interpretation:
The above chart shows that performance appraisal is very effective for
47% of the employees, average for 33% of the employees and its just a
ritual for 20% of the employees.

85
9. Is performance appraisal continuous process in Coca-Cola?

A – Continuous process
B – Just a formality
C – No match relevance is attached to continuing
D – Can’t say

Particulars No. of respondents Percentage


A 11 37%
B 6 20%
C 7 23%
D 6 20%

Interpretation:
The above chart shows that performance appraisal is a continuous
process for 37% of the employees, just a formality for 20% of the
employees, not a continuous process for 23% of the employees and 20%
of the employees can’t say about it in Coca-Cola.

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10. According to you what are the major barriers for success
performance at your work place?

A – Lack of motivation
B – Lack of skills
C – Lack of proper work
D – All the above

Particulars No. of respondents Percentage


A 10 33%
B 7 23%
C 5 17%
D 8 27%

Interpretation:
The above chart shows that the major barriers for success of
performance at the work place are lack of motivation for 33%, lack of
skills for 23%, lack of proper work for 17% and lack of all these for 27%
of the employees.

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11. What mostly motive to best performance in Coca-Cola?

A – Working environment
B – subordinate performance
C – Encourage by superiors
D – All the above

Particulars No. of respondents Percentage


A 11 37%
B 6 20%
C 7 23%
D 6 20%

Interpretation:
The above chart shows that working environment for 37%,
subordinate performance for 20%, encourage by superiors and all these
for 20% of the employees are the mostly motive to best performance in
Coca-Cola.

88
12. Are you satisfy with the functioning of rewards/recognition
mechanism at Coca-Cola?

A – Very high
B - High
C – Average
D – Below average

Particulars No. of respondents Percentage


A 7 23%
B 10 34%
C 7 23%
D 6 20%

Interpretation:
The above chart shows that 23% are satisfied very highly, 34% are
satisfied highly, 23% are satisfied average and 20% are satisfied below
average with the functioning of rewards/recognition mechanism in Coca-
Cola.

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13. On what basis Coca-Cola evaluating the performance?

A – Based on work
B – Based on quality of work

Particulars No. of respondents Percentage


A 13 43%
B 17 57%

Interpretation:
The above chart shows that Coca-Cola evaluates the performance
based on work for 43% of the employees and based on quality of work
for 57% of the employees.

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14. The prime objective of performance appraisal in Coca-Cola is?

A – Performance exists
B - Performance exists with job to evaluate
C - To determine promotion/transfer

Particulars No. of respondents Percentage


A 14 47%
B 9 30%
C 7 23%

Interpretation:
The above chart shows that the prime objective of performance
appraisal in Coca-Cola is performance exists for 47%, performance exists
with job to evaluate for 30% and to determine promotion/transfer for 23%
of the employees.

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15. If given a chance will you change performance appraisal system in
Coca-Cola?

A – Total change
B – Partial change
C- There is no need of change

Particulars No. of respondents Percentage


A 5 17%
B 14 46%
C 11 37%

Interpretation:
The above chart shows that if a chance is 17% will totally change,
46% will partially change and 37% wont change the performance
appraisal system in Coca-Cola.

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FINDINGS

1. It was found that feedback is given only to the some employees


after the appraisal process .

2. It was observed that the organization is helpful in improving their


performance.

3. It was found that the counseling programs are helping to improve


their skills.

4. It was found that the appraisal system is helpful in strengthening


work relationship.

5. It was found that the reward system is satisfying only few


members.

6. It was found that the employees are happy with the half-yearly
system of appraisal.

7. It was found that the appraisal is helping the employees to generate


new ideas.

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SUGGESTIONS

1. The company may design a one single format, arrange the


comments in such a way i.e. starting from down level to top-level.

2. Separate the forms of Customers/Vendors and Self Appraisal.

3. Arrange counseling programs to improve their skills.

4. Give feedback to the employees to develop their performance.

5. It is better to have separate Format at each level to avoid


influences.

6. Keep all the comments as confidential.

Success of implementation of appraisals depend on the


effectiveness of role of HR managers. It is not an easy task to implement
and maintain Performance Appraisals. For this the company have to
train all their personnel whoever involved in executing the Appraisals. In
the initial stage, the company take the help of out-side Consultants’ help
and expertise.

94
CONCLUSION

Coca-Cola’s growth over the years reflects in the actualization of its


mission and it stands for the professional management of commercial
enterprise and its planned growth, through the effective use of knowledge
and resources at command to create substantial surpluses and contribute
to the quality office as a valued corporate citizen.

95

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