A SUMMER TRAINING REPORT ON PERFORMANCE APPRAISAL
This project takes a look in various kinds of merchandising activities, market share of Pepsi and Coca Cola and various sales promotion schemes, which are followed in the soft drink industry. The two major global players i.e. Pepsi and Coca Cola dominate the soft drink industry in India. India is one of few battlegrounds in the world where there is neck-to-neck competition between the two. Both the companies claim to be in number one sport coating the data produced by two different marketing research companies. Where coke follows ORG data and says it has 57% share, Pepsi follows IMRB data and says it has 49% market shares in India. In 2004 the cola war has begun afresh. Coca cola India today claimed that it has increased its market share form 57 percent in the carbonated soft drink (CSD) Category in 2002 to 61 percent at the end of December 2003, as per ORG - Marg figures. Pepsi, however, contested the figures by saying that it market share stood at 47.6 pe4rcent during the same period and Coca Cola India had a combined market share of only 52.4 percent, as per IMRB figures. In this cutthroat competition, both of the cola majors have to do something special to the service. This something special is done in various forms of advertising and sales promotion schemes provided by the two companies. Coca cola's 200ml strategy has paid off. New consumers are coming in droves from the hinterland. This apart, the company undertook a series of cost-cutting measures to ensure efficient distribution. According to Mr. Sunil Gupta, president Coca Cola India, apart from the 200 ml strategy, ultra light glass bottles saved transport costs, centralized procurement of raw material cut down wastage and the hub-and-spoke distribution system ensured deeper penetration and faster turnaround of returnable glass bottles.
TABLE OF CONTENTS
S.3 2. 5.2 1.3 1.5 SWOT ANLYSIS RESEARCH METHODOLOGY 2. 1. 7.4 2.NO.4 2. OVERVIEW OF THE INDUSTRY PROFILE OF THE COMPANY PROBLEMS OF THE COMPANY COMPETITION INFORMATION TITLE Page No.5 OBJECTIVE OF THE STUDY SCOPE OF THE STUDY RESEARCH METHODOLOGY SIGNIFICANCE MANAGERIAL USEFULNESS OF THE
3. INTRODUCTION 1.
1.1 2.6 LIMITATIONS CONCEPTUAL DISCUSSION DATA ANALYSIS FINDINGS AND RECOMMENDATIONS ANNEXURE BIBLIOGRAPHY
2.2 STUDY 2.1 1. 4. 6.
Chapter 1 INTRODUCTION
Gold Spot and Thums up emerged as clear winner with around 60% market share.INTRODUCTION
1. Independent bottling arose primarily because it was not possible to create an effective organization for operating a vertically integrated company with hundreds of geographically separated manufacturing unit and local delivery operation given the limited transportation and communication system of the time and the lack of sophisticated financial and management controls. The major activity taken up by the concentrate 2 India fountain sales form a very insignificant part of the sales revenue. Although Coca-Cola and Pepsi Cola are premier marketing companies the fundamental competitive advantage that allowed that to compete so effectively lies in their ability to operate through a very cumbersome distribution system. Pepsi Co.e. bottlers and the sales and distribution network of the companies the rule and responsibilities of each of the are different. In India after the exist of Coke in 1977 the Indian Soft Drink market was controlled by Parle and Pure Drinks. The other Major player in the industry is Cadbury-Schweppes and some local players in individual countries. By the and of 80’s Parle with Limca. This proposal was rejected on the grounds that the import of concentrate could not be agreed and the use of foreign brand name was not allowed. Majors used a network of independent bottlers to bottle and market their products. and Coca-Cola having the major thank in the pie. The major components of the industry consist of the concentrate manufactures.1 OVERVIEW VIEW OF SOFTDRINK INDUSTRY
Soft drink industry scenario the world is almost the same with two major players i. Finally in June 1990 Pepsi was launched in India
. During the initial stages both soft drinks. In year 1988 Pepsi again floated a project this time in collaboration with Punjab Agro Industrial Corporation (PIAC) and Voltas India Limited and succeeded. By the and of 1970 Campa Cola was practically alone in cola market Parles introduced Thumsup in the beginning of 1980s. In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group.
" Victoria and Austin had two ice-making machines. By 1810 New York City had "soda fountains. plus five unspecified bottlers and seven breweries. when Dr." In the 1870 census. but bottled soda water was an expensive product. and Mexia. an English physician living in Houston. The most strategic step taken by Coca Cola was the purchase of Parle brands. C. Smith's establishment as a "mineral water manufactory. two each in Galveston and Austin. a wire loop protruded from the bottle neck and was
. During the eighteenth century. (In a Hutchinson stopper. when the Houston City Directory listed J." where proprietors dispensed artificial "mineral waters" for therapeutic purposes. In 1850 Texas had none of the sixty-four bottling plants in the nation. Sailing ships took ice from northeastern states to New Orleans in 1820 and later to Houston. A wholly around subsidiary Coca Cola company which is a leader in Soft drink industry returned to India after a gap of 16 years in 1995.under the brand name of ‘ Lehar Pepsi’. The first notice of a soda-water manufacturer in Texas was issued in 1866. Flavored soda water. Dallas. With this coke instantly had the ownership of countries tap soft drinks brands as well as got access to Parles extensive 54 plant bottling as well as a pre set distribution network. Thomas Mitchell. patented in 1879 and manufactured in Chicago. In 1890 Texas had forty-two soda-water plants. was available in apothecary shops. In 1880 Texas had eleven bottling plants: four in San Antonio. Taking full advantage of the liberalization policies of the government Pepsi set up a new company in India called PepsiCo India Holding Pvt. and the term "soda water" became ensconced in the English language. Galveston and Brownsville reported "manufacturers of mineral and soda water. operated an apothecary with a soda fountain from March until his death on October 1. and in 1838 a Houston newspaper noted that ice sold for 50 cents per pound. scientists experimented with "fixed air" and produced "aerated waters. Texas had one of the four ice plants in the nation. J. The Texas soft-drink industry dates from 1839. The 1890s saw major changes in the state's soft-drink industry." Some of them used bicarbonate of soda in their experiments. New plants appeared with the introduction of the Hutchinson bottle stopper. and one each in Houston. which developed with the rise of the ice industry. Carbonated water had bubbled from springs in Europe since Roman times.
" But policing was impossible. In 1885 Charles Alderton. Lazenby had an exclusive War Department contract to bottle and ship his Circle A Ginger Ale to servicemen in foreign lands. and raspberry were the principal flavors. Twenty-nine bottlers and suppliers. They issued contracts to produce and sell Coca-Cola within control areas. They drafted a constitution and by-laws aimed at preventing "the unlawful use of registered bottles.) Most plants served one or two counties. Georgia. Thomas and Joseph Whitehead. In 1885 Wade B. who owned the Old Corner Drug Store in Waco. By the 1890s two beverages had changed the character of the soft-drink industry. In 1898. Although Texas and parts of New England were excluded. during the 1890s no Texas bottling plant advertised a franchised soft drink and no company listed such a product in its company or corporate name. F. ale. No deposit was charged and bottle stealing among bottlers was common. secured "bottling rights" from the Coca-Cola Company of Atlanta. Texas. including Dr Pepper. In 1900 Texas had 139 soda-water bottling plants. during the Spanish-American War. B. siphons. The state also had seventy-seven ice plants. However. and occasionally they shipped by rail to neighboring communities.fastened to a rubber seal. In 1891 a feed-store operator in Dublin. when seated the seal blocked the escape of gas from the water in the drink. Lemon. arranged with Robert Sherman Lazenby. the system provided the capital and the entrepreneurship needed to
. to mix and ship Dr Pepper Phos-Ferrates syrup to area drugstores. etc. Morrison. vanilla. orange. more than any other. In 1891 the Elliott Bottling Works of Paris called a convention to address the problem. sarsaparilla. a Waco pharmacist. boxes. In 1899 two lawyers from Tennessee. Only one bottling plant used power-a four-horsepower central motor which delivered power by belts to carbonators and bottle-washing machines. even when glass blowers embossed the name of the town on the bottles. He supplied both army and navy installations until World War I. Georgia. and in 1886 John Pemberton concocted Coca-Cola in Atlanta. owner of a small bottling plant. began bottling soda waters. originated Dr Pepper Phos-Ferrates (see DR PEPPER COMPANY). The bottler's largest investment was in bottles and cases. met in October in Dallas and formed the Texas State Bottlers Protective Association. principally from East Texas. ginger. Other plants in Central Texas followed suit.
Delaware Punch. Orange Crush (three). and eight did not. Grapico (two). The Chero-Cola Company of Columbus. Bottling plants also manufactured other merchandise: ice (five plants). and six other plants incorporating a beverage 5
. Whitehead sold a half interest to J. was among the first to join CocaCola in issuing franchises in Texas. candy (eleven). In 1922 Texas had 179 bottling works. Soft drinks were among the first consumer products controlled by the franchise system. Out of 276 bottling firms. and beer (one). including Chero-Cola. T. By 1923 Texas had 205 plants (of 4. Lime Cola." won a raft of court decisions. a noncarbonated drink formulated in 1913 in San Antonio. Georgia. and Whitehead built one in Atlanta. a lawyer from a Virginia tobacco family. but only 33 included a copyrighted soft drink in their trade name-30 with Coca-Cola and 3 with Whistle. In 1924 Texas bottlers marketed eleven trademarked products. Thomas built a bottling plant in Chattanooga. Thomas taking the northern and eastern states and Pacific coast and Whitehead taking the South and Southwest. Lupton. Keen Kola. ice cream (ten).develop the soft-drink industry nationally. Between 1899 and 1914 the number of Texas plants doubled and the value of production tripled. Tennessee. and in 1902 his relatives opened plants in Dallas and Houston. In 1924 nine bottlers were producing "cola" drinks besides Coca-Cola. but only the Coca-Cola bottlers included the franchise in their trade name. In 1914 Texas had 262 plants (4.8 percent of the nation's total). 114 produced no franchised soft drinks. In 1914 twenty Texas bottlers listed Coca-Cola as part of their trade name. ten Dr Pepper plants with name identification by trademark. three Orange Squeeze plants. Lupton helped finance the CocaCola bottling plant in Atlanta. Between 1914 and 1924 a number of flavor manufacturers or distributors began offering franchises patterned after the Coca-Cola model.514 nationally). Other franchises in Texas included Whistle (six plants). Thomas and Whitehead offered contracts in specific geographic regions. changed its corporate name to Nehi Company and promoted fruit flavors. and stopped the traffic for a decade. Within three years Coca-Cola was selling its syrup to twenty-nine Texas plants. and Cola Hiball. creamery products (three). Other Texas companies did not issue franchises until the 1920s. Tex-A-Cola. By 1929 the state had thirty-four Nehi plants. Cola-Cola filed a lawsuit against all "imitators. and Cherry Blossoms (one). NuGrape (one).
name. Coca-Cola gave bottlers "exclusive rights" to use its trademark in 6½-ounce returnable bottles in a specific territory. In 1929 Texas had 325 bottling plants, 16.3 percent of the national total. The number declined to 260 in 1931 and 210 in 1933. During the Great Depression, Seven-Up and Pepsi-Cola sought markets in Texas, mainly under the promotion of Jodie W. McCarley of San Antonio. While shagging baseballs for the Cleveland Indians in St. Louis, McCarley met Pearl Whitcraft and Ed Taylor, who owned soda-water plants in the city. In 1929 Taylor offered McCarley a chance to get in the bottling business by assuming a debt owed a St. Louis flavor manufacturer. McCarley set up a small bottling plant in his home in San Antonio with second-hand machinery, and peddled his drinks each morning. In addition to generic flavors, he sold Knight Club Ginger Ale, mostly to bootleggers. Ed Taylor also put McCarley in touch with C. L. Griggs, owner of the Howdy Company, which offered franchises on Howdy Orange. In 1928 Griggs had copyrighted Seven-Up, a lithiated lemon drink promoted as a mixer. In January 1930 McCarley, the second bottler in the nation to receive a Seven-Up franchise (Taylor was the first), was given an opportunity to sell Seven-Up in seventy-eight Texas counties. Business was slow: he signed up only one bottler, Ed Knebel, who had moved his small plant from Pflugerville to Austin in 1930. In 1932 McCarley obtained a franchise to sell Hires Root Beer. Then Whitcraft notified McCarley that Pepsi-Cola was interested in Texas, and on April 1, 1934, McCarley and a partner secured a Pepsi-Cola franchise for sixty-four counties. McCarley was the first Texan to bottle Pepsi-Cola. In his first year he sold 13,300 cases of Pepsi in twelve-ounce beer bottles of brown, green, and "flint" (colorless). As his business expanded, he began operating five route trucks, and in 1937 he moved to a larger plant in San Antonio. By the 1930s, Pepsi and Nehi's Royal Crown Cola had established markets in Texas. Nehi had a statewide system known as Chero-Cola bottlers. Depression prices enabled bottlers to offer twelve-ounce drinks for five cents retail, and twelve-ounce bottles became popular. Between 1934 and 1939 Pepsi signed up bottlers in eighteen Texas towns, though many of these did not survive. Texas bottlers were highly competitive. With Cola-Cola leading the way, they maintained an eighty-cent wholesale price for a case of twenty-four bottles. The Coca-Cola franchise
system had developed, however, when each plant served an area that a horse-drawn truck could cover in a day. The motor truck expanded dealer territories. Although each community had a wealthy Coca-Cola bottler, Walter Mack, Pepsi president in 1938-39, saw opportunities. Coca-Cola maintained 1,150 franchise areas in the nation, but Mack was able to franchise 550 areas for Pepsi. Pepsi also ran ads at independent radio stations and later on the networks. By early 1938 many Texas Coca-Cola bottlers, under company pressure, had dropped all flavors except Coca-Cola. Dr Pepper started franchising in 1925 and offered the drink to Coca-Cola bottlers, who declined to accept. In 1938 the Texas softdrink industry comprised 297 plants. Most held multiple franchises. At the outbreak of World War II, the soft-drink industry faced rationing of sugar, crown caps, cork, gasoline, tires, trucks, and coolers. Though prices were frozen and labor became scarce, bottlers profited from the military bases established in Texas, since quota-exempt sugar was available to the military, which deemed soft drinks essential to morale. CocaCola promptly moved its vending machines, introduced in the late 1930s in service stations, grocery stores, and at-work outlets, to military bases. Few bottlers had vending machines, especially multiple choice vending. These bottlers found markets at the Post Exchanges. After the war, soft drink demand soared. On October 23, 1946, wartime controls were lifted, but sugar rationing continued until July 28, 1947. Bottlers were reluctant to break the "nickel price." Coca-Cola advanced its price from 80 cents to 90 cents to $1 a case, but still did not raise the retail price of 5 cents. Some coin-vending machines had a six-cent mechanism, but they were awkward to use. While Coca-Cola kept sales prices down, other companies, especially Pepsi and RC Cola, were stuck with a twelve-ounce bottle and its higher ingredient costs. In1955 Coca-Cola introduced the "king-size" (ten or twelve ounce) and the "family-size" bottles (twenty-six ounces). The family-size returnable became popular in Texas, particularly in urban areas. Dr Pepper and Seven-Up followed. Nehi had authorized the "Par-T-Pak" in quart or family size in the 1930s, but sales had been slow. Bottlers soon saw the economy of returnable bottles. As prices and bottle sizes increased, a conflict loomed between "big-bottle bottlers" and "little-bottle bottlers." Clifton C. Carter,
a vice president of the Texas State Bottlers Association, sought to resolve the problem. In 1952 the Texas State Bottlers Association enrolled 226 bottling plants as dues-paying members; 145 plants were non-members. Carter, membership chairman, sought new members and saw a major increase in membership to 71 percent of total Texas bottlers. In February 1954 Carter became president, W. L. "Brownie" Dorris became vice president, and J. Conrad Dunagan became second vice president. Association officers made swings through Texas to enlist members. Carter visited eleven cities, Dorris nine, and Dunagan five. Their efforts bore fruit. By enlisting members, the association began to defuse the bottling controversy and other problems. In 1957 the American Bottlers of Carbonated Beverages, of which the Texas State Bottlers had been an affiliate since 1919, cited the Texas group as the "outstanding state bottlers' association in the nation." Dunagan was elected to the ABCB Executive Board in 1961 to the presidency for 1957-58. Texas, with more ABCB members than any other state, brought the national convention to Dallas in 1961. Vice President Lyndon B. Johnson gave the keynote address. As the Texas bottlers worked out their differences, innovations changed the industry in packaging, manufacturing, and distribution. Cans with linings that could withstand the acidity of soft drinks were introduced, along with materials to withstand high degrees of carbonation. Calcium Cyclamate and sodium cyclamate were combined with the synthetic sweetener saccharin to produce an acceptable diet drink. Nehi had tried to market Diet Rite in 1952 in Texas, but acceptance was spotty. However, diet drinks gained steadily and reached an annual rate of 15 percent of the soft-drink market by 1969. Major soft-drink companies, as well as major brewers, had developed canned drinks during World War II, but a "metallic" taste persisted because the cans lacked special acid-resistant linings. CocoCola introduced canned drinks in 1960, when it authorized the Kimble Food Products Company of Fort Worth to offer canned Coca-Cola to franchised bottlers. Although supermarkets quickly accepted canned drinks, they sold only 450 million cans in 1954, a fraction of the 30.3 billion bottles sold. Canned-drink sales fell to 317 million by 1956, when Royal Crown, Nehi, and Par-T-Pak entered the market. Canned RC Cola, Diet Rite, and Nehi flavors arrived in Texas by rail from Columbus, Georgia. The glass-container industry, aware that Texas supermarkets objected to handling returnable bottles, introduced 8
Pat W. By then. and equipment. some bottlers turned to cooperatives to build canning plants. E. The organizers also discovered that Texas lacked legislation to permit issuing tax-exempt bonds for industrial development. but the boxes were too expensive for one-trip use. The bottlers now sought federal legislation to rescue their franchises. Lubbock. soft drinks were sold for home consumption. The Portales plant opened in the spring of 1975. But Coca-Cola warned that the bottlers who used their franchise territory to host a cooperative could incur substantial liabilities. the FTC decision favoring franchises had been overruled-a shocking set-back. buildings. and Monahans bottlers sought ties with New Mexico and Oklahoma bottlers. Strengthened paperboard solved the problem. In the 1920s. New Mexico. in the Clovis Coca-Cola franchise. While the threat of franchise cancellation hung over their heads. This encouraged housewives both to return the empties and buy more. and R. Nickles as secretary-treasurer. so Southwest Canners located its plant in Portales. Pepsi-Cola built a plant at Conroe. In 1971 the Federal Trade Commission declared the existing franchises to be illegal restrictions on interstate commerce and sued the major companies. In the 1970s the federal government threatened the franchise system in the soft-drink industry. the FTC examiner ruled for the soft-drink companies. easily competed with aluminum and steel cans. the bottlers found wide support. In 1933 Coca-Cola distributed 2 cent postcards to bottlers for stores to use as coupons with which a customer could received a free six-pack by paying the twelve-cent bottle deposit. however. and in July 1970 turned it over to a corporation composed of Texas Pepsi-Cola bottlers. After lengthy hearings. By 1972 West Texas bottlers planned a cooperative to produce Coca-Cola and other franchised products. As most congressional districts in Texas had bottling plants. But
. Marketing strategies also changed. with J.light-weight glass bottles. In 1922 CocaCola sought additional markets by producing a cardboard six-bottle carton. and plants also sold cases from the floor or loading docks. McNamara as vice president. Conrad Dunagan as president. Grocery stores offered a twenty-four-bottle wooden case. New Mexico permitted industrial bonds to acquire land. The larger sizes. They established the Southwest Canners. twenty-six to thirty-two ounces. Amarillo. and an Albuquerque investment bank underwrote $2 million in municipal bonds.
would not release the bill. Sam Hall. PepsiCo brands are available in nearly 200 countries and territories and generate sales at the retail level of about $78 Billion. Coca-Cola. and the soft-drink franchise system was saved.000 employees. The company consists of Frito-Lay North America. chairman of the Appropriations Committee. In the late 1970s and early 1980s. and in September they acquired control of the McAllen and Brownsville Coca-Cola Bottling Companies. bottling franchises began to consolidate. and worked through independent bottlers at Abilene. Mahon. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
.Texas representative George H. Dr Pepper merged with the Seven-Up Company in 1986 and soon thereafter moved its manufacturing operations to facilities in St. PepsiCo International and Quaker Foods North America. with 2004 revenues of more than $29 billion and 153. Louis. Hallettsville. which had relied heavily upon independents until the 1980s. supplemented by other company franchises and independents. North America. although the company's corporate headquarters remained in Dallas. introduced a measure to call the bill from committee by a House vote. and San Antonio. of Marshall. Both House and Senate approved the measure. In July 1986 Coca-Cola Enterprises acquired Rainwater Coca-Cola Bottling Companies in Texas. Houston.2
ABOUT PEPSICO COMPANY
PepsiCo is a world leader in convenient foods and beverages. Mesquite. but the corporation is relatively young. By the mid-1990s many of the major urban markets for Coke were serviced by Coca-Cola Enterprises. Many of PepsiCo’s brand names are more than 100 years old. PepsiCo Beverages North America. began to purchase large independent bottling groups in 1986 and consolidate them into Coca-Cola Enterprises. and Corpus Christi. Finally.
1. In 1996 Pepsi-Cola had company-owned bottling facilities at Conroe.
approximately 45 minutes from New York City. the erstwhile bottler of Coca-Cola.
.” PepsiCo’s World Headquarter PepsiCo’s world Headquarter is located in Purchase. business partners and the communities in which we operate. Tropicana was acquired in1998 and PepsiCo merged with Quaker Oats Company including Gatorade in 2001. Kendall Sculpture Gardens. fairness and integrity. New York. Other products offering by Parle included Limca & GoldSpot. one of America’ foremost architects.
PEPSI – THE INDIAN SCENARIO
Since the entry of Pepsi – Cola to India in 1989. And n everything we do. The building occupies 10 acres of a 144 acre complex that includes the Donald M. a world acclaimed sculpture collection in a garden setting. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and growth and enrichment to our employees. PepsiCo’s Mission “ To be the world’s premier consumer Products Company focused on convenient foods and beverages. Parle was the leader with the Thumps-Up being its flagship brand. When Pepsi-Cola entered Indian market. “Pure Drinks”.Frito-Lay. Campa-Lemon & Campa-Orange. we strive for honesty. Its offering includes Campa-Cola. the soft drink industry has under gone a radical change. The seven building headquarters complex was designed by Edward Durrell Stone. another upcoming player in the market was.
. Pepsi-cola launched its product in Shimoga and Bombay. 1994 Milestone Pepsi bought “Dukes & Sones”. Pepsi-Cola and Parle start initial negotiation for a strategic alliance but took break off after a while. stable hited the market. Brito Foods application is cleared by the FIPB. 1993 Milestone Pepsi-Cola launched “Slice & Teem” captured about 25-30% of the soft drink market in about 2 years. In May. 1992 Milestone In January. 1990 Milestone In March. Pepsi-Cola had to go in for more aggressive marketing to sustain share. simultaneously it rejects the Coca-Cola application “Citra” from the Parle. the Government cleared the Pepsi-Cola project again but with a change in brand name to “Lehar Pepsi”. The chronology of the initial phase of the Cola Wars in India are …… 1977 Milestone Parle launched Thumps-Up and pure drinks launched Coca-Cola.With the re-entry of Coca-Cola in the Indian market. “Pepsi-Cola and 7-Up” launched markets in north India. 1991 Milestone Pepsi-Cola extended its soft drinks business and reached at national scale.
1995 Milestone Pepsi-Cola lunched Cans, having capacity of 330ml in various flavours. 1996 Milestone Pepsi-Cola domestic and International operations combined into a PepsiCola Company. International and Domestic operations combined into one business unit called “Frito-lay Company”. 1997 Milestone Pepsi-Cola brought “Mirinda Orange” Opposite to “Fanta”. 1998 Milestone Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”. In September, final approval for the Pepsi Foods Ltd. Project granted by the “Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt.” 1999 Milestone Pepsi-Cola launched “Diet Pepsi” can and 1.5 Lit. health conscious people. 2001 Milestone Pepsi-Cola launched Slice in “Tetra” Pack . 2003 Milestone Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season. 2005-Milestone Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of movie Batman. “PET” bottle for
2005-Milestone Pepsi-Cola launched 7-up as “7-up ice”. Pepsi-Cola launched “Mountain Dew” to be more competitive with Coca-cola. CELEBRITIES FOR PEPSI Following are some celebrities for Pepsi : Amitabh Bachchan Shahrukh Khan Saif Ali Khan Fardeen Khan Kareena Kapoor Preity Zinta Sachin Tendulkar Saurav Ganguly Yuvraj Singh Harbhajan Singh Rahul Dravid Zaheer Khan Mohammad Kaif Priyanka Chopra
FAMOUS CATCH LINES Some famous lines of Pepsi are : -
• “Yehi Hai Right Choice Baby……Aaha !!” • “Nothing Official About It”
• “Choice of Next Generation” • “More Cricket More Pepsi” • “Yeh Aazadi Hai Dil Ki” • “Yeh Dil mange More” • “Zor Ka Jhatka Dheere Se Lage” • “Pepsi Ke Liye Hum Besharam Hain” • “Yeh Pyaas Hai Badi” • “Do The Dew” • “Oye… Bubbly !!”
R .K .Jaipuria Group It can be said with absolute certainty that the RKJ Group has carved out a special niche for itself. Our services touch different aspects of commercial and civilian domains like those of Bottling, food chain and education. Headed by Mr. R. K. Jaipuria, the group as today can lay claim to expertise and leadership in the fields of education, food beverages. The business of the company was started in 1991 with tie- up with Pepsi Foods Limited to manufacture and market Pepsi brand of beverages in geographically pre-defined territories in which brand and technical support was provided by the Principles viz., Pepsi foods Limited. The manufacturing facilities were restricted at Agra Plant, only Varun Beverages Ltd. is the flagship company of the group. The group also become the first franchisee for Yum Restaurants International [formerly Pepsi Co Restaurants (India) Private Limited] in India. It has exclusive franchise rights for the Northern & Eastern India. It has total 27 pizza Hut Restaurants under its company. 15
PepsiCo Inc. unlisted and closely held between Indian Promoters and Foreign collaborators.It diversified into education by opening the first school in Gurgaon under Management of Shimoga Public School Society. The group added another feather to its cap when the prestigious PepsiCo “International Bottler of the year” award was presented to Mr. Vision:Being the best in everything we touch and handle. President of Pepsi Cola Company. USA. Roger A. Donald M. high quality retail branded beverages combined with world class packaging. Companies are medium sized. R. Mission:Continuously excel to achieve and maintain leadership position in the chosen business and delight all stakeholders by making economic value additions in all corporate functions. Jaipuria for the year 1998 at a glittering award ceremony at PepsiCo’s centennial year celebrations at Hawai. K.
. The award was presented by Mr. professionally managed. Chairman of the Board & C. Success :Production of innovative.O. Enrico. Craig Weatherup.E. driving earnings improvement and shareholder value. Driven by management team with a relentless focus on achieving superior customer service. The schools of the group are run under a registered Trust namely Champa Devi Jaipuria Charitable Trust.. and Mr.
training and well management backup for strong performance and accountability. as well as with an environment of open communication and involvement.People :RKJ creates an environment where employee enjoy a greater degree of empowerment – both individually and in their work teams.
. The employees are equipped with the necessary tools.
THE RKJ GROUP INVESTMENT COMPANIES CHART
VARUN BEVERAGES LTD. GREATER NOIDA
Western-UP.A. Greater Noida is a Bottling Plant of Pepsi Cola Brands. Its marketing Network is spread in Shimoga(TRANS YAMUNA) and Uttaranchal. VBL has always secured top position in its best quality and marketing. The group is a largely diversified rising group having interest in Soft Drink Bottling. Evervess Soda. power project. The company’s mainly operate the Bottling and marketing of Pepsi Cola Brand. Rajasthan. It is a Franchise company of PepsiCo India holding. Mirinda-orange. in 1998. Plot No – 2. AIM The main aim of VBL Greater Noida plant is to provide soft drink to the people of India in its assigned territory. It is on the rising path under and the wisdom guidance of its chairman Mr. Today. Haryana.JAIPURIA who is the chairman of the group. which is helpful in keeping cool their mind. Restaurant chains under the Brand name of Pizza Hut and Tricon & Creambell Ice Cream manufacturing. VBL is the top position holding company among the soft drink bottling companies in India.S. GEORGE BUSH. Its product brand are Pepsi. Mirinda-Lemon.VARUN BEVERAGES LTD (PEPSI). former president of U.K. R. Greater Noida Industrial Development Authority has awarded and given early production incentive for being starting and competing the project very first in Greater Noida. received various award for the best quality and marketing. JAIPURIA GROUP COMPANY”.
The VBL plant was established in the year 1995 in Greater Noida. Export and many other projects. He has also been awarded for good quality and marketing in South Asia with “EXCELLANCY AWARD” by Mr. 7-Up. Its registered office is located in New Shimoga and corporate office at Noida. It was the first plant to start its operation in the Greater Noida Industrial Development Area. Surajpur Bypass. It’s a “R. Mirinda-Apple. It is having Pepsi Bottling Plants in various places of India as well as out of India.R.K.K.
.JAIPURIA. Mr. Slice.
And most importantly.The aim of this company is also to provide full satisfaction to the customers.
• • •
Deliver the best product in the market place The highest Quality The best Tasting
. through a range of customer relevant product manufactured with care and quality in a fully hygiene environment.
Their popularly exiting brands in the Indian Market are as follows: Soft Drinks 1) Pepsi 2) Pepsi Blue 3) Diet Pepsi 4) Mountain Dew 5) Slice 6) 7Up Purified Drinking Water Aquafina Fruit Juice Tropicana Chips Frito-Lays Ruffles
. They have also diversified into different sectors.Different Brands of Pepsi Co.(India)
Pepsi Co is today having the soft drinks market in India with lots of its brands.
natural and artificial flavors. potassium benzoate and potassium sorbate (to preserve freshness).Composition of Pepsi
Pepsi Contains: Carbonated water. phosphoric acid. blue 1. high fructose corn syrup and/or sugar. phosphoric acid. caffeine. gum arabic. citric acid and natural flavors Calories 100
Total Fats (g) 0 Sodium (mg) 25 Potassium (mg) 10 Total Carbohydrates (g) 27 Sugars (g) 27 Protein (g) 0 Caffeine (mg) 25 Pepsi Blue Contains: Carbonated water. high fructose corn syrup and/or sugar. potassium citrate. red 40 Calories 100 Total Fats (g) 0 Sodium (mg) 25 Total Carbohydrates (g) 27
. citric acid. caramel color. caffeine. ascorbic acid and calcium disodium EDTA (to protect flavor).
potassium benzoate (preserves freshness). phosphoric acid. citric acid and natural flavors Calories 0 Total Fats (g) 0 Sodium (mg) 25 Potassium (mg) 20 Total Carbohydrates (g) 0 Sugars (g) 0 Protein (g) 0 Caffeine (mg) 24
PRODUCTION SET UP
Greater Noida plant is a dedicated plant for 7 major products. aspartame. 200ML 300ML. 200ML 24
. These are as follows : PRODUCT PEPSI MIRINDA ORANGE MIRINDA LEMON BOTTLING FILLING 300ML.Sugars (g) 26 Protein (g) 0 Caffeine (mg) 25 Diet Pepsi Contains: Carbonated water. caramel color. 200ML 300ML. caffeine.
• • • • • •
COCA-COLA INDIA PVT LTD DABUR INDIA LTD MOUNT EVEREST MINERAL WATERS LTD NARANGS HOSPITALITY SERVICES PVT LTD PARLE AGRO PVT LTD PARLE BISLERI LTD
.UP EVERVESS SODA MOUNTAIN DEW
250ML 300ML.5 acre. There are 40 mangers/officers/ supervisors and rest of workmen. Plant has employed about 200 employees on permanent and casual basis. 200ML 300ML 200ML & 300ML
Plant is producing 10 million cases every year.
1.SLICE 7. Plant is dispatching near about125-150 trucks in peak seasons per day to various location. This plant is spread over 7. This Plant is spread in peak seasons per day to various location.3
• • •
PROBLEMS OF THE ORGANIZATION
Service delivery / Logistics perception is weak Negative Environment Top management takes large amount of time to approve high value loan borrowers.
PIOMA INDUSTRIES LTD
6. advertisement in which Sachin Tendulkar whistles at the end
.Cola. (As compared to Coca-Cola.) 3. Pepsi is having an edge. Mirinda is found more popular among kids. A large and strong distribution network. (Pepsi’s T. (Companies efforts of providing the Pepsi and other products to the customer’s doorstep are working vis-ã-vis wherever the transportation is not possible dealers are appointed. 8.V.1. 2. More emphasis on market penetration.5
STRENGTHS 1. More popularity among the kids and female youth. advertisements of Pepsi is far more in comparison to Coca . In comparison to Coca-Cola’s red color.) 7. In the rural areas and outskirts of the city where there is maximum population is illiterate.) 5. On the other hand companies’ operational staff always try their maximum strength to meet the demand and utilize the recourses to maximum. (In comparison to the other competitive brand Pepsi is having better reach to the market. pronouncing Pepsi is lot more easy reason for more demand of the Pepsi and its brands. (Starting from the higher-level management to the sales-man Pepsi’s employees is having great degree of dedication and professional attitude towards selling the products.).) 4. (Because of the sweetened taste Pepsi and its other brands attracts the kids and female more. Professional and dedicated manpower.V. which is brighter and have more visibility Pepsi’s blue color provide sense of relax ness in the bright sunny day. Retain ability of the T. Company belongs to the FMCG sector so the demand will never die.
On the other hand Coca-Cola’s advertisement campaign of” thanda matlab Coca-Cola” and Amir Khan’s five rupees add have the maximum retainability. advertisement campaign which comprises of Amitabh Bachan. OPPORTUNITIES
. Coca-Cola’s red color has more visibility than Pepsi’s blue color. Pepsi’s sinages are far more scattered as compared to Coca-Cola.000 bottle/day.has maximum retain ability. Low plant capacity because of which company is not able to meet its demand during the peak season.)..) 5. which is insufficient to complete the demand during the peak seasons. Lesser plant utilization during the off-peak seasons. which results in wastage of time and sometimes in resources also. Shane Warne and Carl Hooper. (Because of this at some places it looks that the market is captured by Coca-Cola. (Devyani Beverages India Ltd.). Pepsi’s Greater Noida plant has one continuous assembly line for preparing tetra and four continuous assembly lines’ which are filling around 15. WEAKNESS 1. Other than this world cup 2003 advertisement campaign that comprises of Sachin Tendulkar. plant and resource utilization goes down. (During the winter season as the demand is very low. Lack of automaton in the administrative department in the plant. 4. 3. (Because of the bright color of Coca-Cola it is more visible even from the distance as compared to Pepsi) 2. Karma Kapoor and Adnan Sami and latest advertisements of Pepsi and Mountain Dew (Do the Dew) are very famous.
Not able to meet the market demand during the peak season.)
Kids demand for the Mirinda more as compared to any other orange flavor soft drink brand. (As the plant capacity is very low the company is not able to meet the existing demand during the peak seasons).
. he tends to meet with the lack of sales at the end of the day despite of the increasing demand because wherever he goes he found the empty bottles of Coca-Cola everywhere which he is asked not to picked up. (Because of the heat the demand of the soft drink raised drastically which is the good opportunity for the company a the rival brands are also finding it difficult to complete the demand. firstly our bottles are getting tucked with the CocaCola and creating shortage of empty bottles of Pepsi in the market. 2.-I-vis to any of the competitor.
Demand is more than the production.1. and secondly when our salesman goes to distribute the re-filled bottles in the market. (This is hitting the Pepsi in two ways.
THREATS 1. has to increase the production.
With the launch of slice tetra PepsiCo has entered in to one more segment of soft drink beverages. Pepsi is not picking up the empty bottles of Coca-Cola on the other hand Coca-Cola is exchanging the Pepsi’s empty bottles with the filled bottles of Coca-Cola. Therefore PepsiCo. as this can restrict the entry of the other brands in the rural market.
4. Therefore it is viable to make it more stronger.
In the rural areas PepsiCo’s distribution network is far stronger vis. which was more or less captured by the “Frooti” till now.
There is no proper policy of distributing the merchandising assets of the company to the retailers.
There is lot of complaints are coming up about the impurities or leakage of gas or leakage of carbonated water. (Within the last 30 days I met around 50 such complaints because of which retailers were very angry with the company).
5.3. (Many of the retailers have so many things though their sales are low but few of them don’t have anything inspite of large sales.
Some of the filling equipments in the plant are quite old which one of the reasons for low production is.).
Chapter 2 OBJECTIVE AND RESEARCH METHODOLOGY
SCOPE OF THE STUDY
To find out the loopholes (if any) in the Performance Appraisal System at Varun
Beverages Ltd.RESEARCH METHODOLOGY
The main significance of the project is to identify the level of motivation. • • • To study the various types of Performance Appraisal methods.
MANAGERIAL USEFULNESS OF THE STUDY
To point out and suggest the organization to adopt remedial actions to remove those loopholes. To establish a direct relationship between work performance and Performance Appraisal system. aiming to improve the productivity and efficiency of the worker and increase the level of job satisfaction among them. To study the Performance Appraisal method being used at Varun Beverages Ltd.3
To critically study the HR Policies and Performance Appraisal system existing at
Varun Beverages Ltd. job satisfaction and performance among the employees after & before the conduction of Performance Appraisal Exercise.
This method of data collection is quite popular particularly in case of enquiries. private and public organizatoions and evenby governments.Interview method: The interview method of collecting data involves presentaion of oral verbal and stimuli reply in terms of oral verbal responses.Observation method: The observation method is the most commonly used method especially in studiesrelating to behavioural sciences. research purposes. It is being adopted by private individuals. A.Questionnaires.•
To have an overlook over the changes and improvements made in the Company
2. In this method questionnaires are sent to the
. This method can be used through personal interviews and if possible through telephonic interviews. B:.. Data Collection There are two methods for collecting the data. C:. Under the observation method the information is sought by way of investigator’s own direct observation without asking from the respondent. They are: 1) 2) Primary Data Secondary Data
Primary data: There are several methods of collecting Primary data.5
Research Methodology is a way to systematically solve the research problem involving a study of various steps that are adopted by the researcher in studying his/her research problem. These are given below.
Ltd. colleges. nonrandom sampling technique has been used. banquet halls and other beverage stalls etc. Type of Sampling: The sample is drawn on non-probability sampling basis i. Type of Universe: Retailers or marketers who sell Pepsi products in the finite type of universe. Secondary Data When an investigator uses the data that has been already collected by others is called Secondary Data. Consumers of Pepsi products are the infinite type of universe. The advantages of the secondary data can be. both in terms of money and time spent. canteens.
Target Population: The target population under this survey are the schools. web sites. which keep Pepsi products and are in contract with Pepsi Food Pvt Ltd. The sample size has been decided in accordance with the instructions been given by the Pepsi Food Pvt.The respondents have to answer the questions on their own. The secondary adapt could be collected from Journals.it is economical.
2. Sample Size: The sample size taken into consideration includes simple of around 90 related people in various different location. Reports and various publications. The list of target population is definite and already decided in advance.persons ofconcern with the request to answer the questions and return the questionnaires.6
.e. restaurants. In this project I have used questionnaires as one of the primary sources of collecting data. Also the target population is limited to the north and West Shimoga only.
Every Study suffers from certain limitations and so does this project. So. the applicability of the findings and recommendations is subjected to the following mentioned constraints/limitations Respondents were reluctant to give their views on data or open to other Shortage of time duration for the research work Hiding of some true facts by the respondents due to the fear of the management Though care has been taken. judgement errors may have occurred Employees being very busy did not get enough time to give responses wholeheartedly Some of the responses given by the respondents were not legible and clear.
Chapter 3 CONCEPTUAL DISCUSSION
Followings are the leading definitions of HRM………………………. Since every organization is made up of people. and develop members for an organization. “Human Resource Management is a series of integrated decisions that from the employment relationship: their quality contributes to the ability of organization and the employees to achieve their objective” “Human Resources Management is concerned with the people dimension in management. regardless of the type of organization– government business. health. as the art of procuring. and social objectives are accomplished. developing and maintaining competent work force to achieve the goals of an organization in an effective and efficient manner. HRM tries to secure the best from people wining their whole hearted co-operation. developing their skills/ motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organization objectives. train. select. or social action” “Human Resource Management is the planning. integration. development. compensation. 37
. In short. directing and controlling of the procurement.. education.CONCEPTUAL DISCUSSION HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is a process of bringing people and organization together so that the goals of each are met. Simply put. recreation. Human Resource Management is a management function that helps managers recruit. It is that part of the management process which is concerned with managing Human Resources in an organization. organizing. organization. maintenance and separation of human resources to the end individual. it may be defined. This is true. acquiring their service.
Thus. The resultant gains are due to the people and it motivates them toward further improvements in productivity. 2. It enable them to give out their best to the organization.
Individual Oriented HRM tries to help employees develop their potential fully.
5. It is present in all enterprises. It requires a constant alertness and awareness of human relation and their importance in every day operations. People Oriented HRM is all about people at work. functions and activities designed and carried out in order to maximize both employee as well as organization effectiveness. It cannot be practiced only one hour each day or one day a week. Features/Characteristics/Nature of HRM 1. 4. Continuous Function According to Terry. making procedures or rules. Pervasive Force HRM is Pervasive in nature. HRM is not a one short deal. It permeates at every level of management within an organization. It motivates employees through a systematic
. HRM refers to set programs. It helps people on assigned jobs in order to produce good results. both as individuals and group. Action Oriented HRM focuses attention on action rather than on record keeping. 3.
Integrating Function HRM builds and maintain cordinal relations between people working at various levels in the organization. SCOPE OF HRM 1. 7. it tries to integrate human assets in the best possible manner in the serviceof an organization. 8. In short. Inter-Disciplinary Function HRM is a multi-disciplinary activity. Development Oriented HRM intends to develop the full potential of employees.manner of recruitment. Procurement Procurement includes recruitment and selection of right kinds of personnel to occupy the various posts in the organization. It includes :-
. selection. utilizing knowledge and inputs drawn from psychology. Employees are rotated on various jobs so that they gain experience and exposure. sociology. need to understand and appreciate the contributions of all such ‘soft’ disciplines. The reward structure is tuned to the needs of employees. managers. 6. training and development coupled with fair wage policies. Training is offered to sharpen and improve their skills. to unravel the mystery surrounding the human brain. anthropology. economics etc. Every attempt is made to use their talents fully in the service of organizational goals.
It also forms the basis of wage determination. Employees participation in committee and Board meetings may also contribute toward their development. Personnel Records The function of personnel records includes collection bio-data of all employees pertaining to their work e.
.g. merit-rating and performance appraisal. Job Analysis & Job Description Job Analysis and Job Description involves the studies of job requirements of the enterprises and assignment of well defined functions to jobs so that qualified employees may be hired. incentives systems of wage payment. Remuneration Provision of adequate remuneration for the work done by an employee involves Job Analysis and Job Evaluation. training job performance.. It includes determining wage rates. aptitude payment records. Efforts may be made to involve the employees in the actual management situations.(a) Determination of manpower requirements (b) Job Analysis (c) Nature and scope of recruitment (d) Employee selection and (e) Placement of employees Training & Development Training & Development is a must to prepare the worker gaining proficiency in the methods and techniques of work assigned to them.
Beyond this. sanity facilities. there are other objectives. Specifically. recreational facilities. It is only a means to assist the organization with its primary objectives. group insurance employee association etc. The failure of organizations to use their resources for the society’s benefit in ethical ways may lead to restrictions. 3) Functional Objectives
. Simply stated.Welfare and Industrial Relations It includes health and safety programme. the department exists to serve the rest of the organization. OBJECTIVES OF HRM The primary objective of HRM is to ensure the availability of a competent and willing workforce to an organization. 1) Societal Objectives To be ethically and socially responsible to the needs and challenges of the society while minimizing the negative impact of such demands upon the organization. or other such areas of societal concern. For example. Organisational. safety. HRM objectives are four fold – Societal. the society may limit HR decisions through laws that enforce reservation in hiring and laws that address discrimination. Functional and Personal. too. 2) Organisational Objectives To recognize the role of HRM in bringing about organizational effectiveness. HRM is not an end itself.
.To maintain the department’s contribution at a level appropriate to suit the organisation’s demands. The department’s level of service must be tailored to fit the organization it serves.
Personal Objectives To assist employees in achieving their personal goals. Societal Objectives a) Legal Compliance b) Benefits c) Union-management Relations 2.
HRM OBJECTIVES AND FUNCTIONS HRM Objectives 1. Personal objectives of employees must be met if workers are to be maintained. Retained and motivated. employee performance and satisfaction may decline and employees may leave the organization. Organisational Objectives a) Human Resource Planning b) Recruitment c) Selection d) Training & Development e) Appraisal f) Placement g) Assessment 3. Functional Objective a) Appraisal b) Placement c) Assessment Supporting Functions
. at least insofar as these goals enhance the individual’s contribution to the organization. Otherwise.
.4. viz. 1) Managerial Functions A) B) C) D) 2) Planning Organizing Directing Controlling
Operative functions A) Employment i) ii) iii) iv) v) vi) B) Job Analysis Human Resource Planning Recruitment Selection Placement Induction & Orientation
Human Resource Development i) ii) iii) iv) Performance Appraisal Training Management Development Career Planning & Development
. Personal Objective a) Training & Development b) Appraisal c) Placement d) Compensation e) Assessment FUNCTIONS OF HRM The functions of HRM can be broadly classified into two categories.
a) Internal Mobility b) Transfer c) Promotion d) Demotion 3) Compensation A) B) C) D) E) F) 4) 5) Job Evaluation Wage & Salary Administration Incentives Bonus Fringe Benefits Social Security Measures
Human Relations Effectiveness of HRM A) B) C) Human Resource Accounting Human Resource Audit Human Resources Research
All the above maintained Categories and their respective sub headings are discussed in details as follows :1) A) Managerial Functions :Planning It is pre-determined course of action. requirement. selection. In other words. it involves planning of human resources. 45
. Planning is determination of personnel programmes and changes in advance that will contribute to the organizational goals. recruitment.
the performance is to be verified in order to know that the personnel functions are performed in conformity with the plans and directions. identification of deviations if any and controlling of identified deviations.. Thus. employment. leading and activating and human relations besides securing employee contributions. It also involves forecasting of personnel needs. organization establishes relationships among the employees so that they can collectively contribute to the attainment of company goals. D) Controlling After planning. The basic function of personnel management at any level is motivating commanding. viz. development. It is essential to carry out the determined course of action. All these functions are interacted by managerial functions. B) Organizing An organization is a means to an end. Controlling also involves checking. 2) Operative Functions The Operative Functions of personnel management are related to specific activities of personnel management. organizing and directing the various activities of the personnel management. attitudes and behavior of employees and their impact on organization. A) Employment
. verifying and comparing of the accruals with the plans. compensation and relations.training etc. C) Directing The next logical function after completing planning and organizing is the execution of the plan. changing values.
human resources planning. machines and materials. available at proper times. plans and basis for the job design and for all operative functions of HRM. levels and quantum of human resources. selection. Employment is concerned with securing and employing the people possessing required kind and level of Human Resources necessary to achieve the organizational objectives. placement. recruitment. performing jobs which would meet the needs of the organization and which would provide satisfaction for the individuals involved. i) Job Analysis It is the process of study and collection of information relating to the operations and responsibilities of a specific job. It involves :-
. information.It is the first operative function of HRM. job requirements and employees specification which will help in identifying the nature. job specification. facts and ideas relating to various aspects of jobs including man. induction and internal mobility. It covers the functions such as job analysis. Providing the guides. ii) Human Resources Planning It is a process for determination and securing that the organization will have an adequate number of qualified persons. Preparation of job description. It includes :Collection of data.
Calculation of net human resources requirements based on present inventory of human resources.
. It deals with : iv) Selection It is the process of ascertaining the qualifications. iii) Recruitment
Taking steps to mould. Striking a balance between internal and external sources. skill. knowledge etc. experience. employees. and develop the strength of existing employees in the organization so as to meet the future human resource
Preparation of action programmes to get the rest o human resources from outside the organization and too develop the human resources of existing
It is the process of searching for prospective employees and stimulating them to apply for jobs in an organization.
requirements. 48 Identification of existing sources of applicants and developing them Creation/Identification of new sources of applicants. Stimulating the candidates to apply for jobs in the organization.
Estimation of present and future requirements and supply of human resources basing on objectives and long range plans of the organization. of an applicant with a view to appraising his/her suitability to a job appraising.
Checking of references Setting up medical examination policy and procedure Sending letter of appointment and rejection Employing the selected candidates who report for duty. Induction and Orientation Framing and developing application blanks Creating and developing valid and reliable testing techniques Formulating interviewing techniques. if any.This function includes : V) Placement It is the process of assigning the selected candidate with the most suitable job in terms of job requirements. appraising employee performance in order to determine employee adjustment with the job.
. vi) Correcting misplacements. It is matching of employee specifications with job requirements. Conducting the follow-up-study. This includes : Counseling the functional managers regarding placement.
supervisors and subordinates. of the organization. culture etc. market share. This includes : Acquaint the employee with the company philosophy. Mould the employee attitude by orienting him to the new working and social environment. purposes and people etc. product.
. policies. company history.. opportunities. social and community standing. Introduce the employee to the people with whom he has to work such as peers.Induction and orientation are the techniques by which a new employee is rehabilitated in the changed surrounding and introduced to the practices. policies. career planning and development. objectives.
It includes :Identification of training needs of the individuals and the Developing policies.B) i)
Human Resource Development :Performance Appraisal It is the systematic evaluation of individuals with respect to their performance on
the job and their potential for development. procedures and techniques Helping the functional managers Reviewing of reports and consolidation of reports Evaluating the effectiveness of various programmes
. It includes : ii) Training It is the process of imparting the employees the technical and operating skill of employees. It includes : company iii) Developing suitable training programmes. Evaluating the effectiveness of training programmes Management Development It is the process of designing and conducting suitable executive development programmes so as to develop the managerial and human relation skill of employees.
Identification of the areas in which management development is Conduction of development programmes Evaluating the effectiveness of executive development program
In simple terms. we not only evaluate the performance of a worker but also his potential for development.
Objectives of Performance Appraisal
The main purposes of employee assessment are :-
. quality and quantity of output. Thus under Performance Appraisal. an impartial rating of an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job”. etcs. “all formal procedures used in working organization to evaluate personalities and contributions and potentials of group members” According to Flippo. A formal definition of Performance Appraisal is : “It is the systematic evaluation of the individuals with respect to his or her performance on the job and his or her potential for development” According to Dale Yoder. dependability. periodic and so far as humanly possible. versatility. the performance being measured against such factors as job knowledge. co-operation. leadership abilities. “ Perfromance Appraisal is a systematic. Performance Appraisal may be understood as the assessment of an individual’s performance in a systematic way. initiative. supervision.
.Training. and Transfers have been effective or not. Performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development for dialogue between the superior and the subordinate. and improves understanding of personal goals and concerns.
Who are Raters ? Raters are immediate Supervisors. group.
USE OF PERFORMANCE APPRAISAL
Followings are the some major use of Performance Appraisal to the organization :Poor Performance indicates the need for retraining. say for dxample every six months or annually.When to Appraise ? The appraisals are conducted wheneverthe supervisor or personnel managers feel it necessary. Clients. which is determined mostly through performance appraisals. or division. Whose Performance should be Rated ? To the question as to whose performance should be rated? That is. Likewise. it may be individual. good performance may indicate untapped potential that should be developed. or a combination of several. Subordinates. specialists from HR Department. Many firms grant part or all of their pay increases and bonuses based upon merit. Peers. However systematic appraisals are conducted on a regular basis. Committees. who can be Ratee ? The answer is obviously – Employees! And when we say employees. 2) Compensation Adjustments Performance evaluations help decision-makers determine who should receive pay raises. Self-appraisals.
. the Performance Standards are informed to all the employees including Appraisals. manager.
PROCESS OF PERFORMANCE APPRAISAL
Performance Appraisal is a nine step process :Step 1 In this step the performance standards are established based on the Job Description and Job Specification. Often promotions are reward for past performance. transfers. Performance feedback guides career decisions about specific career paths one should investigate. The standards should be clear. Deficiencies Good or bad performance implies strengths or weakness in the personnel department’s staffing procedures. and Personnel specialists to intervene with appropriate actions to improve performance. Appraisals help diagnose these errors. Step 2 Under this step. Poor performance may be a symptom ill-conceived job designs.Promotions. Performance feedback allows the employee. and demotions are usually based on the past or anticipated performance. Good / bad performance throughout the organization indicates how well the human resource function is performing. objective and incorporate all the factors.
records and reports are done. Step 4 This step find out the influence of various internal and external factors on actual performance. counseling. Step 5 This step is to comparing the actual performance with that of other employees and previous performance of the employee and others. the actual performance is measured with the standards and finding out deviations. interview.Step 3 In this step. the instruction given to appraisal are followed. Step 9 The last step is the follow-up of performance appraisal report. measurement of employee performance by the appraisers through observation.
. Step 8 This step suggest necessary changes in standards. Step 7 The seventh step compares. coaching and directing the employee or making arrangements for the training and development pf the employee in order to ensure improved performance. job analysis. internal and external environment. Step 6 The sixth step of Performance Appraisal Process. This step includes guiding. the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for the positive or negative deviations from the pre-set standards as the case may be.
.If the actual performance is very poor and beyond the scope of improvement. it may be necessary to take steps for demotion or retrenchment or any suitable measure.
checks to indicate if the answer to a question about an employee is positive or negative. Each scale ranges from excellent to poor. then computes the employee’s total numerical score. attendance. The rater checks the appropriate performance level on each criterion.METHODS OF PERFORMANCE APPRAISAL
1) Past Oriented Methods
a) Rating Scales This is the simplest and the most popular technique for appraising employee performance.
. The rater. and the rater indicates which statement is most or least descriptive of the employee. the rater is given a series of statements about an employee. c) Forced Choice Method In this method. the questions are on ‘Yes/No’ pattern. each representing job-related performance criterion such as dependability. initiative output. To value of each question may be weighed equally or certain questions may be weighted more heavily than others. It consists of several numerical scales. A series of questions are presented concerning an employee to his behavior. he supplies reports about it and the final rating is done by the personnel department. Generally. then . attitude. These statements are arranged in block of two or more. The number of points scored may be linked to salary increases whereby so many points equal a rise of some percentage. co-operation and the like. b) Checklist method In this method. the raters doesn’t evaluate employee performance.
Average 40%. Good 20%. For example. f) Field Review Method This is an appraisal by someone outside the assesee’s own department usually some one from the corporate office or the HR department.
. Below Average 20% and Unsatisfactory 10% e) Critical Incidents Method This approach focuses on certain critical behaviors of an employee that makes all the difference between effective and non-effective performance of a job.Typical statements are :i) ii) iii) d) Learns Fast………………….Works hard Work is reliable…………… Performance is a good example Absent often…………………usually tardy Forced Distribution Method One of the errors in rating is leniency-clustering a large number of employees around a high point on a rating scale. This method is also useful when comparable information is needed from employee in different units or locations. The forced distribution method seeks to overcome the problems by compelling the rater to distribute the rates on all points on the rating scale. Such incidents are recorded by the superiors as and when they occur. the following distribution might be assumed to exist – Excellent 10%. The outsider reviews employee records and holds interview with the ratee and his/her superior. The method is primarily used for make promotional decision at the managerial level.
starting from the best to the worst. the performance of A is first compared with the performance of B and a decision is made about whose performance is better.
. A. A relationship is established between the cost include in keeping the employee and the benefit the organization derives from him or her. and E. The same procedure is repeated for other employees. there are five employees name A. Then A is compared with C. D. Ranking can be given duly form A+. For example. the superior ranks his / her subordinates in the order of their merits. ii. the appraiser compares each employee with every other employee. D. one at a time. The usual comparative forms used in this kind of evaluation are the Ranking method and the Paired Comparison Method. i.
Comparative Evaluation Approaches This method is a collection of different methods that compare one worker’s performance with that of his/her co-workers. and E. Ranking Method In this. B……and so on. B+. C. Performance of the employee is then evaluated based on the established relationship between the cost and the benefit. B. Paired – Comparison Method Under this method.g)
Cost Accounting Method This method evaluates performance from the monetary returns the employee yields to his or her organization.
Management at succeedingly lower level in the organizations establishes targets which are integrated with those at the next higher level. MBO identifies performance deficiencies and enables the management and the employees to set individualized self-improvement goals and thus proves effective Training and Development programme. 61
.The number of comparisons may be calculated with the help of formula which is as under N(N-1)/2 Where. “BO is the establishment of effectiveness areas and effectiveness standards for the managerial positions and the periodic conversions of these into measurable time bound objectives linked vertically and horizontally and with future planning”. the result can be tabulated and a rank is created from the number of times each person is considered to be Superior. Reddin. MBO results in a “means ends” chain. Drucker was the first who gave the concept of MBO to the world way in 1954 when his The Practice Of Management was first published. MBO helps and increases employee motivation but it relates over all goals to the individual’s goals and helps to increase an employee’s understand of where the organization is and where it is heading. N= the number of employees to be compared. After the comparison. Thus. it can insure that everyone’s activity is ultimately aimed towards organization’s goals.
2) Future – Oriented Appraisals
a) Management By Objectives (MBO) Method Peter F. According to Prof.
work groups (without leaders).
. Assesses are requested to participate in in-basket exercises. role playing. emotional motivational and other workrelated characteristics that suggest individual potential and may predict future performance. After recording their observations of rate behaviors. Finally a decision is generated based on the discussion made. and other similar activities which requires the same attributes for successful performance.
Assessment Centres This method is mainly used for executive hiring. The principle idea is to evaluate managers over a period of time. The psychologist then writes an evaluation of the employee’s intellectual. An assessment centre is a central location where managers may come together to have their participation in job-related exercises evaluated by trained observers. The appraisal normally consists of in-depth interviews. Assessment centres are now being used for evaluating executive or supervisory potential. they assess an individual’s future potential and not the past performance.b)
Psychological Appraisals Large organizations employ full-time industrial psychologists. discussions with supervisors and a review of other evaluations. as in the actual job. the raters meet to discuss these observations. by observing their behavior across a series of selected exercises or work samples. When psychologists are used for evaluations. computer simulations. psychological tests.
It helps both the parties to review standards. help. and an. as well as employees. and helps the appraiser to offer his suggestions.
OBJECTIVES OF APPRAISAL INTERVIEW
1) 2) 3) 4) to let employee know where they stand to help employees do a better job by clarifying what is expected of them to plan opportunities for development and growth to strengthen the superior-subordinate working relationship by developing a mutual agreement of goals 5) to provide an opportunity for employees to express themselves on performance related issues Guidelines for effective Appraisal Interview select a good time inform to all employee a few days before the interview
.THE APPRAISAL INTERVIEW
The post appraisal interview has been considered by most of the organizations. set new standards based on the reality factors. the traits and behavior he has taken into consideration for appraisal. guide and coach the employee for his advancement. opportunity to the appraiser to explain the employee his rating. This interview provides the employee the feedback information. as the most essential part of appraisal system.
set at ease start with something positive Ask open-ended questions to encourage discussion Listen Manage eye contact and body language Be specific Rate behavior.
minimize interruptions welcome. not personality Layout development plan Discuss the future as well as the past Encourage subordinate participation Try to make constructive discussion always Always make the discussion on the right track Complete form Set mutual agreeable goals for improvement End in a positive . encouraging note Set time for any follow-up meetings
iii) Leniency & Strictness The leniency bias crops when some raters have a tendency to be liberal in their rating by assigning higher rates consistently. ii) The Error Central Tendency Some raters follow play safe policy in rating by rating all the employees around the middle point of the rating scale and they avoid rating the people at both the extremes of the scale. They follow play safe policy because of answerability to management or lack of knowledge about the job and person he is rating or least interest in his job. Equally damaging one is assigning consistently low rates.PROBLEMS OF PERFORMANCE APPRAISAL
The major problems in Performance Appraisal are :Rating Biases The problem subjective measure (is that rating is not verifiable by others) has the opportunity for bias. The rater biases include :i) Halo Effect It is the tendency of the raters to defend excessively on the rating of one trait or behavioral consideration in rating all other traits or behavioral considerations.
. Such ratings do not serve any purpose.
Less reliability and validity Techniques.iv)
Recency Effect The raters generally remember the recent actions of the employee at the time of rating and rate on the basis of these recent action – favorable or unfavorable .
of the Performance Appraisal
4) 5) 6)
Negative rating affect Interpersonal Relations and Industrial Relation System Influence of external environmental factors and uncontrollable internal factors Some ratings particularly about the potential appraisal are purely based on guesswork
Supervisors may get confused due to many objectives of Performance Appraisal Management emphasizes on punishment rather than development of an employee in Performance Appraisal.rather than on the whole activities.
Failure of the superior in conducting Performance Appraisal and Post Performance Appraisal interviews.
promotion. transfer. Consistency between organizational strategy & behavior Performance Appraisal system is an important organizational mechanism to elicit feedback on the consistency of the strategy-behavior link.
.COMPETITIVE ADVANTAGES OF PERFORMANCE APPRAISAL
Improving Performance An effective appraisal system can contribute to competitive advantage by improving employee job performance in two ways – by directing employee behavior towards organizational goals. Making Correct Decisions Appraisal is a critical input in making decisions on such issues as pay raise. and by monitoring that behavior to ensure that the goals aremet. training etcs Ensuring Legal Compliance Promotions made on factors other than performance might land up a firm in a legal battle. dissatisfaction resulting increase in the turnover among theemployees by generating a strong feeling of motivation. Minimizing Job Dissatisfaction & Turnover Appraisal minimizes the frustration.
360° PERFORMANCE APPRAISAL METHOD
The Performance Appraisal method. Peers Peer appraisal may be reliable if the work group is stable over a reasonably long period of time and performs tasks that require interaction. derived from a number of stakeholders. is called 360-degree appraisal. The 360-degree technique is understood as systematic collection of performance data on an individual or group. Peer Consider the following factors while appraising : Delegation of authority Team Spirit Motivation Subordinates
. and self. peers. other superiors having knowledge about the work of the employee and department head or Manager. customers. in which multiple raters are involved in evaluating performance. Supervisors Supervisors include superiors of the employee. He should prepare reports and make judgements without bias. team members. The appraiser should be capable of determining what is important and what is relatively less important.the stakeholders being the immediate supervisors.
as are customer/staff survey findings in which expectations/needs/priorities of appraisee performance are indicated or implied. can better be judged by the customers or users of services. also shown in the template example below:
. promptness.The concept of having rated by subordinates is being used in most organizations today. Customers Employee performance in every service organizations relating to behaviors. Consultants Sometimes consultants may be engaged for the appraisal when employees or employers do not trust supervisor for appraisal and management does not trust the self-appraisal or peer appraisal or subordinate appraisal. they are to a great extent in best position to appraise their own performance. Such a novel method can be useful in other organizational settings too provided the relationships between superiors and subordinates are cordial.template guidelines
Job descriptions are also a useful starting point for (but by no means the full extent of) establishing feedback criteria. A 360 degree appraisal template typically contains these column headings or fields. especially in developed countries. Self If individual understand the objectives they are expected to achieve and the standards by which they are to be evaluated.
360 degree appraisal form design . speed in doing the job and accuracy.
clarification and definitions of ratings system to participants and respondents is crucial.
Skill component/element (eg 'active listening and understanding' [within a 'communications' key skill]. four. and the feedback scoring method. two. or rate out of 5 or 10 . poor. when obviously consistency of interpretation of scoring is important)
360 degree feedback form template example
A typical 360 degree feedback form template would look like this. The number of elements per key skill/capability would vary of course. so if necessary adjust the size of the boxes in the first column accordingly to accommodate more or less elements.big lists and groups are less easy to work with. three. etc .b.c. Break down the key skill if there are more than six elements . reporting. good. The number of elements per key skill varies . especially if analysing or comparing results within a group. creativity and problem solving. and up to six elements.whatever the relevant key skills and capabilities are for the role in question). planning. not good.
question number (purely for reference and ease of analysis) specific feedback question (relating to skill component. or 'generates ideas/options' [within a 'creativity/problem solving' key skill]). for others there could be five or six. which I'd recommend be the maximum.B.•
Key skill/capability type (eg communications. This template allows a mixture of key skills comprising one.for some key skills there could be just one element. See the notes directly above for more explanation about the purpose of each column and heading.N.d or excellent.
. eg does the person take care to listen and understand properly when you/others are speaking to him/her? [for the active listening skill])
tick-box or grade box (ideally a.
key area skill/capability Sk skill/capability question feedback feedback element n number q question score 1 2 3 4 5 6 7 8 9
. etc. position (if applicable) plus l I instructions and guidelines for completion. da feedback respondent name.Feedback Form headings and instructions: appraisee name.
Chapter 4 DATA ANALYSIS
The questionnaire also highlights some suggestions given by the respondents as alternatives which the organization can practice for better working and for improving satisfaction level of the employees. The Questionnaire also aims at finding the level of motivation of the respondent with reference to the performance appraisal exercise i. I prepared two questionnaires – First for the permanent Workers and Staff members and Second for the Managers of Varun Beverages Ltd. For this purpose.e. The basic aim of questionnaire is to find out the mental perspective of the respondent towards the Performance Appraisal exercise followed at Varun Beverages Lt.
Analysis has been made on the data collected by means of Questionnaires. whether the respondent feels motivated after his appraisal and works hard for the same. Staff & Managers. The Questionnaires have been prepared keeping in mind the level and magnitude of activities carried out by the Workers.
It is thus cleared from the above analysis that about 40 % doesn’t know the performance appraisal system at VBL
.ANALYSIS BASED ON QUESTIONNAIRE ( WORKERS & STAFFS) Q1) Are you aware of the Performance Appraisal (PA) Method followed in Varun Beverages Ltd. OF RESPONSE Yes No TOTAL RESPONDANT 24 16 40 PECENTAGE 60% 40% 100% N No
Inference From the sample size of 40 respondents. only 24 are aware about the performance appraisal system while other 16 are unaware about this.? Y Yes NO.
This shows a very much unsatisfaction among employees regarding Performance System at VBL Q3) Are there Biases in the existing P. OF RESPONDENT
HIGHLY MODERATE NOT AT ALL TOTAL
11 19 10 40
28% 47% 25% 100%
H IG H L Y M O D E R A TE N o t a t A ll
Inference It is thus cleared from the above analysis that about are 28 % strongly satisfied.Q2) Are you satisfied with the existing P.A. 47% are moderately satisfies and 25% are unsatisfied by the performance appraisal system at VBL. Method? 75
.A. Method followed in the Company? H Highly M Moderate N Not at all
N No PERCENTAGE 70% 30% 100%
RESPONDENT 28 12 40
Inference About 70% of the employees feel that there are biases in the Performance Appraisal system at VBL.
. This part constitutes a large amount of the total respondents.Y Yes RESPONSE Yes No Total NO.
This shows a improper increment in salary or low satisfaction level among employee regarding their salary increment.Q4) Are you satisfied with the increment in your Salary? Y Yes N No
RESPONSE Yes No Total
NO. 33 unsatisfied from their increment in salary and only 7 are satisfied. OF RESPONDENT 07 33 40
PERCENTAGE 18% 82% 100%
Inference From 40 respondent.
Q5) Did Varun Beverages Ltd.
. provide any training at beginning of your joining? Y Yes RESPONSE Yes No Total N No NO. 29 said that they got training after joining the organization while rest 11 respond to NO. OF RESPONDENT 29 11 40 PERCENTAGE 72% 28% 100%
Inference Among 40 respondents. This shows that Training Program is also not undertaken with much care or there may be some malfunctioning.
Q6) Is proper action taken after the fulfillment of the PA Forms? Y Yes RESPONSE Yes No Total N No NO. responds to NO. OF RESPONDENT 12 28 40 PERCENTAGE 30% 70% 100%
As per the respondents. About 70% of the respondents. which shows a much amount and also some mal-functionings in Performance Appraisal System
. the proper actions are not being carried after the filling of Appraisal Forms.
Q7) Is the PA exercise strictly followed or is just a formality? Strictly followed M Moderate F Formality
RESPONSE Strictly Followed Moderate Formality TOTAL
. OF RESPONDENT 08 20 12 40
PERCENTAGE 12% 50% 30% 100%
Strictly Followed Moderate Formality
Inference The above data shows that very few employee feels that the Performance Appraisal System really works in a proper way and most of were in the view of it as a Formality one and is made on the papers.
Q8) Are you satisfied from the Feedback you get from your Supervisors? Completely RESPONSE Completely Moderate Not at all TOTAL M Moderate NO. OF RESPONDENT 10 15 15 40 N Not at all PERCENTAGE 25% 37% 38% 100%
Completely Moderate not at all
Inference From the above analysis one can find that there not proper discussion is being carried among seniors and the junior employees
OF RESPONDENT 29 11 40
PERCENTAGE 72% 28% 100%
.Q9) If the existing PA Method be changed? Would you readily accept the change? Yes N No
RESPONSE Yes No Total
Among 40 respondents. 29 said to change in existing Performance Appraisal Method and also they will accept the newer method while rest 11 were satisfied to the existing method and are not willing for new method
Q10) After filling PA Forms. are the results discussed between the Seniors & Subordinates ? Y Yes N No
RESPONSE Yes No Total
NO. OF RESPONDENT 28 12 40
PERCENTAGE 70% 30% 100%
Inference About 70% of the employees feel that there are biases in the Performance
ANALYSIS BASED ON QUESTIONNAIRE (MANAGERS) Q1) Are you aware of the Performance Appraisal (PA) Method followed in Varun Beverages Ltd. OF RESPONSE Yes No TOTAL RESPONDANT 35 05 40 PECENTAGE 87% 13% 100% N No
.? Y Yes NO.
35 are aware about the performance appraisal system while other 05 are unaware about this.Yes No
Inference From the sample size of 40 respondents. OF RESPONDANT 02 02 04 02 12
PECENTAGE 5% 5% 10% 5% 30%
. It is thus cleared from the above analysis that about 13 % doesn’t know the performance appraisal system at VBL Q)2 Who Appraises the Leaders/Heads/Managers? Self Peers Sub-ordinates Supervisors Unit Manager Chair Person
RESPONSE Self Peers Subordinates Supervisors Unit Manager
Chair Person Total
Self Peers Subordinates Unit Manager Supervisors Chair Person
Inference This shows that the Managers are Appraised mostly by the Unit Managers & the Chair Person Q3) Is PA at Managerial level seriously undertaken? Y Yes N No
RESPONSE Yes No Total
NO. OF RESPONDENT 07 33 40
PERCENTAGE 18% 82% 100%
Q4) Are you satisfied with the existing P.YES NO
Inference The above analysis shows that the Performance Appraisal is taken under seriously as about 82% respondents have agreed regarding the respective question.A. Method followed in the Company? H Highly M Moderate N Not at all
RESPONSE HIGHLY MODERATE NOT AT ALL
NO. OF RESPONDENT 11 19 10
PERCENTAGE 28% 47% 25%
H IG H L Y M O D E R A TE N o t a t A ll
Inference It is thus cleared from the above analysis that about are 28 % strongly satisfied. This shows a very much unsatisfaction among employees regarding Performance System at VBL
Q5) Are you satisfied with the increment in your Salary? Y Yes N No
RESPONSE Yes No
NO. OF RESPONDENT 33 07
PERCENTAGE 82% 18%
. 47% are moderately satisfies and 25% are unsatisfied by the performance appraisal system at VBL.
OF RESPONDENT 18 10 PERCENTAGE 44 25
. This shows a improper increment in salary or low satisfaction level among employee regarding their salary increment. 33 unsatisfied from their increment in salary and only 7 are satisfied.
Q6) Does the Appraisal System of the company motivates you? Always To a great extent To some extent Not at all RESPONSE Always To a great NO.Total
Inference From 40 respondent.
However.A. Method? Y Yes RESPONSE Yes No NO. most of the Managers are motivated “Always” form the Performance Appraisal method at the organization. OF RESPONDENT 28 12 N No PERCENTAGE 70% 30%
. Q7) Are there Biases in the existing P.Extent To some extent Not at all Total 07 05 40 18 13 100%
Always To Many Extent To Some Extent Not at all
Inference The analysis shows that the Managers are motivated to different levels.
Q8) In your opinion. do Managers requires Management Development Programmes (MDP)? Y Yes N No
NO. This part constitutes a large amount of the total respondents. OF RESPONDENT
Inference About 70% of the employees feel that there are biases in the Performance Appraisal system at VBL.
Yes No Total
33 07 40
82% 18% 100%
Inference From 40 responding Managers. around 33 agreed in the view that the MDP should be given to them. Y Yes RESPONSE N No NO. organized any Training Programmes for its Managers or Department Heads etcs?. OF RESPONDENT PERCENTAGE
. while rest 07 disagreed and doesn’t need the programme
Q9) Has Varun Beverages Ltd.
This shows that Training Program is also not undertaken with much care or there may be some malfunctioning.Yes No Total
29 11 40
72% 28% 100%
Inference Among 40 respondents. 29 said that they got training after joining the organization while rest 11 respond to NO.
Q10) Do you think the Training MDP will affect the performance levels of the Leaders? Highly Moderate N Not at all
many of the respondents were in Moderate view.
. OF RESPONDENT 11 19 10 40
PERCENTAGE 28% 47% 25% 100%
H IG H L Y M O D E R A TE N o t a t A ll
Inference Regarding affect of MDP over Mangers. However. respondent in view of Highly & Not at all are almost the same.RESPONSE HIGHLY MODERATE NOT AT ALL TOTAL
FINDINGS AND RECOMMENDATIONS
Some recommendations are as follows :• Good performer should not only be rewarded by promotion etc. MDPs.but also by appreciation of their performance in public • Worker’s opinion regarding their job should be given more priority.
. The work related benefits like overtime. T&D. production incentives expenses should be provided to the employees • • • There should be proper utilization of existing manpower Employees should be given recognition at proper intervals.RECOMMENDATIONS
• Certain recommendations can be made after interviewing various employees at different levels with the help of my data sheet. participation in decision makings etcs.. Suggestions from the employees should be welcomed with open arms and if found suitable should be implemented • More opportunities should be given to the employees regarding.
Public appreciation of his/her performance may also prove fruitful to this purpose. it was found some employees are satisfied with the company’s appraisal technique whereas some are not. the company should feel more free to work and accomplish the maximum results. Thus. VBL is doing well but a major area for the concern is that the employees feel themselves are not being involved in the decision making activity. This is bringing down the motivation level of the employees. The company should have manageable working hours and equitable pay to ensure employee satisfaction. The company should also reward the efficient employees occasionally to motivate them. In conducting this study. one can say for sure that the company will have a brighter future. If the organization does so. This may bring down the moral of the employees.CONCLUSION
After analysis of the data collected and compiled we can say that.
. Thus. the management should pay heed to the problems faced by the dissatisfied employees and may even implement the suggestions given by them.
. Grade:W W1 W W2 W W3 S S1 S S2 S S3 Accounts Security PMX Maintenance Marketing HR Under 50 years Under 60 years Under 70 years
Current Salary (in Rs):-……………………. First Promotion :-…………………….(Tick mark to which you belong) Under 20 years Under 30 years Under 40 years Deptt :Production Quality Control TPT Designation:-…………………......
Salary (Before 1st Promotion):-…………….......……………………………………………..QUESTIONNAIRE
( For Workers & Staff Members ) Name :..... Experiences(in Years) :-…………..
1) Are you aware of the Performance Appraisal (PA) Method followed in Varun Beverages Ltd.? Y Yes N No
2) Are you satisfied with the existing P.A.A. Method? Y Yes N No
4) Are you satisfied with the increment in your Salary? Y Yes N No
5) Did Varun Beverages Ltd. are the results discussed between the Seniors & Subordinates ?
. Method followed in the Company? H Highly M Moderate N Not at all
3) Are there Biases in the existing P. provide any training at beginning of your joining? Y Yes N No
6) Is proper Training given/recommended in PA Forms? Y Yes N No
7) Is proper action taken after the fulfillment of the PA Forms? Y Yes N No
8) Is the PA exercise strictly followed or is just a formality? S Strictly followed M Moderate F Formality
9) Are you satisfied from the Feedback you get from your Supervisors? Completely M Moderate N Not at all
10) After filling PA Forms.
.(Tick mark to which you belong) Under 20 years Under 30 years Under 40 years Deptt :Production TPT Designation:-…………………. Age:... Experiences(in Years) :-…………. Grade:M M1 M M2 M M3 M M4 M M5 M M6 M M7 M M8 M M9 M M10 Accounts Security PMX HR Marketing Maintenance Under 50 years Under 60 years Under 70 years
Current Salary (in Rs):-…………………....
N No QUESTIONNAIRE (For Managers)
Method followed in the Company? H Highly M Moderate N Not at all
Are you satisfied with the increment in your Salary? Y Yes Always N No Does the Appraisal System of the company motivates you?
. Are you aware of the Performance Appraisal (PA) method followed in Varun Beverages Ltd.? Y Yes How frequently is PA done ? Monthly Quarterly S Semi-Annually Annually Who Appraises the Leaders/Heads/Managers? Self Supervisors Peers S Sub-ordinates Is PA at Managerial level seriously undertaken? Y Yes N No N No
Are you satisfied with the existing P.A.
Salary (Before 1st Promotion):-………….First Promotion
...............A..... Method? Y Yes N No
Which PA Method would you alternatively suggest for the existing one? …………………………………………………………………………… …………………………………………………… Suggestions (if any):-……… …………………………………………………. ……………………………………………………………………………….T To a great extent To some extent N Not at all Are there Biases in the existing P.....
rkjgroup. Aswathapa . Chabra
RESEARH METHODOLOGY Research Methodology .C.com www.com
MARKETING RESEARH Marketing Research .com www.pepsico.com www.com www.pbg.pepsiworld.Rajendra Nargundkar
HUMAN RESOURCE MANAGEMENT Human Resource Management & Personnel Management Human Resource Management .com www.google.R.N.T.K.pepsi.