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A Project Study Report On Training Undertaken at

UNITED SPIRIT LIMITED UDAIPUR “PERFORMANCE APPRAISAL”
Submitted in Partial Fulfillment for The Award of Degree of Master of Business Administration

2010-2011 Submitted by: Manisha Rajpal MBA Semester III Submitted to: Ms. Sakshi Chouhan Assistant Professor

ADVENT INSTITUTE OF MANAGEMENT STUDIES Udaipur

PREFACE

Work experience is an indispensable part of every professional course. Without practical experience one cannot be as qualified potential, capable manager. Hence in partial fulfillment of the MBA degree I undertook the training in "UNITED SPIRIT LIMITED at UDAIPUR" for 15 days. In this report all the suggestions, recommendations, observation and findings are the result of the research done by me on the topic "performance appraisal". My project work is completed under the guidance of Mr. K. S. SINGH. The objective of this research was to compile the information about appraisal in USL. For completion of research I collected the information from the prospective employees of the company. Performance appraisal helps in motivating the employees. It also helps and encourages them for doing better work in the future. So, the employee can work with more interest and minimize the shortcomings & become more efficient and effective in their job. It also helps them to gain a huge confidence towards the work given by positive or highly positive appraisal of employee.

ACKNOWLEDGEMENT

I express my sincere thanks to Dr. N.S Rao, Director, Advent Institute of Management Studies and my project guide Dr. Kadambari Jain, Associate Professor, Deptt AIMST, for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project.

I would also like to thank the supporting staff of Human Resource Management Department, for their help and cooperation throughout our project.

(Signature of the student) Manisha Rajpal

EXECUTIVE SUMMARY
I had completed my training at UNITED SPIRIT LIMITED, Udaipur. It was very pleasant feeling while I having my training there. My entering in the organization was like steeping into an entirely new world. At first everything seems strange but as a time passes I feel more comfortable. The very first day I met my trainer Mr. R. S. SINGH and he told about the organization like what type of organization it is, what are its main products. They also told me to get more information about the company. Then after they give me different type of task to know better about my topic i.e performance appraisal. When all basic work of report was completed I started the main research process and prepared questionnaire. The questionnaire contains the all those questions from which I came to know the employees view and was helpful in my further research. My project guide also support and help me time to time or as I required. I came to the last stage of the report which is analyzing the data and preparing interpretation, suggestions & conclusion. After this I completed all the formal information required and submitted the report as a hard copy.

I am very thankful to Mr. R. K. Singh for giving me the opportunity to work as a trainee in USL. I sincerely believe that there is no better place to learn the practical experience of management studies than industry itself.

CONTENTS
1. 2. 3. Introduction to the Industry Introduction to the Organization Research Methodology 3.1. Title of the Study 3.2. Duration of the Project 3.3. Objective of Study 3.4. Type of Research 3.5. Sample Size & Method Of Selecting Sample 3.6. Scope of Study 3.7. Limitation of Study 4. 5. 6. 7. 8. 9. 10. Facts and Findings Analysis and Interpretation SWOT Analysis Conclusion Suggestions Annexure Bibliography

CHAPTER-1 INTRODUCTION OF THE INDUSTRY .

and most popular of all. instead of from rye or barley. Distillers there prided themselves on the manufacture of bourbon. Kentucky soon became the center of whiskey production. The temperance movement. Distillation was decentralized in rural settings. Although colonial authorities at times attempted to control consumption. Furthermore. which emerged in the 1820s. targeted spirits. brandy. rum. tastes. The Nineteenth Century: Domination and the Onset of Decline In the late 1700s and early 1800s whiskey replaced rum as the spirited beverage of choice among Americans.SPIRITS INDUSTRY:The fermenting and distilling of fruits and grains into alcoholic beverages was a practice that the first American settlers brought with them to the new colonies. Despite great variations in the natural fruits and grains used for raw material and in production techniques. In the colonial period. Americans made several kinds of beverages. which differed from other whiskey because it was made from corn. the liquors of the world are all based on the discovery of distillation more than 2. or corn mixed with other grains. Historically. which was distilled from grain. more simply known as liquor.000 years ago. Despite its popularity. including whiskey. was not only cheaper— especially when turbulent foreign relations made it more expensive and difficult to import molasses—but was also a homegrown product and therefore a symbol of America's newly won independence. it was a specialty of Scotch-Irish immigrants who settled in western Pennsylvania and then the Kentucky region. cider. distilled spirits were widely accepted and enjoyed. not beer or wine. Distilled spirits. Whiskey. reflect the customs. which was produced mainly in Bourbon County. Kentucky. This explains why . the distinctive taste of bourbon. so mass production was not characteristic of the spirits industry. Although whiskey was made in small distilleries across the new nation. Rum was manufactured from imported molasses. derived from the charred wooden barrels in which it matured. whiskey was at the same time often condemned. Americans have viewed beer and wine as benign in comparison with whiskey and other spirits. and even agriculture of many lands and peoples. which they have regarded as intoxicating and potentially harmful. Considering the high per capita consumption during much of the nineteenth century—nearly five gallons per person in the early decades—whiskey can be considered America's national beverage during the 1800s.

farmer-distillers in Pennsylvania Objected to the high tax on whiskey and staged a violent revolt. In the Whiskey Rebellion of 1794. In the second half of the nineteenth century. which led to price wars and concentration. had come to rival Kentucky's whiskey industry. Although the rebellion was quelled. protest was effective enough so that in 1802 the federal government acknowledged that the tax was uncollectable and repealed it. A small number of huge distilleries in Peoria. Illinois. Whiskey distillers have often objected to the high tax on their product. the whiskey industry experienced overproduction and intense competition. Except for a brief period. The Peoria-based Whiskey Trust tried to control production and raise prices but without CHAPTER-2 INTRODUCTION TO THE ORGANIZATION .taxes on spirits have always been higher than on other alcoholic beverages. the federal tax on whiskey was not reinstituted until the Civil War.

It has a sizeable presence in India with distilleries and sales offices all across the country. USL has established a robust distribution network covering the whole country. to deliver its products to customers located anywhere in India.UNITED SPIRITS LIMITED United Spirits Limited (USL) is the largest spirits company in India and second largest spirit USL has a global footprint with exports to over 37 countries. and a committed team of over 7500 people dedicated to the fulfillment of the company's mission. In addition. MISSION:- . It has established manufacturing and bottling plants in every state of India.

Caesar Brandy. Maharashtra and Pondicherry. In the same period. USL had rolled out its new Whisky brand. Australia and French Cos. Rajasthan. Red Riband Vodka. . the McDowell Alcobev becomes the wholly owned subsidiary of the company. West Bengal. Gilbey's Green Label is a popular brand of whisky in the regular segment with sales of over 2 million cases. Old Cask Rum. Madhya Pradesh. Andhra Pradesh. Black Dog Whisky. Celebration XXX Rum and Bosca Wine.each held by the other shareholders to the company. Indian made foreign liquor and spirits. McDowell International Brands Limited became a wholly owned subsidiary consequent upon the transfer of beneficial interests in the balance 60 Equity Shares of Rs. the Triumph Distilleries & Vinters becomes a subsidiary of USL during the year 2002 itself. The Company acquired the Indian and Middle East businesses of Gilbeys from UDV through its ultimate subsidiary Triumph Distillers & Vintners Private Limited in December of the year 2002. the company name was changed from McDowell Sprits Limited to McDowell & Company Limited. purchase and sell Indian made foreign liquor including brand franchise. Goa. As at 1st April 2000. Phipson Distilley becomes a wholly owned subsidiary of the company and also the company acquired 85% equity stake in Triumph Distilleries & Vinters Pvt Ltd. During year. subsequently. Bagpiper. Bihar. Karnataka. driven by highly motivated employees and supported by best-inclass processes and continued innovations. Some of the brand names include Romanov. country liquor. the company made alliances with US.10/. Uttar Pradesh. COMPANY PROFILE:United Spirits Limited (USL) began its story in the year 1999 as McDowell Sprits Limited. The Company operates primarily in the Indian Made Foreign Liquor (IMFL) space with clearly chalked out plans for the Wine and Bottled In Origin (BIO) sectors. The Group's products include beer. United Spirits is and will continue to be responsible towards its stakeholders and the society. USL is to manufacture. It was seen as a useful addition to your Company's portfolio brands as it enjoyed certain price advantages in the whisky category. Its plants are located at Kerala. During the year 2002. It is the company engaging in manufacturing of beverages. Blue Riband Gin. Single Malt Whisky."To be the most admired global leader in the spirits industry by creating unique high-quality brands for consumers. for bulk wine import. Signature. 'Derby Special Whisky' in Andhra Pradesh Market in the period of 2003. wine.

52 year-old Dr. the amalgamation taking effect from April 1st 2005.001.518 Equity Shares constituting 25% of the paid up equity share capital of Shaw Wallace & Company Limited.1 Reserve Whisky Smart Pouch bagged the Silver Award for Packaging Excellence 2005. S. United Spirits Limited acquired 12. Limited became an ultimate subsidiary of the Company consequent upon it becoming a subsidiary of Phipson Distillery Limited. Gupte Vice Chairman Mr.  Mr. Pursuant to the open offer. aged 68 years. 1997 at Rs.Company has gone live with SAP R/3 at all locations in South India during the year 2003 along with the reorganizations. 260/. . McDowell's No.per share. Vijay Mallya Chairman Dr. Subhash Raghunath Gupte . The Investment business of the Company was demerged into McDowell India Spirits Limited (since renamed as McDowell Holdings Limited). Mallya took over the reins of the United Breweries Group in 1983. is a Chartered Accountant. the company had acquired 100% stake in Whyte & Mackay. 2008. R. Equity shareholders & creditors of the company approved the Scheme of Amalgamation ('the Scheme') of Zelinka with the Company as on April 11. Mr. In order to expand its Scotch whisky to a larger consumer segment and the middle-income group in particular. USL's wholly owned subsidiary. Whyte & Mackay is leading distiller of Scotch whisky. USL made an open offer to the shareholders of Shaw Wallace & Company Limited pursuant to the Regulations 10 & 12 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations. Gupte has worked with Caltex India Limited. Vijay Mallya is the face of the $2 billion UB Group. BOARD OF DIRECTOR: Dr. the company launched a low-priced variant of its Black Dog Scotch May of the year 2007.

Sreedhara Menon Mr. is an Industrialist and has wide experience in marketing. M. Rekhi is the President and Managing Director of United Spirits Limited. Doraiswamy Iyengar.  Mr. holding a B.Khanna Mr. Sreedhara Menon. is currently Chairman of the Board and Strategic Advisor of VITEOS Capital Market Services Limited.M. M. Mr.S.  Mr.K. aged 70 years. Sudhindar Krishan Khanna aged 54. .  Mr. is a qualified Chartered Accountant. B.L. Vijay K. Aged 66 Years is a Graduate in Commerce and a Chartered Accountant.D.M. degree. Rekhi President and Managing Director Mr.Iyengar Mr. He ranked 3rd in the UK in the Intermediate Examination of the Institute of Chartered Accountants in England. India's largest and the world's second largest.R. aged 75 years. Vijay K. He is also a post Graduate in Law.Labroo Mr.  Mr. R.B. finance and corporate governance. Labroo.

France and also ramping up export in Australia. United Breweries’ Shotz. Vittal Mallya became first Indian Director of UB group in 1947. In 1983. Royal challenge.3 lakh cases of RTD sold.UB GROUP:The UB (United Breweries) Group was founded by Thomas Leishman in 1915. UB group has following divisions:        Beverage Alcohol Pharmaceuticals Media International Trading Fertilizer Research and Development Aviation HOW MERGER PROCEED :Shaw Wallace controls 10% of the market of the country liquor in States where it operates. In October 2004. In 2003-2004 3. Shaw Wallace was present only in Uttar Predesh. Company’s beer sales share in country also increased from 33% in the previous year to 35% in the year 20032004. Komal C Wazir. United Breweries was in the 1st place with 43% market share in the breweries market. Bacardi’s Breezer. son of Vittal Mallya. In 2004. become chairman of the group. Company would try to enter Maharashtra. High price seemed to be reason of less selling. He handled the group with more professional management. Ready to Drink (RTD) is not selling well in India. Vijay Mallya. Group divested paint business in 1996. Shaw Wallace’s Vebe were hardly selling in the market. a . As per Ms. Shaw Wallace Breweries Limited (SWBL) was a joint venture between Shaw Wallace and South African Breweries was having market share of 36% in India. In India. group acquired Berger Paints. Shaw Wallace announced that they were eyeing on the export market Australia. Karnataka and Rajasthan. It started its business with manufacturing of beer. In 1988. Balarampur Chini’s Xotica. RTD was introduced in 2002.

Shaw Wallace said they were considering legal option against the UB group bid but it is an open offer and legal options are limited. 1330 Crore ($300 m) for a stake of 54. Vijay Mallya announced that UB group had closed the deal with Chhabria family owned Jumbo World Holdings Ltd (JHWL) for Rs.1200 Crore which is 120% premium over market capitalization of last 12 months. Mallya also said that none of his company has acquired any stake in Chhabria ny McDowell & Co.2% premium over the last closed price. Mallya said the every year SWC and UB spend Rs 200 Crore each for just fighting with each other.55. after the out of court deal with Kishore Chhabria. Industry estimate for valuation is Rs. Mr. Majority control of Narmada Gelatine Ltd will be divested to Jumbo affiliate as soon as practicable to maintain Jumbo Management Team. 1251 Crore. 80 Crore for a million cases. 250. This offer valued Shaw Wallace Rs. On February 23. Later SWC changed it plan and invited bid for 55% stake in the holding company.54% share of SWC. 2005. UB group also in the process of Herbertsons Ltd. This will now be added to the bottom line. March 31. Vidya Chhabria of Shaw Wallace Company (SWC). LIC chairman LN Bhardwaj told that they were considering the offer. The deal is evaluated as Rs 325 per share. the maker of Bagpiper whisky. This also excludes bear joint venture of SWC. He also indicated a breakdown of talks between UB group and Ms. Vijay Mallya announced 25% open offer for Shaw Wallace Rs. Mr. had rose 10% to Rs. This is an 8. When asked about the over valuation of Rs1300 Crore for SWC Mr. There would be two companies United Breweries and SWC still FY 2006 and then they would be merged to United Sprit. 2005. SWC announced that they are open to any fair price for selling off. The UB group had bid Rs.UB group was the highest bidder for sprit division of SWC which was put in the block. Mallya also clarified that he was only interested in sprit business and no other business. UB group also said that open offer price has been revised to Rs.172. Earlier they hold the selloff of 55% stake of Chhabria family. REGULATORY & LEGAL ISSUES:- .260 per share.

Competition Committee of India (CCI) might investigate any deal (involving two Indian companies) in which exceeds Rs. Engineering.312 Crore for acquisition of 25% share through open offer. 300 Crore. Gelatines. Russia. A huge gap between other player and the group is also a matter of concern. When two Indian companies involved the threshold limit is Rs 4000 Crore for assets and Rs. Mohan Meakins and Seagram having market share of 6-7 million cases. Post open offer UB group has 75% share. Freight Forwarding and Electronics. Its business is established across Hong Kong. UB and SWC will have together 55 million case capacity i. Jumbo Group is an international business conglomerate based in the United Arab Emirates. SHAW WALLACE COMPANY:Shaw Wallace is started in 1886 in Calcutta. In 1987 it came under Jumbo Group. Vietnam.1000 Crore or where the combines’ asset exceeds Rs. South Africa and India.e. 12000 Crore for revenues. United Kingdom. South Korea. more that 50%. lead by Mr. UB-SWC deal qualified for both the counts. M R Chhabria. UB group has paid Rs 1545 Crore including Rs. Sri Lanka. Singapore. Tyres. Other players like Radico Khaitan. Agrichem. HOW THE DEAL WAS FINANCED:- The deal was financed by borrowing $300 million from ICICI bank win equal proportion of foreign and domestic currency. India market capacity is 110 million cases of Indian Made Foreign Liquor (IMFL). The group is a diversified group with business includes beverages. Japan. Shaw Wallace comprises of following divisions:     Liquor Division Beer Division Wine Division International Business . Tanneries.

Ms. Falcon Tyres. The $2 billion Jumbo group’s Indian operations include flagship Shaw Wallace Co Ltd. M. Hindustan DorrOliver. Dunlop India Ltd. 1. Shaw Wallace Financial Services and Shaw Wallace Breweries limited merged. Baramati Grape Industries Ltd . Shaw Wallace Distilleries Ltd 6. Chhabria’s daughter Komal Chhapria became executive director of Indian flagship of Shaw Wallace & Co (SWC). Mather & Platt. Phipson Distillery Ltd 2. It was declared in 59th AGM of Shaw Wallace in September 2005. Increased bargaining power with the suppliers like bottles Organizational savings arising from consolidation through elimination of multiple offices and duplication of manpower  Reduced promotion spent and improved market realization POST MERGER SITUATION:In August 2006. United Spirits Ltd 3. Gordon Woodroffe and New Video Ltd. Vidya Chhabria became chairperson of the group. SYNERGY IN MERGED ENTITY: Increased bargain power with monopolistic customer (Government share of market is 65% and Private market share of about 16%)    Economics of scale of distribution system. Triumph Distillers and Vintners Pvt Ltd 5. Chhabria in April 2002. It was also declared that combined entry had 130 brands out of which 35 brand fetch 90% of the profit. McDowell announced that following eight companies were amalgamated into one entity of McDowell India Sprits Ltd and later named as United Sprit Ltd. Herbertsons Ltd 4.R. Traditional Business After demise of Mr.

Long standing legal battle of Shaw Wallace ended on October 1." he said. adding the firm has done "extremely well despite the economic slowdown". 464 Crore. adding the company has set its eyes on the number one spot. United Spirits Ltd (USL) in the last 25 years sold over 740 million cases of spirits products making a total of 26 billion bottles of alcohol beverages of different pack sizes. REALIZATION OF INTENDED OBJECT:UB Group becomes the third largest sprit company in the world. he added.44 Crore. 2007. United Distillers India Ltd 8. Mallya said it took USL 12 years to cross the first 100 million cases. In the process. Shaw Wallace passed board approved merging of the company with United Sprit Ltd. Britain’s Diageo Plc is in the first place and France’s Pernod Ricard PA (after buying Britain’s Allied Domecq) is in the second position. another five years for the next 100 million cases and four years for the third 100 million cases. Mallya told reporters here. "We are certain that our additional sales in the next financial year will take us to him number one position globally. which is only 7.5% of the original demand i.e. "We are now clearly the second largest spirits company in the world and we have outperformed our global competitors." he said.7. This had cleared the barrier of legal merger of Shaw Wallace into UB Group. UB GROUP IS WORLD’S LARGEST SECOND LIQUID MAKER:Bangalore: Vijay Mallya-led UB Group said it has become the world's s second largest liquor maker after Diageo with sales of over 100 million cases in the last 12 months and is certain to be the number one by next fiscal. McDowell International Brands Ltd. . Rs. It had been settled for mere Rs 34. group firm United Spirits has overtaken France's Pernod Ricard. Shaw Wallace shareholder got four share of United Sprit for every 17 share they hold.

Management by objectives 2). Behaviourally anchored rating scales TRADITIONAL METHOD: Unstructured appraisal The appraiser is required to write down his impression about the person being appraised in an unstructured way. In this way. The difficulty of this system is that the rate is asked to consider a while person.  Ranking method Ranking is a simple process of placing employees in a rank according to their job performance. Under this. This system is highly subjective and has got its merit in its simplicity and is still in especially in the small firms. the best is placed first in the rank and the poorest occupies the last rank.Modern method 1) Unstructured appraisal 2) Employee ranking 3) Forced distribution 4) Graphic rating scales 5) Check lists 6) Critical incidents 7) Field review 1). Paired comparison is an improvement over simple ranking. every employees in rater is asked to consider a while person. . it permits comparison of all employees in any single rating group regardless of the type of work.

The expert questions the supervisor to obtain all the pertinent information on each employee and tasks notes in his note book. These are of two types: characteristics.  Graphic rating scales Under this method. This method requires every supervisor to record all such significant incidents in each employee’s behaviours.  Field review method The supervisors are interviewed by an expert from the personnel department. Statements are chosen of both the sides. every employee in a job family is compared with every other employee to determine which the better worker is. various statements are prepared in such a manner that they describe various types and levels of behaviours for a particular job. such as initiative and dependability. It represents an exceptional behaviour of an employee at work. The interviewer questions the supervisor . and contributions.Paired comparison is an improvement over simple ranking. such as quality of work. These are recorded in a specially designed notebook which contains categories or characteristics under which various behaviours can be recorded.  Forced choiceThe rate is forced to choose between descriptive statements of seemingly equal worth describing the person in question. scales are established for a number of specific factors and general definitions appear at points along the scales.  Critical incident method A critical incident means a significant act by an employee exceeding or failing any of the requirements of this job. Under this. The selection of factors to be measured on the graphic rating scales is an important point under this system. Each statement is attached with a scale value.  Check list It also consists of two techniques:  Weighted check listUnder this method.( favourable as well as unfavourable).

. . the essential features of this approach are mutual establishment of job goals. Goal setting approach or ―management by objective (MBO)‖ is the same as behavioural approach to subordinate appraisal. Criticism of traditional method  Halo error  Central tendency  Leniency or strictness  Recent behaviour bias  Miscellaneous biases MODERN APPRAISAL METHOD:There are two methods of performance appraisal which are used by the modern concern. actually called ―work planning and review‖ in the case of general electric co.about the requirements of each job in his unit and about the performance of each man in his job.S. The first is management by objectives which represents result-oriented appraisal. Under this approach. 1. an employee is not appraised by his recognizable traits. Thus.A. The second is behaviorally-anchored rating scale which is based on rating the behavior of the subordinate. but by his performance with respect to the agreed goals or objectives. U. Management by objective (MBO) It was PETER DRUCKER who proposed goal setting approach to performance appraisal which he called ―management by objective and self-control‖.

This approach can be applied with great success if the performance appraisal program consists of the following elements:    Good job descriptions are available to help setting of gaol for different positions. According to GORGE S. Superior has trust in the subordinates to establish reasonable goals. define each individual’s major areas of responsibility in terms of results expected of him. New inputs . and use these measures as guides for operating the unit and assessing the contribution of each of its members. THE PROCESS OF MBO Organization structure (Revision) Superior sets goals for subordinate. Organization goals Subordinate sets the goals for himself and standard for the job. There is emphasis on problem solving rather than critism of the performance of the subordinates. ORDIORNE. process whereby the superior and subordinate managers of an organization jointly identify its common goals. Common goals Review of organization performance Feedback or interim result.

Behaviorally Anchored Rating Scales:Behaviorally anchored rating scales (BARS) are designed to identify the critical areas of performance for a job. Behaviorally anchored rating scales (BARS) approach combines elements of the traditional rating scales and critical incident method. and to describe the more effective and less effective job behavior for getting result. Using BARS.are describe more objectively.2. This method employs individuals who are familiar with a particular job to identify its major components. Various steps involved in developing BARS are as follows: Identification of critical incidents or behaviours Identification of performance dimensions Reclassification of critical behaviours Assigning scale values to the critical behaviours Development of bar instrument . job behaviors from critical incidentseffective and ineffective behaviors.

subordinate and peers play an important role in the appraisal structured questionnaires are used to collect responses about the employees from his superiors. Besides the employees himself . peers and subordinates . superior. alongside and below him. 360 º Degree Appraisals & Feedback The 360º degree appraisal involves rating of an employee or manager by everyone above.3). It revels strengths and weakness in their working styles. Merits of 360 º Degree appraisal  The 360º degree appraisal leads to greater self – awareness of the appraised.several parameters relating to performance and behaviors are used in the questionnaires. .

 Inflexible managers are forced to initiate self changes. The gap between self-assessment and the views of one’s colleagues or peer group in reduced.APPRAISAL Appraisal might be more useful to a subordinate and lead in the long term to greater efficiency if it is conduct by that subordinate himself .  The candidates being appraised may not accept negative feedback from the subordinates and peers.  Facts about organizational culture and ambience are brought to light by the multiple appraisals.  SELF. perception of key objective. skills and recently acquired experiences.  The subordinate and peers might not be fully competent in appraisal. He might feel humiliated. They identify their own strength and account for their failures and weakness suggesting ways in which the firms might better use their talents.  Linking rewards to finding less than 360 degree appraisal can prove to be unfair.subordinates states how they regard their performance . the adequacy of the training they have received .  Responses from colleagues often tend to be biased. Limitations of 360 º degree appraisal  The 360 degree appraisal system ignores performance in terms of goals. future appraisal.  It facilitates empowerment of subordinate who get a say in the appraisal of their bosses. . effect of alteration in job content.

To advise the employees about what they must do to improve their career prospects. DESIGNING AN APPRAISAL PROGRAM Determining the objectives  Establishing standards of performance Who is to do the appraisal? Frequency of appraisal . Potential appraisal can serve the following purpose:     To advise the employees about their future prospects. To help the organization chalk out a suitable succession plan. To update training efforts from time to time. POTENTIAL APPRAISAL The main objective of potential appraisal is to identify the potential of a given employee to occupy higher positions in the organizational hierarchy and undertake higher responsibilities.

A welladjusted person is less subject to projecting himself into others than a poorly adjusted person and therefore.  Frequency of the appraisal:- .  Establishing standards of performance:An approach that is more preferable is to establish in writing definite standard of accomplishment which the employee can reasonably be expected to meet.Designing of forms  Determining the objectives:The objective of the appraisal program may be either to appraise the actual performance of individuals on their present jobs or to determine the potential of individuals to do higher jobs or both. he is able to judge them better. Whosoever the appraiser may be. Such a method will make it possible for both supervisor and his subordinate to reach agreement on just what is expected in terms of performance. He is the most familiar with the employee’s work and is in contact with him and so he is considered to be able to appraise him well.  Who is to do the appraisal? The appraiser is the immediate superior of the man to be appraised. the subjectivity invariably steps in.

So. mechanical. The forms should be related to job families such as clerical. appraisal is helpful in talking suitable steps for employee development and minimizes the shortcomings. In the organization performance appraisal program is conducted to appraise the employee work and tasks.  This report is also divided into 5 parts:- . This process is done through filled the appraisal from by executive.The frequency of appraisals differs from organization and with the nature of duties performed. All require a different evolution form. sales. There are spot appraisals. In USL performance appraisal program is conducted only for executives. technical and supervisory.  PROCESS OF PERFOMANCE APPRAISAL  The very first step of this process is the filling the appraisal from by executivesThe performance appraisal report or form is given to employees to fill the information where it is asked. quarterly. APPRAISAL IN USL USL is one of the leading liquor companies in the world.  Designing of forms:This is an important step in performance appraisal to design the rating forms to be utilized in the program. Performance appraisal is the method by which one can evaluate or judge the performance of employee and after that appraiser can report correct judgment. the yearly performance of the executive is evaluated. monthly. six monthly or yearly appraisals. But most of the organizations conduct yearly or half yearly appraisals. This process is conduct annually so.

The question is like I. good. poor. very good. Firstly this part filled by reporting officers and he rate the employee from 1 to 5 rating scale. In this review officer review the whole form which is filled by reporting officer and check the rating is fair enough or not.  3rd part.This is known as development and review. Name of the employee Date of birth Present pay scale Designation  2nd part-This part is reseeding or need the self appraisal. IV. In this the executive rate himself and give the information or the point of view of him that what he realized or how he rate himself. If both reporting and . if any addition is required or review officer think the rating is not correct than he also rate the executives at the same type of rating scale . This will also filled by the employee himself.This part known as performance appraisal.  5th part-In this part overall assessment is made that the executive is work is executive is work is excellent. Mainly it requires it the basic information about the executive. This contains 11 point and on the basis of that points reporting officers & reviewing officer rate the executive. Where he stand in him own point of view. This scale means Excellent 1  Very good 2 good 3 average 4 poor 5 4th part. III.This part of the from contain personal data which has to be filled. 1st part. II. This session is filled by executive himself/herself. What shortcomings are given by reporting officers for particular employee is reviewed by reviewing officer. average.

 After the all the process is done the last step is taken that what are the benefits are given to executives after the appraisal or if any poor performer is there what are the step would be taken for their improvement. CHAPTER-3 Research Methodology .reviewing officer are satisfied than the report is given to the authority which further continue the process.

collecting. To test a hypothesis of casual relationship between variables. formulating hypothesis or suggested solutions.INTRODUCTION OF RESEARCH:According to Clifford wood “Research comprises defining & redefining problems. To portray accurately the characteristics of a particular individual. OBJECTIVES OF RESEARCH:    To gain familiarity with a phenomenon or to achieve new insights into it. organizing & evaluating data. . To determine the frequency with which something occurs or with which it is associated with something else. making deductions &reaching conclusions.& at least carefully testing the conclusion to determine whether they fit the formulating hypothesis‖. situation or a group.

Desire to get respectability. Researchers not only need to know how to develop certain indices or a tests. . It may be understood as a science of studying how research is done scientifically. the median or the standard deviation or chi-square. Desire to be of service of society.MOTIVATIONS IN RESEARCH:     Desire to get a research degree along with its consequential benefits. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind them. Desire to face the challenge in solving the unsolved problems. the mode. RESEARCH METHODOLOGY:Research methodology is a way to systematically solve the problem. but they also need to know which of this methods are relevant and which are not and what would they mean and indicate and why talk of research methodology we not only talk of the research methods but also consider the logic behind the method we use in the context of our research and explain why we are using a particular method. Desire to get intellectual joy of doing some creative work. how to calculate the mean. how to apply the particular research techniques.

RESEARCH PROCESS:Define research problem Review concepts and theories. Review previous research findings. Formulate hypothesis Design (including sample design F=Feed back FF= Collect data FF .

What are the main skills required in an individual employee.3. To suggest new ideas to enhance employees ability & interest.2 DURATION OF PROJECT:The duration of project is 45 days.3       OBJECTIVE OF STUDY:- To get to know that what type of benefits are given to employees.1 TITLE OF STUDY:The topic of research is‖ A STUDY ON PERFORMANCE APPRAISAL AT USL‖. To create familiar environment in organization for all level of employees. Are all employees are satisfied by their working area & condition. 3. 3. . To suggest new methods of performance appraisal in USL.

3.4 TYPES OF RESEARCH:- Descriptive Research Analytical Research Applied Research Fundamental Research Research Types Quantitative Research .

the researcher must be able to define clearly.DESCRIPTIVE RESEARCH DESIGN:- Descriptive research designs is a particular individual. what he want to measure and must find adequate methods for measuring it along with a clear cut definition of "population" he wants to study The design in such studies must be rigid and not flexible and must focus attention on the following: a) Formulating the objective of the study (what the study is about and why is it being made?) b) Designing the methods of data collection (what techniques of gathering data will be adopted?) c) Selection the sampling (how much material will be needed?) d) Collection the data (where can the required data be found and with what time period should the data be related?) . or of a group. In descriptive research.

-- The study of the topic "performance appraisal" is seriously made by me and I tried my best to minimize the errors in the report.5 SAMPLE SIZE METHOD OF SELECTING SAMPLES:Sample size for the research was 22. 3. Due to large organization and lees time it was not possible to collect information from each & every employee. primary research method was taken into consideration. But due to some limitations errors are made. Data collection: Primary data  Secondary data Primary data is collected from 100 customers who were asked to fill the questionnaire. Taking into consideration the work environment of United Spirit Limited. 3. Many . f) Reporting the findings. Secondary data is also collected from company’s website. Many employees did not give their proper response and some was not interested in fill questionnaire due to work pressure. The sample was collected in the ranks of Managers and Assistant Managers. Only 22 executives and workmen are involved in the data collection. 3.7 LIMITATION OF STUDY :-. The research comprises of the view of the employees and executives of USL. these limitations are as follows: There was very less time period for preparing project report and most of the time is spend in distribution and collection of data.e) Processing and analyzing the data. magazine and Journals.6 SCOPE OF STUDY :  The research pertains to the study of theoretical and practical aspects of training.

The respondents did not give their views for all questions they did not fill whole questionnaire. The study was restricted to the USL.employees were not aware from the method and process of performance appraisal adopted by company. Udaipur only the whole process was lots of time consuming. CHAPTER-4 FACTS AND FINDINGS .

9%employees are said that performance appraisal is done in a 6 months. 14% said that to identify the weakness of the employees. 45% employees said that performance appraisal is conducted to assess the performance of the employees. Should be followed. 5. 2. But 91% of employees said that appraisal is done in a year so. and 18% employees said that behaviour is the basis of evaluation. and the least 5% employees favour the other method like performance & task achievement 3. So. mostly a one year appraisal is done in united spirit ltd.e. 4. . 36% employees are said that performance appraisal is done by balance scorecard method and18% of employees are said that MBO method is followed in organization and rest 46% employees are said that other method i. 27% are agreed with adaptability of organization. 41% employees are agreed that the method which is adopted by organization for appraisal is acceptable. 50% employee’s opinion is that an individual is evaluated on the basis of technical skills. FACTS AND FINDINGS:1. 27% employees are said that the method is more than .e.50%employees said that 360 º appraisals are done for performance appraisal and 50% said that 180º appraisal is used. appraisal from and annual report. 6. in the organization both 360º & 180º appraisal is done. 41% are said that to build in strength appraisal program is conducted and the least employees i.

41% employees are agreed that the appraisal program is effective for them. 14.e. appraiser and appraise. in United Spirit ltd most employees are satisfied with appraisal program and in their opinion performance appraisal is effective. 8. And rest 32% employees want more expansion in their role in their functional area. 65% employees are said that they are satisfied by their work job and 36% are not satisfied by work job. Hence in United Spirit ltd promotion is a key benefit that is given to employees after their appraisal. 14% get award & achievement as annual benefit and the least 5% employees are managing poor performance and get opportunities for more improvements. 75% are wanted some training and development program and rests 25% are don’t want any training program. 13. 9. 10. 36% employees are only motivated by appraisal for future aspect. 41% employees are highly motivated through appraisal program. . 41% employees are said that CARES policy is consistent within a work group.36% said that performance appraisal program is more effective for employees. 45% said that appraisal program conducted for senior managers. 18% employees are partially accepting that method and 14% employees said that method is significantly more than acceptable. 27% or %23% said it is conducted for assistant manager or managers respectively and the rest 5% said appraisal is done also for workmen. 45% employees get promotion as a benefit. so.32% said that CARES is acceptable to both the parties i. 12. 68% employees don’t want any expansion in their role.acceptable. it is clear that the appraisal program adopted by United Spirit ltd is significant for most of employees ante them.22% are said CARES is fair for all employees and only 5% said CARES is also consistent for across the company. 18% are less motivated from appraisal program and only 5% employees are not motivated through appraisal program. So.18% are with the opinion that appraisal program is less effective and only 5% think that appraisal is not effective. 18% of employees get award as well as increments as benefit. 11. 7.

CHAPTER-5 DATA ANALYSIS AND INTERPRETATION Q. OF .NO OPTION % NO.1 The performance appraisal method followed in the Organization is:- TABLE S.

most employees in United Spirit ltd. And 46% the most of employees are said that other method i. are appraised through appraisal form. So. appraisal from and annual report.EMPLOYEES A Balanced scorecard 36% method 8 B C TOTAL MBO Any other method 18% 46% 4 10 22 RESPONSE 36% 46% A B C 18% 36% employees are said that performance appraisal is done by balance scorecard method.e. 19% of employees are said that MBO method is followed in organization. Q.2 An individual employee is evaluated on the basis of :- TABLE .

OF EMPLOYEES A B C Technical skills Behavior 50% 18% 11 4 6 Adaptability in the 27% organization D TOTAL Any other 5% 1 22 RESPONSE 5% 27% 50% A B C D 18% 50% employee’s opinion is that an individual is evaluated on the basis of technical skills. OPTION % NO. 27% are agreed with adaptability of organization.3 The employee is evaluated on the basis of :- TABLE .S. 18% employees said that behavior is the basis of evaluation. And the least 5% employees favor the other method like performance & task achievement. Q. So in United Spirit ltd technical skill is essential for the job.NO.

13 Is performance appraisal made for all level of the employees in the organization? . in the organization both 360º & 180º appraisal is done. EMPLOYEES OF A B TOTAL 360ºfeedback 180ºfeedback 50% 50% 11 11 22 RESPONSE A 50% 50% B 50%employees said that 360 º appraisals is done for performance appraisal and 50% said that 180º appraisal is used.NO.S. Q. So. OPTION % NO.

OF EMPLOYEES A B C D TOTAL Senior manager Manager Assistant manager workmen 45% 23% 27% 5% 10 5 6 1 22 ANALYSIS CHART RESPONSE 5% 27% 45% A B C D 23% 45% said that appraisal program conducted for senior managers.NO. OPTION % NO. . 27% or %23% said it is conducted for assistant manager or managers respectively.TABLE S. And 5% said appraisal is done also for workmen.

CHAPTER-6 SWOT ANALYSIS .

Changing societal attitude. Long development cycles. Aggressive advertising. Less focus on the SBU’s. Company is the market leader. Expensive brands. Use of E-Commerce in same SBU’s. .  Consumer brand. Maintenance. Cloning of successful brands. SWOT ANALYSIS Strength:       It has a strong brand image. Increasing buy power. Weakness:       High reliance on United Breweries. Global presence. Quality and innovation. Opportunity:  Demographic changes. Government regulations. Relatively static market growth. Threats:    New competition. Ability to manage scale up. Extensive product portfolio.

 Alternatives drinks and health conscious customers. Stiff competition to products. CHAPTER-7 CONCLUSION .

The all over study conclude that performance appraisal is most suitable and best method for motivate the employee. Employees of USL are also satisfied by appraisal method. . As requirement of modern era new technology is used for better results in appraisal.CONCLUSION:The method adopted in USL for performance appraisal is god and fair enough for evaluating the performance of the employees.

CHAPTER-8 SUGGESTIONS .

increments. Appraisal is best method of motivation so. checklist. Appraisal program conducted for all level of employees. Create familiar environment in the company and provide similar opportunity to all employees. . the following suggestions and recommendations are made:        New methods are also adopted by the company for performance appraisal like MBO.SUGGESTIONS:Based on the findings of this study. Thus. accommodations. balance scorecard. Provide better training program and well developed environment for work which is helpful in career growth and upgrade their skills. bonus and loan facility is given after appraisal is done. From lower level to higher level to encourage and motivate them. Give equal opportunities to poor performer and also facilitate training and development program for them. various benefits like awards. ranking forced choice. Appraisal interview is also conducted to get feedback of the employees about the whole appraisal process. no dispute is created. rating scale.

CHAPTER-9 APPENDIX .

PAY SCALE:______________________________________________ 5. DESIGNATION:_________________________________________ 3.4 The appraisal in conducted A. Behavior ( ) C. Adaptability in the organizations ( ) D. Once in a year ( ) .QUESTIONNAIRE 1.1The performance appraisal method followed in the organization is A. 180 Feedback ( ) Q. Technical skills ( ) B. Any other( ) Q. 360 Feedback ( ) B. DEPARTMENT:__________________________________________ 4. NAME :___________________________________________________ 2.2 An individual employee is evaluated on the basis of A. JOINING DATE:__________________________________________ Q. Balance Scorecard method ( B. Once in 6 months ( ) B.3 The employee is evaluated on the basis of A. MBO ( ) C. Any other method ( ) ) Q.

Acceptable ( ) D.5.Q. Consistent across the company ( ) Q. Acceptable to both parties ( ) C. Significantly more than acceptable ( ) Q.The method which is adopted by your organization for performance appraisal is readily acceptable by you? A.6. Identify weakness ( ) Q. Not acceptable ( ) B. Yes ( ) B. Motivated ( ) C.Is company appraisal rating equivalence scale (CARES)? A Fair ( ) B. Partially acceptable ( ) C. More motivated ( ) B. YES ( ) .10 Are you satisfied with your working conditions or method? A.7 Within your functional area would you like to see an expansion in your role? A.9. Less motivated ( ) D.What is the main purpose of conducting performance appraisal programmed in your organization? A.8. ( ) Q. Build on strength ( ) C. Assess performance ( ) B. No. Not motivated ( ) Q. Consist ent within a work group ( ) D. Are you motivated by your performance appraisal programmed ? A. More than acceptable ( ) E.

Award ( ) C. Senior managers ( ) B. Promotion ( ) B. Not effective ( ) Q.B. Job rotation ( ) D. More effective ( ) B. Effective ( ) C.11 What type of benefits you get after your performance appraisal programmed? A. Less effective ( ) D. Workmen ( ) made for all level of the employees in the . Assistant manager ( ) D. Manager ( ) C.Is performance appraisal effective for employees to take suitable steps to improve their performance or to control their shortcomings? A. NO ( ) Q. Managing poor performance ( ) Q.12.13Is performance appraisal organization? A.

CHAPTER-9 BIBLIOGRAPHY .

KOTHARI ―Research Methodology‖  WEBSITE  www.usl.ubgroup.mcdowell&company. CHHABRA ―Human Resources of Management‖  C.R. GUPTA “Human Resources OF Management”  C.google.N.BIBLIOGRAPHY: T.B.com  CORPORATE PROFILE OF USL http://brep .com  www.com  www.in  www.