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SUBMITTED TO KUMAON UNIVERSITY IN PARTIAL FULFILMENT OF “BACHELOR OF BUSINESS ADMINISTRARION” (THREE YEARS FULL TIME DEGREE PROGRAMME)
SUBMITTED BY DEEPANSHI JOSHI B.B.A (IV SEMESTER) (2008-2011)
JAI ARIHANT INSTITUTE
This is to certify that ANJALI SHARMA has completed the project title “PERFORMANCE APPRAISAL AT BIL.” under my guidance and supervision. She is submitting the project in the partial fulfillment of the requirement for the award Masters of Business Administration, UTTRAKHAND TECHNICAL University, DehraDun. This work is original and has not been published or submitted elsewhere for any purpose what so ever. All sources of information have been mentioned and dully acknowledged.
SUBMITTED TO: MISS. RINKY RANA (FACULTY MBA.DPT.)
I am very thankful to my Faculty Guide “MISS.RINKY RANA” without whose meticulous attention, invaluable suggestions, encouraging guidance and creative support; I would not have been able to complete my dissertation which is one of the important parts of the MBA program. She helped me in simplifying the problems involved in the work. I would also like to thank the overwhelming support of all the people who gave me an opportunity to learn and gain knowledge.
PREFACE As a part of my BBA IV Sem. . PANTNAGAR”. so as to give exposure to practical knowledge and to get familiar with the various activities taking place in organization. I was asked to undergo 6 weeks of Summer Training in any organization. I got an opportunity to undergo Summer Training in the reputed organization PARLE INDUSTRIES LIMITED. program . where I was assigned the project entitled “PERFORMANCE APPRAISAL.”.
if any. The empirical finding in the report are based on the data collected myself while preparing this project. DEEPANSHI JOSHI .DECLARATION I DEEPANSHI JOSHI student of BBA IV sem. DEEPTI SARKI is my original work. of JAI ARIHANT INSTITUTE. hereby declare that this Dissertation report “PERFORMANCE APPRAISAL” is written and submitted by me under the guidance of MISS. The entire analysis and conclusion of this report are based on the information which is collected by me during the training period. I have not copied any thing from any source or other project submitted for the similar purpose.
& Features of Performance Appraisal • Process & Methods of Performance Appraisal • Key elements of Performance Appraisal • Problems of Performance Appraisal • Process of Performance Appraisal • Performance Appraisal at BIL. • Process of Appraisal in Britannia Industries Limited Chapter-5: LITERATURE REVIEW 23-44 45-50 Chapter-6: RESEARCH METHODOLOGY • Sample Size 51-54 .CONTENT Chapter-1: EXECUTIVE SUMMARY Chapter-2: OBJECTIVE OF THE STUDY Chapter-3: INTRODUCTION ABOUT BRITANNIA • Company overview • Company Profile • Board of Directors • Mile stones • Activities of the company PANTNAGAR UNIT 1-2 3-4 5-22 • Introduction • Company Profile • SWOT Analysis • Department of the company Chapter-4: PERFORMANCE APPRAISAL • Definition of Performance • Objectives.
• Method of Sampling • Area of work • Method of Data collection • Scope of the study • Sources of data collection • Limitation of the study Chapter-7: ANALYSIS & FINDINGS Chapter-8: RECOMMENDATIONS Chapter-9: CONCLUSION Chapter-10: QUESTIONNAIER Chapter-11: BIBLIOGRAPHY 55-56 57-58 59-60 61-66 67-68 .
CHAPTER-I EXECUTIVE SUMMARY EXECUTIVE SUMMARY FOR PERFORMANCE APPRAISAL .
for better or worse -. a vehicle for employee improvement. a good system. demotions. promotions. . it is also true that -.Performance appraisals can be a good way for organizations to boost employees' motivation and their competitive edge. a platform for measurement. There are two main reasons that formal performance appraisals are here to stay. The 10 lessons here can help your company move closer to appraisals that help staff perform their best.formal performance appraisals are an inescapable part of organizational life. It is common knowledge that most managers and employees find participating in formal performance appraisals as appealing as having a root canal. They also are key to evaluating recruitment results and determining training needs." -. "The irony is that our organization has been doing formal appraisals for at least 30 years and we still struggle to do them right. It takes a clear purpose.and making sure they are used effectively throughout an organization -. and effective managers all operating together to get the job done. a systems perspective must be applied to identify the critical appraisal system components and stages to make sure that organizational procedures and practices work in harmony. Our lessons for developing and sustaining a high-performance appraisal system are based upon two key tenets. The second tenet is that individual managers play a pivotal role in achieving effective appraisals and that they need the right tools and support to be effective. formal appraisals are required to justify a wide range of human resource decisions such as pay raises. Second. formal appraisals are required to maintain a competitive edge. and a means of linking key outcomes to performance. Fortune 500 manufacturing organization. First. and selection validation. In a recent study of high-performance organizations. terminations.Director of human resources.isn't easy. But creating useful performance appraisals -. However. The manufacturing organizations in this study clearly stated that an effective appraisal and review process created focus. The first tenet suggests that if appraisal processes operate as a system. the practice of employing a value-added performance appraisal process was cited as one of the top 10 vehicles for creating competitive advantage.
CHAPTER II OBJECTIVE OF THE STUDY OBJECTIVE OF THE STUDY .
SUB-OBJECTIVE Are the present performance appraisal is sufficient enough to analyze the ability of a company. To see the difference between the theoretical knowledge & practical knowledge. To know the satisfaction of the employees. with the appraisal system followed in BIL. to gain knowledge & experience & know how to work in the organization environment. is to make my self capable for moving forward in corporate world.The objective for my Dissertation Report. MAIN OBJECTIVE To Know about the existing system of Performance Appraisal in Britannia Industries Limited” To study the awareness of the employees regarding the appraisal system. which was very essential for me to do. To evaluate the effectiveness of appraisal system. . It will help me to gain more & more about corporate sector. Therefore I joined BIL Pantnagar to improve my capabilities.
CHAPTER-III INTRODUCTION ABOUT THE COMPANY .
Parle Products also has 7 manufacturing units and 51 manufacturing units on contract.COMPANY OVERVIEW In 1929 a small company by the name of Parle products emerged in British dominated India. Additionally. The intent was to spread joy and cheer to children and adults alike. but they decided to take the brave step.NUSLI WADIA(CM) MS. A decade later it was upgraded to manufacture biscuits as well. The company knew that it wouldn’t be an easy task. COMPANY PROFILE TYPE: FOUNDED IN: HEADQUARTERS: KEY PEOPLE: INDUSTRY: PUBLIC 1982 BANGALORE Mr. the Parle name has grown in all directions. won international fame and has been sweetening people's lives all over India and abroad. which are the largest biscuit and confectionery plants in the country.VINITA BALI(MD) FOOD . A small factory was set up in the suburbs of Mumbai. Apart from the factories in Mumbai and Bangalore Parle also has factories in Bahadurgarh in Haryana and Neemrana in Rajasthan. to manufacture sweets and toffees. Since then. all over the country with its sweets and candies.
CURD etc 2.337 22. BUTTER.663 MILLIONS(2009-2010) http://www. BREAD. CAKE. MILK.PRODUCTS: EMPLOYEES: REVENU: WEBSITE: BISCUITS.co.britannia.in BOARD OF DIRECTORS .
Pratap Khanna Mr. George Casala Mr. Vinita Bali Mr. Nusli N Wadia Ms. S Kelkar Dr.NAME Mr. A K Hirjee Mr. Jeh Wadia Mr. Avijit Deb Mr. Stephan Gerlich Mr. Keki Dadiseth Mr. Francois Xavier Roger Field Marshall Sam Manekshaw DESIGNATION Chairman Managing Director Director Director Director Director Director Director Director Director Director Director Director Director Emeritus MILE STONES . S. Nimesh N Kampani Mr. Vijay Kelkar Mr.
36crore 1975 1978 1979 1983 1989 1992 1993 • • • • • • • Britannia Biscuit Company takes over biscuit distribution from Parry’s Public issue – Indian shareholding crosses 60% Re-christened Britannia Industries Ltd. 295 in Kolkata • Advent of electricity sees operations mechanized • Imported machinery introduced. Britannia becomes the first company East of the Suez to use gas ovens 1939.100crore The Executive Office relocated to Bangalore BIL celebrates its Platinum Jubilee Wadia Group acquires stake in ABIL.000 tons of biscuits Re-birth – new corporate identity ‘Eat Healthy.00.44 • • Sales rise exponentially to Rs.1.27.16. (BIL) Sales cross Rs. Think Better’ leads to new mission: ‘Make every third Indian a Britannia consumer’ • • • 1999 2000 BIL enters the dairy products market “Britannia Khao World Cup Jao” – a major success! Profit up by 37% Forbes Global Ranking – Britannia among Top 300 small companies .1892 1910 1921 • The Genesis– Britannia established with an investment of Rs. UK and becomes an equal partner with Group Danone in BIL 1994 1997 • • Volumes cross 1.202 in 1939 During 1944 sales ramp up by more than eight times to reach Rs.
2001 • • • BIL ranked one of India’s biggest brands No.1 food brand of the country Britannia Lagaan Match: India’s most successful promotional activity of the year • • 2002 Maska Chaska: India’s most successful FMCG launch BIL launches joint venture with Fonterra. The launch of yet another exciting snacking option – Britannia 50-50 2005 chant! • • • Pepper Chakkar.00. Ltd.000 tons of biscuits Good Day adds a new variant – Coconut – in its range Re-birth of Tiger – ‘Swasth Khao. . Tiger Ban Jao’ becomes the popular Britannia launched ‘Greetings’ range of premium assorted gift packs The new plant in Uttarakhand. Is born Rated as ‘One amongst the Top 200 Small Companies of the World’ by Economic Times ranks BIL India’s 2nd Most Trusted Brand Pure Magic –Winner of the World star. commissioned ahead of schedule. the world’s second largest Britannia New Zealand Foods Pvt.most successful launch of the year • • • • • 2004 Britannia Khao World Cup Jao rocks the consumer lives yet again Britannia accorded the status of being a ‘Super brand’ Volumes cross 3. Asia star and India star award for dairy company • • Forbes Global • • 2003 packaging • ‘Treat Duet’.
OUR PRODUCTS .
Britannians are hand-picked for a singular purpose…to perpetually ensure Market Leadership and generate exemplary performance in every function.WHAT MAKES A BRITANNIA If you think Britannia’s are extraordinary individuals who are passionate about everything they do… create inspiration through everything they do…and succeed in everything they do…you’re probably right. Britannians exhibit the following leadership behaviors (we fondly call BULBs – Britannia Universal Leadership Behaviors) • • • : Integrity Team Orientation People Development .
• • • • • • • Learning Orientation Customer Orientation Quality Orientation Drive for Results Entrepreneurial Spirit System and Process Orientation Communication If feel you stack up well in terms of all these behaviors…don’t waste time…Join us!!! .
5. dealers in flour. .OBJECTIVES OF THE COMPANY The objectives of the company are as follows: 1. grow. Gupta and company and Britannia biscuits company and all or any of the lands. buy. import export and deal in provisions of all kinds of wholesale and retail. To carry on business as bakers and confectioners and to manufacture buy. 4. accept. prepare for market and deal in farinaceous foods for all kinds and in particular biscuits. endorse. buildings. To manufacture. refine prepare. discount and issue promissory notes. To make.S Brothers and company. sell. sell. 2. 3. plant and machinery. breads. assets and liabilities of the proprietors of that business in connection there with and with a view thereto to enter into the agreement referred to in clause 3 of the companies article of association and to carry the same into effect with or without modification. To acquire and take over as a going concern the biscuit manufacturing business now carried on at Dum dum junction under the styles or firms of V. To carry on business as millers and grain merchants. bills of exchange and other negotiable instruments etc. cakes and confectionary and food of every description suitable for individuals. whether solid or liquid. rice and other produces.
INTRODUCTION ABOUT PANTNAGAR UNIT INTRODUCTION ABOUT THE UNIT .
Stores. Maintenance. At the production plant also care is being taken for the neatness and cleanness of the biscuits and the biscuits are prepared in full hygienic conditions. Packaging and dispatch. In the Company when the raw material is entered in the Company from that time onwards the quality of material is taken into consideration.(PANTNAGAR BRANCH) INTRODUCTION Britannia industries limited was established at Pantnagar on 1st April 2005in the area of approximately 20 acres mainly for the purpose of production of biscuits as this area is free from almost all types of taxes. The Company is perusing for ISO14001certificate and it is ISO 22000 certified. legal and administrative security. Purchase. . For this purpose all the persons who enter the production or plant area is not allowed to go inside without wearing a cap. Forth and last plant is for Bourbon which has a flexi line for Orange cream also. Second plant is for Good day. In Britannia Industries Limited there are many types of departments which are inter connected to each other and work together for the welfare of the Company as the whole. pepper chakkar and Maska Chaska. New concept like 5S is also being implemented in Britannia Industries Limited. Personnel and training. First plant is for Marie Gold which has a flexi line for Good day also. There are four plants in operation in the Company at this branch. Production. third one is for 50:50 variants. The departments of the Company includes Quality assurance. Engineering. There is a well built communication system inside the Company which helps in doing the work on time and with full efficiency and effectiveness. Firstly the material is taken into the laboratory and it is being tested and after that it is being taken in progress. Finance.
7) The company is set up in an area of approximately 20 acres. 9) Maximum production is 300 tons per day. ICICI Bank limited. City Bank. 2) Machinery was set up on 23rd march 2005. 4) Actual production was started on 1st April 2005. ABN Ambro Bank. Bank of America. 6) Biggest plant of the company is plant number two. The hongkong and shanghai banking corporation limited. 8) Minimum production of the company is 180 tons per day. . Standard Chartered Bank.MAIN EVENTS OF THE COMPANY 1) Bhumi poojan of Britannia industries limited was on 20th may 2004. 13) The bankers of the company are: State Bank of India. 12) The auditors of the company are Lovelock & Lewes. 3) Production trial was taken on 23rd march 2005 itself. 11) It is a public limited company. 5) First dispatch of finished goods was done on 20th April 2005. HDFC Bank limited. 10) Control of management is through Board of Directors.
fifty (50-50) i) ii) iii) 4) Plant IV Chocolate treat bourbon Orange treat 50-50 50-50 Maska Chaska 50-50 pepper chakker . 1) Plant I Marigold Good day butter Good day Pista badam 2) Plant II good day cashew 3) Plant III fifty.NUMBER OF PLANTS AND PRODUCTION AT THE PANTNAGAR BRANCH Not all the brands of Britannia are produced in this branch only some brands of biscuits are produced at this branch. Production of biscuits in Britannia Pantnagar branch is divided in to four Plants.
over The number of biscuits produced by Britannia in one year would be the equivalent of one Stacked on top of each other.4 billion packets each year. pack of twelve biscuits for every two people in the world. Continuous training and retraining of the employees to create culture that value quality and food safety as a core pillar of the business. Quality products to customers. members of the current Indian cricket team serve as its brand ambassadors.1 billion sales mark in its very first year and is growing stronger. all Britannia biscuits sold in a year would stand 10. 2200 authorized whole sellers and 56 depots. . Launched in 1997.OBJECTIVES OF THE UNIT Investing in appropriate technology. Nearly half the buy approximately 2. Tiger became the largest selling Britannia biscuit brand in just 4 months of launch. Haccp and 5 S. THINGS YOU DON’T KNOW ABOUT BRITANNIA Britannia products are sold in over two million outlets. To control the wastage and save time and efforts. taller than Mount Everest. reaching millions of customers who A small army keeps Britannia going – over 180 stock keeping units. It crossed Rs. Working collaborators with the business partners. To work under the principals of Kiazen. 3000 employees.000 times Britannia has had a long association with cricket and cricket players.
Tax benefit to the company. Raw material is wasted at the time of unloading. Market share of the company. Continuous growth. WEAKNESSES No uniform of the officers and of the workers too. Dedicated work force. The family environment in the company. There is no board of Britannia at the entry gate.SWOT ANALYSIS STRENGTH Goodwill of company Financially a very strong company Effective well designed and developed production and marketing network. Storage capacity of the company is limited. . Superior quality and service to provide maximum benefits to customers. Land is not properly utilized. Unit is situated far away from main plant.
Lang can be used more efficiently. Taste and preference of customers. Availability of the other brands.OPPORTUNITY There can be minimization of waste. There can be use of the foreign technologies for efficient utilization of raw material so that the production of a biscuit can be increased. More and more incentives should be given to workers to motivate them which help in increasing the employee moral. THREATS New entrants in the business Threats of substitute products. Rivalry among the competitions. . There must be more efficient utilization of the raw material.
These are as follows: UNIT HEAD Human resource Accounts Production Purchase Maintenanc e Quality Officers Officers Officers Officers Officers Officers .Departments/ hierarchy of the company There are mainly six departments of the company.
CHAPTER-IV INTRODUCTION ABOUT PERFORMANCE APPRAISAL .
“Performance appraisal is a formal structured system of measuring & evaluating an employee’s job.” A formal definition of Performance appraisal is that.” Under Performance appraisal we evaluate not only the performance of a worker but also his potential for development. selection for promotion.PERFORMANCE APPRAISAL Performance appraisal or merit rating is one of the oldest and most universal practices of management. Beach: “Performance appraisal is the systematic Evaluation of the individual with regard to his or her performance on the job & his potential for development. Performance appraisal is a method of evaluating the behavior in the works pot. related behaviors & outcomes to discover how & why the employee is presently Performing on the job & how the employee can perform more effectively in the future so that the employee. “It is the systematic evaluation of the individual with respect to his or her performance on the job & his potential for development. It implies assessing the performance of an employee on the job. Heyel is as following:“Performance appraisal is the process of evaluating the performance & qualification of the employees in term of the requirements of the job for which he is employed for the purpose of administration including placement.” A more Comprehensive definition is. . providing financial rewards & other action which require differential treatment among the member of a group as distinguished from action affecting all members equally. A formal defining by C.” According to Dale S. normally including both the quantitative and aspects of job performance.” According to Deal Yoder: “All formal procedures used in working Organization to evaluate personalities & contribution s & potentials of group member. organization & society all benefit.” According to Shubin: “evaluation is a systematic appraisal of the employee’s personality traits & performance on the job & is designed to determine his contribution & relative worth to the firm.
transfer. layoff 3. FUNCTIONS . promotion. Techniques 6. Application 4. PRESENT FOCUS Performance Appraisal Development of the individual improved job performance. 3) The basic purpose is to find out how well the employee is performing the job & establish a plan of improvement. Performance. 4) Performance evaluation is not job evaluation. critical incidents. group appraisal. result or accomplishment. Factors rate d 5. For managerial & technical personnel. 2) It is a continuous process in every large-scale organization. 5) Appraisals are arranged periodically according to a definite plan. Post appraisal For rank & file workers Personal traits Rating scales with emphasis upon scores Superior communicates his rating to the subordinate & seeks to have employee accept the rating. FEATURES OF PERFORMANCE APPRAISAL 1) Performance appraisal is the systematic description of an employee’s job relevant strength and weaknesses.TRENDS IN PERFORMANCE APPRAISAL ITEM 1. Mutual goal-setting. Superior stimulates employee to analyse himself & set goals with the help. Terminology 2. Purpose FORMER EMPHASIS Merit-Rating Determine wage increase.
It can be decided whether he can be promoted or not. If the employees are conscious that they are being appraisal in respect of certain factors & their future largely depends on such appraisal. . Helps in establishing credibility of the selection procedure. There is continuous evaluation of this performance either formally or informally in small organization. Provide the opportunity to review the strange & weakness of the employees. 4) FEEDBACK: Performance appraisal provides feedback to employees about their performance. OBJECTIVES OF PERFORMANCE APPRAISAL 1) SALARY INCREASE: Performance appraisal play a role in making decision about salary increase. Appraisal can work automatically as control device. when the person gets feedback about his performance. It helps in career planning & personnel development. It is also used for transfer. Normally salary increase depends on how employee is performing his job. 3) TRAINNING & DEVELOPMENT: Performance appraisal tries to identify the strengths & weaknesses of an employee on his present job. he can relate his work to the organizational objectives. Identification the areas of training & development. Act as a motivation factor. A person works better when he knows how he is working first. demotion & discharge of employees. 5) PRESSURE ON EMPLOYEES: Performance appraisal put a post of pressure on employees for better performance. Helps in reward allocation. promotion. Performance appraisal discloses how an employee is working in his present job & what his strong & weak points are. This information can be used for devising training & development programmes appropriate for overcoming weakness of the employees. It tells them where they stand. 2) PROMOTION: Performance appraisal plays a significance role where promotion is based on merits most of organization use a combination of merit & seniority for promotion. There is direct contact between employees & Performance appraisal has to be a undertaken. the person gets feedback about his performance & try to overcome his deficiencies second.
some of these standards are based on job description should be clear enough to be measured & understood by everyone standers are the expectations. .PROCESS OF PERFORMANE APPRAISAL 1 Establishment of Performance Standards 6 2 Establishment of Performance Standards Establishment of Performance Standards 5 3 Establishment of Performance Standards Establishment of Performance Standards 4 Establishment of Performance Standards 1) ESTABLISMENT OF PERFORMANCE: We need some kind of measures again which we are going to compare the performance of employees.
3) MEASURES ACTULY PERFORMANCE: After setting standard you will some critical to measure the performance of employees.2) COMMUNICATE EXPECTATION TO EMPLOYEES: Standards need to be communicated is employees so that they know what is expected of them & how will they about it. . He conduct meeting with employees for this purpose. 4) COMPARE ACTUAL PERFORMANCE WITH STANDARD: This is done to see if any discrepancy exist & if so then how will it be rectified. 6) INITIAL CORRECTIVE ACTION: If there is any deviation in performance then suggestive corrective action can be provided to the employees. It has to be received by employees & manager should receive the feedback so that he comes to know whether employees have understood the intention of communication. 5) DISCUSS APPRAISAL WITH EMPLOYEE: Performance of employee is reviewed & then manager has to convince the employees about his judgment.
METHODS OF PERFORMANE APPRAISAL PERFORMANCE APPRAISAL METHODS Individual evaluation method Multiple-person evaluation method Other method Confidential report Easy evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored Rating scale Forced choice method MBO Ranking Paired Comparison Forced Comparison Group appraisal HRA Assessment center Field review .
APPRAISAL BASED ON TRADITIONAL TRAITS
There are various methods of Performance Appraisal based on traits: 1) Ranking Method: Ranking is the oldest & simplest method of appraisal in which a person is ranked against other on the basis of certain traits & characteristics. It is not good for large number5 of employees. It does not indicate absolute or equal difference of ability between individuals. 2) Faired comparison Method: Paired comparison is a slight variation of ranking system. In this method each person or employees is compared with all other person. Then the rank is given according Rader gives rating & puts a tick mark the name of each employee alter which the name of ticks are counted & the employees having the most no. of tick marks is rated the highest. The larger the no. of employees the more difficult in composition. 3) Grading: In this method certain categories well in advance & persons are put in their traits & characteristics such categories are like :- outstanding, goods, average, poor, very poor or may be in terms of A, B, C, D etc. 4) Forced Distribution Method: It assumes that employee’s performance conforms to the bellshaped, this method tries to remove the error of leniency or central tendency error.
10 20 30 10% - Excellent 20% - Good
40 50 30% - Average 40% - Below Average
This method can be challenged people might question why they have been put in the category. This method is useful to rate job performance & Promotability. 5) Forced-choice Method: The forced-choice rating method contains a service group of statement & the rater checks how effectively the statement each individual being evaluated. Since forced choice is made might be disliked by the managers also depends on whether the statements properly formulated or not. The ultimate scoring lines with the H.R department. 6) Check- list Method: It is list of traits pertaining to the job. There are two options – Yes or No. this list is passed to H.R Department & they have a recording key. Accordingly they mark the Yes or No & give the overall rating. It is easily administered standardized & economical since it is applicable for everyone. 7) Critical incidents Method: Here focus on the incidents which are crucial for the performance of job. The behavior of employee is checked & a record is maintained about how he reacted in a particular situations. Here, since, we are keeping a record of job-related behavior it is more appropriate. We are considering both effective & iniency & primary basis. Chances of improvement are there. 8) Graphic scale Method: Graphic scale also known as linear rating scale is the most commonly used method of performance appraisal. In this method a printed appraisal from is used for each appraise. It contain various employee characteristics & his job performance various characteristics include initiative, leadership, dependability, co-operativeness, enthusiasm, creative ability, decisiveness etc. The rating is done on the basic of scale which is in continuum. The central idea behind this scaling is to provide the rate varying degree of a particular quality. The degree of quality is measured on a scale which can very from three points to several points, graphical scale method is good one in measuring various job behavior of an employee. However it is not free from rater’s biases.
Satisfactory 1 2 3 4 5 6 7 8
Unsatisfactory 9 10
9) Essay Method: It is a detailed description or narrative form of the employee evaluation. It does not provide any quantitative data to compare & is very unstructured, one need to have good analytical & writing skills. The essay method is useful in providing useful information about an employee on the basic of which he can be apprised. 10) Field Review Method: Employee are related by any other person expect than the immediate supervisor or own dept, the person can be from some other dept, or outside the organization ratings are given on the employees record with organization & the information provided by the supervisor when he is interviewed by enumerator. A complied report given by the enumerator & is free form bias. It based on second final information.
APPRAISAL BASED ON MODERN METHOD
1) Assessment Centre: It is only method used for promotion. In this method there is a team of experts or evaluators who judge the performance. In this method all the candidates who clime for promotion are called participant. They asked to do different exercise of development or they have to give the answers of the expert. By this expert know their behavior or attitude & according to this expert prepare report & gave promotion. 2) Human Resource Accounting Method: Human Resource According are a valuable asset of any organization. This asset can be valued in term of money. Under this method performance is judged in term of cost & contributions of employees. Cost of human resource planning, recruitment, selection, induction, training, compensation etc. Contribution of human resource is the money of labour productivity or value added by human resources. 3) Behaviorally Anchored Rating Scale (BARS): This method combines graphic rating scales with critical incidents methods. BARS are descriptions of various degrees of behavior relating to specifics performance dimensions. The behavior of the employees is checked through graphic rating method.
PURPOSE ♦ To create & maintain a satisfactory level of performance. ♦ To facilitate fair & equitable compensation based on performance. transfer & demotion are taken. determine training & developmental need & to prescribe the means for employee growth provides information for correcting placement. ♦ Provides feedback information about the level of achievement & behavior of subordinate. ♦ To prevent grievances & indisciplinary activities. ♦ Provides information which helps to counsel the subordinate. ♦ To help the superior to have a proper understanding about their subordinates. ♦ To provide information for making decision regarding lay-off. ♦ To facilitate for testing & validating selection tests. ♦ To ensure organization effectiveness through correcting employee for standard & improved performance. conformation. interview techniques through comparing their scores with performance appraisal ranks. knowledge. ♦ To contribute to the employee growth & development through training. . self & management development programmes. etc. ♦ Provides information to diagnose deficiency in employee regarding skill. promotion. ♦ To guide the job changes with the help to continuous ranking. & suggesting the change in employee behavior. retrenchment.NEED FOR PERFORMANE APPRAISAL ♦ Provide information about the performance ranks basing on which decision regarding salary fixation.
KEY ELEMENTS OF PERFORMANCE APPRAISAL SYSTEM Human Performance Performance Appraisal Employee Feedback Performance Measure Performance – Related Standard Human Resource Decisions Employee Record .
7) INFORMATION INACCURACIES: Poor performance may indicate errors in job analysis information. good performance may indicate untapped potential that should be developed. 6) STAFFING PROCESS DEFICIENCIES: Good or bad performance implies strength or weakness in the personnel department staffing procedure. 9) EQUAL EMPLOYMENT OPPORTUNITY: Accurate performance appraisals that actually measure job-related performance ensure that internal placement may be able to provide assistance. Appraisals help diagnose these errors. & demotion are usually based on past or anticipated performance. & personnel specialists to intervene with appropriate action to improve performance. transfer. training. FEEDBACK TO HUMAN RESOURCES: Good / bad performance throughout the organization indicates how well the human resources function is performing. 3) PLACEMENT DECISION: Promotion. or counseling decisions. 4) TRAINING & DEVELOPMENT NEEDS: Poor performance may indicated the need for retaining. Many firms grant part or all of their pay increases & bonuses based upon merit. 2) COMPENSATION ADJUSTMENTS: Performance evaluation help decision-makers determine who should receive pay rises. human resource plans. which is determine mostly through performance appraisals. Reliance on inaccurate information may have led to inappropriate hiring. 8) JOB DECISION ERRORS: Poor performance may be a symptom of ill-conceived job designs. .USES OF PERFORMANCE APPRAISAL 1) PERFORMANCE IMPROVEMENT: Performance feedback allows the employee. or other parts or the personnel management information system. 5) CAREER PLANNING & DEVELOPMANT: Performance feedback guides career decision about specific career paths one should investigate. Likewise. Often promotions are reward for past performance. manager.
. It overcomes the communication barrier. (ii) The error of central tendency. An employee shall express his emotional needs & his value system. The rater biases include: (i) Halo effect. Negative rating affects interpersonal relating & industrial relations system. It will remove the inherent weakness of the appraisal system. unclear guidelines for appraisal etc. Influence of external environment factors & uncontrollable internal factors. Most part of the appraisal is based on subjectivity.e. Management emphasizes on punishment rather than development of an employee in performance appraisal. . There will be change to subordinate to express his views even after performance appraisal. which is considered taboo will today. 2) 3) 4) 5) 6) 7) 8) Failure of the superior in conducting performance appraisal & post performance appraisal interviews. Some rating particularly about the potential appraisal is purely based on guesswork. subjective assessment of vague & abstract performance targets. (iii) The leniency & strictness biases. Feedback & post appraisal interview may have a setback on production. & (v) The recency effect.PROBLEMS OF PERFORMANCE APPRAISAL 1) Rating Biases: The problem subjective measure (is that rating which is not verifiable by others) has the opportunity for bias. (iv)Personal prejudice. i. 9) ADVANTAGES OF PERFORMANCE APPRAISAL There will be an objective analysis of traits of both the superior & subordinate. Less reliability & validity of the performance appraisal techniques.
PERFORMANCE APPRAISAL AT BRITANNIA INDUSTRIES LTD. .
the competencies and their required proficiency levels for a role. relative weight of KRAs and Routine Responsibilities. The URR Template in MAP helps deliver consistency and clarity. KRAs are ‘critical outcomes towards which effort is directed to achieve desired business results. The achievement against targets sets for each of these will together constitute the Appraisee’s Performance Plan in the Performance Cycle or Period. MAP allows the Appraisee to define the performance measures applicable to the Appraisee’s situation using combination of KRAs and Routine Responsibilities.’ KRAs Routine Responsibilities Competencies Performance Plan Development Plan Performance & Development Plan Unique Role and Responsibility (URR) templates provide the KRAs. . On expected performance measures to Appraisee’s and Appraisers alike.’ Routine Responsibilities are ‘significant on-going tasks or outcomes that are undertaken or delivered on day-to-day basis.PERFORMANCE APPRAISAL AT BRITANNIA Definition of performance in MAP is based up on Key Result Areas of KRAs and Routine Responsibilities.
Key phases of evaluating Performance at Britannia: 1. Mid Year Review 3. Performance and Development Planning 2.Performance Cycle at a Glance A Performance Cycle refers to the year for which your performance is being evaluated. Final Review The figure below provides an overview of the Performance Cycle with key dates for each phase. Unit/business Sector Draft Budget End February Offline Performance Planning March-Mid April Appraiser ONGOING FEEDBACK Appraise Mid Year Review September-October Normalision & score May Final Review & Feedback April Final Review & Feedback Mid April-End April .
In certain cases. The period that each Performance Plan covers is referred to as the Performance Period for that Performance Plan. such as those involving a mid-cycle change in role to transfers etc. PROCESS OF PERFORMANCE APPRAISAL IN BRITANNIA INDUSTRIES LIMITED . an Appraisee may be more than one Performance Plan in a Performance Cycle.
No.BRITANNIA INDUSTRIES LIMITED STAFF ASSESSMENT FORM Name: Job & Position Title: Emp. Meets Expectation 3. Outstanding 2.No Outcome Measure Standard Weightage Achievemen Low Medium High % t Self Coach’s Rating Rating CRITICAL KRAs IMPORTANT KRAs OVERALL PERFORMANCE ASSESSMENT (By Coach) 1. Above Expectation EMPLOYEE’S SIGNATURE COACH’S SIGNATURE . Grade: Function: A. PERFORMANCE ASSESSMENT from__/__/____to__/__/____Location: Rating Scale for Individual KRAs (1) Needs improvement (2) Meets expectations (3) Above Expectations (4) Outstanding S. Needs Improvement 4.
Competency Proficiency required for position Self Rating Coach Rating 1 2 3 4 Team working Thinking logically Listening & Responding Planning & Initiating OVERALL ASSESSMENT (By Coach) 2.B. POTENTIAL ASSESSMENT 1.1 being the lowest and 4 being the highest) S.1 being the lowest and 4 being the highest) S. NEEDS IDENTIFIED FOR TRAINING LEADERSHIP COMPETENCY 1 2 3 4 FUNCTIONAL COMPETENCY . Competency Proficiency required for position Self Rating Coach Rating 1 2 3 4 Customer Centricity Drive for Results Process & Systems Orientation Innovation OVERALL ASSESSMENT (By Coach) C.NO. LEADERSHIP COMPETENCY: (LC) Rating scale for individual competency: (Scale would be from 1-4. FUNCTIONAL COMPETENCY: (FC) Rating scale for individual Functional Competency: (Scale would be from1-4.NO.
ASPIRATIONS & FEEDBACK Self assessment(By Employee) STRENGTHS AREAS FOR IMPROVEMENT CAREER ASPIRATIONS DISCUSSION DETAILS PRE BAT DIALOGUE POST-BAT FEEDBACK Assessment by the coach Employee’s Signature _______________ Date (Tick appropriate box) _______________ Outstanding Coach’s Signature____________ Date Exceeds Expectation _____________ Meets expectation OVERALL RANKING: Below Expectation Needs Improvement H. HEAD FUNCTIONAL HEAD .R.D.
the progress on goals identified on the BAT Form is noted below… GOAL REVISION / ADDITIONS.BRITANNIA INDUSTRIES LIMITED MID-YEAR PERFORMANCE REVIEW (A copy of the review year (2007-08) BAT Form to be attached with this form) Employee Name Function/Location Review Period Coach PROGRESS ON GOALS (KRAs) Post discussion of the Employee and Coach. DELETIONS ANOTHER CHANGES IF ANY (Any change in the Employee’s Job Description or KRAs should be noted here. As well as areas of work requiring improvement) TRIANING & DEVELOPMENT REQUIREMENTS INVIEW OF CHANGED ROLE/ JOB DESCRIPTION REVIEW COMMENTS (By Coach) Employee’s Signature Date: Coach’s Signature Date: .
CHAPTER-V LITERATURE REVIEW .
Secondary survey data was used to underline and support findings from the primary interview data.LITERATURE REVIEW ON PERFORMANCE APPRAISAL Title: A review of performance appraisal within Liverpool Direct Revenue Services. The study also considers the impact on staff and their development of an appraisal system which is not delivering key messages or addressing individual performance issues. Abstract: This dissertation sets out to review and explain the challenge of performance management and how this is addressed through the performance appraisal process within Liverpool Direct Revenues Service. . The research makes several recommendations which include the training of all managers within the revenues service and the embedding of the appraisal process within the organisation. As a result of this research it was discovered that the revenues service does not have a coherent performance appraisal process. Authors: Lamb. Frank Publisher: University of Chester. The research will examine the elements which constitute a high performing appraisal process and consider the current problems inherent within the appraisal process within the revenues service and the impact this maybe having on service delivery. The research also discovered there was little engagement or confidence in the process from the participants. Further recommendations are made to improve staff engagement in the process and create better feedback of information. The research used a number of data capture methods. In addition a survey of all frontline staff within the revenues service was undertaken to provide a greater wealth of data and enrich the overall research. There exists a clear dichotomy between senior managers and senior officers as to what elements should be present in the performance appraisal.
for his own good. ranking. Promotion. The effect is exactly the opposite of what the words promise. My suggestion does run counter to widespread practice. as well.” [Pfeffer and Sutton. and then tying pay to the rating— the stuff of performance evaluations—is thin to none. Everyone propels himself forward. I went further than that: I suggested that managers and the rest of us steer clear of performance reviews. Deming had it right. reduced collaboration. get what you pay for. demolishes teamwork. on his own life preserver. Edwards Deming in Out of the Crisis In my previous column. nourishes rivalry and politics. motivate people to do their best. But I’m not alone in questioning performance evaluations and rankings. I suggested that ScrumMasters should steer clear of annual performance reviews. Rating and ranking individuals interferes with a ScrumMaster’s responsibilities as a coach in service to the team.Title:Performance without Appraisal (Pay. . Deming is clear and concise in stating the negative effects of performance appraisals and merit ratings: “It nourishes short-term performance. In fact. builds fear. for their own good. and Improvement) Authors: Esther Derby (scrum alliance) Abstract: The idea of merit rating is alluring. p. or tries to. They reference a survey of 200 human resource professionals which reports that forced ranking—a common component of performance appraisal programs—results in “lower productivity. the evidence supporting the benefits of rating. W. 107] They go on to describe the damage done by merit pay plans. Edwards Deming identified performance appraisal as one of the Seven Deadly Diseases of Management. The sound of the words captivates the imagination: pay for what you get. 102] More recently. The organization is the loser. annihilates long-term planning. Stanford University professors Robert Sutton and Jeffrey Pfeffer combed through data and studies related to widespread management practices. It does not reward attempts to improve the system. and damage to morale and mistrust of leadership. W. negative effects on employee engagement. Merit rating rewards people who do well within the system. inequity and skepticism. In short.” [Deming p.
who outperform the limits of the system. ScrumMaster may start off coaching a team on the basics of Scrum. and removing impediments bring high performance. take a bigger role working on systemic issues that hinder the team. Adjust salaries based on the current market rate for skills and roles. or even the best way.” True. . An improvement mindset. I’ll walk through some alternatives to the prevailing practice. Another reader posed the rhetorical question. Tying annual salary actions to ratings and rankings is just one way to determine what those actions should be. If someone is truly performing above others within the same job it may be time to promote him or reclassify his job so that it’s at a higher pay level. How do we determine how much to pay people? One reader pointed out. Once again. Or he may develop exceptional coaching skills. Allow all employees to share in the company’s success through profit sharing. Performance appraisals and pay-forperformance (PFP) aren’t the only way to answer those questions. thinking for the long term. “So all certified scrum masters earn the same amount?” Performance is a function of the person and the environment. and over time. pay increases based on performance ratings is only one way to accomplish the goal of recognizing outstanding individuals. Systems thinking and lean production at Toyota tell us that gains in productivity come from inspecting and adapting the system. Still. People—and their jobs—evolve over time. not from focusing on individual performance. there are people who are clearly outstanding performers (both outstandingly good and outstandingly poor). How do we determine how much to pay people? How do we know who to promote or fire? How do people know they need to improve? Organizations do need answers to these questions.My readers did raise legitimate concerns: Without performance appraisals…. In this column. eliminating waste. There are other rational and non-capricious ways to adjust individual salaries: • • • Adjust based on the cost of living so that the buying power of salaries keeps pace with economic conditions. respect for people. “people get their salaries on an individual basis.
“I just can’t get this group moving in the right direction.” When he described the situation to me in detail. They’ll be harboring resentment and telling themselves that they really are above average. or whether the system is limiting his performance. As with identifying outstanding good performers. “Maybe I should go back to being a developer. How do we know who to promote or fire? Other readers asked. I spoke with a new agile coach recently who was beginning to doubt he was in the right role. He can coach the person. A ScrumMaster will know when someone isn’t doing his job or is making it harder for other people to do their jobs. The team is split into three factions. how will we know who to promote?” Looking at how a person has evolved in his job and the level of responsibilities is one way. he’s working to bring other team members to his point of view. They won’t be improving. The truth is that many outstanding performers aren’t doing it for the money. They stay for love of their work and are most rewarded by new and challenging assignments. there’s no reason to keep him on the payroll until the annual review cycle comes around.” he said. The project has several stakeholders who disagree about the direction of product. If someone isn’t doing his job. and people who need to go move off the team.) And. One member of the team is skeptical of agile methods and baits the coach at every opportunity. “Without yearly ratings. or if coaching is not or is no longer an option. . consider the environment. I don’t think firing him—or giving him a low rating— is the answer. The reverse question came up. as well as individual skills. Ask whether someone is truly underperforming. without a manager’s involvement. Another option is to treat promotions as seriously as hiring: create a rigorous internal application process that involves interviews and auditions. I began to wonder if any new coach could move this group in the right direction. work with a functional manager to move the person off the team. The new coach is struggling in his job. When he’s not baiting the coach. The person who is supposed to mentor him is missing in action. poor performers will hang onto a job even if they aren’t receiving raises. though. (Some teams manage their own team membership. which swirl around a long standing conflict between two team members. It would be more fruitful (and more difficult) to look at the system that assigned a brand new coach to this project and failed to provide support. too: “How will we know who to fire?” It doesn’t take a rating to fire someone.
so we can inspect and adapt. Feedback on an annual cycle is worse than useless and is totally out of congruence with agile methods. . How do people know they need to improve? How will people know they need to improve if they don’t have an annual review? The answer to this question is simple (though not easy): their ScrumMaster will tell them. Some managers provide specific examples along with the letter or number evaluation grade. It may tell someone he needs to improve. most humans resist labels. In order to improve. When organizations adopt Scrum. people need clear behavioral descriptions and they need to understand the impact of behavior or results. but it doesn’t tell him what specifically he needs to do differently. However. A letter or number rating or ranking is an evaluation. and not ready to fully listen as the manger gives examples. but performance appraisals are a barrier to delivering valuable software. The time has come look at the evidence about pay and appraisal systems. Scrum runs on frequent feedback loops. That includes feedback to people on their work interactions and work results. But Scrum is all about making issues visible. We may want to succumb to the allure of the “merit pay” words. it’s time for them to go. sooner or later they bump up against the problems caused by asking people to work collaboratively and then measuring and rewarding them for individual effort. so they may be busy with the emotional response to the rating.
CHAPTER-VI RESEARCH METHODOLOGY .
Performance Appraisal has been considered as a most significant and indispensable tool for every organization for the information it provides is highly useful in making decisions regarding various aspects such as promotions and merit increases.RESEARCH METHODOLOGY When we talk of Research Methodology. As the title of the project suggests the project is about the study of the performance appraisal in the company. Sample Size: The sample size taken is 80 in which 20 were executives and 60 were supervisors and workers Method of Sampling: Random Sampling Area of work: Performance Appraisal . an attempt was made to study the Performance Technique in BRITANNIA. Random Sampling is the sampling in which every person has an equal opportunity of being selected in the sample. Thus. we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using so that research results are capable of being evaluated either by research himself or by others. of employees selected from the co. So my objective is that to know that how the working appraisal should be maintained in the company & which method is used in this. to constitute a sample. The method is more representative of the persons as there are no personal biases. SAMPLE SIZE The sample size refers to the no. METHOD OF SAMPLING The process employed for the sample was Random Sampling. The sample size used for study includes 80 employees from the company.
PRIMARY DATA Primary data is that data. that includes :a) Magazines b) Books c) Websites d) Reports e) Files f) Staff SCOPE OF THE STUDY It provides useful information for research and also introduces the researcher with the practical problem faced in the company. This research is very important for any Human Resource student to gain a real time experience. which is collected for the first time & thus happens to be original in character. There are many departments in Britannia but my research work is confined with Human Resource department where I studied that how the Performance Appraisal method should be done. The primary source to carry out study is:a) Questionnaire b) Schedule c) Observation d) Interview SECONDARY DATA Secondary data are those which have already been collected by someone else and have already been passed through the statistical process.Method of Data collection:Primary and Secondary. Acc. I have done my research at Britannia in Performance Appraisal. to Dessel-“Data collected by other persons” All the data has been collected from internal source. .
♣ Due to the tight schedule of managers. In primary method of data collection personal interviews was used and in case of secondary ways of data collection of magazines and books of Britannia were used.TOOLS FOR DATA COLLECTION The data was collected by me from both the sources for my Dessertation report. of employees in the company. LIMITATION TO THE STUDY Following are the limitations of this project:♣ While going through the research I had faced a bit problem like frequent visits were required. ♣ Extra large unit to cover. ♣ Workers and supervisors were not immediately responding. not possible to cover entire lot. more than 2000. . ♣ Large no. there are some difficulties for me to get co-operation and attention.
CHAPTER-VII ANALYSIS & FINDINGS .
The Appraisal method of an employee was totally based up on the proper test and interview of an employee. They are goal oriented and work as a team in a whole and the main emphasis of the company is on the quality products manufacturing. well managed and the well built company. I also found that in the last month of the financial year highest production and the highest dispatch was made. The Management of company is very Hardworking in nature and takes care about the well being of their staff and workers. I found that it works under the guidance of its head office. The time period for appraisal is based on quarterly basis. I Came to Know about the appraisal method of an employee. Besides all the above findings I also found that the BIL is the well reputed. I also found that their appraisal Method was very good. During my visit at BIL. They are provided with all the required facilities.ANALYSIS & FINDINGS In BIL. .
CHAPTER-VIII RECOMMENDATIONS .
They would suggest changes in job analysis & standards.RECOMMENDATIONS After making a Study on the topic of Performance Appraisal system in BIL. Prepare notes and use the completed performance appraisal form as a discussion guide so that each important topic will be covered. Appraisal tools must be relate to the employees satisfaction. assumptions or what one has heard from others. I Would Suggest that the following Points should be implemented: Give the employee a few days notice of the discussion and its purpose. Be ready to suggest specific developmental activities suitable to each employee’s needs. The final performance rating must be done in a fair manner. corrective on observed behavior and facts and not on inferences. The feedback must be positive. There should be no negative ratings because it affects interpersonal relations and industrial relations systems. if necessary. .
CHAPTER-IX CONCLUSION .
They work effectively and efficiently to achieve the company goals and the individual goals.CONCLUSION At last it is concluded that the company as a whole is a well branded company. . This is the reason that the company is achieving commanding heights and the last month of the financial year 2009-2010 made the records of highest production and highest dispatch and BRITANNIA as a whole has achieved the Second position in the FMCG sector in India.e. Every one is very supportive in nature and cooperate each other. The goodwill of the company is very high. Staff members and workers are also work very enthusiastically and complete every assignment on time. KRA(staff assessment form). Most of the employees hold the view that the system of KRA is effective to evaluate and truly reflects their roles and activity. After having a study of the present system of Performance Appraisal system in Britannia Industries Limited Rudrapur I have come up with a conclusion that Britannia industries Limited employees are aware of the system of Performance Appraisal being followed in their organisation i. About the company it is derived that the company is very well managed and its management is highly devoted towards the quality of their products and the well being of their staff members and workers.
CHAPTER-X QUESTIONNAIRE .
Performance appraisal questionnaire:I/ Employee information 1. Position: 3. Start working from: II/ Rating scales Yes / No / NA III/ Appraisal questions 1. Ratings are sometimes seen as based on subjective judgments? 5-IS Appraisal method of an employee totally based up on the proper test and interview of an employee? . 3. Department: 4. Which method of performance appraisal is mostly used in your company? 4. Quality of personal objective setting is poor. Employee name: 2. Are u satisfied with the methods of Performance Appraisal? 2.
2. Quality of personnel objective setting is poor ? (a) Yes (b)No Ans: .1.Are u satisfied with the methods of Performance Appraisal? (a) Yes (b)No Ans: Interpretation:65% of employees are satisfied with the methods used by company for performance appraisal.but 35% of employees are not satisfied with the methods used in performance appraisal.
Which method of performance appraisal is mostly used in your company? (a) Individual Method (b) multiple-person evaluation method (c) others Ans: Interpretation:Multipe –person evaluation method is mostly used according to 5o% of employees. 3.40% says individual method is used and 10% says other methods are used.Interpretation:55% of employees think that quality for setting personnel objective is poor where as 45%of employees think its not so. .
(a) Yes (b) No Ans: Interpretation:40% employees says. Ratings are sometimes seen as based on subjective judgments.yes that ratings are sometimes seen to be based on subjective judgment.4. .where as 60% of employees says no.
5-IS Appraisal method of an employee totally based up on the proper test and interview of an employee? (a) Yes (b) No Ans: Interpretation:70% of employees says that appraisal method is totally based up no proper test and interview but 30%of employees does not agree with this. .
CHAPTER-XI BIBLIOGRAPHY .
C. MAMORIA ESSENTIALS OF HUMAN RESOURSE MANAGEMENT AND INDUSTRIAL RELATIONS -----------.com www.britindia.S.google.SUBA RAO MANAGING HUMAN RESOURSE-----. DWIVEDI .com Books PERSONAL MANAGEMENT----------.P.com www.B.sidcul.BIBLIOGRAPHY Websites www.R.
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