Professional Documents
Culture Documents
ON
“PERFORMANCE APPRAISAL”
At
Learning Center:
Submitted to:
BONAFIDE CERTIFICATE
Place:
Date:
Forwarded by
First and the foremost I would like to thank God Almighty for this blessing that
have been showed upon me for the success of the project.
I would also like to thanks respondents who rendered their help in responding
to my interview schedule.
TABLE OF CONTENTS
Graph Page
Title
No. No.
1. Performance Appraisal is essential
In today’s scenario, Human capital is acknowledged as one of the most potent sources in
This project attempts to explore the most effective “HR policies and practices” for
It was a research conducted to get the feedback of the employees from different
organization.
The main research objective was to understand the relevance of wide variety of methods
and techniques that can be explored towards performance of the organizational goals. In
today’s competitive world every organization is geared towards maximum return with
minimum investment. Human Resource Management plays a vital role towards planning
& controlling cost effective manpower support. This is widely affected by planning and
this project
Channelising human energies in a predetermined desirable direction are not possible
unless harmonious relations are maintained among team members involved in business
development. Concept of employee retention was also understood through the project
study. The ways adopted by companies to manage grievances and stress and thereby
motivating the employees and reducing employee turnover were studied through the
project.
2. DABUR AS AN FMCG COMPANY
Today, the FMCG is the fourth largest sector in the Indian economy and there are many
FMCG companies like HLL, ITC, Britannia, Tata Tea, Nestle, Godrej Consumer, Dabur,
Marico etc.
Dabur India Limited is the fourth largest FMCG Company in India. Dabur has five other
subsidiaries- Dabur Foods, Dabur Nepal, Dabur Egypt, Dabur Oncology and Dabur
Pharma.
Business
Dabur’s product range encompasses health care, personal care, ayurvedic specialities and
food segments.
Brands
Well-known brands include Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola, Dabur
Location
Dabur has been marketing its products in more than 50 countries all over the world. The
company has offices and representatives in Europe, America and Africa. Manufacturing
Building on a legacy of quality and experience for over 100 years, today Dabur has a
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to
learn and grow to a commanding status in the industry. The Company has gone a
long way in popularizing and making easily available a whole range of products
based on the traditional science of Ayurveda. And it has very high standards in
is the first company to provide health care through scientifically tested and
initiated
of Dabur Amla Hair Oil. The product was so popular that it became the largest
Addressing rural markets where homemade oral care is more popular than
to masses.
that can provide holistic care in our daily life. An Ayurvedic medicine used as a
Dabur establishes its leadership in health care as one of only two companies
Foundation develops an eco-friendly process to extract the drug from its plant
source .
o 1996- Enters foods business with the launch of Real Fruit Juice
o 1996- Real blitzkrieg
Dabur captures the imagination of young Indian consumers with the launch of
Real Fruit Juices- a new concept in the Indian foods market. The first local brand
of 100% pure natural fruit juices made to International standards, Real becomes
professionals
Dabur establishes its market leadership status by staging a turnover of Rs. 1,000
crores. Across a span of over 1000 years, Dabur has grown from a small
With the setting up of Dabur Oncology’s sterile cytotoxic facility, the Company
gains entry into the highly specialized area of cancer therapy. The state-of-the art
plant and laboratory in the UK have approval from the MCA of UK. They follow
FDA guidelines for production of drugs specifically for European and American
markets.
o 2002- Dabur record sales of Rs. 1163.19 crore on a net profit of Rs
64.4 crore
Dabur became the first Ayurvadic products company to get ISO 9002
certification.
Science for Nature
subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This
scientific landmark helps to produce saplings of rare medicinal plants that are
Dabur Worldwide
holistic lifestyles and an interest in herbal products. Dabur has been in the
Africa
o A special herbal health care and personal care range successfully selling in
markets of the Middle East, Far East and several European countries.’
o Inroads into European and American markets that have good potential due
governance standards for listed companies through the Clause 49 of the listing
to a strong bond of trust with the Company’s stakeholders. Dabur understands the
making process. In this pursuit, Dabur has already put in place systems and
procedures and is fully compliant with the revised Clause 49 well before it
In Dabur India Limited knowledge and technology are key and efficiency.
the world. It will also cut down costs and increase profitability. Information
Technology in a big way. resources which have helped the Company achieve
higher levels of excellence This will help in integrating a vast distribution system
SAP-ERP.
take care of all high value purchases across the company. The CPPD is housed at
the Kaushambi Corporate Office (KCO) and is headed by the head- CPPD. Low
guide and oversee the purchasing function at the KCO. The purchase committee
Head – CPPD
Head – Marketing
of errors.
Chairman
(Vivek C Burman )
Heads (Marketing)
Health Supplements
Dabur Chyawanprash
Dabur Chyawanshakti
Glucose-D
Digestives
Hajmola Yumstick
Anardana
Hajmola
Hajmola Candy
Pudina hara
Dabur Hingoli
Natural Cures
Shilajit Gold
Nature Care
Ring Ring
Itch Care
Back-aid
Shankha Pushpi
Dabur Balm
Sarbyna Strong
Baby Care
Hair Care-Oil
Amla Hair Oil
Skin Care
Gulabari
Oral Care
Babool Toothpaste
Dabur Red Toothpaste
Real
Real Active
Homemade
Lemoneez
Capsico
Dashmularishtha
Ashokarishtha
Lauhasava
Mahanarayan Tail
Juritap
Madhuvani
Lavan Basked
Founding Thought: “ What is that life worth which cannot bring comfort
to others.
Vision: “ Dedicated to the health and well being of every household”.
Products Company”.
4.11 Core Values
People Development : People are the most important asset. Add value
reward excellence.
In India, the Company’s business is carried out by three Strategic Business Units
(SBUs) namely:
Dabur Foods Limited as a wholly owned subsidiary with a share of 10% in its total
sales.
Food
10% CHD Food
8%
CHD
CCD CCD
82%
RESEARCH
METHODOLOGY
5. RESEARCH METHODOLOGY
Research is an organized inquiry designed and carried out to provide information to solve
the problem. The fact, search is an art of scientific investigation of a certain problem.
pertinent questions by the use of the scientific methods gathering and interpreting
information”.
a. Sample size:
Sample size is 50. Data was analyzed by surveying employees from different
departments.
b. Sample design:
This part is done through discussing and analyzing with my project guide and
c. Mode of analysis:
2) To find out whether the employees are satisfied with the present
The title of the study is ‘Performance Appraisal’ at Dabur India Limited, Ghaziabad
(U.P)
4) To find out the problems faced by the staff in preparing their BBO’s (Business
Building Objective).
1) The opinion of staff and manager are often in opposition, causing de-motivation.
2) The process is usually manager driven and the staff member is expected to be
3) The process usually involves manager giving their opinion and the staff member
5) The process is usually done in a rushed manner to meet the budget development
Data Collection is the collection of necessary detail to gain further information. This
A. Secondary data:
data collection.
Field Work:
Fieldwork is done for the purpose of collection of data. The fieldwork involved here are:
Regular research to gather information on the relevant topic and have them
For getting proper guidance for the project, often discussion with the guide.
6. HUMAN RESOURCE AT DABUR
Dabur places great deal of confidence on its excellent pool of human resources, which it
realizes is the key to its further growth strategy. The company continued its efforts to
further align its HR policies, processes and initiatives to meet the business needs.
structure across all the groups company’s operations. This will enable seamless
transaction s between domestic and overseas position. Also the integration of the
personnel of the erstwhile Family Products Division (F.P.D) & Healthcare Products
Division (H.C.P.D) was implemented efficiently to suit the requirements well within
Dabur implements performance metrics for all key positions based on two aspects
of the Balanced Score Card Approach- Financial and Internal Business Process.
This approach clearly outlines the expectation from each position and will be
upgraded to include two more aspects for any key managerial positions in future.
Center”(A.D.C) approach to all positions from staff to officer cadre and also at the
senior levelsto objectively identify, develop and promote the talent from within,
employees.
To encourage learning, the Company is planning to set-up a learning center,
which will be equipped with a library, I.T & Web based sources of knowledge. It
Dabur is committed to attract fresh talents. Towards this end, the company
against agreed targets. The personnel practitioners would be most likely to be involved in
designing the procedures, leaving the line managers normally to administer the process.
Performance Appraisal is the systematic evaluation of the individual with respect to his or
her performance on the job and his or her potential for development.
system:
management process.
used for several purposes. The main purposes of employee assessment are:
To decide upon a pay raise where regular pay scales have not been fixed.
Written report: The appraiser writes about the strengths, weaknesses, previous
Graphic Rating Scale: This is a popular appraisal technique and it lends itself
initiative. The appraiser would go through the set of factors rating them,
for e.g., on a scale 1 to 5 where the highest number would denote the best
rating.
other individuals.
and commitment.
subordinate’s performance than his or her superior. Subordinates can assess the
Where superiors, subordinates and clients, make the appraisal it is called 360-
Quality: The degree to which the process or result of carrying out an activity
maximized in the sense of getting the highest gain by minimizing the losses.
Need for Supervision: The degree to which a job performer can carry out a job
function.
Halo Error: A halo error takes place when one aspect of an individual’s
measures and encouraging raters to guard against the halo effect are the two
Leniency: Every evaluator has his own value system, which acts as a standard
Central Tendency: This occurs when the evaluator assigns average or middle
ratings to the employees. The attitude of the rater is to play safe. This safe-
playing attitude stems from certain anxieties and doubts about the behavior of
high or low scores are given only to certain individuals or groups based on the
rater’s attitude towards the rate. Age, sex, race and friendship biases are
previously held beliefs. If supervisor, for example, has a belief that employees
hailing from one particular region are hard working, his subsequent rating of
similar rating for the current period although the demonstrated behavior does
held in high esteem, and underrating employees in lower level job or jobs held
in low esteem.
Rating Scale: This is the simplest and most popular technique for
operation, and the like. Each scale ranges from excellent to poor. The rater
employee and his or her job is prepared in two columns i.e., a ‘Yes’ and a
‘No’ column. All that the rater should do is tick the ‘Yes’ column if the
negative. After ticking off against each item, the rater forwards the list to
iii) The jobs that’s the employee is now able or qualified to perform,
The strength of the Essay method depends on the writing skills and
analytical ability of the rater. A problem with this method is that the ratees
period under review, and the appraisee is given the necessary assistance
career.
The figure outlines the performance appraisal process. Each step in the process is
crucial and is arranged logically.
Objectives of
Performance Appraisal
Establish Job
Expectations
Design an
Appraisal Program
Appraise
Performance
Performance
Interview
Enhancement Plan (CEP) at the end of the year. CEP forms the core of
Evaluation of individual on
Assessment parameters
performance appraisal by their immediate supervisor and then reviewed by latter’s boss.
The performance appraisal system followed at Dabur is ‘Rating Method’ and ‘Action by
Objectives Method’.
8.2 Mechanism
table.
vi. The individual development form is filled by the Appraisee, which is further
Finally, Contribution Enhancement Plan discusses rating for deciding upon the
Annual Rewards
Promotions
plan training and development activities. The system will ensure that all
management staff employees are aware as to what is expected from them. This is
decides revision in fixed pay and Contribution Enhancement Plan (B) is concerned
ii) To establish a system that is fact based and minimizes subjectivity in the
company.
employee and his/her superior. These are tangible business targets, which are
measurable.
The first stage is for the person initiating the review cycleto understand the
business plan so that there is clarity about the direction and priorities of the
organization. This will help ensure that individual BBO’s support the overall
business plan.
The employees must prepare in advance his/her draft objectives for the next year
and contribution against objectives set for the past year. The same need to be
carried by the appraisee for discussion with the appraiser. The appraiser will also
come prepared with BBO’s (both past and future) for the employee. At the
meeting they will discuss the year ahead and seek agreement on various
objectives. During the same meeting they will also discuss the contribution
against the past year’s BBO’s. Once the objectives for the next year are set and
agreed upon the same need to be communicated to the employee in writing. The
assessment year.
and skills, training and development needs and plans will be joint responsibility if
the appraisee and the appraiser. The reviewer needs to be satisfied that the key
In the mid of the assessment year the appraiser and the appraisee should meet to
review the progress against the set BBO’s. This should include a discussion of an
ensure the annual assessment will be fair. This should be recorded in writing and a
The Contribution rating is to be done on a 5-point scale for each set BBO. Their
ratings are as follows:
to assess the appraise on traits/skills. The appraiser will pick the relevant
traits/skills must be chosen after careful thought and thereafter rated on 5-point
Skills/Traits Ratings
Strongly Demonstrated 5
Fairly Demonstrated 4
Present but not constantly demonstrated 3
Require significant development 2
Not up to the expectation 1
for Appraise and Appraiser. This is a critical and final stage of the entire CEP and
After evaluation under Contribution Enhancement Plan (B), variable for each
executive is compared through (CEP B). Variable pay is a lump sum amount to be
% of fixed amount if
Criterion
criterion is 100 fulfilled
Company’s performance 33%
100%.
9. TRAINING AND DEVELOPMENT
Dabur should hire professionals from outside to head key positions to become a player of
repute. In 1998, business was not big and being a family-owned company, there were
issues in hiring. Dabur was hiring literally at the rate of 20-30%. They started hiring from
campuses only in 1996-97. They went to the campuses and carried out serious brand
building exercise. Today their lateral hiring has come down to around 10-15%. Dabur
expanded their business and went to IIM for hiring. They also evolved new strategies and
a more structured hiring process. This was a huge success and they hired close 100
people in the last two years. The attrition rate at management level is 10% while at the
field staff level its 16%. Dabur has also introduced Esops for freshers to address the
retention issue right at the entry level. Currently, the annual training spend is around
Rs 1.5 crore.
Training and Development plays a vital role in CEP, which pertains to identification of
training needs through a joint process of discussion between Appraise and Appraiser. The
employee himself does this through guidance, feedback counseling and task force
Q1. Do you think that Performance Appraisal is essential for the employees of the
company?
a) Fully
b) Partially
c) Not at all
Partially
20%
Fully
Partially
Not at all
Fully
80%
Analysis and Interpretation:
It shows 80% of the employees agree that performance appraisal is essential for the
employees of the company and 20% of the employees partially agree.
Currently annual appraisal system in Dabur India Limited is carried out for the employees
at executive levels and above only. The target set may be reviewed quarterly so that
strengths and weaknesses, if any, can be assesses and remedial measures suggested
accordingly.
Q2: Performance appraisal has been described as the responsibility, which is not liked
by the superiors. Do you think so?
a) Yes
b) Partially
c) Not at all
Yes
Not at all 27% Yes
27%
Partially
Not at all
Partially
46%
Analysis and Interpretation:
46% executives say that they consider performance appraisal as the responsibility they
liked the least. 27% executives agree that it is a responsibility not liked by them and
remaining 27% denies about any such probability.
Considerable amount of time is spent for getting the appraisals done as per the existing
system. The company should improve the existing system by designing and
implementing departmental performance review system on a quarterly basis.
Q3: Do you agree that self-appraisal prior to performance appraisal facilitates you to
get high ratings?
a) Completely
b) Partially
c) Not at all
Not at all
27% Completely
27%
Completely
Partially
Not at all
Partially
46%
*
Analysis and Interpretation:
45.5% of the employees say partially self-appraisal facilitates to get high ratings, 27.3%
employees agree completely and other 27.2% say self-appraisal does not help in high
ratings in performance appraisal.
Many FMCG companies (eg. Britannia) have implemented the self-appraisal system.
This has proved helpful in identifying the needs for in-house group
discussions/counseling methods/training and development programs.
Q4: Does your supervisor give you effective feedback on a regular basis?
a) Yes
b) Depends on the employees
c) Not at all
100
90
80
70
60
Percentage 50
40
30
20
10
0
Yes Depends on the Not at all
employees
Analysis and Interpretation:
It is clear in the graph that 100% of the employees say that the superior gives them
effective feedback on a regular basis.
Any company should give feedback to the employees periodically. They can also extend
proper diagnostic tips/ counseling methods at the required level.
Q5: Do you think that performance appraisal is the tool that improves employees’
performance level?
a) To a great extent
b) To some extent
c) Not at all
The graph shows 74% employees agree that up to a great extent, 18% say that to some
extent and 8% of the employees believe performance appraisal not at all improves
performance appraisal.
Currently the company’s existing appraisal system is on annual basis. This may be
reviewed on a quarterly basis, which will help in assessing the strengths and weaknesses
of executives and role modifications can be suggested accordingly.
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Consistently Occassionally Never
Opinion of employees
Analysis and Interpretation:
The graph shows 100% of the employees are consistently capable of attaining their set
goals.
The target achieved by the employees may be vis-à-vis the target achieved last year. The
company should endorse proper diagnostic mapping for role modifications/ training and
development needs.
Q7: To what extent is the Dabur India Limited making progress towards its mission
and goals?
a) To a great extent
b) To some extent
c) No opinion
To some
extent
To some extent
18%
To a great extent
No opinion
To a
great
extent
82%
Analysis and Interpretation:
In this graph 82% of the employees say that Dabur India Limited is making progress
towards its mission and goals to a great extent and 18% employees say that only to some
extent company is making progress towards mission and goals.
For the further progress of company’s mission and goals organizational planning and
development department should be involved for quarterly analysis of the feedback
received.
Q8: Do you get merit raise when the performance evaluation indicates that you are
meeting the set standard on the job?
a) To a great extent
b) To some extent
c) Not at all
Not at
all
10% To a great extent
To
some To some extent
extent Not at all
20%
To a
great
extent
70%
Apart from the merits awarded based on the performance indicators, HR should introduce
system for proper recognition rewards to such employees.
Q9: Do your co-workers and superiors help you to cope up with your poor
performance?
a) To a great extent
b) To some extent
c) Not at all
To a To some extent
great To To a great extent
extent some Not at all
53% extent
47%
Dabur India Limited can also concentrate on designing and implementing proper in-house
counseling program through group discussions/ personal interaction.
Q10: In your opinion to what extent are the superiors responsible for the progress of
Dabur India Limited?
a) To a great extent
b) To some extent
c) Not at all
Not at To
all some To some extent
35% extent To a great extent
28%
Not at all
To a
great
extent
37%
The graph shows 37% of the employees believe to a great extent superiors are responsible
for the progress, 28% are responsible to some extent and 35% say the superiors are not at
all responsible for the progress of the company.
For the progress of the company the performance appraisal of the top-level management
are also to be carried on a quarterly basis. Competency skills are to be assessed and
effective role modification areas are to be suggested.
QUESTIONNAIRE ON
PERFORMANCE APPRAISAL
10.1 QUESTIONNAIRE ON PERFORMANCE APPRAISAL
Name:
Age:
Gender:
Qualification:
Experience:
Department:
Q1: Do you think that Performance Appraisal is essential for the employees of
the company?
a) Fully
b) Partially
c) Not at all
a) Yes
b) Partially
c) Not at all
a) Completely
b) Partially
c) Not at all
Q4: Does your supervisor give you effective feedback on a regular basis?
a) Yes
c) Not at all
Q5: Do you think that performance appraisal is the tool that improves
a) To a great extent
b) To some extent
c) Not at all
Q6: Are you capable of achieving the goals set for you?
a) Consistently
b) Occasionally
c) Never
Q7: To what extent is the Dabur India Limited making progress towards its
a) To a great extent
b) To some extent
c) No opinion
Q8: Do you get merit raise when the performance evaluation indicates that you
a) To a great extent
b) To some extent
c) Not at all
Q9: Do your co-workers and superiors help you to cope up from your poor
performance?
a) To a great extent
b) To some extent
c) Not at all
Q10: In your opinion to what extent the superiors responsible for the progress of
a) To a great extent
b) To some extent
c) Not at all
FINDING
11. FINDING
employees at the executive and the above level only. The target may be reviewed
on a quarterly basis.
Superiors should give feedback to employees periodically. They can also provide
Dabur has an existing system on annual basis. They can review on quarterly basis.
Dabur India Limited can endorse proper diagnostic mapping for role
such employees.
Competency skills should be assessed and effective role modification areas can be
In order to have a better liaison within the co-workers and their superiors the
becomes necessary that the management should try to analyze the strengths and
etc.
CONCLUSI
ON
13. CONCLUSION
In the new millennium when the corporate world is designing newer techniques for
developing employees and retaining them, Dabur India Limited is no way behind and the
organizational structure is such that people works hand in hand to align the organizational
productivity, their promotion, transfer, training and development needs etc. The
organization has implemented the evaluation process not only to evaluate the
performance of employees but also for their increment and promotion. The company
wholly based on individuals’ contribution towards the organization. But there are some
loopholes in the system that should be analyzed and corrective measures should be taken.
To sum it up, this project has provided me with opportunities to learn different areas of
the HR function and has given me stepping-stones to climb up to reach the summit of HR
For the purpose of this study, some broad sources of literature were referred to:
Textbooks
Internet Portals
www.dabur.com
www.google.com
www.humanresourcesmagazine.com.au
Intranet of Dabur