Professional Documents
Culture Documents
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION (2006-08)
SUBMITTED BY:
NEETU SINGH
SUBMITTED TO:
Mrs. SHANU KHATRI
ACKNOWLEDGEMENT
I readily acknowledge my indebt ness to my parents whose support, dedication and honest efforts have given me an immense help in doing this project. It gives me immense pleasure to express my deep sense of gratitude and appreciation to my external guides Mr. S.K. Mathur, Mr. Pandey, Mr. Mahak Singh, Mr. Deepak, and Mr. Dubey whose constant encouragement and valuable suggestion gave back bone support in completing this project. I take the opportunity to thanks to Mrs. Shanu Khatri for motivating, encouraging, guiding and supporting at every step and sparing his valuable time for me. Last but not the least I record my sincere thanks to all beloved and respectable persons who helped me and could find any separate mention. Above all I praise GOD the most beneficial, the most merciful that I have been able to complete my training project successfully.
NEETU SINGH
DECLARATION
I NEETU SINGH student of MBA III sem. of IMS DEHRADUN hereby declare that this project report PERFORMANCE APPRAISAL is written and submitted by me under the guidance of Mrs. Shanu Khatri is my original work. The entire analysis and conclusion of this report are based on the information which is collected by me during the training period. The empirical finding in the report are based on the data collected myself while preparing this project. I have not copied any thing from any source or other project submitted for the similar purpose, if any.
NEETU SINGH
CONTENT
ACKNOWLEGEMENT DECLARATION
Chapter-1: INTRODUCTION ABOUT BRITANNIA Company overview Company Profile Board of Directors Management team Mile stones History of Biscuits Activities of the company
PANTNAGAR UNIT
Introduction Company Profile SWOT Analysis 5S of BIL Department of the company Safety policy of the company
CHAPTER-2: RESEARCH METHODOLOGY Sample Size Method of Sampling Area of work Method of Data collection Objective of the study Period of the study Scope of the study Limitation of the study Sources of data collection
CHAPTER-3: PERFORMANCE APPRAISAL Definition of Performance Trends, Objectives,& Features of Performance Appraisal Process & Methods of Performance Appraisal 360 Performance Appraisal Key elements of Performance Appraisal Problems of Performance Appraisal Process of Performance Appraisal Process of Appraisal in Britannia Industries Limited
CHAPTER-4: ANALYSIS & FINDINGS CHAPTER-5: RECOMMENDATIONS CHAPTER-6: CONCLUSION CHAPTER-7: BIBLIOGRAPHY
COMPANY OVERVIEW
The story of one of Indias favorite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs.295. The company we all know as Britannia today.
The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannias business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of service biscuits to the armed forces. As time moved on, the biscuit market continued to grow and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parrys who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indian ness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs.100crores revenue mark.
On the operations front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity Eat Healthy, Think Better and made its first foray into the dairy products market. In 1999, the Britannia Khao, World Cup Jao promotion further fortified the affinity consumers had with Brand Britannia. Britannia strode into the 21st Century as one of Indias biggest brands and the pre-eminent food brand of the country. It was equally recognized for its innovative Approach to products and marketing: the Lagaan Match was voted Indias most successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became Indias most successful product launch. In 2002, Britannias New Business Division formed a joint
10
Venture with Fonterra, the worlds second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. Was born. In recognition of its vision and accelerating graph, Forbes Global rated Britannia One amongst the Top 200 Small Companies of the World, and The Economic Times pegged Britannia Indias 2nd Most Trusted Brand. Today, more than a century after those tentative first steps, Britannias fairy tale is not only going strong but blazing new standards, and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannias shareholders. The companys offerings are spread across the spectrum with products ranging from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of almost one-third of Indias one billion populations and a strong management at the helm means Britannia will continue to dream big on its path of innovation and quality. And millions of consumers will favor the results, happily ever after.
11
12
13
COMPANY PROFILE
Registered office of Britannia Industries Limited is situated in West Bengal. This company is registered under Companies Act, 1956. Britannia biscuits Company Limited was originally incorporated on 21st March 1918under Indian Companies Act under the name The Britannia Biscuits Company Limited under section 21 of Companies Act and approval of Central Government. The main aim of the Company is to make available good and improved quality biscuits to each and every part of the country. The Company is perusing for ISO14001certificate and it is ISO 22000 certified. The Company was established at the Pantnagar branch on 21st May 2005 mainly for production with a production coverage area of approximately 20 acres. The control of management is through Board of Directors. The Companys head and registered office and works place are located at the below mentioned addresses:
Works Place
:(a) Britannia Industries Limited 33, Industrial Area Lawrence Road, Delhi- 110035
(b) Britannia Industries Limited Plot No.1, Sector- 1 Integrated Industrial Estate Pantnagar, Rudrapur- 263153
14
(e) Britannia Industries Limited Ready road (East), Mazagaon, Mumbai- 400010
15
BOARD OF DIRECTORS
NAME
Mr. Nusli N Wadia Ms. Vinita Bali Mr. George Casala Mr. Keki Dadiseth Mr. Avijit Deb Mr. Stephan Gerlich Mr. A K Hirjee Mr. Nimesh N Kampani Mr. S. S Kelkar Dr. Vijay Kelkar Mr. Pratap Khanna Mr. Jeh Wadia 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
16
MANAGEMENT TEAM
RICHA ARORA AMITAVA MUKHERJEE PURNENDU ROY V. MAD VINOD MENON GAUTAM BANERJEE ASHOK KUMAR GUPTA SAROJ KUMAR CHAKRABORTY Dr. K.N. SHASHIKANTH TS PURUSHOTHAMAN
General Manager Marketing National Sales Manager Head of R&D Company Secretary & Head of Legal Head of Internal Audit & Projects General Manager Materials General Manager Accounts Planning General Manager & Head of Technical Corporate Quality Assurance Manager Corporate Head IT & Systems
17
MILE STONES
1892 1910
The Genesis Britannia established with an investment of Rs. 295 in Kolkata Advent of electricity sees operations mechanized
1921
Imported machinery introduced; Britannia becomes the first company East of the Suez to use gas ovens
1939- 44
Sales rise exponentially to Rs.16,27,202 in 1939 During 1944 sales ramp up by more than eight times to reach Rs.1.36crore
1975 1978
Britannia Biscuit Company takes over biscuit distribution from Parrys Public issue Indian shareholding crosses 60%
1979
1983
1989
1992
1993
Wadia Group acquires stake in ABIL, UK and becomes an equal partner with Group Danone in BIL 18
1994
1997
Re-birth new corporate identity Eat Healthy, Think Better leads to new mission: Make every third Indian a Britannia consumer
BIL enters the dairy products market Britannia Khao World Cup Jao a major success! Profit up by 37%
1999
2000
2001
BIL ranked one of Indias biggest brands No.1 food brand of the country Britannia Lagaan Match: Indias most successful promotional activity of the year Maska Chaska: Indias most successful FMCG launch BIL launches joint venture with Fonterra, the worlds second largest dairy company
2002
Britannia New Zealand Foods Pvt. Ltd. Is born Rated as One amongst the Top 200 Small Companies of the World by Forbes Global Economic Times ranks BIL Indias 2nd Most Trusted Brand Pure Magic Winner of the World star, Asia star and India star award for packaging
2003
Treat Duet- most successful launch of the year Britannia Khao World Cup Jao rocks the consumer lives yet again
19
2004
Britannia accorded the status of being a Super brand Volumes cross 3,00,000 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 chant! Britannia launched Greetings range of premium assorted gift packs The new plant in Uttarakhand, commissioned ahead of schedule. The launch of yet another exciting snacking option Britannia 50-50 Pepper Chakkar
2005
20
Britannia the biscuit leader with a history-has withstood the tests of time. Part of the reason for its success has been its ability to resonate with the changes in consumer needs-needs that have varied significantly across its 100+ year epoch. With consumer democracy reaching new levels, the one common thread to emerge in recent times has been the shift in lifestyles and a corresponding awareness of health. People are increasingly becoming conscious of dietary care and its correlation to wellness and matching the new pace to their lives with improved nutritional and dietary habits. This new awareness has seen consumers seeking foods that complement their lifestyles while offering convenience, variety and economy, over and above health and nutrition. Britannia saw the writing on the wall. Its Swasth Khao Tan Man Jagao (Eat Healthy, Think Better) reposition directly addressed this new trend by promising the new generation a healthy and nutritious alternative-that was also delightful and tasty. Thus, the new logo was born, encapsulating the core essence of Britannia healthy, nutritious, and optimistic and combining it with a delightful product range to offer variety and choice to consumers.
21
OUR PRODUCTS
Nutri Choice Sugar Out Sounds like yesterday when people commented that healthy foods meant compromising on the taste. Nutri Choice Sugar Out is the most novel product range to have been introduced in the market. The product is not just sweet but tastes great, and yet contains no added sugar. This is because Nutri Choice Sugar Out is sweetened with Sucralose, derived from sugar, which provides the same sweetness as any other biscuit, without the added calories of sugar. This range is available in 3 delicious variants namely Lifetime, Chocolate cream, and Orange cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar related ailments. We are sure that you will be pleasantly delighted with its great taste and equally surprised to know that it has no added sugar. Dont be taken for a ride when you read Sugar Free label on many biscuit packs marketed in India or abroad. Even with 100% no-added sugar, wheat-cereals in biscuits have their own natural sugar content. Britannia has chosen to represent these biscuits with No Added Sugar claim, as there is no added sugar in the processing of Nutri Choice Sugar out.
Nutri Choice Digestive Biscuit Nothing can be more difficult than making small efforts in our daily life towards healthy and active living. 24/7 we are engrossed in our busy schedules; skipping meals, missing walks, along with inadequate sleep and frequently eating-out, all take a heavy toll on our health. At least with the new and improved Nutri Choice Digestive 22
Biscuit, we have one less thing to worry about. Made with 50% whole-wheat and packed with added fiber (10% of our daily dietary needs), these delightfully tasty biscuits are amongst your healthiest bites of the day. In your next visit to a shop just look out for its Golden-green international carton pack. Try one and youll know that youve made one smart choice Nutri choice.
50-50 Jodi Banao Offer With a brand name like 50-50, can the product be anything but fun. And so to enhance this Masti 50-50 has now brought the Jodi Banao offer. With assured gifts like Friendship Bands and Mobile Slings which are a craze with the youth, and grand prizes like Mobile Phones, Laptops, Sunglasses, Wrist Watches and a Trip to Paris, 5050 has brought in all the elements that keep you engaged in fun. And all these prizes with the unique taste experience of 50-50 products.50-50 ke saath Apni Jodi Banao
Treat Fruit Rollz All kids who have relished the yummy creamy treasures of Britannia Treat in exciting flavors, have yet another reason to celebrate! Britannia Treat launches the amazingly yummy Treat Fruit Rollz!! These tasty soft rolls are filled with real fruits and provide a healthy yet mouth-watering treat to the kids. Fruit Rollz comes in four masti fruit flavors Juicy Apple, Strawberry Surprise, Tangy Orange and Delicious Dates! Want to know a little secret? They make the best tiffin treats! So during snack time what better than to munch on the delicious and healthy Fruit Rollz and discover the yummy fruit flavor from within
23
the shells. Keeping up with Britannias platform of taste bhi, health bhi, Fruit Rollz is indeed a yummy snacking option for kids, while keeping the Moms assured about the goodness provided by the fruit filling. So go on and treat yourself to the lip-smacking snack!
New Britannia Milk Bikis Milk Bikis, the favorite growth partner of Kids, now brings greater value and delight to all with its new product and pack design. Recently re-launched in its existing Southern & Eastern markets, and extended across India, the new Milk Bikis is all set to add excitement and appeal to nutritious food. Whoever said that good food needs to look dull and boring, will just have to take a look at Milk Bikis. With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit prompts the Kids will love it reaction amongst mothers. The milk goodness in the recipe is now enhanced with SMART NUTRIENTS 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids. The premium packaging, besides appealing to kids, also ensures that the biscuits remain fresh and crisp. So, whether its breakfast time or snack time at school, rest assured that kids will look forward to munching these crunchy, milky biscuits which even helps in their development. And yes, adults wont be far behind in reaching out for a pack! Britannia Marie Gold Doubles Everybodys favorite Marie biscuit now comes in a completely new avatar! Recently launched in Tamil Nadu, Britannia Marie Gold Doubles is all about doubling expectations and experience. Naturally, everything about it is new and exciting. This special variant of Marie, through a patented production process, offers three delicious layers in a new flavor concept with the same old 24
crispiness and a subtle new taste. The shape of the new Marie Gold Doubles biscuit is completely altered and nowhere resembles the classic round Marie biscuit. The premium packaging is also a breakthrough design with an outer sleeve and unique shape. So whether people favor the biscuit themselves or gift it, Britannia Marie Gold Doubles is definitely double the enjoyment!
Britannia 50-50 Pepper Chakkar The launch of the latest 50-50 variant left everybody guessing What it eez? From TV ads, radio, outdoor and in-store display materials to events, a website and SMS and email blasts, traditional and new media were blended synergistically to create excitement and curiosity about the unique taste of the biscuit. The tangy and distinctive pepper flavored biscuit, thats thin and crispy and more like a snack, caught the imagination of a younger audience craving something to nibble on. The 50-50 Pepper Chakkar launch is truly a case of leveraging the marketing mix to best advantage. More Power to Britannia Treat! In a one-of-its-kind tie-up with the immensely popular kids show Power Rangers on Toon Disney, Britannia Treat created a huge buzz amongst kids. The brand activity targeted children in three cities Delhi, Mumbai and Bangalore at various touchpoints such as schools, malls, residential colonies and amusement parks. The idea behind it was to bring fun and adventure into the Britannia Treat brand of cream biscuits with the help of a unique new collectible toy the Power Rangers Shooter. These exciting new toys were available with packs of Britannia Treat, and kids had to collect them to solve the Power Rangers contest. An eye-catching float, specially designed to promote this contest, was moved around these cites and became the pulse point of Shooter Mania. At the end of
25
10 days, the activity touched 225 schools across the three cities and reached more than 50,000 kids and got every kid talking about Britannia Treat.
Britannia Tigers Alti Palti Offer for Children Alti Palti was an exciting offer to go with the most popular biscuit in the country Britannia Tiger. Children love lenticular or 3D picture collections and Tiger biscuits gave them just that. With the purchase of Britannia Tiger, kids collected lenticular gifts such as rulers, book labels, bag tags and stickers. Each gift had the animated Tiger mascot on it doing crazy things like skateboarding, cycling, dancing and more. As part of the promotion, a life-size Tiger mascot visited select schools and distributed the 3D collection to the lucky children. They even got to photograph themselves with their favorite Tiger! This exciting offer ran at retail stores across the country. Buzz was created with in-store display materials like attractive dispensers and branded posters all based on the Alti Palti theme. The Alti Palti craze caught on like wildfire amongst the kids just like Britannia Tiger biscuits!
26
The Company achieved these results despite significant increases in input cost, particularly sugar, fuel and oils, coupled with aggressive pricing in the industry. Your Companys focused initiatives on commercializing market place opportunities, supply chain efficiencies and overall cost management resulted in its top line growth and profitability. Operating margin at 10.3% in 2005-06 compared with 10.9% in the previous year was impacted by the inflation in input costs.
27
Despite stiff competition, your Company stabilized and held its overall market share at 31.7% in volume and 38.8% in value for the last year. Exports turnover during the year was Rs111.71 million against Rs71.65 million in 2004-05, a growth of 56%.
Compensation and amortization of VRS costs Rs.111 million Profit on sale of properties Rs.117 million
After considering all the exceptional items, Profit before tax and Net Profit works out to Rs.2,007 million and Rs.1,464 million respectively. Earnings per Share are Rs.59.96 for 2005-06. Britannia believes in giving the best value to consumers through its brands and constantly looks for ways to enhance the overall consumer experience. 2005-06 witnessed a boost in product
28
innovation and renovation and as many as six new launches were executed and well received in the market. The Companys largest brand Tiger, was successfully renovated with the re-staging of Tiger Glucose and the fortification of Tiger Creams. New variants were introduced in Treat Duet and Pepper Chakkar was launched under the 50:50 brand umbrellas. The Compay also introduced Marie Gold Doubles in a totally new to market format and a new range Greetings an assortment of biscuits was introduced during Diwali, targeted at the large gifting opportunity.
The Company also seized the growing opportunity in adjacent categories like Cakes and the launch of Cup Cakes was the first step in strengthening this business.
Additionally, new packaging formats were introduced in several markets to tap into attractive price points from consumers perspective. Britannia will continue to invest in its brands and deliver growth through an emphasis on brand activation, anchored by new product launches.
29
HISTORY OF BISCITS
Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves munching on biscuits, but do they know how biscuits began? The history of biscuits can be traced back to a recipe created by the Roman chef Apicius, in which a thick paste of fine wheat flour was boiled and spread out on a plate. When it had dried and hardened it was cut up and then fried until crisp, then served with honey and pepper. The word Biscuit is derived from the Latin words Bis (meaning twice) and Coctus (meaning cooked or baked). The word Biscotti is also the generic term for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which, because of their low water content, were ideal food to store. As people started to explore the globe, biscuits became the ideal traveling food since they stayed fresh for long periods. The seafaring age, thus, witnessed the boom of biscuits when these were sealed in airtight containers to last for months at a time. Hard track biscuits (earliest version of the biscotti and present-day crackers) were part of the staple diet of English and American sailors for many centuries. In fact, the countries which led this seafaring charge, such as those in Western Europe, are the ones where biscuits are most popular even today. Biscotti is said to have been a favorite of Christopher Columbus who discovered America! Making good biscuits is quite an art, and history bears testimony to that. During the 17th and 18th Centuries in Europe, baking was a carefully controlled profession, managed through a series of guilds or professional associations. To become a baker, one had to complete years of apprenticeship working through the ranks of apprentice, journeyman, and finally master baker. Not only this, the amount and quality of biscuits baked were also carefully monitored. The English, Scotch and Dutch immigrants originally brought the first cookies to the United States and they were called teacakes. They were often
30
flavored with nothing more than the finest butter, sometimes with the addition of a few drops of rose water. Cookies in America were also called by such names as jumbles, plunkets and cry babies. As technology improved during the Industrial Revolution in the 19th century, the price of sugar and flour dropped. Chemical leavening agents, such as baking soda, became available and a profusion of cookie recipes occurred. This led to the development of manufactured cookies. Interestingly, as time has passed and despite more varieties becoming available, the essential ingredients of biscuits havent changed like soft wheat flour (which contains less protein than the flour used to bake bread) sugar, and fats, such as butter and oil. Today, though they are known by different names the world over, people agree on one thing nothing beats the biscuit!
31
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 behaviorsdont waste timeJoin us!!!
32
Finance and IT
33
1.
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.S Brothers and company, Gupta and company and Britannia biscuits company and all or any of the lands, buildings, plant and machinery, 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.
2.
To manufacture, buy, sell, prepare for market and deal in farinaceous foods for all kinds and in
particular biscuits, breads, cakes and confectionary and food of every description suitable for individuals.
3.
To carry on business as millers and grain merchants, dealers in flour, rice and other produces.
4.
To carry on business as bakers and confectioners and to manufacture buy, sell, refine prepare,
grow, import export and deal in provisions of all kinds of wholesale and retail, whether solid or liquid.
5.
To make, accept, endorse, discount and issue promissory notes, bills of exchange and other
34
35
36
COMPANY PROFILE
1) Bhumi poojan of Britannia industries limited was on 20th may 2004. 2) Machinery was set up on 23rd march 2005. 3) Production trial was taken on 23rd march 2005 itself. 4) Actual production was started on 1st April 2005. 5) First dispatch of finished goods was done on 20th April 2005. 6) Biggest plant of the company is plant number two. 7) The company is set up in an area of approximately 20 acres. 8) Minimum production of the company is 180 tons per day. 9) Maximum production is 300 tons per day. 10) Control of management is through Board of Directors. 11) It is a public limited company. 12) The auditors of the company are Lovelock & Lewes. 13) The bankers of the company are: State Bank of India. Standard Chartered Bank. ABN Ambro Bank. City Bank. The hongkong and shanghai banking corporation limited. Bank of America. HDFC Bank limited. ICICI Bank limited.
37
3) Plant III a) fifty- fifty (50-50) i) ii) iii) 50-50 50-50 Maska Chaska 50-50 pepper chakker
38
39
40
SWOT ANALYSIS
STRENGTH
Goodwill of company Financially a very strong company Effective well designed and developed production and marketing network. Superior quality and service to provide maximum benefits to customers. The family environment in the company. Dedicated work force. Continuous growth. Market share of the company. Tax benefit to the company.
WEAKNESSES
No uniform of the officers and of the workers too. Storage capacity of the company is limited. Land is not properly utilized. Raw material is wasted at the time of unloading. Unit is situated far away from main plant. There is no board of Britannia at the entry gate.
41
OPPORTUNITY
There can be minimization of waste. There must be more efficient utilization of the raw material. in
More and more incentives should be given to workers to motivate them which help increasing the employee moral.
There can be use of the foreign technologies for efficient utilization of raw material so that the production of a biscuit can be increased.
THREATS
New entrants in the business Threats of substitute products. Availability of the other brands. Rivalry among the competitions.
Taste and preference of customers.
42
SEIR I It is sorting between waited and unwanted things in a selected area, region or domain.
SEIKETSO It means standardization which is needed to maintain SEIRI, SEITON and SEISO. It leads to use of visual management to avoid mistakes.
SHITSUKE It means discipline which is called for strict adherence to a system form our present unsystematic way.
43
HACCP CONCEPT
Identification of potential food safety problems. Determination of now and where these can be prevented. Description of what to do and training of the personnel. Implementation and recording.
HACCP PRINCIPLES
Conduct a hazard analysis Determine the HACCPs Establish Critical Limit (s) Establish a monitoring system. Establish corrective actions. Establish verification procedures Establish documentation.
HACCP
A structured application of basic rules for preventing food borne diseases.
WHY HACCP
Need for hygiene requirements (control measures) specific to food and process and their associated potential hazards. Prioritizing control measures. Need for ensuring that essential measures were correctly implemented and carried out. Need for planning of corrective measures in case of failure. Need for monitoring the process parameters to be able to control safety at all times.
44
UNIT HEAD
Human resource
Accounts
Production
Purchase
Maintenance
Quality
Officers
Officers
45
46
47
RESEARCH METHODOLOGY
When we talk of Research Methodology, 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.
As the title of the project suggests the project is about the study of the performance appraisal in the company. So my objective is that to know that how the working appraisal should be maintained in the company & which method is used in this.
Performance Appraisal has been considered as a most significant and indispensable tool for every organisation for the information it provides is highly useful in making decisions regarding various aspects such as promotions and merit increases. Thus, an attempt was made to study the Performance Technique in BRITANNIA.
SAMPLE SIZE
The sample size refers to the no. of employees selected from the co. to constitute a sample. The sample size used for study includes 80 employees from the company.
METHOD OF SAMPLING
The process employed for the sample was Random Sampling. Random Sampling is the sampling in which every person has an equal opportunity of being selected in the sample. The method is more representative of the persons as there are no personal biases. 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
48
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. To evaluate the effectiveness of appraisal system. To know the satisfaction of the employees, with the appraisal system followed in BIL.
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.
49
PERIOD OF STUDY
I did my summer internship at BRITANNIA INDUSTRIES LTD., which is one of the largest FMCG Company in India. The duration of my study was 60 days (8 weeks). My timing of work was from 9:30 A.M. to 5:30 P.M., 6 days in a week.
50
PRIMARY DATA
Primary data is that data, which is collected for the first time & thus happens to be original in character. 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. Acc. to Dessel-Data collected by other persons
All the data has been collected from internal source, that includes :a) Magazines b) Books c) Websites d) Reports e) Files f) Staff
51
52
PERFORMANCE APPRAISAL
Performance appraisal or merit rating is one of the oldest and most universal practices of management. Performance appraisal is a method of evaluating the behavior in the works pot, normally including both the quantitative and aspects of job performance. It implies assessing the performance of an employee on the job. A formal defining by C. 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, selection for promotion, providing financial rewards & other action which require differential treatment among the member of a group as distinguished from action affecting all members equally. According to Dale S. Beach: Performance appraisal is the systematic Evaluation of the individual with regard to his or her performance on the job & his potential for development. According to Shubin: evaluation is a systematic appraisal of the employees personality traits & performance on the job & is designed to determine his contribution & relative worth to the firm. According to Deal Yoder: All formal procedures used in working Organization to evaluate personalities & contribution s & potentials of group member. A formal definition of Performance appraisal is that, It is the systematic evaluation of the individual with respect to his or her performance on the job & his potential for development. A more Comprehensive definition is, Performance appraisal is a formal structured system of measuring & evaluating an employees job, 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, organization & society all benefit. Under Performance appraisal we evaluate not only the performance of a worker but also his potential for development.
53
APPRAISEE
U R R T R E A T M E N T
APPRAISER
KRAs
Routine Responsibilities
Competencies
S T R E T C H T O O L N O R M A L I Z A T I O N
T O O L S O F M A P
R E V I E W E R
Final Review
Final Score
54
DEFINATION OF PERFORMANCE
Definition of performance in MAP is based up on Key Result Areas of KRAs and Routine Responsibilities. KRAs are critical outcomes towards which effort is directed to achieve desired business results. Routine Responsibilities are significant on-going tasks or outcomes that are undertaken or delivered on day-to-day basis.
KRAs
Routine Responsibilities
Competencies
Performance Plan
Development Plan
Unique Role and Responsibility (URR) templates provide the KRAs, relative weight of KRAs and Routine Responsibilities, the competencies and their required proficiency levels for a role. The URR Template in MAP helps deliver consistency and clarity. On expected performance measures to Appraisees and Appraisers alike. MAP allows the Appraisee to define the performance measures applicable to the Appraisees situation using combination of KRAs and Routine Responsibilities. The achievement against targets sets for each of these will together constitute the Appraisees Performance Plan in the Performance Cycle or Period.
55
Feedback
Information
Positive feedback Corrective feedback Feedback focused on identifying obstacles to performance Feedback for the purpose of sharing information. 56
Coaching
MAP follows an April to March cycle and consists of three Key phases: 1. Performance and Development Planning 2. Mid Year Review 3. Final Review
The figure below provides an overview of the Performance Cycle with key dates for each phase.
Offline Performance Planning March-Mid April Normalision & score May Final Review & Feedback Appraiser ONGOING FEEDBACK Appraise Final Review & Feedback Mid April-End April
April
September-October
In certain cases, such as those involving a mid-cycle change in role to transfers etc, an Appraisee may be more than one Performance Plan in a Performance Cycle. The period that each Performance Plan covers is referred to as the Performance Period for that Performance Plan. 57
Appraiser will discuss Targets using Stretch Tool & Finalize Performance & Development Plan
58
1. Select KRAs Based on the URR assigned, the Appraisee will have a set of Essential KRAs and in addition, can select other relevant one from the list of Flexible KRAs.
Essential KRAs are predetermined and compulsory for performance of the role. Flexible KRAs are suggested as relevant for a role but are not compulsory. The Appraisee selects the appropriate KRAs.
The total number of Essential and Flexible KRAs put together cannot exceed 12. Incase the required number of KRAs in the Flexible list cannot be accommodated within the Flexible section; the Appraisee will use Optical section to add the same in his/her Performance & Development Plan.
Optional KRA Section comprises of KRAs that can be added by the Appraisee if they have not been captured in either of the above two categories and may be required in a specific location or Performance Period. As stated above, thy also include KRAs that cannot be accommodated because of the limit of 12 Essential plus Flexible KRAs. These must be included in the Appraisees plan. A maximum of 3 such KRAs can be added.
2. Set Targets and Action Plans for KRAs For each KRA: a) A specific Target must be defined by the Appraisee that quantifies or verifies the extent of achievement in a given timeframe. b) The Target thus defined should correspond to Rating 3-Meets Expectations on the 5-point Rating Scale. c) The required level of achievement for each of the remaining four ratings on the scale (1, 2, 4 & 5) must also be defined, using the target against the Rating 3 as the central point. This will prevent subjectivity while evaluating the Appraisees performance at the end of the year. 59
Targets must be defined using the Stretch Tool, by applying all Six Dimensions that determine Stretch. Along with target the Appraisee will develop an action plan consisting of specific steps required to achieve the target for each KRA. 3. Define routine responsibilities: In addition to the KRAs the appraisee will identify the relevant routine responsibilities care should be taken to insure that the appraisees performance on routine responsibilities is verifiable objectively, which would prevent subjectivity while evaluating performance later. The max of ten routine responsibilities can be selected. 4. Assign weights: The overall weightages between KRAs and routine responsibilities for a particular URR have been predefined. The appraise will propose weightage for each KRAs and routine responsibility. The weightages for each of the section of KRAs and routine responsibilities should upto 100% respectively. Weightages should be allocated keeping in mind the critically of the major and the efforts required to accomplish the same.
5. Creating development plan: Development planning in MAP focuses on building individual capability using competencies. Competences relevant to a role are pre-defined in its URR along with the desired Proficiency level. From the list of competencies identified for the role, the Appraiser will identify a maximum of three competencies as Developmental that form the basis of the Appraisees Development Plan. The Development plan will be drawn-up by the Appraisee in discussion with the Appraiser and will consist of learning initiatives such as training, cross-functional exposure, short-term assignments etc. The Appraiser will facilitate adherence to the Development Plan drawn up for the Appraisee.
60
The Development Plan concludes with the above steps. Obtain Appraisers and Reviewers Sign-off on Performance & Development Plan
At this stage, the Appraisee will discuss and finalize the Performance and Development plan with the Appraiser. Up on finalization, the Appraiser would forward the Performance and Development Plan the Reviewer for final-offs.
Extraneous circumstances that significantly impact the Performance and Development Plan of an Appraisee may during the Performance Cycle. In such situations, the Appraisee requires the Reviewers approval to edit the plan. The edited plan will be finalized with the Appraiser and Reviewers sign-off.
61
Appraiser will provide feedback on performance and guide Appraisee on future direction
Mid Year Review begins with the Appraisees self-appraisal. In the self-appraisal the Appraisee will comment on his/her current level of achievement on KRAs. Routine Responsibilities and competencies, which will then be discussed with the Appraiser for his feedback and inputs.
The Appraiser and the Appraisee will refer to documented and objective facts regarding performance Related events for a meaningful performance discussion.
62
Documentation of the performance discussion concludes the Mid Year Review phase of MAP. In case of extraneous circumstances, the Mid Year Review provides for a revision in the Appraisees Performance and Development Plan. After obtaining the Reviewers specific approval to change the plan, the Appraisee in discussion with the Appraiser would modify the plan and send the plan to the Reviewer for-off. The plan will be considered final only after the sign-off has been obtained.
The Reviewer steps into the Mid Year Review phase only if a change is required in the Performance Plan of the Appraisee.
63
FINAL RE VIEW
During the Final Review phase, the Appraiser will assess the Appraisees level of achievement on KRAs Routine Responsibilities and the demonstration of Competencies.The Final Review will be concluded in the month of April.
Final Review Process Appraisee will complete self approval and submit to the appraiser. Appraiser will review Self-Appraisal and performance outcomes of the appraisal for the performance cycle
Appraiser will provide feedback on each area of performance and development to appraisee.
Appraiser will determine rating on each KRA, routine responsibility and competency
Appraiser will determine overall score based on KRA score, routine responsibility score and the weightage assigned to each section
64
The Final Review Phase will begin with the Appraisees self-appraisal wherein he/she give a self-rating on performance parameters- KRAs and Routine Responsibilities defined in the Performance Plan and the Competencies defined in the Development Plan.
The Appraiser will review the outcomes and self-appraisal and will evaluate the Appraisee on the Performance Plan. The Appraiser will assign a Rating for each KRA, Routine Responsibility and Competency using the appropriate Rating scale.
The template provides: Unique Role name Brief description of the role KRA Competencies and their proficiency levels Overall weightage of the KRAs Section to Routine Responsibility Section
Each Appraisee would be assigned a URR by his Appraiser at the start of the Performance Cycle. This URR will be used by the Appraisee for the purpose of creating the Performance and Development Plan.
65
The URR template has two categories of KRAs that have been predetermined. 1) Essential KRAs-KRAs those are predetermined and compulsory for performance of the role. These will become part of the Performance Plan of each Appraisee who is mapped to this URR. 2) Flexible KRAs-KRAs those are predetermined and relevant to a role though not compulsory. These suggested for adoption by the Appraisee as applicable flexible KRAs give the Appraisee to choose such KRAs from the list that he/she feels would be relevant for measuring performance in the performance Cycle.
Rating Competencies
The 5-point Rating Scale for Competencies a different from the one used for KRAs and Routine Responsibilities.
The Appraisee will be evaluated on all Competencies in the URR using the Competency Scale.
Each rating on the scale has been articulated to describe the extent to which an Appraisee has displayed the behaviors described in the required proficiency level of the Competency.
Based upon the behaviors observed, the Rating that best describes the set of displayed behaviors is chosen as the Rating on that Competency.
66
67
FUNCTIONS
Identification the areas of training & development. Helps in reward allocation. Provide the opportunity to review the strange & weakness of the employees. It helps in career planning & personnel development. Helps in establishing credibility of the selection procedure. Act as a motivation factor.
1) ESTABLISMENT
OF
PERFORMANCE:
We
need
some
kind
of measures again which we are going to compare the performance of employees. some of these standards are based on job description should be clear enough to be measured & understood by everyone standers are the expectations.
69
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.
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.
3) MEASURES ACTULY PERFORMANCE: After setting standard you will some critical to measure the performance of employees.
4) COMPARE ACTUAL PERFORMANCE WITH STANDARD: This is done to see if any discrepancy exist & if so then how will it be rectified.
5) DISCUSS APPRAISAL WITH EMPLOYEE: Performance of employee is reviewed & then manager has to convince the employees about his judgment. He conduct meeting with employees for this purpose.
6) INITIAL CORRECTIVE ACTION: If there is any deviation in performance then suggestive corrective action can be provided to the employees.
70
Other method
Confidential report Easy evaluation Critical incidents Checklists Graphic rating scale Behaviorally anchored Rating scale Forced choice method MBO
71
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 employees performance conforms to the bellshaped, this method tries to remove the error of leniency or central tendency error.
10
20
30
40
50
72
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 raters biases.
Satisfactory 1 2 3 4 5 6 7 8
Unsatisfactory 9 10
73
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.
74
NEED FOR PERFORMANE APPRAISAL Provide information about the performance ranks basing on which decision regarding salary fixation, conformation, promotion, transfer & demotion are taken. To prevent grievances & indisciplinary activities. Provides information which helps to counsel the subordinate. Provides feedback information about the level of achievement & behavior of subordinate. Provides information to diagnose deficiency in employee regarding skill, knowledge, determine training & developmental need & to prescribe the means for employee growth provides information for correcting placement.
PURPOSE
To create & maintain a satisfactory level of performance. To provide information for making decision regarding lay-off, retrenchment, etc. To guide the job changes with the help to continuous ranking. To contribute to the employee growth & development through training, self & management development programmes. To facilitate for testing & validating selection tests, interview techniques through comparing their scores with performance appraisal ranks. To ensure organization effectiveness through correcting employee for standard & improved performance, & suggesting the change in employee behavior. To facilitate fair & equitable compensation based on performance. To help the superior to have a proper understanding about their subordinates.
75
76
relating to behaviors, promptness, speed in doing the job & accuracy, can be better judged by the customers or users of services. Consultants: Sometimes consultants may be engaged for appraisal when employees
or employers do not trust supervisor appraisal & management does not trust the selfappraisal or peer appraisal or subordinate appraisal.
At the First Stage, Performance standards are established based on job description & job specification. The standards should be clear, objective & incorporate all the factors. The Second Stage is to inform these standards to all the employees including appraisers. The Third Stage is following the instruction given for appraisal, measurement of employee performance by the appraisers through observation, interview, records & reports. Fourth Stage is finding out the influence of various internal external factors on actual performance. Fifth Stage is comparing the actual performance with that of other employees & previous performance of the employee & others.
1. Establish performance standards. 2. Communicate standard / expectation to employee. 3. Measure actual performance by following the instructions. 4. Adjust the actual performance due to the environmental influences. 5. Compare the adjusted performance with that of other & previous. 6. Compare the actual performance with standard & find out deviation, if any. 7. Communicate the actual performance to the employee concerned. 8. Suggest changes in job analysis & standard, if any necessary. 9. Follow-up performance appraisal report.
77
Sixth Stage is comparing the actual performance with the standards & finding out deviations.
Seventh Stage is communicating, the actual performance of the employee & other employees doing the same job & discuss with him about the reasons for positive or negative deviation from the pre-set standards as the case may be.
Eighth Stage is suggesting necessary changes in standards, job analysis, internal & external environment.
Ninth Stage is follow-up performance appraisal report. This stage includes guiding, counseling, coaching & directing the employee or making arrangement for training & development of the employee or making arrangements for training & development of the employee in order to ensure improved performance. If the actual performance is very poor & beyond the scope of improvement, it is necessary to take steps for demotion or retrenchment or any suitable measure.
78
Human Performance
Performance Appraisal
Employee Feedback
Performance Measure
Employee Record
79
80
Rating Biases: The problem subjective measure (is that rating which is not verifiable by others) has the opportunity for bias. The rater biases include: (i) Halo effect, (ii) The error of central tendency, (iii)The leniency & strictness biases, (iv) Personal prejudice, & (v) The recency effect. a) Halo Effect: It is the tendency of the raters to defend excessively on the rating of one trait of
one trait or behavioral consideration in rating all other traits or behavioral consideration. One way of minimizing the halo effect is appraising all the employees by one trait before going to rate on the basis of another trait. b) The Error Central Tendency: Some raters follow play safe policy in rating-by-rating all the
employees around the middle point of the rating scale & they avoid rating the people at both the extremes of the scale. They follow play safe policy because of answerability to management or lack of knowledge about the job & person he is rating or least interest in his job. c) The Leniency & Strictness: The leniency bias crops when some raters have a tendency to be
liberal in their rating by assigning higher rates consistently. Such rating do not serve any purpose. Equally damaging one is assigning consistently low rates. d) Personal prejudice: If the rating dislikes any employee or any group, he may rate them at the
lower &, which may distort the rating purpose & affect the career of these employees. e) The Recency Effect : The raters generally remember the recent action of the employee at the time of rating & rate on the basis of these recent action favorable or unfavorable rather than on the whole activities.
2) 3) 4) 5) 6) 7)
Failure of the superior in conducting performance appraisal & post performance appraisal interviews. Most part of the appraisal is based on subjectivity. Less reliability & validity of the performance appraisal techniques. Negative rating affects interpersonal relating & industrial relations system. Influence of external environment factors & uncontrollable internal factors. Feedback & post appraisal interview may have a setback on production.
81
8)
9)
Some rating particularly about the potential appraisal is purely based on guesswork.
1) Relationship between appraisal rates & performance after promotions was not significant. 2) Some superiors completed appraisal reports with in few minutes. 3) Absence of inter-rater reliability. 4) The situation was unpleasant in feedback interview. 5) Superiors lack tack of offering the suggestions constructively to subordinates. 6) Supervisors were often confused due to too many objectives of performance appraisal.
82
83
S.No
Outcome Measure
Coachs
Rating Rating
CRITICAL KRAs
IMPORTANT KRAs
2. Meets Expectation
3. Above Expectation
EMPLOYEES SIGNATURE 84
COACHS SIGNATURE
1 2 3 4
Team working Thinking logically Listening & Responding Planning & Initiating OVERALL ASSESSMENT (By Coach)
2. FUNCTIONAL COMPETENCY: (FC) Rating scale for individual Functional Competency: (Scale would be from1-4.1 being the lowest and 4 being the highest)
S.NO. 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)
FUNCTIONAL COMPETENCY
85
Below Expectation
Needs Improvement
H.R. HEAD
FUNCTIONAL HEAD
86
REVIEW COMMENTS
(By Coach)
87
I also found that their appraisal Method was very good. The time period for appraisal is based on quarterly basis. Besides all the above findings I also found that the BIL is the well reputed, well managed and the well built company. The Management of company is very Hardworking in nature and takes care about the well being of their staff and workers. They are provided with all the required facilities. 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. I also found that in the last month of the financial year highest production and the highest dispatch was made.
89
CHAPTER-V
RECOMMENDATIONS
RECOMMENDATIONS
90
After making a Study on the topic of Performance Appraisal system in BIL, I Would Suggest that the following Points should be implemented: Give the employee a few days notice of the discussion and its purpose. Prepare notes and use the completed performance appraisal form as a discussion guide so that each important topic will be covered. Be ready to suggest specific developmental activities suitable to each employees needs. They would suggest changes in job analysis & standards, if necessary. There should be no negative ratings because it affects interpersonal relations and industrial relations systems. The feedback must be positive, corrective on observed behavior and facts and not on inferences, assumptions or what one has heard from others. The final performance rating must be done in a fair manner. Appraisal tools must be relate to the employees satisfaction.
91
CHAPTER-VI CONCLUSION
CONCLUSION
92
At last it is concluded that the company as a whole is a well branded company. The goodwill of the company is very high. 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.e. 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. 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. Staff members and workers are also work very enthusiastically and complete every assignment on time. Every one is very supportive in nature and cooperate each other. They work effectively and efficiently to achieve the company goals and the individual goals. This is the reason that the company is achieving commanding heights and the last month of the financial year 2006-07 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.
93
CHAPTER-VII BIBLIOGRAPHY
94
BIBLIOGRAPHY Websites www.britindia.com www.sidcul.com www.google.com www.yahoo.com www.rediff.com Books PERSONAL MANAGEMENT----------- C.B. MAMORIA ESSENTIALS OF HUMAN RESOURSE MANAGEMENT AND INDUSTRIAL RELATIONS ------------ P.SUBA RAO
MANAGING HUMAN RESOURSE------ R.S. DWIVEDI
REGIONA L MANUFA CTURING HEAD
95