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    Page No.1

    RESEARCH REPORT

    ON

    PERFORMANCE APPRAISALFOR DABUR INDIA LTD

    By

    POOJA RATHORE

    In Part ial Fulf i l lment for the award of the deg ree

    MBA

    2011-2013

    BRAHMANAND GROUP OF INSTITUTIONS

    195, khurja Bulandshahr G.T. Road, BSR

    Submitted To : Submitted by :

    Miss Sonam Rani Pooja Rathore

    MBA -2011-13

    Roll No. - 1167170013

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    Page No.2

    ACKNOWLEDGEMENT

    I wish to express my gratitude to all for giving me an opportunity to enhance

    my knowledge by granting the winter project under their guidance.

    I am grateful to all associations for invaluable guidance and cooperation Mr.

    Pradeep Kumar Sharma (H R Manager )during the course of the Project report.

    They provided me with his assistance and support whenever needed that has

    been instrumental in completion of this project. The learning during the report

    was immense & invaluable. The present report is an amalgamation of my

    thoughts and efforts to study the present scenario of economic growth.

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    PREFACE

    A major concern of every HR manager should be contribute possibility towards

    the achievement of the organizations objective. Organizational effectiveness if

    often equated with human managerial efficiency as a HR manager. You can sure

    organizational effectiveness only by guarantying the full utilization of human

    resources through the individual employees under the increase the performance

    himself. Hence the need for measuring and monitoring the performance of

    employees is inevitable.

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    Page No.4

    TABLES OF CONTENTS

    TOPIC PAGE NO

    1. INTRODUCTION

    About The Topic

    Objectives

    2. OBJECTIVES

    3. HYPOTHESIS

    4. LITREATURE REVIEW

    5.ORGANIZATIONAL PROFILE

    6.RESEARCH METHODLOGY

    7.DATA ANALYSIS

    8.FINDINGS

    10.CONCLUSIONS

    11.RECOMMEDATONS 76-77

    12.LIMITATIONS 78

    13.QUESTIONNAIRE 80-82

    14.BIBLOGRAPHY 83

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    EXECUTIVE

    SUMMARY

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    EXECUTIVE SUMMARY

    Dabur India Limited is one of the leading consumer goods company of India with

    interests in healthcare, personal care and foods. For more than a century Dabur has

    worked in active collaboration with nature to provide the best of herbal health and

    personal care products to its consumers. Today, Dabur is all set to take this abundant

    knowledge of Ayurveda to global frontiers.

    Dabur India Limited is the fourth largest FMCG Company in India with interests

    inHealth care,Personal careandFoodproducts. Building on a legacy of quality

    and experience for over 100 years, today Dabur has a turnover of Rs.2233.72 crore

    with powerful brands likeDabur Amla,Dabur Chyawanprash,Vatika, Hajmola&

    Real.

    CORPORATE PHILOSOPHY:

    Knowledge is the key to growth in today's world. Whatever the industry, it is the

    knowledge, which provides cutting edge to individual and organizations. For more

    than a century nature has been a rich source of knowledge for Dabur. Nature has not

    only given us the ingredients for all our products but has also taught us how to create

    a harmony within and without the organization. Nature has inspired us in all our acts.

    Ayurveda - the science of life is based on principles of nature. All Ayurvedic

    preparations have their ingredients derived from Nature. Dabur has converted the

    healing properties of natural ingredients and the age-old knowledge of Ayurveda into

    contemporary healthcare products to alleviate health problems of its consumers.

    Dabur is committed to expand the reach of this age-old knowledge of Ayurveda and

    Nature through web. Through web, they aim to overcome the physical boundaries to

    take Ayurvedic way of life to global frontiers.

    Dabur India Limited understands its responsibility as a corporate house. We have not

    only set our sight on increasing turnover and profitability of the company but also on

    propagating Ayurveda - the Indian system of medicine.

    http://www.dabur.com/EN/Products/Health_Care/http://www.dabur.com/EN/Products/Health_Care/http://www.dabur.com/EN/Products/Health_Care/http://www.dabur.com/EN/Products/Personal_Care/http://www.dabur.com/EN/Products/Personal_Care/http://www.dabur.com/EN/Products/Personal_Care/http://www.dabur.com/EN/group/Foods/http://www.dabur.com/EN/group/Foods/http://www.dabur.com/EN/group/Foods/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Amla/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Amla/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Amla/http://www.dabur.com/en/products/Health_Care/Health_Supplements/Chyawanprash/http://www.dabur.com/en/products/Health_Care/Health_Supplements/Chyawanprash/http://www.dabur.com/en/products/Health_Care/Health_Supplements/Chyawanprash/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Vatika/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Vatika/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Vatika/http://www.dabur.com/en/products/Health_Care/Digestive/hajmola/http://www.dabur.com/en/products/Health_Care/Digestive/hajmola/http://www.dabur.com/EN/Group/Foods/real/http://www.dabur.com/EN/Group/Foods/real/http://www.dabur.com/EN/Group/Foods/real/http://www.dabur.com/en/products/Health_Care/Digestive/hajmola/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Vatika/http://www.dabur.com/en/products/Health_Care/Health_Supplements/Chyawanprash/http://www.dabur.com/EN/Products/Personal_Care/Hair_Care/Amla/http://www.dabur.com/EN/group/Foods/http://www.dabur.com/EN/Products/Personal_Care/http://www.dabur.com/EN/Products/Health_Care/
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    Page No.7

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    INTRODUCTION

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    Study of Performance Appraisal System and Its

    Effectiveness in an Organization

    INTRODUCTION

    The history of performance appraisal is quite brief.

    Its roots in the early 20th century can be traced to Taylor's pioneering Time

    and Motion studies. But this is not very helpful, for the same may be said

    about almost everything in the field of modern human resources management.

    As a distinct and formal management procedure used in the evaluation of work

    performance, appraisal really dates from the time of the Second World War -

    not more than 60 years ago.

    Yet in a broader sense, the practice of appraisal is a very ancient art. In the

    scale of things historical, it might well lay claim to being the world's second

    oldest profession!

    There is, says Dulewicz (1989), "... a basic human tendency to make

    judgements about those one is working with, as well as about oneself."

    Appraisal, it seems, is both inevitable and universal. In the absence of a

    carefully structured system of appraisal, people will tend to judge the work

    performance of others, including subordinates, naturally, informally and

    arbitrarily.

    The human inclination to judge can create serious motivational, ethical and

    legal problems in the workplace. Without a structured appraisal system, there

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    is little chance of ensuring that the judgements made will be lawful, fair,

    defensible and accurate.

    Performance appraisal systems began as simple methods of income

    justification. That is, appraisal was used to decide whether or not the salary or

    wage of an individual employee was justified.

    The process was firmly linked to material outcomes. If an employee's

    performance was found to be less than ideal, a cut in pay would follow. On the

    other hand, if their performance was better than the supervisor expected, a pay

    rise was in order.

    Little consideration, if any, was given to the developmental possibilities of

    appraisal. If was felt that a cut in pay, or a rise, should provide the only

    required impetus for an employee to either improve or continue to perform

    well.

    Sometimes this basic system succeeded in getting the results that were

    intended; but more often than not, it failed.

    For example, early motivational researchers were aware that different people

    with roughly equal work abilities could be paid the same amount of money

    and yet have quite different levels of motivation and performance.

    These observations were confirmed in empirical studies. Pay rates were

    important, yes; but they were not the only element that had an impact on

    employee performance. It was found that other issues, such as morale and self-

    esteem, could also have a major influence.

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    As a result, the traditional emphasis on reward outcomes was progressively

    rejected. In the 1950s in the United States, the potential usefulness of appraisal

    as tool for motivation and development was gradually recognized. The general

    model of performance appraisal, as it is known today, began from that time.

    Modern Appraisal

    Performance appraisal may be defined as a structured formal interaction

    between a subordinate and supervisor, that usually takes the form of a periodic

    interview (annual or in which the work performance of the subordinate is

    examined and discussed, with a view to identifying weaknesses and strengths

    as well as opportunities for improvement and skills development.

    In many organizations -but not all -appraisal results are used, either directly or

    indirectly, to help determine reward outcomes. That is, the appraisal results are

    used to identify the better performing employees who should get the majority

    of available merit pay increases, bonuses and promotions.

    By the same token, appraisal results are used to identify the poorer performers

    who may require some form of counseling, or in extreme cases, demotion,

    dismissal or decreases in pay. (Organizations need to be aware of laws in their

    country that might restrict their capacity to dismiss employees or decrease

    pay.)

    Whether this is an appropriate use of performance appraisal -the assignment

    and justification of rewards and penalties -is a very uncertain and contentious

    matter.

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    Controversy, Controversy

    Few issues in management stir up more controversy than performance

    appraisal.

    There are many reputable sources -researchers, management commentators,

    psychometricians -who have expressed doubts about the validity and

    reliability of the performance appraisal process. Some have even suggested

    that the process is so inherently flawed that it may be impossible to perfect it

    (see Derven, 1990, for example). At the other extreme, there are many strong

    advocates of performance appraisal. Some view it as potentially "... the most

    crucial aspect of organizational life" (Lawrie, 1990).

    Between these two extremes lie various schools of belief. While all endorse

    the use of performance appraisal, there are many different opinions on how

    and when to apply it,

    There are those, for instance, who believe that performance appraisal has

    many important employee development uses, but scorn any attempt to link the

    process to reward outcomes -such as pay rises and promotions. This group

    believes that the linkage to reward outcomes reduces or eliminates the

    developmental value of appraisals. Rather than an opportunity for

    constructive review and encouragement, the reward- linked process is

    perceived as judgmental, punitive and harrowing. For example, how many

    people would gladly admit their work problems if, at the same time, they

    knew that their next pay rise or a much-wanted promotion was riding on an

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    appraisal result? Very likely, in that situation, many people would deny or

    downplay their weaknesses.

    Nor is the desire to distort or deny the truth confined to the person being

    appraised. Many appraisers feel uncomfortable with the combined role of

    judge and executioner.

    Such reluctance is not difficult to understand. Appraisers often know their

    appraisees well, and are typically in a direct subordinate-supervisor

    relationship. They work together on a daily basis and may, at times, mix

    socially. Suggesting that a subordinate needs to brush up on certain work

    skills is one thing; giving an appraisal result that has the direct effect of

    negating a promotion is another.

    The result can be resentment and serious morale damage, leading to

    workplace disruption, soured relationships and productivity declines.

    On the other hand, there is a strong rival argument which claims that

    performance appraisal must unequivocally be linked to reward outcomes. The

    advocates of this approach say that organizations must have a process by

    which rewards -which are not an unlimited resource -may be openly and fairly

    distributed to those most deserving on the basis of merit, effort and results.

    There is a critical need for remunerative justice in organizations. Performance

    appraisal -whatever its practical flaws -is the only process available to help

    achieve fair, decent and consistent reward outcomes. It has also been claimed

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    that appraisees themselves are inclined to believe that appraisal results should

    be linked directly to reward outcomes -and are suspicious and disappointed

    when told this is not the case. Rather than feeling relieved; appraisees may

    suspect that they are not being told the whole truth, or that the appraisal

    process is a sham and waste of time.

    The Link to Rewards

    Recent research (Bannister & Balkin, 1990) has reported that appraisees seem

    to have greater acceptance of the appraisal process, and feel more satisfied

    with it, when the process is directly linked to rewards. Such findings are a

    serious challenge to those who feel that appraisal results and reward outcomes

    must be strictly isolated from each other. There is also a group who argues that

    the evaluation of employees for reward purposes, and frank communication

    with them about their performance, are part of the basic responsibilities of

    management. The practice of not discussing reward issues while appraising

    performance is, say critics, based on inconsistent and muddled ideas of

    motivation.

    In many organizations, this inconsistency is aggravated by the practice of

    having separate wage and salary reviews, in which merit rises and bonuses are

    decided arbitrarily, and often secretly, by supervisors and managers.

    There are basically three purposes to which performance appraisal can be put.

    First, it can be used as a basis for reward allocation. Decision as to who gets

    salary increase, promotion, and other rewards are determined by their

    performance evaluation. Second, these appraisals can be used for identifying

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    areas where development efforts are needed. The performance appraisal is a

    major tool for identifying deficiencies in individuals. Finally it can be used as

    a criterion against which selection devices and development programs are

    validated. As a key input into management's reward and punishment decision,

    performance appraisals can motivate or de-motivate employees.

    Three different approaches exist for doing appraisals. Employees can be

    appraised against

    1. Absolute standards

    2. Relative standards

    3. Objectives

    Milestones to success

    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 popularising and making easily available a whole range of products

    based on the traditional science of Ayurveda. And it has set very high standards in

    developing products and processes that meet stringent quality norms. As it grows

    even further, Dabur will continue to mark up on major milestones along the way,

    setting the road for others to follow.

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    1884 - Established by Dr. S K Burman at Kolkata

    1896 - First production unit established at Garhia

    1919 - First R&D unit established

    Early 1900s - Production of Ayurvedic medicines

    Dabur identifies nature-based Ayurvedic medicines as its area of specialisation. It

    is the first Company to provide health care through scientifically tested and

    automated production of formulations based on our traditional science.

    1930 - Automation and upgradation of Ayurvedic products manufacturing

    initiated

    1936 - Dabur (Dr. S K Burman) Pvt. Ltd. Incorporated

    1940 - Personal care through Ayurveda Dabur introduces Indian consumers to

    personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. So

    popular is the product that it becomes the largest selling hair oil brand in India.

    1949 - Launched Dabur Chyawanprash in tin pack

    Widening the popularity and usage of traditional Ayurvedic products continues.

    The ancient restorative Chyawanprash is launched in packaged form, and

    becomes the first branded Chyawanprash in India.

    1957Computerisation of operations initiated

    1970 - Entered Oral Care & Digestives segment

    Addressing rural markets where homemade oral care is more popular than

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    multinational brands, Dabur introduces Lal Dant Manjan. With this a

    conveniently packaged herbal toothpowder is made available at affordable costs to

    the masses.

    1972 - Shifts base to Delhi from Calcutta

    1978-Launches Hajmola tablet

    Dabur continues to make innovative products based on traditional formulations

    that can provide holistic care in our daily life. An Ayurvedic medicine used as a

    digestive aid is branded and launched as the popularHajmola tablet.

    1979 - Dabur Research Foundation set up

    1979 - Commercial production starts at Sahibabad, the most modern herbal

    medicines plant at that time

    1984 - Dabur completes 100 years

    1988 - Launches pharmaceutical medicines

    1989 - Care with fun

    The Ayurvedic digestive formulation is converted into a children's fun product

    with the launch of Hajmola Candy. In an innovative move, a curative product is

    converted to a confectionary item for wider usage.

    1994 - Comes out with first public issue

    1994 - Enters oncology segment

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    1994 - Leadership in health care

    Dabur establishes its leadership in health care as one of only two companies

    worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research

    Foundation develops an eco-friendly process to extract the drug from its plant

    source

    1996 - Enters foods business with the launch of Real Fruit Juice

    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

    the fastest growing and largest selling brand in the country.

    1998 - Burman family hands over management of the company to

    professionals

    2000 - The 1,000 crore mark

    Dabur establishes its market leadership status by staging a turnover of Rs.1,000

    crores. Across a span of over a 100 years, Dabur has grown from a small

    beginning based on traditional health care. To a commanding position amongst an

    august league of large corporate businesses.

    2001Super specialty drugs

    With the setting up of Dabur Oncology's sterile cytotoxic facility, the Company

    gains entry into the highly specialised area of cancer therapy. The state-of-the-

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    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.

    2002 - Dabur record sales of Rs 1163.19 crore on a net profit of Rs 64.4

    crore

    2003 - Dabur demerges Pharmaceuticals business

    Maintaining global standards

    As a reflection of its constant efforts at achieving superior quality standards,

    Dabur became the first Ayurvedic products company to get ISO 9002 cetificate

    Science for nature

    Reinforcing its commitment to nature and its conservation, Dabur Nepal, a

    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

    under threat of extinction due to ecological degradation.

    2005 - Dabur aquires Balsara

    2006 - Dabur announces bonus after 12 years

    2006 - Dabur crosses $2 bin market cap, adopts US GAAP.

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    Ownership: This is our company. We accept personal responsibility, and

    accountability to meet business needs

    Passion For Winning: We all are leaders in our area of responsibility, with a deep

    commitment to deliver results. We are determined to be the best at doing what

    matters most

    People Development: People are our most important asset. We add value through

    result driven training, and we encourage & reward excellence

    Consumer Focus: We have superior understanding of consumer needs and develop

    products to fulfill them better

    Team Work: We work together on the principle of mutual trust & transparency in a

    boundary-less organisation. We are intellectually honest in advocating proposals,

    including recognizing risks

    Innovation: Continuous innovation in products & processes is the basis of our

    success

    Integrity: We are committed to the achievement of business success with integrity.

    We are honest with consumers, with business partners and with each other

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    PERFORMANCE MANAGEMENT

    Since organisations exits to achieve goals, the degree of success that individual

    employees have in reaching their individual goals is important in determining

    organisation effectiveness.

    Performance system is fundamentally, a feed back process, which require

    sustained commitment. The cost of failure to provide such feedback may result

    in a loss of key professional employees, the continued poor performance of

    employees who are not meeting performance standards and a loss of

    commitment by employees, in sum, the myth that the employee know what.they are doing without adequate feedback from management can be an

    expensive fantasy.

    THE APPRAISAL PROCESS

    1. Establishing Performance Standard

    2. Communicate Performance expectations to employees

    3. Measure actual performance

    4. Compare actual performance with standards

    5. Discussion with the employees and identification development programs

    to bridge the gap.

    6. Initiate action

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    THE PURPOSE OF APPRAISING PERFORMANCE

    In general the appraisal systems serve a two fold purpose

    1. To improve the work performance of employees by helping them

    realize and use their full potential in carrying out their firms mission.

    2. To provide information to employees and managersforuse in making ,

    work related decisions.

    More specifically appraisals serve the following purposes.

    a) Appraisals provide feedback to employees and help the. "' management

    identify the areas where development efforts are "' needed to bridge the

    gaps thereby serving as vehiclesforpersonal " and career development.

    b) It helps management spot individuals who have specific skills so that

    their promotions/transfer are in line with organizational requirements.

    c) Appraisal serve as a key input for administering a formal organisation

    reward and punishment system.

    d) The performance system can be used as a criterion against which

    selection devices and development programs are validated.

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    REQUIREMENT OF THE PERFORMANCE MANAGEMENT

    SYSTEM.

    Reliability: The foremost requirement of a sound system is reliability. In this

    contact it refers to consistency of judgement. For any given employee,

    appraisals made by raters working independently of one another should agree

    closely. But raters with different perspective (e.g. supervisors, peers,

    subordinates) may see the same individuals job performance very differently.

    To provide reliable data, each rater must have an adequate opportunity to

    observe what the employee has done and the condition under which he or she

    has done it. By making appraisal system relevant, sensitive and reliable we

    assume the resulting judgement are valid as well.

    Acceptability: In practice, acceptability is the most important requirement of

    all, for it is true that human resources program must have the support of.

    those who will use them. Unfortunately, many organisations do not put much

    effort into garnering the front end support and participation of those who will

    use the appraisal system. Ultimately it is management's responsibility to

    define as clearly as possible the type and level of job behaviour desired of

    employees.

    It is important to enlist the active support and cooperation of subordinates by

    making explicit what aspects of job performance they will be evaluated on.

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    Practicality: This implies that appraisal instruments are easy for managers and

    employees to understand and to use.

    For years, personnel specialists have searched for the 'Perfect; appraisal

    method as if it were some kind of miraculous cure for many pitfalls that

    plague organisations. Such a method does not exist. In tommorrow's world of

    work far more emphasis needs to be placed on process issues. Factors such as

    timing and frequency are no less important. In sum performance appraisal is

    a dialogue involving people and data. Both technical and human issues are

    involved. Neither can be overemphasized at the expense of the other.

    WHO SHOULD EVALUATE PERFORMANCE?

    The most fundamental requirement for any rater is that he or she has an .

    adequate opportunity to observe the rates job performance over a reasonable

    period of time. This suggest several possible raters.

    The immediate supervisor: Generally appraisal is done by this person. He is

    probably the most familiar with the individual's performance and in most

    jobs has had the best opportunity to observe actual job performance. Further

    more, the immediate supervisor is probably best able to relate the individual's

    performings to department and organisationalobjectives.

    In some jobs such as outside sales, law enforcement and teaching, the

    immediate supervisor may observe a subordinate's actual job performance

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    rarely (and indirectly thru written reports). Here judgement of peers play

    important role. However, there is a danger of potential bias.

    Subordinates: Appraisal by subordinates can be useful input to the immediate

    development. Subordinates know first hand the extent to which the supervisor

    actually delegates, how well he communicates, the type of leadership he has

    and the extent to which he or she plans and orgamses.

    Self appraisal: On one hand it improves the rate's motivation and moral, on the

    other it tends to be more lenient, less variable and biased. The evidence on the

    accuracy of self assessment is fairly complex.

    In industry it is seen that feed back/ input is taken from various sources -Peers,

    subordinates, superiors etc. Some companies have gone step ahead in taking

    feedback from the customers and integrating it into the performance

    management process.

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    APPROACHES TO PERFORMANCE MANAGEMENT

    The traditional approach: The one dimensional model

    The Job Define what results Performance contact have to e achieved

    Define a set of key objectives against the accountabilities Accountabilities i.e,

    output Review performance against the key objectives

    In this model job expectations are defined in terms of what results have to be

    achieved. This model doesn't have a long term focus and can't be used for

    employee development and career path planning,

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    A satisfactory performance implies doing a job effectively and efficiently, with

    a minimum degree of employee -created disruptions. Employees are

    performing well when they are productive. Yet productivity itself implies both

    concern for effectiveness and efficiency. Effectiveness refers to goal

    accomplishment. Efficiency evaluates the ratio of inputs consumed to outputs

    achieved. The greater the output for a given input, the more efficient the

    employees. Similarly, if output is a given, consumed to get that output results

    in greater efficiency.

    There are basically three purposes to which performance appraisal can be put.

    First, it can be used as a basis for reward allocations. Decisions as to who gets

    salary increases, promotions, and other rewards are determined by their

    performance evaluation. Second, these appraisals can be used for identifying

    areas where development efforts are needed. Management needs to spot those

    individuals who have specific skill or knowledge deficiencies. The

    performance appraisal is a major tool for identifying these deficiencies. Finally,

    the performance appraisal can be used as a criterion against which selection

    devices and development programs are validated.

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    Page No.28

    OBJECTIVE AND

    METHODOLOGY OF THE

    STUDY

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    OBJECTIVE

    1. Objective of the study

    This project aims at studying the system of performance appraisal and its

    effectiveness in an organisation. Performance appraisal is the most significant

    and indispensable tool for the management as it provide useful information for

    decision making in area of promotion and compensation reviews.

    Thus broad objectives of the study includes:

    To know the present system of performance appraisal

    To know the extent of effectiveness of the appraisal system

    To identify and know the area for improvement system

    2. Sample of the study

    The population covered for the present study consisted of employee belonging

    to supervisory and the level above. For the purpose of this study, survey

    covered the employee of DABUR INDIA LTD. falling under supervisor and

    the level above.

    The study covered a sample of 100 employee belonging to supervisory level

    anquestionnaire with objective and question was communicated tested and

    finalise. employees at Dabur India Ltd. by contacting them. The work relating

    to data entry compilation, data analysis and report writing constituted the third

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    stage. Interview index was also used at some places to get information on the

    project subject.

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    HYPOTHESIS

    A hypothesis is a statement that which we want to verify..This is a statement that

    we would like to verify whether is it true or not. For this purpose we have to collect

    relevant information, processist using statiscal technique and then test above

    hypothesis

    Null Hypothesis- A null hypothesis is a statement about a population parameter and

    the test isused to decide whether or not accept the hypothesis.

    Null hypothesis( H0) - The strategies adopted by dabur does not have any significant

    impact on sales of dabur products and investors choice.

    Null hypothesis( H1) (Alternative) -The strategies adopted by dabur have significant

    impact on sales of dabur products and investors choice.

    There are 2 type of error-

    1.Type 1 error

    2.Type 2 error

    1.Type 1 error- It s an error when a null hypothesis is true but it is rejected due to

    significant between observe and expected value.

    2. Type 2 error- It is he error of accepting the null hypothesis when it is fails that iswhen a null hypothesis fails, but it is accepted.

    In this research work I imagine the performance appraisal programs which is

    accepted by the DaburProducts in order to attract the large number of workers is give

    more benefits towards the work done by different labours. For this purpose, I had

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    Page No.32

    done a research work in order to know the prediction which I should take is correct or

    not.

    For this, I conducted a survey in Noida city and try to know their view towards the

    Appraisal programs which is adopted by Dabur Products in order to attract the

    attention of workers ,whether it will give benefits in work done by Dabur labours or

    not.

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    LITREATURE REVIEW

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    PRODUCTS

    A vast array of products touching the lives of almost every individual, from an infant

    to a grand old man, from poor to rich; that's how the Dabur's range of health personal

    care and food products could be best explained. Today Dabur trust has travelled

    beyond the boundaries of India and are available in more than 50 countries

    worldwide. These value for money products have made Dabur a household name.

    DIVISIONS AND PRODUCTS

    A vast array of products touching the lives of almost every individual, from an infant

    to a grand old man, from poor to rich; that's how the Dabur's range of health personal

    care and food products could be best explained. Today Dabur trust has travelled

    beyond the boundaries of India and are available in more than 50 countries

    worldwide. These value for money products have made Dabur a household name.

    PRODUCTS AND SERVICESA vast array of products touching the lives of almost every individual, from an

    infant to a grand old man, from poor to rich; that's how the Dabur's range of

    health personal care and food products could be best explained. Today Dabur

    trust has traveled beyond the boundaries of India and is available in more than

    50 countries worldwide. These value for money products have made Dabur a

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    household name Healthcare is one of the biggest and oldest divisions of Dabur

    with a wide range of OTC healthcare products. It comprises of:

    Ayurvedic Health Tonics

    Chyawanprash

    The leader in the chyawanprash market in India, Dabur Chyawanprash is

    one of the most well known Ayurvedic products in India and abroad. An

    effective herbal immune modulator, Dabur Chyawanprash has the essential

    goodness 'of amla and over 50 other herbs. Dabur has conducted several

    clinical trials on this product, which confirm its efficacy as a unique product

    that strengthens the body from within.

    Digestives

    Hajmola Tablets

    Hajmola Tablets are the first classical Ayurvedic products to be branded

    and positioned as fun-filled product with medicinal properties. It finds

    mention in Ayurvedic scriptures as Kshudhavardhak Bati, and was branded

    as Hajmola, a name derived from Hajma which means digestion in Urdu. It

    is available in regular and tamarind flavour.

    Haimola Candy

    To cash in on the brand equity enjoyed by Hajmola, Dabur launched Hajmola

    Candy in 1989. Since then, the company has added Mango and tamarind

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    flavors besides the regular one.

    Pudin Hara

    One of the oldest products in Dabur portfolio, Pudin Hara is available in liquid

    as well as capsule form. It has a special combination of mint oils and cures

    gastric problems without any side effects.

    The company has added effervescent powder with goodness of Mint for gas

    and acidity and named it Pudin Hara G.

    Hingoli

    Asafoetida or Hing is mentioned in Ayurveda as an effective aid in digestion,

    and is used a lot in Indian cooking. Dabur's Hingoli has all the goodness of

    asafoetida and other herbs.

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    Childcare Products

    Dabur Lal Tail

    The largest baby massage oil in India, it has the goodness of herbs which helps

    in strengthening the bones of infants.

    Dabur Janma Ghutti

    This Ayurvedic preparation helps in strengthening the digestive system of new

    borns.

    Women Care Products

    Efarelle Comfort

    A herbal medicine in self gel capsule form to help overcome abdominal pain

    during PMS. A combination of natural oils, this formulation gives immediate

    relief from pain without any side effects.

    The largest division in terms of sales, the Family Products Division of Dabur

    has in its portfolio hair care and skin care products, oral care and select foods

    like honey.

    Hair & Skin Care

    Dabur is the leader in hair care products in India, and has covered almost all the

    categories of hair oils.

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    Dabur Amla Hair Oil -As a brand

    Dabur Amla Hair Oil -As a brand has made its mark beyond India and is a

    leading hair oil brand in Middle East and Africa. A perfumed heavy hair oil, it

    is Dabur's largest brand.

    Dabur Special Hair Oil -It is light hair oil that combines the natural hair care

    properties of lemon and hibiscus.

    Vatika -The fastest growing hair oil brand of India, Vatika has single handedly

    created an altogether new category of herbal enriched natural oils. The Vatika

    range also includes an herbal shampoo, which has made its mark in the very

    first year of its launch in the competitive shampoo market of India.

    The company has recently launched Vatika Anti -Dandruff Shampoo having

    herbal ingredients to fight the problem of Dandruff

    Gulabari -Rose water derived from best of Indian roses makes the skin supple

    and glowing.

    Oral Care

    Dabur Lal Dant Manjan -It is the second largest tooth powder brand of

    India and the largest in coloured tooth power category. This herbal tooth

    powder is very popular in rural parts of India.

    Binaca Toothbrushes -After having acquired this dormant brand a few years

    back, Dabur launched toothbrushes under this umbrella. There are plans to

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    Page No.39

    launch other oral care products under the Binaca brand.

    Dabur Honey

    When repositioned in 1993, it totally changed the perception of Indian

    consumer. Honey, which was mainly used for its medicinal properties in

    India, is today competing for space on breakfast table.

    Ayurvedic Specialties is a range of over 350 Ayurvedic Medicines -both.

    classical Ayurvedic drugs and proprietary Ayurvedic medicines - developed by

    Dabur's own research and development. Dabur has products for all the 16~

    categories as defined in the Ayurveda. Some of the leading products in this

    category are:

    Asav Arishtas -These are medicated decoctions with a self-generated alcohol

    content. Dabur has a range of over 30 Asav Arishtas. Some of the well-known

    ones include Dashmularishta, Drakshasava, Lohasava, Parthadyarishta and

    Ashokarishta.

    Chumas -These are finely ground medicinal powders used to treat a variety of

    ailments ranging from digestive problems to cough and fever.

    Ras Rasayans -Preparations containing mineral drugs as main ingredients are

    called Ras Rasayans. Dabur has a range of more than 50 Ras Rasayans which

    are used by Ayurvedic practitioners in the cure of host of ailments.

    Medicated Oils -The oils boiled alongwith certain prescribed drugs are known

    as medicated oils. These oils retain the curative properties of herbs and is used

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    for inunction and massage. Launched over two years back, the Dabur Foods

    range include juices under the brand name Real and cooking pastes under the

    brand name Hommade. To give a better focus this division has been carved out

    as a subsidiary company of Dabur India Limited. Subsidiarie.

    Dabur Foods Limited -Dabur Foods Limited, a 100% subsidiary of Dabur India

    Limited, is spearheading Dabur's foray into food processing industry. The

    company, set up in April 1999, is marketing a range of fruit juices under the

    brand name Real, Hommade Cooking Paste and Sauces and Lemoneez lemon

    juice.

    Dabur was the first company in India to introduce fruit juices in packaged form

    without any artificial additive. Real is today the market leader in this category

    with more than 50% market share. Hommade cooking paste is the oply national

    brand in this category. Lemoneez is the only product in its category available in

    unique drop and trickle pack and uniquelPharmaceuticals

    Branded Pharmaceuticals -It includes a range of natural ethical products like

    New Livfit, Honitus, Ulgel etc. and a range of contrast media and

    gynecological.

    Oncology -This wide and formidable range includes brands such as Intaxel,

    Docetaxel and Topotecan, all of which were manufactured for the first time in

    India by Dabur. Little wonder then, that Dabur is the undisputed market leader

    in this category in India and has plans to establish itself as a generic oncology

    player in select global markets.

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    Bulk Drugs and Chemicals -This range consists primarily of bulks in the

    oncology category.

    Joint Ventures

    Dabon International Limited -Dabur has also collaborated with Bongrain

    of France for the manufacture and marketing pf specialty cheese and other

    dairy products. This joint venture company has already made its presence felt

    in the Indian cheese market through the launch of processed cheese under the

    brand name LeBon, and a specialty cheese under the brand name Delicieux.

    Subsidiaries

    Dabur has six subsidiary units, which come under the umbrella of the Dabur

    India organization. These are:

    Dabur Foods Limited -Dabur Foods Limited, a 100% subsidiary of Dabur

    India Limited, is spearheading Dabur's foray into food processing industry.

    The company, set up in April 1999, is marketing a range of fruit juices under

    the brand name Real, Hommade Cooking Paste and Sauces and Lemoneez

    lemon juice. Dabur was the first company in India to introduce fruit juices in

    packaged form without any artificial additive. Real is today the market leader

    in this category with more than 50% market share. Hommade cooking paste

    is the only national brand in this category. Lemoneez is the only product in

    its category available in unique drop and trickle pack and uniquely shaped

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    tabletop pack.

    Dabur Nepal Private Limited -Dabur Nepal was the first manufacturing

    base overseas for Dabur group. The company is today the leading exporter of

    Nepal and the third largest and most modern manufacturing base for Dabur.

    Dabur Nepal is today involved in promoting cultivation of herbs and

    apiculture activities in Nepal. The company has set up state of the art

    greenhouse at Banepa for developing saplings for 20 medicinal plants. Dabur

    Nepal has also set up an Apiculture centre for promoting bee-keeping activity

    in Nepal and developing queen bees and bee colonies for exports.

    Dabur Egypt Limited -Dabur Egypt is groups gateway to Africa. This

    manufacturing base set up a couple of years back to c~ater to the demands of

    Middle East and African market is producing Hair Care, Skin Care Products

    and Foods.

    Dabur Oncology PIc. -Set up recently in UK, this subsidiary of Dabur India

    Limited will be manufacturing anti-cancer formulations for European market.

    The company is in the process of setting up manufacturing base near London

    and is expected to start operation from year 2001.

    Dabur Finance Limited

    Dabur has an illustrious Board of Directors who are committed to take the

    company onto newer levels of human endeavour in the service of mankind.

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    Methodology of the project

    The project work has been carried out in three stages, a structured

    questionnaire with objective and question was communicated tested and

    finalise. During the second stage, the questionnaire was administered to the

    employees at Dabur India Ltd. by contacting them. The work relating to data

    entry compilation, data analysis and report writing constituted the third stage.

    Interview index was also used at some places to get information on the project

    subject.

    The details of the methodology adopted are presented below:

    The Questionnaire

    Keeping in view the objective of the study, questionnaire was designed and

    tested on few employees. After getting the proper response and sanction from

    the concerned department the questionnaire was finalised.

    Response to Questionnaire

    In all 96 questionnaire were given to employees falling in the category of

    supervisors and above. Out of which 48 could be collected back duly

    completed. The researcher individually contacted the employees to get

    response on the questionnaire.

    Data entry and analysis

    It has been an uphill task to enter the enormous data received through the

    questionnaire which consisted nearly 20 questions. Resgonse to the descriptive

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    questions though very few but was valuable for the purpose of study. Hence

    these were further structured in time with the system adopted for compilation

    and data analysis.

    Limitations

    Many employees gave guarded answers to some crucial questions.

    Some of them did not fill the questionnaire due to lack of time

    Response could not be collected from the total sample selected.

    Some of the questionnaire could not be completed due to reasons other than

    time factor.

    The confidentiality of the system created some problem in getting information.

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    Page No.45

    ORGANISATION PROFILE

    .

    History

    The story of Dabur goes back to 1884, to a young doctor armed with a

    degree in medicine and a burning desire to serve mankind. This young man,

    Dr. S. K. Burman, laid the foundations of what is today known as Dabur

    India Limited. From those humble beginnings, the company has grown into

    India's leading manufacturer of consumer healthcare, personal care and food

    products. This phenomenal progress has seen many milestones, some of

    which are mentioned below:

    1884 -Dr. S K Burman lays the foundation of what is today known as

    Dabur India Limited. Starting from a small shop in Calcutta, he

    began a direct mailing system to send his medicines to even the

    smallest of villages in Bengal. The brand name Dabur is derived

    from the words 'Da'forDaktaror doctor and 'bur'from Burman.

    1896 -As the demand for Dabur products grows Dr. Burman feels the

    need for mass production of some of his medicines. He sets up a

    small manufacturing plant at Garhia near Calcutta.

    Early 1900s -The next generation of Burmans take a conscious

    decision to enter the Ayurvedic medicines market, as they believe

    that it is only through Ayurveda that the healthcare needs of poor

    Indians can be met.

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    1919 -The search for processes to suit mass production of Ayurvedic

    medicines without compromising on basic Ayurvedic principles

    leads to the setting up of the first Research & Development

    laboratory at Dabur. This initiates a painstaking study of Ayurvedic

    medicines as mentioned in age-old scriptures, their manufacturing

    processes and how to utilize modern equipment to manufacture these

    medicines without reducing the efficacy of these drugs.

    19208 -A manufacturing facility for Ayurvedic Medicines is set up at

    Narendrapur and Daburgram. Dabur expands its distribution network

    to Bihar and the northeast.

    1936 -Dabur India (Dr. S K Burman) Pvt. Ltd. is incorporated.

    1940 -Dabur diversifies into personal care products with the launch

    of its Dabur Amla Hair Oil. This perfumed heavy hair oil catches the

    imagination of the common man and film stars alike and becomes

    the largest hair oil brand in India.

    1949 -Dabur Chyawanprash is launched in a tin pack and becomes

    the first branded Chyawanprash of India.

    1956 -Dabur buys its first computer. Accounts and stock keeping are

    one of first operations to be computerized.

    1970 -Dabur expands its personal care portfolio by adding oral care

    products. Dabur Lal Dant Manjan is launched and captures the

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    Page No.47

    Indian rural market.

    1972 -Dabur shifts base to Delhi from Calcutta. Starts production

    from a hired manufacturing facility at Faridabad.

    1978 -Dabur launches the Hajmola tablet. This is the first time that a

    classical Ayurvedic medicine is branded -from Shudhabardhak bati

    to Hajmola tablet.

    1979 -The Dabur Research Foundation (DRF), an independent

    company, is set up to spearhead Dabur's multi-faceted research.

    1979 Commercial production starts at Sahibabad. This is one of the

    largest and most modern production facilities for Ayurvedic

    medicines in India at this time.

    1984 -The Dabur brand turns 100 but is young ~enough to

    experiment with new offerings in the market.

    1986 -Dabur becomes a public limited company through reverse

    merger with Vidogum Limited, and is re-christened Dabur India

    Limited.

    1989 -Hajmola Candy is launched and captures the imagination of

    children and establishes a large market share.

    1992 -Dabur enters into a joint venture with Agrolimen of Spain for

    manufacturing and marketing confectionery items such as bubble

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    Page No.48

    gums in India.

    1993 -Dabur sets up the oncology formulation plant at Baddi,

    Himachal Pradesh.

    1994 -Dabur India Limited comes out with its first public issue. The

    Rs.10 share is issued at a premium of Rs.85 per share. The issue is

    oversubscribed 21 times.

    1994 -Dabur reorganizes its business with sales and marketing

    operations being divided into 3 separate divisions.

    1994 -Dabur enters the oncology (anti-cancer) market with the

    launch of Intaxel (Paclitaxel). Dabur becomes only the second

    company in the world to launch this product. The Dabur Research

    Foundation develops the unique eco-friendly process of extracting

    the drug from the leaves of the Asian Yew tree.

    1995 -Dabur enters into a joint venture with Osem of Israel for food

    and Bongrain of France for cheese and other dairy products.

    1996 -Dabur launches Real Fruit Juice which heralds the company's

    entry into the processed foods market.

    1997 -The Foods division is created, comprising of Real Fruit Juice

    and Hommade cooking pastes to form the core of this division's

    product portfolio.

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    1997 -Project STARS (Strive To Achieve Record Successes) is

    initiated by the company to achieve accelerated growth in the

    coming years. The scope of this project is strategic, structural and

    operational changes to enable efficiencies and improve growth rates.

    1998 -The Burman family hands over the reins of the company to

    professionals. Mr. Ninu Khanna joins Dabur as the Chief Executive

    Officer. ..

    1999-2000 -Dabur achieves the Rs.IOOO crore turnover mark

    What is that life worth which cannot bring comfort to others", these

    words of Dr. S K Burman have inspired generations of Dabur. Keeping r"

    these golden words in mind, Sandesh or the Sustainable Development

    Society was set up to carry out welfare activities aimed at improving the

    A quality of life of the rural people in its area of operation. This society is

    given complete financial and managerial support by Dabur India Limited.

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    Page No.50

    PERFORMANCE

    APPRAISAL

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    Page No.51

    PERFORMANCE APPRAISAL

    Since organisation exist to achieve goals, the degree of success that individual

    employees have in reaching their individuals goals is important in

    determining organizational effectiveness. The assessment of how successful

    employees have been at meeting their individual goals, therefore, becomes a

    critical part of HRM. This leads us to the topic of performance appraisal.

    PURPOSE

    There are basically three purposes to which performance appraisal can be put.

    First, it can be used as a basis for reward allocations. Decisions as to

    who gets salary jncreases, promotions, and other rewards are

    determined by their performance evaluation.

    Second, these appraisals can be used for identifying areas where

    development efforts are needed. Management needs to spot those

    individuals who have specific skill or knowledge deficiencies. The

    performance appraisals is a major tool for identifying these

    deficiencies.

    Finally the performance appraisal can be used as a criterion against

    which selection devices and development programs are validated. It is

    one thing to say, for example, that our selection process is successful in

    differentiating satisfactory performers from unsatisfactory performers.

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    Page No.52

    THE APPRAISAL PROCESS

    Established performance standard

    Communicate performance expectations to employee

    Measure actual performance

    Compare actual performance with standards

    Discuss the appraisal with the employees.

    If necessary, initiate the corrective action

    The appraisal process begins with the establishment of performance

    standards. These should have evolved out of job analysis and the job

    description discussed under human resource planning. These performance

    standards should also be clear and objective enough to be understood and

    measured. Too often, these standards are articulated in some such phrase as "a

    full day's work" or "a good job". Communication only takes place when the

    transference has taken place and has been received and understood by the

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    subordinate. Therefore feedback is necessary from the subordinate to the

    manager. Satisfactory feedback censures that the information communicated

    by the manager has been received and understood in the way it was intended.

    The third step in the appraisal in the measurement of performance. To

    determine what actual performance. To determine what actual performance is,

    it is necessary to acquire information about it. We should be concerned with

    how we measure and what we measure.

    What we measure is probably more critical to the evaluation process than how

    we measure, since the selection of the wrong criteria can result in serious

    dysfunctional consequences. And what we measure determines, to a great

    extent, what people in the organization will attempt to excel at.

    One of the most challenging tasks facing managers is to present an . accurate

    appraisal to the subordinate and then have the subordinate accept the appraisal

    in a constructive manner. Appraising performance touches on one of the most

    emotionally charged activities the assessment of another individual's

    contribution and ability. The impression that subordinates receive about their

    assessment has a strong impact on their self-esteem and, very important, on

    their subsequent performance.

    The final step in the appraisal is the initiation of corrective action when

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    Page No.54

    necessary. Corrective action can, be of two types. One is immediate and deals

    predominantly with symptoms. The other is basic and delves into causes.

    Immediate corrective action often described as "putting out fires," whereas

    basic corrective action gets to the source of deviation and seeks to adjust the

    difference permanently.

    Immediate action corrects something right now and gets things back on track.

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    Page No.55

    PERFORMANCE

    APPRAISAL SYSTEM IN

    DABUR INDIA LIMITED

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    Page No.56

    Chapter 5

    PERFORMANCE APPRAISAL SYSTEM IN DABUR

    INDIA LIMITED

    In Dabur India Limited they have the system of performance appraisal of

    their employees. The main objective of this performance appraisal system is

    to evaluate the performance, promote their employees and to arrange for

    their various training programmes if they require for enhancing their skills in

    their respective areas and in contribution enhancement..

    Employees are evaluated by how well they accomplish a specific set of

    objectives that have been determined to be critical in the successful

    completion of their job. This approach is frequently referred to as .

    management by objectives. Management by objectives is a process that

    converts organization~l objectives into individual objectives. It can be

    thought of as consisting of four steps: goal setting, action planning, self-

    control, and periodic reviews. In goal setting, the organization's overall

    objectives are used as guidelines from which departmental and individual

    objectives are set. In action planing, the means are determined for achieving

    the ends established in goal setting. That is, realistic plans are developed to

    attain the objectives. Self-control refers to the systematic monitoring and

    measuring of performance. Finally, with periodic progress reviews,

    corrective action is initiated when behaviour deviates from the standards

    established in the goal-setting phase. Dabur uses very constructive

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    performance appraisal process while evaluating its employees. Its evaluation

    is based on quantitative wise and objective wise.

    Company set goals to its employee by properly reporting with its employees

    and then evaluating them up to what extent it has been achieved and if there is

    failure in reaching the target what are the causes or reasons behind it.

    Every evaluator has his or her own value system which acts as a standard

    against which appraisals are made. Relative to the true or actual performance

    an individual exhibits, some evaluator~ mark high and others low. The former

    is referred to as positive leniency error and the latter as negative leniency

    error. When evaluators are positively lenient in their appraisal, an individual's

    performance becomes over- stated; that is, rated higher than it actually should.

    Similarly, a negative leniency error understates performance, giving the

    individual a lower appraisal. As such there is no scope of error as far as the

    Dabur company is concerned, but sometimes over estimation of target brings

    about a description in the evaluating criteria. Thus, though chances are less,

    positive leniency errors have been stated to be committed.

    Outcome of Performance Appraisal

    As far as Dabur company is concerned, there are four outcomes possible:

    a. Outstanding -If the performance evaluated by the management turns

    out to be outstanding. If the employee performs in such a way as to

    collect 3 consecutive outstanding performance into his/her credit) he /

    she gets promoted.

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    b. Excellent -If the performance evaluated by the management turns out to

    be excellent. If the employee performs in such a way as to collect 3

    consecutive excellent performance into his/her credit, he/she gets

    promoted.

    c. Good -If the performance evaluated by the management turns out to be

    good. The management sends the employee to the training program to

    improve his/.her skill to perform form.

    d. Below average -If the performance evaluated by the management trns

    out to be below average. And, if the employee collects 3 below average

    to his/her credit, then he/she dismissed

    Duration of Appraisal System

    The time constraints enables the employee to show or project his/her

    capabilities in term of performance as per the duration allowed. In Dabur India

    Limited, the performance appraisal system is carried out annually.

    Feedback

    The company provides the annual feedback to its employees and thus, in

    term bring out the highlights of the self assessment programme. This enables

    the better communicaiton between the management and employees ad thus,

    helps in promoting the business future.

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    Response

    There are mixed responses from the feedback by the employees. It has helped

    some of the employees in motivating themselves while those who felt bad

    were thoroughly communicated and all the confusion and failure part were

    discussed with employees.

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    Page No.60

    DATA ANALYSIS

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    DATA ANALYSIS

    After collecting the data on "Performance Appraisal System" data was

    Analyzed and interpreted. The various topics covered for analysis and

    interpretation of data are: )

    1. Promotions

    A promotion may be defined as an upward advancement of an employee in an

    organisation to another job, which commands better pay/wages, better status /

    prestige and higher opportunities / challenges and responsibility, a better

    working environment, hours of work and facilities etc.

    Promoters have a salutary effect on the satisfaction of the promoted person's

    need for esteem, belonging and security. They also afford an opportunity for

    greater self-actualizing action through more varied and challenging

    assignments. The promotion policies differ from an organisation to another.

    The guidelines for departmental promotion in are same for male and female

    employees. The period of experience required for filling a higher post

    departmentally varies from 3-5 years. 5 years experience for promotion to

    managerial staff and 3 years experience for promotion to Junior Management

    staff is needed. The other area of promotion apart from seniority are merit and

    fitness. Though these guidelines are not in a written format the supervisor and

    manager get it at the time of appraisal from the personnel department.

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    As per the guidelines from the personnel department employees are to be

    promoted accordingly. However there is confusion among the employee as

    these guidelines are not being explained time to time, many are not aware of

    the existing promotion policy in the organisation.

    Respondents were asked whether the promotion is well defined in the

    organisation. The responses are given below:

    N=96

    Response Number Percentage

    Yes 16 16.66

    No 52 54.16

    Can't say 28 29.16

    From the above table, it can be seen that 30% agree that promotion is well

    defined in the organisation. However 54% were not able to say it as there is

    lack of information about the promotion policy. Every employee need to be

    communicated about the existing promotion policy.

    16

    52

    28

    0

    10

    20

    30

    40

    5060

    Yes No Can't Say

    Series1

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    Respondent were also asked to suggest any change in the policy. The responses

    were as given below:

    Response Number Percentage

    Merit not recognized 20 20.83

    Does not define career plan 26 16.66

    Not integrated with business 0 0

    Heterogeneity within policy for 56 58.83

    different position

    Majority suggested for no change in the policy. It seems they are satisfied with

    the current policy.

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    Aligning goal

    Respondent were asked about the present system, does it help in aligning

    individual goal with those of the organisation. The responses were as given

    below:

    Response Number Percentage

    Yes 44 45.83

    No 12 12.5

    Can't say 36 37.5

    No response 4 4.16

    Here the response from the supervisor were 45.83% for the factor that it help

    in aligning their goal with those of organisation.

    44

    12

    36

    4

    0

    5

    10

    15

    20

    25

    30

    35

    40

    45

    Yes No Can't Say No

    response

    Series1

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    FINDINGS

    Career Progress

    Career progress is something which is continuous, with the input from

    organisation in term of training, feedback and counselling. In today's

    changing scenario this has to be followed in every organisation so that an

    individual make progress in the career adding value to himself and the

    organisation. Respondent were asked about the current system helping in their

    career progress.

    Career advancement is the most motivating factor when employee aspire for

    the advancement of his career and for better opportunities to use his/her

    talents. From the organisation's point of view, it is necessary to develop in

    manager. Some expectations of opportunities for the future in order to keep

    their motivation high. Career planning means helping the employee plan his

    career in terms of his capabilities with the context or organisational needs.

    Individual, after becoming aware of some of his/her capabilities and career and

    development opportunities chooses to develop himself/herself in a direction

    that improves his/her chances of being able to handle new responsibilities. It is

    also the responsibility of the employer to help him/her to identify the career

    opportunity, make choices and develop his/her career and provide

    opportunities for career planning and succession planning

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    Question asked was as follows:

    Are the issues like career planning and succession planning a part of companys

    policy

    The responses to the above were as given below:

    Response Number Percentage

    Yes 16 16.66

    No 44 45.83

    Cant say 36 37.5

    Here only 46% of the respondent gave response that it does not while 38%

    gave response that there is no career development plan at all.

    16

    44

    36

    0

    10

    20

    30

    40

    50

    Yes No Can't Say

    Series1

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    Feedback

    Providing feedback playa constructive role. It helps the employee know

    his/her weakness and strength. Feedback provides for the area of

    improvement.

    Respondent were asked about the frequency of feedback based on their

    performance. The responses were as given below:

    Response Number Percentage

    Rarely 24 25

    On a few occasion 40 41.66

    Sometimes 24 25

    Often 8 8.34

    Almost always Nil Nil

    41 percent responded that feedback is provided though on a few occasion. The

    frequency has to increase both from the individual and organisation point of

    view to keep the individual motivated for work in line with the organisational

    expectation.

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    Remedial measure

    Based on the performance the remedial measures are taken to do away with

    weakness if any and build on the strength and add to the existing capability

    0

    5

    10

    15

    20

    25

    30

    35

    40

    Rarely On a few

    occasion

    Sometimes Often Almost

    always

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    Response on the remedial measure were as given below:

    Response Number Percentage

    Job rotation 44 45.83

    Sent to training programme 40 41.66

    Counselled 12 12.5

    Any other Nil Nil

    None Nil Nil

    Here the response were both for job rotation and training programme. During

    the course it was felt that more training input is to be provided to the employee

    to overcome the weakness and improve upon the existing capability of the

    employee.

    0

    5

    10

    15

    2025

    30

    35

    40

    45

    Job rotation Sent to

    training

    program

    Counselled Any other None

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    Page No.70

    PROMOTION POLICY AND PERFORMANCE APPRAISAL

    APPRAISALSYSEM

    Respondent were asked wether the promotion policy is linked with the

    performance appraisal system

    The responses were as given below:

    Response Number Percentage

    Yes 54 56.25

    No 28 29.15

    Cant say 14 14.58

    Majority response were that promotion policy is linked with the performance

    appraisal system.

    54

    28

    14

    0

    10

    20

    30

    40

    50

    60

    Yes No Can't Say

    Series1

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    SWOT ANALYSIS

    1. Strength -Dabur India Limited is the first Indian major company which

    came up with the idea of Ayurvedic concept in various family and health

    care products. mostly whatever ingredients it uses in its product are

    extracted from nature as it has very less synthetic chemical constituents

    used in its product and so it does not has any threat of side effect. As it has

    its product in major areas viz. family, health care and in food division it can

    easily has larger share of market. By this performance appraisal system act

    as motivating factor for its employees to a great extent by increasing their

    efficiency and skills. For example, if we see Dabur Lal Dunt Manjan, it is

    India's number one tooth powder doing very well in rural as well as in urban

    market.

    2. Weakness -The main weakness of the company is that the company is

    taking the performance appraisal in objective wise, while evaluating a

    particular employee performance, on objective wise, the employee does not

    get enough opportunity to express completely and freely the valid reasons

    of his/her failure to the organization. Weakness is also highlighted when

    Dabur India Limited do this performance appraisal procedure annually.

    3. Opportunity -With the help of this performance appraisal system the

    employee always get feedback from the company. He / she can realize

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    easily his/her level of efficiency. By this performance appraisal system the

    employee gets enormous opportunity to enhance their skills by special

    training and various other m~nagement programmes.

    4. Threats -While evaluating an employees performance the performance

    appraisal system there is always a chance of fear that those employees who

    are unable to achieve their target can take it as a huge set back for them and

    in the log term it tends to decrease their efficiency level how good the

    employee is and thus it effect the over all performance of the organization.

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    CONCLUSIONS

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    CONCLUSIONS

    Conclusion

    The analysis and interpretation of data on study of performance appraisal and

    its effectiveness in an organisation led to the following conclusions:

    The promotion rule though defined need to be communicated to every

    employee before appraisal process is done and also justify the promotion as

    a result of the appraisal. That the promotion policy followed differs at

    different position and category. A uniformity has to be there in the

    implementation of promotion policy at all levels

    The process of performance appraisal followed in Dabur India Ltd. at the

    supervisory and above level IS to say not good but of satisfactory level.

    The employees do not rate it very good

    The appraisal outcome has to be used frequently for the purpose of reward

    on performing well together with the feedback on the performance. Also

    when performance goes down employee has to be given feedback and

    motivated to do better.

    The organisation at present doesn't lay career planning nad career sucession

    plans.

    In Dabur India Ltd. feedback is being provided to the employee though on

    a few occasion.

    Performance appraisal in Dabur India Ltd is done on an annual basis.

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    More emphasis on training and job rotation as remedial measures.

    The mechanism of counselling pre-performance and post performance is

    not in practice at the organisation in strict term. During. the course of study

    suggestion came from the employee side for the need of counselling.

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    RECOMENDATIONS

    Training the Appraisee: It is proposed that appraiser be trained for clear

    understanding of the system and its objective and also counselled to be

    honest, fair, just, unbiased in appraising the appralsee.

    Factors/traits of evaluation: It is proposed that appraisee evaluated on

    above factors/traits be given suitable remark or justification for being given

    different quantitative grade.

    Greater clarity has to be has to there in terms of job responsibility. This is

    possible when the appraisal is done on the basis of the description.

    In the organization, performance appraisal is done on an annual basis

    which should be done Quaterly to make it more effective.

    Consistency is demanded in the promotional policy. It should not change

    every year.

    Monetary difference between two grades should not be large, it should be

    motivating in nature.

    Performance appraisal system should be made more transparent and

    rationale.

    Performance feedback: The performance feedback sessions should be

    improved which would results in increasing employee motivation to

    improve performance. The following could be incorporated.

    Pin point the problem behaviour and make sure the employee is aware

    of it

    Make sure the employee understands the consequences of the problem

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    behaviour. Get employee's commitment to change and make sure he

    cares about the change

    Assistance should be provided to improve poor performance. Make a

    realistic plan appropriate to the behaviour and set a time frame for

    improvement.

    To make sure to review performance time to time

    The other change which has to be incorporated at the supervisor and the

    level above are:

    These should be listing down of task undertaken during the last one

    year and the result achieved.

    In some areas of performance there should be self appraisal and more

    and more counselling so that employee improve upon weak area and

    understand what is expected of him/her at the organization level.

    Based on the above an open appraisal system is suggested.

    In an open appraisal the employee would come together to set the targets, to

    understand the mutual expectations and support to be provided by the

    appraiser to the employee for achieving mutually accepted goals/targets.

    Through this process of setting targets the interpersonal relationship between

    the appraiser and the employee would improve.

    The open appraisal system reduces the whims and fancies of the appraiser. It

    promotes result-orientation as it is based on performance rather than on

    personality based appraisal.

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    LIMITATIONS

    1. During the study, on many occasions the respondent groups gave us a

    cold shoulder.2. The respondents from whom primary data was gathered any times

    displayed complete ignorance about the complain, which was being

    studied.

    3. Lack of time is the basic limitation in the project.

    4. Some employers& co-workers refuses to cooperate with the queries.

    5. Some employers gave biased or incomplete information regarding the

    study.

    6. Money played a vital factor in the whole project duration.

    7. Lack of proper information and experience due to short period of time.

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    Page No.79

    a) Questionnaire

    b) Bibliography

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    Page No.80

    QUESTIONNAIRE

    TO STUDY PERFORMANCE APPRAISAL SYSTEM

    Q.1. Is the promotional policy well defined in your organization?

    a. Yes b. No c. can't say

    Q.2. Do you know the objectives of the Performance appraisal system. If yes kindly

    specify.

    Q.3. How often the performance appraisal form is filled or Performance Appraisal is

    done.

    a. fortnightly. b. monthly c. six-monthly. d. annually

    e. not fixed.

    Q.4. On what basis is the performance appraisal done.

    a. merit cum seniority b. seniority cum merit. c. merit only

    d. seniority only. e. any other. Pl. specify

    Q.5 Who appraises you?

    a. appraisal committee. b. your immediate supervisor

    c. self-appraisal d. 360 degree appraisal.

    e. any other please specify

    Q.6. What methods are being used for performance appraisal

    a. forced choice distribution method. b. essay method

    c. ranking method. d. critical incident method

    e. any other, kindly specify

    Q.7. In your opinion does it identify the training needs?

    a. to a large extent b. to some extent c. cant say d. not at all

    Q.8. Is the promotional policy linked with the performance appraisal system

    a. yes b. no c. can't say

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    Q.9. Are the issues like career planning and succession planning a part of company's

    policy

    a. yes b. no c. can't say.

    Q.I0 Does the system help you in aligning your goals with those of the organization.

    a. yes b. no c. can't say

    Q.11. What role does top management play in the performance appraisal. kindly

    comment.

    Q.12. Are you a part of the appraisal committee

    a. yes b. no

    Q 13 . Do the employees get the feedback of performance appraisal

    a. yes, every time. b. often, but not always.

    c. only when required

    d. rarely e. never

    Q.14 Does the organization provide counseling after the appraisal.

    a. always b. often c. rarely d. never. e. can't say.

    Q.15. Who does the counseling

    a. trained professionals b. untrained counselors. c. can't say

    Q.16. What kind of remedial measures are taken.

    a. job rotation b. sent to training programmes c. counseled

    d. any other, kindly specify

    Q.17. How do you rate the overall assessment of performance appraisal

    a. Outstanding b. Very good c. Good d. Satisfactory

    e. Poor

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    Page No.82

    Q.18. What do you feel are the positives in the perfomance appraisal system in your

    organization, Kindly mention

    Q.19 What do you feel are the shortcomings of the performance appraisal system

    being followed in your organization, Kindly mention

    Q.20. For how long have you been working in this organisation

    Q.21. Suggestion towards improving the performance appraisal system in your

    organisation

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    BIBLOGRAPHY

    1) Flippo EdwinB., Personnel management, Edition sixth, Tata Mc Graw Hills,

    1984, p.g. 225-230

    2) Gupta, C.B., Human Resource Management, Edition Fifth(Reprint),Sultan

    Chand and Sons, New Delhi 2001, P.G. 5.3-5.10

    3) Rao, P. Subba,Essentials of Human Resource Management and Industrial

    Relations;Edition Second, Himalaya Publishing House, New Delhi 2001,

    p.g.206-210

    WEB SITES SURFED

    www.google.com

    www.indiatimes.com

    www.msn.com