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PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 1

SUMMER TRAINING REPORT

ON

PERFORMANCE APPRAISAL

Submitted in partial fulfillment of the requirements

for

Master of Business Administration (M.B.A)

BY

NIDHI GOSSEL

ENROLMENT NO0121MBA144

BATCH OF 2012-2014

Doon Business School

122Mi,Behind Pharma City, Selaqui, Dehradun-248001,

Uttarakhand


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ACKNOWLEDGEMENT

I express my sincere thanks to my Industry guide, MR. BHARAT BHUSHAN

RATTAN , Deptt. HR

and my Internal guide, MRS. PUSHPA KATARIA,

Deptt. HR for guiding me right path from the inception till the successful completionof

the project.

I sincerely acknowledge them for extending their valuable guidance, support for

literature, critical reviews of project and the report and above all the moral support

they

had provided to me with all stages of this project.

I would also like to thank the supporting staff MS. NEHA SIROHI , MS. BHAWNA

&

MRS. SIMPLE from HR Department, for their help and cooperation throughout the

project.

Student Name : Signature :

Date :


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CERTIFICATE OF ORIGINALITY

I , Enrollment No. of

, am a full-time bona fide student of Master of Business Administration (MBA)

Program of Doon Business School, Dehradun. I hereby certify that this training report

/ project work carried out by me

at

on_____________________ submitted in partial fulfillment of the requirements of

the program is an original work of mine under the guidance of the industry guide

and

internal (faculty) guide and is not based on or

reproduced from any existing work of any other person or on any earlier work

undertaken at any other time or for any other purpose, and has not been submitted

anywhere else at any time.

Students Signature :

Date :

Internal Guides Signature :

Date :


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EXECUTIVE SUMMARY

My Internship at AKUMS DRUGS & PHARMACEUTICALS LTD. was a great

exposure to the industry. After going through my summer internship program , I had

a firsthand experience of how an industry and HR Department works.

INTRODUCTION OF PROJECT

This project is about Performance appraisal system at AKUMS DRUGS AND

PHARMACEUTICALS Ltd. Performance appraisal is a systematic and periodic

process that asses an individual employees job performance and productivity in

relation to certain pre-established criteria and organizational objectives.

PROJECT TITLE

The title of the project is Performance Appraisal and its implementation at AKUMS

DRUGS AND PHARMACEUTICALS Ltd. As the name indicates it is an study of

Performance Appraisal system prevalent in the organization.

ORGANISATION

Akums Drugs & Pharmaceuticals Ltd, Haridwar, (India), is an internationally

recognized WHO-GMP certified and one of the leading contract manufacturing and

has rapidly emerged as the premier integrated pharmaceutical company in India.

Akums Drugs & Pharmaceuticals Ltd. was incorporated on December 19th, 2004. Its

business focuses on the manufacture and marketing of pharmaceutical products and

services to clients across the globe.

The company is one of the largest manufacturers and six state-of-the-

art manufacturing facilities have huge per day capacity to produce formulations in

practically all dosage forms, i.e. Tablets, Capsules, Soft Gels, Dry Syrups, Liquid

Orals, Powder in Sachet, Dry & Liquid Injections, Pre-filled Syringes, Large Volume

Parenterals (up to 100 ml) and Eye / Ear / Nasal Drops in Form Fill & Seal and Three

Piece Packs.


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TABLE OF CONTENTS

S. NO CONTENTS PAGE

NO.

1 Annexure 1 1

2 Acknowledgement 2

3 Certificate of Originality 3

4 Executive Summary 4

5 Contents 5

6 PART - A 6

7 Industry Profile 7

8 Company Profile 13

9 Mckinseys 7S frame work 35

10 SWOT Analysis 38

11 Learning Experience 39

12 PART - B 40

13 Statement Of The Problem 41

15 Objectives of The Study 42

16 Scope Of The Study 43

17 Methodology 4418 Limitations Of The Study 46

19 Project Rationale 47

20 Data Analysis 60

21 Conclusion 68

22 Suggestions 69

23 Bibliography 70

24 Questionnaire 71


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PART - A


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INDUSTRY PROFILE

The pharmaceutical industry develops, produces and

markets drugs orpharmaceuticals licensed for use as medications.[1]Pharmaceutical

companies are allowed to deal in generic orbrand medications and medical devices.

They are subject to a variety of laws and regulations regarding the patenting, testing

and ensuring safety and efficacy and marketing of drugs. The

word pharmaceutical comes from the Greek word pharma.

PHARMACEUTICAL INDUSTRY IN INDIA

The Pharmaceutical industry in India is the world's third-largest in terms of volumeand stands 14th in terms of value.According to Department ofPharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's

pharmaceuticals industry between 2008 and September 2009 was US$21.04 billion.While the domestic market was worth US$12.26 billion. Sale of all types ofmedicines in the country is expected to reacharound US$19.22 billion by 2012.

Exports of pharmaceuticals products from India increased from US$6.23 billion in

200607 to US$8.7 billion in 200809 a combined annual growth rate of 21.25%.According to PricewaterhouseCoopers (PWC) in 2010, India joined among the leagueof top 10 global pharmaceuticals markets in terms of sales by 2020 with valuereaching US$50 billion.Some of the major pharmaceutical firms including SunPharmaceutical, Cadila Healthcare and Piramal Enterprises.

The government started to encourage the growth of drug manufacturing by Indiancompanies in the early 1960s, and with the Patents Act in 1970. However, economicliberalisation in 90s by the former Prime MinisterP.V. Narasimha Rao and the thenFinance Minister, Dr. Manmohan Singh enabled the industry to become what it istoday. This patent act removed composition patents from food and drugs, and though

it kept process patents, these were shortened to a period of five to seven years.The lack of patent protection made the Indian market undesirable to the multinationalcompanies that had dominated the market, and while they streamed out. Indiancompanies carved a niche in both the Indian and world markets with their expertise inreverse-engineering new processes for manufacturing drugs at low costs. Althoughsome of the larger companies have taken baby steps towards drug innovation, theindustry as a whole has been following this business model until the present.

India's biopharmaceutical industry clocked a 17 percent growth with revenues of Rs.137 billion ($3 billion) in the 200910 financial year over the previous fiscal. Bio-

pharma was the biggest contributor generating 60 percent of the industry's growth at

Rs. 88.29 billion, followed by bio-services at Rs. 26.39 billion and bio-agri at Rs.19.36 billion.
http://en.wikipedia.org/wiki/Drughttp://en.wikipedia.org/wiki/Pharmaceuticalhttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Medicationhttp://en.wikipedia.org/wiki/Pharmaceutical_industry#cite_note-1http://en.wikipedia.org/wiki/Pharmaceutical_industry#cite_note-1http://en.wikipedia.org/wiki/Pharmaceutical_industry#cite_note-1http://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Pharmaceuticalhttp://en.wikipedia.org/wiki/Pharmakeiahttp://en.wikipedia.org/wiki/Pharmaceutical_industryhttp://en.wikipedia.org/wiki/Ministry_of_Chemicals_and_Fertilizers_(India)http://en.wikipedia.org/wiki/PricewaterhouseCoopershttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Cadila_Healthcarehttp://en.wikipedia.org/wiki/Piramal_Enterprises_Ltdhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/P.V._Narasimha_Raohttp://en.wikipedia.org/wiki/Dr._Manmohan_Singhhttp://en.wikipedia.org/wiki/Biopharmaceuticalhttp://en.wikipedia.org/wiki/Biopharmaceuticalhttp://en.wikipedia.org/wiki/Dr._Manmohan_Singhhttp://en.wikipedia.org/wiki/P.V._Narasimha_Raohttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Piramal_Enterprises_Ltdhttp://en.wikipedia.org/wiki/Cadila_Healthcarehttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/PricewaterhouseCoopershttp://en.wikipedia.org/wiki/Ministry_of_Chemicals_and_Fertilizers_(India)http://en.wikipedia.org/wiki/Pharmaceutical_industryhttp://en.wikipedia.org/wiki/Pharmakeiahttp://en.wikipedia.org/wiki/Pharmaceuticalhttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Pharmaceutical_industry#cite_note-1http://en.wikipedia.org/wiki/Medicationhttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Pharmaceuticalhttp://en.wikipedia.org/wiki/Drug


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Pharmaceutical industry today

The number of purely Indian pharma companies is fairly low. Indian pharma industryis mainly operated as well as controlled by dominant foreign companies havingsubsidiaries in India due to availability of cheap labour in India at lowest cost. In2002, over 20,000 registered drug manufacturers in India sold $9 billion worth offormulations and bulk drugs. 85% of these formulations were sold in India while over

60% of the bulk drugs were exported, mostly to the United States and Russia. Mostof the players in the market are small-to-medium enterprises; 250 of the largestcompanies control 70% of the Indian market.Thanks to the 1970 Patent Act,

multinationals represent only 35% of the market, down from 70% thirty years ago.

Most pharma companies operating in India, even the multinationals, employ Indiansalmost exclusively from the lowest ranks to high level management. Mirroring thesocial structure, firms are very hierarchical. Homegrown pharmaceuticals, like manyother businesses in India, are often a mix of public and private enterprise. Althoughmany of these companies are publicly owned, leadership passes from father to son and

the founding family holds a majority share.

In terms of the global market, India currently holds a modest 12% share, but it hasbeen growing at approximately 10% per year. India gained its foothold on the globalscene with its innovatively engineered generic drugs and active pharmaceuticalingredients (API), and it is now seeking to become a major player in outsourcedclinical research as well as contract manufacturing and research. There are 74 USFDA-approved manufacturing facilities in India, more than in any other countryoutside the U.S, and in 2005, almost 20% of all Abbreviated New Drug Applications(ANDA) to the FDA are expected to be filed by Indian companies. Growth in otherfields notwithstanding, generics are still a large part of the picture. London research

company Global Insight estimates that Indias share of the global generics market willhave risen from 4% to 33% by 2007. The Indian pharmaceutical industry has becomethe third largest producer in the world and is poised to grow into an industry of $20

billion in 2015 from thecurrent turnover of $12 billion.


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Patent

As it expands its core business, the industry is being forced to adapt its businessmodel to recent changes in the operating environment. The first and most significantchange was the 1 January 2005 enactment of an amendment to Indias patent law thatreinstated product patents for the first time since 1972. The legislation took effect onthe deadline set by the WTOs Trade-Related Aspects of Intellectual Property Rights(TRIPS) agreement, which mandated patent protection on both products and

processes for a period of 20 years. Under this new law, India will be forced torecognise not only new patents but also any patents filed after 1 January 1995. Indiancompanies achieved their status in the domestic market by breaking these product

patents, and it is estimated that within the next few years, they will lose $650 millionof the local generics market to patent-holders.

In the domestic market, this new patent legislation has resulted in fairly clearsegmentation. The multinationals narrowed their focus onto high-end patients whomake up only 12% of the market, taking advantage of their newly bestowed patent

protection. Meanwhile, Indian firms have chosen to take their existing productportfolios and target semi-urban and rural populations.

Product development

Indian companies are also starting to adapt their product development processes to thenew environment. For years, firms have made their ways into the global market byresearching generic competitors to patented drugs and following up with litigation to

challenge the patent. This approach remains untouched by the new patent regime andlooks to increase in the future. However, those that can afford it have set their sightson an even higher goal: new molecule discovery. Although the initial investment ishuge, companies are lured by the promise of hefty profit margins and thas a legitimatecompetitor in the global industry. Local firms have slowly been investing moremoney into their R&D programs or have formed alliances to tap into theseopportunities.

Small and medium enterprises

As promising as the future is for a whole, the outlook for small and mediumenterprises (SME) is not as bright. The excise structure changed so that companiesnow have to pay a 16% tax on the maximum retail price (MRP) of their products, asopposed to on the ex-factory price. Consequently, larger companies are cutting backon outsourcing and what business is left is shifting to companies with facilities in thefour tax-free statesHimachal Pradesh, Jammu & Kashmir, Uttaranchal andJharkhand. Consequently a large number of pharmaceutical manufacturers shiftedtheir plant to these states, as it became almost impossible to continue operating innon-tax free zones. But in a matter of a couple of years the excise duty was revised ontwo occasions, first it was reduced to 8% and then to 4%. As a result the benefits ofshifting to a tax free zone was negated. This resulted in, factories in the tax free zones,

to start up third party manufacturing. Under this these factories produced goods underthe brand names of other parties on job work basis.
http://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterprises


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As SMEs wrestled with the tax structure, they were also scrambling to meet the 1 Julydeadline for compliance with the revised Schedule M Good Manufacturing Practices(GMP). While this should be beneficial to consumers and the industry at large, SMEshave been finding it difficult to find the funds to upgrade their manufacturing plants,resulting in the closure of many facilities. Others invested the money to bring their

facilities to compliance, but these operations were located in non-tax-free states,making it difficult to compete in the wake of the new excise tax.

Challenges

Even after the increased investment, market leaders such as Ranbaxy and Dr. ReddysLaboratories spent only 510% of their revenues on R&D, lagging behind Western

pharmaceuticals like Pfizer, whose research budget last year was greater than thecombined revenues of the entire Indian pharmaceutical industry. This disparity is toogreat to be explained by cost differentials, and it comes when advances in genomics

have made research equipment more expensive than ever. The drug discovery processis further hindered by a dearth of qualified molecular biologists. Due to the disconnectbetween curriculum and industry, pharmas in India also lack the academiccollaboration that is crucial to drug development in the West and so far.

Relationship between pharmaceuticals and biotechnology

Unlike in other countries, the difference between biotechnology and pharmaceuticalsremains fairly defined in India. Bio-tech there still plays the role of pharmas littlesister, but many outsiders have high expectations for the future. India accounted for2% of the $41 billion global biotech market and in 2003 was ranked 3rd in the Asia-Pacific region and 11th in the world in number of biotechs.[45] In 2004-5, the Indian

biotech industry saw its revenues grow 37% to $1.1 billion. The Indian biotechmarket is dominated by biopharmaceuticals; 75% of 20045 revenues came from

biopharmaceuticals, which saw 30% growth last year. Of the revenues frombiopharmaceuticals, vaccines led the way, comprising 47% of sales. Biologics andlarge-molecule drugs tend to be more expensive than small-molecule drugs, and Indiahopes to sweep the market in biogenerics and contract manufacturing as drugs go off

patent and Indian companies upgrade their manufacturing capabilities.

Most companies in the biotech sector are extremely small, with only two firmsbreaking 100 million dollars in revenues. At last count there were 265 firms registered

in India, over 75% of which were incorporated in the last five years.The newness ofthe companies explains the industrys high consolidation in both physical andfinancial terms. Almost 50% of all biotechs are in or around Bangalore, and the toopten companies capture 47% of the market. The top five companies were homegrown;Indian firms account for 62% of the biopharma sector and 52% of the industry as awhole. The Association of Biotechnology-Led Enterprises (ABLE) is aiming to growthe industry to $5 billion in revenues generated by 1 million employees by 2009, anddata from the Confederation of Indian Industry (CII) seem to suggest that it is

possible.


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Comparison with the US

The Indian biotech sector parallels that of the US in many ways. Both are filled withsmall start-ups while the majority of the market is controlled by a few powerfulcompanies. Both are dependent upon government grants and venture capitalists forfunding because neither will be commercially viable for years. Pharmaceuticalcompanies in both countries have recognised the potential effect that biotechnologycould have on their pipelines and have responded by either investing in existing start-ups or venturing into the field themselves.In both India and the US, as well as in muchof the globe, biotech is seen as a hot field with a lot of growth potential.

Relationship with IT

Many analysts have observed that the hype around the biotech sector mirrors that ofthe IT sector. Biotech colleges have been popping up around the country eager toservice the pools of students that want to take advantage of a growing industry. The

International Finance Commission, the private investment arm of the World Bank,called India the "centerpiece of IFCs global biotech strategy." Of the $110 millioninvested in 14 biotech projects investment globally, the IFC has given $43 million to4 projects in India. According to Dr. Manju Sharma, former director of theDepartment of Biotechnology, the biotech industry could become the "single largestsector for employment of skilled human resource in the years to come. British PrimeMinister Tony Blair was similarly impressed, citing the success of Indias biotechindustry as the reason for his own countrys own biotech opportunities. Malaysia isalso looking to India as an example for growing its own biotech industry.

Government support

The Indian government has been very supportive. It established the Department ofBiotechnology in 1986 under the Ministry of Science and Technology.[47] Sincethen, there have been a number of dispensations offered by both the centralgovernment and various states to encourage the growth of the industry. Indiasscience minister launched a program that provides tax incentives and grants for

biotech start-ups and firms seeking to expand and establishes the Biotechnology ParksSociety of India to support ten biotech parks by 2010. Previously limited to rodents,animal testing was expanded to include large animals as part of the ministersinitiative.[10] States have started to vie with one another for biotech business, and

they are offering such goodies as exemption from VAT and other fees, financialassistance with patents and subsidies on everything ranging from investment to landto utilities.


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Foreign investment

The government has also taken steps to encourage foreign investment in its biotechsector. An initiative passed earlier this year allowed 100% foreign direct investmentwithout compulsory licensing from the government. In April, a delegation headed bythe Kapil Sibal, the minister of science and technology and ocean development,visited five cities in the US to encourage investment in India, with special emphasison biotech. Just two months later, Sibal returned to the US to unveil Indias biotechgrowth strategy at the BIO2005 conference in Philadelphia. 100%of FDI is allowed inIndia.

Challenges

The biotech sector faces some major challenges in its quest for growth. Chief amongthem is a lack of funding, particularly for firms that are just starting out. The mostlikely sources of funds are government grants and venture capital, which is a

relatively young industry in India. Government grants are difficult to secure, and dueto the expensive and uncertain nature of biotech research, venture capitalists arereluctant to invest in firms that have not yet developed a commercially viable product.

The government has addressed the problem of educated but unqualified candidates inits Draft National Biotech Development Strategy. This plan included a proposal tocreate a National Task Force that would work with the biotech industry to revise thecurriculum for undergraduate and graduate study in life sciences and biotechnology.The governments strategy also stated intentions to increase the number of PhDFellowships awarded by the Department of Biotechnology to 200 per year. Thesehuman resources will be further leveraged with a "Bio-Edu-Grid" that will knit

together the resources of the academic and scientific industrial communities, much asthey are in the US.
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COMPANY PROFILE

( AKUMS DRUGS & PHARMACEUTICALS LTD)

BACKGROUND AND INCEPTION OF THE COMPANY

Akums Drugs & Pharmaceuticals Ltd. was incorporated on December 19th, 2004.

This decision of the Company was historic in more ways than one. It was to mark the

beginning of a long and eventful journey into Pharmaceutical Business. Over the

years Akums has evolved from a manufacturer of few products into a fully integrated

pharmaceutical company. Today, they leverage a formidable combination of

manufacturing technologies and research skills to develop affordable and unmet

medical needs.

2004

Akums began operations in Haridwar with Beta lactum /General blockwith

products like tablets, hard gelatin capsules, dry syrups & liquid orals. Year 1 turnover

: Rs.10 million. Within a year, the marketing effort expands to cover all the states ofIndia. A compact manufacturing facility for tablets/capsules was set up at Haridwar.

2007

Akums Plant II & III were set up in Haridwar that produce medicines in the form of

liquid orals and jellies (Plant-II) and liquid and dry injections, ear/eye /nasal drops.

2010

Akums started its IV & V Plant in the year 2010 with Plant IV producing wide range

of Hormonal Preparations in oral (solid & Liquid) and Injectables forms and Plant V

producing wide range of skin ointments & cosmetic preparations.

Akums first subsidiary MAXCURE was also setup in 2010 that manufacturesAyurvedic Nutraceutical & Food supplements for top Pharma companies of India.


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BUSINESS MODEL OF THE COMPANY

HISTORY AND FACTS

Founded 19th December 2004

Headquarters304, Mohan Place, LSC, Block-C, Saraswati

Vihar, New Delhi, Delhi - 110 034, India


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Industry Pharmaceutical

Business Type Manufacturer & Exporters

Ownership Type Public limited Company

Company Board

Chairman &

MDMr. D.C Jain

Promoter

directors

Mr. Sanjeev

Jain

Mr. Sandeep

Jain

2011 Revenue 6.5 billion INR (approx.)

Product Available Area Over 25 countries

Product Range 1100 products (approx.)

Employees 5,500 (2011)

Manufacturing Capacity 22 Billion

Subsidiary Maxcure Ltd.

Website www.akums.in

NATURE OF BUSINESS

Pharmaceutical company based in India.

VISION & MISSION


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VISION : Our Vision is to become an unsurpassed pharmaceutical manufacturing

company, leading the way to a healthier world. Our Vision is reflected in every

department of our organization as we desire to conquer the pharmaceutical domain

globally.

MISSION : To revolutionize the Global Health Care system by providing superior

quality products for ultimate customer satisfaction.

PRODUCTS SERVICE PROFILE

Pharmaceutical Tablets

We hold expertise in successfully offering in the Indian markets around forty different

types of pharmaceutical tablets that are carefully formulated to fight diseases as well

as keep people healthy. These tablets are made available in tamper proof packaging so

as to provide in these longer shelf life.

Pharmaceutical Capsules

We offer extensive research based Pharmaceutical Capsules that are highly effective

as well as accurate in composition. Safe to consume, these Capsules are offered by us

in appropriate packaging so as to maintain their properties for a long period of time.

Its tamper proof packaging also ensures these remain safe as well as deliver higher

shelf life.

Soft Gelatin Capsules

We offer Soft Gelatin Capsules for meeting the treatment needs of various ailments.These Soft gelatin capsules consist of filling that contain dissolved/suspected active

substance, and of a one-piece shell. Owing to the hermetic seal, filling ingredients are

protected against any harmful influence of environment.

Dry Syrups

We also hold expertise in the manufacturing of Dry Powder Syrups. These are very

useful in meeting the successful treatment needs of various ailments. These syrups


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can be orally consumed and are clinically tested so as to ensure these have no side

effect.

Prefilled Syringes

We are engaged in meeting the manufacturing demands of Prefilled syringes. With

the rapid rise in technology in the medical field, these needles are designed to cater to

the needs of ill people. We offer these in tamper proof quality packaging so as to

ensure their safety as well as longer shelf life.

Hormonal Preparations

Recognized by W.H.O G.M.P and 14001:2004 specifications, Akums specialize inproducing and distributing hormonal preparations. Our company holds GMP plant

and top-ranking pharmaceutical equipments offering the best quality preparations and

serving healthier future of brightness to the world.

Eye & Ear Drops

We hold expertise in offering Eye, Ear, Nasal Drops in FFS & 3-pc Packs. A result of

continuous R&D done at our unit, these drops manufactured by us are carefully

formulated and used for curing eye as well as other infections/ related ailments. Our

expertise lies in offering these in tamper proof quality packaging.

Liquid Orals

We offer high range of oral liquid section, which caters to the needs of the

pharmaceutical industry. The dosage is formulated using high quality ingredients and

technologically advanced machines. Our range is highly effective and renders good

results and being the packing done in safe and hygienic conditions it ensures higheffective and enhanced shelf life.

Creams & Ointments

We offer customers Creams & Ointments that help in providing velvety smooth

texture that improves skin firmness, elasticity, minimizes wrinkles as well as tightens

the skin. Featuring a perfect blend of skin conditioning natural oil, vitamins &

essential nutrients, these ointments helps in reducing as well as in preventing fine andexpression lines.


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Ayurvedic Products

We are manufacturing the Traditional medicines in the traditional way of processing.

The company has played a pioneering role in re-establishing ancient knowledge withmodern research and manufacturing techniques. And provide its gentle healing touch

to millions in the world. We constructed & follow-up W.H.O G.M.P specifications.

The processing & Packing of all the products as per C.G.M.P regulation, Akums is

committed to bring Ayurveda as the mainstream health management system.

Herbal Nutraceuticals

We bring to our customers a range of Herbal Nutraceuticals that are manufactured

using premium grade raw material. Available in tamper proof packaging, these are

widely appreciated for their effectiveness, purity as well as safe usage.


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MANUFACTURING RANGE


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AREA OF OPERATIONS : GLOBAL / NATIONAL /

REGIONAL

Akums has ambitious plans to boost its overseas business in a big way.

Akums has pierced into Export market and has made its presence in countries namely;

Libya, China, Uganda, Nigeria, Ghana, Belarus, Aman, Iraq, Dubai, Korea, Hong

Kong, Philippines, Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan, Ukraine,

Vietnam, Cambodia, Kenya, Singapore, Cuba, Venezuela ,Yemen & Cote Dlviore.

Akums has ambitious plans to boost its overseas business in a big way. Akums has

entered into Various Business collaboration agreement with companies outside India,Focusing on building Global Foot Prints through channel partners.

Company has plans to make its presence felt through its Quality Products across the

Globe. Akums is looking at verticals; aiming to acquire a Pharma Company in Latin

America and/or U.K. Strategic Alliance with ELIS PHARMACEUTICALS Ltd., a

British virgin Island company for export of Pharmaceuticals Formulations globally

and to set up a pharmaceutical unit in Dubai, UAE.

CUSTOMERS BASE

Akums units have been successfully audited and approved by the M.O.H.

Departments of Belarus, Libya, Cuba and by the QA/QC personnel of foreign

companies, namely; Ful-Ford(U.S.A.), Abbot (Chicago), Med-Interplast (Belarus),

Alwatan(Libya), United Laboratories (Philippines), Kalbe International(Indonesia),

Ananta(Ukraine), Alter-ego(Ukraine), Coral Med (Russia).


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SOME ASSOCIATES


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OWNERSHIP PATTERN

SHARES of the company are distributed among only three members-

Mr. D.C.Jain (Chairman)

Mr. Sandeep Jain (Director)

Mr. Sanjeev Jain (Director)

COMPETITORS INFORMATION

Other Pharmaceutical companiessome examples are

Apco pharma Ltd. , Arogya formulation pvt. Ltd. , Custodian pharma private ltd. ,

Divine pharmaceuticals pvt. Ltd.


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INFRASTRUCTURAL ACTIVITIES

Akums six independent State-of-the-art manufacturing facilities are having modern &

sophisticated manufacturing facilities and are driven by best industry practices to

provide the highest quality of products to a range of leading customers in the

pharmaceuticals and Health care sectors. The manufacturing and delivery of products

are driven by customer specific requirements, Legislative standards of the

Governments of India and other countries, in adherence to pharmacopoeia standards

as per the parameters defined by drug master files, other regulatory bodies across the

globe.

Akums has Ultra modern & sophisticated machineries including 60 packaging lines 5

ALU-ALU, 2 AF150,RMGs, 4 Fluid Bed Processors, Auto-Coaters, 2 FFS, 6

Tunnels, Sophisticated R & D, F & D and microbiology laboratories equipped with

latest instruments, 45 HPLCs, 2 FTIRs, GC,TOC, DG Sets, 5,000 KVA water

systems, SCADA, Hot & Cold Loop, 450- AHUs etc.

After setting up of the manufacturing units, machines were added from year to year.

As per advice of the internal auditors, the installed capacities of the units were revised

based on the additions made from timeto time.

The installed capacities have been certified by Chartered Engineers, Secretariat ofIndustrial Approvals / District Industrial Centers, Excise Dept. & Drugs Departmentof Uttarakhand.

Managing our environmental impact is a key aspect of being a responsible business.

The medicines we make require the use of valuable resources, including energy, water

and raw materials. We know that the way we operate our business today can have a

long-lasting impact. Akums takes a holistic approach to understanding and managing

our environmental impacts across the product life cycle. To operate most sustainably,

we are committed to conducting our business in an environmentally, socially and

financially responsible manner.

Safeguarding Employees

Employee health and safety is our first priority. We maintain an integrated program of

employee consultation, workplace inspections and training across all areas of our

business. Our approach is to promote a strong safety culture, one that empowers all ofour employees to report and address safety issues.


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Health & Safety

Placing our employees health and safety among our highest priorities is consistent

with the Akums value of respect for people. Our employees are our greatest asset, andwe want them to operate in the safest environment possible. Our health and safety

programs are tailored to each of our business areas, including marketing,

manufacturing, research and development, and administrative services. Successful

injury prevention requires every employee to be cautious about keeping himself or

herself and others safe.

As one of the Indias largest providers of medicines, we strive to make peoples lives

betterand we want the same for our own employees. We want our employees to be

healthy and productive for the work they do at Akums and in their lives outside of the

workplace.


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ACHIEVEMENTS / AWARDS

National Award 2010 by Govt. of India for Excellence in Product Quality

National Award 2010 by Govt. of India for Outstanding Entrepreneurship

Support & Encouragement Cognizance By IIT Roorkee

Corporate Excellence Award By Amity

Largest manufacturer of Best Quality Pharmaceuticals formulation Award By

FOPE

Business Partner of Choice Award By Primal Healthcare Ltd.

Most Valued Customer Awards By ICICI

Udyog Ratan Awards By IME

REGULATORY ACCREDITATIONS

At Akums, we strongly believe that Quality is the way ahead and there is no

substitute for it. So we leave no stone unturned to ensure that every product

that Akums manufacture adheres to the set quality control demands in any stage of its

production and distribution.

Our dedicated efforts are visible in the number of plants attaining world -wide

regulatory accreditations.

Betalactam Facility & Cephalosporin FacilitySolid Oral Dosage Forms

WHO GMP Certificate, ISO 14001:2004, QMSHACCP, MOHLibya, MOH

Ivory Coast, MOHYemen, Ministry of Health and NutritionSri Lanka, Food and

Drugs BoardGhana


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Liquid Oral Dosage Forms

WHO GMP Certificate, ISO 14001:2004,MOHLibya, MOHIvory Coast, MOH

Yemen, Food and Drugs BoardGhana

Injectable Facility

ANVISABrazil, WHO GMP Certificate (LVP), WHO GMP Certificate (SVP), ISO

14001:2004, PPB -Kenya, MOHLibya, NDAUganda, DDANepal, MOH

Yemen, MOHIvory Coast , Food and Drugs BoardGhana

Hormonal Facility

WHO GMP Certificate, ISO 14001:2004, MOHIvory Coast, Food and Drugs Board

Ghana

Cosmetic & Dermatology Facility

WHO GMP Certificate, ISO 14001:2004, Food and Drugs BoardGhanna.

Neutraceutical facility

GMP Certificate, ISO 14001:2004, QMS - HACCP, NSF International, Food and

Drugs BoardGhana


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WORK FLOW MODEL

IT HEADEA TO

DIRECTOR

COSTING &BUDGETING

ACCOUNTSR &D

DIRECTOR

CHAIRMAN

PPIC QC

CORP.QC MATERIAL &HANDLING

COMM. PROJECT & ENGG. CORP HR


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FUTURE GROWTH & PROSPECTS

Commitment to Innovation

Innovation across all aspects of our business is the key to our success. Being active in

high technology fields, they must recognize new trends at a very early stage and be

open to unconventional ideas. They see change as an opportunity and complacency as

a threat. They therefore encourage everywhere in the company the curiosity needed to

be open to the world and new ideas.

They have Audacious plans for our social, cultural and environmental impact by 2020

and as we emerge as a Top Indian conglomerate, they aim to achieve many

meaningful objectives.

The Human Footprint: Akums will educate its employee, investors, management and

all stakeholders in the benefits of living, adopting and pursuing sustainable lifestyle in

todays World. They will invest in Green technologies and embrace a responsible and

sustainable approach to sourcing and outsourcing.

Compassion: Akums will provide entire diverse employee base with access to

affordable healthcare and insurance, holistic well being facilities, care, family support

and education. They will also ensure educational and healthcare facilities for our

lower income members in an egalitarian and sustainable manner.

Philanthropy: Akums will invest a percentage of its profits towards the welfare of the

entire country and then the planet through its charitable trusts and organizations.

Thought Leadership and Mentoring : Akums will give back to the community it lives

in by providing free mentorship and entrepreneurial assistance to all citizens who

wish to better their lives.

Diversity: Like all Indian companies we are always struggling to ensure our

workplace is fair and just and looks after women, minorities and the physically

challenged. It is our belief that a diverse family makes for a richer family.


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MCKINSEYS 7S FRAMEWORK

Strategy

Structure

Systems

Style

Staff

Skills

Shared Values/ Super ordinate Goals

The Hard Ss

The hard elements are factual and easy to identify. They can be found in strategy

statements, corporate plans, organization charts, and other documentation.

The Soft Ss

The soft elements are difficult to describe since they are continuously developing and

changing. They are highly determined by the people at work in the organization.


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7-S ModelThe Hard Ss

Strategy

o

Actions a company plans in response to or in anticipation of changes inits external environment

provide Cheapest product than other companies

provide quality product

committed with their associates

Structure

o Basis for specialization and coordination, influenced primarily by

strategy and by organization size and diversity

Systemo Formal and informal procedures that support the strategy and structure

CHAIRMAN

DIRECTOR

EA TO IT HEAD R & D ACCOUNTS COSTING & QC

CORP. MATERIAL &

HANDLING

COMM. PROJ. & ENGG. CORP. HR


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7-S ModelThe Soft Ss

Style / Culture

The culture of the organization, consisting of

o Organizational culture: the dominant values, beliefs and norms which

develop over time and become relatively enduring features of

organization life

o Management style: what managers do rather than what they say (where

they spend their time and attention, what they allow, what they reward,

etc.)

Staff

Total workforce3000 people

Skills

Communication skills

Leadership skills

Motivation skills

Marketing skills

Shared values


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SWOT ANALYSIS

SWOT analysis refers to analysis of strength, weakness, opportunities and threats

present in the environment for the company.

STRENGTHS :

Experience in the manufacture and supply of pharmaceuticals.

Highly Integrated portfolio of products for the pharmaceuticals and healthcare

sectors.

Customer base across the globe including several blue chip organizations. One of the largest manufacturer/exporter of highest caliber of professionals in

scientists, engineers, lab technicians, production heads and functional

managers.

Multicultural and multidiscipline workforce that is motivated towards the

highest standards of customer satisfaction.

Strict adherence to Good Manufacturing Practices (GMP).

Driven by quality, integrity and core values.

WEAKNESSES:

Lack of unawareness in employees regarding company policies.

Low level of motivation.

OPPORTUNITIES:

Introduction of new medicines.

Manufacturing new forms of Drugs.

Entering into international market.

National or International collaborations.

THREATS:

Increasing competition.

Existing pharmaceutical companies.


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LEARNING EXPERIENCE

At the time of my internship at Akums, I learned behavioral skills, ethics of working

in a company, how to manage contact based workers, analysis of performance

appraisal, gained knowledge about performance appraisal system at Akums.


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PART-B


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GENERAL INTRODUCTION

STATEMENT OF THE PROBLEM

Study of performance appraisal system and its implementation at

Akums Drugs and Pharmaceuticals Ltd. (Haridwar).


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OBJECTIVE OF THE STUDY

(Performance Appraisal and its Implementation)

Main objectives of the study :

To study the current performance appraisal system of the organization and

identify the gaps between the current state and desired state.

To find out the performance dimensions relevant to the strategic plan of the

company. To identify the potential areas for the scope of improvement in the current

system and thereby in the organizational performance.

To study the implications of an effective performance appraisal system on the

productivity of employees and the organizational performance as a whole.

To identify the key performance indicators and critical success factors for

achieving organizational excellence.


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SCOPE OF THE STUDY

The Scope of this study is described as follows :

The study was conducted on employees from each department of the

organization.

There were samples taken from each department.

The study was also conducted on contract based workers.


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RESEARCH METHODOLOGY

SAMPLING PLAN

Sample Size : 90 Employees

Sample Area : Akums Drugs and Pharmaceuticals Ltd.

Plant1, Ranipur,

Haridwar

Duration : 1.5 months

DATA COLLECTION

Data Sources :

(a) Primary data through Questionnaire

(b) Secondary data through Internet

(c) Personal Interaction

DATA PRESENTATION AND ANALYSIS(b) Pie Diagrams


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LIMITATIONS OF THE STUDY

A few limitations and constraints came in way of conducting the present study, under

which the researcher had to work are as follows:

a) Although all attempts were made to make this an objective study, biases on thepart of respondents might have resulted in some subjectivity.

b) Though, no effort was spared to make the study most accurate and useful, thesample Size selected for the same may not be the true representative of theCompany, resulting in biased results.

c) This being the maiden experience of the researcher of conducting study suchas this, the possibility of better results, using deeper statistical techniques inanalyzing and interpreting data may not be ruled out.


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PROJECT RATIONALE

This study talks about a very important policy and factor of HRD i.e; performanceappraisal.

Importance of performance appraisal, in terms of motivating employees and thusimproving quality of work, would be clear from following description.

INTRODUCTION TO PERFORMANCEAPPRAISAL

MEANING :

Performance Appraisal is the systematic evaluation of the performance of employees

and to understand the abilities of a person for further growth and development.Performance appraisal is generally done in systematic ways which are as follows:

1. The supervisors measure the pay of employees and compare it with targets andplans.

2. The supervisor analyses the factors behind work performances of employees.3. The employers are in position to guide the employees for a better

performance.

OBJECTIVES:

Performance Appraisal can be done with following objectives in mind:

1. To maintain records in order to determine compensation packages, wagestructure, salaries raises, etc.

2. To identify the strengths and weaknesses of employees to place right menon right job.

3. To maintain and assess the potential present in a person for further growthand development.

4.

To provide a feedback to employees regarding their performance andrelated status.5. To provide a feedback to employees regarding their performance and

related status.6. It serves as a basis for influencing working habits of the employees.7. To review and retain the promotional and other training programmes.


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ADVANTAGES :

It is said that performance appraisal is an investment for the company which can bejustified by following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out thepromotion programs for efficient employees. In this regards, inefficientworkers can be dismissed or demoted in case.

2. Compensation: Performance Appraisal helps in chalking out compensationpackages for employees. Merit rating is possible through performanceappraisal. Performance Appraisal tries to give worth to a performance.Compensation packages which includes bonus, high salary rates, extra

benefits, allowances and pre-requisites are dependent on performance

appraisal. The criteria should be merit rather than seniority.3. Employees Development: The systematic procedure of performance appraisal

helps the supervisors to frame training policies and programs. It helps toanalyze strengths and weaknesses of employees so that new jobs can bedesigned for efficient employees. It also helps in framing future development

programs.4. Selection Validation: Performance Appraisal helps the supervisors to

understand the validity and importance of the selection procedure. Thesupervisors come to know the validity and thereby the strengths andweaknesses of selection procedure. Future changes in selection methods can

be made in this regard.5.

Communication: For an organization, effective communication betweenemployees and employers is very important.

6. Motivation: Performance appraisal serves as a motivation tool. Throughevaluating performance of employees, a persons efficiency can be determinedif the targets are achieved. This very well motivates a person for better job andhelps him to improve his performance in the future.


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TOOLS AND TECHNIQUES:

Following are the tools used by the organizations for Performance Appraisals of their

employees.

1. Ranking2. Paired Comparison3. Forced Distribution4. Confidential Report5. Essay Evaluation6. Critical Incident7. Checklists8. Graphic Rating Scale

9.

BARS10.Forced Choice Method11.MBO12.Field Review Technique13.Performance Test14.360 Degree Feedback

We will be discussing the important performance appraisal tools andtechniques in detail.

1. Ranking Method

The ranking system requires the rater to rank his subordinates on overallperformance. This consists in simply putting a man in a rank order. Under thismethod, the ranking of an employee in a work group is done against that ofanother employee. The relative position of each employee is tested in terms ofhis numerical rank. It may also be done by ranking a person on his job

performance against another member of the competitive group.

Advantages of Ranking Method

a) Employees are ranked according to their performance levels.b) It is easier to rank the best and the worst employee.

Limitations of Ranking Method

a) The whole man is compared with another whole man in thismethod. In practice, it is very difficult to compare individuals

possessing various individual traits.b) This method speaks only of the position where an employee stands in

his group. It does not test anything about how much better or howmuch worse an employee is when compared to another employee.

c) When a large number of employees are working, ranking of

individuals become a difficult issue.


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d) There is no systematic procedure for ranking individuals in theorganization. The ranking system does not eliminate the possibilityof snap judgements.

2. Forced Distribution method

This is a ranking technique where raters are required to allocate a certainpercentage of rates to certain categories (eg: superior, above average, average)or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the number ofcategories and percentage of employees to be allotted to each category are afunction of performance appraisal design and format. The workers ofoutstanding merit may be placed at top 10 percent of the scale, the rest may be

placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair.

Advantages of Forced Distribution

a) This method tends to eliminate raters biasb) By forcing the distribution according to pre-determined percentages,

the problem of making use of different raters with different scales isavoided.

Limitations of Forced Distribution

a) The limitation of using this method in salary administration,however, is that it may lead low morale, low productivity and highabsenteeism.

Employees who feel that they are productive, but find themselves inlower grade(than expected) feel frustrated and exhibit over a periodof time reluctance to work.

3. Critical Incident techniques

Under this method, the manager prepares lists of statements of very effective

and ineffective behaviour of an employee. These critical incidents or eventsrepresent the outstanding or poor behaviour of employees or the job. Themanager maintains logs of each employee, whereby he periodically recordscritical incidents of the workers behaviour. At the end of the rating period,these recorded critical incidents are used in the evaluation of the workers

performance. Example of a good critical incident of a Customer RelationsOfficer is : March 12 - The Officer patiently attended to a customerscomplaint. He was very polite and prompt in attending the customers problem.

Advantages of Critical Incident techniques

a)

This method provides an objective basis for conducting a thoroughdiscussion of an employees performance.


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b) This method avoids repetition bias (most recent incidents are too muchemphasized)

Limitations of Critical Incident techniques

a)

Negative incidents may be more noticeable than positive incidents.b) The supervisors have a tendency to unload a series of complaints about the

incidents during an annual performance review sessions.c) It results in very close supervision which may not be liked by an employee.d) The recording of incidents may be a chore for the manager concerned, who

may be too busy or may forget to do it.

4. Checklists and Weighted Checklists

In this system, a large number of statements that describe a specific job aregiven. Each statement has a weight or scale value attached to it. While ratingan employee the supervisor checks all those statements that most closelydescribe the behavior of the individual under assessment. The rating sheet isthen scored by averaging the weights of all the statements checked by therater. A checklist is constructed for each job by having persons who are quitefamiliar with the jobs. These statements are then categorized by the judges andweights are assigned to the statements in accordance with the value attached

by the judges.

Advantages of Checklists and Weighted Checklists

a) Most frequently used method in evaluation of the employeesperformance.

Limitations of Checklists and Weighted Checklists

a) This method is very expensive and time consumingb) Rater may be biased in distinguishing the positive and negative

questions.c) It becomes difficult for the manager to assemble, analyze and weigh

a number of statements about the employees characteristics,

contributions and behaviors.

5. 360 Degree Feedback

Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is generally used for training and development, ratherthan for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriateparties peers, supervisors, subordinates and customers, for instance complete

survey, questionnaires on an individual. 360 degree feedback is also known as themulti-rater feedback, whereby ratings are not given just by the next manager up in the


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organizational hierarchy, but also by peers and subordinates. Appropriates customerratings are also included, along with the element of self - appraisal. Once gathered in,the assessment from the various quarters are compared with one another and the

results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like thecritical incident method, it focuses on actual behavior and actual results, which can bediscussed objectively and constructively, with little or no need for a supervisor to"play God."

Advantages of 360 Degree Feedback

a. Instead of assuming traits, the MBO method concentrates on actual outcomes.If the employee meets or exceeds the set objectives, then he or she hasdemonstrated an acceptable level of job performance.

b. Employees are judged according to realoutcomes, and not on their potentialfor success, or on someone's subjective opinion of their abilities.

c. The guiding principle of the MBO approach is that direct results can beobserved easily.

d. The MBO method recognizes the fact that it is difficult to neatly dissect all thecomplex and varied elements that go to make up employee performance.

e. MBO advocates claim that the performance of employees cannot be broken upinto so many constituent parts, but to put all the parts together and the

performance may be directly observed and measured.

Disadvantages of 360 degree Feedback

a) This approach can lead to unrealistic expectations about what can and cannotbe reasonably accomplished. Supervisors and subordinates must have verygood "reality checking" skills to use MBO appraisal methods. They will needthese skills during the initial stage of objective setting, and for the purposes ofself-auditing and self-monitoring.

b) Variable objectives may cause employee confusion. It is also possible thatfluid objectives may be distorted to disguise or justify failures in performance.


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RATING ERRORS :

Performance appraisals are subject to a wide variety of inaccuracies and biasesreferred to as 'rating errors'. These errors can seriously affect assessment results.Some of the most common rating errors are :

Leniency or severity

Leniency or severity on the part of the rater makes the assessment subjective.Subjective assessment defeats the very purpose of performance appraisal. Ratings arelenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who israted unfavorably will reflect poorly on his or her own worthiness.

b) He / She may feel that a derogatory rating willbe revealed to the rateto detriment the relations between the rater and the ratee.

c) He / She may rate leniently in order to win promotions for thesubordinates and therefore, indirectly increase his/her hold over him.

Central tendency

This occurs when employees are incorrectly rated near the average or middle of thescale. The attitude of the rater is to play safe. This safe playing attitude stems fromcertain doubts and anxieties, which the raters have been assessing the rates.

Halo error

A halo error takes place when one aspect of an individual's performance influencesthe evaluation of the entire performance of the individual. The halo error occurs whenan employee who works late constantly might be rated high on productivity andquality of output as well as on motivation. Similarly, an attractive or popular

personality might be given a high overall rating. Rating employees separately on eachof the performance measures and encouraging raters to guard against the halo effectare the two ways to reduce the halo effect.

Rater effect

This includes favoritism, stereotyping, and hostility. Extensively high or low score aregiven only to certain individuals or groups based on the rater's attitude towards themand not on actual outcomes or behaviors; sex, age, race and friendship biases areexamples of this type of error.

Primacy and Regency effects

The rater's rating is heavily influenced either by behavior exhibited by the ratee

during his early stage of the review period (primacy) or by the outcomes, or behaviorexhibited by the ratee near the end of the review period (regency). For example, if a


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salesperson captures an important contract/sale just before the completion of theappraisal, the timing of the incident may inflate his or her standing, even though theoverall performance of the sales person may not have been encouraging. One way ofguarding against such an error is to ask the rater to consider the composite

performance of the rate and not to be influenced by one incident or an achievement.

Performance dimension order

Two or more dimensions on a performance instrument follow each other and bothdescribe or rotate to a similar quality. The rater rates the first dimensions accuratelyand then rates the second dimension to the first because of the proximity. If thedimensions had been arranged in a significantly different order, the ratings might have

been different.

Spillover effect

This refers lo allowing past performance appraisal rating lo unjustifiably influencecurrent ratings. Past ratings, good or bad, result in similar rating for current periodalthough the demonstrated behavior docs not deserve the rating, good or bad.


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ROLES IN THE PERFORMANCE APPRAISALMETHOD :

a) Reporting Manager

o Provide feedback to the reviewer / HOD on the employees

behavioral traits indicated in the PMS Policy Manual.o Ensures that employee is aware of the normalization/

performance appraisal process.o Address employee concerns / queries on performance rating, in

consultation with the reviewer.

b) Reviewer (Reporting Managers Reporting Manager)

o Discuss with the reporting managers on the behavioral traits ofall the employees for whom he / she is the reviewer.

o

Where required, independently assess employees for the saidbehavioral traits; such assessments might require collectingdata directly from other relevant employees.

c) HOD (In some cases, a reviewer may not be a HOD)

o Presents the proposed Performance Rating for every employeeof his / her function to the Normalization committee.

o HOD also plays the role of a normalization committee member.

o

Owns the performance rating of every employee in thedepartment.

d) HR Head

o Secretary to the normalization committee.o Assists HODs / Reporting Managers in communicating the

performance rating of all the employees.

e) Normalization Committeeo Decides on the final bell curve for each function in the

respective Business Unit / Circle.

o

Reviews the performance ratings proposed by the HODs,specifically on the upward / downward shift in ratings, toensure an unbiased relative ranking of employees on overall

performance, and thus finalize the performance rating of eachemployee.


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KEY CONCEPTS IN PMS :

In order to understand the Performance Management System at BHARTI, someconcepts need to be explained which play a very important role in using the PMS

successfully. They are:

KRAS (Key Result Areas)

The performance of an employee is largely dependent on the KRA score achievedby the employee during that particular year. Thus, it is necessary to answer a fewbasic questions i.e.

o What are the guidelines for setting the KRAs for an employee?

o How does an employee write down his KRAs for a particularfinancial year?

o KRAs: The Four Perspectives.

o How is the KRA score calculated for an employee on the basis of thetargets sets and targets achieved?

Behavioral Traits

Some ofthe qualitative aspects of an employees performance combined withthe general behavioral traits displayed by the employee during a yearconstitutes his behavior traits. An employee is assigned the rating on the basisof the intensity of the behavior displayed by him. They play a very importantrole in the deciding the final performance rating for an employee as is evencapable of shifting the rating one level upwards/downwards.

Bharti 2010 Leadership Competency Framework

This competency framework is a simple and structured way to describe theelements of behaviors required to perform a role effectively. This frameworkalso tries to assess the performance of an employee objectively.


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PERFORMANCE RATING PROCESS :

The rating process tries to explain the four different types of rating that an employeecan achieve i.e. EC, SC, C and PC. It also explains the criteria, which is considered

for awarding any of these ratings to the employee.

Promotion and Rating guidelines

The promotion and normal distribution guidelines provide the frameworkwithin which the performance appraisal process has to work. It is veryimportant that the HR department pays due attention to these guidelines while

preparing the bell curves for various functions and the consolidated bell curvefor all the functions. These guidelines also help in deciding upon the

promotion cases in company.

EXCEPTIONAL CONTRIBUTOR (EC)

Performs consistently and substantially above expectations in all areas

Achieves a final score greater than or equal to 115%

Consistently delivers on stretch targets

Is proactive

Spots and anticipates problems, implements solutions

Sees and exploits opportunities Delivers ahead of time

Sees the wider picture-impacts across business

Focuses on whats good for the business

Seen as role model by others

Recognized as exceptional by other functions as well

Motivates others to solve problems

Develops others

Provides open and honest feedback

Able to establish and lead cross-functional teams


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SIGNIFICANT CONTRIBUTOR (SC)

Performs above expectations in all areas

Achieves final score between 100-114%

Versatile in his/ her area of operation

Develops creative solutions and require little / minimal supervision

Sets examples for others

Take ownership of own development

Coaches others

Demonstrates business initiative

Is self-motivated

Supportive team player

Leads own team very effectively

Demonstrate functional initiative


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DATA ANALYSIS

1. Are you aware of the purpose of appraisal system?

It is clear from above pie chart that all the employees are aware of the purpose ofperformance appraisal at Akums.

Awareness of the purpose

Yes 100%

No 0%


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2. Are you aware of the technique of P.A. in your organization?

The above pie chart explains that only 84% of the employees are aware of the varioustechniques of performance appraisal at Akums.

Awareness of the technique

Yes 84%

No 16 %


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3. Are you satisfied with the present performance appraisal system?

The above pie chart explains that only 59% of the employees are satisfied with thecurrent appraisal system at Akums.

Satisfaction level of current system

Yes 59%

No 41%


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4. Are you satisfied with the frequency of current P.A. system?

It is clear from the above pie chart that 59% of the employees are satisfied with thefrequency of appraisals in each financial year.

Satisfaction level of frequency of P.A.

Yes 59%

No 41%


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5. What should be the gap between two appraisal periods?

The above pie chart makes it very clear that 25% of the employees feel that appraisal

should be done every three months, 66% feel that appraisal should be done every sixmonths and 9% feel that it should be done yearly.

Desired Gap between two

appraisal periods

Three Months 25%

Six Months 66%

Twelve Months 9%


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6. What is your feeling after every appraisal?

This pie chart explains that 16% of employees feel motivated afterappraisal, 84% feel in-different and 0% feels de-motivated.

Feeling after appraisal

Motivated 16%

Indeffierent 84%

De-motivated 0%


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7. Who should do the appraisal according to you?

The above pie chart explains that 21% employees feel thatappraisal should be done by Superior, 0% feel that It should bedone by Peer, 0% feel that it should be done by Subordinates,22% feel that it should be done by Self, 0% feel that it should

be done by consultant, 57% feel that it should be done by Allof the above mentioned and 0% feel that it should be done bySuperior + Peer.

Desired Appraisee

Superior 21%

Peer 0%

Subordinate 0%

Self 22%

Consultant 0%

All of the above 57%

Superior + Peer 0%


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8. Does appraisal helps in polishing skills and performance?

This pie chart explains that 92% of the employees feel thatappraisal helps in polishing skills and performance, whereas,8% feel opposite and 0% feel that it is somewhat true.

Level of skill and performane

enhancement

Yes 92%

N0 8%

Somewhat 0%


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9. Does personal biasness creeps in during appraisals?

The above pie chart explains that 50% of the employees feel that

personal biasness creeps in during appraisals, while the other 50%feels the opposite,

Biasness level

Yes 50%

No 50%


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10.Appropriate method of performance appraisal according toyou?

According to the above pie chart 21% of the employees feel that RankingMethod is correct for performance appraisal, 8% feels that PairedComparison should be applied, 0% feel that MBO should be applied, 0%feel that Assessment Centre should do the appraisal and rest 71% feel that360 degree appraisal should be applied.

Wanted P.A method

Ranking Method 21%

Paired Comparison 8%Critical Incidents 0%

MBO 0%

Assesment Centre 0%

360 Degree 71%


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11.Does performance appraisal leads to identification of hiddenpotential?

The above pie chart explains that 92% of the employees feel thatperformance appraisal leads to identification of hidden potential, while 8%feel that it is not so.

Level of identification of potential

Yes 92%

No 8%


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12.If given a chance or an opportunity would you like theappraisal system to be reviewed?

The above pie chart explains that 78% of the employees feel that if given achance or an opportunity they would like the appraisal system to bereviewed, while 0% feel the opposite and 22% feels nothing about it.

Wanted review level

Yes 78%No 0%

Can't Say 22%


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13.Would you like to give your suggestions on type ofperformance appraisal system to be enacted during the review?

The above pie chart explains that 92% of the employees would like to givetheir suggestions on type of performance appraisal system to be enactedduring the review, whereas, 8% dont want that.

Participation level

Yes 92%

No 8%


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14.

Is there transparency in the P.A. system of your organization?

The above pie chart explains that 64% of the employees feel that there istransparency in the performance appraisal system at Akums and rest 34%feel that there is no transparency.

Transparency level

Yes 64%

No 36%


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15.Suggestions and views :

According to the above pie chart the suggestions given by employeeswere in reference to review of current performance appraisal system,in which 55% of the employees want the review and 45% dont.

Review of policies

Yes 55%

No 45%


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CONCLUSION

After having analyzed the data, following observations were made :

a) The frequency of performance appraisal in the organization is low.

b) There is no certain continuity of the performance appraisal system.

c) Also, transparency is missing from the process of performance appraisal beingfollowed in the organization.

d) Employees are unaware of the factors which will lead them to increase theirproductivity in order to get an appraisal.


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SUGESSTIONS

Before actually deciding drafting what should be the kind of appraisal thefollowing things should be taken care of :

1. The very concept of performance appraisal should be marketed throughoutthe organization. Unless this is done, people would not accept it, be it howimportant to the organization.

2. To market such a concept, it should not start at bottom, instead it should bestarted by the initiative of the top management. This would help in percolating

down the concept to the advantage of all, which includes the top managementas well as those below them. This means that the top management has to take awelcoming and positive approach towards the change that is intended to be

brought.

3. Further, at the time of confirmation also, the appraisal form should not leadto duplication of any information. Instead, detailed appraisal of the employeeswork must be donewhich must incorporates both the work related as well asthe other personal attributes that are important for work performance.

4. It should be noted that the appraisal form for each job position should be

different as each job has different knowledge and skill requirements. Thereshould not be a common appraisal form for every job position in theorganization.

5. The job and role expected from the employees should be decided well inadvance and that too with the consensus with them.

6. A neutral panel of people should do the appraisal and to avoid subjectivityto a marked extent, objective methods should be employed having quantifiabledata.

7. The time period for conducting the appraisal should be revised, so that theexercise becomes a continuous phenomenon.

8. Transparency into the system should be ensured through the discussionabout the employees performance with the employee concerned andtrying to find out the grey areas so that training can be implemented toimprove on that.

Ideally in the present day scenario, appraisal should be done, taking the viewsof all the concerned parties who have some bearing on the employee. But,since a change in the system is required, it cannot be a drastic one. It ought to

be gradual and a change in the mindset of both the employees and the head isrequired.


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BIBLIOGRAPHY

BOOKS :

a) Human Resource Management (By Wendell L. French)

b) Human Resources Development and Management (ByBiswanath Ghosh)

c) Human Resource Management (By Garry Dessler)

d)

The Global HR Manager (By Pat Joynt andBob Morton)

WEBSITES :

www.akums.comwww.akums.inwww.google.com
http://www.akums.com/http://www.akums.com/http://www.akums.in/http://www.akums.in/http://www.google.com/http://www.google.com/http://www.akums.in/http://www.akums.com/


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QUESTIONNAIRE

NAME OF EMPLOYEE : DESIGNATION :

1. Are you aware of the purpose of performance appraisal system?

Yes

No

2. Are you aware of the technique of performance appraisal in your organization?

Yes

No

3. Are you satisfied with the present performance appraisal system?

Yes

No

4. Are you satisfied with the frequency of current performance appraisal system?

Yes

No

5. What should be the gap between two appraisal periods?

Three months

Six Months

Twelve Months

6. What is your feeling after every appraisal?

Motivated

Indifferent

De-motivated

7. Who should do the appraisal according to you?

Superior

Peer

Subordinate

Self

Consultant

All of the above

Superior + Peer

8. Does appraisal helps in polishing skills and performance?

Yes

No

Somewhat

9. Does personal biasness creeps in during appraisals?

Yes

No


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10.Appropriate method of conducting performance appraisal according to you?

Ranking method

Paired comparison

Critical incidents

MBO Assessment centre

360 degree

11.Does performance appraisal leads to identification of hidden potential?

Yes

No

12.If given a chance or an opportunity would you like the appraisal system to be

reviewed?

Yes

No Cant say

13.What according to you should be the appropriate method for

conducting performance appraisal?

Rating the employee on number of traits along with the rangeof performance for each by the supervisor.

For every trait, each subordinate is paired with and comparedto every other Subordinate.

Reviewing employees on the basis of identified specific

examples of good Or poor performance. Setting specific measurable goals with each employee and

periodically reviewing the progress made.

Reviewing performance through case studies, presentations,role playing, etc. for future performance.

Receiving feedback from people whose views are consideredhelpful and relevant including the appraise himself.

14.Is there transparency in the performance appraisal system of yourorganization?

Yes

No15.Suggestions and views :

.

Nidhi Str New

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