A

Project Study Report

ON

Training Undertaken at

“PARLE PVT. LTD”

Conducted at

TitledPerformance Appraisal

Submitted in partial fulfilment for the Award of degree ofMaster of Business Administration

SUBMITTED BY: SUBMITTED TO:

Ms. Shalu Khandelwal Mrs. Kaneenika JainMBA IV Sem Asst. Professor

SUBODH INSTITUTE OF MANAGEMENT & CAREER STUDIES

1

2013-2014GUIDE CERTIFICATE

This is to certify that the project entitled “Performance Appraisal” submitted by

Shalu Khandelwal of Subodh Institute of Management & Career Studies has

been done under my guidance and supervision in partial fulfillment of Master of

Business Administration.

Mrs. Kaneenika Jain

Assistant Professor

2

Declaration

I Shalu Khandelwal Student of MBA IV Sem, Subodh Institute of Management &

Career Studies hereby declare that the following documented project report titled

“Performance Appraisal” is an original and authentic work done by me for the

partial fulfillment of Master of Business Administration degree program.

I hereby clarify that all the endeavour put in the fulfilment of the task are genuine

and original to the best of my knowledge and I have not submitted it earlier

elsewhere.

Shalu Khandelwal

Date:

3

ACKNOWLEDGEMENT

No research can blossom from a single person’s mind

without proper guidance, assistance and inspiration from

various quarters. My project was given its present shape by

assistance of many people whom I am greatly indebted to. I

express my gratitude and indebtedness towards the people

who helped me during my project work.

I express my humble gratitude towards Mr. Ashish Tikkiwal (Managing Director) for giving me a chance to research in

their reputed organization.

I am thankful to Mr. Janak S. Shekhawat (Executive, HRD

& Personnel) for providing me proper inputs and guidance.

Last but not the least I want to thanks my Faculty, without

their keen interest and immense guidance it would have not

been possible to complete this project.

Ms. Shalu Khandelwal

4

S. No. Particulars Pg. No.

1. Introduction of FMCG Sector 6-13

2. Introduction of Parle Ltd. 14-74

3. Research Methodology

3.1 Title of the project study3.2Scope of Study3.3Type of research3.4 Sample size3.5 Limitation of Study

75-79

4. Analysis and Interpretation 80

5. Facts and Findings 81-97

6. Conclusion 98

7. SWOT 99

8. Recommendations & Suggestion 100

9. Appendix 101-102

10. Bibliography 103

5

Introduction of FMCG Sector

The Indian FMCG sector is the fourth largest sector in the economy with a total

market size in excess of US$ 13.1 billion. It has a strong MNC presence and is

characterised by a well established distribution network, intense competition

between the organised and unorganised segments and low operational cost.

Availability of key raw materials, cheaper labour costs and presence across the

entire value chain gives India a competitive advantage.

The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4

billion in 2015. Penetration level as well as per capita consumption in most

product categories like jams, toothpaste, skin care, hair wash etc in India is low

indicating the untapped market potential. Burgeoning Indian population,

particularly the middle class and the rural segments, presents an opportunity to

makers of branded products to convert consumers to branded products.

Growth is also likely to come from consumer 'upgrading' in the matured product

categories. With 200 million people expected to shift to processed and packaged

food by 2010, India needs around US$ 28 billion of investment in the food-

processing industry. Automatic investment approval (including foreign technology

agreements within specified norms), up to 100 per cent foreign equity or 100 per

cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for

most of the food processing sector.

Indian FMCG sector is the fourth largest sector in the economy characterized by

strong MNC presence, well established distribution network, intense competition

between the organised and unorganised players and low operational cost. Easy

availability of important raw materials, cheaper labor costs and presence across

the entire value chain gives India a competitive advantage. Penetration level and

per capita consumption in many product categories is very low compared to

world average standards representing the unexploited market potential.

6

Mushrooming Indian population, particularly the middle class and the rural

segments, presents the huge untapped opportunity to FMCG players.

The Indian FMCG sector is the fourth largest sector in the economy with an

estimated size of Rs.1,300 billion. The sector has shown an average annual

growth of about 11% per annum over the last decade. Unlike the developed

markets, which are prominently dominated by few large players. India’s FMCG

market is highly fragmented and a considerable part of the market comprises of

unorganized players selling unbranded and unpackaged products. There are

approximately 12-13 million retail stores in India, out of which 9 million are FMCG

kirana stores.

Products which have a swift turnover and relatively low cost are known as Fast

Moving Consumer Goods (FMCG). FMCG items are those which generally get

replaced within a year. Examples of FMCG commonly include a wide range of

repeatedly purchased consumer products such as toiletries, soap, cosmetics,

oral care products, shaving products and detergents, as well as other non-

durables such as glassware, bulbs, batteries, paper products, and plastic goods.

FMCG may also include pharmaceuticals, consumer electronics, packaged food

products etc.

Penetration level and per capita consumption in many product categories is very

low compared to world average standards representing the unexploited market

potential. Mushrooming Indian population, particularly the middle class and the

rural segments, presents the huge untapped opportunity to FMCG players.

Growth is also likely to come from consumer 'upgrading' in the matured product

categories like processed and packaged food, mouth wash etc. A distinct feature

of the FMCG industry is the presence of international players through their

subsidiaries (HLL, P&G, Nestle), which ensures innovative product launches in

the market from their parent's portfolio.

Our country has a varied agro-climatic condition which enables to offer extended

raw material base suitable for many FMCG sub sections like food processing

7

industries etc. India is the one of the major producer of livestock, milk,

sugarcane, coconut, spices and cashew and is the second largest producer of

rice, wheat and fruits & vegetables. Similarly, India has an abundant supply of

caustic soda and soda ash, the chief raw materials required in the production of

soaps and detergents, which enables the household section of the industry to

excel and grow. The accessibility of these raw materials gives India the

locational advantage.

Fast Moving Consumer Goods (FMCG) Industry in India - Major Players

Britannia India ltd

Dabur India ltd.

Marico

Nirma ltd.

Cadbury India ltd

Nestle

Cargill

Coca-cola

Colgate-Palmolive India

Heinz co.

Unilever

Nestle

Pepsi co.

Jyothy Laboratories

Procter & Gamble

Samsung

LG

Haier

Sony

Whirlpool

IFB

8

TCL

Electrolux

Videocon

Market Opportunities

Rural India accounts for more than 700 Million consumers, or 70 per cent of the

Indian population and accounts for 50 per cent of the total FMCG market.

The working rural population is approximately 400 Millions. And an average

citizen in rural India has less than half of the purchasing power as compare to his

urban counterpart. Still there is an untapped market and most of the FMCG

Companies are taking different steps to capture rural market share.

The market for FMCG products in rural India is estimated 52 per cent and is

projected to touch 60 per cent within a year. Hindustan Unilever Ltd is the largest

player in the industry and has the widest market coverage.

Export - “Leveraging the Cost Advantage” Cheap labor and quality product & services have helped India to represent as a

cost advantage over other Countries. Even the Government has offered zero

import duty on capital goods and raw material for 100% export oriented units.

Multi National Companies out-source its product requirements from its Indian

company to have a cost advantage.

India is the largest producer of livestock, milk, sugarcane, coconut, spices and

cashew apart from being the second largest producer of rice, wheat, fruits &

vegetables. It adds a cost advantage as well as easily available raw materials.

9

Sectoral Opportunities

Major Key Sectoral opportunities for Indian FMCG Sector are mentioned below:-

Dairy Based Products India is the largest milk producer in the world, yet only around 15 per cent of the

milk is processed. The organized liquid milk business is in its infancy and also

has large long-term growth potential. Even investment opportunities exist in

value-added products like desserts, puddings etc.

Packaged Food Only about 10-12 per cent of output is processed and consumed in packaged

form, thus highlighting the huge potential for expansion of this industry.

Oral Care The oral care industry, especially toothpastes, remains under penetrated in India

with penetration rates around 50 per cent. With rise in per capita incomes and

awareness of oral hygiene, the growth potential is huge. Lower price and smaller

packs are also likely to drive potential up trading.

Beverages Indian tea market is dominated by unorganized players. More than 50% of the

market share is capture by unorganized players highlighting high potential for

organized players.

MAJOR SEGMENTS OF THE FMCG INDUSTRYA. Household Care

The detergents segment is growing at an annual growth rate of 10 to 11 per cent

during the past five years. The local and unorganized players account for a major

share of the total volume of the detergent market. The preference is given to

detergents in urban area compared to bars. Household care segment is featured

by intense competition and high level of penetration. With rapid urbanization,

emergence of small pack size and sachets, the demand for the household care

products is booming. In washing powder segment, HUL is the leader with 38 per

10

cent of market share. Other major players are Nirma, Henkel and Proctor &

Gamble.

Personal wash:-

Personal wash can be further segregated into three segments namely Premium,

Economy and Popular. Here also, HUL is the leader with market share of 53 per

cent; Godrej occupies second position with market share of 10 per cent. Swelling

disposable incomes of the Indian consumers, growth in rural demand and

upgrading to the premium products are the key drivers for future demand growth

in major FMCG categories.

Detergents:-

The size of the detergent market is estimated to be Rs. 12,000 Cr. Household

care segment is characterized by high degree of competition and high level of

penetration. With rapid urbanization, emergence of small pack size and sachets,

the demand for the household care products is flourishing. The demand for

detergents has been growing but the regional and small unorganized players

account for a major share of the total volume of the detergent market. In washing

powder HUL is the leader with 38 per cent of market share. Other major players

are Nirma, Henkel and Proctor & Gamble.

B. Personal Care

Personal care segment includes personal wash products, hair care products, oral

care products, cosmetics etc. The Indian skin care and cosmetics market is

valued at $274 million and is dominated by HUL, Colgate Palmolive, Gillette India

and Godrej. The coconut oil market accounts for 72 per cent share in the hair oil

market.

Skin care:- The skin care market is at a primary stage in India. With the change in life styles,

increase in disposable incomes, greater product choice and availability. people

11

are becoming more alert about personal grooming. The major players in this

segment are Hindustan Unilever with a market share of 54 per cent, followed by

CavinKare with a market share of 12 per cent and Godrej with a market share of

3 per cent. The Skin Care segment is expected to register a growth rate of mare

that 16 percent

Hair Care:- The hair care market in India is estimated at around Rs. 3,800 Cr. The hair care

market can be segmented into hair oils, shampoos, hair colorants & conditioners,

and hair gels. Marico is the leader in Hair Oil segment with market share of 33

per cent; Dabur occupies second position at 17 per cent.

Oral care:- The oral care market can be segmented into toothpaste - 60 per cent;

toothpowder - 23 per cent; toothbrushes 17 per cent. This segment is dominated

by Colgate-Palmolive with market share of 49 per cent, while HUL occupies

second position with market share of 30 per cent. In toothpowders market,

Colgate and Dabur are the major players.

Shampoos:- The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the

penetration level of only 13 per cent in India. Sachet makes up to 40 per cent of

the total shampoo sale. It has low penetration level even in metros. Again the

market is dominated by HUL with around 47 per cent market share; P&G

occupies second position with market share of around 23 per cent. Antidandruff

segment constitutes around 15 per cent of the total shampoo market. The market

in further expected to increase due to increased marketing by players and

availability of shampoos in affordable sachets.

C. Food and Beverages

12

This segment comprises of the food processing industry, health beverage

industry, bread and biscuits, chocolates & confectionery, Mineral Water and ice

creams. The three largest consumed categories of packaged foods are packed

tea, biscuits and soft drinks. Indian hot beverage market is a tea dominant

market. The major share of tea market is dominated by unorganized players.

Leading branded tea players are HUL and Tata Tea. Major players in food

segment are HUL, ITC, Godrej, Nestle and Amul.

Tea :-The major share of tea market is dominated by unorganized players.

More than 50 per cent of the market share is capture by unorganized players.

Leading branded tea players are HUL and Tata Tea.

Coffee :- The Indian beverage industry faces over supply in segments like coffee

and tea. However, more than 50 per cent of the market share is in unpacked or

loose form. The major players in this segment are Nestlé, HUL and Tata Tea.

13

INTRODUCTION OF THE PARLE PVT. LTD.

 

HISTORICAL BACKGROUND

Parle Products Pvt. Ltd.: A cream colored yellow stripped paper with a cute

baby photo containing 10-12 biscuits with the company’s name printed with in

Red. Times changed, variety of biscuits did come and go but nothing has

changed with these biscuits. Yes, the size of their packing has definitely changed

but for the consumer good as these are money saver pack.

The Parle name conjures up fond memories across the length and breadth of the

country.

After all, since 1929, the people of India have been growing up on Parle biscuits

and sweets.

Initially a small company was set up in the suburbs of Mumbai city to

manufacture sweets and toffees. The year was 1929 and the market was

dominated by famous international brands that were imported freely. Despite the

odds and unequal competition, this company called Parle Products, survived and

succeeded by adhering to high quality and improvising from time to time

A decade later, in 1939, .Parle products began manufacturing biscuits, in addition

to sweets and toffees. Having already established a reputation for quality, the

Parle brand name grew in strength with this diversification. Parle Glucose and

Parle Monaco were the first brands of biscuits to be introduced, which later went

on to become leading names for great taste and quality.

For around 75 years, Parle have been manufacturing quality biscuits and

confectionary products. Over the years Parle has grown to become a multimillion

dollar company with many of the products as market leaders in their category.

The recent introduction of Hide & Seek chocolate chip biscuits is a product of

innovation and caters to a new taste, being India’s first ever chocolate chip

biscuits.

14

Apart from the factories in Mumbai and Bangalore Parle also has factories in

Bahadurgarh in Haryana and Neemrana in Rajasthan, which are the largest

biscuit and confectionery plants in the country. Additionally, Parle Products also

has 7 manufacturing units and 51 manufacturing units on contract.

All these factories are located at strategic locations, so as to ensure a constant

output and easy distribution.

QUALITY OF PRODUCTS

Hygiene is the precursor to every process at Parle. From husking the wheat and

melting the sugar to delivering the final products to the supermarkets and store

15

shelves nationwide, care is taken at every step to ensure the best product of

long-lasting freshness. Every batch of biscuits and confectioneries are thoroughly

checked by expert staff, using the most modern equipment hence ensuring the

same perfect quality across the nation and abroad.

Concentrating on consumer tastes and preferences, the Parle brand has grown

from strength to strength ever since its inception. The factories at Bahadurgarh in

Haryana and Neemrana in Rajasthan are the largest biscuit and confectionery

plants in the country. The factory in Mumbai was the first to be set up, followed

soon by the one in Bangalore, Karnataka. Parle Products also has 14

manufacturing units for biscuits and 5 manufacturing units for confectioneries, on

contract.

CORE VALUE

An in-depth understanding of the Indian consumer psyche has helped Parle

evolve a marketing philosophy that reflects the needs of the Indian masses. With

products designed keeping both health and taste in mind, Parle appeals to both

health conscious mothers and fun loving kids. The great tradition of taste and

nutrition is consistent in every pack on the store shelves, even today. The value-

for-money positioning allows people from all classes and age groups to enjoy

Parle products to the fullest.

AWARDS Parle products have been shining with the golds and silvers consistently at the

Monde Selection ever since they were first entered in 1971. Monde Selection is

an international institute for assessing the quality of foods and is currently the

oldest and most representative organization in the field of selecting quality foods

worldwide.

16

Filled with the goodness of milk and wheat, Parle G is

not just a treat for the taste buds, but a source of strength

for both body and mind. Tear over a packet of Parle G to

experience what has nourished Generations of Indians

since last sixty-five years, making it truly Hindustan Ki

Taakat.

Krackjack - The original sweet and salty biscuit is one of the most loved biscuits

in the country.

It’s not just a biscuit, it’s the taste of relationships captured in a biscuit.

A little sweet and a little salty crafted in such a delicate and delicious balance, you can never get

enough of it. Have it anytime you like with anything you like.

Krackjack Crispy Creams is a delicious

combination of crispiness of Krackjack and

sweetness of cream biscuit. The classic sweet and

salty taste gets laced with a sweet & sour lime

17

flavor in the cream sandwiched between Krackjack biscuits. A mouth watering delicious

combination

Share the company of great taste anytime, anywhere with Monaco. A light crispy biscuit

sprinkled with salt, Monaco adds a namkeen twist to life’s ordinary moments.

Orange: Tickle your senses with

Parle Orange Kream – The tangy

orange cream between two

scrumptious biscuits makes for a real treat.

Here’s a choco biscuit that flirts with your taste

buds. Seek out the chocolate chips that aren't really hidden. And relish a delectable experience

as they melt in your mouth. Also know to work as

an effective icebreaker it’s easy to see why it’s

tasty itna, ki dil aaj

18

The ingredients that go into making this prized cookie

are a well-guarded secret. What is, is the effect it has on

those who eat it. A cookie with a reputation for

romance. Indulge in the sinful taste of Milano and

everything that follows it.

Digestive Marie will change your daily dipping

and sipping routine; making it more enjoyable and

much healthier.

With five times more fibre than the regular Marie,

you can actually see the differences in Digestive

Marie. With lower fat and calories than other

digestive biscuits, Digestive Marie helps you stay

Active-Lite all day.

Yahi Marie, Sahi Marie

19

Your favorite Marie biscuit, Parle Marie is now

even more exciting. It’s lighter. It’s crispier. And

it’s tastier. Making it even more appealing than

before.

So the next time you’re hanging out with your

buddies, just tear open a pack of Parle Marie. And

immerse yourself in an engaging conversation and

an even more engaging taste.

From boy-next-door to Super Boy, no that’s not the

plot for the next Hollywood blockbuster it’s the

effect of Milk Shakti. The Shakti of milk fortified

with the goodness of honey, a zabardast combo that

even ace batsman Dhoni swears by. So get that cape out and head straight to for a pack of

Milk Shakti toda

Mouth watering cookies that you’ll want to nibble as

‘sweet nothings’. Not to mention, always have them

20

within your reach. The delicious taste of butter, sugar and milk in an all-you-can-have

tasty offering

.

A crispy cracker that adds a namkeen zing to the

usual biscuit. Goes well with a cup of tea, an evening

snack or an occasional namkeen thought. Just bite in

and let the rich golden texture melt in your mouth.

Convenience:

• urinals and lavatories, wash basins, bathrooms, provision for spit rooms, waste

disposal:

21

For the maintenance of company compound and for the welfare of employee there should

be provision for urinals and lavatories, wash basins, bathroom, spit rooms and waste

disposal.

• Provision of drinking waters and coolers:Operation were not same at all places, they differ in respect of work. Employees working

there were also human being they also need water to drink, and fresh air to breath.

Workers should be provided with drinking water facility and also of coolers.

• Canteen services:Company should provide their workers canteen service also as it is beneficial for both

company, it will save their time and workers will get their meal. Canteen should provide

goon nutritious food to the workers.

• Management of workers: Workers should be well managed, according to the work. Company should manage the

proper distribution of the workers in each task so that employee is able to complete their

task.

Workers health services:

• Emergency aid, medical examination for workers; health education; medical

officer:

It is normal in nature of the companies where work is performed in huge capacity anyone

can get hurt or any type of emergency can take place. Emergency aid i.e. first aid kit

should be there, company should perform medical examination of their workers and

medical officer should be appointed. Company should lead their employee with well-versed education.

22

• Medical insurance:Company must be sure about medical insurance to their employee for the welfare of the

employees. (ESI &EMI)

• Compensation:Company should compensate their employee and their family members in respect of

medical treatment.

• Women and child welfare:Companies now usually make compound in their province for their employees where

workers live with their family. For the welfare purpose, women and child must be lead

with education programmes, provision of loan to the employees for the education of child

should be there, and recreational parks should be there for the women and child.

• Recreation:Recreation comprises of various activities like social cultural programme for the

women's, and playgrounds for their children, extra curricular activities should be there

• Education:Education facility to the women and children for their welfare, grant of loan to the

employee for better education of their children

Measures outside the workplace:

• Water sanitation, waste disposal:

23

as discussed earlier, company should have proper measures in consideration of waste

disposal, water sanitation or in broader sense company should have control on their

effluents.

• Roads , lightning , parks , playgrounds:Company being whole-sole responsible for the welfare of their employees have roads

inside their compound with good lightning overall. They provide their employees with

playgrounds and parks as a part of recreational activity.

• Schools :Schools is a major associated thing with our country for its bright future and if it is

provided to the employees by the company for their children and themselves its being the

major contribution of the company towards the welfare of their employees

• Transport:Companies have employees from various places nearby their province. They should

provide them with transport facility for their conveyance. It will be good in respect of

both Company and their employee.

• Communication:Communication is essential to carry on the work, and to maintain the relationship,

company should have its own flexible communication system that is suitable for the

welfare of the company and its employees.

• Recreation; games and clubs, cultural programme:

24

Continuous working with no other activity leads to stress, and then sometimes to

depression

Company should have recreational facilities it should have its own playgrounds and on

regular interval tournament of various games should be made. Beside games companies

should have its own clubs for the company members; they should arrange different

cultural programmes for the welfare of the employees.

• Watch and ward; security:Security deserve its own importance company should have its own security team headed

with its own security officer, security is essential for confidential documents, goods, semi

finished goods, raw material and primarily of residential compounds so that any

misconduct act will not happen.

• Housing facility:Companies have moreover large no. of employees working there, some were from the

neighboring places and some from the places situated far away from its compound.

Companies should have housing facilities for those employees who has come to serve

company with their best performance.

25

Administration of welfare:

To follow welfare policy companies has to under go various studies which place out for

the execution of the welfare policies. Opinions, surveys, research were done to find out

applicable policies. Role of personnel department, H.R.Managers, line managers and

welfare officer were very essential for right implementation of welfare policy.

Analysis, evaluations were done and then opinions were taken whether the policy to be

implement will give out it best or not. If applicable then time management studies arose,

that policy will give its purpose on time or not and so on the process goes.

26

27

Evaluation Trend

analysisOpinion

OrganizationWelfare officerLine

managerh.r.manager

s

Welfare policy

Yes or no,Objectives, approach

Range, timeliness

Parle organizational structure

Unit head

Depty Manager

Executives

Officer Officer Officer Officer Officer

Engineering Mechanical Accounts Production Personal

Assistance Assistance Assistance Assistance Assistance

Officers Officers Officers Officers Officer

Foreman

Coordinators

28

Supervisor

Trannies

Operator / Fitters

Assistance Operator/ Fitters

Helper

KEY STAFF: The general manager.

Access to natural resources: good accessibility

Position on the experience curve :more than 60 years of experience in the

biscuit manufacturing industry, it has not bothered to raise the price of its flagship brand

for the past 6 years and has always tried to provide its offerings at nearly 33 percent

discount to competitive brands

Operational efficiency: highly efficient production units, 4 factories of its own

and 18 contract manufacturing units for biscuits 6 under PBPL. The Bahadurgarh factory

prides itself of having the longest oven in Asia ; automated printing and packing section.

Operational capacity: 200-250 tons per day at PBPL, Bgarh; Bahadurgarh and

Neemrana factories have the largest manufacturing facilities of biscuits.

Brand awareness: highly aware product and brand profile (esp. Parle-G,

Krackjack and Monaco) due to a strong and efficient marketing team. The other biscuits

29

in the Parle product’s basket include Monaco, Krackjack, and Marie; Hide n Seek,

Cheeslings, Jeffs, Sixer and Fun Centre. But consumers need to be aware that are from

Parle.

The marketing strength: Parle has nearly 1500 wholesalers, catering to 4,

25,000 retail outlets directly or indirectly. A 200 strong dedicated field force services

these wholesalers and retailers. Additionally, there, there are 39 depots and C& F agents

supplying goods to the wide distribution network.

Market Share: The company commands a 40% market share in the rs .35 billion

biscuits market in India. Has established a dominant position in the glucose biscuit

market share (around 65%): Marie segment (12-13%) ; sweet and salty category at 90%

Financial resources: A cash rich company having major investments. Needs to

emphasize on budgeting and cost minimization.

Patents and trade secrets: the Parle-G formula…..

30

EXTERNAL ANALYSIS

An opportunity is the chance to introduce a new product or service that can generate

superior returns. Opportunity can arise when changes occur in external environment.

Many position of existing products and may necessitates a change in product

specifications or developments of new products in order for the firm to remain

competitive . Changes in the environment may be related to:

Customers: Customers an expectation has increased over the years, Parle needs

to evolve with the changing environment and focus upon R&D and advertising.

Competitors: the competitive scenario at the national level is more of a disguised

duopoly than a real one. Acloser look at state-levels markets show the presence of strong

regional players such as Barman’s, Priyagold, Shalimar, Windsor and Champion other

than the national players, Parle and Britannia. This has held the prices in check for a long

time.

Market trends: Growth in the over 40 year-old Indian biscuit industry has

remained slow. Back-of -the-envelope calculations will show that per capital household

per month. Hence there is immense opportunity for Parle to move up the value chain in

the Indian an export market.

Social changes: more and more marketing budgets are being spent on below-the-

line promotions and less on brand building. The freebie driven purchase behavior may

lead to long-term damage of the brand.

New technology: both Parle and Britannia are now trying to different iate their

brands to reflect their superior quality through superior packaging. Being a national

player, Parle can afford to concentrate on continuous technological updation.

Economic environment: a reduction in the 16% excise to 8% has proved to be a

boon to the biscuit industry.

31

PARLE G-THE EVOLUTION!!!

Parle-G has been strong household name across India. The great taste, high nutrition, and

the international quality, makes Parle-G a winner. No wonder, it’s the undisputed leader

in the biscuit category for decades. Parle-G is consumed by people of all ages, from the

rich to the poor, living in cities & in villages. While some have it for breakfast, for others

it is a complete wholesome meal. For some it’s a way of getting charged whenever they

are low on energy. Because of this, Parle-G is the world’s largest selling brand of

biscuits.

Launched in the year 1939, it was one of the first brands of Parle products. It was called

Parle Gluco Biscuits mainly to cue that it was a glucose biscuit. It was manufactured at

the Mumbai factory, Vile Parle and sold in units of half and quarter pound packs.

The incredible demand led Parle to introduce the brand in special branded packs and in

large festive tin packs. By the year 1949, Parle Gluco biscuit were available not just in

Mumbai but also across the state. It was also sold in parts of North India. By the early

50’s, over 150 tones of biscuits were produced in the Mumbai factory. Looking at the

success of Parle-G, a lot of other me-too brands were introduced in the market. And

these brands had names that were similar to Parle Gluco Biscuits so that if not by

anything else, the consumer would err in picking the brand. This forced Parle to change

the name from Parle Gluco Biscuits to Parle-G.

Originally packed in the wax paper pack, today it is available in a contemporary,

premium BOPP pack with attractive side fins. The new airtight pack helps to keep the

biscuits fresh and tastier for a longer period.

Parle-G was the only biscuit brand that was always in the short supply. It was heading

towards becoming an all-time great brand of biscuit. Parle-G started being advertised

in the 80’s. It was advertised mainly through press ads. The communication spoke about

the basic benefits of energy and nutrition. In 1989, Parle-G released its Dadaji

commercial, which went on to become one of the most popular commercials for Parle-

G. The commercial was run for a period of 6 years.

32

Parle-G grew bigger by the minute. Be it the packs sold, the areas covered or the number

of consumers. It became a part of the daily lives of many Indians. It wasn’t a biscuit any

more. It had become an icon. The next level of communication associated the brand with

the positive values of life like honesty, sharing and caring.

In the year 1997, Parle-G sponsored the tale-serial of the Indian superhero, Shaktimaan

that went on to become a huge success. The personality of the superhero matched the

overall superb benefits of the brand. Parle extended the association with Shaktimaan and

gave away a lot of merchandise of Shaktimaan which was supported by POS and press

communication. The children just could not get enough of Parle-G and Shaktimaan.

In the year 2002, it was decided to bring the brand closer to the child who is a major

consumer. A national level promo- ‘Parle-G Mera Sapna Sach Hoga’ was run for a

period of 6 months. The promo was all about fulfilling the dreams of children. There

were over 5 lakh responses and of that, over 300 dreams were fulfilled. Dreams that were

fulfilled ranged from trips to Disneyland at Paris & Singapore, meeting their favorite

film stat Hrithik Roshan, free ride on a chartered plane, 20 scholarships worth Rs

50,000, a special cricket coaching camp with the Australian cricketer – Ricky Ponting

etc.

The year 2002 will ago down as a special year in Parle-G’s advertising history. A year

that saw the birth of G-Man a new ambassador for Parle-G. Not just a hero but also a

super-hero that saves the entire world, especially children from all the evil forces. A

campaign that is not just new to the execution that is loved by children all over the world-

Animation. A TV commercial that showed G-Man saving the children from the evil

force called Terrolene laughed this campaign. It was also supported by print medium

through poster and streamers put up at the retail outlets. G-Man, a new superhero of

Parle-G has the potential of making it big. And will be supported by a campaign that will

see many a new creative in the future so as to keep the children excited and generate

pride in being a consumer of Parle-G.

33

To make the brand much more interesting and exciting with children, it was decided to

launch a premium version of Parle-G called Parle-G Magix in the year 2002. Parle-G

Magix is available in two exciting tastes –‘Choco’ and ‘Cashew’. The year 2002 also

witnessed the launch of Parle-G Milk Shakti, which has the nourishing combination of

milk and honey, especially launched for the southern market.

Parle-G continues to climb the stairs of success. Take a look at the global market were it

is being exported. First came the Middle East then USA followed by Africa and then

Australia. An Indian brand, that’s exported to almost all parts of world. After all that’s

what you would expect from the Parle G World’s Largest Selling Biscuit

34

PERFORMANCE APPRAISAL

MEANING OF PERFORMANCE APPRAISAL:

Performance Appraisal or merit rating is one of the oldest and most universal practices of

management. Performance Appraisal is a method of evaluating the behavior in the work

pot, normally including both the qualitative and aspect of job performance.

Companies use Performance Appraisal for training & development providing feedback to

employees and personnel research. They also use it in determining wages, promotion and

transfer.

Performance Appraisal means the systematic evaluation of the performance of an

employee by an expert or his immediate superior.

Performance Appraisal can be simply defined as a systematic evaluation of present and

potential capabilities of personnel and employee by their superior.

Performance means ‘to do something’ and appraisal means ‘to decide the value of work

done’. Thus Performance Appraisal means ‘deciding the value of work done by an

individual’

It is process that involve determining & communicating to an employee how he/she

performing the job and ideally establish plan for improvement.

35

Performance evaluation or Performance Appraisal is the process of assessing the

performance and progress of an employee or a group of employee on a given job and his

potential for future development. It consists of all formal procedure used in working

organization to evaluate personalities, contribution and potential of employees.

It is the process of obtaining, analyzing and recording information about the relative

worth of an employee.

Performance measure and merit rating are used synonymously. But strictly speaking

Performance Appraisal is a wider term than merit-rating. In merit rating the focus is on

judging the caliber of an so as to decide salary increment. It is designed primarily to

cover rank and file personnel decisions. On the other hand Performance Appraisal

focuses on the performance and future potential of the employee. Its aim is not simply to

decide salary increment but to develop a rational basis for personal decisions. Merit

rating measures what the person is (traits) whereas Performance Appraisal measures what

the person does (performance).

36

DEFINITION OF PERFORMANCE APPRAISAL:

“Performance Appraisal refers to all formal procedures used in working organization to

evaluate personalities and contribution and potential of group member”

Performance Appraisal is a systematic evaluation of the individual with regard to his/her

performance on the job and his/her potential for development”

“Performance Appraisal is a systematic, periodic and impartial rating of an employee

excellence in matter pertaining to his present job and his potential for a better job”

37

FEATURES OF PERFORMANCE APPRAISAL:

Salient features of Performance Appraisal are as follows:

1. CONTINOUS APPROACH:

Performance Appraisal is a continuous approach. It is not that evaluation made for the

performance for a particular date. The employee’s performance for the whole review

period assessed. So assessment of job is continuous

.

2. SYSTEMATIC APPROACH:

Assessment activity is carried on a definite plan, programmer. Review period,

reviewing authority, reviewing method etc are predetermined and the whole performance

assessment work follows a clear cut, definite process.

3. PERIODICITY:

It follows a definite period for the assessment of employee’s performance.

Evaluation may be made for the performance six month for the whole period of twelve

month.

4. BASIS OF ASSESSMENT:

Assessment is made on the basis of standard set earlier. Quantum &

quality of performance is judged looking to the goals, standard fixed earlier.

5. REINFORCEMENT ACTIVITY: Performance Appraisal system includes reinforcement activity to strengthen weak

areas of reviews- Reviewing authority tells review the week areas that need

improvement. He also as certain reason for less performance and feedback to strengthen

the weak areas.

6. POTENTIAL ASSESSMENT:

38

Performance Appraisal has many activities. It identifies:-

People who are non-performers, below standard.

People who are performers, excellent.

People who have potential to occupy higher position and to shoulder

higher responsibilities.

Under this system potential appraisal is made along with evaluation of present and

performance of employee.

39

OBJECTIVE OF PERFORMANCE APPRAISAL:

Performance Appraisal facilities growth & development of organization and the

employees as well. Effective Performance Appraisal system creates a committed, talented

& dynamic workforce that helps to achieve organizational goal. So, Performance

Appraisal contributes a lot for smooth and effective functioning of organization. Today,

most organization has introduced Performance Appraisal for different objectives. Some

of the important objectives of Performance Appraisal are discussed below:

1. PROMOTION DECISION:

Performance Appraisal identifies the employees who are achivers excellent

performer. It also indicates the employees to grow, develop and to take up higher

responsibilities. It make easy for the higher management to take decision relating

to promotion of the employees as information, data concerning performance,

attitude, aptitude, potentiality are readily available to them.

2. SALARY DECISION:

Decision regarding salary raise, increase/sanction of annual increment &

monitoring incentives are taken on the basis of performance of employees.

Performance Appraisal help top management to take decision on such areas as all

relevant information, data is available from this system.

3. IDENTIFICATION OF TRAINING NEEDS:

Training need can be ascertained from the Performance Appraisal as:

Employee express in self appraisal from about their desire, intention to

undertake training on the areas which they think they require

improvement.

Reviewing officer give their opinion, observation, regarding training

subordinates need.

40

Weak areas requiring improvement become clear from the performance

level of employees.

4. COMPETENCY DEVELOPMENT:

One of the objectives of Performance Appraisal is to develop competencies of the

employees. It ascertains/identifies area of activity where employees need

improvement .so that they can give standard performance. Some employees may

have potential to take up a higher assignment

5. EFFFECTIVE RUNNING OF THE ORGANISATION:

Performance Appraisal lets the management know who deadwoods, incompetent

are and useless employee of Organization Company introduces downsizing

approach through voluntary requirement, retrenchment.

6. SELF DEVELOPMENT:

When the employees are aware of the importance of Performance Appraisal for

their growth & development, elevation and satisfaction of psychological need, they

give their best efforts to improve their skill through skill development measure.

7. USE OF CONTROL ACTIVITIES:

When job related behavior of employees for below the standard behavior as

revealed from the performance rating organization use control measure to check

behavioral activities.

8. PREPRATION OF SUCESSION PLANNING:

Performance Appraisal system exhibits strength & weakness of executives, lets

the company know about the employees who are competent, effective and

dynamic. So that succession planning can be prepared for filling up subsequent

vacancies of senior executives.

41

IMPORTANCE OF PERFORMANCE APPRAISAL:

In modern organization, Performance Appraisal is needed to reduce the objective terms,

the experience and personal qualities of every employee in the organization.

ACCORDING TO DALTON E MC FARLAND”the purpose of any formal method of

systematic employee’s appraisal is to provide greater objectivity in the executive’s

judgment about subordinates. It is also an objective to regularize the procedure used by

requiring periodic appraisal, so that up-to-date information is available for use in making

decision about people.

Performance Appraisal has become a very significant activity in most of the enterprise

because it provide data about past, present and excepted performance of the employee

which is helpful in taking decision selection, training and development, increase in pay,

promotion, transfer and the like. These days a large amount of money is being spent on

Performance Appraisal by most of the organization. The following benefits of

Performance Appraisal justify the designing of an effective programmed of Performance

Appraisal:-

1) It provide scientific basis for judging the merit of worth of employee’s who try to

improve their performance if it is not up to the satisfaction of the employee’s

2) It is a sound basis for promotion, demotion, transfer and termination of

employees. Better person are selected for promotion It help the management in

avoiding snap judgment about personnel and taking sound personnel decision.

3) It helps in distinguishing between efficient and inefficient worker. In this way it

reveals the defect in the selection procedure. The employee who are misfit may be

spotted and appropriate action taken to give them suitable training.

4) It helps the supervisor to evaluate the performance and to know the potential of

their subordinate systematically. It also helps them to assign work to individuals

for which are best suited. Thus it, facilitate the current placement of worker

42

5) Performance rating helps in guiding the employees. The supervisor may use the

result of appraisal system foe the purpose of constructively guiding the employees

in the efficient performance of work. The employee comes to know where they

stand and consequently they try to improve their performance.

6) If the Performance Appraisal is done scientifically and systematically, it will

prevent employee grievance. The records of Performance Appraisal are available

in a permanent form to protect the management against subsequent changes

charges of discrimination which might be leveled by the trade unions. Thus

Performance Appraisal helps in creating a congenial atmosphere of employer –

employee relations.

43

USES OF PERFORMANCE APPRAISAL:

Some common application of Performance Appraisal includes:

1) Performance Appraisal provides valuable information for personnel decision such

as pay increase, promotion, demotion, transfer and termination. Management gets

an objective basis for discussing salary increases and promotion with the staff.

Thus, Performance Appraisal serves as the basis of suitable personnel policies.

2) It helps to judge the effectiveness of recruitment, selection, placement and

orientation system in the organization.

3) It is useful in analyzing training and development needs. These needs can be

assessed because Performance Appraisal reveals people who require further

training to remove their weaknesses. It also identifies individuals with high

potential who can be groomed up for higher position.

4) Performance Appraisal can be used to improve performance through appropriate

feedback, working and counseling to employees. It serves as a means of telling a

subordinate how he is doing and suggesting necessary changes in his knowledge

behavior and attitude. It serves to stimulate and guide employee’s development

5) Performance Appraisal facilitates human resource planning, career planning and

succession planning.

6) It promotes a positive work environment which contributes productivity. When

achievements are recognized and rewarded on the basis of objective performance

measure, there is improvement in work environment.

7) A competitive spirit is created and employees are motivated to improve their

performance. Systematic appraisal provides management an opportunity to

properly size up the employees. It also enables a manager to understand his

strength and weaknesses.

44

PROCESS OF PERFORMANCE APPRAISAL:

45

ESTABLISH PERFORMANCE STANDARD

COMMUNICATE THE STANDARD

MEASUREING PERFORMANCE

COMPARE THE ACTUAL PERFORMANCE WITH STANDARD

DICUSS THE APPRAISAL

TAKING CORRECTIVE ACTION

1) ESTABLISH PERFORMANCE STANDARD:

The appraisal process begins with the setting up of criteria to be used for

appraising the performance of employees. The criteria are specified with the help

of job analysis which reveals the content of a job. These criteria should be clear,

objective and in writing. It should be discussed with the supervisors to ensure that

all the relevant factor have been included. Where the output can be measured the

criteria is clean. If work performance cannot be measured, the personal

characteristics which contribute to employee performance must be determined.

These characteristics include work quality, honesty, and reliability, cooperation

and team work, job knowledge, initiative, leadership, safety consciousness,

attendance, learning ability, adapbility, judgment, and sense of responsibility,

health and physical condition.

2) COMMUNICATE THE STANDARD:

The performance standard specified in the first step are communicated and

explained to the employees so that they come to know what is expected them. The

standard should be conveyed to the evaluators. The reaction of employees to the

standard should be obtained. If necessary the standard may be revised or modified

in the light of feedback obtained from the employees and the evaluators.

3) MEASURING PERFORMANCE:

Once the performance standard are specified and accepted, the next stage is the

measurement of actual performance. This requires choosing the right technique of

measurement, identifying the internal and external factor influencing performance

and collecting information on result achieved. Personal observation, written report

and face to face contacts are the means of collecting data on performance. The

performance of different employees should be so measured that it is comparable.

What is measured is more important than how it measured.

46

4) COMPARE THE ACTUAL PERFORMANCE WITH

STANDARD:

Actual performance is compared with the predetermined performance standard.

Such comparison will reveal the deviation which may be positive or negative.

Positive deviation occurs when the actual performance exceeds the standard. On

the other hand excess of standard performance over the actual performance

represents negative deviation.

5) DICUSSING THE APPRAISAL:

The result of appraisal are communicated to and discussed with the employees.

Along with the deviation the reason behind them are also analyses and discussed.

Such discussion will enable an employee to know his weaknesses and strength.

Therefore, he will be motivated to improve himself.

The impression the subordinate received about his performance has an impact on

his subsequent performance. The impact may be positive or negative depending

how the appraisal feedback is presented and discussed with employees.

6) TAKING CORRECTIVE ACTION:

Through mutual discussion with employees, the step required to improve

performance are identified and initiated. Training, coaching, counseling etc. are examples

of corrective action that help to improve performance.

47

METHODS OF PERFORMANCE APPRAISAL:

________________________________________________________________________

INDEPENDEPENT COMPARTIVE RESULT CONTRIBUTION

APPROACH APPROACH APPROACH COST

APPROACH

1) EASY APPRAISAL 1) RANKING MANAGEMENT HUMAN

BY RESOURCE

2) CHECKLIST 2) FORCED OBJECTIVE ACCOUNTING

APPRAISAL DISTRIBUTION

3) CRICTICAL

3) PAIRED

4) FORCED-CHOICE COMPAIRSON

APPRAISAL

5) CONFIDENTIAL REPORT

6) GRAPHIC RATING SCALE

7) BEHAVIOURALLY ANCHORED RATING SCALE

8) ASSESSNENT CENTRE

9) 360 FEEDBACK

10) FIELD REVIEW

48

INDEPENDENT APPROACH : Under this approach evaluation of employee’s performance is independent of any other

employee in a work team. Employees are not compared against other employees but they

are compared to a standard.

Some of the techniques under independent approach are discussed:

1) EASSY APPRAISAL:

It is one of the techniques used by some organizations for evaluating performance of

employees. Under this method, appraiser is too required to rate employee’s

performance in essay form to describe strength and weakness, training needed,

suggestion for improvement etc. Generally, evaluation is made on the following

areas:

Knowledge in technical areas e.g. operative knowledge, knowledge in

company’s rules, regulations, policies, procedures.

Skill and ability to perform present job.

Ability to work in a team.

Attitudes towards peers, boss, subordinates, higher management.

Human skill.

Potential.

Ability to perform whole activity independently.

MERITS:a) It is easy to carry out in organization.

b) Rater may not need training for evaluation of employee’s performance.

c) It is less expensive.

d) Subordinate may have faith on this method because of simplicity.

DEMERITS:a) It is a subjective evaluation method.

b) Since quantitative appraisement is not made, employees exact

performance level can not be known.

49

c) Areas on which appraisement is made do not adequately

represent employees job activities. Hence, actual performance of

employees can not be known

2) CHECKLIST APPRAISAL: Checklist appraisal is used to evaluate performance of employees in

organization. The terminology ‘checklist appraisal’ denotes a technique of

performance evaluation made through testing/verification of a list of

behavioral about description about an employee.

FEATURES:a) Performance evaluation of employees is not made by rater; it is done by

some officer in the personnel department/HRM department.

b) The boss under whom employees work checks the behavioral

statement/description about them and indicates ‘yes’ or ‘No’ against each

statement already set.

EXAMPLES OF A SIMPLE CHECKLIST:

a) Is the employee prompt in rendering service to customer?

b) Does he take interest to solve customer problem?

c) Does he help his co worker in providing service to customer?

d) Does he behave well with customer?

e) Does he keep customer standing/waiting for along period in front of his

counter without giving service?

f) Does he serve customers with smiling face, helping attitude?

g) Is he liked by customer?

h) Does he carry out instruction of his superior?

MERITS:

50

a) It is a simple method to evaluate performance of employee.

b) Rater does not have any idea regarding final evaluation of employee’s

performance. Hence, the possibility of his being biased is less.

DEMERITS:a) It is difficult to appraise quantitative performance of employees.

b) It is an expensive method.

3) CRITICAL INCIDENT:

It is one of the methods used by organizations to evaluate performance of

employees. Under this technique, boss/supervisor keeps records of key or

crucial job related behaviors of employees for the whole review/appraisal

period on a day to day basis. After stipulated period, may be, after six

months from the commencement of the review period supervisor calls his

subordinates for discussion and points out both positive and negative areas

and also for attaining excellence in positive areas.

MERITS:a) It may create confidence amongst subordinates about evaluation when

they find that rater takes it seriously to record all crucial behavior-

negative and positive behavior on daily basis.

b) Effect of recent behavior is minimum.

DEMERITS:a) The method is time consuming.

b) Supervisor/rater may take this method casually.

c) Quantification of performance behavior is not possible. So,

comparative performance analysis may not be accurate.

4) FORCED-CHOICE APPRAISAL: It occurs organization that some raters are very much biased when they

appraise performance of their subordinate. To avoid such situation, an

51

appraisal method has been designed and introduced in organization where

rates are required to choose statement, which, according to them, suit

ratees’activities, behavior and performance. This appraisal technique is

forced-choice appraisal method.

FEATURES:

a) Two or more statement relating to subordinates behavior, activities are

mentioned in appraisal format. Each statement may express positive or

negative aspect of behavior /activity of the individual being evaluated.

b) Rater ticks the statement which is most descriptive or in some cases

least descriptive of the concerned subordinate.

c) Rater score are given by officers in HRM/personnel department.

EXAMPLES:The following are the examples of statement relating to customer service

rendered by a bank employee and the rater is required to choose the

statement that describe most of his behavior. List of statement:

a) He provides service to customer with smiling face.

b) He develops a good rapport with customer.

c) He attends customer’s problem immediately after he gets/comes to

know the problem and sort out problem promptly.

d) Most customers express satisfaction about service rendered by him.

MERITS:a) This method is free from biased rating as the rater himself does not

know scoring.

b) It give accurate rating

DEMERITS:a) It is time consuming as rating process goes through the stages like

preparation of statement, choosing statement by rater, scoring/evaluation

made by officer of HRM/personnel department which need much time

to complete.

52

b) It is expensive as designing format to prepare statement, selecting

answer key, and ascertaining correctness /efficiency of answer key

involve a lot of money

5) CONFIDENTIAL REPORT: It is one of the traditional methods of evaluating performances, behavior,

activities of subordinates. Under this method subordinates’ strength, weaknesses,

effectiveness, initiative, attendance, punctuality, commitment, loyality, knowledge,

competencies, honesty, integrity, team performance etc.are mentioned in the report.

This method is used in government organization / offices as also in some private

organization. Evaluation is made by immediate boss of subordinate on the basis of the

information gathered by him about behavior, activities of his subordinates through

observation, and perception impression developed in the process of interaction

between them for accomplishment of job assigned to them.

MERITS:a) It is easy to implement

b) Rater does not need training to appraise performance. He record

overall impression on rates in the report.

c) It is not expensive to use in organization.

DEMERITS:

a) It is subjective evaluation process.

b) There is no system of counseling subordinates in situation when

they perform miserably low.

c) It is an old method that needs modification.

6) GRAPHIC RATING SCALE:

This is one of the methods used in organization to ascertain performance level of

employees. Under this method, emphasis is given on traits/characteristics of

individuals. The concept emerges from the understanding that qualitative

53

traits/attributes of employees contribute a lot to the achievement of organizational

goals. Hence, arises through the use of this appraisal technique.

FEATURESa) Evaluation is made on traits viz. quality of work, initiative, dependability,

leadership, job, knowledge, punctuality and the likes but some organization

appraise important areas of work/duties of employees instead of assessing trait

factors.

b) Each trait of subordinate is rated by the supervisor by circling the score in the

rating scale.

EXAMPLE OF TYPICAL GRAPHIC RATING SCALE SHOWN

IN FIGURE:

PERFORMANCE APPRAISAL

Employee’s Name: ________________________________

Designation: _____________________________________

Department: _____________________________________

Employee code No: ________ Review period:___________

Name of reviewing Authority: ________________________

Since when employee is working in the department: _______

54

55

TRAITS RATING SCALE COMMENT

1.INITIATIVE O o 100-90

VG o 89-80

G o 79-70

S o 69-60

US o below 60

2. DEPENDABILITY O o 100-90

VG o 89-80

G o 79-70

S o 69-60

US o below 60

3. QUANTITY OF O o 100-90

WORK VG o 89-80

G o 79-70

S o 69-60

US o below 60

4.JOB O o 100-90

KNOWLEDGE VG o 89-80

G o 79-70

S o 69-60

US o below 60

5. QUALITY OF O o 100-90

WORK VG o 89-80

G o 79-70

S o 69-60

US o below 60

POINTS

POINTS

POINTS

POINTS

POINTS

Rating abbreviation: O- outstanding, VG- very good, G- good, S- Satisfactory, US-

Unsatisfactory

56

Figure- Typical Graphic Rating scale

MERITS: a) It is a simple method to assess performance of employees.

b) It is easy technique that does not need training to use by raters.

DEMERITSa) Designing rating scale needs high expertise and knowledge.

b) Biased rating in performance evaluation can not be ruled out.

7) BEHAVIOURALLY ANCHORED RATING SCALE (BARS):

This is a technique of appraising employee’s performance level that considers

actual behavior on job. It is based on critical incident approach that looks into

effective behavior for a particular performance dimension.

STEPS TO DEVELOP A (BARS):

Step 1. Gathering information regarding critical incidents : Individual employees and supervisors are asked to describe the critical incidents of

effective and ineffective performance on the job. Collection of information through such

measure is direct.

Step 2. Classifying incidents into performance dimensions : The same group is advised to classify these incidents into performance

dimensions. Incidents may be hundred or more but performance dimension may be much

less (between five and ten)

Step 3. Reassigning incidents

57

The second group who has also through knowledge in such area of performance is

briefed about critical incidents and classification dimensions and is asked to reallocate

each incident to the classification/cluster. Reassigning of incidents to a particular

cluster/dimension is made on the basis of majority choice/ decision. If majority personal

of this group (say more than 70%) considers that an incident belong to a particular cluster

as made by the group in step 2, the same is retained.

Step 4. Scaling incident The second group is asked to rate each incident in 5 point or 7 point scale to describe as

how to effectively or ineffectively it represent performance dimension.

Step 5. Preparing final instrument Generally, six or seven incidents per cluster /performance dimension are used as behavior

anchors to rater.

MERITS:a) It is easy to implement as it does not need any training for raters or ratees

b) In counseling /feedback session get clear idea in respect of his performance/job

behavior as critical incidents specify scale value to determine his performance

level of the job.

c)

DEMERITS:a) It is expensive and time consuming.

b) Perfect/accurate rating may not be possible as the method provides scope to raters

to rate in biased manner.

58

BEHAVIOURALLY ANCHORED RATING SCALE IS ILLUSTRATED IN

FIGURE:

Extremely good performance Could be expected to receive from all the

person who remain in the queue during

stipulated period to enter into respective

registers, to verify records to return

counterfoil to them and control the

atmosphere

Good performance Could be expected to receive fees from all

those who remain present and to complete

all the formalities but fail to maintain

peaceful and congenial atmosphere.

Neither poor or good

performance

Could be expected to receive fees and to

complete all the formalities at a slow

speed and as a result all person who

remain on the queue may not have chance

to deposit fees during specified period.

Slightly poor performance Could be expected to receive fees and to

complete formalities with the help of co

worker.

Poor performance Could be expected that the receiving

cashier asks the person in the queue about

the amount of different fees and remain

busy in conversation with them.

Figure- Behaviorally Anchored Rating scale

59

8) ASSESSMENT CENTRE METHOD:

The basis of the method is to test candidates in a social situation, using a number

of assessors, and job related simulations. These simulations involve

characteristics that manager feel important to the job success. The evaluators

observe and evaluate participants as they perform activities in the higher level of

job.

9) 360 FEEDBACK:

This is a new method used for assessing performance of employees particularly

managers, officers in organization. Under this method, manager’s behavior, skills

are evaluated by all people who are in some way connected or related to them.

They are subordinates, peers, bosses, team members and customers. Managers

themselves appraise their own job behavior through self-appraisal system. This

method is also called multi source assessment as assessment is made by different

people and such technique collect feedback from these sources/person with regard

to ratees/reviewees. P.ward (1995) has expressed that 360 feedbacks is the

systematic collection and feedback of performance data on an individual or group

derive from a no. of the stakeholder on their performance.

Performance assessment under this method is made by the stake holder is shown

in the figure:

60

The 360 appraisal which was coined in the U.S in 1998 has been very popular

there as a tool to measure employees performance and also to provide feedback for

development. Most of the U.S companies are now using this technique. In India, it is

emerging as HR tool for development at WIPRO, ITC, MOTORALA, NOKIA,

SEAGRAM, and a few others.

This method has different uses viz. designing scheme for personnel development of

employees and team members, preparation of succession planning, assessment of training

and development needs, decision for pay increase, ascertainment of leadership traits,

establishment of interpersonal relationship.

This assessment technique work in a system activity like:

Selecting raters (viz. peers, subordinates, boss, customer)

61

Peers Team member

Individual employee

Customer

Boss

Subordinates

Conducting survey to know opinion, perception about ratee’s

performance, qualities etc.

Compilation of opinion and analysis of report.

Preparation of a concise report containing rating of different raters.

Presentation of report to the rate.

Action taken to change/modify ratee’s behavior.

BENEFITS: The 360 feedback (multi source assessment) has the following benefits if, used

in organization:

a) Rating is unbiased as raters are many and give separate rating about

ratee’s performance, job behavior.

b) Ratees can compare their own evaluation with those evaluation made by

others and accordingly can take measures for improvement.

c) This method encourages more open feedback.

d) This method develops a feeling of self-awareness amongst ratees

LIMITATION:a) Managers may take revenge against the raters who have rated badly

on the performance behavior of ratees.

b) Free and frank rating may not be possible in some cases specially

when subordinates evaluate bosses performance.

10) FIELD REVIEW METHOD: This is a method of appraising performance of employees through field

survey/review by the officer of the personnel/HR department of the organization. This

technique is generally used in such cases where raters’ biasness is noticed or where

disagreement between raters is found.

This method involves the following activities:

62

Initiation of performance review of employees by HR executive/officer or

personnel officer at the workplace.

Presenting question to employee’s supervisor about each employee’s

performance level, promotability, qualitative traits, knowledge, skill,

attitudes aptitude, weak areas, training need and recording reply of

concerned supervisor.

Obtaining information by asking question to peers, employees about their

work performance, deficit of skill if felt, support if needed.

Studying/analyzing points agreements, disagreements /differences in

respect of information given by the concerned person.

Performance review by appraiser( HR/personnel staff)

MERITS:a) Rater’s biasness is eliminated.

b) Since, third party intervention is involved information/replies are

given by the concerned person very cautiously.

DEMERITS:a) It is time consuming as third party activity is involved.

b) Supervisor may not take this technique in good spirit.

c) It may adversely affect working climate in department.

COMPARATIVE APPROACH:

Under this approach, comparative evaluation of employee performance is made. Each

individual employee’s performance is compared to other employees. Three methods:

viz. Ranking Method, Forced Distribution Method, and Paired Comparison Method

are discussed to appraise employee performance.

1) RANKING METHOD

63

Two ranking methods are in great use in organizations. They are Simple Ranking

Method and Alternation Ranking Method.

A. SIMPLE RANKING METHOD This is a technique used in organization to appraise employees’ performance through

comparative analysis of employees’ traits, characteristics and assigning position / place

with regard to such traits / characteristics. Under this method employees are ranked /

assigned numerical score (like, 1, 2, 3, and so on) on the basis of their place / position in

respect of each trait, characteristic / behavior. Overall assessment / ranking is made on

compiling individual ranking. So, ranking requires executives / managers to rank

employees within their departments from best to worst or from highest to lowest.

B.ALTERNATION RANKING METHOD Under this method best and worst employees are ranked / chosen in a alternative manner.

That means, are deciding best employee from the lot, worst employees from the

remaining employees is ranked.

PROCESSa) A list of employees working in a department is prepared for evaluation of their

performance.

b) Best employee is chosen from the list in terms of characteristic/trait and his name

is crossed off the list.

c) On a separate form best employee’s name is indicated on the top.

d) Worst employees chosen from the remaining employees of the list and his name

are crossed off his list. His name is shown on the bottom of the separate form.

e) Next highest employee is identified / assessed and is placed second position on

the form after having crossed his name off the list. Next lowest is chosen and

placer position on the form accordingly. Choosing the next highest and the next

lowest in an alternating manner and placing them in proper place continues until

all employees of the department as mentioned in the list for evaluation are ranked.

64

MERITS:a) This is simple and easy method that does not need training for raters or

ratees.

b) It is less expensive as it does not involve extra cost towards designing

format, training of raters to learn the system for evaluating performance

etc.

c) Since, performers and non-performers are identified /known, company

can initiate separate projection/ measures for developing skill, knowledge,

competencies, attitude of both group of employees.

DEMERITS:a) It demoralize, frustrate employees who are ranked low.

b) Chances of biased judgment are not ruled out.

c) Accurate ranking may not possible when a good number of employees

have equal level of performance.

2) FORCED DISTRIBUTION MEOTHD:This is a method used in organization to appraise employee’s performance by

putting certain percentage of employees into different categories, as decided

early. It occurs that some raters prefer to rate the employees high or low and

they become biased in appraising performance. To overcome this situation

forced distribution method introduced. This method uses the

characteristics/traits of job performance and promotability as well.

PROCESS:a) For evaluation of work performance employees are categorized into some

groups like high performance, above performance, average performance,

below average performance and low performers.

65

b) Percentage distribution of ratees to each performance category is made.

For example, distribution of percentage of employees may be like in the

following:

High performers 10%

Above average performers 15%

Average performers 40%

Below performers 15%

Low performers 20%

d) Employees are rated by the managers/executives and are placed in performance

categories.

MERITS:a) It is very easy to use this method.

b) It helps to design and develop training programmes/courses for low

performers and below average performers.

c) It helps to change, modify selection tools, technique so that organization

can procure quality and dynamic people as per requirement.

DEMERITS:a) It affects team building, team spirit, interpersonal relation between

employees and all this creates unhealthy, conducive atmosphere in the

organization.

b) Performance categories of employees affect production, productivity,

absenteeism and turnover of the employee

3) PAIRED COMPARISON METHOD:

This is one of the methods to appraise performance of employees by making

pairs and comparing to every to employee in respect of performance characteristics / trait

of such employees. For every trait/ characteristics each employee is paired with and

compared to every other employee and the better one is indicated with a ‘+’ mark. After

comparison is made, the employee who has obtained maximum number of ‘+’ marks is

ascertained and ranked highest for the particular trait.

66

For calculating total number of comparison the following formula is applied:

N (N-1) Where N means number of employees to be rated.

2

For example, in a group of 5 persons (say, A, B, C, D and E) total number of

comparison is 5(5-1) i.e, 10. So pair is like

2

AB, AC, AD, AE, BC, BD, BE, CD, CE, DE

This method is explained in figure

For the trait ‘job knowledge’

Employee rated

As compared to Mr. A

Dutta

Mr. B

Bose

Mr. C

Chandra

Mr. D

Dan

Mr. E

Pal

Mr. A Dutta - - - -

Mr. B. Bose + + -

-

Mr. C. Chandra + - - - +

Mr. D. Dan + + + -

Mr. E. Pal + + - +

Figure: Ranking Employees by the paired comparison method

67

MERITS:a) It is very easy for the rater to compare and find out the better employee in

respect of performance characteristics, traits.

b) It ensures that every employee is compared to every other employee in the

work group.

DEMERITS:a) It is very time consuming as comparison is made on a one-on-one basis.

b) If span of supervisor is very large, it is difficult to use for appraisal of

performance of employees in organization.

RESULT APPROACH: This approach to Performance Appraisal relates to objectives, result of a job.

The concept arises from the philosophy that, achievements of results

strengthens organizational effectiveness; generate strength and power of the

organization to sustain, to face challenges.

The performance management system that uses results is management by

objective, which is discussed below:

MANAGEMENT BY OBJECTIVE:

This is method of appraising performance of employees through setting of

goals jointly by managers an subordinates in terns of company goals. This is

objective oriented appraisal system which converts company objective/goals.

The concept is based on participation of each and every individual employee

for achievement of the company goals. So, all employees are involved in the

goal setting exercise. Individual objectives/ goal are jointly set by subordinates

and supervisors/manager looking to company goals and such individual goals

are considered as standard on the basis of which employee’s performance is

68

assessed. An example of objectives / goals for a branch manager of a bank,

under MBO programme is given in figure:

Amount of deposit

Amount of Advance (excluding House Building)

Loan & Agricultural loan

Recovery of Non-Performing assets

Amount and Number of Accounts of House

Building Loan

Amount and Number of Accounts under different Savings Schemes

Number of customer complaint

Amount of Profit

Amount and number of Accounts of Agriculture Loan

The numerical goals are decided jointly by branch Manager and Regional/Zonal

Manager.

Figure: Objectives for a branch manager of a bank

PROCESS OF MBO:The following steps are considered for MBO process:

1) SETTING INDIVIDUAL GOAL:

69

Corporate plan is established first and then goals are decided on the

basis of such plan. At the time of goal setting organization’s objectives

are taken into account in it’s entirely.

After organization’s goals are fixed, message is transmitted to the

senior executives for settings goals of the respective departments. Such

executives discuss with their subordinates who are department heads of

the organization, in respect of the targets of the departments and set

goals jointly. After department goals are set, department head discusses

this issue with all department members and make them aware of the

situations that necessitate achieving department goals jointly and in

cooperative efforts.

2) PREPARING ACTION PLANS

After goals/ objectives are decided next step is to prepare action plan so

that, the targets / standard fixed for the review period can be attained.

Under this phase the activities include:

Splitting of the target / KRAs over some fixed period for review.

Exploring and identification of supporting areas that may facilitate

achievement of goals.

Activities to be undertaken to accomplish the assigned tasks.

Determining the resources / infrastructure required to perform the tasks.

Finding out the measures to be adopted to overcome the hurdles / trouble

to be faced in the process of performing activities.

3) MONITORING AND SELF-DIRECTING

The rate monitors the whole activities to ensure that the target fixed for the

review period is attained, if not surpassed. He exercises self-direction to

move on a right back so that stipulated activities are performed.

70

4) CONDUCTING PERIDIOC REVIEW MEETING: The rater / manager makes periodic review meeting with subordinates to

know the periodic achievements. He compares individual employee’s

performance with standard performance set jointly by him and the

concerned subordinates.

5) PROVIDING FEEDBACK TO THE SUBORDINATES:

Subordinates may sometime find difficulty to achieve target in usual

situation and it is felt necessity by the rater to provide support to reinforce

areas. So, the manager/ reviewer provide feedback/ support to the

subordinates during the review period to monitor progress toward

individual goals

10) EVALUATING PERFORMANCE:

The rater evaluates performance immediately on the expiry of review period in

terms of standard / goals set jointly at the beginning of the review period.

MERITS:a) It is easy to measure performance as performance target is already set. The

manager needs to compare individual performance with standard

performance.

b) It develops a sense of accomplishment among individual employees.

DEMERITS:a) It is time consuming as the whole process (viz, setting goals, conducting

periodic review meeting, and providing feedback/support to subordinates)

needs much time to be spent.

b) This method may not work effectively where superior subordinate relation is

not healthy.

71

CONTRIBUTION COST APPROACH:Measuring performance of employees in the context of contribution over

employees cost in anew concept. Under this approach, human resource accounting

method is used to appraise employee’s performance.

HUMAN RESOURCE ACCONNTING METHOD:

Under this method, employee’s performance is evaluated on the basis of

contribution made by him in the organization as compared to cost. The concept of

this technique arises from the philosophy that employees are assets / resource.

Like any other resource, human resource has a great value in the organization for

its survival, growth and development. Human resource, is therefore, needed to be

focused as assets in company’s record. Some organization have introduced

Human Resource Accounting as a tool to measure employees performance in

context of contribution made by them (i.e. value added by employees) over cost

of recruitment, selection, development of such employees. Hence, employees

contribution to the organization may be in excess of employees cost (that is

surplus contribution or positive performance) or may be in short of cost (that is

deficit contribution or negative performance). Such performance level is

measured in percentage that means deficit/surplus contribution is shown in

percentage. Percentage of contribution and it corresponding rating is decided.

Rating may be ‘excellent’ ‘very good’, ‘good’, ‘satisfactory’, ‘unsatisfactory’

against the percentage of contribution to cost of employee.

PROBLEM IN PERFORMANCE APRAISAL:

[LIMITATION OF PERFORMANCE APPRAISAL]

The main problems involved in Performance Appraisal are as follows:

72

1) ERROR OF RATING: Performance Appraisal may not be valid indicator or performance and

potential of employees due to following type of errors:

a) HALO EFFECT:It is the tendency to rate an employee consistently high or low on the basis of

overall impression. One trait of the employee influences the rater’s appraisal

on all the traits. For example, an employee may be rated high on performance

just because he sits on the job late in the evening. Similarly, a person who

does not have regularly may not be considered lazy at work and may be

underrated. This error may be minimized by rating all the employees on one

trait before taking up other trait.

b) STERO TYPING: This implies forming a mental picture of a person on the basis of his age, sex,

caste or religion. It result in an over – simplified view and blurs the assessment of job

performance.

c) CENTERAL TENDENCY:

It means assigning average rating to all the employees in order to avoid

commitment or involvement. This is adopted because the raters has not

justified or clarify the average rating. As a result the ratings are clustered

around the mid-point.

d) CONSTANT ERROR:Some evaluation tends to be lenient while other is strict in assessing

performance. In the first case performance is overrated (leniency error) while

in the second type it is underrated (strictness error). This tendency may be

avoided by holding meeting so that the raters understand what is required of

them.

e) PERSONAL BIAS:

Performance Appraisal may become invalid because the rater dislikes an

employee. Such bias or prejudice may arise on the basis of regional or

religious beliefs and habit or interpersonal conflicts. Bias may also be the

73

result of time. Recent experience or first impression of the rater may affect

the evaluation.

f) SPILLOVER EFFECT: This arises when past performance affects assessment of present

performance. For instance, recent behavior or performance of an employee may

be used to judge him.

2) LACK OF RELAIBILITYReliability implies stability and consistency in the measurement. Lack of

consistency over time and among different raters may reduce the reliability

of Performance Appraisal. Inconsistent use of measuring standard and lack

of training in appraisal techniques may also reduce reliability. Different

qualities may not be given proper weight age. Factors like initiative are

highly subjective and cannot be quantified.

3) INCOMPETENCERaters may fail to evaluate performance accurately due to lack of

knowledge and experience. Post appraisal interview is often handled in

effectively.

4) NEGATIVE APPROACH

Performance Appraisal loses of most of its value when the focus of

management is on punishment rather than on development of employees.

5) MULTIPLE OBJECTIVESRaters may get confused due to two many objectives or unclear objectives

of Performance Appraisal.

6) RESISTENCE

74

Trade unions may resist Performance Appraisal on the ground that it

involves discrimination among its members. Negative ratings may affect

interpersonal relations and industrial relations particularly when

employees/unions do not have faith in the system of Performance

Appraisal.

6) LACK OF KNOWLEDGEThe staff apprising performance of employees might not be trained and

experienced enough to make correct appraisal.

75

RESEARCH METHODOLOGY

TITLE OF THE STUDY:-

The title of the study “Performance Apprisal”

Objective of Research

Employee engagement is a critical ingredient of individual and organizational

success. Engagement is strongly influenced by leadership quality, as well as by

job and organization features. This research was designed to determine if the

potential for Employees to be engaged in work can be predicted at the time of

their initial application or work. These studies also provide additional evidence

about the impact of employee engagement on important business outcomes.

1.To find out Parle Coverage in various areas of Jaipur.

2.To check the Brand availability of the company products at different stores.

3.To compare the Brand with its competitive Brands like ITC, Britannia,Priyagold

in terms of coverage, number of brands available and monthly sales.

4.To analyze that which type of biscuits and candies are most preferred

anddemand by the customer. It was done by asking storekeepers as well

ascustomer.

5.To analyze the availability of new Parle products launched in the market.

6.To compare the organized retail stores with unorganized retail stores in termsof

brand availability.

The Objectives are:-

76

To examine the effect of engagement such as job Effectiveness and

retention.

To construct and evaluate a measure for predicting employee

engagement.

To examine the effect of supervisor engagement on their subordinates.

To examine the job satisfaction of the employees working.

Types of Research

Broadly speaking research design can be of three types: -

(1) Exploratory Research Design

(2) Descriptive Research Design

(3) Casual Research Design

An Exploratory Research focuses on the discovery of ideas.

A Descriptive Research focuses on a detailed description of certain

phenomena.

A Casual research is undertaken when the research wants to know the

cause and effect relationship between two or more variables.

The study was essentially and Exploratory one. Determining the subjects matter of

the “Training knowledge of Teammates” in Parle Biscuit Pvt. Ltd. And then

evaluating the feedback forms thus obtained an attempt was made to recommend

modifications and changes so as to makes efforts of the HRM department in Parle

Biscuit Pvt. Ltd were more productive and beneficial.

A Descriptive study is rigid and formal. It requires clear specifications of who,

what, when, where, why & how aspects of the research. It requires formulations of

more specific hypotheses and testing these through statistical inference technique.

Despite its merits, the important fundamental weakness is: descriptive research

doesn’t find the cause and effects and relationship among variables.

77

Data Collection

The data were used from primary sources data and secondary sources data.

Sample Size :- 100

Primary Sources: -In case of primary sources the information was retrieved directly form the

concern people and the authorities for the purpose Questionnaire and

personal interview were used. The questionnaire method was used it is more

versatile then any other method and further a questionnaire is preplanned and

thus less time is wasted since a planned set of questions

are available. While there was information, which could not be obtained

through Questionnaire, for that purpose we resort to personal interviews.

The biggest advantages of personal or face-to-face interview were that it

helped us build personal contacts, which helped us in gathering our required

information. Further face-to-face interviews were also helpful due to their

flexibility. We were able to frame the questions on the spot suiting the

conditions.

Secondary Sources: -

The sources from which the secondary data were collected were the Internet

and various books. Since secondary data are information published by others

they were easily available and not such effort was required in obtaining the

information, further r data were less subject to bias. Lower level staff has also

been targeted and have gathered relevant information from them as well.

Purpose of meeting low-level staff in Parle Biscuit PVT.LTD. was to get a

78

clear as well as true picture of the organization. For this level personal

interview is done. It makes talks more communicate and spontaneous.

SCOPE OF THE STUDY:

The study is conducted at PARLE PVT.LTD., Jaipur. This procedure relates to all

the employees who undergo training procedures (both behavioral and technical)

within the organization.

• Industrial Park Promoted by the Govt.

• Other Neighbors in the Park are :

NATURE OF DATA:

The data collected for this research study is both primary as well as secondary.

Primary sources:- Administering questionnaire & get them filled by employees in PARLE

PVT. LTD.,Jaipur.

Observations during training

Secondary sources:- Previous records or forms available in the organization like

-Training evaluation forms

-Feedback forms etc.

Various books regarding training and its principles

Internet

79

LIMITATIONS OF THE STUDY

The project instead of being done so carefully may contain certain loopholes.

They can be discussed as:-

The time availability for the study is less which may hinders the progress of

study.

Busy schedule of managers may also prove a limitation in achieving

research objectives.

Element of bias may be there on the behalf of employees in filling up of the

forms.

Quickness of filling questionnaires may also result in misinterpretation of

data.

80

FACTS AND FINDING

There are some guidelines for filling Confidential Report Form:

Your appraisal should be based on how well the employee has achieved the

result expected for this period under assessment, please note, you are

appraising the employee’s performance (result achieved or not achieved and not

the person).

For indicating your rating on each factor, please tick the appropriate.

Guard against any tendency to over - rate and under – rate this is unfair both to

the employee reported upon as well as to his colleagues.

It will be filled in by an officer to whom the employee directly report (officer here

means executive).

An efforts should be made to rate all the factors if a particular factor is not

applicable in case any employee; it should be mentioned as “Not Applicable”.

Before recording their assessment, the appraiser must read carefully the factor

definition ad grade description given their under.

In case, evaluation of an employee and particular factor is considered to be

either extreme, i.e. “exceptional / outstanding” or “poor” it should be justified by

giving appropriate date for each factor separately.

Each factor should be rated independently a higher or low grading in some factor

should not influence the assessment of the other factor. One useful method to

avoid this is to assess all employee at a time in respect of all the assessing

officer while evaluating a factor picks on one employee at a time in respect off all

the assessing officer while evaluating a factor picks on one employee with in the

group whose performance in that factor is taken to be average.

81

DATA ANALYSIS AND INTEREPRETATION

TABLE – 1

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR AWARENESS OF THE PRESENT PERFORMANCE APPRAISAL SYSTEM OF THE ORGANIZATION

Responsecategory

No Of Persons Percentage

Yes 44 88%

Yes, to certain extent 6 12%

No 0 0%

Total 50 100%

82

Are you aware of the prevailing system of performance appraisal in your organization?

Interpretation:

As it can be predicted from the graph, organizations have their prevailing system

of performance appraisal. Most of the prevailing system have their performance

appraisal. In this figure represented the percentage for various alternatives like

that YES or NO.

83

TABLE – 2

CLASSIFICATION ON RESPONDENTS ON THE BASIS OF THEIR OPINION REGARDING THE NEED OF PERFORMANCE MANAGEMENT SYSTEM IN THE ORGANIZATION

Responses No Of Persons Percentage

Very high 20 40%

Quite high 21 42%

Rather high 6 12%

Rather low 3 6%

Quite low 0 0%

Very low 0 0%

Total 50 100%

84

Need for Performance Management System in the Organization

Interpretation:

As it can be predicted from the graph, organizations have their PERFORMANCE

MANAGEMENT SYSTEM. n this figure represented the percentage of person

with the number of persons in the organization to ullfillment the use on an

organization various alternatives.

TABLE - 3

85

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR SATISFACTION WITH APPRAISAL SYSTEM

86

Response Category

No Of Persons Percentage

6 2 4%

5 20 40%

4 12 24%

3 11 22%

2 4 8%

1 1 2 %

Total 50 100%

Satisfaction with the Appraisal System of the Organization

Interpretation:

As it can be predicted from the graph, organizations have their performance

appraisal. In this figure represented the Response Category with percentage of

person with the number of persons in the organization. It represented in various

categories like in this figure VERY HIGH, RSTHER HIGH, QUITE LOW.

87

TABLE - 4

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR VIEWS REGARDING THE EXTENT OF CLARITY IN COMMUNICATION OF KEY PERFORMANCE AREAS

ResponseCategory

No of Persons Percentage

6 5 10%

5 16 32%

4 15 30%

3 10 20%

2 2 4 %

1 2 4%

Total 50 100%

88

Clarity in communication of key performance Areas

Interpretation: As it can be predicted from the graph, organizations views regarding the extent

of clarity in communication of key performance areas. In this figure represented

the Response Category with percentage of person with the number of persons in

the organization. It represented in various categories like in this figure VERY

HIGH, RSTHER HIGH, QUITE LOW.

89

TABLE – 5

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR VIEWS REGARDING THE EXTENT OF FEEDBACK PERFORMANCE BEFORE THE ANNUAL APPRAISAL

90

Responses No of Persons Percentage

Very high 6 12%

Quite high 15 30%

Rather high 14 28%

Rather low 9 18%

Quite low 1 2%

Very low 5 10%

Total 50 100%

Extent of feedback and guidance provided to Employee before the annual appraisal about their performance

Interpretation:

As it can be predicted from the graph, organizations views regarding the extent of

feedback performance before the annual appraisal. In this figure represented the

Response Category with percentage of person with the number of persons in the

organization. It represented in various categories like in this figure VERY HIGH,

RSTHER HIGH, QUITE LOW.

91

TABLE – 6

CLASSIFICATION OF RESPONDANTS ON THE BASIS OF THEIR VIEWS REGARDING THE EXTENT OF FAIRNESS IN THE CURRENT SYSTEM OF PERFORMANCE APPRAISAL

Responses No of Persions Percentage

Very high 2 4%

Quite high 15 30%

Rather high 21 42%

Rather low 8 16%

Quite low 4 8%

Very low 0 0%

Total 50 100%

92

Extent of fairness in the current system of Performance Appraisal

Interpretation:

As it can be predicted from the graph, organizations extent of fairness in the

current system of performance appraisal. In this figure represented the Response

Category with percentage of person with the number of persons in the

organization. It represented in various categories like in this figure VERY HIGH,

RSTHER HIGH, QUITE LOW.

93

TABLE – 7

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR VIEWS REGARDING THE EXTENT OF CAPABILITY OF CURRENT APPRAISAL SYSTEM IN FINDING THE AREAS OF IMPROVEMENT IN THEIR PERFORMANCE

Responses No of Persons Percentage Very high 5 10%

Quite high 17 34%

Rather high 17 34%

Rather low 6 12%

Quite low 2 4%

Very low 3 6%

Total 50 100%

94

Capability of current appraisal system in finding the areas of improvement in their performance

Interpretation:

As it can be predicted from the graph, organizations extent the basis of their views regarding the extent of capability of current appraisal system in finding the areas of improvement in their performance. In this figure represented the Response Category with percentage of person with the number of persons in the organization. It represented in various categories like in this figure VERY HIGH, RSTHER HIGH, QUITE LOW.

95

TABLE - 8

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR VIEWS REGARDING THE EXTENT OF CAPABILITY OF CURRENT APPRAISAL SYSTEM TO DISCOVER THEIR POTENTIAL FOR SOULDERING HIGHER RESPONSIBILITIES

Responses No of Persons Percentage Very high 6 12% Quite high 14 28% Rather high 14 28% Rather low 14 28% Quite low 2 4% Very low 0 0% Total 50 100%

Capability of current appraisal system to discover their potential for shouldering higher Responsibilities

Interpretation:

As it can be predicted from the graph organizations Capability of current appraisal system to discover their potential for shouldering higher Responsibilities. In this figure represented the Response Category with percentage of person with the number of persons in the organization. It represented in various categories like in this figure VERY HIGH, RSTHER HIGH, QUITE LOW.

96

TABLE – 9

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR VIEWS REGARDING THE EXTENT OF DISCUSSION AND GUIDANCE FOR THE FUTURE PERFORMANCE ON THE BASIS OF PAST YEAR’S PERFORMANC APPRAISAL

Responses No of Persons

Percentage

Very high 6 12% Quite high 14 28% Rather high 14 28% Rather low 14 28% Quite low 2 4% Very low 0 0% Total 50 100%

Extent of detailed discussion and guidance for future performance on the basis of past year Performance appraisal

This diagram basically represent discussion and guidance of future performance on the behalf of various catogerious like that very high, quite high, rather high, very low in the percentage of no. of persons to high no. of percentages. Its include various categories.

97

TABLE - 10

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF EXTENT OF SATISFACTION DERIVED BY EMPLOYER THROUGH PARTICIPATING IN APPROVAL DISCUSSION WITH THEIR SUPERIORS

Responses No of Persons Percentage Very high 3 6% Quite high 13 26% Rather high 16 32% Rather low 11 22% Quite low 4 8% Very low 3 6% Total 50 100% Extent of satisfaction derived by employee through participating in the appraisal discussion with superiors

Interpretation:

As it can be predicted from the graph organizations extent of satisfaction derived by employee through participating in the appraisal discussion with superiors. In this figure represented the Response Category with percentage of person with the number of persons in the organization. It represented in various categories like in this figure VERY HIGH, RSTHER HIGH, QUITE LOW VERY LOW.

98

SWOT ANALYSIS

ANALYSIS summarizes the internal factor The SWOT of the firm as list of its strength

and weakness and the opportunity and threats it faces from its external environment.

INTERNAL ANALYSIS:

The internal analysis comprehensive evaluation of the internal environment’s potential

strength and weaknesses.

Company image: A closely held company of a Parle product Limited

headquartered at MUMBAI; “PARLE PARIVAR”- a family oriented work culture which

provides flexibility and discretion in ones key resources area.

Company Image: A biscuit and confectioner major in the Indian market, Parle

has a unique position in the heart of million Indian.

Organizational Structure: A flat organizational with minimum overhead,

mainly dependent on direct communication with colleagues and superiors. No succession

policy.

99

CONCLUSION

“Human beings are drawn close to one another by their common

nature but habits and custom keep a part”

There is no doubt that performance appraisal that contributes to the

efficient and effective operation of the staff and their future development.

But the method and administration of performance appraisal programme will

vary from organization to personal and professional development. It is truth

that no work is completed in itself. In fact, completion of on job is actually

the beginning of another job. Likewise, H.R is never ending process. It is

actually for personal development.

At last it is concluded that the company as a whole is a well branded

company. The good will of the company is very high. The company is also

having proper system of communication through inter-coms which helps in

reduction is wastage of time.

The environment (working and cultural) is found very calm and the

employee’s are pleased to work very hard in the corporation to achieve the

desired objective. The company organized the Training and Development

programmes for more knowledge and a lot of chances of promotion.

After the training I got the difference between theoretical knowledge

and practical knowledgee.

In the PBPL all the employee’s are very cooperative. Performance

appraisal is the systematic description of an employee’s job. It provides to

the employee’s try to do their job in a more efficient and effective manner.

100

SUGGESTIONS

1) There should be counseling programmed which will help in motivating

employee’s so that they will not lose their performance.

2) Should make aware about the different types of programme and should

be concluded by the experienced person by seniors.

3) There should not biasness among the employee’s should be clear to

employee’s in written as well as in oral after the assessment.

4) Appraisal system should be flexible enough to adopt the changes

occurred.

5) They can use the customer motivation schemes like sales promotion.

6) They can make changes in their product according to the change in the

taste and preference of customer.

101

Questionnaire Appendix

Executives:

Name: (optional)

Department: (optional)

Designation:

1) Are you aware of the Prevailing system of performance appraisal in your organization?

Yes, to certain extent No

2) In my opinion, the need for performance management system in the organization.

Very high Quite high Rather high

Quite low Very low

3) My satisfaction with the appraisal system is:

Very high Quite high Rather high

Quite low Very low

4) Extent of clarity in communication of the key performance areas.

Very high Quite high Rather high

Quite low Very low

5) Extent of feedback & guidance provided to me before the annual appraisal about performance is:

Very high Quite high Rather high

102

Quite low Very low

6) The extent of unbiased assessment of my performance under the present system is:

Very high Quite high Rather high

Quite low Very low

7) Extent to which the current appraisal system is successful in finding the areas improvement in my performance:

Very high Quite high Rather high

Quite low Very low

8) The extent of effort in discovering my potential for shouldering higher responsibilities through the existing system of appraisal:

Very high Quite high Rather high

Quite low Very low

9) The extent of detailed discussion and guidance for future performance on the basis of past year’s performance appraisal:

Very high Quite high Rather high

Quite low Very low

10) Do the appraisal system helps appraise to gain more insights into their strengths and weakness:

Very high Quite high Rather high

Quite low Very low

Do you have any suggestion to improve the current appraisal system of your organization? If yes, please quote:

103

BIBLIOGRAPHY

These following books, manuals are concerned in making report:

Agarwal, R.D., Dynamics in India, Tata McGraw Hill – Publishing Company, New Delhi, 1977.

Ahmed, Abad, Management and Organization Development, Rachna Prakashan, New Delhi, 1972.

Bass, Barnard, M., and Vaughan, J.A. Training in Industries: The Management of

Learning, Tavistock Publication, London, 1969.

Blake, Robert R., and Jane Mouton, Building a Dynamic Corporation through Grid Organization Development, Addison Wesley, Readings, 1969.

Sites Visited:

www.parleproducts.com www.parleagro.com/

104