8/22/2019 Nidhi Str New
1/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 1
SUMMER TRAINING REPORT
ON
PERFORMANCE APPRAISAL
Submitted in partial fulfillment of the requirements
for
Master of Business Administration (M.B.A)
BY
NIDHI GOSSEL
ENROLMENT NO0121MBA144
BATCH OF 2012-2014
Doon Business School
122Mi,Behind Pharma City, Selaqui, Dehradun-248001,
Uttarakhand
8/22/2019 Nidhi Str New
2/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 2
ACKNOWLEDGEMENT
I express my sincere thanks to my Industry guide, MR. BHARAT BHUSHAN
RATTAN , Deptt. HR
and my Internal guide, MRS. PUSHPA KATARIA,
Deptt. HR for guiding me right path from the inception till the successful completionof
the project.
I sincerely acknowledge them for extending their valuable guidance, support for
literature, critical reviews of project and the report and above all the moral support
they
had provided to me with all stages of this project.
I would also like to thank the supporting staff MS. NEHA SIROHI , MS. BHAWNA
&
MRS. SIMPLE from HR Department, for their help and cooperation throughout the
project.
Student Name : Signature :
Date :
8/22/2019 Nidhi Str New
3/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 3
CERTIFICATE OF ORIGINALITY
I , Enrollment No. of
, am a full-time bona fide student of Master of Business Administration (MBA)
Program of Doon Business School, Dehradun. I hereby certify that this training report
/ project work carried out by me
at
on_____________________ submitted in partial fulfillment of the requirements of
the program is an original work of mine under the guidance of the industry guide
and
internal (faculty) guide and is not based on or
reproduced from any existing work of any other person or on any earlier work
undertaken at any other time or for any other purpose, and has not been submitted
anywhere else at any time.
Students Signature :
Date :
Internal Guides Signature :
Date :
8/22/2019 Nidhi Str New
4/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 4
EXECUTIVE SUMMARY
My Internship at AKUMS DRUGS & PHARMACEUTICALS LTD. was a great
exposure to the industry. After going through my summer internship program , I had
a firsthand experience of how an industry and HR Department works.
INTRODUCTION OF PROJECT
This project is about Performance appraisal system at AKUMS DRUGS AND
PHARMACEUTICALS Ltd. Performance appraisal is a systematic and periodic
process that asses an individual employees job performance and productivity in
relation to certain pre-established criteria and organizational objectives.
PROJECT TITLE
The title of the project is Performance Appraisal and its implementation at AKUMS
DRUGS AND PHARMACEUTICALS Ltd. As the name indicates it is an study of
Performance Appraisal system prevalent in the organization.
ORGANISATION
Akums Drugs & Pharmaceuticals Ltd, Haridwar, (India), is an internationally
recognized WHO-GMP certified and one of the leading contract manufacturing and
has rapidly emerged as the premier integrated pharmaceutical company in India.
Akums Drugs & Pharmaceuticals Ltd. was incorporated on December 19th, 2004. Its
business focuses on the manufacture and marketing of pharmaceutical products and
services to clients across the globe.
The company is one of the largest manufacturers and six state-of-the-
art manufacturing facilities have huge per day capacity to produce formulations in
practically all dosage forms, i.e. Tablets, Capsules, Soft Gels, Dry Syrups, Liquid
Orals, Powder in Sachet, Dry & Liquid Injections, Pre-filled Syringes, Large Volume
Parenterals (up to 100 ml) and Eye / Ear / Nasal Drops in Form Fill & Seal and Three
Piece Packs.
8/22/2019 Nidhi Str New
5/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 5
TABLE OF CONTENTS
S. NO CONTENTS PAGE
NO.
1 Annexure 1 1
2 Acknowledgement 2
3 Certificate of Originality 3
4 Executive Summary 4
5 Contents 5
6 PART - A 6
7 Industry Profile 7
8 Company Profile 13
9 Mckinseys 7S frame work 35
10 SWOT Analysis 38
11 Learning Experience 39
12 PART - B 40
13 Statement Of The Problem 41
15 Objectives of The Study 42
16 Scope Of The Study 43
17 Methodology 4418 Limitations Of The Study 46
19 Project Rationale 47
20 Data Analysis 60
21 Conclusion 68
22 Suggestions 69
23 Bibliography 70
24 Questionnaire 71
8/22/2019 Nidhi Str New
6/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 6
PART - A
8/22/2019 Nidhi Str New
7/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 7
INDUSTRY PROFILE
The pharmaceutical industry develops, produces and
markets drugs orpharmaceuticals licensed for use as medications.[1]Pharmaceutical
companies are allowed to deal in generic orbrand medications and medical devices.
They are subject to a variety of laws and regulations regarding the patenting, testing
and ensuring safety and efficacy and marketing of drugs. The
word pharmaceutical comes from the Greek word pharma.
PHARMACEUTICAL INDUSTRY IN INDIA
The Pharmaceutical industry in India is the world's third-largest in terms of volumeand stands 14th in terms of value.According to Department ofPharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's
pharmaceuticals industry between 2008 and September 2009 was US$21.04 billion.While the domestic market was worth US$12.26 billion. Sale of all types ofmedicines in the country is expected to reacharound US$19.22 billion by 2012.
Exports of pharmaceuticals products from India increased from US$6.23 billion in
200607 to US$8.7 billion in 200809 a combined annual growth rate of 21.25%.According to PricewaterhouseCoopers (PWC) in 2010, India joined among the leagueof top 10 global pharmaceuticals markets in terms of sales by 2020 with valuereaching US$50 billion.Some of the major pharmaceutical firms including SunPharmaceutical, Cadila Healthcare and Piramal Enterprises.
The government started to encourage the growth of drug manufacturing by Indiancompanies in the early 1960s, and with the Patents Act in 1970. However, economicliberalisation in 90s by the former Prime MinisterP.V. Narasimha Rao and the thenFinance Minister, Dr. Manmohan Singh enabled the industry to become what it istoday. This patent act removed composition patents from food and drugs, and though
it kept process patents, these were shortened to a period of five to seven years.The lack of patent protection made the Indian market undesirable to the multinationalcompanies that had dominated the market, and while they streamed out. Indiancompanies carved a niche in both the Indian and world markets with their expertise inreverse-engineering new processes for manufacturing drugs at low costs. Althoughsome of the larger companies have taken baby steps towards drug innovation, theindustry as a whole has been following this business model until the present.
India's biopharmaceutical industry clocked a 17 percent growth with revenues of Rs.137 billion ($3 billion) in the 200910 financial year over the previous fiscal. Bio-
pharma was the biggest contributor generating 60 percent of the industry's growth at
Rs. 88.29 billion, followed by bio-services at Rs. 26.39 billion and bio-agri at Rs.19.36 billion.
http://en.wikipedia.org/wiki/Drughttp://en.wikipedia.org/wiki/Pharmaceuticalhttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Medicationhttp://en.wikipedia.org/wiki/Pharmaceutical_industry#cite_note-1http://en.wikipedia.org/wiki/Pharmaceutical_industry#cite_note-1http://en.wikipedia.org/wiki/Pharmaceutical_industry#cite_note-1http://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Pharmaceuticalhttp://en.wikipedia.org/wiki/Pharmakeiahttp://en.wikipedia.org/wiki/Pharmaceutical_industryhttp://en.wikipedia.org/wiki/Ministry_of_Chemicals_and_Fertilizers_(India)http://en.wikipedia.org/wiki/PricewaterhouseCoopershttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Cadila_Healthcarehttp://en.wikipedia.org/wiki/Piramal_Enterprises_Ltdhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/P.V._Narasimha_Raohttp://en.wikipedia.org/wiki/Dr._Manmohan_Singhhttp://en.wikipedia.org/wiki/Biopharmaceuticalhttp://en.wikipedia.org/wiki/Biopharmaceuticalhttp://en.wikipedia.org/wiki/Dr._Manmohan_Singhhttp://en.wikipedia.org/wiki/P.V._Narasimha_Raohttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Piramal_Enterprises_Ltdhttp://en.wikipedia.org/wiki/Cadila_Healthcarehttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/Sun_Pharmaceuticalhttp://en.wikipedia.org/wiki/PricewaterhouseCoopershttp://en.wikipedia.org/wiki/Ministry_of_Chemicals_and_Fertilizers_(India)http://en.wikipedia.org/wiki/Pharmaceutical_industryhttp://en.wikipedia.org/wiki/Pharmakeiahttp://en.wikipedia.org/wiki/Pharmaceuticalhttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Patenthttp://en.wikipedia.org/wiki/Legal_drug_tradehttp://en.wikipedia.org/wiki/Brandhttp://en.wikipedia.org/wiki/Generic_drughttp://en.wikipedia.org/wiki/Pharmaceutical_industry#cite_note-1http://en.wikipedia.org/wiki/Medicationhttp://en.wikipedia.org/wiki/Licensehttp://en.wikipedia.org/wiki/Pharmaceuticalhttp://en.wikipedia.org/wiki/Drug8/22/2019 Nidhi Str New
8/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 8
Pharmaceutical industry today
The number of purely Indian pharma companies is fairly low. Indian pharma industryis mainly operated as well as controlled by dominant foreign companies havingsubsidiaries in India due to availability of cheap labour in India at lowest cost. In2002, over 20,000 registered drug manufacturers in India sold $9 billion worth offormulations and bulk drugs. 85% of these formulations were sold in India while over
60% of the bulk drugs were exported, mostly to the United States and Russia. Mostof the players in the market are small-to-medium enterprises; 250 of the largestcompanies control 70% of the Indian market.Thanks to the 1970 Patent Act,
multinationals represent only 35% of the market, down from 70% thirty years ago.
Most pharma companies operating in India, even the multinationals, employ Indiansalmost exclusively from the lowest ranks to high level management. Mirroring thesocial structure, firms are very hierarchical. Homegrown pharmaceuticals, like manyother businesses in India, are often a mix of public and private enterprise. Althoughmany of these companies are publicly owned, leadership passes from father to son and
the founding family holds a majority share.
In terms of the global market, India currently holds a modest 12% share, but it hasbeen growing at approximately 10% per year. India gained its foothold on the globalscene with its innovatively engineered generic drugs and active pharmaceuticalingredients (API), and it is now seeking to become a major player in outsourcedclinical research as well as contract manufacturing and research. There are 74 USFDA-approved manufacturing facilities in India, more than in any other countryoutside the U.S, and in 2005, almost 20% of all Abbreviated New Drug Applications(ANDA) to the FDA are expected to be filed by Indian companies. Growth in otherfields notwithstanding, generics are still a large part of the picture. London research
company Global Insight estimates that Indias share of the global generics market willhave risen from 4% to 33% by 2007. The Indian pharmaceutical industry has becomethe third largest producer in the world and is poised to grow into an industry of $20
billion in 2015 from thecurrent turnover of $12 billion.
8/22/2019 Nidhi Str New
9/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 9
Patent
As it expands its core business, the industry is being forced to adapt its businessmodel to recent changes in the operating environment. The first and most significantchange was the 1 January 2005 enactment of an amendment to Indias patent law thatreinstated product patents for the first time since 1972. The legislation took effect onthe deadline set by the WTOs Trade-Related Aspects of Intellectual Property Rights(TRIPS) agreement, which mandated patent protection on both products and
processes for a period of 20 years. Under this new law, India will be forced torecognise not only new patents but also any patents filed after 1 January 1995. Indiancompanies achieved their status in the domestic market by breaking these product
patents, and it is estimated that within the next few years, they will lose $650 millionof the local generics market to patent-holders.
In the domestic market, this new patent legislation has resulted in fairly clearsegmentation. The multinationals narrowed their focus onto high-end patients whomake up only 12% of the market, taking advantage of their newly bestowed patent
protection. Meanwhile, Indian firms have chosen to take their existing productportfolios and target semi-urban and rural populations.
Product development
Indian companies are also starting to adapt their product development processes to thenew environment. For years, firms have made their ways into the global market byresearching generic competitors to patented drugs and following up with litigation to
challenge the patent. This approach remains untouched by the new patent regime andlooks to increase in the future. However, those that can afford it have set their sightson an even higher goal: new molecule discovery. Although the initial investment ishuge, companies are lured by the promise of hefty profit margins and thas a legitimatecompetitor in the global industry. Local firms have slowly been investing moremoney into their R&D programs or have formed alliances to tap into theseopportunities.
Small and medium enterprises
As promising as the future is for a whole, the outlook for small and mediumenterprises (SME) is not as bright. The excise structure changed so that companiesnow have to pay a 16% tax on the maximum retail price (MRP) of their products, asopposed to on the ex-factory price. Consequently, larger companies are cutting backon outsourcing and what business is left is shifting to companies with facilities in thefour tax-free statesHimachal Pradesh, Jammu & Kashmir, Uttaranchal andJharkhand. Consequently a large number of pharmaceutical manufacturers shiftedtheir plant to these states, as it became almost impossible to continue operating innon-tax free zones. But in a matter of a couple of years the excise duty was revised ontwo occasions, first it was reduced to 8% and then to 4%. As a result the benefits ofshifting to a tax free zone was negated. This resulted in, factories in the tax free zones,
to start up third party manufacturing. Under this these factories produced goods underthe brand names of other parties on job work basis.
http://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterpriseshttp://en.wikipedia.org/wiki/Small_and_medium_enterprises8/22/2019 Nidhi Str New
10/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 10
As SMEs wrestled with the tax structure, they were also scrambling to meet the 1 Julydeadline for compliance with the revised Schedule M Good Manufacturing Practices(GMP). While this should be beneficial to consumers and the industry at large, SMEshave been finding it difficult to find the funds to upgrade their manufacturing plants,resulting in the closure of many facilities. Others invested the money to bring their
facilities to compliance, but these operations were located in non-tax-free states,making it difficult to compete in the wake of the new excise tax.
Challenges
Even after the increased investment, market leaders such as Ranbaxy and Dr. ReddysLaboratories spent only 510% of their revenues on R&D, lagging behind Western
pharmaceuticals like Pfizer, whose research budget last year was greater than thecombined revenues of the entire Indian pharmaceutical industry. This disparity is toogreat to be explained by cost differentials, and it comes when advances in genomics
have made research equipment more expensive than ever. The drug discovery processis further hindered by a dearth of qualified molecular biologists. Due to the disconnectbetween curriculum and industry, pharmas in India also lack the academiccollaboration that is crucial to drug development in the West and so far.
Relationship between pharmaceuticals and biotechnology
Unlike in other countries, the difference between biotechnology and pharmaceuticalsremains fairly defined in India. Bio-tech there still plays the role of pharmas littlesister, but many outsiders have high expectations for the future. India accounted for2% of the $41 billion global biotech market and in 2003 was ranked 3rd in the Asia-Pacific region and 11th in the world in number of biotechs.[45] In 2004-5, the Indian
biotech industry saw its revenues grow 37% to $1.1 billion. The Indian biotechmarket is dominated by biopharmaceuticals; 75% of 20045 revenues came from
biopharmaceuticals, which saw 30% growth last year. Of the revenues frombiopharmaceuticals, vaccines led the way, comprising 47% of sales. Biologics andlarge-molecule drugs tend to be more expensive than small-molecule drugs, and Indiahopes to sweep the market in biogenerics and contract manufacturing as drugs go off
patent and Indian companies upgrade their manufacturing capabilities.
Most companies in the biotech sector are extremely small, with only two firmsbreaking 100 million dollars in revenues. At last count there were 265 firms registered
in India, over 75% of which were incorporated in the last five years.The newness ofthe companies explains the industrys high consolidation in both physical andfinancial terms. Almost 50% of all biotechs are in or around Bangalore, and the toopten companies capture 47% of the market. The top five companies were homegrown;Indian firms account for 62% of the biopharma sector and 52% of the industry as awhole. The Association of Biotechnology-Led Enterprises (ABLE) is aiming to growthe industry to $5 billion in revenues generated by 1 million employees by 2009, anddata from the Confederation of Indian Industry (CII) seem to suggest that it is
possible.
8/22/2019 Nidhi Str New
11/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 11
Comparison with the US
The Indian biotech sector parallels that of the US in many ways. Both are filled withsmall start-ups while the majority of the market is controlled by a few powerfulcompanies. Both are dependent upon government grants and venture capitalists forfunding because neither will be commercially viable for years. Pharmaceuticalcompanies in both countries have recognised the potential effect that biotechnologycould have on their pipelines and have responded by either investing in existing start-ups or venturing into the field themselves.In both India and the US, as well as in muchof the globe, biotech is seen as a hot field with a lot of growth potential.
Relationship with IT
Many analysts have observed that the hype around the biotech sector mirrors that ofthe IT sector. Biotech colleges have been popping up around the country eager toservice the pools of students that want to take advantage of a growing industry. The
International Finance Commission, the private investment arm of the World Bank,called India the "centerpiece of IFCs global biotech strategy." Of the $110 millioninvested in 14 biotech projects investment globally, the IFC has given $43 million to4 projects in India. According to Dr. Manju Sharma, former director of theDepartment of Biotechnology, the biotech industry could become the "single largestsector for employment of skilled human resource in the years to come. British PrimeMinister Tony Blair was similarly impressed, citing the success of Indias biotechindustry as the reason for his own countrys own biotech opportunities. Malaysia isalso looking to India as an example for growing its own biotech industry.
Government support
The Indian government has been very supportive. It established the Department ofBiotechnology in 1986 under the Ministry of Science and Technology.[47] Sincethen, there have been a number of dispensations offered by both the centralgovernment and various states to encourage the growth of the industry. Indiasscience minister launched a program that provides tax incentives and grants for
biotech start-ups and firms seeking to expand and establishes the Biotechnology ParksSociety of India to support ten biotech parks by 2010. Previously limited to rodents,animal testing was expanded to include large animals as part of the ministersinitiative.[10] States have started to vie with one another for biotech business, and
they are offering such goodies as exemption from VAT and other fees, financialassistance with patents and subsidies on everything ranging from investment to landto utilities.
8/22/2019 Nidhi Str New
12/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 12
Foreign investment
The government has also taken steps to encourage foreign investment in its biotechsector. An initiative passed earlier this year allowed 100% foreign direct investmentwithout compulsory licensing from the government. In April, a delegation headed bythe Kapil Sibal, the minister of science and technology and ocean development,visited five cities in the US to encourage investment in India, with special emphasison biotech. Just two months later, Sibal returned to the US to unveil Indias biotechgrowth strategy at the BIO2005 conference in Philadelphia. 100%of FDI is allowed inIndia.
Challenges
The biotech sector faces some major challenges in its quest for growth. Chief amongthem is a lack of funding, particularly for firms that are just starting out. The mostlikely sources of funds are government grants and venture capital, which is a
relatively young industry in India. Government grants are difficult to secure, and dueto the expensive and uncertain nature of biotech research, venture capitalists arereluctant to invest in firms that have not yet developed a commercially viable product.
The government has addressed the problem of educated but unqualified candidates inits Draft National Biotech Development Strategy. This plan included a proposal tocreate a National Task Force that would work with the biotech industry to revise thecurriculum for undergraduate and graduate study in life sciences and biotechnology.The governments strategy also stated intentions to increase the number of PhDFellowships awarded by the Department of Biotechnology to 200 per year. Thesehuman resources will be further leveraged with a "Bio-Edu-Grid" that will knit
together the resources of the academic and scientific industrial communities, much asthey are in the US.
http://en.wikipedia.org/wiki/Industrial_licensing_in_Indiahttp://en.wikipedia.org/wiki/Industrial_licensing_in_India8/22/2019 Nidhi Str New
13/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 13
COMPANY PROFILE
( AKUMS DRUGS & PHARMACEUTICALS LTD)
BACKGROUND AND INCEPTION OF THE COMPANY
Akums Drugs & Pharmaceuticals Ltd. was incorporated on December 19th, 2004.
This decision of the Company was historic in more ways than one. It was to mark the
beginning of a long and eventful journey into Pharmaceutical Business. Over the
years Akums has evolved from a manufacturer of few products into a fully integrated
pharmaceutical company. Today, they leverage a formidable combination of
manufacturing technologies and research skills to develop affordable and unmet
medical needs.
2004
Akums began operations in Haridwar with Beta lactum /General blockwith
products like tablets, hard gelatin capsules, dry syrups & liquid orals. Year 1 turnover
: Rs.10 million. Within a year, the marketing effort expands to cover all the states ofIndia. A compact manufacturing facility for tablets/capsules was set up at Haridwar.
2007
Akums Plant II & III were set up in Haridwar that produce medicines in the form of
liquid orals and jellies (Plant-II) and liquid and dry injections, ear/eye /nasal drops.
2010
Akums started its IV & V Plant in the year 2010 with Plant IV producing wide range
of Hormonal Preparations in oral (solid & Liquid) and Injectables forms and Plant V
producing wide range of skin ointments & cosmetic preparations.
Akums first subsidiary MAXCURE was also setup in 2010 that manufacturesAyurvedic Nutraceutical & Food supplements for top Pharma companies of India.
8/22/2019 Nidhi Str New
14/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 14
BUSINESS MODEL OF THE COMPANY
HISTORY AND FACTS
Founded 19th December 2004
Headquarters304, Mohan Place, LSC, Block-C, Saraswati
Vihar, New Delhi, Delhi - 110 034, India
8/22/2019 Nidhi Str New
15/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 15
Industry Pharmaceutical
Business Type Manufacturer & Exporters
Ownership Type Public limited Company
Company Board
Chairman &
MDMr. D.C Jain
Promoter
directors
Mr. Sanjeev
Jain
Mr. Sandeep
Jain
2011 Revenue 6.5 billion INR (approx.)
Product Available Area Over 25 countries
Product Range 1100 products (approx.)
Employees 5,500 (2011)
Manufacturing Capacity 22 Billion
Subsidiary Maxcure Ltd.
Website www.akums.in
NATURE OF BUSINESS
Pharmaceutical company based in India.
VISION & MISSION
8/22/2019 Nidhi Str New
16/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 16
VISION : Our Vision is to become an unsurpassed pharmaceutical manufacturing
company, leading the way to a healthier world. Our Vision is reflected in every
department of our organization as we desire to conquer the pharmaceutical domain
globally.
MISSION : To revolutionize the Global Health Care system by providing superior
quality products for ultimate customer satisfaction.
PRODUCTS SERVICE PROFILE
Pharmaceutical Tablets
We hold expertise in successfully offering in the Indian markets around forty different
types of pharmaceutical tablets that are carefully formulated to fight diseases as well
as keep people healthy. These tablets are made available in tamper proof packaging so
as to provide in these longer shelf life.
Pharmaceutical Capsules
We offer extensive research based Pharmaceutical Capsules that are highly effective
as well as accurate in composition. Safe to consume, these Capsules are offered by us
in appropriate packaging so as to maintain their properties for a long period of time.
Its tamper proof packaging also ensures these remain safe as well as deliver higher
shelf life.
Soft Gelatin Capsules
We offer Soft Gelatin Capsules for meeting the treatment needs of various ailments.These Soft gelatin capsules consist of filling that contain dissolved/suspected active
substance, and of a one-piece shell. Owing to the hermetic seal, filling ingredients are
protected against any harmful influence of environment.
Dry Syrups
We also hold expertise in the manufacturing of Dry Powder Syrups. These are very
useful in meeting the successful treatment needs of various ailments. These syrups
8/22/2019 Nidhi Str New
17/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 17
can be orally consumed and are clinically tested so as to ensure these have no side
effect.
Prefilled Syringes
We are engaged in meeting the manufacturing demands of Prefilled syringes. With
the rapid rise in technology in the medical field, these needles are designed to cater to
the needs of ill people. We offer these in tamper proof quality packaging so as to
ensure their safety as well as longer shelf life.
Hormonal Preparations
Recognized by W.H.O G.M.P and 14001:2004 specifications, Akums specialize inproducing and distributing hormonal preparations. Our company holds GMP plant
and top-ranking pharmaceutical equipments offering the best quality preparations and
serving healthier future of brightness to the world.
Eye & Ear Drops
We hold expertise in offering Eye, Ear, Nasal Drops in FFS & 3-pc Packs. A result of
continuous R&D done at our unit, these drops manufactured by us are carefully
formulated and used for curing eye as well as other infections/ related ailments. Our
expertise lies in offering these in tamper proof quality packaging.
Liquid Orals
We offer high range of oral liquid section, which caters to the needs of the
pharmaceutical industry. The dosage is formulated using high quality ingredients and
technologically advanced machines. Our range is highly effective and renders good
results and being the packing done in safe and hygienic conditions it ensures higheffective and enhanced shelf life.
Creams & Ointments
We offer customers Creams & Ointments that help in providing velvety smooth
texture that improves skin firmness, elasticity, minimizes wrinkles as well as tightens
the skin. Featuring a perfect blend of skin conditioning natural oil, vitamins &
essential nutrients, these ointments helps in reducing as well as in preventing fine andexpression lines.
8/22/2019 Nidhi Str New
18/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 18
Ayurvedic Products
We are manufacturing the Traditional medicines in the traditional way of processing.
The company has played a pioneering role in re-establishing ancient knowledge withmodern research and manufacturing techniques. And provide its gentle healing touch
to millions in the world. We constructed & follow-up W.H.O G.M.P specifications.
The processing & Packing of all the products as per C.G.M.P regulation, Akums is
committed to bring Ayurveda as the mainstream health management system.
Herbal Nutraceuticals
We bring to our customers a range of Herbal Nutraceuticals that are manufactured
using premium grade raw material. Available in tamper proof packaging, these are
widely appreciated for their effectiveness, purity as well as safe usage.
8/22/2019 Nidhi Str New
19/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 19
MANUFACTURING RANGE
8/22/2019 Nidhi Str New
20/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 20
8/22/2019 Nidhi Str New
21/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 21
AREA OF OPERATIONS : GLOBAL / NATIONAL /
REGIONAL
Akums has ambitious plans to boost its overseas business in a big way.
Akums has pierced into Export market and has made its presence in countries namely;
Libya, China, Uganda, Nigeria, Ghana, Belarus, Aman, Iraq, Dubai, Korea, Hong
Kong, Philippines, Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan, Ukraine,
Vietnam, Cambodia, Kenya, Singapore, Cuba, Venezuela ,Yemen & Cote Dlviore.
Akums has ambitious plans to boost its overseas business in a big way. Akums has
entered into Various Business collaboration agreement with companies outside India,Focusing on building Global Foot Prints through channel partners.
Company has plans to make its presence felt through its Quality Products across the
Globe. Akums is looking at verticals; aiming to acquire a Pharma Company in Latin
America and/or U.K. Strategic Alliance with ELIS PHARMACEUTICALS Ltd., a
British virgin Island company for export of Pharmaceuticals Formulations globally
and to set up a pharmaceutical unit in Dubai, UAE.
CUSTOMERS BASE
Akums units have been successfully audited and approved by the M.O.H.
Departments of Belarus, Libya, Cuba and by the QA/QC personnel of foreign
companies, namely; Ful-Ford(U.S.A.), Abbot (Chicago), Med-Interplast (Belarus),
Alwatan(Libya), United Laboratories (Philippines), Kalbe International(Indonesia),
Ananta(Ukraine), Alter-ego(Ukraine), Coral Med (Russia).
8/22/2019 Nidhi Str New
22/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 22
SOME ASSOCIATES
8/22/2019 Nidhi Str New
23/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 23
OWNERSHIP PATTERN
SHARES of the company are distributed among only three members-
Mr. D.C.Jain (Chairman)
Mr. Sandeep Jain (Director)
Mr. Sanjeev Jain (Director)
COMPETITORS INFORMATION
Other Pharmaceutical companiessome examples are
Apco pharma Ltd. , Arogya formulation pvt. Ltd. , Custodian pharma private ltd. ,
Divine pharmaceuticals pvt. Ltd.
8/22/2019 Nidhi Str New
24/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 24
INFRASTRUCTURAL ACTIVITIES
Akums six independent State-of-the-art manufacturing facilities are having modern &
sophisticated manufacturing facilities and are driven by best industry practices to
provide the highest quality of products to a range of leading customers in the
pharmaceuticals and Health care sectors. The manufacturing and delivery of products
are driven by customer specific requirements, Legislative standards of the
Governments of India and other countries, in adherence to pharmacopoeia standards
as per the parameters defined by drug master files, other regulatory bodies across the
globe.
Akums has Ultra modern & sophisticated machineries including 60 packaging lines 5
ALU-ALU, 2 AF150,RMGs, 4 Fluid Bed Processors, Auto-Coaters, 2 FFS, 6
Tunnels, Sophisticated R & D, F & D and microbiology laboratories equipped with
latest instruments, 45 HPLCs, 2 FTIRs, GC,TOC, DG Sets, 5,000 KVA water
systems, SCADA, Hot & Cold Loop, 450- AHUs etc.
After setting up of the manufacturing units, machines were added from year to year.
As per advice of the internal auditors, the installed capacities of the units were revised
based on the additions made from timeto time.
The installed capacities have been certified by Chartered Engineers, Secretariat ofIndustrial Approvals / District Industrial Centers, Excise Dept. & Drugs Departmentof Uttarakhand.
Managing our environmental impact is a key aspect of being a responsible business.
The medicines we make require the use of valuable resources, including energy, water
and raw materials. We know that the way we operate our business today can have a
long-lasting impact. Akums takes a holistic approach to understanding and managing
our environmental impacts across the product life cycle. To operate most sustainably,
we are committed to conducting our business in an environmentally, socially and
financially responsible manner.
Safeguarding Employees
Employee health and safety is our first priority. We maintain an integrated program of
employee consultation, workplace inspections and training across all areas of our
business. Our approach is to promote a strong safety culture, one that empowers all ofour employees to report and address safety issues.
8/22/2019 Nidhi Str New
25/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 25
Health & Safety
Placing our employees health and safety among our highest priorities is consistent
with the Akums value of respect for people. Our employees are our greatest asset, andwe want them to operate in the safest environment possible. Our health and safety
programs are tailored to each of our business areas, including marketing,
manufacturing, research and development, and administrative services. Successful
injury prevention requires every employee to be cautious about keeping himself or
herself and others safe.
As one of the Indias largest providers of medicines, we strive to make peoples lives
betterand we want the same for our own employees. We want our employees to be
healthy and productive for the work they do at Akums and in their lives outside of the
workplace.
8/22/2019 Nidhi Str New
26/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 26
ACHIEVEMENTS / AWARDS
National Award 2010 by Govt. of India for Excellence in Product Quality
National Award 2010 by Govt. of India for Outstanding Entrepreneurship
Support & Encouragement Cognizance By IIT Roorkee
Corporate Excellence Award By Amity
Largest manufacturer of Best Quality Pharmaceuticals formulation Award By
FOPE
Business Partner of Choice Award By Primal Healthcare Ltd.
Most Valued Customer Awards By ICICI
Udyog Ratan Awards By IME
REGULATORY ACCREDITATIONS
At Akums, we strongly believe that Quality is the way ahead and there is no
substitute for it. So we leave no stone unturned to ensure that every product
that Akums manufacture adheres to the set quality control demands in any stage of its
production and distribution.
Our dedicated efforts are visible in the number of plants attaining world -wide
regulatory accreditations.
Betalactam Facility & Cephalosporin FacilitySolid Oral Dosage Forms
WHO GMP Certificate, ISO 14001:2004, QMSHACCP, MOHLibya, MOH
Ivory Coast, MOHYemen, Ministry of Health and NutritionSri Lanka, Food and
Drugs BoardGhana
8/22/2019 Nidhi Str New
27/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 27
Liquid Oral Dosage Forms
WHO GMP Certificate, ISO 14001:2004,MOHLibya, MOHIvory Coast, MOH
Yemen, Food and Drugs BoardGhana
Injectable Facility
ANVISABrazil, WHO GMP Certificate (LVP), WHO GMP Certificate (SVP), ISO
14001:2004, PPB -Kenya, MOHLibya, NDAUganda, DDANepal, MOH
Yemen, MOHIvory Coast , Food and Drugs BoardGhana
Hormonal Facility
WHO GMP Certificate, ISO 14001:2004, MOHIvory Coast, Food and Drugs Board
Ghana
Cosmetic & Dermatology Facility
WHO GMP Certificate, ISO 14001:2004, Food and Drugs BoardGhanna.
Neutraceutical facility
GMP Certificate, ISO 14001:2004, QMS - HACCP, NSF International, Food and
Drugs BoardGhana
8/22/2019 Nidhi Str New
28/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 28
WORK FLOW MODEL
IT HEADEA TO
DIRECTOR
COSTING &BUDGETING
ACCOUNTSR &D
DIRECTOR
CHAIRMAN
PPIC QC
CORP.QC MATERIAL &HANDLING
COMM. PROJECT & ENGG. CORP HR
8/22/2019 Nidhi Str New
29/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 29
FUTURE GROWTH & PROSPECTS
Commitment to Innovation
Innovation across all aspects of our business is the key to our success. Being active in
high technology fields, they must recognize new trends at a very early stage and be
open to unconventional ideas. They see change as an opportunity and complacency as
a threat. They therefore encourage everywhere in the company the curiosity needed to
be open to the world and new ideas.
They have Audacious plans for our social, cultural and environmental impact by 2020
and as we emerge as a Top Indian conglomerate, they aim to achieve many
meaningful objectives.
The Human Footprint: Akums will educate its employee, investors, management and
all stakeholders in the benefits of living, adopting and pursuing sustainable lifestyle in
todays World. They will invest in Green technologies and embrace a responsible and
sustainable approach to sourcing and outsourcing.
Compassion: Akums will provide entire diverse employee base with access to
affordable healthcare and insurance, holistic well being facilities, care, family support
and education. They will also ensure educational and healthcare facilities for our
lower income members in an egalitarian and sustainable manner.
Philanthropy: Akums will invest a percentage of its profits towards the welfare of the
entire country and then the planet through its charitable trusts and organizations.
Thought Leadership and Mentoring : Akums will give back to the community it lives
in by providing free mentorship and entrepreneurial assistance to all citizens who
wish to better their lives.
Diversity: Like all Indian companies we are always struggling to ensure our
workplace is fair and just and looks after women, minorities and the physically
challenged. It is our belief that a diverse family makes for a richer family.
8/22/2019 Nidhi Str New
30/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 30
MCKINSEYS 7S FRAMEWORK
Strategy
Structure
Systems
Style
Staff
Skills
Shared Values/ Super ordinate Goals
The Hard Ss
The hard elements are factual and easy to identify. They can be found in strategy
statements, corporate plans, organization charts, and other documentation.
The Soft Ss
The soft elements are difficult to describe since they are continuously developing and
changing. They are highly determined by the people at work in the organization.
8/22/2019 Nidhi Str New
31/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 31
7-S ModelThe Hard Ss
Strategy
o
Actions a company plans in response to or in anticipation of changes inits external environment
provide Cheapest product than other companies
provide quality product
committed with their associates
Structure
o Basis for specialization and coordination, influenced primarily by
strategy and by organization size and diversity
Systemo Formal and informal procedures that support the strategy and structure
CHAIRMAN
DIRECTOR
EA TO IT HEAD R & D ACCOUNTS COSTING & QC
CORP. MATERIAL &
HANDLING
COMM. PROJ. & ENGG. CORP. HR
8/22/2019 Nidhi Str New
32/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 32
7-S ModelThe Soft Ss
Style / Culture
The culture of the organization, consisting of
o Organizational culture: the dominant values, beliefs and norms which
develop over time and become relatively enduring features of
organization life
o Management style: what managers do rather than what they say (where
they spend their time and attention, what they allow, what they reward,
etc.)
Staff
Total workforce3000 people
Skills
Communication skills
Leadership skills
Motivation skills
Marketing skills
Shared values
8/22/2019 Nidhi Str New
33/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 33
SWOT ANALYSIS
SWOT analysis refers to analysis of strength, weakness, opportunities and threats
present in the environment for the company.
STRENGTHS :
Experience in the manufacture and supply of pharmaceuticals.
Highly Integrated portfolio of products for the pharmaceuticals and healthcare
sectors.
Customer base across the globe including several blue chip organizations. One of the largest manufacturer/exporter of highest caliber of professionals in
scientists, engineers, lab technicians, production heads and functional
managers.
Multicultural and multidiscipline workforce that is motivated towards the
highest standards of customer satisfaction.
Strict adherence to Good Manufacturing Practices (GMP).
Driven by quality, integrity and core values.
WEAKNESSES:
Lack of unawareness in employees regarding company policies.
Low level of motivation.
OPPORTUNITIES:
Introduction of new medicines.
Manufacturing new forms of Drugs.
Entering into international market.
National or International collaborations.
THREATS:
Increasing competition.
Existing pharmaceutical companies.
8/22/2019 Nidhi Str New
34/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 34
LEARNING EXPERIENCE
At the time of my internship at Akums, I learned behavioral skills, ethics of working
in a company, how to manage contact based workers, analysis of performance
appraisal, gained knowledge about performance appraisal system at Akums.
8/22/2019 Nidhi Str New
35/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 35
PART-B
8/22/2019 Nidhi Str New
36/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 36
GENERAL INTRODUCTION
STATEMENT OF THE PROBLEM
Study of performance appraisal system and its implementation at
Akums Drugs and Pharmaceuticals Ltd. (Haridwar).
8/22/2019 Nidhi Str New
37/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 37
OBJECTIVE OF THE STUDY
(Performance Appraisal and its Implementation)
Main objectives of the study :
To study the current performance appraisal system of the organization and
identify the gaps between the current state and desired state.
To find out the performance dimensions relevant to the strategic plan of the
company. To identify the potential areas for the scope of improvement in the current
system and thereby in the organizational performance.
To study the implications of an effective performance appraisal system on the
productivity of employees and the organizational performance as a whole.
To identify the key performance indicators and critical success factors for
achieving organizational excellence.
8/22/2019 Nidhi Str New
38/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 38
SCOPE OF THE STUDY
The Scope of this study is described as follows :
The study was conducted on employees from each department of the
organization.
There were samples taken from each department.
The study was also conducted on contract based workers.
8/22/2019 Nidhi Str New
39/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 39
RESEARCH METHODOLOGY
SAMPLING PLAN
Sample Size : 90 Employees
Sample Area : Akums Drugs and Pharmaceuticals Ltd.
Plant1, Ranipur,
Haridwar
Duration : 1.5 months
DATA COLLECTION
Data Sources :
(a) Primary data through Questionnaire
(b) Secondary data through Internet
(c) Personal Interaction
DATA PRESENTATION AND ANALYSIS(b) Pie Diagrams
8/22/2019 Nidhi Str New
40/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 40
LIMITATIONS OF THE STUDY
A few limitations and constraints came in way of conducting the present study, under
which the researcher had to work are as follows:
a) Although all attempts were made to make this an objective study, biases on thepart of respondents might have resulted in some subjectivity.
b) Though, no effort was spared to make the study most accurate and useful, thesample Size selected for the same may not be the true representative of theCompany, resulting in biased results.
c) This being the maiden experience of the researcher of conducting study suchas this, the possibility of better results, using deeper statistical techniques inanalyzing and interpreting data may not be ruled out.
8/22/2019 Nidhi Str New
41/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 41
PROJECT RATIONALE
This study talks about a very important policy and factor of HRD i.e; performanceappraisal.
Importance of performance appraisal, in terms of motivating employees and thusimproving quality of work, would be clear from following description.
INTRODUCTION TO PERFORMANCEAPPRAISAL
MEANING :
Performance Appraisal is the systematic evaluation of the performance of employees
and to understand the abilities of a person for further growth and development.Performance appraisal is generally done in systematic ways which are as follows:
1. The supervisors measure the pay of employees and compare it with targets andplans.
2. The supervisor analyses the factors behind work performances of employees.3. The employers are in position to guide the employees for a better
performance.
OBJECTIVES:
Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wagestructure, salaries raises, etc.
2. To identify the strengths and weaknesses of employees to place right menon right job.
3. To maintain and assess the potential present in a person for further growthand development.
4.
To provide a feedback to employees regarding their performance andrelated status.5. To provide a feedback to employees regarding their performance and
related status.6. It serves as a basis for influencing working habits of the employees.7. To review and retain the promotional and other training programmes.
8/22/2019 Nidhi Str New
42/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 42
ADVANTAGES :
It is said that performance appraisal is an investment for the company which can bejustified by following advantages:
1. Promotion: Performance Appraisal helps the supervisors to chalk out thepromotion programs for efficient employees. In this regards, inefficientworkers can be dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out compensationpackages for employees. Merit rating is possible through performanceappraisal. Performance Appraisal tries to give worth to a performance.Compensation packages which includes bonus, high salary rates, extra
benefits, allowances and pre-requisites are dependent on performance
appraisal. The criteria should be merit rather than seniority.3. Employees Development: The systematic procedure of performance appraisal
helps the supervisors to frame training policies and programs. It helps toanalyze strengths and weaknesses of employees so that new jobs can bedesigned for efficient employees. It also helps in framing future development
programs.4. Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure. Thesupervisors come to know the validity and thereby the strengths andweaknesses of selection procedure. Future changes in selection methods can
be made in this regard.5.
Communication: For an organization, effective communication betweenemployees and employers is very important.
6. Motivation: Performance appraisal serves as a motivation tool. Throughevaluating performance of employees, a persons efficiency can be determinedif the targets are achieved. This very well motivates a person for better job andhelps him to improve his performance in the future.
8/22/2019 Nidhi Str New
43/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 43
TOOLS AND TECHNIQUES:
Following are the tools used by the organizations for Performance Appraisals of their
employees.
1. Ranking2. Paired Comparison3. Forced Distribution4. Confidential Report5. Essay Evaluation6. Critical Incident7. Checklists8. Graphic Rating Scale
9.
BARS10.Forced Choice Method11.MBO12.Field Review Technique13.Performance Test14.360 Degree Feedback
We will be discussing the important performance appraisal tools andtechniques in detail.
1. Ranking Method
The ranking system requires the rater to rank his subordinates on overallperformance. This consists in simply putting a man in a rank order. Under thismethod, the ranking of an employee in a work group is done against that ofanother employee. The relative position of each employee is tested in terms ofhis numerical rank. It may also be done by ranking a person on his job
performance against another member of the competitive group.
Advantages of Ranking Method
a) Employees are ranked according to their performance levels.b) It is easier to rank the best and the worst employee.
Limitations of Ranking Method
a) The whole man is compared with another whole man in thismethod. In practice, it is very difficult to compare individuals
possessing various individual traits.b) This method speaks only of the position where an employee stands in
his group. It does not test anything about how much better or howmuch worse an employee is when compared to another employee.
c) When a large number of employees are working, ranking of
individuals become a difficult issue.
8/22/2019 Nidhi Str New
44/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 44
d) There is no systematic procedure for ranking individuals in theorganization. The ranking system does not eliminate the possibilityof snap judgements.
2. Forced Distribution method
This is a ranking technique where raters are required to allocate a certainpercentage of rates to certain categories (eg: superior, above average, average)or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the number ofcategories and percentage of employees to be allotted to each category are afunction of performance appraisal design and format. The workers ofoutstanding merit may be placed at top 10 percent of the scale, the rest may be
placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair.
Advantages of Forced Distribution
a) This method tends to eliminate raters biasb) By forcing the distribution according to pre-determined percentages,
the problem of making use of different raters with different scales isavoided.
Limitations of Forced Distribution
a) The limitation of using this method in salary administration,however, is that it may lead low morale, low productivity and highabsenteeism.
Employees who feel that they are productive, but find themselves inlower grade(than expected) feel frustrated and exhibit over a periodof time reluctance to work.
3. Critical Incident techniques
Under this method, the manager prepares lists of statements of very effective
and ineffective behaviour of an employee. These critical incidents or eventsrepresent the outstanding or poor behaviour of employees or the job. Themanager maintains logs of each employee, whereby he periodically recordscritical incidents of the workers behaviour. At the end of the rating period,these recorded critical incidents are used in the evaluation of the workers
performance. Example of a good critical incident of a Customer RelationsOfficer is : March 12 - The Officer patiently attended to a customerscomplaint. He was very polite and prompt in attending the customers problem.
Advantages of Critical Incident techniques
a)
This method provides an objective basis for conducting a thoroughdiscussion of an employees performance.
8/22/2019 Nidhi Str New
45/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 45
b) This method avoids repetition bias (most recent incidents are too muchemphasized)
Limitations of Critical Incident techniques
a)
Negative incidents may be more noticeable than positive incidents.b) The supervisors have a tendency to unload a series of complaints about the
incidents during an annual performance review sessions.c) It results in very close supervision which may not be liked by an employee.d) The recording of incidents may be a chore for the manager concerned, who
may be too busy or may forget to do it.
4. Checklists and Weighted Checklists
In this system, a large number of statements that describe a specific job aregiven. Each statement has a weight or scale value attached to it. While ratingan employee the supervisor checks all those statements that most closelydescribe the behavior of the individual under assessment. The rating sheet isthen scored by averaging the weights of all the statements checked by therater. A checklist is constructed for each job by having persons who are quitefamiliar with the jobs. These statements are then categorized by the judges andweights are assigned to the statements in accordance with the value attached
by the judges.
Advantages of Checklists and Weighted Checklists
a) Most frequently used method in evaluation of the employeesperformance.
Limitations of Checklists and Weighted Checklists
a) This method is very expensive and time consumingb) Rater may be biased in distinguishing the positive and negative
questions.c) It becomes difficult for the manager to assemble, analyze and weigh
a number of statements about the employees characteristics,
contributions and behaviors.
5. 360 Degree Feedback
Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is generally used for training and development, ratherthan for pay increases.
Most 360 Degree Feedback system contains several common features. Appropriateparties peers, supervisors, subordinates and customers, for instance complete
survey, questionnaires on an individual. 360 degree feedback is also known as themulti-rater feedback, whereby ratings are not given just by the next manager up in the
8/22/2019 Nidhi Str New
46/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 46
organizational hierarchy, but also by peers and subordinates. Appropriates customerratings are also included, along with the element of self - appraisal. Once gathered in,the assessment from the various quarters are compared with one another and the
results communicated to the manager concerned.
Another technique that is useful for coaching purposes is, of course, MBO. Like thecritical incident method, it focuses on actual behavior and actual results, which can bediscussed objectively and constructively, with little or no need for a supervisor to"play God."
Advantages of 360 Degree Feedback
a. Instead of assuming traits, the MBO method concentrates on actual outcomes.If the employee meets or exceeds the set objectives, then he or she hasdemonstrated an acceptable level of job performance.
b. Employees are judged according to realoutcomes, and not on their potentialfor success, or on someone's subjective opinion of their abilities.
c. The guiding principle of the MBO approach is that direct results can beobserved easily.
d. The MBO method recognizes the fact that it is difficult to neatly dissect all thecomplex and varied elements that go to make up employee performance.
e. MBO advocates claim that the performance of employees cannot be broken upinto so many constituent parts, but to put all the parts together and the
performance may be directly observed and measured.
Disadvantages of 360 degree Feedback
a) This approach can lead to unrealistic expectations about what can and cannotbe reasonably accomplished. Supervisors and subordinates must have verygood "reality checking" skills to use MBO appraisal methods. They will needthese skills during the initial stage of objective setting, and for the purposes ofself-auditing and self-monitoring.
b) Variable objectives may cause employee confusion. It is also possible thatfluid objectives may be distorted to disguise or justify failures in performance.
8/22/2019 Nidhi Str New
47/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 47
RATING ERRORS :
Performance appraisals are subject to a wide variety of inaccuracies and biasesreferred to as 'rating errors'. These errors can seriously affect assessment results.Some of the most common rating errors are :
Leniency or severity
Leniency or severity on the part of the rater makes the assessment subjective.Subjective assessment defeats the very purpose of performance appraisal. Ratings arelenient for the following reasons:
a) The rater may feel that anyone under his or her jurisdiction who israted unfavorably will reflect poorly on his or her own worthiness.
b) He / She may feel that a derogatory rating willbe revealed to the rateto detriment the relations between the rater and the ratee.
c) He / She may rate leniently in order to win promotions for thesubordinates and therefore, indirectly increase his/her hold over him.
Central tendency
This occurs when employees are incorrectly rated near the average or middle of thescale. The attitude of the rater is to play safe. This safe playing attitude stems fromcertain doubts and anxieties, which the raters have been assessing the rates.
Halo error
A halo error takes place when one aspect of an individual's performance influencesthe evaluation of the entire performance of the individual. The halo error occurs whenan employee who works late constantly might be rated high on productivity andquality of output as well as on motivation. Similarly, an attractive or popular
personality might be given a high overall rating. Rating employees separately on eachof the performance measures and encouraging raters to guard against the halo effectare the two ways to reduce the halo effect.
Rater effect
This includes favoritism, stereotyping, and hostility. Extensively high or low score aregiven only to certain individuals or groups based on the rater's attitude towards themand not on actual outcomes or behaviors; sex, age, race and friendship biases areexamples of this type of error.
Primacy and Regency effects
The rater's rating is heavily influenced either by behavior exhibited by the ratee
during his early stage of the review period (primacy) or by the outcomes, or behaviorexhibited by the ratee near the end of the review period (regency). For example, if a
8/22/2019 Nidhi Str New
48/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 48
salesperson captures an important contract/sale just before the completion of theappraisal, the timing of the incident may inflate his or her standing, even though theoverall performance of the sales person may not have been encouraging. One way ofguarding against such an error is to ask the rater to consider the composite
performance of the rate and not to be influenced by one incident or an achievement.
Performance dimension order
Two or more dimensions on a performance instrument follow each other and bothdescribe or rotate to a similar quality. The rater rates the first dimensions accuratelyand then rates the second dimension to the first because of the proximity. If thedimensions had been arranged in a significantly different order, the ratings might have
been different.
Spillover effect
This refers lo allowing past performance appraisal rating lo unjustifiably influencecurrent ratings. Past ratings, good or bad, result in similar rating for current periodalthough the demonstrated behavior docs not deserve the rating, good or bad.
8/22/2019 Nidhi Str New
49/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 49
ROLES IN THE PERFORMANCE APPRAISALMETHOD :
a) Reporting Manager
o Provide feedback to the reviewer / HOD on the employees
behavioral traits indicated in the PMS Policy Manual.o Ensures that employee is aware of the normalization/
performance appraisal process.o Address employee concerns / queries on performance rating, in
consultation with the reviewer.
b) Reviewer (Reporting Managers Reporting Manager)
o Discuss with the reporting managers on the behavioral traits ofall the employees for whom he / she is the reviewer.
o
Where required, independently assess employees for the saidbehavioral traits; such assessments might require collectingdata directly from other relevant employees.
c) HOD (In some cases, a reviewer may not be a HOD)
o Presents the proposed Performance Rating for every employeeof his / her function to the Normalization committee.
o HOD also plays the role of a normalization committee member.
o
Owns the performance rating of every employee in thedepartment.
d) HR Head
o Secretary to the normalization committee.o Assists HODs / Reporting Managers in communicating the
performance rating of all the employees.
e) Normalization Committeeo Decides on the final bell curve for each function in the
respective Business Unit / Circle.
o
Reviews the performance ratings proposed by the HODs,specifically on the upward / downward shift in ratings, toensure an unbiased relative ranking of employees on overall
performance, and thus finalize the performance rating of eachemployee.
8/22/2019 Nidhi Str New
50/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 50
KEY CONCEPTS IN PMS :
In order to understand the Performance Management System at BHARTI, someconcepts need to be explained which play a very important role in using the PMS
successfully. They are:
KRAS (Key Result Areas)
The performance of an employee is largely dependent on the KRA score achievedby the employee during that particular year. Thus, it is necessary to answer a fewbasic questions i.e.
o What are the guidelines for setting the KRAs for an employee?
o How does an employee write down his KRAs for a particularfinancial year?
o KRAs: The Four Perspectives.
o How is the KRA score calculated for an employee on the basis of thetargets sets and targets achieved?
Behavioral Traits
Some ofthe qualitative aspects of an employees performance combined withthe general behavioral traits displayed by the employee during a yearconstitutes his behavior traits. An employee is assigned the rating on the basisof the intensity of the behavior displayed by him. They play a very importantrole in the deciding the final performance rating for an employee as is evencapable of shifting the rating one level upwards/downwards.
Bharti 2010 Leadership Competency Framework
This competency framework is a simple and structured way to describe theelements of behaviors required to perform a role effectively. This frameworkalso tries to assess the performance of an employee objectively.
8/22/2019 Nidhi Str New
51/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 51
PERFORMANCE RATING PROCESS :
The rating process tries to explain the four different types of rating that an employeecan achieve i.e. EC, SC, C and PC. It also explains the criteria, which is considered
for awarding any of these ratings to the employee.
Promotion and Rating guidelines
The promotion and normal distribution guidelines provide the frameworkwithin which the performance appraisal process has to work. It is veryimportant that the HR department pays due attention to these guidelines while
preparing the bell curves for various functions and the consolidated bell curvefor all the functions. These guidelines also help in deciding upon the
promotion cases in company.
EXCEPTIONAL CONTRIBUTOR (EC)
Performs consistently and substantially above expectations in all areas
Achieves a final score greater than or equal to 115%
Consistently delivers on stretch targets
Is proactive
Spots and anticipates problems, implements solutions
Sees and exploits opportunities Delivers ahead of time
Sees the wider picture-impacts across business
Focuses on whats good for the business
Seen as role model by others
Recognized as exceptional by other functions as well
Motivates others to solve problems
Develops others
Provides open and honest feedback
Able to establish and lead cross-functional teams
8/22/2019 Nidhi Str New
52/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 52
SIGNIFICANT CONTRIBUTOR (SC)
Performs above expectations in all areas
Achieves final score between 100-114%
Versatile in his/ her area of operation
Develops creative solutions and require little / minimal supervision
Sets examples for others
Take ownership of own development
Coaches others
Demonstrates business initiative
Is self-motivated
Supportive team player
Leads own team very effectively
Demonstrate functional initiative
8/22/2019 Nidhi Str New
53/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 53
DATA ANALYSIS
1. Are you aware of the purpose of appraisal system?
It is clear from above pie chart that all the employees are aware of the purpose ofperformance appraisal at Akums.
Awareness of the purpose
Yes 100%
No 0%
8/22/2019 Nidhi Str New
54/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 54
2. Are you aware of the technique of P.A. in your organization?
The above pie chart explains that only 84% of the employees are aware of the varioustechniques of performance appraisal at Akums.
Awareness of the technique
Yes 84%
No 16 %
8/22/2019 Nidhi Str New
55/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 55
3. Are you satisfied with the present performance appraisal system?
The above pie chart explains that only 59% of the employees are satisfied with thecurrent appraisal system at Akums.
Satisfaction level of current system
Yes 59%
No 41%
8/22/2019 Nidhi Str New
56/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 56
4. Are you satisfied with the frequency of current P.A. system?
It is clear from the above pie chart that 59% of the employees are satisfied with thefrequency of appraisals in each financial year.
Satisfaction level of frequency of P.A.
Yes 59%
No 41%
8/22/2019 Nidhi Str New
57/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 57
5. What should be the gap between two appraisal periods?
The above pie chart makes it very clear that 25% of the employees feel that appraisal
should be done every three months, 66% feel that appraisal should be done every sixmonths and 9% feel that it should be done yearly.
Desired Gap between two
appraisal periods
Three Months 25%
Six Months 66%
Twelve Months 9%
8/22/2019 Nidhi Str New
58/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 58
6. What is your feeling after every appraisal?
This pie chart explains that 16% of employees feel motivated afterappraisal, 84% feel in-different and 0% feels de-motivated.
Feeling after appraisal
Motivated 16%
Indeffierent 84%
De-motivated 0%
8/22/2019 Nidhi Str New
59/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 59
7. Who should do the appraisal according to you?
The above pie chart explains that 21% employees feel thatappraisal should be done by Superior, 0% feel that It should bedone by Peer, 0% feel that it should be done by Subordinates,22% feel that it should be done by Self, 0% feel that it should
be done by consultant, 57% feel that it should be done by Allof the above mentioned and 0% feel that it should be done bySuperior + Peer.
Desired Appraisee
Superior 21%
Peer 0%
Subordinate 0%
Self 22%
Consultant 0%
All of the above 57%
Superior + Peer 0%
8/22/2019 Nidhi Str New
60/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 60
8. Does appraisal helps in polishing skills and performance?
This pie chart explains that 92% of the employees feel thatappraisal helps in polishing skills and performance, whereas,8% feel opposite and 0% feel that it is somewhat true.
Level of skill and performane
enhancement
Yes 92%
N0 8%
Somewhat 0%
8/22/2019 Nidhi Str New
61/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 61
9. Does personal biasness creeps in during appraisals?
The above pie chart explains that 50% of the employees feel that
personal biasness creeps in during appraisals, while the other 50%feels the opposite,
Biasness level
Yes 50%
No 50%
8/22/2019 Nidhi Str New
62/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 62
10.Appropriate method of performance appraisal according toyou?
According to the above pie chart 21% of the employees feel that RankingMethod is correct for performance appraisal, 8% feels that PairedComparison should be applied, 0% feel that MBO should be applied, 0%feel that Assessment Centre should do the appraisal and rest 71% feel that360 degree appraisal should be applied.
Wanted P.A method
Ranking Method 21%
Paired Comparison 8%Critical Incidents 0%
MBO 0%
Assesment Centre 0%
360 Degree 71%
8/22/2019 Nidhi Str New
63/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 63
11.Does performance appraisal leads to identification of hiddenpotential?
The above pie chart explains that 92% of the employees feel thatperformance appraisal leads to identification of hidden potential, while 8%feel that it is not so.
Level of identification of potential
Yes 92%
No 8%
8/22/2019 Nidhi Str New
64/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 64
12.If given a chance or an opportunity would you like theappraisal system to be reviewed?
The above pie chart explains that 78% of the employees feel that if given achance or an opportunity they would like the appraisal system to bereviewed, while 0% feel the opposite and 22% feels nothing about it.
Wanted review level
Yes 78%No 0%
Can't Say 22%
8/22/2019 Nidhi Str New
65/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 65
13.Would you like to give your suggestions on type ofperformance appraisal system to be enacted during the review?
The above pie chart explains that 92% of the employees would like to givetheir suggestions on type of performance appraisal system to be enactedduring the review, whereas, 8% dont want that.
Participation level
Yes 92%
No 8%
8/22/2019 Nidhi Str New
66/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 66
14.
Is there transparency in the P.A. system of your organization?
The above pie chart explains that 64% of the employees feel that there istransparency in the performance appraisal system at Akums and rest 34%feel that there is no transparency.
Transparency level
Yes 64%
No 36%
8/22/2019 Nidhi Str New
67/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 67
15.Suggestions and views :
According to the above pie chart the suggestions given by employeeswere in reference to review of current performance appraisal system,in which 55% of the employees want the review and 45% dont.
Review of policies
Yes 55%
No 45%
8/22/2019 Nidhi Str New
68/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 68
CONCLUSION
After having analyzed the data, following observations were made :
a) The frequency of performance appraisal in the organization is low.
b) There is no certain continuity of the performance appraisal system.
c) Also, transparency is missing from the process of performance appraisal beingfollowed in the organization.
d) Employees are unaware of the factors which will lead them to increase theirproductivity in order to get an appraisal.
8/22/2019 Nidhi Str New
69/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 69
SUGESSTIONS
Before actually deciding drafting what should be the kind of appraisal thefollowing things should be taken care of :
1. The very concept of performance appraisal should be marketed throughoutthe organization. Unless this is done, people would not accept it, be it howimportant to the organization.
2. To market such a concept, it should not start at bottom, instead it should bestarted by the initiative of the top management. This would help in percolating
down the concept to the advantage of all, which includes the top managementas well as those below them. This means that the top management has to take awelcoming and positive approach towards the change that is intended to be
brought.
3. Further, at the time of confirmation also, the appraisal form should not leadto duplication of any information. Instead, detailed appraisal of the employeeswork must be donewhich must incorporates both the work related as well asthe other personal attributes that are important for work performance.
4. It should be noted that the appraisal form for each job position should be
different as each job has different knowledge and skill requirements. Thereshould not be a common appraisal form for every job position in theorganization.
5. The job and role expected from the employees should be decided well inadvance and that too with the consensus with them.
6. A neutral panel of people should do the appraisal and to avoid subjectivityto a marked extent, objective methods should be employed having quantifiabledata.
7. The time period for conducting the appraisal should be revised, so that theexercise becomes a continuous phenomenon.
8. Transparency into the system should be ensured through the discussionabout the employees performance with the employee concerned andtrying to find out the grey areas so that training can be implemented toimprove on that.
Ideally in the present day scenario, appraisal should be done, taking the viewsof all the concerned parties who have some bearing on the employee. But,since a change in the system is required, it cannot be a drastic one. It ought to
be gradual and a change in the mindset of both the employees and the head isrequired.
8/22/2019 Nidhi Str New
70/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 70
BIBLIOGRAPHY
BOOKS :
a) Human Resource Management (By Wendell L. French)
b) Human Resources Development and Management (ByBiswanath Ghosh)
c) Human Resource Management (By Garry Dessler)
d)
The Global HR Manager (By Pat Joynt andBob Morton)
WEBSITES :
www.akums.comwww.akums.inwww.google.com
http://www.akums.com/http://www.akums.com/http://www.akums.in/http://www.akums.in/http://www.google.com/http://www.google.com/http://www.akums.in/http://www.akums.com/8/22/2019 Nidhi Str New
71/72
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION Page 71
QUESTIONNAIRE
NAME OF EMPLOYEE : DESIGNATION :
1. Are you aware of the purpose of performance appraisal system?
Yes
No
2. Are you aware of the technique of performance appraisal in your organization?
Yes
No
3. Are you satisfied with the present performance appraisal system?
Yes
No
4. Are you satisfied with the frequency of current performance appraisal system?
Yes
No
5. What should be the gap between two appraisal periods?
Three months
Six Months
Twelve Months
6. What is your feeling after every appraisal?
Motivated
Indifferent
De-motivated
7. Who should do the appraisal according to you?
Superior
Peer
Subordinate
Self
Consultant
All of the above
Superior + Peer
8. Does appraisal helps in polishing skills and performance?
Yes
No
Somewhat
9. Does personal biasness creeps in during appraisals?
Yes
No
8/22/2019 Nidhi Str New
72/72
10.Appropriate method of conducting performance appraisal according to you?
Ranking method
Paired comparison
Critical incidents
MBO Assessment centre
360 degree
11.Does performance appraisal leads to identification of hidden potential?
Yes
No
12.If given a chance or an opportunity would you like the appraisal system to be
reviewed?
Yes
No Cant say
13.What according to you should be the appropriate method for
conducting performance appraisal?
Rating the employee on number of traits along with the rangeof performance for each by the supervisor.
For every trait, each subordinate is paired with and comparedto every other Subordinate.
Reviewing employees on the basis of identified specific
examples of good Or poor performance. Setting specific measurable goals with each employee and
periodically reviewing the progress made.
Reviewing performance through case studies, presentations,role playing, etc. for future performance.
Receiving feedback from people whose views are consideredhelpful and relevant including the appraise himself.
14.Is there transparency in the performance appraisal system of yourorganization?
Yes
No15.Suggestions and views :
.
Top Related