Professional Documents
Culture Documents
Project Title
PERFORMANCE APPRAISAL
SYSTEM
&
ITS EFFECTIVENESS IN AN
ORGANIZATION
REPORT SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE
POST GRADUATE DIPLOMA IN MANAGEMENT
(APPROVED BY AICTE)
(2007-2009)
SUBMITTED TO SUBMITTED BY
Mahendra Asati
INJ BUSINESS SCHOOL
GREATER NOIDA
CERTIFICATE
All those employees of Dabur India Ltd deserve special thanks for their
cooperation and help in the collection of necessary and relevant material for
this work.
Also, I do thank and remember my friends for their effort and helping hand.
Every effort has been made to enhance the quality of work. However, I owe the
sole responsibility of the shortcoming, if any, in the study.
_______________________
CONTENTS
Page Nos.
Chapter 1: Introduction
Chapter 2: Objective and Methodology of the Study
Chapter 3: Oraganisation Profile
Chapter 4: Performance Appraisal- Theoretical Review
Chapter 5: Performance Appraisal System in
Dabur India Ltd.
Chapter 6: Analysis and Interpretation of Data
Chapter 7: Conclusion and Suggestions
ANNEXURES
CHAPTER 1
INTRODUCTION
CHAPTER 1
TITLE OF THE PROJECT:
INTRODUCTION
Its roots in the early 20th century can be traced to Taylor's pioneering Time
and Motion studies. But this is not very helpful, for the same may be said
performance, appraisal really dates from the time of the Second World War
Yet in a broader sense, the practice of appraisal is a very ancient art. In the
scale of things historical, it might well lay claim to being the world's second
oldest profession!
There is, says Dulewicz (1989), "... a basic human tendency to make judgments
about those one is working with, as well as about oneself." Appraisal, it seems,
is little chance of ensuring that the judgments made will be lawful, fair,
justification. That is, appraisal was used to decide whether or not the salary or
performance was found to be less than ideal, a cut in pay would follow. On the
other hand, if their performance was better than the supervisor expected, a pay
appraisal. If was felt that a cut in pay, or a rise, should provide the only
well.
Sometimes this basic system succeeded in getting the results that were
For example, early motivational researchers were aware that different people
with roughly equal work abilities could be paid the same amount of money and
important, yes; but they were not the only element that had an impact on
employee performance. It was found that other issues, such as morale and self-
rejected. In the 1950s in the United States, the potential usefulness of appraisal
as tool for motivation and development was gradually recognized. The general
Modern Appraisal
between a subordinate and supervisor, that usually takes the form of a periodic
In many organizations -but not all -appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority
By the same token, appraisal results are used to identify the poorer performers
pay.)
Whether this is an appropriate use of performance appraisal -the assignment
and justification of rewards and penalties -is a very uncertain and contentious
matter.
Controversy, Controversy
appraisal.
(see Derven, 1990, for example). At the other extreme, there are many strong
Between these two extremes lie various schools of belief. While all endorse
the use of performance appraisal, there are many different opinions on how
There are those, for instance, who believe that performance appraisal has
many important employee development uses, but scorn any attempt to link the
process to reward outcomes -such as pay rises and promotions. This group
people would gladly admit their work problems if, at the same time, they
knew that their next pay rise or a much-wanted promotion was riding on an
appraisal result? Very likely, in that situation, many people would deny or
Nor is the desire to distort or deny the truth confined to the person being
relationship. They work together on a daily basis and may, at times, mix
skills is one thing; giving an appraisal result that has the direct effect of
On the other hand, there is a strong rival argument which claims that
which rewards -which are not an unlimited resource -may be openly and fairly
distributed to those most deserving on the basis of merit, effort and results.
There is a critical need for remunerative justice in organizations. Performance
appraisal -whatever its practical flaws -is the only process available to help
achieve fair, decent and consistent reward outcomes. It has also been claimed
that appraises themselves are inclined to believe that appraisal results should
when told this is not the case. Rather than feeling relieved; appraises may
suspect that they are not being told the whole truth, or that the appraisal
Recent research (Bannister & Balkin, 1990) has reported that appraises seem
to have greater acceptance of the appraisal process, and feel more satisfied
with it, when the process is directly linked to rewards. Such findings are a
serious challenge to those who feel that appraisal results and reward outcomes
must be strictly isolated from each other. There is also a group who argues that
with them about their performance, are part of the basic responsibilities of
motivation.
having separate wage and salary reviews, in which merit rises and bonuses are
First, it can be used as a basis for reward allocation. Decision as to who gets
appraised against
1. Absolute standards
2. Relative standards
3. Objectives
PERFORMANCE MANAGEMENT
Since organizations exits to achieve goals, the degree of success that individual
organization effectiveness.
sustained commitment. The cost of failure to provide such feedback may result
commitment by employees, in sum, the myth that the employee know what.
expensive fantasy.
6. Initiate action
THE PURPOSE OF APPRAISING PERFORMANCE
realize and use their full potential in carrying out their firms mission.
identify the areas where development efforts are "' needed to bridge the
gaps thereby serving as vehicles for personal " and career development.
SYSTEM.
subordinates) may see the same individuals job performance very differently.
observe what the employee has done and the condition under which he or she
has done it. By making appraisal system relevant, sensitive and reliable we
all, for it is true that human resources program must have the support of.
those who will use them. Unfortunately, many organizations do not put much
effort into garnering the front end support and participation of those who will
define as clearly as possible the type and level of job behaviour desired of
employees.
making explicit what aspects of job performance they will be evaluated on.
Practicality: This implies that appraisal instruments are easy for managers and
For years, personnel specialists have searched for the 'Perfect; appraisal
method as if it were some kind of miraculous cure for many pitfalls that
work far more emphasis needs to be placed on process issues. Factors such as
a dialogue involving people and data. Both technical and human issues are
The most fundamental requirement for any rater is that he or she has an .
probably the most familiar with the individual's performance and in most jobs
has had the best opportunity to observe actual job performance. Further more,
In some jobs such as outside sales, law enforcement and teaching, the
development. Subordinates know first hand the extent to which the supervisor
Self appraisal: On one hand it improves the rate's motivation and moral, on the
other it tends to be more lenient, less variable and biased. The evidence on the
In industry it is seen that feed back/ input is taken from various sources -Peers,
subordinates, superiors etc. Some companies have gone step ahead in taking
management process.
APPROACHES TO PERFORMANCE MANAGEMENT
Accountabilities i.e,
output
Review performance
against the key
objectives
In this model job expectations are defined in terms of what results have to be
achieved. This model doesn't have a long term focus and can't be used for
performing well when they are productive. Yet productivity itself implies both
achieved. The greater the output for a given input, the more efficient the
greater efficiency.
There are basically three purposes to which performance appraisal can be put.
First, it can be used as a basis for reward allocations. Decisions as to who gets
areas where development efforts are needed. Management needs to spot those
This project aims at studying the system of performance appraisal and its
and indispensable tool for the management as it provide useful information for
The population covered for the present study consisted of employee belonging
to supervisory and the level above. For the purpose of this study, survey
covered the employee of DABUR INDIA LTD. falling under supervisor and
and above.
3. Methodology of the project
The project work has been carried out in three stages, a structured
finalize. During the second stage, the questionnaire was administered to the
employees at Dabur India Ltd. by contacting them. The work relating to data
entry compilation, data analysis and report writing constituted the third stage.
Interview index was also used at some places to get information on the project
subject.
The Questionnaire
Keeping in view the objective of the study, questionnaire was designed and
tested on few employees. After getting the proper response and sanction from
Response to Questionnaire
It has been an uphill task to enter the enormous data received through the
these were further structured in time with the system adopted for compilation
Limitations
Some of them did not fill the questionnaire due to lack of time
Some of the questionnaire could not be completed due to reasons other than
time factor.
ORGANISATION PROFILE
Chapter 3
ORGANISATION PROFILE
.
History
The story of Dabur goes back to 1884, to a young doctor armed with a
degree in medicine and a burning desire to serve mankind. This young man,
India Limited. From those humble beginnings, the company has grown into
from the words 'Da' for Daktar or doctor and 'bur' from Burman.
• 1896 -As the demand for Dabur products grows Dr. Burman feels the
• 1940 -Dabur diversifies into personal care products with the launch
of its Dabur Amla Hair Oil. This perfumed heavy hair oil catches the
imagination of the common man and film stars alike and becomes
• 1956 -Dabur buys its first computer. Accounts and stock keeping are
• 1970 -Dabur expands its personal care portfolio by adding oral care
products. Dabur Lal Dant Manjan is launched and captures the
• 1978 -Dabur launches the Hajmola tablet. This is the first time that a
Hajmola tablet.
Limited.
• 1992 -Dabur enters into a joint venture with Agrolimen of Spain for
manufacturing and marketing confectionery items such as bubble
gums in India.
Himachal Pradesh.
• 1994 -Dabur India Limited comes out with its first public issue. The
oversubscribed 21 times.
• 1995 -Dabur enters into a joint venture with Osem of Israel for food
• 1996 -Dabur launches Real Fruit Juice which heralds the company's
product portfolio.
• 1997 -Project STARS (Strive To Achieve Record Successes) is
• 1998 -The Burman family hands over the reins of the company to
Officer. ..
What is that life worth which cannot bring comfort to others", these words
A quality of life of the rural people in its area of operation. This society is
A vast array of products touching the lives of almost every individual, from an
infant to a grand old man, from poor to rich; that's how the Dabur's range of
health personal care and food products could be best explained. Today Dabur
trust has traveled beyond the boundaries of India and is available in more than
50 countries worldwide. These value for money products have made Dabur a
household name Healthcare is one of the biggest and oldest divisions of Dabur
Chyawanprash
one of the most well known Ayurvedic products in India and abroad. An
goodness 'of amla and over 50 other herbs. Dabur has conducted several
clinical trials on this product, which confirm its efficacy as a unique product
Digestives
Hajmola Tablets
Hajmola Tablets are the first classical Ayurvedic products to be branded and
Hajmola Candy
Candy in 1989. Since then, the company has added Mango and tamarind
Pudin Hara
One of the oldest products in Dabur portfolio, Pudin Hara is available in liquid
as well as capsule form. It has a special combination of mint oils and cures
The company has added effervescent powder with goodness of Mint for gas
Hingoli
and is used a lot in Indian cooking. Dabur's Hingoli has all the goodness of
The largest baby massage oil in India, it has the goodness of herbs which helps
borns.
Efarelle Comfort
A herbal medicine in self gel capsule form to help overcome abdominal pain
The largest division in terms of sales, the Family Products Division of Dabur
has in its portfolio hair care and skin care products, oral care and select foods
like honey.
Dabur is the leader in hair care products in India, and has covered almost all the
leading hair oil brand in Middle East and Africa. A perfumed heavy hair oil, it
Dabur Special Hair Oil -It is light hair oil that combines the natural hair care
Vatika -The fastest growing hair oil brand of India, Vatika has single handedly
created an altogether new category of herbal enriched natural oils. The Vatika
range also includes an herbal shampoo, which has made its mark in the very
The company has recently launched Vatika Anti -Dandruff Shampoo having
Gulabari -Rose water derived from best of Indian roses makes the skin supple
and glowing.
Oral Care
Dabur Lal Dant Manjan -It is the second largest tooth powder brand of India
and the largest in coloured tooth power category. This herbal tooth powder
Binaca Toothbrushes -After having acquired this dormant brand a few years
back, Dabur launched toothbrushes under this umbrella. There are plans to
consumer. Honey, which was mainly used for its medicinal properties in
Dabur's own research and development. Dabur has products for all the 16~
category are:
content. Dabur has a range of over 30 Asav Arishtas. Some of the well-known
Ashokarishta.
Chumas -These are finely ground medicinal powders used to treat a variety of
called Ras Rasayans. Dabur has a range of more than 50 Ras Rasayans which
Medicated Oils -The oils boiled alongwith certain prescribed drugs are known
as medicated oils. These oils retain the curative properties of herbs and is used
for inunction and massage. Launched over two years back, the Dabur Foods
range include juices under the brand name Real and cooking pastes under the
brand name Hommade. To give a better focus this division has been carved out
Dabur Foods Limited -Dabur Foods Limited, a 100% subsidiary of Dabur India
company, set up in April 1999, is marketing a range of fruit juices under the
brand name Real, Hommade Cooking Paste and Sauces and Lemoneez lemon
juice.
Dabur was the first company in India to introduce fruit juices in packaged form
without any artificial additive. Real is today the market leader in this category
with more than 50% market share. Hommade cooking paste is the oply national
brand in this category. Lemoneez is the only product in its category available in
New Livfit, Honitus, Ulgel etc. and a range of contrast media and
gynecological.
Oncology -This wide and formidable range includes brands such as Intaxel,
Docetaxel and Topotecan, all of which were manufactured for the first time in
India by Dabur. Little wonder then, that Dabur is the undisputed market leader
in this category in India and has plans to establish itself as a generic oncology
oncology category.
Joint Ventures
of France for the manufacture and marketing pf specialty cheese and other
dairy products. This joint venture company has already made its presence felt
in the Indian cheese market through the launch of processed cheese under the
brand name LeBon, and a specialty cheese under the brand name Delicieux.
Subsidiaries
Dabur has six subsidiary units, which come under the umbrella of the Dabur
The company, set up in April 1999, is marketing a range of fruit juices under
the brand name Real, Hommade Cooking Paste and Sauces and Lemoneez
lemon juice. Dabur was the first company in India to introduce fruit juices in
packaged form without any artificial additive. Real is today the market leader
in this category with more than 50% market share. Hommade cooking paste
is the only national brand in this category. Lemoneez is the only product in its
category available in unique drop and trickle pack and uniquely shaped
tabletop pack.
Dabur Nepal Private Limited -Dabur Nepal was the first manufacturing
base overseas for Dabur group. The company is today the leading exporter of
Nepal and the third largest and most modern manufacturing base for Dabur.
apiculture activities in Nepal. The company has set up state of the art
Nepal has also set up an Apiculture centre for promoting bee-keeping activity
in Nepal and developing queen bees and bee colonies for exports.
Middle East and African market is producing Hair Care, Skin Care Products
and Foods.
Dabur Oncology PIc. -Set up recently in UK, this subsidiary of Dabur India
Dabur has an illustrious Board of Directors who are committed to take the
PERFORMANCE APPRAISAL
Since organisation exist to achieve goals, the degree of success that individual
PURPOSE
There are basically three purposes to which performance appraisal can be put.
deficiencies.
standards. These should have evolved out of job analysis and the job
measured. Too often, these standards are articulated in some such phrase as "a
full day's work" or "a good job". Communication only takes place when the
transference has taken place and has been received and understood by the
by the manager has been received and understood in the way it was intended.
What we measure is probably more critical to the evaluation process than how
we measure, since the selection of the wrong criteria can result in serious
appraisal to the subordinate and then have the subordinate accept the appraisal
contribution and ability. The impression that subordinates receive about their
necessary. Corrective action can, be of two types. One is immediate and deals
predominantly with symptoms. The other is basic and delves into causes.
basic corrective action gets to the source of deviation and seeks to adjust the
difference permanently.
Immediate action corrects something right now and gets things back on track.
Chapter 5
PERFORMANCE
APPRAISAL SYSTEM IN
DABUR INDIA LIMITED
Chapter 5
their various training programmes if they require for enhancing their skills in
objectives are set. In action planing, the means are determined for achieving
the ends established in goal setting. That is, realistic plans are developed to
Company set goals to its employee by properly reporting with its employees
and then evaluating them upto what extent it has been achieved and if there is
failure in reaching the target what are the causes or reasons behind it.
Every evaluator has his or her own value system which acts as a standard
against which appraisals are made. Relative to the true or actual performance
an individual exhibits, some evaluator~ mark high and others low. The former
performance becomes over- stated; that is, rated higher than it actually should.
about a description in the evaluating criteria. Thus, though chances are less,
promoted.
Feedback
The company provides the annual feedback to its employees and thus, in term
bring out the highlights of the self assessment programme. This enables the
There are mixed responses from the feedback by the employees. It has helped
some of the employees in motivating themselves while those who felt bad
were thoroughly communicated and all the confusion and failure part were
Analyzed and interpreted. The various topics covered for analysis and
1. Promotions
need for esteem, belonging and security. They also afford an opportunity for
The guidelines for departmental promotion in are same for male and female
staff is needed. The other area of promotion apart from seniority are merit and
fitness. Though these guidelines are not in a written format the supervisor and
these guidelines are not being explained time to time, many are not aware of
N=96
Yes 16 16.66
No 52 54.16
From the above table, it can be seen that 30% agree that promotion is well
defined in the organisation. However 54% were not able to say it as there is
60 52
50
40
28
30 Series1
20 16
10
0
Yes No Can't Say
Respondent were also asked to suggest any change in the policy. The responses
Majority suggested for no change in the policy. It seems they are satisfied with
Respondent were asked about the present system, does it help in aligning
individual goal with those of the organisation. The responses were as given
below:
Yes 44 45.83
No 12 12.5
No response 4 4.16
Here the response from the supervisor were 45.83% for the factor that it help
44
45
40 36
35
30
25
20 Series1
15 12
10
4
5
0
Yes No Can't Say No
response
Career Progress
individual make progress in the career adding value to himself and the
organisation. Respondent were asked about the current system helping in their
career progress.
Career advancement is the most motivating factor when employee aspire for
the advancement of his career and for better opportunities to use his/her
their motivation high. Career planning means helping the employee plan his
Individual, after becoming aware of some of his/her capabilities and career and
also the responsibility of the employer to help him/her to identify the career
Are the issues like career planning and succession planning a part of
company’s policy
Yes 16 16.66
No 44 45.83
Here only 46% of the respondent gave response that it does not while 38%
50 44
40 36
30
Series1
20 16
10
0
Yes No Can't Say
Feedback
improvement.
Rarely 24 25
Sometimes 24 25
Often 8 8.34
frequency has to increase both from the individual and organisation point of
view to keep the individual motivated for work in line with the organisational
expectation.
40
35
30
25
20
15
10
5
0
Rarely On a few Sometimes Often Almost
occasion always
Remedial measure
Based on the performance the remedial measures are taken to do away with
weakness if any and build on the strength and add to the existing capability
Response on the remedial measure were as given below:
Counseled 12 12.5
Here the response were both for job rotation and training programme. During
the course it was felt that more training input is to be provided to the employee
to overcome the weakness and improve upon the existing capability of the
employee.
45
40
35
30
25
20
15
10
5
0
J ob rotation Sent to CounselledAny other None
training
program
PROMOTION POLICY AND PERFORMANCE APPRAISAL
APPRAISAL SYSEM
Respondent were asked whether the promotion policy is linked with the
Yes 54 56.25
No 28 29.15
Majority response were that promotion policy is linked with the performance
appraisal system.
60 54
50
40
28
30 Series1
20 14
10
0
Yes No Can't Say
SWOT ANALYSIS
1. Strength -Dabur India Limited is the first Indian major company which
came up with the idea of Ayurvedic concept in various family and health
used in its product and so it does not has any threat of side effect. As it has
its product in major areas viz. family, health care and in food division it can
easily has larger share of market. By this performance appraisal system act
efficiency and skills. For example, if we see Dabur Lal Dunt Manjan, it is
India's number one tooth powder doing very well in rural as well as in urban
market.
get enough opportunity to express completely and freely the valid reasons
employee always get feedback from the company. He / she can realize
easily his/her level of efficiency. By this performance appraisal system the
appraisal system there is always a chance of fear that those employees who
are unable to achieve their target can take it as a huge set back for them and
in the log term it tends to decrease their efficiency level how good the
employee is and thus it effect the over all performance of the organization.
Chapter 7
CONCLUSIONS &
SUGGESTIONS
Chapter 7
CONCLUSIONS & SUGGESTIONS
Conclusion
employee before appraisal process is done and also justify the promotion as
supervisory and above level IS to say not good but of satisfactory level.
• The appraisal outcome has to be used frequently for the purpose of reward
motivated to do better.
suggestion plans.
a few occasion.
• Performance appraisal in Dabur India Ltd is done on an annual basis.
suggestion came from the employee side for the need of counseling.
Suggestions
every year.
motivating in nature.
• Pin point the problem behaviors and make sure the employee is aware
of it
realistic plan appropriate to the behaviour and set a time frame for
improvement.
• The other change which has to be incorporated at the supervisor and the
• These should be listing down of task undertaken during the last one
and more counseling so that employee improve upon weak area and
The open appraisal system reduces the whims and fancies of the appraiser. It
Q.2. Do you know the objectives of the Performance appraisal system. If yes kindly
specify.
Q.3. How often the performance appraisal form is filled or Performance Appraisal is
done.
a. fortnightly. b. monthly c. six-monthly. d. annually
e. not fixed.
Q.8. Is the promotional policy linked with the performance appraisal system
a. yes b. no c. can't say
Q.9. Are the issues like career planning and succession planning a part of company's
policy
a. yes b. no c. can't say.
Q.I0 Does the system help you in aligning your goals with those of the organization.
Q.11. What role does top management play in the performance appraisal. kindly
comment.
Q.19 What do you feel are the shortcomings of the performance appraisal system
being followed in your organization, Kindly mention
Q.20. For how long have you been working in this organisation
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