Synopsis

A STUDY OF

PERFORMANCE APPRAISAL In PepsiCo India Ltd.

(To be submitted to IGNoU Open University, New Delhi in the partial fulfillment for the Award of Degree of Master Business Administration)
(MS 100)

Supervisor: Dr. A.C. Vashishtha

Submitted By: Nidhi Gupta Enrolment No. 102503160 Address: Vill+Post Dabathwa Sardhana Road, Meerut Pin -250341 Mob: 9319193368

COMPANY PROFILE
PEPSICO AT LARGE
Type Founded Headquarters Key People Public (Nys E:PEP) New York City, U.S. 1965 Purchase, New York, U.S. Indra Nooyi- (Chair woman, President& CEO),John Compton-(CEO PepsiCo Americas), Michael White-(CEO PepsiCo International),Richard Goodman (PhD-CFO) Industry Products Food & Beverages Pepsi Diet Pepsi Mountain Dew Tropicana Products Fritos Aquafina Revenue Net Income $39.5 billion USD (2007) $5.6 billion USD (2007) 16.06% profit margin Employees Divisions 168,000 (2006) PepsiCo Americas (PepsiCo Americas Foods, PepsiCo Americas Beverages), PepsiCo International Websites www.pepsiCo.com

VISION
To be best consumers Products Company in the eyes of suppliers, customers, consumers, employees and shareholders.

Sales vision-

To build exceptional customers focused sales team which will consistently

exceed customers exception by delivering exceptional excellence in the marketplace through selling systems and process.

MISSION
To be worlds premier consumer products company focused on convenient foods and beverages. We seek to provide healthy financial rewards to our investors as we provide opportunities for growth and enrichment to our employees, our business partners, and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.

PEPSI-

Present the opportunity Explain the solutions and benefits Provide the details Secure the sales Implement the next steps

PepsiCo, Incorporated (NYSE: PEP) is a Fortune 500, American multinational corporation headquartered in Purchase, New York, with interests in manufacturing and marketing a wide variety of carbonated and non-carbonated beverages, as well as salty, sweet and cereal based snacks, and other foods. Besides the Pepsi brands, the company owns the brands Quaker Oats,

Gatorade, Frito-Lay, SoBe, Naked, Tropicana, Copella, Mountain Dew, Mirinda and 7 Up (outside the USA). Indra Krishnamurthy Nooyi has been the chief executive of PepsiCo since 2006. During her time, healthier snacks have been marketed and the company is striving for a net-zero impact on the environment. This focus on healthier foods and lifestyles is part of Nooyi's "Performance with Purpose" philosophy. Today, beverage distribution and bottling is undertaken primarily by associated companies such as The Pepsi Bottling Group (NYSE: PBG) and Pepsi Americas (NYSE: PAS). PepsiCo is a SIC 2080 (beverage) company. Headquartered in Purchase, New York, with Research and Development Headquarters in Valhalla, The Pepsi Cola Company began in 1898 by a NC Pharmacist and Industrialist Caleb Bradham, but it only became known as PepsiCo when it merged with Frito Lay in 1965. Until 1997, it also owned KFC, Pizza Hut, and Taco Bell, but these fast-food restaurants were spun off into Tricon Global Restaurants, now Yum! Brands, Inc. PepsiCo purchased Tropicana in 1998, and Quaker Oats in 2001. In December 2005, PepsiCo surpassed Coca-Cola Company in market value for the first time in 112 years since both companies began to compete. Current members of the board of directors of PepsiCo are Indra Nooyi C.E.O., Robert E. Allen, Dina Dublon, Victor Dzau, Ray Lee Hunt, Alberto Ibargen, Arthur Martinez, Steven Reinemund, Sharon Rockefeller, James Schiro, Franklin Thomas, Cynthia Trudell, and River King. On October 1, 2006, former Chief Financial Officer and President Indra Nooyi replaced Steve Reinemund as chief executive officer. Nooyi remains the corporation's president, and became Chairman of the Board in May 2007.

Product Profile
Our Brands
PepsiCo is home to hundreds of brands around the globe. Listed here are some of our most recognized. Pepsi-Cola Brands Frito-Lay Brands Gatorade Brands Tropicana Brands Quaker Brands

Pepsi

Pepsi Max

Pepsi

Pepsi Max Cease Fire Pepsi Natural Pepsi One Pepsi Throwback

Pepsi Wild Cherry Caffeine Free Pepsi Diet Pepsi Diet Pepsi Wild Cherry Caffeine Free Diet Pepsi

Sierra Mist
Sierra Mist Diet Sierra Mist Sierra Mist Cranberry Splash Diet Sierra Mist Cranberry Splash Diet Sierra Mist Ruby Splash

Slice

Slice - Grape

Slice - Diet Orange

Slice - Orange

Slice - Peach Slice - Strawberry

Tropicana

Tropicana Fruit Punch Tropicana Lemonade Tropicana Light - Lemonade Tropicana Light - Orangeade Tropicana Orangeade Tropicana Pink Lemonade Tropicana Strawberry Melon Tropicana Twister Soda - Diet Orange Tropicana Twister Soda - Grape Tropicana Twister Soda - Orange Tropicana Twister Soda - Strawberry

Ocean Spray (License)

Ocean Spray Apple Juice Ocean Spray Blueberry Juice Cocktail Ocean Spray Cranberry Juice Cocktail Ocean Spray Cran-Pomegranate Juice Drink Ocean Spray Orange Juice Ocean Spray Pineapple Peach Mango Juice Blend Ocean Spray Ruby Red Grapefrui Juice Drink Ocean Spray Strawberry Kiwi Juice Drink

Mountain Dew
Mountain Dew

Mountain Dew Code Red Mountain Dew Distortion Mountain Dew Live Wire Mountain Dew Throwback

Mountain Dew Typhoon Mountain Dew Voltage Mountain Dew White Out Caffeine Free Mountain Dew Caffeine Free Diet Mountain Dew Diet Mountain Dew Diet Mountain Dew Code Red

AMP Energy
AMP Energy AMP Energy - Elevate

AMP Energy - Lightning AMP Energy - Lightning Sugar Free AMP Energy - Overdrive AMP Energy - ReLaunch AMP Energy - Sugar Free AMP Energy - Traction AMP Energy Juice - Mixed Berry AMP Energy Juice - Orange

AMP Energy with Black Tea AMP Energy with Green Tea

Mug Root Beer

Mug Root Beer Diet Mug Root Beer Mug Cream Soda Diet Mug Cream Soda

RESEARCH PROBLEM:
The results of the appraisal system should be followed up through a set of well designed and enforced policies, and translated into rewards and punishments. Performance of researchers is sometimes difficult to assess. A research manager has to balance between researchers' creativity and organizational goals. Researchers do not like others passing judgment on qualitative or quantitative aspects of their work, yet the need for an effective performance planning and appraisal system in a research organization is well accepted.

RESEARCH OBJECTIVES
The various underlying objectives of the study of performance appraisal system and its effectiveness are as follows: To find out an adequate knowledge of employee performance in terms of study of performance appraisal system in PepsiCo. To study the perception of employees on the existing appraisal program and to find the drawbacks of the system. To compare the two appraisal programs based on secondary data. To suggest measures for improving the current system to formulate suitable promotion, transfer, training and development policies and making employees aware of the upcoming system. To accomplish the overall organizational vision and mission by linking individual performance to company objective. To encourage two way communication between the executive and the reporting officers and bring about transparency in the performance assessment process. To translate future skill requirements of the organization into individual development plans.

THE PROBLEM OF PRESENT STUDY AND ITS JUSTIFICATION

Internship training is the mirror to the real corporate world. It is the best to compare our theoretical knowledge with the practical experience from the company. By this way one can get the opportunity to see that whether what we study in books is really prevailing in the companies or not and if prevailing then in what form. That is why I chose the topic Performance appraisal. As it covers many aspects of Human Resources available in the organization for the employees. Through the study of this topic I came to that there are several factors which affect the performance of the employees such as relationship between superiors and subordinates, working conditions, strengths and weaknesses of employees etc.

Our Commitment:
We are committed to delivering sustained growth through empowered people acting responsibly and building trust.

What It Means: Sustained Growth is fundamental to motivating and measuring our success. Our quest for
sustained growth stimulates innovation, places a value on results, and helps us understand whether today's actions will contribute to our future. It is about the growth of people and company performance. It prioritizes both making a difference and getting things done.

Empowered People means we have the freedom to act and think in ways that we feel will
get the job done, while adhering to processes that ensure proper governance and being mindful of company needs beyond our own.

Responsibility and Trust form the foundation for healthy growth. We hold ourselves both
personally and corporately accountable for everything we do. We must earn the confidence others place in us as individuals and as a company. By acting as good stewards of the resources entrusted to us, we strengthen that trust by walking the talk and following through on our commitment to succeeding together.

Guiding Principles:
We uphold our commitment with six guiding principles. We must always strive to:

Care for our customers, our consumers and the world we live in.
We are driven by the intense, competitive spirit of the marketplace, but we direct this spirit toward solutions that benefit both our company and our constituents. Our success depends on a thorough understanding of our customers, consumers and communities. To foster this spirit of generosity, we go the extra mile to show we care.

Sell only product we can proud of :

The true test of our standards is our own ability to consume and personally endorse the products we sell. Without reservation. Our confidence helps ensure the quality of our products, from the moment we purchase ingredients to the moment it reaches the consumer's hand.

Research Methodology
Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. Research methodology is a tool for obtaining information for the purpose of the subject of the study. The process Requires data i.e. Primary and Secondary data about user perception and attributes for analyzing data. Research Methodology helps in studying various steps that are generally adopted by researcher in studying the research problem along with the logic behind it. The first step of research methodology of HR department for the topic questionnaire about different kinds of systems including data and procedure of each segment that helped me to know in details. Apart from this the second part of this methodology has been envisaged through direct studies. This also helped to know the advantage and disadvantage and the difficulties faced by HR department for fixing Performance Appraisal. For the above mentioned difficulty, a hypothesis is being taken which entitles that HR department for retaining its employees in the organization avails every system of appraisal that can make the human resource of this organization highly satisfied and the frequent labor turnover is not desirable.

Defining the problems

The results of the appraisal system should be followed up through a set of well designed and enforced policies, and translated into rewards and punishments. Performance of researchers is sometimes difficult to assess. A research manager has to balance between researchers' creativity and organizational goals. Researchers do not like others passing judgment on qualitative or

quantitative aspects of their work, yet the need for an effective performance planning and appraisal system in a research organization is well accepted.

Type of Research:
The type of research undertaken is purely qualitative in nature.

Sources of Data Collection:

The sources of data collections will be:

Primary Data: Primary data will be those data that will collect originally and will be first
hand information. They are the fresh data and are collected for the first time and thus happen to be original in character. There are several methods for primary data. Some of the methods are: Direct personal interview Indirect personal interview Information from employees Questionnaire to be filled by executives and non-executives.

In finding the information for pay and compensation of employees, research has been done by collecting data from primary sources and secondary sources. A questionnaire has been prepared with the helped of which various information is obtained.

DATA COLLECTION:
The methods of data collection to be decided are according to the objectives and nature of the research as well as the available information. For this knowledge of all methods and their limitations is a very essential while collecting the data, core has to be taken, the data should cover the entire subject under hypothesis and accuracy with its corrections and unbiasness.

A sample size of 100 employees is studied for this purpose. Employees of different unit were randomly administrated the questionnaire.

SECONDARY DATA:
Secondary data are those data that have already been collected by someone else and which have already been passed through the statistical process. In secondary sources the data may be published or unpublished. In my project the sources of secondary data are obtained through: Text books Brochures Graphical presentation and pie charts Internet web sites

DATA ANALYSIS
The analysis of data was done on the basis of unit, age and number of years of experience and factors. Analysis was done using the simple average method so that, findings of the survey was easily comprehensible by all.

DATA TYPE
Primary as well as secondary data was collected.

RESEARCH APPROACH
Conducting a field survey did a subjective assessment of the collection of primary data which contained open-ended questions to chance response. In addition the personnel interview method

was employed to draw out answers to subjective questions, which could not be adequately answered through the use of questionnaire.

SAMPLE UNIT
100 employees: basic unit containing the elements of the population to be sampled (Ghaziabad)

SAMPLE SIZE
sample size of 100 employees.

PREPARING THE QUESTIONNAIRE

The first task in the process of measuring level of recruitment of the candidates in PepsiCo is to prepare questionnaire. For this purpose a number of questionnaire we studied and finally a questionnaire where framed. The questionnaire where grouped under five categories: Company level Environment related Supervision related Growth related Job related

The questionnaires are also asking the employee for the demographic details: Age Sex Work experience

Recommendations
The new system has been designed for all the officers level keeping in mind all the pitfalls of the existing system. It is an almost perfect system. But certain actions taken , can make the implementation of the system smooth and easier. It would have added benefits to it. Various promotional strategies should be adopted by the organization in order to spread awareness among employees gain confidence. This would help in smooth functioning of the department. The benefits and advantages of the system should be aware of the benefits attached to it, they would be apprehensive to change. They should also know the pros and cons of the system. Nothing should be deliberately kept confidential which are concerns of the employees.

CONCLUSIONS
On the basis of the questionnaire and direct personal interview, it can be concluded that the PERFORMANCE APPRAISAL of employees in PepsiCo is an integral part of the organization and plays a vital role. PERFORMANCE APPRAISAL as a management tool can be used broadly as a control tool or as a developmental tool or as a balanced mixture of both. The emerging philosophy worldwide is to leverage the potential of APPRAISAL process in providing clues to the developmental requirements of employees. A good PERFORMANCE APPRAISAL process provides for not only evaluation of an employees performance but also identification of his competency gaps to enable the organization to bridge them through appropriate development initiatives, the ultimate objective being to continually prepare employees for occupying the higher echelons as they progress in their career. With the analysis, interpretation and study of the PERFORMANCE APPRAISAL process of employees in this project report. It can be said that the HR department enjoy a lively role because they have to retain the qualified and workable employees. For such retention of workers, the department faces the challenge to motivate them to provide their best services. Thus, HR is very capable and successful in terms of providing better environment and better working conditions. Also HR plays a crucial role in PERFORMANCE APPRAISAL but in its other functions too like in its training and development program, pay and compensation allowances, etc.

QUESTIONNAIRE
General Information: Name Address Telephone No.. Email Occupation Gender Status ( ) Service ( ) Male ( ) Married ( ) Business ( ) Female ( ) Unmarried

Number of members in the family ( ) 1 to 3 ( ) 3 to 6 ( ) Over 6

Monthly Income in rupees ( ) Below 8000 Q.1. ( ) 8000-16000 ( ) 16000-30000 ( ) Above 30000

Is the promotional policy well defined in your organization? a. Yes b. No c. can't say

Q.2.

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

Q.3. How often the performance appraisal form is filled or Performance Appraisal is done. a. e. Q.4. fortnightly. not fixed. b. monthly c. six-monthly. d. annually

On what basis is the performance appraisal done. a. d. merit cum seniority seniority only. b. seniority cum merit. e. any other. Pl. specify c. merit only

Q.5 Who appraises you? a. c. e. Q.6. appraisal committee. b. self-appraisal d. your immediate supervisor 360 degree appraisal.

any other please specify

What methods are being used for performance appraisal a. c. e. forced choice distribution method. ranking method. any other, kindly specify b. d. essay method critical incident method

Q.7.

In your opinion does it identify the training needs? a. to a large extent b. to some extent c. cant say d. not at all

Q.8.

Is the promotional policy linked with the performance appraisal system a. yes b. no c. can't say

Q.9. Are the issues like career planning and succession planning a part of company's policy a. yes b. no c. can't say.

Q.I0 Does the system help you in aligning your goals with those of the organization. a. yes b. no c. can't say

Q.11. What role does top management play in the performance appraisal. kindly comment. Q.12. Are you a part of the appraisal committee a. yes b. no

Q 13 . Do the employees get the feedback of performance appraisal a. c. d. Q.14 yes, every time. only when required rarely e. never b. often, but not always.

Does the organization provide counseling after the appraisal.

a. always

b. often

c. rarely

d. never.

e. can't say.

Q.15. Who does the counseling a. trained professionals b. untrained counselors. c. can't say

Q.16. What kind of remedial measures are taken. a. job rotation b. sent to training programmes c. counseled

d. any other, kindly specify Q.17. How do you rate the overall assessment of performance appraisal a. Outstanding b. Very good c. Good e. Poor Q18. As we know that the technique of performance appraisal is the process of assessing the performance of an employee on a given job. How far is it true practically? a. YES b. NO c. NIL d. Satisfactory

Q19. Are you satisfied the existing appraisal procedures? a. BEST b. GOOD c. NOT SATISFIED

Q20. After how much period of time, appraisal of performance is done? a. 6 MONTHS b. 7 MONTHS c. 5 MONTHS

21. Does the process of Performance Appraisal provide a platform for the employees to know their strengths and weaknesses?
a. YES b. NO c. DONT KNOW

22. Does performance an employee helps in promotion decisions? a. YES

b. LITTLE BIT c. NO

STRUCTURE OF THE REPORT

Declaration Acknowledgement Preface Executive Summary The problem of the present study and its justification Objective of the Study Scope of the Study Limitation of the Study Company Profile Product Profile Research Methodology Data Analysis Recommendations Conclusions References Appendix