1 Update

Performance Appraisal
A STUDY ON PERFORMANCE APPRAISAL

WITH REFERENCE TO
HINDUSTAN COCA- COLA BEVERAGES PRIVATE LIMITED
VISHAKAPATNAM
A project report submitted to JNT University, Kakinada in partial

fulfillment of the requirement for the award of the degree of
Master of Business Administration
Submitted by
YAVVARI LALITHA KUMARI
Regd.no.09PM1E0058
Under the guidance of
Mr.SAUMENDRA DAS
LLM, MBA (PhD)
DEPARTMENT OF MANAGEMENT STUDIES
AITAM SCHOOL OF COMPUTER SCIENCES AND MANAGEMENT

(Approved by AICTE, New Delhi & Affiliated to JNTU, KAKINADA)
K.Kotturu, Tekkali.
2009-2011
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AITAM SCHOOL OF COMPUTERSCIENCES AND MANAGEMENT

(Approved by AICTE, New Delhi & Affiliated to JNTU, KAKINADA)
K.KOTTURU, TEKKALI- 532201
DEPARTMENT OF MANAGEMENT STUDIES
CERTIFICATE
This is to certify that the project entitled on PERFORMANCE APPRAISAL with

reference to HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED is
Submitted by YAVVARI LALITHA KUMARI, bearing Regd. No. 09PM1E0058 in
partial fulfillment of the requirement for the award of degree of Master of Business
Administration from Aitam School Of Computer Sciences And Management is a record
of bonafide work carried out by her under my guidance and supervision.
The result embodied in this project work has not been submitted to any other
university or Institution for the award of any degree or diploma.
(DR. D. VISHNU MURTHY) (MR. SAUMENDRA DAS)

PRINCIPAL PROJECT GUIDE
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ACKNOWLEDGEMENT
I am very thankful to the entire team of HINDUSTAN COCA COLA BEVERAGES

PVT.LTD for their cooperation, without which completion of this project would not have been
possible.
I am extremely grateful to Mr. N.V.S RAMANA MURTHY (HR MANAGER) for

providing me with valuable insights about the base metals. I would like to thank him for the
patience shown by him and being of such a great help to all my queries.
I express my sincere gratitude to DR. D.VISHNUMURTY, Principal of ASCAM for

giving to me this opportunity to carry out this project.
I would like to thank Mr. SAUMENDRA DAS for his valuable guidance and
encouragement and constructive suggestions throughout the project work.
Finally I thank to my parents for their continue support and help in the completion of
my project.
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DECLARATION
I hereby declare that this project entitled PERFORMANCE APPRAISAL WITH

REFERENCE to HINDUSTAN COCA-COLA BEVERAGES PVT.LTD has been prepared by
me during Period (DECEMBER-JANUARY, 2010-2011) and submitted to AITAM SCHOOL
OF COMPUTER SCIENCES AND MANAGEMENT, TEKKALI. In partial fulfillment of the
requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION from
JAWAHARLAL NEHRU TECHNOLOGY UNIVERSITY, KAKINADA
I also declare that this project works in the result of my sincere effort and that it is
has not been submitted to any other university for the award of any degree or diploma.
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CONTENTS
CHAPTER NO TITLE PAGE NO
CHAPTER 1: 1.1 INTRODUCTION OF THE STUDY 10

1.2 NEED FOR THE STUDY 12
1.3 OBJECTIVES OF THE STUDY 13
1.4 METHODOLOGY OF THE STUDY 14
1.5 LIMITATIONS OF THE STUDY 16
CHAPTER 2: AN OVERVIEW OF CRONIMITE

2.1 PROFILE OF INDUSTRY 18
2.2 INDIAN FERRO ALLOYS IN THE WORLD 22
MARKET
2.3 FUTURE PROSPECTS OF INDUSTRY 23
2.4 INDUSTRY GENESS AND GROWTH 25
2.5 ORGANISATION STRUCTURE 28
2.6 FINANCIAL MANAGEMENT 30
2.7 MATERIALS MANAGEMENT 34
2.8 PRODUCTION MANAGEMENT 35
2.9 PERSONNEL MANAGEMENT 41
2.10 COOPERATIVE STORES 43
2.11 MANAGEMENT INFORMATION SYSTEM 44
2.12 MARKETING MANAGEMENT 44
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CHAPTER - 3: THEORETICAL FRAMEWORK

3.1 INTRODUCTION TO RECRUITMENT 48
3.2 RECRUITMENT POLICY 48
3.3 SOURCES OF RECRUITMENT 49
3.4 METHOD OF RECRUITMENT 49
3.5 RECRUITMENT PROCEDURE 49
3.6 SELECTION PROCEDURE 50
3.7 APPOINTENT 52
3.8 RECRUITMENT AND SELECTION IN CRONIMET 53
3.9 OBJECTIVES OF RECRUITMENT AND SELECTION 54
3.10 INTERNAL AND EXTERNAL SOURCES 55
3.11 SELECTION PROCEDURE 59
CHAPTER - 4: 4.1 DATA ANALYSIS AND INTERPRETATION 63
CHAPTER - 5: SUMMARY, FINDINGS AND SUGGESTION

5.1 SUMMARY 83
5.2 FINDINGS 87
5.3 SUGGESTIONS 90
BIBLIOGRAPHY 92
APPENDIX 94
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LIST OF TABLES
SL NO PARTICULARS PAGE NO
1 TABLE NO-4.1.1
2 TABLE NO-4.1.2
3 TABLE NO- 4.1.3
4 TABLE NO-4.1.4
7
5 TABLE NO-4.1.5
6 TABLE NO-4.1.6
7 TABLE NO-4.1.7
8 TABLE NO-4.1.8
9 TABLE NO-4.1.9
10 TABLE NO-4.1.10
11 TABLE NO-4.1.11
12 TABLE NO-4.1.12
13 TABLE NO-4.1.13
14 TABLE NO-4.1.14
15 TABLE NO-4.1.15
16 TABLE NO-4.1.16
17 TABLE NO-4.1.17
18 TABLE NO-4.1.18
LIST OF FIGURES
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SL NO PARTICULARS PAGE NO
9
1 ORGANSATION CHART
2 AVAILABILITY OF JOB
3 BASIS OF SELECTION
4 INVOLVEMENT OF HEAD
5 SOURCE OF RECRUITMENT
6 TYPE OF SELECTION
7 CONCENT ON SELECTION
8 PROMOTION
9 PREFERENCE TO INTERNAL SOURCES
10 INGREDIENTS FOR INTERVIEW
11 ORIENTATION CLASS
12 EMPLOYEE TRANSFER
13 EMPLOYEE REFERRALS
14 SELECTION PROCEDURES
15 PSYCHOMATRIC TEST
16 EMPLOYEE AGREEMENTS
17 PROBATION PERIODS
18 HIRING PROCESS
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CHAPTER I
INTRODUCTION
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1.1 INTRODUCTION OF THE STUDY
Performance appraisal is the process of evaluating the performance and

qualification of the employees in terms of the administration including for promotion,
providing financial rewards and other placement, selection actions which require
differential treatment among the members of a group as distinguished from actions
affecting all members equally.
Definition:
Performance appraisal is the systematic evaluation of individual with respect to
his/her performance on the job and his/her potential for development.
Performance appraisal is the systematic description of employees job relevant
strength and weakness. The purpose is to find out how well the employee is performing
his job and establish a plan of improvement. Performance appraisal is arranged
periodically according to a definite plan. Performance appraisal is not job evaluation.
Performance appraisal refers to how well someone is doing the assigned job. Job
evaluation determines how much a job is worth to the organization and, therefore, what
range of pay should be assigned to the job.
Once the employee has been selected, trained and motivated, he is then appraised
for his performance. Performance appraisal is essential in escapable managerial activity for
enhancing organizational performance. It adminstrative and training and development
decisions and motivating employees.
A performance of a job in terms of its requirements observes, it is the process of

evaluating the performance of qualification of the employees in terms of the requirements
of the job to which he is employed for the purpose of administration including placement,
selection for promotions, providing finance rewards and other actions which require
differential treatment among the members of a group as distinguished from action affecting
all members equally.
Initially the appraisal system was started for the purpose of making administrative
decisions relating to promotions transfers and salary increments, however over the years
the performance appraisal system are being upon to serve a variety of purpose. They are,
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Administrative purpose
Motivational purpose
Development purpose
Performance improvement
Importance of performance appraisal:

Performance appraisal is an essential and inescapable managerial activity.
Appraisal is necessary for all important decisions relating to people, such as placement
and promotion, remuneration and reward, training and development, as well as long-term
man power planning and organization development. In recent years, efforts have been
made to use appraisal systems for motivation, for more effective communication, for
strengthening superior-subordinate relationships, for goal setting and work planning and
for improving the total performance of the organization. But in spite of its importance,
uneasiness about appraisal has been a long-standing feature of management. There is no
doubt during the past three decades, many developments have taken place and many
innovations, have been made in managerial appraisal system. Still, many issues remain
unresolved. Available literature on the subject reveals than even in the western countries,
where systematic appraisals have been widely practice over a much longer period than in
India and where a fair amount of empirical as well as theoretical research on the relevant
issues has been conducted, serious doubts continue to persist about various aspects of
appraisal.
In this present situation performance appraisal become important aspect for the
growth and development of the organisation. As beverages industries are recruiting their
employees day to day and providing the best remunerations and facilities, The student
researcher again tried to compare the theories available in the books, journals etc with the
practical implementation in that company. She revealed the situation and found that the
appraisa system adopted by the company was good and satisfactory among all the
employees. Further she quoted points and suggested few points for the development of
the employees.
1.2 NEED FOR THE STUDY
A very good system of performance appraisal system is neede by an organization
that wants to be dynamic and growth oriented. It is to be remember that the employee
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needs to be satisfied and there should be no difference between the review and appraised
employee.
It plays a major role in the process of communication between the superior and the
subordinate. A good appraisal system is the best requirement to bring up the organization
and its productivity.
Any organization is having a very good system of performance appraisal system
because it has laid its own philosophy and well planned procedure in rating the employees
which is very important for the development of both individual and organization.
Management is also providing all the requirements of the employees for the
completion of the work and even the system constitute goal setting, periodic reviews,
feedback and consequence management, and finnaly rating is given as per this reviews.
The employee assessment has been done by the system of appraisal by the
superior and have the final authority for the rating. Here the employees are given chance
for their individual development. The action is taken according to the ratings of appraised
employee.
Creating and maintaining the satisfactory level of performance of employees in

their present job.
Provide feedback information about the level of achievement and behavior of
subordinate.
Provide information which helps to counsel subordinate.
To prevent grievances and in disciplinary activities.
Highlighting the employee needs and opportunities for personal growth and
development.
Aiding in decision making for promotions, transfers, layoffs and discharges.
Promoting understanding between the supervisor and the subordinates.
Providing useful criteria for determining the validity of selection and training.
1.3 OBJECTIVES OF THE STUDY
1. To study and analyze different performance appraisal schemes provided by

organization.
2. To study the existing annual performance appraisal system in organization.
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3. To study the efficiency of the system and overall rating during last year.
4. To study the interpersonal and team relationship with peers, superiors and
subordinates.
5. To study the performance feedback and counseling system for employees in
organization.
6.To analyze the employee attitude towards the present appraisal system.
7.To enhance job satisfaction and self actualization of employees by encouraging, and
assisting every employee to realize his or her full potential.
1.4 METHODOLOGY OF THE STUDY:

Research is a careful investigation or enquiry especially through search for new
facts in any branch of knowledge.
According to Redman and Mory, Research is a systematized effort to gain new

knowledge.
RESEARCH DESIGN:
A Research Design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with economy in
procedure.
Generally the Research Design can be conveniently described in 3 ways. They are,
Research Design in case of exploratory research studies.
Research Design in case of descriptive and diagnostic research.
Research Design in case of hypothesis-testing research studies.
The present study is of descriptive study.
SOURCES OF DATA
The sources for collecting the data are from both
Primary Method
Secondary Method
Primary Data
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The Primary data are those which are collected afresh and for the first time, and
thus happen to be original in character. The tools for collecting this primary data are by
two types namely Interview Method and Questionnaire Method.
Secondary Data
The Secondary data are those which have already been collected by someone else
and which have already been passed through the statistical process in the company.
SAMPLE SIZE
All items in any field of in query constitute a universe or population. A finite
subset of the population gives a sample.
The statistical units in the sample are called sample units. The number of units in
the sample is called the size of the sample.
If the size of the sample is less than or equal to 30 then it is called as a small
samples. Otherwise that it if the size of the sample is greater than 30, it is called as large
samples.
The sample size of the survey is taken as 70 respondents.
SAMPLING PROCEDURE
Sampling is the selection of group with a view to obtain information about the
whole is group of persons that represents particular community.
The sampling method used was random sampling. This sampling method was used
because of lack of time and lack of through knowledge about the universe. The sample
size was fixed to 70 respondents.
SAMPLING TECHNIQUE
Simple random sampling
RESEARCH INSTRUMENTS
1. Personal interviews: Schedulers where administered personally for Collecting the data.
2. Questionnaire : The questionnaire comprises of open ended questions and closed

ended questions.
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STATISTICAL TOOLS USED

Bar charts
Pie-charts
Tables
1.6 LIMITATIONS OF THE STUDY
1. The survey could not be extended to all the employees working in the plant as they
could not spare much time because of their busy schedule of work.
2. The performance appraisal study is conducted on a limited number of employees and
on the entire work force.
3. The answers given by the respondents highly depend on the mood and interest and
thus the accuracy fluctuates sometimes.
4. Sample size is 70 respondents.
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CHAPTER II
ORGANIZATION STRUCTURE
2.1 ORGANIZATIONAL STRUCTURE
Organization Structure and Management
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The word Organization has two meanings. In the first instance, it signifies
institution or functional group and the second meaning refers to the process of organizing
the way of work which is arranged and allocated among the members of the organization,
so that the goal of the organization can be achieved efficiently. The organization process
involved the balancing of the companies on one hand changes on the other hand.
Organization structure gives stability and reliability to the action of its members.
Organization structure can be defined as the relationship existing among the

various jobs and positions within an organization an organization structure specifies its
division of work activities and shows how different functions or activities are linked.
The following table shows the description of the employees along with the
designation and also the number of employees.
SL. No. Description N.of employees
1 General Manager (Finance) 1
2 Commercial Manager 1
3 Marketing Dept Manager 1
4 Territory Dept Manager 4
5 Administration 1
6 Production Manager 1
7 Asst. Personal manager 1
8 Store Executive 3
9 Central Executive 25
10 Route Agents 50
11 Sales Training 1
12 Chemist 3
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13 Accountant 5
14 Supervisors 8
15 Clerks 8
16 Operations 10
17 Electricians 3
18 Fitters 2
19 Computer cum Telephone Operator 12
20 Security Guards 6
21 Office Boys 13
22 Sweepers & Helpers
ORGANIZATION CHART
Managing director 20
CEO
Executive CEO
Head Head AVP Managing Head Head Head

Finance Sales Marketing Operations Human Transport
Resource & Shipping
Manager Manager Manager Manager

Finance TDM Modern Production
Trade Manager Executives
TPT Shipping
Executive
Asst. Asst. Manager

Asst. Accts Manager Manager Quality
ADC Marketing Control
Sales Executives Manager

Executives Maintenance
FIGURE NO-2.1
2.2 FINANCIAL FUNCTIONS
Finance department
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A finance manager heads the finance department. This is a very powerful post
in the company and the finance department. This is a very powerful post in the company
and the finance manager is the second in command of the unit. The entire plant and
operations keep him abreast of their daily functioning, while the AGM mainly attends to
the sales functions.
Sources of finance
The finance to the company comes from corporate office and financial
institution abroad. The units which have been set up in India are subsidiary concerns of
group. These units mobilize their own funds and pay lumps amount to the corporate group
for getting technology and the product specification to be manufactured in the company,
for which the formulation comes from the office situated abroad. The finance department
can be broadly segmented into two, the accounting sections and the payables or
receivables i.e., working capital. In addition to these sections like stores, shipping,
purchase, administration in unit level regional office. The finance manager makes
allocations for the different department in consultant heads
Stores
There is a store in-charge and four other people to assist him. All material
used for production are under the stores in charge once they enter the company premises.
This includes raw material, other material etc. The stores department reports to the
finance manager and daily reports are sent to him. Materials are stocked in accordance
with the production schedule and sales target.
Shipping
The functions of the two people including, the purchase in -charge who
reports to the finance manager.
Purchases
This section functions with two people including the purchase in charge who
reports to the finance manager. The plant inform as the stores of the requirements who in
turn make a purchase request to the purchase department. Every purchase matter
whether concerning the plant or office is handled by the purchase department.
Personnel department
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Matters like recruitment, selection. Wage structure, etc is decided at office.

The respective department heads sanction leaves for the staff. The department is
conducting training programs in computers and spoken English to better equip its people
to handle the change the organization is under going.
Financial Structure
Any company to start and operate its business has to invest its capital in fixed
assets and floating assets and also in meeting the daily requirements of the company.
However, depending on the nature of the business and the product being offered by the
company the ratio of the investment of capital in fixed and floating assets differ.
2.3 H R FUNCTIONS
Human Resource Management is an essential part for any organization.

Moreover, development of this department is the first step, the ground on which the future
of the company depends. It is essential for every single business unit and especially for
such international company. It is people, not technology who create the company. Human
Resource Management at Company has many advantages. It is the global company and it
is impossible to create certain policies or procedures applicable in all divisions of the
company, cultural and political differences need to be taken into account. Therefore, the
focus of this paper will be on four tasks and duties of Human Resource Management
(performance management, compensation, career development, succession planning)
based on the United States procedures.
Basically the HRM practices are necessary for every organization. But
unfortunately in Pakistan not so much used HRM practices. In multinational companies
have their own separate department of HRM
Every organization has its own policies and strategies by which they control the
functions of their departments. Similarly, we also have own policies and strategies by
which we control all the functions of our departments. HR department is also conducting
all the practices of HRM like Job analysis and design of work ,recruitment and selection,
training and development, performance appraisals, compensation, employee relationships,
staff welfare and medical policies and some other things like that. These all practices are
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conducted by own policies and strategies. HR department not make decisions related of its
own department, they also conduct in companys decision.
Job analysis and designing

Job analysis is the procedure for determining the duties and skill requirements of
a job and the kind of person who should be hire for it. Job analysis consists of two
products one is job description and second job specification.
Job description: A list of job duties, responsibilities, reporting relationship,
working conditions, and supervisory responsibilities- one product of a job.
Job specification: A list of a jobs human requirements that is requisites
education, skills, personality, and so on-other product of a job analysis.
HR department check its own job description and job analysis in which they get the
information about employees work activities, human behavior, performance standard, job
context and human requirements and also other information related to this conduct.
HR department used this information for Recruiting, selection, compensation,
performance appraisal, training, and employees relationship.
Planning and Forecasting
The process of deciding what positions the firm will have to fill, and how to fill them
HR department involves in company strategic planning and they also make sufficient
planning for hiring new employees in the future. We forecast for the expected employees
needs in the organization. We forecast of employees on the change technology and
increasing in productivity.
After planning we send this report to the head office for approval. If we get
approval from the head office then we start recruitment process.
Our recruitment process
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Our recruitment process is well established first of all we give ads in news papers,
company website, institutions etc. Once we receive an application form, from candidates
with required documents and CV.
Internal recruitment
External recruitment
Selection process
The selection process will vary depending on the position youre applying for, as
one process cant fit all the different roles we have here at CCE. However, in most cases a
combination of any of the following tools will be used:
Interview
Group exercises
Presentations
Psychometric tests
Role plays/Situational Exercises
Interview
The interview is designed to reveal more about you and your experiences. Well ask
for examples of how you behaved in different situations, maybe at school, university, a
club, at home or in previous jobs. This is not designed to 'catch you out' and our
interviewers will never try and trick you into an answer. Be honest, be yourself and it
should be an enjoyable experience.
Also, dont forget that this is your chance to find out more about us and ask
questions. Remember, interviews are a two-way process so use it to understand the
nature of the role and to make sure it really is what youre looking for.
Group exercises
Were very much a team at CCE so these will show us how effectively you work
with people. Theyre a good opportunity for us to see how you communicate, influence and
involve other people in the workplace.
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Presentations give you the chance to show your ability to communicate to a

group of people on a specific topic. You may be given a topic in advance or on the day, but
dont worry youll have plenty of time to prepare.
Psychometric tests
Psychometric tests are timed exercises that examine your abilities and
potential. On occasions, we may also use a personality assessment tool that is designed to
find out more specific things about you. If youre asked to complete a psychometric test,
well send you information and advice in advance on how to prepare.
Role Plays/Situational Exercises
Designed to assess how you react in certain situations, these help to

highlight particular skills and how well youre suited for a position. You may be given facts
and figures to review, or a report to complete; we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace. Dont
worry, youll be given a brief and ample time to prepare.
Training process of employees
Training process is essential part of every employee without training,

employee cannot come to now the procedure of work, rules and regulations of firm,
sometimes when new technology is introduced it is also responsibility of a firm to train its
employees.
After recruiting the fresh employee we train them for three months and also
pay them salaries after three months they become part of a firm.
We also give training to already exist employee it depend upon condition for
example if new technology is introduced first of all we give full training to them about new
technology then we allow them to start their job.
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Performance appraisal
HR appraise the employee due to their performance about goals of the

organization. HR set the goals started the year and tell the employees about the goal if
the employees achieve this goal HR appraise the employees.
Compensation and benefits

Objective of compensation is our compensation objective is to improve
performance of employees and convey a message to employees that company is loyal with
employees.
HR department manage says that employees are our assets, there for we
are careful about their health and benefits. We give following compensation and benefits:
Basic salary
Bonus
Medical facility
Pick and drop
Gratuity fund
Social security
We get many advantages from our employees because they are happy
from company. Our employees are satisfy from our compensation and never downsizing
occurred which shows that well relationship between employees and company.
EMPLOYEES RELATIONSHIP
Employees are the most important assets of every company so it is very

important to give them importance. The satisfaction of the employees makes the company
successful. The reason is that if the employees of the company are satisfied then they will
work hard for the development of the company but if they are not satisfied with the
companys policies and they are not given their rights then they will leave the company
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which can turn into a big loss. So employees relationship is very important for every
company.
Every company has its own policy. We have also got our own policy by
which we give importance to our employees if any employee faces some kind of problem
related to his life or work then he can directly go to the manager and he can share all of
his problems. This thing should be adopted by every company because this makes the
employee satisfied with the company.
We believe that an open door policy is the best policy for employees
relations because due to this, our employees feel very independent and they know that if
they get any problem, they can contact directly to the manager of their department. So
we strongly believe that such policy makes our employees satisfy with us.
Safety Policy
We at office are committed to ensure the maximum level of safety and

prevention of loss for our employees, assets and visitors. We believe in the involvement of
each and every one of us in this effort and realize the importance of every individuals
contribution to safety. We strive for continuous improvement in our safety standards and
to the consistently meet or exceed them. We therefore, will make certain that the
necessary financial and personnel resources are made available in order to continuously
improve our safety standards. With this belief we vow to.
Set our safety standard at a level that ensures compliance with

governmental and company requirements. Protect our employees and ensure public safety
extending throughout our organization.
Integrate sound safety practices in to our daily business operation even in

the absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment, products and
packages taking in to account the associate costs or profit for each safety benefits.
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Ensure each and every one to use in responsible and accountable for our
actions. Establish mechanisms to communicate effectively with employees Consumers and
government on our safety performance. We believe in safety. We adhere to our safety
principles. We deliver.
H R Department Chart
FIGURE NO-2.3
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2.4 Production Functions
Production department
The production department is headed by a factory manager who reports
directly to the Area General Manger (AGM) .one engineer is so far inn side battery limit i.e.
plant equipments and maintenance and the second engineer is for outside battery limits;
Production schedule
The production schedule fixed daily by taking into consideration the market
demand, which also limits the production schedule. The production schedule for each
brand is fixed daily. Production is generally carried out in two shifts. In summer, the
demand its peak and production will be extended 12 hours shifts.
Quality assurance department

The quality assurance department is headed by plant manager. The deputy
manager reports to the plant manager. The department tests and controls the quality of
water, caustic solution and the final beverage. The final beverage is tested for gas and
bricks i.e. the sugar content.
2.5 MARKETING FUNCTION
Sales department
The sales department has a general sales manager and three associates
sales managers. Of the three sales managers, one person is in charges of city sales while
the other looks after district. All of report to AGM directly, Is interacts with sales
department on daily basis and virtually leads the teams.
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District sales
In addition to the sales manager, there is a deputy sales manager, four
assistance sales manager and below the two salesmen each distributor. From the
distributor it reaches the retailer outlet. The company sales force helps the retailer and
distributor achieve their targets promotions and other incentives. The sales forced in far
locations report to the sales manager once in a weak. Based on their reports, new
incentive schemes and offers are made. The previous weeks performance is evaluated
and targets for the next week.
City sales
Under the sales manager (city), there are supervisor, staffs and 113 field
forces. They directly supply to the retailers. There are 30 routes with trunks covering each
route. Each trunk is accompanied by sales man and two sales helpers. There is a sales
officer for every two routes. He moves around on a hike and sees to it that are outlets are
covered. Any urgent messages are communicated to the sales force through mobiles. In
lop areas i.e. Areas where company trunk cannot go, a fat dealer is appointed.
Customer service support system
There is customer service support system (CSSS), which functions under
the CSSS for entire Compnans working area, locally it reports to the AGM. In the industry,
the customer and consumer are defined separately.
Consumer response co-ordination unit (CRC)
The consumer response co-ordination unit has the sales manager the units
temporarily handle by the CSSS. The CRC unit receives complaints and grievance from the
market either through phone calls or through sales force. It sends regular reports to the
corporate office.
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Distribution pattern:
Direct operation
Plant Plant Plant Plant
Indirect operation Area

marketing
Plant C&F Distributo Customer Consumers

r s
Super
stockiest Route
agents
Marketing mix
In the early 1960s, Professor Neil Borden at Harvard business school
identified a no of company performance action that can influence the consumer decision to
purchase goods or services. Borden suggested that all those actions of the company
represented a marketing mix. Professor e. Jerome mc carthy, also at the Harvard
business school in the early 1960s, suggested that the marketing mix contained four
elements: product, price, place, and promotion.
Diagram
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In popular usage marketing is the promotion of products especially advertising

and branding. However in professional usage the term as a wider meaning, which
recognize the marketing is customer cantered. Products often developed to meet the
desires of groups of customers or event, in some cases for specific customers.
The four ps are

The product aspects of marketing deal with the specification of the actual
goods or services and how it relates to the end user needs and wants. The scope of a
product generally includes supporting elements such as warranties, guarantees, and
support.
Price: this refers to the process of setting, a price for a product, including discounts. The
price need not be monetary- it can simply be what exchanged for the product or services
Promotion: this includes advertising, sales promotion, publicity, and personal selling,
branding and refers to the various methods of product, brand, or company,
Place (or distribution): refers to how the product gets to the customer; for example,
point of sale placement or retailing this fourth p generally to the channel by which a
product segment (young adults, families, business people), etc.
These four elements are often referred to as the marketing mix, which a marketer
can use to craft a marketing plan.
2.6 FUTURE PLANS
This report is to investigate Company. On this coursework I will look at the

company on all aspects from their business functions, organizational structures to the
company's objectives. I would have to look at the departments within the business and
the functional areas within these departments, also look at the different management
styles within the business, looking at the organizational structure, the communication
used within the business, and the impact of ICT on the organizations communications.
33
The owners of a limited company are referred to as its members, or

shareholders. An individual can become an owner of the business by purchasing shares in
that business. When the profits of the business are distributed to shareholders, they are
distributed in the form of a dividend. The value of the dividend is decided upon not by the
owners, but by the Directors of the business.
Some shareholders had invested their life savings and not only lost their
money, but their homes, limited liability was designed to protect shareholders from this
mistake, but the key motive was to ensure that large projects could continue to raise
capital.
Mainly all companies' objectives are to survive, maximize their profits and to
expand their business, however, from when product had started, over the years they had
achieved these objectives. So the company has come up with six strategic objectives to
provide the company with a framework for the company's success. Every function of The
Company integrated these priorities into their business plans. And this year, they will
continue to establish these priorities, and their benefits into every aspect of the business.
Corporate citizenship
Our efforts to identify solutions to environmental challenges, we seek the

cooperation of public, private and governmental organizations. We direct our companys
skills, energies and resources toward activities and issues where we are confident of
making a powerful and effective contribution.
We are stewards of brands universally recognized for quality and consistency.

Maintaining an established standard of excellence in our business conduct is essential if we
are to continue to be trusted neighbors in the communities where we do business. Our
efforts towards environmental management exhibit this level excellence at the local,
division, and corporate levels. We will take progressive actions that focus on minimizing
our impact on the environment while striving towards continuous improvement.
34
We act responsibly, doing the right thing with regard to the local and global
environment as we build and nurture strong brands.
As responsible stewards of the environment and our brands, we will take

progressive actions that focus on minimizing our impact on the environment and strive for
continuous improvement.
Our goal is to be environment management leaders in the communities where we

conduct business.
Our activities focus on community involvement based on understanding local and

global environmental issues, leadership on research to provide innovative solutions, and
open and ongoing dialogue on our environmental efforts.
Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.
To refresh the world...
To inspire moments of optimism and happiness...
To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
People: Be a great place to work where people are inspired to be the best they can
be.
Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy peoples desires and needs.
Partners: Nurture a winning network of customers and suppliers, together we create

mutual, enduring value.
35
Planet: Be a responsible citizen that makes a difference by helping build and support
sustainable communities.
Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
Productivity: Be a highly effective, lean and fast-moving organization.
Values
Our values serve as a compass for our actions and describe how we behave
in the world.
Leadership: The courage to shape a better future
Collaboration: Leverage collective genius
Integrity: Be real
Accountability: If it is to be, its up to me
Passion: Committed in heart and mind
Diversity: As inclusive as our brands
Quality: What we do, we do well
Focus on the Market
Focus on needs of our consumers, customers and franchise partners
Get out into the market and listen, observe and learn
Possess a world view
Focus on execution in the marketplace every day
Be insatiably curious
Work Smart
Act with urgency
Remain responsive to change

36
Have the courage to change course when needed
Remain constructively discontent
Work efficiently
Act like Owners
Be accountable for our actions and inactions
Steward system assets and focus on building value
Reward our people for taking risks and finding better ways to solve problems
Learn from our outcomes -- what worked and what didnt
Be the Brand
Inspire creativity, passion, optimism and fun
THE REASONS FOR CHOOSING THE PRODUCT LAY-OUT
There is continuous supply of material.

The brands are all standardized products.
The demand for products brands are reasonable stable.
The volume of production is adequate for the reasonable utilization of equipment.
Due to above reasons the product lay-out offers certain advantages. The
production cycle is speedier up. Since the company follows a continuous movement, the
cost of material handling goes low. The total floor space required by the machine is less
than for other types of plant lay-outs.
PRODUCTION SCHEDULE
The production schedule is fixed by taking into consideration the present or

current market demand, the availability of empty bottles and also the inventory position of
differ flavors.
37
CHAPTER III
THEORETICAL REVIEW
38
3.1 INTRODUCTION TO PERFORMANCE APPRAISAL

Appraising the performance of individuals, groups and organizations are a common
practice of all societies. In some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily
activities. Teachers evaluate the performance of students, bankers evaluate the
performance of creditors, parents evaluate the behavior of their children and all of us,
consciously or unconsciously evaluate our own actions from time to time. In social
interactions, performance is conducted in a systematic and planned manner to achieve
widespread popularity in recent years.
Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and also
the future potential of the employee. Its aim is to measure what an employee does.
Definition
According to Flippo, a prominent personality in the field of Human resources,
"performance appraisal is the systematic, periodic and an impartial rating of an employees
excellence in the matters pertaining to his present job and his potential for a better job."
Performance appraisal is a systematic way of reviewing and assessing the performance of
an employee during a given period of time and planning for his future
Performance appraisal is the systematic description of employees job relevant strength
and weakness. The purpose is to find out how well the employee is performing his job and
establish a plan of improvement. Performance appraisal is arranged periodically according
to a definite plan. Performance appraisal is not job evaluation. Performance appraisal
refers to how well someone is doing the assigned job. Job evaluation determines how
much a job is worth to the organization and, therefore, what range of pay should be
assigned to the job.
3.2 History of Performance Appraisal
Its roots in the early 20th centuary can be traced to taylors pioneering time and
motion studies as a distinct and formal management procedure used in the evaluation of
work performance, appraisal really dates from the time of the second world war- not more
than 60 years ago.
39
Performance appraisal systems began as simple methods of income

justification.that is, appraisal was used to decide whether or not salary or wageof an
individual employee was justified.
The process was firmly linke to material outcomes.if an employees performance
was found to be less than ideal, a cut in a pay would follow. On the other hand, if their
performance wasbetter than the supervisor expected, a pay rise was in order. Little
consideration was given to the developmental possibilities of an appraisal, it was felt that
a cut in pay, or a rise, should provide the only required impetus for an employee to either
improve or continue to perform well.
It was felt that employees with roughly equal work abilities could be provided with
same amount of money, but they had different levels of morale, motivation &
performance. So basically the payment structure was focused on the amount of work
rather than the outcome. Morale and self-esteem was the issue which had a major impact
on the performance of different individuals.
As a result, the traditional emphasis on reward outcomes was progressively
rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool
for motivation and development was gradually recognized. The general model of the
performance appraisal, as it is known today, began from that time.
3.3 Objectives of Performance appraisal
To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior
subordinates and management employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
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To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.
To reduce the grievances of the employees
3.4 Purpose of performance appraisal
1 To create and maintain a satisfactory level of performance
2 To provide fed back.
3 To plan career goals of employees to identify career potential.
4 To provide important data base for management.
5 To fair and equitable compensation based on performance.
6 To identify training & development programmes.
7 To help in promotional decisions.
8 Contribute to employees personal growth and development.
3.5 IMPORTANCE OF PERFORMANCE APPRAISAL
Performance appraisal is an essential and inescapable managerial activity. Appraisal
is necessary for all important decisions relating to people, such as placement and
promotion, remuneration and reward, training and development, as well as long-term man
power planning and organization development. In recent years, efforts have been made to
use appraisal systems for motivation, for more effective communication, for strengthening
superior-subordinate relationships, for goal setting and work planning and for improving
the total performance of the organization. But in spite of its importance, uneasiness about
appraisal has been a long-standing feature of management. There is no doubt during the
past three decades, many developments have taken place and many innovations, have
been made in managerial appraisal system. Still, many issues remain
unresolved. Available literature on the subject reveals than even in the western countries,
where systematic appraisals have been widely practice over a much longer period than in
India and where a fair amount of empirical as well as theoretical research on the relevant
issues has been conducted, serious doubts continue to persist about various aspects of
appraisal.
3.6 Approaches to Performance Development
Performance appraisal - Traditional approach
Traditionally, performance appraisal has been used as just a method for
41
determining and justifying the salaries of the employees. Than it began to be used a tool
for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past
performance of the employees.
This approach was a past oriented approach which focused only on the past
performance of the employees i.e. during a past specified period of time. This approach
did not consider the developmental aspects of the employee performance i.e. his training
and development needs or career developmental possibilities. The primary concern of the
traditional approach is to judge the performance of the organization as a whole by the
past performances of its employees.
Therefore, this approach is also called as the overall approach. In 1950s the
performance appraisal was recognized as a complete system in itself and the Modern
Approach to performance appraisal was developed.
Performance appraisal - Modern approach
The modern approach to performance development has made the performance
appraisal process more formal and structured. Now, the performance appraisal is taken as
a tool to identify better performing employees from others, employees training needs,
career development paths, rewards and bonuses and their promotions to the next levels.
Appraisals have become a continuous and periodic activity in the organizations. The
results of performance appraisals are used to take various other HR decisions like
promotions, demotions, transfers, training and development, reward outcomes. The
modern approach to performance appraisals includes a feedback process that helps to
strengthen the relationships between superiors and subordinates and improve
communication throughout the organization.
METHODS OF APPRAISAL
TRADITIONAL METHODS MODERN METHODS

1. Rating scales 1. Management by objective
2. Checklist 2. 360 degree appraisal
3. Forced choice method 3. Assessment centers
4. Forced distribution method
5. Critical incident method
6. Performance tests and observations
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7. Essay method
8. Behaviorally anchored method
Traditional Methods
1. Rating scales
This is the simplest and most popular technique for appraising employee
performance. The typical rating system consists of several numerical scales, each
representing a job related performance criterion such as dependability initiative,
output, attendance, attitude, co-operation, and the appropriate performance level
on each criterion, and then computes the employees total numerical score. The
number of points scored may be linked to salary increases, whereby so many
points equal a rise of some percentage.
2. Checklist
A checklist of statements on the traits of the employee and his/her job is
prepared in two columns via, a yes column and a No column. All that rater should do
is tick the yes column if the answer to the statement is positive and in column No if
the answer is negative. After Ticking off against each item, the rater forwards the list.
To the HR department where the actual assessment of the employee takes place. The
HR department assigns certain points to each Yes the total score is arrived at. When
points are allotted to the checklist, the technique becomes a weighed checklist.
2. Forced choice method
This approach is known as the forced choice method because the rater is
forced to select the statements, which are readymade. The rater is given a series of
statements about an employee. These statements are arranged in block of two or
more, and the rater indicates, which statement is most or least descriptive of the
employee. As in the checklist method, the rater is simply expected to select the
statements that describe the rate. The HR department does the actual assessment.
3. Forced distribution method
The forced distribution method seeks to overcome the problem by compelling the
rate to distribute the rates on all points on the rating scale. The second method
operated under an assumption that the employee performance level conforms to a
normal statistical distribution. It is assumed that employee performance levels
43
conform to a bell-shaped curve. For example, 10% at the top end of the scale is
excellent, 20% good, 40% average, 20% of the lowest grade is below average.
4. Critical incidents method

The approach focuses on certain critical behaviors of an employee that
make all the difference between effective and non-effective performance of a job.
The superiors as and when they occur record such incidents.
5. Performance tests and observations
With a limited number of jobs, employee assessment may be based upon a
test of knowledge or an actual demonstration of skills. The test must be reliable
and validated to be useful. Even then, performance tests are apt to measure
potential more than actual performance.
6. Essay method
Under this method the supervisor makes a free form, open ended appraisal
of an employee in his own words and puts down his impressions about his
impressions about the employee. The description is always as factual and concrete
as possible. No attempt is made to evaluate an employee in a quantitative manner.
The strength or the
The essay method depends on the writing skills and analytical ability of the
rater. The Essay method can consume much time because the rater must collect the
information necessary to develop the essay and then he/she must write it.
8. Behaviorally anchored rating scales
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which
combines the graphic rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of behavioral statements
describing important job performance qualities as good or bad (for eg. the qualities like
inter personal relationships, adaptability and reliability, job knowledge etc). These
statements are developed from critical incidents.
In this method, an employees actual job behavior is judged against the desired
behavior by recording and comparing the behavior with BARS. Developing and practicing
BARS requires expert knowledge.
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MODERN METHODS
1. Management by Objectives (MBO)
The MBO concept as was conceived by Mr. Drucker reflects a management
philosophy that stress goals rather than methods and which values and utilizes employee
contribution. It is result oriented. Application of MBO in the field of performance appraisal
in four steps:
A. To establish the goals each subordinate is to attain. The goals typically refer to
the desired outcome to be achieved; these goals can then by used to evaluate
employee performance.
B. Setting the performance standard for the subordinated in a previously
arranged time period. As subordinates perform they know fairly well there is
to do, what has been done, and what remains to be done.
C. The actual level of goal attainment is compared with the goals that were not
met upon. The evaluator explores reasons for the goals that were not met and
for the goals that were exceeded. This step helps determine possible training
needs.
D. Establishing new goals and, possibly, new strategies for goals not previously
attained. Subordinates who successfully reach the established goals may be
allowed to participate more in the goal setting process the next time. The
process is repeated.
2. 360 degree appraisal
The 360- degree technique is understood as systematic collection of performance
data on an individual or group, derived from a number of stakeholders. The stakeholders
being the immediate supervisors, team members, customers, peers, and self. Anyone who
has useful information on how an employee does the job may be one of the appraisers. It
facilitates greater self development of the employee. It enables an employee to compare
his/her perceptions about self with perceptions of others. By design, the 360 degree
45
appraisal is effective in identifying and measuring interpersonal skills, customer

satisfaction, and team building skills.
3. Assessment centers
An assessment centre is a central location where managers may come together to
have their participation in job related exercises evaluated by trained observers. The
principle idea is to evaluate managers over a period of time, say one to three days, by
observing their behavior across a series of select exercises or work samples. Assesses are
requested to participate in in-nascent exercise work groups(with leaders), role playing,
and other similar activities, which require the same attributes for successful performance,
as in actual job. Self appraisal and peer evaluation are also throwing in for final rating. The
characteristics assessed in a typical assessment centre include assertiveness, persuasive
ability, communicating ability, planning and organization ability, self confidence, resistance
to stress, energy level, decision making, sensitivity to the feeling of others, administrative
ability, creativity, and mental alertness.
3.7 THE APPRAISAL PROCESS
The appraisal process begins with the establishment of performance standards;
these should have evolved out of job analysis and the job description.
46
STEPS IN APPRAISAL PROCESS
1. Establishing Performance Standards

The first step in the process of performance appraisal is the setting up of the
standards which will be used to as the base to compare the actual performance of the
employees. This step requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their contribution to the
organizational goals and objectives. The standards set should be clear, easily
understandable and in measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the standards.
47
2. Communicating the Standards

Once set, it is the responsibility of the management to communicate the standards
to all the employees of the organization.
The employees should be informed and the standards should be clearly explained to the.
This will help them to understand their roles and to know what exactly is expected from
them. The standards should also be communicated to the appraisers or the evaluators and
if required, the standards can also be modified at this stage itself according to the relevant
feedback from the employees or the evaluators.
3. Measuring the Actual Performance
The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the
specified period of time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not affect the
outcome of the process and providing assistance rather than interfering in an employees
work.
4. Comparing the Actual With the Desired Performance
The actual performance is compared with the desired or the standard performance.
The comparison tells the deviations in the performance of the employees from the
standards set. The result can show the actual performance being more than the desired
performance or, the actual performance being less than the desired performance depicting
a negative deviation in the organizational performance. It includes recalling, evaluating
and analysis of data related to the employees performance.
5. Discussing Results
The result of the appraisal is communicated and discussed with the employees on
one-to-one basis. The focus of this discussion is on communication and listening. The
results, the problems and the possible solutions are discussed with the aim of problem
solving and reaching consensus. The feedback should be given with a positive attitude as
this can have an effect on the employees future performance. The purpose of the meeting
should be to solve the problems faced and motivate the employees to perform better.
6. Decision Making
The last step of the process is to take decisions which can be taken either to
48
improve the performance of the employees, take the required corrective actions, or the
related HR decisions like rewards, promotions, demotions, transfers etc.
3.8 CHALLENGES OF PERFORMANCE APPRAISAL
An organization comes across various problems and challenges Of Performance
Appraisal in order to make a performance appraisal system effective and successful. The
main Performance Appraisal challenges involved in the performance appraisal process are:
Determining the evaluation criteria
Identification of the appraisal criteria is one of the biggest problems faced by the
top management. The performance data to be considered for evaluation should be
carefully selected. For the purpose of evaluation, the criteria selected should be in
quantifiable or measurable terms
Create a rating instrument
The purpose of the Performance appraisal process is to judge the performance of
the employees rather than the employee. The focus of the system should be on the
development of the employees of the organization.
Lack of competence
Top management should choose the raters or the evaluators carefully. They should
have the required expertise and the knowledge to decide the criteria accurately. They
should have the experience and the necessary training to carry out the appraisal process
objectively.
Errors in rating and evaluation
Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait
influencing the evaluators rating for all other traits) etc. may creep in the appraisal
process. Therefore the rater should exercise objectivity and fairness in evaluating and
rating the performance of the employees.
Resistance
The appraisal process may face resistance from the employees and the trade
unions for the fear of negative ratings. Therefore, the employees should be communicated
and clearly explained the purpose as well the process of appraisal. The standards should
be clearly communicated and every employee should be made aware that what exactly is
expected from him/her.
49
ADVANTAGES OF PERFORMANCE APPRAISAL:
They provide a record of performance over a period of time.

They provide an opportunity for a manager to meet and discuss performance with
an employee.
Provide the employee with feedback about their performance and how they
completed their goals.
Provide an opportunity for an employee to discuss issues and to clarify
expectations with their manager.
Offer an opportunity to think about the upcoming year and develop employee
goals.
Can be motivational with the support of a good reward and compensation system.
DISADVANTAGES OF PERFORMANCE APPRAISAL

If not done appropriately, can be a negative experience.
Are very time consuming, especially for a manager with many employees.
Are based on human assessment and are subject to rater errors and biases.
If not done right can be a complete waste of time.
Can be stressful for all involved.
3.9 PERFORMANCE APPRAISAL SYSTEM IN ORGANIZATION
A performance appraisal system plays a vital role in every organization.

Manpower requirements are to be established far beyond the actual requirements. The
present study includes the performance appraisal systems carries out by
Organization The study includes the sources utilize by Organization. The study was going
to be conducted in ORGANIZATIONAL on performance appraisal system.
I find a lot of scope to study my topic in this company. All the environments are
found to be provided well opportunity to me.
To be instrumental in helping employees to better understand their strengths and
weaknesses with respect to their role and functions in the organization
To help in identifying the developmental needs of employees, given their role and
50
function
To increase mutuality between employees and their supervisors so that every
employee feels happy to work with their supervisor and thereby contributes their
maximum to the organization
Supervisors. In this way, each employee gets to know the expectations of their
superior, and each superior also gets to know the difficulties of their subordinates
and can try to solve them. Together, they can thus better accomplish their tasks
To provide an opportunity to each employee for self-reflection and individual goal-
setting, so that individually planned and monitored development takes place
To help employees internalize the culture, norms and values of the organization,
thus developing an identity and commitment throughout the organization
To help prepare employees for higher responsibilities in the future by continuously
reinforcing the development of the behavior and qualities required for higher-level
positions in the organization.
To be instrumental in creating a positive and healthy climate in the organization
that drives employees to give their best while enjoying doing so; and
To assist in a variety of personnel decisions by periodically generating data
regarding each employee.
An ORGANIZATION has its considerable and conscience full ethics towards the
employees and their appraisal system. In this regard ORGANIZATION has
developed a very good system of performance appraisal system with remarkable
constraints like periodic review, a specific appraisal form and many..
QUALITY: ORGANIZATIONs dedication is completely towards achieving high levels of

quality in everything they do to delight customers, internal and external, every time. And
even RESPECT FOR INDIVIDUAL:
It upholds the self esteem and dignity of each other by creating an open culture
conductive for expression of views and ideas irrespective of hierarchy.
HARMONY AND SOCIAL RESPONSIBILITY:
ORGANIZATION take utmost care to protect our natural environment and serve the
communities in which we live and work.
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Key process of appraisal:
Performance planning/goal setting
Performance review-periodic review
Consequence management
Performance planning/goal setting:
Once the business/functional plan is frozen, the superior and the employee should meet to
clarify expectations from their key customers/stakeholders and each other. This input
should be converted into performance goals to be met during the review period.
The goals articulated are not merely a routine set of activities, but ideally should result in
value creation for the organization through either continuously improving or reducing gap in
the existing products, processes and services. To improve organizational performance. The
goals must necessarily incorporate performance stretch i.e., they need to be significantly
higher than the goals of the previous year.
Measurement criteria are for tracking performance against the goals. The
superior/employee are free to freeze the criteria as relevant to their nature of work.
Possible criteria may be quantity (tones produced, units sold), quality, cost, time and
human relations.
The goals can be added/deleted/modified with mutual consent in response to changing

business priorities.
Performance review-periodic review:
HCCBPL follows an performance appraisal form for the purpose of periodic review over the
employee performance which is done periodically by the superior and the form includes:
1) Attributes
2) Overall assessment
Attributes:
52
In this section, the attributes of the employees like job knowledge, Quality of work, Target
achievement, Interpersonal relations, punctuality, integrity & loyalty of organization,
Physical stability, leadership & communication skills are observed and measured with
specified ratings to each employee.
Overall assessment:
Based on the ratings from attributes section and even other constraints the employees is
given with final result of review which results in the decisions of training/development
programs, promotions and even other incentives.
Consequence management:
This is the final part of appraisal process. This is done based on the results of review and
even the appraised employee i.e., his/her feedback. It includes if appraised positively-
rewards and recognition,
If appraised negatively- mentoring, counseling, coaching
The top management and HR manager facilitate this process
53
CHAPTER IV
DATA ANALYSIS
&
INTERPRETATION
54
4. DATA ANALYSIS AND INTERPRETATION
Data analysis and interpretation refers to how the collected from the different
sources and how it is interpreted. The data collected from the primary sources and
secondary sources.
The Primary data are those which are collected afresh and for the first time, and
thus happen to be original in character. The tools for collecting this primary data are by
two types namely Interview Method and Questionnaire Method.
The Secondary data are those which have already been collected by someone else
and which have already been passed through the statistical process in the company.
For collecting the data the sample size taken in the survey is only 70 respondents.
Because lack of time. The technique used for collecting the data is simple random
sampling technique. The statistical tools used in survey are bar charts, pie charts and
tables.
55
1. Existence of Performance Appraisal System
Opinion Pool Respondents Percentage (%)
Yes 60 86
No 10 14
Total 70 100
Table No-4.1
FIGURE NO-4.1.1
INFERENCE:
From the above table, it shows the respondents opinion about existence of
performance appraisal system in the organization. It reveals that 86% of the total
respondents opinioned that the appraisal system existed in the company and 14% of the
56
respondents opinioned that the appraisal system is not existed. So majority of the
respondents opinioned that the appraisal system is existed.
2. The factors for performance appraisal
Opinion pool Respondents Percentage (%)

Excellent 15 22
Good 33 47
Average 12 17
Poor 10 14
Total 70 100
Table No-4.1.2
FIGURE NO-4.1.2
INFERENCE:
From the above table 22% of the respondents opinioned that the factors of
appraisal is excellent, 47% of the respondents opinioned that, the factors of appraisal is
57
good, 17% of the respondents opinioned that, the factors of appraisal is average and 14%
of the respondents opinioned that it is poor.
3. Are You Satisfied With Self Appraisal Or You Prefer

Peers 40 57.1
Performance Review
Committee 20 28.6
Others 10 14.3
Total 70 100
Table No-4.1.3
FIGURE NO-4.1.3
INFERENCE:
58
From the above table 57.1% opinioned that, they prefer peers, 28.6% opinioned that,
they prefer performance review committee and 14.3% opinioned that, they prefer others.
So majority of the respondents opinioned that they prefer peers.
4. The Performance Appraisal Is Done At
Place of work 55 78.5
Any other place 15 21.5
Total 70 100
Table No-4.1.4
FIGURE NO-4.1.4
INFERENCE:
59
From the above table, 78.5% opinioned that, the performance appraisal is done at
the place of work and 21.5% opinioned that, the performance appraisal is done at any
other place in the organization.
5. Awareness of the Performance Appraisal System

Fully aware 30 42.8
Partially aware 20 28.6
Not at all aware 20 28.6
Total 70 100
Table No-4.1.5
INFERENCE
60
From the above table, 42.8% opinioned that, they are fully aware of the performance
appraisal system, 28.6% opinioned that, they are partially aware of the performance
appraisal system and 28.6% opinioned that, they are not at all aware of the performance
appraisal system.
6. Performance Appraisal Is Conducted For Every

3 months 5 7.1
6 months 35 50
9 months 5 7.1
1 year 25 35.8
Total 70 100
Table No-4.1.6
INFERENCE
From the above table, 7.1% opinioned that, the performance appraisal is conducted for
every 3 months, 50% opinioned that, the appraisal is conducted for every 6 months, 7.1%
61
opinioned that, the appraisal is conducted for every 9 months and 35.8% opinioned that,
the appraisal is conducted for every 1 year most of the
7. Relationships with Peers, Superiors and Subordinates
Yes 60 86
No 10 14
Total 70 100
Table No-4.1.7
INFERENCE
62
From the above table, 86% opinioned that, the interpersonal and team relationships
with peers, superiors and subordinated is satisfactory and good and 14% opinioned that,
the interpersonal and team relationships with peers, superiors and subordinated is not
satisfactory.
8. Feedback Is Communicated By the Appraise

Immediately after
completion 15 21.4
Within 15 days 35 50
More than a month 15 21.4
Not communicated 5 7.2
Total 70 100
Table No-4.1.8
INFERENCE
63
From the above table, 21.4% opinioned that, the feedback is communicated
immediately after completion, 50% opinioned that, the feedback is communicated within
15 days, 21.4 % opinioned that, the feedback is communicated more than a month and
7.2% opinioned that, the feedback is not communicated.
9. Feedback Is Communicated In the Form Of
Opinion Respondents Percentage (%)
Oral 22 31.4
Written 48 68.6
Total 70 100
Table No-4.1.9
64
INFERENCE
From the above table, 31.4% of the respondents opinioned that, the feedback is
communicated in oral form and 68.6% opinioned that, the feedback is communicated in
the written form.
10.By Whom the Feedback Is Communicated

Concerned controlling
officer 20 28.6
Superior 45 64.3
Any other manager 5 7.1
Total 70 100
Table No-4.1.10
INFERENCE
65
From the above table, 28.6% of the respondents opinioned that, the feedback is
communicated by the concerned controlling officer, 64.3% opinioned that, the feedback is
communicated by the superior and 7.1% opinioned that, the feedback is communicated by
any other manager.
11.To Whom the Self Appraisal Report Should Submit
Your superior 23 32.9
Any controlling officer 47 67.1
Total 70 100
Table No-4.1.11
66
INFERENCE
From the above table, 32.9% of the respondents opinioned that, the self appraisal
report should submit to the superior and 67.1% opinioned that, the self appraisal report
should submit to any controlling officer.
12. Performance Appraisal Based On Well Defined Objective Criteria
Yes 40 57
No 30 43
Total 70 100
Table No-4.1.12
67
INFERENCE
From the above table, 57% of the respondents opinioned that, the appraisal is based
on well defined objective and 43% opinioned that, the appraisal is not based on the well
defined objective .
13.The Appraisal Is Based On Job Analysis
Kind Of Opinion Respondents Percentage (%)
Yes 12 17
No 58 83
Total 70 100
Table No-4.1.13
68
INFERENCE
From the above table, 17% of the respondents opinioned that, the appraisal is based
on job analysis and 83% opinioned that, the appraisal is not based on job analysis.
14.Necessary for Performance Appraisal
Yes 70 100
No 0 0
Total 70 100
Table No-4.1.14
INFERENCE
69
From the above table it shows all the respondents opinioned that, the appraisal is
necessary for the organization.
15.Publicity To The Performance Appraisal By The Organization
Yes 45 64
No 25 36
Total 70 100
Table No-4.1.15
INFERENCE
70
From the above table, 64% of the respondents opinioned that, the performance
appraisal publicity is given by the organization and 36% opinioned that, the publicity is not
given.
16.Effectiveness of Present Performance Appraisal System
Yes 35 50
No 35 50
Total 70 100
Table No-4.1.16
INFERENCE
71
From the above table, 50% of the respondents opinioned that, the present
performance appraisal system is effective and 50% of the respondents opinioned that, the
present appraisal system is not effective.
17.Performance Appraisal Regarding Promotions Should Be Based On
Only seniority 20 28.6

Only merit 10 14.3
Both merit & seniority 40 57.1
Total 70 100
Table No-4.1.17
72
INFERENCE
From the above table, 28.6% of the respondents opinioned that, the appraisal
regarding promotions is based on only seniority, 14.3% opinioned that, the appraisal
regarding promotions is based on only merit and 57.1% opinioned that, the appraisal
regarding promotions is based on both merit and seniority.
73
CHAPTER V
SUMMARY & SUGGESTIONS
74
5.1 SUMMARY
This project is entitled with 5 chapters which are as follows:

The first Chapter deals with introduction need for the study, objectives,
methodology and limitations. In this chapter on need for the study deals with, a good
system of performance appraisal and feedback is needed by organization that wants to be
dynamic and growth orientd. There should no difference of opinion between the review
and appraisal employees. The feedback plays a major role in the process of
communication between the superior and the subordinate.
Objective of the study is to understand the practical problems in implementing the
procedure and to make employee realize his or her full potential. And establish and
maintain productive, self respecting and internally satisfying working relationships among
all the members of the origin.
Methodology of the study, sample size is 70 and data collection of the study are
primary and secondary data. The technique used was simple random technique. the
instruments for collecting primary data are personal interview and questionnaire.
Limitations of the study is it may not be possible to cover in depth because of the period is
limited
The second Chapter deals with the industry profile and its business lines in different
fields. The ORGANIZATION got succeed in whatever it entered with awards and milestones
of successful journey as a symbol of its achievements. The group even more serious and
considerable its responsibilities as a social organization with CSR activities.
Refreshing the world through sports. The Company continues its long standing
association with athletic events including the Olympic Games and the FIFA world cup. The
l990s were a time of continued growth for The Company. The Companys long association
with sports was strengthened during this decade, with ongoing support of the Olympic
Games, FIFA World CupTM foot ball (soccer), Rugby World Cup and the National Basketball
Association. connecting the brand with one of the worlds fastest growing and most
popular spectator sports. New beverages joined the Companys line-up, including
75
Financial functions involves function of financial department, sources of finance,

financial structure and stores, shipping etc.. HR functions involves planning and
forecasting, job analysis, recruitment procedure, training and development, compensation
benefits employee relationships, safety policy. Production function involves the functions of
production department, production schedule, quality assurance department. Marketing
functions involves the functions of sales department, advertising, marketing mix
decisions, distribution channels, customer relationship management.
The third Chapter deals with the review literature and the procedure of
performance appraisal system in ORGANIZATION. The review literature deals with the
main aspects of performance appraisal of the employees and how it would motivate the
employees and it helps in both the individual and organizational development.
The performance appraisal system in ORGANIZATION. ltd is very good and

satisfactory by the employees.
The fourth chapter deals with the data analysis and interpretation. The data is
interpreted based on the samples collected from the employees in the organization. The
data analysis deals with the company whether the employees are satisfied with the
procedure or to make any changes in the present appraisal system and the necessary
chages are suggested to the organizations.
The fifth chapter deals with the summary of the project report and findings and
suggestions basing on the study.
5.2 FINDINGS
1. It observed that 86% of the respondents opinioned on the performance appraisal

system existence in the organization, where as 14% of the respondents opinioned
on the appraisal system non existence. Therefore majority are considering the
existence of appraisal system.
2. It observed that 22% of the respondents opinioned on the factors of appraisal was
excellent, 47% of the respondents opinioned that, the factors of appraisal was
good, 17% of the respondents opinioned that, the factors of appraisal was average
76
and 14% of the respondents opinioned that was poor. Hence it can conclude that
the appraisal system is up-to the mark.
3. It observed that 57.1% opinioned on the preference to peers, 28.6% opinioned
that, they prefer performance review committee and 14.3% opinioned that, they
prefer others. Hence it can conclude that majority are preferring the peer on
appraisal.
4. It can observed that 78.5% opinioned on the performance appraisal was done at
the place of work and 21.5% opinioned that, the performance appraisal was done
at other place in the organization.
5. It can analysed that 42.8% opinioned were fully aware of the performance
appraisal system, 28.6% opinioned that, they were partially aware of the
performance appraisal system and 28.6% opinioned that, they were not at all
aware of the performance appraisal system. Hence it can said that majority are
having awareness.
6. 7.1% opinioned that, the performance appraisal is conducted for every 3 months,
50% opinioned that, the appraisal is conducted for every 6 months, 7.1%
opinioned that, the appraisal is conducted for every 9 months and 35.8%
opinioned that, the appraisal is conducted for every 1 year.
7. 86% opinioned that, the interpersonal and team relationships with peers,
superiors and subordinated is satisfactory and good and 14% opinioned that, the
interpersonal and team relationships with peers, superiors and subordinated is not
satisfactory .
8. 21.4% opinioned that, the feedback is communicated immediately after

completion, 50% opinioned that, the feedback is communicated within 15 days,
21.4 % opinioned that, the feedback is communicated more than a month and
7.2% opinioned that, the feedback is not communicated.
77
9. 31.4% of the respondents opinioned that, the feedback is communicated in oral

form and 68.6% opinioned that, the feedback is communicated in the written
form.
10. 28.6% of the respondents opinioned that, the feedback is communicated by the
concerned controlling officer, 64.3% opinioned that, the feedback is communicated
by the superior and 7.1% opinioned that, the feedback is communicated by any
other manager.
11. 32.9% of the respondents opinioned that, the self appraisal report should submit
to the superior and 67.1% opinioned that, the self appraisal report should submit
to any controlling officer.
12. 57% of the respondents opinioned that, the appraisal is based on well defined
objective and 43% opinioned that, the appraisal is not based on the well defined
objective .
13. 17% of the respondents opinioned that, the appraisal is based on job analysis and
83% opinioned that, the appraisal is not based on job analysis.
14. All the respondents opinioned that, the appraisal is necessary for the organization.
15. 64% of the respondents opinioned that, the performance appraisal publicity is
given by the organization and 36% opinioned that, the publicity is not given.
16. 50% of the respondents opinioned that, the present performance appraisal system
is effective and 50% of the respondents opinioned that, the present appraisal
system is not effective.
17. 28.6% of the respondents opinioned that, the appraisal regarding promotions is
based on only seniority, 14.3% opinioned that, the appraisal regarding promotions
78
is based on only merit and 57.1% opinioned that, the appraisal regarding
promotions is based on both merit and seniority.
79
5.3 SUGGESTIONS
1. Only few respondents opinioned that the appraisal factors are excellent. So the
organization needs to consider good factors for appraisal.
2. The organization need to consider 360 degree appraisal system because they
prefer more to the peers.
3. For every organization the awareness of performance appraisal is important. So
the organization needs to create 100% awareness about performance appraisal
system.
4. The performance appraisal should be conducted based on the well defined
objective.
5. Job analysis is one of the dominant factors for appraisal so the organization need
to give more importance for job analysis while conducting appraisal.
6. The organization has to increase efficiency of system by establishing the good
standards for performance appraisal.
7. The feedback plays a major role in the process of communication between the
superior and the subordinate. So that the organization need to provide
immediate feedback to its employees.
80
5.4 CONCLUSION
At lastly I would like to draw my conclusion in this topic performance appraisal

system. It is one of the crucial issues where employees expect good results which lead to
high satisfaction.
This appraisal even acts as a feedback system, which plays a major role in the
development of the organization through erasing the communication barriers between the
superior and the subordinate. In the present scenario system brings up the organization
with rich productivity.
A good system of performance appraisal comes out through perfect rating of the
employees and their feedback for the given rating. The system should work so the things
to be done through the people.
Any Organization occupied a prominent position in the industry in its products and it
has been achieving its objectives despite of obstacles faced and stood at a good position
with a perfect vision.
The employees of Any Organization are satisfied with the system of appraisal followed
there, because of its concern and consideration towards the employees by the
management.
Finally I conclude my topic performance appraisal , the work and the related issues
were drastically changed when compared to the past.
Performance appraisal is a sensitive issue because it not only appraisal for the
achievers but also punishments and warnings to the low contributors. Everything done by
the organization should be accepted the employees and even make the perceive that it is
done for the good sake of employees. This factor is quite crucial for any organization to
achieve its objectives.
81
BIBLIOGRAPHY
82
BIBLIOGRAPHY
BOOKS
1. DR. P. SUBBA RAO Essentials of Human Resource Management And
industrial relations, Himalaya publishing house, 3rd revised edition, Mumbai 1999.
2. K. ASWATHAPPA Human Resources and Personnel Management,Mc Graw

Hill edition, New Delhi, revised edition, 2007.
3. R.S. DWIVEDI Human Resources and Personnel Management,

Galgotia Publishing Company, New Delhi, revised edition, 2008.
4. V.S.P. RAO Human Resource Management, excel books, New Delhi,

edition, 2005.
5. Kothari Research methodology.
READING MATERIALS
1. Annual records and reports of the coca cola company.
2. Previous project records at the company.
WEBSITES
1. www.Google.com
2. www.BBIPLINFRA.com
83
ANNEXURES
84
QUESTIOINNAIRE
Respected Sir/madam,
I am Y.LALITHA KUMARI studying M.B.A, 3rd semester with HR

specialization in AITAM SCHOOL OF COMPUTER SCIENCES AND MANAGEMENT, Tekkali. I
will sure that the information provided by you can be kept as confidentially and it is only
for my academic purpose. So please cooperate with me.
NAME:
AGE:
DESIGNATION:
DEPARTMENT:
MONTHLY INCOME:
EXPERIENCE:
1. Is there any performance appraisal system existing in your organization?

A. YES
B.NO
2. The criteria/factors for performance appraisal are
A. Excellent
B. Good
C. Average
D. Poor
3. If you are above the supervisory cadre, are you satisfied with self appraisal or you
prefer
A. Peers
B. Performance Review Committee
85
C. Others
4. Where the performance appraisal is made?

A. Place of work
B. Any other place in the organization
5. Awareness of performance appraisal system
A .Fully Aware
B .Partially Aware
C. Not at all Aware
6. Performance appraisal are usually conducted every
A. 3 months
B. 6months
C. 9 months
D. 1 year
7. Interpersonal and team relationship with peers, superior and subordinates are
Satisfactory and good?
A .YES B .NO
8.Feedback is communicated to the appraise
A. Immediately after completion
B. within 15 days
C. More than a month
D .Not communicated
9. Feedback is communicated in which form
A. Oral
B. Written
10.The feedback in appraisal, if communicated, by whom it is done?
A. Concerned controlling officer
B. Superior
C. Any other manager
11.If you are above the supervisory cadre, to whom you will submit the self appraisal
report?
A .Your superior
86
B .Any controlling officer
12.Is the performance appraisal based on well defined objective criteria?

A. Yes
B. No
13.Is the appraisal based on job analysis?
A. Yes
B. No
14.Is the performance appraisal necessary for the organization?
A. Yes B. No
15.Has the performance appraisal given wide publicity in the organization?
A .YES B .NO
16. Present performance appraisal is effective?
A .YES B .NO
17.Performance appraisal regarding promotions should be based on?
A.Only Seniority
B.Only Merit
C. Both Merit and Seniority
87

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Performance Appraisal

A STUDY ON PERFORMANCE APPRAISAL

A project report submitted to JNT University, Kakinada in partial

DEPARTMENT OF MANAGEMENT STUDIES

AITAM SCHOOL OF COMPUTER SCIENCES AND MANAGEMENT

AITAM SCHOOL OF COMPUTERSCIENCES AND MANAGEMENT

DEPARTMENT OF MANAGEMENT STUDIES

This is to certify that the project entitled on PERFORMANCE APPRAISAL with

(DR. D. VISHNU MURTHY) (MR. SAUMENDRA DAS)

I am very thankful to the entire team of HINDUSTAN COCA COLA BEVERAGES

I am extremely grateful to Mr. N.V.S RAMANA MURTHY (HR MANAGER) for

I express my sincere gratitude to DR. D.VISHNUMURTY, Principal of ASCAM for

YAVVARI LALITHA KUMARI

I hereby declare that this project entitled PERFORMANCE APPRAISAL WITH

YAVVARI LALITHA KUMARI

CHAPTER 1: 1.1 INTRODUCTION OF THE STUDY 10

CHAPTER 2: AN OVERVIEW OF CRONIMITE

CHAPTER - 3: THEORETICAL FRAMEWORK

CHAPTER - 5: SUMMARY, FINDINGS AND SUGGESTION

1.1 INTRODUCTION OF THE STUDY

Performance appraisal is the process of evaluating the performance and

A performance of a job in terms of its requirements observes, it is the process of

Importance of performance appraisal:

Creating and maintaining the satisfactory level of performance of employees in

1.3 OBJECTIVES OF THE STUDY

1. To study and analyze different performance appraisal schemes provided by

1.4 METHODOLOGY OF THE STUDY:

According to Redman and Mory, Research is a systematized effort to gain new

2. Questionnaire : The questionnaire comprises of open ended questions and closed

STATISTICAL TOOLS USED

1.6 LIMITATIONS OF THE STUDY

2.1 ORGANIZATIONAL STRUCTURE

Organization Structure and Management

Organization structure can be defined as the relationship existing among the

SL. No. Description N.of employees

1 General Manager (Finance) 1

3 Marketing Dept Manager 1

4 Territory Dept Manager 4

7 Asst. Personal manager 1

19 Computer cum Telephone Operator 12

22 Sweepers & Helpers

Head Head AVP Managing Head Head Head

Manager Manager Manager Manager

Asst. Asst. Manager

Sales Executives Manager

2.2 FINANCIAL FUNCTIONS

Matters like recruitment, selection. Wage structure, etc is decided at office.

Human Resource Management is an essential part for any organization.

Job analysis and designing

Our recruitment process

Presentations give you the chance to show your ability to communicate to a

Role Plays/Situational Exercises

Designed to assess how you react in certain situations, these help to

Training process of employees

Training process is essential part of every employee without training,

HR appraise the employee due to their performance about goals of the

Compensation and benefits

Employees are the most important assets of every company so it is very

We at office are committed to ensure the maximum level of safety and

Set our safety standard at a level that ensures compliance with

Integrate sound safety practices in to our daily business operation even in

2.4 Production Functions