1.

0 Introduction

Performance appraisal is a formal system that evaluates the quality of an employee’s

performance. An appraisal should not be viewed as an end in itself, but rather as an
important process within a broader performance management system that links:

 Organizational objectives
 Day to day performance
 Professional development
 Rewards and incentives

In simple terms, appraisal may be understood as the assessment of an individual’s

performance in a systematic way, the performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership abilities,
supervision, dependability, cooperation, judgment, versatility, health and the like.
Assessment should not be confirmed to past performance alone. Potentials of the
employee for future performance must also be assessed.

In this assignment, I choose the performance appraisal of the coca cola company
headquarters in the US for evaluation in the year of 2000.

1.1 Background

Coca-Cola was invented by Atlanta pharmacist, John Stith Pemberton in 1886,

since that time The Coca-Cola Company has grown to represent over 400 different
brands in 200 countries. Coca-Cola Ltd. (CCL) is responsible for developing and
marketing the brands of The Coca-Cola Company, and various other brands, to
consumers in Canada, and for the protection of trademarks here in Canada. CCL is a
subsidiary of the Coca-Cola Company, the world’s leading Beverage Company, with
worldwide headquarters in Atlanta, Georgia. In addition, Coca-Cola Ltd. owns and
operates The Minute Maid Company Canada Inc.

Coca-Cola Bottling Company (CCBC) is the local primary Canadian bottler

responsible for manufacturing, sales and distribution of most Coca-Cola brands in
Canada. CCBC is a division of Coca-Cola Enterprises, the world’s largest Coca-Cola
bottler. The two partner organizations, CCL and CCBC, represent one beverage
provider ‘system’ which collectively employs over 5,000 people across Canada.

Coca-Cola beverages have been sold and distributed in Canada for more than
one hundred years. In 1906, the first Canadian-made Coca-Cola bottles came off the
production line at 65 Bell woods Avenue in Toronto. Today, the Coca-Cola system in
Canada has seven production plants and employs approximately 5,500 employees in
more than 60 sales centres and satellite locations in all 10 provinces.

The Coca-Cola Company is a vibrant network of people, in more than 200

countries, putting citizenship into action. Through actions as local citizens, the
company strives every day to refresh the marketplace, enrich the workplace, protect
the environment and strengthen the communities.

1.2 Nature of business

The Coca Cola is a beverage company, manufacturer, distributor, and

marketer of non-alcoholic beverage concentrates and syrups. Besides its namesake
Coca-Cola beverage, Coca-Cola currently offers more than 400 brands in over 200
countries or territories and serves 1.6 billion servings each day. It principally offers
sparkling and still beverages. The company's sparkling beverages include non-
alcoholic ready-to-drink beverages with carbonation, such as energy drinks, and
carbonated waters and flavoured waters. Beverages consist of non-alcoholic
beverages without carbonation, including non-carbonated waters, flavoured waters
and enhanced waters, juices and juice drinks, teas, coffees, and sports drinks.

The Coca-Cola Company also offers fountain syrups, syrups, and concentrates,
such as flavouring ingredients and sweeteners. The company markets its non-
alcoholic beverages under the Coca-Cola, Diet Coke, Fanta, and Sprite brand names.
The Coca-Cola Company also owns mineral water brands Kinley. Coca-Cola serves
across the world including names such as Coca-Cola, Diet Coke, Sprite, Fanta,
Thumps Up, Limca, Maaza and Kinley (packaged drinking water).
1.3 Mission and Vision

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 people’s desires and needs.

• Partners: Nurture a winning network of customers and suppliers, together

we create mutual, enduring value.

• 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.

1.4 Organization Objective

 The aim and objective of Coca-Cola Enterprises is to be the best beverage
sales and customer Service Company. To us 'best' means being the number
one or second brand in every category in which we compete, being our
customers most valued supplier and establishing a winning and inclusive
culture.

2.0 Description on the processes of the performance appraisal

2.1 Establishing standards and measures

The first step is to identify and establish measures which would differentiate
between successful and unsuccessful performances. These measures should be
under the control of the employees being appraised. The methods for assessing
performance should be decided next. Basically, management wants to:
 know the behaviour and personal characteristics of each employee; and
 assess their performance and achievement in the job.

Examples:-
a) Introduction: Why we are here today?
b) What do our internal customers expect from us?
c) What does the business stakeholders expect from us?
d) How do we measure our how effective we are?

2.2 Communicating job expectations

The second step in the appraisal process is communicating to employees the

measures and standards which will be used in the appraisal process. Such
communication should clarify expectations and create a feeling of
involvement.

Examples:-
 a) What task the individual is expected to do?
b) How well the individual has done the task?
c) How can his performance be further improved?
d) Reward for doing well?

2.3 Planning

In this stage, the manager plans for the realization of performance expectations,
arranging for the resources to be available which are required for attaining the
goals set. This is an enabling role.

Examples:-
a) Is more concerned with being organized than getting the job done?
b) Is always able to access needed items or information?
c) Organizes for the short term or the long term or both?

d) Is typically well ahead of plan when it comes to progress and

performance?

2.4 Monitoring performance

Performance appraisal is a continuous process, involving ongoing feedback.

Even though performance is appraised annually, it has to be managed 'each
day, all year long.' Monitoring is a key part of the performance appraisal
process. It should involve providing assistance as necessary and removing
obstacles rather than interfering. The best way to effectively monitor is to
walk around, thus creating continuous contacts, providing first-hand
information, and identifying problems, which can then be solved promptly.

Examples:-
a) how they work as a team member
b) how they work with customers
c) how they deal with problems
d) how they deal with change
2.5 Appraising

This stage involves documenting performance through observing, recalling,

evaluating, written communication, judgment and analysis of data. This is like
putting together an appraisal record.

Examples:-
a) Quality of work (accuracy, thoroughness, effectiveness)
b) Quantity of work (competence and efficiency of work regardless of
volume. Neatness and accuracy)
c) Teamwork (establishes and maintains effective working relationship with
others. Shares information and resources with others. Follows instructions
of supervisor and respond to requests from others in the team in a helpful
manner. Contributing work and effort to group performance to meet
agreed upon objectives and achieve team success)
d) Job knowledge (application of appropriate level of technical and
procedural knowledge in specific field. Degree of technical competence.
Understanding of job procedures, methods, facts and information related to
assignments. Perform duties with minimal supervision but seek guidance
where and when appropriate to the job, consults the appropriate staff)

2.6 Feedback

After the formal appraisal stage, a feedback session is desirable. This session
should involve verbal communication, listening, problem solving, negotiating,
compromising, conflict resolution and reaching consensus.

Examples:-
a) Positive Feedback (reflects a high level of discipline and punctuality and
always shows up on time at work. Displays an excellent example to other
employees through punctuality)
b) Positive Feedback (has got strong work ethics and sets an example with his
perfect attendance. Is very particular about the attendance of his team
members as well, which contributes to the productivity levels of the team,
and the organization)
 c) Negative Feedback (takes more breaks than permitted as per the office
rules, which affects the working hours leading to lesser productivity.
Should manage work and minimize the break timings)
d) Negative Feedback (the performance has gone down in the past few
months. Realizing the efficiency displayed in the past, the organization
would help in every possible way to see productivity in the future)

2.7 Decision making

On the basis of appraisal and feedback results, various decisions can be made
about giving rewards (e.g., promotion, incentives, etc.) and punishments (e.g.,
demotion). The outcome of an appraisal system should also be used for career
development.

Examples:-
a) Able to make the correct judgments of the situation and figure out the right
solution
b) Decisive among multiple solutions to select the most suitable solution for
the problem
c) Responsible and ready to help and motivate other colleagues to have a
good performance
d) Cool and relax under critical situations that demands the situation on
objective basis

2.8 Development of performance

The last stage of performance appraisal is 'development of performance,' or

professional development, by providing opportunities for upgrading skills and
professional interactions. This can be done by supporting participation in
professional conferences or by providing opportunities for further study. Such
opportunities can also act as incentives or rewards to employees.

Examples:-
a) Tie to anticipated needs in the employee's current position
b) Focus on opportunities outside the current role
 c) Look at the organization's anticipated needs
d) Focus on the employee's strengths, talents, and interests separately from
the current position

3.0 Suggestion on the best performance appraisal model

Determining the best appraisal method or form to use depends on the objectives of the
organization. A combination of the methods and forms is usually superior to any one
used by itself. For developmental objectives, the critical incidents, MBO, and
narrative methods work well. For administrative decisions, a ranking method based on
the evaluative methods and especially graphic rating scale or BARS forms works well.
In my opinion, the best performance appraisal model is 360 degree feedback because
they prefer more to the peers.

3.1 Goals and objectives of the model

The goals and objectives of the 360 degree feedback model are to improved
performance of the organization as follows:

 Effective communication of organization’s objectives and values.

 Increased sense of cohesiveness and loyalty.
 increased awareness of:- managers performance/work-related behaviours / co-
workers expectations of managers
 improved self-perception accuracy and improved attitude towards work
 improved informal communication and feedback
 Improved performance and skill improvement Improved overview of tasks
performed by each member of a group.
 Identification of ideas for improvement.

3.2 Job structure

 A job structure refers to a form all of the job requirement and responsibilities,
also contains the future perspective job activities. The sequence of job
description form is mentioned below:

 Job identification and job details

 Job summary
 Duties to be performed
 Immediate manager and supervision & received

3.3 Type of performance measurement

Performance measurement must be transparent, short, medium and long term.

The best method of measuring performance appraisal is to identify the
strengths and the weaknesses of employees and to encourage them to improve
their performance on the job and that is the annual performance review.
However, it has been noticed that the skill assessing criteria must have 4 to 5
fields (Interpersonal skills, technical skills and capabilities in relative to
department management) with numeric rating range having top to bottom
levels. Hence, annual review system is the best method for performance
measurement.

3.4 Determination of the relevant content

A 360 degree appraisal typically contains these column headings or fields, also
shown in the example below:

 Key skill/capability type (example:- communications, planning,

reporting, creativity and problem solving, etc - whatever the relevant
key skills and capabilities are for the role in question).

 Skill component/element (example: - 'active listening and

understanding' [within a 'communications' key skill], or 'generates
 ideas/options' [within a 'creativity/problem solving' key skill]). The
number of elements per key skill varies - for some key skills there
could be just one element; for others there could be five or six, which
I'd recommend be the maximum. Break down the key skill if there are
more than six elements - big lists and groups are less easy to work with.

 Question number (purely for reference and ease of analysis)

 Specific feedback question (relating to skill component, example: -

does the person take care to listen and understand properly when
you/others are speaking to him/her? [for the active listening skill])

 Tick-box or grade box (ideally a,b,c,d or excellent, good, not good,

poor, or rate out of 5 or 10. Clarification and definitions of ratings
system to participants and respondents is crucial, especially if
analysing or comparing results within a group, when obviously
consistency of interpretation of scoring is important)

3.5 Established performance appraisal policies and procedures

Formulating employee performance policies and procedures to suit

organizational needs can be challenging. Many questions arise, such as how to
avoid discrimination, how to improve performance and how to conduct the
actual appraisals. The performance standards set should be:

 Based on the position/grade, not the individual

 Observable, specific indicators of success
 Meaningful, reasonable and attainable
 Expressed in terms of Quantity, Quality, Timeliness, Cost-efficiency,
Safety, or Outcomes
4.0 Evaluation of Coca Cola Performance Appraisal

Coca cola performance appraisal is annually. They appraise the employee due to their
performance about goals of the organization. They set the goals at the start of the year
and tell the employees about the goal if the employees achieve this goal they appraise
the employees.

The performance appraisal process contains three steps:

1. Define the job:

Means making sure that you and your sub ordinate agree on his or her duties and job
standard.

2. Appraise the performance:

Means comparing your subordinate's actual performance to the standards that have
been set.

3. Provide feedback:

Means discuss the subordinate performance and progress, and make plans for any
development required.

The findings were followed by a detailed performance appraisal, which led to the
resignation of 70 managers during the period, July-November 2000. After adopting
Performance Appraisal System following changes were made in the organization:

(i) The top management decided to provide necessary training to the employees
so that they can adapt to the new culture.

(ii) The company focussed on hiring new managers to compensate for loss of
manpower due to resignation and making the recruitment and selection
process more effective.
 (iii) The top management decided to make performance appraisal an integral part
of performance management.

Following the lawsuit on June 7, 2001, the United States District Court for the
Northern District of Georgia; Settlement Agreement in Ingram, et al. v. The Coca-
Cola Company (Case No. 1-98-CV-3679 (RWS)), the Coca-Cola Company has
adapted Total Quality Management in its performance management system.

5.0 Suggestion

1. The Coca Cola Company should consider using 360 degree feedback appraisal
system as they more to peers.
2. For every organization the awareness of performance appraisal is important. So the
organization needs to create 100% awareness about performance appraisal system.
3. The performance appraisal should be conducted based on the well defined objective.
4. Job analysis is one of the dominant factors for appraisal so the organization needs to
give more importance for job analysis while conducting appraisal.
5. The organization has to increase efficiency of system by establishing the good
standards for performance appraisal.

6.0 Summary

Performance appraisal is essential for a firm that need manage its human resources
effectively in order to reduce costs and maximize profits. Firms that want to maintain
high morale will also ensure that their employees feel appreciated and motivated .The
number of organizations using performance appraisals as a managerial tool necessary
for facilitating the performance levels necessary to achieve the company’s mission
and strategies is on the increase. Many companies are just now realizing what an
effective tool a performance appraisal can be. They have begun to emphasize the
correct use of performance appraisals in their organizations for the betterment of the
company. Employees are likely to be motivated to achieve such recognition. But the
firm must have devices for ensuring accurate measurement that employees have
confidence in and which allow the firm to make fair judgments regarding their use
and future needs of human resources.
 (2,800 words)

7.0 References

 www.coca-colacompany.com *Online research

 Einstein, W. O., & LeMere-Labonte, J. 1989. Performance appraisal: dilemma or

desire? Sam Advanced Management Journal, 54 (2):26-30. *Online research

 Monga, M. L. 1983. Management of Performance Appraisal. Bombay: Himalaya

Publishing House.

 Oberg, W. 1972. Make performance appraisal relevant. Harvard Business Review,

January-February 1972: 61-67. *Online research

 Patten, T. H., Jr. 1982. A Manager's Guide to Performance Appraisal. London: Free
Press.

 Rao, T. V. 1985. Performance Appraisal Theory and Practice. New Delhi: Vikas
Publishing House.

 Miller, C.E. & Thornton, C.L. (2006). How accurate are your performance appraisals?
Public Personnel Management, 35, (2), 153-155.

 Mujtaba, B. G. (2008). Coaching and Performance Management: Developing and

Inspiring Leaders. ILEAD Academy Publications; Davie, Florida, USA. *Online
research

 Mujtaba, B. G., (2007). Mentoring diverse professionals (2nd edition). ILEAD

Academy, Davie, Florida. *Online research
 Riverbark, L. (2006). Performance: Creating The Performance-Driven Organization.
HR Magazine, 51, (12), *Online research