A

SUMMER TRAINING PROJECT REPORT

ON

EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM

TOWARDS “DABUR INDIA LTD.”

Submitted to

Dr A P J Abdul Kalam Technical University, Lucknow

In the partial fulfillment of the requirement for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

(2017-2019)

Under the guidance of: Submitted By:

PARTHO GANGULY Mansi Tyagi
HR, Manager M.B.A- IIIrd Sem.
Dabur India Ltd. Roll No– 1703370016
(Uttar Pradesh)

Raj Kumar Goel Institute of Technology

Department of Management Studies
(ISO: 9001: 2015 Certified) 5th KM. STONE, DELHI-MEERUT ROAD, GHAZIABAD
(U.P)-201003

1
 Date: ……………….

TO WHOM SOEVER IT MAY CONCER

This is to certify that Ms. MANSI TYAGI is a bonafide student of MBA 2nd year of this

institute for the session 2018-2019 and he/she has undergone the summer training in Dabur

India Ltd. organization and prepared Summer Training Project Report titled

“EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM” for partial fulfillment

of Master of Business Administration (MBA) affiliated to Dr A P J Abdul Kalam Technical

University, Lucknow.

I wish him/her all the best for his/her future endeavors.

Dr. Vibhuti
Professor and Head
(Department of Management Studies)

2
 DECLARATION

I MANSI TYAGI D/o Mr. Manoj Kumar Tyagi am pursuing Master of Business
Administration (MBA) 2nd year from Raj Kumar Goel Institute of Technology , Ghaziabad in
the session 2018-19. I hereby declare that this summer training research project report titled
“EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM” is the outcome of my
own effort at organization Dabur India Ltd. under the guidance of Mr PARTHO
GANGULY designation. The same report has not been submitted earlier to any Institute/
University for awarding any degree/ diploma of MBA or any other professional course. If there
will be any violation of IPR, I will be solely responsible to that and Institute/ University has
right to cancel my degree.

Date: ………………… Sign with Full Name

Place: RKGIT, Ghaziabad Roll.No:1703370016

3
 ACKNOWLEDGEMENT

Summer Training is a bridge connecting the educational qualification and professional use. It is

the path leading to success by shouldering responsibilities under the careful guidance of seniors

and experienced personnel without fear and failure.

It gives me immense pleasure to take the opportunity to remember and thanks the personalities

who have involved with this project work. I express my sincere thanks and deep gratitude who

are directly and indirectly associated in completion of this project.

I would like to thanks to Mr PARTHO GANGULY, designation HR Manager of Dabur India

Ltd. organization for assigning an extremely challenging project thereby giving unique

opportunity to meaningful contribution of such growing and vibrant organization, guiding

throughout the project, without his help the project would have not added enough value. I am

extremely grateful for the time he spent from his busy schedule.

Mansi Tyagi

4
EXECUTIVE SUMMARY

Recipe for success of any organization in today’s environment demands copying with change.

Management plays crucial role in anticipating these changes and readying the organization to
respond appropriately for continued competitiveness. An organization which is going to
witness massive changes in the environment with the significant diversification plans in its
product and services would need to focus primarily on a carefully worked out H.R strategy
with strong development systems which help in identifying and developing new competences.
Along with these competencies the organization should look after the employee’s level of
performance that is the building blocks of an organization.
According to the survey findings, certain dimensions such as reward system, performance and
development appraisal procedure need some attention. Some suggestions focus on counseling
sessions for the employee. The present attempt aims at identifying the characteristics features
of the existing system of performance Appraisal System in Dabur India Ltd and understanding
the effectiveness towards its objectives with a view to suggesting further improvements.

5
 TABLE OF CONTENT
Part I:
I. Certificate from Organization
II. Certification from Institution
III. Declarations
IV. Acknowledgement
V. Executive Summary
VI. Index/ Table of Content
VII. List of Tables
VIII. List of Figures

Topic Page Number

Part II: Study of Organization
 Introduction of Organization
 Business Overview
 Mission, Vision & Objectives
 Board of Director
 Company History
 Achievements
 Products & Services
 Sales & Financial Performance
 SWOT Analysis

Part III: Research Work

1. Objective
2. Discussion of Problems
a. Significance of Problems
b. Concept & Practices
c. Theory & Models related with Problem/ Literature Review
3. Hypothesis
4. Research Methodology
5. Limitations
6. Data Findings
7. Data Analysis
8. Suggestions & Recommendations
9. Conclusion
10. Bibliograph

6
 INDEX

S. No. Topics Page No.

1. Acknowledgement I

2. Executive Summary II

3. Introduction – The Organization NTPC 1

4. HUMAN RESOURCES

5. GRIEVANCE

6. Grievance Procedure in NTPC

7. OBJECTIVE OF THE PROJECT

8. Research mythology

9. Findings

Recommendation

10. Conclusions

11. Recommendations

12. Limitation

13. Bibliography

14. Annexure

15. Questionnaire

7
 Part II:
Study of Organization

8
 ORGANISATION PROFILE

Dabur India Limited is the fourth largest Company in India with interests in Health Care,

Personal Care and Food Products. It is most famous for Dabur Chyawanprash, Hajmola,

Glucose-D, and Vatika.

Dabur had a turnover of approximately RS19 billion (approx. US$ 420 million) during the

fiscal year 2005-2006, with brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola &

Real. The company's growth rate rose from 10% to 40%. The expected growth rate for two

years was twofold. Dabur operates in more than 5 countries and distributes its products

worldwide.

The company was founded by Dr. S. K. Burman in 1884 as a small pharmacy in Calcutta (now

Kolkata), West Bengal, India, and is now led by his great-grandson V.C. Burman. The

company headquarters are in Ghaziabad, Utter Pradesh, India, near the Indian capital of New

9
Delhi, where it is registered. Dabur's manufacturing operations are in India, Africa and the

United Arab Emirates.

The company, through Dabur Pharma Ltd. does toxicology tests and markets ayurvedic

medicines in a scientific manner. They have researched new medicines which will find use in

O.T. all over the country therein opening a new market

Today, the FMCG is the fourth largest sector in the Indian economy and there are many FMCG

companies like HLL, ITC, Britannia, Tata Tea, Nestle, Godrej Consumer, Dabur, Marico etc.

Business:

Dabur’s product range encompasses health care, personal care, ayurvedic specialties and food

segments.

Brands:

Well-known brands include Dabur Amla, Dabur Chyawanprash, Vatika, and Hajmola, Dabar

lal Dantmanjan, Nature Care, Pudin Hara and Real.

Location:

Dabur has been marketing its products in more than 50 countries all over the world. The

company has offices and representatives in Europe, America and Africa. Manufacturing

facilities are spread across three overseas locations.

Turnover:

Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover

of Rs.1899.57 with powerful brands.

10
KEY STRENGTHS OF DABUR:

 It has a very strong brand image. Dabur is synonymous with nature care for more than
hundred years.
 Its products portfolio, with products that are always in high demand.
 Distribution system that helps its products reaches 47 stocking points, 10,000 stockiest
and 1.2 million retailers.

11
One of the Best Ayurvedic Companies – Dabur Corporate Profile

Dabur India Ltd. is one of India’s leading FMCG Companies with Revenues of over Rs 7,680
Crore & Market Capitalisation of over Rs 48,800 Crore. Building on a legacy of quality
and experience of over 133 years, Dabur is today India’s most trusted name and the
world’s largest Ayurvedic and Natural Health Care Company.

Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic
products. Dabur's FMCG portfolio today includes five flagship brands with distinct brand
identities -- Dabur as the master brand for natural healthcare products, Vatika for premium
personal care, Hajmola for digestives, Real for fruit juices and beverages and Fem for fairness
bleaches and skin care products.

Dabur today operates in key consumer product categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods. The ayurvedic company has a wide distribution
network, covering 6 million retail outlets with a high penetration in both urban and rural
markets.

Dabur's products also have huge presence in the overseas markets and are today available in
over 120 countries across the globe. Its brands are highly popular in the Middle East, SAARC
countries, Africa, US, Europe and Russia. Dabur's overseas revenue today accounts for over
30% of the total turnover.

The 132-year-old ayurvedic company, promoted by the Burman family, started operating in
1884 as an Ayurvedic medicines company. From its humble beginnings in the bylanes of
Calcutta, Dabur India Ltd has come a long way today to become one of the biggest Indian-
owned consumer goods companies with the largest herbal and natural product portfolio in the
world. Overall, Dabur has successfully transformed itself from being a family-run
business to become a professionally managed enterprise. What sets Dabur apart from the
crowd is its ability to change ahead of others and to always set new standards in corporate
governance & innovation.

12
 Business Overview

Dabur India Limited is a fast moving consumer goods (FMCG) company. The Company
operates in various product categories, such as hair care, oral care, healthcare, skin care, home
care and foods.

Its business units include Consumer Care Business, Foods Business and International
Business.

The Consumer Care Business unit includes healthcare, which consists of health supplements,
digestives, over-the-counter (OTC) and ayurvedic ethical products, and home and personal
care, which consists of hair care, oral care, skin care and salon, and home care products.

Its foods business consists of fruit-based beverages and culinary pastes business.

Its International Business unit offers a range of hair, skin and oral care products in the Middle
East, Africa, South Asia, Europe and Americas. The Company markets its products under the
brands, including Dabur Chyawanprash, Dabur Honey, Dabur Baby, Vatika, Hajmola, Real,
Fem, Dabur Amla and Dabur red Tooth Paste, among others.

Founded S.K. Burman (1884)

Owner: Burman family

Industry Consumer Goods - FMCG

Employees 7,243 (2016-17)

Turnover (INR Crs.) 2500 - 5000

Headquarters Dabur Tower, Ghaziabad, India

13
 Vision statement of Dabur

"Dedicated to the health & well being of every household"

Dabur is a company with a set of established business values,

which direct its functioning as well as all its operations.

In this, Dabur is guided by the words of its founder Dr. S.K.Burman "What is that life
worth which cannot bring comfort to others?"

The company offers its consumers, products to suit their needs and give them good value for
money .The Company is committed to follow the ethical practices in doing business. At Dabur,
nature acts as not only the source of raw material but also an inspiration and the company is
committed to protect the ecological balance.

Mission statement of Dabur

14
 “Being a leader in the natural foods beverages industry and aims in offering quality
products and distributors higher returns to stakeholders”

CORE VALUES

 Ownership: This is our company. We accept personal responsibility, and

accountability to meet business needs.

 Passion for Winning: We all are leaders in our area of responsibility, with a deep

commitment to deliver results. We are determined to be the best at doing what matters

most.

 People Development: People are our most important asset. We add value through

result driven training, and we encourage & reward excellence.

 Consumer Focus: We have superior understanding of consumer needs and develop

products to fulfill them better.

 Team Work: We work together on the principle of mutual trust & transparency in a

boundary-less organization. We are intellectually honest in advocating proposals,

including recognizing risks.

 Innovation: Continuous innovation in products & processes is the basis of

our success.

15
 OBJECTIVES OF DABUR INDIA LIMITED

 To focus on customer and successfully meet their needs and requirements.

 To manufacture effective personal care, ayurvedic and food products at

competitive prices and improve the quality of life of common masses.

 To implement system to ensure prevention of errors rather than detection of

errors.

 To ensure global competitiveness by striving to achieve Current and Good

Manufacturing Practices (CGMP)

16
 Board of Director

Dr. Burman has been appointed as an Additional Director w.e.f. January 13, 2010 in the
category of Non-Executive and Independent Director.

Dr. Burman is an eminent Industrialist with particular interests in the areas of Research and
Development in the Pharmaceutical Sciences as well as Biotechnology and Technology issues.

Dr. Burman has Doctorate in the area of Pharmaceutical Chemistry from the University of
Kansas, USA.

He is currently the Chairman of Dabur India Limited. He is also a member in the Council
of Governors at Birkbeck College, University of London.

Name Designation
Anand C Burman Chairman
Sunil Duggal WholeTime Director & CEO
Mohit Burman Director
P N Vijay Director
S Narayan Director
Sanjay Kumar Bhattacharyya Director

Name Designation
Amit Burman Vice Chairman
P D Narang Whole Time Director
Saket Burman Director
R C Bhargava Director
Ajay Dua Director
Falguni Sanjay Nayar Director

17
 HISTORY OF DABUR INDIA LIMITED

1 1884 Birth of Dabur

2 1896 Setting up a manufacturing plant
3 Early
Ayurvedic medicines
1900s
4 1919 Establishment of research laboratories
5 1920 Expands further
6 1936 Dabur India (Dr. S.K. Burman) Pvt. LtD.
7 1972 Shift to Delhi
8 1979 Sahibabad factory / Dabur Research Foundation
9 1986 Public Limited Company
10 1992 Joint venture with Agrolimen of Spain
11 1993 Cancer treatment
12 1994 Public issues
13 1995 Joint Ventures
14 1996 3 separate divisions
15 1997 Foods Division / Project STARS
16 1998 Professionals to manage the Company
17 2000 Turnover of Rs.1,000 crores
18 2003 Dabur demerges Pharma Business
19
Dabur acquires Balsara
2005
20 2005 Dabur announces Bonus after 12 years
21 2006 Dabur crosses $2 Bin market Cap, adopts US GAAP
22 2006 Approves FCCB/GDR/ADR up to $200 million
23 2007 Celebrating 10 years of Real
24 2007 Foray into organized retail
25 2007 Dabur Foods Merged With Dabur India
26 2008 Acquires Fem Care Pharma
27 2009 Dabur Red Toothpaste joins 'Billion Rupee Brand' club
28 2010 Dabur makes its first overseas acquisition
29 2011 Dabur enters professional skin care market
30 2011 Dabur India acquires 30-Plus from Ajanta Pharma
31 2012 Dabur crosses Billion-Dollar Turnover Mark

18
In 2013 Dabur Enters Yoghurt Drink Market With Brand Real Activ. The company Expands
Skin Care Portfolio and launches Oxy Life Gel Bleach. The company Launches New Fruit
Juice Range: Real SupaFruits. Dabur Launches Indias First Oral Health Portal.

In 2014 Dabur Launches India's First Ayurvedic Medical Journal. The company also enters
Packaged Coconut Water market with Real Activ.

In 2015 Dabur India Ltd inked an agreement with Starcom MediaVest Group (SMG). The
company has introduced an array of professional salon facial products for men and women
under the Oxlife brand. The company also introduced the sugar-free version of its popular
ayurvedic product Chyawanprash named Ratnaprash SugarFree.On 12 October 2015 Dabur
India announced its entry into the Jasmine Hair Oil category with the launch of Vatika Jasmine
Non-Sticky Coconut Hair Oil. The product developed after extensive research provides
nourishment of coconut oil jasmine extracts and is enriched with Silicon Oils that helps restore
moisture balance in hair and give smooth manageable less frizzy hair.

In 2016 Dabur India announced that it has inked a license agreement with the Government of
India to commercially produce two new Ayurvedic drugs viz. Ayush-64 for treatment of
Malaria and Ayush-82 for management of Diabetes. Dabur India also signed a Memorandum
of Understanding (MoU) with the Central Council of Research in Ayurvedic Sciences
(CCRAS) an apex research body under the Ministry of AYUSH Government of India for
collaboration and co-operation in pharmaceutical R&D for different novel dosage forms and
drug development in Ayurveda. Dabur India Ltd said it is preparing to commercially produce
the two new Ayurvedic medicines within the next 6 months and these medicines will be
available in various formats. The Ayurvedic formulations for both these medicines were
developed by CCRAS.

On 1 November 2016 Dabur South Africa (Pty) Ltd announced an agreement with South
Africa's CTL Group of Companies to acquire its Personal Care Hair Care & Creams businesses
for 18.8 million ZAR (around USD 1.5 million). Under the agreement Dabur South Africa
(Pty) Ltd - the wholly-owned subsidiary of Dabur International Ltd - will acquire the business
of development manufacturing packaging and sale of Personal Care products (Hair Care and
Creams) of CTL Contracting Proprietary Limited in addition to certain equipment of Carbotec
Laboratories Proprietary Limited and immovable property from CTL Management and
Personnel Services Proprietary Limited. Dabur International Ltd is an overseas subsidiary of
Dabur India.

On 7 February 2017 Dabur India's pure-play beauty retail venture NewU announced the launch
of Sri Lanka's Ayurvedic beauty brand Spice Island in India. This marks the Indian entry of

19
Spice Island which will be available exclusively at NewU outlets across the country and will
feature a range of premium Skin Care Bath & Body Care and Hair Care products.On 14 March
2017 Dabur India announced the launch of first-ever Mobile Honey-Testing Lab in India. This
unique on-the-go lab has been designed specially to check raw Honey at source to reduce
adulteration in honey and ensure that purity is maintained.On 29 March 2017 Dabur India
announced the commissioning of its new manufacturing facility in Tezpur Assam. The plant set
up with an investment of Rs 250 crore is the most modern and environment friendly
manufacturing facility in the consumer goods industry in India. The manufacturing facility
located in Balipara Industrial area will manufacture the entire range of Dabur's Ayurvedic
Medicines Health Supplements Hair Oils Shampoos Toothpastes Skin Care and Home Care
products. The new facility has been constructed in a record time of eight months since its
ground-breaking in July 2016 and will house the most modern production lines for consumer
products in India. The state-of-the-art manufacturing facility is spread over 30 acres of land and
is expected to give a quantum leap to the capacity of Dabur India to meet the growing demand
for its products.

On 26 September 2017 Dabur India announced its alliance with Amazon to take its products
global. Dabur's collaboration with Amazon will help it expand and increase its product
penetration into the US market. Under this collaboration Amazon will help Dabur take around
30 products from its popular range such as Vatika hair oil Meswak toothpaste Red toothpaste
Chyawanprash to name a few to consumers in the US. Along with the existing wide range
Dabur will also offer an exclusive range of products specially created for Amazon's global
customers. As part of this association Amazon through its Global Selling Program will provide
an avenue to Dabur to take its vast range of well-known and sough-after ayurvedic and natural
products to millions of global customers on Amazon.com in the US and eventually across other
Amazon marketplaces.

20
 ACHIEVEMENTS AND AWARDS

Dabur ranked among the Iconic Brands of India 2017, by The Economic Times

Dabur India Ltd bags the award for Best Risk Management Practice in the FMCG
category, by CNBC TV18

21
 Dabur India Ltd honoured with Zee Media Family Business Legacy Award

Dabur ranked as a top brand in the Best Indian Brands 2016 league table, by Interbrand
India

Dabur Toothpaste, Hajmola biggest gainers in Brand Equity Most Trusted Brands 2016
List

Dabur India CEO Mr. Sunil Duggal named Best CEO in FMCG Category for second
year in a row

22
 Dabur bags AsiaStar 2016 Packaging Award for Dabur Ratnaprash

Dabur moves up six places; ranked 39 in BT500 ranking of I*ndia's Most Valuable
Companies for 2016

Dabur bags the prestigious BrandZ Award; Ranked amongst the Top 50 Most Valuable
Indian Brands 2016

23
Dabur ranked Best Healthcare Brand in Alternative Medicines category, by WCRC
magazine

Dabur India Ltd ranked 26 in the list of Best Indian Brand for 2016

24
 PRODUCTS & SERVICES

A vast array of products touching the lives of almost every individual, from an infant to a grand
old man, from poor to rich; that’s how the Dabur range of health personal care and food
products could be best explained. Today the Dabur trust has traveled beyond the boundaries of
India and is available in more than 50 countries worldwide. These values for money products
have made Dabur a household name Healthcare is one of the biggest and oldest division of
Dabur with a wide range of OTC healthcare products it comprises of:

Ayurvedic health tonics

Chyawanprash: Dabur's Health Supplements range includes products like Dabur
Chyawanprash, which strictly follows the original recipe that was laid down centuries ago.
Dabur now offers the same age-old benefits of Chyawanprash in two new variants -- the
sugar-free Dabur ChyawanPrakash and the chocolate-flavored granular Dabur
Chyawan Junior.

25
Digestives
Quit worrying about what all that yummy food will do to your stomach! Keep your
digestion toned up with Dabur's range of Digestives tablets and candies. These Ayurveda-
based solutions aid digestion as well as cure distressing stomach disorders, safely and
instantly. Dabur's ranges of Digestives are the perfect way to complete your daily meal.

Hajmola Tablets: Pop a Dabur Hajmola and enjoy the chatpata flavor that stimulates your
digestive power. Take it regularly, especially after a meal. The popularity of this Ayurvedic
digestive can be gauged by the fact that almost 2.5 crore Hajmola tablets are consumed
every day in India.

An Ayurvedic digestive medicine, Dabur Hajmola was the first to be branded as a

product. It has a mix of traditional Indian culinary herbs, spices and edible salts.
Dabur Hajmola is a market leader with 60% share of the digestive tablets segment in India.

Hajmola Candy: Hajmola Candy is a zingy tangy candy that's fun to have,
any time of the day. And what's more, it gets your digestive juices working better. It's a
great way to enjoy while staying healthy – with Hajmola Candy's khatta meetha taste and
two fun-filled flavours.

Pudin Hara: Dabur Pudin Hara gives quick relief from stomach ache, gas and
indigestion. It is a trusted, fast-action remedy for stomach disorders. Pudin Hara is
completely natural and safe

Childcare Products

Dabur Lal Tail: Give your baby the safe and tender care of nature with Dabur's range
of Baby Care products that are packed with the power of Ayurvedic herbs and plant
extracts. The active Ayurvedic ingredient in our products make your baby’s body fit and
healthy from within, and gives him the right foundation to become No. 1 in life.

Dabur Janma Ghutti: Dabur Janma Ghunti, an Ayurvedic medicine, plays a dual role
in all-round growth of infants. Dabur Janma Ghunti acts as an effective remedy for
stomach ailments arising out of teething such as flatulence, constipation, diarrhea,
vomiting etc. It also helps in the growth process by expelling intestinal worms and toning
up the digestive system of the infant with the goodness of traditional Ayurvedic ingredients
like Anjeer, Kishmish, Ajwain etc.

26
Women Care Products

Dabur Active Blood Purifier: offers an easy, permanent solution from pimples.

Dabur Active Blood Purifier starts its action against pimples within 7 days. The
product has, in fact, been clinically proven to better than competition.

Hair & Skin Care: Dabur presents a range of Herbal & Ayurvedic Personal Care
products, created to make you look and feel good. Bringing together the gentle touch of
nature and Ayurveda's wisdom, the range covers categories like Hair Care, Skin Care and
Baby Care, and is backed by the unfailing quality stamp of Dabur.

Rose water: The benefit of Rose was first introduced in a beauty product by Dabur India in the
form of Dabur Gulabari Rose Water. Dabur Gulabari encapsulates the. Its benefit on the skin
care usage is reflected in the brand proposition -- "Gulabi chehre ka raaz... Pani Nahin,
Dabur Gulabari".Replace water with Dabur Gulabari in your daily skin care regimen to
get a rose-like glow. Dabur Gulabari's benefits for skin care are endless.

Dabur Lal Dant Manjan: Good health means strong and healthy teeth. Give your teeth
the best natural care with Dabur Lal Dant Manjan. An Ayurvedic product, Dabur Red
Toothpowder gives you strong teeth and healthy gums.

Babool Toothpaste: Babool Toothpaste is natural toothpaste packed with the medicinal
benefits of Babul tree 'Acacia Arabia'. The Babul herbal extract in Dabur's Babool Toothpaste
helps prevent swelling and bleeding of gums, keeping your gums healthy and teeth strong.
Dabur's Babool Toothpaste now comes in a neem variant, offering the additional medicinal
benefits of Neem for complete oral care. Your favourite Babool is now also available in a gel
format with Babool Mint Fresh Gel.

27
Dabur Honey: Honey has been used for its medicinal and therapeutic value for centuries in India,

Dabur India Limited saw the potential of honey beyond its remedial value helping every
household imbibes the goodness of this natural wonder liquid in their day-to-day life.

Bulk Drugs and Chemicals –This range consists primarily of bulks in the oncology category.

28
 Sales & financial performance

Profit & Loss - Dabur India Ltd

Rs (in Crores)

Mar'18 Mar'17 Mar'16 Mar'15 Mar'14

12Months 12Months 12Months 12Months 12Months

INCOME:

Sales Turnover 5609.06 5369.84 5832.53 5505.66 4926.22

Excise Duty 16.77 79.19 82.53 74.38 56.14

NET SALES 5592.29 5290.65 5750.00 5431.28 4870.08

Other Income 0 0 0 0 0

TOTAL INCOME 5875.52 5565.29 5946.64 5569.13 4979.74

DABUR Financial Summary

For the three months ended 30 June 2018, Dabur India Ltd revenues increased 16% to
RS20.81B. Net income increased 25% to RS3.29B.

Revenues reflect Consumer Care Business segment increase of 16% to RS16.56B, Foods
segment increase of 17% to RS3.64B.

Net income benefited from Exceptional items decrease from RS145.4M (expense) to RS0K.
Basic Earnings per Share excluding Extraordinary Items increased from RS1.50 to RS1.87.

29
 SWOT ANALYSIS

Strength
1. Dabur has products present in over 60 countries and distribution through 5000 distributors
and 3 million outlets.
2. Strong brand image and product development strength of Dabur.

3. Strong distribution network and an extensive supply chain.

4. Dabur has welfare activities in health care, education and other socio-economic activities
5. Has focus markets in GCC, Egypt, Nigeria, US, Nepal etc.
6. It has a strong legacy since its inception in 1884.
7. Dabur has an excellent product diversification in healthcare, oral care, food, personal care,
home care etc.

Weakness
1. Fake products sold under the name of their brands.
2. Dabur products has stiff competition from big domestic players and international brands.

Opportunity
1. Tapping rural markets and increase penetration in urban areas can boost Dabur.
2. Mergers and acquisitions to strengthen the brand.
3. Increasing purchasing power of people thereby increasing demand.

Threats
1. Intense and increasing competition amongst other FMCG companies means burden
of Dabur's market share.
2. FDI in retail thereby allowing international brands.
3. Competition from unbranded and local products.

30
 Part III:
Research Work

31
 OBJECTIVE OF THE STUDY

 To integrated the company and individual goals through a process of performance

assessment linked to achievement of organizational objective.
 To increase awareness of tasks/targets and the responsibility of executives at all level to
ensure fulfillment of company’s objectives.
 To ensure an objective assessment of performance and potential.
 To distinguish between differing levels of performance on relative basis
 To identify the developmental action to be taken to enhance the performance of
executives.
 To facilitate the process of executive/non executive development through performance
planning, self review, performance analysis and two way communication between
appraise and appraiser.

32
 PERFORMANCE APPRAISAL

Since organization exist to achieve goals, the degree of success that individual employees
have in reaching their individual goals is important in determining organizational
effectiveness. The assessment of how useful employees have been at meeting their
individual goals, therefore, becomes a critical part of HRM. This leads us to the topic of
performance appraisal.

PURPOSE
There are basically three purposes to which performance appraisal can be put.

First, it can be used as a basis for reward allocations. Decisions as to who gets salary
increases, promotions, and other rewards are determined by their performance evaluation.

Second, these appraisals can be used for identifying areas where development efforts are
needed. Management needs to spot those individuals who have specific skills or knowledge
deficiencies. The performance appraisal is a major tool for identifying these deficiencies.

Finally the performance appraisal can be used as a criterion against which selection devices
and developments programs are validated. It is one thing to say, for example, that our
selection process is successful in differentiating satisfactory performers.

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 a tool for motivation and
development was gradually recognized. The general model of performance appraisal, as it is
known today, began from that time.

Manager is subject to periodic performance appraisal. Performance appraisal is one of the

Key systems of the modern corporate world to control and coordinate the achievement of
the organizational objectives. Performance appraisal is a systematic and objective way of
judging the relative worth or ability of an employee in performing his job. Performance
appraisal in some form has existed in old days also. Wei Dynasty (221-265 A.D.) in China
introduced performance appraisal in which an Imperial Rater appraised the performance of
members of the official family. In 1883, the New York City civil services adopted
performance appraisal. Since then, performance appraisal in formal way has been adopted
by most of the large organization particularly in business field.

33
Definition
According to Beach “Performance Appraisal is the systematic evaluation of the individual
with regard to his job her performance on the job and his potential for development”.

According to Andrew Sikula, employee appraisal or performance appraisal is a systematic

evaluation of worker’s performance and potential for development. It is the process of
estimating or judging the value excellence, qualities or status of some object person or things.
Performance appraisal is a process of gathering analyzing and disseminating information about
the performance of employees.

Thus, performance appraisal is a systematic evaluation of personnel by their superiors or

others who are familiar with their work performance. Such appraisals usually involve the use of
forms and procedures that have been developed for the purpose.

OBJECTIVES OF PERFORMANCE APPRAISAL

Organizations undertake performance appraisal to meet certain objectives which are in the
form of salary increase, promotion, identifying training and development needs, providing
feedback to employees and putting pressures on employees for better performance.

Salary Increase - Normally Salary increase of an employee depends on how he is performing

his job for his performance there is continuous evaluation either formally or informally. In
small organization generally informal performance appraisal and in large organization formal
performance appraisal has been undertaken.

Promotion – Performance appraisal plays a significant role where promotion is based on merit.
Most of the organizations often use a combination of merit and seniority for promotion.
Performance appraisal helps in deciding whether one can be promoted to the next higher
position and what additional training will be necessary for him.

Training and Development – Performance appraisal tries to identify the strengths and
weaknesses of an employee on his present job. Training and development programmes can be
used for overcoming weaknesses of the employees.

Feedback – Performance appraisal provides feed back to employees about their performance.
It tells where they stand. A person works better when he knows how he is working, how his
efforts are contributing to the achievement of organizational objectives.

Pressures on employees – Performance appraisal puts a sort of pressure on employees for

better performance.

34
TOOLS OF PERFORMANCE APPRAISAL

In recent years, the purposes of performance appraisals have greatly expanded. Today
performance appraisals are used by organizations not only for wage increase, transfers &
layoffs but also as a means of communication, motivation & development of employees in an
organization.

Management by Objectives: - Management by Objectives (MBO) is used in this report to

mean as an approach to appraising performance by results. This approach tends to emphasis a
participative but joint determination of objective followed by a participative but joint
evaluation of success in periodic appraisal interviews.

Career Progression: - This phase is used here to mean the upward movement in the career
path through a planned Promotion Scheme

Job Rotation: - It implies the shifting of an employee from one job to another so that
monotony and boredom are reduced and at the same time there is an increase in the skill and
knowledge of the employee about related job.

Job Enrichment :- The term ‘Job enrichment’ is used in this report to mean a deliberate
upgrading of responsibility, scope and challenge of the job as a non-financial motivation
device.

Motivation: - Motivation is taken to man as a willingness to expand energy to achieve a goal

or reward. It is a force that activates a dormant energy and acts in motion the action of the
people .It is the function that kindles a burning passion for action among the human beings of
an organization.

Promotion: - Performance appraisal has duality of objectives evaluation of an employee in

his/her present role & their development for doing the present job in better way as well as to
develop him for the higher order job. The performance of this higher order job depends on their
potential in the light of the requirements of the new job. Thus, to determine an employee’s
likelihood to succeed in the new job, potential appraisal is carried.

Communication:- Performance appraisal helps clear communication between the superiors

and their subordinates. Communication helps in giving feedback to managers on their
performance and thus providing satisfaction to the executive.

35
METHODS OF PERFORMANCE APPRAISAL

TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

Ranking Method:-

Ranking is the oldest and simplest method of appraisal in which a person is ranked against
others on the basis of certain traits and characteristics. In the ranking method, various persons
are given ranks on the basis of their traits. This is a very simple method when the number of
persons to be ranked is small because ranking has to be given on the basis of traits, which are
not easily determinable.

Paired Comparison:-

Paired comparison method is a slight variation of ranking system designed to increase its value
for use in the large groups. In this method, each person compared with other persons taking
only one at a time. This method provides better comparison of persons. However, this increases
the work because of large number of comparisons. This can be calculated by a formula N (N-
1)/2 where N is the total number of persons to be compared.

Grading:-

In this method, certain categories of abilities or performances are defined well in the advance
and persons are put in particular category depending on their traits and characteristics. Such
categories may be definitional like outstanding, good, average, poor, very poor, or may be in
terms of letters like A, B, C, D, etc. with A indicating the best and D indicating the worst.

Forced Distribution Method:-

In this method the appraiser is forced to appraise the appraises according to the pattern of a
normal curve. The basic assumption in this method is that employee’s performance level
conforms to a normal statistical distribution. This method is useful to rate job performance and
promo ability.

Forced –Choice Method:- The Forced-choice rating method contains a series of group of
statements and the rater checks how effectively the statement describes each individual being
evaluated. There may be some variations in the method and statements used, but the most
common method of forced choice contains two statements, both of which may be positive or
negative.

o The employee is hard working.

o The employee gives clear instructions to his subordinates.

Both these statements are positive but the rater is asked to rate only one, which is more
descriptive of his subordinate’s behavior. This is done to avoid subjectivity in rating.

36
Graphic Scale Method:- Graphic Scale also known as linear rating scale is the most
commonly used method of performance appraisal. In this method, a printed appraisal form is
used for each appraisee; the form contains various employee characteristics and his job
performance. Various characteristics include initiative, leadership, dependability,
cooperativeness, enthusiasm, creative ability, analytical ability, decisiveness, emotional
maturity, etc. depending on the level of the employee. The rating is done on the basis of scale
which is in continuum 5, 4, 3, 2 and 1 in that order can be used to denote points for various
degrees of excellent-poor, high-low, or good-bad, and so on.

Essay Method:-

Some companies use free essay method, or sometimes, combine this with other methods. In
essay method, the rater assesses the employees on certain parameters in his own words. Such
parameters may be as follows:

 Work performance in terms of quality, quantity and costs;

 Knowledge about the job;
 Knowledge about organizational policies, procedures and rules;
 Employee’s characteristics and behavior;
 Employee’s strengths and weaknesses;
 Overall suitability of the employee;
 Employee’s potential and promotability, and
 Training and development needs of the employee.

The essay method is useful in providing useful information about an employee on the basis of
which he can be appraised.

Field Review Method:-

In the field review method, an employee is not appraised by his direct superior but by another
person, usually from personnel department. The basic idea is that such a person may take more
objective view in appraisal, as he is not under pressure as the superior of the employee may be.
The rater, in this case, appraises the employee based on his records of output and other
quantitative information such as absenteeism, late coming, etc. The rater also conducts
interviews of the employee and his superior to ascertain qualitative aspects of job performance.
This method is more suitable for promotion purpose.

37
MODERN MEHTODS OF PERFORMANCE APPRAISAL

Assessment Centre Method:- Under this technique many evaluators join together to
judge employee performance in several situations with the use of a variety of criteria. It is used
mostly to help and select employee for the first level supervisory position Assessments are
mode to determine employee potential for purpose of promotion. The merit of this system is
that it is a better method for identifying managerial potential than any other method.

Appraisal by Management by Objective (MBO):- Concept of Management by Objective

(MBO) has been offered by Peter Ducker’s under this technique, the subordinate sets his short-
term performance goals in consultation with the superior. Goals explicitly state the actions,
which the employee will follow. The subordinate appraises his own performance by evaluating
it vis-à-vis goals. The supervisor is not the evaluator, but directs the goal setting process to
ensure that it matches the objective of the organization.

Behaviourally Anchored Rating Scales (BARS):-The problem of judgmental performance

evaluation inherent in the traditional methods of performance evaluation led to some
organisations to go for objective evaluation by developing a technique known as
“Behaviourally Anchored Rating Scales (BARS)” around 1960s. BARS are descriptions of
various degrees of behaviour with regard to a specific performance dimension.
It combines the benefits of narratives, critical incidents, and quantified ratings by anchoring a
quantified scale with specific behavioural examples of good or poor performance.

360 – Degree Appraisal:-Yet another method used to appraise the employee’s performance is
360 – degree appraisal. This method was first developed and formally used by General Electric
Company of USA in 1992. Then, it travelled to other countries including India. In India,
companies like Reliance Industries, Wipro Corporation, Infosys Technologies, Thermax,
Thomas Cook etc., have been using this method for appraising the performance of their
employees. This feedback based method is generally used for ascertaining training and
development requirements, rather than for pay increases.
Under 360 – degree appraisal, performance information such as employee’s skills, abilities and
behaviours, is collected “all around” an employee, i.e., from his/her supervisors, subordinates,
peers and even customers and clients.

In other worlds, in 360-degree feedback appraisal system, an employee is appraised by his

supervisor, subordinates, peers, and customers with whom he interacts in the course of his job
performance. All these appraisers provide information or feedback on an employee by
completing survey questionnaires designed for this purpose.

38
PERFORMANCE APPRAISAL SYSTEM IN DABUR INDIA
LIMITED

In Dabur India limited they have the system of performance appraisal of their employees. The
main objective of this performance appraisal system is to evaluate the performance, promote
their employees and to arrange for their various training program’s if they required for
enhancing their skills in their respective areas and in contribution enhancement.

Employees are evaluated by how well they accomplish a specific set of objective that has been
determined to be critical in the successful completion of their job. This approach is frequently
referred to as management by objectives. Management by objective is a process that converts
organization~1objectives into individual objectives. It can be thought of as consisting of four
steps: goal setting, action planning, self control, and periodic reviews. In the goal setting, the
organization’s overall objectives are used as guidelines from which departmental and
individual objectives are set. In action planning, the means are determined for achieving the
ends established in goal setting. That is, realistic plans are develop to attain the objectives.
Self-control refers to the systematic monitoring and measuring of performance. Finally, the
periodic progress reviews, corrective action is initiated when behaviour deviates from the
standards established in the goal-setting phase. Dabur uses very constructive performance
appraisal process while evaluating its employees. Its evaluation is based on quantitative wise
and objective wise.

Company sets goals to its employees by probably reporting with its employees and then
evaluating them upto what extent it has been achieved and if there is failure in reaching the
target what are the causes or reasons behind it.

Every evaluator has his or her own value which acts as a standard against which appraisal are
made. Relative to the true or actual performance an individual exhibits some evaluator ~ mark
high and others low. The former is referred to as the positively lenient in their appraisal, an
individuals performance becomes over-stated; that is, rated higher than it actually should.

Similarly, a negative leniency error understates performance, giving the individual a lower
appraisal. As such there is no scope of error as far as the Dabur Company is concerned, but
sometimes overestimation of target brings about a description in the evaluating criteria. Thus,
though chances are less, positive leniency errors have been stated to be committed.

39
Outcome of Performance Appraisal
As far as Dabur Company is concerned, there are four outcomes possible:

a. Outstanding –If the performance evaluated by the management turns out to be

outstanding. If the employee performs in such a way as to collect 3 consecutive
outstanding performances into his/her credit he/she gets promoted.

b. Excellent –If the performance evaluated by management turns out to be

excellent. If the employee performs in such a way as to collect 3 consecutive
excellent performances into his/her credit, he/she gets promoted.

c. Good –If the performance evaluated by the management turns out to be good.
The management sends the employee to the training programme to improve
his/her skills to perform.

d. Below average –If the performance evaluated by the management turns out to
be below average. And, if the employee collects 3 below average to his/her
credit, then he/she dismissed.

Duration of Appraisal system

The time constraints enables the employee to show or project his/her capabilities in form of
performance as per the duration allowed. In Dabur India limited, the performance appraisal
system is carried out annually.

Feedback
The company provides the annual feedback to its employees and thus, in term brings out the
highlights of the self assessment programme. This enables the better communication between
the management and the employees and thus, helps in promoting the business future.

Response
There are mixed responses from the feedback by the employees. It has helped some of the
employees in motivating themselves while those who felt bad were thoroughly communicated
and all the confusion and failure part were discussed with employees.

40
EXCUTIVE PERFORMANCE APPRAISAL SYSTEM
The Executive Performance Appraisal System will be used to assess the performance of
executives and to plan for their development.

APPRAISAL PROCESS

 Self – Appraisal
 Performance Review and planning
 Performance Assessment
 Development plan
 Final assessment

SELF APPRAISAL

Tasks/targets indicating a few key performance Areas will be set for each appraisee by his
reporting Officer in consultation with the former , This will be communicated to the appraisee
by 31st March of every year , before the of the assessment year. The self-appraisal form will be
filled up by the appraisee twice a year in the first week of October and then in the first week of
April.

The appraisee will factually report on the following, in the Self Appraisal every six months:-

Tasks/targets fulfilled

Constraints faced

Facilitating resources

Suggestions for improvement

In addition, the appraisee will indicate the following while filling up the self appraisal at the
end of the assessment year.

 The highlights of performance

 Major strengths
 Developmental needs

41
PERFORMANCE REVIEW AND PLANNING
After Self Appraisal, performance Review and planning will be held twice a year between the
appraise and the Reporting Officer in October and April.

During the PRP session, the Reporting Officer will ensure a conducive climate for discussion.

In the PRP session, the Reporting Officer and the appraise will discuss: The extent of
task/targets fulfilled. Major strengths of the appraise Developmental needs.

Suggestions for improvement of the individual and the team performance.

In the PRP held in October, the discussion will be based on completion of the tasks/ targets up
to the mid year and will incorporate all mid-course change in the tasks/targets for the remaining
six months. In the PRP held in April, the discussion will be based on fulfillment of tasks /
targets of the assessment year.

The outcomes of PRP discussion will be noted in the specific form and signed by both the
Reporting Officer and appraise.

PERFORMANCE ASSESSMENT

The performance of the appraisee will be assessed after the PRP is held. The reporting officer
will assess the appraisee on a five point rating scale on the following factors. Each factor will
carry a weight as indicated below

E1 – E4A

Factors Weight age

Performance Factors

1. Quantity of output 2

2. Quality of output 2

3. Cost control 2

4. Job knowledge and skill 2

5. Team spirit and lateral co-ordination 2

6. Discipline 1

7. Development and quality of assessment of 1

subordinates

8. Any other Relevant factor 1

42
Potential Factor

1. Communication 2

2. Initiative 1

3. Commitment and sense of responsibility 1

4. Problem analysis and decision making, 1

5. Planning and organizing 1

6. Management of human resources 1

E5-E9

Performance Factors Weightage

1. Quantity of output 1

2. Quality of output 1

3. Cost Control 2

4. Lateral co-ordination 2

5. Team-spirit 1

6. Development and quality of assessment of, 2

Subordinates

7. Discipline 1

8. Any other relevant factor 1

Potential Factors

1. Commitment and Sense of responsibility 2

2. Planning and organizing 1

3. Management of human resources 2

4. Problem analysis and decision making ability 2

5. Communication 1

43
Guidelines. Note: A descriptive overall assessment will also be made on a separate sheet in the
form, in case of appraises in E-5 and above.

The Reporting Officer will give comments or remarks/cite incidents in case he gives extreme
ratings.

The Reporting Officer will make use of the definitions of the rating scales for each factor
which will be indicated in the performance Appraisal

One of the outputs of the system will be that the appraises will be classified into the following
grades in order of merit O A B C.

The sum total of the factor score given by the Reporting officer will indicate the category that
the Reporting officer would like to put the appraises in. The following range of scores may be
used as a guide for the indicative grades of the Reporting Officer.

84 and above - O

68 to 83 - A

52 to 67 - B

20 to 21 - C

Note: For example if the total score given come to 55, it indicates that the appraise is suggested
to be finally graded as B.

The Reporting Officer will differentiate between performance levels of appraises under him
and to the extent possible follow distribution pattern as indicated below, in order of merit:
O 10%

A 20%

B 45%

C 25%

The Reporting officer may find some of the appraises not fit for promotion due to their poor
performance. In such cases the Reporting Officer may recommend that the appraise may be
declared as “Non-.Promo table” for the ensuing one year. The Reporting Officer will fill a
summary sheet indicating the overall factor score of the appraises reporting to him, and send
same to the Reviewing Officer. The Reporting Office (O) will make his individual assessment
independently in the name pattern as listed out for the Reporting Officer.

44
PERRORMANCE ASSESSMENT BY REVIEWING OFFICER

The Reviewing officer will get the Appraisal forms and the summary sheets from the Reporting
Officer (O).The Reviewing Officer will rate the individual on each of the factors listed. He will
follow the same principles as the Reporting officer for making his assessment. He will also
prepare a summary sheet indicating the factor scores of the appraises assessed by him.

PRIMARY GRADING

The Personnel Department will help in compiling the total scores based on the assessment on
each individual factor by the Reporting Officer, Reviewing Officer and the Reporting Officer
(O) taking into account the weight ages attached to each Individual factor and the weightage
given to the Reporting Officer, Reviewing Officer and Reporting Officer (O). This will be
calculated giving 50% weight age to the score given by Reporting Officer, the weightage to
Reporting Officer (O) will be 25% & the weightage given by Reviewing Officer is 25%.
The Total factor scores will then be arranged in descending order for an Appraisal group and
the primary grading [10%-O, 20%-A, 45%-B and25%-C] will be worked out. The appraisal
group will consist of appraises belonging to sections/departments functionally related to each
other.

FUNCTIONING OF PERFORMANCE REVIEW COMMITEE

The constitution of PRC for different levels will be indicated in the performance Appraisal
Guidelines. The Head of the Department/the next higher authority of the Reviewing Officer
will also be members of the PRC. The Performance Review Committee will receive the
following information from the personal dept.

The factor scores given by Reporting Officer, Reporting Officer (O) and Reviewing officer to
each appraisee. The average factor score of each appraisee and the indicative grade thereof the
primary grading of each appraisee.

The PRC will study the distribution pattern of primary grading and the indicative grades vis-à-
vis the factor score appraises under consideration. The PRC will harmonized grades of some of
the appraises if needed, to remove disparities, if any, in ratings.

However, the moderations may not be of more than one stage up of down with respect to the
primary grading. The PRC will decide the final grading ensuring the distribution of appraisee
the minutes of the PRC meeting will be signed by Chairman and all members. The final
assessment sheet in the Appraisal for will then be filled up and signed by chairman or any
member of PRC.

The PRC may, taking into account the recommendation of the Reporting and Reviewing
Officers, declare some of the executive in the category C as non-promotable for the ensuing
one year.

45
DEVELOPMENT PLAN

The training needs of the appraisee will be indicated by the Reporting and Reviewing Officers.
The training needs should have a linkage to the development plan discussed by the Reporting
Officer with the appraisee during the performance review and planning discussion.

Both the Reporting Officer and Reviewing Officer will indicate job rotation /job suitability of
the appraisee. The Personnel / Training department will utilize the training needs sheet to
develop suitable training plans for the appraises in consultation with the concerned heads of
department or higher authorities.
Personnel Department will make a job rotation plan based on comments of the Reviewing
Officer and implement the same in consultation with the concerned heads of departments or
higher authorities.

FINAL ASSESSMENT

Final assessment will be done by a performance Review committee (PRC).The performance

Review Committees will be suitable constituted in such that the Head of he Department to
which the assess belongs or the authority above the Reviewing Officer is included in the
committee. . This should be formalized with the approval of respective chief Executive of the
Organization.

For each appraisee there will be a maximum of 3 total factor score awarded by the
Reporting Officer (O) and Reviewing Officer.

Weightages have been indicated for the assessment of the namely 50% for the Reporting
Officer, 25% for the Reporting officer (O), and 25% for Reviewing Officer. If there is no
Reporting Officer (O), the weight age for the Reviewing Officer will be 50%.

By multiplying the total factor given by the assessing authorities with the above weightages
(i.e. 0.5 or 0.25 as the case may be), the weighed score for Reporting Officer, Reviewing
officer and Reporting Officer (O) will be obtained. A total of this will give the average
appraisal score.

The average appraisal score would be converted, by the personnel department, into an
indicative grading of the appraisee as a per following guidelines. Range of appraisal Indicative
grading

84 & above - O

68-83 - A

52-67 - B

20-51 - C

In case of a large department. The executives of the departments as whole or particular

section/sections may be grouped together. This would also be indicated in the final assessment
sheet placed before the PRC.

46
All executive within an appraisal group will brew listed in descended order on the basis make
of the average appraisal score secured by them. An Appraisal group will consist of grades
belonging to department/sections related to each other.

Each appraisal group will be finally evaluated by the PRC. The chairman of the PRC
concerned will ensure grouping of executives based in related function.

It will be ensured that such grouping will be done only when the departments are related to
each other.

Personnel department will ensure a common approach in the site/unit in respect of formation of
appraisal camps in different areas. The appraisal grouping will be finalized in location with the
corporate office so as to maintain inter-unit parity the extent possible.

The first 10% the executives of the appraisal group listed in descending order based on average
a score, will be categorized as ‘O’, 20% in category “A”, The next 45% as ‘B’ and last 25% as
‘C’ this is the primary grading.

The PRC will be given the following inputs for every executive in an appraisal group.

Factor score awarded by Reporting Officer, Reviewing Officer and Reporting Officer (O)
(where applicable).

Indicative grading based on average appraisal score.

Primary grading based on the specified distribution of the score & the overall performance of
departments.

Discrepancies in the trend of scores awarded by different Reporting of Reviewing Officers for
the appraised in an apprisee of an appraisal group.

47
 DISCUSSION OF THE PROBLEM (PERFORMANCE APPRAISAL)

Appraisal is the evaluation of worth, quality or merit. In the organization context performance
appraisal is a systematic evaluation of personnel by superiors or others familiar with their
performance. Performance appraisal is described as merit rating in which are individual is
ranked as better or worse in comparison to others.

Societies cannot exist without judgment. In the context of an organization, some form of
control & co-ordination is needed to facilitate achievement of its goals and objectives. As such,
control devices in form of performance appraisal are used in the area of human resource
management. In a work group, members consciously or unconsciously, make opinion about the
quality, behavior, and way of working of others. Such an opinion becomes the basis for
interpersonal interaction

48
 BARRIERS/PROBLEMS
Performance appraisals are subject to several humans’ judgmental errors. Some of them are discussed
below: -

Ambiguity: -

This error occurs when factors used to be described are not clear. It should be very clear so that
all maters have the same sort of behavior in mind. Unless, all raters agree on what such factors
like quality & quantity of output mean, their final ratings simply cannot be compared.

Insufficient evidence: -

The boss frequently gets a limited & often a distorted view of subordinate’s performance. The
subordinate’s ability to get along with the boss may have a greater impact on his/ her rating
than does actual performance on his job. Rating committees naturally help to reduce this
problem.

Differing Perception:-

Often raters tend to rate the subordinates similar to themselves in background values & styles
of behavior higher than they rate subordinates with dissimilar life style (the similar- to- me -
effect).

Regency and Primacy effects:-

Regency error occurs when the person is rated on the basis of very recent performance and a
primacy error occurs when the rating is based on previous rating. By keeping & using detailed
performance records over time, these errors can be minimized.

Faulty Assumptions:-

Because of the faulty assumptions of the parties concerned, superior and his subordinate in
appraisal system it does not work properly or objectively. Managers naturally wish to make fair
& accurate appraisal of subordinates is untenable. These assumptions are due to psychological
characteristics, technical deficiencies. Managers often take a particular appraisal system as
perfect. They sometimes assume that personal opinion is better than formal appraisal.

Psychological Blocks:-

The utility of performance appraisal depends upon the psychological characteristics of

managers. There are several psychological blocks when are manager feeling of insecurity,
appraisal as an extra burden, their being excessively modest or skeptical, disliking of
resentment by subordinates, disliking of communicating poor performance to subordinates.
Thus managers do not tend to become impartial in evaluating their subordinates.

Technical pitfalls:- The main technical difficulties in appraisal fall in two categories -criterion
problem & distortions that reduce the validity of results.

49
1) Criterion Problem: -

A criterion is a standard of performance the manager desires of his subordinates & against
which he compares their actual performance. Criteria are hard to define in measurable or
objective terms. Ambiguity, vagueness & generality of criteria are difficult hurdles for any
process to overcome.

2) Distortions:-

Distortions occur in the form of biases and errors in making the evaluation. May be introduced
by the evaluator consciously or unconsciously. An appraisal system has the following possible
distortions.

3) Halo effect:-

This distortion exists where the rater is influenced by rater’s one or two outstandingly good (or
bad) performances & he evaluates the entire performance accordingly. It also occurs where the
rater’s judgments is influenced by the work team or informal group with which a subordinate
associates. If the group is not well liked, this attitude may work in the rating of the individuals
on it, apart from the actual performance.

4) Central Tendency:-

This error occurs when the rater marks all or almost all his personnel as average. He fails to
discriminate between superior and inferior persons. It arises from the rater’s lack of knowledge
of individuals he is rating, or from haste, indifference or carelessness.

5) Constant errors: -

Some rater habitually rates everyone high, others tend to rate low. Some rate on potential rather
than on recent observed performance. The results of the two raters are hardly comparable.

6) Rater’s Liking & Disliking: -

Managers, being human, have strong liking or disliking for people, particularly close
associates. The rating is influenced by personal factors & emotions & raters may weigh
personality traits more heavily than they realize. Raters tend to give high rating to persons
whom they like & low rating that they dislike.

50
THE APPRAISAL PROCESS

Established performance standard

Communicate performance expectations to employee

Measure actual performance

Compare actual performance with standards

Discuss the appraisal with the employees.

If necessary, initiate the corrective action

51
 The appraisal process begins with the establishment of performance standards. These should
have evolved out of job analysis and the job description discussed under human resource
planning. These performance standards should also be clear and objective enough to
understood and measured. Too often, these standards are articulate in some such phrase as “a
full day’s work” or a “good job”. Communication only takes place when the transference has
taken place and has been received and understood by the subordinates. Therefore feedback is
necessary from the subordinate to the manager. Satisfactory feedback ensures that the
information communicated by the manager has been received and understood in the way it was
intended.

The third step in the appraisal in the measurement of performance. To determine what actual
performance is, it is necessary to acquire information about it. We should be concerned with
how we measure and what we measure.

What we measure is probably more critical to the evaluation process than how we measure,
since the selection of the wrong criteria can result in serious dysfunctional consequences. And
what we measure determine, to a great extent, what people in the organization will attempt to
axel at.

One of the most challenging tasks facing managers is to present an, accurate appraisal to the
subordinates and then have the subordinate accept the appraisal in a constructive manner.
Appraising performance touches on one of the most emotionally charged activities the
assessment of another individual’s contribution and ability. The impression that
subordinates receives about their assessment has a strong impact on their self-esteem and,
very important, on their subsequent performance.

The final step in the appraisal is the initiation of corrective action when necessary.
Corrective action can, be of two types. One is the immediate and deals predominantly with
symptoms. The other is basic and delves into causes. Immediate corrective action often
described as “putting out fires,” whereas basic corrective action gets to the source of
deviation and seeks to adjust the difference permanently.

Immediate action corrects something right now and gets things back on track.

52
 RESEARCH METHODOLOGY

According to Clifford Woody research comprises defining and redefining the problems,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
making deductions and reaching conclusions whether they fit the formulating hypothesis.

Research Methodology is a procedure designed to the extent to which it is planned and

evaluated before conducting the enquiry and to the extent to which the method for making
decisions is evaluated. The research methodology if scientifically developed enables the
researcher to establish with high degree of confidence, cause and effect relationship between
the research activities and observed outcomes.

This part of the study deals with methodology used in present investigation. For gaining new
knowledge in a particular field it explains the nature of study, details of sample design,
Collection of data, Analysis of data through statistical tools and interpretation of the data
collected.

RESEARCH SUBJECT

The first and foremost step is to select and define the topic of study. Among various issues
what occupies the central position in an organization is the effective utilization and
maintenance of human resources for achievement of organizational objectives and while
managing human resources, the problem of carrying out performance appraisal of executives
stands out very clear. This topic of study takes into account measuring the existing system of
performance appraisal so as to identify the characteristics features of the same and to
understand the effectiveness of the system towards its objectives with a view to suggesting
further improvements. Thus, the topic of study is “Performance Appraisal System” at
Dabur India Limited.

RESEARCH DESIGN

A Research Design is the conceptual structure within which the study is to be conducted. It
constitutes the Blue print for Collection, measurement and analysis of data.

NATURE OF STUDY

This study is descriptive and Qualitative in nature i.e. which includes Survey involving
executives & non-executive of SIG taking into consideration attitudes, opinions, behavior and
performance regarding their job.

1.PREPARATION AND DESIGN OF QUESTIONNAIRE

53
A Questionnaire was designed for the study and measures the performance level of executives
& non executive at SIG with the help of available literature and project guide. The questions
relating to general information of employees, awareness on various aspects of their job and
policies and approach of management were put. Both closed and open-ended questions were
included. Also, all questions were given in a proper sequence and simple language in order to
give a clear picture of the situation given and to avoid any misunderstanding to the
respondents. In the questionnaire, suggestions of the employees were requested if they want
any improvement in the present appraisal system technique being followed up.

2, SAMPLE DESIGN

A sample is a definite plan obtaining a sample from a given population.

1-Universe:- The first step in developing any sample is to clearly define the Universe (set of
objects) to be studied .The Universe in the present study is restricted to the total number of 300
employees in the organization.

2. Sample Size:- In order to make sample representative of the population, it was decided to
collect information from a sample size of 50 employees including both technical and non
technical employees.

3. Sampling Procedure:- After deciding the proper sample size, appropriate sampling
technique to be used must be selected. Therefore, Simple Random sampling technique has been
used for collection of primary data.
Data Sources

Two types of data sources are chosen for the study:

o Primary Sources

o Secondary Sources

Primary Data: Primary data was collected by a way of Questionnaire designed for both
technical and non technical employees of SIG. The questionnaire content questions which
include awareness of the employees on various aspects like organizational objectives, the
performance appraisal technique being followed. The collection of primary data was
accomplished at different departments after a personnel visit to all the departments:

o Works
o Services
o Construction
o Maintenance
o Operations
o Information Technology

54
 The distribution of questionnaire was done on a random basis in all the departments. After a
brief introduction about the purpose of study and the contents of the questionnaire, it was given
to employees and asked to fill up and give their feedback on various factors in the same and
collected hand-to-hand from them. Assistance was provided to respondents whenever needed.
Secondary data was collected from various books of Human resource management and
Organizational Behavior of different authors Magazines & Newsletters of SIG and with the
help of internet.

3. ANALYSIS OF DATA:- After collection of data, the researcher turns to the task of
analyzing it. The responses given by employees are analyzed in order to present in into
meaningful form. Thus, statistical techniques like Tabulation and graphical representation of
data are used. Various bar diagrams are used in order to present information clearly.

4. INTERPRETATION OF DATA:-

Lastly, after analysis of data, the findings of the study are studied and represented in a logical
and precise manner so as to arrive at a conclusion of the study and to provide any
recommendations and suggestions on this basis.

STRATA CLASSIFICATION

The strata classification in general has been done in the following ways: - Strata

Assessment system

Executive Appraisal system process

Non – executive - Confidential Report

In this project we shall discuss about the executive & non executive performance appraisal
system in Dabur India Limited.

55
 LIMITATIONS OF THE STUDY

Firstly, the information collected from the questionnaire may not be accurate, as some of the
personnel’s could have given biased answers depending upon the various factors.

Secondly, the sample size was confined to 50 Executives therefore the conclusions drawn hold
true only for this much of sample size and hence the analysis may not be appropriate if it is
used for more of the sample size.

Thirdly, As per the view of the personnel’s, the schedule needs some modifications further, in
huge organization like Dabur India Ltd. employees with over busy schedule instrument was
really difficult to answer.

Lastly, it was quite time consuming to contact every employee and then to follow up for the
data collection. Provision, should be made so that with the prior permission of G.M of the
department concerned, a meeting with the batch of 10-15 executives at a time to ease and speed
up the data administration process. But, frankly the environment of SIG for summer trainees is
quite conductive, cooperative and encouraging.

56
 DATA FINDINGS OF THE STUDY
After meeting the executives & non –executive of different levels (viz E1 to E10 grades) of SIG
interacting with them, the following information and facts were gathered:-

CONSTRAINTS
General Constraints faced by superiors (Appraisers) while doing performance appraisal for
appraisee (Executives):-

 Performances are not generally recorded on regular basis

 Facts are not recorded as per plan.
 In availability of adequate resources.
 Unawareness of employees about profit maximization with utility and plans made are
not strictly followed
 Performance appraisals are not related to any financial implications on the individuals.
 It should be used as a proper yardstick & tool for measurement of performances.
 The Present technique must need more practical approach
 Partiality is done for individuals in the marking system.

In any performance appraisal, due consideration must be given to the ethics of appraisal, failing
which many organizational problems may crop up and the very purpose of appraisal may be
defeated. The following are some suggestions and recommendations for appraisees, appraisers
and reviewers.

I. For Appraisees:
Following are five keys to help employees to overcome a bad appraisal:
1. Employees should complete a draft of the Performance Appraisal Form or Narrative
Form. They will be surprised at how much they have accomplished.

2. They should go into the review assuming there will be some negatives, and think of
the meeting as a way to learn what specific issues they have to work on to get to
that next step. It’s the boss’ job to let the employees know about areas where they
can improve, so the employee should try not to be offended. The employees’ goal
is to convince the supervisor, in a positive manner, that they are willing to make
that commitment.

57
 3. Before going into a review, employees should carry a page with two columns, the
first headed “Specific Areas of Strength” and the second, “Specific Areas of
Improvement”. It’s very important that they hear both the good and the bad
comments, because they will never improve, to their boss’ satisfaction, if they deny,
in their anger, that there are any areas needing improvement.

4. Employees should ask for clarification and specific examples if they hear
generalizations or don’t understand what the problem is. But they should try hard
not to be too argumentative.

5. Employees should find out how their boss might solve these issues, and ask for
another review in 30 days to address these specific issues, to see if headway is
being made.

Thus, the employees should create an image of a thoughtful employee who is willing to change
and able to modify behavior.

II. For Appraisers:

Appraising manager should prepare for the appraisal in following ways:
1. He must be well trained and he should know why the appraisal is needed.

2. Clarify expectations for the employee (a job description with a listing of duties and
responsibilities).

3. Make the employee aware of performance standards, objectives, expectations and

specific areas of accountability.

4. Encourage the employee to prepare for the meeting.

5. Review actual work performance in relation to the performance plan, objectives and
outcomes.

6. Provide ongoing feedback on performance on day-to-day basis. If an employee is

given ongoing feedback, then the annual appraisal should contain no surprises.

7. Schedule the appraisal meeting several days in advance.

8. Put the employee at ease at the beginning of the appraisal meeting.

9. Allow the employee to engage in self-evaluation.

58
 10. Emphasize work behaviors rather than personal traits.

11. As soon as a performance is declined or affected, openly discuss with the employee
to try to determine the cause of affecting the performance.

12. Provide positive feedback as well as negative feedback.

13. Keep a regular record of lack-a-side attitude.

14. While appraising, he should make it clear to the employee that it is only his
personal opinion of the facts as seen by him;

15. Use specific examples to illustrate employee’s accomplishments.

16. He should pass the appraisal information on only to those concerned with the
process.

17. To initiate the performance appraisal discussion with the concerned subordinate by
objectively assessing performance vis-à-vis targets set.

18. Ask probing questions to seek clarification of misunderstandings or views that

differ. This gives the employee an opportunity to discuss items of interest or
concern.

19. Close the performance review meeting:

 Summarize the key issues that were discussed and seek agreement and/or
clarification.
 Give positive feedback to the employee for his/her active participation in the
review meeting.
 Reinforce one’s commitment and the employee’s commitment to future plans, as
discussed.
 Explain the next step in the performance process.
 End the meeting in a positive, friendly manner.

20. Identify potential talent

21. To discuss subordinate’s appraisal with the Reviewer & finalize ratings.

III. For Reviewers:

For final decision maker i.e. reviewers the following are the recommendations:

59
 1. To articulate department/ SBU goals in line with organization vision.

2. To cross verify Final Ratings and Promotion relating to all team members.

3. To moderate Ratings of team members based on departmental/SBU performance.

4. Should not be bias, but be fair in rewarding or penalizing the appraisee.

5. To review the potential talent identified by appraiser.

6. Should not compare the employee’s appraisal with somebody else’s without
knowing the basis on which it was made.

7. To ensure timely submission of all targets and appraisals of the entire team
(department) to Human Resource department.

8. To ensure that all Appraisees have been given constructive feedback by respective
Appraisers.

IV. Management Committee:

The role of Management Committee is to:
1. Strategically lay overall organizational vision/ goals.

2. Critically review business results based on set targets.

3. Review & approve departmental / SBU rating pattern and promotions.

4. Decide on incentive and increment matrix (compensation strategy) for organization.

5. Review all potential talent identified and lay a strategic intent towards their
development.

V. Human resources:
The human resources department has to:
1. Facilitate performance management system process across the company.

2. Conduct workshop for higher clarity & bearing on performance management

system (PMS).

3. Make use of PMS to create talent pipeline for future.

4. Propose & work closely with management committee on compensation strategy &
implementation linked to market &performance.

60
DATA ANALYSIS

61
 DATA ANALYSIS
After collecting the data on “Performance Appraisal System” data was Analyzed and
interpreted. The various topics covered for analysis and interpretation of data are:

1. Promotions:- A promotion may be defined as an upward advancement of an employee

in an organisation to another job, which commands better pay / wages, better status /
prestige and higher opportunities / challenges and responsibility, a better working
environment, hours of work and facilities etc.

Promoters have a salutary effect on the satisfaction of the promoted person’s need for esteem,
belonging and security. The promotion policies differ from an organisation to another.

The guidelines for departmental promotion in are same for male and female employees. The
period of experience required for filling a higher post departmentally varies from 3-5 years. 5
years experience for promotion to managerial staff and 3 years experience for promotion to
Junior Management staff is needed, The another area of promotion apart from seniority are
merit and fitness. Though these guidelines are not in a written format the supervisor and
manager get it at time of appraisal from the personnel department.

As per guidelines from the personnel department employees are to be promoted accordingly.

However there is confusion among the employee as these guidelines are not being explained
time to time, many are not aware of the existing promotion policy in the organisation.

Respondents were asked whether the promotion is well defined in the organisation. The
responses are given below:

N=96

Response Number Percentage

Yes 16 16.66

No 52 54.16

Can’t say 28 29.16

From the above table, it can be seen that 30% agree that promotion is well defined in the
organisation however 54%were not able to say it as there is lack of information about the
promotion policy. Every employee need to be communicated about the existing promotion
policy.

62
Do you think that Performance Appraisal is essential for the employees in The Company?

a) Fully
b) Partially
c) Not at all

Graph1. Performance Appraisal is essential

Not at all
0%
Partially
20%

Fully

Partiall
y

Fully
80%

Analysis and Interpretation:

It shows 80% of the employees agree that performance appraisal is essential for the employees
of the company and 20% of the employees partially agree.

Currently annual appraisal system in Dabur India Limited is carried out for the employees at
executive levels and above only. The target set may be reviewed quarterly so that strengths and
weaknesses, if any, can be assesses and remedial measures suggested accordingly.

63
Performance appraisal has been described as the responsibility, which is not liked by the
superiors. Do you think so?
a) Yes
b) Partially
c) Not at all

Graph2: Perfromance Appraisal is described as

responsibility

Not at all
27% Yes
27%

Yes
Partially
Not at all

Partially
46%

Analysis and Interpretation:

46% executives say that they consider performance appraisal as the responsibility they liked
the least. 27% executives agree that it is a responsibility not liked by them and remaining 27%
denies about any such probability.

Considerable amount of time is spent for getting the appraisals done as per the existing system.
The company should improve the existing system by designing and implementing departmental
performance review system on a quarterly basis.

64
Do you agree that self-appraisal prior to performance appraisal facilitates you to get high
ratings?
a) Completely
b) Partially
c) Not at all

Graph3: Self appraisal prior to perfromance appraisal

facilitates to get high ratings.

Completely
Not at all 27%
27%

Completely

Partially

Not at all

Partially
46%

Analysis and Interpretation:

45.5% of the employees say partially self-appraisal facilitates to get high ratings, 27.3%
employees agree completely and other 27.2% say self-appraisal does not help in high ratings in
performance appraisal.

Many companies have implemented the self-appraisal system. This has proved helpful in
identifying the needs for in-house group discussions/counseling methods/training and
development programs.

65
 Does your supervisor give you effective feedback on a regular basis?
a) Yes
b) Depends on the employees
c) Not at all

Graph4: Does superior gives effective feedback on regular

basis

100 Yes
80 Depends on the
60 employees
Percentage Not at all
40
20
Series1
0
Yes Depends on the Not at all
employees

Analysis and Interpretation:

It is clear in the graph that 100% of the employees say that the superior gives them effective
feedback on a regular basis.

Any company should give feedback to the employees periodically. They can also extend proper
diagnostic tips/ counseling methods at the required level.

66
Do you think that performance appraisal is the tool that improves employees’ performance
level?
a) To a great extent
b) To some extent
c) Not at all

Graph5: Performance appraisal improves employees

perfromance level

Not at all
8% To some extent
18%

To some extent
To a great extent
Not at all

To a great extent
74%

Analysis and Interpretation:

The graph shows 74% employees agree that up to a great extent, 18% say that to some extent
and 8% of the employees believe performance appraisal not at all improves performance
appraisal.
Currently the company’s existing appraisal system is on annual basis. This may be reviewed on
a quarterly basis, which will help in assessing the strengths and weaknesses of executives and
role modifications can be suggested accordingly.

67
Are you capable of achieving goals set for you?
a) Consistently
b) Occasionally
c) Never

Graph6: Capability of attaining the set goals

100%
90%
80%
70%
60%
50%
40% Consistently
Occassionally
30%
Never
20%
10%
0%
Consistently Occassionally Never
Opinion of employees

Analysis and Interpretation:

The graph shows 100% of the employees are consistently capable of attaining their set goals.

The target achieved by the employees may be vis-à-vis the target achieved last year. The
company should endorse proper diagnostic mapping for role modifications/ training and
development needs.

68
To what extent is the Dabur India Limited making progress towards its mission and goals?
a) To a great extent
b) To some extent
c) No opinion

Graph7: Dabur India Ltd. making progress towards

its mission and goals

No opinion
0%
0% To some extent
18%
To some extent
To a great extent
No opinion

To a great
extent
82%

Analysis and Interpretation:

In this graph 82% of the employees say that Dabur India Limited is making progress towards
its mission and goals to a great extent and 18% employees say that only to some extent
company is making progress towards mission and goals.

For the further progress of company’s mission and goals organizational planning and
development department should be involved for quarterly analysis of the feedback received.

69
 Do you get merit raise when the performance evaluation indicates that you are meeting
the set standard on the job?
a) To a great extent
b) To some extent
c) Not at all

Graph8. Merit raise when the employees meet the

standard

Not at all
10%

To some extent To a great extent

20%
To some extent
Not at all
To a great
extent
70%

Analysis and Interpretation:

70% of the employees say up to a great extent they get merit raise, 20% employees say that up
to some extent they get merit raise and minority of 10% employees agree they do not get any
merit raise.
Apart from the merits awarded based on the performance indicators; HR should introduce
system for proper recognition rewards to such employees.

70
Do your co-workers and superiors help you to cope up with your poor performance?
a) To a great extent
b) To some extent
c) Not at all

Graph 9: Support of co-workers and superiors

Not at all
0%

To some extent
47% To some extent

To a great extent To a great extent

53% Not at all

Analysis and Interpretation:

The graph shows 53% of the employees say up to great extent their co-workers and superiors
help them to cope up with their poor performance and 47% say to some extent.

Dabur India Limited can also concentrate on designing and implementing proper in-house
counseling program through group discussions/ personal interaction.

71
2.Aligning goal
Respondent were asked about the present system, does it help in aligning individual goal with
those of the organisation. The responses were as given below:

Response Number Percentage

Yes 44 45.83

No 12 12.5

Can’t say 36 37.7

No response 4 4.16

Here the responses from the supervisor were 45.83% for the factor it help in aligning their
goals with those of organisation.

45
40
35
30
25
20 Series 1
15
10
5
0
Yes No Can't Say No Response

72
3.Career Progress

Career progress is something which is continuous, with the input from organisation in terms of
training, feedback and counseling. In today’s changing scenario this has to be followed in
every organisation so that an individual make progress in the career adding value to himself
and the organisation. Respondent were asked about the current system helping in their career
progress.

Career advancement is the most motivating factor when employees aspire for the advancement
of his career and for better opportunities to use his/her talents. From the organization’s point of
view, it is necessary to develop in manager. Some expectations of opportunities for the future
in order to keep their motivation high. Career planning means helping the employee plan his
career in terms of his capabilities with the context or organizational needs. Individual, after
becoming aware of some of his/her capabilities and career and development opportunities
choose to develop himself/herself in a direction that improves his/her chances of being able to
handle new responsibilities. It is also the responsibility of the employer to help him/her to
identify the career opportunity, make choices and develop his/her career and provide
opportunities for career planning and succession planning.

73
Question asked was as follows:

Are the issues like career planning and succession planning a part of company’s policy?

The responses to the above were as given below:

Response Number Percentage

Yes 16 16.66

No 44 45.83

Can’t say 36 37.5

Here only 46% of the respondent gave response that it does not while 38% gave response that
there is no career development plan at all.

90
80
70
60
50
40 Series 1
30
20
10
0
Yes No Can't say

74
4.Feedback
Respondent were asked about the frequency of feedback based on their performance. The
responses were as given below:

Response Number Percentage

Rarely 24 25

On a few occasion 40 41.66

Sometimes 24 25

Often 8 8.34

Almost always nil nil

45
40
35
30
25
20
15
10
5
0
Rarely Sometimes Almost
always

75
5.Remedial measure
Based on the performance the remedial measures are taken to do away with weakness if any
and build on the strength and add to the existing capability.

Responses on remedial measures were as given below:

Response Number Percentage

Job rotation 44 45.83

Sent to training programmed 40 41.66

Counseled 12 12.5

Any other Nil Nil

None Nil Nil

Here the responses were both for job rotation and training programme. During the course it was
felt that more training input is to be provided to the employee to overcome the weakness and
improve upon the existing capability of the employee.

50

40

30

20

10

0
Job rotation counselled None

76
In your opinion to what extent are the superiors responsible for the progress of SIG?
a) To a great extent
b) To some extent
c) Not at all

Graph10: Superiors responsible for the progress of SIG

To some extent
Not at all 28%
35%

To some extent
To a great extent
Not at all

To a great extent
37%

Analysis and Interpretation:

The graph shows 37% of the employees believe to great extent superiors are responsible for the
progress, 28% are responsible to some extent and 35% say the superiors are not at all
responsible for the progress of the company.
For the progress of the company the performance appraisal of the top-level management are
also to be carried on a quarterly basis. Competency skills are to be assessed and effective role
modification areas are to be suggested.

77
 SUGGESTIONS & RECOMMENDATION

The analysis and interpretation of data on study of performance appraisal and it

effectiveness in an organization lead to the following conclusion:

The study undertaken brings some interesting result.

 Training the appraiser: It is proposed that the appraiser be trained for clear
understanding of the system and its objective and also counseled to be honest,
fair, just, unbiased in appraising the appraisal.

 Factors/traits of evaluation: It is proposed that appraisal evaluated on above

factor/traits be given suitable remark or justification for being given different
quantitative grade.

 Greater clarity has to be their in terms of job responsibility. This is possible

when the appraisal is done on the basis of the description.

 In the organization, performance appraisal is done on an annual basis which

should be done quarterly to make it mere effective.

 Consistency is demanded in the promotional policy. It should not change every

year.

 Monetary difference between two grades should not be large, it should be

motivating in nature.

 Performance appraisal system should be made more transparent and rational.

 Performance feedback: the performance feedback sessions should be

improved which would result in increasing employee motivation to improve
performance. The following could be incorporated.

 Pin point the problem behaviors and make sure the employee is aware of it.

 Make sure the employee understands the consequences of the problem behavior.
Get employee’s commitments to change and make sure he cares about the
change.

 Assistance should be provided to improve poor performance. Make a realistic

plan appropriate to the behavior and set a time frame for improvement.

 To make sure to review performance time to time.

78
 The other change which has to be incorporated at the supervisor and the level above
are:

 These should be listing down of task undertaken during the last one year and the
result achieved.

 In some areas of performance their should be self appraisal and more and more
counseling so that employee improve upon weak area and understand what is
expected of his/her at the organizational level.

 Based on the above an open appraisal system is suggested.

 The promotion rule though defined need to be communicated to every employee

before appraisal process is done and also justified the promotion as the result of the
appraisal. That the promotion policy followed differs at different position and
category. A uniformity has to be their in the implementation of promotion policy at
all levels.

 The process of performance appraisal followed in Dabur India Ltd. at the

supervisory and above level IS to say not well but of satisfactory level. The
employees do not rate it is very good.

 The appraisal outcomes have to be use frequently for the purpose of reward on
performing well together with the feedback on the performance. Also when
performance goes down employee has to be given feedback and motivated to do
better.

 The organization at present doesn’t lay career planning and career suggestion plans.

 In Dabur India Ltd. feedback is being provided to the employee though on a few
occasion.

 Performance appraisal in Dabur India Ltd. is done on an annual basis.

 More emphasis on training and job rotation as remedial measures.

 The mechanism of counseling pre-performance and post performance is not in

practice at the organization in strict term. During the course of study suggestion
came from the employee side for the need of counseling.

In an open appraisal the employee would come together to set the targets, to understand the
mutual expectation and support to be provided by the appraiser to the employee for achieving
mutually accepted goals / targets. Through this process of setting target the interpersonal
relationship between the appraiser and the employee would improve.

The open appraisal system reduces the whims and fancies of the appraiser. It promotes result-
orientation as it is based on performance rather than on personality based appraisal.

79
 CONCLUSION

In the new millennium when the corporate world is designing newer techniques for developing
employees and retaining them, SIG is no way behind and the organizational structure is such
that people works hand in hand to align the organizational goals with the individuals’ goals.

Evaluation of employees’ performance is helpful as to strengthen the employees’ productivity,

their promotion, transfer, training and development needs etc. The organization has
implemented the evaluation process not only to evaluate the performance of employees but also
for their increment and promotion. The company follows a transparent performance appraisal
system with no personal bias because it is wholly based on individuals’ contribution towards
the organization. But there are some loopholes in the system that should be analyzed and
corrective measures should be taken.

To sum it up, this project has provided me with opportunities to learn different areas of the HR
function and has given me stepping-stones to climb up to reach the summit of HR at the end of
my career.

80
 BIBLOGRAPHY

1) Flippo EdwinB., Personnel Management, Edition sixth, Tata Mc Graw Hills,

1984,p.g.225-230

2) Gupta, C.B., Human Resource Management, Edition Fifth (Reprint), Sultan Chand
and Sons, New Delhi 2001, p.g.5.3-5.10

3) Rao , P. Subba, Essentials of Human Resource Management and Industrial Relations;

Edition Second, Himalaya Publishing House, New Delhi 2001, p.g. 206-210

4) K. Aswathappa, Human Resources Management, Fifth Edition, Tata McGraw-Hill

Publishing Company, New Delhi 2001, p.g.239-271

WEB SITES SURFED

www.google.com

www.indiatimes.com

www.msn.com

www.wikipedia.co.in

81
Part:IV
Annexure

82
 QUESTIONNAIRE

TO STUDY THE PERFORMANCE APPRAISAL SYSTEM

Department Name: ______________________

Name : ______________________

Designation ______________________

Qualification: ______________________

Date of Joining Department: ______________________

Q.1 Is the promotional policy well defined in your organization?

a. Yes b. No c. Can’t say .

Q.2 On what basis is the performance appraisal done?

a. Merit cum seniority b. Seniority cum merit c. Merit only

d. Seniority only e. Any other please specify

Q.3 Who appraises you?

a. Appraisal committee b. Your immediate supervisor

c. Self-appraisal d. 360 degree appraisal

e. Any other please specify

83
Q.4 what methods are being used for performance appraisal?

a. Forced choice distribution method, b. Essay method

c. Ranking method d. Critical incident method

e. Any other, kindly specify

Q.5 Are the issues like career planning and succession planning a part of company’s policy?

a. Yes b. No c. Can’t say

Q.6 Does the system help you in aligning your goals with those of the organization?

a. Yes b. No c. Can’t say

Q7: Do you think that Performance Appraisal is essential for the employees of the
company?
a. Fully b. Partially c. Not at all

Q8: Performance appraisal has been described as the responsibility, which is not liked by
the superiors. Do you think so?
a. Yes b. Partially c. Not at all

Q9: Do you agree that self-appraisal prior to performance appraisal facilitates you to get high
ratings
a. Completely b. Partially c. Not at all

Q10: Does your supervisor give you effective feedback on a regular basis?
a. Yes b. Depend on the employee’s c. Not at all

Q11: Do you think that performance appraisal is the tool that improves employees’
performance level?
a. To a great extent b. To some extent c. Not at all

84
Q12: Are you capable of achieving the goals set for you?
a. Consistently b. Occasionally c. Never

Q13: To what extent is the Dabur India Limited making progress towards its mission and
goals?
a. To a great extent b. To some extent c. No opinion

Q14: Do you get merit raise when the performance evaluation indicates that you are meeting
the set standard on the job?
a. To a great extent b. To some extent c. Not at all

Q15: Do your co-workers and superiors help you to cope up from your poor performance?
a. To a great extent b. To some extent c. Not at all

Q16: In your opinion to what extent the superiors responsible for the progress of Dabur India
Limited.
a. To a great extent b. To some extent c. Not at all

85