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ON

“IMPROVEMENT IN THE EMPLOYEE’S


PERFORMANCE LEVEL FOR THE LAST FOUR
YEARS ACCORDING TO THEIR ROLES AND
RESPONSIBILITIES CHANGE”
AT

A desertion submitted in partial fulfillment of the requirement


For the award of the
POST GRAGUATE DIPLOMA IN MANAGEMENT
For the Session 2008-10
APPROVED BY AICTE

SUBMITTED BY:
PRABHJOT KOUR

ENROLLMENT NO.:
(5395)

PROJECT GUIDE:
MR. NARENDER SINGH

GURU NANAK INSTITUTE OF MANAGEMENT,


NEW DELHI.
ACKNOWLEDGEMENT
At the times when “Human values are been questioned” and ulterior
mottoes have dominated one’s personality here is an occasion rather my
privilege to introduce and express my gratitude to some of the exceptions
personalities with whom I have shared association, during my project task
and who prove the above statement “Human values being questioned” as
and only baseless but wrong.

I express my thanks to the company and its staff who gave me opportunity
to this project.

Mr. Narender Singh, Vice President (HR) gives me such a brilliant


opportunity to work under their amiable presence and in such a broad
organization.

I express my sincere thanks Mr. S.Patnaik (Sr. Executive (HR) & Our
Project Guide).Jai Beverages Pvt. Ltd. Jammu for their sincere and proper
guidance, direction and encouragement given to me for the successful
completion of this project.

With great gratitude


PRABHJ
OT KOUR
(5395)

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DECLERATION

I, PRABHJOT KOUR, a student of POST GRAGUATE DIPLOMA


IN MANAGEMENT, GURU NANAK INSTITUTE OF MANAGEMENT,
NEW DELHI, have completed the Summer Training Report on
“IMPROVEMENT IN THE EMPLOYEE'S PERFORMANCE LEVEL
FOR THE LAST FOUR YEARS ACCORDING TO THEIR ROLES AND
RESPONSIBILITIES AND CHANGE” AT JAI BEVERAGES PVT. LTD.
BARI BRAHMANA JAMMU, for the academic year 2008-10. The
information given in this project report is true to the best of my knowledge.

This is my original work.

PRABHJOT KOUR.
(5395)

3
BIBLIOGRAPHY
1. Material Provided by JBPL (PEPSICO)
Jammu
2. Web-sites:
www.google.com
www.jaibeverages.com
www.pepsico.com

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INDEX

S No. PARTICULARS PAGE NO.

1. Profile of JBPL, Jammu 6-20


2. Human Resource 21-26
3. Human Resource Department 27-37
4. Pepsi Interview & Recruitment 38
Survey
5. Employees Retention 40-50
6. Study on Performance Appraisal 51-75
7. Measuring Performance Appraisal 76-82
in JBPL
8. Data Analysis 83-87
9. Suggestions & Recommendation 88
10. Conclusion 88

5
COMPANY
PROFIL
E

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CONTENTS

1. Historical Background of JBPL


2. Company’s Logo
3. Company’s Vision
4. Company’s Mission
5. Introduction to the product- Soft Drinks
6. About the Soft Drinks
7. How Soft Drinks are made
8. Soft Drinks produced by JBPL
9. Punch lines
10. Mile Stones
11. Departments

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“COMPANY PROFILE”
PEPSI BOTTELING PLANT IN JAMMU (J&K)
Name of the unit
JAI BEVERAGES PVT. LTD. (PEPSI GROUP)

Location/Address of the unit


Sidco Industrial Complex, Ismailpur Road
Bari Brahmana, Jammu-181133
Phone:01923-20284,21384
Fax: 01923-20183,20184
e-mail:jbpl@nde.vsnl.net.in
website:www.jaibeverages.com
Regd.office: 52, Janpath New Delhi-110001
Phone :011-3321098’335325

History of the unit & present position


The year was 1999 and PEPSI Company in India was very eager to improve its
extremely poor market share (less then 3%) in the state of Jammu and Kashmir. That was
when it approached the soft drink maestros of India-the Jaipuria family and Mr. C.K.
Jaipuria in particular for starting a plant in J&K. In spite of all the odds, the non inductive
climate in the state for a new business venture, he took a bold step and went ahead with
accepting the challenge and taking the franchise in the name of his elder son – Mr.Anurag
Jaipuria, and Jai Beverages Pvt. Ltd. was born.
From the day of the decision, to this day in 2001, there has been no looking back. In
this short span of time, the company has been formed, sprawling compound of erstwhile
M/S Hindustan Levers Ltd. taken over from a supportive SIDCO, a prestigious unit in J &
K. After an initial investment of Rs. 27.1 crores, has been established with full backing of
the industries (J&K government), and an ultramodern plant is in full swing. The boiler
used is oil –fired, with a 33m high chimney and an effluent treatment plant which releases
all the effluent water after full treatment at very reasonable, and much under the pollution
board’s maximum acceptable BOD and COD levels. In fact, work in on to stop all the
treated effluent from going out and instead to utilize this water internally for horticulture.
In other words, the water is being put back into the earth to retain the water table. Further,
work has been done to grow more trees within the premises, in line with the universal
endeavor of making the earth green.
With the coming of this prestigious plant, there has been an upsurge in the economy
of the people of the area, in particular, and the state in general. The direct, and indirect,

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employment generated by the unit has already surpassed a figure of 50, and is growing
steadily. The excise deposited to the government exchequer has already crossed an
amount of Rs.361 Lacs, and is again growing. The once semi deserted main road of the
industrial complex, has become very busy and would soon be required to be widened.
In short, the coming of Jai Beverages Pvt. Ltd into the state of Jammu and Kashmir has
surely made a big mark into the industrialization of the state, with many a big industrial
house watching eagerly the outcome of this prestigious unit.
Jai Beverages Pvt. Ltd. is a part of the diversified Jaipuria Group being the major
franchise of the Pepsi in India?
The group has 19 Pepsis bottling plant in India and Nepal. It also has the franchise
for modern bread, pizza hut besides, business interest in information technology,
education, healthcare and textile retailing.
Jai Beverages Pvt. Ltd situated at Bari–Brahmana (SIDCO) distt. Jammu .The
company is producing and marketing the complete range of Pepsi drinks for the state of J
& K.
The new beverages plant having state of art machinery from krones, gesulin &
MAG plast among the international industrial giants and hildon, tula, IDMS etc. among
Indian manufacturers. The fully automatic plant is being run by a team of professionals
who have already made a mark for themselves by creating history in the international
Pepsi system by achieving the gold medal in the first year of operations from over 400
plants world wide.
The company its unused space into green gardens, recycling waste water and has a
modern working effluent treatment plant. The company gives its first preference to
workers safety, quality product and healthy working environment.
As per market share at present Pepsi is enjoying 42% market share .Whereas,
leader since 15 years in Jammu market on 50% market share. At present on the basis of
commitments, quality, skills and energetic team Pepsi feels they will give neck to neck
fight to our levels.

Company’s logo

This logo of Jaipuria group of companies was unveiled by Mr. C.K Jaipuria, in
the presence of Mr. Anuraan Japery, Mr. Rehirans Jaipuria & all the senior managers of
this group on 7th of Dec.2005 at Jai Beverages Pvt. Ltd.Jammu.

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Company’s vision
“Let’s Grow Together”

Company’s Mission…at JBPL


Will accomplish Rs.1,650 crore turnover with a PAT of 10% by 2010,across diverse
business interests by:-
 Placing jaipuria groups brands amongst the top 5 in the country.
 Treating our employee’s as an asset.
 Providing best quality products & services.
 Enhancing all stakeholders value.
 Protecting environment and being sensitive to all natural resources.

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1. INTRODUCTION TO THE PRODUCT –SOFT DRINK
Soft drinks can trace their history back to the mineral water found in nature
springs. Bathing in natural springs has ling been consider a healthy thing to do and
mineral water was said to have curative powers. Scientists soon discovered that gas
carbonium or carbon dioxide was behind in natural mineral water.
The first marketed soft drinks (noncarbonated) appeared in the 17 th century. They
water made from water and lemon juice sweetened with honey. In 1676, the comparing de
lemonades of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors
would carry tanks of lemonade on their backs and dispensed cups of the soft drink to the
thirsty Parisians.
In 1767, an Englishman, Dr. Joseph priestly, created the drinkable manmade glass
of carbonated water. Three years later, the Swedish chemist Torbern Bergman invented a
generating apparatus that made carbonated water from chalk by the use of sulfuric acid.
Bergman’s apparatus allowed imitation mineral water to be produced in large amounts.
In 1810, the first us plant was issued for the “means of mass manufacture of
imitation mineral water “to Simons and Rundell of Charleston, South Carolina.
Carbonated beverages did not achieve great popularity in America unit 1832, when John
Mathews mass manufactured his apparatus for sale to others.
The drinking of either natural of artificial mineral water was considered a healthy
practice. American pharmacists. Who were selling most of the mineral water started to
add medicinal and other flavorful herbs to the unflavored beverage example, birch bark
dandelion, sarsaparilla and fruit extracts. The early drugs stores with their soda fountains
become a popular part of America culture. Customer wanted to take drinks with them and
the soft drink bottling industry grew from the customer demand.
Over 1500 US patents were filled either for a cork, cap or lid for the carbonated
drink bottle tops. The bottle tops were under a lot of pressure from the gas. Inventors were
trying to find the best way to prevent the carbon dioxide (bubbles) from escaping. In
1892, Willam painter, a Baltimore machine stop operator, machine stop operator patented
the “crown cork bottle seal”. It was the first very successful method of keeping the
bubbles in the bottle.
In 1899, the first patent was issued for a glass-bowing machine for the automatic
production of glass bottles, earlier glass bottles had all been hand blow. Four years later,
the mew bottle-blowing machine was in operation. The inventor, Michel J Owens, an
employee of Libby Glass Company, first operated it. Within a few years, glass bottle
production increased from 1500 bottle a day to 57000 bottles a day.

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2. ABOUT THE SOFT DRINK

WHAT’S IN SOFT DRINK?


Soft drink has been part of American lifestyle for more than 100 years.
Many of today’s soft drinks are the same as the first ones enjoyed in the 1800’s.
Soft drink production begins with creation of flavored syrup using a closely
guarded company recipe. The syrup is mixed with purified water and then
carbonated by adding carbon dioxide gas under pressure. This carbonation creates
the “tingle fizz” that gives soft drinks a refreshing taste.
Now for a closer look at soft drink ingredients……………
Like other foods, the ingredients that are used in making soft drink are approved
and closely regulated by the US Food and Drug Administration (FDA). All the
ingredients used in soft drinks are found in a variety of other foods.

 WATER
Soft drink production starts with a pure source of water. Regular soft drink
contains 90% water while diet soft drink contains up to 99% water Drinking water
contains trace amount of various elements that affect its taste. You have probably
noticed that top differ in carious regions of the county. Bottler use sophisticate
filtering and other treatment equipments to remove any residual impurities and to
standardize the water used to make soft drinks. That’s why your favorite soft drink
tastes the name in New York as it dies in India.

 CARBON DIOXIDE
A colorless and odorless gas, carbon dioxide is the essential characterizing
ingredient in all “carbonated” beverages. It is given off when we breathe and is
used by the plants to product oxygen.
When dissolved in water, carbon dioxide imparts taste. For that reason
natural sources of carbonated. Of effervescent, mineral water were once highly
prized. These rare mineral water were once also believed to have beneficial
medicinal properties. Efforts to make and sell “artificial effervescent mineral
water” underway Europe and US by 1800.
It was the innovative step of adding flavors to these popular “soda water”
that gave birth to the soft drink beverages we enjoy today. In these days of soft
drink manufacturing, carbon dioxide was made from sodium salts. This is why
carbonated beverages were called, sodas or “soda water”.
Today bottlers buy pure carbon dioxide as a compressed gas in the high-
pressure cylinders. Carbon dioxide gas is absorbed into flavored soft drink in a
carbonator machine just before the container is sealed. While under pressure and
chilled, soft drink may absorb up to four times the beverage volume of carbon
dioxide.

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 FLAVORS
One of the most important ingredients in the soft drinks is flavoring. Most
soft drink bottles mix many individual flavors to create distinctive tastes. Natural
flavors in the soft drink come from spices, natural extracts and oils. Fruit –
flavored soft drink such as orange and lemon-lime often contains natural fruit
extracts. Other flavors such as root beer and ginger are contain flavoring made
from herbs and spices.
There are also some artificial or man made flavoring used in soft drinks.
Nature does not produce enough of some flavors to satisfy world demand. Also
some flavors are limited geographically and seasonally.

 COLORS
Many people do not realize important color is to taste perception. Color
affects our psychological impression of food. If you don’t believe it. Try eating a
familiar food in the dark. The color used in the food and beverages comes both
from natural and synthetic sources.

 CAFFEINE
Caffeine is substance that occurs naturally in more than 60 plants including
coffee beans, tealeaves, kola nuts and cocoa beans. In some cases, small amounts
of caffeine are added to soft drinks as a part of the flavor profile. The amount of
caffeine in soft drinks is only a fraction of that found in an equal amount of coffee
or tea.
Caffeine has a classic bitter taste that enhances other flavors. It has been
part of almost every cola and pepper type beverage since they were first
formulated more than 100 years ago and has been enjoyed in coffee, tea and
chocolate beverages for centuries.
Even though some people feel the effects of caffeine are harmful, scientific
research has refused these claims. The ling history of caffeine’s use confirms that
it is safe when consumed in moderation. For people who wish to restrict their
caffeine intake, many caffeine free soft drinks are available.

 ACIDULANTS
Similar to fruit juices and many other food products, most drinks are
slightly acidic. Acidulates add a pleasant tartness to soft drinks for one or two
common food acidulates (phosphoric acid and citric acid) occasionally; other
acidulates such as malice acid is also used.

 PRESERVATIVE
Soft drinks do not normally get spoiled because of their acidity and
carbonation. However, storage conditions and storage tome can sometimes impact
taste and flavor. For this reason some vs. contains small amounts of preservatives
that are commonly used in many foods.

 POTASSIUM

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Potassium is another essential nutrients found in many natural and man
made food ingredient like sodium, potassium exists naturally in drinking water
and therefore, in soft drinks. Small amount of potassium are also found in some of
the flavoring agents and other ingredients used in soft drinks.

 SODIUM
Because the name “soda pop” and “soda water” were associated with early
soft drinks. Many people falsely believe that carbonated beverages contains
significant amount of sodium. That is true.
Sodium, the name form of various salts, is present in many natural and
man made compounds. It is an essential nutrient responsible for regulating and
transferring body fluids. As well as other important body functions. Although an
adequate daily intake of sodium is necessary for good health, excessive
consumption has been to high blood pressure in some people.

 SWEETENERS
Non-diet soft drinks
Most regular (non-diet) soft drinks are sweetened with either sucrose or
high fructose corn syrup, (HFCS). A mixture of these sweeteners many also be
used. Sucrose, the familiar sweetener in your sugar bowl, cines firm sugarcane or
sugar beets.

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HOW SOFT DRINKS ARE MADE?

1START WITH PURE WATER!


Soft drinks begin with purified water (much clearer than the tap water you drink at
home). The soft drink manufacturer filters tap water through fine, clean sand and gravel to
get rid of any undissolved impurities that may pass through the finished drink and ensures
that the water does not contain any unwanted particles.

2ADD THE FLAVOUR


Once the water is purified, flavourings are added. These are prepared from natural
and nature identical sources and are added to a mixture of sugar and purified water to
make a syrup. This forms the soft drink base.

3NEXT STEP, ADD THE BUBBLES


The purified water and syrup base are then blended together to form a 'still' drink
and then mixed with carbon dioxide gas (CO2) in a machine called a carbonator.

4FILLING THE BOTTLES

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After the drink has been carbonated, it is transferred under pressure to the filling
machine. Here, the bottles or cans are filled and are then passed by conveyor belt to the
sealing machine.

5THE FINAL STAGE


The sealed bottles and cans are still quite cold at this stage, and if packed at this
temperature, moisture which forms on the container because of condensation would cause
the cartons to become wet and less manageable. To prevent this, the bottles and cans are
passed through a hot water spray to bring them up to 'room' temperature.

6LABELS & PACKAGING


Most soft drink bottles have labels applied by a labeling machine. There are still
some bottles, mostly returnable, which have the label information printed directly on to
the glass. Cans also have the label printed on them, before they arrive at the soft drink
manufacturing plant.

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Soft drink Produced by JBPL (PEPSICO), Jammu:-
1- AQUAEINA
2- PEPSI
3- MIRINDA ORANGE
4- MIRINDA LEMON
5- 7 UP
6- MOUTAIN DEW
7- SLICE

Punch lines (Pepsi cola jingles):-


Further year:-
“Pepsi! Yeh Payas Hai Badi”
“Yeh Dil Mange More Aahaa!”

Current year:-
“Yeh Hai Youngistan Meri Jaan”

This plant has started in year 2000 & since then achieved lot many mile
stones:
1. Quality gold in year-2000-2001 (it was first time in 100 years of Pepsi’s existence that
any plant taken gold in its first years of operation)
2. Quality gold-2001-02. We repeated history in second year also.
3. Ring of honor (sale’s prestigious award):- our sales head Mr. Naginder Razdan
achieved this award in year2004-05 & 2005-06 again.
4. Mr. Sámi butt sales manager for Kashmir valley nominate this year for Asia ring of
honor.
5. Quality gold in year-2000-2001 (it was first time in 100 years of Pepsi’s existence that
any plant taken gold in its first years of Operation)
6. Quality gold-2001-02. We repeated history in second year also.
7. Ring of honor (sale’s prestigious award):- our sales head Mr.Naginder Razdan
achieved this award in year2004-05 & 2005-06 again.
8. Mr. Sami butt sales manager for Kashmir valley nominate this year for Asia ring of
honor.

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 HUMAN RESOURCE

 FINANCE

 SALES & MARKETING

 PRODUCTION & QUALITY

 SHIPPING

 PURCHASE

 HEAD OFFICE

 STORES

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ORGANATIONAL CHART – JAMMU UNIT

MD
A JAIPURIA

EXEC VP
N RAZDAN

VP – OPS VP – HR GM – FIN HOS


T S BEDI N SINGH D AGNIHOTRI D MATHUR

Production HR/IR/ADMN Accounts


Quality Shipping Finance
Engineers Local Legal Direct/Indirect Sales
Store Matters Taxation Marketing
Purchase Statutory Statutory Liaison
Statutory Compliance Compliance
Compliance Liaison Liaison
Liaison

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ORGANATIONAL CHART – HR & ADMN
JAMMU

VP – HR
N SINGH

AM – HR SHIPPING
(VACANT) A K SHUKLA

ADMN & SECURITY TRANSPORT


SUNIL KUMAR R KOTWAL
DESPATCH
TIME OFFICE JAGDISH
S PATNAIK HR & MIS

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Human
Reso
urce

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CONTENTS
1. Introduction
2. HR Rules in JBPL

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“Human Resource”
Human resources is a term with which many organizations describe the
combination of traditionally administrative personnel functions with performance,
Employee Relations and resource planning. The field draws upon concepts developed in
Industrial/Organizational Psychology.

The objective of Human Resources is to maximize the return on investment from


the organization's human capital and minimize financial risk. It is the responsibility of
human resource managers to conduct these activities in an effective, legal, fair, and
consistent manner.

Human resource management serves these key functions:

1. Selection
2. Training and Development
3. Performance Evaluation and Management
4. Promotions
5. Redundancy
6. Industrial and Employee Relations
7. Record keeping of all personal data.
8. Compensation, pensions, bonuses etc in liaison with Payroll
9. Confidential advice to internal 'customers' in relation to problems at work.
10. Career development

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HR Rules
in
JBPL, Jammu

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“HR Rules”

FOR PF :-
To deduct PF of only those employees whose salary is up to Basic +D.A.6500.
1. Employee contribution 8.33%
2. Employer contribution 8.33%
3. Administration Charges 4% of employee and employer contribution.
4. EDLI deducted on wages for PF 1%.
5. When new employee joined Form no. 2 will be filled by him.
6. For getting PF no. of employees form no. 5 is to be filled.
7. Monthly form no. 12 will be sent which includes detail of every employee.
8. Form no. 3 A prepared for individual details at the end of year Employee +
Employer Contribution.
9. Form no. 6 includes details of all PF members from March to February of every
year and their contribution.

ESI RULES:-
To deduct ESI of those employees whose total salary is upto 10,000/-
1. Employer contribution 4.75%
2. Employee contribution 1.75%
3. Form no. 1 is to be filled at the time of joining of employee.
4. Form no. 3 is to be filled for getting ESI no. of employees.
5. Half yearly return after 6 months from period April to September and October to
March on form no. 6.

LEAVE RULES:-
EARNED LEAVE (PL):-
1. One leave is provided on 20 days of working.

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2. This type of leave is provided when he has completed 240 days of working.
CASUAL LEAVES:-
1. 7 CL is provided to employees as a casual leave.
SICK LEAVES:-
1. 7 SL is provided to those employees who are not covered under ESI range.

HOLIDAYS:-
1. 11 days of holidays is provided to workers and staff.

LABOUR RATES:-
Unskilled workers Rs. 66 per day
Semi skilled workers Rs. 88 per day
Skilled workers Rs. 147 per day
Supervisors / Clerical Rs. 94 per day

26
Human
Resource
Department

27
CONTENTS
1. Activities Handled
2. Functions
3. Policy & Procedures
4. Objective
5. Maintaining good interpersonal relations
6. HRD Functions & Tasks in JBPL

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“HUMAN RESOURCES DEPARTMENT”
A) Activities Handled at a glance.
i) Service File (Employee’s file)
ii) Recruitment
iii) Leave
iv) Training
v) Resignation

B) Detailed procedure of the activities handled along with documentation


involved:
i. Service File:
Curriculam Vitae
Proof of Educational Qualification (Mark sheets and Certificates)
Senior secondary certificate/ mark sheet
Higher secondary certificate/ mark sheet
Graduation mark sheet
Post Graduation mark sheet
Professional qualification / mark sheet
Copy of appointment letter.
Detail sheet in original (annexure to interview call letter)
Two recent passport size photographs
Experience certificate/s
Relieving letter if possible
Promotion letter
Increment letter
Renewal letter

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ii) Recruitment
Obtaining approval from competent authority – COO
Releasing an advertisement for recruitments.
Receiving applications.
Scanning / Scrutinizing the applications on the basis of criteria mentioned
Short listing the candidates
Sending the interview call letters
Sending invitation letter to panel members
To obtain confirmation calls and mails from respective candidates
Conduction of interview and selection of candidate/s, verification of concerned
certificates
Sending the appointment letter/s (in duplicate)
Receiving the acceptance copy duly signed

iii) Training
To get the details of a training program.
To assess the need for providing the training of that particular program.
Getting it discussed with competent authority and obtaining the approval of CEO
(via note)
Sending suitable candidate/s concerned in that particular stream or area for the
program.

iv) Resignation
One month prior notice is to be given.
Obtaining the approval from competent authority – COO (via note) and getting the
acceptance.
Handling over the all relevant document to the person concerned duly
acknowledged.
Clearance or recovery of dues if any related to company.
Issue of experience certificate and relieving letter.
v) Sanction of Leave
Balance of leave is to be checked before applying.
Applying for the leave in the prescribed format and getting it signed by the
recommending official.
Forwarding the same to the to COO for sanction.
Submitting the same to HRD.
Accordingly updations to be made

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 FUNCTIONING:
♦ MANPOWER ANALYSIS: -
It also goes manpower analysis in the organization. It sees that in
which area more manpower is needed and then fills up those posts. It looks
that how efficient the manpower is and accordingly provides training and
development.

♦ ARRANGING CAMPUS INTERVIEWS: -


This department takes the first step for the recruitment so they
arrange campus interview.

♦ RECRUITMENT AND SELECTION: -


Firstly this department interviews the candidates and then they are
sent to the concerned departments. Then the H.O.D. interviews the candidate
after which he is finalized by the G.M. they go for recruitment through adds,
walk-in interviews, competitions and references.

♦ SALARY AND WAGES:-


One of the important functions of this department is to administer the
Salary and wages of the entire company. They have all the details of the salary
structure of the employees and when they pass the salary then it is given
through accounts department.

♦ PROVIDING TRAINING:-
Once the individuals are selected they are given training for 3
months.

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 POLICY & PROCEDURES:
♦ Recruitment is done through advertisements and walk in interviews. Firstly
the personnel department before being sent to another department screens
the candidates.
♦ There is periodic performance appraisal for all the employees and
promotion is linked with that by this they weigh various qualities of the
individual.
♦ Training and development is provided to all the employees so that their
efficiency is increased.
♦ Various facilities are provided for the welfare of employees’ link, Meals,
Tea etc.

 OBJECTIVE:
♦ The foremost principal of H.R. is that every individual has its own worth
and dignity and that should be respected. The primary of this department is
to development human resource. It tends to develop their skills so that their
efficiency is increased.
♦ Another objective is to sharpen their scales and proved them such a healthy
environment, which enables him to work and employ, feels that his ideas
count and his job is respected.
♦ Another objective of this department is to motive the employees so that
feels like having challenging work and their potential is increased.

 MAINTAINING GOOD INTERPERSONAL RELATIONS: -


This department also works to maintain good relations among that
the employees in the organization so that they have co-ordination as well as
informal structures are found.

♦ DISCIPLINARY ACTION: -
This department also tries to maintain discipline in the organization.
In case any indiscipline is created then disciplinary actions are taken.

♦ HANDLING GREVIENCES of EMPLOYEES:-


This department also listens to all the grievances of employees and
tries to be proactive in solving their problems so that they can work properly.
There are suggestions and complaints as well as problems.

♦ ADMINISTRATION:-
It also administers the organization as a whole. It looks to all the
organization and strives to solve them and looks after the over-all

32
administration of the company that what is going on in the plant l and how
each and every thing has to be managed.

 HUMAN RESOURCE AND TRAINING SUPPORT


The corporate human resource support system is involved in all
Human Resource Management and Human Resource Development activities.

 THE HR SUPPORT PROVIDED TO THE AFFILIATED


UNITS IS IN TERMS OF:
Recruitment and selection support for senior HOD level positions.

HRD’s
Functions &
Tasks
in
33
JBPL, Jammu

“HRD Functions & Tasks”


HR Functions Tasks
Get the Job Description finalized by Person
Recruitment requesting the position
Get the position approved from Resource
Recruitment Manager
Prepare Process (First Round Interviewers,
Recruitment Interview Time, Second Round Interviewers)
Recruitment Screening Profiles
Get profiles Short listed from Interviewers (if
Recruitment needed)
Scheduling Telephonic Interview, update
Recruitment recruitment sheet
Taking feedback from Interviewers, update
Recruitment recruitment sheet
Rescheduling / Scheduling Personal Interview,
Recruitment update recruitment sheet
Get Employee Information form filled by
Recruitment Candidate
Taking feedback from Interviewers, update
Recruitment recruitment sheet
If Short listed, Inform Seniors, update
Recruitment recruitment sheet

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Scheduling HR Interview - Telephonic / Personal,
Selection update recruitment sheet
Selection Taking HR Interview - Personal / Telephonic
Selection Offer Negotiation
Selection Offer Letter
Selection Follow-up on Joining - Every 15 days
Inform IT Department to arrange System 15 days
Selection before joining

New Joinee Call and confirm 2 days prior joining, whether


Formalities joining is coming on time
New Joinee Ask IT Department about System arrangment a
Formalities day prior the joinee walks-in
New Joinee Collect the required documents (all documents
Formalities mandatory)
New Joinee
Formalities Document Submission
New Joinee
Formalities Latest Updated Resume
New Joinee
Formalities Certificates
New Joinee
Formalities Previous Experience Letter
New Joinee
Formalities Last Month Salary Slip
New Joinee
Formalities 5 Passport size Photographs
New Joinee
Formalities Others – Specify
New Joinee
Formalities Filled Forms
New Joinee
Formalities Employee Joining Form
New Joinee
Formalities Provident Form
New Joinee
Formalities Salary Account Opening Form
New Joinee
Formalities Others – Specify
New Joinee
Formalities Induction Presentation
New Joinee
Formalities Introduction to Organization
New Joinee Conditions of Employment – Entrances & Exits

35
Formalities
New Joinee
Formalities Policies of Companies
New Joinee
Formalities Provide Staff ID Pass
New Joinee
Formalities Work place, equipments etc
New Joinee
Formalities Introduction to colleagues
New Joinee
Formalities New Entrants New Job - Introduction to Superior
New Joinee
Formalities Arrange Meeting with Seniors
New Joinee Ask IT Department to create Mastiff Email ID of
Formalities the New Joine
New Joinee Send New Joinee Introduction Mail to all
Formalities Employees (To - employee, CC - New Joinee)
New Joinee Send Welcome Note along with Policies link to
Formalities New Joinee on Mastiff Email ID
New Joinee
Formalities Complete the Induction Checklist
New Joinee Complete the New joinee file and hand-over to
Formalities HR Associate
New Joinee
Formalities Input New joinee Data in Payroll
New Joinee Inform Senior HR about new joinee formalities
Formalities completion and get the file reviewed
New Joinee
Formalities Meeting with New Joinee
New Joinee
Formalities Appointment Letter
New Joinee Send mail to Accounts Department about New
Formalities joinee Salary details
Employee Meeting with New joinee and Superior after one
Confirmation month
Employee Mail for Employee Performance Status after 45
Confirmation days for Confirmation
Employee Mail to Admin for New Joinee Permanent I-Card
Confirmation (after taking confirmation from Senior)

Training Co-ordinate with seniors about training schedule


Training Inform Trainers about the training schedule
Get the trainers feedback form filled from
Training Trainees
Get the trainees feedback form filled from
Training Trainers

36
Co-ordination with Trainers for feedback of
Training Trainees
Communicate the trainees about performance
Training feedback
Training Employment Letter (if any)
Training Complete the trainee employment formalities

Leave
Maintenance Daily Attendance Sheet Updation
Leave
Maintenance Leave Records Maintenance
Leave Monthly Attendance and leave Updates, send
Maintenance mail to employees (if leaves any)
Leave Monthly Attendance and leave Updates (Send to
Maintenance Senior HR by 4th of every month)
Review the monthly leave status and send report
Leave to Accounts for Salary Release by 6th of every
Maintenance month

Budgeting Prepare HR Budget


Budgeting Maintaining expenses list
Budgeting Co-ordination with accounts & Admin team
Budgeting Get the Budget approved from CEO
Policy Policy reviewing
Policy Reviewing Salary Band (annually)

Recreational Sending Birthday Mails


Monthly B'day party organising, co-ordinate with
Recreational Mauj Masti Team & Admin
Recreational Approving Budget for the party and suggestions
Preparing Write-up about the event to be posted
Recreational on Mastiff Blog
Others Sending Salary slips to Employees

New Campus Recruitment


New Quaterly Performance Evaluation
New Standardize Training Process
New Organisation Structure
New Salary Band
New Prepare Competitor Companies List
Employee Communicating with employees on daily basis (if
Communication any issues inform Seniors)
Employee Communicating with employees on daily basis (if
Communication any issues inform Seniors)
Employee Communicating with employees on daily basis (if

37
any issues inform the respective Manager and
Communication Management)
Exit formalities Talk to Employee about Resignation
Exit formalities Talk to his Senior/Manager about his issue
If relieving is confirmed, finalize his last date,
notice period, mail the employee about his last
Exit formalities date and other formalities
On relieving day, conduct exit interview, get the
Exit formalities exit form filled
Issue necessary documents – Relieving
Letter/Experience Letter/Salary Slips (if
Exit formalities required)
Collect company assets which are with him/her
Exit formalities -library books, I-Card, others etc.
Calculate his leaves, any deductions, any amount
due towards the employee, and inform the
accounts to settle the employees accounts (if
Exit formalities relieving formalities are duly completed)
Inform IT Department to deactivate his Company
Exit formalities Email Account
Document his exit documents in his employment
Exit formalities file

38
Pepsi Interview
&
Recruiting
Surveys

“Pepsi Interview & Recruiting Surveys”

39
Pepsi Interview & Recruiting Surveys are detailed accounts of the recruiting/hiring
process and interviews at Pepsi (how many rounds of interviews, who conducted the
interviews).
(7 total PepsiCo, Inc. Interview surveys)

Position
Excerpt
interviewed for
Accountant 3 interviews, with the manager of human resources,
Driver I do not remember any specific interview question
When I first applied at Pepsi they weren't taking
Merchandiser
applications anymore
Hiring process was like any process. They use the internet
Sr. Analyst
to get candidates and supplement
Very open-ended with the opportunity to discuss previous
HR Manager
experience, current attributes and plans
QUAKER: 2 rounds of interviews first with direct report
Account Manager
manager and then his superior.
5 rounds of interviews. I was interviewed by Argentina
Marketing Manager
Gral. Manager, Marketing Director, Marketing...

40
Employee
Retenti
on

CONTENTS

1. Introduction
2. Compensation
3. Growth & Carrier
4. Support
5. Importance of Relationship in Employees Retention Program
6. Organizational Environment
7. Importance of Employees Retention
8. Employees Retention Strategies

41
9. What Makes Employees Leave?

“Employee Retention”

The picture states the latest statement


that corporate believes in “Love them or Lose them”

42
Employee Retention involves taking measures to encourage employees to remain
in the organization for the maximum period of time. Corporate is facing a lot of problems
in employee retention these days. Hiring knowledgeable people for the job is essential for
an employer. But retention is even more important than hiring. There is no dearth of
opportunities for a talented person. There are many organizations which are looking for
such employees. If a person is not satisfied by the job he’s doing, he may switch over to
some other more suitable job.

In today’s environment it becomes very important for organizations to retain their


employees. The top organizations are on the top because they value their employees and
they know how to keep them glued to the organization. Employees stay and leave
organizations for some reasons. The reason may be personal or professional. These
reasons should be understood by the employer and should be taken care of. The
organizations are becoming aware of these reasons and adopting many strategies for
employee retention.

Employees today are different. They are not the ones who don’t have good
opportunities in hand. As soon as they feel dissatisfied with the current employer or the
job, they switch over to the next job. It is the responsibility of the employer to retain their
best employees. If they don’t, they would be left with no good employees. A good
employer should know how to attract and retain its employees. Retention involves five
major things:

<<Compensation>> <<Environment>> <<Growth>>

<<Relationship>> <<Support>>

43
Employee retention would require a lot of efforts, energy, and resources but the results are worth
it.

Compensation
Compensation constitutes the largest part of the retention process. The employees always
have high expectations regarding their compensation packages. Compensation packages
vary from industry to industry. So an attractive compensation package plays a critical role
in retaining the employees.

Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options,
bonuses, vacations, etc. While setting up the packages, the following components should
be kept in mind:

Salary and monthly wage: It is the biggest component of the compensation package. It is
also the most common factor of comparison among employees. It includes

o Basic wage

o House rent allowance

o Dearness allowance

o City compensatory allowance

Salary and wages represent the level of skill and experience an individual has. Time to
time increase in the salaries and wages of employees should be done. And this increase
should be based on the employee’s performance and his contribution to the organization.

Bonus: Bonuses are usually given to the employees at the end of the year or on a festival.

Economic benefits: It includes paid holidays, leave travel concession, etc.

44
Long-term incentives: Long term incentives include stock options or stock grants. These
incentives help retain employees in the organization's startup stage.

Health insurance: Health insurance is a great benefit to the employees. It saves


employees money as well as gives them a peace of mind that they have somebody to take
care of them in bad times. It also shows the employee that the organization cares about the
employee and its family.

After retirement: It includes payments that an Employee gets after he retires like EPF
(Employee Provident Fund) etc.

Miscellaneous compensation: It may include employee assistance programs (like


psychological counseling, legal assistance etc), discounts on company products, use of a
company cars, etc.

Growth and Career


Growth and development are the integral part of every individual’s career. If an employee
can not foresee his path of career development in his current organization, there are
chances that he’ll leave the organization as soon as he gets an opportunity.

The important factors in employee growth that an employee looks for himself are:

Work profile: The work profile on which the employee is working should be in sync with
his capabilities. The profile should not be too low or too high.

Personal growth and dreams: Employees responsibilities in the organization should


help him achieve his personal goals also. Organizations can not keep aside the individual
goals of employees and foster organizations goals. Employees’ priority is to work for
themselves and later on comes the organization. If he’s not satisfied with his growth, he’ll
not be able to contribute in organization growth.

Training and development: Employees should be trained and given chance to improve
and enhance their skills. Many employers fear that if the employees are well rained,
they’ll leave the organization for better jobs. Organization should not limit the resources
on which organization’s success depends. These trainings can be given to improve many
skills like:

• Communications skills

• Technical skills

• In-house processes and procedures improvement related skills

• C or customer satisfaction related skills

45
• Special project related skills

Need for such trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant touch with
the employees.

Support
Lack of support from management can sometimes serve as a reason for employee
retention. Supervisor should support his subordinates in a way so that each one of them is
a success. Management should try to focus on its employees and support them not only in
their difficult times at work but also through the times of personal crisis. Management can
support employees by providing them recognition and appreciation.

Employers can also provide valuable feedback to employees and make them feel valued
to the organization.

The feedback from supervisor helps the employee to feel more responsible, confident and
empowered. Top management can also support its employees in their personal crisis by
providing personal loans during emergencies, childcare services, employee assistance
programs, counseling services.

Employers can also support their employees by creating an environment of trust and
inculcating the organizational values into employees. Thus employers can support their
employees in a number of ways as follows:

By providing feedback

By giving recognition and rewards

By counseling them

By providing emotional support

Importance of Relationship in Employee Retention Program


Sometimes the relationship with the management and the peers becomes the reason for an
employee to leave the organization. The management is sometimes not able to provide an
employee a supportive work culture and environment in terms of personal or professional
relationships. There are times when an employee starts feeling bitterness towards the
management or peers. This bitterness could be due to many reasons. This decreases
employee’s interest and he becomes de-motivated. It leads to less satisfaction and
eventually attrition.

A supportive work culture helps grow employee professionally and boosts employee
satisfaction. To enhance good professional relationships at work, the management should
keep the following points in mind.

46
Respect for the individual: Respect for the individual is the must in the organization.

Relationship with the immediate manager: A manger plays the role of a mentor and a
coach. He designs ands plans work for each employee. It is his duty to involve the
employee in the processes of the organization. So an organization should hire managers
who can make and maintain good relations with their subordinates.

Relationship with colleagues: Promote team work, not only among teams but in different
departments as well. This will induce competition as well as improve the relationships
among colleagues.

Recruit whole heartedly: An employee should be recruited if there is a proper place and
duties for him to perform. Otherwise he’ll feel useless and will be dissatisfied. Employees
should know what the organization expects from them and what their expectation from
the organization is. Deliver what is promised.

Promote an employee based culture: The employee should know that the organization
is there to support him at the time of need. Show them that the organization cares and
he’ll show the same for the organization. An employee based culture may include decision
making authority, availability of resources, open door policy, etc.

Individual development: Taking proper care of employees includes acknowledgement to


the employee’s dreams and personal goals. Create opportunities for their career growth by
providing mentorship programs, certifications, educational courses, etc.

Induce loyalty: Organizations should be loyal as well as they should promote loyalty in
the employees too. Try to make the current employees stay instead of recruiting new ones.
Organization Environment
It is not about managing retention. It is about managing people. If an organization
manages people well, retention will take care of itself. Organizations should focus on
managing the work environment to make better use of the available human assets.

People want to work for an organization which provides

Appreciation for the work done

Ample opportunities to grow

A friendly and cooperative environment

A feeling that the organization is second home to the employee

Organization environment includes

• Culture

47
• Values

• Company reputation

• Quality of people in the organization

• Employee development and career growth

• Risk taking

• Leading technologies

• Trust

Types of environment the employee needs in an organization

• Learning environment: It includes continuous learning and improvement of the


individual, certifications and provision for higher studies, etc.

• Support environment: Organization can provide support in the form of work-life


balance. Work life balance includes:

o Flexible hours

o Telecommuting

o Dependent care

o Alternate work schedules

o Vacations

o Wellness
• Work environment: It includes efficient managers, supportive co-workers,
challenging work, involvement in decision-making, clarity of work and
responsibilities, and recognition.

Lack or absence of such environment pushes employees to look for new opportunities.
The environment should be such that the employee feels connected to the organization in
every respect.

Importance Of Employee Retention


The process of retention will benefit an organization in the following ways:

1. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of

48
money to a company's expenses. While it is difficult to fully calculate the cost of turnover
(including hiring costs, training costs and productivity loss), industry experts often quote
25% of the average employee salary as a conservative estimate.

2. Loss of Company Knowledge: When an employee leaves, he takes with him


valuable knowledge about the company, customers, current projects and past
history (sometimes to competitors). Often much time and money has been spent
on the employee in expectation of a future return. When the employee leaves, the
investment is not realized.

3. Interruption of Customer Service: Customers and clients do business with a


company in part because of the people. Relationships are developed that
encourage continued sponsorship of the business. When an employee leaves, the
relationships that employee built for the company are severed, which could lead to
potential customer loss.

4. Turnover leads to more turnovers: When an employee terminates, the effect is


felt throughout the organization. Co-workers are often required to pick up the
slack. The unspoken negativity often intensifies for the remaining staff.

5. Goodwill of the company: The goodwill of a company is maintained when the


attrition rates are low. Higher retention rates motivate potential employees to join
the organization.

6. Regaining efficiency: If an employee resigns, then good amount of time is lost in


hiring a new employee and then training him/her and this goes to the loss of the
company directly which many a times goes unnoticed. And even after this you
cannot assure us of the same efficiency from the new employee.

Employee Retention Strategies


The basic practices which should be kept in mind in the employee retention strategies are:

1. Hire the right people in the first place.

2. Empower the employees: Give the employees the authority to get things done.

3. Make employees realize that they are the most valuable asset of the organization.

4. Have faith in them, trust them and respect them.

5. Provide them information and knowledge.

6. Keep providing them feedback on their performance.

49
7. Recognize and appreciate their achievements.

8. Keep their morale high.

9. Create an environment where the employees want to work and have fun.

These practices can be categorized in 3 levels: Low, medium and high level.

<Low> <Medium > <High>


What Makes Employee Leave?
Employees do not leave an organization without any significant reason. There are certain
circumstances that lead to their leaving the organization. The most common reasons can
be:
Job is not what the employee expected to be: Sometimes the job responsibilities
don’t come out to be same as expected by the candidates. Unexpected job responsibilities
lead to job dissatisfaction.

Job and person mismatch: A candidate may be fit to do a certain type of job which
matches his personality. If he is given a job
which mismatches his personality, then he won’t be able to perform it well and will try to
find out reasons to leave the job.

• No growth opportunities: No or less learning and growth opportunities in the


current job will make candidate’s job and career stagnant.

50
• Lack of appreciation: If the work is not appreciated by the supervisor, the
employee feels de-motivated and loses interest in job.

• Lack of trust and support in coworkers, seniors and management: Trust is the
most important factor that is required for an individual to stay in the job. Non-
supportive coworkers, seniors and management can make office environment
unfriendly and difficult to work in.

• Stress from overwork and work life imbalance: Job stress can lead to work life
imbalance which ultimately many times lead to employee leaving the
organization.

• Compensation: Better compensation packages being offered by other companies


may attract employees towards themselves.

• New job offer: An attractive job offer which an employee thinks is good for him
with respect to job responsibility, compensation, growth and learning etc. can lead
an employee to leave the organization.

51
Performanc
e
Appraisal

CONTENTS
1. Introduction
2. Contents of Performance Appraisal Form
3. Process
4. Purpose
5. Objectives
6. Approaches
7. Techniques

52
8. Challenges of Performance Appraisal
9. Performance Appraisal Softwares
10. Key to change Organizational Culture
11. Linking compensation to Performance
12. Relationship between Performance Appraisal and Organizational
Performance
13. Performance Appraisal for Employees at different Levels
14. Criteria
15. Pre-requisites for Effective & Successful Performance Appraisal

“PERFORMANCE APPRAISAL”
People differ in their abilities and their aptitudes. There is always some difference
between the quality and quantity of the same work on the same job being done by two
different people. Therefore, performance management and performance appraisal is
necessary to understand each employee’s abilities, competencies and relative merit and
worth for the organization. Performance appraisal rates the employees in terms of their
performance.

53
Performance appraisals are widely used in the society. The history of performance
appraisal can be dated back to the 20th century and then to the second world war when the
merit rating was used for the first time. An employer evaluating their employees is a very
old concept. Performance appraisals are an indispensable part of performance
measurement.

Performance appraisal is necessary to measure the performance of the employees


and the organization to check the progress towards the desired goals and aims.

Performance appraisal takes into account the past performance of the


employees and focuses on the improvement of the future performance of the employees.

 CONTENTS OF PERFORMANCE APPRAISAL FORM:

1. Quality of work

• Consider accuracy, thoroughness, effectiveness.


• Pressure, ability to meet standards of quality.
• Use of time and volume of work accomplished.
• Work output matches the expectations established.

2. Quantity of work

• Competence, thoroughness, and efficiency of work regardless of volume.


• Neatness and accuracy.

3. Teamwork:

• Establish and maintain effective working relationship with others.


• Shares information and resources with others
• Follows instructions of supervisor and respond to requests from others in the team in a
helpful manner.
• Contributing work and effort to group performance to meet agreed upon objectives and
achieve team success

4. Job knowledge

• Application of appropriate level of technical and procedural knowledge in specific field


• Degree of technical competence
• Understanding of job procedures, methods, facts and information related to assignments.
• Perform duties with minimal supervision but seek guidance where and when appropriate
to the job, consults the appropriate staff

54
5. Initiative

• Consider the extent to which the employees sets own constructive work practice and
recommends and creates own procedures.
• Self-starter, develop and implement new methods, procedures, solutions, concepts,
designs and/or applications of existing designs or procedures.
• Accepts additional challenges and responsibilities and willingly assist others, self-
reliant.
• Completes assignment on time.

6. Interpersonal relations

• Consider the extent to which the employee is cooperative, considerate, and tactful in
dealing with supervisors, subordinates, peers, faculty, students and others.

7. Health and safety compliance

• The degree to which he or she complies with or over sees the compliance with university
safety rules.
• The following are also to be completed for supervisory personnel and members of the
administrative staff.

8. Communications abilities

Performance appraisal of communications includes elements as:

• Ability to listen and understand information;


• Presents information in a clear and concise manner.
• Knows appropriate way of communicating with immediate superiors and the
management
• Demonstrates respect for all individuals in all forms of communication
• Regardless of their background or culture;

9. Planning and organizing:

• Adapting to changes and using resources effectively;


• Maintains confidentiality as appropriate.
• Setting objectives, establishing priorities, developing plans;
• Arranging work schedules and prioritizing work to meet deadlines.
• Know when to ask for clarification before proceeding on a work project.

10. Problem analysis and decision making

• Anticipating problems and facilitate problem resolution.


• Willingness to make necessary and immediate decisions given incomplete information.

55
• Understanding practical and workable solutions.
• Recognizing when a decision is necessary, asking for input, making decisions and
providing information and feedback in a timely manner.

11. Staff development

• The extent to which the individual provides guidance and opportunities to his or her staff
for their development and advancement in the university.

12. Dependability

Performance appraisal of dependability includes elements as:

• Consider the extent to which the employee completes assignments on time and carries
out instructions.
• Starts work at appropriate time;
• Respects time allowed for breaks and lunch;
• Follows policies for requesting and reporting time off;
• Helps ensure work duties are covered when absent;
• Employee’s presence can be relied upon for planning purposes.
• Attendance and punctuality meets supervisor’s requirements.

 Process of Performance Appraisal

56
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of the
standards which will be used to as the base to compare the actual performance of the
employees. This step requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their contribution to the
organizational goals and objectives. The standards set should be clear, easily
understandable and in measurable terms. In case the performance of the employee cannot
be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS


Once set, it is the responsibility of the management to communicate the standards
to all the employees of the organization. The employees should be informed and the
standards should be clearly explained to the. This will help them to understand their roles
and to know what exactly is expected from them. The standards should also be
communicated to the appraisers or the evaluators and if required, the standards can also be
modified at this stage itself according to the relevant feedback from the employees or the
evaluators.

MEASURING THE ACTUAL PERFORMANCE


The most difficult part of the performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the
specified period of time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not affect the
outcome of the process and providing assistance rather than interfering in an employees
work.

57
COMPARING THE ACTUAL WITH THE DESIRED
PERFORMANCE
The actual performance is compared with the desired or the standard performance.
The comparison tells the deviations in the performance of the employees from the
standards set. The result can show the actual performance being more than the desired
performance or, the actual performance being less than the desired performance depicting
a negative deviation in the organizational performance. It includes recalling, evaluating
and analysis of data related to the employees’ performance.

DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on
one-to-one basis. The focus of this discussion is on communication and listening. The
results, the problems and the possible solutions are discussed with the aim of problem
solving and reaching consensus. The feedback should be given with a positive attitude as
this can have an effect on the employees’ future performance. The purpose of the meeting
should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions, or the
related HR decisions like rewards, promotions, demotions, transfers etc.

 Purpose of Performance Appraisal


 To review the performance of the employees over a given period of time.

 To judge the gap between the actual and the desired performance.

 To help the management in exercising organizational control.

 To diagnose the training and development needs of the future.


 Provide information to assist in the HR decisions like promotions, transfers etc.

 Provide clarity of the expectations and responsibilities of the functions to be


performed by the employees.

 To judge the effectiveness of the other human resource functions of the


organization such as recruitment, selection, training and development.

 To reduce the grievances of the employees.

 Helps to strengthen the relationship and communication between superior –


subordinates and management – employees.

58
According to a recent survey, the percentage of organizations (out of the total
organizations surveyed i.e. 50) using performance appraisal for the various purposes are
as shown in the diagram:

The most significant reasons of using Performance Appraisal are:

• Making payroll and compensation decisions – 80%

• Training and development needs – 71%

• Identifying the gaps in desired and actual performance and its cause – 76

 OBJECTIVES OF PERFORMANCE APPRAISAL:

• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.

• To help the management in exercising organizational control.

• Helps to strengthen the relationship and communication between superior –


subordinates and management – employees.

• To diagnose the strengths and weaknesses of the individuals so as to identify the


training and development needs of the future.

• To provide feedback to the employees regarding their past performance.

• Provide information to assist in the other personal decisions in the organization.

• Provide clarity of the expectations and responsibilities of the functions to be


performed by the employees.

59
• To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.

 Approaches to Performance Development

Performance appraisal - Traditional approach


Traditionally, performance appraisal has been used as just a method for
determining and justifying the salaries of the employees. Then it began to be used a
tool for determining rewards (a rise in the pay) and punishments (a cut in the pay)
for the past performance of the employees.

This approach was a past oriented approach which focused only on the past
performance of the employees i.e. during a past specified period of time. This
approach did not consider the developmental aspects of the employee performance
i.e. his training and development needs or career developmental possibilities. The
primary concern of the traditional approach is to judge the performance of the
organization as a whole by the past performances of its employees. Therefore, this
approach is also called as the overall approach. In 1950s the performance appraisal
was recognized as a complete system in itself and the Modern Approach to
performance appraisal was developed.

Performance appraisal - Modern approach


The modern approach to performance development has made the
performance appraisal process more formal and structured. Now, the performance
appraisal is taken as a tool to identify better performing employees from others,
employees’ training needs, career development paths, rewards and bonuses and their
promotions to the next levels.
Appraisals have become a continuous and periodic activity in the organizations. The
results of performance appraisals are used to take various other HR decisions like
promotions, demotions, transfers, training and development, reward outcomes. The
modern approach to performance appraisals includes a feedback process that helps
to strengthen the relationships between superiors and subordinates and improve
communication throughout the organization.
The modern approach to performance appraisal is a future oriented approach
and is developmental in nature. This recognizes employees as individuals and
focuses on their development.

 Techniques Of Performance Appraisal

60
The various methods and techniques used for performance appraisal can be
categorized as the following traditional and modern methods:

A) Traditional Methods of Performance Appraisal

1. ESSAY APPRAISAL METHOD


This traditional form of appraisal, also known as “Free Form method”
involves a description of the performance of an employee by his superior. The
description is an evaluation of the performance of any individual based on the facts
and often includes examples and evidences to support the information. A major
drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD


This is one of the oldest and simplest techniques of performance appraisal.
In this method, the appraiser ranks the employees from the best to the poorest on the
basis of their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this
method compares each employee with all others in the group, one at a time. After all
the comparisons on the basis of the overall comparisons, the employees are given the
final rankings.

61
4. CRITICAL INCIDENTS METHODS
In this method of performance appraisal, the evaluator rates the employee on
the basis of critical events and how the employee behaved during those incidents. It
includes both negative and positive points. The drawback of this method is that the
supervisor has to note down the critical incidents and the employee behavior as and
when they occur.

5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer
discusses and interviews the supervisors to evaluate and rate their respective
subordinates. A major drawback of this method is that it is a very time consuming
method. But this method helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD
The rater is given a checklist of the descriptions of the behavior of the
employees on job. The checklist contains a list of statements on the basis of which the
rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE


In this method, an employee’s quality and quantity of work is assessed in a
graphic scale indicating different degrees of a particular trait. The factors taken into
consideration include both the personal characteristics and characteristics related to
the on-the-job performance of the employees. For example a trait like Job Knowledge
may be judged on the range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION
To eliminate the element of bias from the rater’s ratings, the evaluator is
asked to distribute the employees in some fixed categories of ratings like on a normal
distribution curve. The rater chooses the appropriate fit for the categories on his own
discretion.

B) Modern-Method

1. MANAGEMENT BY OBJECTIVES
The concept of ‘Management by Objectives’ (MBO) was first given by
Peter Drucker in 1954. It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employees set their goals to be
achieved, the standards to be taken as the criteria for measurement of their performance
and contribution and deciding the course of action to be followed.
The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the comparison
of the employee’s actual performance with the standards set. Ideally, when employees

62
themselves have been involved with the goal setting and the choosing the course of action
to be followed by them, they are more likely to fulfill their responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO


The principle behind Management by Objectives (MBO) is to create empowered
employees who have clarity of the roles and responsibilities expected from them,
understand their objectives to be achieved and thus help in the achievement of
organizational as well as personal goals.
Some of the important features and advantages of MBO are:

 Clarity of goals – With MBO, came the concept of SMART goals i.e. goals
that are:

Specific
Measurable
Achievable
Realistic,
Time bound.

The goals thus set are clear, motivating and there is a linkage between
organizational goals and performance targets of the employees.

 The focus is on future rather than on past. Goals and standards are set for the
performance for the future with periodic reviews and feedback.

 Motivation – Involving employees in the whole process of goal setting and


increasing employee empowerment increases employee job satisfaction and
commitment.

 Better communication and Coordination – Frequent reviews and interactions


between superiors and subordinates helps to maintain harmonious
relationships within the enterprise and also solve many problems faced during
the period.

2. 360-DEGREE-PERFORMANCE-APPRAISAL METHOD
360 degree feedback, also known as 'multi-rater feedback', is the most
comprehensive appraisal where the feedback about the employees’ performance comes
from all the sources that come in contact with the employee on his job.
360 degree respondents for an employee can be his/her peers, managers (i.e.
superior), subordinates, team members, customers, suppliers/ vendors - anyone who
comes into contact with the employee and can provide valuable insights and information
or feedback regarding the “on-the-job” performance of the employee.
360 degree appraisal has four integral components:
1. Self appraisal

63
2. Superior’s appraisal

3. Subordinate’s appraisal

4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and
weaknesses, his achievements, and judge his own performance. Superior’s appraisal
forms the traditional part of the 360 degree appraisal where the employees’
responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters


like communication and motivating abilities, superior’s ability to delegate the work,
leadership qualities etc. Also known as internal customers, the correct feedback given by
peers can help to find employees’ abilities to work in a team, co-operation and sensitivity
towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360
degree appraisals have high employee involvement and also have the strongest impact on
behavior and performance. It provides a "360-degree review" of the employees’
performance and is considered to be one of the most credible performance appraisal
methods.

360 degree appraisal is also a powerful developmental tool because when


conducted at regular intervals (say yearly) it helps to keep a track of the changes others’
perceptions about the employees. A 360 degree appraisal is generally found more suitable
for the managers as it helps to assess their leadership and managing styles. This technique
is being effectively used across the globe for performance appraisals. Some of the
organizations following it are Wipro, Infosys, and Reliance Industries etc.

Arguments Against 360 Degree Performance Appraisal

64
Despite the fact that 360 degree appraisals are being widely used throughout the
world for appraising the performance of the employees at all levels, many HR experts and
professionals argument against using the technique of 360 degree appraisals. The main
arguments are:

• 360 performance rating system is not a validated or corroborated technique for


performance appraisal.

• With the increase in the number of raters from one to five (commonly), it become
difficult to separate, calculate and eliminate personal biasness and differences.

• It is often time consuming and difficult to analyze the information gathered.

• The results can be manipulated by the employees towards their desired ratings
with the help of the raters.

• The 360 degree appraisal mechanism can have an adversely effect the motivation
and the performance of the employees.

• 360 degree feedback – as a process- requires commitment of top management and


the HR, resources (time, financial resources etc), planned implementation and
follow-up.

• 360 degree feedback can be adversely affected by the customers’ perception of the
organization and their incomplete knowledge about the process and the clarity of
the process.

Often, the process suffers because of the lack of knowledge on the part of the participants
or the raters.

3. ASSESSMENT CENTRES
An assessment centre typically involves the use of methods like social/informal
events, tests and exercises, assignments being given to a group of employees to assess
their competencies to take higher responsibilities in the future. Generally, employees are
given an assignment similar to the job they would be expected to perform if promoted.
The trained evaluators observe and evaluate employees as they perform the assigned jobs
and are evaluated on job related characteristics.
The major competencies that are judged in assessment centre are interpersonal
skills, intellectual capability, planning and organizing capabilities, motivation, career
orientation etc. assessment centre are also an effective way to determine the training and
development needs of the targeted employees.

4. BEHAVIORALLY ANCHORED RATING SCALES

65
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which
combines the graphic rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of behavioral statements
describing important job performance qualities as good or bad (for e.g. the qualities like
inter-personal relationships, adaptability and reliability, job knowledge etc). These
statements are developed from critical incidents.
In this method, an employee’s actual job behavior is judged against the desired
behavior by recording and comparing the behavior with BARS. Developing and
practicing BARS requires expert knowledge.

5. HUMAN RESOURCE ACCOUNTING METHOD


Human resources are valuable assets for every organization. Human resource
accounting method tries to find the relative worth of these assets in the terms of money. In
this method the performance of the employees is judged in terms of cost and contribution
of the employees. The cost of employees include all the expenses incurred on them like
their compensation, recruitment and selection costs, induction and training costs etc
whereas their contribution includes the total value added (in monetary terms). The
difference between the cost and the contribution will be the performance of the
employees. Ideally, the contribution of the employees should be greater than the cost
incurred on them.

 Challenges Of Performance Appraisal


In order to make a performance appraisal system effective and
successful, an organization comes across various challenges and problems. The
main challenges involved in the performance appraisal process are:

• Determining the evaluation criteria


Identification of the appraisal criteria is one of the biggest problems faced
by the top management. The performance data to be considered for evaluation
should be carefully selected. For the purpose of evaluation, the criteria selected
should be in quantifiable or measurable terms

• Create a rating instrument


The purpose of the performance appraisal process is to judge the
performance of the employees rather than the employee. The focus of the system
should be on the development of the employees of the organization.

• Lack of competence
Top management should choose the raters or the evaluators carefully.
They should have the required expertise and the knowledge to decide the criteria
accurately. They should have the experience and the necessary training to carry
out the appraisal process objectively.

66
• Errors in rating and evaluation
Many errors based on the personal bias like stereotyping, halo effect (i.e.
one trait influencing the evaluator’s rating for all other traits) etc. may creep in the
appraisal process. Therefore the rater should exercise objectivity and fairness in
evaluating and rating the performance of the employees

• Resistance
The appraisal process may face resistance from the employees and the
trade unions for the fear of negative ratings. Therefore, the employees should be
communicated and clearly explained the purpose as well the process of appraisal.
The standards should be clearly communicated and every employee should be
made aware that what exactly is expected from him/her.

 Performance Appraisal Software


The growing size of the organisations, the competition in the labour market and
the importance of the performance management and appraisals have given way to the use
of performance appraisal softwares. Many companies providing the HR services and the
software companies provide the performance appraisal softwares.

The performance appraisals softwares automate the appraisal processes and assist
the HR by adding online capacities to the processes. The performance appraisal software
can be customized according to the needs of the organisation. The various forms and other
processes can be designed in accordance to the practices being followed in the
organisation.

The software standardizes the appraisal process. The software applications also
have guidelines for the users to guide them throughout the process, alerting the users
about the errors and mistakes (if any), suggesting the appropriate language to be used,
provides a systematic records of the necessary documents to the rater and the HR
Department.

Several software packages are available which also provide the 360-degree review
program so that employees can get a multi-rater feedback about their performance.

Benefits of using performance appraisal softwares


By using the performance appraisal softwares, an organisation can reap the following
benefits:

• The performance appraisal software can be implemented organisation wide,


covering all the employees at the levels (from lowest rank to top management) and
across all the branches of the organisation throughout the world.

67
• Designed with the latest technologies, they are easy to understand and make things
structured, organized and standardized throughout the organisation.

• Performance Measures, KPI and KRA’s, goals and objectives for each employee,
team and department can be weighted and listed according to their importance and
priority.

• Use of the standard performance appraisal softwares can help to reduce the
subjectivity and the bias in the ratings of the appraisers.

• It facilitates the calculations and adjustments of the performance related pay and
other related HR decisions.

• Automatic reminders can be sent to the employees and the concerned authorities
for the due appraisals.

• It helps the HR department in appraising the performance and to manage the


performance of the employees efficiently and effectively.

• Helps to improve the productivity of the employees and employee retention in the
organisation.

• Keeps a detailed record of the past performances and the reviews of the
employees.

 Performance Appraisal Process - Key to Change organizational


Culture

The performance appraisal process provides an opportunity for introducing organizational


change. It facilitates the process of change in the organizational culture. The interactive
sessions between the management and the employees, the mutual goal setting and the
efforts towards the career development of the employees help the organization to become
a learning organization. Conducting performance appraisals on a regular basis helps it to
become an ongoing part of everyday practice and helps employees to take the
responsibility of their work and boosts their professional development.

Various studies in the field of human resources have already proved that performance
appraisal process can affect the individual performance (in a negative or positive way),
thus having an impact on the collective performance.

Performance appraisal: An opportunity for an organisational culture shift

• Performance appraisal process focuses on the goal setting approach throughout the
organisation.

68
• Performance appraisal helps the clarity and understanding of the roles and
responsibilities of the employees.

• The performance appraisal processes have the potential positive effects on


recruitment

• It increases organisational effectiveness i.e. what to do and how to do through a


formal and structured approach.

• Some evidence of the beneficial effects of team rewards

Therefore, performance appraisal is also an important link in the process of change in


organization culture.

 LINKING COMPENSATION TO PERFORMANCE

One of the latest strategies being followed in all sectors through out the world for
retention and talent management is “linking compensation to performance”. Commonly
known as “Performance pay” or “Performance based pay”, it links the compensation of
the employees to their performance and their contribution to the organizational goals.
Therefore, periodic performance reviews play a vital role and provide the basis of
performance related pay.

Commissions, incentives and bonuses, piece rate pay help the employer to pay the
employee according to their productivity and hard work.

The process of performance based pay involves:

• Deciding and clearly defining the performance goals and the performance
measures
• Setting the target bonus for different levels of performances
• Measuring the performance of the employee
• Giving rewards and bonus according to performance

Organizations are also designing variable compensation plans for various roles and
positions in the organization.

 Types of Performance Pay


• Merit pay – The first step to performance pay, merit pay means setting some basic
salary according to the position and the rank of the employee and the variable part
of the salary is based on the periodic performance reviews.

69
• Profit Sharing – Sharing the profits of the enterprise with the employees as
bonus.

• Incentives and Performance Bonus – Rewards for special accomplishments or


fulfillment of the targets set such as sales commission.

• Gain sharing - Sharing of gains as a result of the increased performance of the


employees with them.

Although performance related pay has always been a topic of discussions and
controversies with many arguments against it, but it has also been proved that
performance based pay motivates employees to perform better and earn, and encourages
learning, innovation, creativity, problem solving and empowerment which can be
facilitated through proper performance measurement and reviews.

 Relationship Between Performance Appraisal and Organizational


Performance

Performance appraisal processes are one of the central pillars of the performance
management which is directly related to the organizational performance and have a direct
impact on it. Employee performance ultimately effects the organizational performance
and objectives.

According to a few HR professionals, the appraisals have no value for the


organisation as there is no direct relationship in performance appraisals and the
organizational performance. Also, there is no strong evidence to prove that appraisals
positively impact the performance of the employees. But the HR professionals who see
the organizational performance as a result or sum of the employee’s performance, argue
that apart from the direct benefits to the organisation, appraisals contribute to employee
satisfaction, which in turn leads to improved performance.

For an organisation to be effective, the goals, the standards and the action plans
need to be planned well in advance. Thus, performance appraisal facilitates the
achievement of organizational goals. It also facilitates the optimal use of the
organizational resources.

Performance appraisals – a double-edged sword


Performance appraisal is like a double edged sword for an organisation. Although
it has many benefits for the organisation, various studies have also revealed that
performance appraisals have the equal probability of having a bad impact on the
organizational as well as the employee performance.

Where the performance appraisal improves the work performance and employee
satisfaction, it can also demotivate employees and leaving a bad impression on the good
employees. Most of the employees do not approve of continuous performance monitoring
and performance appraisals, and also consider it as a burdensome activity. According to

70
Professor Kuvaas “Performance appraisals and other tools which involve feedback
and target management should be adapted to the employee’s individual needs and
characteristics. Otherwise, there is a risk of harming the good employees without
being able to help the less good.”

Performance appraisal processes can create a sense of insecurity in the working


environment and can become an obstacle in achieving the required changes in the
attitudes and the performance of the employees. The element of bias in the appraisals can
also worsen the situation.

Therefore, performance appraisals can effect the organizational performance both


positively and negatively, and should be dealt with care and expert knowledge and
experience.

 Performance Appraisal For Employees at Different Levels

Performance appraisal is important for employees at all levels throughout the


organization. The parameters, the characteristics and the standards for evaluation may be
different, but the fundamentals of performance appraisal are the same. But as the level of
the employees’ increases, performance appraisal is more effectively used as the tools of
managing performance.

Performance appraisals of Managers:


Appraising the performance of managers is very important, but at the same time,
it is one of the most difficult tasks in the organization. It is difficult because most of the
managerial work cannot be quantified i.e. it is qualitative in nature like leading his/her
team, guiding, motivating, planning etc.
Therefore, the two things to be noted and evaluated for the purpose of appraisals are:

• Performance in accomplishing goals, and

• Performance as managers

Performance in accomplishing goals


Managers are responsible for the performance of their teams as a whole.
Performance in accomplishing goals would mean to look at the completion or
achievement of the goals set for a team of employees which is being assigned to or
working under a particular manager. The best measuring criteria for a manager are hi
goals, his plans of course of action to achieve them and the extent of achievement of the
goals.

Performance as managers

71
The responsibilities of managers include a series of activities which are concerned
with planning, organizing, directing, leading, motivating and controlling. Managers can
be rated on the above parameters or characteristics

 Criteria for measuring performance at different levels:


The criteria for measuring performance changes as the levels of the employees and
their roles and responsibilities change.
A few examples for each level are described below:

For top level management

• Degree of organizational growth and expansion

• Extent of achievement of organizational goals

• Contribution towards the society

• Profitability and return on capital employed

For middle level managers

• Performance of the departments or teams

• Co-ordination with other departments

• Optimal use of resources

• Costs Vs. revenues for a given period of time

• The communication with superiors and subordinates

For front line supervisors

• Quantity of actual output against the targets

• Quality of output against the targets

• Number of accidents in a given period

• Rate of employee absenteeism

 Pre-requisites for Effective & Successful Performance Appraisal

The essentials of an effective performance system are as follows:

72
• Documentation – Means continuous noting and documenting the performance. It
also helps the evaluators to give a proof and the basis of their ratings.

• Standards / Goals – The standards set should be clear, easy to understand,


achievable, motivating, time bound and measurable.

• Practical and simple format - The appraisal format should be simple, clear, fair
and objective. Long and complicated formats are time consuming, difficult to
understand, and do not elicit much useful information.
• Evaluation technique – An appropriate evaluation technique should be selected;
the appraisal system should be performance based and uniform. The criteria for
evaluation should be based on observable and measurable characteristics of the
behavior of the employee.

• Communication – Communication is an indispensable part of the performance


appraisal process. The desired behavior or the expected results should be
communicated to the employees as well as the evaluators. Communication also
plays an important role in the review or feedback meeting. Open communication
system motivates the employees to actively participate in the appraisal process.

• Feedback – The purpose of the feedback should be developmental rather than


judgmental. To maintain its utility, timely feedback should be provided to the
employees and the manner of giving feedback should be such that it should have
a motivating effect on the employees’ future performance.

• Personal Bias – Interpersonal relationships can influence the evaluation and the
decisions in the performance appraisal process. Therefore, the evaluators should
be trained to carry out the processes of appraisals without personal bias and
effectively.

73
In JBPL,
Management
By
Objective
(MBO)
Method Is
Used

74
PAY
FOR
PERFORMANCE

75
“Performance Related Pay”
Performance Related Pay
• Performance Related Pay (PRP) or Variable Pay is the reward paid to individuals
based on performance against the predetermined objectives aligned to the
business.
• PRP is essentially a method of linking the pay of an individual to his/her
performance achieved at work (usually) against agreed objectives.
• It is a method to remove or bridge the gap between pay and performance.
• It is based on premise in general that top performers are funded at the cost of
lower/non-performer.

Ways of linking Pay to Performance


• Varieties of ways such as cash bonuses, additional salary/increments, faster
incremental progression, all of which have their strong and weak points.
• Different plans each uniquely suited to different employee groups/departments.
• Separate from profit related pay, group incentive schemes or profit sharing
scheme.
• Not to be confused with base pay adjustments.

Benefits:
• Motivating people and creating performance oriented culture
• To attract, retain and utilize most talented or right people in the organization
• To catch top performers attention and sends a signal to a poor performing
employee
• Sends vital signals about the organization priorities and values
• Transforming reward from entitlement to achievement
• Close to 78% companies view that this has positive impact on business results
• Shifting compensation cost from fixed to variable expenses
• 20% people contributing 80% of the results should be suitably rewarded
• Best way to increase productivity to secure dominance in the market
• Paying for performance works much better in down times than in boom times
• It is right and proper to pay in accordance with the contribution made by
individual

Creating Effective PRP Plan


• Full commitment from the management and senior executives
• Compensation system that
• Differentiates rewards, not just performance
• Sets clear performance-reward linkage
• Support and involvement of senior executives and managers who will own,
educate and communicate the plan

76
• Good “Performance Management Program (PMP)” in place which
• Establishes clearly defined “SMART” individual objectives and competencies
aligned to overall organization goals
• Encourages and supports open, honest feedback and review of all
• Hold employees accountable for results
• Hold managers for substandard performance and for improving or removing poor
performers
• Formally recognizes and rewards the higher performance
• Clear identification of the target group, department, level etc.
• Requires high performance culture

77
“MEASURING PERFORMANCE”
GOALS 2007

December, 2006
Name Job Title Qualification
Reporting to Deptt. Date of joining
GOALS FOCUSING ON GROWING THE BUSINESS
GOALS/OBJECTIVES DESIRED STRATEGIC
RATING PRIORITIES/ACTION PLAN
(66)
1. SALES VOLUME/ 25
MARKET SHARE

2. DISTRIBUTION 8
LEADERSHIP
10

3. VISIT MANAGEMENT 12

4. PROFITABILITY/ COST/
DISCOUNT CONTROL
12

5. PROCESS ORIENTATION 67
GOALS FOCUSING ON GROWING PEOPLE/ORG. CAPABILITY
OBJECTIVES DESIRED STRATEGIC
RATING(33) PRIORITIES/ACTION PLAN
1. COACH AND DEVELOP 18
FOR
15
2. SALES TRAINING 33
PERFORMANCE RATING SCALES & LEVELS
5 SAT Significant Above Target : Significantly exceeded expectations
4 AT Above Target : Consistently exceeded expectations
3 OT On Target : meet all & exceeded some expectations
2 BT Below Target : Meet some, but not all, expectations
1 SBT Significant Below Target : Significantly below expectations

78
“Arriving at Performance Level”
PART - I PART - II
PERFORMANCE
WEIGHTED WEIGHTED
PERFORMANCE LEVEL
AVERAGE AVERAGE
LEVEL ( TOTAL OF
PERFORMANCE PERFORMANCE
PART I & II)
LEVEL LEVEL
15
SAT 5 5 X 2 = 10 5X1=5 15 14
13
12
AT 4 4X2=8 4X1=4 12
11
10
OT 3 3X2=6 3X1=3 9 9
8
7
BT 2 2X2=4 2X1=2 6 6
5
4
3
SBT 1 1X2=2 1X1=1 3
2
1

79
“Establishing Linkage of Performance
to Reward”
PART - I PART - I I B
TOTA
ASE
WEIGHTED WEIGHTED L OF VARIAB TOTA
PERFORMA PAY
AVERAGE AVERAGE PART LE PAY L
NCE LEVEL RAIS
PERFORMA PERFORMA I & (%) INCR
E
NCE LEVEL NCE LEVEL II
(%)
15 15 15 30
SAT 5 5 X 2 = 10 5 X 1 = 5 15 14 14 11 25
13 13 7 20
12 12 4 16
AT 4 4X2=8 4 X 1 = 4 12
11 11 2 13
10 10 0 10
OT 3 3X2=6 3X1=3 9 9 9 0 9
8 8 0 8
7 7 0 7
BT 2 2X2=4 2X1=2 6 6 6 0 6
5 5 0 5
4 0 0 0
3 0 0 0
SBT 1 1X2=2 1X1=1 3
2 0 0 0
1 0 0 0

80
Data
Analysis

81
Number of Employees working at different levels in JBPL

Employees Years
2005 2006 2007 2008
Top-level 14 17 23 22
Managers
Middle-level 78 88 102 106
Managers
Front-line 23 22 22 41
supervisors
Total 115 127 147 169

Number of Top-level Managers in different departments in


JBPL

Managers Years
2005 2006 2007 2008
HR 1 1 1 1
Sales 4 6 7 8
Marketing 1 1 1 1
Production 5 4 7 7
& Quality
Finance 1 2 2 2
Shipping 1 1 2 1
Purchase 0 1 1 1
Head Office 1 1 1 0
Store 0 0 1 1

82
Number of Employees placed at different Performance Level
according to their roles and responsibilities change:

Top-Level Managers:
Year 2005=14 Managers
Year 2006=17 Managers
Year 2007=23 Managers
Year 2008=22 Managers

16
14
12
SAT
10
AT
8
OT
6 BT
4 SBT
2
0
2005 2006 2007 2008

Performance Level Years


2005 2006 2007 2008
SAT 5 4 6 10 16
AT 4 7 9 11 6
OT 3 3 2 2 -
BT 2 - - - -
SBT 1 - - - -

In 2005, there were 14 Managers. 3 more Managers were joined in 2006 and 6
Managers were joined in 2007. But in 2008, there were only 22 Managers because one of
them is transferred to another State.

83
ANALYSIS:
 Most of the Managers are at SAT (Significant Above Target)
Performance Level
 Maximum of the Managers are at AT (Above Target) Performance
Level.
 Some of the Managers are at OT (On Target) Performance Level.
This is due to their efficiency and contribution towards the organization.
Middle-Level Managers:
Year 2005=78 Managers
Year 2006=88 Managers
Year 2007=102 Managers
Year 2008=106 Managers

60

50

40 SAT
AT
30
OT
20 BT
SBT
10

0
2005 2006 2007 2008

Performance Level Years


2005 2006 2007 2008
SAT 5 9 19 23 31
AT 4 25 30 50 60
OT 3 42 38 29 15
BT 2 2 1 - -
SBT 1 - - - -

In 2005, there were 78 Managers. 10 more Managers were joined in 2006, 14


Managers in 2007 and 4 Managers in 2008 were joined. There is a continues increase in
the number of Middle Level Managers.

ANALYSIS:

Poor Performance due to

84
 Lack of alignment of individual and organizational goals.
 Managers are not thrilled to deliver less then favorable news.
 Influence of higher rating by other department.

But there were continues improvement in their Performance Level.

Front-Line Supervisors:
Year 2005=23 Supervisors
Year 2006=22 Supervisors
Year 2007=22 Supervisors
Year 2008=41 Supervisors

25

20

SAT
15
AT
OT
10
BT
SBT
5

0
2005 2006 2007 2008

Performance Level Years


2005 2006 2007 2008
SAT 5 5 7 10 21
AT 4 5 6 8 15
OT 3 10 7 3 5
BT 2 3 2 1 -
SBT 1 - - - -

In 2005, there were 23 Supervisors. 22 Supervisors in 2006 and in 2007 but in


2008, there was high increase in number i.e. 41 Supervisors. There is a continues increase
in the number of Front-Line Supervisors.

ANALYSIS:

Poor Performance due to


 Lack of confidence and competence.

85
 Lack of productivity and effectiveness, contributes least to organization bottom
line.

SUGGESTIONS AND RECOMMENDATION:


1. JBPL should build a strong management and development framework to stand the
vigorous competition from the various industries.
2. Paper work must be reduced, computerized work should be more.
3. There should be on-line information of all the employees regarding all the activities
performed by them like performance, communication skills, quality of work, over
time devoted by each employee, etc.
4. By adopting MBO method, Employees compete against each other and don’t help
others.

CONCLUSION:
The Performance Appraisal methods vary from one organization to another.
Change in method of Performance Appraisal has observable and immediate side effect
on organizational processes like work task, job design, organizational structure,
knowledge and skill required, and values, attitudes and behavior of employees.
Substantive changes in one or more of the above factors leads to perceive or actual
psychological threat of job displacement, reduction in economic security, disruption of
social arrangements and redefining of authority relationships. These threaten the
psychological and social status of an employee, triggering off resistance to change.

86