Nidhi STR New

SUMMER TRAINING REPORT ON PERFORMANCE APPRAISAL
Submitted in partial fulfillment of the requirements for Master of Business Administration (M.B.A)
BY NIDHI GOSSEL ENROLMENT NO 0121MBA144 BATCH OF 2012-2014
Doon Business School 122Mi,Behind Pharma City, Selaqui, Dehradun-248001, Uttarakhand
PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION
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ACKNOWLEDGEMENT
I express my sincere thanks to my Industry guide, MR. BHARAT BHUSHAN RATTAN , Deptt. HR and my Internal guide, MRS. PUSHPA KATARIA, Deptt. HR for guiding me right path from the inception till the successful completion of the project. I sincerely acknowledge them for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support they had provided to me with all stages of this project. I would also like to thank the supporting staff MS. NEHA SIROHI , MS. BHAWNA & MRS. SIMPLE from HR Department, for their help and cooperation throughout the project.
Student Name : Date :
Signature :
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CERTIFICATE OF ORIGINALITY
, Enrollment No.
of
, am a full-time bona fide student of Master of Business Administration (MBA) Program of Doon Business School, Dehradun. I hereby certify that this training report / project work carried out by me at on_____________________ submitted in partial fulfillment of the requirements of the program is an original work of mine under the guidance of the industry guide and internal (faculty) guide and is not based on or
reproduced from any existing work of any other person or on any earlier work undertaken at any other time or for any other purpose, and has not been submitted anywhere else at any time.
Students Signature : Date : Internal Guides Signature : Date :
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EXECUTIVE SUMMARY
My Internship at AKUMS DRUGS & PHARMACEUTICALS LTD. was a great exposure to the industry. After going through my summer internship program , I had a firsthand experience of how an industry and HR Department works.
INTRODUCTION OF PROJECT
This project is about Performance appraisal system at AKUMS DRUGS AND PHARMACEUTICALS Ltd. Performance appraisal is a systematic and periodic process that asses an individual employees job performance and productivity in relation to certain pre-established criteria and organizational objectives.
PROJECT TITLE
The title of the project is Performance Appraisal and its implementation at AKUMS DRUGS AND PHARMACEUTICALS Ltd. As the name indicates it is an study of Performance Appraisal system prevalent in the organization.
ORGANISATION
Akums Drugs & Pharmaceuticals Ltd, Haridwar, (India), is an internationally recognized WHO-GMP certified and one of the leading contract manufacturing and has rapidly emerged as the premier integrated pharmaceutical company in India. Akums Drugs & Pharmaceuticals Ltd. was incorporated on December 19th, 2004. Its business focuses on the manufacture and marketing of pharmaceutical products and services to clients across the globe. The company is one of the largest manufacturers and six state-of-theart manufacturing facilities have huge per day capacity to produce formulations in practically all dosage forms, i.e. Tablets, Capsules, Soft Gels, Dry Syrups, Liquid Orals, Powder in Sachet, Dry & Liquid Injections, Pre-filled Syringes, Large Volume Parenterals (up to 100 ml) and Eye / Ear / Nasal Drops in Form Fill & Seal and Three Piece Packs.
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TABLE OF CONTENTS
S. NO
CONTENTS
PAGE NO.
1 2 3 4 5 6 7 13 35 38 39 40 41 42 43 44 46 47 60 68 69 70 71
1 2 3 4 5 6 7 8 9 10 11 12 13 15 16 17 18 19 20 21 22 23 24
Annexure 1 Acknowledgement Certificate of Originality Executive Summary Contents PART - A Industry Profile Company Profile Mckinseys 7S frame work SWOT Analysis Learning Experience PART - B Statement Of The Problem Objectives of The Study Scope Of The Study Methodology Limitations Of The Study Project Rationale Data Analysis Conclusion Suggestions Bibliography Questionnaire
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PART - A
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INDUSTRY PROFILE
The pharmaceutical industry develops, produces and markets drugs or pharmaceuticals licensed for use as medications.[1] Pharmaceutical companies are allowed to deal in generic or brand medications and medical devices. They are subject to a variety of laws and regulations regarding the patenting, testing and ensuring safety and efficacy and marketing of drugs. The word pharmaceutical comes from the Greek word pharma.
PHARMACEUTICAL INDUSTRY IN INDIA The Pharmaceutical industry in India is the world's third-largest in terms of volume and stands 14th in terms of value. According to Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between 2008 and September 2009 was US$21.04 billion. While the domestic market was worth US$12.26 billion. Sale of all types of medicines in the country is expected to reach around US$19.22 billion by 2012. Exports of pharmaceuticals products from India increased from US$6.23 billion in 200607 to US$8.7 billion in 200809 a combined annual growth rate of 21.25%. According to PricewaterhouseCoopers (PWC) in 2010, India joined among the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with value reaching US$50 billion. Some of the major pharmaceutical firms including Sun Pharmaceutical, Cadila Healthcare and Piramal Enterprises. The government started to encourage the growth of drug manufacturing by Indian companies in the early 1960s, and with the Patents Act in 1970. However, economic liberalisation in 90s by the former Prime Minister P.V. Narasimha Rao and the then Finance Minister, Dr. Manmohan Singh enabled the industry to become what it is today. This patent act removed composition patents from food and drugs, and though it kept process patents, these were shortened to a period of five to seven years. The lack of patent protection made the Indian market undesirable to the multinational companies that had dominated the market, and while they streamed out. Indian companies carved a niche in both the Indian and world markets with their expertise in reverse-engineering new processes for manufacturing drugs at low costs. Although some of the larger companies have taken baby steps towards drug innovation, the industry as a whole has been following this business model until the present. India's biopharmaceutical industry clocked a 17 percent growth with revenues of Rs. 137 billion ($3 billion) in the 200910 financial year over the previous fiscal. Biopharma was the biggest contributor generating 60 percent of the industry's growth at Rs. 88.29 billion, followed by bio-services at Rs. 26.39 billion and bio-agri at Rs. 19.36 billion.
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Pharmaceutical industry today The number of purely Indian pharma companies is fairly low. Indian pharma industry is mainly operated as well as controlled by dominant foreign companies having subsidiaries in India due to availability of cheap labour in India at lowest cost. In 2002, over 20,000 registered drug manufacturers in India sold $9 billion worth of formulations and bulk drugs. 85% of these formulations were sold in India while over 60% of the bulk drugs were exported, mostly to the United States and Russia. Most of the players in the market are small-to-medium enterprises; 250 of the largest companies control 70% of the Indian market. Thanks to the 1970 Patent Act, multinationals represent only 35% of the market, down from 70% thirty years ago. Most pharma companies operating in India, even the multinationals, employ Indians almost exclusively from the lowest ranks to high level management. Mirroring the social structure, firms are very hierarchical. Homegrown pharmaceuticals, like many other businesses in India, are often a mix of public and private enterprise. Although many of these companies are publicly owned, leadership passes from father to son and the founding family holds a majority share. In terms of the global market, India currently holds a modest 12% share, but it has been growing at approximately 10% per year. India gained its foothold on the global scene with its innovatively engineered generic drugs and active pharmaceutical ingredients (API), and it is now seeking to become a major player in outsourced clinical research as well as contract manufacturing and research. There are 74 US FDA-approved manufacturing facilities in India, more than in any other country outside the U.S, and in 2005, almost 20% of all Abbreviated New Drug Applications (ANDA) to the FDA are expected to be filed by Indian companies. Growth in other fields notwithstanding, generics are still a large part of the picture. London research company Global Insight estimates that Indias share of the global generics market will have risen from 4% to 33% by 2007. The Indian pharmaceutical industry has become the third largest producer in the world and is poised to grow into an industry of $20 billion in 2015 from the current turnover of $12 billion.
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Patent As it expands its core business, the industry is being forced to adapt its business model to recent changes in the operating environment. The first and most significant change was the 1 January 2005 enactment of an amendment to Indias patent law that reinstated product patents for the first time since 1972. The legislation took effect on the deadline set by the WTOs Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, which mandated patent protection on both products and processes for a period of 20 years. Under this new law, India will be forced to recognise not only new patents but also any patents filed after 1 January 1995. Indian companies achieved their status in the domestic market by breaking these product patents, and it is estimated that within the next few years, they will lose $650 million of the local generics market to patent-holders. In the domestic market, this new patent legislation has resulted in fairly clear segmentation. The multinationals narrowed their focus onto high-end patients who make up only 12% of the market, taking advantage of their newly bestowed patent protection. Meanwhile, Indian firms have chosen to take their existing product portfolios and target semi-urban and rural populations.
Product development Indian companies are also starting to adapt their product development processes to the new environment. For years, firms have made their ways into the global market by researching generic competitors to patented drugs and following up with litigation to challenge the patent. This approach remains untouched by the new patent regime and looks to increase in the future. However, those that can afford it have set their sights on an even higher goal: new molecule discovery. Although the initial investment is huge, companies are lured by the promise of hefty profit margins and thas a legitimate competitor in the global industry. Local firms have slowly been investing more money into their R&D programs or have formed alliances to tap into these opportunities.
Small and medium enterprises As promising as the future is for a whole, the outlook for small and medium enterprises (SME) is not as bright. The excise structure changed so that companies now have to pay a 16% tax on the maximum retail price (MRP) of their products, as opposed to on the ex-factory price. Consequently, larger companies are cutting back on outsourcing and what business is left is shifting to companies with facilities in the four tax-free states Himachal Pradesh, Jammu & Kashmir, Uttaranchal and Jharkhand. Consequently a large number of pharmaceutical manufacturers shifted their plant to these states, as it became almost impossible to continue operating in non-tax free zones. But in a matter of a couple of years the excise duty was revised on two occasions, first it was reduced to 8% and then to 4%. As a result the benefits of shifting to a tax free zone was negated. This resulted in, factories in the tax free zones, to start up third party manufacturing. Under this these factories produced goods under the brand names of other parties on job work basis.
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As SMEs wrestled with the tax structure, they were also scrambling to meet the 1 July deadline for compliance with the revised Schedule M Good Manufacturing Practices (GMP). While this should be beneficial to consumers and the industry at large, SMEs have been finding it difficult to find the funds to upgrade their manufacturing plants, resulting in the closure of many facilities. Others invested the money to bring their facilities to compliance, but these operations were located in non-tax-free states, making it difficult to compete in the wake of the new excise tax.
Challenges Even after the increased investment, market leaders such as Ranbaxy and Dr. Reddys Laboratories spent only 510% of their revenues on R&D, lagging behind Western pharmaceuticals like Pfizer, whose research budget last year was greater than the combined revenues of the entire Indian pharmaceutical industry. This disparity is too great to be explained by cost differentials, and it comes when advances in genomics have made research equipment more expensive than ever. The drug discovery process is further hindered by a dearth of qualified molecular biologists. Due to the disconnect between curriculum and industry, pharmas in India also lack the academic collaboration that is crucial to drug development in the West and so far.
Relationship between pharmaceuticals and biotechnology Unlike in other countries, the difference between biotechnology and pharmaceuticals remains fairly defined in India. Bio-tech there still plays the role of pharmas little sister, but many outsiders have high expectations for the future. India accounted for 2% of the $41 billion global biotech market and in 2003 was ranked 3rd in the AsiaPacific region and 11th in the world in number of biotechs.[45] In 2004-5, the Indian biotech industry saw its revenues grow 37% to $1.1 billion. The Indian biotech market is dominated by biopharmaceuticals; 75% of 20045 revenues came from biopharmaceuticals, which saw 30% growth last year. Of the revenues from biopharmaceuticals, vaccines led the way, comprising 47% of sales. Biologics and large-molecule drugs tend to be more expensive than small-molecule drugs, and India hopes to sweep the market in biogenerics and contract manufacturing as drugs go off patent and Indian companies upgrade their manufacturing capabilities. Most companies in the biotech sector are extremely small, with only two firms breaking 100 million dollars in revenues. At last count there were 265 firms registered in India, over 75% of which were incorporated in the last five years.The newness of the companies explains the industrys high consolidation in both physical and financial terms. Almost 50% of all biotechs are in or around Bangalore, and the toop ten companies capture 47% of the market. The top five companies were homegrown; Indian firms account for 62% of the biopharma sector and 52% of the industry as a whole. The Association of Biotechnology-Led Enterprises (ABLE) is aiming to grow the industry to $5 billion in revenues generated by 1 million employees by 2009, and data from the Confederation of Indian Industry (CII) seem to suggest that it is possible.
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Comparison with the US The Indian biotech sector parallels that of the US in many ways. Both are filled with small start-ups while the majority of the market is controlled by a few powerful companies. Both are dependent upon government grants and venture capitalists for funding because neither will be commercially viable for years. Pharmaceutical companies in both countries have recognised the potential effect that biotechnology could have on their pipelines and have responded by either investing in existing startups or venturing into the field themselves.In both India and the US, as well as in much of the globe, biotech is seen as a hot field with a lot of growth potential.
Relationship with IT Many analysts have observed that the hype around the biotech sector mirrors that of the IT sector. Biotech colleges have been popping up around the country eager to service the pools of students that want to take advantage of a growing industry. The International Finance Commission, the private investment arm of the World Bank, called India the "centerpiece of IFCs global biotech strategy." Of the $110 million invested in 14 biotech projects investment globally, the IFC has given $43 million to 4 projects in India. According to Dr. Manju Sharma, former director of the Department of Biotechnology, the biotech industry could become the "single largest sector for employment of skilled human resource in the years to come. British Prime Minister Tony Blair was similarly impressed, citing the success of Indias biotech industry as the reason for his own countrys own biotech opportunities. Malaysia is also looking to India as an example for growing its own biotech industry.
Government support The Indian government has been very supportive. It established the Department of Biotechnology in 1986 under the Ministry of Science and Technology.[47] Since then, there have been a number of dispensations offered by both the central government and various states to encourage the growth of the industry. Indias science minister launched a program that provides tax incentives and grants for biotech start-ups and firms seeking to expand and establishes the Biotechnology Parks Society of India to support ten biotech parks by 2010. Previously limited to rodents, animal testing was expanded to include large animals as part of the ministers initiative.[10] States have started to vie with one another for biotech business, and they are offering such goodies as exemption from VAT and other fees, financial assistance with patents and subsidies on everything ranging from investment to land to utilities.
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Foreign investment The government has also taken steps to encourage foreign investment in its biotech sector. An initiative passed earlier this year allowed 100% foreign direct investment without compulsory licensing from the government. In April, a delegation headed by the Kapil Sibal, the minister of science and technology and ocean development, visited five cities in the US to encourage investment in India, with special emphasis on biotech. Just two months later, Sibal returned to the US to unveil Indias biotech growth strategy at the BIO2005 conference in Philadelphia. 100%of FDI is allowed in India. Challenges The biotech sector faces some major challenges in its quest for growth. Chief among them is a lack of funding, particularly for firms that are just starting out. The most likely sources of funds are government grants and venture capital, which is a relatively young industry in India. Government grants are difficult to secure, and due to the expensive and uncertain nature of biotech research, venture capitalists are reluctant to invest in firms that have not yet developed a commercially viable product. The government has addressed the problem of educated but unqualified candidates in its Draft National Biotech Development Strategy. This plan included a proposal to create a National Task Force that would work with the biotech industry to revise the curriculum for undergraduate and graduate study in life sciences and biotechnology. The governments strategy also stated intentions to increase the number of PhD Fellowships awarded by the Department of Biotechnology to 200 per year. These human resources will be further leveraged with a "Bio-Edu-Grid" that will knit together the resources of the academic and scientific industrial communities, much as they are in the US.
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COMPANY PROFILE
( AKUMS DRUGS & PHARMACEUTICALS LTD)
BACKGROUND AND INCEPTION OF THE COMPANY Akums Drugs & Pharmaceuticals Ltd. was incorporated on December 19th, 2004. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into Pharmaceutical Business. Over the years Akums has evolved from a manufacturer of few products into a fully integrated pharmaceutical company. Today, they leverage a formidable combination of manufacturing technologies and research skills to develop affordable and unmet medical needs.
2004 Akums began operations in Haridwar with Beta lactum /General block with products like tablets, hard gelatin capsules, dry syrups & liquid orals. Year 1 turnover : Rs.10 million. Within a year, the marketing effort expands to cover all the states of India. A compact manufacturing facility for tablets/capsules was set up at Haridwar.
2007 Akums Plant II & III were set up in Haridwar that produce medicines in the form of liquid orals and jellies (Plant-II) and liquid and dry injections, ear/eye /nasal drops.
2010 Akums started its IV & V Plant in the year 2010 with Plant IV producing wide range of Hormonal Preparations in oral (solid & Liquid) and Injectables forms and Plant V producing wide range of skin ointments & cosmetic preparations. Akums first subsidiary MAXCURE was also setup in 2010 that manufactures Ayurvedic Nutraceutical & Food supplements for top Pharma companies of India.
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BUSINESS MODEL OF THE COMPANY
HISTORY AND FACTS

Founded 19th December 2004 304, Mohan Place, LSC, Block-C, Saraswati Vihar, New Delhi, Delhi - 110 034, India
Headquarters
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Industry Business Type Ownership Type
Pharmaceutical Manufacturer & Exporters Public limited Company Chairman & MD Promoter directors
Mr. D.C Jain
Company Board
Mr. Sanjeev Jain Mr. Sandeep Jain
2011 Revenue Product Available Area Product Range Employees
6.5 billion INR (approx.) Over 25 countries 1100 products (approx.) 5,500 (2011)
Manufacturing Capacity 22 Billion Subsidiary Website Maxcure Ltd. www.akums.in
NATURE OF BUSINESS
Pharmaceutical company based in India.
VISION & MISSION
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VISION : Our Vision is to become an unsurpassed pharmaceutical manufacturing company, leading the way to a healthier world. Our Vision is reflected in every department of our organization as we desire to conquer the pharmaceutical domain globally. MISSION : To revolutionize the Global Health Care system by providing superior quality products for ultimate customer satisfaction.
PRODUCTS SERVICE PROFILE
Pharmaceutical Tablets We hold expertise in successfully offering in the Indian markets around forty different types of pharmaceutical tablets that are carefully formulated to fight diseases as well as keep people healthy. These tablets are made available in tamper proof packaging so as to provide in these longer shelf life.
Pharmaceutical Capsules We offer extensive research based Pharmaceutical Capsules that are highly effective as well as accurate in composition. Safe to consume, these Capsules are offered by us in appropriate packaging so as to maintain their properties for a long period of time. Its tamper proof packaging also ensures these remain safe as well as deliver higher shelf life.
Soft Gelatin Capsules We offer Soft Gelatin Capsules for meeting the treatment needs of various ailments. These Soft gelatin capsules consist of filling that contain dissolved/suspected active substance, and of a one-piece shell. Owing to the hermetic seal, filling ingredients are protected against any harmful influence of environment.
Dry Syrups We also hold expertise in the manufacturing of Dry Powder Syrups. These are very useful in meeting the successful treatment needs of various ailments. These syrups
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can be orally consumed and are clinically tested so as to ensure these have no side effect.
Prefilled Syringes We are engaged in meeting the manufacturing demands of Prefilled syringes. With the rapid rise in technology in the medical field, these needles are designed to cater to the needs of ill people. We offer these in tamper proof quality packaging so as to ensure their safety as well as longer shelf life.
Hormonal Preparations Recognized by W.H.O G.M.P and 14001:2004 specifications, Akums specialize in producing and distributing hormonal preparations. Our company holds GMP plant and top-ranking pharmaceutical equipments offering the best quality preparations and serving healthier future of brightness to the world.
Eye & Ear Drops We hold expertise in offering Eye, Ear, Nasal Drops in FFS & 3-pc Packs. A result of continuous R&D done at our unit, these drops manufactured by us are carefully formulated and used for curing eye as well as other infections/ related ailments. Our expertise lies in offering these in tamper proof quality packaging.
Liquid Orals We offer high range of oral liquid section, which caters to the needs of the pharmaceutical industry. The dosage is formulated using high quality ingredients and technologically advanced machines. Our range is highly effective and renders good results and being the packing done in safe and hygienic conditions it ensures high effective and enhanced shelf life.
Creams & Ointments We offer customers Creams & Ointments that help in providing velvety smooth texture that improves skin firmness, elasticity, minimizes wrinkles as well as tightens the skin. Featuring a perfect blend of skin conditioning natural oil, vitamins & essential nutrients, these ointments helps in reducing as well as in preventing fine and expression lines.
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Ayurvedic Products We are manufacturing the Traditional medicines in the traditional way of processing. The company has played a pioneering role in re-establishing ancient knowledge with modern research and manufacturing techniques. And provide its gentle healing touch to millions in the world. We constructed & follow-up W.H.O G.M.P specifications. The processing & Packing of all the products as per C.G.M.P regulation, Akums is committed to bring Ayurveda as the mainstream health management system.
Herbal Nutraceuticals We bring to our customers a range of Herbal Nutraceuticals that are manufactured using premium grade raw material. Available in tamper proof packaging, these are widely appreciated for their effectiveness, purity as well as safe usage.
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MANUFACTURING RANGE
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AREA OF OPERATIONS : GLOBAL / NATIONAL / REGIONAL
Akums has ambitious plans to boost its overseas business in a big way. Akums has pierced into Export market and has made its presence in countries namely; Libya, China, Uganda, Nigeria, Ghana, Belarus, Aman, Iraq, Dubai, Korea, Hong Kong, Philippines, Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan, Ukraine, Vietnam, Cambodia, Kenya, Singapore, Cuba, Venezuela ,Yemen & Cote Dlviore. Akums has ambitious plans to boost its overseas business in a big way. Akums has entered into Various Business collaboration agreement with companies outside India, Focusing on building Global Foot Prints through channel partners. Company has plans to make its presence felt through its Quality Products across the Globe. Akums is looking at verticals; aiming to acquire a Pharma Company in Latin America and/or U.K. Strategic Alliance with ELIS PHARMACEUTICALS Ltd., a British virgin Island company for export of Pharmaceuticals Formulations globally and to set up a pharmaceutical unit in Dubai, UAE.
CUSTOMERS BASE Akums units have been successfully audited and approved by the M.O.H. Departments of Belarus, Libya, Cuba and by the QA/QC personnel of foreign companies, namely; Ful-Ford(U.S.A.), Abbot (Chicago), Med-Interplast (Belarus), Alwatan(Libya), United Laboratories (Philippines), Kalbe International(Indonesia), Ananta(Ukraine), Alter-ego(Ukraine), Coral Med (Russia).
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SOME ASSOCIATES
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OWNERSHIP PATTERN
SHARES of the company are distributed among only three membersMr. D.C.Jain (Chairman) Mr. Sandeep Jain (Director) Mr. Sanjeev Jain (Director)
COMPETITORS INFORMATION
Other Pharmaceutical companies some examples are Apco pharma Ltd. , Arogya formulation pvt. Ltd. , Custodian pharma private ltd. , Divine pharmaceuticals pvt. Ltd.
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INFRASTRUCTURAL ACTIVITIES
Akums six independent State-of-the-art manufacturing facilities are having modern & sophisticated manufacturing facilities and are driven by best industry practices to provide the highest quality of products to a range of leading customers in the pharmaceuticals and Health care sectors. The manufacturing and delivery of products are driven by customer specific requirements, Legislative standards of the Governments of India and other countries, in adherence to pharmacopoeia standards as per the parameters defined by drug master files, other regulatory bodies across the globe. Akums has Ultra modern & sophisticated machineries including 60 packaging lines 5 ALU-ALU, 2 AF150,RMGs, 4 Fluid Bed Processors, Auto-Coaters, 2 FFS, 6 Tunnels, Sophisticated R & D, F & D and microbiology laboratories equipped with latest instruments, 45 HPLCs, 2 FTIRs, GC,TOC, DG Sets, 5,000 KVA water systems, SCADA, Hot & Cold Loop, 450- AHUs etc. After setting up of the manufacturing units, machines were added from year to year. As per advice of the internal auditors, the installed capacities of the units were revised based on the additions made from time to time. The installed capacities have been certified by Chartered Engineers, Secretariat of Industrial Approvals / District Industrial Centers, Excise Dept. & Drugs Department of Uttarakhand. Managing our environmental impact is a key aspect of being a responsible business. The medicines we make require the use of valuable resources, including energy, water and raw materials. We know that the way we operate our business today can have a long-lasting impact. Akums takes a holistic approach to understanding and managing our environmental impacts across the product life cycle. To operate most sustainably, we are committed to conducting our business in an environmentally, socially and financially responsible manner.
Safeguarding Employees Employee health and safety is our first priority. We maintain an integrated program of employee consultation, workplace inspections and training across all areas of our business. Our approach is to promote a strong safety culture, one that empowers all of our employees to report and address safety issues.
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Health & Safety Placing our employees health and safety among our highest priorities is consistent with the Akums value of respect for people. Our employees are our greatest asset, and we want them to operate in the safest environment possible. Our health and safety programs are tailored to each of our business areas, including marketing, manufacturing, research and development, and administrative services. Successful injury prevention requires every employee to be cautious about keeping himself or herself and others safe. As one of the Indias largest providers of medicines, we strive to make peoples lives betterand we want the same for our own employees. We want our employees to be healthy and productive for the work they do at Akums and in their lives outside of the workplace.
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ACHIEVEMENTS / AWARDS
National Award 2010 by Govt. of India for Excellence in Product Quality National Award 2010 by Govt. of India for Outstanding Entrepreneurship Support & Encouragement Cognizance By IIT Roorkee Corporate Excellence Award By Amity Largest manufacturer of Best Quality Pharmaceuticals formulation Award By FOPE Business Partner of Choice Award By Primal Healthcare Ltd. Most Valued Customer Awards By ICICI Udyog Ratan Awards By IME
REGULATORY ACCREDITATIONS
At Akums, we strongly believe that Quality is the way ahead and there is no substitute for it. So we leave no stone unturned to ensure that every product that Akums manufacture adheres to the set quality control demands in any stage of its production and distribution. Our dedicated efforts are visible in the number of plants attaining world -wide regulatory accreditations. Betalactam Facility & Cephalosporin Facility Solid Oral Dosage Forms WHO GMP Certificate, ISO 14001:2004, QMS HACCP, MOH Libya, MOH Ivory Coast, MOH Yemen, Ministry of Health and Nutrition Sri Lanka, Food and Drugs Board Ghana
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Liquid Oral Dosage Forms WHO GMP Certificate, ISO 14001:2004,MOH Libya, MOH Ivory Coast, MOH Yemen, Food and Drugs Board Ghana
Injectable Facility ANVISA Brazil, WHO GMP Certificate (LVP), WHO GMP Certificate (SVP), ISO 14001:2004, PPB -Kenya, MOH Libya, NDA Uganda, DDA Nepal, MOH Yemen, MOH Ivory Coast , Food and Drugs Board Ghana
Hormonal Facility WHO GMP Certificate, ISO 14001:2004, MOH Ivory Coast, Food and Drugs Board Ghana
Cosmetic & Dermatology Facility WHO GMP Certificate, ISO 14001:2004, Food and Drugs Board Ghanna.
Neutraceutical facility GMP Certificate, ISO 14001:2004, QMS - HACCP, NSF International, Food and Drugs Board Ghana
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WORK FLOW MODEL
CHAIRMAN
DIRECTOR
EA TO DIRECTOR
IT HEAD
R &D
ACCOUNTS
COSTING & BUDGETING
PPIC
QC
CORP. QC
MATERIAL & HANDLING
COMM.
PROJECT & ENGG.
CORP HR
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FUTURE GROWTH & PROSPECTS
Commitment to Innovation
Innovation across all aspects of our business is the key to our success. Being active in high technology fields, they must recognize new trends at a very early stage and be open to unconventional ideas. They see change as an opportunity and complacency as a threat. They therefore encourage everywhere in the company the curiosity needed to be open to the world and new ideas.
They have Audacious plans for our social, cultural and environmental impact by 2020 and as we emerge as a Top Indian conglomerate, they aim to achieve many meaningful objectives. The Human Footprint: Akums will educate its employee, investors, management and all stakeholders in the benefits of living, adopting and pursuing sustainable lifestyle in todays World. They will invest in Green technologies and embrace a responsible and sustainable approach to sourcing and outsourcing. Compassion: Akums will provide entire diverse employee base with access to affordable healthcare and insurance, holistic well being facilities, care, family support and education. They will also ensure educational and healthcare facilities for our lower income members in an egalitarian and sustainable manner. Philanthropy: Akums will invest a percentage of its profits towards the welfare of the entire country and then the planet through its charitable trusts and organizations. Thought Leadership and Mentoring : Akums will give back to the community it lives in by providing free mentorship and entrepreneurial assistance to all citizens who wish to better their lives. Diversity: Like all Indian companies we are always struggling to ensure our workplace is fair and just and looks after women, minorities and the physically challenged. It is our belief that a diverse family makes for a richer family.
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MCKINSEYS 7S FRAMEWORK
Strategy Structure Systems Style Staff Skills Shared Values/ Super ordinate Goals
The Hard Ss The hard elements are factual and easy to identify. They can be found in strategy statements, corporate plans, organization charts, and other documentation. The Soft Ss The soft elements are difficult to describe since they are continuously developing and changing. They are highly determined by the people at work in the organization.
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7-S Model The Hard Ss Strategy o Actions a company plans in response to or in anticipation of changes in its external environment provide Cheapest product than other companies provide quality product committed with their associates Structure o Basis for specialization and coordination, influenced primarily by strategy and by organization size and diversity
CHAIRMAN
DIRECTOR
EA TO DIREC TOR
IT HEAD
R&D
ACCOUNTS
COSTING & BUDGETIN G
PPIC
QC
CORP. QC
MATERIAL & HANDLING
COMM.
PROJ. & ENGG.
CORP. HR
System o Formal and informal procedures that support the strategy and structure
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7-S Model The Soft Ss Style / Culture The culture of the organization, consisting of o Organizational culture: the dominant values, beliefs and norms which develop over time and become relatively enduring features of organization life o Management style: what managers do rather than what they say (where they spend their time and attention, what they allow, what they reward, etc.) Staff Total workforce 3000 people Skills Communication skills Leadership skills Motivation skills Marketing skills Shared values
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SWOT ANALYSIS
SWOT analysis refers to analysis of strength, weakness, opportunities and threats present in the environment for the company. STRENGTHS : Experience in the manufacture and supply of pharmaceuticals. Highly Integrated portfolio of products for the pharmaceuticals and healthcare sectors. Customer base across the globe including several blue chip organizations. One of the largest manufacturer/exporter of highest caliber of professionals in scientists, engineers, lab technicians, production heads and functional managers. Multicultural and multidiscipline workforce that is motivated towards the highest standards of customer satisfaction. Strict adherence to Good Manufacturing Practices (GMP). Driven by quality, integrity and core values.
WEAKNESSES: Lack of unawareness in employees regarding company policies. Low level of motivation.
OPPORTUNITIES: Introduction of new medicines. Manufacturing new forms of Drugs. Entering into international market. National or International collaborations.
THREATS: Increasing competition. Existing pharmaceutical companies.
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LEARNING EXPERIENCE
At the time of my internship at Akums, I learned behavioral skills, ethics of working in a company, how to manage contact based workers, analysis of performance appraisal, gained knowledge about performance appraisal system at Akums.
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PART-B
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GENERAL INTRODUCTION
STATEMENT OF THE PROBLEM Study of performance appraisal system and its implementation at Akums Drugs and Pharmaceuticals Ltd. (Haridwar).
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OBJECTIVE OF THE STUDY

(Performance Appraisal and its Implementation)
Main objectives of the study : To study the current performance appraisal system of the organization and identify the gaps between the current state and desired state. To find out the performance dimensions relevant to the strategic plan of the company. To identify the potential areas for the scope of improvement in the current system and thereby in the organizational performance. To study the implications of an effective performance appraisal system on the productivity of employees and the organizational performance as a whole. To identify the key performance indicators and critical success factors for achieving organizational excellence.
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SCOPE OF THE STUDY
The Scope of this study is described as follows : The study was conducted on employees from each department of the organization. There were samples taken from each department. The study was also conducted on contract based workers.
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RESEARCH METHODOLOGY
SAMPLING PLAN Sample Size Sample Area : 90 Employees : Akums Drugs and Pharmaceuticals Ltd. Plant 1, Ranipur, Haridwar Duration : 1.5 months
DATA COLLECTION Data Sources : (a) Primary data through Questionnaire (b) Secondary data through Internet (c) Personal Interaction DATA PRESENTATION AND ANALYSIS (b) Pie Diagrams
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LIMITATIONS OF THE STUDY

A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows:
a) Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity. b) Though, no effort was spared to make the study most accurate and useful, the sample Size selected for the same may not be the true representative of the Company, resulting in biased results.
c) This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.
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PROJECT RATIONALE
This study talks about a very important policy and factor of HRD i.e; performance appraisal. Importance of performance appraisal, in terms of motivating employees and thus improving quality of work, would be clear from following description.
INTRODUCTION TO PERFORMANCE APPRAISAL

MEANING : Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. Performance appraisal is generally done in systematic ways which are as follows: 1. The supervisors measure the pay of employees and compare it with targets and plans. 2. The supervisor analyses the factors behind work performances of employees. 3. The employers are in position to guide the employees for a better performance.
OBJECTIVES: Performance Appraisal can be done with following objectives in mind: 1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. 2. To identify the strengths and weaknesses of employees to place right men on right job. 3. To maintain and assess the potential present in a person for further growth and development. 4. To provide a feedback to employees regarding their performance and related status. 5. To provide a feedback to employees regarding their performance and related status. 6. It serves as a basis for influencing working habits of the employees. 7. To review and retain the promotional and other training programmes.
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ADVANTAGES : It is said that performance appraisal is an investment for the company which can be justified by following advantages: 1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programs for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. 2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which includes bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. 3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programs. It helps to analyze strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programs. 4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. 5. Communication: For an organization, effective communication between employees and employers is very important. 6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.
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TOOLS AND TECHNIQUES:
Following are the tools used by the organizations for Performance Appraisals of their employees. 1. Ranking 2. Paired Comparison 3. Forced Distribution 4. Confidential Report 5. Essay Evaluation 6. Critical Incident 7. Checklists 8. Graphic Rating Scale 9. BARS 10. Forced Choice Method 11. MBO 12. Field Review Technique 13. Performance Test 14. 360 Degree Feedback We will be discussing the important performance appraisal tools and techniques in detail. 1. Ranking Method The ranking system requires the rater to rank his subordinates on overall performance. This consists in simply putting a man in a rank order. Under this method, the ranking of an employee in a work group is done against that of another employee. The relative position of each employee is tested in terms of his numerical rank. It may also be done by ranking a person on his job performance against another member of the competitive group. Advantages of Ranking Method a) Employees are ranked according to their performance levels. b) It is easier to rank the best and the worst employee. Limitations of Ranking Method a) The whole man is compared with another whole man in this method. In practice, it is very difficult to compare individuals possessing various individual traits. b) This method speaks only of the position where an employee stands in his group. It does not test anything about how much better or how much worse an employee is when compared to another employee. c) When a large number of employees are working, ranking of individuals become a difficult issue.
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d) There is no systematic procedure for ranking individuals in the organization. The ranking system does not eliminate the possibility of snap judgements.
2. Forced Distribution method This is a ranking technique where raters are required to allocate a certain percentage of rates to certain categories (eg: superior, above average, average) or percentiles (eg: top 10 percent, bottom 20 percent etc). Both the number of categories and percentage of employees to be allotted to each category are a function of performance appraisal design and format. The workers of outstanding merit may be placed at top 10 percent of the scale, the rest may be placed as 20 % good, 40 % outstanding, 20 % fair and 10 % fair. Advantages of Forced Distribution a) This method tends to eliminate raters bias b) By forcing the distribution according to pre-determined percentages, the problem of making use of different raters with different scales is avoided. Limitations of Forced Distribution a) The limitation of using this method in salary administration, however, is that it may lead low morale, low productivity and high absenteeism. Employees who feel that they are productive, but find themselves in lower grade(than expected) feel frustrated and exhibit over a period of time reluctance to work.
3. Critical Incident techniques Under this method, the manager prepares lists of statements of very effective and ineffective behaviour of an employee. These critical incidents or events represent the outstanding or poor behaviour of employees or the job. The manager maintains logs of each employee, whereby he periodically records critical incidents of the workers behaviour. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers performance. Example of a good critical incident of a Customer Relations Officer is : March 12 - The Officer patiently attended to a customers complaint. He was very polite and prompt in attending the customers problem. Advantages of Critical Incident techniques a) This method provides an objective basis for conducting a thorough discussion of an employees performance.
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b) This method avoids repetition bias (most recent incidents are too much emphasized) Limitations of Critical Incident techniques a) Negative incidents may be more noticeable than positive incidents. b) The supervisors have a tendency to unload a series of complaints about the incidents during an annual performance review sessions. c) It results in very close supervision which may not be liked by an employee. d) The recording of incidents may be a chore for the manager concerned, who may be too busy or may forget to do it.
4. Checklists and Weighted Checklists In this system, a large number of statements that describe a specific job are given. Each statement has a weight or scale value attached to it. While rating an employee the supervisor checks all those statements that most closely describe the behavior of the individual under assessment. The rating sheet is then scored by averaging the weights of all the statements checked by the rater. A checklist is constructed for each job by having persons who are quite familiar with the jobs. These statements are then categorized by the judges and weights are assigned to the statements in accordance with the value attached by the judges. Advantages of Checklists and Weighted Checklists a) Most frequently used method in evaluation of the employees performance. Limitations of Checklists and Weighted Checklists a) This method is very expensive and time consuming b) Rater may be biased in distinguishing the positive and negative questions. c) It becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employees characteristics, contributions and behaviors.
5. 360 Degree Feedback Many firms have expanded the idea of upward feedback into what the call 360degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features. Appropriate parties peers, supervisors, subordinates and customers, for instance complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the
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organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self - appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned. Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to "play God."
Advantages of 360 Degree Feedback a. Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. b. Employees are judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of their abilities. c. The guiding principle of the MBO approach is that direct results can be observed easily. d. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. e. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts, but to put all the parts together and the performance may be directly observed and measured.
Disadvantages of 360 degree Feedback a) This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring. b) Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.
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RATING ERRORS : Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are : Leniency or severity Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. b) He / She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee. c) He / She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.
Central tendency This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates. Halo error A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well as on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect. Rater effect This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error. Primacy and Regency effects The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a
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salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement. Performance dimension order Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different. Spillover effect This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad.
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ROLES IN THE PERFORMANCE APPRAISAL METHOD : a) Reporting Manager o Provide feedback to the reviewer / HOD on the employees behavioral traits indicated in the PMS Policy Manual. o Ensures that employee is aware of the normalization/ performance appraisal process. o Address employee concerns / queries on performance rating, in consultation with the reviewer. b) Reviewer (Reporting Managers Reporting Manager) o Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewer. o Where required, independently assess employees for the said behavioral traits; such assessments might require collecting data directly from other relevant employees.
c) HOD (In some cases, a reviewer may not be a HOD) o Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee. o HOD also plays the role of a normalization committee member. o Owns the performance rating of every employee in the department. d) HR Head o Secretary to the normalization committee. o Assists HODs / Reporting Managers in communicating the performance rating of all the employees. e) Normalization Committee o Decides on the final bell curve for each function in the respective Business Unit / Circle. o Reviews the performance ratings proposed by the HODs, specifically on the upward / downward shift in ratings, to ensure an unbiased relative ranking of employees on overall performance, and thus finalize the performance rating of each employee.
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KEY CONCEPTS IN PMS :
In order to understand the Performance Management System at BHARTI, some concepts need to be explained which play a very important role in using the PMS successfully. They are: KRAS (Key Result Areas) The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions i.e. o o o o What are the guidelines for setting the KRAs for an employee? How does an employee write down his KRAs for a particular financial year? KRAs: The Four Perspectives. How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?
Behavioral Traits Some of the qualitative aspects of an employees performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. An employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards. Bharti 2010 Leadership Competency Framework This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively. This framework also tries to assess the performance of an employee objectively.
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PERFORMANCE RATING PROCESS :

The rating process tries to explain the four different types of rating that an employee can achieve i.e. EC, SC, C and PC. It also explains the criteria, which is considered for awarding any of these ratings to the employee. Promotion and Rating guidelines The promotion and normal distribution guidelines provide the framework within which the performance appraisal process has to work. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions. These guidelines also help in deciding upon the promotion cases in company. EXCEPTIONAL CONTRIBUTOR (EC)
Performs consistently and substantially above expectations in all areas Achieves a final score greater than or equal to 115% Consistently delivers on stretch targets Is proactive Spots and anticipates problems, implements solutions Sees and exploits opportunities Delivers ahead of time Sees the wider picture-impacts across business Focuses on whats good for the business Seen as role model by others Recognized as exceptional by other functions as well Motivates others to solve problems Develops others Provides open and honest feedback Able to establish and lead cross-functional teams
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SIGNIFICANT CONTRIBUTOR (SC) Performs above expectations in all areas Achieves final score between 100-114% Versatile in his/ her area of operation Develops creative solutions and require little / minimal supervision Sets examples for others Take ownership of own development Coaches others Demonstrates business initiative Is self-motivated Supportive team player Leads own team very effectively Demonstrate functional initiative
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DATA ANALYSIS
1. Are you aware of the purpose of appraisal system?
Awareness of the purpose
Yes 100% No 0%
It is clear from above pie chart that all the employees are aware of the purpose of performance appraisal at Akums.
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2. Are you aware of the technique of P.A. in your organization?
Awareness of the technique
Yes 84% No 16 %
The above pie chart explains that only 84% of the employees are aware of the various techniques of performance appraisal at Akums.
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3. Are you satisfied with the present performance appraisal system?
Satisfaction level of current system
Yes 59% No 41%
The above pie chart explains that only 59% of the employees are satisfied with the current appraisal system at Akums.
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4. Are you satisfied with the frequency of current P.A. system?
Satisfaction level of frequency of P.A.
Yes 59% No 41%
It is clear from the above pie chart that 59% of the employees are satisfied with the frequency of appraisals in each financial year.
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5. What should be the gap between two appraisal periods?
Desired Gap between two appraisal periods
Three Months 25% Six Months 66% Twelve Months 9%
The above pie chart makes it very clear that 25% of the employees feel that appraisal should be done every three months, 66% feel that appraisal should be done every six months and 9% feel that it should be done yearly.
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6. What is your feeling after every appraisal?
Feeling after appraisal
Motivated 16% Indeffierent 84% De-motivated 0%
This pie chart explains that 16% of employees feel motivated after appraisal, 84% feel in-different and 0% feels de-motivated.
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7. Who should do the appraisal according to you?
Desired Appraisee
Superior 21% Peer 0% Subordinate 0% Self 22% Consultant 0% All of the above 57% Superior + Peer 0%
The above pie chart explains that 21% employees feel that appraisal should be done by Superior, 0% feel that It should be done by Peer, 0% feel that it should be done by Subordinates, 22% feel that it should be done by Self, 0% feel that it should be done by consultant, 57% feel that it should be done by All of the above mentioned and 0% feel that it should be done by Superior + Peer.
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8. Does appraisal helps in polishing skills and performance?
Level of skill and performane enhancement
Yes 92% N0 8% Somewhat 0%
This pie chart explains that 92% of the employees feel that appraisal helps in polishing skills and performance, whereas, 8% feel opposite and 0% feel that it is somewhat true.
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9. Does personal biasness creeps in during appraisals?
Biasness level
Yes 50% No 50%
The above pie chart explains that 50% of the employees feel that personal biasness creeps in during appraisals, while the other 50% feels the opposite,
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10. Appropriate method of performance appraisal according to you?
Wanted P.A method
Ranking Method 21% Paired Comparison 8% Critical Incidents 0% MBO 0% Assesment Centre 0% 360 Degree 71%
According to the above pie chart 21% of the employees feel that Ranking Method is correct for performance appraisal, 8% feels that Paired Comparison should be applied, 0% feel that MBO should be applied, 0% feel that Assessment Centre should do the appraisal and rest 71% feel that 360 degree appraisal should be applied.
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11. Does performance appraisal leads to identification of hidden potential?
Level of identification of potential
Yes 92% No 8%
The above pie chart explains that 92% of the employees feel that performance appraisal leads to identification of hidden potential, while 8% feel that it is not so.
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12. If given a chance or an opportunity would you like the appraisal system to be reviewed?
Wanted review level
Yes 78% No 0% Can't Say 22%
The above pie chart explains that 78% of the employees feel that if given a chance or an opportunity they would like the appraisal system to be reviewed, while 0% feel the opposite and 22% feels nothing about it.
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13. Would you like to give your suggestions on type of performance appraisal system to be enacted during the review?
Participation level
Yes 92% No 8%
The above pie chart explains that 92% of the employees would like to give their suggestions on type of performance appraisal system to be enacted during the review, whereas, 8% dont want that.
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14. Is there transparency in the P.A. system of your organization?
Transparency level
Yes 64% No 36%
The above pie chart explains that 64% of the employees feel that there is transparency in the performance appraisal system at Akums and rest 34% feel that there is no transparency.
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15. Suggestions and views :
Review of policies
Yes 55% No 45%
According to the above pie chart the suggestions given by employees were in reference to review of current performance appraisal system, in which 55% of the employees want the review and 45% dont.
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CONCLUSION
After having analyzed the data, following observations were made : a) The frequency of performance appraisal in the organization is low. b) There is no certain continuity of the performance appraisal system.
c) Also, transparency is missing from the process of performance appraisal being followed in the organization. d) Employees are unaware of the factors which will lead them to increase their productivity in order to get an appraisal.
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SUGESSTIONS
Before actually deciding drafting what should be the kind of appraisal the following things should be taken care of :
1. The very concept of performance appraisal should be marketed throughout the organization. Unless this is done, people would not accept it, be it how important to the organization. 2. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought. 3. Further, at the time of confirmation also, the appraisal form should not lead to duplication of any information. Instead, detailed appraisal of the employees work must be done which must incorporates both the work related as well as the other personal attributes that are important for work performance. 4. It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization. 5. The job and role expected from the employees should be decided well in advance and that too with the consensus with them. 6. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent, objective methods should be employed having quantifiable data. 7. The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous phenomenon. 8. Transparency into the system should be ensured through the discussion about the employees performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that. Ideally in the present day scenario, appraisal should be done, taking the views of all the concerned parties who have some bearing on the employee. But, since a change in the system is required, it cannot be a drastic one. It ought to be gradual and a change in the mindset of both the employees and the head is required.
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BIBLIOGRAPHY
BOOKS : a) Human Resource Management (By Wendell L. French) b) Human Resources Development and Management (By Biswanath Ghosh)
c) Human Resource Management (By Garry Dessler) d) The Global HR Manager (By Pat Joynt and Bob Morton)
WEBSITES : www.akums.com www.akums.in www.google.com
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QUESTIONNAIRE
NAME OF EMPLOYEE : DESIGNATION :
1. Are you aware of the purpose of performance appraisal system? Yes No 2. Are you aware of the technique of performance appraisal in your organization? Yes No 3. Are you satisfied with the present performance appraisal system? Yes No 4. Are you satisfied with the frequency of current performance appraisal system? Yes No 5. What should be the gap between two appraisal periods? Three months Six Months Twelve Months 6. What is your feeling after every appraisal? Motivated Indifferent De-motivated 7. Who should do the appraisal according to you? Superior Peer Subordinate Self Consultant All of the above Superior + Peer 8. Does appraisal helps in polishing skills and performance? Yes No Somewhat 9. Does personal biasness creeps in during appraisals? Yes No
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10. Appropriate method of conducting performance appraisal according to you? Ranking method Paired comparison Critical incidents MBO Assessment centre 360 degree 11. Does performance appraisal leads to identification of hidden potential? Yes No 12. If given a chance or an opportunity would you like the appraisal system to be reviewed? Yes No Cant say 13. What according to you should be the appropriate method for
conducting performance appraisal? Rating the employee on number of traits along with the range of performance for each by the supervisor. For every trait, each subordinate is paired with and compared to every other Subordinate. Reviewing employees on the basis of identified specific examples of good Or poor performance. Setting specific measurable goals with each employee and periodically reviewing the progress made. Reviewing performance through case studies, presentations, role playing, etc. for future performance. Receiving feedback from people whose views are considered helpful and relevant including the appraise himself. 14. Is there transparency in the performance appraisal system of your organization? Yes No 15. Suggestions and views : . ............................................................................. ...............................................
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SUMMER TRAINING REPORT ON PERFORMANCE APPRAISAL

BY NIDHI GOSSEL ENROLMENT NO 0121MBA144 BATCH OF 2012-2014

Doon Business School 122Mi,Behind Pharma City, Selaqui, Dehradun-248001, Uttarakhand

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

Student Name : Date :

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

Students Signature : Date : Internal Guides Signature : Date :

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

BUSINESS MODEL OF THE COMPANY

HISTORY AND FACTS

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

Industry Business Type Ownership Type

Mr. D.C Jain

Mr. Sanjeev Jain Mr. Sandeep Jain

2011 Revenue Product Available Area Product Range Employees

Manufacturing Capacity 22 Billion Subsidiary Website Maxcure Ltd. www.akums.in

VISION & MISSION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PRODUCTS SERVICE PROFILE

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

AREA OF OPERATIONS : GLOBAL / NATIONAL / REGIONAL

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

WORK FLOW MODEL

COSTING & BUDGETING

MATERIAL & HANDLING

PROJECT & ENGG.

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

FUTURE GROWTH & PROSPECTS

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

COSTING & BUDGETIN G

MATERIAL & HANDLING

PROJ. & ENGG.

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

THREATS: Increasing competition. Existing pharmaceutical companies.

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

OBJECTIVE OF THE STUDY

PERFORMANCE APPRAISAL AND ITS IMPLEMENTATION

SCOPE OF THE STUDY