PROJECT REPORT

ON
PERFORMANCE APPRAISAL
For
DABUR INDIA LIMITED
(Sahibabad Unit)
A report submitted
By
NAVIKA SHARMA
In partial fulfillment of the requirement of the MBA ourse of
!NA"INS#I#U#$ %& MANA!$MAN# ' #$HN%(%!)
*HA!+ARA, *UN-AB
Under the .uidan/e of0
Mr1*a2an *onia
Senior %ffi/er HR
3abur India (imited
ACKNOWLEDGEMENT
+ords often fail to e4press inner feelin.s of .ratitude and indebtedness to one5s
benefa/tors, but then it is the only readily a6ailable medium throu.h 2hi/h the
undersi.ned /an e4press her sin/ere than7s to all those 2ho are asso/iated 2ith her 2or7
in one 2ay of the other1
I feel it my profound pri6ile.e to e4press my most sin/ere .ratitude and indebtedness to
my pro8e/t .uide Mr1 *a2an *onia, Senior %ffi/er HR 2ho 2as instrumental in
pro6idin. my dire/tion, /onstant en/oura.ement and /o"operation in my attempt to ta7e
this pro8e/t to its lo.i/al /on/lusion1
I also 2ant to than7 Mr1*an7a8 )ada6, HR Mana.er for ha6in. .ranted my 2onderful
opportunity to pursue my summer pro8e/t at 3ABUR1 And to all the respondents 2ho
featured in my sur6ey but remain as nameless entities, I present a deep bo2 of .ratitude1
And also to all those 2ho ha6e been of help dire/tly or indire/tly but ha6e not featured
here1
I 2ould li7e to than7 all my tea/hers at !NA"IM# 2ithout 2hose support this summer
trainin. 2ould not ha6e been possible1
In bre6ity, it 2as pleasure 2or7in. in the or.anisation, 2hi/h pro6ided me the most
/on.enial en6ironment for learnin.1
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TABLE OF CONTENTS
Page
nos
Chapter 1 EXECUTIVE SUMMARY 07
Chapter 2 Daburas FMCG 08
Chapter 3 Company Profile 09
Chapter 4 Company History 10
Chapter 4.1 Milestones to success 11-14
Chapter 4.2 Its Products Worldwide 14
Chapter 4.3 Corporate Governance 15
Chapter 4.4 IT initiatives 15
Chapter 4.5 Future Challenges 15
Chapter 4.6 Central Procurement & Planning Department 16
Chapter 4.7 Quality Objectives 16
Chapter 4.8 Organization Structure 17
Chapter 4.9 Dabur Products 18-20
Chapter 4.10 Vision and Mission 21
Chapter 4.11 Core Values 21
Chapter 4.12 Major Strategic Business Units 22
Chapter 5 Research and Methodology 23-25
Chapter 6 Human Resources at Dabur 26
Chapter 7 Introduction to Performance Appraisal 27
Chapter 7.1 Aims 27
Chapter 7.2 Objectives 27
Chapter 7.3 Appraisal Techniques28 28
Chapter 7.4 Who are raters? 29
Chapter 7.5 What should be rated? 29
Chapter 7.6 Factors determining Performance Appraisal 30
Chapter 7.7 Appraisal Methods 31-34
Chapter 7.8 Appraisal Process 34
Chapter 8 Performance Appraisal at Dabur 35
Chapter 8.1 Systems 35-37
Chapter 8.2 Mechanisms 37
Chapter 8.3 Contribution Enhancement Plan 38
Chapter8.4 Objectives of CEP 39
Chapter8.5 Applicability of CEP 39
Chapter8.6 Business Building Objectives (BBO`s) 39
Chapter8.7 BBO`s Identification & Review Processes 40
Chapter8.8 Conduct the Interim Contribution Reviews 40
Chapter 8.9 Category of Contribution 41
Chapter8.10 Contribution Grid 41
Chapter 8.11 Assessment of Managerial Effectiveness 42
Chapter 8.12 Contribution Review Discussion 42
Chapter 8.13 Contribution Enhancement Plan (B) 42
Section 9 Training and Development 44
Section 10 Analysis and Interpretation 45-55
Chapter 10.1 Questionnaire 56
Section 11 Summary of Findings 59
Chapter 12 Recommendations 60
Chapter 13 Conclusion 61
Chapter 14 Bibliography 62
Chapter 15 Exhibits 63-65

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1. EXECUTIVE SUMMARY
In today5s s/enario, Human /apital is a/7no2led.ed as one of the most potent sour/es in
/ontributin. dire/tly and si.nifi/antly in the .ro2th of any or.ani=ation1
#his pro8e/t attempts to e4plore the most effe/ti6e >HR poli/ies and pra/ti/es? for
smooth sailin. of an or.anisation1
It 2as a resear/h /ondu/ted to .et the feedba/7 of the employees from different
departments about the e4istin. performan/e appraisal system follo2ed in the
or.ani=ation1
#he main resear/h ob8e/ti6e 2as to understand the rele6an/e of 2ide 6ariety of methods
and te/hniques that /an be e4plored to2ards performan/e of the or.ani=ational .oals1 In
today5s /ompetiti6e 2orld e6ery or.ani=ation is .eared to2ards ma4imum return 2ith
minimum in6estment1 Human Resour/e Mana.ement plays a 6ital role to2ards plannin.
' /ontrollin. /ost effe/ti6e manpo2er support1 #his is 2idely affe/ted by plannin. and
implementin. >$ffe/ti6e *erforman/e Appraisal System? 2hi/h is the paramount part of
this pro8e/t
hannelisin. human ener.ies in a predetermined desirable dire/tion are not possible
unless harmonious relations are maintained amon. team members in6ol6ed in business
de6elopment1 on/ept of employee retention 2as also understood throu.h the pro8e/t
study1 #he 2ays adopted by /ompanies to mana.e .rie6an/es and stress and thereby
moti6atin. the employees and redu/in. employee turno6er 2ere studied throu.h the
pro8e/t1

2. DABUR AS AN FMCG COMPANY
#oday, the &M! is the fourth lar.est se/tor in the Indian e/onomy and there are many
&M! /ompanies li7e HU(, I#, Britannia, #ata #ea, Nestle, !odre8 onsumer, 3abur,
Mari/o et/1
3abur India (imited is the fourth lar.est &M! ompany in India1 3abur has fi6e other
subsidiaries" 3abur &oods, 3abur Nepal, 3abur $.ypt, 3abur %n/olo.y and 3abur
*harma1
Business
3abur5s produ/t ran.e en/ompasses health /are, personal /are, ayur6edi/ spe/ialities and
food se.ments1
Brands
+ell"7no2n brands in/lude 3abur Amla, 3abur hya2anprash, Vati7a, Ha8mola,
3antman8an, Nature are, *udin Hara and Real1
Location
3abur has been mar7etin. its produ/ts in more than ;@ /ountries all o6er the 2orld1 #he
/ompany has offi/es and representati6es in $urope, Ameri/a and Afri/a1 Manufa/turin.
fa/ilities are spread a/ross three o6erseas lo/ations1
Turnover
Buildin. on a le.a/y of quality and e4perien/e for o6er A@@ years, today 3abur has a
turno6er of Rs1ABCC1;D 2ith po2erful brands1
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E1 COMPANY PROFILE
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4. COMPANY HISTORY
ABB<

Birth of 3abur
ABC: Settin. up a manufa/turin. *lant
$arly AC@@s Ayur6edi/ Medi/ines
ACAC $stablishment of Resear/h (aboratories
AC9@ $4pands further
ACE: 3abur India F3r1 S1K Burman) *6t1 (td1
ACD9 Shift to 3elhi
ACDC Sahibabad f/tory G 3abur Resear/h &oundation
ACB: *ubli/ (imited ompany
ACC9 -oint Venture 2ith A.rolimen of Spain
ACCE an/er treatment
ACC< *ubli/ issues
ACC; -oint 6entures
ACC: E separate di6isions
ACCD &ood 3i6isionG*ro8e/t S#ARS
ACCB *rofessionals to mana.e the ompany
9@@@
9@@E
9@@;
9@@:
9@@:
#urno6er of Rs A@@@ /rores
3abur demer.es *harma Business
3abur a/quires Balsara
3abur announ/es Bonus after A9 years
3abur /rosses H9 Bin mar7et /ap, adopts US !AA*
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4.1 Milestones to Success
3abur India (td1 made its be.innin.s 2ith a small pharma/y, but has /ontinued to
learn and .ro2 to a /ommandin. status in the industry1 #he ompany has .one a
lon. 2ay in populari=in. and ma7in. easily a6ailable a 2hole ran.e of produ/ts
based on the traditional s/ien/e of Ayur6eda1 And it has 6ery hi.h standards in
de6elopin. produ/ts and pro/esses that meet strin.ent quality norms1
o 1884 - Established by Dr. S K Burman at Kolkata
o 1896 - First production unit established at Garhia
o 1919 - First R&D unit established
o Early 1900s- Production of Ayurvedic medicines
3abur identifies nature"based Ayur6edi/ medi/ines as its area of spe/iali=ation1 It
is the first /ompany to pro6ide health /are throu.h s/ientifi/ally tested and
automated produ/tion of formulation based on our traditional s/ien/e1
o 1930 - Automation and Upgadation of Ayurvedic product manufacturing
initiated
o 1936 - Dabur ( Dr. S.K Burman) Pvt. Ltd. Incorporated
o 1940- Personal care through Ayurveda
3abur introdu/es /onsumers to personal /are throu.h Ayur6eda, 2ith the laun/h
of 3abur Amla Hair %il1 #he produ/t 2as so popular that it be/ame the lar.est
sellin. hair oil brand in India1
o 1949- Launched Dabur Chyawanprash in tin pack
+idenin. the popularity and usa.e of traditional Ayur6edi/ produ/ts /ontinues1
#he an/ient restorati6e hya2anprash is laun/hed in pa/7a.ed form, and
be/omes the first branded /hya2anprash in India1
o 1957- Computerizations of operations initiated
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o 1970- Entered Oral Care & Digestives Segment
Addressin. rural mar7ets 2here homemade oral /are is more popular than
multinational brands, 3abur introdu/es (al 3ant Man8an1 +ith this a
/on6eniently pa/7a.ed herbal toothpo2der is made a6ailable at affordable /osts
to masses1
o 1972- Shifts base to Delhi from Calcutta
o 1978- Launches Hajmola tablet
3abur /ontinues to ma7e inno6ati6e produ/ts based on traditional formulations
that /an pro6ide holisti/ /are in our daily life1 An Ayur6edi/ medi/ine used as a
di.esti6e aid is branded and laun/hed as the popular Ha8mola tablet1
o 1979- Commercial production starts at Sahibabad, the most modern
herbal medicines plant at that time
o 1984- Dabur completes 100 years
o 1988- Launches pharmaceutical medicines
o 1989- Care with fun
#he Ayur6edi/ di.esti6e formulation is /on6erted into a /hildren5s fun produ/t
2ith the laun/h of Ha8mola andy1 In an inno6ati6e mo6e, a /urati6e produ/t is
/on6erted to a /onfe/tionary item for 2ider usa.e1
o 1994- Comes out with first Public issue
o 1994- Enters oncology segment
o 1994- Leadership in Health care
3abur establishes its leadership in health /are as one of only t2o /ompanies
2orld2ide to laun/h the anti"/an/er dru. Inta4el F*a/lita4el)1 3abur Resear/h
&oundation de6elops an e/o"friendly pro/ess to e4tra/t the dru. from its plant
sour/e 1
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o 1996- Enters foods business with the launch of Real Fruit 1uice
o 1996- Real blitzkrieg
3abur /aptures the ima.ination of youn. Indian /onsumers 2ith the laun/h of
Real &ruit -ui/es" a ne2 /on/ept in the Indian foods mar7et1 #he first lo/al brand
of A@@I pure natural fruit 8ui/es made to International standards, Real be/omes
the fastest .ro2in. and lar.est sellin. brand in the /ountry1
o 1998- Burman family hands over the management of the company to
professionals
o 2000- The 1,000 crore mark
3abur establishes its mar7et leadership status by sta.in. a turno6er of Rs1 A,@@@
/rores1 A/ross a span of o6er A@@@ years, 3abur has .ro2n from a small
be.innin. based on traditional health /are1
o 2001- Super specialty drugs
+ith the settin. up of 3abur %n/olo.y5s sterile /ytoto4i/ fa/ility, the ompany
.ains entry into the hi.hly spe/iali=ed area of /an/er therapy1 #he state"of"the art
plant and laboratory in the UK ha6e appro6al from the MA of UK1 #hey follo2
&3A .uidelines for produ/tion of dru.s spe/ifi/ally for $uropean and Ameri/an
mar7ets1
o 2002- Dabur record sales of Rs. 1163.19 crore on a net profit of Rs
64.4 crore
o 2003- Dabur demerges Pharmaceutical business
Maintaining Global Standards
As a refle/tion of its /onstant efforts at a/hie6in. superior quality standards,
3abur be/ame the first Ayur6adi/ produ/ts /ompany to .et IS% C@@9
/ertifi/ation1
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Science for Nature
Reinfor/in. its /ommitment to nature and its /on6ersation, 3abur Nepal, a
subsidiary of 3abur India, has set up fully automated .reenhouses in Nepal1 #his
s/ientifi/ landmar7 helps to produ/e saplin.s of rare medi/inal plants that are
under threat of e4tin/tion due to e/olo.i/al de.radation1
Merger with Balsara
Mer.er of E Balsara ompanies" Besta /osmeti/s, Balsara hy.iene *rodu/ts and
Balsara Home *rodu/ts to be effe/ti6e from April A,9@@:1
o 2005- Dabur acquires Balsara
o 2006- Dabur announces Bonus after 12 years
o 2006- Dabur crosses $2 Bin market cap, adopts US GAAP
Dabur Worldwide
3abur5s mission of populari=in. a natural lifestyle trans/ends national
boundaries1 #oday there is .lobal a2areness of alternati6e medi/ines, nature
based and holisti/ lifestyles and an interest in herbal produ/ts1 3abur has been in
the forefront of populari=in. this alternati6e 2ay of life, mar7etin. its produ/ts in
more than ;@ /ountries all o6er the 2orld1
4.2 Its Products World Wide
o %ffi/es and representati6es in $urope, Ameri/a and
Afri/a
o A spe/ial herbal health /are and personal /are ran.e su//essfully sellin. in
mar7ets of the Middle $ast, &ar $ast and se6eral $uropean /ountries15
o Inroads into $uropean and Ameri/an mar7ets that ha6e .ood potential due
to resur.en/e of the ba/7"to"nature mo6ement1
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4.3 Corporate Governance
In India, the Se/urities and $4/han.e of India FS$BI) stipulates /orporate
.o6ernan/e standards for listed /ompanies throu.h the lause <C of the listin.
a.reement of the sto/7 e4/han.es1
!ood /orporate .o6ernan/e and transparen/y in a/tions of the mana.ement is 7ey
to a stron. bond of trust 2ith the ompany5s sta7eholders1 3abur understands the
importan/e of .ood .o6ernan/e and has /onstantly a6oided an arbitrary de/ision"
ma7in. pro/ess1 In this pursuit, 3abur has already put in pla/e systems and
pro/edures and is fully /ompliant 2ith the re6ised lause <C 2ell before it
be/omes mandatory1 #hus at 3abur, 2e belie6e .ood .o6ernan/e is 7ey to stron.
bond of trust bet2een the /ompany and all its sta7eholders1
4.4 IT Initiatives
In 3abur India (imited 7no2led.e and te/hnolo.y are 7ey and effi/ien/y1
#o2ards this o6erall .oal of te/hnolo.y"dri6en performan/e, 3abur is utili=in.
the 2orld1 It 2ill also /ut do2n /osts and in/rease profitability1 Information
#e/hnolo.y in a bi. 2ay1 Resour/es, 2hi/h ha6e helped the ompany, a/hie6e
hi.her le6els of e4/ellen/e this 2ill help in inte.ratin. a 6ast distribution system
spread all o6er India and a/ross1
4.5 Future Challenges
&or2ard Inte.ration of SA* 2ith 3istributors and Sto/7ists1
Ba/72ard Inte.ration of SA* 2ith Suppliers1
Implementation of ne2 *%S system at Sto/7ist point and inte.ration 2ith
SA*"$R*1
Implementation of SA* HR and payroll1
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SA* Roll"out to 3N*( and other ne2 businesses
4.6 Central Procurement & Planning Department
3abur has established a entral *ro/urement ' *lannin. 3epartment F**3) to
ta7e /are of all hi.h 6alue pur/hases a/ross the /ompany1 #he **3 is housed at
the Kaushambi orporate %ffi/e FK%) and is headed by the head" **31 (o2
6alue pur/hases are de"/entrali=ed at he manufa/turin. units1 A Unit *ur/hase
Heads the *ur/hase 3epartment at the manufa/turin. units1
3abur India (imited has also set up a /ross"fun/tional *ur/hase ommittee to
.uide and o6ersee the pur/hasin. fun/tion at the K%1 #he pur/hase /ommittee
/omprises of the follo2in.0
Head J **3
Head J Mar7etin.
3eputy !eneral Mana.er J %perations
hief &inan/ial %ffi/er
4.7 Quality Objectives
#o fo/us on /ustomer and su//essfully meet their needs and requirements1
#o manufa/ture effe/ti6e personal /are, ayur6edi/ and food produ/ts at
/ompetiti6e pri/es and impro6e the quality of life of /ommon masses1
#o implement system to ensure pre6ention of errors rather than dete/tion
of errors1
#o ensure .lobal /ompetiti6eness by stri6in. to a/hie6e urrent and !ood
Manufa/turin. *ra/ti/es F!M*)
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4.8 Organization structure
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Dabur DaburIndia Ltd India Ltd . .
Corporate Office Corporate Office
Chairman Chairman
( (Vivek VivekC C Burman Burman ) )
Executive Director (Operations) Executive Director (Operations) Unit eads Unit eads
Chief Executive Officer
!uni" Du##a"
eads ($arketin#) eads ($arketin#)
%e#iona" $ana#ers) %e#iona" $ana#ers)
Branch $ana#er Branch $ana#er
$arketin# Executives $arketin# Executives
Customer !upport Customer !upport
Officers Officers
&ssistants &ssistants
ead ead
('inance ( Commercia") ('inance ( Commercia")
$ana#er (&ccounts) $ana#er (&ccounts)
&sst) $ana#er ( &sst) $ana#er ( Comm Comm) )
&ccounts Officer &ccounts Officer
!r) Executive (!tores) !r) Executive (!tores)
ead ead
(uman %esources) (uman %esources)
% $ana#er % $ana#er
% Executive % Executive
% !up) % !up)
ead ead
(*ua"it+ Contro") (*ua"it+ Contro")
&ssistant $ana#er &ssistant $ana#er
!enior Officers !enior Officers
Officers , !upervisors Officers , !upervisors
ead ead
($f#) ( !hop $aintenance) ($f#) ( !hop $aintenance)
&ssistant $ana#er &ssistant $ana#er
!enior Officers !enior Officers
Officers , !upervisors Officers , !upervisors
Dabur DaburIndia Ltd India Ltd . .
Corporate Office Corporate Office
Chairman Chairman
( (Vivek VivekC C Burman Burman ) )
Executive Director (Operations) Executive Director (Operations) Unit eads Unit eads
Chief Executive Officer
!uni" Du##a"
eads ($arketin#) eads ($arketin#)
%e#iona" $ana#ers) %e#iona" $ana#ers)
Branch $ana#er Branch $ana#er
$arketin# Executives $arketin# Executives
Customer !upport Customer !upport
Officers Officers
&ssistants &ssistants
ead ead
('inance ( Commercia") ('inance ( Commercia")
$ana#er (&ccounts) $ana#er (&ccounts)
&sst) $ana#er ( &sst) $ana#er ( Comm Comm) )
&ccounts Officer &ccounts Officer
!r) Executive (!tores) !r) Executive (!tores)
ead ead
(uman %esources) (uman %esources)
% $ana#er % $ana#er
% Executive % Executive
% !up) % !up)
ead ead
(*ua"it+ Contro") (*ua"it+ Contro")
&ssistant $ana#er &ssistant $ana#er
!enior Officers !enior Officers
Officers , !upervisors Officers , !upervisors
ead ead
($f#) ( !hop $aintenance) ($f#) ( !hop $aintenance)
&ssistant $ana#er &ssistant $ana#er
!enior Officers !enior Officers
Officers , !upervisors Officers , !upervisors
4.9 Dabur Products
Dabur Health Care Product Range
Health Supplements
3abur hya2anprash
3abur hya2ansha7ti
!lu/ose"3
Digestives
Ha8mola )umsti/7
Ha8mola Mast Masala
Anardana
Ha8mola
Ha8mola andy
*udina hara
3abur Hin.oli
Natural Cures
Shila8it !old
Nature are
Rin. Rin.
It/h are
Ba/7"aid
Shan7ha *ushpi
3abur Balm
Sarbyna Stron.
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Dabur Baby Care Product Range
Baby Care
3abur (al #ail
3abur baby %li6e oil
3abur -anma !hutti
Dabur Personal Care Product Range
Hair Care-Oil
Amla Hair %il
Amla (ite Hair %il
Vati7a Hair %il
Anmol Sarson Amla
Hair Care- Shampoo
Anmol Sil7y Bla/7 Shampoo
Vati7a Henna /onditionin. Shampoo
Vati7a Anti"3andruff Shampoo
Skin Care
!ulabari
Vati7a &airness &a/e *a/7
U6eda fa/e pa/7 ' fairness /ream
Dabur Oral Care Product Range
Oral Care
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3abur Red !el
Babool #oothpaste
3abur Red #oothpaste
3abur (al 3ant Man8an
3abur Bina/a #oothbrush
Dabur Foods Product Range
Real
Real &ruit -ui/e
Real A/ti6e
Homemade
Lemoneez
Natural (emon -ui/e
Honey
*ure Natural Honey
Capsico
A fiery red"pepper sau/e
Dabur Ayurveda Product Range
3ashmularishtha
Asho7arishtha
(auhasa6a
Mahanarayan #ail
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-uritap
Madhu6ani
(a6an Bhas7er
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4.10 Vision and Mission
Founding Thought: ~What is that life worth which cannot bring comfort
to others.
Vision: ~ Dedicated to the health and well being of every household.
Mission: ~ To become a leading nature-based health and family care
Products Company.
4.11 Core Values
Ownership: A//ept personal responsibility, and a//ountability
to meet business needs1
Passion for Winning: (eaders in the area of responsibility, 2ith a deep
/ommitment to deli6er results1 3etermined to be the
best at doin. 2hat matters most1
People Development: *eople are the most important asset1 Add 6alue
throu.h result dri6en trainin., and 2e en/oura.e '
re2ard e4/ellen/e1
Customer Focus: Superior understandin. of /onsumer needs and
de6elop produ/ts to fulfill them better1
Team Work: +or7 to.ether on the prin/iple of mutual trust '
transparen/y in a boundary"less or.anisation1
Intelle/tually honest in ad6o/atin. proposals,
in/ludin. re/o.ni=in. ris7s1
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4.12 Major Strategic Business Units
In India, the ompany5s business is /arried out by three Strate.i/ Business Units
FSBUs) namely0
Consumer Care Division, 2ith a share of B9I in its total sales1
Consumer Healthcare Division, 2ith a share of BI in its total sales1
Dabur Foods Limited as a 2holly o2ned subsidiary 2ith a share of A@I in its total
sales1
% share in Domestic Revenues
CHD
8%
Food
10%
CCD
82%
Food
CHD
CCD
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5. RESEARCH AND METHODOLOGY
Resear/h is an or.ani=ed inquiry desi.ned and /arried out to pro6ide information to sol6e
the problem1 #he fa/t, sear/h is an art of s/ientifi/ in6esti.ation of a /ertain problem1
>Resear/h is the pro/ess of systemati/ally obtainin. a//urate ans2ers to si.nifi/ant and
pertinent questions by the use of the s/ientifi/ methods .atherin. and interpretin.
information?1
a. Sample size:
Sample si=e is E@1 3ata 2as analy=ed by sur6eyin. employees from different
departments1
b. Sample design:
#his part is done throu.h dis/ussin. and analy=in. 2ith my pro8e/t .uide and
referrin. to the sub8e/t re.ardin. this topi/1 It 2as a random samplin.1
c.
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Title of the study
#he title of the study is Performance Appraisal` at Dabur India Limited, Ghaziabad
(U.P)
Objective of the study
A) #o study the performan/e appraisal system in the or.ani=ation1
9) #o find out ho2 the performan/e of employees is assessed1
E) #o re6ie2 ho2 the performan/e appraisal system helps in pla/ement, sele/tion,
promotion and transfer of the employees1
<) #o find out the problems fa/ed by the staff in preparin. their BB%5s FBusiness
Buildin. %b8e/ti6e)1
;) #o offer su..estions and re/ommendation re.ardin. the e4istin. performan/e
appraisal system in the /ompany1
Limitations of Performance Appraisa l
A) #he opinion of staff and mana.er are often in opposition, /ausin. de"moti6ation1
9) #he pro/ess is usually mana.er dri6en and the staff member is e4pe/ted to be
/ompliant in the inter6ie21
E) #he pro/ess usually in6ol6es mana.er .i6in. their opinion and the staff member
ha6in. to defend the position, rather than a positi6e dis/ussion1
<) #here is no room for remedial a/tion durin. the year1
;) #he pro/ess is usually done in a rushed manner to meet the bud.et de6elopment
pro/ess and therefore loses its rele6an/e to performan/e1
*a.e 9; of :;
SOURCES OF DATA
3ata olle/tion is the /olle/tion of ne/essary detail to .ain further information1 #his
requires both primary and se/ondary data1
A. Secondary data:
My HR .uide, Mr1 *a2an *onia in 3abur India (imited, helped me in se/ondary
data /olle/tion1
]
*a.e 9: of :;
6. HUMAN RESOURCE AT DABUR
3abur pla/es .reat deal of /onfiden/e on its e4/ellent pool of human resour/es, 2hi/h it
reali=es is the 7ey to its further .ro2th strate.y1 #he /ompany /ontinued its efforts to
further ali.n its HR poli/ies, pro/esses and initiati6es to meet the business needs1
In line 2ith its fo/us on international operations, 3abur implemented a uniform HR
stru/ture a/ross all the .roups /ompany5s operations1 #his 2ill enable seamless
transa/tion s bet2een domesti/ and o6erseas position1 Also the inte.ration of the
personnel of the erst2hile &amily *rodu/ts 3i6ision F&1*13) ' Health/are *rodu/ts
3i6ision FH11*13) 2as implemented effi/iently to suit the requirements 2ell 2ithin
time1 Ma8or initiati6es ta7en 2ere0
3abur implements performan/e metri/s for all 7ey positions based on t2o aspe/ts
of the Balan/ed S/ore ard Approa/h" &inan/ial and Internal Business *ro/ess1
#his approa/h /learly outlines the e4pe/tation from ea/h position and 2ill be
up.raded to in/lude t2o more aspe/ts for any 7ey mana.erial positions in future1
#he ompany institutionali=ed the >Assessment and 3e6elopment
enter?FA131) approa/h to all positions from staff to offi/er /adre and also at
the senior le6elsto ob8e/ti6ely identify, de6elop and promote the talent from
2ithin, and to pro6ide indi6idual feedba/7 for de6elopment of the parti/ipatin.
employees1
#o en/oura.e learnin., the ompany is plannin. to set"up a learnin. /enter,
2hi/h 2ill be equipped 2ith a library, I1# ' +eb based sour/es of 7no2led.e1 It
is also in the pro/ess of settin. up a 7no2led.e mana.ement portal and a
leadership and /apability de6elopment /ell
3abur is /ommitted to attra/t fresh talents1 #o2ards this end, the /ompany
required o6er 9@ /andidates from leadin. mana.ement and en.ineerin. institutes
in the /ountry, 2ho 2ill be indu/ted1
*a.e 9D of :;
7. INTRODUCTION TO PERFORMANCE APPRAISAL
#his is a te/hnique, not uni6ersally a//epted, of assessin. the performan/e of employees
a.ainst a.reed tar.ets1 #he personnel pra/titioners 2ould be most li7ely to be in6ol6ed in
desi.nin. the pro/edures, lea6in. the line mana.ers normally to administer the pro/ess1
*erforman/e Appraisal is the systemati/ e6aluation of the indi6idual 2ith respe/t to his
or her performan/e on the 8ob and his or her potential for de6elopment1
7.1 Aims of Performance Appraisal
#he follo2in. aims mi.ht be /onsidered 2hen e4aminin. a performan/e appraisal
system0
Use reliable, fair and ob8e/ti6e measures of performan/e, /ompare a/tual
2ith planned performan/e, and pro6ide feedba/7 to the appraisee1
Ma7e pro6ision for the allo/ation of both e4trinsi/ re2ards Fperforman/e related pay) and
intrinsi/ re2ards Fopportunity to enhan/e one5s s7ills) follo2in. the assessment pro/ess1
Re/o.ni=e that performan/e mana.ement is the heart of the .eneral mana.ement pro/ess1
7.2 Objectives of Performance Appraisal
3ata relatin. to performan/e assessment of employees are re/orded, stored and
used for se6eral purposes1 #he main purposes of employee assessment are0
#o effe/t promotions based on /ompeten/e and performan/e1
#o /onfirm the ser6i/es of probationary employees upon their /ompletin. the
probationary period satisfa/torily1
#o assess the trainin. and de6elopment needs of employees1
#o de/ide upon a pay raise 2here re.ular pay s/ales ha6e not been fi4ed1
*a.e 9B of :;
7.3 Appraisal Techniques
ertain te/hniques are a6ailable to e6aluate the performan/e of the employee1
Written report0 #he appraiser 2rites about the stren.ths, 2ea7nesses,
pre6ious performan/e and potential of the appraisee, 2ith su..estions for
impro6ement1 It is important that the appraiser is per/epti6e 2ith
reasonable 2ritin. s7ill1
Critical incidents0 #he appraiser hi.hli.hts in/idents or 7ey e6ents that
sho2 the appraisee5s beha6ior as e4/eptionally .ood or bad in relation to
parti/ular out/omes at 2or71 #his e4er/ise 2ould depi/t desirable
beha6iors as 2ell as beha6ior that si.nal a need for impro6ement1
Graphic Rating Scale0 #his is a popular appraisal te/hnique and it lends
itself to quantitati6e analysis and /omparison of data1 A set of
performan/e fa/tors id identified, in/ludin. su/h /hara/teristi/s as quality
of 2or7, te/hni/al 7no2led.e, /ooperati6e spirit, inte.rity, pun/tuality
and initiati6e1 #he appraiser 2ould .o throu.h the set of fa/tors ratin.
them, for e1.1, on a s/ale A to ; 2here the hi.hest number 2ould denote
the best ratin.1
Multi-person Comparison0 #his te/hnique is relati6e rather than an
absolute measure, is used to assess one person5s performan/e a.ainst one
or more other indi6iduals1
Multi-rater Comparative Evaluation0 #he total appraisal pro/ess
/onsists of inter6ie2s, psy/hometri/ testin., simulations of rele6ant 2or7
a/ti6ities, peer appraisals and appraisals by trained assessors1
Self-appraisal0 Self"appraisal has introdu/ed as a mean for empo2erin.
employees, enhan/in. team2or7 and raisin. a2areness of quality1 #he
employees are .i6en appraisal forms on 2hi/h they e6aluate themsel6es
a.ainst /riteria su/h as attendan/e, produ/ti6ity, quality, safety, team2or7
and /ommitment1
*a.e 9C of :;
7.4 Who are Raters?
Raters /an be immediate super6isors, spe/ialists from the HR department,
subordinates, peers, /ommittees, /lients, self"appraisals, or /ombinations of
se6eral1 Immediate super6isor is the most fit /andidate to appraise the
performan/e of his or her subordinates as no one is more familiar 2ith the
subordinate5s performan/e than his or her superior1 Subordinates /an assess the
performan/e of their superiors1 #his helps in assessin. an employee5s ability to
/ommuni/ate, dele.ate 2or7, allo/ate resour/es, disseminate information and
resol6e intra"personal /onfli/t1 *eers are in a better position to e6aluate /ertain
fa/ts of 8ob performan/e, 2hi/h the subordinates or superiors /annot do1
+here superiors, subordinates and /lients, ma7e the appraisal it is /alled E:@"
de.ree system of appraisal1
7.5 What should be Rated?
Kuality0 #he de.ree to 2hi/h the pro/ess or result of /arryin. out an a/ti6ity
approa/hes in terms of fulfillin. the a/ti6ity5s intended purpose1
Kuantity0 #he amount produ/ed, e4pressed in monetary terms, number of
units or number of /ompleted a/ti6ity /y/les1
#imeliness0 #he de.ree to 2hi/h an a/ti6ity is /ompleted or a result produ/ed
at the earliest time desirable
ost $ffe/ti6eness0 #he de.ree to 2hi/h the use of or.ani=ation5s resour/es is
ma4imi=ed in the sense of .ettin. the hi.hest .ain by minimi=in. the losses1
Need for Super6ision0 #he de.ree to 2hi/h a 8ob performer /an /arry out a
8ob fun/tion1
Interpersonal Impa/t0 #he de.ree to 2hi/h a performer promotes feelin. of
self"esteem, .ood2ill and /ooperation amon. /o"2or7ers and subordinates1
7.6 Factors Determining Performance Evaluation
*a.e E@ of :;
Halo Error0 A halo error ta7es pla/e 2hen one aspe/t of an indi6idual5s
performan/e influen/es the e6aluation of the entire performan/e of the
indi6idual1 Ratin. employees separately on ea/h of a number of performan/e
measures and en/oura.in. raters to .uard a.ainst the halo effe/t are the t2o
2ays to redu/e the halo effe/t1
Leniency0 $6ery e6aluator has his o2n 6alue system, 2hi/h a/ts as a standard
a.ainst 2hi/h he ma7es his appraisals1 Relati6e to the true or a/tual
performan/e an indi6idual e4hibits, some super6isors ha6e a tenden/y to be
liberal in their ratin.s1
Central Tendency0 #his o//urs 2hen the e6aluator assi.ns a6era.e or middle
ratin.s to the employees1 #he attitude of the rater is to play safe1 #his safe"
playin. attitude stems from /ertain an4ieties and doubts about the beha6ior of
employee1 Su/h tenden/y distorts the e6aluation1
Rater Effect: #his in/ludes fa6oritism, stereotypin. and hostility1
$4/essi6ely hi.h or lo2 s/ores are .i6en only to /ertain indi6iduals or .roups
based on the rater5s attitude to2ards the rate1 A.e, se4, ra/e and friendship
biases are e4amples of this type of error1
Perceptual Set0 #his o//urs 2hen the rater5s assessment is influen/ed by
pre6iously held beliefs1 If super6isor, for e4ample, has a belief that employees
hailin. from one parti/ular re.ion are hard 2or7in., his subsequent ratin. of
an employee hailin. from that re.ion tends to be fa6orably hi.h1
Spillover Effect0 #his refers to allo2in. past performan/e appraisal ratin.s to
un8ustifiably influen/e /urrent ratin.s1 *ast ratin.s, .ood or bad, result in
similar ratin. for the /urrent period althou.h the demonstrated beha6ior does
not deser6e the ratin. .ood or bad1
Status Effect0 It refers to o6erratin. of employees in hi.her le6el 8ob or 8obs
held in hi.h esteem, and underratin. employees in lo2er le6el 8ob or 8obs held
in lo2 esteem1
7.7 Performance Appraisal Methods
*a.e EA of :;
#he last to be addressed in the pro/ess of desi.nin. an appraisal pro.ram is to
determine methods of e6aluation1 Numerous methods ha6e been de6ised to
measure the quantity and quality of employee5s 8ob performan/e1 Broadly, all the
approa/hes of appraisal /an be /lassified into0
*ast oriented Methods, and
&uture oriented Methods
Past Oriented Methods
Rating Scale0 #his is the simplest and most popular te/hnique for
appraisin. employee performan/e1 #he typi/al ratin. s/ale /onsist of se6eral numeri/al
s/ales, ea/h representin. a 8ob related performan/e /riterion su/h as dependability,
initiati6e, output, attendan/e, attitude, /o"operation, and the li7e1 $a/h s/ale ran.es from
e4/ellent to poor1 #he rater /he/7s the appropriate performan/e le6el on ea/h /riterion,
and then /omputes the employee5s total numeri/al s/ore1 #he number of points s/ored
may be lin7ed to salary in/rease1 #he disad6anta.es of this method are se6eral1 #he
rater5s biases are li7ely to influen/e e6aluation1
Checklist0 Under this method, a /he/7list of statements on the traits of the
employee and his or her 8ob is prepared in t2o /olumns i1e1, a L)es5 and a LNo5 /olumn1
All that the rater should do is ti/7 the L)es5 /olumn if the ans2er to the statement is
positi6e and in /olumn LNo5 if the ans2er is ne.ati6e1 After ti/7in. off a.ainst ea/h item,
the rater for2ards the list to the HR department 2here the a/tual assessment of the
employee ta7es pla/e1 #he ad6anta.es of a /he/7list are e/onomy, ease of administration,
limited trainin. of rater and standardi=ation1
*a.e E9 of :;
Essay Method0 In the essay method, the rater must des/ribe the employee
2ithin a number of broad /ate.ories, su/h as0
i) #he rater5s o6erall impression of the employee5s performan/e,
ii) #he promotability of the employee,
iii) #he 8obs that5s the employee is no2 able or qualified to perform,
i6) #he stren.ths and 2ea7nesses of the employee,
6) #he trainin. and the de6elopment assistan/e required by the employee
#he stren.th of the $ssay method depends on the 2ritin. s7ills and
analyti/al ability of the rater1 A problem 2ith this method is that the ratees
may be rated on the quality of the appraisals that they .i6e1
Ranking Method0 In this, superior ran7s his or her subordinates in the
order of their merit, startin. from the best to the 2orst1 #he HR
department 7no2s that A is better than B1 #he Lho25 and L2hy5 are
neither questioned nor ans2ered1 #his method is sub8e/t to the halo
effe/ts1 Its ad6anta.e in/ludes ease of administration and e4planation1
Forced Distribution Method0 %ne of the errors in ratin. is lenien/y"
/lusterin. a lar.e number of employees around a hi.h point on a ratin.
s/ale1 #his method see7s to o6er/ome the problem by /ompellin. the rater
to distribute the ratees on all points on the ratin. s/ale1 #he method
operates under an assumption that the employee performan/e le6el
/onforms to a normal statisti/al distribution1 #he ma8or 2ea7ness of the
for/ed distribution method lies in assumption that employee performan/e
le6els al2ays /onform to a normal distribution1
*a.e EE of :;
Future Oriented Appraisal
Management by objective0 I t 2as *eter 3ru/7er 2ho .a6e first the
/on/ept of MB% to the 2orld 2ay ba/7 in AC;<11 Appli/ation of MB% in the field of
performan/e appraisal is a re/ent thin7in.1 %ne /omment made a.ainst the approa/h is
that it is not appli/able to all 8obs an all or.ani=ation1 %b8e/ti6es are a.reed and
formulated at the be.innin. of the period under re6ie2, and the appraisee is .i6en the
ne/essary assistan/e and trainin. to fa/ilitate the a/hie6ement of those ob8e/ti6es1
Psychological Appraisal0 (ar.e or.ani=ation employs full"time industrial
psy/holo.ists1 +hen psy/holo.ists are used for e6aluations, they assess an indi6idual5s
future, potential and past performan/e1 #he appraisal normally /onsists of in"depth
inter6ie2s, psy/holo.i/al tests, dis/ussions 2ith super6isors and a re6ie2 of other
e6aluations1 #he psy/holo.ist then 2rites an e6aluation of the employee5s intelle/tual,
emotional, moti6ational and other related /hara/teristi/s that su..est indi6idual potential
and may predi/t future performan/e1 &rom these e6aluations, pla/ements and
de6elopment de/isions may be made to shape the person5s /areer1
Assessment Centers0 Mainly used for e4e/uti6e hirin.1 Assessment
/enters are no2 bein. used for e6aluatin. e4e/uti6e or super6isory potential1 An
assessment /enter is a /entral lo/ation 2here mana.ers may /ome to.ether to ha6e their
parti/ipation in 8ob"related e4er/ises e6aluated by trained obser6ers1 Assesses are
requested to parti/ipate in in"bas7et e4er/ises, 2or7 .roups, /omputer simulations, role
playin. and other similar a/ti6ities1 After re/ordin. their obser6ations of rateeMs
beha6iors, the raters meet to dis/uss these obser6ations1 Self"appraisal and peer
e6aluation are also thro2n in for final ratin.1
360-Degree Feedback0 +here multiple raters are in6ol6ed in e6aluatin.
performan/e, the te/hnique is /alled E:@"de.ree appraisal1 #he E:@"de.ree te/hnique is
understood as systemati/ /olle/tion of performan/e data on an indi6idual or .roup,
deri6ed from a number of sta7eholders" the sta7eholders bein. the immediate
super6isors, team members, /ustomers, peers and self1 #he E:@"de.ree appraisal pro6ides
a broader perspe/ti6e about an employee5s performan/e1 Ho2e6er, there are dra2ba/7s
*a.e E< of :;
asso/iated 2ith the E:@"de.ree feedba/71 Re/ei6in. feedba/7 on performan/e from
multiple sour/es /an be unapproa/hable1 It is essential that the or.ani=ation /reate a non"
threatenin. en6ironment by emphasi=in. positi6e impa/t of the te/hnique on an
employee5s performan/e and de6elopment1 More and more number of firms are usin.
E:@"de.ree appraisal te/hnique to assess the performan/e of their employees1
7.8 Performance Appraisal Process
#he fi.ure outlines the performan/e appraisal pro/ess1 $a/h step in the pro/ess is
/ru/ial and is arran.ed lo.i/ally1
%b8e/ti6es of
*erforman/e Appraisal
$stablish -ob
$4pe/tations
3esi.n an
Appraisal *ro.ram
Appraise
*erforman/e
*erforman/e
Inter6ie2
Use Appraisal 3ata for
Appropriate *urpose
8. PERFORMANCE APPRAISAL AT DABUR
*a.e E; of :;
8.1 The System
*erforman/e Appraisal of !rade VI and belo2 in 3abur is /arried out throu.h
LRA#IN! M$#H%351 #heir immediate superior does performan/e appraisal and
HR department re6ie2s it1 *erforman/e $6aluation is done by ontribution
$nhan/ement *lan F$*) at the end of the year1 $* forms the /ore of
*erforman/e Appraisal system of employees F!rade VI and belo2 in 3abur)
#he performan/e appraisal of e4e/uti6es in 3abur is /arried out throu.h ratin.
system of performan/e appraisal by their immediate super6isor and then re6ie2ed
by latter5s boss1 #he performan/e appraisal system follo2ed at 3abur is LRatin.
Method5 and LA/tion by %b8e/ti6es Method51
#he broad stru/ture of the system /an be laid do2n as0
*a.e E: of :;
Evauation o! in"ivi"ua on
Assessment #arameters
Assessment o! ratin$ %& a##raiser throu$h
5'#oint Ratin$ Scae
Discussion o! ratin$ (ith revie(er
Com#utation o! overa !ina ratin$ %& the
)se o! Ratin$ scae ta%e
Assessment o! trainin$ Deveo#ment
Nee"s o! in"ivi"ua
Constructive !ee"%ac* $iven %& A##raiser
To A##raisee
#he performan/e appraisal of e4e/uti6es in 3abur is /arried out throu.h ratin. system of
performan/e appraisal by their immediate super6isor and then re6ie2ed by latter5s boss1
#he performan/e appraisal system follo2ed at 3abur is LRatin. Method5 and LA/tion by
%b8e/ti6es Method51
#he broad stru/ture of the system /an be laid do2n as0
*a.e ED of :;
Fixing of Business Building Objectives
(BBOs) at the beginning of the year
Assessment of actual results at the end of
The year
Performance evaluation and finalizing of
Rating through the use of Contribution
Enhancement Plan (A)
Rewarding executives on the basis of
Performance through CEP (A) & CEP (B)
8.2 Mechanism
#he e6aluation under $* /onsist of follo2in. steps0
i1 Appraiser does the ratin. after /onsiderin. indi6idual assessment
parameters of e6ery employee1
ii1 S/ores are .i6en a.ainst ea/h assessment parameter of an indi6idual in the
ratin. /olumn on the basis of ;"point ratin.1
iii1 Ratin. is re6ie2ed 2ith the re6ie2er1
i61 #otal s/ore is /omputed by addin. all the s/ores1
61 #he ratin. /ate.ory /orrespondin. to the appropriate ran.e of total s/ores is
sele/ted as o6erall final performan/e ratin. of employees from ratin. s/ale
table1
6i1 #he indi6idual de6elopment form is filled by the Appraisee, 2hi/h is further
utili=ed for trainin. and de6elopment needs of employees, besides .i6in. a
dire/tion to hisGher /areer .ro2th in the or.ani=ation1
*a.e EB of :;
6ii1 After /ompletin. the appraisal, a /onstru/ti6e feedba/7 should be .i6en to
the Appraisee by the Appraiser in presen/e of re6ie2er1
&inally, ontribution $nhan/ement *lan dis/usses ratin. for de/idin. upon the
performan/e re2ards in the form of0
Annual Re2ards
*romotions
8.3 Contribution Enhancement Plan
ontribution $nhan/ement *lan or $* is a pro/ess, 2hi/h 2ill enable 3abur to
impro6e or.ani=ational /ontribution throu.h enhan/ed /ontribution of indi6idual1
It aims to establish formal indi6idual ob8e/ti6es and to re6ie2 subsequent
/ontribution in order to reinfor/e su//essful beha6iors, to /orre/t shortfalls and to
plan trainin. and de6elopment a/ti6ities1 #he system 2ill ensure that all
mana.ement staff employees are a2are as to 2hat is e4pe/ted from them1 #his is
a de6elopmental plan for the impro6ement in /ontribution of e4e/uti6es to2ards
or.ani=ation5s or SBU5S a/hie6ement of ob8e/ti6es and its de6elopment1 It is
/ate.ori=ed into 9 parts0
ontribution $nhan/ement *lan NF$*)AO
ontribution $nhan/ement *lan NF$*)BO
ontribution $nhan/ement *lan FA) e6aluates the /ontribution of an indi6idual and
de/ides re6ision in fi4ed pay and ontribution $nhan/ement *lan FB) is /on/erned
2ith 6ariable pay1
8.4 Objectives of CEP
i) #o establish formal /ontribution standards1
*a.e EC of :;
ii) #o establish a system that is fa/t based and minimi=es sub8e/ti6ity in the
assessment of an indi6idual5s /ontribution1
iii) It should pro6ide /onstru/ti6e feedba/7 for de6elopment of an employee1
i6) $nable the indi6idual to e6aluate hisGher o2n areas of stren.ths and areas
of impro6ement for bein. a better mana.er1
8.5 Applicability of CEP
i) #he system is appli/able to !rade V and abo6e employees of the
/ompany1
ii) Settin. of E to ; BB%5s, 2hi/h are measurable
iii) Related to areaGposition in 2hi/h employees operates1
i6) $6aluation of /ontribution and fo/us on employee de6elopment1
8.6 Business Building Objective (BBO`s) Process
Business Buildin. %b8e/ti6es FBB%5s) are mutually a.reed ob8e/ti6es bet2een an
employee and hisGher superior1 #hese are tan.ible business tar.ets, 2hi/h are
measurable1
#he first sta.e is for the people initiatin. the re6ie2 /y/leto understand the
business plan so that there is /larity about the dire/tion and priorities of the
or.ani=ation1 #his 2ill help ensure that indi6idual BB%5s support the o6erall
business plan1
8.7 BBO`s Identification and Review Processes
BB%5s needed to be established the li.ht of the annual business plan1 #he set
ob8e/ti6es must be rele6ant in /onte4t 2ith ea/h indi6idual role1
#he employees must prepare in ad6an/e hisGher draft ob8e/ti6es for the ne4t year
and /ontribution a.ainst ob8e/ti6es set for the past year1 #he same need to be
*a.e <@ of :;
/arried by the appraisee for dis/ussion 2ith the appraiser1 #he appraiser 2ill also
/ome prepared 2ith BB%5s Fboth past and future) for the employee1 At the
meetin. they 2ill dis/uss the year ahead and see7 a.reement on 6arious
ob8e/ti6es1 3urin. the same meetin. they 2ill also dis/uss the /ontribution
a.ainst the past year5s BB%5s1 %n/e the ob8e/ti6es for the ne4t year are set and
a.reed upon the same need to be /ommuni/ated to the employee in 2ritin.1 #he
employee shall be e6aluated a.ainst BB% durin. mid"year at the end of
assessment year1
BB%5s identifi/ation, assessment and re6ie2 of /ontribution, assessment of traits
and s7ills, trainin. and de6elopment needs and plans 2ill be 8oint responsibility if
the appraisee and the appraiser1 #he re6ie2er needs to be satisfied that the 7ey
elements of the pro/ess ha6e done /orre/tly1
8.8 Conduct the Interim Contribution Review/s
In the mid of the assessment year the appraiser and the appraisee should meet to
re6ie2 the pro.ress a.ainst the set BB%5s1 #his should in/lude a dis/ussion of an
assessment of 2hether any BB%5s should be amended, deleted or introdu/ed1 #he
Interim ontribution Re6ie2 is a formal opportunity to reinfor/e effe/ti6e
beha6iors, identify and /orre/t any problems, .i6e .eneral feedba/7Gad6i/e, and
to ensure the annual assessment 2ill be fair1 #his should be re/orded in 2ritin.
and a /opy is .i6en to the indi6idual1
8.9 Category of Contribution
*a.e <A of :;
#he ontribution ratin. is to be done on a ;"point s/ale for ea/h set BB%1 #heir
ratin.s are as follo2s0
Rating Qualitative Description Score
%utstandin. F%S)
onsistently e4/eed 8ob e4pe/tations and
standards1
$mployee /ontribution has been e4emplary and
has displayed .ood .rasp of the 8ob and handles
additional responsibilities 2ith /onfiden/e and
ease, 2hile o6er/omin. e4/eptional /hallen.es
or applyin. unique solutions1
5
Stron. FS#)
Very .ood /ontribution and often e4/eeds 8ob
e4pe/tations1 A .ood learner 2ho /an handle
the 8ob 2ith minimum super6ision1
4
!ood F!3)
Meet e4pe/tation on most of the set ob8e/ti6es1
Requires o//asional super6ision and has
adequate 7no2led.e of the 8ob1
3
Satisfa/tory FS#)
In/onsistent in meetin. the set ob8e/ti6es1
Needs re.ular .uidan/e1 Has 7no2led.e about
the 8ob ho2e6er the same needs to be brushed
up
2
Belo2 $4pe/tations FB$)
ontribution is mu/h belo2 the set tar.ets1
onstantly needs super6ision and .uidan/e1
*ro/esses lo2 le6el of 8ob 7no2led.e and s7ills
1
8.10 Contribution Grid
#he /ontribution .rid for arri6in. at final ratin. is as follo2s0
Final Rating Total Score Range
%utstandin. <19:";1@@
Stron. E1;A"<19;
!ood 91;A"E1;@
Satisfa/tory A1;A"91;@
Belo2 $4pe/tation PA1;@
8.11 Assessment of Managerial Effectiveness
$* forms pertain to e6aluation of mana.erial /ompeten/ies1 *erformin. ea/h
8ob requires appli/ation of /ertain beha6ior traitsGs7ills1 #herefore, it is desirable
*a.e <9 of :;
to assess the appraise on traitsGs7ills1 #he appraiser 2ill pi/7 the rele6ant
traitsGs7ills appli/able to the 8obGfun/tion1 Minimum of : and ma4imum of B
traitsGs7ills must be /hosen after /areful thou.ht and thereafter rated on ;"point
s/ale as mentioned belo20
Skills/Traits Ratings
Stron.ly 3emonstrated ;
&airly 3emonstrated <
*resent but not /onstantly demonstrated E
Require si.nifi/ant de6elopment 9
Not up to the e4pe/tation A
8.12 Contribution Review Discussion
#he ontribution Re6ie2 3is/ussion is intended to be an enri/hin. pro/ess both
for Appraise and Appraiser1 #his is a /riti/al and final sta.e of the entire $* and
therefore has to be handled 2ith utmost sensiti6ity, so that ma4imum 6alue
addition is deri6ed from this intera/tion bet2een Appraise and Appraiser1
8.13 Contribution Enhancement Plan B (CEP B)
After e6aluation under ontribution $nhan/ement *lan FB), 6ariable for ea/h
e4e/uti6e is /ompared throu.h F$* B)1 Variable pay is a lump sum amount to be
paid to appraise on/e a year on the basis of the performan/e1
*a.e <E of :;
#he assessment of 6ariable pay is done usin. the follo2in. table0
Criterion
of fixed amount if
criterion is 100 fulfilled
ompany5s performan/e EEI
UnitGSBU5s performan/e EEI
Indi6idual performan/e E<I
If the /ompany5s performan/e meets the tar.eted performan/e then it 2ill be
/al/ulated as0 F/ompany5s a/tual performan/eG/ompany5s tar.eted performan/e)Q
A@@I1
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9. TRAINING AND DEVELOPMENT
3abur should hire professionals from outside to head 7ey positions to be/ome a player of
repute1 In ACCB, business 2as not bi. and bein. a family"o2ned /ompany, there 2ere
issues in hirin.1 3abur 2as hirin. literally at the rate of 9@"E@I1 #hey started hirin. from
/ampuses only in ACC:"CD1 #hey 2ent to the /ampuses and /arried out serious brand
buildin. e4er/ise1 #oday their lateral hirin. has /ome do2n to around A@"A;I1 3abur
e4panded their business and 2ent to IIM for hirin.1 #hey also e6ol6ed ne2 strate.ies and
a more stru/tured hirin. pro/ess1 #his 2as a hu.e su//ess and they hired /lose A@@
people in the last t2o years1 #he attrition rate at mana.ement le6el is A@I 2hile at the
field staff le6el its A:I1 3abur has also introdu/ed $sops for freshers to address the
retention issue ri.ht at the entry le6el1 urrently, the annual trainin. spend is around
Rs A1; /rore1
#rainin. and 3e6elopment plays a 6ital role in $*, 2hi/h pertains to identifi/ation of
trainin. needs throu.h a 8oint pro/ess of dis/ussion bet2een Appraise and Appraiser1 #he
employee himself does this throu.h .uidan/e, feedba/7 /ounselin. and tas7 for/e
assi.nment in/ludin. self"de6elopment initiati6es1
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10. ANALYSES AND INTERPRETATION
KA1 3o you thin7 that *erforman/e Appraisal is essential for the employees of the
/ompanyR
a) &ully
b) *artially
/) Not at all
Fully
80%
Partially
20%
Not at all
0%
Gra#h+. ,er!ormance A##raisa is essentia
Fully
Partially
Not at all
*a.e <: of :;
Analysis and Interpretation:
It sho2s B@I of the employees a.ree that performan/e appraisal is essential for the
employees of the /ompany and 9@I of the employees partially a.ree1
urrently annual appraisal system in 3abur India (imited is /arried out for the
employees at e4e/uti6e le6els and abo6e only1 #he tar.et set may be re6ie2ed quarterly
so that stren.ths and 2ea7nesses, if any, /an be assesses and remedial measures
su..ested a//ordin.ly1
K90 *erforman/e appraisal has been des/ribed as the responsibility, 2hi/h is not li7ed
by the superiors1 3o you thin7 soR
a) )es
b) *artially
/) Not at all
Gra#h-. ,er!romance A##raisa is "escri%e" as
res#onsi%iit&
Not at all
27%
Partially
46%
Yes
27%
Yes
Partially
Not at all
*a.e <D of :;
Analysis and Interpretation:
<:I e4e/uti6es say that they /onsider performan/e appraisal as the responsibility they
li7ed the least1 9DI e4e/uti6es a.ree that it is a responsibility not li7ed by them and
remainin. 9DI denies about any su/h probability1
onsiderable amount of time is spent for .ettin. the appraisals done as per the e4istin.
system1 #he /ompany should impro6e the e4istin. system by desi.nin. and
implementin. departmental performan/e re6ie2 system on a quarterly basis1
KE0 3o you a.ree that self"appraisal prior to performan/e appraisal fa/ilitates you to
.et hi.h ratin.sR
a) ompletely
b) *artially
/) Not at all
Gra#h/. Se! a##raisa #rior to #er!romance a##raisa
!aciitates to $et hi$h ratin$s.
Completely
27%
Partially
46%
Not at all
27%
Completely
Partially
Not at all
Q
*a.e <B of :;
Analysis and Interpretation:
<;1;I of the employees say partially self"appraisal fa/ilitates to .et hi.h ratin.s, 9D1EI
employees a.ree /ompletely and other 9D19I say self"appraisal does not help in hi.h
ratin.s in performan/e appraisal1
Many &M! /ompanies Fe.1 Britannia) ha6e implemented the self"appraisal system1
#his has pro6ed helpful in identifyin. the needs for in"house .roup
dis/ussionsG/ounselin. methodsGtrainin. and de6elopment pro.rams1
K<0 3oes your super6isor .i6e you effe/ti6e feedba/7 on a re.ular basisR
a) )es
b) 3epends on the employees
/) Not at all
0
10
20
30
40
50
60
70
80
0
100
,ercenta$e
Yes Depe!ds o! t"e
employees
Not at all
Gra#h0. Does su#erior $ives e!!ective !ee"%ac* on re$uar
%asis
Yes
Depe!ds o! t"e
employees
Not at all
*a.e <C of :;
Analysis and Interpretation:
It is /lear in the .raph that A@@I of the employees say that the superior .i6es them
effe/ti6e feedba/7 on a re.ular basis1
Any /ompany should .i6e feedba/7 to the employees periodi/ally1 #hey /an also e4tend
proper dia.nosti/ tipsG /ounselin. methods at the required le6el1
K;0 3o you thin7 that performan/e appraisal is the tool that impro6es employees5
performan/e le6elR
a) #o a .reat e4tent
b) #o some e4tent
/) Not at all
Gra#h5. ,er!ormance a##raisa im#roves em#o&ees
#er!romance eve
#o some e$te!t
18%
Not at all
8%
#o a %reat e$te!t
74%
#o some e$te!t
#o a %reat e$te!t
Not at all
*a.e ;@ of :;
Analysis and Interpretation:
#he .raph sho2s D<I employees a.ree that up to a .reat e4tent, ABI say that to some
e4tent and BI of the employees belie6e performan/e appraisal not at all impro6es
performan/e appraisal1
urrently the /ompany5s e4istin. appraisal system is on annual basis1 #his may be
re6ie2ed on a quarterly basis, 2hi/h 2ill help in assessin. the stren.ths and 2ea7nesses
of e4e/uti6es and role modifi/ations /an be su..ested a//ordin.ly1
K:0 Are you /apable of a/hie6in. .oals set for youR
a) onsistently
b) %//asionally
/) Ne6er
0%
10%
20%
30%
40%
50%
60%
70%
80%
0%
100%
Co!siste!tly &''assio!ally Ne(er
O#inion o! em#o&ees
Gra#h1. Ca#a%iit& o! attainin$ the set $oas
Co!siste!tly
&''assio!ally
Ne(er
*a.e ;A of :;
Analysis and Interpretation:
#he .raph sho2s A@@I of the employees are /onsistently /apable of attainin. their set
.oals1
#he tar.et a/hie6ed by the employees may be 6is"S"6is the tar.et a/hie6ed last year1 #he
/ompany should endorse proper dia.nosti/ mappin. for role modifi/ationsG trainin. and
de6elopment needs1
KD0 #o 2hat e4tent is the 3abur India (imited ma7in. pro.ress to2ards its mission
and .oalsR
a) #o a .reat e4tent
b) #o some e4tent
/) No opinion
Gra#h2. Da%ur 3n"ia Limite" ma*in$ #ro$ress
to(ar"s its mission an" $oas
#o some e$te!t
18%
#o a %reat e$te!t
82%
No opi!io!
0% 0%
#o some e$te!t
#o a %reat e$te!t
No opi!io!
*a.e ;9 of :;
Analysis and Interpretation:
In this .raph B9I of the employees say that 3abur India (imited is ma7in. pro.ress
to2ards its mission and .oals to a .reat e4tent and ABI employees say that only to some
e4tent /ompany is ma7in. pro.ress to2ards mission and .oals1
&or the further pro.ress of /ompany5s mission and .oals or.ani=ational plannin. and
de6elopment department should be in6ol6ed for quarterly analysis of the feedba/7
re/ei6ed1
KB0 3o you .et merit raise 2hen the performan/e e6aluation indi/ates that you are
meetin. the set standard on the 8obR
a) #o a .reat e4tent
b) #o some e4tent
/) Not at all
Gra#h4. Merit raise (hen the em#o&ees meet the
stan"ar"
#o a %reat
e$te!t
70%
#o some e$te!t
20%
Not at all
10%
#o a %reat e$te!t
#o some e$te!t
Not at all
Analysis and Interpretation:
*a.e ;E of :;
D@I of the employees say up to a .reat e4tent they .et merit raise, 9@I employees say
that up to some e4tent they .et merit raise and minority of A@I employees a.ree they do
not .et any merit raise1
Apart from the merits a2arded based on the performan/e indi/ators, HR should introdu/e
system for proper re/o.nition re2ards to su/h employees1
KC0 3o your /o"2or7ers and superiors help you to /ope up 2ith your poor
performan/eR
a) #o a .reat e4tent
b) #o some e4tent
/) Not at all
Gra#h 5. Su##ort o! co'(or*ers an" su#eriors
Not at all
0%
#o some e$te!t
47%
#o a %reat e$te!t
53%
#o some e$te!t
#o a %reat e$te!t
Not at all
Analysis and Interpretation:
*a.e ;< of :;
#he .raph sho2s ;EI of the employees say up to .reat e4tent their /o"2or7ers and
superiors help them to /ope up 2ith their poor performan/e and <DI say to some e4tent1
3abur India (imited /an also /on/entrate on desi.nin. and implementin. proper in"
house /ounselin. pro.ram throu.h .roup dis/ussionsG personal intera/tion1
KA@0 In your opinion to 2hat e4tent are the superiors responsible for the pro.ress of
3abur India (imitedR
a) #o a .reat e4tent
b) #o some e4tent
/) Not at all
Gra#h+6. Su#eriors res#onsi%e !or the #ro$ress o! Da%ur
3n"ia Limite"
#o some e$te!t
28%
#o a %reat e$te!t
37%
Not at all
35%
#o some e$te!t
#o a %reat e$te!t
Not at all
Analysis and Interpretation:
#he .raph sho2s EDI of the employees belie6e to a .reat e4tent superiors are
responsible for the pro.ress, 9BI are responsible to some e4tent and E;I say the
superiors are not at all responsible for the pro.ress of the /ompany1
*a.e ;; of :;
&or the pro.ress of the /ompany the performan/e appraisal of the top"le6el mana.ement
are also to be /arried on a quarterly basis1 ompeten/y s7ills are to be assessed and
effe/ti6e role modifi/ation areas are to be su..ested1
*a.e ;: of :;
10.1 QUESTIONNAIRE ON PERFORMANCE APPRAISAL
Name:
Age:
Gender:
Qualification:
Experience:
Department:
QUESTIONAIRE
Q.1) Do you think that performance appraisal is essential for the employees of the
company?
a) fully
b) partially
c) not at all.

Q.2) Does your supervisor give you effective feedback on a regular basis?
a) yes
b) depend on employees
c) not at all.

Q.3) Do you think appraisal system provides an opportunity for self review?
a) fully
b) partially
c) not at all.
*a.e ;D of :;

Q.4) The appraisal requires an opportunity for both appraiser and appraise to
review Expectation and improvement respectively. Do you think so?
a) Yes
b) to a great extent
c) to some extent



Q.5) Do you think that performance appraisal is the tool that improve employees
performance level?
a) to a great extent
b) some extent
c) Not at all
Q.6) Does Dabur India Limited ever conducted the Periodic Orientations
programs ?
a) Yes
b) No
c) Dont Know



Q.7) Periodic Orientation programs are helpful to explain the objectives and other
details of appraisal system?
*a.e ;B of :;
a) to a great extent
b) some extent
c) Not at all
Q.8) Performance review discussions are conducted with a view to
maintain quality of work and care for the employee. Do you think so?
a) Yes
b) to a great extent
c) to some extent
Q.9) To what extent is the Dabur India Limited making progress towards
its mission and goal towards employee commitment towards work?
a) to a great extent
b) some extent
c) Not it all
Q.10) Do your co-workers and superiors help you to cope up with your
weak performance?
a) to a great extent
*a.e ;C of :;
b) some extent
c) Not it all
Q.11) Do you think superiors supports the subordinates to improve their
performance in Dabur India Limited?
a) To a great extent
b) To some extent
c) Not at all
Q.12) Do you think that just giving a letter of appreciation is a right way to
appreciate the performance of employees?
a) Yes
b) No
c) The opportunity should be given to be part of the team.
d) The opportunity should be given to work closely with
managers and management.
Q.13) Do you think that performance appraisal is a good technique to develop
positive Relations and reduce grievances?
a) to a great extent
b) to some extent.
c) Not at all.
Q.14) Do you think that appraisal should be quarterly/ yearly or on the completion
of the Target?
*a.e :@ of :;
a)Yes
b) No
c) Cant say
Q.15) Are you capable of achieving goals set for you?
a) Consistently
b) Occasionally
c) Never


1
11. SUMMARY OF FINDING
*resently, 3abur India (imited is follo2in. annual appraisal system for
employees at the e4e/uti6e and the abo6e le6el only1 #he tar.et may be re6ie2ed on a
quarterly basis1
#ime is a /ru/ial fa/tor1 ompany /an dele.ate the responsibility to employees by
desi.nin. and implementin. performan/e re6ie2 system on a quarterly basis1
#he self"appraisal system is 2idely adopted by other &M! /ompanies, 2hi/h is
helpful in identifyin. need for in"house .roup dis/ussionsG /ounselin. methods1
*a.e :A of :;
Superiors should .i6e feedba/7 to employees periodi/ally1 #hey /an also pro6ide
proper dia.nosti/ tipsG /ounselin. methods at required le6el1
3abur has an e4istin. system on annual basis1 #hey /an re6ie2 on quarterly basis1
3abur India (imited /an endorse proper dia.nosti/ mappin. for role
modifi/ationsG trainin. and de6elopment needs1
ompany /an also in6ol6e or.ani=ational plannin. and de6elopment department
to a/hie6e its mission and .oals1
&or the merit raise, HR should introdu/e system for proper re/o.nition re2ards to
su/h employees1
ompany should mainly /on/entrate on in"house /ounselin. pro.ram throu.h
.roup dis/ussionsG personal intera/tion for the better performan/e of employees1
ompeten/y s7ills should be assessed and effe/ti6e role modifi/ation areas /an be
su..ested for the better pro.ress of the /ompany1
*a.e :9 of :;
12. RECOMMENDATION
In order to ha6e a better liaison 2ithin the /o"2or7ers and their superiors the
/ompany should ha6e a 2ell"planned /ommuni/ation system and employees5 6ie2s
should be ta7en into /onsideration1
+hile 2or7in. under pressure the employees performan/e is affe/ted so it
be/omes ne/essary that the mana.ement should try to analy=e the stren.ths and
2ea7nesses of the employees1
#eam2or7 should be assi.ned to employees, 2hi/h 2ill be helpful in establishin.
leadership qualities and also be/omin. a2are of other5s problems1
$mployees should be .i6en proper trainin. and de6elopment pro.rams to learn
ne2 /on/epts and te/hnolo.ies as to e4pand their /apabilities, 7no2led.e, s7ills et/1
*a.e :E of :;
13. CONCLUSION
In the ne2 millennium 2hen the /orporate 2orld is desi.nin. ne2er te/hniques for
de6elopin. employees and retainin. them, 3abur India (imited is no 2ay behind and the
or.ani=ational stru/ture is su/h that people 2or7s hand in hand to ali.n the
or.ani=ational .oals 2ith the indi6iduals5 .oals1
$6aluation of employees5 performan/e is helpful as to stren.then the employees5
produ/ti6ity, their promotion, transfer, trainin. and de6elopment needs et/1 #he
or.ani=ation has implemented the e6aluation pro/ess not only to e6aluate the
performan/e of employees but also for their in/rement and promotion1 #he /ompany
follo2s a transparent performan/e appraisal system 2ith no personal bias be/ause it is
2holly based on indi6iduals5 /ontribution to2ards the or.ani=ation1 But there are some
loopholes in the system that should be analy=ed and /orre/ti6e measures should be ta7en1
#o sum it up, this pro8e/t has pro6ided me 2ith opportunities to learn different areas of
the HR fun/tion and has .i6en me steppin."stones to /limb up to rea/h the summit of HR
at the end of my /areer1

*a.e :< of :;
14. BIBLIOGRAPHY


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