SUMMER TRAINING PROJECT REPORT

ON
“PERFORMANCE APPRAISAL”
AT

(CADBURY INDIA LTD.)

SUBMITTED TO
JIWAJI UNIVERSITY GWALIOR
For the Partial fulfillment of Award of
Master of Business Administration
(2017 - 2019)

INSTITIUTE OF PROFESSIONAL STUDIES, GWALIOR

SUBMITTED TO SUBMITTED BY
DR. VINOD BHATNAGAR AKHAND PRATAP BHADORIYA
MBA 3rd SEM

1
 DECLARATION

I AKHAND PRATAP BHADORIYA Student of MBA (HRM) From Maharaja Institute of

Management & Technology , Gwalior here by declare that the project titled “Performance
Appraisal” at Cadbury India Limited, Malanpur.

This information is purely of academic interest and any resemblance to earlier project is purely
coincident.

Date: Akhand pratap bhadoriya

Place: Gwalior MBA 3rd SEM

IPS GROUP OF COLLEGES

Gwalior

2
 PREFACE

It is said that without theory, practice is blind and without practice theory is meaningless.
Hence practical training has been made integral part of the management education in India. It
exposes the potential of the manager of the future to the actual tune of working environment
present is dynamic organization. Human resource management is that part of management
concerned with people at work and with their relationship within the organization. Training is
the process of increasing the knowledge and skill for doing a particular job. It is an organized
procedure by which people learn knowledge and skill for a definite purpose. The purpose of
training is basically to bridge gap between job requirement and present competence of an
employee.

AKHAND PRATAP BHADORIYA

3
 ACKNOWLEDGEMENT

A successful research could not be done without any inspiration, guidance and help from different
person in the society of modern corporate world.

The project that I under took bears the imprint of may people, so I take this opportunity to express
my sense of gratitude towards them for helping me to complete the project.

I am highly thankful to Miss Anuradha (Executive-HR) and all the staff members for providing
me the information about the project.

Finally, on the behalf of my institute, I express my sincere thanks to Ms. Anuradha (Executive-
HR) and Mr. Jugvir Singh Rathore (Office-HR) and Miss Ritu Saxena (Officer-HR) all staff of
Cadbury India Ltd. Malanpur and My co-trainees, who have inspired me and helped me
throughout my project.

Akhand Pratap Bhadoriya

MBA 3rd sem

IPS GROUP OF COLLEGES

Gwalior

4
 CONTENTS
1. CHAPTER 1
 Company overview. 8

 A few facts and figures. 9

2. CHAPTER 2
 Core purpose. 10

 Our value. 10

3. CHAPTER 3
 Corporate social responsibility 12

 Commitment to Environment 12

 Growing community value 14

4. CHAPTER 4
 Our team. 19

 Registered office. 22

5. CHAPTER 5
 Awards. 24

5
6. CHAPTER 6
 Cadbury culture. 28

 Welfares. 31

7. CHAPTER 7
 Cadbury Malanpur 32

 Human Resource Department 34

 Focus on HRD 34

 Employee Welfare 35

 Discipline Management 36

 HR Development 38

8. CHAPTER 8
 Performance Appraisal (PA)

 Definition & Concept 39

 Objective of PA 39

 Meaning of PA 40

 Process of PA 42

 Challenges of PA 43

 Purpose of PA 44

 PA as Career Development 46

6
  Approaches to PA 48

 Traditional Approach of PA 48

 Modern Approach of PA 50

 Pre- requisites for effective & successful PA 56

 PA Process- Key to change Organisational Culture 56

9. CHAPTER 9
 PA Process at Cadbury 57

 KRA (Key Result Area) 57

10. CHAPTER 10
 Conclusion. 60

 BIBLIOGRAPHY 61

7
 COMPANY OVERVIEW

Cadbury is currently the world’s biggest confectionery company with a number one or number two
position in 20 of the 50 largest confectionery markets across the globe.

Cadbury create chocolate, gum and candy brands people love – brands like Cadbury Trident and
Halls.

Its heritage starts back in 1824 when John Cadbury opened a shop in Birmingham selling cocoa
and chocolate. Since then Cadbury have expanded its business throughout the world by
programmed of organic and acquisitions led growth. On 7 may 2008, the separations of its
confectionery and America beverages business was completed creating Cadbury plc with a vision
to be the world’s BIGGEST and BEST confectionery company.

Cadbury began its operations in 1948 by importing chocolates and then re-packing them before
distributions in the Indian market. After 59 years of existence, it today has five company-owned
manufacturing facilities at Thane, Induri (Pune) and malanpur (Gwalior), Bangalore and baddi
(Himachal Pradesh) and 4 Sales offices (New Delhi, Mumbai, Kolkota, and Chennai). This
corporate office is in Mumbai.

Our core purpose “working together to create brands people love” captures the spirit of what we
are trying to achieve as a business, we collaborate and work as teams to convert products into
brands.

Simple put, we spread happiness!

Currently Cadbury India operates in three sectors viz chocolate confectionery, milk food drinks
and in candy category.

8
In the chocolate confectionery business, Cadbury has maintained its undisputed leadership over the
years. Some of the key brands are Cadbury dairy milk, 5 star, pear, éclairs and celebrations.
Cadbury enjoys a value market share of over 70%- the highest Cadbury brand share in the world!
Our flagship brands Cadbury dairy milk is considered the “gold standard” for chocolates in India.
The pure taste of CDM defines the chocolate taste for the Indian consumer.

In the milk food drinks segment our main product is Bournvita- the leading malted food drink
(MFD) in the country. Similarly in the medicated candy category Halls is the undisputed leader.
We recently enter in the gums category with the launch of our worldwide dominant bubble gum
brand Bubbaloo. Bubbaloo is sold in 25 countries worldwide. The Cadbury India brand strategy
has received consistent support through simple but imaginative extensions to product categories
and distribution. A good example of this is the development of bytes. Crispy wafer filled with coca
cream in the form of a bagger snacks, bytes is positioned as “the new concept of sweet snacking.”
It deliver the taste of chocolate in the form of light snack, and thus heralds the entry of Cadbury
India into the growing bagged snack market, which has been dominated until now by salted
bagged snack brands. Byte was first launched in south India in 2003.

Since 1965 Cadbury has also pioneered the development of cocoa cultivation in India. For over
two decades, we have worked with the kerala agriculture university to undertake cocoa research
and released clones, hybrids that improve the cocoa yield. Our cocoa team visit farmers and
advices them on the cultivation aspects from planting to harvesting. We also conduct farmer
meeting & seminars to educate them on cocoa cultivation aspects. Our efforts have increased
cocoa productivity and touched the lives of thousands of farmers. Hardly surprising then that the
cocoa tree is called the Cadbury tree!

Today, we are poised in our leap towards quantum growth. We are a part of the Cadbury
Schweppes group, world’s no.1 confectionery company. Yes, like we said we will continue to
spread happiness.

A few facts and figures:

 Cadbury operate in over 200 countries.

 John Cadbury opened for business in 1824 – making us nearly 200 years
young

 Cadbury work with around 35000 direct and indirect suppliers.

 Cadbury employ around 60000 people.

 Every day millions of people around the world enjoy its brand.

9
 Core Purpose

At Cadbury PLC, our core purpose is "Working together to

create brands people love".

The core purpose captures the spirit of what we are trying to

achieve as a business.

We collaborate and work as teams to convert products into

brands.

Our Value
We are performance driven, values led. Throughout changing times, our constant values have
inspired us to be pioneers in business and in corporate responsibility. They help ensure we are
proud of our company and are critical to our core purpose of creating brands people love.

Our values are:

Performance
We are passionate about winning. We compete in a tough but fair way. We are ambitious,
hardworking and make the most of our abilities. We are prepared to take risks and act with
speed.

10
Quality
We put quality and safety at the heart of all of our activities - our products, our people, our
partnerships and our performance.

Respect
We genuinely care for our business and our colleagues. We listen, understand and respond.
We are open, friendly and welcoming. We embrace new ideas and diverse customs and
cultures.

Integrity
We always strive to do the right thing. Honesty, openness and being straightforward
characterize the way we do business. We have clear principles and do what we say we will
do.

Responsibility
We take accountability for our social, economic and environmental impact. In this way we aim to
make our business, our partners and our communities better for the future.

Our Business Principles are our code of conduct and also take account of global and local cultural and
legal standards. They confirm our commitment to the highest standards of ethics and business
conduct. Core purpose and vision section: Core purpose: Our core purpose is creating brands people
love. The core purpose captures the spirit of what we are trying to achieve as a business.

We collaborate and work as teams to convert products into brands.

11
Corporate Social Responsibility

12
Corporate Social Responsibility (CSR) is at the heart of our success
At Cadbury India we have always believed that good values and good business go hand in hand.
It's part of our heritage and the way we do things today. CSR is about growing our business
responsibly.

Cadbury India has a tradition of caring for the environment and enriching the quality of lives of
the communities we live and work in, through a variety of result-oriented programs.

Our commitment to the Environment

Growing community value

Our commitment to the Environment

We are committed to responsible environmental, health and safety management. We aim to look
after the health and safety of our people and minimize the environmental impact of our business
around the world.

Migratory birds stop over at our Bangalore factory!

Water is a precious resource. As part of Cadbury India's efforts to

continuously increase water conservation our Bangalore factory has
constructed a check dam to store the rainwater. This dam not only
acts as a major ground water replenishing source for the bore wells
in the factories and surrounding community, but is also a stopover
location for some of the migratory birds!
Dam at our
Bangalore factory

Pioneering cocoa cultivation in India

Since 1974 Cadbury has pioneered the development of cocoa

13
cultivation in India. For over two decades, we have worked with the Kerala Agriculture
University to undertake cocoa research and released hybrids that improve the cocoa yield.

Our efforts have increased cocoa productivity and touched the lives of thousands of farmers.
Hardly surprising then that the Cocoa tree is called the Cadbury tree!

Bangalore factory: the sun shines at night…

Acknowledged as 'Preserver of Environment'
Sunshine now lights the pathways on streets outside our Bangalore factory at
night.

Rising energy costs, and 300 sunny days a year, inspired the factory to install
28 solar powered streetlights. It will reduce annual carbon dioxide (a major
greenhouse gas) emissions by ten tones, playing a part in the effort to reduce
global warming.

In appreciation of our commitment to implement environment friendly

initiatives, the Karnataka State Pollution Control Board has honored the Bangalore factory with
the Parisara Premi (Preserver of the Environment) Award for the second year in a row.

Growing Community Value

Everything needs a little nurturing to help it to grow. Our communities are no different. Cadbury
India is committed to growing community value around the world. For our employees, this is
about making a difference in the community.

Non-formal school set up by Cadbury for children of migrant

workers in Baddi

14
Thanks to the efforts of the Baddi factory team over 50 children of migrant workers living in and
around our Baddi factory will now have daily access to non-formal education. Cadbury has set
up a non-formal school as part of our commitment to create prosperous, inclusive and healthy
communities.

This is the first phase of Project SAHYOG an 18 month project which commenced in January
this year in partnership with an NGO RUCHI. The project reaches out to over 400 poor &
marginalized families in Sandholi village near our Baddi factory and apart from education, the
other key interventions will be on village health, sanitation, education & water harvesting.

The project was recently inaugurated by Mr. B R Verma, Labor Commissioner cum Chief
Inspectorate of Factories & Directorate of Employment; Himachal Pradesh in the presence of Mr.
Sudhir Sharma, Dy Director Industries and senior officials of BBN Industries Association. The
Chief Guest appreciated Cadbury's effort to make a difference in the community and encouraged
the villagers to come forward and support the initiative.

In the coming months the project through a group of 12 SAHYOG CHAMPIONS (colleagues
from the Baddi factory) will undergo an orientation program with the NGO RUCHI and will
subsequently mobilize Baddi colleagues to volunteer their time in the community on aspects of
village health, sanitation and education.

Cadbury in tie-up with Bharti-Walmart to support education needs

of underprivileged children

15
In an effort to make a small difference to the communities in which we operate we recently tied-
up with Bharti-Wal-Mart to support the infrastructure of a government school for
underprivileged children in Gurgaon.

As part this initiative, we have provided safe and clean facilities to create an environment
conducive to learning for the 80 odd children enrolled in the school. This included re-painting
the building, cleaning and developing the gardens in the school premises, planting trees and
installing swing-sets in the play area. A team of 16 sales colleagues spent a day in the school and
truly made a difference!

Sarvam Program
With operations around the Pacific Ocean, we responded
immediately to the Asian Tsunami in late 2004. After initial
emergency relief donation we established a Tsunami Regeneration
Program for essential long- term community rebuilding.

Working in partnership with a local charity, the Sri Aurobindo

Society, on a five-year project, we are contributing to the
redevelopment of two villages in the costal region of Pondicherry.
The project addresses education, health, economic development, vocational training, organic
farming, water harvesting and attitude changes including the empowerment of women.
Learning's from the project will also create significant rural regeneration throughout the rest of
the Tsunami - hit regions and beyond.

Priorities for the first year include: providing simple housing and toilets and repairing and
developing eight pre-school centers and three schools. We will also recruit teaching staff, health
workers, counselors as well as an administrator and set up a training and basic IT centre.

Cadbury spreads smiles at Vatsalya

16
Cadbury India has partnered with Vatsalya Foundation, an NGO working with underprivileged
street children in Mumbai. Vatsalya's motto is to give the child a supportive environment to live
and study in and gain skills so that they become contributing members of society.

We support the educational needs of 100 street children by proving them with their school fees
and also other requirements like books, stationery uniforms etc. We will also sponsor educational
camps for these children.

The other aspect of the partnership is the "Be My Friend" Volunteering programme. Under this
initiative colleagues are encouraged to spend time with these children, encourage them to study
or just simply be their Friend.

Cadbury India supports the building of a Neo-natal ward

In an effort to provide a health start to the newborn infants of the
local community in the Thane district, we have supported the
construction of a neo-natal hospital ward at Thane’s municipal
hospital. The ward gives specialized and intensive care for
premature and critically ill newborns.

This intervention has helped the poor and needy who are in urgent
need of specialized healthcare.

17
Gurikha Project

Smiling girls of Gurikha school (built by Cadbury India)

In 1999, we launched the Community Initiative Programme under the banner: Nutrition,
Education, Security and Love near our Malanpur factory (MP).

Gurikha Project has enlightened her to a Village Development Committee structured by

new life of hope and some prosperity. Cadbury in session.

As a result, we focused on healthcare and education in the nearby village of Gurikha. A nursery
school was started and key improvements were made in the primary school.

18
The consultation and a bit of lateral thinking led to some real social improvements: fresh
drinking water from a new village pump, a doctor's clinic, vet services for milk producing
animals and fruit trees for each household to plant during the monsoons. They also helped
increase attendance in school.

Smart girls from Cadbury aided coaching Community Lady Worker counseling a self help
class group on income generation.

In 2005, the education program supported the Indian Government's Year of Women
Empowerment. Special focus was given to the rights and contribution of girls and to the
counteraction of female infanticide through a variety of initiatives.

Play school for children below 5 years of Women Empowerment activities will help rescue
age established by Cadbury. her burden

19
 Our Team

Chairman

C Y Pal
Chairman - Non Executive

Managing Director

20
Anand Kripalu
Managing Director

Non-Executive Directors

Harsh Mariwala
Radhakrishnan B. Menon
Suresh Talwar

Executive Directors

Atul Bhatia Rajesh Garg

Executive Director - Executive Director -
Science & Technology Finance & Commercial

Sanjay Purohit
Jaiboy Phillips
Executive Director -
Executive Director - Supply Chain
Marketing

Sunil Sethi V Chandramouli

Executive Director - Executive Director -

21
Sales & Customer Development HR & Strategy

Senior Management

Ashish Pisharodi Rajesh Ramanathan

Vice President - People &
Vice President - Modern Trade
Talent

Shivanand Sanadi Dr. Shantanu Samant

Vice President - Legal Affairs Vice President -
Science & Technology

Vivek Sarbhai Dharmesh Joshi

Vice President -
Vice President - Logistics &
Manufacturing
Customer Operations
Development

Sherezad Irani Sanjay Kurup

VP - Manufacturing
VP - Procurement
(Baddi)

Monaz Noble
Company Secretary

Corporate Affairs

R. D’Souza
Associate Vice President -
Corporate Affairs
Tel: +91 022 40073100

22
Registered Office
Cadbury India Ltd.
Cadbury House
19, B Desai Road
Mumbai 400 026
Maharashtra
India
Tel: +91 22 4007 3100
Fax: +91 22 2352 1845

23
Regional Office
Mumbai Chennai
Cadbury India Ltd. Cadbury India Ltd.
Reyn. Basera Annexe 146- Second Floor
Near Cooper Hospital Royapeth High Road
Vile Parle West Mylapore
Mumbai 400 056 Chennai 600004
Maharashtra Tamil Nadu
India India

Delhi Kolkata
Cadbury India Ltd Cadbury India Ltd
303 - 305 9-A Esplanade Row
3rd Floor, Vipul Agora Kolkota - 700 069
M.G. Road West Bengal
Gurgaon - 122 002 India
India

Our Factories

Thane Pune
Cadbury India Ltd Cadbury India Ltd

24
1 Pokhran Road Induri Factory
Eastern Express Highway Talegaon Dabhade
Thane 400 606 Pune 410 507
Maharashtra Maharashtra
India India

Himachal Pradesh Gwalior

Cadbury India Ltd Cadbury India Ltd
Works: Hadbast No 199 Plot No 25
Village Sandholi Baddi Malanpur
Tehsil- Nalagarh Industrial Area
Dist. Solan 173205 Village Gurikha
Himachal Pradesh Tehsil Gohad
India Gwalior - 477 116
Madhya Pradesh
India

Bangalore Cochin
Cadbury India Ltd Cadbury India Ltd
Jodi Hanumanapalya Cocoa Operations
Mahadevapura Post Near Thrikkakara
Mangalore Road Pipe Line Junction
Nelamangala 562 123 Thrikkakara P.O
Bangalore Cochin 682021
Karnataka Kerala
India India

Awards

Asian Marketing Effectiveness Awards 08

Asian Marketing Effectiveness Awards 2008 for Bournvita

Folk/Fusion campaign – GOLD award for the “Best Insights and
Strategic Thinking” and SILVER award for the ‘Most Effective
Use of Advertising’.

25
The Asian Marketing Effectiveness Awards are the region’s most prestigious awards that
celebrate resourceful Asian marketing. They are designed to set the standard for effective
marketing within the region, and aim to uncover the campaigns that show results through
innovative spirit and combining creativity with effectiveness to build world class brands.

Cadbury India ranked 7th Great Place to Work in India

No. 1 FMCG Company

Cadbury India has been ranked as the 7th Great Place to Work and the No.
1 FMCG company in India in 2008, by the Great Place to Work Institute.

This study, in its fifth year in India , has a presence in 30 countries and is the oldest, most
comprehensive and respected workplace study worldwide. Over two hundred companies
throughout India participated in the survey, which measured the degree of satisfaction of
employees with their place of work and picked out the best working environments. This is
the fourth time we have featured amongst the Great Places to Work in India . We were
ranked 10th in 2003, and were among the top 25 in 2004 and 2005.

Great Place to Work 2007

‘Cadbury India’ has been awarded the “Bronze Award for Excellence in
People Management” in the ‘Great Place to Work 2007’ survey
conducted by Grow Talent Company Limited and Businessworld. The
award recognizes Cadbury India as a national leader in the area of
Human Resource Management.
Business World along with Grow Talent has been carrying out the ‘Great Place to Work’

26
survey for the past 4 years. This award is based on the ranks received in top 25 list of the
Great Place to Work India studies conducted in the last four years.

ABBY Award wins for India.

The prestigious ABBY awards, held in march, recognize creative

excellence in the Indian advertising industry. The ultra perk campaign
won four silver awards in total and Cadbury daily milk campaign, miss
palampur also won the same, this year Cadbury also sponsored the new
“Young ABBY” award.

Bourn vita won the Emmvie Gold for the

Best Media Innovation – TV.

Cadbury won the Emmvie Gold for the Best Media Innovation – TV, for brand Bournvita,
for the entry Physical symbol of Confidence.

Cadbury Dairy Milk & Bournvita crowned as Consumer Superbrands

27
Cadbury Dairy Milk & Bournvita have done it again. For the
second time running, Cadbury Dairy Milk & Bournvita have been declared a `Consumer
Super brand’ for 2006-7 by Super brands India.

Cadbury wins the Effie’s 2006

Pappu does it again!

At the recent Effie 2006 awards organized by The Advertising Club of
Mumbai, our 'Pappu Pass Ho Gaya' advertising campaign bagged two
more awards - Gold in the Consumer Products category and Silver in the
Integrated advertising campaign category.

Cadbury India roars at Cannes

Cadbury India received a bronze award at the Cannes Lions

International Advertising Festival for partnering with a mobile phone
operator in 2005 to provide exam results via SMS to school children.

Cadbury India is a Great Place to Work

The 'Great Place to Work' Institute study listed Cadbury India as a Great Place to work in
2005 for the third time in a row. Incidentally, Cadbury was in the Top 25 in 2003, 2004 and
2005 too.

28
Reader's Digest Award recognizes Bournvita

Bournvita won the 'Reader's Digest Trusted Brands' Gold Award for the
vitamin health supplement category in Indian in 2006. The merit was
based on 7000 responses from questionnaires and telephone interviews
across Asia.

Suraksha Puraskar Award – 2005

Cadbury India’s Bangalore factory has received the “Suraksha Puraskar”

safety award from the National Safety Council – Karnataka chapter.

National Safety Council (NSC) was set up by the Ministry of Labors,

Government of India in 1966, as an autonomous body to generate,
develop and sustain a voluntary movement on Environment, Health and
Safety.

Super brands

Cadbury Dairy Milk and Bournvita have achieved the distinction of a 'Super brand' as
awarded by the Super brands India Council

29
 CADBURY CULTURE
Be part of our world

We believe that work and fun can co-exist beautifully. Therefore at Cadbury India, it's all
about work hard, play harder!. We bring moments of delight to our consumers everyday
and every time. Therefore, we strongly believe that those people who create these products
should also have fun while doing so.

Our people:

We believe that the way to create brands people love is through our people. It's their
passion, dedication and drive that makes all the difference to our success in the increasingly
competitive world of fast-moving consumer goods.

Our people are highly committed to their work and we look for the same level of
commitment in our people. People who do well at Cadbury PLC tend to share the qualities
and spirit of good entrepreneurs: lots of drive to make things happen, ability to influence
people, a habit of making sound decisions, a knack for turning ideas into action.

30
They are naturals at spotting and making the most of opportunities. You will typically start
your career with us in a function in one of our many businesses. You will then be able to
choose whether to develop your career as a generalist or specialist. Whichever path you
choose, you will be encouraged to gain experience of different businesses, brands and
people.

Join our world

Our world is one in which we work together to create brands people love. This common
purpose frames everything we do. It reflects over 200 years of making unique brands that
give pleasure to millions around the world every day.

We have a clearly defined set of values and a culture that reflects shared accountability for
our business goals, our aggressiveness in pursuing these goals and our adaptability in
finding new and better products and ways to work.

Make a difference

At Cadbury, we believe in change and aspire to continually improve our performance. We

are increasing innovation, improving processes and sharing best practice across businesses.

We need people who want to make a difference, who use their initiative and leave a
positive mark on our business. By working better together, we can find ways of making a
difference for yourself, your team and the business you are in.

Grow with us

Our commitment to training and development is a core value. As we are growing, so our
people grow with us, developing new capabilities to take our business forward.

Helping people reach their potential means that they in turn help us succeed as a business.
We offer support not only in the way of training for career skills and capabilities but in the
opportunity to study.

Our strong belief in community involvement encourages our people to take part in local
projects as a way of developing valuable skills. We offer a continual programme of
encouragement and development to advance your career. Join us and grasp the
opportunities we offer.

31
Gain from our success

We place great importance on supporting and rewarding the continuously improving

performance of our people. Rewards are not only financial, they also come through training
and career opportunities, and our flexible packages support you through life changes.

Our reward package is competitive with your chosen career and the local market place. It
goes beyond good basic pay, offering great benefits, and where we can, choices about how
you are rewarded. We believe in rewarding for performance, so the more you contribute the
more you gain. Our incentive plans pay out on the basis of business and personal
performance and our annual pay reviews take personal performance into account. It is a
"merit-ocracy".

Be yourself

We aspire to a workforce that reflects the local communities within which we operate and a
work environment that ensures equal opportunities for all.

Having a variety of people with different approaches and ideas makes business sense and
for a more vibrant and fun work environment. Within our common purpose we encourage
people to let their individualisms

CADBURY MALANPUR

32
1989, the company started manufacturing operations from its third & newest factory near
Gwalior, Using the most In modern state of art technology, the unit manufactures Eclairs, Gems,
Ulta Perk, Five star & Cadbury shots.

The Malanpur unit is cost based unit, only to manufacture the product & send them to sales &
marketing department in Mumbai.

Location plot no. 25, Malanpur Industrial Area

Malanpur, Dist.- Bhind

(25 Kms away from Gwalior, on Gwalior

Bhind highway)

Telephone 283803-283807

07539-404444

For effective & speedy communication, Malanpur is connected with c.c. Mail Network with oter
Cadbury Plant & H.o

Parent Company Cadbury Schwepps International (U.K.)

Total land 24 Acres

Total Turnover 330 Crores

Manufacturing Strategy Tracks

33
Q Quality C Cost D delivery
S Safety M Morale

Malanpur Values

Organizational Structure
Factory
Manager

Mfg manr. Mfg mngr. Eng. A.E. Mngr Qlt Mngr HR Mngr Logistic

Officers/Executive/Trainees: 43/6

Operators: 297

Employees Profile
Workforce :

 Factory has a young workforce 35 yrs. (average age)

 Mainly locals
 ITI passed 100%

Executives & Officers:

34
  15% have grown from line
 Professionally Qualified
 33% Post Graduates
 67% Graduates (includes B.E. & B. tech’s)
Drawn from the different parts of the country

Human Resource Department

 Mr. Akhilesh khare (HR Manager)
 Mr. Amit Bhargava
 Ms. Gunjan Sharma
 Mr. Heera singh
 Mr. Chetan chauhan

Focus Areas Of HR Department

 Recruitment and Selection
 Effective Employee Relation
 Enhancing skills levels through E & T pillar
 Operator trainers

Performance orientation

 Celebration
 Employee Welfare
 Industrial Relation, Dispute handling & Discipline
 Administrative Function

Celebrations
 Celebrating family day on17th September
 Independence day or Republic day celebration
 Open house
 Family visit

35
  Organizing Parties
 Cadbury Day 18th july
 Safety day
 Sports and various events
 Organising Campaigns:
-BRC Campaign
-ENCON (Energy Conservation) Campaign
Employee Welfare
Following are the welfare facilities provided to workers & staff in CIL, malanpur:-

 Canteen Facilities:-
Subsidized canteen facility is now a statutory requirement under Factory Act.1948. In
canteen facility is 100% subsidized. The canteen facility is available both for workers &
officers. It provides breakfast, lunch, tea, dinner, etc.

 Medical Facility:-
All the employee are subjected to go through a medical check up at the time of joining and
annually. Doctor is appointed for the proper medical check up in a year.

 Transportation:-
CIL provided free transportation facility to their employees staying in Gwalior.

 Amenity block:-
-Before entering the production area every employee has to take bath & get dressed in
uniform provided by the company, for this purpose a separate room is provided.

- Employees are expected to maintain god hygiene by followinginstruction given by the

shift executives.

 Drinking water:-

36
 It provides pure and safe drinking water to their employee’s mark drinking water.

 Staff sale:-
The employee can purchase the chocolate of Cadbury up to Rs. 300 per month. He will be
given discount of 20% and the amount will be deducted from his salary.

Discipline Management
It is again a matter of great concern & therefore is taken care off by the HR Team. Disciplinary
action are taken in case of misconduct, regular abseentism etc. It is important for every company
to keep a strict check on discipline matters.

CIL Malanpur believes that “Self Discipline employee is the best Discipline” and it maintains
highly disciplined & efficient work force. To maintain this environment every is required to obey
the general rules regarding.

Discipline includes the following “Rules & Regulations”.

Every employee should-

 Take bath regularly before entering into the plant.

 Be punctual. The timings of the shifts are as follows:
Shift - A: 0600 hrs – 1400 hrs

Shift - B: 1400 hrs – 2200 hrs

Shift - C: 2200 hrs – 0600hrs

 Punch attendance card regularly.

 Use proper safety appliance & follow safety instructions.

 Keep their identity card always with them & must be shown on demand by
appropriate authority.

 Cadbury is a food factory so please avoid bringing Tobacco Pouches, Pan Masala,
Cigarette & matchbox etc. inside the plant.

37
 Human Resource Development

“ CIL Malanpur makes people first and then chocolates”

CIL’s most important resources i.e. Human Resource, provide activities such as SGA ( Small
Group Activities), House Keeping and Leadership Program, Workshop on workers
Development program exposure to other Industries etc.

38
CIL has developed a very effective training system for its employee to cope with
technological & environment changes.

Aii HRD program are based on the following eight “Human Values” for Malanpur.

 Malanpur makes people before chocolate.

 Basic dignity if man – all are equal.

 Dignity of work – all work is equally important to the organization.

 Consideration for all our co-employee is the key to quality, productivity and hygiene

 Collective wisdom of a group is better then any single individual efforts.

 Objectivity in decision-making is the key to success.

 Competence, attention to detail ability to demonstrate.

 Open management – informal communication creates a climate of trust.

PERFORMANCE APPRAISAL

Definition & Concepts

Performance appraisal is the process of obtaining, analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is
measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources,

39
 “performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his present job and his potential for a
better job." Performance appraisal is a systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It
helps to analyze his achievements and evaluate his contribution towards the achievements
of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of

personnel management and reflects the management’s interest in the progress of the
employees.

OBJECTIVES OF Performance appraisal:

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

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

1 To help the management in exercising organizational control.

2

 Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.
 To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
 To provide feedback to the employees regarding their past performance.
 Provide information to assist in the other personal decisions in the organization.
 Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
 To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.
 To reduce the grievances of the employees.

40
 PERFORMANCE APPRAISAL

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

Performance appraisals are widely used in the society. The history of

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

Performance appraisal is necessary to measure the performance of the employees and

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

The latest mantra being followed by organizations across the world being – “get paid
according to what you contribute” – the focus of the organizations is turning to
performance management and specifically to individual performance. Performance
appraisal helps to rate the performance of the employees and evaluate their
contribution towards the organizational goals. If the process of performance appraisals
is formal and properly structured, it helps the employees to clearly understand their
roles and responsibilities and give direction to the individual’s performance. It helps to
align the individual performances with the organizational goals and also review their
performance.

Performance appraisal takes into account the past performance of the employees and
focuses on the improvement of the future performance of the employees. Here at
naukrihub, we attempt to provide an insight into the concept of performance appraisal,
the methods and approaches of performance appraisal, sample performance appraisal
forms and the appraisal softwares available etc. An attempt has been made to study the
current global trends in performance appraisal.

41
 Process of Performance Appraisal

ESTABLISHING PERFORMANCE STANDARDS

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

42
 COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the
standards to all the employees of the organization.

The employees should be informed

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

MEASURING THE ACTUAL PERFORMANCE

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

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

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

DISCUSSING RESULTS

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

DECISION MAKING

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

Challenges Of Performance Appraisal

In order to make a performance appraisal system effective and successful, an

organization comes across various challenges and problems. The main challenges
involved in the performance appraisal process are:

 Determining the evaluation criteria

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

 Create a rating instrument

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

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

 Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing

44
the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the
rater should exercise objectivity and fairness in evaluating and rating the performance of the
employees

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

Purpose Of Performance Appraisal

Performance Appraisal is being practiced in 90% of the organisations worldwide.

Self-appraisal and potential appraisal also form a part of the performance appraisal
processes.

Typically, Performance Appraisal is aimed at:

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

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

 To help the management in exercising organizational control.

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

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

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

performed by the employees.
 To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.

45
  To reduce the grievances of the employees.
 Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.

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

The most significant reasons of using Performance appraisal are:

 Making payroll and compensation decisions – 80%

 Training and development needs – 71%

 Identifying the gaps in desired and actual performance and its cause – 76%
 Deciding future goals and course of action – 42%
 Promotions, demotions and transfers – 49%
 Other purposes – 6% (including job analysis and providing superior support,
assistance and counseling)

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 Performance Appraisals as Career Development

Performance appraisal is a part of career development. The latest mantra being

followed by organizations across the world being – “get paid according to what
you contribute” – the focus of the organizations is turning to performance
management and specifically to individual performance. Performance appraisal
helps to rate the performance of the employees and evaluate their contribution
towards the organizational goals. Performance appraisal leads to the recognition
of the work done by the employees, many a times by the means of rewards and
appreciation etc. It plays the role of the link between the organization and the
employees’ personal career goals.

Potential appraisal, a part of Performance appraisal, helps to identify the hidden

talents and potential of the individuals. Identifying these potential talents can help in
preparing the individuals for higher responsibilities and positions in the future. The
performance appraisal process in itself is developmental in nature.

Performance appraisal is also closely linked to other HR processes like helps to

identify the training and development needs, promotions, demotions, changes in the
compensation etc. A feedback communicated in a positive manner goes a long way to
motivate the employees and helps to identify individual career developmental plans.
Based on the evaluation, employees can develop their career goals, achieve new levels
of competencies and chart their career progression. Performance appraisal encourages
employees to reinforce their strengths and overcome their weaknesses.

Approaches to Performance Development

Performance appraisal - Traditional approach

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

This approach was a past oriented approach which focused only on the past
performance of the employees i.e. during a past specified period of time. This
approach did not consider the developmental aspects of the employee
performance i.e. his training and development needs or career developmental
possibilities. The primary concern of the traditional approach is to judge the
performance of the organization as a whole by the past performances of its
employees

Therefore, this approach is also called as the overall approach. In 1950s the
performance appraisal was recognized as a complete system in itself and the Modern
Approach to performance appraisal was developed.

Performance appraisal - Modern approach

The modern approach to performance development has made the performance appraisal
process more formal and structured. Now, the performance appraisal is taken as a tool
to identify better performing employees from others, employees’ training needs, career
development paths, rewards and bonuses and their promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations. The
results of performance appraisals are used to take various other HR decisions like
promotions, demotions, transfers, training and development, reward outcomes. The
modern approach to performance appraisals includes a feedback process that helps to
strengthen the relationships between superiors and subordinates and improve
communication throughout the organization.

The modern approach to Performance appraisal is a future oriented approach and is

developmental in nature. This recognizes employees as individuals and focuses on their
development.

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 Methods Traditional of Performance Appraisal

Traditional Methods of Performance Appraisal

1. ESSAY APPRAISAL METHOD

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

2. STRAIGHT RANKING METHOD

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

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

4. CRITICAL INCIDENTS METHODS

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

5. FIELD REVIEW
In this method, a senior member of the HR department or a training officer discusses and
interviews the supervisors to evaluate and rate their respective subordinates. A major

49
drawback of this method is that it is a very time consuming method. But this method helps
to reduce the superiors’ personal bias.

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

7. GRAPHIC RATING SCALE

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

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

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 3 Modern-Method

Modern Methods of Performance Appraisal

ASSESSMENT CENTRES -
An assessment centre typically involves the use of methods like social/informal
events, tests and exercises, assignments being given to a group of employees to
assess their competencies to take higher responsibilities in the future. Generally,
employees are given an assignment similar to the job they would be expected to
perform if promoted. The trained evaluators observe and evaluate employees as
they perform the assigned jobs and are evaluated on job related characteristics.

The major competencies that are judged in assessment centres are interpersonal
skills, intellectual capability, planning and organizing capabilities, motivation,
career orientation etc. assessment centres are also an effective way to determine the
training and development needs of the targeted employees.

BEHAVIORALLY ANCHORED RATING SCALES

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines
the graphic rating scale and critical incidents method. It consists of predetermined critical
areas of job performance or sets of behavioral statements describing important job
performance qualities as good or bad (for eg. the qualities like inter-personal relationships,
adaptability and reliability, job knowledge etc). These statements are developed from critical
incidents.

In this method, an employee’s actual job behaviour is judged against the desired behaviour by
recording and comparing the behaviour with BARS. Developing and practicing BARS
requires expert knowledge.

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HUMAN RESOURCE ACCOUNTING METHOD

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

360-Degree-Performance-Appraisal Method

Management By Objectives(MBO) Method

360- Degree-Performance-Appraisal Method

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive
appraisal where the feedback about the employees’ performance comes from all the sources
that come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into
contact with the employee and can provide valuable insights and information or feedback
regarding the “on-the-job” performance of the employee.

52
360 degree appraisal has four integral components:

1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.

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

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

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

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

MANAGEMENT BY OBJECTIVES

The concept of ‘Management by Objectives’ (MBO) was first given by Peter

53
 Drucker in 1954. It can be defined as a process whereby the employees and the
superiors come together to identify common goals, the employees set their goals to
be achieved, the standards to be taken as the criteria for measurement of their
performance and contribution and deciding the course of action to be followed.

The essence of MBO is participative goal setting, choosing course of actions and
decision making. An important part of the MBO is the measurement and the
comparison of the employee’s actual performance with the standards set. Ideally,
when employees themselves have been involved with the goal setting and the
choosing the course of action to
be followed by them, they are more likely to fulfill their responsibilities.

THE MBO PROCESS

54
UNIQUE FEATURES AND ADVANTAGES OF MBO

The principle behind Management by Objectives (MBO) is to create empowered

employees who have clarity of the roles and responsibilities expected from them,
understand their objectives to be achieved and thus help in the achievement of
organizational as well as personal goals.

Some of the important features and advantages of MBO are:

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

Specific
Measurable
Achievable
Realistic,and
Timebound.

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

 The focus is on future rather than on past. Goals and standards are set for the
performance for the future with periodic reviews and feedback.
 Motivation – Involving employees in the whole process of goal setting and
increasing employee empowerment increases employee job satisfaction and
commitment.

 Better communication and Coordination – Frequent reviews and interactions

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

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Pre-requisites for Effective & Successful Performance Appraisal

Pre-requisites for Effective & Successful Performance Appraisal

The essentials of an effective performance system are as follows:

 Documentation – means continuous noting and documenting the performance.

It also helps the evaluators to give a proof and the basis of their ratings.

 Standards / Goals – the standards set should be clear, easy to understand,

achievable, motivating, time bound and measurable.

 Practical and simple format - The appraisal format should be simple, clear, fair
and objective. Long and complicated formats are time consuming, difficult to
understand, and do not elicit much useful information.

 Evaluation technique – An appropriate evaluation technique should be selected; the

appraisal system should be performance based and uniform. The criteria for evaluation
should be based on observable and measurable characteristics of the behavior of the
employee.

 Communication – Communication is an indispensable part of the Performance

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

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

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

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

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Performance Appraisal Process - Key to Change organizational
Culture

Performance Appraisal Process - Key to Change organizational Culture

The performance appraisal process provides an opportunity for introducing

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

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

Performance appraisal: An opportunity for an organisational culture shift

 Performance appraisal process focuses on the goal setting approach throughout

the organisation.

 Performance appraisal helps the clarity and understanding of the roles and
responsibilities of the employees.
 The performance appraisal processes have the potential positive effects on
recruitment
 It increases organisational effectiveness i.e. what to do and how to do through a
formal and structured approach.
 Some evidence of the beneficial effects of team rewards

57
 Therefore, performance appraisal is also an important link in the process of change in
organization culture.

Performance Appraisal Process at Cadbury

Appraisal Need Assessment

Appraisal need is defined as to know the real worth of an employee.this process is consisting of
obtaining,analyising and recording information about the relative worth of an employee.

The main focus of performance appraisal is measuring and improving the actual performance of the
employee and also the future potenyial of the employee.it aims at measuring what an employee does.
Appraisal is the first step in training process. It determine the need of training of employees in an
organization.

At CIL. Performance Appraisal is held two time in a year. The first session is held in January when the
standars are meant through a board meeting and the next session is performaned in the month of july in
which all the standards are revised and examined to know whether the goals that are meant in the first
session has been accomplished and what kind of steps has taken to accomplish it. The appraisal need is
performed through the following methods:

 Key Results Areas (KRA)

The PMP (Performance Management Process) begins with the objective setting process. This
provides employee with tangible goals towards which they can direct their energies to. It
provides managers with a way to maximize the team performance by ensuring that the output
adds value to the business objective.

ORIGIN:

Objectives are evolved from the company’s annual& long-term business plans, starting with
senior management, which then flow through the organization. The needs of the business and the
way these relate to each employee’s job as whole should from the basis of the five or six
objectives that are set for each employee. All objectives must support the governing objective of
CIL.

The Key Objectives have been divided into four sub-parts:

58
► Basics Accountabilities:

The objectives under this head would be based on the central purpose of the job/role.

► Focus Objectives:

The objectives under this area would be more on lines of improvement: the value creation

focus as relevant to the period.

► Company theme:

This refer to objectives which are specifically focused towards corporate themes,

e.g. Costs, Economic profit etc.

Rules for Objectives Setting:

Objective must:

 Be simple and clear.

 Be SMART-specific, Measurable, Achievable, Realistic, Time-bound..

 Take into an element of stretch.

 Be aware of available of resources.

 Be established through a process of participation, negotiation and agreement.

 Should seek success. Should be challenging and go beyond the comfort zone.

 Add value. Should mention how its achievement contributes to the Function’s/Business

Objectives.

Types of Objectives:

o Routine or System Maintenance Objectives.

Includes all that needs to be done on a daily basis to perform one’s job in a competent
manner.

Example:

- Ensure maintenance of safety standards. Increase per capita production to

…………

59
 o Changes Or Improvement Objectives:

Includes those objectives, which are focused on strategy ……….. Developing a

competitive edge for the business, address performance problems, support continuous
improvement.

Measures of Performance (MOP):

Clear standards of performance outputs should be defined of objective. Criteria for success
should be outlined such that employees are clear as to how the objective will be evaluated at the
end of the performance period.

MOP could be expressed in terms of:

o Quantity:

Gross margin, per capita and market share.

o Quality:

Quality of communication, service reliability, customer satisfaction.

o Human Reaction:

Complaints, customer feedback.

o Cost:

Unit cost, general expenses, actual v/s budgets.

o Time:

Deadlines, production time, speed, units per man-hour.

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Conclusion:

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

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

Performance appraisal is necessary to measure the performance of the employees and the
organization to check the progress towards the desired goals and aims.

61
 BIBLIOGRPHY

 Text Book:
Personal/ Human Resource Management - David & Stephen

Human Resource Management - C.B. Gupta

Human Resource and Personal Management - K. Aswathappa

 News paper:
Danik Bhaskar

Hindustan Times

Economics Times

 Magazine:
Business World

Business Today

 Website:
www.google.co.in

www.cadbury. com

www.cadburyindia.com

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