Rup A

Performance Appraisal
JNTUKAKINADA
A STUDY ON
PERFORMANCE APPRAISAL
With reference to
Hindustan Coca-Cola beverages Pvt. Ltd.,
VISAKHAPATNAM
A project report submitted to JNTU KAKINADA, in partial fulfillment for the Award
of Degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
T.R.V.K.DURGAMBA
09ME1E0054
Under the guidance of
VAMSI KRISHNA (Asst.prof)
RCE
DEPARTMENT OF MANAGEMENT STUDIES
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JNTU KAKINADA
2009 - 2011
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CERTIFICATE
This is to certify that the project entitled “PERFORMANCE APPRAISAL” in
Hindustan Coca-Cola Beverages Pvt. Ltd. submitted by Ms. T.R.V.K.DURGAMBA has
been completed as per the requirements of JNTU KAKINADA, is record of bonafide
work done by his, under my guidance and supervision in partial fulfillment of degree of
Master of Business Administration for the academic year 2009-2011.
Place: VISAKHAPATNAM
Date:
LECTURER
VAMSI KRISHNA
RCE
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DECLARATION
I hereby declare that the project entitled is an Original and bonafide work done by
me. This project is being submitted in partial fulfillment of the requirements for award of
the degree of Master of Business Administration of RCE COLLAGE (JNTU
KAKINADA). Under the guidance of VAMSI KRISHNA project guide
The context of this report is based on the information collected by me during the
project tenure at “PERFORMANCE APPRAISAL” in Hindustan Coca-Cola Beverages
Pvt. Ltd.
Place: VISAKHAPATNAM
Date:
T.R.V.K.DURGAMBA
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ACKNOWLEDGEMENT
A trainee must depend upon the generosity of others in this type of

comprehensive work for up to do date information on the subject being covered. The
information and the assistance from whom I have obtained are gratefully acknowledged
here.
Firstly, I would like to thank our Director and H.O.D. Prof. B.GOPI KRISHNA
for the constant and valuable guidance rendered by him throughout my course.
I express my deep gratitude towards N.V.S. Ramana Murthy (Factory HR
Manager) for giving me this opportunity of having excellent learning experience and their
valuable guidance at the company during the execution of my project work.
I would like to take the pleasure of this opportunity to express my heartful gratitude
to my guide VAMSI KRISHNA project Guide, who took personal interest & gave
valuable suggestions throughout my field work and completion of the project.
Place : VISAKHAPATNAM
Date :
J. RAMESH KUMAR
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CONTENTS
Chapters Particulars Page No.
Chapter – I INTRODUCTION
Chapter – II INDUSTRY PROFILE
Chapter – III CONCEPTUAL PROFILE
Chapter – IV DATA ANALYSIS AND INTERPRETATION
Chapter – V SUMMARY AND SUGGESTIONS
BIBLIOGRAPHY
ANNEXTURES
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Chapter – I
Introduction
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INTRODUCTION
It is rather difficult to say spontaneously what management means, though we

have studied a course in management. But it is necessary to recall what management is
before studying Human resource management (HRM). Management has been defined by
mary parket fallett as, “the art of getting things done through people”. But it is felt that
management is much more that what is said in this definition. Management is further
defined as, “that field of human behavior in which managers plan, organize, staff, direct
and control human, physical and financial resources in an organized effort, in order to
achieve desired individual and group objectives with optimum efficiency and
effectiveness”. It is clear from this definition that management is concerned with the
accomplishment of objectives by utilizing physical and financial resources through the
efforts of human resources. Thus, human resources are a crucial sub-system in the
process of management.
According to Leon C. Megginson, the term human resource can be
thought of as, “the total knowledge, skills, creative abilities, talents and aptitudes of an
organization’s workforce, as well as the value, attitudes and beliefs of the individuals
involved “. The term human resource can also explained in the sense that it is resource
like any natural resource. It does mean that the management can get and use the skill,
knowledge, ability etc., through the development of skills. Tapping and utilizing them
again and again. Thus it is a long-term perspective where as personnel is a short-term
perspective. Human resources are also regarded as human factor, human asset, human
capital and the like.
MEANING OF HRM
Different terms are used to denote human resource management they are :
Labour management, Labour administration, Labour management relation, Employee-
employee relations, Industrial relations, Personnel administration , Personnel
management, Human capital management, Human asset management and the like in
sample sense, Human resource management means employing people, developing their
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resources, utilizing maintaining and compensating their services in tune with the job and
organizational requirements.
FUNCTONS OF HRM
The functions of HRM can be broadly classified into two categories.
A).Managerial functions
B).Operative functions
A). MANAGERIAL FUCTIONS

Managerial functions of personnel management involve:
1. Planning.
2. Organizing.
3. Directing.
4. Controlling.
B).OPERATIVE FUNCTIONS
The operative functions of personnel management are related to specific activities of
personnel management. It involves the following function.
1. Employment.
2. Human resources development.
3. Compensation.
1. EMPLOYMENT
It is the operative function of human resource management (HRM). Employment is
concerned with securing and employing the people possessing required kind and level of
human resources necessary to achieve the organizational objectives. It covers the
following functions.
a. Job analysis. d. Human resource planning.
b. Recruitment e. Selection.
c. Placement. f. Induction and Orientation.
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2. HUMAN RESOURCES DEVELOPMENT

It is the process of improving, moulding and changing the skills, knowledge, creative
ability, aptitude, attitude, values, commitments etc., based on present and future job and
organizational requirements.
a. Performance appraisal.
b. Training.
c. Management development.
d. Career planning and development.
e. Organization development.
3. COMPENSATION:
It is the process of providing adequate, equitable, and fair remuneration to the
employees. It includes the following functions.
a. Job evaluation.
b. Wage and salary administration.
c. Incentives.
d. Bonus.
e. Fringe benefits
f. Social security measures.
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PERFORMANCE APPRAISAL
Performance appraisal is “the process of evaluating the performance and qualification
of the employees in terms of the administration including for promotion, providing
financial rewards and other placement, selection actions which require differential
treatment among the members of a group as distinguished from actions affecting all
members equally.”
Definition:
Performance appraisal is the systematic evaluation of individual with respect to his/her
performance on the job and his/her potential for development.
Performance appraisal is the systematic description of employee’s job relevant strength
and weakness. The purpose is to find out how well the employee is performing his job
and establish a plan of improvement. Performance appraisal is arranged periodically
according to a definite plan. Performance appraisal is not job evaluation. Performance
appraisal refers to how well someone is doing the assigned job. Job evaluation determines
how much a job is worth to the organization and, therefore, what range of pay should be
assigned to the job.
NEED OF THE STUDY:-
• Creating and maintaining the satisfactory level of performance of employees in their
present job.
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• Provide feedback information about the level of achievement and behavior of

subordinate.
• Provide information which helps to counsel subordinate.
• To prevent grievances and in disciplinary activities.
• Highlighting the employee needs and opportunities for personal growth and development.
• Aiding in decision making for promotions, transfers, layoffs and discharges.
• Promoting understanding between the supervisor and the subordinates.
• Providing useful criteria for determining the validity of selection and training.
OBJECTIVES OF THE STUDY

1. To study and analyze different performance appraisal schemes provided by the HCCB
PVT.LTD.
2. To study the existing annual performance appraisal system in HCCB PVT.LTD.
3. To study the efficiency of the system and overall rating during last year.
4. To study the interpersonal and team relationship with peers, superiors and
subordinates.
5. To study the performance feedback and counseling system for employees in HCCB
PVT.LTD.
A) Primary Objectives
1) To study the performance appraisal system in different organization.

2) To study the transformation of performance appraisal form traditional to modern.
3) To get an insight into the relative importance of performance appraisal in organization.
4).To study the effectiveness of performance appraisal system in different organization.
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5).To study the practical application of performance appraisal.

6) To compare appraisal system of different organization and find out the most common
parameters for appraisal.
7) How can companies use performance appraisal as an effective tool to achieve
Organizational effectiveness and efficiency.
B) Secondary Objectives.
1)To observe the work environment in organization.

2) To get experience and expertise in making projects.
3) To enhance my communication skills.
SCOPE OF THE STUDY

A performance appraisal system plays a vital role in every organization.
Manpower requirements are to be established far beyond the actual requirements. The
present study includes the performance appraisal systems carries out by HCCBPL The
study includes the sources utilize by HCCBPL internally. The study was going to be
conducted in HCCBPL, Vishakhapatnam on performance appraisal system.
I find a lot of scope to study my topic in this company. All the environments are found
to be provided well opportunity to me.
• To be instrumental in helping employees to better understand their strengths and
weaknesses with respect to their role and functions in the organization
• To help in identifying the developmental needs of employees, given their role and
function
• To increase mutuality between employees and their supervisors so that every
employee feels happy to work with their supervisor and thereby contributes their
maximum to the organization
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• Supervisors. In this way, each employee gets to know the expectations of their
superior, and each superior also gets to know the difficulties of their subordinates
and can try to solve them. Together, they can thus better accomplish their tasks
• To provide an opportunity to each employee for self-reflection and individual
goal- setting, so that individually planned and monitored development takes place
• To help employees internalize the culture, norms and values of the organization,
thus developing an identity and commitment throughout the organization
• To help prepare employees for higher responsibilities in the future by
continuously reinforcing the development of the behavior and qualities required
for higher-level positions in the organization
• To be instrumental in creating a positive and healthy climate in the organization
that drives employees to give their best while enjoying doing so; and
• To assist in a variety of personnel decisions by periodically generating data
regarding each employee
LIMITATIONS
1. The performance appraisal study is limited only to the HCCB PVT. LTD, which is
located in Vishakhapatnam.
2. The survey could not be extended to all the employees working in the plant as they
could not spare much time because of their busy schedule of work.
3. The performance appraisal study is conducted on a limited number of employees
and on the entire work force.
4. The answers given by the respondents highly depend on the mood and interest and
thus the accuracy fluctuates sometimes.
5. Sample size is 70 respondents.
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Chapter – II
Research
methodology
RESEARCH:-
Research is a careful investigation or enquiry especially through search
for new facts in any branch of knowledge.
According to Redman and Mory, “Research is a systematized effort to gain new
knowledge”.
RESEARCH METHODOLOGY:-
Research methodology is a way to systematically solve the research
problem. Research methodology not only talks of the research methods but also consider
the logic behind the methods we use in the context of our research study and explain why
we are using a particular method or technique and why we are not using others so that
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research results are capable of behind evaluated either by the researcher himself or by
others.
RESEARCH PROCESS:-
Research process consists of series of actions or steps necessary

to effectively carry out research and the desired sequencing of these steps:
 Formulating the research problem

 Extensive literature survey
 Development of working hypotheses
 Preparing the research design
 Determining sample design
 Collecting the data
 Execution of the project
 Analysis of data
 Hypothesis –testing
 Generalization and interpretation
 Preparation of the report or the thesis
RESEARCH DESIGN:
“A Research Design is the arrangement of conditions for collection and analysis of data
in a manner that aims to combine relevance to the research purpose with economy in
procedure”.
Generally the Research Design can be conveniently described in 3 ways. They are,
► Research Design in case of exploratory research studies
► Research Design in case of descriptive and diagnostic research
► Research Design in case of hypothesis-testing research studies
The present study is of descriptive study.
SOURCES OF DATA
The sources for collecting the data are from both
● Primary Method
● Secondary Method
Primary Data
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The Primary data are those which are collected afresh and for the first time, and thus
happen to be original in character. The tools for collecting this primary data are by two
types namely Interview Method and Questionnaire Method.
Secondary Data
The Secondary data are those which have already been collected by someone else and
which have already been passed through the statistical process in the company.
SAMPLING PROCESS:
SAMPLE SIZE
All items in any field of in query constitute a ‘universe’ or ‘population’. A finite
subset of the population gives a sample.
The statistical units in the sample are called sample units. The number of units in the
sample is called the size of the sample.
If the size of the sample is less than or equal to 30 then it is called as a small samples.
Otherwise that it if the size of the sample is greater than 30, it is called as large samples.
The sample size of the survey is taken as 100 respondents.
SAMPLING PROCEDURE
Sampling is the selection of group with a view to obtain information about the whole is
group of persons that represents particular community.
The sampling method used was random sampling. This sampling method was used
because of lack of time and lack of through knowledge about the universe. The sample
size was fixed to 70 respondents.
The selected respondents constitute what is technically called as ‘sample’ and the
selection process is called ‘sampling technique’
TYPES OF SAMPLES
There are three primary kinds of samples: the convenience, the judgement sample, and
the random sample. They differ in the manner in which the elementary units are chosen.
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The convenient sample
A convenience sample results when the more convenient elementary units are chosen
from a population for observation.
The judgment sample
A judgment sample is obtained according to the discretion of someone who is familiar

with the relevant characteristics of the population.
TYPES OF SAMPLING:
Simple Random Sampling: A simple random sample (SRS) of size n is produced by a

scheme which ensures that each subgroup of the population of size n has an equal
probability of being chosen as the sample
Stratified Random Sampling: Divide the population into "strata". There can be any
number of these. Then choose a simple random sample from each stratum. Combine
those into the overall sample. That is a stratified random sample. (Example: Church A
has 600 women and 400 women as members. One way to get a stratified random sample
of size 30 is to take a SRS of 18 women from the 600 women and another SRS of 12 men
from the 400 men.)
Multi-Stage Sampling: Sometimes the population is too large and scattered for it to be
practical to make a list of the entire population from which to draw a SRS. For instance,
when the a polling organization samples US voters, they do not do a SRS. Since voter
lists are compiled by counties, they might first do a sample of the counties and then
sample within the selected counties. This illustrates two stages. In some instances, they
might use even more stages. At each stage, they might do a stratified random sample on
sex, race, income level, or any other useful variable on which they could get information
before sampling.
RESEARCH INSTRUMENTS
1. Personal interviews schedulers where administered personally for
Collecting the data
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2. Questionnaire The questionnaire comprises of closed-ended

Questions and open ended questions.
STATISTICAL TOOLS USED
● Bar charts
● Pie-charts
● Tables
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Chapter – III
Industry Profile
INDUSTRY PROFILE
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The soft drink industry has grown up to be one of the prestigious industries in the
contemporary business world. In the past, people used to think that soft drink meant for
only high-class people. To consume soft drinks was prestigious in those days. This is due
to non-availability and low per-capita income. Therefore, the soft drink companies are
now planning to increase their market share and sales effort to reach the consumer widely
diffused in Indian market.
Coca-cola Company has taken many steps to advertise its products by taking the cine
stars like Karishma kapoor, Southern celebrities like Vijay in the past and today its brand
ambassadors are Ameer khan, Aishwarya Rai, Vivek Oberoi and cricketer Veer ender
sehwag. Each and every strategy of company has an impact over its consumer; the
present study is undertaken to survey on in trade merchandising opportunities for
Hindustan Coca-Cola Beverage Pvt. Ltd.
Evolution of Soft Drinks
“Soft drinks” market is like an ocean, the demand for it can never be estimated
properly, as long as the competition from unorganized sector and homemade drinks
continue unabated.
With the invention made by JOHN MERVIN NOOTH, an English man Who
developed an apparatus for the production of Co2 (carbon dioxide) during 1832 cholera
epidemic, manufacturing soft drink on scientific line was made possible (Effervescent
water manufactured basing on this invention)
Scenario of Soft Drink Industry in India
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By buying over competitors, the two American cola ants have cleared up the arena
and are backing all their power behind the Indian franchises of their globe-girdling
brands they are varying with each other the market by increasing the capital base in the
country.
Till 1990 soft drink were available in 200ml bottles uniformly. It was in 1990,
Thums-up has introduced 250ml bottle with a slogan entitled more cola same price with
this, Thums-up has registered a hike in sales equivalent to 65% in 1994, and the
government has exhibited enthusiasm to bring amendment to Weights and Measurements
Act, 1976. As per its notification issued, all manufactures should strictly adhere to the
following measurements:
For all bottled soft drinks 300ml
Soft drinks in tins 330ml
The current growth rate of soft drinks industry in India is nearly 20%
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INDIAN BUSINESS MODEL
Coca-Cola
India division
Manufactures concentrate,
Beverages base and syrup and
Corporate service support COBOS
Region/ bottles
FOBOS
Manufactures finished
Bottle/can, fountain syrup
CUSTOMER
CONSUMER
Sell and Delivers
THE NATIONAL SCENE OF SOFT DRINK
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The Indian soft drink industry is flourishing well. The industry is going on with its
sales at an alarming rate, with Coca-Cola Company and Pepsi food in the Indian soft
drink industry.
Here are some best companies which were running well in these times
1. The Parley’s exports Pvt. Ltd.
2. The Pepsi food Pvt. Ltd.
3. Cadbury Schweppes Pvt. Ltd.
4. Hindustan Coca-Coca Beverages Pvt. Ltd.
Coke is the oldest of all the drinks in India. Even though Coke has excited Indian market
due to some reasons it has ended its sales in 1977. There was tie-up between Parley and
Coke in 1933 and then Coke has been re-introduced as Coca-Cola in Indian market.
SWOT Analysis
“SWOT analysis is to suggest ways in which the organization can get profits from
strength and opportunities and shield itself against weakness and threats”
ADAMS,2005
Opportunities Threats strengths Weakness

Growing markets Economic slow Strong R&D Customers
down complaints
Positive brand Buyers market Dealers force Long cycle time
images
Moving to high Low cost Service recovery
technology
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Chapter – IV
Company Profile
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Origin And History Of Coca-Cola
After 16 years absence, Coca-Cola returned to India in1993. The

company’s presence in India was cemented in November that year in a deal that gave
Coca-Cola the ownership of the nation top soft drinks brands and bottling network. Coca-
Cola India has made significant investment to build to build and continually improve its
business in India, including new production facilities, wastes, water treatment plant,
distributing system and marketing equipment. During the past decade, the Coca-Cola
system have invested a future US $ 1 billion in India one of the country’s top
international investors
In 2003, Coca-Cola India pledged to invest a future US $ 100 million in its
operations. Coca-Cola business directly employs approximately 6000 local people in
India; the company indirectly creates employment for more than 125000 people in related
industries throughout vast procurement, supply and distribution systems.
History of Coca- Cola
In May 1886, Dr John Pemberton first introduced Coca- Cola in
Atlanta Mr. Frank M Robinson suggested the name of Coca – Cola “meaning the extracts
of cola nuts and coca leaves the two main ingredients of Coca – Cola in 1929.
CANDLER sold the company to Ernest Woodruff and he was the first president of “Coca
– Cola” M.DOUGLAS IVESTOR is currently chairman and BOD (Board of director) of
Coca – Cola company. Company’s head quarters are located in ATLANTA GEORGIA.
Approximately 70% of company volume and 80% of company profit come from the
outside the U.S. Scientists soon discovered that gas carbon or carbonium was behind the
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bubbles in natural mineral water. The first marketed soft drink appeared in the 17th
century.
HISTORY
Oct 1993 1993-Pune Oct 1996

Coke re-launched Concentration plant Pet plant started in
in Agra Pune
Oct1998 Sept 1997

First generated 37 Plants
acquired Acquired first
plant Ahmadabad Bottling plant,
Bareil
1997-1999 200 5COBO
4 bottling 22 acquired 7 Green regions 1 FOBO
companies field Operation
Mission, Vision & Values :-
The world is changing all around us. To continue to thrive as a business over the next ten
years and beyond, we must look ahead, understand the trends and forces that will shape
our business in the future and move swiftly to prepare for what's to come. We must get
ready for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term
destination for our business and provides us with a "Roadmap" for winning together with
our bottling partners.
Mission of the coca-cola company:-

 Our Roadmap starts with our mission, which is enduring. It declares our purpose
as a company and serves as the standard against which we weigh our actions and
Decisions.
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 To refresh the world...
 To inspire moments of optimism and happiness...
 To create value and make a difference
Objectives of the coca-cola company:-
 To engage Coca-Cola in exploring the viability and options for using their
distribution networks in developing countries to distribute ‘social products’ such
as oral dehydration salts (ORS) and related educational materials on health,
Hygiene and sanitation.
 To help engage an appropriate international NGO, or NGOs, to partner with
Coca-Cola at a global level and local levels on this initiative.
 To support Coca-Cola and its partners in modeling different scenarios which
combine Coca-Cola’s distribution network with local health initiatives in order to
achieve our aims?
 To support Coca-Cola and its partners in selecting the most promising scenarios
as the basis for field trials.
Logo of coca-cola:
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Slogan:
• "Thaana mat lab Coca-Cola!" ("Cold means Coca-Cola!") (2000s)
• "Job chaos ho jay, Coca-Cola enjoys!" ("Whatever happens, enjoy Coca-Cola!")
The Brands
 Carbonated soft drinks such as Coca-Cola, Diet coke, Fanta, Sprite, and Fresca.
 Jusices and juice drinks such as Minute-maid, Maaza.
 Sports drinks such as Power Ade and Aquarius
 Water products such as Ceil, Dasani and Bio-aqua.
 Tea such as Georgia Coffee, the best selling non-carbonated beverages of Japan.
PRODUCTS:-
The products of Hindustan Coca-Cola Beverages Pvt. Ltd
1) Coca-Cola 2) Thums-up 3) Sprite
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4) Limca 5) Fanta 6) Kinley
7) Georgia 8) Vanilla coke
9) Diet coke 10) Maaza 11) sun fill
12) Minute-maid just 10 13) Coca cola black 14) coca cola black cherry
15) coca cola with lime 16)coca cola zero 20)cherry coke
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ORGANISATIONAL STRUCTURE:-
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ROLE OF BOARD OF DIRECTORS:-
Person subject to the reporting requirements of Section 16 of the

Securities Exchange Act of 1934
From January 1, 2009, through April 22, 2009, E. Neville Isdell served as Chairman of
the Board of Directors, and Muhtar Kent was President and Chief Executive Officer. On
April 22, 2009, E. Neville Isdell retired from the Company and the Board of Directors
elected Muhtar Kent to serve as the Company’s Chairman of the Board of Directors.
2009
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Row 1 (from left to right)

Sam Nunn5, 7
Co-Chairman and Chief Executive Officer,Nuclear Threat Initiative
Alexis M. Herman3, 7
Chair and Chief Executive Officer, New Ventures, LLC
Peter V. Ueberroth1, 5
Investor and Chairman, Contrarian Group, Inc., and Nonexecutive Co-Chairman, Pebble
Beach Company
Cathleen P. Black3, 7
President, Hearst Magazines
Muhtar Kent4
Chairman and Chief Executive Officer,The Coca-Cola Company
James D. Robinson III2, 3, 6
General Partner, RRE Ventures
Maria Elena Lagomasino2, 3
Chief Executive Officer, GenSpring Family Offices, LLC
Barry Diller2, 5, 6
Chairman of the Board and Chief Executive Officer,IAC/InteractiveCorp, and Chairman
of the Board and Senior Executive, Expedia, Inc.
Herbert A. Allen4, 5, 6
President and Chief Executive Officer,Allen & Company Incorporated
Row 2 (from left to right)
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Jacob Wallenberg2, 7
Chairman of the Board, Investor AB, andVice Chairman of Skandinaviska Enskilda
Banken AB
Donald R. Keough6, 7
Nonexecutive Chairman of the Board,Allen & Company Incorporated, and Nonexecutive
Chairman of the Board, Allen & Company LLC
Ronald W. Allen1, 3
Advisory Director, Former Consultant and Advisory Director, and Retired Chairman of
the Board,President and Chief Executive Officer,Delta Air Lines, Inc.
James B. Williams1, 4, 5, 6
Retired Chairman of the Board andChief Executive Officer, SunTrust Banks, Inc.
Donald F. McHenry1, 2, 7
Distinguished Professor in the Practice of Diplomacyand International Affairs,
Georgetown University
Executive Officers of the Company

Muhtar Kent1, 2
Chairman of the Board of Directors and Chief Executive Officer
Harry L. Anderson1
Senior Vice President, Global Business and Technology Services
Ahmet C. Bozer1
President, Eurasia & Africa Group
Alexander B. Cummings, Jr.1
Executive Vice President and Chief Administrative Officer
J. Alexander M. Douglas, Jr.1
President, North America Group
Ceree Eberly1
Chief People Officer
Gary P. Fayard1
Executive Vice President andChief Financial Officer
Irial Finan1
Executive Vice President and President, Bottling Investments and Supply Chain
Glenn G. Jordan S.1
President, Pacific Group
Geoffrey J. Kelly1
Senior Vice President and General Counsel
Dominique Reiniche1
President, Europe Group
José Octavio Reyes1
President, Latin America Group
Ingrid Saunders Jones
Senior Vice President,Global Community Connections
Joseph V. Tripodi1
Executive Vice President and Chief Marketing and Commercial Officer
Clyde C. Tuggle1
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Senior Vice President, Global Public Affairsand Communications

Jerry S. Wilson1
Senior Vice President and Chief Customer and Commercial Officer
Vice Presidents :
Rudy M. Beserra, Latin Affairs
John M. Farrell, Strategy
Rick Frazier, Supply Chain
Javier Goizueta, McDonald’s Division
William D. Hawkins III, General Tax Counsel
Eddie R. Hays, Science
Janet A. Howard, Diplomatic Relations
James A. Hush, Strategic Security and Aviation
Bilal Kaafarani, Research and Innovation
R. Jackson Kelly, Investor Relations
Connie D. McDaniel, Internal Audit
Chris Nolan, Corporate Treasurer
Marie D. Quintero-Johnson, Mergers and Acquisitions
Barclay T. Resler, Government Relations
Mary M.G. Riddle, Flavor Ingredient Supply
Ann T. Taylor, Global Business Services Kathy N. Waller,1 Controller
Frederick P. Yochum, Corporate Supply Chain
Carol Crofoot Hayes, Corporate Secretary Gloria Bowden, Assistant Corporate
Secretary
Fiona K. Payne, Assistant Corporate Secretary
ROLE OF CEO:-
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FINANCIAL PERFORMANCE REVIEW:-
The Coca-Cola Company and Subsidiaries

Condensed Consolidated Balance Sheets
(UNAUDITED)
(In millions except par value)
April 3, 2009
ASSETS
CURRENT ASSETS
$
Cash and cash equivalents 6,816
2
Marketable securities 63
3,1
Trade accounts receivable, less allowances 39
2,2
Inventories 98
2,1
Prepaid expenses and other assets 98
14,7
TOTAL CURRENT ASSETS 14
INVESTMENTS
Equity method investments:
1,3
Coca-Cola Hellenic Bottling Company S.A. 86
8
Coca-Cola FEMSA, S.A.B. de C.V. 40
6
Coca-Cola Amatil Limited 80
Coca-Cola Enterprises Inc. -

2,4
Other, principally bottling companies and joint ventures 10
4
Other investments, principally bottling companies 41
5,7
TOTAL INVESTMENTS 57
1,7
OTHER ASSETS 93
8,4
PROPERTY, PLANT AND EQUIPMENT — net 25
6,0
TRADEMARKS WITH INDEFINITE LIVES 42
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3,9
GOODWILL 88
2,3
OTHER INTANGIBLE ASSETS 84
$
TOTAL ASSETS 43,103
LIABILITIES AND EQUITY

CURRENT LIABILITIES
$
Accounts payable and accrued expenses 5,651
6,7
Loans and notes payable 01
4
Current maturities of long-term debt 61
3
Accrued income taxes 56
13,1
TOTAL CURRENT LIABILITIES 69
5,0
LONG-TERM DEBT 17
2,9
OTHER LIABILITIES 44
8
DEFERRED INCOME TAXES 65
THE COCA-COLA COMPANY SHAREOWNERS' EQUITY
8
Common stock, $0.25 par value; Authorized — 5,600 shares 80
8,0
Capital surplus 21
38,9
Reinvested earnings 11
(2,8
Accumulated other comprehensive income (loss) 93)
(24,2
Treasury stock, at cost 07)
EQUITY ATTRIBUTABLE TO SHAREOWNERS OF THE COCA-COLA 20,7
COMPANY 12
3
EQUITY ATTRIBUTABLE TO NONCONTROLLING INTERESTS 96
21,1
TOTAL EQUITY 08
$
TOTAL LIABILITIES AND EQUITY 43,103
Note:
The financial information included in this section should be read in conjunction with
Management's Discussion
and Analysis of Financial Condition and Results of Operations and Notes to Consolidated Financial Statements
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contained in our Company's 2009 Quarterly Report on Form 10-Q and 2008 Annual Report on
Form 10-K.
HEAD QUARTERS OF COCA COLA:-
The Coca-Cola Headquarters is a campus in Midtown Atlanta, Georgia that is home to

The Coca-Cola Company. The most visible building on the site is a 29-story, 403–foot
(122.8 m) high One Coca-Cola Plaza. located on the corner of North Avenue and Luckie
Street. Completed in 1979, the architects were FABRAP and the designer Tom Pardue.
Competitors (Major Players)
While the competition is moving so close between various Indian manufactures,
it was in 1990, Pepsi been introduced for the first time to Indian public. The competition
mainly existed “Thums-up” and “Pepsi”. Consumers are going to be benefited when
competition is stiff. It’s proved beyond doubt with the Indian soft drink. Pepsi objected
the introduction of 300ml bottles by Coca-Cola. However, the objection was overruled
and government of India has permitted Coca-Cola to go ahead with 300ml bottles. While
cola mainly marketing its range amounts metropolitan cities, Pepsi has introduced 300ml
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size throughout the country to take an edge over Coca-Cola. Either one buys Coke or
Pepsi, Thump-up or Duke, profits flow only to the American Multinational Corporations
(MNC’s).
Previously, Parley Group has introduced slowly 250ml bottles of Gold Spot Limited
and Citra in the market. At this time, Pepsi has introduced 1000ml bottle. Since 60% of
the marketing is monopolized by one single company and because of its restrictive
practices hundreds of local and small companies could not flourish Parley, Coke and
Pepsi dominated the Indian soft drink market in the ensuing days. Coca-Cola purchased
parleys brand such as Thums-up, Gold spot, etc., along with its distribution network in
1993.
Trade Mark
Our trademarks are most valuable assets. The trademark “Coca-cola” was
registered with U.S patents and trademark office in 1893, followed by “Coke” in 1945.
Today, the world’s favourite soft drink Coca-Cola is also the world’s best known and
admired trademark, recognised zed by more than 90% world population.
Brand positioning
Positioning of the different brand in the Indian soft drink market can be analyzed by
the way various brands have been advertised by the consumers some drinks are meant for
health, some for youthfulness, some has fashionable, and some has thirst quenchers.
Guiding principles of Coca-Cola India

PRINCIPAL 1: THE SYMBOL OF QUALITY
Everything associated with the trademarks of coca-cola company reflects the
company’s position of leadership and quality.
PRINCIPAL 2: CUSTOMER AND CONSUMER SATISFACTION:
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Inherent in products and services associated with the coca- Cola Company is desire
to attain the highest level of and customer and consumer satisfaction.
PRINCIPAL 3: A RESPONSIBLE CITIZEN OF THE WORLD:
The coca-cola company is a responsible corporate citizen is all activities associated
with its products and trademarks Hindustan coca-cola Beverages Pvt. Ltd.,
Visakhapatnam is a corporate branch of the coca-cola company registered in the north
Atlanta, North America. The plant is located in the area of 5.4 acres and a separate green
belt area of 16 acres. The plant has to work force of 107 people as staff, 10 people as
managers and 165 people as workers. The entire plant divided into four segments.
They are:
1. water treatment plant 3.carbon dioxide preparation plant
2. administration 4.syrup preparation plan
Structure of Coca-Cola
There are five operating segments.
1) North America
2) Africa
3) Asia
4) Europe, Eurasia and Middle East.
5) Latin America.
The present “VISAKHAPATNAM” unit is under Asia zone of the division of India. In
India there are around 55 units (plants) and in Andhra Pradesh there are 5 plants namely
1. Visakhapatnam 2) Vijayawada 3) Hyderabad 4) Nellore 5) kalahasthi
It started in the year 1967 when the great visionary Sri.M.V.V.S.Murthy has started
his small business of a sealing the soft drink in Vizag town. It stated as small unit in the
industrial estate with as many as employees. As the day went by the same plant made into
big plant with the help of government and it has called as “Visakhapatnam bottling
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company” all this as further improved with the help of them taking of the task of
becoming the sole franchise of the parley products. Then it came to be called as the Gold
Spot Company. They were manufacturing all products of the parle. The deal struck and it
acquired by the Coca-Cola on 10th Oct, in the year 1998. From them on words, it becomes
a sole authority to the property of the VBC and since then it was operating as a fully
owned company. These plants are concerned with the production, sales, marketing, and
customer care of Coca-Cola Company.
After acquiring the unit, the company is trying to organization so that it becomes
consistent with the Coca-Cola work culture. The top-level management already been
professionalized and change is expected at the middle level. A total re- organization is
around the corner. The Coca-Cola Company wants to continue to be the worldwide
provider of superior quality, branded beverage solution that refreshes people anytime,
anywhere every day.
Coca-Cola India
 It consists of countries like India, Nepal, Bhutan, Srilanka, Bangladesh and
Maldives.
 It is a part of Asia group.
 It has won the 2002 Robert W Woodruff a ward Best market share of 61% Record
23% CSD’S growth.
 It has won numerous marketing excellence awards.
Coca-Cola India Values

LEADERSHIP : To encourage shaping a better future.
PASSION : Committed in heart and mind
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ACCOUNTABILITY : If it is to be, it is up to me
INNNOVATION : Seek, image, create, and delight
INTIGRITY : Be real
COLLABORATION : Leverage collective genius
QUALITY : What we do, we do well
Secret Formula
Reaching out to the customer
+
Developing excellent people
+
Supporting by the winning culture
=
Leadership in the marketing
Program Objective and Philosophy

To recognize and develop regional or local talent and ensure that these talents
graduate as full-pledged professionals to play a major role in organizational development.
EMPLOYMENT GENERATED
• Unit directly employs 90,000 man days in a year

• Unit directly / indirectly provides employment opportunities to 3000 people by
way of distribution / transportation
• about 23,000 self employed people in North Coastal areas make living selling soft
drinks
Domicile employment > 95 %
Unique Achievements
Various brands of Coca-Cola in India
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1) Coca-cola 2) Thums-up 3)Sprit
4) Limca 5) Fanta 6) kinley water
7) Diet coke 8) minute-maid pulpy orange
They manufacture 200ml and 300ml returnable glass bottles pack of the
flavours Thums-up, Coca-Cola, Fanta, Sprite, Limca and Kinley soda (300ml only).
The plant has on manufacturing line for aerated products. The manufacturing line has
the capacity of 600BPM. In 1998, Hindustan has taken over from Pinakini Beverages
and ever since the entry of multinational in the bigness. The investment in the
industry grew. At a faster rate and spending in the market also increased drastically.
The company has received several appreciations and prestigious awards for both the
quality and sales and the company stood-up best in the year 1994-95 in system of
Coca-Cola India, which is recorded of sorts for rural bottling company.
Hindustan Coca-Cola Beverages Private Limited is operating in about 200
countries all over the world. Through the world there are 400 brands produced by the
company since 118 years with a turnover of $ 120 billion per annum.
The company rating up “first” in the introduction of canned and PET soft drink,
vending machines and backpack dispensers for crowds of cricket supporters.
Graph
Awards
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 Coca-Cola honoured with best management award on labour days, May 1st 2005
by Andhra Pradesh Government (for its people management practices).
 PATNA unit wins (CSR) “ corporate social responsibility” award for the year
2004-2005 by J.M. institute of speech and hearing, Patna (for continued support
providing towards uplifting of physically challenged children).
 HCCBPL has been honoured the best Private Company in state by the
government of Tamil Nadu at Chennai on 16th Aug 2004.
 All India Division COBO’S are now ISO 14001 certified.
Departments and Function of HCCBPL
An area general manager heads Hindustan Coca-Cola Beverages Private Limited, the
various departments are the Finance department, Sales DEPARTMENT, the plant, the
quality assurance department and the Personnel department.
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Chapter – V
Plant profile
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The Plant
The entire process can be simplified and presented as below:
Raw Syrup Room: The raw syrup obtained by mixing water and sugar at 8.50 C. This
done in a large cylindrical tank of 6KL capacity.
Ready Syrup Room: the ready syrup room obtained by agitating the essence (which kept
in an essence mix tank) with the raw syrup. The essence imported by Atlanta and its
formulating is a tightly kept secret.
CIP Room: CIP stands for “clean in point” three or two cylindrical tank of capacity 2KL
each. On EIS a hot caustic tank maintained at 600C and the other is a hot water tank at
800C. The temperature, water or solution level, etc,. Can maintain and controlled by the
automated CIP system.
Before production starts each day, the raw syrup tank and ready syrup tank is
cleaned in three steps.
1. Cool water rinsing - 05min
2. Hot water circulation - 10min
At the end of the day, the tanks are again cleared in five steps
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2. Hot caustic circulation - 10min
4. Hot water circulation - 15min
Five people operate the raw syrup room, Ready syrup room and CIP.
Bottle Washer
This is a huge automated machine with five compartments.
1. Pre-rise compartments 4. Hydro compartment
2. Pre- wash compartments 5. Pre-final fresh compartment
3. Soaker compartments
Filler And Para-Mix Machines
The ready syrup reaches the Para-mix machine where it is cooled by the refrigerant
ammonia. The solution is carbonated and sends to the filling machine. The filler machine
fills the bottles and caps them at the rate of 600 bottles per minute. The filled bottles are
shifted to the godown will have a stock of 20000 to 25000 crates.
Production Department
The production department is headed by a factory manager who reports directly to the
area general manger (AGM) .one engineer is so far inn side battery limit i.e. ., plant
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equipments and maintenance and the second engineer is for outside battery limits; for the
utilities like generate room, boiler, water treatment plant and the Maaza unit which is
located at same distance, these four people report to the plant manager.
There are 165 workers in the plant, which includes women, who are otherwise engaged in
housekeeping into the production line. Depending on the demand, the company operates
three types of shifts.
1. General shift : 8a.m to 5pm
2. Second shifts : 6am to 2pm to10pm
3. 24’hours : 6am to6pm and6pm to 6am
Women are employed only in the general shift (8am to 5pm) or the ‘A’ shift
(6am to 2pm).In the other shifts, casual labours are used.
Stages in Production Process
1. Water treatment 2. Raw syrup making 3.Ready Syrup making
4. Bottling process 5. Quality control
Production schedule
The production schedule fixed daily by taking into consideration the market demand,
the availability of empty bottles and inventory position of filled bottles. The storage
capacity of the godown is at present 90,000 crates, which also limits the production
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schedule. The production schedule for each brand is fixed daily. Production is generally
carried out in two shifts. In summer, the demand it’s peak and production will be
extended 12 hours shifts.
Raw Materials:Raw materials are the flavours essence concentrate supplied by
parley, sugar and water sugar purchased in bulk from the wholesale sugar market. The
requirement of sugar for 20-25 production days kept in stock in stoke and requirement for
a month intended in advance. Water required met by municipal supply, water from bore
well and tube wells also used when required. Water further treated with chemicals. Caps
are supplied by specialized firms like L&T and Metal box India Ltd
Ingredients
1. Water 2. Sugar 3. Co2
4. Flavour (for soda only water, co2 in used)
Quality Assurance Department
The quality assurance department is headed by plant manager. In addition to him
there are 7 chemists. The deputy manager reports to the plant manager. The department
tests and controls the quality of water, caustic solution and the final beverage. The final
beverage is tested for gas and brix i.e. the sugar content.
Sales Department
The sales department has a general sales manager and three associates sales
managers. Of the three sales managers, one person is in charges of city sales while the
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other looks after district and Orissa sales. All of report to AGM directly who interacts
with sales department on daily basis and virtually leads the teams.
District Sales
In addition to the sales manager, there is a deputy sales manager, four assistance sales
manager and below the two salesmen each distributor. From the distributor it reaches the
retailer outlet. The company sales force helps the retailer and distributor achieve their
targets promotions and other incentives. The sales forced in far locations report to the
sales manager once in a weak. Based on their reports, new incentive schemes and offers
are made. The previous week’s performance is evaluated and targets for the next week.
City Sales
Under the sales manager (city), there are supervisor, staffs and 113 field forces. The
company has no distributors in the city of Visakhapatnam. They directly supply to the
retailers. There are 30 routes with trunks covering each route. Each trunk is accompanied
by sales man and two sales helpers. There is a sales officer for every two routes. He
moves around on a hike and sees to it that are outlets are covered. Any urgent messages
are communicated to the sales force through mobiles there are approximately 5600
outlets in Visakhapatnam city. In lop areas i.e. areas where company trunk cannot go, a
fat dealer is appointed.
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Customer Service Support System
There is customer service support system (CSSS), which functions under the CSSS for
entire Andhra Pradesh, locally it reports to the AGM. In the soft industry, the customer
and consumer are defined separately.
Consumer Response Co-Ordination Unit (CRC)
The consumer response co-ordination unit has the sales manager the unit’s
temporarily handle by the CSSS. The CRC unit receives complaints and grievance from
the market either through phone calls or through sales force. It sends regular reports to
the corporate office.
Distribution Patterns
Direct operation
Plant Plant Plant Plant
Area
marketing
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Indirect Operation
Plant C&F Distributo Customer Consumers

r s
Route
Super
agents
stockiest
In the early 1960’s, Professor Neil Borden at Harvard business school identified a no of
company performance action that can influence the consumer decision to purchase goods
or services. Borden suggested that all those actions of the company represented a
“marketing mix”. Professor E. Jerome Mc carthy, also at the Harvard business school in
the early 1960’s, suggested that the marketing mix contained four elements: product,
price, place, and promotion.
In popular usage “marketing” is the promotion of products especially advertising and

branding. However in professional usage the term as a wider meaning, which recognize
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the marketing is customer cantered. Products often developed to meet the desires of
groups of customers or event, in some cases for specific customers.
The four P’s are:
The product aspects of marketing deal with the specification of the actual goods or
services and how it relates to the end user needs and wants. The scope of a product
generally includes supporting elements such as warranties, guarantees, and support.
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Chapter – VI
Theoretical
background
INTRODUCTION TO PERFORMANCE APPRAISAL

Appraising the performance of individuals, groups and organizations are a common
practice of all societies. In some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily
activities. Teachers evaluate the performance of students, bankers evaluate the
performance of creditors, parents evaluate the behavior of their children and all of us,
consciously or unconsciously evaluate our own actions from time to time. In social
interactions, performance is conducted in a systematic and planned manner to achieve
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widespread popularity in recent years.
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.
Definition
According to Flippo, a prominent personality in the field of Human resources,
"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
Performance appraisal is the systematic description of employee’s job relevant strength
and weakness. The purpose is to find out how well the employee is performing his job
and establish a plan of improvement. Performance appraisal is arranged periodically
according to a definite plan. Performance appraisal is not job evaluation. Performance
appraisal refers to how well someone is doing the assigned job. Job evaluation determines
how much a job is worth to the organization and, therefore, what range of pay should be
assigned to the job.
History of Performance Appraisal

Its roots in the early 20th centuary can be traced to taylor’s pioneering time and motion
studies as a distinct and formal management procedure used in the evaluation of work
performance, appraisal really dates fom the time of the second world war- not more than
60 years ago.
Performance appraisal systems began as simple methods of income justification.that is,
appraisal was used to decide whether or not salary or wageof an individual employee was
justified.
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The process was firmly linke to material outcomes.if an employees’s performance was
found to be less than ideal, a cut in a pay would follow. On the other hand, if their
performance wasbetter than the supervisor expected, a pay rise was in order. Little
consideration was given to the developemental possibilities of an appraisal, it was felt
that a cut in pay, or a rise, should provide the only required impetus for an employee to
either improve or continue to perform well.
It was felt that employees with roughly equal work abilities could be provided with
same amount of money, but they had different levels of morale, motivation &
performance. So basically the payment structure was focussed on the amount of work
rather than the outcome. Morale and self-esteem was the issue which had a major impact
on the performance of different individuals.
As a result, the traditional emphasis on reward outcomes was progressively ree jected.
In the 1950’s in the united states, the potential usefulness of appraisal as tool for
motivation and development was gradually reconised. The general model of the
perormance appraisal, as it is known today, began from that time.
Objectives Of Performance appraisal
• To review the performance of the employees over a given period of time.

• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
• Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify the
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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
Purpose of performance appraisal

1 To create and maintain a satisfactory level of performance
2 To provide fed back.
3 To plan career goals of employees to identify career potential.
4 To provide important data base for management.
5 To fair and equitable compensation based on performance.
6 To identify training & development programmes.
7 To help in promotional decisions.
8 Contribute to employee’s personal growth and developement
IMPORTANCE OF PERFORMANCE APPRAISAL
Performance appraisal is an essential and inescapable managerial activity.

Appraisal is necessary for all important decisions relating to people, such as placement
and promotion, remuneration and reward, training and development, as well as long-term
man power planning and organization development. In recent years, efforts have been
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made to use appraisal systems for motivation, for more effective communication, for
strengthening superior-subordinate relationships, for goal setting and work planning and
for improving the total performance of the organization. But in spite of its importance,
uneasiness about appraisal has been a long-standing feature of management. There is no
doubt during the past three decades, many developments have taken place and many
innovations, have been made in managerial appraisal system. Still, many issues remain
Unresolved. Available literature on the subject reveals than even in the western countries,
where systematic appraisals have been widely practice over a much longer period than in
India and where a fair amount of empirical as well as theoretical research on the relevant
issues has been conducted, serious doubts continue to persist about various aspects of
appraisal
Approaches to Performance Development
Performance appraisal - Traditional approach

Traditionally, performance appraisal has been used as just a method for determining
and justifying the salaries of the employees. 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
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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.
METHODS OF APPRAISAL
TRADITIONAL METHODS MODERN METHODS
1. Rating scales 1. Management by objective

2. Checklist 2. 360 degree appraisal
3. Forced choice method 3. Assessment centers
4. Forced distribution method
5. Critical incident method
6. Performance tests and observations
7. Essay method
8. Behaviorally anchored method
Traditional Method
1. Rating scales
This is the simplest and most popular technique for appraising employee
performance. The typical rating system consists of several numerical scales, each
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representing a job related performance criterion such as dependability initiative,

output, attendance, attitude, co-operation, and the appropriate performance level on
each criterion, and then computes the employees total numerical score. The number
of points scored may be linked to salary increases, whereby so many points equal a
rise of some percentage.
2. Checklist
A checklist of statements on the traits of the employee and his/her job is

prepared in two columns via, a ‘yes’ column and a ‘No’ column. All that rater should
do is tick the ‘yes’ column if the answer to the statement is positive and in column
‘No’ if the answer is negative. After Ticking off against each item, the rater forwards
the list. To the HR department where the actual assessment of the employee takes
place. The HR department assigns certain points to each ‘Yes’ the total score is
arrived at. When points are allotted to the checklist, the technique becomes a weighed
checklist.
3. Forced choice method
This approach is known as the forced choice method because the rater is
forced to select the statements, which are readymade. The rater is given a series of
statements about an employee. These statements are arranged in block of two or
more, and the rater indicates, which statement is most or least descriptive of the
employee. As in the checklist method, the rater is simply expected to select the
statements that describe the rate. The HR department does the actual assessment.
4. Forced distribution method
The forced distribution method seeks to overcome the problem by compelling

the rate to distribute the rates on all points on the rating scale. The second method
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operated under an assumption that the employee performance level conforms to a

normal statistical distribution. It is assumed that employee performance levels
conform to a bell-shaped curve. For example, 10% at the top end of the scale is
excellent, 20% good, 40% average, 20% of the lowest grade is below average.
5. Critical incidents method
The approach focuses on certain critical behaviors of an employee that make

all the difference between effective and non-effective performance of a job. The
superiors as and when they occur record such incidents.
6. Performance tests and observations
With a limited number of jobs, employee assessment may be based upon a test
of knowledge or an actual demonstration of skills. The test must be reliable and
validated to be useful. Even then, performance tests are apt to measure potential more
than actual performance.
7. Essay method
Under this method the supervisor makes a free form, open ended appraisal of
an employee in his own words and puts down his impressions about his impressions
about the employee. The description is always as factual and concrete as possible. No
attempt is made to evaluate an employee in a quantitative manner. The strength or the
the essay method depends on the writing skills and analytical ability of the rater. The
essay method can consume much time because the rater must collect the information
necessary to develop the essay and then he/she must write it.
8. Behaviorally anchored rating scales
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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.
MODERN METHODS
1. Management by Objectives (MBO)
The MBO concept as was conceived by Mr. Drucker reflects a management

philosophy that stress goals rather than methods and which values and utilizes employee
contribution. It is result oriented. Application of MBO in the field of performance
appraisal in four steps:
A. To establish the goals each subordinate is to attain. The goals typically refer
to the desired outcome to be achieved; these goals can then by used to
evaluate employee performance.
B. Setting the performance standard for the subordinated in a previously
arranged time period. As subordinates perform they know fairly well there is
to do, what has been done, and what remains to be done.
C. The actual level of goal attainment is compared with the goals that were not
met upon. The evaluator explores reasons for the goals that were not met and
for the goals that were exceeded. This step helps determine possible training
needs.
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D. Establishing new goals and, possibly, new strategies for goals not previously
attained. Subordinates who successfully reach the established goals may be
allowed to participate more in the goal setting process the next time. The
process is repeated.
2. 360 degree appraisal
The 360- degree technique is understood as systematic collection of performance

data on an individual or group, derived from a number of stakeholders. The stakeholders
being the immediate supervisors, team members, customers, peers, and self. Any one
who has useful information on ‘how an employee does the job’ may be one of the
appraisers. It facilitates greater self development of the employee. It enables an employee
to compare his/her perceptions about self with perceptions of others. By design, the 360
degree appraisal is effective in identifying and measuring interpersonal skills, customer
satisfaction, and team building skills.
3. Assessment centers
An assessment centre is a central location where managers may come together to

have their participation in job related exercises evaluated by trained observers. The
principle idea is to evaluate managers over a period of time, say one to three days, by
observing their behavior across a series of select exercises or work samples. Assesses are
requested to participate in in-nascent exercise work groups(with leaders), role playing,
and other similar activities, which require the same attributes for successful performance,
as in actual job. Self appraisal and peer evaluation are also throw in for final rating. The
characteristics assessed in a typical assessment centre include assertiveness, persuasive
ability, communicating ability, planning and organization ability, self confidence,
resistance to stress, energy level, decision making, sensitivity to the feeling of others,
administrative ability, creativity, and mental alertness.
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Traditional Methods of Performance Appraisal
THE APPRAISAL PROCESS
The appraisal process begins with the establishment of performance standards; these
should have evolved out of job analysis and the job description.
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
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measurable terms. In case the performance of the employee cannot be measured, great
care should be taken to describe the standards.
Communicating the Standards

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

The most difficult part of the Performance appraisal process is measuring the actual
performance of the employees that is the work done by the employees during the
specified period of time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not affect the
outcome of the process and providing assistance rather than interfering in an employees
work.
Comparing the Actual With the Desired Performance
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards
set. The result can show the actual performance being more than the desired performance
or, the actual performance being less than the desired performance depicting a negative
deviation in the organizational performance. It includes recalling, evaluating and analysis
of data related to the employees’ performance.
Discussing Results
The result of the appraisal is communicated and discussed with the employees on one-
RCE Page No: 69

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
An organization comes across various problems and challenges Of Performance
Appraisal in order to make a performance appraisal system effective and successful. The
main Performance Appraisal 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
RCE Page No: 70

influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal
process. Therefore the rater should exercise objectivity and fairness in evaluating and
rating the performance of the employees.
Resistance
The appraisal process may face resistance from the employees and the trade unions for
the fear of negative ratings. Therefore, the employees should be communicated and
clearly explained the purpose as well the process of appraisal. The standards should be
clearly communicated and every employee should be made aware that what exactly is
expected from him/her.
Advantages of doing performance appraisals

• They provide a record of performance over a period of time.
• They provide an opportunity for a manager to meet and discuss performance with
an employee.
• Provide the employee with feedback about their performance and how they
completed their goals.
• Provide an opportunity for an employee to discuss issues and to clarify
expectations with their manager.
• Offer an opportunity to think about the upcoming year and develop employee
goals.
• Can be motivational with the support of a good reward and compensation system.
Disadvantages of performance appraisal

• If not done appropriately, can be a negative experience.
• Are very time consuming, especially for a manager with many employees.
• Are based on human assessment and are subject to rater errors and biases.
• If not done right can be a complete waste of time.
• Can be stressful for all involved.
RCE Page No: 71

CHAPTER VII
DATA ANALYSIS
&
INTERPRETATION
TABLE 1
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Existence of Performance Appraisal System
Kind Of Opinion Respondents Percentage (%)
Yes 60 86
No 10 14
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40 Percentage (%)
30
20
10
0
1 2 3 4 5 6 7
INFERENCE:
From the above table, 86% of the total respondents opinioned that the appraisal
system existed in the company and 43% of the respondents opinioned that the appraisal
system is not existed.
TABLE 2
RCE Page No: 73

The factors for performance appraisal is

Excellent 15 22
Good 33 47
Average 12 17
Poor 10 14
Total 70 100
100
90
80
70
60
Kind of opinion
50
Respondents
40
Percentage(%)
30
20
10
0
1 2 3 4 5 6
INFERENCE:
From the above table 22% of the respondents opinioned that the factors of
appraisal is excellent, 47% of the respondents opinioned that, the factors of appraisal is
good, 17% of the respondents opinioned that, the factors of appraisal is average and 14%
of the respondents opinioned that it is poor.
RCE Page No: 74

TABLE 3
Are You Satisfied With Self Appraisal Or You Prefer
Peers 40 57.1
Performance Review 20 28.6

Committee
Others 10 14.3
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7 8 9
INFERENCE:
From the above table 57.1% opinioned that, they prefer peers, 28.6% opinioned that,
they prefer performance review committee and 14.3% opinioned that, they prefer others.
TABLE 4
RCE Page No: 75

The Performance Appraisal Is Done At
Place of work 55 78.5
Any other place 15 21.5
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7
INFERENCE:
From the above table, 64.3% opinioned that, the performance appraisal is done at
the place of work and 37.7% opinioned that, the performance appraisal is done at any
other place in the organization.
RCE Page No: 76

TABLE 5
Awareness of the Performance Appraisal System
Fully aware 30 42.8
Partially aware 20 28.6
Not at all aware 20

28.6
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7
INFERENCE
From the above table, 42.8% opinioned that, they are fully aware of the performance
appraisal system, 28.6% opinioned that, they are partially aware of the performance
appraisal system and 28.6% opinioned that, they are not at all aware of the performance
appraisal system.
TABLE 6
RCE Page No: 77

Performance Appraisal Is Conducted For Every
3 months 5 7.1
6 months 35 50
9 months 5 7.1
1 year 25 35.8
Total 70 100
100
90
80
70
60
50 Respondents
40
Percentage(%)
30
20
10
0
3 9 Total
months months
INFERENCE
From the above table, 7.1% opinioned that, the performance appraisal is conducted for
every 3 months, 50% opinioned that, the appraisal is conducted for every 6 months, 7.1%
opinioned that, the appraisal is conducted for every 9 months and 35.8% opinioned that,
the appraisal is conducted for every 1 year.
TABLE 7
RCE Page No: 78

Relationships with Peers, Superiors and Subordinates
Yes 60 86
No 10 14
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7
INFERENCE
From the above table, 86% opinioned that, the interpersonal and team relationships
with peers, superiors and subordinated is satisfactory and good and 14% opinioned that,
the interpersonal and team relationships with peers, superiors and subordinated is not
satisfactory and good.
RCE Page No: 79

TABLE 8
Feedback Is Communicated By the Appraisee
Immediately after 15 21.4

completion
Within 15 days 35 50
More than a month 15 21.4
Not communicated 5 7.2
Total 70 100
100
90
80
70
60
50
40 Respondents
30 Percentage (%)
20
10
0
Immediately More than a Total
after month
completion
INFERENCE
From the above table, 21.4% opinioned that, the feedback is communicated
immediately after completion, 50% opinioned that, the feedback is communicated within
15 days, 21.4 % opinioned that, the feedback is communicated more than a month and
7.1% opinioned that, the feedback is not communicated.
RCE Page No: 80

TABLE 9
Feedback Is Communicated In the Form Of
Oral 22 31.4
Written 48 68.6
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7 8
INFERENCE
From the above table, 31.4% of the respondents opinioned that, the feedback is
communicated in oral form and 68.6% opinioned that, the feedback is communicated in
the written form.
RCE Page No: 81

TABLE 10
By Whom the Feedback Is Communicated
Concerned controlling 20 28.6

officer
Superior 45 64.3
Any other manager 5 7.1
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6
INFERENCE
From the above table, 28.6% of the respondents opinioned that, the feedback is
communicated by the concerned controlling officer, 64.3% opinioned that, the feedback
is communicated by the superior and 7.1% opinioned that, the feedback is communicated
by any other manager.
RCE Page No: 82

TABLE 11
To Whom the Self Appraisal Report Should Submit
Your superior 23 32.9
Any controlling officer 47 67.1
Total 70 100
120
100
80
Respondents
60
Percentage (%)
40
20
0
er
r
io
l
fic
ta
er
To
of
up
ng
rs
l li
ou
ro
Y
nt
co
ny
A
INFERENCE
From the above table, 32.9% of the respondents opinioned that, the self appraisal
report should submit to the superior and 67.1% opinioned that, the self appraisal report
should submit to any controlling officer.
RCE Page No: 83

TABLE 12
Performance Appraisal Based On Well Defined Objective Criteria
Yes 40 57
No 30 43
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7
INFERENCE
From the above table, 57% of the respondents opinioned that, the appraisal is based on
well defined objective criteria and 43% opinioned that, the appraisal is not based on the
well defined objective criteria.
RCE Page No: 84

TABLE 13
The Appraisal Is Based On Job Analysis
Yes 12 17
No 58 83
Total 70 100
Yes 60 86
No 10 14
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7
RCE Page No: 85

INFERENCE
From the above table, 17% of the respondents opinioned that, the appraisal is based
on job analysis and 83% opinioned that, the appraisal is not based on job analysis.
TABLE 14
Necessary for Performance Appraisal
Yes 70 100
No 0 0
Total 70 100
Yes 60 86
No 10 14
Total 70 100
RCE Page No: 86

100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7
INFERENCE
From the above table, all the respondents opinioned that, the appraisal is necessary
for the organization.
TABLE 15
Publicity To The Performance Appraisal By The Organization
Yes 45 64
No 25 36
Total 70 100
RCE Page No: 87

Yes 60 86
No 10 14
Total 70 100
100
90
80
70
60
Kind Of Opinion
50
Respondents
40
Percentage (%)
30
20
10
0
1 2 3 4 5 6 7
INFERENCE
From the above table, 64% of the respondents opinioned that, the performance
appraisal publicity is given by the organization and 36% opinioned that, the publicity is
not given.
TABLE 16
Effectiveness of Present Performance Appraisal System
RCE Page No: 88

Yes 35 50
No 35 50
Total 70 100
Yes 60 86
No 10 14
Total 70 100
100
90
80
70
60
50 Respondents
40 Percentage (%)
30
20
10
0
Yes No Total
INFERENCE
From the above table, 14% of the respondents opinioned that, the present performance
appraisal system is effective and 86% of the respondents opinioned that, the present
appraisal system is not effective.
RCE Page No: 89

TABLE 17
Performance Appraisal Regarding Promotions Should Be Based On

Only seniority 20 28.6
Only merit 10 14.3
Both merit & seniority 40 57.1
Total 70 100
Yes 60 86
No 10 14
Total 70 100
120
100
80
Respondents
60
Percentage(%)
40
20
ty
ri
0
ty
io
t
ri
ri
l
e
io
ta
e
m
s
n
o
e
T
&
ly
s
t
ly
ri
O
e
n
m
O
th
o
B
INFERENCE
RCE Page No: 90

From the above table, 28.6% of the respondents opinioned that, the appraisal
regarding promotions is based on only seniority, 14.3% opinioned that, the appraisal
regarding promotions is based on only merit and 57.1% opinioned that, the appraisal
regarding promotions is based on both merit and seniority.
Chapter – VIII
Summary &
Suggestions
RCE Page No: 91

FINDINGS
1. 86% of the respondents opinioned that, the performance appraisal system is

existed in the organization
2. 47% of the respondents opinioned that, the performance appraisal factors are good
3. 57% of the respondents opinioned that, they prefer performance review

committee.
4. 84.3% of the respondents opinioned that, the performance appraisal is done at the
place of work.
RCE Page No: 92

5. 42.8% of the respondents opinioned that, they are fully aware of the performance
appraisal system.
6. 50% of the respondents opinioned that, the performance appraisal is conducted for
every 6 months.
7. 71% of the respondents opinioned that, the interpersonal and team relationships
with peers, superiors and subordinated are satisfactory and good.
8. 50% of the respondents opinioned that, the feedback of performance appraisal is

communicated with the appraise within 15 days
9. 68.6% of the respondents opinioned that, the performance appraisal feedback is

communicated in written form.
10. 64.3% of the respondents opinioned that, the performance appraisal feedback is
communicated by the superior.
11. 67.1% of the respondents opinioned that, the self appraisal report is submit to the
any controlling officer.
12. 57% of the respondents opinioned that, the performance appraisal is based on well
defined objective criteria.
13. 83% of the respondents opinioned that, the performance appraisal is not based on
the job analysis.
14. 100% of the respondents opinioned that, the performance appraisal is necessary
for the organization.
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15. 64% of the respondents found that the publicity is given by the organization.
16. 50% of the respondents opinioned that, the present performance appraisal system
is not effective.
17. 57.1% of the respondents opinioned that, the promotions are based on both merit
and seniority.
SUGGESTIONS
• Change is continues in the world in every part and in every organization,
accordingly the change has to be adopted in the systems followed in the
organizations.
• The management should motivate the employees to perform better by giving
rewards and other incentives.
RCE Page No: 94

• Employees must be made to work in various areas which give them enthusiasm to
know much mare and also which acts as motivation method, this also gives them
training to act as role plays in any superior abscence.
• The performance appraisal needs to be improved by which it is not influenced by
central tendency and leniency.
• The performance appraisal needs to be based on well defined objective criteria.
The performance appraisal feedback needs to be communicated with the appraisee
within short period.
CONCLUSION
The performance appraisal which is conducted by the organization is very
effective. The management gives the promotions based on both merit and seniority.
RCE Page No: 95

Most of the employees are satisfied with the performance appraisal which is
conducted be the organization. The performance appraisal is mostly based on the job
analysis.
Hence, the performance appraisal is necessary for every organization to achieve
its objectives.
RCE Page No: 96

Bibliography
BIBLIOGRAPHY
BOOKS
RCE Page No: 97

● Business Research Methods by Donald R. Cooper.
● Research Methodology by Kothari.
● Human Resource Management by L.M.Prasad.
● Human Resource Management and Industrial Relations by P.Subbarao.
READING MATERIALS
1. Annual records and reports of the company.
2. Previous project records at the company.
WEBSITES
1. www.Google.com
2. www.BBIPLINFRA.com
RCE Page No: 98

ANNEXURES
QUESTIOINNAIRE
Respected Sir/madam,
I am T.R.V.K.DURGAMBA studying M.B.A, 3rd semester with HR
specialization in RCE, VATLURU. I will sure that the information provided by you can
RCE Page No: 99

be kept as confidentially and it is only for my academic purpose. So please cooperate

with me.
NAME:
AGE:
DESIGNATION:
DEPARTMENT:
MONTHLY INCOME:
EXPERIENCE:
1. Is there any performance appraisal system existing in your organization?

A. YES
B.NO
2. The criteria/factors for performance appraisal are
A. Excellent
B. Good
C. Average
D. Poor
3. If you are above the supervisory cadre, are you satisfied with self appraisal or you
prefer
A. Peers
B. Performance Review Committee
C. Others
4. Where the performance appraisal is made?
A. Place of work
B. Any other place in the organization
5. Awareness of performance appraisal system
A .Fully Aware
B .Partially Aware
C. Not at all Aware
RCE Page No: 100

6. Performance appraisal are usually conducted every

A. 3 months
B. 6months
C. 9 months
D. 1 year
7. Interpersonal and team relationship with peers, superior and subordinates are
Satisfactory and good?
A .YES B .NO
8. Feedback is communicated to the appraise
A. Immediately after completion
B. within 15 days
C. More than a month
D .Not communicated
9. Feedback is communicated in which form
A. Oral
B. Written
10. The feedback in appraisal, if communicated, by whom it is done?
A. Concerned controlling officer
B. Superior
C. Any other manager
11. If you are above the supervisory cadre, to whom you will submit the self appraisal
report?
A .Your superior
B .Any controlling officer
12 Is the performance appraisal based on well defined objective criteria?
A. Yes
B. No
13 Is the appraisal based on job analysis?
A. Yes
B. No
RCE Page No: 101

14 Is the performance appraisal necessary for the organization?

A. Yes B. No
15 Has the performance appraisal given wide publicity in the organization?
A .YES B .NO
16. Present performance appraisal is effective?
A .YES B .NO
17 .Performance appraisal regarding promotions should be based on?
A .Only Seniority
B .Only Merit
C .Both Merit and Seniority
RCE Page No: 102

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Performance Appraisal

MASTER OF BUSINESS ADMINISTRATION

DEPARTMENT OF MANAGEMENT STUDIES

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Hindustan Coca-Cola Beverages Pvt. Ltd. submitted by Ms. T.R.V.K.DURGAMBA has

been completed as per the requirements of JNTU KAKINADA, is record of bonafide

Master of Business Administration for the academic year 2009-2011.

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A trainee must depend upon the generosity of others in this type of

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Chapters Particulars Page No.

Chapter – II INDUSTRY PROFILE

Chapter – III CONCEPTUAL PROFILE

Chapter – IV DATA ANALYSIS AND INTERPRETATION

Chapter – V SUMMARY AND SUGGESTIONS

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It is rather difficult to say spontaneously what management means, though we

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A). MANAGERIAL FUCTIONS

c. Placement. f. Induction and Orientation.

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2. HUMAN RESOURCES DEVELOPMENT

d. Career planning and development.

b. Wage and salary administration.

f. Social security measures.

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• Provide feedback information about the level of achievement and behavior of

• Provide information which helps to counsel subordinate.

• To prevent grievances and in disciplinary activities.

• Aiding in decision making for promotions, transfers, layoffs and discharges.

• Promoting understanding between the supervisor and the subordinates.

OBJECTIVES OF THE STUDY

1) To study the performance appraisal system in different organization.

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5).To study the practical application of performance appraisal.

1)To observe the work environment in organization.

SCOPE OF THE STUDY

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Research process consists of series of actions or steps necessary

 Formulating the research problem

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The convenient sample

The judgment sample

A judgment sample is obtained according to the discretion of someone who is familiar

Simple Random Sampling: A simple random sample (SRS) of size n is produced by a

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2. Questionnaire The questionnaire comprises of closed-ended

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diffused in Indian market.

present study is undertaken to survey on in trade merchandising opportunities for

Hindustan Coca-Cola Beverage Pvt. Ltd.

Evolution of Soft Drinks

water manufactured basing on this invention)

Scenario of Soft Drink Industry in India