CASE STUDY OF PERFORMANCE APPRAISAL SYSTEM AND ITS LINKAGE TO COMPETENCY MAPPING AT DABUR INDIA LTD.

Summer project submitted IN Partial Fulfilment of the Requirements for the Award of Post Graduate Program

By RIYA SHARMA PGP 20102303 Under the guidance of Mr. P awan Kumar Ponia

IILM,GURGAON

7TH May to 30th June 2011

Certificate from Faculty Guide

This is to certify that Mr. /Ms. _________________________________ (Roll No. _______), a student of the Post-Graduate Program has successfull completed his/her summer internship project titled ____________________________________________ for the period from __________ to _________. This project is submitted by Mr./Ms. _______ in partial fulfillment of the requirements for the award of Post Graduate Diploma in Management. The project is submitted following my approval and satisfies the rules and guidelines defined by IILM for the project.

<Faculty Name> Project Guide Dated: ___________

Acknowledgement

Completing the project work is never one-man effort. It is often the result of valuable contributions of a number of individuals in a direct or indirect manner that helps in shaping and achieving stated objectives. This project report bears the imprint of those who had rendered their wholehearted support and encouragement without whose help this effort of mine would be in vain. I would like to give this note for (Senior Human Resource Officer Mr. Pawan Ponia ) my project guide and mentor, as he was the source for my motivation in pressing circumstances to complete this project and honored by the responsible bestowed upon us. I am also grateful to Mr. Ashok Gupta Deputy Human Resource Manager) for their valuable guidance. I express my deep sense of gratitude and sincere thanks to my project guide Miss Ridhi Bhatia for her directions, suggestion and information provided which were of utmost importance for the successful completion of the project. Last but not the least; I also thank the employees of Dabur India Ltd. for assisting me in the timely completion of project.

RIYA SHARMA June30, 2011

TABLE OF CONTENTS
Executive Summary Dabur as an FMCG company

Company Profile Company History Milestones to success Dabur Worldwide and its products Corporate Governance IT initiatives Future Challenges Organization Structure Dabur Products Vision and Mission Core Values Major Strategic Business Units Human Resources at Dabur Introduction to Performance Appraisal Performance appraisal at Dabur Training and development Competence and Competencies Competency mapping Mapping process Competency mapping and attributes Research methodology CEP of grade vi operations at Dabur India limited of Junior Officers Stores Competencies identified of junior officers stores on the basis of CEP parametres Analysis and interpretation of Questionnaires filled by Junior officers stores Immediate supervisor Findings Conclusion Recommendations Bibliography Questionnaires

EXECUTIVE SUMMARY

In todays scenario, Human capital is acknowledged as one of the most potent sources in contributing directly and significantly in the growth of any organization. This project attempts to explore the most effective HR policies and practices for smooth sailing of an organization. It was a research conducted to get the feedback of the employees from different departments about the existing performance appraisal system followed in the organization. The main research objective was to understand the relevance of wide variety of methods and techniques that can be explored towards performance of the organizational goals. In todays competitive world every organization is geared towards maximum return with minimum investment. Human Resource Management plays a vital role towards planning & controlling cost effective manpower support. This is widely affected by planning and implementing Effective Performance Appraisal System which is the paramount part of this project Channelizing human energies in a predetermined desirable direction are not possible unless harmonious relations are maintained among team members involved in business development. Concept of employee retention was also understood through the project study. The ways adopted by companies to manage grievances and stress and thereby motivating the employees and reducing employee turnover were studied through the project.

DABUR AS AN FMCG COMPANY

Today, the FMCG is the fourth largest sector in the Indian economy and there are many FMCG companies like HLL, ITC, Britannia, Tata Tea, Nestle, Godrej Consumer, Dabur, Marico etc.

Dabur India Limited is the fourth largest FMCG Company in India. Dabur has five other subsidiaries- Dabur Foods, Dabur Nepal, Dabur Egypt, Dabur Oncology and Dabur Pharma.

Business Daburs product range encompasses health care, personal care, ayurvedic specialities and
food segments.

Brands
Well-known brands include Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola, Lal Dantmanjan, Nature Care, Pudin Hara and Real.

Location
Dabur has been marketing its products in more than 50 countries all over the world. The company has offices and representatives in Europe, America and Africa. Manufacturing facilities are spread across three overseas locations.

Turnover
Building on a legacy of quality and experience for over 100 years, today Dabur has a turnover of Rs.1899.57 with powerful brands.

COMPANY PROFILE

DABUR INDIA LIMITED CORPORATE OFFICE

COMPANYS CORPORATE OFFICE AT KAUSHAMBI, GHAZIABAD

COMPANY HISTORY

1884 1896 Early 1900s 1919 1920 1936 1972 1979 1986 1992 1993 1994 1995 1996 1997 1998 2000 2003 2005 2006

Birth of Dabur Setting up a manufacturing Plant Ayurvedic Medicines Establishment of Research Laboratories Expands further Dabur India ( Dr. S.K Burman) Pvt. Ltd. Shift to Delhi Sahibabad factory / Dabur Research Foundation Public Limited Company Joint Venture with Agrolimen of Spain Cancer treatment Public issues Joint ventures 3 separate divisions Food Division/Project STARS Professionals to manage the Company Turnover of Rs 1000 crores Dabur demerges Pharma Business Dabur acquires Balsara Dabur announces Bonus after 12 years

2006

Dabur crosses $2 Bin market cap, adopts US GAAP

Milestones to Success
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learn and grow to a commanding status in the industry. The Company has gone a long way in popularizing and making easily available a whole range of products based on the traditional science of Ayurveda. And it has very high standards in developing products and processes that meet stringent quality norms.

1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established Early 1900s- Production of Ayurvedic medicines

Dabur identifies nature-based Ayurvedic medicines as its area of specialization. It is the first company to provide health care through scientifically tested and automated production of formulation based on our traditional science.

1930 Automation and Upgadation of Ayurvedic product manufacturing initiated 1936 Dabur ( Dr. S.K Burman) Pvt. Ltd. Incorporated 1940- Personal care through Ayurveda
Dabur introduces consumers to personal care through Ayurveda, with the launch of Dabur Amla Hair Oil. The product was so popular that it became the largest selling hair oil brand in India.

1949- Launched Dabur Chyawanprash in tin pack

Widening the popularity and usage of traditional Ayurvedic products continues. The ancient restorative Chyawanprash is launched in packaged form, and becomes the first branded chyawanprash in India.

1957- Computerizations of operations initiated 1970- Entered Oral Care & Digestives Segment
Addressing rural markets where homemade oral care is more popular than multinational brands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbal toothpowder is made available at affordable costs to masses.

 1972- Shifts base to Delhi from Calcutta 1978- Launches Hajmola tablet

Dabur continues to make innovative products based on traditional formulations that can provide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid is branded and launched as the popular Hajmola tablet.

1979- Commercial production starts at Sahibabad, the most modern herbal medicines plant at that time 1984- Dabur completes 100 years 1988- Launches pharmaceutical medicines 1989- Care with fun
The Ayurvedic digestive formulation is converted into a childrens fun product with the launch of Hajmola Candy. In an innovative move, a curative product is converted to a confectionary item for wider usage.

1994- Comes out with first Public issue 1994- Enters oncology segment 1994- Leadership in Health care
Dabur establishes its leadership in health care as one of only two companies worldwide to launch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops an eco-friendly process to extract the drug from its plant source.

1996- Enters foods business with the launch of Real Fruit 1996- Real blitzkrieg

Juice

Dabur captures the imagination of young Indian consumers with the launch of Real Fruit Juices- a new concept in the Indian foods market. The first local brand of 100% pure natural fruit juices made to International standards, real becomes the fastest growing and largest selling brand in the country.

1998- Burman family hands over the management of the company to professionals 2000- The 1,000 crore mark
Dabur establishes its market leadership status by staging a turnover of Rs. 1,000 crores. Across a span of over 1000 years, Dabur has grown from a small beginning based on traditional health care.

 2001- Super specialty drugs

With the setting up of Dabur Oncologys sterile cytotoxic facility, the Company gains entry into the highly specialized area of cancer therapy. The state-of-the art plant and laboratory in the UK have approval from the MCA of UK. They follow FDA guidelines for production of drugs specifically for European and American markets.

2002- Dabur record sales of Rs. 1163.19 crore on a net profit of Rs 64.4 crore 2003- Dabur demerges Pharmaceutical business

Maintaining Global Standards

As a reflection of its constant efforts at achieving superior quality standards, Dabur became the first Ayurvadic products company to get ISO 9002 certification.

Science for Nature

Reinforcing its commitment to nature and its conversation, Dabur Nepal, a subsidiary of Dabur India, has set up fully automated greenhouses in Nepal. This scientific landmark helps to produce saplings of rare medicinal plants that are under threat of extinction due to ecological degradation. Merger of 3 Balsara Companies- Besta cosmetics, Balsara hygiene Products and Balsara Home Products to be effective from April 1, 2006.

Merger with Balsara

2005- Dabur acquires Balsara 2006- Dabur announces Bonus after 12 years 2006- Dabur crosses $2 Bin market cap, adopts US GAAP Dabur Worldwide
Daburs mission of popularizing a natural lifestyle transcends national boundaries. Today there is global awareness of alternative medicines, nature based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularizing this alternative way of life, marketing its products in more than 50 countries all over the world.

Its Products World Wide

Offices and representatives in Europe, America and Africa A special herbal health care and personal care range successfully selling in markets of the Middle East, Far East and several European countries. Inroads into European and American markets that have good potential due to resurgence of the back-to-nature movement.

Corporate Governance
In India, the Securities and Exchange of India (SEBI) stipulates corporate governance standards for listed companies through the Clause 49 of the listing agreement of the stock exchanges. Good corporate governance and transparency in actions of the management is key to a strong bond of trust with the Companys stakeholders. Dabur understands the importance of good governance and has constantly avoided an arbitrary decision-making process. In this pursuit, Dabur has already put in place systems and procedures and is fully compliant with the revised Clause 49 well before it becomes mandatory. Thus at Dabur, we believe good governance is key to strong bond of trust between the company and all its stakeholders.

IT Initiatives
In Dabur India Limited knowledge and technology are key and efficiency. Towards this overall goal of technology-driven performance, Dabur is utilizing the world. It will also cut down costs and increase profitability. Information Technology in a big way. resources which have helped the Company achieve higher levels of excellence This will help in integrating a vast distribution system spread all over India and across.

Future Challenges
Forward Integration of SAP with Distributors and Stockiest. Backward Integration of SAP with Suppliers. Implementation of new POS system at Stockiest point and integration with SAP-ERP. Implementation of SAP HR and payroll. SAP Roll-out to DNPL and other new businesses Central Procurement & Planning Department Dabur has established a Central Procurement & Planning Department (CPPD) to take care of all high value purchases across the company. The CPPD is housed at the Kaushambi Corporate Office (KCO) and is headed by the head- CPPD. Low value purchases are de-centralized at the manufacturing units. A Unit Purchase Heads the Purchase Department at the manufacturing units. Dabur India Limited has also set up a cross-functional Purchase Committee to guide and oversee the purchasing function at the KCO. To focus on customer and successfully meet their needs and requirements.

To manufacture effective personal care, ayurvedic and food products at competitive prices and improve the quality of life of common masses. To implement system to ensure prevention of errors rather than detection of errors. To ensure global competitiveness by striving to achieve Current and Good Manufacturing Practices (CGMP)

Organization structure

Dabur Products

Dabur Health Care Product Range Health Supplements Dabur Chyawanprash Dabur Chyawanshakti Glucose-D Digestives Hajmola Yumstick Hajmola Mast Masala Anardana Hajmola Hajmola Candy Pudina hara Dabur Hingoli Natural Cures Shilajit Gold Nature Care Ring Ring Itch Care Back-aid Shankha Pushpi Dabur Balm Sarbyna Strong Dabur Baby Care Product Range Baby Care Dabur Lal Tail Dabur baby Olive oil Dabur Janma Ghunti Dabur Personal Care Product Range Hair Care-Oil Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla Hair Care- Shampoo Anmol Silky Black Shampoo Vatika Henna conditioning Shampoo Vatika Anti-Dandruff Shampoo Skin Care Gulabari

 Vatika Fairness Face Pack

Dabur Oral Care Product Range

Oral Care Dabur Red Gel Babool Toothpaste Dabur Red Toothpaste Dabur Lal Dant Manjan Dabur Binaca Toothbrush Dabur Foods Product Range Real Real Fruit Juice Real Active Homemade Lemoneez Natural Lemon Juice Honey Pure Natural Honey Capsico A fiery red-pepper sauce Dabur Ayurveda Product Range Dashmularishtha Ashokarishtha Lauhasava Mahanarayan Tail Juritap Madhuvani Lavan Basked Vision and Mission

Founding Thought: What is that life worth which cannot bring comfort to others?

Vision: Dedicated to the health and well being of every household. Mission: To become a leading nature-based health and family care Products Company.

Core Values

Ownership : Accept personal responsibility, and accountability to meet business needs. Passion for Winning: Leaders in the area of responsibility, with a deep commitment to
deliver results. Determined to be the best at doing what matters most.

People Development: People are the most important asset. Add value through result driven
training, and we encourage & reward excellence.

Customer Focus : Superior understanding of consumer needs and develop products to

fulfill them better.

Team Work : Work together on the principle of mutual trust & transparency in a boundaryless organization. Intellectually honest in advocating proposals, including recognizing risks.

Major Strategic Business Units

In India, the Companys business is carried out by three Strategic Business Units (SBUs) namely: Consumer Care Division, with a share of 82% in its total sales. Consumer Healthcare Division, with a share of 8% in its total sales. Dabur Foods Limited as a wholly owned subsidiary with a share of 10% in its total sales.

HUMAN RESOURCE AT DABUR

Dabur places great deal of confidence on its excellent pool of human resources, which it realizes is the key to its further growth strategy. The company continued its efforts to further align its HR policies, processes and initiatives to meet the business needs. In line with its focus on international operations, Dabur implemented a uniform HR structure across all the groups companys operations. This will enable seamless transaction s between domestic and overseas position. Also the integration of the personnel of the erstwhile Family Products Division (F.P.D) & Healthcare Products Division (H.C.P.D) was implemented efficiently to suit the requirements well within time. Major initiatives taken were: Dabur implements performance metrics for all key positions based on two aspects of the Balanced Score Card Approach- Financial and Internal Business Process. This approach clearly outlines the expectation from each position and will be upgraded to include two more aspects for any key managerial positions in future. The Company institutionalized the Assessment and Development Center(A.D.C) approach to all positions from staff to officer cadre and also at the senior levelsto objectively identify, develop and promote the talent from within, and to provide individual feedback for development of the participating employees. To encourage learning, the Company is planning to set-up a learning center, which will be equipped with a library; I.T & Web based sources of knowledge. It is also in the process of setting up a knowledge management portal and a leadership and capability development cell Dabur is committed to attract fresh talents. Towards this end, the company required over 20 candidates from leading management and engineering institutes in the country, who will be inducted.

INTRODUCTION TO PERFORMANCE APPRAISAL

This is a technique, not universally accepted, of assessing the performance of employees against agreed targets. The personnel practitioners would be most likely to be involved in designing the procedures, leaving the line managers normally to administer the process. Performance Appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. Aims of Performance Appraisal The following aims might be considered when examining a performance appraisal system: Use reliable, fair and objective measures of performance, compare actual with planned performance, and provide feedback to the appraisee. Make provision for the allocation of both extrinsic rewards (performance related pay) and intrinsic rewards (opportunity to enhance ones skills) following the assessment process. Recognize that performance management is the heart of the general management process.

Objectives of Performance Appraisal

Data relating to performance assessment of employees are recorded, stored and used for several purposes. The main purposes of employee assessment are: To effect promotions based on competence and performance. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. To assess the training and development needs of employees. To decide upon a pay raise where regular pay scales have not been fixed.

Appraisal Techniques
Certain techniques are available to evaluate the performance of the employee.

Written report: The appraiser writes about the strengths, weaknesses, previous
performance and potential of the appraisee, with suggestions for improvement. It is important that the appraiser is perceptive with reasonable writing skill.

Critical incidents: The appraiser highlights incidents or key events that show the
appraisers behavior as exceptionally good or bad in relation to particular outcomes at work. This exercise would depict desirable behaviors as well as behavior that signal a need for improvement.

Graphic Rating Scale: This is a popular appraisal technique and it lends itself to
quantitative analysis and comparison of data. A set of performance factors id identified, including such characteristics as quality of work, technical knowledge, cooperative spirit, integrity, punctuality and initiative. The appraiser would go through the set of factors rating them, for e.g., on a scale 1 to 5 where the highest number would denote the best rating.

Multi-person Comparison: This technique is relative rather than an absolute

measure is used to assess one persons performance against one or more other individuals.

Multi-rater Comparative Evaluation: The total appraisal process consists of

interviews, psychometric testing, simulations of relevant work activities, peer appraisals and appraisals by trained assessors.

Self-appraisal: Self-appraisal has introduced as a mean for empowering employees,

enhancing teamwork and raising awareness of quality. The employees are given appraisal

forms on which they evaluate themselves against criteria such as attendance, productivity, quality, safety, teamwork and commitment.

Who are Raters?

Raters can be immediate supervisors, specialists from the HR department, subordinates, peers, committees, clients, self-appraisals, or combinations of several. Immediate supervisor is the most fit candidate to appraise the performance of his or her subordinates as no one is more familiar with the subordinates performance than his or her superior. Subordinates can assess the performance of their superiors. This helps in assessing an employees ability to communicate, delegate work, allocate resources, disseminate information and resolve intra-personal conflict. Peers are in a better position to evaluate certain facts of job performance, which the subordinates or superiors cannot do. Where superiors, subordinates and clients, make the appraisal it is called 360-degree system of appraisal.

What should be Rated?

Quality: The degree to which the process or result of carrying out an activity approaches in terms of fulfilling the activitys intended purpose.

Quantity: The amount produced, expressed in monetary terms, number of units or number of completed activity cycles.

Timeliness: The degree to which an activity is completed or a result produced at the earliest time desirable. Cost Effectiveness: The degree to which the use of organizations resources is maximized in the sense of getting the highest gain by minimizing the losses.

Need for Supervision: The degree to which a job performer can carry out a job function.

Interpersonal Impact: The degree to which a performer promotes feeling of self-esteem, goodwill and cooperation among co-workers and subordinates.

Factors Determining Performance Evaluation

Halo Error: A halo error takes place when one aspect of an individuals performance influences the evaluation of the entire performance of the individual. Rating employees

separately on each of a number of performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.

Leniency: Every evaluator has his own value system, which acts as a standard against which he makes his appraisals. Relative to the true or actual performance an individual exhibits, some supervisors have a tendency to be liberal in their ratings.

Central Tendency: This occurs when the evaluator assigns average or middle ratings to the employees. The attitude of the rater is to play safe. This safe-playing attitude stems from certain anxieties and doubts about the behavior of employee. Such tendency distorts the evaluation.

Rater Effect: This includes favoritism, stereotyping and hostility. Excessively high or low scores are given only to certain individuals or groups based on the raters attitude towards the rate. Age, sex, race and friendship biases are examples of this type of error. Perceptual Set: This occurs when the raters assessment is influenced by previously held beliefs. If supervisor, for example, has a belief that employees hailing from one particular region are hard working, his subsequent rating of an employee hailing from that region tends to be favorably high.

Spillover Effect: This refers to allowing past performance appraisal ratings to unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for the current period although the demonstrated behavior does not deserve the rating good or bad.

Status Effect: It refers to overrating of employees in higher level job or jobs held in high esteem, and underrating employees in lower level job or jobs held in low esteem.

Appraisal Methods
The last to be addressed in the process of designing an appraisal program is to determine methods of evaluation. Numerous methods have been devised to measure the quantity and quality of employees job performance. Broadly, all the approaches of appraisal can be classified into:

Past oriented Methods, and Future oriented Methods Past Oriented Methods

Rating Scale: This is the simplest and most popular technique for appraising employee performance. The typical rating scale consist of several numerical scales, each representing a job related performance criterion such as dependability, initiative, output, attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rater checks 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 increase. The disadvantages of this method are several. The raters biases are likely to influence evaluation.

Checklist: Under this method, a checklist of statements on the traits of the employee and his or her job is prepared in two columns i.e., a Yes and a No column. All that the 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 advantages of a checklist are economy, ease of administration, limited training of rater and standardization.

Essay Method: In the essay method, the rater must describe the employee within a number of broad categories, such as: The raters overall impression of the employees performance, The promotability of the employee, The jobs thats the employee is now able or qualified to perform, The strengths and weaknesses of the employee, The training and the development assistance required by the employee The strength of the Essay method depends on the writing skills and analytical ability of the rater. A problem with this method is that the ratees may be rated on the quality of the appraisals that they give.

Ranking Method: In this, superior ranks his or her subordinates in the order of their merit, starting from the best to the worst. The HR department knows that A is better than B. The how and why are neither questioned nor answered. This method is subject to the halo effects. Its advantage includes ease of administration and explanation.

Forced Distribution Method: One of the errors in rating is leniency- clustering a large number of employees around a high point on a rating scale. This method seeks to overcome the problem by compelling the rater to distribute the ratees on all points on the rating scale. The method operates under an assumption that the employee performance level conforms to a normal statistical distribution. The major weakness of the forced distribution method lies in assumption that employee performance levels always conform to a normal distribution.

Future Oriented Appraisal

Management by objective: I t was Peter Drucker who gave first the concept of MBO to the world way back in 1954.. Application of MBO in the field of performance appraisal is a recent thinking. One comment made against the approach is that it is not applicable to all jobs an all organization. Objectives are agreed and formulated at the beginning of the period under review, and the appraisee is given the necessary assistance and training to facilitate the achievement of those objectives.

Psychological Appraisal: Large organization employs full-time industrial psychologists. When psychologists are used for evaluations, they assess an individuals future, potential and past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations. The psychologist then writes an evaluation of the employees intellectual, emotional, motivational and other related characteristics that suggest individual potential and may predict future performance. From these evaluations, placements and development decisions may be made to shape the persons career.

Assessment Centers: Mainly used for executive hiring. Assessment centers are now being used for evaluating executive or supervisory potential. An assessment center is a central location where managers may come together to have their participation in jobrelated exercises evaluated by trained observers. Assesses are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities. After recording their observations of ratee's behaviors, the raters meet to discuss these observations. Self-appraisal and peer evaluation are also thrown in for final rating.

360-Degree Feedback: Where multiple raters are involved in evaluating performance, the technique is called 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. The 360-degree appraisal provides a broader perspective about an employees performance. However, there are drawbacks associated with the 360-degree feedback. Receiving feedback on performance from multiple sources can be unapproachable. It is essential that the organization create a non-threatening environment by emphasizing positive impact of the technique on an employees performance and development. More and more number of firms are using 360-degree appraisal technique to assess the performance of their employees.

Appraisal Process
The figure outlines the performance appraisal process. Each step in the process is crucial and is arranged logically.

PERFORMANCE APPRAISAL AT DABUR The System

Performance Appraisal of Grade VI and below in Dabur is carried out through RATING METHOD. Their immediate superior does performance appraisal and HR department reviews it. Performance Evaluation is done by Contribution Enhancement Plan (CEP) at the end of the year. CEP forms the core of Performance Appraisal system of employees (Grade VI and below in Dabur) The performance appraisal of executives in Dabur is carried out through rating system of performance appraisal by their immediate supervisor and then reviewed by latters boss. The performance appraisal system followed at Dabur is Rating Method and Action by Objectives Method.

The broad structure of the system can be laid down as:

The performance appraisal of executives in Dabur is carried out through rating system of performance appraisal by their immediate supervisor and then reviewed by latters boss. The performance appraisal system followed at Dabur is Rating Method and Action by Objectives Method. The broad structure of the system can be laid down as:

 Mechanism
The evaluation under CEP consist of following steps:

Appraiser does the rating after considering individual assessment parameters of every employee. Scores are given against each assessment parameter of an individual in the rating column on the basis of 5-point rating. Rating is reviewed with the reviewer. Total score is computed by adding all the scores. The rating category corresponding to the appropriate range of total scores is selected as overall final performance rating of employees from rating scale table. The individual development form is filled by the Appraisee, which is further utilized for training and development needs of employees, besides giving a direction to his/her career growth in the organization. After completing the appraisal, a constructive feedback should be given to the appraisee by the Appraiser in presence of reviewer. Finally, Contribution Enhancement Plan discusses rating for deciding upon the performance rewards in the form of: Annual Rewards Promotions

CONTRIBUTION ENHANCEMENT PLAN Contribution Enhancement Plan or CEP is a process, which will enable Dabur to improve organizational contribution through enhanced contribution of individual. It aims to establish formal individual objectives and to review subsequent contribution in order to reinforce successful behaviors, to correct shortfalls and to plan training and development activities. The system will ensure that all management staff employees are aware as to what is expected from them. This is a developmental plan for the improvement in contribution of executives towards organizations or SBUS achievement of objectives and its development. It is categorized into 2 parts: Contribution Enhancement Plan {(CEP)A} Contribution Enhancement Plan {(CEP)B} Contribution Enhancement Plan (A) evaluates the contribution of an individual and decides revision in fixed pay and Contribution Enhancement Plan (B) is concerned with variable pay.

Objectives of CEP To establish formal contribution standards. To establish a system that is fact based and minimizes subjectivity in the assessment of an individuals contribution. It should provide constructive feedback for development of an employee. Enable the individual to evaluate his/her own areas of strengths and areas of improvement for being a better manager. Applicability of CEP
The system is applicable to Grade V and above employees of the company. Setting of 3 to 5 BBOs, which are measurable? Related to area/position in which employees operates. Evaluation of contribution and focus on employee development. Business Building Objective (BBOs) Process Business Building Objectives (BBOs) are mutually agreed objectives between an employee and his/her superior. These are tangible business targets, which are measurable. The first stage is for the person initiating the review cycleto understands the business plan so that there is clarity about the direction and priorities of the organization. This will help ensure that individual BBOs support the overall business plan. BBOs Identification and Review Processes BBOs needed to be established the light of the annual business plan. The set objectives must be relevant in context with each individual role. The employees must prepare in advance his/her draft objectives for the next year and contribution against objectives set for the past year. The same need to be carried by the appraisee for discussion with the appraiser. The appraiser will also come prepared with BBOs (both past and future) for the employee. At the meeting they will discuss the year ahead and seek agreement on various objectives. During the same meeting they will also discuss the contribution against the past years BBOs. Once the objectives for the next year are set and agreed upon the same need to be communicated to the employee in writing. The employee shall be evaluated against BBO during mid-year at the end of assessment year. BBOs identification, assessment and review of contribution, assessment of traits and skills, training and development needs and plans will be joint responsibility if the appraisee and the appraiser. The reviewer needs to be satisfied that the key elements of the process have done correctly. Conduct the Interim Contribution Review/s In the mid of the assessment year the appraiser and the appraisee should meet to review the progress against the set BBOs. This should include a discussion of an assessment of whether any BBOs should be amended, deleted or introduced. The Interim Contribution Review is a formal opportunity to reinforce effective behaviors, identify and correct any

problems, give general feedback/advice, and to ensure the annual assessment will be fair. This should be recorded in writing and a copy is given to the individual.

Category of Contribution
The Contribution rating is to be done on a 5-point scale for each set BBO. Their ratings are as follows: Rating Qualitative Description Score Consistently exceed job expectations and standards. Employee contribution has been exemplary and Outstanding (OS) has displayed good grasp of the job and handles 5 additional responsibilities with confidence and ease, while overcoming exceptional challenges or applying unique solutions. Very good contribution and often exceeds job Strong (ST) expectations. A good learner who can handle 4 the job with minimum supervision. Meet expectation on most of the set objectives. Good (GD) Requires occasional supervision and has 3 adequate knowledge of the job. Inconsistent in meeting the set objectives. Needs regular guidance. Has knowledge about Satisfactory (ST) 2 the job however the same needs to be brushed up Contribution is much below the set targets. Below Expectations (BE) Constantly needs supervision and guidance. 1 Processes low level of job knowledge and skills

Contribution Grid
The contribution grid for arriving at final rating is as follows: Final Rating Outstanding Strong Good Satisfactory Below Expectation Total Score Range 4.26-5.00 3.51-4.25 2.51-3.50 1.51-2.50 <1.50

Assessment of Managerial Effectiveness

CEP forms pertain to evaluation of managerial competencies. Performing each job requires application of certain behavior traits/skills. Therefore, it is desirable to assess the appraise on traits/skills. The appraiser will pick the relevant traits/skills applicable to the job/function. Minimum of 6 and maximum of 8 traits/skills must be chosen after careful thought and thereafter rated on 5-point scale as mentioned below: Skills/Traits Strongly Demonstrated Fairly Demonstrated Present but not constantly demonstrated Require significant development Not up to the expectation Ratings 5 4 3 2 1

Contribution Review Discussion

The Contribution Review Discussion is intended to be an enriching process both for Appraise and Appraiser. This is a critical and final stage of the entire CEP and therefore has to be handled with utmost sensitivity, so that maximum value addition is derived from this interaction between Appraise and Appraiser. Contribution Enhancement Plan B (CEP B) After evaluation under Contribution Enhancement Plan (B), variable for each executive is compared through (CEP B). Variable pay is a lump sum amount to be paid to appraise once a year on the basis of the performance. The assessment of variable pay is done using the following table: Criterion Companys performance Unit/SBUs performance Individual performance % of fixed amount if criterion is 100 fulfilled 33% 33% 34%

If the companys performance meets the targeted performance then it will be calculated as: (companys actual performance/companys targeted performance)* 100%.

TRAINING AND DEVELOPMENT

Dabur should hire professionals from outside to head key positions to become a player of repute. In 1998, business was not big and being a family-owned company, there were issues in hiring. Dabur was hiring literally at the rate of 20-30%. They started hiring from campuses only in 1996-97. They went to the campuses and carried out serious brand building exercise. Today their lateral hiring has come down to around 10-15%. Dabur expanded their business and went to IIM for hiring. They also evolved new strategies and a more structured hiring process. This was a huge success and they hired close 100 people in the last two years. The attrition rate at management level is 10% while at the field staff level its 16%. Dabur has also introduced ESOPs for freshers to address the retention issue right at the entry level. Currently, the annual training spend is around Rs 1.5 crore.

Training and Development plays a vital role in CEP, which pertains to identification of training needs through a joint process of discussion between Appraise and Appraiser. The employee himself does this through guidance, feedback counseling and task force assignment including self-development initiatives.

COMPETENCE & COMPETENCIES

Competence, like truth, beauty, and contact lenses, is in the eye of the beholder

WILLIAM SHAKESPEARE Superfluity comes by white hairs, but competency lives longer. WALTER BENJAMIN Avoid competency traps. Do not stay only where you are good at things. Go out and be challenged

Everyone rises to their level of incompetence. Laurence j. peter

Often the desire to appear competent impedes our ability to become competent, because we more anxious to display our knowledge than to learn what we do not know. ANDREW CREIGHTON These are the days when no one should rely unduly on his competence. Strength lies in improvisation. All the decisive blows are struck left- handed.

Eighty percent of success is related to attitude rather than competency

INTRODUCTION TO THE CONCEPT

Competencybased HR is the essence of good HR. When all the activities of HR are linked through the competence matrix, there is a clear ideological shift from the management and development of human capital. When Competency for every role is well-defined (technical as well as behavioural), right from the time of recruitment and people are shown a particular position. And this is enabled by enhancing competencies through Training and Development. There are different approaches to competency analysis. While some competency studies take months to complete and result in vague statements that have little relevance to people in the organization but if done well they provide the following benefits to the organizations: Increased productivity; Improved work performance; Training that is focused on organizational objectives; Employees know up front what is expected of them; Employees are empowered to become partners in their own performance development; and The approach builds trust between employees and managers. Competency approach is a foundation upon which to build a variety of HRD initiatives. This adaptable, flexible, and scalable tool has been used for the following benefits to the organization: Provides employees with a detailed job description Develops job advertisements Assists in personnel selection Assists in performance appraisals Targets training to skills that require development Gives credit for prior knowledge and experience Focuses on performance improvement Promotes ongoing employee performance development Provides a systematic approach to planning training

Customizes training delivery to the individual or organization Evaluates suitability of training programs to promote job competence Identifies employees readiness for promotion Guides career development of employees Develops modular training curriculum that can be clustered as needed Develops learning programmes. The competency based job analysis involves the following steps: Identification of major job functions; Identification of skills performed within each of the major job functions; Generation of several drafts to be reviewed by employees and employers and modified to accurately reflect the skills performed on the job; Development of occupational analysis chart. The chart is two-dimensional spreadsheet chart displaying the major job functions and skills; and Identification of performance standards for each skill using a competency-based rating scale describing various levels of performance.

COMPETENCY MAPPING Competency approach to job depends on competency mapping. Competency Mapping is a process to identify key competencies for an organization and/ or a job and incorporating those competencies throughout the various processes (job-evaluation, training, recruitment) of the organization. A competency is defined as a behavior (communication, leadership) rather than a skill or ability. The steps involved in competency mapping are: Conduct a job-analysis by asking incumbents to complete position information questionnaire (PIQ). This can be provided for incumbents to complete, or used as a basis for conducting one-on-one interviews using the PIQ as a guide. The primary goal is to gather from incumbents what they feel are the key behaviors necessary to perform their respective jobs. Using the results of the job analysis, a competency based job description is developed. It is developed after carefully analyzing the input from the represented group of incumbents and converting it to standard competencies. With a competency based job description, mapping the competencies can be done. The competencies of the respective job description become factors for assessment on the performance evaluation. Using competencies will help to perform more objective evaluation based on displayed or not displayed behaviors. Taking the competency mapping one step further, one can use the result of ones evaluation to identify in what competencies individuals need additional development or training. This will help in focusing on training needs required to achieve the goals of the position and company and help the employees develop toward the ultimate success of the organization.

What are competencies?

Competencies is the collection of success factors necessary for achieving important results in a specific job or work role in a particular organization. Success factors are combinations of knowledge, skills, and attributes that are described in terms of specific behaviors, and are demonstrated by superior performers in those jobs or work roles. Attributes include: personal characteristics, traits, motives, values or ways of thinking that impact an individuals behavior. Competencies in organizations tend to fall into two broad categories:

PERSONAL FUNCTIONING COMPETENCIES

These competencies include broad success factors not tied to a specific work function or industry (often focusing on leadership or emotional intelligence behaviors).

FUNCTIONAL/TECHNICAL COMPETENCIES
These competencies include specific success factors within a given work function or industry.

CLARITY IN THE CONCEPT, TERMS AND DEFINITIONS

Competence Oxford Advanced Learners Dictionary defines competence as being competent, it means having the necessary knowledge, ability, skill and authority. Websters Students Dictionary defines Competence as sufficiently able or qualified. Encarta World Dictionary defines Competence as ability to do something well or to a required standard. Social Science Encyclopedia defines a competent person as someone who possesses the necessary skills to produce the desired effects. According to Longmans Dictionary of Contemporary English, Skill is an ability to do something well.

The definitions do not distinguish between the inborn and inherent and the acquired abilities that people possess. This may, therefore, be treated as commonsense meanings of the terms. The inborn, inherent abilities emerge as the natural traits of a person and these pertain both to the mental and physical domain. But the psychological aspects may dominate the acquired qualities. The acquired qualities have to be learnt, practiced and absorbed. These may involve largely mental and partly physical use of hands. The artisans, craftsman, artists and mechanics are the typical illustrations of skilled human resources.

Competence in normal parlance is synonymous to ability, skill, fitness, aptitude, proficiency, know-how, experience and expertise. Competence is a range of, skill, knowledge, ability, dexterities and attitudes that are evident in a persons action. In a business context, the definition that addresses the importance of the problem proposed to be studied is a specific, identifiable, definable and measurable knowledge, skill, ability and/ or deployment related characteristic (e.g.: attitude, behavior, physical ability) which a human resource may possess and which is necessary for, or material to, the performance of an activity within a specific business context. Therefore competence is the underlying characteristic that can be shown to predict outstanding performance on the job. The determinants would be characterized as knowledge and skill. Competence can be termed as the application of knowledge and the interpersonal, decision-making, and psychomotor skills expected for the nurses practice role, within the context of public health, welfare and safety. Capability is define as the quality of being capable or a feature, quality that may be used or developed. So, capability can be termed as a dormant ability developed through learning, training and experience. It is inherent, inbuilt and natural ability that can be acquired and developed. This comprises both competence and competency. So, capability is inherent and natural, since certain traits are embryonic and certain traits are accumulated and sharpened through constant use. So some traits more or less can be developed. For example Voice Modulation to some extent can be acquired. So it would be right to highlight this point that nothing can be created in vacuum, even knowledge was created by inherent mental ability. So ability and capability are used synonymously. Ability is a derivative or consequence of knowledge and skill. According to Websters Dictionary ability is defined as the condition or power of being able or talent or skill. Oxfords Advanced Learners Dictionary defines ability as capacity or power to do something physical or mental. According to Longmans Dictionary ability as something that you are able to do especially because you have a particular mental or physical skill. So, ability can be defined as the condition, quality or feature that enables a person to perform a certain task or the possession of qualities required to do something. Aptitude and Attitude are processes of individual behavior that can be induced or imbibed through organizational motivational schemes and a supportive work culture. Aptitude is the natural ability or inclination to make that action possible. Both these characteristic have learning and innate dimension to it. They can be inherited or acquired. Aptitude can be developed through a positive work culture while ability is a consequence of application of knowledge, skill and traits. The impact of some of these characteristic can be measured in physical or quantifiable terms. The psychological or behavior related characteristic can be measured in terms of the consequences the act leads to. \Knowledge is the act, fact or state of knowing. Knowledge, which is the highest degree of the speculative faculties, consists in the perception of the truth of affirmative or negative propositions Locke. In philosophy, the theory of knowledge is called

epistemology and deals with such questions as how much knowledge comes from experience or from innate reasoning ability; whether knowledge needs to be believed or can simply be used; and how knowledge changes as new ideas about the same set of facts arise. Therefore knowledge could be acquired from learning (qualification) or experience or could be derived from a persons innate reasoning ability. The knowledge domain of the Human Resource manager has to be classified as those derived from academic qualification or learning, those acquired through experience and those imbibed through the persons own innate abilities. Skill is the proficiency in deliverance of any action. To determine the level of competency required skills standards have to be specified. An accepted definition of skill standard is a standard that specified the level of knowledge and competence required to successfully perform work-related functions within an occupational cluster. This is the definition contained in the Goals 2000: Educate America Act, which authorized the creation of the National Skills Standard Board. Simply stated; a skill standard is what you have to know, and be able to do, to be successful at work. Subsequent research by the Institute for Educational Leadership(US), has further refined the definition to read A skill standard is a competency unit which includes: 1) a description of the segment of work for which the standard applies; 2) a listing of the essential knowledge and skills that are critical to the work segment; 3) a listing of the essential tools and equipment that are critical to the work segment; and 4) the criteria to measure competency in performing the work segment. Skills can be innate or acquired through formal or non-formal training. The above explanation emphasizes ability to perform a given task as the basic component of a skill, but the competency cannot be acquired instantaneously. It involves time, since skill can be acquired through learning or training and by doing so. Skill enables a person to perform an activity or accomplish a task. Skills and their effects may differ from profession to profession. In the teaching profession, the skill required ids the command over contents, language and an unambiguous expression, whereas the desired effects of teaching is absorption of the knowledge by the students. The learners are required to understand the contents of what is taught and to whom, whereas the absorption shall warrant the use of the knowledge so acquired in the designated manner. Use may involve applications to find solutions to the problems. To determine the level of competency; standard required for the skill has to be specified. Standard or norm pertain to a certain minimum quantum of work and/ or a specific level of quality that is expected to be accomplished in a given time span. An accepted definition of standard is that a standard specifies the minimum level of knowledge and skill and hence competence that is required to successfully perform the given functions related to the specific job within an occupational cluster. Thus Competence, in technical terms, should therefore be taken to standard for knowledge, skill and ability to complete a specific task, to undertake particular activity and/or perform certain functions and duties that pertain to a given job. The ability and skills are, however, acquired through education, training and experience. Education endows a person with knowledge, while training equips a person with skills, while experience provides both knowledge and skill through on the job training that is learning

by doing. Acquisition of efficiency occurs by the repeated performance of the same activity. Competence is reflected in the application of the capabilities and the outcome can be measured that shall reflect the degree of expertise, proficiency on the one hand, and the actual performance on the other. Competence, will therefore, be reflected both by the quantum of work done or output produced and the quality of the outcome. Effect or outcome of the competence has both quantitative and qualitative dimensions, which are measurable in time and space. The measurement may, however, be relative or absolute, cardinal or ordinal and it may even be nominal in some cases. Competency is the ability necessary to do something to a desired standard so as to realize the specified objectives. Necessary means without possession of which the performance of the activity cannot be undertaken at all, and even if it is undertaken, it will not lead to realization of the specified objectives to the fullest extent. Level of ability can be decided in the light of the consequences or outcomes related to the initially defined objectives. But the fulfillment of goals or achievement of targets is a matter of degree and direction both of which lead to the desired outcomes. Just as the source of the competence inputs into the performance of jobs may be too qualitative to measure or quantify, certain outcomes may also be qualitative, and therefore, may not be quantifiable precisely. Capability is the know-how to do how of a job, to perform a task and to understand a specified activity. Naturally, both competence and competency, the essential elements of capability pertain to the knowhow. Competence refers to all those factors that are embodied, innate and inherent in the persona of a person. These do not refer to the cultivated and acquired traits of human beings. As against competence, competency refers to the acquired, cultivated and hence developed traits of a person that enables him to undertake specified activities, accomplish tasks and perform particular jobs. The accession and acquisition of competency are based on knowledge, experience and training, through environment, incentives and motivation may accentuate the same. The degree and quality of the elements relating to competency may partly be dependent upon hereditary factors and these may partly be a matter of time, labor and efforts invested in their acquisition. Innate qualities are those which are imbibed within a person and an integral part of ones personality. Innate qualities are include temperament, honesty, intuition, commitment, sense of responsibility, capacity to act independently, ability to coordinate and cooperate with others, reliability and confidentiality, capacity to absorb new knowledge and capacity to act as agent of change, and or adapt to the emerging change. These qualities pertain to aptitudes, attitudes and approach which are inbuilt part of ones personality and they cannot be acquired. These traits depend mainly on a persons upbringing, environmental factors, educational system etc. Thus competency may not be totally independent of competence possessed by a person. Acquired traits are those which are not built to ones personality, but these can be ingrained in ones persona by constant efforts and/or use. These traits can be acquired through learning and training, experience, on the job learning, and from education. Exogenous sources, and outside agents are required for acquiring these traits. Besides, investment of resources is involved in the acquisition. But cultivated traits are ones in which no external force/agent is applied but is developed by prolonged use of particular trait or constant, conscious efforts by one may emulate others. Cultivated traits

include habits and hobbies, work schedule adherence to or defiance of the system or values. These facets are also partly the elements that constitute the competence. Capability is related to functional domain, and which is the core substance of human resource, may be displayed through a more detailed flow chart/ diagram to display its constituent elements. Competence involves the demonstration of skills, knowledge and abilities on the basis of the following principles: Consistency(the ability to repeat practice techniques and outcomes) Independence(the ability to practice without assistance from others) Timeliness(the ability to practice in time frame that enhances patient safety) Accuracy(the ability to practice utilizing correct techniques and to achieve the intended outcomes) Appropriateness(the ability to practice in accordance with clinical standards and protocols outlined within the practice jurisdiction

COMPETENCY MAPPING: In mathematics, mapping is defined as a process by which the relationship between the two sets in operationalised so that the members of one set become the members of the other set. In other words, the members of the set one are functionally related to the members of the second set. In other words , the members of the set one are functionally related to the members of the second set. In geography, mapping is the process of identification and display of information regarding locationms of entities and their spatial relations. Mapping also refers to the map making and the use of maps. If we borrow this concept of mapping from geography in the context of the mapping of competencies of HR managers, then mapping may relate to the identification of elements or features of the persona which competency comprises of. Then, the mapping will refer to the collection, display and dissemination of information about the elements or facets that constitute the competence or competency or capability. Therefore, mapping may be defined as the process of identification, explanation and elaboration and display of the nature and measurement of the dimensions of such innate as well as the acquired traits of the persona which endow and enable a person to undertaken specific activities and perform the predefined functions and accomplish a prior assigned tasks that pertain to the particular jobs.

Three other definitions are needed: Competency Map A competency map is a list of an individuals competencies that represent the factors most critical to success in given jobs, departments, organizations, or industries that are part of the individuals current career plan.

Competency Mapping Competency Mapping is a process an individual uses to identify and describe competencies that are the most critical to success in a work situation or work role.

Top Competencies Top competencies are the vital few competencies (4 to 7, on average), that are the most important to an individual in their ongoing career management process. Importance to the individual is an intuitive decision based on a combination of three factors: past demonstrated excellence in using the competency, inner passion for using the competency, and the current or likely future demand for the competency in the individuals current position or targeted career. Although the definition above for competency mapping refers to individual employees, organizations also map competencies, but from a different perspective. Organizations describe, or map, competencies using one or more of the following four strategies: Organizations-Wide(often called core-competencies or those required for organizations success) Job Family or Business Unit Competency Sets Position-Specific Competency Sets Competency Sets Defined Relative to the Level of Employee Contribution (Individual contributor, manager, or organizational Leader)

MAPPING PROCESS First stage of mapping requires understanding the vision and mission of the organization. This is necessary for specification determination Positions to be mapped are identified. A preliminary project plan is developed during this step to ensure that all the key stakeholders are involved in the process and that the appropriate activities and communication plans are established to support the development of the maps. Second stage requires understanding from the superior performs the behavioural as well as the functional aspects required to perform job effectively. This involves Data Collection Information is gathered to identify the attributes and competencies required for each position. Data is collected to determine the skills, abilities, and personal traits required for success in the position being mapped. This data can be collected through one-on-one interviews with job content experts and their managers, focus groups with incumbents and managers and internal and external customer interviews. Tool for the first and second stage would be a structured interview. Third stage involves through study of the BEI Reports/ Structured Interview Reports Identification of the competency based on competency framework Measurement of competency Required levels of competency for each job family

Development of dictionary which involves detail description of the competency based on the indicators. Care should be taken that the indicators should be measurable and gives objective judgment. All information gathered in the data collection phase is analyzed. Attributes and competencies are identified and behavioral descriptions are created for each. In addition, optimal areas of performance are identified and behavioral are created for each. In addition, optimal areas of performance are identified according to organizational and market requirements. The result of this step is a draft of the competency map. The map is then reviewed to ensure it meets the current and future needs of the organization. Competencies, attributes, and their corresponding descriptions are evaluated for how accurately they describe performance requirements and to ensure they are aligned with and support the organizations objectives. Fourth stage requires preparation for assessment: Methods of assessment can be either through assessment centers or 360 degree feedback. If assessment center is the choice for assessment then tool has to be ready beforehand Tools should be objectively measure the entire competency required. Determine the type of the tools for measuring the competency. Prepare the schedule for assessment. Training to the assessor should indicate their thorough understanding of the competencies and the tools and also as to how the behavior has to be documented. Fifth stage involves conducting assessment centre. Usually it is a two day program which would involve giving a brief feedback to the participation about the competencies that has been assessed and where they stand. Sixth stage involves detailed report of the competencies assessed the development plan for the developmental areas.

COMPETENCY MAPPING AND ASSESSMENT is a process designed to consistently measure and assess staff performance as it relates to the expectations of the organization. A competency map is made up of four areas of competence attributes:

Personal Attributes The characteristics which enable the employee to attract others to well reasoned and logical points of view, to effectively communicate, and to relate to others. These include: Insight Integrity and ethics Continuous personal Improvement Commitment and Performance Stability Interpersonal orientation Project Management Skills Innovative/ Creative thinking Presenting/ speaking

Business writing Professional Demeanor

Leadership Qualities The skills that allow the employee to assume a position of influence by assembling and leveraging a variety of resources that address problems and opportunities throughout the organization. These include: Strategic thinking and Planning Facilitating Negotiating and Persuading Teamwork Coaching and empowerment Problem solving Decision-making Cross-functional perspective. Broad Business perspective The body of knowledge that encompasses an understanding of the organization and its industry. These include: The organization and industry knowledge Internal and external Consulting Business relationships/ partnerships Best Practices Current & Emerging Management Practices Risk management Mergers, Acquisitions and strategic alliances Management Accounting Organizational Systems and Processes

Functional Expertise - The traditional technical skills that the employee should possess and which form the basis for their unique ability to understand an organization from a perspective that others cannot. For e.g. A finance professional should have knowledge in the following: Financial analysis Treasury Management Cost Management Human Resources Taxation Information Technology Control environment Financial and statutory Reporting and accounting Principles Internal audit Budgeting, Forecasting and Business planning

Once a competency map has been developed and validated, it can be used as a tool to manage, evaluate, and develop employee performance; recruit and select individuals that possess these skills required in the position; and compensate individuals based on their demonstrated performance.

USE OF ASSESMENT TOOL The tool will continually evolve. As needs change and new concepts and practices emerge, the model to can be updated to reflect the constantly changing world in which we live and work. The model can be personalized for individual or corporate use. Different attributes may be selected or omitted by the employee based on his or her role in the particular organization. Upon review of the various models, you will find that the first two competency categories (personal attributes, leadership qualities) as well as part of the third competency category (broad business perspective) are common to almost all employees. The competencies within the fourth competency category, functional expertise, vary based on the functional area in which the employee works.

Research Methodology
Title A Case Study on the study of performance appraisal and its linkage to competency mapping. Objective objective is to know that existing performance appraisal system is well communicated to all employees and it helps in improving productivity and individual growth.

Data Collection
Primary Data: Questionnaire, Interview Secondary Data: Data available in office (Sahibabad unit, Ghaziabad), data collected from internet.

Research Design: Descriptive

Problem identification Problem categorization Data collection on performance appraisal system exercised at Dabur India Ltd.

Study of performance appraisal of junior officer stores at grade 6.

Convenience sampling It is purposive or non-probability sampling This sampling method involves deliberate or purposive selection of particular units of the universe for consulting a sample, which represents the universe and when elements are selected for inclusion in the sample based on the ease of access, it is called convenience sampling Sampling plan It is very difficult to collect information from every member of a population. As time and costs are the major limitation that the researcher faces. One sample is taken that is of one junior officer stores taking into account convenience sampling technique. This sampling method involves deliberate or purposive selection of particular units of the universe for consulting a sample, which represents the universe and when elements are selected for inclusion in the sample based on the ease of access, it is called convenience sampling. The source of collection of Primary data is Questionnaire, interview. The source of collection of Secondary data is presentation, booklet and links to Internets.

DATA SOURCE

Procedure adopted for the study (analysis and interpretation)

Firstly we have studied the performance appraisal system which is followed at Dabur India Ltd at various levels during the study of which we found that absence of competency mapping. Then we have taken one of the job position at Dabur which lies at grade 6 (junior officer stores) and studied his performance appraisal done by his immediate supervisor. After the study of performance appraisal on the basis of various parameters mentioned we have identified his competencies which are important for his better performance. Different Questionnaires are got filled by one of the stores officer and his immediate superior who is responsible for doing performance appraisal of junior officer stores. Then competency mapping is done matching the competencies identified of junior officer stores and competence of job holder and developing competency based job description.

Following is given the format in which the performance appraisal system of junior officer stores is done at Dabur India Ltd. CONTRIBUTION ENHANCEMENT PLAN (GRADE VI & BELOW- OPERATIONS) DABUR INDIA LTD Employee Details

Name Designation Division/department Employee code Grade Review period

Narayan Singh Khati junior officer Stores 0054 VI April to March Weight ages ( B) Ratings

ASSESMENT PARAMETERS
Parameters (details out deliverables against each parameters below)

Review Sco and re assessme (E) nts (to be filled in by appraise r)

Final score(F=B *E)

PRODUCTIVITY , SERVICE LEVEL (maintenance of accounting records providing vouchers to auditors)

25%

Outstand ing -5 Strong- 4 Good -3 Satisfacto ry- 2 Below expectati on -1

1.To ensure loading of finished goods as per pick

list released. 2. To ensure different goods are loaded in separate lots 3. To ensure batch wise dispatches and planning of loading according to the goods in pick list. 4. To ensure that the goods are loaded in a truck in a proper way as per norms. 5. To ensure that the goods are taken out as per pick list after proper verification and counting. 6. To ensure planning of goods as per list for a full truck load so that full place of truck should be covered and maximum load should be transferred according to transportation norms. 7. Before loading it should be ensured that the surface of truck should be neat and clean. 8. Ensure that heavy weighted goods should be loaded . QUALITY 10% IMPROVEMENT/ADHE RENCE TO GMP (Binding of vouchers in systematic manner)

Outstand ing -5 Strong- 4 Good -3 Satisfacto ry- 2 Below expectati on -1

1.To ensure all the finished goods are receieved and dispatched as per batch. 2. To ensure juice and home care products,

cosmetics products are loaded in separate trucks.

COST REDUCTION AND WASATAGE ELIMINATION (Dispatches /courier of cheques etc) (Operation of photo copier) (Voucher binding) 10% Outstandi ng -5 Strong- 4 Good -3 Satisfacto ry- 2 Below expectatio n -1

1.To ensure proper utilization of contract workers 2.To finish work with using minimum manpower 3.To finish the loading with minimum time comsumption for a truck
UPKEEP OF MATERIALS /MACHINERY/RECORDS ETC (Proper maintenance of records) 10% Outstandi ng -5 Strong- 4 Good -3 Satisfacto ry- 2 Below expectatio n -1

1.To ensure all finished goods stacked on pallets as per stacking norms. 2. To ensure all the finished goods left after loading kept back to its proper place. 3.Maintainig proper loading record for each and every truck loaded

SAFETY AND HOUSEKEEPING (keeping kitchen/records in order)

10%

Outstandi ng -5 Strong- 4 Good -3 Satisfacto ry- 2 Below

expectatio n -1

1.To take all safety precautions while handling of finished goods. 2.To maintain hygienic and cleanliness conditions. 3. To ensure presence of conductor at the time of positioning at the platform.
CONTRIBUTION TO TPM, KAIZEN,5S,OTHER DEVELOPMENTAL ACTIVITIES (record keeping in orderly manner) 5% Outstandi ng -5 Strong- 4 Good -3 Satisfacto ry- 2 Below expectatio n -1

1.To ensure warehouse is maintained in orderly manner. 1.To ensure documents are orderly filed 1.To ensure overall quality improvement.

70%

Total final score

ASSESMENT PARAMETRES - BEHAVORIAL

Parameters

Weightage (30%) (B)

Ratings

Review and Score Final assessment(to (E) score(F)=B*E be filled in by appraiser)

Behavioural Teamworking

10%

Outstanding -5

Effectiveness of work relationship with subordinates peers & superiors. Contributes to group performance to meet objectives/targets. Conduct/discipline 5% Regular and punctual in attendance. Good behavior with all. Follow company rules. No integrity issue. Communication 5% The desire and ability to share available information with all concerned. Uses effective communication skills to get the job done. Attitude 10% Approach towards work & learning, colleagues, superiors, commitment towards work and willingness to help others. 30%

Strong- 4 Good -3 Satisfactory2 Below expectation -1 Outstanding -5 Strong- 4 Good -3 Satisfactory2 Below expectation -1 Outstanding -5 Strong- 4 Good -3 Satisfactory2 Below expectation -1 Outstanding -5 Strong- 4 Good -3 Satisfactory2 Below expectation -1 Total Final Score Grand Total Score(B+C)

Signature of appraiser Date

 Individual Development Plan (IDP)

Overall Feedback to be communicated to the Assessee What are employees training needs? Justification for promotion, if recommended .(strictly follow the Promotion policy guidelines) If recommended, clearly specify current jobs alongwith proposed additional jobs to be given post promotion.

Overall performance Review recommendations ( Please refer to the grid and contribution rating)
5-Outstanding 4-Strong 3-Good 2-Satisfactory 1-Below Expectation

Appraiser Comments-

Reviewer CommentsSignature of Appraiser Signature of Reviewer

Date ----------------

Now on the basis of parameters given in Contribution enhancement plan of junior officer stores we have identified his competencies as

Functional competencies-

1. Parameter- Productivity and service level

Competencies(1) Planning (2) Physical counting & verification (3) Written communication (4) Proper space utilization (5) Ensure goods are loaded as per Plan. (6) In-time loading & unloading

2. Parameter-

Quality improvement /Adherence to GMP. Competencies- (1) Proper placement of goods. (2) To ensure batch-wise goods are (3) Dispatched and received.

3. ParameterCompetencies

Cost reduction and Wastage Elimination. Effective manpower utilization Minimize time consumption in loading/unloading activities.

4. ParameterCompetenciesplatform.

Safety and house-keeping (1) to take all safety measures while handling of finished Goods. (2)To maintain hygienic cleanliness conditions. (3) To ensure presence of conductor at the time of positioning at the

5. ParameterCompetencies-

Contribution to TPM, Kaizen, 5S, Other developmental activities. (1) to ensure warehouse is maintained in orderly manner. (2)To ensure documents are are orderly filed. (3)To ensure overall quality improvement.

Personal Competencies of junior officer stores as per behavioural parameter.

Team working Discipline Positive Attitude Commitment Interpersonal orientation Effective communication Self management

Analysis and interpretation

(Of the questionnaire filled by the junior officer stores) 1. Do you know that performance appraisal system is followed at Dabur India Ltd and its also applicable to your position? Yes Partially Not at all Ans (a) Yes By the above answer it is analyzed that employees are aware about performance appraisal carried out at their level.

2. Which method is used in appraising your performance? 360 degree method Action by objectives method Rating Method Others, please specify------------------------------Ans. Action by objectives method It is analyzed that junior officer stores also know about the process which is followed at his level for performance appraisal. It also came to the knowledge that till last year rating method was used for appraising the performance of the employees of grade 6 and below it and from this year only action by objectives method is used.

3. Who appraise your performance? 1) Your immediate supervisor 2) Human resource department 3) Head of the department a) 1&2 b) 1 & 3 c) 2 & 3 ans. (b) 1 & 3 it is analyzed through this answer that employee is knowing well that his performance will be appraised whom. The fact came to light that performance is appraised by immediate supervisor and concerned head of the department and then it is reviewed by the human resource department.

4. Do you receive feedback on your performance? Yes Occasionally Not at all

Ans. (a) Yes It is analyzed that junior officer stores receive feedback, But during the study it came to light that feedback is not given on a regular basis i.e daily, weekly, monthly or quarterly but it is given on an annual basis which is not useful.

5. Who gives you feedback? a) Your supervisor b) Your department head c) Human Resource department ans. (b) your department head

it is analyzed that junior officer stores is known about the source of feedback to him and in case of knowing his own performance he can easily contact his concerned departmental head.

6. Does feedback session structured or informal? a) Structured b) Informal ans. (a) structured Feedback session of junior officer stores is structured which takes place on an annual basis which is done so as to complete the performance appraisal process.

7. With the existing performance system, do you able to know which competencies your job demands and you need to develop? (Yes or no) Yes No Ans. Yes It is analyzed that junior officer stores is of the view that he is able to know the competencies through the existing performance appraisal but during the study I came to know that it is myth they only get to know about the parameters of performance appraisal system but not the competencies which are essential for performing the job task well.

8. If No, do you feel that knowing the competencies will help you in improving your performance? (Yes/no) yes no ans. Answer to this question is not answered but it is evident that knowing the competencies will help in improving the performance.

9. What is your opinion that competencies should be well-defined? a) Yes b) To some extent c) Not at all

ans. (a) Yes it is analyzed that junior officer stores is of the opinion that competencies should be well-defined but it is not the task of a officer on his own for the this purpose concept of competency mapping should be introduced.

10. Can knowledge of competencies to you can contribute towards your increased knowledge and higher productivity? a) Yes b) To some extent c) Not at all ans. (a) yes It is analyzed that competencies are important and helps in increasing knowledge and higher productivity as by understanding competencies only we will come to know the gaps what we have and what should we have, and will try to overcome those gaps through which increased knowledge and higher productivity can be attained.

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Analysis and interpretation (of the questionnaire filled by immediate supervisor)

1. According to you existing PMS is scientific and capable to measure actual performance of junior store officer Completely disagree 1 Disagree 2 Not sure 3 Agree 4 Completely agree 5 Ans. Agree 4 It is analyzed that supervisor is of the view that existing PMS is capable of measuring the actual performance of the junior officer stores but not completely as it shows that there some loopholes which needs to be tightened up.

2. Do you think existing performance appraisal helps employee to improve his performance level? Completely disagree 1 Disagree 2 Not sure 3 Agree 4 Completely agree 5 Ans. Agree 4

Yes existing performance appraisal helps in improving the performance level as through the performance appraisal system only we comes to know about the mistakes done while performing the task or new ways &techniques to do the task in amore proper manner saving time and energy which in turn helps in improving performance level of the employees.

3. What are the competencies that job of junior store supervisor are essential Technical / professional 1. Planning 2. Proper placement of goods 3. Written communication

Behavioral 1. Team working 2. Effective manpower utilization 3. Planning

Ans. Technical/ Professional Planning Behavioral Team working Essential technical/ professional and behavioral competencies are planning and team working as without both of these tasks and responsibilities of the junior officer stores would be difficult to perform.

4. What are the competence that job holder should possesses in order to meet his responsibility
successfully Self management Discipline Effective communication Ans. Effective communication is surely very important competency so as to meet the responsibilities successfully as absence of which junior officer will not be able to explain the tasks to his co-workers and juniors (of operating level) well nor will be able to communicate the areas of concern to his supervisors or superiors.

5. Do you think that understanding competencies of particular job position makes it easy to hire employees possessing appropriate knowledge, skills and attitudes? Fully agree Partially agree Not sure Ans.(a) Fully agree

Yes of course understanding competencies will help to hire only those candidates to the job position that possess required competencies which are essential to do the task more better than those candidates who do not possess those competencies.

6. Do you make competency based job description? Yes No Do not know Ans (a) yes Supervisor has said yes but during the study it is known that competency concept do not exists in the company.

7. In your opinion competency mapping of junior officer stores is a useful activity? Yes To some extent Do not know Ans. (a) Yes Yes it will prove to be a useful activity as it will help in inculculating the required competencies in the junior officer stores.

8. Competency mapping should be done at the time of recruiting the employee Yes To some extent Do not know Ans. (a) Yes Yes it should be done at the time of recruiting the officer as it will help in recruiting the best candidate for the job and will also save the money of the company which the company will otherwise will spent on the candidate in training for the presence of competencies in the candidate.

9. Is competency mapping exercised at Dabur? Yes Not at all Partially Ans. Partially No concept of competency mapping is not exercised at Dabut at its fullest but is done at higher level ant that too not on paper but only in mind of the senior managers. At the operating level nothing of this sort exists.

10. In your opinion concept of competency mapping should be introduced? Yes Partially Not at all Ans.(a) Yes Yes concept of competency should be introduced at Dabur India Ltd as it will surely contribute towards the increased knowledge and higher productivity of the employees of the company and in turn will contribute towards the success of company also.

FINDINGS
Performance appraisal system is followed at every level at Dabur India Ltd. Employees of the company are well aware of the performance appraisal system and method adopted. Performance appraisal is done on an annual basis. Performance is appraised by the immediate supervisors or superiors as well as concerned department heads and then the appraisal is reviewed by the human resource department. Its clearly depicting that the existing performance appraisal system does not support significantly in improving the performance. Possibly it happens because it does not mark demarcation between the competencies and competence. The existing PAS does not measure the competencies. It measures competence only.

Although officers concerned had given the feedback that at Dabur competence based job descriptions are developed but the way job description is explained , its simply focused on KRAs rather than competencies.

Performance appraisal is done at a good pace but concept of competency mapping is not practiced in the company. The need is there to introduce the concept as it will benefit the organization to a great extent.

In my project I have done the competency mapping of junior officer stores as I consider it as a very responsible job position, and which needs competency mapping.

CONCLUSION

Performance appraisal system is practiced and is well communicated to the employees of the company but there is no concept of competency mapping in such a big organization. Superiors feel the need of this concept and want it to get introduced in the company and they should go for it as soon as possible. Competency mapping of junior officer stores is as follows which completes my conclusion of the study done at Dabur India Ltd.

RECOMMENDATIONS
Concept of competency mapping should be introduced in the organization. To start with one category and one level of employees should be taken for study, developing & implementation. Start with first preparing Competency Based Job Description Arrange work-shops at plant level to communicate and importance of competence mapping for their individual growth and org growth as well.

Competency mapping will also contribute towards the training and development of the existing employees.

Following is the suggestive competency mapping of the junior officers stores which can be followed by Dabur India limited
COMPETENCY BASED JOB DESCRIPTION COMPETENCIES FOR JUNIOR OFFICER STORES FUNCTIONAL COMPETENCIES1.planning 2.physical counting &verification 3.proper space utilization 4.intime loading and unloading 5. Ensure batch-wise goods are dispatched and received. 6.Ewffective manpower utilization 7.safe handling of finished goods 8. Maintaining hygiene and cleanliness. 9.Documents are orderly filed 10. Proper warehouse maintenance. COMPETENCE OF JOBHOLDER

Junior officers store is overall responsible for stores and proper warehouse maintenance. He accountable for dispatching batch wise goods, and preparing & maintaining all the documents related to the dispatch of goods. He is also responsible for coordinating and practicing effective inter-personal communication with process owners of various departments. PERSONAL COMPETENCIES1.Insight & judgment

Experience in similar line Judgmental ability Ability to think beyond the present Ability to make and lead the team Having strong interpersonal abilities. Confident and believing in learning and improvement.

2.Continuous personal improvement 3.Commitment and performance stability 4..Interpersonal orientation 5.Project management skills

BEHAVIORALCOMPETENCIES

1.Team working 2. Motivator 3.Value Driven 4. Empathy 5.Ways of thinkings 6.Discipline

BIBLIOGRAPHY
www.daburindia.com

www.google.com Human Resource management by V.S.P Rao. Competency mapping by Seema Sanghi

DABUR INDIA LTD

SAHIBABAD UNIT, GHAZIABAD

(JUNIOR OFFICER STORES) PERSONAL DETAILS NAME AGE-. QUALIFICATION-.. GRADE- EMP CODE-. DESIGNATION-.. DIVISON/DEPARTMENT... 1. Do you know that performance appraisal system is followed at Dabur India Ltd and its also applicable to your position? Yes Partially Not at all

2. Which method is used in appraising your performance? 360 degree method Action by objectives method Rating Method Others, please specify-------------------------------

3. Who appraise your performance? Your immediate supervisor Human resource department Head of the department a) 1&2 b) 1 & 3 c) 2 & 3 4. Do you receive feedback on your performance? Yes Occasionally Not at all

5. Who gives you feedback? a) Your supervisor b) Your department head c) Human Resource department

6. Does feedback session structured or informal? a) Structured b) Informal 7. With the existing performance system, do you able to know which competencies your job demands and you need to develop? (Yes or no) Yes No

8. If No, do you feel that knowing the competencies will help you in improving your performance? (Yes/no) yes no

9. What is your opinion that competencies should be well-defined? a) Yes b) To some extent c) Not at all 10. Can knowledge of competencies to you can contribute towards your increased knowledge and higher productivity? Yes To some extent Not at all

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DABUR INDIA LTD SAHIBABAD UNIT ,GHAZIABAD (IMMEDIATE SUPERVISOR OF JUNIOR OFFICER STORES)
PERSONAL DETAILS NAME- AGE-.. QUALIFICATION-.. GRADE-.. EMP CODE-. DESIGNATION-. DIVISON/DEPARTMENT-.. 1. According to you existing PMS is scientific and capable to measure actual performance of junior store officer Completely disagree 1 Disagree 2 Not sure 3 Agree 4 Completely agree 5

2. Do you think existing performance appraisal helps employee to improve his performance level? Completely disagree 1 Disagree 2 Not sure 3 Agree 4 Completely agree 5

3. What are the competencies that job of junior store supervisor are essential Technical / professional Planning Proper placement of goods Written communication

Behavioral Team working Effective manpower utilization Planning

4. What are the competence that job holder should possesses in order to meet his responsibility
successfully Self management Discipline Effective communication

5. Do you think that understanding competencies of particular job position makes it easy to hire employees possessing appropriate knowledge, skills and attitudes? Fully agree Partially agree Not sure

6. Do you make competency based job description? Yes No Do not know

7. In your opinion competency mapping of junior officer stores is a useful activity? Yes To some extent Do not know

8. Competency mapping should be done at the time of recruiting the employee Yes To some extent Do not know

9. Is competency mapping exercised at Dabur? Yes Not at all Partially

10. In your opinion concept of competency mapping should be introduced? Yes Partially Not at all 11. Is this process will help you to get more out of the junior officer stores? Yes Partially Not at all

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