DISSERTATION REPORT

ON

“PERFORMANCE APPRAISAL”

(AT PARLE INDUSTRIES LIMITED)

SUBMITTED TO KUMAON UNIVERSITY IN PARTIAL

FULFILMENT OF

“BACHELOR OF BUSINESS ADMINISTRARION”

(THREE YEARS FULL TIME DEGREE PROGRAMME)

SUBMITTED BY

DEEPANSHI JOSHI

B.B.A (IV SEMESTER)

(2008-2011)

JAI ARIHANT INSTITUTE

 CERTIFICATE

This is to certify that ANJALI SHARMA has completed the project title
“PERFORMANCE APPRAISAL AT BIL.” under my guidance and supervision.

She is submitting the project in the partial fulfillment of the requirement for the award
Masters of Business Administration, UTTRAKHAND TECHNICAL University,
DehraDun.

This work is original and has not been published or submitted elsewhere for any purpose
what so ever. All sources of information have been mentioned and dully acknowledged.

SUBMITTED TO:
MISS. RINKY RANA
(FACULTY [Link].)
 ACKNOWLEDGEMENT

I am very thankful to my Faculty Guide “[Link] RANA” without whose meticulous

attention, invaluable suggestions, encouraging guidance and creative support; I would not
have been able to complete my dissertation which is one of the important parts of the MBA
program.

She helped me in simplifying the problems involved in the work. I would also like to thank
the overwhelming support of all the people who gave me an opportunity to learn and gain
knowledge.

DEEPANSHI JOSHI

(BBA.V SEM)
 PREFACE

As a part of my BBA V Sem. program , I was asked to undergo 6 weeks of Summer

Training in any organization, so as to give exposure to practical knowledge and to get
familiar with the various activities taking place in organization.

I got an opportunity to undergo Summer Training in the reputed organization PARLE

AGRO LIMITED, RUDRAPUR”, where I was assigned the project entitled
“PERFORMANCE APPRAISAL.”.
 DECLARATION

I DEEPANSHI JOSHI student of BBA V sem. of JAI ARIHANT INSTITUTE, hereby declare

that this Dissertation report “PERFORMANCE APPRAISAL” is written and submitted by me under the

guidance of MISS. DEEPTI SARKI is my original work. The entire analysis and conclusion of this

report are based on the information which is collected by me during the training period.

The empirical finding in the report are based on the data collected myself while preparing this

project. I have not copied any thing from any source or other project submitted for the similar purpose, if

any.

DEEPANSHI JOSHI
 CONTENT
Chapter-1: EXECUTIVE SUMMARY 1-2

Chapter-2: OBJECTIVE OF THE STUDY 3-4

Chapter-3: INTRODUCTION ABOUT PARLE 5-22

• Company overview
• Activities of the company
• SWOT Analysis
• Department of the company

Chapter-4: PERFORMANCE APPRAISAL 23-44

• Definition of Performance
• Objectives,& Features of Performance Appraisal
• Process & Methods of Performance Appraisal
• Key elements of Performance Appraisal
• Problems of Performance Appraisal
• Process of Performance Appraisal
• Performance Appraisal at PARLE.
• Process of Appraisal in PARLE Agro Limited

Chapter-5: LITERATURE REVIEW 45-50

Chapter-6: RESEARCH METHODOLOGY 51-54

• Sample Size
• Method of Sampling
• Area of work
• Method of Data collection
 • Scope of the study
• Sources of data collection
• Limitation of the study

Chapter-7: ANALYSIS & FINDINGS 55-56

Chapter-8: RECOMMENDATIONS 57-58

Chapter-9: CONCLUSION 59-60

Chapter-10: QUESTIONNAIER 61-66

Chapter-11: BIBLIOGRAPHY 67-68

 CHAPTER-I
EXECUTIVE
SUMMARY

EXECUTIVE SUMMARY FOR PERFORMANCE APPRAISAL

Performance appraisals can be a good way for organizations to boost employees' motivation and their
competitive edge. But creating useful performance appraisals -- and making sure they are used effectively
throughout an organization -- isn't easy. The 10 lessons here can help your company move closer to
appraisals that help staff perform their best.
"The irony is that our organization has been doing formal appraisals for at least 30 years and we still
struggle to do them right. It takes a clear purpose, a good system, and effective managers all operating
together to get the job done." -- Director of human resources, Fortune 500 manufacturing organization.
It is common knowledge that most managers and employees find participating in formal performance
appraisals as appealing as having a root canal. However, it is also true that -- for better or worse -- formal
performance appraisals are an inescapable part of organizational life.
There are two main reasons that formal performance appraisals are here to stay. First, formal appraisals
are required to justify a wide range of human resource decisions such as pay raises, promotions,
demotions, terminations, and selection validation. They also are key to evaluating recruitment results and
determining training needs. Second, formal appraisals are required to maintain a competitive edge. In a
recent study of high-performance organizations, the practice of employing a value-added performance
appraisal process was cited as one of the top 10 vehicles for creating competitive advantage. The
manufacturing organizations in this study clearly stated that an effective appraisal and review process
created focus, a platform for measurement, a vehicle for employee improvement, and a means of linking
key outcomes to performance.

Our lessons for developing and sustaining a high-performance appraisal system are based upon two key
tenets. The first tenet suggests that if appraisal processes operate as a system, a systems perspective must
be applied to identify the critical appraisal system components and stages to make sure that organizational
procedures and practices work in harmony. The second tenet is that individual managers play a pivotal
role in achieving effective appraisals and that they need the right tools and support to be effective.
 CHAPTER II
OBJECTIVE
OF
THE
STUDY

OBJECTIVE OF THE STUDY

The objective for my Dissertation Report, is to make my self capable for moving forward in corporate
world, to gain knowledge & experience & know how to work in the organization environment. It will
help me to gain more & more about corporate sector, which was very essential for me to do. Therefore I
joined PARLE RUDRAPUR to improve my capabilities.

MAIN OBJECTIVE

 To Know about the existing system of Performance Appraisal in “PARLE Agro Limited”
 To study the awareness of the employees regarding the appraisal system.
 To evaluate the effectiveness of appraisal system.
 To know the satisfaction of the employees, with the appraisal system followed in PARLE.

SUB-OBJECTIVE
 Are the present performance appraisal is sufficient enough to analyze the ability of a
company.
 To see the difference between the theoretical knowledge & practical knowledge.
 CHAPTER-III
INTRODUCTION
ABOUT
THE COMPANY
 COMPANY OVERVIEW

In 1929 a small company by the name of Parle products emerged in British dominated India. The intent
was to spread joy and cheer to children and adults alike, all over the country with its sweets and candies.
The company knew that it wouldn’t be an easy task, but they decided to take the brave step. A small
factory was set up in the suburbs of Mumbai, to manufacture sweets and toffees. A decade later it was
upgraded to manufacture biscuits as well. Since then, the Parle name has grown in all directions, won
international fame and has been sweetening people's lives all over India and abroad.

Apart from the factories in Mumbai and Bangalore Parle also has factories in Bahadurgarh in Haryana
and Neemrana in Rajasthan, which are the largest biscuit and confectionery plants in the country.
Additionally, Parle Products also has 7 manufacturing units and 51 manufacturing units on contract.

Parle Products has been India's largest manufacturer of biscuits and confectionery, for almost 80 years.
Makers of the world's largest selling biscuit, Parle-G, and a host of other very popular brands, the Parle
name symbolizes quality, nutrition and great taste. With a reach spanning even the remotest villages of
India , the company has definitely come a very long way since its inception.

Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have
won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15%
share of the total confectionary market in India , Parle has grown to become a multi-million dollar
company. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example
of marketing brilliance

INDUSTRY PROFILE
The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked
or baked). The word 'Biscotti' is also the generic term for cookies in Italian. Back then, biscuits were
unleavened, hard and thin wafers which, because of their low water content, were ideal food to store.

As people started to explore the globe, biscuits became the ideal travelling food since they stayed fresh
for long periods. The seafaring age, thus, witnessed the boom of biscuits when these were sealed in
airtight containers to last for months at a time. Hard track biscuits (earliest version of the biscotti and
present-day crackers) were part of the staple diet of English and American sailors for many centuries. In
fact, the countries which led this seafaring charge, such as those in Western Europe, are the ones where
biscuits are most popular even today. Biscotti is said to have been a favourite of Christopher Columbus
who discovered America!
Making good biscuits is quite an art, and history bears testimony to that. During the 17th and 18th
Centuries in Europe, baking was a carefully controlled profession, managed through a series of 'guilds' or
professional associations. To become a baker, one had to complete years of apprenticeship - working
through the ranks of apprentice, journeyman, and finally master baker. Not only this, the amount and
quality of biscuits baked were also carefully monitored.
The English, Scotch and Dutch immigrants originally brought the first cookies to the United States and
they were called teacakes. They were often flavoured with nothing more than the finest butter, sometimes
with the addition of a few drops of rose water. Cookies in America were also called by such names as
"jumbles", "plunkets" and "cry babies".

biscuit goodies:
Parle - G Hide and Seek
Krackjack Hide & Seek Milano
Magix Digestive Marie
Monaco Parle Marie
Kreams Milk Shakti
Parle 20-20 Cookies Golden Arcs
Nimkin Kreams Gold
 Chox Monaco Jeera
Hide & Seek Bourbon

Sweets:
Melody Kismi Gold
Mango Bite Orange Candy
Kaccha Mango Bite Xhale
Poppins 2 in 1 Eclair
Kismi Toffee Golgappa
Kisme Toffee Bar Melody Softee
Mazelo Parle Lites

Snacks:
Musst Bites Jeffs
Cheeslings Musst Stix & Musst Chips
Sixer Sixer Zeera
Monaco Smart Chips

WHAT MAKES A BRITANNIA

• Integrity
• Team Orientation
• People Development
• Learning Orientation
• Customer Orientation
• Quality Orientation
• Drive for Results
• Entrepreneurial Spirit
• System and Process Orientation
• Communication

If feel you stack up well in terms of all these behaviors…don’t waste time…Join us!!!
 OBJECTIVES OF THE COMPANY

The objectives of the company are as follows:

1. To manufacture, buy, sell, prepare for market and deal in farinaceous foods for all kinds and in
particular biscuits, sweets and confectionary and food of every description suitable for individuals.

3. To carry on business as millers and grain merchants, dealers in flour, rice and other produces.

4. To carry on business as bakers and confectioners and to manufacture buy, sell, refine prepare, grow,
import export and deal in provisions of all kinds of wholesale and retail, whether solid or liquid.

5. To make, accept, endorse, discount and issue promissory notes, bills of exchange and other negotiable
instruments etc.
 MAIN EVENTS OF THE COMPANY

1) Bhumi poojan of Britannia industries limited was on 20th may 2004.

2) Machinery was set up on 23rd march 2005.
3) Production trial was taken on 23rd march 2005 itself.
4) Actual production was started on 1st April 2005.
5) First dispatch of finished goods was done on 20th April 2005.
6) Biggest plant of the company is plant number two.
7) The company is set up in an area of approximately 20 acres.
8) Minimum production of the company is 180 tons per day.
9) Maximum production is 300 tons per day.
10) Control of management is through Board of Directors.
11) It is a public limited company.
12) The auditors of the company are Lovelock & Lewes.
13) The bankers of the company are:

 State Bank of India.

 Standard Chartered Bank.
 ABN Ambro Bank.
 City Bank.
 The hongkong and shanghai banking corporation limited.
 Bank of America.
 HDFC Bank limited.
 ICICI Bank limited.
NUMBER OF PLANTS AND PRODUCTION AT THE PANTNAGAR
BRANCH
Not all the brands of Britannia are produced in this branch only some brands of biscuits are
produced at this branch.
Production of biscuits in Britannia Pantnagar branch is divided in to four Plants.

1) Plant I
 Marigold
 Good day butter
 Good day Pista badam

2) Plant II
 good day cashew

3) Plant III
 fifty- fifty (50-50)
i) 50-50
ii) 50-50 Maska Chaska
iii) 50-50 pepper chakker

4) Plant IV
 Chocolate treat bourbon
 Orange treat
 OBJECTIVES OF THE UNIT
 Investing in appropriate technology.
 Working collaborators with the business partners.
 Quality products to customers.
 Continuous training and retraining of the employees to create culture that value quality and food
safety as a core pillar of the business.
 To control the wastage and save time and efforts.
 To work under the principals of Kiazen, Haccp and 5 S.

THINGS YOU DON’T KNOW ABOUT BRITANNIA

 Britannia products are sold in over two million outlets, reaching millions of customers who
buy approximately 2.4 billion packets each year.
 A small army keeps Britannia going – over 180 stock keeping units, 3000 employees, over
2200 authorized whole sellers and 56 depots.
 The number of biscuits produced by Britannia in one year would be the equivalent of one
pack of twelve biscuits for every two people in the world.
 Stacked on top of each other, all Britannia biscuits sold in a year would stand 10,000 times
taller than Mount Everest.
 Britannia has had a long association with cricket and cricket players. Nearly half the
members of the current Indian cricket team serve as its brand ambassadors.
 Launched in 1997, Tiger became the largest selling Britannia biscuit brand in just 4 months of launch.
It crossed Rs.1 billion sales mark in its very first year and is growing stronger.
 SWOT ANALYSIS

STRENGTH

 Goodwill of company
 Financially a very strong company
 Effective well designed and developed production and marketing network.
 Superior quality and service to provide maximum benefits to customers.
 The family environment in the company.
 Dedicated work force.
 Continuous growth.
 Market share of the company.
 Tax benefit to the company.

WEAKNESSES

 No uniform of the officers and of the workers too.

 Storage capacity of the company is limited.
 Land is not properly utilized.
 Raw material is wasted at the time of unloading.
 Unit is situated far away from main plant.
 There is no board of Britannia at the entry gate.
OPPORTUNITY

 There can be minimization of waste.

 There must be more efficient utilization of the raw material.
 More and more incentives should be given to workers to motivate them which help in
increasing the employee moral.
 There can be use of the foreign technologies for efficient utilization of raw material so that
the production of a biscuit can be increased.
 Lang can be used more efficiently.

THREATS

 New entrants in the business

 Threats of substitute products.
 Availability of the other brands.
 Rivalry among the competitions.
 Taste and preference of customers.
 Departments/ hierarchy of the company

There are mainly six departments of the company. These are as follows:

UNIT HEAD

Human Maintenanc
Accounts Production Purchase Quality
resource e

Officers
Officers
Officers Officers
Officers Officers
 CHAPTER-IV
INTRODUCTION
ABOUT
PERFORMANCE
APPRAISAL
 PERFORMANCE APPRAISAL

Performance appraisal or merit rating is one of the oldest and most universal practices of management.
Performance appraisal is a method of evaluating the behavior in the works pot, normally including both
the quantitative and aspects of job performance.
It implies assessing the performance of an employee on the job.
A formal defining by C. Heyel is as following:-
“Performance appraisal is the process of evaluating the performance & qualification of the employees in
term of the requirements of the job for which he is employed for the purpose of administration including
placement, selection for promotion, providing financial rewards & other action which require differential
treatment among the member of a group as distinguished from action affecting all members equally.”
According to Dale S. Beach: “Performance appraisal is the systematic Evaluation of the individual with
regard to his or her performance on the job & his potential for development.”

According to Shubin: “evaluation is a systematic appraisal of the employee’s personality traits &
performance on the job & is designed to determine his contribution & relative worth to the firm.”

According to Deal Yoder: “All formal procedures used in working Organization to evaluate
personalities & contribution s & potentials of group member.”

A formal definition of Performance appraisal is that, “It is the systematic evaluation of the individual
with respect to his or her performance on the job & his potential for development.”
A more Comprehensive definition is, “Performance appraisal is a formal structured system of measuring
& evaluating an employee’s job, related behaviors & outcomes to discover how & why the employee is
presently
Performing on the job & how the employee can perform more effectively in the future so that the
employee, organization & society all benefit.”
Under Performance appraisal we evaluate not only the performance of a worker but also his potential for
development.
 TRENDS IN PERFORMANCE APPRAISAL

ITEM FORMER EMPHASIS PRESENT FOCUS

1. Terminology Merit-Rating Performance Appraisal
2. Purpose Determine wage increase, Development of the
promotion, transfer, layoff individual improved job
performance.
3. Application For rank & file workers For managerial & technical
personnel.
4. Factors rate d Personal traits Performance, result or
accomplishment.
5. Techniques Rating scales with emphasis Mutual goal-setting, critical
upon scores incidents, group appraisal.
6. Post appraisal Superior communicates his Superior stimulates
rating to the subordinate & employee to analyse himself
seeks to have employee & set goals with the help.
accept the rating.

FEATURES OF PERFORMANCE APPRAISAL

1) Performance appraisal is the systematic description of an employee’s job relevant strength and
weaknesses.
2) It is a continuous process in every large-scale organization.
3) The basic purpose is to find out how well the employee is performing the job & establish a plan
of improvement.
4) Performance evaluation is not job evaluation.
5) Appraisals are arranged periodically according to a definite plan.
 FUNCTIONS
 Identification the areas of training & development.
 Helps in reward allocation.
 Provide the opportunity to review the strange & weakness of the employees.
 It helps in career planning & personnel development.
 Helps in establishing credibility of the selection procedure.
 Act as a motivation factor.

OBJECTIVES OF PERFORMANCE APPRAISAL

1) SALARY INCREASE: Performance appraisal play a role in making decision about salary
increase. Normally salary increase depends on how employee is performing his job. There is
continuous evaluation of this performance either formally or informally in small organization.
There is direct contact between employees & Performance appraisal has to be a undertaken.
2) PROMOTION: Performance appraisal plays a significance role where promotion is based on
merits most of organization use a combination of merit & seniority for promotion. Performance
appraisal discloses how an employee is working in his present job & what his strong & weak
points are. It can be decided whether he can be promoted or not. It is also used for transfer,
promotion, demotion & discharge of employees.
3) TRAINNING & DEVELOPMENT: Performance appraisal tries to identify the strengths &
weaknesses of an employee on his present job. This information can be used for devising training
& development programmes appropriate for overcoming weakness of the employees.
4) FEEDBACK: Performance appraisal provides feedback to employees about their performance.
It tells them where they stand. A person works better when he knows how he is working first, the
person gets feedback about his performance & try to overcome his deficiencies second, when the
person gets feedback about his performance, he can relate his work to the organizational
objectives.
5) PRESSURE ON EMPLOYEES: Performance appraisal put a post of pressure on employees
for better performance. If the employees are conscious that they are being appraisal in respect of
 certain factors & their future largely depends on such appraisal, Appraisal can work automatically
as control device.

PROCESS OF PERFORMANE APPRAISAL

Establishment of
Performance Standards

6 2

Establishment of
Establishment of
Performance
Performance Standards
Standards

5 3

Establishment of
Establishment of
Performance
Performance Standards
Standards

Establishment of
Performance Standards

1) ESTABLISMENT OF PERFORMANCE: We need some kind

of measures again which we are going to compare the performance of employees.
some of these standards are based on job description should be clear enough to be measured &
 understood by everyone standers are the expectations.

2) COMMUNICATE EXPECTATION TO EMPLOYEES: Standards need to be communicated

is employees so that they know what is expected of them & how will they about it.

It has to be received by employees & manager should receive the feedback so that he comes to
know whether employees have understood the intention of communication.

3) MEASURES ACTULY PERFORMANCE: After setting standard you will some critical to
measure the performance of employees.

4) COMPARE ACTUAL PERFORMANCE WITH STANDARD: This is done to

see if any discrepancy exist & if so then how will it be rectified.

5) DISCUSS APPRAISAL WITH EMPLOYEE: Performance of employee is reviewed & then

manager has to convince the employees about his judgment. He conduct meeting with employees
for this purpose.

6) INITIAL CORRECTIVE ACTION: If there is any deviation in performance then suggestive

corrective action can be provided to the employees.
 METHODS OF PERFORMANE APPRAISAL

PERFORMANCE APPRAISAL METHODS

Individual Multiple-person
evaluation evaluation method Other method
method

 Ranking  Group appraisal

 Confidential report  Paired Comparison  HRA
 Easy evaluation  Forced Comparison  Assessment center
 Critical incidents  Field review
 Checklists
 Graphic rating scale
 Behaviorally
anchored
 Rating scale
 Forced choice
method
 MBO
 APPRAISAL BASED ON TRADITIONAL TRAITS

There are various methods of Performance Appraisal based on traits:

1) Ranking Method: Ranking is the oldest & simplest method of appraisal in which a person is
ranked against other on the basis of certain traits & characteristics. It is not good for large
number5 of employees. It does not indicate absolute or equal difference of ability between
individuals.
2) Faired comparison Method: Paired comparison is a slight variation of ranking system. In this
method each person or employees is compared with all other person. Then the rank is given
according Rader gives rating & puts a tick mark the name of each employee alter which the name
of ticks are counted & the employees having the most no. of tick marks is rated the highest. The
larger the no. of employees the more difficult in composition.
3) Grading: In this method certain categories well in advance & persons are put in their traits &
characteristics such categories are like :- outstanding, goods, average, poor, very poor or may be
in terms of A, B, C, D etc.
4) Forced Distribution Method: It assumes that employee’s performance conforms to the bell-
shaped, this method tries to remove the error of leniency or central tendency error.

10 20 30 40 50
10% - Excellent 30% - Average
20% - Good 40% - Below Average
 This method can be challenged people might question why they have been put in the category.
This method is useful to rate job performance & Promotability.
5) Forced-choice Method: The forced-choice rating method contains a service group of statement
& the rater checks how effectively the statement each individual being evaluated. Since forced
choice is made might be disliked by the managers also depends on whether the statements
properly formulated or not. The ultimate scoring lines with the H.R department.
6) Check- list Method: It is list of traits pertaining to the job. There are two options – Yes or No.
this list is passed to H.R Department & they have a recording key. Accordingly they mark the
Yes or No & give the overall rating. It is easily administered standardized & economical since it
is applicable for everyone.
7) Critical incidents Method: Here focus on the incidents which are crucial for the performance of
job. The behavior of employee is checked & a record is maintained about how he reacted in a
particular situations. Here, since, we are keeping a record of job-related behavior it is more
appropriate. We are considering both effective & iniency & primary basis. Chances of
improvement are there.
8) Graphic scale Method: Graphic scale also known as linear rating scale is the most commonly
used method of performance appraisal. In this method a printed appraisal from is used for each
appraise. It contain various employee characteristics & his job performance various
characteristics include initiative, leadership, dependability, co-operativeness, enthusiasm, creative
ability, decisiveness etc. The rating is done on the basic of scale which is in continuum. The
central idea behind this scaling is to provide the rate varying degree of a particular quality. The
degree of quality is measured on a scale which can very from three points to several points,
graphical scale method is good one in measuring various job behavior of an employee. However
 it is not free from rater’s biases.

Satisfactory Unsatisfactory

1 2 3 4 5 6 7 8 9 10

9) Essay Method: It is a detailed description or narrative form of the employee evaluation. It does
not provide any quantitative data to compare & is very unstructured, one need to have good analytical
& writing skills.
The essay method is useful in providing useful information about an employee on the basic of which
he can be apprised.
10) Field Review Method: Employee are related by any other person expect than the immediate
supervisor or own dept, the person can be from some other dept, or outside the organization ratings
are given on the employees record with organization & the information provided by the supervisor
when he is interviewed by enumerator. A complied report given by the enumerator & is free form
bias. It based on second final information.

APPRAISAL BASED ON MODERN METHOD

1) Assessment Centre: It is only method used for promotion. In this method there is a team of
experts or evaluators who judge the performance. In this method all the candidates who clime for
promotion are called participant. They asked to do different exercise of development or they have
to give the answers of the expert. By this expert know their behavior or attitude & according to
this expert prepare report & gave promotion.
2) Human Resource Accounting Method: Human Resource According are a valuable asset of
any organization. This asset can be valued in term of money. Under this method performance is
judged in term of cost & contributions of employees. Cost of human resource planning,
 recruitment, selection, induction, training, compensation etc. Contribution of human resource is
the money of labour productivity or value added by human resources.
3) Behaviorally Anchored Rating Scale (BARS): This method combines graphic rating scales
with critical incidents methods. BARS are descriptions of various degrees of behavior relating to
specifics performance dimensions. The behavior of the employees is checked through graphic
rating method.

NEED FOR PERFORMANE APPRAISAL

♦ Provide information about the performance ranks basing on which decision regarding salary
fixation, conformation, promotion, transfer & demotion are taken.
♦ To prevent grievances & indisciplinary activities.
♦ Provides information which helps to counsel the subordinate.
♦ Provides feedback information about the level of achievement & behavior of subordinate.
♦ Provides information to diagnose deficiency in employee regarding skill, knowledge, determine
training & developmental need & to prescribe the means for employee growth provides
information for correcting placement.

PURPOSE
♦ To create & maintain a satisfactory level of performance.
♦ To provide information for making decision regarding lay-off, retrenchment, etc.
♦ To guide the job changes with the help to continuous ranking.
♦ To contribute to the employee growth & development through training, self & management
development programmes.
♦ To facilitate for testing & validating selection tests, interview techniques through comparing
their scores with performance appraisal ranks.
♦ To ensure organization effectiveness through correcting employee for standard & improved
performance, & suggesting the change in employee behavior.
♦ To facilitate fair & equitable compensation based on performance.
♦ To help the superior to have a proper understanding about their subordinates.

Human Performance Employee

KEY Performance
ELEMENTS OF PERFORMANCE
Appraisal APPRAISAL
FeedbackSYSTEM

Performance
Measure

Performance –
Related
Standard

Human
Employee
Resource
Record
Decisions
 USES OF PERFORMANCE APPRAISAL

1) PERFORMANCE IMPROVEMENT: Performance feedback allows the employee, manager,

& personnel specialists to intervene with appropriate action to improve performance.
2) COMPENSATION ADJUSTMENTS: Performance evaluation help decision-makers
determine who should receive pay rises. Many firms grant part or all of their pay increases &
bonuses based upon merit, which is determine mostly through performance appraisals.
3) PLACEMENT DECISION: Promotion, transfer, & demotion are usually based on past or
anticipated performance. Often promotions are reward for past performance.
4) TRAINING & DEVELOPMENT NEEDS: Poor performance may indicated the need for
retaining. Likewise, good performance may indicate untapped potential that should be developed.
5) CAREER PLANNING & DEVELOPMANT: Performance feedback guides career decision
about specific career paths one should investigate.
6) STAFFING PROCESS DEFICIENCIES: Good or bad performance implies strength or
weakness in the personnel department staffing procedure.
7) INFORMATION INACCURACIES: Poor performance may indicate errors in job analysis
information, human resource plans, or other parts or the personnel management information
system. Reliance on inaccurate information may have led to inappropriate hiring, training, or
counseling decisions.
8) JOB DECISION ERRORS: Poor performance may be a symptom of ill-conceived job designs.
Appraisals help diagnose these errors.
9) EQUAL EMPLOYMENT OPPORTUNITY: Accurate performance appraisals that actually
measure job-related performance ensure that internal placement may be able to provide
assistance.
FEEDBACK TO HUMAN RESOURCES: Good / bad performance throughout the organization
indicates how well the human resources function is performing.
 PROBLEMS OF PERFORMANCE APPRAISAL
1)
Rating Biases: The problem subjective measure (is that rating which is not verifiable by others) has
the opportunity for bias. The rater biases include:
(i) Halo effect,
(ii) The error of central tendency,
(iii) The leniency & strictness biases,
(iv)Personal prejudice, &
(v) The recency effect.
2)
Failure of the superior in conducting performance appraisal & post performance appraisal interviews.
3)
Most part of the appraisal is based on subjectivity.
4)
Less reliability & validity of the performance appraisal techniques.
5)
Negative rating affects interpersonal relating & industrial relations system.
6)
Influence of external environment factors & uncontrollable internal factors.
7)
Feedback & post appraisal interview may have a setback on production.
8)
Management emphasizes on punishment rather than development of an employee in performance
appraisal.
9)
Some rating particularly about the potential appraisal is purely based on guesswork.

ADVANTAGES OF PERFORMANCE APPRAISAL

 There will be an objective analysis of traits of both the superior & subordinate.
 There will be change to subordinate to express his views even after performance appraisal.
 An employee shall express his emotional needs & his value system, which is considered taboo
will today.
 It overcomes the communication barrier.
 It will remove the inherent weakness of the appraisal system, i.e., subjective assessment of vague
& abstract performance targets, unclear guidelines for appraisal etc.
PERFORMANCE
APPRAISAL
AT
PARLE AGRO
LTD.
 PERFORMANCE APPRAISAL AT PARLE

Definition of performance in MAP is based up on Key Result Areas of KRAs and Routine
Responsibilities.

 KRAs are ‘critical outcomes towards which effort is directed to achieve

desired business results.’

 Routine Responsibilities are ‘significant on-going tasks or outcomes that are undertaken or
delivered on day-to-day basis.’

KRAs Routine Competencies

Responsibilities

Performance Plan Development Plan

Performance & Development Plan

Unique Role and Responsibility (URR) templates provide the KRAs, relative weight of KRAs and
Routine Responsibilities, the competencies and their required proficiency levels for a role. The URR
Template in MAP helps deliver consistency and clarity. On expected performance measures to
Appraisee’s and Appraisers alike.
MAP allows the Appraisee to define the performance measures applicable to the Appraisee’s situation
using combination of KRAs and Routine Responsibilities.
The achievement against targets sets for each of these will together constitute the Appraisee’s
Performance Plan in the Performance Cycle or Period.

Performance Cycle at a Glance

A Performance Cycle refers to the year for which your performance is being evaluated.
Key phases of evaluating Performance at PARLE:
1. Performance and Development Planning
2. Mid Year Review
3. Final Review

The figure below provides an overview of the Performance Cycle with key dates for each phase.

Unit/business Sector Draft Budget End February

Offline Performance Planning

March-Mid April
Normalision &
score Appraiser

May ONGOING
FEEDBACK
Final Review &
Final Review & Feedback Feedback
Appraise

April Mid April-End

Mid Year April
Review

September-October
In certain cases, such as those involving a mid-cycle change in role to transfers etc, an Appraisee may be
more than one Performance Plan in a Performance Cycle. The period that each Performance Plan covers
is referred to as the Performance Period for that Performance Plan.

PROCESS OF
PERFORMANCE
APPRAISAL IN PARLE
AGRO LIMITED
 BRITANNIA INDUSTRIES LIMITED

STAFF ASSESSMENT FORM

Name: Emp. No. Grade:

Job & Position Title: Function:

A. PERFORMANCE ASSESSMENT from__/__/____to__/__/____Location:

Rating Scale for Individual KRAs (1) Needs improvement (2) Meets expectations (3)
Above Expectations (4) Outstanding

[Link] Outcome Measure Standard Weightage Achievemen Self Coach’s

Low Medium High
% t Rating Rating
CRITICAL
KRAs

IMPORTANT
KRAs

OVERALL PERFORMANCE ASSESSMENT (By Coach)

1. Needs Improvement 2. Meets Expectation 3. Above Expectation

4. Outstanding

EMPLOYEE’S SIGNATURE COACH’S SIGNATURE

B. POTENTIAL ASSESSMENT
1. LEADERSHIP COMPETENCY: (LC)
Rating scale for individual competency: (Scale would be from 1-4.1 being the lowest and 4 being
the highest)
[Link]. Competency Proficiency required for position Self Rating Coach Rating

1 Team working

2 Thinking logically

3 Listening & Responding

4 Planning & Initiating

OVERALL ASSESSMENT (By Coach)

2. FUNCTIONAL COMPETENCY: (FC)
Rating scale for individual Functional Competency: (Scale would be from1-4.1
being the lowest and 4 being the highest)
[Link]. Competency Proficiency required for position Self Coach Rating
Rating

1 Customer Centricity

2 Drive for Results

3 Process & Systems Orientation

4 Innovation

OVERALL ASSESSMENT (By Coach)

C. NEEDS IDENTIFIED FOR TRAINING
LEADERSHIP COMPETENCY FUNCTIONAL COMPETENCY

3
4
D. ASPIRATIONS & FEEDBACK
Self assessment(By Employee) Assessment by the coach

STRENGTHS

AREAS FOR
IMPROVEMENT
CAREER ASPIRATIONS

DISCUSSION DETAILS PRE BAT DIALOGUE POST-BAT FEEDBACK

Employee’s Signature _______________ Coach’s Signature____________

Date _______________ Date _____________
OVERALL RANKING:
(Tick appropriate box) Outstanding Exceeds Expectation Meets expectation

Below Expectation Needs Improvement

H.R. HEAD FUNCTIONAL HEAD

 PARLE AGRO LIMITED
MID-YEAR PERFORMANCE REVIEW
(A copy of the review year (2007-08) BAT Form to be attached with this form)
Employee Name Review Period
Function/Location Coach

PROGRESS ON GOALS (KRAs)

Post discussion of the Employee and Coach, the progress on goals identified on the BAT Form is noted below…

GOAL REVISION / ADDITIONS, DELETIONS ANOTHER CHANGES IF ANY

(Any change in the Employee’s Job Description or KRAs should be noted here. As well as areas of work requiring
improvement)

TRIANING & DEVELOPMENT REQUIREMENTS INVIEW OF CHANGED

ROLE/ JOB DESCRIPTION

REVIEW COMMENTS
(By Coach)

Employee’s Signature Coach’s Signature

Date: Date:
CHAPTER-V
LITERATURE
REVIEW
LITERATURE REVIEW ON PERFORMANCE APPRAISAL

Title: A review of performance appraisal within Liverpool Direct Revenue Services.

Authors: Lamb, Frank

Publisher: University of Chester.

Abstract:
This dissertation sets out to review and explain the challenge of performance management and how
this is addressed through the performance appraisal process within Liverpool Direct Revenues
Service. The research will examine the elements which constitute a high performing appraisal
process and consider the current problems inherent within the appraisal process within the
revenues service and the impact this maybe having on service delivery. The study also considers the
impact on staff and their development of an appraisal system which is not delivering key messages
or addressing individual performance issues. The research used a number of data capture methods.
Secondary survey data was used to underline and support findings from the primary interview
data. In addition a survey of all frontline staff within the revenues service was undertaken to
provide a greater wealth of data and enrich the overall research. As a result of this research it was
discovered that the revenues service does not have a coherent performance appraisal process.
There exists a clear dichotomy between senior managers and senior officers as to what elements
should be present in the performance appraisal. The research also discovered there was little
engagement or confidence in the process from the participants. The research makes several
recommendations which include the training of all managers within the revenues service and the
embedding of the appraisal process within the organisation. Further recommendations are made to
improve staff engagement in the process and create better feedback of information.
Title:Performance without Appraisal (Pay, Promotion, and Improvement)

Authors: Esther Derby (scrum alliance)

Abstract:

The idea of merit rating is alluring. The sound of the words captivates the imagination: pay for
what you get; get what you pay for; motivate people to do their best, for their own good.
The effect is exactly the opposite of what the words promise. Everyone propels himself forward, or
tries to, for his own good, on his own life preserver. The organization is the loser.

Merit rating rewards people who do well within the system. It does not reward attempts to improve
the system.

W. Edwards Deming in Out of the Crisis

In my previous column, I suggested that ScrumMasters should steer clear of annual performance
reviews. Rating and ranking individuals interferes with a ScrumMaster’s responsibilities as a coach
in service to the team. In fact, I went further than that: I suggested that managers and the rest of us
steer clear of performance reviews, as well.

My suggestion does run counter to widespread practice. But I’m not alone in questioning
performance evaluations and rankings.

W. Edwards Deming identified performance appraisal as one of the Seven Deadly Diseases of
Management. Deming is clear and concise in stating the negative effects of performance appraisals
and merit ratings: “It nourishes short-term performance, annihilates long-term planning, builds
fear, demolishes teamwork, nourishes rivalry and politics.” [Deming p. 102]

More recently, Stanford University professors Robert Sutton and Jeffrey Pfeffer combed through
data and studies related to widespread management practices. They reference a survey of 200
human resource professionals which reports that forced ranking—a common component of
performance appraisal programs—results in “lower productivity, inequity and skepticism, negative
effects on employee engagement, reduced collaboration, and damage to morale and mistrust of
leadership.” [Pfeffer and Sutton, p. 107] They go on to describe the damage done by merit pay
plans.

In short, the evidence supporting the benefits of rating, ranking, and then tying pay to the rating—
the stuff of performance evaluations—is thin to none. Deming had it right.
My readers did raise legitimate concerns:

Without performance appraisals….

How do we determine how much to pay people?

How do we know who to promote or fire?
How do people know they need to improve?

Organizations do need answers to these questions. Performance appraisals and pay-for-

performance (PFP) aren’t the only way to answer those questions, or even the best way. In this
column, I’ll walk through some alternatives to the prevailing practice.

 How do we determine how much to pay people?

One reader pointed out, “people get their salaries on an individual basis.” True. Tying annual
salary actions to ratings and rankings is just one way to determine what those actions should be.
There are other rational and non-capricious ways to adjust individual salaries:

• Adjust based on the cost of living so that the buying power of salaries keeps pace with
economic conditions.
• Allow all employees to share in the company’s success through profit sharing.
• Adjust salaries based on the current market rate for skills and roles.

Another reader posed the rhetorical question, “So all certified scrum masters earn the same
amount?”

Performance is a function of the person and the environment. Systems thinking and lean
production at Toyota tell us that gains in productivity come from inspecting and adapting the
system, not from focusing on individual performance. An improvement mindset, thinking for the
long term, eliminating waste, respect for people, and removing impediments bring high
performance.

Still, there are people who are clearly outstanding performers (both outstandingly good and
outstandingly poor), who outperform the limits of the system. Once again, pay increases based on
performance ratings is only one way to accomplish the goal of recognizing outstanding individuals.

People—and their jobs—evolve over time. ScrumMaster may start off coaching a team on the
basics of Scrum, and over time, take a bigger role working on systemic issues that hinder the team.
Or he may develop exceptional coaching skills. If someone is truly performing above others within
the same job it may be time to promote him or reclassify his job so that it’s at a higher pay level.
  How do we know who to promote or fire?
Other readers asked, “Without yearly ratings, how will we know who to promote?” Looking at how
a person has evolved in his job and the level of responsibilities is one way. Another option is to treat
promotions as seriously as hiring: create a rigorous internal application process that involves
interviews and auditions.

The truth is that many outstanding performers aren’t doing it for the money. They stay for love of
their work and are most rewarded by new and challenging assignments.

The reverse question came up, too: “How will we know who to fire?”

It doesn’t take a rating to fire someone. If someone isn’t doing his job, there’s no reason to keep
him on the payroll until the annual review cycle comes around. A ScrumMaster will know when
someone isn’t doing his job or is making it harder for other people to do their jobs. He can coach
the person, or if coaching is not or is no longer an option, work with a functional manager to move
the person off the team. (Some teams manage their own team membership, and people who need to
go move off the team, without a manager’s involvement.) And, poor performers will hang onto a
job even if they aren’t receiving raises. They won’t be improving, though. They’ll be harboring
resentment and telling themselves that they really are above average.

As with identifying outstanding good performers, consider the environment, as well as individual
skills. Ask whether someone is truly underperforming, or whether the system is limiting his
performance.

I spoke with a new agile coach recently who was beginning to doubt he was in the right role. “I just
can’t get this group moving in the right direction,” he said. “Maybe I should go back to being a
developer.”

When he described the situation to me in detail, I began to wonder if any new coach could move
this group in the right direction. The project has several stakeholders who disagree about the
direction of product. The team is split into three factions, which swirl around a long standing
conflict between two team members. One member of the team is skeptical of agile methods and
baits the coach at every opportunity. When he’s not baiting the coach, he’s working to bring other
team members to his point of view. The new coach is struggling in his job. The person who is
supposed to mentor him is missing in action. I don’t think firing him—or giving him a low rating—
is the answer.

It would be more fruitful (and more difficult) to look at the system that assigned a brand new coach
to this project and failed to provide support.
  How do people know they need to improve?
How will people know they need to improve if they don’t have an annual review? The answer to
this question is simple (though not easy): their ScrumMaster will tell them.

A letter or number rating or ranking is an evaluation. It may tell someone he needs to improve, but
it doesn’t tell him what specifically he needs to do differently. In order to improve, people need
clear behavioral descriptions and they need to understand the impact of behavior or results. Some
managers provide specific examples along with the letter or number evaluation grade. However,
most humans resist labels, so they may be busy with the emotional response to the rating, and not
ready to fully listen as the manger gives examples.

Scrum runs on frequent feedback loops. That includes feedback to people on their work
interactions and work results. Feedback on an annual cycle is worse than useless and is totally out
of congruence with agile methods.

When organizations adopt Scrum, sooner or later they bump up against the problems caused by
asking people to work collaboratively and then measuring and rewarding them for individual
effort. But Scrum is all about making issues visible, so we can inspect and adapt. The time has come
look at the evidence about pay and appraisal systems. We may want to succumb to the allure of the
“merit pay” words, but performance appraisals are a barrier to delivering valuable software; it’s
time for them to go.
CHAPTER-VI
RESEARCH
METHODOLOGY
 RESEARCH METHODOLOGY

When we talk of Research Methodology, we not only talk of the research methods but also consider the
logic behind the methods we use in the context of our research study and explain why we are using a
particular method or technique and why we are not using so that research results are capable of being
evaluated either by research himself or by others.

As the title of the project suggests the project is about the study of the performance appraisal in the
company. So my objective is that to know that how the working appraisal should be maintained in the
company & which method is used in this.

Performance Appraisal has been considered as a most significant and indispensable tool for every
organization for the information it provides is highly useful in making decisions regarding various aspects
such as promotions and merit increases. Thus, an attempt was made to study the Performance Technique
in BRITANNIA.

SAMPLE SIZE

The sample size refers to the no. of employees selected from the co. to constitute a sample. The sample
size used for study includes 80 employees from the company.

METHOD OF SAMPLING

The process employed for the sample was Random Sampling. Random Sampling is the sampling in which
every person has an equal opportunity of being selected in the sample. The method is more representative
of the persons as there are no personal biases.
Sample Size: The sample size taken is 80 in which 20 were executives and 60 were supervisors and
workers

Method of Sampling: Random Sampling

 Area of work: Performance Appraisal

Method of Data collection:Primary and Secondary.

PRIMARY DATA
Primary data is that data, which is collected for the first time & thus happens to be original in character.
The primary source to carry out study is:-
a) Questionnaire
b) Schedule
c) Observation
d) Interview

SECONDARY DATA
Secondary data are those which have already been collected by someone else and have already been
passed through the statistical process.
Acc. to Dessel-“Data collected by other persons”

All the data has been collected from internal source, that includes :-
a) Magazines
b) Books
c) Websites
d) Reports
e) Files
f) Staff

SCOPE OF THE STUDY

It provides useful information for research and also introduces the researcher with the practical problem
faced in the company. This research is very important for any Human Resource student to gain a real time
experience. I have done my research at Britannia in Performance Appraisal.
There are many departments in Britannia but my research work is confined with Human Resource
department where I studied that how the Performance Appraisal method should be done.
TOOLS FOR DATA COLLECTION
The data was collected by me from both the sources for my Dessertation report. In primary method of
data collection personal interviews was used and in case of secondary ways of data collection of
magazines and books of Britannia were used.

LIMITATION TO THE STUDY

Following are the limitations of this project:-
♣ While going through the research I had faced a bit problem like frequent visits were required.
♣ Workers and supervisors were not immediately responding.
♣ Due to the tight schedule of managers, there are some difficulties for me to get co-operation and
attention.
♣ Extra large unit to cover.
♣ Large no. of employees in the company, more than 2000, not possible to cover entire lot.
CHAPTER-VII
ANALYSIS
&
FINDINGS
 ANALYSIS & FINDINGS

In BIL, I Came to Know about the appraisal method of an employee. During my visit at BIL, I found
that it works under the guidance of its head office.

 The Appraisal method of an employee was totally based up on the proper test and interview of
an employee.

 I also found that their appraisal Method was very good.

 The time period for appraisal is based on quarterly basis.

 Besides all the above findings I also found that the BIL is the well reputed, well managed and
the well built company. The Management of company is very Hardworking in nature and takes
care about the well being of their staff and workers.

 They are provided with all the required facilities. They are goal oriented and work as a team in a
whole and the main emphasis of the company is on the quality products manufacturing.

 I also found that in the last month of the financial year highest production and the highest
dispatch was made.
 CHAPTER-VIII
RECOMMENDATIONS
 RECOMMENDATIONS

After making a Study on the topic of Performance Appraisal system in PARLE AGRO LTD., I Would
Suggest that the following Points should be implemented:-

 Give the employee a few days notice of the discussion and its purpose.

 Prepare notes and use the completed performance appraisal form as a discussion guide so that
each important topic will be covered.

 Be ready to suggest specific developmental activities suitable to each employee’s needs.

 They would suggest changes in job analysis & standards, if necessary.

 There should be no negative ratings because it affects interpersonal relations and industrial
relations systems.

 The feedback must be positive, corrective on observed behavior and facts and not on
inferences, assumptions or what one has heard from others.

 The final performance rating must be done in a fair manner.

 Appraisal tools must be relate to the employees satisfaction.

CHAPTER-IX

CONCLUSION
 CONCLUSION

At last it is concluded that the company as a whole is a well branded company. The goodwill of the
company is very high.

After having a study of the present system of Performance Appraisal system in Britannia Industries
Limited Rudrapur I have come up with a conclusion that Britannia industries Limited employees are
aware of the system of Performance Appraisal being followed in their organisation i.e. KRA(staff
assessment form). Most of the employees hold the view that the system of KRA is effective to
evaluate and truly reflects their roles and activity.
About the company it is derived that the company is very well managed and its management is
highly devoted towards the quality of their products and the well being of their staff members and
workers.
Staff members and workers are also work very enthusiastically and complete every assignment on
time. Every one is very supportive in nature and cooperate each other. They work effectively and
efficiently to achieve the company goals and the individual goals. This is the reason that the
company is achieving commanding heights and the last month of the financial year 2009-2010 made
the records of highest production and highest dispatch and BRITANNIA as a whole has achieved
the Second position in the FMCG sector in India.
 CHAPTER-X
QUESTIONNAIRE
 Performance appraisal questionnaire:-
I/ Employee information

1. Employee name:
2. Position:
3. Department:
4. Start working from:

II/ Rating scales

Yes / No / NA

III/ Appraisal questions

1. Are u satisfied with the methods of Performance Appraisal?

2. Quality of personal objective setting is poor.

3. Which method of performance appraisal is mostly used in your company?

4. Ratings are sometimes seen as based on subjective judgments?

5-IS Appraisal method of an employee totally based up on the proper test and interview of an employee?
[Link] u satisfied with the methods of Performance Appraisal?

(a) Yes

(b)No

Ans:

Interpretation:-

65% of employees are satisfied with the methods used by company for performance
appraisal,but 35% of employees are not satisfied with the methods used in performance
appraisal.

2. Quality of personnel objective setting is poor ?

(a) Yes

(b)No

Ans:
Interpretation:-

55% of employees think that quality for setting personnel objective is poor where as
45%of employees think its not so.

[Link] method of performance appraisal is mostly used in your company?

(a) Individual Method

(b) multiple-person evaluation method
(c) others
Ans:

Interpretation:-
Multipe –person evaluation method is mostly used according to 5o% of employees,40%
says individual method is used and 10% says other methods are used.
4. Ratings are sometimes seen as based on subjective judgments.

(a) Yes

(b) No

Ans:

Interpretation:-

40% employees says,yes that ratings are sometimes seen to be based on subjective
judgment,where as 60% of employees says no.
5-IS Appraisal method of an employee totally based up on the proper test and interview of
an employee?

(a) Yes

(b) No

Ans:

Interpretation:-
70% of employees says that appraisal method is totally based up no proper test and
interview but 30%of employees does not agree with this.
 CHAPTER-XI
BIBLIOGRAPHY
 BIBLIOGRAPHY
Websites
[Link]
[Link]
[Link]
Books
 PERSONAL MANAGEMENT----------- C.B. MAMORIA
 ESSENTIALS OF HUMAN RESOURSE MANAGEMENT AND
INDUSTRIAL RELATIONS ------------ [Link] RAO
 MANAGING HUMAN RESOURSE------ R.S. DWIVEDI