Coke Performance Appraisal

INTRODUCTION

Human Resources management is pervasive function of management. It is

performed by all managers of various levels in the organization. Human Resources

management is not function of human resources department alone: it is a function of

all departments of the organization. It is concerned helping employees to develop

their potential abilities fully. It considers the development of individual at work, as an

individual and as a member of the group. Personnel policies are designed in the

manner so that intrinsic abilities of the employees may be developed to the best of the

organization.

According to Leon C.Megginson, the term human resources can be thought of

as, “the total knowledge, skills, creative abilities, talent and aptitudes of an

organization’s workforce, as well as the value, attitudes and belief s of the individuals

involved “The term human resource can also explained in the sense that it is resource

like any natural resource.The process of Human Resources Development helps the

employees to acquire /develop technical, managerial and behavioral knowledge, skills

and abilities &moulds the values beliefs and attitudes necessary to perform present &

future roles. The process of performance appraisal helps the employees and the

management to know the level of employee’s performance compared to the

standard/pre-determined level.

Performance appraisal is essential to understand & improve the employees’

performance through human resources development (HRD). In fact, performance

appraisal is the basis for HRD. It was viewed that performance appraisal was useful to

decide upon employee promotion/ transfer, determinate on & the like. But the recent

developments in human resources management indicates that performance appraisal

is the basis for employee development, it indicates the level of desired performance

level, level of actual performance and the gap between these two.

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PERFORMANCE APPRAISAL

Appraising the performance of individuals, groups and organizations are a

common practice of all societies. In some instances these appraisal processes are

structured and formally sanctioned, in other instances they are an informal and

integral part of daily activities. Teachers evaluate the performance of students,

bankers evaluate the performance of creditors, parents evaluate the behavior of their

children and all of us, consciously or unconsciously evaluate our own actions from

time to time. In social interactions, performance is conducted in a systematic and

planned manner to achieve widespread popularity in recent years.

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the performance

appraisal is measuring and improving the actual performance of the employee and

also the future potential of the employee. Its aim is to measure what an employee

does.

DEFINITION

According to Edwin.B.Flippo, "Performance appraisal is the systematic, periodic

and an impartial rating of an employee’s excellence in the matters pertaining to his

present job and his potential for a better job." Performance appraisal is a systematic

way of reviewing and assessing the performance of an employee during a given

period of time and planning for his future.

Performance appraisal is defined as “the systematic description of employee’s job

relevant, strength, weakness.

Performance appraisal may be conducted once in every 6 months or once in a year.

The basic idea of the appraisal is to evaluate the performance of the employee, giving

him a feed back. Identify areas where improvement is required so that training can be

provided.

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NEED FOR THE STUDY

A performance appraisal (or) performance review is a method by which the job

performance of an employee is evaluated (Generally in terms of quality, quantity, cost

& time) typically by the corresponding manager (or) superior. It is a part of guiding

and managing career level. It is a process of obtaining, analyzing and information

about the relative worth of the employee to the organization.

Performance appraisal is needed in every organization at every hierarchy level

to assess the performance of each and every employee in the work spot .Performance

appraisal is a method which highlights the employee needs and opportunities for

personal growth and development. Performance appraisal is essential to understand &

improve the employees’ performance through human resources development (HRD).

In fact, performance appraisal is the basis for HRD. It was viewed that performance

appraisal was useful to decide upon employee promotion/ transfer, determinate on &

the like. But the recent developments in human resources management indicates that

performance appraisal is the basis for employee development, it the indicates the level

of desired performance level, level of actual performance and the gap between these

two. This gap should be bridged through human resource development technique like

training, executive development etc.

Coco-cola company Visakhapatnam which is a multinational company

following good methods of performance appraisal, which in turn helping the

employees to develop their performance as well as their career growth in the

organization. Thus there is a felt need to study the performance appraisal practices at

coco-cola.

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OBJECTIVES OF THE STUDY

1. To study different performance appraisal methods & techniques.

2. To portray the profile of beverages industry with a special focus on Coco-Cola.

3. To study the performance appraisal system for employees in HCCBPVT.LTD.

4. To elicit the opinion of employee of HCCB PVT.LTD regarding the existing

system of performance appraisal.

5. To offer useful suggestions for improving methods of performance appraisal in the

organization.

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METHODOLOGY

SOURCES OF DATA

The sources for collecting the data are from both

Primary Data

Secondary Data

Primary Data

The primary data are those which are collected afresh and for the first time, and

thus happen to be original in character. The utilized tool for collecting this primary

data is through Interview Method or Questionnaire Method.

Total Population: The total population is 272 employees

Sample Size: The sample size is 70.

Sampling technique: Simple random sampling

Secondary Data

The information collected from the annual reports, company journals and other

material and even through web sites is called secondary data.

Secondary data have been collected from the relevant internal records of the

company as well as standard textbooks. At last both the data have been integrated to

make the project exact and relevant.

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LIMITATIONS

1. The performance appraisal study is limited only to the HCCB PVT. LTD, which

is located in Vishakhapatnam.

2. The survey could not be extended to all the employees working in the plant as

they could not spare much time because of their busy schedule of work.

3. The performance appraisal study is conducted on a limited number of

employees and on the entire work force.

4. The answers given by the respondents highly depend on the mood and interest

and thus the accuracy fluctuates sometimes.

5. Sample size is 70 respondents.

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CHAPTERISATION

Chapter1:

The first chapter deals with the introduction to the study about performance

appraisal, methodology and limitations of the study are also discussed.

Chapter2:

The second chapter portrays the profile of beverages Industry with a special

focus on HCCB PVT.LTD

Chapter3:

The third chapter deals with theoretical concepts of performance appraisal

as well as performance appraisal practices adopted by HCCB PVT.LTD.

Chapter4:

The fourth chapter elicits the opinion and views of respondents on the

existing performance appraisal at HCCB PVT.LTD.

Chapter5:

The fifth chapter evaluates the whole report in summary, findings and

suggestions.

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BEVERAGE INDUSTRY PROFILE

WELCOME TO THE COCA – COLA FAMILY:

Coca-Cola Company is the world’s largest manufacturer and distributor of soft drink

syrup and concentrates.

The Coca-Cola Company Details:

Brand Name: Coca – Cola

Drink Type: Soft Drink

Ticker Symbol: KO

Stock Exchange: NYS

Also Does Business As: Coca-Cola

Year Started: 1886

State of Incorporation: DE

Company Website: www.thecoca-colacompany.com, www.cocacola.com

Est. Employees: 92,400

Est. Employees at Location: 8,000

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COCA-COLA: Coca-Cola is the most popular and biggest-selling soft drink in

history, as well as the best-known product in the world. Created in Atlanta, Georgia,

by Dr. John S.Pemberton, Coca-Cola was first offered as a fountain beverage by

mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886,

patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in

every state and territory in the United States. In 1899, The Coca-Cola Company

began franchised bottling operations in the United States. Coca-Cola might owe its

origins to the United States, but its popularity has made it truly universal. Today, we

can find Coca-Cola in virtually every part of the world.

BIRTH OF REFRESHING IDEA:

John Styth Pemberton first introduced the refreshing taste of Coca-Cola in

Atlanta, Georgia. It was May 8th of 1886. He first distributed the new product by

carrying Coca-Cola in jug, down the street to Jacobs Pharmacy. For five cents,

consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design

or accident, carbonated water was teamed with new syrup, producing a drink that was

proclaimed “delicious and refreshing”.

TRADEMARKS:

Company’s trademarks are most valuable assets. The trademark

“Coca-Cola” was registered with U.S. patents and trademark office in 1893,

followed by “Coke” in 1945. Today, the world’s favorite soft drink Coca-Cola is

also the world’s best-known and admired trademark, recognized by more than

90% world population.

STRUCTURE OF COCA-COLA: The five operating segments of Coca-Cola are

1. North America

2. Africa

3. Asia

4. Europe, Eurasia, and Middle East.

5. Latin America.

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Available in the following locations: Afghanistan, Albania, Algeria, American

Samoa, Angola, Antigua & Barbuda, Argentina, Armenia, Aruba, Australia, Austria,

Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize,

Benin, Bermuda, Bolivia, Bosnia & Herzegovina, Botswana, Brazil, British Virgin

Islands, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape

Verde, Cayman Islands, Central African Republic, Chad, Chile, China, Colombia,

Comoros, Costa Rica, Croatia, Curacao, Cyprus, Czech Republic, Democratic

Republic of Congo, Denmark, Djibouti, Dominica, Dominican Republic, Ecuador,

Egypt, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, Fiji, Finland,

France, French Guiana, French Polynesia, Gabon, Georgia, Germany, Ghana, Great

Britain, Greece, Grenada, Guadeloupe, Guam, Guatemala, Guinea, Guinea-Bissau,

Guyana, Haiti, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Israel,

Italy, Ivory Coast, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyzstan,

Latvia, Lebanon, Lesotho, Liberia, Lithuania, Luxembourg, Macau (Macao),

Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Mariana Islands,

Martinique, Mauritania, Mauritius, Mayetta, Mexico, Moldova, Mongolia,

Montserrat, Morocco, Mozambique, Namibia, Nauru, Nepal, Netherlands, New

Caledonia, New Zealand, Nicaragua, Niger, Nigeria, Northern Ireland, Norway,

Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland,

Portugal, Puerto Rico, Qatar, Republic of Congo, Republic of Ireland, Republic of

Korea, Reunion, Romania, Russia, Rwanda, Saint Helena, Saint Kitts and Nevis,

Saint Lucia, Saint Martin, Saint Vincent & the Grenadines, Samoa, Sao Tome &

Principe, Saudi Arabia, Senegal, Serbia & Montenegro, Seychelles, Sierra Leone,

Singapore, Slovakia, Slovenia, Solomon Islands, South Africa, Spain, Sri Lanka,

Suriname, Swaziland, Sweden, Switzerland, Taiwan, Tanzania, Thailand, The

Gambia, Togo, Tonga, Trinidad & Tobago, Tunisia, Turkey, Turkmenistan, Turks &

Caicos Islands, U.S. Virgin Islands, Uganda, Ukraine, United Arab Emirates, United

States, Uruguay, Uzbekistan, Vanuatu, Venezuela, Vietnam.

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OUR MISSION, VISION, VALUES

The world is changing all around us. To continue to thrive as a business over

the next ten years and beyond, we must look ahead, understand the trends and forces

that will shape our business in the future and move swiftly to prepare for what's to

come. We must get ready for tomorrow today. That's what our 2020 Vision is all

about. It creates a long-term destination for our business and provides us with a

"Roadmap" for winning together with our bottler partners.

Our Mission

Our Roadmap starts with our mission, which is enduring. It declares our purpose

as a company and serves as the standard against which we weigh our actions and

decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

Our Vision

Our vision serves as the framework for our Roadmap and guides every aspect of

our business by describing what we need to accomplish in order to continue achieving

sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they

can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that

anticipate and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we

create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and

support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our

overall responsibilities.

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Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture

Our Winning Culture defines the attitudes and behaviors that will be required of us to

make our 2020 Vision a reality.

Live Our Values

Our values serve as a compass for our actions and describe how we behave in the

world.

Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

Focus on the Market

Focus on needs of our consumers, customers and franchise partners

Get out into the market and listen, observe and learn

Possess a world view

Focus on execution in the marketplace every day

Be insatiably curious

Work Smart

Act with urgency

Remain responsive to change

Have the courage to change course when needed

Remain constructively discontent

Work efficiently

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Act like Owners

Be accountable for our actions and inactions

Steward system assets and focus on building value

Reward our people for taking risks and finding better ways to solve problems

Learn from our outcomes -- what worked and what didn’t

Be the Brand

Inspire creativity, passion, optimism and fun

Production

Bottles of Coca-Cola Zero and Coca-Cola Light

Formula

Coca-Cola formula

The exact formula of Coca-Cola is a famous trade secret. The original copy of

the formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the

Trust Company, was the underwriter for the Coca-Cola Company's initial public

offering in 1919. A popular myth states that only two executives have access to the

formula, with each executive having only half the formula. The truth is that while

Coca-Cola does have a rule restricting access to only two executives, each knows the

entire formula and others, in addition to the prescribed duo, have known the

formulation process.

Franchised production model

The actual production and distribution of Coca-Cola follows a franchising

model. The Coca-Cola Company only produces a syrup concentrate, which it sells to

various bottlers throughout the world who hold Coca-Cola franchises for one or more

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geographical areas. The bottlers produce the final drink by mixing the syrup with

filtered water and sugar (or artificial sweeteners) and then carbonate it before filling it

into cans and bottles, which the bottlers then sell and distribute to retail stores,

vending machines, restaurants and food service distributors.[35]

The Coca-Cola Company owns minority shares in some of its largest

franchises, like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic

Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully independent bottlers

produce almost half of the volume sold in the world. Since independent bottlers add

sugar and sweeteners, the sweetness of the drink differs in various parts of the world,

to cater for local tastes.

BRANDS OF COCA-COLA WORLD OVER:

Cola is able to maintain and produce the products worldwide, maintaining a

local approach. Heart of this approach is the bottling system. Before any product is to

be consumed, it has to be produced, packaged and distributed. Coca – Cola reaches

around 6 million people and thus the bottling of the products is done either by the

individual companies or by the companies owned by the company itself, so the

process of acting locally and thinking globally is a competitive advantage to coke.

This is possible with the help of around 200-300 brands of the company.

POPULAR BRANDS:

Carbonated soft drink such as Coca cola, Diet coke Fanta.

Juices and juice drinks such as Minute-Maid, Qoo, Fruitopia, Maaza, and bibo.

Sports drinks such as POWERADE and Aquarius.

Coffee such as GEORGIA Coffee, the best selling non-carbonated beverage in

Japan.

COCA-COLA The best selling soft drink in the world, and the most recognized

and admired trademark around the globe. In April 1985, after extensive taste

testing, the company introduced a new haste of the Coke in United States of

America and Canada. Consumers responded with an unprecedented and

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legendary out pouring of loyalty and affection for the original formula hence the

company has introduced the formula in the year 1985 once again as Coca-Cola

classic.

DIET COKE:

A milestone in innovative product development, diet Coke debuted the

USA in the year 1982 and began a massive international rollout in 1983 as Coca –

Cola light in some market. Named advertising age’s brand of the decade in 1990, diet

Coke remains the number one diet soft drink in USA and around the world.

THUMS UP:

Thums up is a leading carbonated soft dink and most trusted brand in India.

Originally introduced in 1997, Thums up was acquired by the Coca-Cola Company in

1993. Thums up is known for its strong, fizzy taste and confident, mature and

uniquely masculine attitude. This brand clearly seeks to separate the men from the

boys.

LIMCA

“Lime n Lemon”, derived from “nimbu” + “jaisa”, hence “lime sa” Limca has

been lived up to its promise refreshment and has been original thirst choice of

millions of consumers for over three decades.

SPRITE:

Introduced in USA in the year 1961, it is the 5th best selling soft drink in the

world and 4th best selling in the Coca-Cola family.

FANTA:

Introduced in the year 1960, fanta was the 1st soft drink other than Coca-Cola

to be marketed by the company for year. Only the European bottlers of Coca-Cola

G.M.B.H. distributed fanta lime.

MAAZA

Maaza was launched in 1976. Here was a drink that offered the same real taste

of fruit juices and was available throughout the year. In 1993, Maaza currently

dominates the fruit category..

Brand logos

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Local competitors

Pepsi is often second to Coke in terms of sales but outsells Coca-Cola in some

markets. Around the world, some local brands do compete with Coke. In South and

Central America, Kola Real, known as Big Cola in Mexico, is a fast-growing

competitor to Coca-Cola. On the French island of Corsica, Corsica Cola, made by

brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French

region of Bretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola.

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However, The Coca-Cola Company purchased the brand in 1999. In Sweden, Julmust

outsells Coca-Cola during the Christmas season.[45] In Scotland, the locally-produced

Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke

began to outpace its sales.[46] In India, Coca-Cola ranked third behind the leader,

Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company

purchased Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in

India.[48] Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola due to a

United States embargo. French brand Mecca Cola and British brand Qibla Cola,

popular in the Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a

major competitor to Coca-Cola. In Iran and also many countries of Middle East, Zam

Zam Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China,

Future cola is a competitor. In Slovenia, the locally-produced Cockta is a major

competitor to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in

the country's biggest supermarket chain, Mercator. In Israel, RC Cola is an

inexpensive competitor. In Madagascar, Classiko Cola, made by Tiko Group, the

largest manufacturing company in the country, is a serious competitor to Coca-Cola

in many regions. On the Portuguese island of Madeira, Laranjada is the top-selling

soft drink. In the UK, Coca-Cola stated that Pepsi was not its main rival, but rather

Robinson’s drinks.

Revenue

According to the 2005 Annual Report,[5] the company sells beverage products

in more than 195 [6] countries. The report further states that of the more than 50 billion

beverage servings of all types consumed worldwide every day, beverages bearing the

trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion.

Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for

approximately 78% of the Company's total gallon sales.

Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed

as follows:

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37% in the United States

43% in Mexico, Brazil, Japan and China

20% spread throughout the rest of the world

Sponsorship

Coca-Cola has sponsored the English Football League since the beginning of

the 2004-05 season (beginning August 2004). Other major sponsorships include

NASCAR, the NBA, the PGA Tour, NCAA Championships, the 2008 Beijing

Olympics, the NRL and the UEFA European Football Championship, as well as the

hit FOX singing-competition series American Idol. Coca-Cola is also a sponsor of the

nightly talk show on PBS, Charlie Rose.

Coca-Cola India's Corporate Social Responsibility Strategy

This case is about Coca-Cola's corporate social responsibility (CSR) initiatives in

India. It details the activities taken up by Coca-Cola India's management and

employees to contribute to the society and community in which the company

operates.

Coca-Cola India being one of the largest beverage companies in India, realized

that CSR had to be an integral part of its corporate agenda. According to the

company, it was aware of the environmental, social, and economic impact caused by a

business of its scale and therefore it had decided to implement a wide range of

initiatives to improve the quality of life of its customers, the workforce, and society at

large However, the company came in for severe criticism from activists and

environmental experts who charged it with depleting groundwater resources in the

areas in which its bottling plants were located, thereby affecting the livelihood of poor

farmers, dumping toxic and hazardous waste materials near its bottling facilities, and

discharging waste water into the agricultural lands of farmers. Moreover, its allegedly

unethical business practices in developing countries led to its becoming one of the

most boycotted companies in the world.

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Notwithstanding the criticisms, the company continued to champion various

initiatives such as rainwater harvesting, restoring groundwater resources, going in for

sustainable packaging and recycling, and serving the communities where it operated.

Coca-Cola planned to become water neutral in India by 2009 as part of its global

strategy of achieving water neutrality. However, criticism against the company

refused to die down. Critics felt that Coca-Cola was spending millions of dollars to

project a 'green' and 'environment-friendly' image of itself, while failing to make any

change in its operations. They said this was an attempt at green washing as Coca-

Cola's business practices in India had tarnished its brand image not only in India but

also globally. The case discusses the likely challenges for Coca-Cola India as it

prepares to implement its new CSR strategy in the country.

Issues:

» Analyze the CSR strategy adopted by Coca-Cola India.

» Understand the issues and challenges faced by Coca-Cola with regard to its

sustainability initiatives in India.

» Analyze the underlying reasons for the growing criticism against Coca-Cola in India

and explore ways in which the company can address this issue.

» Understand the concept of green washing and discuss and debate whether Coca-

Cola is serious about its water sustainability initiatives.

Coca-Cola India Wins Golden Peacock Global Award for Corporate Social

Responsibility

Coca-Cola India was awarded the prestigious 2008 Golden Peacock Global Award for

Corporate Social Responsibility on Feb. 15 during a global conference in Vilamoura,

Portugal. Dr. Ola Ullsten, former prime minister of Sweden, presented the award to

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Deepak Jolly, Vice-President, Public Affairs & Communication, Coca-Cola India, on

behalf of the Company.

The Golden Peacock Global CSR Award showcases the “human face of business” by

recognizing the continuing commitment of companies “to behave ethically and

contribute to economic development while improving the quality of life of the

workforce, their families and the local community and society at large.”

Her Excellency Ms. Nilima Mitra Ambassador of India in Portugal said that she was

very impressed with the manner in which Coca Cola is fulfilling its CSR in India in

water management and conservation especially the intervention to ensure potable

water to 1000 primary schools in India.

Commenting on the Coca-Cola India winning the award, Atul Singh, President

& CEO, Coca-Cola India, said, “Coca-Cola India has always placed high value on

good citizenship and has undertaken several initiatives for community development

and inclusive growth. We are gratified to receive this global award and are humbled

at being recognized for the little contributions that we have been able to make to

preserve and protect the environment and towards community development. We are

also establishing the Coca-Cola India Foundation which will further strive to make a

positive impact on local communities. The Company remains committed to work with

stakeholders and communities across the country in its bid to contribute to mutual

growth and development.”

The award recognizes Coca-Cola India’s water conservation/management and

community development initiatives. The Company has installed 320 Rain Water

Harvesting (RWH) structures in 17 states and has restored several traditional water

bodies like the Sarai Bawari and Kale Hanuman ki Bawari in

Additionally, the Company recently set a target to reach a “net-zero” balance

with respect to groundwater usage by 2009 and launched the “Elixir of life” project to

provide drinking water to nearly 30,000 children in 100 primary and panchayat

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schools in and around Chennai. The Company plans to provide clean drinking Coca-

Cola India also promotes sustainable packaging through PET recycling and has

undertaken several projects in the areas of primary health, primary education and

infrastructure for local communities. The Company has undertaken these Citizenship

initiatives in partnership with government, NGOs, educational institutions. In 2006,

the World Environment Foundation (WEF) honored Coca-Cola India with the Golden

Peacock Environment Management Special Commendation Award for its world-class

environment practices.

COCA-COLA INDIA

It consists of India, Nepal, Bhutan, Sri Lanka, Bangladesh and Maldives

It is a part of Asia group.

It has won the 2002 Robert Woodruff Award

Best market share of 61%

Record 23% CSD’s growth

It has won numerous marketing excellences awards.

COCA-COLA INTO INDIA:

After the exit of the Coca-Cola in 1977 from India, Parle has established its

reign over the Indian soil and been flourishing since, in leaps and bounds.

Ramesh Chauhanand Prakash Chauhan were steering the phenomenal brands like

Thumps up, Limca, Citra, Gold Spot etc., Soft drink industry was reign by these

wizards for a period of two decades.

In the 1990’s came the era of changes, LPG opened up the gates for the

biggies to flood with the competencies. Coca-Cola re-entered India in the year 1993,

yet another time. Prior to the entry to Coca-Cola, Pepsi was doing a big cats business

and has been eating the biggest pie of the cake every now and then.

In 2003, Coca Cola India pledged to invest a further US $100 million in its

operations. Coca Cola business directly employs approximately 6000 Local people in

India. In India, the company indirectly creates employment for more than 125000

people in related industries through their vast procurement, supply and distribution

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system. Virtually all the goods and services required to produce and market Coca

Cola locally are made in India.

COCA COLA INDIA VALUES:

Leadership: To courage to shape a better future.

Passion: Committed in heart and mind.

Accountability: If it is to be, it’s up to me.

Innovation: Seek, imagine, create and delight.

Integrity: Be real

Collaboration: Leverage collective genius

Quality: What we do, we do well.

COCA COLA TODAY:

Today Coca Cola spread all over India. The following are the various bottling

operations in India.

Table2.1:

> COBO (Company Own Bottling Operation) 25

> FOBO (Franchise Own Bottling Operation) 27

> Co-Pack 32

> Cadbury Schweppes 07

TOTAL : 91

PROGRAM OBJECTIVE AND PHILOSOPHY

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To recognize and develop regional or local talent and ensure that these

talents graduate as full-pledged professionals to play a major role in

organizational development.

SWOT ANALYSIS

“SWOT ANALYSIS” is to suggest ways in which the organization can get

profits from opportunities and strengths and shield itself against weaknesses ant

threats”.

Table 2.2: SWOT ANALYSIS

OPPORTUNITIES THREATS STRENGHTS WEAKNESSESS

Growing markets Economic

slow down

Strong R&D Customers

complaints

Positive brand

images

Buyers

market

Dealers force Long cycle time

Moving to high

technology

Low cost Service recovery

UNIQUE ACHIEVEMENTS

VARIOUS BRANDS OF COCA-COLA IN INDIA

1) Coca-Cola 2) Thums-Up 3) Sprite

4) Limca 5) Fanta 6) Kinley Water

7) Diet Coke 8) Minute-Maid Pulpy Orange

They manufacture 200ml and 300ml returnable glass bottles pack

of the flavors Thums-up, Coca-Cola, Fanta, Sprite, Limca and Kinley Soda (300

ml only).The plant has one manufacturing line for aerated products. The

manufacturing line has the capacity of 600BPM. In 1998, Hindustan has taken

over from Pinakini Beverages and ever since the entry of multinational in the

business. The investments in the industry grew at a faster rate and spending in

the market also increased drastically.

Lots of efforts made by the company in marketing its products in the

remote villages, like free distribution vehicles providing to whole sellers have

paid dividends as the company has 70% of its market spread in the rural belt.

Page No: 23

They distributed the products, both own and sourced, to Nellore Raw

districts and supply productions to distributors. The company has received

several appreciations and prestigious awards for both quality and sales and the

company stood-up best in the year 1994-95 in system of Coca-Cola India, which

is record of sorts for rural bottling company.

Hindustan Coca-Cola Beverages Private Limited is operating in about

200 countries all over the world. Through the world there are 400 brands

produced by the company since 118 years with a turnover of $ 120 billion per

annum

Page No: 24

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED

(HCCBPL), VISAKHAPATNAM:

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED

(HCCBPL), VISAKHAPATNAM was come into existence after VBC Industries

(which was a franchised bottling unit of Parle Group) was acquired by Coca-Cola

India on 10th October 1998. This unit serves the districts of Visakhapatnam,

Vizianagaram, and Srikakulam.

The present Visakhapatnam unit is under Asia Zone of India Division. In

India, there are around 55 units (plants) and in Andhra Pradesh, there are 5 units and

they are at Visakhapatnam, Vijayawada, Hyderabad, Nellore and Sri Kalahasti. These

plants are concerned with the production, sales, marketing, bottling and customer care

of the Coca-Cola Company.

After acquiring the unit, the company is trying to mould the organization so

that it becomes consistent with the Coca-Cola work culture. The top-level

Page No: 25

management has already been professional zed and change is expected at the middle

level also. A total re-organization is around the corner.

An Area General Manger heads Bharat Coca Cola Bottling South East Pvt Ltd.

The various departments are the finance department, the sales department, the plant,

the quality assurance department and the personnel department.

VISAKHAPATNAM PLANT A BRIEF HISTORY:

It was started in the year 1967 when the great visionary Mr.M.V.V.S.Murthy

had started small business of selling soft drinks in Visakhapatnam town. It was started

as a small unit in the industrial estate with as many as of employees, they, being his

partners.

As the days went, the same plant was made into big plant with the help of

government and it was called the “Visakha Bottling Company”(VBC). This

constituted a small number of employees who were the loyalists of the great

visionary.

All this was further improved with the help of taking up the task of becoming

the sole franchise of the Parle products. Then it came to be called as the Gold Spot

Company. They were manufacturing all products of the Parle and they were the sole

distributors of the greatest brands like Thumsup, Limca, Citra, and Gold Spot etc.

The era of takeovers started in 1996 and Coke came in touch with VBC. The

deal was stuck and the coca-cola acquired it in the year 1998. From then on, it became

a sole authority to the property of Coke and since then it was operating as a fully

owned company.

This plant operates with 107 Staff, 10 Managers, 165 Plant Workers, 250

Contract Workers in peak season and 185-180 Contract workers in other seasons. The

plant is located at the picturesque location of Manchukonda gardens and it runs to

around 3 acres of land.

Page No: 26

The plant layout is given which depicts the extent of care taken by the

management to have a very pollution free area and an enjoyable arena to work in. The

entire plant is divided into four segments

.

1. Water treatment plant

2. Syrup preparation plant

3. Carbon dioxide preparation plant

4. Administration

1. THE PLANT:

The entire process in HCCBPL can be simplified and presented as below

Page No: 27

Raw

Syrup

Tank

Ready

Syrup

Tank

Para Mix

MachineFiller Godown

Bottle Washer Unit

Raw Syrup Room:

The Raw Syrup is obtained by mixing water and sugar at 85* C. This is done in a

large cylindrical tank of 6KL Capacity.

Ready Syrup Room:

The ready syrup is obtained by agitating the essence (which is kept in an essence

mix tank) with the raw syrup. The essence is imported from Atlanta and its

formulation is a tightly kept secret.

CIP Room: CIP stands for clean in point. There are two cylindrical tanks of capacity

2 KL each. One is a hot caustic tank maintained at 60*C and the other a hot water

tank kept at 80*C. These solutions are used for cleansing the raw syrup and ready

syrup tanks. The temperature, water/solution level, etc can be maintained and

controlled by the automated CIP system. Before production starts each day, the raw

syrup tank and the ready syrup tank is cleaned in 3 steps.

1. Cool Water Rinsing - 05 min

2. Hot water Circulation - 10 min

3. Cool Water Rinsing - 05 min

At the end of the day, the tanks are again cleaned in 5 steps.

1. Cool Water Rinsing - 05 min

2. Hot Caustic Circulation - 10 min

3. Cool Water Rinsing - 10 min

4. Hot Water Circulation - 15 min

5. Cool Water Rinsing - 10 min

The Raw Syrup Room, Ready Syrup room and CIP are manned by five people.

Page No: 28

Bottle Washer: This is a huge automated machine with five compartments.

Pre-rise Compartment.

Pre-wash Compartment

Soaker Compartment.

Hydro Compartment

Pre-Final Fresh Compartment

The bottles that return from the market are initially checked for damages and

cracks. If found fit, they are put in the bottle washer where they are thoroughly

cleaned. It then goes to the testing area where frontal and bottom testing is done.

The bottles are checked for faded labels, chipped mouth, cracks due to thermal

shock, bruises due to washing, residual liquid from washing and other foreign

debrief.

Filler and Para-mix Machines:

The Ready Syrup reaches the Para-mix Machine where it is cooled by the refrigerant

ammonia. The solution is carbonated and sent to the Filler Machine. The Filler

Machine fills the bottles and caps them at the rate of 600 bottles/min.

The bottles are coded using a coding machine where the price, batch and date

of manufacturing are imprinted. The filled bottles are finally checked for loose

crowns, rising bubbles, cracks and foreign particles, the level of the liquid etc.

The filled bottles are shifted to the go down which has a total capacity of

30000 crates. At any time, the go down will have a stock of 20000 to 25000 crates.

OTHER SECTIONS

Generator Room:

Two high-powered generators of 250 KVA and 125KVA are used for

providing energy.

Page No: 29

Chilling Plant:

It supplies ammonia, which acts as the refrigerant.

Water Treatment Plant (WTP) :

Water is obtained from pipelines and bore wells. This water is chemically

treated.

Boiler Plant:

It provides steam to Bottle Washer Unit, Raw Syrup Room and Ready Syrup

Room.

2. PRODUCTION DEPARTMENT:

The production department is headed by a Factory Manager who reports

directly to the Area General Manger (AGM).

One Engineer is for the inside battery limit i.e., Plant Equipments and Maintenance

and the second Engineer is for outside battery limits; for the utilities like Generator

Room, Boiler, Water Treatment Plant and the Maaza unit which is located at some

distance. These four people report to the Plant Manger.

There are 165 workers in the plant, which includes ladies, who are otherwise engaged

in housekeeping into the production line. Depending on the demand, the company

operates three types of shifts.

1. General Shift - 8 am – 5 pm

2. 2 Shifts - 6 am – 2 pm and 2 pm – 10 pm

3. 24 hours - 6 am – 6 pm and 6 pm – 6 am

Women are employed only in the general shift (8 am – 5 pm) or the A shift (6

am – 2 pm). In other shifts, casual labors are used.

Page No: 30

PRODUCTION PROCESS

The company has installed a semi automatic plant layout. The

present capacity of the plat is 600 crate / hr i.e., 4,800 crates per shift of 8 hr.

During the months of March to June due to peak demand, the plant is filled with

full capacity i.e., 5,500 crates per shift, with an extended shift of 12 hr. During

the other months of production per shift is 3, 3000 crates per shift.

STAGES IN PRODUCTION PROCESS

1. Water Treatment 2.Raw Syrup Making 3.Ready Syrup Making

4. Bottling Process 5.Quality Control

PRODUCTION SCHEDULE

The production schedule fixed daily by taking into consideration the

market demand, the availability of empty bottles and the inventory position of

filled bottles. The storage capacity of the go down is at present 90,000 crates,

which also limits the production schedule. The production schedule for each

brand is fixed daily. Production is generally carried out in 2 shifts. In summer,

the demand reached its peak and production will be extended 12 hr shifts.

RAW MATERIALS

Raw materials are the flavors essence concentrate supplied by Parle,

sugar and water. Sugar purchased in bulk from the wholesale sugar market.

The requirement of sugar for 20-25 production days kept in stock and

requirement for a month indented in advance. Water required met by municipal

supply, Water from bore well and tube wells also used when required. Water

further treated with chemicals. Caps are supplied by specialized firms like L&T

and metal box India Ltd.,

INGREDIENTS

1. Water 2.Sugar 3.Carbon-dioxide (CO2)

Page No: 31

4. Flavour (for soda only water, CO2 used)

3. QUALITY ASSURANCE DEPARTMENT:

A Plant Manger heads the Quality Assurance department. In addition to him,

there are seven chemists. The Deputy Manager reports to the Plant Manager.

The department tests and controls the quality of waters, caustic solution and

the final beverage. The final beverage is tested for gas and brix i.e., the sugar content.

Samples are taken for every half an hour. Any deviation from the specified

standards is reported and rectified immediately. In the micro testing lab, the water and

beverage is tested for contamination. If any indication of contamination is found out,

the QA department has the right to stop production immediately.

In the general lab, the products are tested for flavor and freshness. In addition

to this, the department does as shelf test. Five bottles are collected per day and they

are kept in the shelf for a period of three months. Later they are tested. Any

complaints from the market are promptly attended to. The batch number, months are

noted and a corresponding sample is tested from the shelf. Any complaint from the

market is received by the Sales team who in turn informs the QA department. One

chemist is in charge of spot-checking of fountains.

The Deputy General Manager or any of his subordinates in the QA department

have the right to stop production and order a sterilization process for the entire plant.

They can even bypass the plant manager in this regard.

The department sends daily reports to the AGM and the Plant Manger. In case

of any urgent need, he meets the AGM personally and sorts out the issue.

4. SALES DEPARTMENT:

The sales department has a general Sales Manager and three Associate Sales

Managers. Of the three Sales Managers, one person is in charge of city sales while

the others look after district and Orissa sales. All of them report to the AGM directly

who interacts with the Sales Department on a daily basis and virtually leads the team.

Page No: 32

District Sales

In addition to the Sales Manager, there is a Deputy Sales Manger, 4 Assistant

Sales Manger and below them 2 salesmen each. Each distributor has a target, which

is fixed by the Sales Manager in consultation with the distributor. From the

distributor, it reaches the retailer outlet. The Company Sales Force helps the retailers

and distributors achieve their targets through promotions and other incentives.

The sales Force in far locations report to the Sales Manger once a week.

Based on their reports, new incentive schemes and offers are made. The previous

week’s performance is evaluated and targets for the next week are discussed.

City Sales:

Under the Sales Manager (city), there are supervisory staff and 113-field force.

The company has no distributors in the city of Visakhapatnam. They directly supply

to the retailers. There are twenty routes with a truck covering each route. Sales man

and two sales helpers accompany each truck. There is a Sales Officer for every two

routes. He moves around on a bike and sees to it that all outlets are covered. Any

urgent messages are communicated to the Sales Force through mobiles.

There are approximately 5600 outlets in Visakhapatnam city. In loop areas

i.e., areas where the company truck cannot go, a fat dealer is appointed. He supplies

to the remote areas and get about 5% discount on the total sales.

Bottles and crates are provided to a retailer after a certain deposits is paid. In

peak season when there is excess demand, crates are also provided on loan. This does

not involve money transactions and retailers may take 10 crates on loan, which he

will return later. Coolers are installed at retail outlets depending on the retailer’s

requirement and sales volume. The sales man on his visit sees to it that the coolers

are properly maintained. Any serious problem is rectified by the Service Engineers

who are on contract basis with the company.

Targets are fixed and the Sales men and sales helpers get incentives for

achieving and exceeding the targets. On returning to the Sales Depot, he submits the

Page No: 33

load sheets, the Cash Sales Invoice, Cash Detail Form and the Settlement Sheet. The

Sales Manager interacts with his sales team in the depot every morning where the

latest market situation is discussed. The Sales Manager does not hand over charge to

any one person during his absence. The AGM manages the show. Recruitment

and Selection to this department is done by the Personnel Department. There is no

regular training program and the department is well staffed.

A person who reports to the Sales Manager handles Advertising and

merchandising. The budget is fixed at Bangalore. This is split up and allocated to

different departments. The artwork, the location, the type of display etc., is decided

by the advertising in the charge. The medium used includes canopy, glow signs,

hoardings, paints etc. The company provides for electricity charges in selected

outlets.

5. Customer Service Support System:

There is Customer Service Support System (CSSS) which functions under the

CSSS for entire Andhra Pradesh, locally it reports to the AGM. In the soft drinks

industry, the customer and consumer is defined separately. The customer is one who

resells for profit. This includes the retailer and the distributor. By consumer, they

mean the end user of the products.

The CSSS studies the distribution network and suggest improvements where

necessary. The viability of existing routes, developing new routes, distributing and

merchandising planning are all functions of CSSS. It even suggests training programs

for the Sales Force depending on the need. The function of CSSS can be briefly

summed up as “Managing the Middlemen”.

Consumer Response Co- Ordination Unit (CRC):

The Consumer Response Co-Ordination Unit has the Sales Manager. This unit

is temporarily handled by the CRSS. The CRC unit receives complaints and

grievance from the market either through phone calls or through the sales force. It

Page No: 34

sends regular reports to the Corporate Office. These reports are useful for dealing

with similar situations arising in different parts of the country.

DISTRIBUTION PATTERNS

Chart 2.1: Direct operation

Indirect operation

6. FINANCE DEPARTMENT:

A Finance Manager heads the Finance Department. This is a very powerful

post in the company and the Finance Manager is the second in command of the unit.

The entire plant and operations keep in abreast of their daily functioning, while the

Page No: 35

Plant C & F Distributors Customers Consumers

Super stockiest

Route Agents

Plant Depot (Ko) Retailers Consumers

Area marketing

AGM mainly attends to the sales functions. The Finance Department can be broadly

segmented into two, the accounting sections and the payables/Receivables i.e.

working Capital. In addition to these sections like Shipping Stores, Purchase,

Administration and taxes report to the FM. The annual budgets are prepared in unit

level Regional Office. The FM makes allocation for the different departments in

consultation with the department heads.

SOURCES OF FINANCE

Coca- Cola being an MNC has a wide network and market for its

products worldwide. The finance to the company comes from the corporate

office and financial institution abroad. The units which have been setup in India

are subsidiary concerns of the group. These units mobilize their own funds and

pay a lumps amount to the corporate group for getting technology and the

product specification to be manufactured in the company, for which the

formulation comes from the office situated abroad.

As these units are franchisee units of the company, the owners of these

companies, have to perform individually in establishing the market and in the

distribution of the products in the areas specified. These companies are generally

situated in a Economical Processing Zones (EPZ’s) are industrial units where by

they get subsidies in various forms from the Govt. as well as financial

institution. The unit under study has secured loans from the central Govt. and

APEDA (Ministry of Commerce) for setting up its unit at Vizag

The Finance Department can be broadly segmented into two, the

accounting sections and the Payables or Receivables i.e., Working Capital. In

addition to these sections like Stores, Shipping, Purchase, Administration and

taxes report to the Finance Manager. The annual budgets are prepared in unit

level Regional Office. The Finance Manager makes allocations for the different

departments in consultation with department heads.

Page No: 36

7. STORES:

There is a Stores In-charge and four other people to assist him. All material

used for production are under the Stores In-charges once they enter the company

premises. This includes sugar, essence, crown etc. The Stores Department reports to

the Finance Manager and daily reports are sent to him. Materials are stocked in

accordance with the production schedule and sales target.

8. SHIPPING:

This functions under the Shipping In-charge who notes the full position in go

down. These units report to the Finance Manager.

9. PURCHASE:

This section functions with two people including the purchase In-charge who

reports to the Finance Manager. The plant informs the store of the requirements

that in turn make a purchase matter whether concerning the plant request to the

Purchase Department. Every purchase matter whether concerning the plant or

office is handled by the Purchase Department.

10. PERSONNEL DEPARTMENT:

Matters like recruitment, selection, wage structure, etc is decided at

Hyderabad. The respective department heads sanctions leaves for the staff. The

department is conducting training programs in computers and Spoken English so as

to better equip its people to handle the change, the organization is undergoing.

Table 2.3: MAN POWER PARTICULARS

S.No Category Numbers

1. Permanent 272

2. Temporary 60

3. Contract Labor 200

Total 532

Page No: 37

The total manpower is 532 and there are no Bloc workers in the organization.

Permanent workers are workmen (165) staff (107), woman associates are permanent

(7) temporary (2) members, managers are (9) and market developers are (43)

members in the organization.

Organizational Structure

ORGANISATION CHART:

Organization structure is a basic framework, which the manager’s decision-

making behavior takes place. Structure basically deals with relationships.

Organization structure is the pattern of relationships among various components or

parts of the organizations. This prescribes the relationship of various activities and

positions.

Organization chart is the vital tool for providing information about

organization relations.

ORGANISATION STRUCTURE OF HINDUSTAN COCA-COLA

BEVERAGES PRIVATE LIMITED:

The organization structure plays a vital role in the smooth functioning of the

Hindustan Coca-cola beverages Pvt. Ltd. Visakhapatnam. The organization chart for

the firm depends on the customer coverage.

The personnel department is under the main company i.e., Hindustan Coca-

Cola Beverages Private Limited, Visakhapatnam. It is a bottling unit, so in the

bottling unit, there are only three departments i.e., accounts, production, and

marketing and human resource.

Page No: 38

Organizational Structure

HRD ORGANIZATION CHART (VISAKHAPATNAM UNIT)

Page No: 39

A.G.M.M

Plant Manager

Quality Manager

Finance Manager

HR Manager

Sales Manager

Senior Officer

Senior Executive

Assistant Manager

Assistant Manager

Assistant Sales Manager

Executive

HR EXECUTIVE(G.Srinivasa

Rao)

HR EXECUTIVE

(S.Srinivasa rao)

HR SALES EXECUTIVE

(S.Ismail)

HR MANAGER (N.v.s.Ramana

murty) )))murthy)

Human Resource Management Philosophy & Policy

The Coca-Cola Company fosters an environment that is productive, healthy,

and safe for all its employees. The company has policies to help and guide the

behaviors of the employees that shape the work at the end.

The HRD has staff relationship with other depots. The company is basically a

production and sales based. Therefore it mainly looks after the core areas of the org

that is sales, marketing, logistics and production departments. The HR dept is

responsible for advising all ranges from managing Director to the lowest live

supervisor. They also perform various functions of employee Training development.

AWARDS

COCA-COLA honored with best Management Award on Labour day,

may 1st,2005 by Andhra Pradesh Government(for its people management

practices)

PATNA unit wins (CSR) “Corporate Social Responsibility “award for

the year 2004-2005 by J.M.Institute of Speech and Hearing, Patna. (for

continued support provided towards uplifting of physically challenged children)

HCCBPL has been honored the Best Private Company in State by the

Government of Tamil Nadu at Chennai on 16th Aug 2004.

All India Division COBO’s are now ISO 14001 certified.

Page No: 40

CONCEPT OF PERFORMANCE APPRAISAL

PERFORMANCE APPRAISAL is the process of appraising the

performance of individuals, groups and organizations are a common practice of all

societies. In some instances these appraisal processes are structured and formally

sanctioned, in other instances they are an informal and integral part of daily activities.

Teachers evaluate the performance of students, bankers evaluate the performance of

creditors, parents evaluate the behavior of their children and all of us, consciously or

unconsciously evaluate our own actions from time to time. In social interactions,

performance is conducted in a systematic and planned manner to achieve widespread

popularity in recent years.

Performance appraisal is the process of obtaining, analyzing and recording

information about the relative worth of an employee. The focus of the performance

appraisal is measuring and improving the actual performance of the employee and

also the future potential of the employee. Its aim is to measure what an employee

does.

DEFINITION

"Performance appraisal is the systematic, periodic and an impartial rating of an

employee’s excellence in the matters pertaining to his present job and his potential for

a better job." Performance appraisal is a systematic way of reviewing and assessing

the performance of an employee during a given period of time and planning for his

future. Performance appraisal is defined as “the systematic description of employee’s

job relevant, strength, weakness.

Performance appraisal may be conducted once in every 6 months or once in a year.

The basic idea of the appraisal is to evaluate the performance of the employee, giving

him a feed back. Identify areas where improvement is required so that training can be

provided. Give incentives and bonus to encourage employees etc.

Page No: 41

HISTORY OF PERFORMANCE APPRAISAL

Its roots in the early 20th century can be traced to Taylor’s pioneering time and

motion studies as a distinct and formal management procedure used in the evaluation

of work performance, appraisal really dates from the time of the second world war-

not more than 60 years ago.

Performance appraisal systems began as simple methods of income justification.

That is, appraisal was used to decide whether or not salary or wage of an individual

employee was justified.

The process was firmly linked to material outcomes. If an employee’s performance

was found to be less than ideal, a cut in a pay would follow. On the other hand, if

their performance was better than the supervisor expected, a pay rise was in order.

Little consideration was given to the developmental possibilities of an appraisal, it

was felt that a cut in pay, or a rise, should provide the only required impetus for an

employee to either improve or continue to perform well.

It was felt that employees with roughly equal work abilities could be provided with

same amount of money, but they had different levels of morale, motivation &

performance. So basically the payment structure was focused on the amount of work

rather than the outcome. Morale and self-esteem was the issue which had a major

impact on the performance of different individuals.

As a result, the traditional emphasis on reward outcomes was progressively rejected.

In the 1950’s in the United States, the potential usefulness of appraisal as tool for

motivation and development was gradually recognized. The general model of the

performance appraisal, as it is known today, began from that time.

Page No: 42

OBJECTIVES OF PERFORMANCE APPRAISAL

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

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

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify

the training and development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the

organization.

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

performed by the employees.

To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.

To reduce the grievances of the employees

TABLE 3.1: TRENDS IN PERFORMANCE APPRAISAL:

Item Former Emphasis Present Focus

Terminology Merit-rating Performance appraisal

Purpose Determine wage increase,

Promotion, transfer, lay off.

Development of the individual,

improved job performance.

Application For rank and file workers For managerial and technical

personnel.

Factors rated Personal traits Performance, result or

accomplishments.

Techniques Rating scales with emphasis

upon scores

Mutual goal-setting, critical

incidents, group appraisal.

Page No: 43

PURPOSE OF PERFORMANCE APPRAISAL

1. Feedback to the employee

Performance appraisal is beneficial because it provides feedback to the

employee about his performance. It identifies the areas for improvement so that

employee can improve itself.

2. Training and development

Due to performance appraisal it is easy to understand what type of training is

required for each employee to improve himself accordingly training programs can be

arranged.

3. Helps to decide promotion

Performance appraisal provides a report about the employee. Based on this

report future promotions are decided, incentives, salary increase is decided.

4. Validation of selection process

Through performance appraisal the HR department can identify whether any

changes are required in the selection process of the company normally a sound

selection process results in better performance and positive appraisal.

5. Deciding transfers and lay off of the worker

Employee with specific talent can be transferred to places where their talents

are utilized properly; similarly decisions regarding termination of employees depend

upon performance appraisal reports.

6. Human resource planning and career development

Page No: 44

Companies can plan for future vacancies at higher levels based on performance

appraisal reports. Similarly career planning can be done for the employee on the

performance appraisal report.

IMPORTANCE OF PERFORMANCE APPRAISAL

Performance appraisal is an essential and inescapable managerial activity.

Appraisal is necessary for all important decisions relating to people, such as

placement and promotion, remuneration and reward, training and development, as

well as long-term man power planning and organization development.

In recent years, efforts have been made to use appraisal systems for

motivation, for more effective communication, for strengthening superior-subordinate

relationships, for goal setting and work planning and for improving the total

performance of the organization. But in spite of its importance, uneasiness about

appraisal has been a long-standing feature of management. There is no doubt during

the past three decades, many developments have taken place and many innovations,

have been made in managerial appraisal system. Still, many issues remain unresolved.

Available literature on the subject reveals than even in the western

countries, where systematic appraisals have been widely practice over a much longer

period than in India and where a fair amount of empirical as well as theoretical

research on the relevant issues has been conducted, serious doubts continue to persist

about various aspects of appraisal

Page No: 45

Approaches to Performance Development

Performance appraisal - Traditional approach

Traditionally, performance appraisal has been used as just a method for

determining and justifying the salaries of the employees. Than it began to be used a

tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for

the past performance of the employees.

This approach was a past oriented approach which focused only on the past

performance of the employees i.e. during a past specified period of time. This

approach did not consider the developmental aspects of the employee performance

i.e. his training and development needs or career developmental possibilities. The

primary concern of the traditional approach is to judge the performance of the

organization as a whole by the past performances of its employees

Therefore, this approach is also called as the overall approach. In 1950s the

performance appraisal was recognized as a complete system in itself and the Modern

Approach to performance appraisal was developed.

Performance appraisal - Modern approach

The modern approach to performance development has made the

performance appraisal process more formal and structured. Now, the performance

appraisal is taken as a tool to identify better performing employees from others,

employees’ training needs, career development paths, rewards and bonuses and their

promotions to the next levels.

Appraisals have become a continuous and periodic activity in the organizations.

The results of performance appraisals are used to take various other HR decisions like

promotions, demotions, transfers, training and development, reward outcomes. The

modern approach to performance appraisals includes a feedback process that helps to

strengthen the relationships between superiors and subordinates and improve

communication throughout the organization.

Page No: 46

METHODS OF APPRAISAL

1. Checklist 1. Management by objective

2. Graphic rating scales 2. 360 degree appraisal

3. Forced choice method 3. Assessment centers

4. Forced distribution method 4.Behaviourally anchored rating

scales

5. Critical incident method

6. Performance tests and observations

7. Essay method

TRADITIONAL METHOD

1. CHECKLIST

A checklist of statements on the traits of the employee and his/her job is

prepared in two columns via, a ‘yes’ column and a ‘No’ column. All that rater

should do is tick the ‘yes’ column if the answer to the statement is positive and in

column ‘No’ if the answer is negative. After Ticking off against each item, the

rater forwards the list. To the HR department where the actual assessment of the

employee takes place. The HR department assigns certain points to each ‘Yes’ the

total score is arrived at. When points are allotted to the checklist, the technique

becomes a weighed checklist.

2. GRAPHIC RATING SCALES

This is the simplest and most popular technique for appraising employee

performance. Graphic rating scale refers to using specific factors to appraise people.

The entire appraisal is presented in the form of a chart. The chart contains certain

Page No: 47

TRADITIONAL METHODS MODERN METHODS

columns which indicate qualities which are being appraised and other columns which

specify the rank to be given.

TABLE 3.2: E.g. Employee A

Quality of work Quantity of work Intelligence

Excellent

Very good

Good

Satisfactory

Poor

The senior has to put a tick mark for a particular quality along with the ranking.

Such charts are prepared for every employee. According to the department in which

they work. Sometimes the qualities which are judged may change depending upon the

department.

3. FORCED CHOICE METHOD

This approach is known as the forced choice method because the rater is

forced to select the statements, which are readymade. The rater is given a series of

statements about an employee. These statements are arranged in block of two or

more, and the rater indicates, which statement is most or least descriptive of the

employee. As in the checklist method, the rater is simply expected to select the

statements that describe the rate. The HR department does the actual assessment.

4. FORCED DISTRIBUTION METHOD

The forced distribution method seeks to overcome the problem by

compelling the rate to distribute the rates on all points on the rating scale. The

second method operated under an assumption that the employee performance level

conforms to a normal statistical distribution. It is assumed that employee

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performance levels conform to a bell-shaped curve. For example, 10% at the top

end of the scale is excellent, 20% good, 40% average, 20% of the lowest grade is

below average.

5. CRITICAL INCIDENTS METHOD

The approach focuses on certain critical behaviors of an employee that

make all the difference between effective and non-effective performance of a job.

The superiors as and when they occur record such incidents.

6. PERFORMANCE TESTS AND OBSERVATIONS

With a limited number of jobs, employee assessment may be based upon a

test of knowledge or an actual demonstration of skills. The test must be reliable

and validated to be useful. Even then, performance tests are apt to measure

potential more than actual performance.

7. ESSAY METHOD

Under this method the supervisor makes a free form, open ended appraisal of an

employee in his own words and puts down his impressions about his impressions

about the employee. The description is always as factual and concrete as possible.

No attempt is made to evaluate an employee in a quantitative manner. The

strength or the essay method depends on the writing skills and analytical ability of

the rater. The essay method can consume much time because the rater must collect

the information necessary to develop the essay and then he/she must write it.

MODERN METHODS

1. 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.

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The stakeholders being the immediate supervisors, team members, customers, peers,

and self. Any one who has useful information on ‘how an employee does the job’ may

be one of the appraisers. It facilitates greater self development of the employee. It

enables an employee to compare his/her perceptions about self with perceptions of

others. By design, the 360 degree appraisal is effective in identifying and measuring

interpersonal skills, customer satisfaction, and team building skills.

2. MANAGEMENT BY OBJECTIVES (MBO)

The MBO concept as was conceived by Mr. Drucker reflects a management

philosophy that stress goals rather than methods and which values and utilizes

employee contribution. It is result oriented. Application of MBO in the field of

performance appraisal in four steps:

A. To establish the goals each subordinate is to attain. The goals typically

refer to the desired outcome to be achieved; these goals can then by used

to evaluate employee performance.

B. Setting the performance standard for the subordinated in a previously

arranged time period. As subordinates perform they know fairly well

there is to do, what has been done, and what remains to be done.

C. The actual level of goal attainment is compared with the goals that were

not met upon. The evaluator explores reasons for the goals that were not

met and for the goals that were exceeded. This step helps determine

possible training needs.

D. Establishing new goals and, possibly, new strategies for goals not

previously attained. Subordinates who successfully reach the established

goals may be allowed to participate more in the goal setting process the

next time. The process is repeated.

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3. ASSESSMENT CENTERS

An assessment centre is a central location where managers may come together to

have their participation in job related exercises evaluated by trained observers. The

principle idea is to evaluate managers over a period of time, say one to three days, by

observing their behavior across a series of select exercises or work samples. Assesses

are requested to participate in in-nascent exercise work groups(with leaders), role

playing, and other similar activities, which require the same attributes for successful

performance, as in actual job. Self appraisal and peer evaluation are also throw in for

final rating. The characteristics assessed in a typical assessment centre include

assertiveness, persuasive ability, communicating ability, planning and organization

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ability, self confidence, resistance to stress, energy level, decision making, sensitivity

to the feeling of others, administrative ability, creativity, and mental alertness.

8. BEHAVIORALLY ANCHORED RATING SCALES (BARS)

Behaviorally Anchored Rating Scales (BARS) is a relatively new technique

which combines the graphic rating scale and critical incidents method. It consists of

predetermined critical areas of job performance or sets of behavioral statements

describing important job performance qualities as good or bad (for eg. the qualities

like inter personal relationships, adaptability and reliability, job knowledge etc).

These statements are developed from critical incidents.

In this method, an employee’s actual job behavior is judged against the desired

behaviour by recording and comparing the behavior with BARS. Developing and

practicing BARS requires expert knowledge.

Developing BARS typically requires five steps

1. Generate critical incidents Ask persons who know the job (jobholders

and / or supervisors) or describe specific illustrations (critical incidents) of

effective and ineffective performance.

2. Develop performance dimensions Have these people cluster the incidents

into a smaller set of (5 or 10) performance dimensions, and define each

dimensions such as salesmanship skills.

3. Reallocate incidents To verify, have another group of people who also

know the job reallocate the original critical incidents. They get the cluster

definitions (from step 2) and the critical incidents and must reassign each

incident to the cluster they think it fits best. Retain a critical incident if some

percentage (usually 50% to 80%) of this second group assigns it to the same

cluster as did the first group.

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4. Scale The Incidents This second group then rates the behavior described by

the incidents as to how effectively or ineffectively it represents performance

on the dimensions (7 to 9 point scales are typical).

5. Develop a final instrument

Choose about six or seven of the incidents as the dimension’s behavioral

anchors.

THE APPRAISAL PROCESS

The appraisal process begins with the establishment of performance

standards; these should have evolved out of job analysis and the job description.

CHART 3.1:

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ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the

standards which will be used to as the base to compare the actual performance of the

employees. This step requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of their contribution to the

organizational goals and objectives. The standards set should be clear, easily

understandable and in measurable terms. In case the performance of the employee

cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS

Once set, it is the responsibility of the management to communicate the

standards to all the employees of the organization.

The employees should be informed and the standards should be clearly explained

to the. This will help them to understand their roles and to know what exactly is

expected from them. The standards should also be communicated to the appraisers or

the evaluators and if required, the standards can also be modified at this stage itself

according to the relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE

The most difficult part of the Performance appraisal process is measuring the

actual performance of the employees that is the work done by the employees during

the specified period of time. It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the

appropriate techniques of measurement, taking care that personal bias does not affect

the outcome of the process and providing assistance rather than interfering in an

employees work.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE

The actual performance is compared with the desired or the standard

performance. The comparison tells the deviations in the performance of the

employees from the standards set. The result can show the actual performance being

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more than the desired performance or, the actual performance being less than the

desired performance depicting a negative deviation in the organizational performance.

It includes recalling, evaluating and analysis of data related to the employees’

performance.

DISCUSSING RESULTS

The result of the appraisal is communicated and discussed with the employees on

one-to-one basis. The focus of this discussion is on communication and listening. The

results, the problems and the possible solutions are discussed with the aim of problem

solving and reaching consensus. The feedback should be given with a positive attitude

as this can have an effect on the employees’ future performance. The purpose of the

meeting should be to solve the problems faced and motivate the employees to perform

better.

DECISION MAKING

The last step of the process is to take decisions which can be taken either to

improve the performance of the employees, take the required corrective actions, or the

related HR decisions like rewards, promotions, demotions, transfers etc.

CHALLENGES OF PERFORMANCE APPRAISAL

An organization comes across various problems and challenges Of Performance

Appraisal in order to make a performance appraisal system effective and successful.

The main Performance Appraisal challenges involved in the performance appraisal

process are:

Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems faced by the

top management. The performance data to be considered for evaluation should be

carefully selected. For the purpose of evaluation, the criteria selected should be in

quantifiable or measurable terms

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Create a rating instrument

The purpose of the Performance appraisal process is to judge the performance of the

employees rather than the employee. The focus of the system should be on the

development of the employees of the organization.

Lack of competence

Top management should choose the raters or the evaluators carefully. They should

have the required expertise and the knowledge to decide the criteria accurately. They

should have the experience and the necessary training to carry out the appraisal

process objectively.

Errors in rating and evaluation

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

influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal

process. Therefore the rater should exercise objectivity and fairness in evaluating and

rating the performance of the employees.

Resistance

The appraisal process may face resistance from the employees and the trade unions

for the fear of negative ratings. Therefore, the employees should be communicated

and clearly explained the purpose as well the process of appraisal. The standards

should be clearly communicated and every employee should be made aware that what

exactly is expected from him/her.

LIMITATIONS OF PERFORMANCE APPRAISAL

The following are the limitations of performance appraisal

1. HALO EFFECT

In this case the superior appraises the person on certain positive qualities only.

The negative traits are not considered. Such an appraisal will no give a true picture

about the employee. And in some cases employees who do not deserve promotions

may get it.

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2. HORN EFFECT :In this case only the negative qualities of the employee are

considered and based on this appraisal is done. This again will not help the

organization because such appraisal may not present a true picture about the

employee

3. CENTRAL TENDENCY

In this case the superior gives an appraisal by giving central values. This prevents a

really talented employee from getting promotions he deserves and some employees

who do not deserve any thing may get promotion.

4. LENIENCY AND STRICTNESS

Some bosses are lenient in grading their employees while some are very strict.

Employee who really deserves promotions may loose the opportunity due to strict

bosses while those who may not deserve may get benefits due to lenient boss.

5. SPILL OVER EFFECT

In this case the employee is judged +vely or –vely by the boss depending upon

the past performance. Therefore although the employee may have improved

performance, he may still not get the benefit.

6. FEAR OF LOOSING SUBORDINATES AND SPOILING RELATIONS

Many bosses do not wish to spoil their relations with their subordinates. Therefore

when they appraise the employee they may end up giving higher grades which are not

required. This is a injustice to really deserving employees.

7. GOODWILL AND TECHNIQUES TO BE USED Sometimes a very strict

appraisal may affect the goodwill between senior and junior. Similarly when different

departments in the same company use different methods of appraisal it becomes very

difficult to compare employees.

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8. PAPER WORK AND PERSONAL BIASED

Appraisal involves a lot of paper work. Due to this the work load of HR

department increases. Personal bias and prejudice result in bosses favoring certain

people and not favoring others.

STEPS FOR MAKING APPRAISAL SUCCESSFUL

1. Existence of an atmosphere of confidence and trust.

2. The results of performance rather than personality traits should be given due

weight.

3. The supervisor should analyze the strengths and weaknesses of the employee and

advise him.

4. The appraisal programmed should be less time-consuming and less costly

5. The results of appraisal should be immediately communicated to the employee.

6. A post appraisal interview should be arranged.

7. Training can be used to improve the standards of performance appraisal.

8. The right appraisal tools should be chosen to minimize arising problem.

ADVANTAGES OF DOING PERFORMANCE APPRAISALS

They provide a record of performance over a period of time.

They provide an opportunity for a manager to meet and discuss performance

with an employee.

Provide the employee with feedback about their performance and how they

completed their goals.

Provide an opportunity for an employee to discuss issues and to clarify

expectations with their manager.

Offer an opportunity to think about the upcoming year and develop employee

goals.

Can be motivational with the support of a good reward and compensation

system.

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DISADVANTAGES OF PERFORMANCE APPRAISAL

If not done appropriately, can be a negative experience.

Are very time consuming, especially for a manager with many employees.

Are based on human assessment and are subject to rater errors and biases.

If not done right can be a complete waste of time.

PERFORMANCE APPRAISAL PRACTICES AT COCA-COLA

In Coca-Cola company the performance appraisal is done by using the traditional

method i.e.; Graphic rating method. This is the simplest and most popular technique

for appraising employee performance. Graphic rating scale refers to using specific

factors to appraise people. The entire appraisal is presented in the form of a chart. The

chart contains certain columns which indicate qualities which are being appraised and

other columns which specify the rank to be given.

TABLE 3.2: E.g. Employee A

Quality of work Quantity of work Intelligence

Excellent

Very good

Good

Satisfactory

Poor

The senior has to put a tick mark for a particular quality along with the ranking.

Such charts are prepared for every employee. According to the department in which

they work. Sometimes the qualities which are judged may change depending upon the

department.

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In Coca-Cola Company the Hr.executives will prepare the performance

appraisal charts and submitted those charts to the Hr.Manager. The hr.manager will

assess the performance of the employee based on the report and give feedback to the

employees so that they can know their performance. If the feedback is poor the

management will provide training and if the feedback is good the appreciation will be

provided in the form of awards and rewards.

DATA ANALYSIS AND INTERPRETATION

Human resources are the greatest assets for any organization. These

resources should be developed to their fullest extent for the efficient functioning of an

organization and their performance needs to appraise continuously.

PERFORMANCE APPRAISAL plays a vital role in Human Resource

Management. It is an essential and inescapable managerial activity. Appraisal is

necessary for all important decisions relating to people, such as placement and

promotion, remuneration and reward, training and development, as well as long-term

man power planning and organization development.

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED

(HCCBPL), VISAKHAPATNAM was come into existence after VBC Industries

(which was a franchised bottling unit of Parle Group) was acquired by Coca-Cola

India on 10th October 1998. This unit serves the districts of Visakhapatnam,

Vizianagaram, and Srikakulam.

Coco-Cola has been adopting good human resources development practices.

Performance appraisal is one of the important mechanisms of HRD. An attempt has

been made in the present study to draw the perception of employees towards

performance appraisal, as performance appraisal is a tool that helps to measure the

performance of the employees in the organization

The present survey has been conducted among 70 respondents by way of a

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Structured questionnaire adopting simple random sampling .Sample has been drawn

from the executive cadre of employees their opinions has been analyzed, interpreted

and presented in this chapter.

TABLE 4.1 Awareness of the Performance Appraisal System in coca-cola

company

S.NO Opinion No of Respondents Percentage (%)

1 Strongly Agree 60 86

2 Partially Agree 10 14

3 Disagree 0 0

Total 70 100

GRAPH: 4.1:

ANALYSIS:

From the above table, 86% of the total respondents agree that they are aware of the

Performance Appraisal System in coca-cola company, 14% of them partially agree for

this and none of them disagrees for this.

INTERPRETATION:

Page No: 61

From the above table we can interpret that most of the employees are aware

of the Performance Appraisal System in coca-cola company.

.

TABLE 4.2: The Performance Appraisal system followed in the organization

helps in assessing the competencies

S.No Opinion Respondents Percentage (%)

1. Strongly Agree 25 36

2. Partially Agree 33 47

3. Disagree 12 17

Total 70 100

GRAPH 4.2:

ANALYSIS:

From the above table 36% of the respondents opined that the Performance Appraisal

system followed in the organization helps in assessing the competencies ,47%

partially agree for this and rest of them disagree this.

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INTERPRETATION:

From the above data we can interpret that the most of the employees felt that

the performance appraisal system followed in the organization helps in assessing the

competencies.

TABLE 4.3: The Performance appraisal system helps in assessing the training

needs of the employees.

S.No Opinion Respondents Percentage (%)

1 Strongly Agree 43 62

2 Partially Agree 22 31

3. Disagree 5 7

Total 70 100

GRAPH 4.3:

ANALYSIS:

From the above data it analysis’s that 62% of the employees agree that the

Performance appraisal system helps in assessing the training needs of the employees,

where as 31% of them partially agree fro this and while only 7% of them disagree for

this.

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INTERPRETATION: From the above chart we can interpret that most of the

employees felt that Performance appraisal system helps in assessing the training

needs of the employees.

TABLE 4.4: The objective of performance appraisal is identifying training need

S.No Opinion Respondents Percentage (%)

1. Promotion 56 80

2. Increments 13 19

3. All the above 1 1

Total 70 100

GRAPH 4.4:

ANALYSIS:

From the above table, we can say that 80% of the employees felt that the

objective of performance appraisal is identifying training need is promotion, where as

19% felt that it is increments and rest of them opined that it is based on both

promotion and increments

INTERPRETATION:

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From the above data we can interpret that the most of the employees agree that the

objective of performance appraisal is identifying training need is based on promotion.

TABLE 4.5: The Performance Appraisal System forms the basis for making

decisions regarding promotions & rewards.

S.NO Opinion Respondents Percentage (%)

1. Strongly Agree 35 50

2. Partially agree 27 39

3. Disagree 8 11

Total 70 100

GRAPH4.5:

ANALYSIS:

From the above table, 50% of the employees thinks that The Performance

Appraisal System forms the basis for making decisions regarding promotions &

rewards, while 39% employees partially agree for this and only 11% of them disagree

for this.

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INTERPRETATION:

From the above data we can interpret that most of the employees believes that

the Performance Appraisal System forms the basis for making decisions regarding

promotions & rewards.

TABLE 4.6: Frequency of performance appraisal system in the organization

S.No Opinion Respondents Percentage (%)

1. 3 months 10 14

2. 6months 52 75

3. 1 year 8 11

Total 70 100

GRAPH 4.6:

ANALYSIS:

From the above table, 75% of the employees opined that frequency of

performance appraisal system in the organization is every 6 months,14% of them

thinks it should be 3 months and only 11% of them felt that it should be 1 year.

INTERPRETATION:

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From the above that chart, we can interpret that most of the employees felt

that the frequency of performance appraisal system in the organization should be

every 6 months

TABLE 4.7: The performance appraisal system followed in the organization is

fair

S.No Opinion Respondents Percentage (%)

1. Strongly Agree 20 28

2. Partially Agree 36 51

3. Disagree 14 21

Total 70 100

GRAPH 4.7:

ANALYSIS:

From the above table, 51% of the employees felt that the performance

appraisal system followed in the organization is fair, while 28% of the employees

partially agree for this and 21% of them disagree for this

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INTERPRETATION: From the above data we can interpret that the feedback is

communicated quickly because of this good communication will increase among

employees and management.

TABLE 4.8: The performance appraisal rating by HR executive is

objective

S.No Opinion Respondents Percentage (%)

1. Agree 47 67

2. Partially Agree 21 30

3. Disagree 2 3

Total 70 100

GRAPH 4.8:

ANALYSIS:

From the above table, 67% of the respondents Agree that the

performance appraisal rating by HR executive is objective and 30% partially

agreed for this and rest of them only 3% disagree for this.

INTERPRETATION:

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From the above data it’s evident that most of the employees agree that

the performance appraisal rating by HR executive is objective

TABLE 4.9: Feedback is communicated to the employee

S.No Opinion Respondents Percentage (%)

1. Written 47 67

2. Orally 21 30

3. Both 2 3

Total 70 100

GRAPH 4.9:

ANALYSIS:

From the above table, 67% of the respondents Agreed that, the feedback is

communicated in written form and 30% partially agreed that; the feedback is

communicated in the written form and the remaining 3% disagreed.

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INTERPRETATION:

From the above data it’s evident that feedback is communicated is in the written

form because of this form the feedback is more communicated between the superiors

and subordinates.

TABLE 4.10: After performance appraisal feedback is given

S.No Opinion Respondents Percentage (%)

1. Strongly Agree 45 64

2. Partially Agree 20 29

3. Disagree 5 7

Total 70 100

GRAPH4.10:

ANALYSIS:

Page No: 70

From the above table, 64% of the respondents strongly agree that after

performance appraisal feedback is given, while 29% of them partially agree for this

and only 7% of them disagree for this.

INTERPRETATION:

From the above data we can interpret that most of the employees felt that after

performance appraisal only feedback should be given.

TABLE 4.11: The performance appraisal method followed in the organization is

according to the industry standards.

GRAPH 4.11:

ANALYSIS:

S.No Opinion Respondents Percentage (%)

1. Strongly Agree 40 57

2. Partially Agree 28 40

3. Disagree 2 3

Total 70 100

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From the above table,57% of the employees strongly agree that the

performance appraisal method followed in the organization is according to the

industry standards, where as 40% of the employees partially agree for this and only

3% of them disagree for this.

INTERPRETATION:

By the above data we can interpret that most of the employees believes that the

performance appraisal method followed in the organization is according to the

industry standards.

TABLE 4.12: In your opinion performance need to be appraised by

GRAPH4.12:

ANALYSIS:

S.No Opinion Respondents Percentage (%)

1. Superior 30 43

2. HOD 25 36

3. Peer Group 8 11

4. All the above 7 10

Total 70 100

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From the above table, 43% of the employees opined that performance need

to be appraised by superior ,36% of them felt that performance need to be appraised

by HOD,11% of them felt that performance need to be appraised by peer group and

rest of them felt that performance need to be appraised by all superior, HOD and

peer group.

INTERPRETATION:

From the above data we can interpret that most of the employees felt that performance

need to be appraised by superior.

TABLE 4.13: Employees were satisfied with the present system of performance

appraisal

GRAPH 4.13:

S.No Opinion Respondents Percentage (%)

1. Strongly Agree 60 86

2. Partially Agree 6 8

3. Disagree 4 6

Total 70 100

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ANALYSIS:

From the above data, we can say that 86% of the employees strongly agree that

Employees were satisfied with the present system of performance appraisal ,where as

8% of them partially agree and only 6% of them disagree for this.

INTERPRETATION:

By the above data we can interpret that majority of the employees agree that

employees were satisfied with the present system of performance appraisal .

SUMMARY

Human resource is considered to be the most valuable asset in any

organization hence the human resource should be utilized to maximum extent in order

to achieve individual and organizational goals, which would be ultimately achieved

by employees’ performance however, the employees performance is motivated by

performance appraisal system.

Performance appraisal is “the systematic description of employee’s job

relevant, strength, weakness. The objective of the study is to analyze different

performance appraisal schemes provided by Coca-Cola company Visakhapatnam and

also to analyze the performance feedback and counseling system for employees in

HCCB PVT.LTD.

The Coca-Cola Company Visakhapatnam unit is under Asia Zone of

India Division. In India, there are around 55 units (plants) and in Andhra Pradesh,

there are 5 units and they are at Visakhapatnam, Vijayawada, Hyderabad, Nellore and

Sri Kalahasti. These plants are concerned with the production, sales, marketing,

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bottling and customer care of the Coca-Cola Company. It is the most popular and

biggest-selling soft drink in history, as well as the best-known product in the world.

An employee may be satisfied or not satisfied with the existed

performance appraisal system in their organization, the opinion of the employee with

regard to different areas is collected by using questionnaire method and collecting the

feedback from them and sample size is only 70 respondents by random sampling

method.

The employees are satisfied with the existed performance appraisal system as

they feel that the appraisal system motivates them and it help to improve the

relationship between the superiors and subordinates.

Many of the employees positively responded about the performance

Appraisal is necessary for all important decisions relating to people, such as

placement and promotion, remuneration and reward, training and development, as

well as long-term man power planning and organization development.

More than half of the employees feel that this appraisal system is helpful for

motivation, for more effective communication, for strengthening superior-subordinate

relationships, for goal setting and work planning and for improving the total

performance of the organization.

Majority of the employees are opined that the promotions should be based on

both merit & seniority for their carrier development. More than half of the employees

feel that this appraisal system is not based on job analysis which leads to some sort of

dissatisfaction and they also feel that the feedback is communicated in the form of

written is more effective.

.

In this way each and every area under which the employee is satisfied or

dissatisfied regarding the appraisal system, is analyzed and the reasons are nearly

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summarized and based on these suggestions and recommendations are given to the

Coco-Cola company management to reach the organization goals and objectives.

FINDINGS

The following are the major findings of my study:-

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

existing in the organization

2. 47% of the respondents opined that, the performance appraisal factors are

good

3. 62% of the respondents opined that, the work atmosphere in the organization

is effective.

4. 80% of the respondents opinioned that, the performance appraisal is done at

the place of work.

5. 42.8% of the respondents opinioned that, they are fully aware of the

performance appraisal system.

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6. 67% of the respondents opinioned that, the performance appraisal is conducted

for every 6 months.

7. 51% of the respondents opinioned that, the feedback of performance appraisal

is communicated with the appraise within 15 days

8. 67% of the respondents opinioned that, the performance appraisal feedback is

communicated in written form.

9. 64% of the respondents opinioned that, the performance appraisal feedback is

communicated by the superior.

10. 57% of the respondents opinioned that, the performance appraisal is based on

well defined objective criteria.

11. 80% of the respondents opinioned that, the performance appraisal is not based

on the job analysis.

12. 86% of the respondents opinioned that, the organization gives reward on the

basis of performance.

13. 50% of the respondents opinioned that, the effectiveness of present

performance appraisal system is not effective.

14. 57% of the respondents opinioned that, the promotions are based on both merit

and seniority.

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SUGGESTIONS

Change is continuous in the world in every part and in every organization;

accordingly the change has to be adopted in the systems followed in the

organizations.

The management should motivate the employees to perform better by giving

rewards and other incentives.

Employees must be made to work in various areas which give them

enthusiasm to know much more and also which acts as motivation method,

this also gives them training to act as role plays in any superior absence.

The performance appraisal needs to be based on well defined objective

criteria.

The performance appraisal feedback needs to be communicated with the

appraise within short period.

Modern methods of performance appraisal need to be implemented in the

organization.

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CONCLUSION

The performance appraisal which is conducted by the organization is

very effective. The management gives the promotions based on both merit and

seniority.

Most of the employees are satisfied with the performance appraisal which is

conducted by the Coca-Cola organization. The feedback should be such that the

individuals should to know about their faults, where they have lack of knowledge in

doing their jobs in an effective manner.

Hence, the performance appraisal is necessary for every organization to

achieve its objectives.

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BIBLIOGRAPHY

BOOKS

Human Resource Management by L.M.Prasad.

Research Methodology by Kothari.

Human Resource Management and Industrial Relations by P.Subbarao.

READING MATERIALS

1. Annual records and reports of the company.

2. Previous project records at the company.

WEBSITES

Page No: 80

1. www.Google.com

2. www.BBIPLINFRA.com

3. WWW.Coca-cola.com

QUESTIOINNAIRE

Respected sir/Madam,

I am pursuing MBA, for the academic year 2010-2012, at Noble

Institute of Science and Technology College, Visakhapatnam conducting a survey on

“PERFORMANCE APPRAISAL”.I requests you to spare your valuable time

and fill the following questionnaire. The data collected will be used for academic

purpose only.

NAME:

DESIGNATION:

DEPARTMENT:

1. All the employee are aware about performance appraisal system in the

organization

a) Strongly Agree b) Partially Agree c) Disagree

2. Performance appraisal system followed in the organization helps in assessing

the competencies.

a) Strongly Agree b) Partially Agree c) Disagree

3. Performance appraisal system helps in assessing the training needs of the

employees?

a) Strongly Agree b) Partially Agree c) Disagree

4. Objective of Performance appraisal is identifying training need

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a) Promotion b) Increments c) All the above

5. Performance appraisal system forms the basis for making decision regarding

promotions and rewards?

a) Strongly Agree b) Partially Agree c) Disagree

6. Frequency of Performance appraisal system in the organization.

a) 3months b) 6months c) 1 year

7 .Performance appraisal system followed in the organization is fair

a) Strongly Agree b) Partially Agree c) Disagree

8. Feedback is communicated to the employees

a) Orally b) written c) Both

9. Performance appraisal rating by Hr.Executive is objective

a) Strongly Agree b) Partially Agree c) Disagree

10. After performance appraisal performance feedback is given

a) Strongly Agree b) Partially Agree c) Disagree

11. The performance appraisal method followed in the organization is according to

the industry standards

a) Strongly Agree b) Partially Agree c) Disagree

12. In your opinion performance need to be appraised by

a) Superior b) HOD c) Peer group d) All the above

13. Employees were satisfied with the present system of performance appraisal

a) Strongly Agree b) Partially Agree c) Disagree

14. Your suggestions for improving the present method of performance appraisal

THANKYOU.

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