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AMITY BUSINESS SCHOOL SUMMER INTERNSHIP REPORT ON TO STUDY THE EFFECTIVENESS OF PERFORMANCE MANAGEMENT SYSTEM AT DABUR INDIA LIMITED Submitted By Submitted By Tanya Sharma M.B.A (HR) 2008-2010 (A0102308288) UNDER THE GUIDANCE OF INDUSTRY GUIDE Mr. ASHOK K .GUPTA Dy .Manager-HR Dabur India limited Sahibabad (UP) FACULTY GUIDE: Shikha Mishra Faculty guide(abs)
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Page 1: Dabur Internship

AMITY BUSINESS SCHOOL

SUMMER INTERNSHIP REPORT

ON

TO STUDY THE EFFECTIVENESS OF PERFORMANCE

MANAGEMENT SYSTEM AT DABUR INDIA LIMITED

Submitted BySubmitted ByTanya Sharma

M.B.A (HR) 2008-2010(A0102308288)

UNDER THE GUIDANCE OF INDUSTRY GUIDEMr. ASHOK K .GUPTA

Dy .Manager-HRDabur India limited

Sahibabad (UP)

FACULTY GUIDE: Shikha Mishra

Faculty guide(abs)

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ACKNOWLEDGEMENT

Words often fail to express inner feelings of gratitude and indebtedness to one’s

benefactors, but then it is the only readily available medium through which the

undersigned can express her sincere thanks to all those who are associated with her

work in one way of the other. Completing a task is never one man effort. It is often the

result of invaluable contribution of number of individuals in a direct or indirect

manner that helps in sharing a making of success.

I feel it my profound privilege to express my most sincere gratitude and indebtedness

to my project guide Mr. Pawan Ponia, HR Officer who was instrumental in providing

my direction, constant encouragement and co-operation in my attempt to take this

project to its logical conclusion.

I also want to thank Mr. Ashok.K.Gupta Dy.Manager-HR for having granted my this

wonderful opportunity to pursue my summer project at DABUR . And to all the

respondents who featured in my survey but remain as nameless entities, I present a

deep bow of gratitude. And also to all those who have been of help directly or

indirectly but have not featured here.

I would like to thank all my teachers at Amity business school and especially my

mentor Ms.Shikha Mishra without whose support this summer training would not

have been possible.

In brevity, it was pleasure working in the organization, which provided me the most

congenial environment for learning.

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Certificate from company

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CERTIFICATE OF APPROVAL

This is to certify that Tanya Sharma of MBA HR 2010, Enroll. No. A0102308288 has

worked under my guidance for summer internship project. She has submitted this

project titled “A study on the Effectiveness of Performance Management System at

Dabur India Limited .

The information provided is authentic and has not been submitted elsewhere.

Ms Shikha Mishra

Faculty

Amity Business School

Amity University

Uttar Pradesh

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DECLARATION

I Tanya Sharma, student of Masters of Business Administration from Amity Business

School, Amity University Uttar Pradesh hereby declare that I have done summer

internship Project on “TO study the effectiveness of Performance Management

System at Dabur India Limited.” as part of the course requirement.

I further declare that the information presented in this project is true and original to

the best of my knowledge.

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UNDERTAKING

I solemnly declare that this report on Effectiveness of Performance Management

System of Dabur India Limited has been compiled by me and has not been copied

from any student /researcher/employee in any university/institution/organization or

any other pace of distance learning under my knowledge.

I have duly acknowledged the sources of primary data wherever they have been used

in the project.

TANYA SHARMA

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ABSTRACT

My report is an attempt to Study the Performance Management System practiced in

DABUR INDIA LIMITED. The performance depends on the BBO(business building

objectives) This system is very effective as it sets a clear direction for contribution of

each individual in the organization. They are more tangible business targets and are

measurable.

Objective setting is an important part of performance management. The characteristics

of a good objective (BBO) can be summed up by the acronym SMART.

S- Specific

M- Measurable

A- Action oriented

R-realistic

T- Time bound

The broad objective is to study the effectiveness of Performance Management System

practiced in organization and the effect of introduction of (BBO) by virtue of level of

understanding amongst the employees about the concept and how far have they

accepted the concept of business building objective (BBO). I also intend to find out

what all apprehension do they have regarding the (BBO).

I started my project with the detailed study of the concept regarding BBO before

understanding how DABUR performed the exercise. For this I read books,

research papers, articles, etc.

Secondly I interacted with my industry guide in order to understand what the

objectives due to which top management were thought of implementing BBO.

I made a questionnaire on the topic to know what the employees of DABUR

actually feels about the BBO and its effectiveness, which can help in building

organizational growth as well as employee satisfaction.

Finally I compiled my research with the help of SPSS.

I also gave my recommendations as to what all steps can possibly be taken to

improve the exercise to make it more efficient and acceptable by the employees.

CONTENTS

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Declaration……………………………………………..Certificate………………………………………………Acknowledgement……………………………………...Abstract…………………………………………………

S.NO. TITLE Page No.

1. INTRODUCTION

To the topic.

To the company profile.

Practice of Performance Management System at Dabur.

7-12

13-25

26-27

2. Literature review 28-32

3. RESEARCH METHODOLOGY

33-36

4. DATA ANALYSIS 37-59

5. CONCLUSION & RECOMMENDATION 60-61

6. BIBLIOGRAPHY

7. ANNEXURE

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INTRODUCTION

HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is a process of bringing people and

organization together so that the goals of each are met. It is that part of the

management process which is concerned with managing Human Resources in an

organization. Simply put, Human Resource Management is a management function

that helps manager’s recruit, select, train, and develops members for an organization.

“Human Resource Management is a series of integrated decisions that

from the employment relationship: their quality contributes to the ability of

organization and the employees to achieve their objective”

“Human Resources Management is concerned with the people dimension in

management. Since every organization is made up of people, acquiring their service,

developing their skills/ motivating them to higher levels of performance and ensuring

that they continue to maintain their commitment to the organization are essential to

achieving organization objectives. This is true, regardless of the type of organization–

government business, education, health, recreation, or social action”

Performance Management -

Performance management system is the process of performance planning ,

performance monitoring and coaching , measuring individual performance linked to

organizational goals, giving him or her feedback, rewarding the individual based on

his or her achievements against set performance goals and required competencies ,

and working out a plan for his or her development.

Performance management is a forward looking process for setting goals and

regularly checking progress toward achieving those goals. A key aspect of

performance management is performance measurement. Whatever the process being

driven with performance management, clear and concise measures are required in

order to properly define the desired goals. Most performance management systems

fail to achieve the desired goals of the process owner or project sponsor because goal

measurement is ambiguous, not specific enough, poorly communicated or because

results cannot be measured effectively. Performance management is often confused

with performance appraisal the latter only forming the final part of the performance

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management cycle. Performance appraisal is a backwards looking process and lagging

indicator of financial performance, only measuring what happened in the past.

Performance management is a forward looking process and a leading indicator of

financial performance because it drives a system or organisation towards a desired

future goal.

Performance -

Performance is what is expected to be delivered by an individual or set of individuals

within a time frame.

Individual performance = ability X motivation x organisational support +or-

chance factors.

Ongoing Activities of Performance Management

Achieving the overall goal requires several ongoing activities, including

identification and prioritization of desired results, establishing means to measure

progress toward those results, setting standards for assessing how well results were

achieved, tracking and measuring progress toward results, exchanging ongoing

feedback among those participants working to achieve results, periodically reviewing

progress, reinforcing activities that achieve results and intervening to improve

progress where needed. Note that results themselves are also measures.

Basic Step –

The following steps occur in a wide context of many activities geared towards

performance-

1. Review organizational goals to associate preferred organizational results in

terms of units of performance, that is, quantity, quality, cost or timeliness.

2. Specify desired results for the domain -- as guidance, focus on results needed by

other domains (e.g., products or services need by internal or external customers)

3. Ensure the domain's desired results directly contribute to the organization's

results

4. Weight, or prioritize, the domain's desired results

5. Identify first-level measures to evaluate if and how well the domain's desired

results were achieved

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6. Identify more specific measures for each first-level measure if necessary

7. Identify standards for evaluating how well the desired results were achieved

(e.g., "below expectations", "meets expectations" and "exceeds expectations")

8. Document a performance plan -- including desired results, measures and

standards

9. Conduct ongoing observations and measurements to track performance

10. Exchange ongoing feedback about performance

11. Conduct a performance appraisal (sometimes called performance review)

12. If performance meets the desired performance standard, then reward for

performance (the nature of the reward depends on the domain)

The performance management has two clear objectives-

The evaluation objective:

◙ Performance evaluation and assessment of the readiness of an individual to take

on higher responsibilities.

◙ To provide feedback to individuals on their performance levels and on current

competency levels.

◙ To generate data required for decisions on salary, bonus and promotions.

The Development Objective:

◙ To counsel and coach subordinates so that they improve their performance and

develop competencies.

◙ To motivate subordinates through recognition and support.

◙ To strengthen supervisor subordinate relations.

◙ To diagnose individual and organization competencies, so that actions can taken

on problem areas.

◙ To define the training requirements based on individual competency.

The performance management system process helps organisations do

the following:

◙ Define the performance requirements at individual level.

◙ Align the organisation efforts to meet the organization goals by setting targets at

individual levels.

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◙ Reviewing the performance during the course of the year and take required

action to ensure performance.

◙ Evaluate individual performance and development requirements.

◙ Provide feedback to individuals on performance and development requirements.

◙ To take decisions on salaries, promotions, job transfers, training and

development of individuals.

Why PM is important

Performance management matters to everyone who wants to see local communities

better served by councils and their partners. Managers can use it to ensure that

services are improving and are more efficient. Councillors can use it to ensure that

policy decisions are being carried out and citizens are being well served. Increasingly,

citizens and partners can use aspects of performance management, such as public

reporting, to hold the council to account.

Performance management is about good management, ensuring that your community,

organisation and team goals are achieved. It helps to:

ensure local authorities provide value for money

motivate and manage staff

identify and rectify poor performance at an early stage

Increase user and public satisfaction.

PERFORMANCE APPRAISAL-

In simple terms, Performance Appraisal may be understood as the assessment

of an individual’s performance in a systematic way, the performance being measured

against such factors as job knowledge, quality and quantity of output, initiative,

leadership abilities, supervision, dependability, co-operation, judgment, versatility,

etc.

A formal definition of Performance Appraisal is :

“It is the systematic evaluation of the individuals with respect to his or her

performance on the job and his or her potential for development”

Thus under Performance Appraisal, we not only evaluate the performance of a worker

but also his potential for development.

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Objectives of Performance Appraisal

The main purposes of employee assessment are :-

Training, and Transfers have been effective or not. Performance is concerned

and to assist them with constructive criticism and guidance for the purpose of their

development for dialogue between the superior and the subordinate, and improves

understanding of personal goals and concern When to Appraise the appraisals are

conducted whenever the supervisor or personnel managers feel it necessary. However

systematic appraisals are conducted on a regular basis, say for example every six

months or annually.

Who’s performance should be rate?

To the question as to whose performance should be rated?

That is, who can be Rate?

The answer is obviously – Employees!

And when we say employees, it may be individual, group, teams, or division.

Who are Raters ?.

Raters are immediate Supervisors, specialists from HR Department, Subordinates,

Peers, Committees, Clients, Self-appraisals, or a combination of several.

PROCESS OF PERFORMANCE APPRAISAL

Performance Appraisal is a nine step process:-

Step 1 In this step the performance standards are established based on the Job

Description and Job Specification. The standards should be clear, objective and

incorporate all the factors.

Step 2 Under this step, the Performance Standards are informed to all the employees

including Appraisals.

Step 3 In this step, the instruction given to appraisal are followed, measurement of

employee performance by the appraisers through observation, interview, records and

reports are done.

Step 4 This step finds out the influence of various internal and external factors on

actual performance.

Step 5 This step is to comparing the actual performance with that of other employees

and previous performance of the employee and others.

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Step 6 The sixth step of Performance Appraisal Process, the actual performance is

measured with the standards and finding out deviations.

Step 7 The seventh step compares, the actual performance of the employee and other

employees doing the same job and discuss with him about the reasons for the positive

or negative deviations from the pre-set standards as the case may be.

Step 8 This step suggest necessary changes in standards, job analysis, internal and

external environment.

Step 9 The last step is the follow-up of performance appraisal report. This step

includes guiding, counseling, coaching and directing the employee or making

arrangements for the training and development pf the employee in order to ensure

improved performance.

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COMPANY PROFILE

INTRODUCTION

The name ‘Dabur’ was Originally attached with Ayurveda but over the period of time

it succeeded in diversifying its business. ‘Dabur’ is the oldest consumer brand in India

and well recognized across the country over the period of 100 years established in

1884 by Dr.S.K.Buraman for making healthcare products. Dabur has varieties of

product portfolio. It has four Strategic Business Unit (SBU) i.e. Consumer Care

Division (CCD), Consumer Health Care Division (CHD), Food Business Division

(FBD), International Business Division (IBD)

Dabur India Ltd is one of the largest FMCG Company in India with interests in

Health Care, Personal Care and Food Products. Over more than 100 years, it has been

dedicated to provide nature-based solutions for a healthy and holistic lifestyle.

Through its comprehensive range of products, it touches the lives of all consumers, in

all age groups, across all social boundaries. And this legacy has helped the company

to develop a bond of trust with their consumers that guarantees them the best in all

products carrying the Dabur name.

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FOUNDER

Founding Thoughts

"What is that life worth which cannot bring comfort to others”

COMPANY HISTORY

YEAR EVENT DETAILS

1884 Birth of Dabur The birth of Dabur in a small kolkatta pharmacy,

where Dr. S.K. Burman launches his mission of

making health care products.

1896 Setting up a

manufacturing plant

With growing popularity of Dabur products, Dr.

Burman expands his operations by setting up a

manufacturing plant for mass production of

formulations.

Early

1900s

Ayurvedic Medicines Dabur enters the specialized area of nature-based

Ayurvedic Medicines, for which standardized

products are not available in the market.

1919 Establishment of

Research Laboratories

The need to develop scientific processes & quality

checks for mass production of traditional ayurvedic

medicines leads to establishment of Research

Laboratories.

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1920 Expands further Dabur expands further with new manufacturing

units at Narendrapur & Daburgram. The distribution

of Dabur products spreads to other states like Bihar

& the North-East.

1936 Dabur India (Dr. S.K.

Burman) Pvt. Ltd.

Dabur becomes a full-fledged company- Dabur

India (Dr. S.K. Burman) Pvt. Ltd.

1972 Shift to Delhi A new manufacturing plant is set up in temporary

premises in Faridabad, on the outskirts of Delhi.

1979 Sahibabad

factory/Dabur Research

Foundation

Commercial production starts in the new Sahibabad

factory of Dabur, one of the largest & best equipped

production facilities for ayurvedic medicines.

Launch of full-fledged research operations in

pioneering areas of health care with establishment

of the Dabur Research Foundation.

1986 Public Limited

Company

Dabur India Ltd. Comes into being after reverse

merger with Vidogum Limited.

1992 Joint venture with

Agrolimen of Spain

Beginning a new chapter of strategic partnerships

with international businesses, Dabur enters into a

joint venture with Agrolimen of Spain. This new

venture is to manufacture & market confectionary

items in India.

1993 Cancer treatment Dabur enters the specialized health care area of

cancer treatment with its oncology formulation

plant at Baddi in Himachal Pradesh.

1994 Public issues Dabur India Ltd. raises its first Public Issue. Due to

market confidence in the company, shares issued at

a high premium are oversubscribed 21 times.

1995 Joint Ventures Extending its global partnerships, Dabur enters into

joint ventures with Osem of Israel for food &

Bongrain of France for cheese & other dairy

products.

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1996 3 separate divisions For better operation & management, 3 separate

divisions created according to their product mix-

Health Care Products Division, Family Products

Division & Ayurvedic Specialties Limited.

1997 Food

Division/Project

STARS

Dabur enters full-scale in the nascent processed

foods market with the creation of the Food division.

Project STARS (Strive To Achieve Record Success)

is initiated to give a jump-start to the co. &

accelerate its growth performance.

1998 Professionals to

manage the co.

With changing demands of business & to inculcate

a spirit of corporate governance, the Burman family

inducts professionals to manage the company. For

the first time in the history of Dabur, a non-family

professional CEO sits at the helm of the company.

2000 Turnover of

Rs1,000 Crores

Dabur establishes its market leadership status with a

turnover of Rs. 1000 Crores.

2003 Dabur emerges

Pharma Business

Dabur India approved the demerger of its

pharmaceuticals business from the FMCG business

into a separate co. as a part of plans to provide

greater focus to both the businesses.

2004 Dabur acquires

Balsara

As part of its inorganic growth strategy, Dabur India

acquires Balsara’s Hygiene & Home Products

Businesses, a leading provider of Oral Care &

Household Care products in the Indian markets, in a

Rs 143 Cr all-cash deal.

2005 Dabur announces

bonus after 12 years

Dabur India announced issue of 1:1 bonus share to

the shareholders of the co., i.e. one share for every

one share held.

2006 Dabur crosses $2

Bin Market Cap,

adopts US GAAP

Dabur India crosses the $2-billion mark in market

capitalization. The company also adopted US

GAAP in line with its commitment to follow global

best practices & adopt highest standards of

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transparency & governance.

2007 Celebrating 10

years of Real

Dabur India unveiled the new packaging & design

for Real at the completion of 10 years of the brand.

The new refined modern look depicts the natural

goodness of the juice from freshly plucked fruits.

2007 Foray into

organized retail

Dabur India announced its foray into the organized

retail business through a wholly-owned subsidiary,

H&B Stores Ltd. Dabur will invest Rs 140 Cr by

2010 to establish its presence in the retail market in

India with a chain of stores on the Health & Beauty

format.

2008 Dabur foods

merged with Dabur

India

Dabur India decides to merge its wholly-owned

subsidiary Dabur Foods Ltd with itself to extract

synergies & unlock operational efficiencies. The

integration will also help Dabur sharpen focus on

the high growth business of foods & beverages, &

enter newer product categories in this space.

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COMPANY DETAILS

1. Group Companies :

With a basket including personal care, health care and food products, Dabur

India Limited has set up subsidiary Group Companies across the world that can

manage its businesses more efficiently. Given the vast range of products, sourcing,

production and marketing have been divested to five leading group companies that

conduct their operations independently:

1 Dabur UK

2 Dabur Nepal

3 Dabur Egypt

4 Dabur Oncology

5 Newu

2. Dabur Worldwide :

Dabur's mission of popularizing a natural lifestyle transcends national

boundaries. Today there is global awareness of alternative medicine, nature-based and

holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of

popularizing this alternative way of life, marketing its products in more than 50

countries all over the world. 

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3. Dabur Manufacturing Facilities in India

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DABUR INDIA LTD.

DABUR PRODUCTS

Categories:

1 Health Care

2 Home Care

3 Personal Care

4 Ayurvedic Specialties

5 Foods

6 International Range

HEALTH CARE PRODUCTS

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Dabur's Health Care and Range has a wide selection of herbal products, to provide

complete care for varying individual needs. It derives its products from the time-

tested heritage of Ayurveda, backed by the most modern scientific test and trials,

which ensure unfailing quality and safety in anything you pick.

Dabur Health Care Products Range:

1. Health Supplements

Dabur Chyawanprash

Dabur Chyawanprakash

Dabur Chyawanshakti

Dabur Chyawan Junior

Glucose-D

2. Digestives

Quit worrying about what all that yummy food will do to your stomach - keep

your digestion toned up with Dabur's range of Digestives. These Ayurveda-based

herbal solutions aid digestion as well as cure distressing stomach disorders, safely and

instantly.

1 Hajmola

2 Hajmola Candy

3 Pudin Hara( Liquid & Pearls)

4 Pudin Hara G

5 Dabur Hingoli

3. Natural Cures

Dabur's Natural Cures - natural and effective remedies for your everyday

health care. Made with Ayurveda-based medicinal and therapeutic herbs to give you

safe alternatives for a wholesome life.

1 Bhringraj Ayurvedic Tail

2 Super Thanda Tail

3 Badam Tail

4 Active Blood Purifier

5 Shilajit Gold

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6 Nature Care

7 Sat Isabgol

8 Shilajit

9 Shankha Pushpi

10 Sarbyna Strong

4. Baby Care

Give your baby the safe and tender care of nature - with Dabur's baby range of

products made with ayurvedic herbs and plant extracts. It makes your baby’s body fit

and healthy from within, and gives him the right foundation to become No. 1 in life.

1 Dabur Lal Tail

2 Dabur Janma Ghunti

HOME CARE PRODUCTS

Home Care Product Range:

1 Odomos

2 Odonil

3 Sanifresh

4 Odopic

5 Dazz

PERSONAL CARE PRODUCTS

1. Hair Care Oil

Whether you wear them long and dark, or prefer them light and bouncy, your

hair needs constant care. That's easy, if you give your hair the natural treatment. With

Dabur's range of herbal Hair Care products, to make your hair grow healthy, lustrous

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and full of life.

1 Amla Hair Oil

2 Amla Lite Hair Oil

3 Vatika Hair Oil

4 Anmol Sarson Amla

2. Hair Care Shampoo

Whether you wear them long and dark, or prefer them light and bouncy, your

hair needs constant care. That's easy, if you give your hair the natural treatment. With

Dabur's range of herbal Hair Care products, to make your hair grow healthy, lustrous

and full of life.

1 Vatika Henna Conditioning Shampoo

2 Vatika Anti-Dandruff Shampoo

3 Vatika Root Strengththening Shampoo

3. Skin Care

1 Gulabari Rose Water

2 Gulabari Face Freshener

3 Gulabari Hydrating Rose Cream

4 Gulabari Hydrating Rose Lotion

5 Vatika Fairness Face Pack

6 Vatika Saffron Glow Soap with Sandal

4. Oral care

Oral Care is critical, not just for a radiant smile, but also because unhealthy

gums and teeth can lead to other serious health problems. A routine of oral care with

regular brushing, flossing and rinsing is a must. So make it your routine, with help

from Dabur’s range of Oral Care products, designed to suit every individual’s special

needs.

1 Dabur Red Toothpaste

2 Babool Toothpaste

3 Meswak Toothpaste

4 Promise Toothpaste

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5 Dabur Lal Dant Manjan

6 Dabur Binaca Toothbrush

DABUR FOODS

“Where necessity is the mother of invention”

About Dabur Foods

Dabur Foods, a 100% subsidiary of US $ 3 billion Dabur Group realized the

potential of the processed & packaged food industry (4th largest in the world), began

operations as a separate division in the year 1999. It established brands in a market

where the barrier to accept packaged food is high, and the fledging processed food

industry was in a nascent stage in India. Today, Dabur Foods has kept its promise not

only to the Indian consumers but to the world by providing them the very best

products in packaged food class.

Dabur Foods has now turned into a leading food marketing company that along

with product also provides a range of services to its consumers:

1. Providing choice: A range of leading brands to choose from – Real Fruit

Juice, Coolers, Hommade, Lemoneez and Capsico.

2. Providing services: The dedicated food services division that partners various

institutions and develops customized products to serve the needs of these

institutions.

3. Redefining exports: A unique exporter who develops market across the world

benefiting them with the authentic taste of traditional Indian juices and paste.  

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Vision

Dedicated to the Health and Well Being of every Household.

Mission

“To be the leader in the Natural Fruits and Beverages Industry.”

Striving to deliver this by:

1 Consistently delighting the consumer through quality products.

2 Being the company of choice for business partners.

3 Delivering higher returns to stakeholders.

Guiding Principles

1 Ownership

2 Passion for Winning

3 People Development

4 Consumer Focus

5 Team Work

6 Innovation

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PERFORMANCE APPRAISAL SYSTEM FOLLOWED IN

DABUR INDIA LIMITED

In DABUR INDIA LTD they have system of Performance Appraisal of their

employees. The main objective of this Performance Appraisal System is to evaluate

the performance, promote their employees and to arrange for various training

programs. If they require foe enhancing their skill in their respective areas and in

contribution enhancement.

Employees are evaluated by how well they accomplish a specific set of objectives that

have been determined to be critical in the successful completion of their job. This

approach is frequently referred to management by objective but company has given it

the name as BBO which stands for Business Building Objectives.

Business Building objectives help to set s clear direction for contribution of individual

in the organiqation.It can be consisting of 4 steps –

1) Goal setting.

2) Action planning.

3) Self control.

4) And periodic reviews.

Dabur use very constructive Performance Appraisal process while evaluating its

employees. Its evaluation is based on quantitative wise and objective wise. Company

set goals to its employee by properly reporting with its employees and then evaluating

them unto what extent it has been achieved and if there is failure in reaching the target

what are the cause and reason behind it. Every evaluator has his or her own value

system which acts as a standard against which appraisal are made.

Outcomes of Performance Appraisal

A five scale is used for rating the contribution along each business building

objectives:

RATING SCORE

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a) Outstanding (OS) 5

b) Strong (ST) 4

c).Good (GD) 3

d) Satisfactory (SF) 2

e) Below Expectation (BE) 1

a) Outstanding – if the performance evaluated by the Management turns out to be

outstanding .if the employee performs in such a way as to collect 3 consecutive

outstanding performances into his / her credit, he / she get promoted.

b) Strong – if performance evaluated by the management turns out to be strong .If

the employee performs in such a way as to collect 3 consecutive strong

performance into his/her credit, he /she gets promoted.

c) Good – if the performance evaluated by the Management turns out to be good

then the management send the employee to the training program to improve

his /her skill to perform.

d) Satisfactory – if the performance evaluated by the management turns out to be

satisfactory then management try to find reasons and give solutions according to

the problem.

e) Below Expectation – if the performance evaluated by the management turns out

to be below average. And if the employee collects 3 below average to his/her

credit, he /she dismissed.

Duration of Appraisal System:

Time constraints enable the employee to show or project his/her capabilities in

terms of performance as per the duration allowed. Performance Appraisal System

carried out annually (April to march)

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LITERATURE REVIEW

Articles summary

According to T V Rao the concept of performance appraisal has changed over the

years. Performance has been usually equated with annual appraisals which measure

the entire year’s effort of an employee in terms of numbers. Drawing from his own

experiences of designing Integrated HRD systems for various companies, the author

stresses upon the importance of understanding the nature, potential, and complexities

of performance management systems (PMS). Evaluating an employee’s performance

on the basis of numbers assigned by another appraiser without an awareness of the

context in which the ratings are assigned could inflict serious injustice to the

performer. It should be Change from ‘Appraisal’ to ‘Management’ and focus on

“Contributions and Improvement”PMS should be recognized as comprehensive multi

dimensional system. The time allocate should be adequate and legislated and if

required it can be planned into the company calendar. The whole process should be

decentralized .PMS should be a part of the budgeting process and integrate with other

systems of the company and for this technology can be used as support

PMS must be implemented rigorously and it should be given it the seriousness it

deserves .The outlook has to shift from an annual exercise to the on-going activities.

Appraisal focuses on ratings while improvements focus on work, stakeholders, service

levels, productivity, motivation effort and all such performance-related variables

According to Changrui Ren   the importance of performance management in supply

chains has long been recognized from a variety of functional disciplines. But much of

the work has focused on designing performance measures with less concern for the

other stages of the entire performance management process. In this paper, an

integrated, efficient and effective performance management system, "active

performance management system", is presented. The system covers the entire

performance management process including measures design, analysis, and dynamic

update. The analysis of performance measures using causal loop diagrams, qualitative

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inference and analytic network process is mainly discussed in this paper. A real world

case study is carried out throughout the paper to explain how the framework works. A

software tool, supply chain performance analyzer, is also introduced. Some related

topics and further research directions are discussed as concluding remarks.

According to Derek Stockly Human resource management is directly related to the

overall performance of the organization. Identifying and planning for training can be

linked to many corporate processes. Many important initiatives are undertaken by

organizations. These can include technology upgrades, quality processes, industrial

issues and the like. Total quality management, benchmarking, re-engineering and the

move to self-managing teams, are all concerned with performance. In human

resources management, training, performance management (including performance

appraisal and salary administration), recruitment and selection, and employee

relations' activities are all concerned with performance. Each makes an important

contribution. The first step to a sound organization is to keep all programs and

initiatives aligned to a framework of increased performance. This ensures that each

activity complements the others occurring at the same time. The relationship between

internal and external factors is also important.

If organizations lose sight of the basic goal of performance improvement, if they treat

these or other programs as the ends rather than the means, then they are doomed to

difficult times, if not outright failure.. The first step to a sound organization is to keep

all programs and initiatives aligned to a framework of increased performance. This

ensures that each activity complements the others occurring at the same time. The

relationship between internal and external factors is also important. Within the

performance framework, the second step is to achieve the best outcome from each

activity. Improvements and achievements can be made in all areas, even the

traditional ones such as training. A co-coordinated approach understood by staff leads

to confidence. Confidence leads to trust. Trust provides the foundation for a positive

cultural environment, which in turn provides the driving force necessary to achieve

performance improvements.

The article that I have found on ebscohost.com says that High demand and

competition for employee and managerial talent has led to increasing interest in

understanding the potential benefits of using high-performance work systems

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(HPWS) as a means to maximize firms’ competitive advantage. HPWS refer to a

group of separate but interconnected HR management practices, including

comprehensive recruitment and selection procedures, incentive compensation and

performance management systems, and extensive employee involvement and training,

which are designed to enhance employee and firm performance outcomes through

improving

Workforce competence, attitudes, and motivation. the key purpose of this research is

to provide an initial examination of the cross-level linkages between establishment

level shows and employee-level outcomes, as mediated by establishment level climate

the primary contribution involves the amalgamation of research on HPWS,

organizational climate, and employee attitudes, which provides a more explicit

integration of micro and macro views of the management of human resources in work

organizations

In this article Graham Yemm has given ideas to become better at getting the

performance manager want from their teams. In order to manage people for

performance you need to clearly establish what good performance is for each person

and role defining good performance not only means setting up of goals it include what

the outputs and results are - and how they are being achieved. Managing for

performance is an ongoing process and not an occasional intervention or snapshot.

Performance Appraisal usually reviews past behavior and so provide an opportunity to

reflect on past performance. But to be successful they should also be used as a basis

for making development and improvement plans and reaching agreement about what

should be done in the future. The authors talk about the common mistake made by

organization when they say that they have performance appraisal in their organization

but this is not the case .then the author has given the way out, how to apply complete

Performance management system Firstly, everyone should have clearly defined

standards of performance and/or key performance indicators (kepi’s). These are same

for all those doing similar roles and provide a baseline for performance. There are two

types of these - the quantitative and the qualitative. Make sure you think of this as a

key priority - so give it time! Make sure that the kepi’s are clearly stated, written

down and everyone has a copy.. As your team members work through their action

plans and you have your regular reviews. During these reviews ask for what needs to

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be improved, what has gone well and what is going to happen next. When the goal is

achieved, carry on and set the next goal, get the action plans - and continue as before.

Then the author has reminded that people just want to know what is expected of

them, be given the support to do it and then told how they are doing. will give you the

performance.

According to By: Ola Kazeem Falodun Performance appraisal as a positive part of

the performance management process has come a very long way in the history of

human resource management. Performance appraisal is one of the central pillars of

the performance management which is directly related to the organizational

performance and have a direct and significant impact on it. Performance appraisal has

been, and is still the strength of performance management,.

The main focus of this work is centered on Assessing critically how the formal

appraisal system can contribute to the performance management process

Identifying and explaining a range of methods of appraisal, considering their

objectives and limitations. Explaining how an appraisal system can be successfully

introduced and maintained within an organization. Analyzing an appraisal system in

an organization

In carrying out this work, the researcher discovered that there is a strong relationship

between performance appraisal and performance management, it can affect the

organizational performance both positively and negatively, and should be dealt with

care and expert knowledge and experience.

OBJECTIVE AND RESEARCH METHODOLOGY

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Research is an organized inquiry designed and carried out to provide information to

solve the problem. The fact, search is an art of scientific investigation of a certain

problem. “Research is the process of systematically obtaining accurate answers to

significant and pertinent questions by the use of the scientific methods gathering and

interpreting information”

SIGNIFICANCE

The main significance of the project is to identify the level of motivation, job

satisfaction and performance among the employees after & before the

conduction of Performance Appraisal Exercise.

MANAGERIAL USEFULNESS OF THE STUDY

To point out and suggest the organization to adopt remedial actions to remove

those loopholes, aiming to improve the productivity and RESEARCH

METHODOLOGY

OBJECTIVE

To study the Employee Satisfaction.

To study the Organizational Growth.

To study the Performance Appraisal Program.

To study the effectiveness of three different factors and to find which

factor among the three is less effective.

SCOPE OF THE STUDY

To find out the loopholes (if any) in the Performance Management

System at Dabur India Ltd.

To have an overlook over the changes and improvements made in the

Company

METHODOLOGY

Research Methodology is a way to systematically solve the research problem

involving a study of various steps that are adopted by the researcher in studying

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his/her research problem. Qualitative and quantitative technology to get the required

data and interpreted.

Data Collection

There are two methods for collecting the data. They are:

1) Primary Data

2) Secondary Data

1. Primary data :

There are several methods of collecting Primary data. These are given below.

A- Observation method: The observation method is the most commonly used method

especially in studies relating to behavioral sciences. Under the observation method the

information is sought by way of investigator’s own direct observation without asking

from the respondent.

B:- Interview method: The interview method of collecting data involves presentation

of oral verbal and stimuli reply in terms of oral verbal responses. This method can be

used through personal interviews and if possible through telephonic interviews.

C:- Questionnaires;- This method of data collection is quite popular particularly in

case of enquiries. It is being adopted by private individuals, research purposes,

private and public organizations and even by governments. In this method

questionnaires are sent to the persons of concern with the request to answer the

questions and return the questionnaires. The respondents have to answer the questions

on their own.

In this project I have used questionnaires as one of the primary sources of collecting

data.

2. Secondary Data

When an investigator uses the data that has been already collected by others is

called Secondary Data. The secondary adapt could be collected from Journals,

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Reports and various publications, web sites. The advantages of the secondary data can

be- it is economical, both in terms of money and time spent.

Sample Designing

Type of Sampling: Random sampling technique was adopted to choose the

respondents for the sample. This technique was used keeping in view the scope of the

study, which try to cover different departments.

Sample Size: The sample size taken into consideration includes simple of around 80

related people in various different departments

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LIMITATIONS

Every Study suffers from certain limitations and so does this project. So, the

applicability of the findings and recommendations is subjected to the following

mentioned constraints/limitations

Respondents were reluctant to give their views on data or open to other

Shortage of time duration for the research work

Hiding of some true facts by the respondents due to the fear of the management

Though care has been taken, judgment errors may have occurred

Employees being very busy did not get enough time to give responses whole-

heartedly

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ANALYSIS AND INTERPRETATION

Question 1

Frequency Table

Performance Management System is essential for the success of the employees of the company.

Frequency PercentValid Percent

Cumulative Percent

Valid Neither agree nor disagree 4 5.0 5.0 5.0

Agree 39 48.8 48.8 53.8

Strongly agree 37 46.2 46.2 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

In DABUR INDIA LIMITED 49% employees agree that Performance Management

System is essential for the success of the employees of the company and 46%

employees strongly agree to the above fact where as 5% employees were not able to

decide whether they agree or not .There were options of disagree and strongly

disagree provided but non of the employee disagreed to the fact that Performance

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Management System is an essential for the success of employee of the company.

Question 2

Frequency Table

The Performance provides opportunity for each appraises to know what the Management really expect out of him.

Frequency Percent Valid PercentCumulative Percent

Valid Disagree 1 1.2 1.2 1.2

Agree 38 47.5 47.5 48.8

Strongly agree 41 51.2 51.2 100.0

Total 80 100.0 100.0

Bar   Chart

Analysis and Interpretation

From the above analysis I came to know 51% of the employees strongly agree and

47% of employees agree that Performance provides opportunity for each appraises to

know what the management really expects out of them. Whereas only 1% disagreed to

the above statement which is a very small number to make any significance. This

concludes that they understand and agree to the fact that the performance does

provide them the opportunity to know what the management wants and expects from

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them.

Question 3

Frequency Table

You are satisfied with the existing Performance Appraisal method followed in

the company.

Frequency Percent Valid PercentCumulative Percent

Valid Agree 48 60.0 60.0 60.0

Strongly agree 32 40.0 40.0 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

It is cleared from the analysis that the whole population were satisfied with the

Performance Appraisal Method followed in the company as 60% employees agree to

the fact and 40% strongly agree to this. This can be a biased answer as well because

the employees will hesitate to voice their opinions against the management.

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Question 4

Frequency Table

Do you agree that self appraisal prior to Performance Appraisal facilitates you to get high rating?

Frequency Percent Valid PercentCumulative Percent

Valid Disagree 1 1.2 1.2 1.2

Neither agree nor disagree

7 8.8 8.8 10.0

Agree 36 45.0 45.0 55.0

Strongly agree 36 45.0 45.0 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

From the above data I came to know almost 90% employees are either agree or

strongly agree that Self Appraisal prior to Performance Appraisal facilitates to get

high rating whereas 9% of employees were not clear about their views and only 1%

disagree to it. This shows that a big majority does agree to the statement but nearly

10% also is not sure which shows us signs of confusion in the mind of the employees.

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Question 5

Frequency Table

In your opinion are you capable of achieving the goals set for you.

Frequency Percent Valid PercentCumulative Percent

Valid Disagree 3 3.8 3.8 3.8

Neither agree nor disagree

12 15.0 15.0 18.8

Agree 44 55.0 55.0 73.8

Strongly agree 21 26.2 26.2 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

The bar chat shows that 26% of employees strongly agree and 55% agree to the fact

that they are capable of achieving goals set foe them by the management where are

4% of them were disagree from the above fact and 15% of them were not clear about

their views. This very clearly shows us that the majority understand and think they are

capable of achieving their goals but a good number of employees are confused again

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with a few who think the management expect a bit too much from them.

Question 6

Frequency Table

Your Performance Appraisal has scope for assessment of job related competencies as well as personality dimension.

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree 9 11.2 11.2 11.2

Disagree 5 6.2 6.2 17.5

Neither agree nor disagree 7 8.8 8.8 26.2

Agree 43 53.8 53.8 80.0

Strongly agree 16 20.0 20.0 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

The above analysis exhibits that 54% employees agree and 20% strongly agree to the

fact that their Performance Appraisal has scope foe assessment of job related

competencies as well as personality dimension but 11% and 6% employees disagree

and 8% of them were confused. This is a very interesting fact that we have here,

which shows us that more than half of the employees are agree to the statement but

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are not very confident about it and about one forth of employee totally going with the

statement. But the major facts which shows the cracks in the confidence of the

employees is the 17% of the figure who do not agree to the statement, which is a

number is not very big but for a firm like this its important to understand the fact that

negativism spreads more quickly than positivism.

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Question 7

Frequency Table

The drive for growth in the organization is the most common motive for conducting Performance Appraisal in the organization.

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree 1 1.2 1.2 1.2

Neither agree nor disagree 10 12.5 12.5 13.8

Agree 31 38.8 38.8 52.5

Strongly agree 38 47.5 47.5 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

In these diagram we see that 47.7% employees strongly agree , 38.8 % simply agree,

10% are not sure and finally 1.2% don’t agree to the statement which says that thee

drive for growth in the organization is the most common motive for conducting

Performance Appraisal in the organization. What we see from these charts is

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something very peculiar and different from other results, which is the fact that more

employees strongly agree than just agree. This means that the employees have a lot of

confidence in the statement but on the other hand we also see that 10% of the

employees also are confused suggesting that the Company is not very effective in

explain to the employees the importance of Performance appraisal, but the ones which

understood the concept are very clear in the minds about the programme

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Question 8

Frequency Table

Performance Management System paves way for career growth and opportunities.

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree 5 6.2 6.2 6.2

Disagree 3 3.8 3.8 10.0

Neither agree nor disagree 11 13.8 13.8 23.8

Agree 39 48.8 48.8 72.5

Strongly agree 22 27.5 27.5 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

The above bar chart shows that 49% of employees agree and 27% strongly agree to

the fact that Performance Management System helps the employees in creating career

growth and opportunity for themselves but 4% were disagree and 6% strongly

disagree to it and 14% employees neither agree nor disagree to this fact. This graph

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also has a unique fact other graphs didn’t which was the increased number of

employees disagreeing to the statement which is a noticeable 10%, which comprises

of % strongly disagreeing to the statement. Over to that we also see another nearly

14% not sure either way , which if looked at together with the disagree figures, seems

to be a very disturbing figure for the Co. This represents to us that the employees

think that they have unwillingly accepted the Performance Appraisal Programme

instead of taking it is a career growth move.

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Question 9Frequency Table

Were all the employees educated about the Business Building Objectives and were they

aware of Appraisal ratings.

Frequency Percent Valid Percent

Cumulative

Percent

Valid Strongly Disagree 7 8.8 8.8 8.8

Disagree 4 5.0 5.0 13.8

Neither agree nor disagree 12 15.0 15.0 28.8

Agree 41 51.2 51.2 80.0

Strongly agree 16 20.0 20.0 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation52% of employees did agree and 20% strongly agree to the fact that they were having

properly educated about the Performance Appraisal System followed in the company

but 5% were disagree and 9% were strongly disagree to the above fact but 15%

employees were neither agree nor disagree . This also shows us the lack of

management’s communication with the employees which has resulted in a very high

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number of strongly disagree (nearly 10%) as well as another 5 % disagree. Clearly the

management is to be blamed for this as the total number of the not agree to the

statement have risen to a total of nearly 30% which is not acceptable under any

circumstances.

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Question 10

Frequency Table

There is fair connection between pay and performance.

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree 3 3.8 3.8 3.8

Disagree 2 2.5 2.5 6.2

Neither agree nor disagree 3 3.8 3.8 10.0

Agree 30 37.5 37.5 47.5

Strongly agree 42 52.5 52.5 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

The frequency table interprets that 52%of the employees strongly agree and 37%

agree that there is a fair connection between pay and performance but 4% employees

strongly disagree and 2% disagree to the above fact. This also shows us a very

positive aspect of the company’s implication of policies and procedures as only 6% of

the people are not saying yes to the statement that they gets remunerated fairly to the

amount of work they do. Also more than half of employees are strongly agreeing to

the statement which reflects that they are very happy with the pay scale.

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Question 11

Frequency Table

Are you satisfied with Performance Appraisal system in your department .

Frequency PercentValid Percent

Cumulative Percent

Valid Disagree 1 1.2 1.2 1.2

Neither agree nor disagree 11 13.8 13.8 15.0

Agree 38 47.5 47.5 62.5

Strongly agree 30 37.5 37.5 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

From the 80 respondents 30 employees were strongly agree and 38 were agree to the

fact that they are very much satisfied with the Performance Appraisal System being

carried in their department but among 80, 11are neither in the favor nor against it and

only 1 of them were disagreed. This represents that majority of the employees are

satisfied with the PAP but there is still room for doubt as 10% employees are again in

disarray whether to go for or against the statement, with a negligent 1% unsatisfied.

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Question 12

Frequency Table

In your opinion , maintaining a proper appraisal system in the organization

will increase the morale of the employees.

Frequency Percent

Valid

Percent

Cumulative

Percent

Valid Strongly Disagree 1 1.2 1.2 1.2

Neither agree nor disagree 5 6.2 6.2 7.5

Agree 42 52.5 52.5 60.0

Strongly agree 32 40.0 40.0 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

The above bar chart shows that from the 80 respondents 42 and 32 were agree and

strongly agree to the fact that maintaining a proper appraisal system in the whole

organization will surely increase the moral of the employees but 1 of them strongly

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disagree to this fact and 5 of them were not clear about their views. This represents to

us that 74 out of 80 employees are going for the statement which clearly shows that

they understand that proper appraisal system is needed to increase their morale but 5

employees yet cannot make up their mind; this means the organization is able to

communicate with the employees but not very effectively.

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Question 13

Frequencies

In case your appraisal is not up to the mark , your superior corrects you.

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree 4 5.0 5.0 5.0

Disagree 3 3.8 3.8 8.8

Neither agree nor disagree 9 11.2 11.2 20.0

Agree 49 61.2 61.2 81.2

Strongly agree 15 18.8 18.8 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

In the diagram we see that 49 employees are agreeing to the statement while another

15 strongly agree but on the darker side we see that 3 employees not are agree with

another 4 strongly disagreeing, and the rest 9 who cant take a decision that if in a

situation their appraisal is not up to the mark their supervisors correct them. Thus if

we add the numbers we see that a total of 20 % employees do not agree to the

statement, which is not a very bog number but can’t also be neglected. Where as a

good number of 80 % still go in favor of the statement.

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Question 14

Frequency Table

The training that the organization provides you at the time of joining is effective .

Frequency PercentValid Percent

Cumulative Percent

Valid Strongly Disagree 7 8.8 8.8 8.8

Disagree 4 5.0 5.0 13.8

Neither agree nor disagree 7 8.8 8.8 22.5

Agree 27 33.8 33.8 56.2

Strongly agree 35 43.8 43.8 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

Here we see that a high number of 43.8% strongly agree and another 33.8% agreeing

to the statement that training provided at the time of joining is effective for them. But

on the other darker side we also see that 4 employees out of 80 disagree while another

7 strongly discarding the statement which makes it a total of 13.8% not agreeing to

the statement, with another 7 still people confused. This is another point of concern

for the management as it seems that they have not been able to completely satisfy all

the employees with the type and method of training provided to them at the point

when they started their job.

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Question 15

Frequency Table

How do you recognize the best performance in your organization.

Frequency PercentValid Percent

Cumulative Percent

Valid Monetary rewards 33 41.2 41.2 41.2

Recognition among peers 1 1.2 1.2 42.5

Career advancement 26 32.5 32.5 75.0

All the above 20 25.0 25.0 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

Here we see the three different types of recognition that can be provided by the

management to its employees. As we see monetary rewards top the list with 41.2%

employees choosing it, next stands career advancement which is at 32.5% , where as

recognition amongst peers look to be very discarded and only been opted by 1 in 80

employees and finally another 20 believe all of those are important. Thus for the

employees money is the most important thing and while career advancement coming

later and all round recognition following closely behind it.

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Question 16

Frequency Table

Are you satisfied with the company as a place to work.

Frequency PercentValid Percent

Cumulative Percent

Valid Agree 33 41.2 41.2 41.2

Strongly agree 47 58.8 58.8 100.0

Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation

This is a another very good picture to see from any point of view be it for prospective

employees, current employees or the management’s, as we see that 100% employees

agree that Dabur is a satisfactory place to work where nearly 60 % employees

strongly agreeing to the same. This also shows us that the employees are very

satisfied with the overall effort of the company to keep the employees happy and

make it a good place of work for them. The best thing about it is that not even 1

employee even opted for neither nor which shows a very high level of satisfaction in

the eyes of the employees.

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CHI-SQUARE   TEST

kχ2 = Σ ( Oi – Ei ) i=1 Ei

χ2 = Chi square.

Oi = Observed Value.

Ei = Expected Value.

K = Number of categories.

Df = ( k-1 )

Frequencies

TES

Observed N Expected N Residual1 7 96.0 -89.02 6 96.0 -90.03 29 96.0 -67.04 221 96.0 125.05 217 96.0 121.0Total

480

TOG

Observed N Expected N Residual1 10 80.0 -70.0

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2 8 80.0 -72.03 41 80.0 -39.04 186 80.0 106.05 155 80.0 75.0Total

400

PAP

Observed N Expected N Residual1 53 80.0 -27.02 14 80.0 -66.03 54 80.0 -26.04 191 80.0 111.05 88 80.0 8.0Total

400

Test Statistics

TES TOG PAP

Chi-Square 5.289E2a 3.558E2b 2.268E2b

df 4 4 4

Asymp. Sig. .000 .000 .000

a. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 96.0.

b. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 80.0.

Analysis

In the above statistical test some assumptions were taken to get the correct results.

The assumptions are as follows:

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Null Hypothesis –on the bases of all 3 factors the employees are satisfied with the

Performance Management System.

Alternative Hypothesis –on the bases of all 3 factors the employees are not satisfied

with the Performance Management System.

Since the calculated value of Chi square in all 3 factors are lower than the table value

(table value = 9.49 at 4 degree of freedom) the null hypothesis is accepted. But in this

degree is different so the most effective factor for Performance Management is TES

then TOG then PAP. For the effectiveness of Performance Management System the

organization should concentrate more on PAP.

CONCLUSION

The conclusion can be drawn after going through graphs, and the result of the test

that my null hypothesis has been accepted which is, all employees are satisfied by

existing Performance Management System .As the study has been divided in three

parameters .Employee Satisfaction (TES), Organisational Growth (TOG), and

Performance Appraisal Program (PAP) and to assess which parameter is the most

effective. The reason of using TOG was that the organisational growth is very much

connected to the effectiveness of the management, as company can’t grow until they

have a proper management system which is also interlinked with TES as the

employees working for the company. Employees should also be happy and satisfied

with their work, and if they are not it clearly represents that the company is being

poorly managed. The reason of choosing PAP as my third and last parameter was

because if a company doesn’t have a proper appraisal programme i.e. the people don’t

receive the appreciation for their work in monetary and non monetary terms, the

satisfaction at work will again decrease causing problem s to the company, on a

longer run and also making the company to less likely place for perspective

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employees. And after applying the chi square test it came out that Employee

Satisfaction is the most effective followed by Organisational Growth and the

management needs to work upon Performance Appraisal Program.

Even though the Performance Management System is Effective but the data analysis

also reflects that the people don’t receive the appreciation for their work in monetary

and non monetary terms, the satisfaction at work will again decrease causing problem

s to the company, on a longer run and also making the co to less likely place for

perspective employees.

RECOMMENDATION

1. The company should come out with a better Performance Appraisal Program

as the study reflected that there is less acceptance in employee regarding

existing Performance Appraisal Program.

2. The evaluating system must be biannually instead of annually .As it will be an

added advantage for both organisation as well as employee in terms of

communication being frequently done.

3. Make a system of giving periodic feedback thus it will help in achieving

higher target for its employees.

4. Company should make an effort to align the outcomes of Performance

Appraisal System to identify the Training and Development needs.

BIBLIOGRAPHY:

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Articles:

1. LESSONS FROM EXPERIENCE: A NEW LOOK AT PERFORMANCE

MANAGEMENT SYSTEM By: T V Rao (VIKALPA VOLUME 33 NO 3 JULY –

SEPTEMBER 2008)

2.ACTIVE PERFORMANCE MANAGEMENT BY Changrui Ren    

Dept. of Autom., Tsinghua Univ., Beijing, China;

3.HUMAN RESOURCE ISSUES NEEDS CONSTANT ATTENTION By :Derek

Stockly

5.THROUGH THE LOOKING GLASS OF A SOCIAL SYSTEM: CROSS-

LEVEL EFFECTS OF HIGH-PERFORMANCE WORK SYSTEM ON

EMPLOYEES’ ATTITUDES

6. MANAGING PEOPLE FOR PERFORMANCE By Graham Yemm

7.PERFORMANCE APPRAISAL AS A POSITIVE PART OF THE

PERFORMANCE MANAGEMENT PROCESS

(A Case of Mofas Shipping-Line)

By: Ola Kazeem Falodun

KINGSGATE Ireland , March 2008

ANNEXURE

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QUESTONNAIRE

Dear Respondent,Iam a student of AMITY BUSINESS SCHOOL, NOIDA.This questionnaire is a part of study on performance management system. I assure you that the information provided by you will be kept confidential and it will be used for the academic purposes.

1. Performance Management System is essential for the success of the employees of the company

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

.

2 The Performance provides opportunity for each appraises to know what the Management really expect out of him.

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree

5. Strongly Agree

3. You are satisfied with the existing Performance Appraisal method followed in the company.

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

.

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4. Do you agree that self appraisal prior to Performance Appraisal facilitates you to get high rating .

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

.

5. In your opinion are you capable of achieving the goals set for you.

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

.

6. Your Performance Appraisal has scope for assessment of job related competencies as well as personality dimension.

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

.

7. According to you is drive for growth in the organization the most common motive to conducting Performance Appraisal in the organization.

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

.

.

8 Performance Management System paves way for career growth and opportunities.

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

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.

9. Were all the employees educated about the Balance Score Card and were they aware of Appraisal ratings.

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

.

.

10 There is fair connection between pay and performance..

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

11. Are you satisfied with performance appraisal system in your department.

1. Strongly Disagree 2. Disagree 3. Neither Agree nor Disagree 4. Agree 5. Strongly Agree

12. In your opinion , maintaining a proper appraisal system in the organization will increase the morale of the employees.

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

13. In case your appraisal is not up to the mark , your superior corrects you.

1. Strongly Disagree2. Disagree

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3. Neither Agree nor Disagree4. Agree5. Strongly Agree

14. The training that the organization provides you at the time of joining is effective .

1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree

15. How do you recognize the best performance in your organization.

1. Monetary reward 2. Recognition among peers 3. Career advancement 4. All the above 5. None of the above

16. Are you satisfied with the company as a place to work.

1. Strongly Disagree2. Disagree3. Neither agree nor disagree4. Agree5. Strongly Agree

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