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SUMMER TRAINAING PROJECT REPORT
ON
PERFORMANCE APPRAISAL
SUMITTED TO:
KURUKSHETRA UNIVERSITY
KURUKSHETRA
In partial fulfillment for the degree of
M.B.A
Session 2010-2012
UNDER THE GUIDANCE OF: SUBMITTED BY:
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ACKNOWLEDGEMENT
I am grateful to my esteemed Principal Dr. P.K.Mehta, swami Devi Dyal Institute of Management
Studies Barwala Panchkula (Haryana) for assigning me this project work.
A project report is never the sole product of the person whose name appeared on the
cover. Putting ones idea and thoughts on a paper is solitary test best carried out behind closed
doors. I have worked closely with and been greatly assisted by number of persons. The list of
person who provides the relevant information will run into pages.
I express my sincere thanks to Miss Ruchita (HR Manager), for providing me such a
golden opportunity for doing my Research project.
I also owe a sense of gratitude to Mr. Mohsin who guided me throughout my project
and provided structured guidelines to work and progress.
Finally it is my foremost duty to thanks all my respondents, who help me complete my
field work without which this project would not have been possible.
NEETU RAZDAN
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PREFACE
Practical knowledge is an important part of theoretical studies. Any professional degree remains
incomplete without practical exposure. The students are required to develop deep into the
intricacies of the human resource related activities.
It covers all that which remains uncovered in the classroom. It offers all that which remains an
invaluable treasure of experience. It offers an exposure to practical of management of business
organization.
As we know well that practical knowledge plays an important role in future building of an
individual. One can easily overcome the fear from that in which he has to join as a member after
sometime.
The research and methodology includes the research procedure, research, research design, sample
design, data collection and finally limitations of study. The methods used for conducting survey
are by preparing a structured questionnaire and the taking the views of respective respondents.
The analysis of the research data is done with the help of tabulation and diagrammatic
representation of data in respect to attitude of people towards respective facilities.
DECLARATION
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I, NEETU RAZDAN, student of M.B.A (Session 2010-2012) of Swami Devi Dyal Institute of
Management hereby, declare that the Research Project entitled Performance Appraisal of Market
Developers is an original work and the same has not been submitted to any other institute for theaward of any other degree. It is the original work done by me and the information provided in the
study is authentic to the best of my knowledge.
This study has not been submitted to any other institute or University for the award of any other
degree.
Date: Signature of candidate
Place:
CONTENTS
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Chapter 1Introduction
A) Statement of Problem
B) Introduction to the company: this section contain:
I. Introduction to the Industry.
II. Introduction to the Organisation/Products
Chapter 2 Review of Literature
Chapter 3 Research Methodology
Research design
Data collection techniques
Objective of study
Scope of study
Significance of study
Limitations of study
Chapter 4 Analysis & Interpretation
Chapter 5 Findings & Suggestions
Finding of the study
Suggestions & Recommendations
Chapter 6 Conclusion
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EXECUTIVE SUMMARY
Appraisal is a continuous process and done annually as a formal exercise before
completion of the financial year. Appraisal has tremendous motivational impact on people
through meaningful feedback and is a powerful tool for recognition. This project explains
performance appraisal system and tries to find out how efficiently performance appraisal is
conducted. And if performance appraisal doesnt meet its objective then, what are the
factors causing failure. A performance appraisal is a primary and important context for
supervisors and the employees to work together to achieve the superiors performance.
Performance evaluation or performance appraisal is the process of assessing
the performance and progress of an employee or a group of employees on a given job and
his potential for the future development. It consists of all formal procedures used in
working organizations to evaluate personalities, contribution and potentials of employees.
It is the process of obtaining, analyzing and recording information about the relative worth
of an employee. Performance appraisal and merit rating are used synonymously.
Performance appraisal is a wider term than merit rating. In merit rating, the focus
is on judging the caliber of the employee so as to decide salary increment. It is designed
primarily to cover rank and file performance. There is a basic human tendency to make
judgments about all those one is working with, as well as about oneself. Appraising is
unavoidable and universal.
Performance appraisal system began as a means to justify income. It wasused to decide whether or not the wages of an employee was proper. This process strongly
associated appraisals to material outcomes. There would be a pay cut for unsatisfactory
performance and a pay raise for superior performance. It is believed that a cut or raise in
pay would, and should, provide enough motivation to improve or continue to perform well.
Sometimes this system worked, but more often it fell short of expectations.
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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.
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/
To judge the effectiveness of the other human resource function of the organization such
as recruitment, selection, training and development.
To maintain records in order to determine compensation packages, wage structure, salaries
raises, etc.
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To provide a feedback to employees regarding their performance and related status.
Advantages of Performance Appraisal :-
1. Promotion:Performance Appraisal helps the supervisors to chalk out the promotionprogrammes for efficient employees.
2. Compensation:Performance Appraisal helps in chalking out compensation packages foremployees.
3. Motivation:Performance appraisal serves as a motivation tool.
4. Employees Development:The systematic procedure of performance appraisal helps thesupervisors to frame training policies and programmes. It helps to analyse strengths and
weaknesses of employees so that new jobs can be designed for efficient employees.
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TRADITIONAL METHODS OF PERFORMANCE APPRAISAL :-
1. ESSAY APPRAISAL METHOD
This traditional form of appraisal also known as the Free form Method
involves a description of the performance of the employee by his superior. A major
drawback of this method is the inseparability of the bias of the evaluator.
2. STRAIGHT RANKING METHOD
This is one of oldest and simplest techniques of the performance appraisal. In
this method the appraiser ranks the employees from the best to the poorest on the basis of
their performance. It is quite useful for a comparative evaluation.
3. PAIRED COMPARISON
A better technique of comparison than the straight ranking method, this
method compares each employee with all others in the group, one at a time. After all the
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comparisons on the basis of the overall comparisons, the employee are given the final
rankings.
4. CRITICAL INCIDENTS METHODS
In this method of performance appraisal, the evaluator rates the employee on
the basis of critical events and how the employee behaved during those incidents. It
includes both negative and positive points. The drawback of this method is that the
supervisor has to note down the critical incidents and employee behavior as and when they
occur.
5. CHICKLIST METHOD :-
The rater is given a checklist of the discriptions of the behavior of the
employees on job. The checklist contains a list of statements on the basis of which the rater
describes on the job performance of the employees.
6. GRAPHIC RATING SCALE :-
In this method, an employees quality and quantity of work is assessed in a
graphic scale indicating different degrees of a particular trait. The factors taking into
consideration include both the personal characteristics and characteristics related to the on
the job performance of the employees. For example a trait like job knowledge may be
judged on the range of average, above average, outstanding or unsatisfactory.
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7. FORCED DISTRIBUTION :-
To eliminate the element of bias from the raters ratings, the evaluator is
asked to distribute the employees in some fixed categories of ratings like on a normal
distribution curve. The rater chooses the appropriate fit for the categories on his own
discretion.
PROCESS OF PERFORMANCE APPRAISAL
Establishing performance
standards
Communicating standards and
expectations
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Measuring the actual
performance
Comparing with standards
Discussing results
(Providing feedback)
Decision making taking
corrective actions
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 should be clear, easily understandable and in
measurable terms.
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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 them. 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
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The actual performance is compared with the desired or the standard
performance. The comparison tells the deviations in the performance of the employees
from the standards set. The result can show the actual performance being more than the
desired performance or, the actual performance being less than the desired performance
depicting 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
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How to Conduct a Performance Appraisal
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STATEMENT OF PROBLEM
The environment and the infrastructure of the company or an organization aims in making
the company well established, well organized and surpassing. For the purpose the policies
and programmes are designed and decorated to maximize the outputs. It is rightly said that
if an organization has to develop the interpersonal relation among the members have to be
improved for the better functioning of the organization, conflicts have to be resolved and
an atmosphere of affection has to be created. The culture of an organization can be
preserved by the actions of the members of, by their sustained efforts of helping others andliving in a friendly and cooperative ways. Gaiety, Happiness, Cheerfulness, Friendly
atmosphere, following of the principles of democracy, feeling loyal and sincere to the
organization, thinking of the well being if the other members, keeping output into
consideration, an atmosphere of love and affection etc are the attributes of organizational
culture. It is the duty of administration especially the big bosses to see that the members of
the organization without any consideration of their status or nature of work, are rewarded,
praised, awarded or punished, fined for their commissions and omissions. It is here that
performance appraisal comes to the fore front.
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PERFORMANCE APPRAISAL is a process by which a manager or consultant examines
and evaluates an employees work behavior by comparing it with the preset standards
documents the results of the comparison, and uses the results to provide feedback to the
employee to show where improvements are needed and why. Performance appraisals are
employed to determine who needs what training, and who will be promoted, demoted,
retained, or fired.
The need and importance of performance appraisal is to help in meeting companys
objectives by providing opportunities for employees at all organizational level to acquire
the requisite knowledge, skills and attitudes.
All organizational performance and the resulting productivity are directly proportional to
the quantity and quality of human resource, which are embraced by the training and
development of the same. Now the organizations have realized that the human resources
are the most valuable assets; there is an uncompromising need to learn and to discover the
potential of applicants and work force.
A conceptual knowledge of the subject could help to discover the attitude of the people
towards work, towards their bosses in its proper perspective for proper and effective
utilization of human resources and also in the achievement of organizational goals.
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It has been rightly said that the process of human resource in an organization unlocks the
doors to modernization. It is the need of the time to make the batter utilization of man
power. It is very much required to take the stock of human resource, project demand for the
quantum and types of skills needed for the development and take the action necessary to
the raw human material into the technical and other skilled manpower which is necessary
for increasing productivity and accelerating growth.
INTRODUCTION TO THE INDUSTRY
THE HINDUSTAN COCA COLA BEVERAGES PRIVATE LIMITED
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 1886 in Atlanta, Georgia, by Dr. John S. Pemberton, Coca-Cola
was first offered as a fountain beverage at Jacob's Pharmacy by mixing Coca-Cola syrup with
carbonated water.
Coca-Cola was 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 beganfranchised 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, you can find Coca-Cola in virtually
every part of the world.
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The Coca-Cola Company began building its global network in the 1920s. the coca
cola company and its network of bottlers comprise the most sophisticated and pervasive production
and distribution system in the world. More than anything, that system is dedicated to people
working long and hard to sell the products manufactured by the company. This unique worldwide
system has made The Coca Cola Company the worlds premier soft drink enterprise.
The Coca-Cola Company (TCCC) owns four of the top five soft-drink brands (Coca-Cola, Diet
Coke, Fanta, and Sprite). Its other brands include Minute Maid, Powerade, and Dasani water. In
North America it sells Groupe Danone's Evian; it also sells brands from Dr Pepper Snapple Group
(Crush, Dr Pepper, and Schweppes) outside Australia, Europe, and North America. The firm
makes or licenses more than 3,000 drinks in some 200 nations. In late 2010 TCCC bought out its
leading bottler, Coca-Cola Enterprises (CCE), and renamed it Coca-Cola Refreshments USA. The
Coca-Cola Company is the world's biggest drinks company, controlling more than half the global
market in carbonated soft drinks as well as a substantial chunk of the non-carbonated segment. It
owns four of the world's five best-selling soft drinks. Its principal brand is of course Coca-
Cola itself, the world's best-known and most valuable brand. But the company also sells almost
500 other beverage brands ranging from variants like Thums Up, Diet Coke and sister products
such asFanta and Sprite to a vast range of carbonated and non-carbonated juice-based drinks,
bottled waters, iced teas and coffees. Increasingly Coca-Cola has found that its sheer size works
against it. Competition authorities now watch the company's every move, while market saturation
and economic downturns in both emerging and mature markets caused sales growth to stall for
more than a decade. Since 2006, though, the company's performance has begun to sparkle once
again. Advertising Age estimated global measured advertising expenditure of $2.44bn in 2009.
Soft drink in India :-
In May, 1886, Coca Cola was invented by Doctor John Pemberton a pharmacist from
Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged brass kettle
in his backyard. The name was a suggestion given by John Pemberton's bookkeeper Frank
Robinson.
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The first brand of soft drink Gold spot established 53 years ago. Before all empowering
Coca-Cola entered the country to dominate the soft drink market, the history of soft drink in India
is quite drinking old. Down the ages, people consume soft drink to give them a refreshing feeling.
Gold spot is considered as the first brand of soft drink in India, it was introduced in 1965.
Coca- cola at the same time entered the Indian mark t .and dominated the whole market. It
faced no though competition from the domestic market. Due to certain circumstances the Coca cola
Company discontinued its operations in India. In 1993 Coca Cola was launched in Agra (India)
again with a slogan of "OLD WAVE HAVE COME AGAIN" Joining the hand with Parle export
Pvt. Ltd., The Company was trying its best to regain prestige which it had before. At present only
Coca Cola and Pepsi Food are giving tough competition to each other.
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BEVERAGES
ALCOHOLIC
CABONATED
COLA NON-COLA
NON-
CARBONATED
COLA
NON-
ALCOHOLIC
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Since the early 1990s Coca-Cola Corporation and PepsiCo have been combatingon what is
known as the Beverage Battlefield in India. Today India is one of the most sought
after countries for foreign investments because of their continually growing
market opportunities. However during Coca-Cola and Pepsis attempts to
broaden theirglobal consumer bases both companies encountered several obstructions
on their pursuitsof conquering the Indian soft drink market.
MISSION AND VISION OF THE COMPANY :-
The world is changing all around us. To continue to thrive as a business over
the next ten years and beyond, we must look ahead, understand the trends and forces that will
shape our business in the future and move swiftly to prepare for what's to come. We must get ready
for tomorrow today. That's what our 2020 Vision is all about. It creates a long-term destination for
our business and provides us with a "Roadmap" for winning together with our bottling partners.
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 in body, mind and spirit.
To inspire moments of optimism and happiness through our brands and our actions.
To create value and make a difference everywhere we engage.
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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.
Productivity: Be a highly effective, lean and fast-moving organization.
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COMPANYS LOGO :-
The first Coca-Cola logo was created by John Pemberton's partner and bookkeeper, Frank
Mason Robinson, in 1885. Thinking that the two Cs would look well in advertising, it was
Robinson who came up with the name and chose the logos distinctive cursive script.
The red and white colored scheme in the Coca-Cola logo was kept simple and distinctive to lure
young minds. Even the Coca-Cola bottle symbolized the youthful exuberance of America. Since
then, various designs of the Coca-Cola bottle had been released over the decades. But the ever
popular version is the famous 1915s curved-vessel bottle called the contour bottle, better known
to many as the hobble skirt bottle.
MANUFACTURING PROCESS
START WITH PURE WATER
Soft drinks begin with purified water (much clearer than the tap water you drink at
home). The soft drink manufacturer filters tap water through fine, clean sand and gravel
to get rid of any undissolved impurities that may pass through the finished drink and
ensures that water does not contain any unwanted particles.
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ADD THE FLAVOUR
Once the water is purified, flavourings are added. These are prepared from natural
and nature identical sources and are added to a mixture of sugar and purifiedwater to
make a syrup. This forms the soft drink base.
NEXT STEP, ADD THE BUBBL
The purified water and syrup base are then blended together to form a stilldrink and then mixed with carbon dioxide gas (CO2) in a machine called a carbonator.
FILLING THE BOTTLES
After the drink has been carbonated, it is transferred under pressure to the
filling machine. Here, the bottles or cans are filled and are then passed by conveyor belt
to the sealing machine.
THE FINAL STAGE
The sealed bottles and cans are still cold at this stage, and if packed at this
temperature, moisture which forms on the container because of condensation would
cause the cartons to become wet and less manageable. To prevent this, the bottles and
cans are passed through a hot water spray to bring them up to room temperature.
LABELS & PACKAGING
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Most soft drink bottles have labels applied by a labeling machine. There are
still some bottles, mostly returnable, which have the label information printed directly
on to the glass. Cans also have the label printed on them, before they arrive at the soft
drink manufacturing plant.
SOFT DRINKS PRODUCED BY HCCBPL
a) THUMS UP Introduced in 1977 and is the leading carbonated soft drink in India.
Thums Up is a best-selling brand ofcola inIndia,[2] where its bold, red thumbs up logo
is common.
TAG LINE: Taste The Thunder
COMPETITOR:Pepsi
b) COCA COLA The product has given the world its best known taste was born in
1886. In India, coca cola was the leading soft drink till 1977.Coca cola is
a carbonated soft drink sold in stores, restaurants, and vending machines in more than
200 countries. this product is liked by teenagers and youngsters.
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TAG LINE: Open Happiness
COMPETITOR: Pepsi
c) FANTA The orange drink of the coca cola company is seen as one of the favorite
drinks since 1940s. Fanta entered the Indian market in the year 1993 .
TAG LINE: Go BiteCOMPETITOR : Mirinda
d) LIMCA Derived from nimbu+ jaisa.. hence lime sa. Born in 1971 has remain
unchallenged as the No.1 Sparkling Drink in the cloudy lemon segment.
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Limca is a lemon andlimeflavoured carbonatedsoft drinkmade primarily in India and
certain parts of the U.S
TAG LINE: Fresh ho jaoCOMPETITOR : Nimbooz
e) SPRITEWorldwide sprite is ranked as the No. 4 soft drink and is sold in more than
190 countries. In India, sprite is launched in the year 1999. Sprite is a
transparent, lemon-lime flavored, caffeine free soft drink, produced by the Coca-Cola
Company.
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COMPETITOR: 7UP & Mountain Dew
TAGLINE: Seedhi baat no bakwaas ,clear hai
f) MAAZA Maaza was launched in 1976. Maaza currently dominates the fruitcategory.Mazza is the global brand of mango flavoured carbonated drink. Mazza is
popular among childrens
COMPETITOR: slice
TAG LINE: Bina guthli wala aam
g) MINUTE MAID PULPY ORANGE The brand launched in its internationally
successful minute maid pulpy orange a naturally refreshing juice drink which offers an
unmatched taste experience to consumers due to the presence of real orange pulp.
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TAG LINE: here is the pulp
h) KINLEY Kinley water understands the importance and value of this life giving
force. Kinely water thus promises water that is as pure as it is meant to be. Kinely water
comes with the assurance of safety from the coca cola company.
COMPETITOR:Aquafina and Bisleri
TAG LINE: Bhood Bhood Main Vishwas
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ORGANISATIONAL STRUCTURE OF HCCBPL :-
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MARKET DEVELOPERS :
Market Developer is a hosted customer relationship management (online CRM),
marketing automation and sales force solution that helps you track and manage your
customer management sales processes.
Market Development Process :
Establish market development aims and targets.
Identify target market(s), sectors and niches.
Assess your existing sales organisation and develop it as necessary.
Source/utilise a suitable prospect database - ensure data is clean and up to date, and
strategic decision-makers are identified.
Develop and agree your strategic proposition(s) - with reference to USP's, UPB's,
competitors, positioning, product mix, margins, etc.
Design your communication(s) and method(s) to generate enquiries.
Design your response and sales processes and establish or provide required
capabilities.
Design and provide your required monitoring, measurement and reporting systems.
Implement your sales development activity and reinforce it through coaching,
training, meetings, executive endorsement, etc.
Follow-up the activity: coach as required, review, monitor, seek customer and
prospect feedback (successful and unsuccessful) and report on performance.
Make changes and improvements and continue your activity at the appropriate
stage.
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This process is effective for developing all types of business, and delivers business growth
via:
new products or services to existing customers,
existing products or services to new customers, or
new products or services to new customers.
WAY OF WORKING OF MARKET DEVELOPERS:
The market developers of the company work according to the Permanent Journey Plan
(PJP). In the PJP they are provided with the beats, means that they are given the areas at which
they have to work and accordingly they have to take the orders from the outlets of that beat.
The market developers also work with:
the RED
and the Pre-sell
Right Execution Daily(RED):
RED stands for Right Execution Daily. It is a survey methodfor the company toknow their position in the market.
Hindustan Coca Cola Beverages Pvt. Ltd. Indiadivisionunder Eurasia Operating
Group has been working on RED i.e. Right ExecutionDaily since FEB 2006.Coca Cola Company
believes that its success depends on their ability to connect with consumers by providing them with
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a wide variety of choices to meet their desires, needs and lifestyles choices, Company success
further depends on the ability of their people by execute effectively, every day.
RED held every end of the month to check the availability of the products, purify the
visi cooler & chest cooler, marketing elements. In RED company emphasizes on the setting up a
cooler either into outlet or outdoor. There are different channels (Grocery, E & D, and
convenience) and VPO (Diamond, Gold, Silver, Bronze). Accordingly it arrange brands, make the
availability. It adds the points of Market Developer (MD) and Market Developer Executive
(MDE).
Survey has done in the four topics-
Purity
Brand Order
Availability
Activation
PURITY: Coca cola visi cooler should contain only the brands of The Coca Cola Company.
BRAND ORDER: Coca-Cola products should be in a brand order and we can say that drinks
shoud be arranged in the cooler in the specified manner. Same order is followed in returngable
glass bottle, CAN and PET.
AVAILABLITY: Availability is done according the type of outlet. There are four type of outlet-
GROCERY, E&D TYPE1, E&D TYPE2, CONVENIENCE. According to this market developer
has to ensure the availability of the products in the particular outlet.
ACTIVATION: Activation is important because it helps to boost the sales of the company. It is
done through the GSB Flex Boards, Shelf display, Price Communication, Combo boards, Table top
or shelf top display .GSB Flex boards and displays are oftenly used in E&D and convenience
outlets. They help in attracting the customers. Rack with header is provided to the grocery stores.
Activation total for E&D1, convenience, Grocery and Travel is 15 where as in E&D2 and cinema
it is 25. And at last there is NPD and announced 5 points for it.
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Pre-Sell:
Pre-sell means taking orders from the outlets. For this there should be mutual understanding
between the market developer and outlet owner. The market developers tell the outlet owners about
the product of the company and take the orders from the outlets.
Some of the points are mentioned below that should be followed by the market
developers and by the company so that they can achieve the company goals:
There should be the scientific PJP according to which the market developers should work.
The market developers should give more time on more important outlets. The outlet which
are more important, that is the outlet through which the sale of their products is more
should be give more time than other outlets.
The market developers should be more punctual in gate meeting and there should also be
punctuality in the reviews.
There should be the regular incentive plans for the market developers that should be
supported by their STLs.
The market developers should maintain good relationship with the outlet owner by taking
the orders from them on time.
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The market developers should check that the Coca-Cola products in the outlets should be
in a brand order and we can say that drinks should be arranged in the cooler in the specified
manner.
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REVIEW OF LITERATURE
A key impetus for the development and recognition of the importance of performance management
has been the more competitive environment with which organization now operate. With market
globalization and increased competition increasingly from third world countries organizations
became under increasing pressure to increase productivity and reduce costs. During the 1980s a
more holistic view was adopted considering all the influences on performance with a shift from
simply performance measurement of outcomes to a more sophisticated performance management
approach (Bach, 1998), developing a more strategic HRM approach to resource management
(Marchington & Wilkinson, 2005) linking the aims of the organization to the performance of the
individual (Mwita, 2003)
Performance management is the structured method of review which aims tolink together individual goals, departmental purpose and organizational objectives ( Marchington
& Wilkinson 2007). In this there is a clear strategic link between employee behavior and the
performance of the organization. A useful definition of performance management was provided by
Verweire and Van Den Berger (2004, p7) as a .comprehensive management process framing
the continuous improvement journey by ensuring that everyone understands where the organization
is and where it needs to go to meet stakeholder needs. Ultimately, the goal of performance
management is to achieve human capital advantage recognizing that the individual is the most
important source of the capital advantage of the organization (Armstrong & Baron, 2007). This
was also described by Boxall (1996) as a human resource process of ensuring that the results of
recruitment strategy were to ensure that the organization employed people with competitively
valuable knowledge and skills.
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In this Boxall reaffirms the link between the performance of the organization with the performance
of the individual. The overall aim of performance management is to establish a high performance
culture. In this employees would visualize as part of their function the requirement to continually
assist in improving the performance of the organization. They will also perceive that they can
influence important aspects of overall performance (Robson, 2004). This was described by Horton
and Farnham (1999) as a process of maximizing the value added through the performance
management such that the initial costs are exceeded by the subsequent benefits. To achieve this,
individuals and teams take responsibility for the continuous improvement of the business
developing their own skills and effectiveness (Armstrong, 2006). By harnessing and developing
the potential of the individual the organization will be best placed to achieve the strategic goals.
In addition to this, the underlying principles of performance management have been
described as one of the collaboration in which the system deployed should be one which
encourages development and one which allows team members to move on to strategic
development within the organization (Egan, 1995). The principles of performance
management have been summarized as follows (Information Data Service 1997) :
1) Translates corporate goals into individual team, department, and divisional goals.
2) It helps to clarify corporate goals
3) It is a continuous and evolutionary process in which performance appraisal
improves over time.
4) It relies on consensus and cooperation.
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5) It creates a shared understanding of what is required to improve performance and
how this will be achieved.
6) It encourages self management of individual performance.
7) It requires a management style which is open and honest and encourages two way
communications between superiors and subordinates.
8) It requires continuous feedback.
9) It measures and assesses all performance against jointly agreed goals.
10) It should apply to all staff.
11) It is not primarily concerned with linking performance to financial reward.
These again point towards the development of the individual to become high performers who will
help achieve the strategic aims of the organization. Employees are therefore the most important
economic factor in achieving corporate aims of the organization (Armstrong, 2006). But the
development of employees or performance management in general is not a one off occurrence. The
important message is that effective performance management is a continuous cycle and not a single
event. The diagram below, which is based on the model first proposed by Deming (1986),
demonstrates one example of a performance management cycle. Most performance management
cycles are similar in that they link together strategy and planning with employee monitoring as
well as reinforcing performance standards (Marchington & Wilkinson 2007). The Deming cycle
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Performance management is considered as a process and not a single event. As Demings
model shows, it operates as a continuous cycle. The corporate strategic goals provide the
starting point followed by agreement on performance and development leading to the
drawing up of plans between individuals and managers with continuous monitoring and
feedback supported by formal reviews (CIPD, 2008). Once an organization has determined
upon a performance management framework it is then the function of managers to put the
principles into effect. The determination of successive governments has been to improve
the efficiency of the public sector, mirroring private sector expectations and reduce costs.
Therefore the performance management cycle is equally important for organizations such
public sector as those in the private sector. For the bases of this study the most importantelement is the review and appraisal of performance which, as Armstrong (2004) has stated,
is the fundamental element of performance management aspirations and strategic goals and
service performance delivery from the individual.
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However, in order to define performance we need to determine exactly what will
constitute performance and how will this be measured? If managers are to engage with staff
and provide feedback on performance then both parties need to be aware of what
constitutes good performance or bad performance within their organization. It is difficult
for Local Authorities to think of performance in terms of simply outputs given the complex
nature of these multi dimensional service delivery organizations (McLaughlin & Coffey,
1990). However, for performance model to operate clear goals and objectives must be
established in order to be measured.
Performance appraisal system aim to evaluate the job performance of employees, so that
appropriate corrective action and management decisions can be taken. As performance
appraisal is part of organizational control, the components of control system are
indispensable in the appraisal system. In general, a basic control system consists of control
standards, measurement, and corrective actions (Newman, Warren, & McGill, 1987).
Among these three phases, control standards are based primarily on organizational mission
or departmental goals, which reflects the role a performance appraisal plays in the
organization. Measurement is concerned with the actual appraisal process, including the
appraiser, appraisal criteria, appraisal methods, and appraisal timing. Corrective actions
comprise the feedback processes after the performance appraisal is completed. If there is an
evident gap between actual performance and performance standards, appropriate corrective
actions should be taken to change the behaviours of the employees concerned.
Performance appraisal system have always played a very important role in human resource
management. The performance appraisal is critical mechanisms for organizational control,
through which the employees can view, see their past performances and take concrete
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action for improvement. On the other hand, the performance appraisal also provides
substantial information for human resource management to make fair and correct decisions
regarding promotions, transfers, compensations, incentives and training programs as well
as career management. Specific enterprises typically demand different performance
appraisal system tailored to the needs of its functions and processes.
Cleveland, Murphy, and Williams (1989) argued that there is a relationship between
organizational characteristics and the uses of a performance appraisal system. Stonich
(1984) also argued that performance measurement in an organization should be in tune
with its structure and culture. Since the nature of the enterprises in which each industry is
engaged varies, its organizational type, business policy, internal and external environment
are also usually different. The purpose of this study is to conduct a direct comparative
analysis of performance appraisal systems in the service and manufacturing industries.
Conclusion of Literature Review :-
The literature review has drawn together an overview of performance management with a
concentration on the performance appraisal elements of the process. This has been
identified by the CIPD (2004) is the cornerstone in many organizations of the performance
management cycle. This bears resonance with the process deployed by Liverpool Direct
who has placed the most influence on performance as being the performance appraisal. The
criteria mentioned by Armstrong (2006) as the elements required for a successful
performance appraisal process are those which would fit the Liverpool Direct model.
However, the difficulties with the process are ones which the
research seeks to identify. Certainly, the ambivalence of managers identified by Barlow
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(1989) is one which was of primary concern and an identification of bias and distortions
mentioned by Bach and Grint (op.cit.) above is also a consideration for this study.
The 360 degree feedback process has only had a limited trail within
Liverpool Direct with unpublished and therefore unknown results. But the criticism of this
process as being too complex, expensive and reliant on too many reportees are those
expressed at the time of the deployment of this process. The literature has enabled the
research to be focused on those elements which are closely aligned with the research
question. Identification of the difficulties identified with performance appraisal form an
important part of both the quantitative and qualitative research undertaken as part of this
study.
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RESEARCH DESIGN
Research Design refers to frame work or plan for a study that guides the collection and analysis
of data.
According to David J. Luck and Ronald S. Rubin, "A research design is thedetermination and
statement of the general research approach or strategy adopted/or the particular project. It is the
heart of planning. If the design adheres to the research objective, it will ensure that the client's
needs will be served."
A typical research design of a company basically tries to resolve the following issues:
a. Determining Data Collection Design
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b. Determine Data Methods
c. Determining Data Sources
d. Determining Primary Data Collection Methods
e. Developing Questionnaires
f. Determining sampling plans
1) Explorative Research Design :
Explorative studies are undertaken with a view to know more about the problem. These
studies help in a proper definition of the problem, and development of specific hypothesis
is to be tested later by more conclusive research designs. Its basic purpose is to identify
factors underlying a problem and to determine which one of them need to be further
researched by using rigorous conclusive research design.
2) Conclusive Research Design :
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Conclusive Research Studies are more formal in nature and are conducted with a view to
eliciting more precise information for purpose of making decisions.
These studies can be either :
a) Descriptive
b) Experimental
Thus, it was mix of both the tools of Research Design that is, Explorative as well
as Conclusive.
SAMPLING PLAN :
Sample Size = 30 Market Developers.
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DATA COLLECTION TECHNIQUES
There are two types of data collection techniques :-
PRIMARY DATA:
The primary data was collected through the execution of the questionnaire. The
information was collected from the market developers with random sampling.
SECONDARY DATA:
a) Internet sites :- www.google.com
www.coca-cola.com
www.wikipedia.com
b) Monthly RED score of the market developers.
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OBJECTIVES OF STUDY
The main aim of this study is to gain knowledge about operations and functions in a well-
established organization and also gaining knowledge about the performance of the market
developers of the organization.
To study performance appraisal system.
Identifying systematic factors that are barriers to, or facilitators of, effective performance.
To improve communication. Performance appraisal provides a format for dialogue between
the superior and the subordinate, and improves understanding of personal goals and
concerns. This can also have the effect of increasing the trust between the rater and the rate.
To determine whether HR programs such as selection, training, and transfer have been
effective or not.
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To evaluate the effectiveness and satisfaction level of the employees towards performance
appraisal system in HCCBPL.
To examine the role of performance appraisal in enhancing the motivational level of
employees
SCOPE OF STUDY
The study helps to know about the usefulness of the firm, its objectives, its policies, programs and
perception. It enables us to know about the importance of cordial and congenial atmosphere inside
and a better environmental atmosphere outside an industry or organization.
The study makes one aware of the needs, requirements, and desires of the market developers in an
organization.
It gives detailed information about the developmental efforts of the industry. The study provides an
opportunity to know the facts and also to collect suggestions for the development.
The study helped me to realize the importance of performance appraisal which enables the market
developers in improving their performance and also help them to realize goals in a planned way.
The study helped me to know the working strategies of the market developers and also helped me
to know the strategies of human resource development and understand the approaches to a
successful planning.
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LIMITATIONS OF THE STUDY
A few limitations and constraints came in way of conducting the present study under which thework was completed :
Although all attempts were made to make this an objective study, bias on the part of
respondents might have resulted in some subjectivity.
This study has not been intended on a very large scale, have the possibility of errors, which
cannot be ruled out.
To cover such a vast subject in a very short span of time was very difficult & it might have
left so many things untouched which is regrettable.
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The training was carried out on in the peak season so it was little difficult for the market
developers to support in the training.
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DATA ANALYSIS OF MARKET DEVELOPERS RESPONSE
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1. In your opinion whether the performance appraisal should be conducted or
not?
S.
NO
DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Yes 28 93%
2 No 2 7%
INTERPRETATION :
As per my findings 93% of mds are in favor of performance appraisal
because they want to improve their work performance
and 7% of mds are not in favor of performance appraisal.
2. How important do you think is performance appraisal to your performance?
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S.NO DISCRIPTION NO.OF RESPONDENTS PERCENTAGE
1 Less important 2 7%
2 Important 12 40%
3 Very important 16 53%
INTERPRETATION : As per my findings, 7% of mds think that performance
appraisal is less important.
40% of mds think that it is important.
And 53% of mds think that performance appraisal is very important.
3. According to you, how often should the performance review take place?
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S.NO DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Once in a week 20 66%
2 Once a month 5 17%
3 Every 3 months 3 10%
4 Every 6 months 2 7%
5 Once a year 0 0%TOTAL 30 100%
INTERPRETATION :-
66% of respondents think that performance review should take place once in a
week.
17% of mds response is that performance review should take place once in a month.
10% of mds think that it should take place every 3 months.
2% of respondents think that performance review should take place in every 6
months.
4. In your opinion, does the performance appraisal system give a proper
assessment of your contribution to the organization?
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S.NO DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Yes 28 93%
2 No 2 7%
TOTAL 30 100%
INTERPRETATION :-
According to my finding, 93% of respondents are in the opinion that performance
appraisal system give proper assessment of their contribution to the organization.
And 7% of respondents think that it doesnt give any assessment of their
contribution to the organization.
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And 10% of respondents are in favour of consultant.
6. Does appraisal help in polishing skills and performance area?
S.NO DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Yes 20 67%
2 Somewhat 10 33%
3 No 0 0%
TOTAL 30 100%
INTERPRETATION :-
67% of respondents say that performance appraisal help in polishing skills and
performance area.
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33% of respondents think that performance appraisal doesnt help fully in polishing
skills but to some extend it helps in improving the performance of the employees
7. According to your opinion which is the appropriate method of conducting the
performance appraisal?
S.NO DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Ranking method 6 20%
2 Paired comparison 3 10%
3 Critical incidents 1 3%
4 360 Degree 20 67%
TOTAL 30 100%
INTERPRETATION :-
33% of respondents are in the opinion that ranking method is the appropriate
method of conducting the performance appraisal.
24% of respondents think that the appropriate method of conducting the
performance appraisal is paired comparison.
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10% of respondents are in favour of critical incident.
And 33% of respondents think that the appropriate method of conducting the
performance is 360 degree.
8. Does performance appraisal leads to identification of hidden potential?
S.NO DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Yes 25 83%
2 No 5 17%
TOTAL 30 100%
INTERPRETATION :-
83% of respondents say that performance appraisal leads to identification of hidden
potential.
17% of respondents say that performance appraisal doesnt leads to identification of
hidden potential.
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9. Are you aware of technique of Performance Appraisal followed at Coca-Cola
company among employees?
S.NO DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Yes 25 83%
2 No 5 17%
TOTAL 30 100%
INTERPRETATION :-
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83% of respondents say that they are aware of the technique of performance
appraisal followed in their company among employees.
17% of respondents say that they are not aware of the technique of performance
appraisal followed in their company among employees.
10. What is your opinion as to the present appraisal system being followed?
S.NO DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Fully satisfied 9 30%
2 Satisfied 18 60%3 Cant Say 3 10%
4 Dissatisfied 0 0%
TOTAL 30 100%
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INTERPRETATION :-
30% of mds are fully satisfied with the present appraisal system being followed in
their company.
60% of respondents are satisfied with the present appraisal system.
And 10% of mds are neither satisfied nor dissatisfied with the present appraisal
system. They cant say anything on the present appraisal system.
11. The performance appraisal helps to win cooperation and team work.
S.NO DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Strongly Agree 8 26%
2 Agree 15 50%
3 Neither agree nor disagree
5 17%
4 Disagree 2 7%
5 Strongly Disagree 0 0%
TOTAL 30 100%
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INTERPRETATION :-
30% of respondents strongly agree that performance appraisal is helpful in reducing
grievance among employees.
43% of respondents agree that it is helpful in reducing grievance.
20% of respondents neither agree nor disagree with the statement.
7% of respondents disagree with the statement that performance appraisal is helpful
in reducing grievance.
13. The performance appraisal system helps to identify the strength and
weaknesses of the employees.
S NO. DISCRIPTION NO. OF RESPONDENTS PERCENTAGE
1 Agree 23 77%
2 Disagree 7 23%
TOTAL 30 100%
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INTERPRETATION :-
33% of respondents say that they are regularly appraised.
And 67% of respondents are in favour that they are not regularly appraised.
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FINDINGS OF THE STUDY
Performance appraisal at coca-cola company plays an important role in improving the
performance of the market developers.
Performance appraisal helps the market developers in giving their proper contribution to
the company.
Coca-cola has conducted performance appraisal by various methods and the most
appreciated method by the market developers is 360 Degree.
It has been found that the performance appraisal at coca-cola company helps in identifying
the hidden potential of the market developers.
The market developers of the company are satisfied by the performance appraisal system
followed by the company.
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The performance appraisal system helps in identifying the strengths and weaknesses of the
employees of the company.
The performance appraisal helps to win cooperation and team work between the
employees.
In the organization, most of the employees are satisfied because of the effective
performance system followed.
SUGGESTIONS AND RECOMMENDATIONS
1. COCA-COLA should leave no stone unturned to gain the confidence of the employees by
creating an atmosphere of trust and belongingness.
2. The very concept of performance appraisal should be made universal in the organization.
3. The performance review of the employees should take place quarterly.Quarterly reviews
are a far more accurate reflection of the employee's overall performance.
4. Its important to reaffirm the employees strengths at the beginning of the review. Since job
security is the number one concern of most employees, the performance review is a good
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time to tell an employee how much the organization value their contributions to the
business.
5. An effective performance review requires an interactive discussion with an open agenda.
The questions should be formulated that seek the employees ideas and input. This will
help the employee feel that the organization value his or her opinions.
6. A neutral panel of people should do the appraisal and to avoid subjectivity to the marked
extent, objective methods should be employed.
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CONCLUSION
Performance Appraisal system is necessary in an organization for improving the quality of work of
the employees at all levels particularly in a world of fast changing technology, changing values and
environment. A company should assess the performance of the employees and should make
necessary arrangements and changes accordingly.
So far as Coca Cola is considered, I feel personally no hesitation in saying that the planthas a considerably effective recruitment, training and development program. With honest
approaches the performance appraisal is conducted and the best is not only given to the employees
but the best is also driven out of their abilities, capabilities and potentialities.
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There is complete coordination, cooperation and trust between the management and
subordinates. The performance appraisal is conducted from time to time which has made the plant
one among those having a name and fame in the corporate sector. However it strives for further
improvement to build global competitiveness.
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BIBLIOGRAPHY
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A) Books:
Shashi K. Gupta, Human Resource Management.
C.R Kothari, Research Methodology.
B) Material Provided by HCCBPL, Jammu
C) Websites:
www.google.com
www.coca-cola.com
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QUESTIONNARRIE
15. In your opinion whether the performance appraisal should be conducted or not?
a) Yes b) No
16. How important do you think is performance appraisal to your performance?
Not important
Less important
Important
Very important
Most important
17.According to you, how often should the performance review take place?
Once in a week
Once a month
Every 3 months
Every 6 months
Once a year
18. In your opinion, does the performance appraisal system give a proper assessment of your
contribution to the organization?
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a) Yes b) No
19. Who should do the appraisal?
Superior
Peer
Subordinate
Self appraisalConsultant
All the above
20. Does appraisal help in polishing skills and performance area?
a) Yes b) No c) Somewhat
21. According to your opinion which is the appropriate method of conducting the performance
appraisal?
a) Ranking method c) Critical incidents
b) Paired comparison d) 360 Degree
22.Does performance appraisal leads to identification of hidden potential?
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a) Yes b) No
23. Are you aware of techniques of performance appraisal being followed at Coca-cola
company among employees?
a) Yes b) No
24.What is your opinion as to the present appraisal system being followed?
a) Fully satisfied c) Cant say
b) Satisfied d) Dissatisfied
25. The performance appraisal helps to win cooperation and team work.
Strongly agree
Agree
Neither agree nor disagree
Disagree
Strongly disagree
26. The performance appraisal is helpful in reducing grievance among the employees.
Strongly agree
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Agree
Neither agree nor disagree
Disagree
Strongly disagree
27. The performance appraisal system helps to identify the strength and weaknesses of
the employees.
a) Yes b) No
28. The performance appraisal system helps to identify the strength and weaknesses of
the employees.
a) Yes b) No