Project Report On Pepsi

ON “IMPROVEMENT IN THE EMPLOYEE’S PERFORMANCE LEVEL FOR THE LAST FOUR YEARS ACCORDING TO THEIR ROLES AND RESPONSIBILITIES CHANGE” AT

A desertion submitted in partial fulfillment of the requirement For the award of the POST GRAGUATE DIPLOMA IN MANAGEMENT For the Session 2008-10 APPROVED BY AICTE SUBMITTED BY: PRABHJOT KOUR ENROLLMENT NO.: (5395) PROJECT GUIDE: MR. NARENDER SINGH

GURU NANAK INSTITUTE OF MANAGEMENT, NEW DELHI.

ACKNOWLEDGEMENT At the times when “Human values are been questioned” and ulterior mottoes have dominated one’s personality here is an occasion rather my privilege to introduce and express my gratitude to some of the exceptions personalities with whom I have shared association, during my project task and who prove the above statement “Human values being questioned” as and only baseless but wrong. I express my thanks to the company and its staff who gave me opportunity to this project. Mr. Narender Singh, Vice President (HR) gives me such a brilliant opportunity to work under their amiable presence and in such a broad organization. I express my sincere thanks Mr. S.Patnaik (Sr. Executive (HR) & Our Project Guide).Jai Beverages Pvt. Ltd. Jammu for their sincere and proper guidance, direction and encouragement given to me for the successful completion of this project.

With great gratitude PRABHJ OT KOUR (5395)

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DECLERATION I, PRABHJOT KOUR, a student of POST GRAGUATE DIPLOMA IN MANAGEMENT, GURU NANAK INSTITUTE OF MANAGEMENT, NEW DELHI, have completed the Summer Training Report on “IMPROVEMENT IN THE EMPLOYEE'S PERFORMANCE LEVEL FOR THE LAST FOUR YEARS ACCORDING TO THEIR ROLES AND RESPONSIBILITIES AND CHANGE” AT JAI BEVERAGES PVT. LTD. BARI BRAHMANA JAMMU, for the academic year 2008-10. The information given in this project report is true to the best of my knowledge. This is my original work.

PRABHJOT KOUR. (5395)

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BIBLIOGRAPHY 1. Material Provided by JBPL (PEPSICO) Jammu 2. Web-sites: www.google.com www.jaibeverages.com www.pepsico.com

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INDEX S No.

PARTICULARS

PAGE NO.

1. 2. 3. 4.

Profile of JBPL, Jammu Human Resource Human Resource Department Pepsi Interview & Recruitment Survey Employees Retention Study on Performance Appraisal Measuring Performance Appraisal in JBPL Data Analysis Suggestions & Recommendation Conclusion

6-20 21-26 27-37 38

5. 6. 7. 8. 9. 10.

5

40-50 51-75 76-82 83-87 88 88

COMPANY PROFIL E

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CONTENTS 1. Historical Background of JBPL 2. Company’s Logo 3. Company’s Vision 4. Company’s Mission 5. Introduction to the product- Soft Drinks 6. About the Soft Drinks 7. How Soft Drinks are made 8. Soft Drinks produced by JBPL 9. Punch lines 10. Mile Stones 11. Departments

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“COMPANY PROFILE” PEPSI BOTTELING PLANT IN JAMMU (J&K) Name of the unit JAI BEVERAGES PVT. LTD. (PEPSI GROUP)

Location/Address of the unit Sidco Industrial Complex, Ismailpur Road Bari Brahmana, Jammu-181133 Phone:01923-20284,21384 Fax: 01923-20183,20184 e-mail:[email protected] website:www.jaibeverages.com Regd.office: 52, Janpath New Delhi-110001 Phone :011-3321098’335325

History of the unit & present position The year was 1999 and PEPSI Company in India was very eager to improve its extremely poor market share (less then 3%) in the state of Jammu and Kashmir. That was when it approached the soft drink maestros of India-the Jaipuria family and Mr. C.K. Jaipuria in particular for starting a plant in J&K. In spite of all the odds, the non inductive climate in the state for a new business venture, he took a bold step and went ahead with accepting the challenge and taking the franchise in the name of his elder son – Mr.Anurag Jaipuria, and Jai Beverages Pvt. Ltd. was born. From the day of the decision, to this day in 2001, there has been no looking back. In this short span of time, the company has been formed, sprawling compound of erstwhile M/S Hindustan Levers Ltd. taken over from a supportive SIDCO, a prestigious unit in J & K. After an initial investment of Rs. 27.1 crores, has been established with full backing of the industries (J&K government), and an ultramodern plant is in full swing. The boiler used is oil –fired, with a 33m high chimney and an effluent treatment plant which releases all the effluent water after full treatment at very reasonable, and much under the pollution board’s maximum acceptable BOD and COD levels. In fact, work in on to stop all the treated effluent from going out and instead to utilize this water internally for horticulture. In other words, the water is being put back into the earth to retain the water table. Further, work has been done to grow more trees within the premises, in line with the universal endeavor of making the earth green. With the coming of this prestigious plant, there has been an upsurge in the economy of the people of the area, in particular, and the state in general. The direct, and indirect,

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employment generated by the unit has already surpassed a figure of 50, and is growing steadily. The excise deposited to the government exchequer has already crossed an amount of Rs.361 Lacs, and is again growing. The once semi deserted main road of the industrial complex, has become very busy and would soon be required to be widened. In short, the coming of Jai Beverages Pvt. Ltd into the state of Jammu and Kashmir has surely made a big mark into the industrialization of the state, with many a big industrial house watching eagerly the outcome of this prestigious unit. Jai Beverages Pvt. Ltd. is a part of the diversified Jaipuria Group being the major franchise of the Pepsi in India? The group has 19 Pepsis bottling plant in India and Nepal. It also has the franchise for modern bread, pizza hut besides, business interest in information technology, education, healthcare and textile retailing. Jai Beverages Pvt. Ltd situated at Bari–Brahmana (SIDCO) distt. Jammu .The company is producing and marketing the complete range of Pepsi drinks for the state of J & K. The new beverages plant having state of art machinery from krones, gesulin & MAG plast among the international industrial giants and hildon, tula, IDMS etc. among Indian manufacturers. The fully automatic plant is being run by a team of professionals who have already made a mark for themselves by creating history in the international Pepsi system by achieving the gold medal in the first year of operations from over 400 plants world wide. The company its unused space into green gardens, recycling waste water and has a modern working effluent treatment plant. The company gives its first preference to workers safety, quality product and healthy working environment. As per market share at present Pepsi is enjoying 42% market share .Whereas, leader since 15 years in Jammu market on 50% market share. At present on the basis of commitments, quality, skills and energetic team Pepsi feels they will give neck to neck fight to our levels.

Company’s logo

This logo of Jaipuria group of companies was unveiled by Mr. C.K Jaipuria, in the presence of Mr. Anuraan Japery, Mr. Rehirans Jaipuria & all the senior managers of this group on 7th of Dec.2005 at Jai Beverages Pvt. Ltd.Jammu.

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Company’s vision “Let’s Grow Together”

Company’s Mission…at JBPL Will accomplish Rs.1,650 crore turnover with a PAT of 10% by 2010,across diverse business interests by: Placing jaipuria groups brands amongst the top 5 in the country.  Treating our employee’s as an asset.  Providing best quality products & services.  Enhancing all stakeholders value.  Protecting environment and being sensitive to all natural resources.

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1. INTRODUCTION TO THE PRODUCT –SOFT DRINK Soft drinks can trace their history back to the mineral water found in nature springs. Bathing in natural springs has ling been consider a healthy thing to do and mineral water was said to have curative powers. Scientists soon discovered that gas carbonium or carbon dioxide was behind in natural mineral water. The first marketed soft drinks (noncarbonated) appeared in the 17 th century. They water made from water and lemon juice sweetened with honey. In 1676, the comparing de lemonades of Paris was granted a monopoly for the sale of lemonade soft drinks. Vendors would carry tanks of lemonade on their backs and dispensed cups of the soft drink to the thirsty Parisians. In 1767, an Englishman, Dr. Joseph priestly, created the drinkable manmade glass of carbonated water. Three years later, the Swedish chemist Torbern Bergman invented a generating apparatus that made carbonated water from chalk by the use of sulfuric acid. Bergman’s apparatus allowed imitation mineral water to be produced in large amounts. In 1810, the first us plant was issued for the “means of mass manufacture of imitation mineral water “to Simons and Rundell of Charleston, South Carolina. Carbonated beverages did not achieve great popularity in America unit 1832, when John Mathews mass manufactured his apparatus for sale to others. The drinking of either natural of artificial mineral water was considered a healthy practice. American pharmacists. Who were selling most of the mineral water started to add medicinal and other flavorful herbs to the unflavored beverage example, birch bark dandelion, sarsaparilla and fruit extracts. The early drugs stores with their soda fountains become a popular part of America culture. Customer wanted to take drinks with them and the soft drink bottling industry grew from the customer demand. Over 1500 US patents were filled either for a cork, cap or lid for the carbonated drink bottle tops. The bottle tops were under a lot of pressure from the gas. Inventors were trying to find the best way to prevent the carbon dioxide (bubbles) from escaping. In 1892, Willam painter, a Baltimore machine stop operator, machine stop operator patented the “crown cork bottle seal”. It was the first very successful method of keeping the bubbles in the bottle. In 1899, the first patent was issued for a glass-bowing machine for the automatic production of glass bottles, earlier glass bottles had all been hand blow. Four years later, the mew bottle-blowing machine was in operation. The inventor, Michel J Owens, an employee of Libby Glass Company, first operated it. Within a few years, glass bottle production increased from 1500 bottle a day to 57000 bottles a day.

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2. ABOUT THE SOFT DRINK WHAT’S IN SOFT DRINK? Soft drink has been part of American lifestyle for more than 100 years. Many of today’s soft drinks are the same as the first ones enjoyed in the 1800’s. Soft drink production begins with creation of flavored syrup using a closely guarded company recipe. The syrup is mixed with purified water and then carbonated by adding carbon dioxide gas under pressure. This carbonation creates the “tingle fizz” that gives soft drinks a refreshing taste. Now for a closer look at soft drink ingredients…………… Like other foods, the ingredients that are used in making soft drink are approved and closely regulated by the US Food and Drug Administration (FDA). All the ingredients used in soft drinks are found in a variety of other foods. 

WATER Soft drink production starts with a pure source of water. Regular soft drink contains 90% water while diet soft drink contains up to 99% water Drinking water contains trace amount of various elements that affect its taste. You have probably noticed that top differ in carious regions of the county. Bottler use sophisticate filtering and other treatment equipments to remove any residual impurities and to standardize the water used to make soft drinks. That’s why your favorite soft drink tastes the name in New York as it dies in India.



CARBON DIOXIDE A colorless and odorless gas, carbon dioxide is the essential characterizing ingredient in all “carbonated” beverages. It is given off when we breathe and is used by the plants to product oxygen. When dissolved in water, carbon dioxide imparts taste. For that reason natural sources of carbonated. Of effervescent, mineral water were once highly prized. These rare mineral water were once also believed to have beneficial medicinal properties. Efforts to make and sell “artificial effervescent mineral water” underway Europe and US by 1800. It was the innovative step of adding flavors to these popular “soda water” that gave birth to the soft drink beverages we enjoy today. In these days of soft drink manufacturing, carbon dioxide was made from sodium salts. This is why carbonated beverages were called, sodas or “soda water”. Today bottlers buy pure carbon dioxide as a compressed gas in the highpressure cylinders. Carbon dioxide gas is absorbed into flavored soft drink in a carbonator machine just before the container is sealed. While under pressure and chilled, soft drink may absorb up to four times the beverage volume of carbon dioxide.

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 FLAVORS One of the most important ingredients in the soft drinks is flavoring. Most soft drink bottles mix many individual flavors to create distinctive tastes. Natural flavors in the soft drink come from spices, natural extracts and oils. Fruit – flavored soft drink such as orange and lemon-lime often contains natural fruit extracts. Other flavors such as root beer and ginger are contain flavoring made from herbs and spices. There are also some artificial or man made flavoring used in soft drinks. Nature does not produce enough of some flavors to satisfy world demand. Also some flavors are limited geographically and seasonally.

 COLORS Many people do not realize important color is to taste perception. Color affects our psychological impression of food. If you don’t believe it. Try eating a familiar food in the dark. The color used in the food and beverages comes both from natural and synthetic sources.

 CAFFEINE Caffeine is substance that occurs naturally in more than 60 plants including coffee beans, tealeaves, kola nuts and cocoa beans. In some cases, small amounts of caffeine are added to soft drinks as a part of the flavor profile. The amount of caffeine in soft drinks is only a fraction of that found in an equal amount of coffee or tea. Caffeine has a classic bitter taste that enhances other flavors. It has been part of almost every cola and pepper type beverage since they were first formulated more than 100 years ago and has been enjoyed in coffee, tea and chocolate beverages for centuries. Even though some people feel the effects of caffeine are harmful, scientific research has refused these claims. The ling history of caffeine’s use confirms that it is safe when consumed in moderation. For people who wish to restrict their caffeine intake, many caffeine free soft drinks are available.

 ACIDULANTS Similar to fruit juices and many other food products, most drinks are slightly acidic. Acidulates add a pleasant tartness to soft drinks for one or two common food acidulates (phosphoric acid and citric acid) occasionally; other acidulates such as malice acid is also used.

 PRESERVATIVE Soft drinks do not normally get spoiled because of their acidity and carbonation. However, storage conditions and storage tome can sometimes impact taste and flavor. For this reason some vs. contains small amounts of preservatives that are commonly used in many foods.

 POTASSIUM 13

Potassium is another essential nutrients found in many natural and man made food ingredient like sodium, potassium exists naturally in drinking water and therefore, in soft drinks. Small amount of potassium are also found in some of the flavoring agents and other ingredients used in soft drinks.

 SODIUM Because the name “soda pop” and “soda water” were associated with early soft drinks. Many people falsely believe that carbonated beverages contains significant amount of sodium. That is true. Sodium, the name form of various salts, is present in many natural and man made compounds. It is an essential nutrient responsible for regulating and transferring body fluids. As well as other important body functions. Although an adequate daily intake of sodium is necessary for good health, excessive consumption has been to high blood pressure in some people.

 SWEETENERS Non-diet soft drinks Most regular (non-diet) soft drinks are sweetened with either sucrose or high fructose corn syrup, (HFCS). A mixture of these sweeteners many also be used. Sucrose, the familiar sweetener in your sugar bowl, cines firm sugarcane or sugar beets.

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HOW SOFT DRINKS ARE MADE?

1START 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 the water does not contain any unwanted particles.

2ADD 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 purified water to make a syrup. This forms the soft drink base.

3NEXT STEP, ADD THE BUBBLES The purified water and syrup base are then blended together to form a 'still' drink and then mixed with carbon dioxide gas (CO2) in a machine called a carbonator.

4FILLING THE BOTTLES 15

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.

5THE FINAL STAGE The sealed bottles and cans are still quite 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.

6LABELS & PACKAGING 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.

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Soft drink Produced by JBPL (PEPSICO), Jammu:1- AQUAEINA 2- PEPSI 3- MIRINDA ORANGE 4- MIRINDA LEMON 5- 7 UP 6- MOUTAIN DEW 7- SLICE

Punch lines (Pepsi cola jingles):Further year:“Pepsi! Yeh Payas Hai Badi” “Yeh Dil Mange More Aahaa!” Current year:“Yeh Hai Youngistan Meri Jaan”

This plant has started in year 2000 & since then achieved lot many mile stones: 1. Quality gold in year-2000-2001 (it was first time in 100 years of Pepsi’s existence that any plant taken gold in its first years of operation) 2. Quality gold-2001-02. We repeated history in second year also. 3. Ring of honor (sale’s prestigious award):- our sales head Mr. Naginder Razdan achieved this award in year2004-05 & 2005-06 again. 4. Mr. Sámi butt sales manager for Kashmir valley nominate this year for Asia ring of honor. 5. Quality gold in year-2000-2001 (it was first time in 100 years of Pepsi’s existence that any plant taken gold in its first years of Operation) 6. Quality gold-2001-02. We repeated history in second year also. 7. Ring of honor (sale’s prestigious award):- our sales head Mr.Naginder Razdan achieved this award in year2004-05 & 2005-06 again. 8. Mr. Sami butt sales manager for Kashmir valley nominate this year for Asia ring of honor.

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 HUMAN RESOURCE  FINANCE  SALES & MARKETING  PRODUCTION & QUALITY  SHIPPING  PURCHASE  HEAD OFFICE  STORES

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ORGANATIONAL CHART – JAMMU UNIT MD A JAIPURIA EXEC VP N RAZDAN VP – OPS T S BEDI

Production Quality Engineers Store Purchase Statutory Compliance Liaison

VP – HR N SINGH

GM – FIN D AGNIHOTRI

Accounts Finance Direct/Indirect Taxation Statutory Compliance Liaison

HR/IR/ADMN Shipping Local Legal Matters Statutory Compliance Liaison

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HOS D MATHUR

Sales Marketing Liaison

ORGANATIONAL CHART – HR & ADMN JAMMU VP – HR N SINGH

AM – HR (VACANT)

SHIPPING A K SHUKLA

ADMN & SECURITY SUNIL KUMAR TIME OFFICE S PATNAIK

TRANSPORT R KOTWAL

HR & MIS

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DESPATCH JAGDISH

Human Reso urce

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CONTENTS 1. Introduction 2. HR Rules in JBPL

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“Human Resource” Human resources is a term with which many organizations describe the combination of traditionally administrative personnel functions with performance, Employee Relations and resource planning. The field draws upon concepts developed in Industrial/Organizational Psychology. The objective of Human Resources is to maximize the return on investment from the organization's human capital and minimize financial risk. It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner. Human resource management serves these key functions: 1. Selection 2. Training and Development 3. Performance Evaluation and Management 4. Promotions 5. Redundancy 6. Industrial and Employee Relations 7. Record keeping of all personal data. 8. Compensation, pensions, bonuses etc in liaison with Payroll 9. Confidential advice to internal 'customers' in relation to problems at work. 10. Career development

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HR Rules in JBPL, Jammu

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“HR Rules” FOR PF :To deduct PF of only those employees whose salary is up to Basic +D.A.6500. 1. 2. 3. 4. 5. 6. 7. 8.

Employee contribution 8.33% Employer contribution 8.33% Administration Charges 4% of employee and employer contribution. EDLI deducted on wages for PF 1%. When new employee joined Form no. 2 will be filled by him. For getting PF no. of employees form no. 5 is to be filled. Monthly form no. 12 will be sent which includes detail of every employee. Form no. 3 A prepared for individual details at the end of year Employee + Employer Contribution. 9. Form no. 6 includes details of all PF members from March to February of every year and their contribution.

ESI RULES:To deduct ESI of those employees whose total salary is upto 10,000/1. 2. 3. 4. 5.

Employer contribution 4.75% Employee contribution 1.75% Form no. 1 is to be filled at the time of joining of employee. Form no. 3 is to be filled for getting ESI no. of employees. Half yearly return after 6 months from period April to September and October to March on form no. 6.

LEAVE RULES:EARNED LEAVE (PL):1. One leave is provided on 20 days of working. 25

2. This type of leave is provided when he has completed 240 days of working.

CASUAL LEAVES:1. 7 CL is provided to employees as a casual leave.

SICK LEAVES:1. 7 SL is provided to those employees who are not covered under ESI range.

HOLIDAYS:1. 11 days of holidays is provided to workers and staff.

LABOUR RATES:Unskilled workers

Rs. 66 per day

Semi skilled workers

Rs. 88 per day

Skilled workers

Rs. 147 per day

Supervisors / Clerical

Rs. 94 per day

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Human Resource Department 27

CONTENTS 1. Activities Handled 2. Functions 3. Policy & Procedures 4. Objective 5. Maintaining good interpersonal relations 6. HRD Functions & Tasks in JBPL

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“HUMAN RESOURCES DEPARTMENT” A) Activities Handled at a glance. i) ii) iii) iv) v)

Service File (Employee’s file) Recruitment Leave Training Resignation

B) Detailed procedure of the activities handled along with documentation involved: i. Service File: Curriculam Vitae Proof of Educational Qualification (Mark sheets and Certificates) Senior secondary certificate/ mark sheet Higher secondary certificate/ mark sheet Graduation mark sheet Post Graduation mark sheet Professional qualification / mark sheet Copy of appointment letter. Detail sheet in original (annexure to interview call letter) Two recent passport size photographs Experience certificate/s Relieving letter if possible Promotion letter Increment letter Renewal letter

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ii)

Recruitment Obtaining approval from competent authority – COO Releasing an advertisement for recruitments. Receiving applications. Scanning / Scrutinizing the applications on the basis of criteria mentioned Short listing the candidates Sending the interview call letters Sending invitation letter to panel members To obtain confirmation calls and mails from respective candidates Conduction of interview and selection of candidate/s, verification of concerned certificates Sending the appointment letter/s (in duplicate) Receiving the acceptance copy duly signed

iii)

Training To get the details of a training program. To assess the need for providing the training of that particular program. Getting it discussed with competent authority and obtaining the approval of CEO (via note) Sending suitable candidate/s concerned in that particular stream or area for the program.

iv)

Resignation One month prior notice is to be given. Obtaining the approval from competent authority – COO (via note) and getting the acceptance. Handling over the all relevant document to the person concerned duly acknowledged. Clearance or recovery of dues if any related to company. Issue of experience certificate and relieving letter.

v)

Sanction of Leave Balance of leave is to be checked before applying. Applying for the leave in the prescribed format and getting it signed by the recommending official. Forwarding the same to the to COO for sanction. Submitting the same to HRD. Accordingly updations to be made

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 FUNCTIONING: ♦ MANPOWER ANALYSIS: It also goes manpower analysis in the organization. It sees that in which area more manpower is needed and then fills up those posts. It looks that how efficient the manpower is and accordingly provides training and development. ♦ ARRANGING CAMPUS INTERVIEWS: This department takes the first step for the recruitment so they arrange campus interview. ♦ RECRUITMENT AND SELECTION: Firstly this department interviews the candidates and then they are sent to the concerned departments. Then the H.O.D. interviews the candidate after which he is finalized by the G.M. they go for recruitment through adds, walk-in interviews, competitions and references.

♦ SALARY AND WAGES:One of the important functions of this department is to administer the Salary and wages of the entire company. They have all the details of the salary structure of the employees and when they pass the salary then it is given through accounts department. ♦ PROVIDING TRAINING:Once the individuals are selected they are given training for 3 months.

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 POLICY & PROCEDURES:

♦ Recruitment is done through advertisements and walk in interviews. Firstly the personnel department before being sent to another department screens the candidates. ♦ There is periodic performance appraisal for all the employees and promotion is linked with that by this they weigh various qualities of the individual. ♦ Training and development is provided to all the employees so that their efficiency is increased. ♦ Various facilities are provided for the welfare of employees’ link, Meals, Tea etc.

 OBJECTIVE:

♦ The foremost principal of H.R. is that every individual has its own worth and dignity and that should be respected. The primary of this department is to development human resource. It tends to develop their skills so that their efficiency is increased. ♦ Another objective is to sharpen their scales and proved them such a healthy environment, which enables him to work and employ, feels that his ideas count and his job is respected. ♦ Another objective of this department is to motive the employees so that feels like having challenging work and their potential is increased.

 MAINTAINING GOOD INTERPERSONAL RELATIONS: This department also works to maintain good relations among that the employees in the organization so that they have co-ordination as well as informal structures are found. ♦ DISCIPLINARY ACTION: This department also tries to maintain discipline in the organization. In case any indiscipline is created then disciplinary actions are taken. ♦ HANDLING GREVIENCES of EMPLOYEES:This department also listens to all the grievances of employees and tries to be proactive in solving their problems so that they can work properly. There are suggestions and complaints as well as problems.

♦ ADMINISTRATION:It also administers the organization as a whole. It looks to all the organization and strives to solve them and looks after the over-all 32

administration of the company that what is going on in the plant l and how each and every thing has to be managed.  HUMAN RESOURCE AND TRAINING SUPPORT The corporate human resource support system is involved in all Human Resource Management and Human Resource Development activities.  THE HR SUPPORT PROVIDED TO THE AFFILIATED

UNITS IS IN TERMS OF: Recruitment and selection support for senior HOD level positions.

HRD’s Functions & Tasks in 33

JBPL, Jammu

“HRD Functions & Tasks” HR Functions Recruitment Recruitment Recruitment Recruitment Recruitment Recruitment Recruitment Recruitment Recruitment Recruitment Recruitment

Tasks Get the Job Description finalized by Person requesting the position Get the position approved from Resource Manager Prepare Process (First Round Interviewers, Interview Time, Second Round Interviewers) Screening Profiles Get profiles Short listed from Interviewers (if needed) Scheduling Telephonic Interview, update recruitment sheet Taking feedback from Interviewers, update recruitment sheet Rescheduling / Scheduling Personal Interview, update recruitment sheet Get Employee Information form filled by Candidate Taking feedback from Interviewers, update recruitment sheet If Short listed, Inform Seniors, update recruitment sheet

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Selection Selection Selection Selection Selection Selection New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee

Scheduling HR Interview - Telephonic / Personal, update recruitment sheet Taking HR Interview - Personal / Telephonic Offer Negotiation Offer Letter Follow-up on Joining - Every 15 days Inform IT Department to arrange System 15 days before joining Call and confirm 2 days prior joining, whether joining is coming on time Ask IT Department about System arrangment a day prior the joinee walks-in Collect the required documents (all documents mandatory) Document Submission Latest Updated Resume Certificates Previous Experience Letter Last Month Salary Slip 5 Passport size Photographs Others – Specify Filled Forms Employee Joining Form Provident Form Salary Account Opening Form Others – Specify Induction Presentation Introduction to Organization Conditions of Employment – Entrances & Exits

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Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities New Joinee Formalities Employee Confirmation Employee Confirmation Employee Confirmation Training Training Training Training

Policies of Companies Provide Staff ID Pass Work place, equipments etc Introduction to colleagues New Entrants New Job - Introduction to Superior Arrange Meeting with Seniors Ask IT Department to create Mastiff Email ID of the New Joine Send New Joinee Introduction Mail to all Employees (To - employee, CC - New Joinee) Send Welcome Note along with Policies link to New Joinee on Mastiff Email ID Complete the Induction Checklist Complete the New joinee file and hand-over to HR Associate Input New joinee Data in Payroll Inform Senior HR about new joinee formalities completion and get the file reviewed Meeting with New Joinee Appointment Letter Send mail to Accounts Department about New joinee Salary details Meeting with New joinee and Superior after one month Mail for Employee Performance Status after 45 days for Confirmation Mail to Admin for New Joinee Permanent I-Card (after taking confirmation from Senior) Co-ordinate with seniors about training schedule Inform Trainers about the training schedule Get the trainers feedback form filled from Trainees Get the trainees feedback form filled from Trainers 36

Training Training Training Training Leave Maintenance Leave Maintenance Leave Maintenance Leave Maintenance Leave Maintenance Budgeting Budgeting Budgeting Budgeting Policy Policy Recreational

Co-ordination with Trainers for feedback of Trainees Communicate the trainees about performance feedback Employment Letter (if any) Complete the trainee employment formalities

Daily Attendance Sheet Updation Leave Records Maintenance Monthly Attendance and leave Updates, send mail to employees (if leaves any) Monthly Attendance and leave Updates (Send to Senior HR by 4th of every month) Review the monthly leave status and send report to Accounts for Salary Release by 6th of every month Prepare HR Budget Maintaining expenses list Co-ordination with accounts & Admin team Get the Budget approved from CEO Policy reviewing Reviewing Salary Band (annually)

Recreational Others

Sending Birthday Mails Monthly B'day party organising, co-ordinate with Mauj Masti Team & Admin Approving Budget for the party and suggestions Preparing Write-up about the event to be posted on Mastiff Blog Sending Salary slips to Employees

New New New New New New Employee Communication Employee Communication Employee

Campus Recruitment Quaterly Performance Evaluation Standardize Training Process Organisation Structure Salary Band Prepare Competitor Companies List Communicating with employees on daily basis (if any issues inform Seniors) Communicating with employees on daily basis (if any issues inform Seniors) Communicating with employees on daily basis (if

Recreational Recreational

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Communication Exit formalities Exit formalities Exit formalities Exit formalities Exit formalities Exit formalities

Exit formalities Exit formalities Exit formalities

any issues inform the respective Manager and Management) Talk to Employee about Resignation Talk to his Senior/Manager about his issue If relieving is confirmed, finalize his last date, notice period, mail the employee about his last date and other formalities On relieving day, conduct exit interview, get the exit form filled Issue necessary documents – Relieving Letter/Experience Letter/Salary Slips (if required) Collect company assets which are with him/her -library books, I-Card, others etc. Calculate his leaves, any deductions, any amount due towards the employee, and inform the accounts to settle the employees accounts (if relieving formalities are duly completed) Inform IT Department to deactivate his Company Email Account Document his exit documents in his employment file

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Pepsi Interview & Recruiting Surveys

“Pepsi Interview & Recruiting Surveys” 39

Pepsi Interview & Recruiting Surveys are detailed accounts of the recruiting/hiring process and interviews at Pepsi (how many rounds of interviews, who conducted the interviews). (7 total PepsiCo, Inc. Interview surveys)

Position interviewed for

Excerpt

Accountant

3 interviews, with the manager of human resources,

Driver

I do not remember any specific interview question

Merchandiser

When I first applied at Pepsi they weren't taking applications anymore

Sr. Analyst

Hiring process was like any process. They use the internet to get candidates and supplement

HR Manager

Very open-ended with the opportunity to discuss previous experience, current attributes and plans

Account Manager

QUAKER: 2 rounds of interviews first with direct report manager and then his superior.

Marketing Manager

5 rounds of interviews. I was interviewed by Argentina Gral. Manager, Marketing Director, Marketing...

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Employee Retenti on

CONTENTS 1. Introduction 2. Compensation 3. Growth & Carrier 4. Support 5. Importance of Relationship in Employees Retention Program 6. Organizational Environment 7. Importance of Employees Retention 8. Employees Retention Strategies 41

9. What Makes Employees Leave?

“Employee Retention”

The picture states the latest statement that corporate believes in “Love them or Lose them”

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Employee Retention involves taking measures to encourage employees to remain in the organization for the maximum period of time. Corporate is facing a lot of problems in employee retention these days. Hiring knowledgeable people for the job is essential for an employer. But retention is even more important than hiring. There is no dearth of opportunities for a talented person. There are many organizations which are looking for such employees. If a person is not satisfied by the job he’s doing, he may switch over to some other more suitable job. In today’s environment it becomes very important for organizations to retain their employees. The top organizations are on the top because they value their employees and they know how to keep them glued to the organization. Employees stay and leave organizations for some reasons. The reason may be personal or professional. These reasons should be understood by the employer and should be taken care of. The organizations are becoming aware of these reasons and adopting many strategies for employee retention. Employees today are different. They are not the ones who don’t have good opportunities in hand. As soon as they feel dissatisfied with the current employer or the job, they switch over to the next job. It is the responsibility of the employer to retain their best employees. If they don’t, they would be left with no good employees. A good employer should know how to attract and retain its employees. Retention involves five major things:

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<<Environment>>

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<<Support>>

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Employee retention would require a lot of efforts, energy, and resources but the results are worth it.

Compensation Compensation constitutes the largest part of the retention process. The employees always have high expectations regarding their compensation packages. Compensation packages vary from industry to industry. So an attractive compensation package plays a critical role in retaining the employees. Compensation includes salary and wages, bonuses, benefits, prerequisites, stock options, bonuses, vacations, etc. While setting up the packages, the following components should be kept in mind: Salary and monthly wage: It is the biggest component of the compensation package. It is also the most common factor of comparison among employees. It includes o

Basic wage

o

House rent allowance

o

Dearness allowance

o

City compensatory allowance

Salary and wages represent the level of skill and experience an individual has. Time to time increase in the salaries and wages of employees should be done. And this increase should be based on the employee’s performance and his contribution to the organization. Bonus: Bonuses are usually given to the employees at the end of the year or on a festival. Economic benefits: It includes paid holidays, leave travel concession, etc. 44

Long-term incentives: Long term incentives include stock options or stock grants. These incentives help retain employees in the organization's startup stage. Health insurance: Health insurance is a great benefit to the employees. It saves employees money as well as gives them a peace of mind that they have somebody to take care of them in bad times. It also shows the employee that the organization cares about the employee and its family. After retirement: It includes payments that an Employee gets after he retires like EPF (Employee Provident Fund) etc. Miscellaneous compensation: It may include employee assistance programs (like psychological counseling, legal assistance etc), discounts on company products, use of a company cars, etc.

Growth and Career Growth and development are the integral part of every individual’s career. If an employee can not foresee his path of career development in his current organization, there are chances that he’ll leave the organization as soon as he gets an opportunity. The important factors in employee growth that an employee looks for himself are: Work profile: The work profile on which the employee is working should be in sync with his capabilities. The profile should not be too low or too high. Personal growth and dreams: Employees responsibilities in the organization should help him achieve his personal goals also. Organizations can not keep aside the individual goals of employees and foster organizations goals. Employees’ priority is to work for themselves and later on comes the organization. If he’s not satisfied with his growth, he’ll not be able to contribute in organization growth. Training and development: Employees should be trained and given chance to improve and enhance their skills. Many employers fear that if the employees are well rained, they’ll leave the organization for better jobs. Organization should not limit the resources on which organization’s success depends. These trainings can be given to improve many skills like: •

Communications skills

•

Technical skills

•

In-house processes and procedures improvement related skills

•

C or customer satisfaction related skills

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•

Special project related skills

Need for such trainings can be recognized from individual performance reviews, individual meetings, employee satisfaction surveys and by being in constant touch with the employees.

Support Lack of support from management can sometimes serve as a reason for employee retention. Supervisor should support his subordinates in a way so that each one of them is a success. Management should try to focus on its employees and support them not only in their difficult times at work but also through the times of personal crisis. Management can support employees by providing them recognition and appreciation. Employers can also provide valuable feedback to employees and make them feel valued to the organization. The feedback from supervisor helps the employee to feel more responsible, confident and empowered. Top management can also support its employees in their personal crisis by providing personal loans during emergencies, childcare services, employee assistance programs, counseling services. Employers can also support their employees by creating an environment of trust and inculcating the organizational values into employees. Thus employers can support their employees in a number of ways as follows: By providing feedback By giving recognition and rewards By counseling them By providing emotional support

Importance of Relationship in Employee Retention Program Sometimes the relationship with the management and the peers becomes the reason for an employee to leave the organization. The management is sometimes not able to provide an employee a supportive work culture and environment in terms of personal or professional relationships. There are times when an employee starts feeling bitterness towards the management or peers. This bitterness could be due to many reasons. This decreases employee’s interest and he becomes de-motivated. It leads to less satisfaction and eventually attrition. A supportive work culture helps grow employee professionally and boosts employee satisfaction. To enhance good professional relationships at work, the management should keep the following points in mind.

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Respect for the individual: Respect for the individual is the must in the organization. Relationship with the immediate manager: A manger plays the role of a mentor and a coach. He designs ands plans work for each employee. It is his duty to involve the employee in the processes of the organization. So an organization should hire managers who can make and maintain good relations with their subordinates. Relationship with colleagues: Promote team work, not only among teams but in different departments as well. This will induce competition as well as improve the relationships among colleagues. Recruit whole heartedly: An employee should be recruited if there is a proper place and duties for him to perform. Otherwise he’ll feel useless and will be dissatisfied. Employees should know what the organization expects from them and what their expectation from the organization is. Deliver what is promised. Promote an employee based culture: The employee should know that the organization is there to support him at the time of need. Show them that the organization cares and he’ll show the same for the organization. An employee based culture may include decision making authority, availability of resources, open door policy, etc. Individual development: Taking proper care of employees includes acknowledgement to the employee’s dreams and personal goals. Create opportunities for their career growth by providing mentorship programs, certifications, educational courses, etc. Induce loyalty: Organizations should be loyal as well as they should promote loyalty in the employees too. Try to make the current employees stay instead of recruiting new ones.

Organization Environment It is not about managing retention. It is about managing people. If an organization manages people well, retention will take care of itself. Organizations should focus on managing the work environment to make better use of the available human assets. People want to work for an organization which provides Appreciation for the work done Ample opportunities to grow A friendly and cooperative environment A

feeling

that

the

organization

Organization environment includes •

Culture

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is

second

home

to

the

employee

•

Values

•

Company reputation

•

Quality of people in the organization

•

Employee development and career growth

•

Risk taking

•

Leading technologies

•

Trust

Types of environment the employee needs in an organization •

Learning environment: It includes continuous learning and improvement of the individual, certifications and provision for higher studies, etc.

•

Support environment: Organization can provide support in the form of work-life balance. Work life balance includes: o

Flexible hours

o

Telecommuting

o

Dependent care

o

Alternate work schedules

o

Vacations

Wellness Work environment: It includes efficient managers, supportive co-workers, challenging work, involvement in decision-making, clarity of work and responsibilities, and recognition. o

•

Lack or absence of such environment pushes employees to look for new opportunities. The environment should be such that the employee feels connected to the organization in every respect.

Importance Of Employee Retention The process of retention will benefit an organization in the following ways: 1. The Cost of Turnover: The cost of employee turnover adds hundreds of thousands of

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money to a company's expenses. While it is difficult to fully calculate the cost of turnover (including hiring costs, training costs and productivity loss), industry experts often quote 25% of the average employee salary as a conservative estimate. 2. Loss of Company Knowledge: When an employee leaves, he takes with him valuable knowledge about the company, customers, current projects and past history (sometimes to competitors). Often much time and money has been spent on the employee in expectation of a future return. When the employee leaves, the investment is not realized. 3. Interruption of Customer Service: Customers and clients do business with a company in part because of the people. Relationships are developed that encourage continued sponsorship of the business. When an employee leaves, the relationships that employee built for the company are severed, which could lead to potential customer loss. 4. Turnover leads to more turnovers: When an employee terminates, the effect is felt throughout the organization. Co-workers are often required to pick up the slack. The unspoken negativity often intensifies for the remaining staff. 5. Goodwill of the company: The goodwill of a company is maintained when the attrition rates are low. Higher retention rates motivate potential employees to join the organization. 6. Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring a new employee and then training him/her and this goes to the loss of the company directly which many a times goes unnoticed. And even after this you cannot assure us of the same efficiency from the new employee.

Employee Retention Strategies The basic practices which should be kept in mind in the employee retention strategies are: 1. Hire the right people in the first place. 2. Empower the employees: Give the employees the authority to get things done. 3. Make employees realize that they are the most valuable asset of the organization. 4. Have faith in them, trust them and respect them. 5. Provide them information and knowledge. 6. Keep providing them feedback on their performance.

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7. Recognize and appreciate their achievements. 8. Keep their morale high. 9. Create an environment where the employees want to work and have fun. These practices can be categorized in 3 levels: Low, medium and high level.



<Medium >



What Makes Employee Leave? Employees do not leave an organization without any significant reason. There are certain circumstances that lead to their leaving the organization. The most common reasons can be: Job is not what the employee expected to be: Sometimes the job responsibilities don’t come out to be same as expected by the candidates. Unexpected job responsibilities lead to job dissatisfaction. Job and person mismatch: A candidate may be fit to do a certain type of job which matches his personality. If he is given a job which mismatches his personality, then he won’t be able to perform it well and will try to find out reasons to leave the job. •

No growth opportunities: No or less learning and growth opportunities in the current job will make candidate’s job and career stagnant. 50

•

Lack of appreciation: If the work is not appreciated by the supervisor, the employee feels de-motivated and loses interest in job.

•

Lack of trust and support in coworkers, seniors and management: Trust is the most important factor that is required for an individual to stay in the job. Nonsupportive coworkers, seniors and management can make office environment unfriendly and difficult to work in.

•

Stress from overwork and work life imbalance: Job stress can lead to work life imbalance which ultimately many times lead to employee leaving the organization.

•

Compensation: Better compensation packages being offered by other companies may attract employees towards themselves.

•

New job offer: An attractive job offer which an employee thinks is good for him with respect to job responsibility, compensation, growth and learning etc. can lead an employee to leave the organization.

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Performanc e Appraisal

CONTENTS 1. 2. 3. 4. 5. 6. 7.

Introduction Contents of Performance Appraisal Form Process Purpose Objectives Approaches Techniques 52

8. Challenges of Performance Appraisal 9. Performance Appraisal Softwares 10. Key to change Organizational Culture 11. Linking compensation to Performance 12. Relationship between Performance Appraisal and Organizational Performance 13. Performance Appraisal for Employees at different Levels 14. Criteria 15. Pre-requisites for Effective & Successful Performance Appraisal

“PERFORMANCE APPRAISAL” People differ in their abilities and their aptitudes. There is always some difference between the quality and quantity of the same work on the same job being done by two different people. Therefore, performance management and performance appraisal is necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.

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Performance appraisals are widely used in the society. The history of performance appraisal can be dated back to the 20th century and then to the second world war when the merit rating was used for the first time. An employer evaluating their employees is a very old concept. Performance appraisals are an indispensable part of performance measurement. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aims.

Performance appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees.  CONTENTS OF PERFORMANCE APPRAISAL FORM: 1. Quality of work • Consider accuracy, thoroughness, effectiveness. • Pressure, ability to meet standards of quality. • Use of time and volume of work accomplished. • Work output matches the expectations established.

2. Quantity of work • Competence, thoroughness, and efficiency of work regardless of volume. • Neatness and accuracy.

3. Teamwork: • Establish and maintain effective working relationship with others. • Shares information and resources with others • Follows instructions of supervisor and respond to requests from others in the team in a helpful manner. • Contributing work and effort to group performance to meet agreed upon objectives and achieve team success

4. Job knowledge • Application of appropriate level of technical and procedural knowledge in specific field • Degree of technical competence • Understanding of job procedures, methods, facts and information related to assignments. • Perform duties with minimal supervision but seek guidance where and when appropriate to the job, consults the appropriate staff

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5. Initiative • Consider the extent to which the employees sets own constructive work practice and recommends and creates own procedures. • Self-starter, develop and implement new methods, procedures, solutions, concepts, designs and/or applications of existing designs or procedures. • Accepts additional challenges and responsibilities and willingly assist others, selfreliant. • Completes assignment on time.

6. Interpersonal relations • Consider the extent to which the employee is cooperative, considerate, and tactful in dealing with supervisors, subordinates, peers, faculty, students and others.

7. Health and safety compliance • The degree to which he or she complies with or over sees the compliance with university safety rules. • The following are also to be completed for supervisory personnel and members of the administrative staff.

8. Communications abilities Performance appraisal of communications includes elements as:

• Ability to listen and understand information; • Presents information in a clear and concise manner. • Knows appropriate way of communicating with immediate superiors and the management • Demonstrates respect for all individuals in all forms of communication • Regardless of their background or culture;

9. Planning and organizing: • Adapting to changes and using resources effectively; • Maintains confidentiality as appropriate. • Setting objectives, establishing priorities, developing plans; • Arranging work schedules and prioritizing work to meet deadlines. • Know when to ask for clarification before proceeding on a work project.

10. Problem analysis and decision making • Anticipating problems and facilitate problem resolution. • Willingness to make necessary and immediate decisions given incomplete information.

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• Understanding practical and workable solutions. • Recognizing when a decision is necessary, asking for input, making decisions and providing information and feedback in a timely manner.

11. Staff development • The extent to which the individual provides guidance and opportunities to his or her staff for their development and advancement in the university.

12. Dependability Performance appraisal of dependability includes elements as: • Consider the extent to which the employee completes assignments on time and carries out instructions. • Starts work at appropriate time; • Respects time allowed for breaks and lunch; • Follows policies for requesting and reporting time off; • Helps ensure work duties are covered when absent; • Employee’s presence can be relied upon for planning purposes. • Attendance and punctuality meets supervisor’s requirements.

 Process of Performance Appraisal

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ESTABLISHING PERFORMANCE STANDARDS The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators.

MEASURING THE ACTUAL PERFORMANCE The most difficult part of the performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work.

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COMPARING THE PERFORMANCE

ACTUAL

WITH

THE

DESIRED

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 a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees’ performance.

DISCUSSING RESULTS The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees’ future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better.

DECISION MAKING The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

 Purpose 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.  To diagnose the training and development needs of the future.  Provide information to assist in the HR decisions like promotions, transfers etc.  Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.  To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.  To reduce the grievances of the employees.  Helps to strengthen the relationship and communication between superior – subordinates and management – employees. 58

According to a recent survey, the percentage of organizations (out of the total organizations surveyed i.e. 50) using performance appraisal for the various purposes are as shown in the diagram:

The most significant reasons of using Performance Appraisal are: •

Making payroll and compensation decisions – 80%

•

Training and development needs – 71%

•

Identifying the gaps in desired and actual performance and its cause – 76

 OBJECTIVES OF PERFORMANCE APPRAISAL: •

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

•

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

•

To help the management in exercising organizational control.

•

Helps to strengthen the relationship and communication between superior – subordinates and management – employees.

•

To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future.

•

To provide feedback to the employees regarding their past performance.

•

Provide information to assist in the other personal decisions in the organization.

•

Provide clarity of the expectations and responsibilities of the functions to be performed by the employees.

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•

To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development.

 Approaches to Performance Development Performance appraisal - Traditional approach Traditionally, performance appraisal has been used as just a method for determining and justifying the salaries of the employees. Then it began to be used a tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the past performance of the employees. This approach was a past oriented approach which focused only on the past performance of the employees i.e. during a past specified period of time. This approach did not consider the developmental aspects of the employee performance i.e. his training and development needs or career developmental possibilities. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees. Therefore, this approach is also called as the overall approach. In 1950s the performance appraisal was recognized as a complete system in itself and the Modern Approach to performance appraisal was developed.

Performance appraisal - Modern approach The modern approach to performance development has made the performance appraisal process more formal and structured. Now, the performance appraisal is taken as a tool to identify better performing employees from others, employees’ training needs, career development paths, rewards and bonuses and their promotions to the next levels. Appraisals have become a continuous and periodic activity in the organizations. The results of performance appraisals are used to take various other HR decisions like promotions, demotions, transfers, training and development, reward outcomes. The modern approach to performance appraisals includes a feedback process that helps to strengthen the relationships between superiors and subordinates and improve communication throughout the organization. The modern approach to performance appraisal is a future oriented approach and is developmental in nature. This recognizes employees as individuals and focuses on their development.

 Techniques Of Performance Appraisal

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The various methods and techniques used for performance appraisal can be categorized as the following traditional and modern methods:

A) Traditional Methods of Performance Appraisal 1. ESSAY APPRAISAL METHOD This traditional form of appraisal, also known as “Free Form method” involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator.

2. STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall 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 comparisons on the basis of the overall comparisons, the employees are given the final rankings.

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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 the employee behavior as and when they occur.

5. FIELD REVIEW In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

6. CHECKLIST METHOD The rater is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken 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.

8. FORCED DISTRIBUTION To eliminate the element of bias from the rater’s 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.

B) Modern-Method 1. MANAGEMENT BY OBJECTIVES The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employee’s actual performance with the standards set. Ideally, when employees 62

themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

UNIQUE FEATURES AND ADVANTAGES OF MBO The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals. Some of the important features and advantages of MBO are: 

Clarity of goals – With MBO, came the concept of SMART goals i.e. goals that are:

Specific Measurable Achievable Realistic, Time bound. The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees. 

The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback.



Motivation – Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment.



Better communication and Coordination – Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.

2. 360-DEGREE-PERFORMANCE-APPRAISAL METHOD 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the “on-the-job” performance of the employee. 360 degree appraisal has four integral components: 1. Self appraisal

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2. Superior’s appraisal 3. Subordinate’s appraisal 4. Peer appraisal. Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree appraisal where the employees’ responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree appraisals have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods. 360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc.

Arguments Against 360 Degree Performance Appraisal

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Despite the fact that 360 degree appraisals are being widely used throughout the world for appraising the performance of the employees at all levels, many HR experts and professionals argument against using the technique of 360 degree appraisals. The main arguments are: •

360 performance rating system is not a validated or corroborated technique for performance appraisal.

•

With the increase in the number of raters from one to five (commonly), it become difficult to separate, calculate and eliminate personal biasness and differences.

•

It is often time consuming and difficult to analyze the information gathered.

•

The results can be manipulated by the employees towards their desired ratings with the help of the raters.

•

The 360 degree appraisal mechanism can have an adversely effect the motivation and the performance of the employees.

•

360 degree feedback – as a process- requires commitment of top management and the HR, resources (time, financial resources etc), planned implementation and follow-up.

•

360 degree feedback can be adversely affected by the customers’ perception of the organization and their incomplete knowledge about the process and the clarity of the process.

Often, the process suffers because of the lack of knowledge on the part of the participants or the raters.

3. ASSESSMENT CENTRES An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centre are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centre are also an effective way to determine the training and development needs of the targeted employees.

4. BEHAVIORALLY ANCHORED RATING SCALES

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Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for e.g. the qualities like inter-personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employee’s actual job behavior is judged against the desired behavior by recording and comparing the behavior with BARS. Developing and practicing BARS requires expert knowledge.

5. HUMAN RESOURCE ACCOUNTING METHOD Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the performance of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

 Challenges Of Performance Appraisal In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are:

• Determining the evaluation criteria Identification of the appraisal criteria is one of the biggest problems faced by the top management. The performance data to be considered for evaluation should be carefully selected. For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms

• Create a rating instrument The purpose of the performance appraisal process is to judge the performance of the employees rather than the employee. The focus of the system should be on the development of the employees of the organization. •

Lack of competence Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. They should have the experience and the necessary training to carry out the appraisal process objectively. 66

• Errors in rating and evaluation Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait influencing the evaluator’s rating for all other traits) etc. may creep in the appraisal process. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees •

Resistance The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her.

 Performance Appraisal Software The growing size of the organisations, the competition in the labour market and the importance of the performance management and appraisals have given way to the use of performance appraisal softwares. Many companies providing the HR services and the software companies provide the performance appraisal softwares. The performance appraisals softwares automate the appraisal processes and assist the HR by adding online capacities to the processes. The performance appraisal software can be customized according to the needs of the organisation. The various forms and other processes can be designed in accordance to the practices being followed in the organisation. The software standardizes the appraisal process. The software applications also have guidelines for the users to guide them throughout the process, alerting the users about the errors and mistakes (if any), suggesting the appropriate language to be used, provides a systematic records of the necessary documents to the rater and the HR Department. Several software packages are available which also provide the 360-degree review program so that employees can get a multi-rater feedback about their performance.

Benefits of using performance appraisal softwares By using the performance appraisal softwares, an organisation can reap the following benefits: •

The performance appraisal software can be implemented organisation wide, covering all the employees at the levels (from lowest rank to top management) and across all the branches of the organisation throughout the world.

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•

Designed with the latest technologies, they are easy to understand and make things structured, organized and standardized throughout the organisation.

•

Performance Measures, KPI and KRA’s, goals and objectives for each employee, team and department can be weighted and listed according to their importance and priority.

•

Use of the standard performance appraisal softwares can help to reduce the subjectivity and the bias in the ratings of the appraisers.

•

It facilitates the calculations and adjustments of the performance related pay and other related HR decisions.

•

Automatic reminders can be sent to the employees and the concerned authorities for the due appraisals.

•

It helps the HR department in appraising the performance and to manage the performance of the employees efficiently and effectively.

•

Helps to improve the productivity of the employees and employee retention in the organisation.

•

Keeps a detailed record of the past performances and the reviews of the employees.

 Performance Appraisal Process - Key to Change organizational Culture The performance appraisal process provides an opportunity for introducing organizational change. It facilitates the process of change in the organizational culture. The interactive sessions between the management and the employees, the mutual goal setting and the efforts towards the career development of the employees help the organization to become a learning organization. Conducting performance appraisals on a regular basis helps it to become an ongoing part of everyday practice and helps employees to take the responsibility of their work and boosts their professional development. Various studies in the field of human resources have already proved that performance appraisal process can affect the individual performance (in a negative or positive way), thus having an impact on the collective performance. Performance appraisal: An opportunity for an organisational culture shift •

Performance appraisal process focuses on the goal setting approach throughout the organisation.

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•

Performance appraisal helps the clarity and understanding of the roles and responsibilities of the employees.

•

The performance appraisal processes have the potential positive effects on recruitment

•

It increases organisational effectiveness i.e. what to do and how to do through a formal and structured approach.

•

Some evidence of the beneficial effects of team rewards

Therefore, performance appraisal is also an important link in the process of change in organization culture.

 LINKING COMPENSATION TO PERFORMANCE One of the latest strategies being followed in all sectors through out the world for retention and talent management is “linking compensation to performance”. Commonly known as “Performance pay” or “Performance based pay”, it links the compensation of the employees to their performance and their contribution to the organizational goals. Therefore, periodic performance reviews play a vital role and provide the basis of performance related pay. Commissions, incentives and bonuses, piece rate pay help the employer to pay the employee according to their productivity and hard work. The process of performance based pay involves: • • • •

Deciding and clearly defining the performance goals and the performance measures Setting the target bonus for different levels of performances Measuring the performance of the employee Giving rewards and bonus according to performance

Organizations are also designing variable compensation plans for various roles and positions in the organization.

 Types of Performance Pay •

Merit pay – The first step to performance pay, merit pay means setting some basic salary according to the position and the rank of the employee and the variable part of the salary is based on the periodic performance reviews. 69

•

Profit Sharing – Sharing the profits of the enterprise with the employees as bonus.

•

Incentives and Performance Bonus – Rewards for special accomplishments or fulfillment of the targets set such as sales commission.

•

Gain sharing - Sharing of gains as a result of the increased performance of the employees with them.

Although performance related pay has always been a topic of discussions and controversies with many arguments against it, but it has also been proved that performance based pay motivates employees to perform better and earn, and encourages learning, innovation, creativity, problem solving and empowerment which can be facilitated through proper performance measurement and reviews.

 Relationship Between Performance Appraisal and Organizational Performance Performance appraisal processes are one of the central pillars of the performance management which is directly related to the organizational performance and have a direct impact on it. Employee performance ultimately effects the organizational performance and objectives. According to a few HR professionals, the appraisals have no value for the organisation as there is no direct relationship in performance appraisals and the organizational performance. Also, there is no strong evidence to prove that appraisals positively impact the performance of the employees. But the HR professionals who see the organizational performance as a result or sum of the employee’s performance, argue that apart from the direct benefits to the organisation, appraisals contribute to employee satisfaction, which in turn leads to improved performance. For an organisation to be effective, the goals, the standards and the action plans need to be planned well in advance. Thus, performance appraisal facilitates the achievement of organizational goals. It also facilitates the optimal use of the organizational resources.

Performance appraisals – a double-edged sword Performance appraisal is like a double edged sword for an organisation. Although it has many benefits for the organisation, various studies have also revealed that performance appraisals have the equal probability of having a bad impact on the organizational as well as the employee performance. Where the performance appraisal improves the work performance and employee satisfaction, it can also demotivate employees and leaving a bad impression on the good employees. Most of the employees do not approve of continuous performance monitoring and performance appraisals, and also consider it as a burdensome activity. According to 70

Professor Kuvaas “Performance appraisals and other tools which involve feedback and target management should be adapted to the employee’s individual needs and characteristics. Otherwise, there is a risk of harming the good employees without being able to help the less good.” Performance appraisal processes can create a sense of insecurity in the working environment and can become an obstacle in achieving the required changes in the attitudes and the performance of the employees. The element of bias in the appraisals can also worsen the situation. Therefore, performance appraisals can effect the organizational performance both positively and negatively, and should be dealt with care and expert knowledge and experience.

 Performance Appraisal For Employees at Different Levels Performance appraisal is important for employees at all levels throughout the organization. The parameters, the characteristics and the standards for evaluation may be different, but the fundamentals of performance appraisal are the same. But as the level of the employees’ increases, performance appraisal is more effectively used as the tools of managing performance.

Performance appraisals of Managers: Appraising the performance of managers is very important, but at the same time, it is one of the most difficult tasks in the organization. It is difficult because most of the managerial work cannot be quantified i.e. it is qualitative in nature like leading his/her team, guiding, motivating, planning etc. Therefore, the two things to be noted and evaluated for the purpose of appraisals are: •

Performance in accomplishing goals, and

•

Performance as managers

Performance in accomplishing goals Managers are responsible for the performance of their teams as a whole. Performance in accomplishing goals would mean to look at the completion or achievement of the goals set for a team of employees which is being assigned to or working under a particular manager. The best measuring criteria for a manager are hi goals, his plans of course of action to achieve them and the extent of achievement of the goals.

Performance as managers

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The responsibilities of managers include a series of activities which are concerned with planning, organizing, directing, leading, motivating and controlling. Managers can be rated on the above parameters or characteristics

 Criteria for measuring performance at different levels: The criteria for measuring performance changes as the levels of the employees and their roles and responsibilities change. A few examples for each level are described below:

For top level management •

Degree of organizational growth and expansion

•

Extent of achievement of organizational goals

•

Contribution towards the society

•

Profitability and return on capital employed

For middle level managers •

Performance of the departments or teams

•

Co-ordination with other departments

•

Optimal use of resources

•

Costs Vs. revenues for a given period of time

•

The communication with superiors and subordinates

For front line supervisors •

Quantity of actual output against the targets

•

Quality of output against the targets

•

Number of accidents in a given period

•

Rate of employee absenteeism

 Pre-requisites for Effective & Successful Performance Appraisal The essentials of an effective performance system are as follows:

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•

Documentation – Means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings.

•

Standards / Goals – The standards set should be clear, easy to understand, achievable, motivating, time bound and measurable.

•

Practical and simple format - The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. Evaluation technique – An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee.

•

•

Communication – Communication is an indispensable part of the performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the appraisal process.

•

Feedback – The purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees’ future performance.

•

Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively.

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In JBPL, Management By Objective (MBO) Method Is Used

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PAY FOR PERFORMANCE

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“Performance Related Pay” Performance Related Pay • • • •

Performance Related Pay (PRP) or Variable Pay is the reward paid to individuals based on performance against the predetermined objectives aligned to the business. PRP is essentially a method of linking the pay of an individual to his/her performance achieved at work (usually) against agreed objectives. It is a method to remove or bridge the gap between pay and performance. It is based on premise in general that top performers are funded at the cost of lower/non-performer.

Ways of linking Pay to Performance • • • •

Varieties of ways such as cash bonuses, additional salary/increments, faster incremental progression, all of which have their strong and weak points. Different plans each uniquely suited to different employee groups/departments. Separate from profit related pay, group incentive schemes or profit sharing scheme. Not to be confused with base pay adjustments.

Benefits: • • • • • • • • • • •

Motivating people and creating performance oriented culture To attract, retain and utilize most talented or right people in the organization To catch top performers attention and sends a signal to a poor performing employee Sends vital signals about the organization priorities and values Transforming reward from entitlement to achievement Close to 78% companies view that this has positive impact on business results Shifting compensation cost from fixed to variable expenses 20% people contributing 80% of the results should be suitably rewarded Best way to increase productivity to secure dominance in the market Paying for performance works much better in down times than in boom times It is right and proper to pay in accordance with the contribution made by individual

Creating Effective PRP Plan • • • • •

Full commitment from the management and senior executives Compensation system that Differentiates rewards, not just performance Sets clear performance-reward linkage Support and involvement of senior executives and managers who will own, educate and communicate the plan 76

• • • • • • • •

Good “Performance Management Program (PMP)” in place which Establishes clearly defined “SMART” individual objectives and competencies aligned to overall organization goals Encourages and supports open, honest feedback and review of all Hold employees accountable for results Hold managers for substandard performance and for improving or removing poor performers Formally recognizes and rewards the higher performance Clear identification of the target group, department, level etc. Requires high performance culture

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“MEASURING PERFORMANCE” GOALS 2007

December, 2006

Name Job Title Qualification Reporting to Deptt. Date of joining GOALS FOCUSING ON GROWING THE BUSINESS GOALS/OBJECTIVES

DESIRED RATING (66)

1. SALES VOLUME/ MARKET SHARE

25

2. DISTRIBUTION LEADERSHIP

8

STRATEGIC PRIORITIES/ACTION PLAN

10 3. VISIT MANAGEMENT

12

4. PROFITABILITY/ COST/ DISCOUNT CONTROL 12 5. PROCESS ORIENTATION

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GOALS FOCUSING ON GROWING PEOPLE/ORG. CAPABILITY OBJECTIVES

DESIRED RATING(33)

1. COACH AND DEVELOP FOR

18

2. SALES TRAINING

STRATEGIC PRIORITIES/ACTION PLAN

15 33

PERFORMANCE RATING SCALES & LEVELS 5 4 3 2 1

SAT AT OT BT SBT

Significant Above Target : Significantly exceeded expectations Above Target : Consistently exceeded expectations On Target : meet all & exceeded some expectations Below Target : Meet some, but not all, expectations Significant Below Target : Significantly below expectations

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“Arriving at Performance Level” PART - I PART - II PERFORMANCE WEIGHTED WEIGHTED PERFORMANCE LEVEL AVERAGE AVERAGE LEVEL ( TOTAL OF PERFORMANCE PERFORMANCE PART I & II) LEVEL LEVEL 15 SAT 5 5 X 2 = 10 5X1=5 15 14 13 12 AT 4 4X2=8 4X1=4 12 11 10 OT 3 3X2=6 3X1=3 9 9 8 7 BT 2 2X2=4 2X1=2 6 6 5 4 3 SBT 1 1X2=2 1X1=1 3 2 1

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“Establishing Linkage of Performance to Reward” PART - I WEIGHTED PERFORMA AVERAGE NCE LEVEL PERFORMA NCE LEVEL SAT

5

5 X 2 = 10

AT

4

4X2=8

OT

3

3X2=6

BT

2

2X2=4

SBT

1

1X2=2

PART - I I

B TOTA ASE VARIAB TOTA WEIGHTED L OF PAY LE PAY L AVERAGE PART RAIS (%) INCR PERFORMA I & E NCE LEVEL II (%) 15 15 15 30 5 X 1 = 5 15 14 14 11 25 13 13 7 20 12 12 4 16 4 X 1 = 4 12 11 11 2 13 10 10 0 10 3X1=3 9 9 9 0 9 8 8 0 8 7 7 0 7 2X1=2 6 6 6 0 6 5 5 0 5 4 0 0 0 3 0 0 0 1X1=1 3 2 0 0 0 1 0 0 0

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Data Analysis

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Number of Employees working at different levels in JBPL Employees Top-level Managers Middle-level Managers Front-line supervisors Total

Years 2005 14

2006 17

2007 23

2008 22

78

88

102

106

23

22

22

41

115

127

147

169

Number of Top-level Managers in different departments in JBPL Managers HR Sales Marketing Production & Quality Finance Shipping Purchase Head Office Store

Years 2005 1 4 1 5

2006 1 6 1 4

2007 1 7 1 7

2008 1 8 1 7

1 1 0 1 0

2 1 1 1 0

2 2 1 1 1

2 1 1 0 1

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Number of Employees placed at different Performance Level according to their roles and responsibilities change: Top-Level Managers: Year 2005=14 Managers Year 2006=17 Managers Year 2007=23 Managers Year 2008=22 Managers 16 14 12 SAT AT OT BT SBT

10 8 6 4 2 0

2005

2006

2007

2008

Performance Level SAT AT OT BT SBT

5 4 3 2 1

Years 2005 4 7 3 -

2006 6 9 2 -

2007 10 11 2 -

2008 16 6 -

In 2005, there were 14 Managers. 3 more Managers were joined in 2006 and 6 Managers were joined in 2007. But in 2008, there were only 22 Managers because one of them is transferred to another State.

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ANALYSIS:  Most of the Managers are at SAT (Significant Above Target) Performance Level  Maximum of the Managers are at AT (Above Target) Performance Level.  Some of the Managers are at OT (On Target) Performance Level. This is due to their efficiency and contribution towards the organization.

Middle-Level Managers: Year 2005=78 Managers Year 2006=88 Managers Year 2007=102 Managers Year 2008=106 Managers 60 50 40

SAT AT OT BT SBT

30 20 10 0 2005

2006

2007

2008

Performance Level SAT AT OT BT SBT

5 4 3 2 1

Years 2005 9 25 42 2 -

2006 19 30 38 1 -

2007 23 50 29 -

2008 31 60 15 -

In 2005, there were 78 Managers. 10 more Managers were joined in 2006, 14 Managers in 2007 and 4 Managers in 2008 were joined. There is a continues increase in the number of Middle Level Managers.

ANALYSIS: Poor Performance due to 84

 Lack of alignment of individual and organizational goals.  Managers are not thrilled to deliver less then favorable news.  Influence of higher rating by other department. But there were continues improvement in their Performance Level.

Front-Line Supervisors: Year 2005=23 Supervisors Year 2006=22 Supervisors Year 2007=22 Supervisors Year 2008=41 Supervisors 25 20 SAT AT OT BT SBT

15 10 5 0 2005

2006

2007

2008

Performance Level SAT AT OT BT SBT

5 4 3 2 1

Years 2005 5 5 10 3 -

2006 7 6 7 2 -

2007 10 8 3 1 -

2008 21 15 5 -

In 2005, there were 23 Supervisors. 22 Supervisors in 2006 and in 2007 but in 2008, there was high increase in number i.e. 41 Supervisors. There is a continues increase in the number of Front-Line Supervisors.

ANALYSIS: Poor Performance due to  Lack of confidence and competence.

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 Lack of productivity and effectiveness, contributes least to organization bottom line.

SUGGESTIONS AND RECOMMENDATION: 1. JBPL should build a strong management and development framework to stand the vigorous competition from the various industries. 2. Paper work must be reduced, computerized work should be more. 3. There should be on-line information of all the employees regarding all the activities performed by them like performance, communication skills, quality of work, over time devoted by each employee, etc. 4. By adopting MBO method, Employees compete against each other and don’t help others.

CONCLUSION: The Performance Appraisal methods vary from one organization to another. Change in method of Performance Appraisal has observable and immediate side effect on organizational processes like work task, job design, organizational structure, knowledge and skill required, and values, attitudes and behavior of employees. Substantive changes in one or more of the above factors leads to perceive or actual psychological threat of job displacement, reduction in economic security, disruption of social arrangements and redefining of authority relationships. These threaten the psychological and social status of an employee, triggering off resistance to change.

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