Professional Documents
Culture Documents
2011
Submitted by:
1|Page
Performance Appraisal System at Dabur India Limited
Contents
2011
Contents............................................................................................................. 2
Introduction........................................................................................................ 3
The Appraisal Process.........................................................................................4
Performance Management.................................................................................5
Who Evaluates Performance?.............................................................................6
Dabur India Limited: Organizational Profile........................................................7
Performance Appraisal System in Dabur India Limited.......................................7
Outcome of Performance Appraisal....................................................................8
Duration of Appraisal System.............................................................................9
Feedback............................................................................................................ 9
Response............................................................................................................ 9
Sample of the study..........................................................................................10
Methodology of the project...............................................................................10
The Questionnaire.........................................................................................10
Response to Questionnaire............................................................................10
Data entry and analysis.................................................................................11
Limitations.....................................................................................................11
Research Findings............................................................................................11
1. Promotions....................................................................................................11
Aligning goal.....................................................................................................13
Career Progress................................................................................................13
Feedback.......................................................................................................... 15
Promotion Policy and Performance Appraisal System.......................................16
Conclusion........................................................................................................ 16
Suggestions...................................................................................................... 17
Open Appraisal System.....................................................................................18
Annexure.......................................................................................................... 19
Questionnaire................................................................................................... 19
Bibliography......................................................................................................20
2|Page
Performance Appraisal System at Dabur India Limited
Introduction
b) It helps management spot individuals who have specific skills so that their
promotions/transfers are in line with organizational requirements.
3|Page
Performance Appraisal System at Dabur India Limited
There are basically three purposes to which performance appraisal can be put. 2011
• First, it can be used as a basis for reward allocations. Decisions as to, who
gets salary increases, promotions, and other rewards are determined by
their performance evaluation.
4. Appraise performance
5. Performance interview
4|Page
Performance Appraisal System at Dabur India Limited
clear and objective enough to be understood and measured. Too often, these
standards are articulated in some such phrase as "a full day's work" or "a good
job". Communication only takes place when the transference has taken place
and has been received and understood by the subordinate. Therefore feedback is 2011
necessary from the subordinate to the manager. Satisfactory feedback censures
that the information communicated by the manager has been received and
understood in the way it was intended.
What we measure is probably more critical to the evaluation process than how
we measure, since the selection of the wrong criteria can result in serious
dysfunctional consequences. And what we measure determines, to a great
extent, what people in the organization will attempt to excel at.
The final step in the appraisal is the initiation of corrective action when
necessary. Corrective action can, be of two types. One is immediate and deals
predominantly with symptoms. The other is basic and delves into causes.
Immediate corrective action often described as "putting out fires," whereas basic
corrective action gets to the source of deviation and seeks to adjust the
difference permanently. Immediate action corrects something right now and gets
things back on track.
Performance Management
Since organizations exits to achieve goals, the degree of success that individual
employees have in reaching their individual goals is important in determining
5|Page
Performance Appraisal System at Dabur India Limited
The most fundamental requirement for any individual who rates performance is
that he or she has an opportunity to observe an employee’s job performance
over a reasonable period of time. The following individuals can possible rate
employee performance:
Generally appraisal is done by this person. He is probably the most familiar with
the individual's performance and in most jobs has had the best opportunity to
observe actual job performance. Furthermore, the immediate supervisor is
probably best able to relate the individual's performing to department and
organizational objectives. In some jobs such as outside sales, law enforcement
and teaching, the immediate supervisor may observe a subordinate's actual job
performance rarely (and indirectly thru written reports). Here judgment of peers
play important role. However, there is a danger of potential bias.
Subordinates:
6|Page
Performance Appraisal System at Dabur India Limited
delegates, how well he communicates, the type of leadership he has and the
extent to which he or she plans and orgasms.
On one hand it improves the rate's motivation and moral, on the other it tends to
be more lenient, less variable and biased. The evidence on the accuracy of self
assessment is fairly complex.
In industry it is seen that feed back/ input is taken from various sources -Peers,
subordinates, superiors etc. Some companies have gone step ahead in taking
feedback from the customers and integrating it into the performance
management process.
The story of Dabur goes back to 1884, to a young doctor armed with a degree in
medicine and a burning desire to serve mankind. This young man, Dr. S. K.
Burman, laid the foundations of what is today known as Dabur India Limited.
From those humble beginnings, the company has grown into India's leading
manufacturer of consumer healthcare, personal care and food products.
The main objective of the performance appraisal system at Dabur India Limited
is to evaluate employee performance, promote their employees and to arrange
for their various training programmes if they require for enhancing their skills in
their respective areas and in contribution enhancement.
7|Page
Performance Appraisal System at Dabur India Limited
Company set goals to its employee by properly reporting with its employees and
then evaluating them up to what extent it has been achieved and if there is
failure in reaching the target what are the causes or reasons behind it.
Every evaluator has his or her own value system which acts as a standard
against which appraisals are made. Relative to the true or actual performance an
individual exhibits, some evaluators mark high and others low. The former is
referred to as positive leniency error and the latter as negative leniency error.
When evaluators are positively lenient in their appraisal, an individual's
performance becomes over- stated; that is, rated higher than it actually should.
Similarly, a negative leniency error understates performance, giving the
individual a lower appraisal. As such there is no scope of error as far as the
Dabur is concerned, but sometimes over estimation of target brings about a
description in the evaluating criteria. Thus, though chances are less, positive
leniency errors have been stated to be committed.
As far as Dabur India Limited is concerned, there are four outcomes possible:
8|Page
Performance Appraisal System at Dabur India Limited
a. Outstanding
b. Excellent
c. Good
d. Below average
The time constraints enables the employee to show or project his or her
capabilities in term of performance as per the duration allowed. In Dabur India
Limited, the performance appraisal system is carried out annually.
Feedback
The company provides the annual feedback to its employees and thus, in term
bring out the highlights of the self assessment programme. This enables better
communication between the management and employees thus, helps in
promoting the business future.
Response
9|Page
Performance Appraisal System at Dabur India Limited
There are mixed responses from the feedback by the employees. It has helped
some of the employees in motivating themselves while those who felt bad were
thoroughly communicated and all the confusion and failure part were discussed
with employees. 2011
The population covered for the present study consisted of employee belonging to
supervisory and the level above. For the purpose of this study, survey covered
the employee of DABUR INDIA LTD. falling under supervisor and the level above.
The study covered a sample of 30 employees belonging to supervisory level and
above.
The project work has been carried out in three stages, a structured questionnaire
with objective and question was communicated tested and finalize. During the
second stage, the questionnaire was administered to the employees at Dabur
India Ltd. by contacting them. The work relating to data entry compilation, data
analysis and report writing constituted the third stage. Interview index was also
used at some places to get information on the project subject.
The Questionnaire
Keeping in view the objective of the study, questionnaire was designed and
tested on few employees. After getting the proper response and sanction from
the concerned department the questionnaire was finalized.
Response to Questionnaire
10 | P a g e
Performance Appraisal System at Dabur India Limited
It has been an uphill task to enter the enormous data received through the
questionnaire which consisted of nearly 10 questions. Hence these were further 2011
structured in time with the system adopted for compilation and data analysis.
Limitations
Research Findings
After collecting the data on "Performance Appraisal System" data was Analyzed
and interpreted. The various topics covered for analysis and interpretation of
data are:
1. Promotions
11 | P a g e
Performance Appraisal System at Dabur India Limited
From the above table, it can be seen that 26% agree that promotion is well
defined in the organisation. However 50% were not able to say it as there is lack
of information about the promotion policy. Every employee need to be
communicated about the existing promotion policy.
12 | P a g e
Performance Appraisal System at Dabur India Limited
Aligning goal
2011
Respondent were asked about the present system, does it help in aligning
individual goals with those of the organisation. The responses were as given
below:
Here the response from the supervisor was 47% for the factor that it helps in
aligning their goal with those of organisation.
Career Progress
Career advancement is the most motivating factor when employees aspire for
the advancement of his career and for better opportunities to use his/her talents.
13 | P a g e
Performance Appraisal System at Dabur India Limited
Are the issues like career planning and succession planning a part of company’s
policy? The responses to the above were as given below:
Here only 47% of the respondent gave response that it does not have a career
development plan and a succession plan.
14 | P a g e
Performance Appraisal System at Dabur India Limited
Feedback
2011
Providing feedback plays constructive role. It helps the employee know his/her
weakness and strength. Feedback provides for the area of improvement.
Respondents were asked about the frequency of feedback based on their
performance. The responses were as given below
15 | P a g e
Performance Appraisal System at Dabur India Limited
Respondents were asked whether the promotion policy is linked with the
performance appraisal system:
2011
Majority responded that that promotion policy is linked with the performance
appraisal system.
Conclusion
16 | P a g e
Performance Appraisal System at Dabur India Limited
The analysis and interpretation of data on study of performance appraisal and its
effectiveness in an organization led to the following conclusions:
• The appraisal outcome has to be used frequently for the purpose of reward on
performing well together with the feedback on the performance. Also when
performance goes down employee has to be given feedback and motivated to
do better. The organization at present doesn't focus on career planning and
career suggestion plans.
Suggestions
17 | P a g e
Performance Appraisal System at Dabur India Limited
o Pin point the problem behaviours and make sure the employee is
aware of it.
o These should be listing down of task undertaken during the last one
year and the result achieved.
18 | P a g e
Performance Appraisal System at Dabur India Limited
Annexure
Questionnaire
Personal Information
Q1. Name:
Q2. Designation:
Q3. Department:
Q6. Does the system help you in aligning your goals with those of the
organization?
19 | P a g e
Performance Appraisal System at Dabur India Limited
Q7. Are the issues like career planning and succession planning a part of
company's policy?
e. Almost always
Q9. Do you think your promotional policy is linked with the performance
appraisal system?
Bibliography
Flippo EdwinB., Personnel management, Edition sixth, Tata Mc Graw Hills, 1984,
p225-2302
Gupta, C.B., Human Resource Management, Edition Fifth (Reprint), Sultan Chand
and Sons, New Delhi 2001, p5.3-5.103
20 | P a g e
Performance Appraisal System at Dabur India Limited
Li-Yun Sun, Samuel Aryee, and Kenneth S. Law, 2007, High performance human
resource practices, citizenship behaviour, and organizational performance: A
relational perspective; Academy of Management Journal, Vol. 50, No. 3, p558–
577
Hunter, Larry W., Thatcher, Sherry M. B, 2007, Feeling the heat: effects of stress,
commitment, and job experience on job performance; Academy of Management
Journal, Aug2007, Vol. 50 Issue 4, p953-968
21 | P a g e