INTRODUCTION

Performance appraisal is a systematic evaluation of the individuals with regard to

his (or) her performance on the job and his potential for development. Performance
appraisal is the process of evaluating the performance and qualifications of the employees
in terms of the requirements of the job for which he is employed. For the purpose of
administration including placement, selection for promotion, providing financial rewards
and other actions which require differential treatment among the members of a group as
distinguished from actions affecting all members equally.

Appraisal should be future oriented activity that provides workers with useful
feedback and coaches them to higher levels of performance. Appraisal the performance of
individuals, groups and organizations is a common practice of all societies while in some
instances these appraisal processes are structured and formally sanctioned. In other
instances they are an informal and integral part of daily activities. Performance Appraisal is
the most powerful and least expensive for directing, managing and developing the
performance and potential of teams and individuals. Performance Appraisal is the
systematic description of an employee’s job relevant strengths and weaknesses.
Performance Appraisal is the method of evaluating the work allotted to the employee in the
work area. Performance Appraisal is a process of summarizing, assessing and developing
the work performance of an employ. The basic purpose is the find out how; well the
employee is performing the job and establish a plan of improvement. Performance
Appraisal can also provide data to determine promotion transfer and even demotions of the
employee. It has direct bearing an other personal decisions.

Performance Appraisal is a continuous process in every large scale organization. It may

involve goal setting, employee selection, placement and compensation, training and
development and carrier management. Performance Appraisal is creating a shared vision of
the purpose and aims of the organization, helping each individual employee to understand

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 and recognize their part in contributing to them there by managing and enhancing the
performance of both individuals and the organization.
A properly developed appraisal process can serve as contract between the team
numbers and the team. It informs people about what expected and how performance will be
appraised.

During the appraisal period, an effective appraisal tool and process can help
determine what the individual (or) team member must start doing, continue doing (or) stop
to be more effective. This serves and important development function that may suggest
training to improve the ability to perform. But suppose, an individual has the skills to do
the job but is still not performing. The issue is likely motivation (or) lack of motivation.
Since the elements of an effective motivation. Strategy includes feed back, goal setting,
team problem solving and incentives.

By using the techniques and apply the skills, individual and the team can
construct a meaningful appraisal tools and use a process that serves the purposes, you want
purposes like clarifying expected performance, focusing team work, reviewing progress
and developing performance and the team can use the tool for continuous improvement of
performance and development of potential to perform more complex tasks.
For ex. feed back given periodically help ensure that the team and individual know how he
(or) she is doing. Goals are set that specify what the team member (or) individual should be
doing. The team participates in problem solving barriers that impede productivity. Finally,
decisions about how to equitability allocate incentives are made contingent on a fair
appraisal of performance.

OBJECTIVES OF PERFORMANCE APPRAISAL:

Data relevant to performance assessment of employee are recorded, stored and

used for several purposes.
The main objectives of employee’s performance appraisal are:
1. To effect promotions based on performance and competence.

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2. To confirm the services of probationary employees, upon their completing the probationary
period satisfactorily.
3. To access the training and development need of the employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not
been fixed.
5. To let the employees become aware about their performance level and to assist them with
constructive criticism and guidance for the purpose of their development.
6. To improve communication, performance appraisal provides a format of dialog between
superiors and the subordinates, there by bringing an understanding or personal goals and
concerns.

IMPORTANCE OF PERFORMANCE APPRAISAL:

• Performance appraisal is the systematic description of an employee’s job relevant

strengths and weakness.
• The basic purpose is to find out how well the employee is performing the job and
establish a plan of improvement.
• Appraisal is arranged periodically according to a definite plan.
• Performance appraisal is not job evaluation. Performance appraisal refers to how
well; someone is doing the assigned job. Job evaluation determines how much a job
is worth, to the organization and therefore, what range of pay should be assigned to
the job.

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PERFORMANCE APPRAISAL PROCESS:

Establishing the Performance appraisal standards

Communicating the standards to employee

Measuring the actual performance

Comparing the actual performance with standard

performance

Discussing about appraisal

Taking corrective action

ESTABL
ISHING THE PERFORMANCE APPRAISAL STANDARDS:
The appraisal process begins with setting up of objective. To be used for
appraising the performance of employee. The criteria are specified with the help of job
analysis. The criteria should be clear objective and in written form.

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COMMUNICATING THE STANDARDS TO EMPLOYEE:

The standard set for performance appraisal should be communicated to all the
employees. That standard must be explained to all employees. When the standards are
known to the employee they will try to put their affords for to achieve objectives with out
communicating.

MEASURING THE ACTUAL PERFORMANCE:

Once, the performance standards are specified and accepted the next step is
evaluated the actual performance. The evaluation mainly depending upon some techniques
and methods and internal and external factors.

COMPARING THE ACTUAL PERFORMANCE WITH STANDARD

PERFORMANCE:

The actual performance compared with the pre determined performance

standards. When, the actual performance is exceed than standard performance the result is
positive. The actual performance is less than standard performance the result is negative.

DISCUSSING ABOUT APPRAISAL:

The results of the appraisals are communicated to the employees and discussed
with the employee about performance such decisions enable thee employee to know his
weaknesses and strengths.
TAKING CORRECTIVE ACTION:

Appraisal process will be useful only when corrective action is taken on the basis of
results. The corrective action may be the form of advice (or) warning. It may be in the form

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of additional training, refresher training, and management development programs,
coaching, etc,

CHARACTERISTICS OF PERFORMANCE APPERAISAL:

(1). RELIABILITY AND VALIDITY:

Appraisal system should provide consistent reliable and valid information and
data, which can be used to defend the organization even in large challenges.

(2). JOB RELATEDNESS:

The appraisal technique should measure the performance and information in job
related areas.

(3). STANDARDIZATION:
Appraisal forms, procedures, administration of techniques, rating, etc., should be
standardized as appraisal decisions affect all employees of the group.

(4). PRACTICAL VIABILITY:

The techniques should be practically viable to administrator, possible to
implement and economical regarding cost aspect.

(5). LEGAL SANCTION:

It should have compliance with the legal provisions concerned of the counter.

(6). TRAINING AND APPRAISERS:

Appraisal is important and some times difficult. It would be useful to provide
training to appraisers.

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(7). OPEN COMMUNICATION:
A good appraisal system provides the needed feedback on a continuing basis.

(8). EMPLOYEE ASSESS TO RESULTS:

The employees should receive adequate feedback on their performance. If
performance appraisal is meant for improving employee’s performance, then with holding
appraisal results would not serve any purpose

CONTENTS OF PERFORMANCE APPRAISAL:

Every organization has to decide upon the content to be appraised before the
programmer is approved. Content to be appraisal may be in the form of contribution to
organizational objectives. Like, production, cost saving, return of capital, etc., .

Other measures are based on

• Regularity of attendance.

• Self expression.

• Ability to work with others.

• Leadership styles and abilities.

• Initiative.

• Technical skills.

• Ability to insert.

• Originality and resourcefulness.

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• Creative skills.

• Area of insert.

• Area of suitability.

• Judgment skills.

• Honesty and sincerity.

• Organizational knowledge.

PURPOSE OF PERFORMANCE APPRAISAL:

In general these can be classified as either Administrative or developmental.

ADMINISTRATIVE:

From standpoint of administration, an appraisal program provides inputs that can be used
for entire range of HRM activities.
Performance Appraisal is also directly related to a member of other major HR functions:
Such as promotion, transfer and lay off decisions.
PURPOSE OF PERFORMANCE APPRAISAL AT ADMINISTRATION:

• Document personnel decisions

• Determine promotion candidates
• Determine transfers and assignment
• Identify poor performance
• Decide retention or termination

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• Decide on lay offs
• Validate selection criteria
• Meet legal requirements
• Evaluate training programs/progress
• Personnel planning
• Make reward / compensation decisions.

DEVELOPMENTAL PURPOSE

From the standpoint of development, appraisal provides the feedback essential for
discussing strengths weakness as well as improving performance. Regardless of the
employees level of performance, the appraisal process provides an opportunity to identify
issues for discussion, eliminate any potential problems, and set new goals for achieving
high performance.

PURPOSE OF PERFORMANCE APPRAISAL AT DEVELOPMENT:

• Provide performance feedback

• Identify individual strengths/ weaknesses
• Recognize individual performance
• Assist in goal identification
• Evaluate goal achievement
• Identify individual training needs
• Determine organizational training needs
• Reinforce authority structure
• Allow employees to discuss concerns
• Improve communication
• Provide a forum for leaders to help

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REASONS WHY APPRAISAL PROGRAMS FAILS SOMETIMES:

• Employee is not given clear objectives at the beginning of performance period.

• Manager may not be able to observe performance or have al the information.

• Performance standards may not be clear.

• Inconsistency in ratings among supervisors or other raters.

• Rating personality rather than performance.

• The halo effect, contrast effect, or some other perceptual bias.

• Inappropriate time span (either too short or too long).

• Overemphasis on uncharacteristic performance.

• Inflated ratings because managers do not want to deal with “bad news”

• Subjective or vague language in written appraisals.

• Organizational politics or personal relationships cloud judgments.

• No through discussion of causes of performance problems.

• Manager may not be trained at evaluation or giving feedback.

• No follow-up and coaching after the evaluation.

WHO SHOULD APPRAISE PERFORMANCE?

• Superior
• Peers
• Customers

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 • Subordinates
• Self
• Team members

MANAGER / SUPERIOR APPRAISAL

Performance Appraisal done by an employee’s manager and often reviewed by a

manager one level higher.
Manager and/or Superior appraisal has been the traditional approach to evaluating an
employee’s performance. In most instances supervisors are in the best position to perform
this function, although it may not always be possible for them to do so. Managers often
complain that they do not have the time to fully observe the performance of employees.
These managers must then rely on performance records to evaluate an employee’s
performance. If reliable and valid measures are not available, the appraisal May be less
than accurate.

SELF-APPRAISAL

Performance appraisal done by the employee being evaluated, generally on an

appraisal form completed by the employee prior to the performance interview.
Sometimes employees are asked to evaluate themselves on a self-appraisal form.
The self-appraisal is beneficial when managers seek to increase an employee’s involvement
in the review process. A self-appraisal system requires an employee to complete the
appraisal from prior to the performance interview. At a minimum, this gets the employee
thinking about his or her strengths and weaknesses and may lead to discussions about
barriers to effective performance. During the performance interview, the manager and the
employee discuss job performance and agree on a final appraisal.
Critics of self-appraisal argue that self-raters are more lenient than managers in their
assessments and tend to present themselves in a highly favorable light.

SUBORDINATE APPRAISAL

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 Performance appraisal of a superior by an employee, which is more appropriate
for developmental than for administrative purposes.
Subordinate appraisal has been used by both large organizations (such as Xerox
and Honeywell) and small organizations (such as Hyde Manufacturing and Alliance
funding) to give managers feedback on how their subordinates view them. Subordinates are
I in a good position to evaluate their managers since they are in frequent contact with their
superiors and occupy a unique position from which to observe many performance related
behaviors. Those performance dimensions judged most appropriate for subordinate
appraisals include leadership, oral communication, delegation of authority, coordination of
team efforts, and interest in subordinates.

PEER APPRAISAL

Performance appraisal done by one’s fellow employees, generally on forms that

are compiled into a single profile for use in the performance interview conducted by the
employee’s manager.
Individuals of equal rank who work together are increasingly asked to evaluate
each other. A peer appraisal provides information that differs to some degree from ratings
by a superior, since peers often see different dimensions of performance. Peers can readily
identity leadership and interpersonal skills along with other strengths and weakness of their
co-workers. A superior asked to rate a patrol officer on a dimension such as “dealing with
the public” may not have had much opportunity to observe it. Fellow officers on the other
hand, have the opportunity to observe their behavior regularly.
One advantage of peer appraisals is the belief that they furnish more accurate
and valid information than appraisals by superiors. The supervisor often sees employees
putting their best foot forward, while those who work with their fellow employees on a
regular basis may see a more realistic picture. With peer appraisals, co-workers complete
an evaluation on the employee.
Despite the evidence that peer appraisals are possibly the most accurate method of judging
employee behavior, there are reasons why they have not been used more frequently.

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The reasons commonly cited include the following:

1. Peer ratings are simply a popularity contest.

2. Managers are reluctant to give up control over the appraisal process.
3. Those receiving low ratings might retaliate against their peers’
4. Peers rely on stereotypes in ratings

TEAM APPRAISAL

Performance appraisal, based on TQM concepts, that recognizes team

accomplishment rather than individual performance.
An extension of the peer appraisal is the team appraisal. While peers are on equal standing
with one another, they may not work closely together. In a team setting, it may be nearly
impossible to separate out an individual’s contribution. Advocates of team appraisal argue
that, in such cases, individual appraisal can be dysfunctional since it detracts from the
critical issues of the team.
A company’s interest in team appraisals is frequently driven by its commitment to TQM
principles and practices. At its root, TQM is a control system that involves settings
standards (based on customer requirements), measuring performance against those
standards and identifying opportunities for continuous improvement.

CUSTOMER APPRAISAL

Performance appraisal, which, like team appraisal, is based on TQM concepts and
seeks evaluation from both internal and external customers. Also driven by TQM concerns,
an increasing number of organizations use internal and external customer appraisal as a
source of performance appraisal information. External customer’s evaluations, of course,
have been used for sometime to appraise restaurant personal.

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 Managers establish customer service measure (CSMs) and set goals for
employees (linked to company goals).Often the CSM goals are linked to employee pay
through incentive programs. Customer survey data are then incorporated into the
performance evaluation. By including CSMs in their performance reviews, managers hope
to produce more objective evaluations, more effective employees, more satisfied
customers, and better business performance.

PERFORMANCE MANAGEMENT AT COCA-COLA:

The Performance Management System assesses performance based on targets

set in sync with the Annual Business Plan. An extensive database housing the performance
of every manager in the country provides a ready tracking system for employee
performance.

The Performance Management System is linked to compensation,

development and career moves. Also in a super-charged work environment, the key to
success is delivery- incentive schemes that add significantly to the overall compensation
packages are a seasonal feature.

Summer Thunder is one such performance incentive, which rewards team performance and
is directly linked to delivery of business results. The competition is tough, the targets
challenging, but the adrenaline charge is definitely worth it! With lakes on the line and the
whole country competing one can feel the energy.
A program called Pegasus (The word ‘Pegasus’ is derived from the winged horse from
Greek mythology and symbolizes characteristics such as action-orientation, goal-driving,
speed and power) is a 4-day off-site program built over a series of outbound activities,
indoor games, classroom discussions and business group-work where the company’s key
contributors participate.

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THE PROGRAM HAS BEEN CONCEPTUALIZED TO PROVIDE:

• Recognition for the identified key performers in the company

• An opportunity to these key contributors to fraternize /bond and have fun

• A forum to focus on 2 or 3 organizational challenges leveraging the collective

knowledge, experience and expertise of the group to find solutions which are
“better - faster - cheaper”

• Personal recognition and first hand rapport with the Division President

• The business themes identified are in the nature of problems, issues, systems or
processes that may be posing challenges to the business. As part of the super-group,
employees should present recommendations to the Division President to resolve the
system or process challenge and develop a blue print for implementation. The team
with the best presentation is given an opportunity to present its findings and
recommendations to the entire Leadership council and relevant aspects are then
adopted for execution.

PERFORMANCE APPRAISAL

It accounts lot to the performance of the organization. The performance of

employees is measured on the basis of their work accomplishment and skill. Each and
every individual performance is observed. By the end of the year if the employees
performance does not meet the standards required for the work to be done appropriate
training is given to the employee in the field he is not doing good. During these training
programs all employees are not subjected to training programs at same time. Half the

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people are sent for training and others are sent afterwards so that work doesn’t get
hampered.

SUPERIOR-SUBORDINATE RELATIONSHIPS

This is one of the major aspects an organization must concentrate on. Without
employee healthy relations organization development cannot be possible. Coca-Cola
concentrates in peer relationships i.e. among superiors and subordinates.
Company organizes weekly meetings, individual meets with employees so that superior
and subordinates communicate well to improve their relations. Superiors are free to allow
employees suggestions and advices and if the advice really fit the situation to solve
problem superiors implement the advice for better results.

PPERFORMANCE APPERAISAL AT ATMAKURU UNIT:

PURPOSE OF PERFORMANCE APPRAISAL

• To provide employees and manager with an opportunity to discuss and establish

objectives and expectations, measure results and accomplishments and evaluate
overall performance.

• To communicate the importance of individuals and team contributions to the

department and the division’s business plan and objectives.

• To facilitate employee development.

• To provide an objective basis for compensation progression recommendation.

GUIDELINES FOR PERFORMANCE APPRAISAL:

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 • Key result area is a combination of WHAT AND HOW

• Identify 5 to 8 major components of your job, i.e. KRA and detail each of them.

• Identify a HOW for achieving a each WHAT by referring to the compensation

director for performance management.

• Identify the HOW based on critically for success of WHAT and development need
of the associate.

• Detail each HOW with key actions to be demonized/carried out by the associate.

• Ideally identify only one HOW for each WHAT

• Each of the objectives of a KRA and key actions of HOW must necessarily have ‘
defined tracking sources.’

• Employee performance development process includes 3 stages

• Performance planning—what and how

• Development plan
• Performance review (continuous feedback both formal and informal

PERFORMANCE PLANNING

What and how process includes the set up of

• Key result areas,

• Setting up of objectives

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 • Test the competence .skills and knowledge

THE PERFORMANCE APPRAISAL PROCESS:

KRA IDENTIFICATION

• KRA’s should number between 5 to 7

• A KRA should be within the scope of Ur job and be similar for similar jobs.

GOAL SETTING

• Set smart goals

• Arrive at performance standards for the set goals
• Discuss the ratings for the goals with the correspondent standards of performance.

MID-YEAR REVIEW

• Share your thoughts and feelings with your superior

• Use data to support your performance and mutual draw up the action plan for the
balance of the year.
• Identify training needs for the balance of the year.

FEEDBACK

• Be specific
• Keep accurate data

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 • Check expectations
• Look for missed opportunities
• Clarify expectations.

ANNUAL REVIEW

• Share your thoughts and feelings with your superior

• Use data to support your performance and mutual draw up the action plan for the
balance of the year.
• Identify areas for training and development and provide these for HR Once the
performance is reviewed the employees are given performance rating as bellow.

CE - Consistently Exceeds
ME - Meets and Exceeds
SM - Successfully Meets
MS - Meets Some
FM - Fails to Meet

After the rating is given to the employee performance based on this rating salary increment
is given to the employee.

Only when the employee is recommended for promotion by the department head the
employee is eligible for promotion along with salary increment based on his performance.

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 OBJECTIVES OF THE STUDY

Appraisal System of Coca-Cola. The Proposed study of the Performance

Appraisal System and practices followed in Hindustan Coca-Cola Beverage Private
Limited has various objectives such as..,

• To study the present appraisal systems followed in Coca-Cola.

• To identify any gaps, loopholes in the performance appraisal.
• To identify feasibilities of improving existing system of performance appraisal
system of Coca-Cola
• To give suggestions for improvement, if any, of existing Performance

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 SCOPE OF THE STUDY

Performance is the product of one’s attitude, skill and knowledge. Hence it

requires periodical evaluation with continuity and time. The proposed this study is
primarily concerned with the performance appraisal system, this enables employees to have
a sense of fulfillment and help in achieving the goals of the organizations by improving
their knowledge, skills and competency and provide opportunities for occupying higher
positions etc., and will also hope in assessing the effective utilization of manpower.

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 LIMITATIONS OF THE STUDY

• The first and foremost limitation of the study is the sample size.

• The study is restricted to. Hindustan Coca-Cola Beverages Private Limited

• Time had also been a major limitation as the period of project work in only three
months.

• The data given by the employee are based on the individual perception, so matter is
not reliable.

• The data collected from the questionnaire is limited.

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 NEED FOR THE STUDY:

The efficiency and effectiveness of performance depend to a great extent on how

human resources are viewed and treated in the organization.. If the organization believes
that the people do no work unless they are closely supervised and controlled, it may tend to
have a confidential report form instead of appraisal. If the organization believes that every
individual has potential and strengths and that human capabilities can be honed, developed
and utilized better by providing a healthy climate, then the organization would have
appraisal system that attempts to identify, hone, develop and utilize the potential
capabilities of employees.

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 REVIEW OF LITERATURE

MEANING:

Performance appraisal may be understood as the assessment of an

individual’s performance in a systematic way, the performance being measured against
such factors as job knowledge, quality of output, initiative, leadership abilities, potential
dependability, co-operative, judgment versatility and health.

Assessment should not be conformed to past performance alone. Potentials of

employees for future performance must also be assessed.

Performance appraisal or merit rating or performance evaluation is one of the

most important functions of personnel management that area of management deals with
human beings and their behavior. The need of performance appraisal also arises due to the
fact that every person has a different personality-situational, social and psychological.
Once the employees are hired, they are inducted trained and developed with the help of
various development programs.

DEFINITION:

Performance appraisal is a systematic judgment of the subordinate by the superior

authority to access the standard of work and overall performance.

Performance appraisal is a formal structured system of measuring and

evaluating an employee’s job related behaviors and outcomes to discover how and why

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employee is presently performing on the job and how the employee can perform more
effectively in the future so that employee, organization and society all benefit.

Performance appraisal may be understood as the assessment of an

individual’s performance in a systematic way, the performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership abilities,
supervisors, dependability, co-operation, judgment, versatility, health etc.

BENEFITS OF A SYSTEMATIC APPROACH TO PERFORMANCE APPRAISAL:

1. Help to establish the current level of performance in the job and seek ways of
improving it.
2. Helps to identify potential for the development and to aid manpower planning ‘Right
man for the right job at right time can be aimed’.
3. Helps to ink salary realistically to performance.
4. Helps to maintain good employee-employer relationship for promoting motivation,
communication and equality.
5. Helps in promoting group cohesiveness and establish fair relationship with in the work
groups.

METHODS OF APPRAISAL

Broadly all the approaches to appraisal can be classified in to following:

1. Past-oriented methods
2. Future oriented method.

1. PAST ORIENTED

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 • Rating Scale
• Check Lists
• Forced Choice Method
• Forced Distribution Method
• Critical Incident Method
• Behaviorally Anchored Scale
• Field Review Method
• Performance Tests And Observations
• Annual Confidential Report
• Essay Method
• Cost Accounting Approach
• Comparative Evaluation

2. FUTURE ORIENTED

• Management By Objectives
• 360 Degree Appraisal
• Psychological Appraisal
• Assessment Centers

PAST-ORIENTED METHODS:

RATING SCALE:

This is the simplest and most popular technique of appraising employee’s

performance. The typical rating scale system consists of several numerical scales, each
representing a job related performance criterion such as dependability, initiation, output,
attendance, attitude, co-operation and the like. Each scale ranges from excellent to poor.

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The rater checks the appropriate performance level on each criterion, and then computes
the employee’s to total numerical score. The number of points scored may be linked salary
increases, where by so many points equal a rise of some percentage. Rating scaled offers
the advantages of adaptability, relatively easy use and low cost.

The disadvantages of this method are several. The rater’s biases are likely to
influence evaluation, and the biases are particularly pronounced on subjective criteria such
as co-operation, attitude and initiative.

CHECK LIST METHOD

Under this method, a check list of statements on the traits of the employee and
his /her job is prepared in 2 columns-vise, a ‘Yes’ column and a ‘No’ column. All that the
rater should do is to tick the ‘Yes’ column if the answer to the statement is positive and in
the column ’No’ if the answer is negative.

FORCED CHOICE METHOD:

In this the rate is given a series of statements about an employee. These
statements are arranged in a block of two or more, and rather indicate, which statement is
more or least descriptive of the employee.

FORCED DISTRIBUTION METHOD:

The forced distribution method seeks to over come the problems by compelling
the rates on all points on the rating scale. The method operates under an assumption that
employee performance level conforms to a normal statistical distribution. Generally it is
assumed that the employee performance levels conform to a bell shaped curve.

CRITICAL INCIDENTS METHOD:

The critical incident method of employee assessment has generated a lot of

interest these days. The approach focuses on behavior of employees that makes all the

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 difference between effective and non-effective performance of job. Such incidences are
recorded by superiors as and when they occur.

BEHAVIOURALLY ANCHORED RATING SCALE (BAR):

Behaviorally anchored scales, sometimes called behavioral expectation scales, are

rating scales whose scale points are determined by statements of effective and in-effective
behaviors. They are said to be behaviorally anchored in that the scale represent a range of
descriptive statements of behavior varying from least to most effective. BAR has following
features:

1. Areas of performance to be evaluated are identified and defined by the people who will use
the scale.

2. The scales are anchored by descriptions of actual job behavior that, supervisors agree,
represent specific level of performance. The result is a set of rating scale in which both
dimensions and anchors are precisely defined.

3. All dimensions of performance to be evaluated are based on observable behaviors and are
relevant to the job being evaluated since BARS are tailor-made for the job.

4. Since the raters who will actually scale are actively involved in the development process,
they are more likely to be committed to final product.

FIELD REVIEW METHOD:

This is an appraisal by someone outside the access’s own department, usually

someone from the corporate office or the HR department. The outsider reviews employee

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records and holds interviews with the rate and his or her superior. The method is primarily
used for making promotional decision at the managerial level; field reviews are also useful
when comparable information is needed from employees in different units or locations.

PERFORMANCE TEST AND OBSERVATIONS:

With a limited number of jobs, employee assessment may be based upon a test of
knowledge or skills. The test may be of the paper and pencil variety or an actual
demonstration of skills. The test must be reliable and validated to be useful.

COFIDENTIAL RECORDS:

Confidential records are maintained only in government departments, though its

application in the industry is not ruled out. The system is highly secretive and confidential.
Feedback to the assesses was given only incase of an adverse entry.

ESSAY METHOD:
In the essay method, the rater must describe the employee within a number of board
categories such as
• The rater’s overall impression of the employee’s performance,
• The promo ability of the employee,
• The jobs that the employee is now able or qualified to perform,
• The strengths and weakness of employee
• The training and the development assistance required by the employee. Although
this method is being used independently, it is most frequently found is combination
with others. It is extremely useful for filling information gaps about the employees
that often occur in the best structured checklist method.

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 This is the traditional method in which appraises the rate in an open-ended
manner and uses a free-form in his own words and puts down his impressions about the
employee.
They take note about these factors:
a) Job knowledge and potentials.
b) Employee’s characteristics and attitude.
c) General organization and planning attitude.
d) Production or quantity, quality and cost control.
e) Physical conditions.
f) Development needs of future.

COST ACCOUNTING METHOD:

This method evaluates performance from the monitory returns the employee
yields to his or her organization. A relationship established between the cost included in
keeping the employees and the benefits the organization derives from him or her.
Performance of the employee is then evaluated based on the established relationship
between the cost and the benefits.

COMPARITIVE EVALUATION APPROACHS:

This method evaluates performance from the monetary returns the employee
yields to his or her organization. A relationship is established between the cost included in
keeping the employee and the benefit the organization derives from his or her. Performance
of the employee is then evaluated based on the established relationship between the cost
and the benefit.

FUTURE ORIENTED APPRAISAL:

The commonly used future oriented technique is MBO, psychological appraisal

&assessment centers.

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MANAGEMENT BY OBJECTIVES:

Management by objectives is a technique used by managers in some organizations

to motivate employees to perform well by using the goal-setting technique.

OBJECTIVES OF MBO:

1). to identify the problems and opportunities in the business.

2). to convert identified opportunities in to clear goals.
3). to set up a system to convert these goals into achievements.
4). to set a standard of performance.
5). to raise a standard of performance
6). to set a new target where the existing ones have proved unrealistic.
.
PSYCHOLOGICAL APPRAISAL:

Large organizations employ full time industrial psychologist, when psychologists

are used for evaluations; they assess an individual’s future potential and not performance.
The appraisal normally consists of in depth interviews, psychological tests, discussions
with supervisors and a review of other evaluations. The psychologist may be for a specific
job opening for which the person is being considered, or it may be a global assessment of
his or her future potential.

ASSESSMENT CENTER:

Mainly used for executive hiring, assessment centers are now beginning used for
evaluating executive or supervisory potential. An Assessment centers are a central location
where managers may come together to have their participation in job-related exercises

31
evaluated by trained observers. The principal idea is to evaluate managers over a period of
time, say one to three days, by observing(and later evaluating) their behavior across a series
of select exercises or work samples.

360-DEGREE FEEDBACK:

The performance evaluation technique by multiple raters is called 360-degree

appraisal. The 360-degree technique is understood as systematic collection of performance
data on an individual or group, derived from a number of stakeholders- the stakeholders
being the immediate supervisors, team members, customers, peers, and self. In fact, anyone
who has useful information on ‘how an employee does the job’ may be one of the
appraisers.
The 360-degree appraisal provides a broader perspective about an
employee’s performance. In addition, the technique facilitates greater self-development of
the employees.

32
 RESEARCH METHODOLOGY

Research Methodology is a systematic and objective process of identifying and

formulating the problem by setting objective and methods and the methods for collecting,
editing, tabulating, evaluating, analyzing, interpreting and presenting data in order to find
justified solution.

RESEARCH DESIGN
A Research Design is a purely and simply the framework or plan for a study that
guides the collection and analysis of data. It is a blue print that is followed in completing a
study.
The research design undertaken by the researcher is descriptive research design. The
methodology involved in this design is mostly qualitative in nature. Descriptive research design
is concerned with the research studies with a focus on the portrayal of the characteristics of a
group or individual or a situation. The main objective of such studies is to acquire knowledge.
Similarly, such studies are used to examine the characteristics of the corporate sector or
consumer behavior etc., the descriptive study is typically concerned with determining
frequency with which something occurs or how two variables vary together.

SOURCES OF DATA COLLECTION

Data refers to the information or facts. Often researchers understand by data only numerical
figures. It also includes descriptive facts, non-numerical information, qualitative and qualitative
information. The source of data can be from primary and secondary.

33
PRIMARY DATA

Primary data are those data, which are collected as fresh and for the just time and
thus happen to be original primary data for this study was collected by preparing a well-
structured questionnaire.

SECONDARY DATA

Secondary data are those data, which are collected from the already existing
information through reference. The secondary data collected by analyzing various materials
like Company profiles, Magazines, Journals, Past records and reports and Websites, etc.,

The Sample constituted of 60 employees from different department of the organization.

Method of Sampling
There are many sample methods to collect data. The sampling method used is simple
random sampling.

Sample Size:

The Sample constituted of 60 workers from different department of the organizations.

Survey Design:
The survey is based on the primary source of data. Three methods of primary
data were selected to conduct the study i.e., Questionnaire, Observation and Personal
Interviews methods. Since the statements in the Questionnaire and Schedule were
qualitative, they are quantified on a five-point Scale using Linker type technique.
Respondents are asked to tick mark the appropriate scope on a five-point continuum.

34
STATISTICAL TOOLS FOR THE STUDY
Sample Analysis by Percentage (%) Method
% refers to a special kind of ratio. % is used in making comparison between two
or more serried of data, % are used to describe relationship. It can be used to compare the
relative terms, the distribution of two or more series of data.

Chi – Square Method:

The χ 2 tests is one of the simplest and most widely used in statistical work.
The χ 2 test was first used by Karl Pearson in the year 1890, it is defined as

USES:

1. With χ 2 tests we can find out whether two or more attributes are associated or
not.

2. Test of homogeneity are designed to determine whether two or more independent

random samples are drawn from the same population of different populations

35
 INDUSTRY PROFILE

HISTORY OF SOFT DRINKS

The manufacturing company of soft drinks began in 1830’s. How ever the
evolution of soft drinks took place over a long period. The four numbers of soft drinks
began more then 2000years ago .When Hippocrates the father of medicine. First suspected
that mineral water could be beneficial to our well being. But Hippocrates didn’t envision
drinking the deferments mineral water bobbing from the earth crust. In scatted the
GREEKS and ROMANS used them for bathing and relaxation.

More than 1000years pared before mineral water made the transition from the
theraperative bath to refreshing beverage. Many legends and myths developed about the
my seditious water. be lived to be course for any thing from are thirsts to induction .The
claims attracted physician and scientists eventually proclaimed the air being released as gas
carbolic simple carbon dioxide soon after wards they protected may of producing artificial
carbonated water is the carbonator with that development. it was only a water of time
before soft drinks made it in hands of the public. By the 1930’s both artificial and natural
mineral water were considered healthy and refreshing products. But pharmacists believing
they could improve up on their corrective properties experiments. With a multitude of

36
ingredient form birch back to landslips. And which no miracles were developed so May
interesting flavor and taster were discovered. Ginger ale, root bear, sarsaparilla, lemon and
strawberry were among the more popular of the early flavor. The soft drinks industries
were a seasonal business in the early days. Operating primarily during the summer months
sales were limited by few outlets for the new carbonated beverages and by the consumer’s
mobility for many years’ pharmacists were the driving force behind the refinement of soft
drinks and many of the flavors and consideration. Their association which chemistry in
many forces in the mind in 1800’s. It was customary to gather around the new sad fountain
and enjoy ours favorite refreshment mixed on the spot.

Gradually decreased grew for soft drinks to be coarsened in the home. Bottling
the product proved different at first since pressure from the cobondioxide forced corks right
art of the bottler clearly it soft drinks were ever to be soled for consumption beyond the
corner pharmacy. There would have to be a way to develop a solution. Patenting some
1500 different corks caps and lids for soft drinks. Then in 1892 the crown craps was
invented Tiny is design the crown completely the revolutionized the soft drinks industry by
preventing the escape of cobondioxide from bottled beverage intact it was the soft drinks
closure for more then. More then 70 years. Soon the crown craps business was begin to
divide many pharmacists realizing the promising feature of soft drinks. Then 70 years soon
crown craps business was being felt. As home consumption of soft drinks grew demand at
the corner drug begin to dwindle.
Many pharmacists relating the promoting future of soft drinks a bounded their
trade to become full time bottler. Realizing the promoting future of soft drinks in stoner
Horse drawn wagon traveled the streets loaded with brand name soft drinks and named for
growing for retail outlets. While the crown craps helped load the may to soft drinks in the
home it was not until the 1920’s that the trend took hold the invention of “home-packs” the
first six packs cartoon made it more convenient to carry promotes back to the home. There
are resulted in the increased and the growing popularity of soft drinks.

The appearance of the automobile heralded new era for the soft drinks industry.
Road sides stands appeared across the country, service station become major reflects for

37
bottle refreshments and large delivery trucks where better able to satisfy the country taste
for liquid refreshment. Automatic vending machines began to appear in the 1920’sonce
again hanging the business of soft drinks to traditional reflects. New technology helped soft
drinks bottler neat growing consumer demand by significantly increasing the product
availability. Traditional 6 ounce “split” better grew to 8 ounce and then larger and large
container. The crush rooming demand for product resulted in the growth of soft drinks
industry from the planning in to a National Invention of soft drinks spread their products
cross by opening a few strategically placed bottling facilities through franchise agreement.
Eventually it become clear that supplying a growing theirs for soft drinks would require
more then a few additional bottling plant. But until the 1990’s the industry was primarily
one of manual operations. Glass bottler were blown individually while fixing ,sealing,
mixing and packaging were almost totally manual operations expatiations could not occur
with out more machinazined process. That changed between 1910. New automated and
productive. That number of plants bottling soft drinks increased form 1377 to 1916 as sales
carried. Responding to customer demand the industry rolled out soft drinks in cases are
introduced diet beverages to the market carriers were developed for convenience and care
in taking soft drinks force the store at a home. The development of new flavors the sale of
carried products in vending machines and the invention of Poly EthyleneTerephalate (PET)
bottler followed.

HISTORY OF COKE:

In May, 1886, Coca Cola was invented by Doctor John Pemberton, a pharmacist
from Atlanta, Georgia. John Pemberton concocted the Coca Cola formula in a three legged
brass kettle in his backyard. The name was a suggestion given by John Pemberton’s
bookkeeper Frank Robinson.

Being a bookkeeper, Frank Robinson also had excellent penmanship. It was he

who first scripted “Coca Cola” into the flowing letters which has become the famous logo
of the day.

38
 The soft drink was first sold to the public at the soda fountain in Jacob’s
Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink were sold each
day. Sales for that first year added up to a total of about $50. The funny thing was that it
cost John Pemberton over $70 in expanses, and so the first year of sales were a loss.

By the late 1890s, Coca-Cola was one of America’s most popular fountain
drinks. With another Atlanta pharmacist, As a Griggs Candler, at the helm, the Coca-Cola
Company increased syrup sales by over 4000% between 1890 and 1900. Advertising was
an important factor in Pemberton and Candler’s success and by the turn of the century, the
drink was sold across the United States and Canada. Around the same time, the company
began selling syrup to independent bottling companies licensed to sell the drink. Even
today, the US soft drink industry is organized on this principle. Until the 1960s, both small
town and big city dwellers enjoyed carbonated beverages at the local soda fountain or ice
cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting
place for people of all ages. Often combined with lunch counters, the soda fountain
declined in popularity as commercial ice cream, bottled soft drinks, and fast food
restaurants came to the fore front.
On April 23, 1985, the trade secret “New Coke” formula was released. Today,
products of the Coca Cola Company are consumed at the rate of more than one billion
drinks per day.

BACK GROUND:

Non alcoholic soft drink beverage market can be divided in to first drinks and
soft drinks. Soft drinks can be further divide in to carbonated and non – carbonated drinks
cola, lemon, and oranges under non – carbonated while mango drinks come under non –
carbonated category. The soft drinks market till 1990’s was in the hands of Economy and
coming of MNC’s like Pepsi and coke the market has come totally under their control.
While world wide coke in the leader in the carbonated drinks market in India . Pepsi which
season over reentered (after they were throw set in 1977 by the central government) in
1993.Pepsi has been targeting it’s product towards youth and it has struck right chorded

39
with market and the sales have been doing well by sticking to this youth based wagon.
Coke on the other hand struggled identically mutually in establishing itself in the market in
a span of seven years of its operation in the country. It has changed its C.E.O four times but
finally then seems to have starting the pulse of Indian consumer. As on May 2003 Coke in
the market leader with the market share at 60% self drinks is available in glass bottler
aluminum cans and PET bottler for home consumption function also disperse then “in
disposable container”.

SEGMENTATION:-

The soft drinks market can be segmented on the basis of place of consumption
or on the basis of type of product. The segmentation on the basis of place of consumption
divider to the market in two parts. Once premise 80%of the consumption of soft drinks is
on primes i.e., restaurants, railway stations consumption, cinema e.t.c.

• At home in the rest 20% as the market comprises of the soft drink purchased for
consumption at home.
• The market can also be segmented on the basis of types of products are non – Coca
– cola products.
• Cola products accurate for nearly 61 – 62% of the total drinks market, the brands
that full in his category are Pepsi, Coca–Cola, Tums-up, diet Coke, diet Pepsi e.t.c.
• Non Cola segment which constitutes 36% can be divided in to categories based on
the type of flavors available manually.
• ü Orange
• ü Clouded lime
• ü Clear lime
• ü Mango

40
CONSUMER HABITS AND PRACTICES:-

Soft drinks come under the category of product purchased in impulse. Through
the market is named by brand loyalty the purchase division it self is a low involvement
decision.. This attitude of impulse buying is slowly changing to led buying and also to
some extent to consumption through home refrigeration particularly in urban areas.

• The market is slowly moving low non – alcoholic carbonated drinks to fruit based
drinks and also to places bottled water due to lower price and reduces to
availability.

• Consumer purchase soft drinks primarily to quench thirst. People traveling and not
having access to cryogenic water reach net for soft drinks. This accounts for a large
part of the sales.
• Braced accrues plays a critical role in purchasing decisions.
• Availability in the chilled from affects the purchase decision. Their has made both
the main consumer of this market which age of 30 mid bellow.
• Product differentiation is May low as all the products taste the same. But loyalty is
high in the care of kids and people in the age group of 20 to 30 years..
• Consumer are sensitive to the out lay were the purchase of beverages commenced
hence market is
• Due to the high cost of soft drinks a lot consumer prefers beverages like tea, coffee,
or other drinks like sherbet..
• Purcapita assumption is India is lowest in the worlds at 8 better per compared to go
better in Thailand and 800 better in U.S.A.
• Delhi market has highest purcapita consumption in the country with 50 bottles per
annum compared to 5 bottles for the country.
• While 75% of the PET bottle consumption is in urban areas the 200ml bottler are

41
 higher in urban areas.
• According to NCAER survey 91% of the total consumption of soft drinks in the
country is done by lower, middle and upper clam people.

MARKET CHARACTERSTICKS: -

The soft drink market is highly skewed in term of place of consumption in in

term of regional distribution and soft drink flavors as well as in term of stock keeping unit
(SKU). While 80% of consumption in impulse land out side home 20%comes from
consumption at home
The market performance is highly regional based while Cola drinks have
arrange flavored drinks are popular in southern states. So are sold largely in southern states
besides sales through bars, western markets have performed towards mango flavor drinks.
Diet coke presently consist just 0.7% of the total carbonated beverage market. It terms of
(SKU)’s the market is skewed towards 200ml which consists around 80-85% pack size. But
a sale of bigger SKU’s like more than 1liter pack size has increased. This has led to
increase in contribution from PET bottler sales up to 75%are in urban areas.
Skewers is in the form of the time of the year when the consumption taken
place most of the sales of soft drinks take place during the summer while just 5 to 6 of total
sales took place in winter. In summer the high season lost for 70 – 75, which contributor
more than 50%of the total yearly sales. Another premolar feature of the markets in that of
positioning and targeting of various brands, while cola brands of Coke is target at teenagers
and is positioned as refreshments for mind and body. Its Thums-up brands is targeting at
people in age group of 12-29years positioned as a thing for adventure giving. Bashful and a
nachos person. Fantail is targeted at customer in preteen age group positioned as fun thing.
Sprite is targeted towards teenagers positioned to convince them to follow their instincts
and net all for false pretence. Maaza is positioned as a finally drink while diet coke is
targeted towards teenagers positioned to convince them to follow their instincts and not to
fall for false pretence. Coke is targeted towards health and figure conscious people
especially teenage girls Pepsi’s cola product is targeted towards youth while the Miranda
and 7up positioned to fun platform and enjoying light movement of life.

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MAJOR PLAYER AND MARKET SHARES:-

The Soft Drinks Market In India Is Dominated By The Global Major Pepsi And
Coca-Cola. According To Released by IMBR in the month of JAN-FEB 2003. The
combined market share of all CSD beverages under Pepsi, marinade, orange and lemon and
all Pepsi co beverages have led over coca-cola brands in terms of markets share in the
period. However when contracted by business line coca-cola is official spokes person
designed with there flyovers.

According to ORG –MARG which tracks market figure for coca-cola brands
put together stands at 58%while declining to provide individual market share of brands
under the company portfolio, coca-cola Indians official spoken person said “we don’t agree
with the figure given by Pepsi PepsiCo. It our turnover of last year was almost doubles
theirs. How can their market share be higher the market share. The starting are obviously
questionable Pepsi official spokes person verified that among cola’s which company close
to70% of the approximately 270million cases CSD markets. Brand Pepsi’s market share
stands at 51% the combined market share of coca – cola and Thums-up stand 49%
according to IMPB. In the carbonated orange segment high account for roughly 15% of the
over all CSD market, the market share for Miranda orange has been estimated at 53%by
IMPB. The market share of coca-cola’s, fanta based in estimated at 47%.In cloudy lemon
segment which accents for roughly 10% of the CSD market coca-cola’s limca brand leads
Pepsi, mirrinda, lemon by huge margin limca has a 75% size in the segment while mirrinda
with 25% .

43
 COMPANY PROFILE

Coca-Cola Company is a world’s leading manufacturer, marketer and distributor

of non alcoholic beverage concentrate and syrups, with world headquarters in Atlanta,
Georgia. Syrups, concentrates, and beverage bases for the Coca-Cola, the company’s
flagship brand, and over 230 other soft drink brands are manufactured and sold by the
Coca-Cola Company and its subsidiaries in nearly 200countries around the world. By the
contract with Coca-Cola Company or its local subsidiaries, local businesses are authorized
to bottle and sell company soft drinks within certain territorial boundaries. The Coca-Cola
company stock, with ticker symbol KO, is listed and traded in the United States on the New
York Stock Exchange.
COCA-COLA INTO INDIA

After the exit of the Coca-Cola in 1977 from India, Parle has established its reign
over the Indian soil and had been flourishing since, in leaps and bounce. Ramesh Chou Han
and Prakash Chou Han were steering the Phenomenon brands like Thums-up, Limca, Citra,
Gold Spot etc., Soft drink industry was reined by these wizards for a period of two decades.
In the 1990’s came the era of changes, LPG opened up the gates for the biggies to
flood with the competencies. Coca-Cola re-entered India in the year 1993, yet another time.
Prior to the entry to Coca-Cola, Pepsi was doing a cats business and has been eating the
biggest pie of the cake every now and them. It had already established its base and had a

44
firm hold in the market, things were a big mess for the Coca-Cola, and it had to start all the
way again from the word go, its sail was the toughest and had to bend its back like
Beckham does when he is in the midst of the practice.

Three years after the return to India, the real thing was not happening and was
not proving to be choice of new generation. It was being forced to share the shelf space and
fridge space equally with its arch-rival. As far as mind space is concerned it was the Pepsi
way all the way. The fizz has gone, in a word flat. Coca-Cola has also got the basis of the
bottling strategy tooted as its global competitive advantage has some proof of its vast
competencies. But here all was wrong with supply chain failing to deliver C.E.O No.1,
Jayadey Raja and Richard Nicholas has failed to deliver.

Then enter, Donald Short a 45 year old Coke lifer, air lifted from his assignment
in Japan to take Coke back where it believes, it belongs to ahead of Pepsi Co. His mandates
“re-establish Coca-Cola on the marketing landscape”. Strategy, operations and partner
management not people. Processes or even profits. Short had gone into minute of selling
and created a template called “the five steps of selling process”.

During his tint in Japan, came to India with the tag line – “do the right thing”
and a vision that encompassed two objectives adaptability and a comprehension of the
needs of the constituents in the Coca-Cola system. Coca-Cola has also integrated its
bottling operations:40 of the companies and 54 bottlers have either signed up a joint
venture partnership or sold out. To finance these acquisitions, the setting up of four
regional anchor-bottlers and aggressive marketing thrust Coca-Cola has planned its Atlanta
plant to invest $550 millions.

INDUSTRY CHANGE:

The soft drink industry is affected by macro environment factors of the industry
that will lead to change. First, the entry/exit of major films is a trend in the industry that

45
will likely lead to change. More specifically, merger and consolidation has been prevalent
in the soft drinks market, causing some firms to exit the industry and then re-enter
themselves. Several leading companies have been looking to drive revenue growth and
improve market share through the increased economies of scale found through mergers and
acquisitions. One specific example is how PepsiCo acquired Quaker Oats, who bought
Gatorade which will help expand PepsiCo’s energy drink sector (Data monitor, 2005). This
trend has increased competition as firms’ diversification of products is increasing. A
second trend in the macro environment is globalization. With the growing use of the
internet and other electronic technologies, global communication is rapidly increasing. This
is allowing firms to collaborate within the country market and expand into world markets.
It has driven competition greatly as companies strive to be first-movers. Specifically, the
global soft drink market’s compound annual growth rate (CAGR) is expected to expand to
3.6% from 2004-2009 (Data monitor, 2005);
Third, changing societal concerns, attitudes, and lifestyles are important trends.
In the United States and Europe, people are becoming more concerned with a healthy
lifestyle.

“Consumer awareness of health problems arising from obesity and inactive

lifestyles represent a serious risk to the carbonated drinks sector” (Data monitor, 2005, p,
15). The trend is causing the industry’s business environment to change, as firms are
differentiating their products in order to increase sales in a stagnant market. Thus, the long-
term industry growth rate, the fourth trend, shows low growth in recent years. Since 2000,
the CAGR is 1.5% (Data monitor, 2005). The low growth rates are of concern for soft
drink companies, and several are creating new strategies to combat the low rates.
This leads to the fifth trend of growing buyer preferences for differentiated
products. Because soft drinks have been around since as early as 1798 (American Beverage
Association, 2006), buyers want innovation with the products they buy. In today’s
globalizing society, being plain is not good enough. According to Barbara Murray (2006c).
“The key for all of these beverage companies is differentiation. The giants have new
formulations and appearances. Whatever the strategy, be I a new color, flavor, or formula,
companies will strive to create the greatest brand awareness in the minds of the consumer

46
in the hopes of crowding out its competitors. “Thus, the last trend, product innovation, is
necessary to combat buyers need for a variety of tastes. Firms are already differentiating by
taste, with the Coca-Cola Company as an example. The firm’s product line includes regular
Coca-Cola, Diet Coke, Diet Cherry Coke, Vanilla Coke, Coca-Cola with Lime, and Coca-
Cola with lemon and many more (Murray, 2006a).

FIVE COMPETITIVE FORCES FOR COCA-COLA COMPANY:

The soft drink industry is very competitive for all corporations involved, with
the greatest competition being that from rival sellers within the industry. All soft drink
companies have to think about the pressures that from rival sellers within the industry, new
entrants to the industry, substitutes products, suppliers, and buyers.

The competitive pressure from rival sellers is the greatest competition that Coca-
Cola faces in the soft drink industry. Coca-cola, Pepsi Co., and Cadbury Schweppes are the
largest competitors in this industry, and they are all globally established which creates a
great amount of competition. Though Coca-Cola owns four of the top five soft drink brands
(Coca-Cola, Diet Coke, Fanta and Sprite), it had lower sales in 2005 than did Pepsi
Co(Murray, 2006c). However, Coca-Cola has higher sales in the global market than
PepsiCo. In 2004, PepsiCo dominated North America with sales of $22 billion, whereas
Coca-Cola only had about $6.6 billion, with more of their sales coming from overseas, as
shown in Table 4 and Table 5. PepsiCo is the main competitor for Coca-Cola and these two
brands have been in a power struggle for years (Murray, 2006c).

Brand name loyalty is another competitive pressure. The Brand Keys’ Customer
Loyalty Leaders Survey (2004) shows the brands with the greatest customer loyalty in all
industries. Diet Pepsi ranked 17th and Diet Coke ranked 36th as having the most loyal
customers to their brands. Refer to List 15 for the brand loyalty rankings of the various

47
competitors. The new competition between rival sellers is to create new varieties of the soft
drinks, such as vanilla and cherry, in order to keep increasing sales and enticing new
customers (Murray, 2006c).

New entrants are not a strong competitive pressure for the soft drink industry.
Coca-Cola and Pepsi Co dominate the industry with their strong brank name and great
distribution channels. In addition, the soft-drink industry is fully saturated and growth is
small. This makes it very difficult for new, unknown entrants to start competing against the
existing firms. Another barrier to entry is the high fixed costs for warehouses, trucks, and
labor and economies of scale. New entrants cannot compete in price without economies of
scale. These high capital requirements and market saturation make it extremely difficult for
companies to enter the soft drink industry; therefore new entrants are not a strong
competitive force (Murray, 2006c).

Substitute products are those competitors that are not in the soft drink industry.
Such substitutes for Coca-Cola product are bottled water, sports drinks, coffee, and tea.
Bottled water and sports drinks are increasingly popular with the trend to be a more health
conscious consumer. There are progressively more varieties in the water and sports drinks
that appeal to different customers’ tastes, but also appear healthier than soft drinks. In
addition, coffee and tea are competitive substitutes because they provide caffeine. The
consumers who purchase a lot of soft drinks may substitute coffee if they want to keep the
caffeine and lose the sugar and carbonation. Specially blend coffees are also becoming
more popular with the increasing number of Starbucks stores that offer many different
flavors to appeal to all consumer markets. It is very cheap for consumers to switch to these
substitutes making the threat of substitute products very strong (Data monitor, 2005).

Suppliers for the soft drink industry do not hold much competitive pressure.
Suppliers to Coca-Cola are bottling equipment manufacturers and secondary packaging
suppliers. Although Coca-Cola does not do any bottling, the company owns about 36% of
Coca-Cola Enterprises which is the largest Coke bottler in the world (Murray 2006a). Since
Coca-Cola owns the majority of the bottler, that particular supplier does not hold much

48
bargaining power. In terms of equipment manufacturers, the suppliers are generally
providing the same products. The number of equipment suppliers is not in short supply, so
it is fairly easy for a company to switch suppliers. This takes away much of suppliers’
bargaining power.

The buyers of the Coca-Cola and other soft drinks are mainly large grocers,
discount stores, and restraints. The soft drink companies distribute the beverages to these
stores, for resale to the consumer. The bargaining power of the buyers is very evident and
strong. Large grocers and discount stores buy large volumes of the soft drinks, allowing
them to buy at lower prices. Restraints have less bargaining power because they do not
order a large volume. However, with the number of people are drinking less soft drinks, the
bargaining power of buyers could start increasing due to decreasing buyer demand
(Murray, 2006a).

Porter’s Five Forces Model identifies the five forces of competition fro any
company. The recognition of the strength of these forces helps to see where Coca-Cola
stands in the industry. Of the five forces, rivalry within the soft drink industry, especially
from PepsiCo, is the greatest source of competition for Coca-Cola.

PRODUCT PROFILE

COCA-COLA:

Coca-Cola created in Atlanta, Georgia by Dr.John Smyth Pemberton, was

registered as a trademark in 1887 and by 1895 Coca- Cola was being sold in every state
and territory in the United States. In 1899, the Company began franchising bottling
operations in the United States. Today, Coca-Cola is in virtually every part of the world.
The Company has nearly 400 beverages in its portfolio.

LIMCA:

49
 It’s light and Lemony. This thirst-quenching beverage features a fresh, light
lemon-lime taste and fun-loving attitude. It’s a home-grown, national treasure in India,
where it was acquired by the Coca-Cola Company in 1993. Limca continues to build a
loyal following among young adults who love the lighthearted way it complements the best
moments of their lives. Grab a Limca and go.

FANTA:

A favorite in Europe since the 1940’s, Fanta was acquired by the Coca-Cola
Company in 1960. Fanta Orange is the flavor, contributing to about 70% of sales, but other
citrus and fruit flavors have their own solid fan base. Fanta sells best in Brazil, Germany,
Spain, Japan, Italy and Argentina. Fanta distribution was increased in the U.S. in 2001 with
the return of four flavors: Orange, Strawberry, Pineapple and Grape. Orange, the biggest
seller, is now available in most of the countries.

THUMS UP:

It’s a Strong Cola Taste, Exciting Personality.

Thums Up is a leading carbonated soft drink and most trusted brand in India.
Originally introduced in 1977, Thums Up was acquired by the Coca-Cola Company in
1993. Thums Up is known for its strong, fizzy taste and its confident, mature and uniquely
masculine attitude. Thums-up goes with the catchy tag line

Thums up I Want My Thunder.

SPRITE:

50
 It’s a Clear, Crisp, Refreshing soft drink, introduced in 1960; Sprite is the world’s
leading lemon-lime flavored soft drink. Sprite is sold in more than 190 countries and ranks
as the No.4 soft drink worldwide, with a strong appeal to young people. Millions of people
enjoy Sprite because of its Crisp, clean taste that really quenches thirst. Sprite encourages
us to be true to who you are and to obey your thirst.

MAAZA:

“Yaari-Dosti Taaza Maaza”

With the real fruit taste kids love, plus added calcium, Maaza’s tagline, “ Yaari-
Dosti Taaza Maaza “ means in Hindi “ Friendship moments with fresh Maaza “. Maaza
was introduced in India in 1984 as a no carbonated mango fruit drink. It was acquired by
the Coca-Cola Company in 1993 and is currently available in three flavors: Mango,
Pineapple, Orange ——plus added calcium.

KINLEY:

Introduced in India in August 2000, Kinley is purified bottled water. In a country

where many people are concerned about reliable drinking water, Kinley delivers a product
that is safe and suitable for consumers and their families. Within ten months of its launch,
Kinley had emerged as India’s number two packaged water and is currently the number
three Coca-Cola product in India. Especially popular among adults who seek a better
quality of life and a healthier lifestyle, Kinley is available in a range of packaging including
500ml, 1 liter, and 2 liter PET bottles, and 5 liter, 15 liter, 20 liter and 25 liter bulk jars for
in- home consumption.

PROFILE OF ATMAKUR UNIT

51
 Atmakuru unit is located amidst the green pastures of Atmakuru Village. The
ambience, hospitality, professionalism & excellence are in tune with the corporate
requirements.

ATMAKUR UNIT AT A GLANCE:

Total Area 40 Acres

Built up Area 6 Acres

Green Belt Area 36Acres

Construction Phase I completed 1999

Phase 1 Installed Capacity 36000 cases/day

Construction Phase 2Completed February 2003

Phase 2 Installed Capacity 72,000 Cases/day

Brands Produced Coca-Cola, Thums up, Sprite, Limca,

Fanta, Kinley Soda

Sales Territory Krishna, Guntur, Prakasam

Leading Brands 1.Thums up 2.Sprite

52
Population under this unit 12 Million (Guntur, Krishna, Prakasm)

No. of outlets 40000 outlets (Approx)

Policies:

Unit Policy: The Company has made it a policy to perpetually update its quality,
productivity, sales, customer satisfaction and environmental friendliness to become a role
model. To achieve this end, Atmakuru unit implements quality systems.

Environment Policy: Atmakuru Unit carries out operations in ways that preserve, protect
and enhance the environment in which the employees work.

FACILITY LOCATION:
• Abundant water resources.
• Tax free zone.
• Availability of site for starting up the plant.
• National Highway 5(NH-5) connecting Vizag, Kolkatta and Chennai.
• Availability of casual labor.
Ever since coke embarked on a new journey in Vijayawada, reaching new
unattained heights has been its persistent endeavor. Erstwhile two operations Guntur and
Vijayawada, after being acquired by coke were merged into a single operation. This
consolidation process started in 1998 and the new merger encountered many challenges
successfully through. A green field project was initiated to meet the KO standards as the
two old parent plants were sub-standard in terms of KO standards. Production commenced
from March 1999. With in the record time of two months it started meeting the complete
market requirements of two territories by May 1999.Since then there was no looking back
as it had become a force to reckon with. Unit strives hard to make improvements as and
when required, to become a forefront runner with its competitors.
Now, we have a single 600 Bottles per Minute line purchased from KHS, Germany. The
utility equipment is sized for two lines and is procured from renowned suppliers. .

53
KEY SUCCESS FACTERS
Key Factors for Competitive Success within the soft drink Industry branch from
the Trends of the macro environment. Primarily, constant product innovation is imperative.
A company must be able to recognize the consumer wants and needs, while maintaining
the ability to adjust with the changing market. They must keep up with the changing trends
(Murray, 2006c). Another key factor is the size of the organization, especially in terms of
market share. Large distributors have the ability to negotiate with stadiums, universities
and school systems, making them the exclusive supplier for a special period of time.
Additionally, they have the ability to commit to mass purchase that significantly lower their
costs. They must implement effective distribution channels to remain competitive. Taste of
the product is also a key factor for success. Furthermore, established brand loyalty is a
large aspect of the soft drink industry. Many consumers of the carbonated beverages are
extremely dedicated to a particular product, and rarely purchase other varieties. This
stresses the importance of developing and maintaining a superior brand image.

Price, however, is also a key factor because consumers without a strong brand
preference will select the product with the most competitive price. Finally, global
expansion is a vital factor in the success of a company within the soft drink industry. The
United States has reached relative market saturation, requiring movement into the global
industry to maintain growth (Data monitor, 2005).

54
 Finance:

Finance Manager

Finance Manager – Working Capital Team Leader 1 – OME & MIS Team Leader 1 - Accounts

Team Leader – Taxation

Executive 2 - Finance Executive 3 - Finance

55
Executive 1 - Finance
 HR:

Factory Manager

HR – Team Leader 1

Executive 1 - HR HR – Team Leader 1 Welfare Officer

56
 Sales:

GSM

ASM 1 – ASM 1 – Guntur City ASM 1 - ROG

Vijayawada ASM 1 - ROK
& Prakasam

57
 TABLE 4.1

TABLE SHOWINGTHE COMPANY HAVING PERFORMANCE APPRAISAL

SYSTEM

ATTRIBUTES NO OF % OF
RESPONDENTS RESPONDENTS
YES 48 80
NO 12 20
TOTAL 60 100

INFERENCE: From the above table, 80% of respondent felt that company should have a
performance appraisal system and 20% felt that no need of performance appraisal system.

GRAPH

58
 20%

Yes
No

80%

TABLE 4.2

THE TABLE SHOWING THAT EMPLOYEES SATISFACTION AND

DISSATISFACTION LEVEL OF PERFORMANCE APPRAISAL

ATTRIBUTES NO OF % OF
RESPONDENTS RESPONDENTS
SATISFIED 32 53
DISSATISFIED 28 47
CANNOT 0 0
TOTAL 60 100

INFERENCE: The above table shows that, most of the people satisfied with current
performance appraisal system53% and 47% people dissatisfied.

GRAPH

59
 60
53
50 47

40

30

20

10
0
0
S A T IS F A C T IO N D IS S A T IS F A C T IO N CA NNO T

% O F RE S P O NDE NTS

TABLE 4.3

THE TABLE SHOWING THAT WHO IS APPRAISE EMPLOYEE PERFORMANCE

ATTRIBUTES NO OF %OF
RESPONDENTS RESPNDENTS
SUPERVISOR 32 53
SUBORDINATES 28 47
OTHERS 0 0
TOTAL 60 100

INFERENCE: From the above table shows that 53% of the people agree that superiors and
47% with subordinates and 0% with others.
GRAPH

60
 60
53
50 47

40

30

20

10
0
0
S U P E R IO R SS U B O R D IN A T E S O TH E R S

% O F RE S P O NDE NTS

TABLE 4.4

TABLE SHOWING THE BENEFIT OF PERFORMANCE APPRAISAL SYSTEM

ATTRIBUTES NO OF %OF
RESPONDENTS RESPONDENTS
GROWTH 24 40
REWARDS 0 0
MOTIVATION 28 47
MISTAKES ARE 8 13
CORRECTED
TOTAL 60 100

INFERENCE: The above table shows that, 47% of the employees feel that motivation is
the only benefit of performance appraisal and 40% of employees feel growth and 13% with
mistakes.

GRAPH

61
 13%
Growth
40%
Rewards
Motivation
47% Mistake
0%

CHI SQUARE TEST

TABLE 4.4

To test the hypothesis what is the main benefit of performance appraisal system in
Hindustan coca-cola beverages private LTD

Responses GROW REWAR MOTIVATI MISTAKES ARE

TH DS ON CORRECTED

No. of 24 0 28 8

workers

Ho: not benefit of performance appraisal system in Hindustan coca-cola private ltd

62
 Observed Expected
(Oi – Ei)2 / Ei
Frequency Frequencies (Oi – Ei) (Oi – Ei)
2

(Oi) (Ei)

24 15 9 81 5.4
0 15 -15 225 15
28 15 13 169 11.27
8 15 -7 49 3.27
Ei = 60/ 4

= 15

Calculated value of χ 2 = 34.94

Degrees of freedom = n-1

= 4-1

=3

The value of χ 2
at 5level of significance at 3 degrees of freedom is 7.82

The calculated value of χ 2 is greater than the table value.

It is significant. Hence we reject the null Hypothesis Ho

63
Conclusion:

There fore, we conclude that there is no significance is the main benefit of

performance appraisal system in Hindustan coca-cola beverages private LTD

TABLE 4.5

THE TABLE SHOWING THATPROMOTIONS ARE GIVEN BASED ON

PERFORMANCE

ATTRIBUTES NO OF % OOF
RESPONDENTS RESPONDENTS
YES 32 53
NO 28 64 47
TOTAL 60 100
INFERENCE: From the above table shows that 53% of respondents are agreed with
promotions made on performance and remaining 47% is not needed

GRAPH

47% Yes
53% No

TABLE 4.6

TABLE SHOWING THE PURPOSE OF PERFORMANCE APPRAISAL

ATTRIBUTES NO OF %OF
RESPONDENTS RESPONDENTS
ORGANIZATIONAL 24 40
PERSONAL 16 27
T&D 16 27
REWARDS 4 6
TOTAL 60 100

65
INFERENCE: From the above table shows that, 40% respondents says that performance
appraisal means to improve organizational effectiveness where as 27% of the respondents
says that performance appraisal is to improve personal effectiveness and recommended for
training and development needs and 6% says help in pay adjustments/rewards.

GRAPH

6%
Organizational
27% 40%
Personal
T&D
Rewards
27%

TABLE 4.7

TABLE SHOWING OBJECTIVE OF PERFORMANCE APPRAISAL SYSTEM

ATTRIBUTES NO OF %OF
RESPONDENTS RESPONDENTS
NEEDS 24 40
ROTATION 16 27
PROMOTIONA; 20 33
PUNISHMENT 0 0
TOTAL 60 100

INFERENCE: The above table shows that, majority of respondents i.e.; 40% feels
objective of performance appraisal system is to identify the training needs and 33% of

66
respondents says to determine promotional opportunity and 27% says that the objectives is
to be effect job rotation.

GRAPH

45 40
40
33
35
30 27
25
20
15
10
5 0
0
AL
N

NT
S

O
D

E
TI
E

IO

HM
NE

TA

OT

IS
RO

N
O

PU
PR

% OF RESPONDENTS

TABLE 4.8

ETABLE SHOWING PERFORMANCE APPRAISAL TO CHANGE THE BEHAVIOR

OF EMPLOYEE

ATTRIBUTES NO OF %OF
RESPONDENTS RESPONDENTS
YES 48 80
NO 12 20
TOTAL 60 100

INFERENCE: From the above table shows that, 80% of respondents said that current
appraisal system is Yes.20% of respondents said no.

67
 GRAPH

20%

Yes
No

80%

TABLE 4.9
TABLE SHOWING THAT APPRAISAL SYSTEM USEFUL TO IDENTIFYING
EMPLOYEE ABILITIES

ATTRIBUTES NO OF %OF
RESPONDENTS RESPONDENTS
YES 36 60
NO 24 40
TOTAL 60 100

INFERENCE: From the above table shows that, 60% of the respondents said yes because
the company is providing constructive feedback to the employees. By this employees can
identify their abilities. And 40% of employees are said no.

68
 40%
Yes
No
60%

TABLE 4.10

TABLE SHOWING WHAT BASIS COCA COLA EVALUATING PERFORMANCE

APPRAISAL

ATTRIBUTES NO OF %OF
RESPONDENTS RESPONDENTS
BASED ON 28 47
WORK
BASED ON 32 53
QUALITY OF
WORK
TOTAL 60 100

INFERENCE: From the above table shows that, 53% respondents feels based on work,
47% respondents feels based on quality of work.

GRAPH

69
 47% Yes
53% No

TABLE 4.11

TABLE SHOWING WHAT EMPLOYEE THINKS NEED WHILE WORKING

ATTREBUTES NO OF %OF
RESPONDENTS RESPONDENTS
CLOSE 24 40
ALONE 36 60
TOTAL 60 100

INFERENCE: From the above table shows that, 60% of respondents prefer to work alone
to do work while 40% respondents requires close supervision while doing work.

GRAPH

70
 40%
Close
Alone
60%

TABLE 4.12

TABLE SHOWING COMPANY SHOULD CONDUCTED APPRAISAL IN PRACTICE

ATTREBUTES NO OF %OF
RESPONDENTS RESPONDENTS
3MONTHS 0 0
6MONTHS 4 7
12MONTHS 56 93
TOTAL 60 100

INFERENCE: From the above table shows that, 93% of the respondents feel that the
appraisal should be conducted for every 12 months and 7% of the respondents feel that it
should be conducted for every 6months.

GRAPH

71
 93
10 0
90
80
70
60
50
40
30
0 7
20
10
0
3 M O N TH S 6MO NTHS 1 2M ON TH S

% OF R E S P O N D E N TS

TABLE 4.13

TABLE SHOWING EMPLOYEE FEELING ABOUT PRESENT JOB

ATTREBUTES NO OF % OF
RESPONDENTS RESPONDENTS
HOBBY 4 7
INTERESTING 12 20
SATISFIED 44 73
TOTAL 60 100

INFERENCE: From the above table shows that, 73% of employees are satisfied with their
present job and 20% feel that there job is interesting and rest of the employees feel their job
as hobby.

GRAPH

72
 7%
20% Hobby
Interesting
Sat isfied
73%

TABLE 4.14

TABLE SHOWING EMPLOYEES RECEIVE ANY INCREMENT-REWARDS BASED

ON APPRAISAL

ATTRIBUTES NO OF %OF
RESPONDENTS RESPONDENTS
YES 48 80
NO 12 20
TOTAL 60 100

INFERENCE: From the above table shows that, 80% of employees are said yes 20% said
that no.
GRAPH

73
 20%

Yes
No

80%

TABLE 4.15

TABLE SHOWING THAT HOW TO APPRECIATE THE CURRENT APPRAISAL

SYSTEM

ATTREBUTES NO OF % OF
RESPONDENTS RESPONDENTS
BETTER 20 33
BETTERWAY 0 0
CLEAR 12 20
SATISFACTION 28 47
TOTAL 60 100
.
INFERENCE: From the above table shows that, 47% of respondents appreciate the
current appraisal system by increasing job satisfaction. Where as 20% of respondents
appreciate it provides a clear communication of employees expectation.

GRAPH

74
 33% Better
47% Better way
Clear
0% Satisfaction
20%

FINDINGS

• It is found that employees are satisfied with the organizations performance

appraisal system.
• Observed that employees in the organization receive correct information about their
work to perform well.
• Observed that complaints of employees are handled immediately up to maximum
extent.
• The study reveals that the training programs are conducted on the basis of
performance appraisal.
• Monetary rewards and responsibilities are the most motivating factor for the
employees in the organization.
• Observed that employees are satisfies with motivational techniques followed by the
organization.
• Observed that employees here work with team spirit and helpful to each other.
• From the study it is clear that management inform to their employees about the
change, which are planned.

75
• Observed that creative new ideas are been invited and given preference. Also the
performance appraisal system is helpful in generating new ideas.
• It is found that employees in the organization definitely get an opportunity to
develop their skills.
• Observed that healthy relationships among employees are been maintained in the
organization.

76
 SUGGESTIONS

• The employees feel that even after the appraisal growth to the higher-grade
employees is not taken into consideration.
• Some employees feel that practical discussions should be their in order to make the
appraisal process more effective.
• The company should quickly respond to the complaints and problems of employees
to improve its relationships and provide confidence among employees.

• More training programs should be conducted to produce trained associates for

better performance.
• For motivating programs, a balance should be maintained between financial
incentives and non-financial incentives.
• Arranging individual meetings, cultural programs frequently may lead employees to
communicate well within themselves that helps them to work as a team spirit.
• The main problem faced by employees is that they sometimes get bored with their
routine work. It is recommended to make them busy with creative and challenging
work.
• In official meetings or formal meetings superiors should give employees chance to
express their views, ideas and suggestions for better performance.

77
 CONCLUSION

The performance appraisal in HCCB is to be done for determining the promotion,

identifying areas of non performance and for improving the performance of an employee.
The system is effective and the appraisal system is satisfied by most of the employees.

There is no training session is conducted in HCCB employees want to that before the
evaluating process. And they also want performance appraisal should be done quarterly.
The management has to inform and well communicate to the employees regarding various
factors which are used for their performance evaluation .And feedback has to be given to
the employee regarding their performance.

The superiors has to be identify employees non performance areas regularly Then they
have the chance to improve their skills and knowledge.

The superiors has to be identify employees non performance areas regularly Then they
have the chance to improve their skills and knowledge.

78
 QUESTIONNAIRE

1. Whether the company should have a performance appraisal system?

a. Yes
b. No
2. Are you satisfied with current performance appraisal system?
a. Satisfied
b. Dissatisfied
c. Can not
3. According to you who should appraise employee performance?
a. Supervisor
b. Subordinates
c. Others
4. What is the main benefit of performance appraisal system?
a. Growth
b. Rewards
c. Motivation
d. Mistakes are corrected
5. Do you feel that promotions are given based on performance?
a. Yes
b. No
6. According to you, what is the purpose of performance appraisal?
a. To improve organizational effectiveness.
b. To improve personal effectiveness.
c. Recommended for training and development needs.
d. Helps in pay adjustments/rewards.
7. What is the objective of performance appraisal system?
a. To identify training needs.
b. To effect job rotation.
c. To determine promotional opportunity.
d. To evolve reward and punishment system.

79
8. Whether performance appraisal will change the behavior of the employee?
a. Yes
b. No
9. Is performance appraisal system useful in identifying your abilities?

a. Yes
b. No

10. on what basis Coca-Cola evaluating performance appraisal?

a. Based on work
b. Based on quality of work
11. What do you think you need while working?
a. Require close supervisor
b. Prefer to work alone
12. How often appraisal should be conducted in practice?
a. 3 months
b. 6 months
c. 12 months

13. How do you feel about present job?

a. My job is like a hobby to me.
b. My job is interesting to me
c. I am satisfied with my present job

14. Have you receive any increment / rewards based on appraisal?

a. Yes
b. No
15. How do you appreciate the current appraisal system?
a. Opportunities to perform better
b. Task setting will induce people in better way
c. It provides a clear communication of employee’s expectation.
d. It increases job satisfaction

80
 BIOBLOGRAPHY

References:

Human Research Management - Aswathappa

Organizational Behavior - Subba Rao

Website:

www.coc-cola.com

www.historyofbeverages.com

www.googlesearch.com

www.oligopolywatch.com

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82