A PROJECT REPORT

ON
PERFORMANCE APPRAISAL OF EMPLOYEES
IN
DABUR INDIA Ltd., NOIDA

SUBMITTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENT FOR THE DEGREE
OF
MASTERS OF BUSINESS ADMINISTRATION
(BATCH : 2020-2022)

RD ENGINEERING COLLEGE,DUHAI
Affiliated to AKTU,LUCKNOW(UP)

SUBMITTED TO: SUBMITTED BY:

MR.SARTHAK TYAGI AASHI
(HOD) MBA ( I SEM)

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 DECLARATION

A hereby declare that the Project report on “Performance Appraisal Of Employees” in

DABUR India Ltd., Noida, submitted in partial fulfillment of the requirement for the
degree of Masters of Business Administration to RD ENGINEERING COLLEGE, DUHAI,
Affiliated to AKTU LUCKNOW(UP), is my original work and not submitted for the award of
any other degree, diploma, fellowship, or any other similar title or prizes.

Place __________
Date: __________
AASHI
MBA ( I SEM)

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 PREFACE
In every organization it is essential in all there affort or any business activity or any other
kind of activity. Despite of studying theortical knowledge in hr management in class rooms
is much more realistic and materialistic through it is paired with practical research .

Practical training or knowledge is helpful to understand the interdependence of theory and

practical on each other. Teaching gives an insight into theortical aspects of management,
but implementation of theory gives practical knowledge of management field.

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 ACKNOWLEDGEMENT

With the completion of my project entitled “PERFORMANCE APPRAISAL

OF EMPLOYEES”,  DABUR INDIA Ltd., Noida. I would like to extend my
sincere gratitude and a word of thanks to the Mr. SARTHAK TYAGI
inspired me to think beyond and to always look for better solutions.

I am thankful to all the Department Staff members for rendering their

support directly or indirectly. I would also like to put my thanks on
record to the teaching and non-teaching staff of Masters of Business
Administration & faculty members for rendering their support directly
or indirectly.

I would like to put my thanks on record to the HR

Executive/Manager Mr. Sanjay Bhasin who guided me about the
“PERFORMANCE APPRAISAL OF EMPLOYEES” in DABUR INDIA Ltd.,
NOIDA, in his/her Company and helped me in showing how the work
process is being carried out there.

I would also like to thank all my friends who have helped me make this
project. Last but not the least; I would like to thank my parents for
always being my inspiration.

AASHI

MBA (I SEM)
4
 CERTIFICATE OF FACULTY GUIDE

This is to certify that Ms. AASHI of MBA, batch 2020-2022 of RD ENGINEERING

COLLEGE,DUHAI has completed mini Project Report on PERFORMANCE APPRAISAL

OF EMPLOYEES in DABUR INDIA LTD. NOIDA is approved and is acceptable in

quality and form.

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 INDEX

SR.NO TOPIC PAGE NO.

1. EXECUTIVE SUMMARY 8

2. INTRODUCTION 9

3. PROBLEM OF THE STUDY 20

4. OBJECTIVE 22

5. RESEARCH METODOLOGY 24

6. ORGANIZATION PROFILE 27

7. PERFORMANCE APPRAISAL SYSTEM

IN DABUR INDIA LIMITED 42

8. ANALYSIS 46

9. CONCLUSIONS 70

10. RECOMMENDATION 72

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11. BIBLOGRAPHY 75

12. ANNEXURE 77

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 EXECUTIVE SUMMARY
EXECUTIVE SUMMARY

This project will accomplish to understand how the people interact with technology say products
and if they are ready for doing all the trading through net. The project also helps in
understanding the trend of the scripts of the particular sector in different market condition.

To maintain and cope up with the growing competition from the various online trading
providers, DABUR India Ltd. needs to find potential clients, also the new investors and satisfy
there needs.

The broad objective of the project is to equipped the trainees with all the quality which is
essential to face any circumstances which can arise while providing

8
All these steps help me to understand how to cope up with different types of people and there
diversified need and satisfaction level.

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 INTRODUCTION

The history of performance appraisal is quite brief.

Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies.
But this is not very helpful, for the same may be said about almost everything in the field of
modern human resources management.

As a distinct and formal management procedure used in the evaluation of work performance,
appraisal really dates from the time of the Second World War -not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make judgments about those one
is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal.
In the absence of a carefully structured system of appraisal, people will tend to judge the work
performance of others, including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational, ethical and legal problems in
the workplace. Without a structured appraisal system, there is little chance of ensuring that the
judgments made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was
justified.

The process was firmly linked to material outcomes. If an employee's performance was found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was better
than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt
that a cut in pay, or a rise, should provide the only required impetus for an employee to either
improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more often
than not, it failed.

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For example, early motivational researchers were aware that different people with roughly equal
work abilities could be paid the same amount of money and yet have quite different levels of
motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but they
were not the only element that had an impact on employee performance. It was found that other
issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the
1950s in the United States, the potential usefulness of appraisal as tool for motivation and
development was gradually recognized. The general model of performance appraisal, as it is
known today, began from that time.

Modern Appraisal

Performance appraisal may be defined as a structured formal interaction between a subordinate

and supervisor, that usually takes the form of a periodic interview (annual or in which the work
performance of the subordinate is examined and discussed, with a view to identifying
weaknesses and strengths as well as opportunities for improvement and skills development.

In many organizations -but not all -appraisal results are used, either directly or indirectly, to help
determine reward outcomes. That is, the appraisal results are used to identify the better
performing employees who should get the majority of available merit pay increases, bonuses
and promotions.

By the same token, appraisal results are used to identify the poorer performers who may require
some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.
(Organizations need to be aware of laws in their country that might restrict their capacity to
dismiss employees or decrease pay.)

Whether this is an appropriate use of performance appraisal -the assignment and justification of
rewards and penalties -is a very uncertain and contentious matter.

Controversy

Few issues in management stir up more controversy than performance appraisal.

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There are many reputable sources -researchers, management commentators, psychometricians -
who have expressed doubts about the validity and reliability of the performance appraisal
process. Some have even suggested that the process is so inherently flawed that it may be
impossible to perfect it (see Derven, 1990, for example). At the other extreme, there are many
strong advocates of performance appraisal. Some view it as potentially "... the most crucial
aspect of organizational life" (Lawrie, 1990).

Between these two extremes lie various schools of belief. While all endorse the use of
performance appraisal, there are many different opinions on how and when to apply it,

There are those, for instance, who believe that performance appraisal has many important
employee development uses, but scorn any attempt to link the process to reward outcomes -
such as pay rises and promotions. This group believes that the linkage to reward outcomes
reduces or eliminates the developmental value of appraisals. Rather than an opportunity for
constructive review and encouragement, the reward- linked process is perceived as judgmental,
punitive and harrowing. For example, how many people would gladly admit their work
problems if, at the same time, they knew that their next pay rise or a much-wanted promotion
was riding on an appraisal result? Very likely, in that situation, many people would deny or
downplay their weaknesses.

Nor is the desire to distort or deny the truth confined to the person being appraised. Many
appraisers feel uncomfortable with the combined role of judge and executioner.

Such reluctance is not difficult to understand. Appraisers often know their appraises well, and
are typically in a direct subordinate-supervisor relationship. They work together on a daily
basis and may, at times, mix socially. Suggesting that a subordinate needs to brush up on
certain work skills is one thing; giving an appraisal result that has the direct effect of negating
a promotion is another.

The result can be resentment and serious morale damage, leading to workplace disruption,
soured relationships and productivity declines.

On the other hand, there is a strong rival argument which claims that performance appraisal
must unequivocally be linked to reward outcomes. The advocates of this approach say that

12
organizations must have a process by which rewards -which are not an unlimited resource -may
be openly and fairly distributed to those most deserving on the basis of merit, effort and results.

There is a critical need for remunerative justice in organizations. Performance appraisal -

whatever its practical flaws -is the only process available to help achieve fair, decent and
consistent reward outcomes. It has also been claimed that appraisees themselves are inclined to
believe that appraisal results should be linked directly to reward outcomes -and are suspicious
and disappointed when told this is not the case. Rather than feeling relieved; appraises may
suspect that they are not being told the whole truth, or that the appraisal process is a sham and
waste of time.

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 organisation effectiveness.

Performance system is fundamentally, a feed back process, which require sustained commitment.
The cost of failure to provide such feedback may result in a loss of key professional employees,
the continued poor performance of employees who are not meeting performance standards and a
loss of commitment by employees, in sum, the myth that the employee know what. they are
doing without adequate feedback from management can be an expensive fantasy.

THE APPRAISAL PROCESS

1. Establishing Performance Standard

2. Communicate Performance expectations to employees

3. Measure actual performance

4. Compare actual performance with standards

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5. Discussion with the employees and identification development programs to bridge
the gap.
6. Initiate action

THE PURPOSE OF APPRAISING PERFORMANCE

In general the appraisal systems serve a two fold purpose

1. To improve the work performance of employees by helping them realize and use their
full potential in carrying out their firms mission.

2. To provide information to employees and managers for use in making , work related
decisions.

More specifically appraisals serve the following purposes.

a) Appraisals provide feedback to employees and help the. "' management identify the areas
where development efforts are "' needed to bridge the gaps thereby serving as vehicles
for personal " and career development.

b) It helps management spot individuals who have specific skills so that their
promotions/transfer are in line with organizational requirements.

c) Appraisal serve as a key input for administering a formal organisation reward and
punishment system.

d) The performance system can be used as a criterion against which selection devices and
development programs are validated.

REQUIREMENT OF THE PERFORMANCE MANAGEMENT SYSTEM.

● RELIABILITY: The foremost requirement of a sound system is reliability. In this

contact it refers to consistency of judgment. For any given employee, appraisals made
by raters working independently of one another should agree closely. But raters with
different perspective (e.g. supervisors, peers, subordinates) may see the same

14
 individual’s job performance very differently. To provide reliable data, each rater must
have an adequate opportunity to observe what the employee has done and the condition
under which he or she has done it. By making appraisal system relevant, sensitive and
reliable we assume the resulting judgments are valid as well.

● ACCEPTABILITY: In practice, acceptability is the most important requirement of all,

for it is true that human resources program must have the support of. those who will use
them. Unfortunately, many organisations do not put much effort into garnering the front
end support and participation of those who will use the appraisal system. Ultimately it is
management's responsibility to define as clearly as possible the type and level of job
behavior desired of employees.

It is important to enlist the active support and cooperation of subordinates by making explicit
what aspects of job performance they will be evaluated on.

● PRACTICALITY: This implies that appraisal instruments are easy for managers and

employees to understand and to use.

For years, personnel specialists have searched for the 'Perfect; appraisal method as if it were
some kind of miraculous cure for many pitfalls that plague organisations. Such a method does
not exist. In tomorrow’s world of work far more emphasis needs to be placed on process
issues. Factors such as timing and frequency are no less important. In sum performance
appraisal is a dialogue involving people and data. Both technical and human issues are
involved. Neither can be overemphasized at the expense of the other.

WHO SHOULD EVALUATE PERFORMANCE?

The most fundamental requirement for any rater is that he or she has an adequate opportunity to

15
observe the rates job performance over a reasonable period of time. This suggests several
possible raters.

● THE IMMEDIATE SUPERVISOR: 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. Further more, 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: Appraisal by subordinates can be useful input to the immediate

development. Subordinates know first hand the extent to which the supervisor actually
delegates, how well he communicates, the type of leadership he has and the extent to
which he or she plans and orgasms.

● SELF APPRAISAL: 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.

APPROACHES TO PERFORMANCE MANAGEMENT

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 ● THE TRADITIONAL APPROACH: THE ONE DIMENSIONAL MODEL

In this model job expectations are defined in terms of what results have to be achieved. This
model doesn't have a long term focus and can't be used for employee development and career
path planning.

A satisfactory performance implies doing a job effectively and efficiently, with a

minimum degree of employee -created disruptions. Employees are performing well when they
are productive. Yet productivity itself implies both concern for effectiveness and efficiency.
Effectiveness refers to goal accomplishment. Efficiency evaluates the ratio of inputs consumed
to outputs achieved. The greater the output for a given input, the more efficient the employees.
Similarly, if output is a given, consumed to get that output results in greater efficiency.

There are basically three purposes to which performance appraisal can be put. 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. Second, these appraisals can be
used for identifying areas where development efforts are needed. Management needs to spot
those individuals who have specific skill or knowledge deficiencies. The performance appraisal
is a major tool for identifying these deficiencies. Finally, the performance appraisal can be used
as a criterion against which selection devices and development programs are validated.

17
PROBLEM OF THE STUDY

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 PROBLEM OF THE STUDY

Historically, performance appraisal was linked to material outcomes with the assumption that a
cut in pay, or a rise, should provide the required impetus for an employee to either improve or
continue to perform well. ...a structured appraisal system is more likely to be  lawful, fair,
defensible, valid and reliable performance appraisal a structured and formal interaction between
a subordinate and his/her supervisor

Over the past six year the performance appraisal the turnover of ‘DABUR INDIA Ltd. has been
declining.

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OBJECTIVE

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 OBJECTIVE & SCOPE

This project aims at studying the system of performance appraisal and its effectiveness in
an organisation. Performance appraisal is the most significant and indispensable tool for
the management as it provide useful information for decision making in area of
promotion and compensation reviews.

Thus broad objectives of the study includes:

● To know the present system of performance appraisal

● To know the extent of effectiveness of the appraisal system

● To identify and know the area for improvement system

SCOPE OF THE STUDY

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.

DATA COLLECTION

The study covered a sample of 100 employee belonging to supervisory level and above.

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RESEARCH METHODOLOGY

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 METHODOLOGY OF THE PROJECT

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 details of the methodology adopted are presented below:

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

In all 25 questionnaire were given to employees falling in the category of supervisors

and above. Out of which 25 could be collected back duly completed. The researcher
individually contacted the employees to get response on the questionnaire.

Data entry and analysis

It has been an uphill task to enter the enormous data received through the questionnaire
which consisted nearly 20 questions. Response to the descriptive questions though very
few but was valuable for the purpose of study. Hence these were further structured in
time with the system adopted for compilation and data analysis.

Limitations

Many employees gave guarded answers to some crucial questions.

Some of them did not fill the questionnaire due to lack of time
Response could not be collected from the total sample selected.
23
Some of the questionnaire could not be completed due to reasons other than time factor.
The confidentiality of the system created some problem in getting information.

24
ORGANIZATIONAL PROFILE

25
 ORGANISATION PROFILE
.

History

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. Barman, 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.

What is that life worth which cannot bring comfort to others", these words of Dr. S K Burman
have inspired generations of DABUR. Keeping " these golden words in mind, SANDESH or the
Sustainable Development Society was set up to carry out welfare activities aimed at improving
the customer relations.

A quality of life of the rural people in its area of operation. This society is given complete
financial and managerial support by DABUR INDIA LIMITED.

PRODUCTS AND SERVICES

A vast array of products touching the lives of almost every individual, from an infant to a grand
old man, from poor to rich; that's how the DABUR'S range of health personal care and food
products could be best explained. Today DABUR trust has traveled beyond the boundaries of
India and is available in more than 50 countries worldwide. These value for money products
have made DABUR a household name Healthcare is one of the biggest and oldest divisions of
DABUR with a wide range of OTC healthcare products. It comprises of:

Ayurvedic Health Tonics

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● CHYAWANPRASH

Digestives

● HAJMOLA TABLETS

● HAJMOLA CANDY

● PUDIN HARA

● HINGOLI

Childcare Products

● DABUR LAL TAIL

● DABUR JANMA GHUTTI

Women Care Products

● EFARELLE COMFORT

Hair & Skin Care

● DABUR AMLA HAIR OIL

● DABUR SPECIAL HAIR OIL

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 .

● VATIKA

● The company has recently launched Vatika Anti -Dandruff Shampoo having herbal
ingredients to fight the problem of Dandruff

● GULABARI

Oral Care

● DABUR LAL DANT MANJAN

● BINACA TOOTHBRUSHES

DABUR HONEY

ASAV ARISHTAS

CHUMAS

RAS RASAYANS

MEDICATED OILS

The oils boiled alongwith certain prescribed drugs are known as medicated oils. These oils retain
the curative properties of herbs and is used for inunction and massage. Launched over two years
back, the DABUR Foods range include juices under the brand name Real and cooking pastes
under the brand name Hommade. To give a better focus this division has been carved out as a
subsidiary company of DABUR INDIA LIMITED SUBSIDIARIE.

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DABUR FOODS LIMITED

Dabur Foods Limited, a 100% subsidiary of DABUR INDIA LIMITED, is spearheading

Dabur's foray into food processing industry. The company, set up in April 1999, is marketing a
range of fruit juices under the brand name Real, Homemade Cooking Paste and Sauces and
Lemoneez lemon juice.

DABUR was the first company in India to introduce fruit juices in packaged form without any
artificial additive. Real is today the market leader in this category with more than 50% market
share. Homemade cooking paste is the only national brand in this category. Lemoneez is the only
product in its category available in unique drop and trickle pack and Unique Pharmaceuticals

BRANDED PHARMACEUTICALS

It includes a range of natural ethical products like New Livfit, Honitus, Ulgel etc. and a range of
contrast media and gynecological.

ONCOLOGY

This wide and formidable range includes brands such as Intaxel, Docetaxel and Topotecan, all
of which were manufactured for the first time in India by Dabur. Little wonder then, that
DABUR is the undisputed market leader in this category in India and has plans to establish itself
as a generic oncology player in select global markets.

BULK DRUGS AND CHEMICALS

This range consists primarily of bulks in the oncology category.

JOINT VENTURES

Dabon International Limited - Dabur has also collaborated with Bongrain of France for the

manufacture and marketing pf specialty cheese and other dairy products. This joint venture

company has already made its presence felt in the Indian cheese market through the launch of

29
processed cheese under the brand name LeBon, and a specialty cheese under the brand name

Delicieux.

SUBSIDIARIES

DABUR has six subsidiary units, which come under the umbrella of the DABUR India

organization. These are:

DABUR FOODS LIMITED

Dabur Foods Limited, a 100% subsidiary of DABUR INDIA LIMITED, is spearheading

Dabur's foray into food processing industry. The company, set up in April 1999, is marketing a
range of fruit juices under the brand name Real, Homemade Cooking Paste and Sauces and
Lemoneez lemon juice. DABUR was the first company in India to introduce fruit juices in
packaged form without any artificial additive. Real is today the market leader in this category
with more than 50% market share. Homemade cooking paste is the only national brand in this
category. Lemoneez is the only product in its category available in unique

drop and trickle pack and uniquely shaped tabletop pack.

DABUR Finance Limited

DABUR has an illustrious Board of Directors who are committed to take the company onto
newer levels of human endeavor in the service of mankind.

PERFORMANCE APPRAISAL

30
Since organisation exist to achieve goals, the degree of success that individual
employees have in reaching their individuals goals is important in determining
organizational effectiveness. The assessment of how successful employees have been at
meeting their individual goals, therefore, becomes a critical part of HRM. This leads us
to the topic of performance appraisal.

PURPOSE

There are basically three purposes to which performance appraisal can be put.

● 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.

● Second, these appraisals can be used for identifying areas where development
efforts are needed. Management needs to spot those individuals who have
specific skill or knowledge deficiencies. The performance appraisals are a major
tool for identifying these deficiencies.

● Finally the performance appraisal can be used as a criterion against which

selection devices and development programs are validated. It is one thing to say,
for example, that our selection process is successful in differentiating satisfactory
performers from unsatisfactory performers.

THE APPRAISAL PROCESS

Established performance standard

Communicate performance expectations to employee

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 Measure actual performance

Compare actual performance with standards

Discuss the appraisal with the employees.

If necessary, initiate the corrective action

The appraisal process begins with the establishment of performance standards. These
should have evolved out of job analysis and the job description discussed under human
resource planning. These performance standards should also be 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 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.

The third step in the appraisal in the measurement of performance. To determine what
actual performance. To determine what actual performance is, it is necessary to acquire
information about it. We should be concerned with how we measure and what we
measure.

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

32
consequences. And what we measure determines, to a great extent, what people in the
organization will attempt to excel at.

One of the most challenging tasks facing managers is to present an . accurate appraisal
to the subordinate and then have the subordinate accept the appraisal in a constructive
manner. Appraising performance touches on one of the most emotionally charged
activities the assessment of another individual's contribution and ability. The impression
that subordinates receive about their assessment has a strong impact on their self-esteem
and, very important, on their subsequent performance.

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 APPRAISAL SYSTEM

IN DABUR INDIA LIMITED

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In DABUR India Limited they have the system of performance appraisal of their employees.
The main objective of this performance appraisal system is to evaluate the performance,
promote their employees and to arrange for their various training programmes if they require
for enhancing their skills in their respective areas and in contribution enhancement..

Employees are evaluated by how well they accomplish a specific set of objectives that have
been determined to be critical in the successful completion of their job. This approach is
frequently referred to as management by objectives. Management by objectives is a process
that converts organizational objectives into individual objectives. It can be thought of as
consisting of four steps: goal setting, action planning, self- control, and periodic reviews. In
goal setting, the organization's overall objectives are used as guidelines from which
departmental and individual objectives are set. In action planning, the means are determined
for achieving the ends established in goal setting. That is, realistic plans are developed to
attain the objectives. Self-control refers to the systematic monitoring and measuring of
performance. Finally, with periodic progress reviews, corrective action is initiated when
behavior deviates from the standards established in the goal-setting phase. DABUR uses very
constructive performance appraisal process while evaluating its employees. Its evaluation is
based on quantitative wise and objective wise.

Company set goals to its employee by properly reporting with its employees and then
evaluating them 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
evaluator ~ 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 Company 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.

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OUTCOME OF PERFORMANCE APPRAISAL

As far as DABUR company is concerned, there are four outcomes possible:

a. Outstanding -If the performance evaluated by the management turns out to be

outstanding. If the employee performs in such a way as to collect 3 consecutive
outstanding performance into his/her credit) he / she gets promoted.

b. Excellent -If the performance evaluated by the management turns out to be excellent. If
the employee performs in such a way as to collect 3 consecutive excellent performance
into his/her credit, he/she gets promoted.

c. Good -If the performance evaluated by the management turns out to be good. The
management sends the employee to the training programme to improve his/.her skill to
perform form.

d. Below average -If the performance evaluated by the management turns out to be below
average. And, if the employee collects 3 below average to his/her credit, then he/she
dismissed

DURATION OF APPRAISAL SYSTEM

The time constraints enables the employee to show or project his/her capabilities in term of
performance as per the duration allowed. In DABUR India Limited, the performance appraisal
system is carried out annually.

FEEDBACK
35
The company provides the annual feedback to its employees and thus, in term bring out the
highlights of the self assessment programme. This enables the better communication between
the management and employees ad thus, helps in promoting the business future.

RESPONSE

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.

ANALYSIS

36
Q.1 In your opinion, does the Performance Appraisal System give a proper assessment of your
contribution to the organization?
a) Yes b) No

ANALYSIS-
About 40% of the respondents say that the Performance Appraisal System does give a true and
fair view of their contribution to the Organization. This does include employees who think that
their rating does not always turn up to be correct as per their opinion.
While 60% of respondents have replied in the negative, they also include candidates who say that
the appraisal does not turn out to be right most of the times but do show a fair view sometimes.
Since the appraisal is done on an annual basis, the data may not be entirely sufficient to reach
any conclusions.

37
Q.2 How often does your Performance Assessment match to your expectations?
a) Never b) Rarely c) Sometimes d) Often
e) Every time

ANALYSIS-
This question was purposely put into the questionnaire to validate the answers for the previous
question. The breakup of the data clearly shows that 20%of the entire sample state that their
appraisal often show a fair view of their performance. This also shows that 80% are satisfied
with the present system even though this includes satisfaction in varying degrees like the
appraisal matches up to the respondents expectations sometimes or often.

Q.3 What is your satisfaction level with the current Appraisal System?
38
a) very low b)low c)average d)high e)very
high

ANALYSIS-
The satisfaction level of the Appraisal system is average as can be seen from the graph. This is a
good sign as increased level of satisfaction is the main emphasis of any appraisal system. The
curve tops at the rating of average and this includes about 96% of the population. The bell curve
shows that 100% have rated the Appraisal system as average or high. The average satisfaction
level in the System could also be due to various reasons like monetary incentives less than
expected etc.

39
Q.4 What are the areas that should be improved upon?
a) Standards b) monetary incentives c) frequency of appraisal d) appraiser

ANALYSIS-
This question breaks up the different phases of the appraisal system and tries to come to derive a
conclusion as to the areas of improvement in the process of evaluation. 10% of the respondents
say that there should be a change on the aspect of monetary incentives. This does not refer to an
increase in the monetary incentives but a more reasonable incentive structure that will properly
reward increased and efficient performance. The frequency of appraisal is another aspect that
needed review. The present system is an annual one and the general opinion is that informal
appraisals should be held on a more regular basis. Standards of performance (i.e. benchmarks)
should be improved according to 30% of the respondents. Whereas 30% have stated that there
should be a change in the appraiser, which is an inevitable sign of the operational efficiency of
the system.
Q.5 How important do you think is performance appraisal to your performance?

40
a) Not important b) less important c) important d) very important
e) most important

ANALYSIS-
This question was put in to find out and analyze the importance of the Appraisal system to the
productivity of the employee. The data clearly shows that the recognition of the employee’s
performance does have a direct impact on his / her efficiency. A vast majority of the respondents
(i.e. 100% which includes ratings of very important or important) affirm that their performance is
directly influenced by recognitions of their performance by the appraisal system. None of the
respondents have stated that the appraisal system had no effect on their productivity. This points
out to the fact that the Appraisal system goes a long way in determining the productivity of the
employees in an Organization. Therefore it is very important for any Organization to devise their
Performance Appraisal System carefully.

41
Q.6 Do you think one on one sessions are effective in ironing out problems in the working
environment?
a) Yes b) no

ANALYSIS-
One on one sessions are conducted by DABUR India Ltd. during the appraisal system phase to
tell the employee on an individual level as to the rating given to him / her. The team leader tries
to justify his reasons on why he had given a particular rating to an employee. 100% of the
employees responded by saying that the one on one sessions are efficient in ironing out problems
mainly because since they are given a chance to discuss their ratings with the reporting officer
directly. The employee therefore does expect to get a proper idea where he lacks and what are
his/her problem areas after one on one session with the supervisor.

Q.7 How do you find the performance appraisal method in your organization?
a) Simple b) complicated c) objective d) subjective e) efficient f) inefficient

42
ANALYSIS-
From the above chart it can be inferred that, a majority of the sample respondents have found the
Appraisal Model to be simple and subjective on one hand but also efficient on the other hand.
The Appraisal model has been thoroughly dealt with during the training so the employees know
exactly what is expected of them. The HR department follows an open door policy which ensures
that any queries regarding the policy can be clarified to the employee’s satisfaction.

43
Q.8 Were you informed about the performance appraisal system during your induction?
a) Yes b) no

ANALYSIS-
80% of the respondents said that they were informed of the model during the interview. They
were told so at the discretion of the interviewer.
The company made it a point to inform the employee about the model before he signs the
acceptance letter. This prevents any ambiguities and misunderstanding about what is expected of
the employee before he joins the Organization.

44
Q.9 What is the level of motivation of your personnel?
a) Very high b) high c) moderate d) low e) very low

ANALYSIS-
The data collected shows that 40% of the employees rate the level of motivation of personnel as
moderate, while a similar percentage of respondents feel the level of motivation as low. i.e. a
combined figure of 80% rate the level as moderate and low. Only 20% of the respondents rate it
as high. None of the replies came in very low or very high.

45
Q.10 Does the credibility of appraiser affect the performance appraisal system?
a) Yes b) no

ANALYSIS-
A majority of the respondents ie.80% agree that credibility of the appraiser does affect the
performance system of the organisation. Hence this shows that almost all the respondents in a
way believe that their performance appraisal report is dependent largely on the appraiser and his
credibility is of utmost importance.

46
Q.11 Is there a complaint channel for the employees who are dissatisfied with the performance
appraisal system?
a) Yes b) no

ANALYSIS-
While 40% of the employees say that there is a proper complaint channel for the employees
dissatisfied with the performance appraisal system, 60% believe that they are not provided with
good communication channel. Hence the majority lies toward the negative side. This shows that
even if a complaint channel exits the employees are not being able to use that channel properly at
times.

47
Q.12 Are you given a chance to rate your performance?
a) Yes b) no

ANALYSIS:-
The data shows that 40% of the employees have replied in affirmative that they are given a
chance to rate their performance while 60% say that they are not given a chance to rate their
performance. The difference in the responses could have occurred due to that fact that although
the employees are given a chance to discuss their appraisal with their reporting officer in
DABUR INDIA Ltd., they are directly not given a chance to rate their own performance during
the appraisal period.

48
Q.13 How does poor appraisal system affect your organization?
a) Demotivation b) retention c) ineffective teamwork

ANALYSIS:-
The data collected shows that a majority i.e. 80% of the respondents believe that a poor appraisal
system leads to demotivation in the organization. While some ie.20% also believe that it leads to
ineffective teamwork. And hence most of the employees get demotivated due to poor appraisal
system while to some extent employees don’t coordinate with their team members. Thus
resulting in reduction of output.

49
Q.14 How does the performance feedback is communicated to you?
a) Written b) oral c) detailed d) summarized

ANALYSIS:-
The data shows that 50% employees say that it is communicated orally to them another 50% say
that it given in detailed and written form also. While most of the times feedback is
communicated orally , a detailed feedback is also given through a letter to the concerned
employee if he/she receives any adverse remark in the performance appraisal report.

Q.15 Are u satisfied with the performance appraisal system?

50
a) Fully satisfied b) satisfied c) partially satisfied d) partially
dissatisfied
e) Fully dissatisfied

ANALYSIS:-
As seen from the collected data although none of the employees ( i.e. 0%) are fully satisfied

with the appraisal system ,a majority i.e. 80% is satisfied with the appraisal system. While only

10% say that they are partially satisfied. Also 10% employees do say that they are fully

dissatisfied with the appraisal system. These employees seem to have based their judgments over

one or two adverse instances of bad review that might have occurred with them.

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SWOT ANALYSIS

52
1. STRENGTH - Dabur India Limited is the first Indian major company which came
up with the idea of Ayurvedic concept in various family and health care products.
mostly whatever ingredients it uses in its product are extracted from nature as it has
very less synthetic chemical constituents used in its product and so it does not has any
threat of side effect. As it has its product in major areas viz. family, health care and in
food division it can easily has larger share of market. By this performance appraisal
system act as motivating factor for its employees to a great extent by increasing their
efficiency and skills. For example, if we see Dabur Lal Dunt Manjan, it is India's
number one tooth powder doing very well in rural as well as in urban market.

2. WEAKNESS - The main weakness of the company is that the company is taking the
performance appraisal in objective wise, while evaluating a particular employee
performance, on objective wise, the employee does not get enough opportunity to
express completely and freely the valid reasons of his/her failure to the organization.
Weakness is also highlighted when Dabur India Limited do this performance
appraisal procedure annually.

3. OPPORTUNITY -With the help of this performance appraisal system the employee
always get feedback from the company. He / she can realize easily his/her level of
efficiency. By this performance appraisal system the employee gets enormous
opportunity to enhance their skills by special training and various other management
programmes.

4. THREATS -While evaluating an employee’s performance the performance appraisal

system there is always a chance of fear that those employees who are unable to
achieve their target can take it as a huge set back for them and in the log term it tends
to decrease their efficiency level how good the employee is and thus it effect the over
all performance of the organization.

53
LIMITATIONS

54
 LIMITATION

The following are the limitations faced during the course of the study

● There is no concrete basis to prove the response given is a true measure of the opinion of

all the employees as a whole.

● Convenient sampling was used as the mode of conducting the research.

● The questionnaire contained mostly multiple-choice questions; therefore many

respondents may not have given a proper thought before answering the questions.

● The response of the respondents may not be accurate thinking that the management might

misuse the data.

● Sensitive company information cannot be displayed in the project report.

55
CONCLUSION

56
The following are the suggestions and conclusions derived from this particular research study

● The findings suggest that for success of Appraisal system the credibility of appraiser is of
utmost importance.

● Another point to be noticed is that even in the other forms of Performance Appraisal also
the employees expect that they should be given a chance to rate their own performance.
This can allow the employee to analyze ones own performance which gives new insights
on how one is performing and what are the critical points where he has to put his best and
improve upon.

● As per the Appraiser, a poorly conducted appraisal system would lead to demotivation
and ineffective teamwork which will result in inefficient functioning and low
productivity in the organization. Therefore, if at all they feel there is dissatisfaction
among the appraises they should motivate them. Achievement, recognition, involvement,
job satisfaction and development can motivate the employees to a large extent. Along
with this satisfactory working conditions and appropriate awards also play an important
role.

● Also a majority of employees were satisfied with the current appraisal system although
they requested for some changes.

57
RECOMMENDATIONS

58
The study undertaken brings some interesting result.

● Training the Appraisee: It is proposed that appraiser be trained for clear

understanding of the system and its objective and also counselled to be honest, fair,
just, unbiased in appraising the appralsee.

● Factors/traits of evaluation: It is proposed that appraisee evaluated on above

factors/traits be given suitable remark or justification for being given different
quantitative grade.

● Greater clarity has to be has to there in terms of job responsibility. This is possible
when the appraisal is done on the basis of the description.

● In the organization, performance appraisal is done on an annual basis which should

be done quarterly to make it more effective.

● Consistency is demanded in the promotional policy. It should not change every year.

● Monetary difference between two grades should not be large, it should be motivating
in nature.

● Performance appraisal system should be made more transparent and rationale.

● Performance feedback: The performance feedback sessions should be improved

which would results in increasing employee motivation to improve performance. The
following could be incorporated.

● Pin point the problem behavior and make sure the employee is aware of it

59
● Make sure the employee understands the consequences of the problem behavior. Get
employee's commitment to change and make sure he cares about the change

● Assistance should be provided to improve poor performance. Make a realistic plan

appropriate to the behavior and set a time frame for improvement.

● To make sure to review performance time to time

The other change which has to be incorporated at the supervisor and the level
above are:

● These should be listing down of task undertaken during the last one year and the
result achieved.

● In some areas of performance there should be self appraisal and more and more
counseling so that employee improve upon weak area and understand what is
expected of him/her at the organization level.

● Based on the above an open appraisal system is suggested.

In an open appraisal the employee would come together to set the targets, to understand
the mutual expectations and support to be provided by the appraiser to the employee for
achieving mutually accepted goals/targets. Through this process of setting targets the
interpersonal relationship between the appraiser and the employee would improve.

The open appraisal system reduces the whims and fancies of the appraiser. It promotes
result-orientation as it is based on performance rather than on personality based
appraisal.

60
BIBLOGRAPHY

BIBLOGRAPHY

61
1) Flippo EdwinB., Personnel management, Edition sixth, Tata Mc Graw Hills, 1984, p.g.
225-230

2) Gupta, C.B., Human Resource Management, Edition Fifth(Reprint),Sultan Chand and

Sons, New Delhi 2006, P.G. 5.3-5.10

3) Rao, P. Subba, Essentials of Human Resource Management and Industrial Relations;

Edition Second, Himalaya Publishing House, New Delhi 2005, p.g.206-210

WEB SITES SURFED

www.google.com
www.indiatimes.com
www.msn.com

62
ANNEXURE

63
 QUESTIONNAIRE
TO STUDY PERFORMANCE APPRAISAL SYSTEM

ANNEXURE

Q.1 In your opinion, does the Performance Appraisal System give a proper assessment of your

contribution to the organization?

a) Yes b) No

Q.2 How often does your Performance Assessment match to your expectations?

a) Never b) Rarely c) Sometimes

d) Often e) Every time

Q.3 What is your satisfaction level with the current Appraisal System?

a) very low b)low c)average

d)high e)very high

Q.4 What are the areas that should be improved upon?

a) Standards b) monetary incentives c) frequency of appraisal d) appraiser

Q.5 How important do you think is performance appraisal to your performance?

a) Not important b) less important c) important

d) very important e) most important

Q.6 Do you think one on one sessions are effective in ironing out problems in the working

environment?

a) Yes b) no

Q.7 How do you find the performance appraisal method in your organization?
64
a) Simple b) complicated c) objective d) subjective

e) efficient f) inefficient

Q.8 Were you informed about the performance appraisal system during your induction?

a) Yes b) no

Q.9 Is the post appraisal feedback viewed seriously by the organization?

a) Yes b) no

Q.10 What is the level of motivation of your personnel?

a) Very high b) high c) moderate

d) low e) very low

Q.11 Does the credibility of appraiser affect the performance appraisal system?

a) Yes b) no

Q.12 Is there a complaint channel for the employees who are dissatisfied with the performance

appraisal system?

a) Yes b) no

Q.13 Are you given a chance to rate your performance?

a) Yes b) no

Q.14 How does poor appraisal system affect your organization

a) Demotivation b) retention c) ineffective teamwork

Q.15 what are the criteria of your performance appraisal?

a) Performance b) attendance c) target work & achievement

Q.16 How does the performance feedback is communicated to you?

a) Written b) oral c) detailed d) summarized

65
Q.17 Does the present appraisal system of your organization distinguishes the performers and

non-performers?

a) Strongly disagree b) disagree c) neutral d) agree e) strongly

agree

Q.18 Do you think after the relationship feedback comfortable

a) Strongly disagree b) disagree c) neutral d )agree e) strongly

agree

Q.19 According to you how often should the performance review take place?

a) Every 3months b) every 6 months c) once in a year

Q.20 Are u satisfied with the performance appraisal system?

a) Fully satisfied b) satisfied c) partially satisfied

d) partially dissatisfied e) fully dissatisfied

66