A Project Study Report On Training Undertaken at

UNITED SPIRIT LIMITED UDAIPUR PERFORMANCE APPRAISAL

Submitted in Partial Fulfillment for The Award of Degree of Master of Business Administration

2010-2011 Submitted by: Manisha Rajpal MBA Semester III Submitted to: Ms. Sakshi Chouhan Assistant Professor

ADVENT INSTITUTE OF MANAGEMENT STUDIES Udaipur

PREFACE

Work experience is an indispensable part of every professional course. Without practical experience one cannot be as qualified potential, capable manager. Hence in partial fulfillment of the MBA degree I undertook the training in "UNITED SPIRIT LIMITED at UDAIPUR" for 15 days. In this report all the suggestions, recommendations, observation and findings are the result of the research done by me on the topic "performance appraisal". My project work is completed under the guidance of Mr. K. S. SINGH. The objective of this research was to compile the information about appraisal in USL. For completion of research I collected the information from the prospective employees of the company. Performance appraisal helps in motivating the employees. It also helps and encourages them for doing better work in the future. So, the employee can work with more interest and minimize the shortcomings & become more efficient and effective in their job. It also helps them to gain a huge confidence towards the work given by positive or highly positive appraisal of employee.

ACKNOWLEDGEMENT

I express my sincere thanks to Dr. N.S Rao, Director, Advent Institute of Management Studies and my project guide Dr. Kadambari Jain, Associate Professor, Deptt AIMST, for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project.

I would also like to thank the supporting staff of Human Resource Management Department, for their help and cooperation throughout our project.

(Signature of the student) Manisha Rajpal

EXECUTIVE SUMMARY
I had completed my training at UNITED SPIRIT LIMITED, Udaipur. It was very pleasant feeling while I having my training there. My entering in the organization was like steeping into an entirely new world. At first everything seems strange but as a time passes I feel more comfortable. The very first day I met my trainer Mr. R. S. SINGH and he told about the organization like what type of organization it is, what are its main products. They also told me to get more information about the company. Then after they give me different type of task to know better about my topic i.e performance appraisal. When all basic work of report was completed I started the main research process and prepared questionnaire. The questionnaire contains the all those questions from which I came to know the employees view and was helpful in my further research. My project guide also support and help me time to time or as I required. I came to the last stage of the report which is analyzing the data and preparing interpretation, suggestions & conclusion. After this I completed all the formal information required and submitted the report as a hard copy.

I am very thankful to Mr. R. K. Singh for giving me the opportunity to work as a trainee in USL. I sincerely believe that there is no better place to learn the practical experience of management studies than industry itself.

CONTENTS
1. 2. 3. Introduction to the Industry Introduction to the Organization Research Methodology 3.1. Title of the Study 3.2. Duration of the Project 3.3. Objective of Study 3.4. Type of Research 3.5. Sample Size & Method Of Selecting Sample 3.6. Scope of Study 3.7. Limitation of Study 4. 5. 6. 7. 8. 9. 10. Facts and Findings Analysis and Interpretation SWOT Analysis Conclusion Suggestions Annexure Bibliography

CHAPTER-1

INTRODUCTION OF THE INDUSTRY

SPIRITS INDUSTRY:The fermenting and distilling of fruits and grains into alcoholic beverages was a practice that the first American settlers brought with them to the new colonies. In the colonial period, Americans made several kinds of beverages, including whiskey, cider, brandy, and most popular of all, rum. Rum was manufactured from imported molasses. Although colonial authorities at times attempted to control consumption, distilled spirits were widely accepted and enjoyed. Distillation was decentralized in rural settings, so mass production was not characteristic of the spirits industry. Distilled spirits, more simply known as liquor, reflect the customs, tastes, and even agriculture of many lands and peoples. Despite great variations in the natural fruits and grains used for raw material and in production techniques, the liquors of the world are all based on the discovery of distillation more than 2,000 years ago.

The Nineteenth Century: Domination and the Onset of Decline

In the late 1700s and early 1800s whiskey replaced rum as the spirited beverage of choice among Americans. Whiskey, which was distilled from grain, was not only cheaper especially when turbulent foreign relations made it more expensive and difficult to import molassesbut was also a homegrown product and therefore a symbol of America's newly won independence. Considering the high per capita consumption during much of the nineteenth centurynearly five gallons per person in the early decadeswhiskey can be considered America's national beverage during the 1800s. Although whiskey was made in small distilleries across the new nation, it was a specialty of Scotch-Irish immigrants who settled in western Pennsylvania and then the Kentucky region. Kentucky soon became the center of whiskey production. Distillers there prided themselves on the manufacture of bourbon, which differed from other whiskey because it was made from corn, or corn mixed with other grains, instead of from rye or barley. Furthermore, the distinctive taste of bourbon, which was produced mainly in Bourbon County, Kentucky, derived from the charred wooden barrels in which it matured. Despite its popularity, whiskey was at the same time often condemned. The temperance movement, which emerged in the 1820s, targeted spirits, not beer or wine. Historically, Americans have viewed beer and wine as benign in comparison with whiskey and other spirits, which they have regarded as intoxicating and potentially harmful. This explains why

taxes on spirits have always been higher than on other alcoholic beverages. Whiskey distillers have often objected to the high tax on their product. In the Whiskey Rebellion of 1794, farmer-distillers in Pennsylvania Objected to the high tax on whiskey and staged a violent revolt. Although the rebellion was quelled, protest was effective enough so that in 1802 the federal government acknowledged that the tax was uncollectable and repealed it. Except for a brief period, the federal tax on whiskey was not reinstituted until the Civil War. In the second half of the nineteenth century, the whiskey industry experienced overproduction and intense competition, which led to price wars and concentration. A small number of huge distilleries in Peoria, Illinois, had come to rival Kentucky's whiskey industry. The Peoria-based Whiskey Trust tried to control production and raise prices but without

CHAPTER-2

INTRODUCTION TO THE ORGANIZATION

UNITED SPIRITS LIMITED

United Spirits Limited (USL) is the largest spirits company in India and second largest spirit USL has a global footprint with exports to over 37 countries. It has a sizeable presence in India with distilleries and sales offices all across the country, and a committed team of over 7500 people dedicated to the fulfillment of the company's mission. It has established manufacturing and bottling plants in every state of India. In addition, to deliver its products to customers located anywhere in India, USL has established a robust distribution network covering the whole country.

MISSION:-

"To be the most admired global leader in the spirits industry by creating unique high-quality brands for consumers, driven by highly motivated employees and supported by best-inclass processes and continued innovations. United Spirits is and will continue to be responsible towards its stakeholders and the society.

COMPANY PROFILE:United Spirits Limited (USL) began its story in the year 1999 as McDowell Sprits Limited. It is the company engaging in manufacturing of beverages. The Company operates primarily in the Indian Made Foreign Liquor (IMFL) space with clearly chalked out plans for the Wine and Bottled In Origin (BIO) sectors. USL is to manufacture, purchase and sell Indian made foreign liquor including brand franchise.

The Group's products include beer, wine, country liquor, Indian made foreign liquor and spirits. Its plants are located at Kerala, Andhra Pradesh, Goa, Bihar, Karnataka, Uttar Pradesh, Rajasthan, West Bengal, Madhya Pradesh, Maharashtra and Pondicherry. Some of the brand names include Romanov, Signature, Bagpiper, Red Riband Vodka, Blue Riband Gin, Black Dog Whisky, Single Malt Whisky, Caesar Brandy, Old Cask Rum, Celebration XXX Rum and Bosca Wine. As at 1st April 2000, the company name was changed from McDowell Sprits Limited to McDowell & Company Limited. During the year 2002, the McDowell Alcobev becomes the wholly owned subsidiary of the company.

In the same period, the company made alliances with US, Australia and French Cos. for bulk wine import. Phipson Distilley becomes a wholly owned subsidiary of the company and also the company acquired 85% equity stake in Triumph Distilleries & Vinters Pvt Ltd, subsequently, the Triumph Distilleries & Vinters becomes a subsidiary of USL during the year 2002 itself. The Company acquired the Indian and Middle East businesses of Gilbeys from UDV through its ultimate subsidiary Triumph Distillers & Vintners Private Limited in December of the year 2002. Gilbey's Green Label is a popular brand of whisky in the regular segment with sales of over 2 million cases. It was seen as a useful addition to your Company's portfolio brands as it enjoyed certain price advantages in the whisky category. During year, McDowell International Brands Limited became a wholly owned subsidiary consequent upon the transfer of beneficial interests in the balance 60 Equity Shares of Rs.10/- each held by the other shareholders to the company. USL had rolled out its new Whisky brand, 'Derby Special Whisky' in Andhra Pradesh Market in the period of 2003.

Company has gone live with SAP R/3 at all locations in South India during the year 2003 along with the reorganizations. Limited became an ultimate subsidiary of the Company consequent upon it becoming a subsidiary of Phipson Distillery Limited, USL's wholly owned subsidiary. USL made an open offer to the shareholders of Shaw Wallace & Company Limited pursuant to the Regulations 10 & 12 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 at Rs. 260/- per share. Pursuant to the open offer, United Spirits Limited acquired 12,001,518 Equity Shares constituting 25% of the paid up equity share capital of Shaw Wallace & Company Limited. McDowell's No.1 Reserve Whisky Smart Pouch bagged the Silver Award for Packaging Excellence 2005.

The Investment business of the Company was demerged into McDowell India Spirits Limited (since renamed as McDowell Holdings Limited), the amalgamation taking effect from April 1st 2005. In order to expand its Scotch whisky to a larger consumer segment and the middle-income group in particular, the company launched a low-priced variant of its Black Dog Scotch May of the year 2007, the company had acquired 100% stake in Whyte & Mackay, Whyte & Mackay is leading distiller of Scotch whisky. Equity shareholders & creditors of the company approved the Scheme of Amalgamation ('the Scheme') of Zelinka with the Company as on April 11, 2008.

BOARD OF DIRECTOR: Dr. Vijay Mallya

Chairman

Dr. Vijay Mallya is the face of the $2 billion UB Group. 52 year-old Dr. Mallya took over the reins of the United Breweries Group in 1983.

Mr. S. R. Gupte
Vice Chairman

Mr. Subhash Raghunath Gupte , aged 68 years, is a Chartered Accountant. Mr. Gupte has worked with Caltex India Limited.

 Mr. Vijay K. Rekhi

President and Managing Director

Mr. Vijay K. Rekhi is the President and Managing Director of United Spirits Limited, India's largest and the world's second largest.

Mr.M.R.D.Iyengar Mr. M. R. Doraiswamy Iyengar. Aged 66 Years is a Graduate in Commerce and a Chartered Accountant. He is also a post Graduate in Law, holding a B.L. degree.

Mr. Sreedhara Menon Mr. Sreedhara Menon, aged 70 years, is currently Chairman of the Board and Strategic Advisor of VITEOS Capital Market Services Limited.

Mr.B.M.Labroo Mr. B. M. Labroo, aged 75 years, is an Industrialist and has wide experience in marketing, finance and corporate governance.

Mr.S.K.Khanna
Mr. Sudhindar Krishan Khanna aged 54, is a qualified Chartered Accountant. He ranked 3rd in the UK in the Intermediate Examination of the Institute of Chartered Accountants in England.

UB GROUP:The UB (United Breweries) Group was founded by Thomas Leishman in 1915. It started its business with manufacturing of beer. Vittal Mallya became first Indian Director of UB group in 1947. In 1983, Vijay Mallya, son of Vittal Mallya, become chairman of the group. He handled the group with more professional management. In 1988, group acquired Berger Paints. Group divested paint business in 1996. UB group has following divisions:

Beverage Alcohol Pharmaceuticals Media International Trading Fertilizer Research and Development Aviation

HOW MERGER PROCEED :Shaw Wallace controls 10% of the market of the country liquor in States where it operates. As per Ms. Komal C Wazir, Shaw Wallace was present only in Uttar Predesh. Company would try to enter Maharashtra, Karnataka and Rajasthan. Companys beer sales share in country also increased from 33% in the previous year to 35% in the year 20032004.

In 2004, Shaw Wallace Breweries Limited (SWBL) was a joint venture between Shaw Wallace and South African Breweries was having market share of 36% in India. United Breweries was in the 1st place with 43% market share in the breweries market. Ready to Drink (RTD) is not selling well in India. RTD was introduced in 2002. Bacardis Breezer, United Breweries Shotz, Balarampur Chinis Xotica, Shaw Wallaces Vebe were hardly selling in the market. In 2003-2004 3.3 lakh cases of RTD sold. High price seemed to be reason of less selling.

In October 2004, Shaw Wallace announced that they were eyeing on the export market Australia, France and also ramping up export in Australia. In India, Royal challenge, a

UB group was the highest bidder for sprit division of SWC which was put in the block. The UB group had bid Rs. 1251 Crore. Later SWC changed it plan and invited bid for 55% stake in the holding company.

On February 23, 2005, Mr. Vijay Mallya announced 25% open offer for Shaw Wallace Rs. 250. This is an 8.2% premium over the last closed price. He also indicated a breakdown of talks between UB group and Ms. Vidya Chhabria of Shaw Wallace Company (SWC). This offer valued Shaw Wallace Rs.1200 Crore which is 120% premium over market capitalization of last 12 months. Mr. Mallya also said that none of his company has acquired any stake in Chhabria ny McDowell & Co. had rose 10% to Rs.172.55. Shaw Wallace said they were considering legal option against the UB group bid but it is an open offer and legal options are limited. LIC chairman LN Bhardwaj told that they were considering the offer.

SWC announced that they are open to any fair price for selling off. Earlier they hold the selloff of 55% stake of Chhabria family. March 31, 2005. Vijay Mallya announced that UB group had closed the deal with Chhabria family owned Jumbo World Holdings Ltd (JHWL) for Rs. 1330 Crore ($300 m) for a stake of 54.54% share of SWC. The deal is evaluated as Rs 325 per share. UB group also said that open offer price has been revised to Rs.260 per share. Majority control of Narmada Gelatine Ltd will be divested to Jumbo affiliate as soon as practicable to maintain Jumbo Management Team.

UB group also in the process of Herbertsons Ltd, the maker of Bagpiper whisky, after the out of court deal with Kishore Chhabria.

When asked about the over valuation of Rs1300 Crore for SWC Mr. Mallya said the every year SWC and UB spend Rs 200 Crore each for just fighting with each other. This will now be added to the bottom line. There would be two companies United Breweries and SWC still FY 2006 and then they would be merged to United Sprit. Mallya also clarified that he was only interested in sprit business and no other business. This also excludes bear joint venture of SWC. Industry estimate for valuation is Rs. 80 Crore for a million cases.

REGULATORY & LEGAL ISSUES:-

Competition Committee of India (CCI) might investigate any deal (involving two Indian companies) in which exceeds Rs.1000 Crore or where the combines asset exceeds Rs. 300 Crore. When two Indian companies involved the threshold limit is Rs 4000 Crore for assets and Rs. 12000 Crore for revenues. UB-SWC deal qualified for both the counts. India market capacity is 110 million cases of Indian Made Foreign Liquor (IMFL). UB and SWC will have together 55 million case capacity i.e. more that 50%. A huge gap between other player and the group is also a matter of concern. Other players like Radico Khaitan, Mohan Meakins and Seagram having market share of 6-7 million cases.

HOW THE DEAL WAS FINANCED:-

The deal was financed by borrowing $300 million from ICICI bank win equal proportion of foreign and domestic currency. UB group has paid Rs 1545 Crore including Rs.312 Crore for acquisition of 25% share through open offer. Post open offer UB group has 75% share.

SHAW WALLACE COMPANY:Shaw Wallace is started in 1886 in Calcutta. In 1987 it came under Jumbo Group, lead by Mr. M R Chhabria. Jumbo Group is an international business conglomerate based in the United Arab Emirates. The group is a diversified group with business includes beverages, Tyres, Gelatines, Agrichem, Engineering, Tanneries, Freight Forwarding and Electronics. Its business is established across Hong Kong, Singapore, Japan, South Korea, Vietnam, Russia, United Kingdom, Sri Lanka, South Africa and India. Shaw Wallace comprises of following divisions:
Liquor Division Beer Division Wine Division International Business

Traditional Business

After demise of Mr. M.R. Chhabria in April 2002, Ms. Vidya Chhabria became chairperson of the group. Chhabrias daughter Komal Chhapria became executive director of Indian flagship of Shaw Wallace & Co (SWC). The $2 billion Jumbo groups Indian operations include flagship Shaw Wallace Co Ltd, Falcon Tyres, Dunlop India Ltd, Hindustan DorrOliver, Mather & Platt, Gordon Woodroffe and New Video Ltd.

SYNERGY IN MERGED ENTITY:

Increased bargain power with monopolistic customer (Government share of market is 65% and Private market share of about 16%)

Economics of scale of distribution system. Increased bargaining power with the suppliers like bottles Organizational savings arising from consolidation through elimination of multiple offices and duplication of manpower

Reduced promotion spent and improved market realization

POST MERGER SITUATION:In August 2006, Shaw Wallace Financial Services and Shaw Wallace Breweries limited merged. It was declared in 59th AGM of Shaw Wallace in September 2005. It was also declared that combined entry had 130 brands out of which 35 brand fetch 90% of the profit. McDowell announced that following eight companies were amalgamated into one entity of McDowell India Sprits Ltd and later named as United Sprit Ltd.

1. Phipson Distillery Ltd 2. United Spirits Ltd 3. Herbertsons Ltd 4. Triumph Distillers and Vintners Pvt Ltd 5. Shaw Wallace Distilleries Ltd 6. Baramati Grape Industries Ltd

7. United Distillers India Ltd 8. McDowell International Brands Ltd.

Long standing legal battle of Shaw Wallace ended on October 1, 2007. It had been settled for mere Rs 34.44 Crore, which is only 7.5% of the original demand i.e. Rs. 464 Crore. This had cleared the barrier of legal merger of Shaw Wallace into UB Group. Shaw Wallace passed board approved merging of the company with United Sprit Ltd. Shaw Wallace shareholder got four share of United Sprit for every 17 share they hold.

REALIZATION OF INTENDED OBJECT:UB Group becomes the third largest sprit company in the world. Britains Diageo Plc is in the first place and Frances Pernod Ricard PA (after buying Britains Allied Domecq) is in the second position.

UB GROUP IS WORLDS LARGEST SECOND LIQUID MAKER:Bangalore: Vijay Mallya-led UB Group said it has become the world's s second largest liquor maker after Diageo with sales of over 100 million cases in the last 12 months and is certain to be the number one by next fiscal. In the process, group firm United Spirits has overtaken France's Pernod Ricard, Mallya told reporters here, adding the company has set its eyes on the number one spot. "We are now clearly the second largest spirits company in the world and we have outperformed our global competitors," he said, adding the firm has done "extremely well despite the economic slowdown". United Spirits Ltd (USL) in the last 25 years sold over 740 million cases of spirits products making a total of 26 billion bottles of alcohol beverages of different pack sizes, he added. "We are certain that our additional sales in the next financial year will take us to him number one position globally," he said. Mallya said it took USL 12 years to cross the first 100 million cases, another five years for the next 100 million cases and four years for the third 100 million cases.

Modern method 1) Unstructured appraisal 2) Employee ranking 3) Forced distribution 4) Graphic rating scales 5) Check lists 6) Critical incidents 7) Field review 1). Management by objectives 2). Behaviourally anchored rating scales

TRADITIONAL METHOD: Unstructured appraisal The appraiser is required to write down his impression about the person being appraised in an unstructured way. This system is highly subjective and has got its merit in its simplicity and is still in especially in the small firms. Ranking method Ranking is a simple process of placing employees in a rank according to their job performance. it permits comparison of all employees in any single rating group regardless of the type of work. In this way, the best is placed first in the rank and the poorest occupies the last rank. The difficulty of this system is that the rate is asked to consider a while person. Paired comparison is an improvement over simple ranking. Under this, every employees in rater is asked to consider a while person.

Paired comparison is an improvement over simple ranking. Under this, every employee in a job family is compared with every other employee to determine which the better worker is. Graphic rating scales Under this method, scales are established for a number of specific factors and general definitions appear at points along the scales. The selection of factors to be measured on the graphic rating scales is an important point under this system. These are of two types: characteristics, such as initiative and dependability, and contributions, such as quality of work.

Check list It also consists of two techniques: Weighted check listUnder this method, various statements are prepared in such a manner that they describe various types and levels of behaviours for a particular job. Each statement is attached with a scale value. Forced choiceThe rate is forced to choose between descriptive statements of seemingly equal worth describing the person in question. Statements are chosen of both the sides.( favourable as well as unfavourable).

Critical incident method A critical incident means a significant act by an employee exceeding or failing any of the requirements of this job. It represents an exceptional behaviour of an employee at work. This method requires every supervisor to record all such significant incidents in each employees behaviours. These are recorded in a specially designed notebook which contains categories or characteristics under which various behaviours can be recorded. Field review method The supervisors are interviewed by an expert from the personnel department. The expert questions the supervisor to obtain all the pertinent information on each employee and tasks notes in his note book. The interviewer questions the supervisor

about the requirements of each job in his unit and about the performance of each man in his job.

Criticism of traditional method

Halo error Central tendency Leniency or strictness Recent behaviour bias Miscellaneous biases

MODERN APPRAISAL METHOD:There are two methods of performance appraisal which are used by the modern concern. The first is management by objectives which represents result-oriented appraisal. The second is behaviorally-anchored rating scale which is based on rating the behavior of the subordinate.

1. Management by objective (MBO)

It was PETER DRUCKER who proposed goal setting approach to performance appraisal which he called management by objective and self-control. Goal setting approach or management by objective (MBO) is the same as behavioural approach to subordinate appraisal, actually called work planning and review in the case of general electric co., U.S.A. Under this approach, an employee is not appraised by his recognizable traits, but by his performance with respect to the agreed goals or objectives. Thus, the essential features of this approach are mutual establishment of job goals.

This approach can be applied with great success if the performance appraisal program consists of the following elements: Good job descriptions are available to help setting of gaol for different positions. Superior has trust in the subordinates to establish reasonable goals. There is emphasis on problem solving rather than critism of the performance of the subordinates. According to GORGE S. ORDIORNE, process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him, and use these measures as guides for operating the unit and assessing the contribution of each of its members.

THE PROCESS OF MBO

Organization structure (Revision) Superior sets goals for subordinate.

Organization goals

Subordinate sets the goals for himself and standard for the job.

Common goals

Review of organization performance

Feedback or interim result. New inputs

2. Behaviorally Anchored Rating Scales:Behaviorally anchored rating scales (BARS) are designed to identify the critical areas of performance for a job, and to describe the more effective and less effective job behavior for getting result. Behaviorally anchored rating scales (BARS) approach combines elements of the traditional rating scales and critical incident method. Using BARS, job behaviors from critical incidentseffective and ineffective behaviors- are describe more objectively. This method employs individuals who are familiar with a particular job to identify its major components.

Various steps involved in developing BARS are as follows:

Identification of critical incidents or behaviours Identification of performance dimensions Reclassification of critical behaviours Assigning scale values to the critical behaviours Development of bar instrument

3). 360 Degree Appraisals & Feedback

The 360 degree appraisal involves rating of an employee or manager by everyone above, alongside and below him.

Besides the employees himself , superior, subordinate and peers play an important role in the appraisal structured questionnaires are used to collect responses about the employees from his superiors, peers and subordinates .several parameters relating to performance and behaviors are used in the questionnaires.

Merits of 360 Degree appraisal

The 360 degree appraisal leads to greater self awareness of the appraised. It revels strengths and weakness in their working styles.

 The gap between self-assessment and the views of ones colleagues or peer group in reduced. It facilitates empowerment of subordinate who get a say in the appraisal of their bosses. Inflexible managers are forced to initiate self changes.

Facts about organizational culture and ambience are brought to light by the
multiple appraisals.

Limitations of 360 degree appraisal

The 360 degree appraisal system ignores performance in terms of goals. The candidates being appraised may not accept negative feedback from the subordinates and peers. He might feel humiliated. Responses from colleagues often tend to be biased. Linking rewards to finding less than 360 degree appraisal can prove to be unfair. The subordinate and peers might not be fully competent in appraisal.

SELF- APPRAISAL

Appraisal might be more useful to a subordinate and lead in the long term to greater efficiency if it is conduct by that subordinate himself .subordinates states how they regard their performance , the adequacy of the training they have received , effect of alteration in job content, perception of key objective, future appraisal. They identify their own strength and account for their failures and weakness suggesting ways in which the firms might better use their talents, skills and recently acquired experiences.

 POTENTIAL APPRAISAL

The main objective of potential appraisal is to identify the potential of a given employee to occupy higher positions in the organizational hierarchy and undertake higher

responsibilities. Potential appraisal can serve the following purpose: To advise the employees about their future prospects. To advise the employees about what they must do to improve their career prospects. To help the organization chalk out a suitable succession plan. To update training efforts from time to time.

DESIGNING AN APPRAISAL PROGRAM Determining the objectives

Establishing standards of performance

Who is to do the appraisal?

Frequency of appraisal

Designing of forms

Determining the objectives:The objective of the appraisal program may be either to appraise the actual performance of individuals on their present jobs or to determine the potential of individuals to do higher jobs or both.

Establishing standards of performance:An approach that is more preferable is to establish in writing definite standard of accomplishment which the employee can reasonably be expected to meet. Such a method will make it possible for both supervisor and his subordinate to reach agreement on just what is expected in terms of performance.

Who is to do the appraisal?

The appraiser is the immediate superior of the man to be appraised. He is the most familiar with the employees work and is in contact with him and so he

is considered to be able to appraise him well. Whosoever the appraiser may be, the subjectivity invariably steps in. A welladjusted person is less subject to projecting himself into others than a poorly adjusted person and therefore, he is able to judge them better. Frequency of the appraisal:-

The frequency of appraisals differs from organization and with the nature of duties performed. There are spot appraisals, monthly, quarterly, six monthly or yearly appraisals. But most of the organizations conduct yearly or half yearly appraisals.

Designing of forms:This is an important step in performance appraisal to design the rating forms to be utilized in the program. The forms should be related to job families such as clerical, mechanical, sales, technical and supervisory. All require a different evolution form.

APPRAISAL IN USL
USL is one of the leading liquor companies in the world. In the organization performance appraisal program is conducted to appraise the employee work and tasks. Performance appraisal is the method by which one can evaluate or judge the performance of employee and after that appraiser can report correct judgment. So, appraisal is helpful in talking suitable steps for employee development and minimizes the shortcomings. In USL performance appraisal program is conducted only for executives. This process is done through filled the appraisal from by executive. This process is conduct annually so; the yearly performance of the executive is evaluated.

PROCESS OF PERFOMANCE APPRAISAL

The very first step of this process is the filling the appraisal from by executivesThe performance appraisal report or form is given to employees to fill the information where it is asked. This report is also divided into 5 parts:-

1st part- This part of the from contain personal data which has to be filled. This session is filled by executive himself/herself. Mainly it requires it the basic information about the executive. The question is like I. II. III. IV. Name of the employee Date of birth Present pay scale Designation

2nd part-This part is reseeding or need the self appraisal. This will also filled by the employee himself. In this the executive rate himself and give the information or the point of view of him that what he realized or how he rate himself. Where he stand in him own point of view.

3rd part- This part known as performance appraisal. This contains 11 point and on the basis of that points reporting officers & reviewing officer rate the executive. Firstly this part filled by reporting officers and he rate the employee from 1 to 5 rating scale.

This scale means

Excellent 1

Very good 2

good 3

average 4

poor 5

4th part- This is known as development and review. In this review officer review the whole form which is filled by reporting officer and check the rating is fair enough or not. What shortcomings are given by reporting officers for particular employee is reviewed by reviewing officer, if any addition is required or review officer think the rating is not correct than he also rate the executives at the same type of rating scale .

5th part-In this part overall assessment is made that the executive is work is executive is work is excellent, very good, good, average, poor. If both reporting and

reviewing officer are satisfied than the report is given to the authority which further continue the process.

After the all the process is done the last step is taken that what are the benefits are given to executives after the appraisal or if any poor performer is there what are the step would be taken for their improvement.

CHAPTER-3

Research Methodology

INTRODUCTION OF RESEARCH:According to Clifford wood Research comprises defining & redefining problems, formulating hypothesis or suggested solutions; collecting, organizing & evaluating data; making deductions &reaching conclusions;& at least carefully testing the conclusion to determine whether they fit the formulating hypothesis.

OBJECTIVES OF RESEARCH:

To gain familiarity with a phenomenon or to achieve new insights into it. To portray accurately the characteristics of a particular individual, situation or a group. To determine the frequency with which something occurs or with which it is associated with something else. To test a hypothesis of casual relationship between variables.

MOTIVATIONS IN RESEARCH: Desire to get a research degree along with its consequential benefits. Desire to face the challenge in solving the unsolved problems. Desire to get intellectual joy of doing some creative work. Desire to be of service of society. Desire to get respectability.

RESEARCH METHODOLOGY:Research methodology is a way to systematically solve the problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with logic behind them.

Researchers not only need to know how to develop certain indices or a tests, how to calculate the mean, the mode, the median or the standard deviation or chi-square, how to apply the particular research techniques, but they also need to know which of this methods are relevant and which are not and what would they mean and indicate and why talk of research methodology we not only talk of the research methods but also consider the logic behind the method we use in the context of our research and explain why we are using a particular method.

RESEARCH PROCESS:Define research problem

Review concepts and theories.

Review previous research findings.

Formulate hypothesis

Design (including sample design F=Feed back FF= Collect data

FF

3.1 TITLE OF STUDY:The topic of research is A STUDY ON PERFORMANCE APPRAISAL AT USL.

3.2 DURATION OF PROJECT:The duration of project is 45 days.

3.3

OBJECTIVE OF STUDY:-

To get to know that what type of benefits are given to employees. To suggest new methods of performance appraisal in USL. To create familiar environment in organization for all level of employees. To suggest new ideas to enhance employees ability & interest. What are the main skills required in an individual employee. Are all employees are satisfied by their working area & condition.

3.4

TYPES OF RESEARCH:-

Descriptive Research

Analytical Research

Applied Research

Fundamental Research

Research Types

Quantitative Research

DESCRIPTIVE RESEARCH DESIGN:-

Descriptive research designs is a particular individual, or of a group. In descriptive research, the researcher must be able to define clearly, what he want to measure and must find adequate methods for measuring it along with a clear cut definition of "population" he wants to study The design in such studies must be rigid and not flexible and must focus attention on the following:

a) Formulating the objective of the study (what the study is about and why is it being made?) b) Designing the methods of data collection (what techniques of gathering data will be adopted?) c) Selection the sampling (how much material will be needed?) d) Collection the data (where can the required data be found and with what time period should the data be related?)

e) Processing and analyzing the data. f) Reporting the findings.

3.5 SAMPLE SIZE METHOD OF SELECTING SAMPLES:Sample size for the research was 22. The sample was collected in the ranks of Managers and Assistant Managers. Taking into consideration the work environment of United Spirit Limited, primary research method was taken into consideration.

Data collection:

Primary data

Secondary data

Primary data is collected from 100 customers who were asked to fill the questionnaire. Secondary data is also collected from companys website, magazine and Journals.

3.6 SCOPE OF STUDY : The research pertains to the study of theoretical and practical aspects of training. The research comprises of the view of the employees and executives of USL.

3.7 LIMITATION OF STUDY :-; --

The study of the topic "performance appraisal" is seriously made by me and I tried my best to minimize the errors in the report. But due to some limitations errors are made, these limitations are as follows: There was very less time period for preparing project report and most of the time is spend in distribution and collection of data. Due to large organization and lees time it was not possible to collect information from each & every employee. Only 22 executives and workmen are involved in the data collection. Many employees did not give their proper response and some was not interested in fill questionnaire due to work pressure. Many

employees were not aware from the method and process of performance appraisal adopted by company. The respondents did not give their views for all questions they did not fill whole questionnaire. The study was restricted to the USL, Udaipur only the whole process was lots of time consuming.

CHAPTER-4

FACTS AND FINDINGS

 FACTS AND FINDINGS:1. 36% employees are said that performance appraisal is done by balance scorecard method and18% of employees are said that MBO method is followed in organization and rest 46% employees are said that other method i.e. appraisal from and annual report. Should be followed. 2. 50% employees opinion is that an individual is evaluated on the basis of technical skills, 27% are agreed with adaptability of organization, and 18% employees said that behaviour is the basis of evaluation. and the least 5% employees favour the other method like performance & task achievement 3. .50%employees said that 360 appraisals are done for performance appraisal and 50% said that 180 appraisal is used. So, in the organization both 360 & 180 appraisal is done. 4. 9%employees are said that performance appraisal is done in a 6 months. But 91% of employees said that appraisal is done in a year so, mostly a one year appraisal is done in united spirit ltd. 5. 45% employees said that performance appraisal is conducted to assess the performance of the employees, 41% are said that to build in strength appraisal program is conducted and the least employees i.e. 14% said that to identify the weakness of the employees. 6. 41% employees are agreed that the method which is adopted by organization for appraisal is acceptable, 27% employees are said that the method is more than

acceptable, 18% employees are partially accepting that method and 14% employees said that method is significantly more than acceptable. 7. 68% employees dont want any expansion in their role. And rest 32% employees want more expansion in their role in their functional area. 8. 41% employees are highly motivated through appraisal program, 36% employees are only motivated by appraisal for future aspect, 18% are less motivated from appraisal program and only 5% employees are not motivated through appraisal program. so, it is clear that the appraisal program adopted by United Spirit ltd is significant for most of employees ante them. 9. 41% employees are said that CARES policy is consistent within a work group,32% said that CARES is acceptable to both the parties i.e. appraiser and appraise,22% are said CARES is fair for all employees and only 5% said CARES is also consistent for across the company. 10. 65% employees are said that they are satisfied by their work job and 36% are not satisfied by work job. 11. 75% are wanted some training and development program and rests 25% are dont want any training program. 12. 45% employees get promotion as a benefit, 18% of employees get award as well as increments as benefit, 14% get award & achievement as annual benefit and the least 5% employees are managing poor performance and get opportunities for more improvements. Hence in United Spirit ltd promotion is a key benefit that is given to employees after their appraisal. 13. 41% employees are agreed that the appraisal program is effective for them,36% said that performance appraisal program is more effective for employees,18% are with the opinion that appraisal program is less effective and only 5% think that appraisal is not effective. So, in United Spirit ltd most employees are satisfied with appraisal program and in their opinion performance appraisal is effective. 14. 45% said that appraisal program conducted for senior managers, 27% or %23% said it is conducted for assistant manager or managers respectively and the rest 5% said appraisal is done also for workmen.

CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

Q.1 The performance appraisal method followed in the Organization is:-

TABLE S.NO OPTION % NO. OF

EMPLOYEES

Balanced scorecard 36% method

B C TOTAL

MBO Any other method

18% 46%

4 10 22

RESPONSE

36% 46% A B C

18%

36% employees are said that performance appraisal is done by balance scorecard method. 19% of employees are said that MBO method is followed in organization. And 46% the most of employees are said that other method i.e. appraisal from and annual report. So, most employees in United Spirit ltd. are appraised through appraisal form.

Q.2 An individual employee is evaluated on the basis of :-

TABLE

S.NO.

OPTION

NO.OF EMPLOYEES

A B C

Technical skills Behavior

50% 18%

11 4 6

Adaptability in the 27% organization

D TOTAL

Any other

5%

1 22

RESPONSE
5%

27% 50%

A B C D 18%

50% employees opinion is that an individual is evaluated on the basis of technical skills. 27% are agreed with adaptability of organization. 18% employees said that behavior is the basis of evaluation. And the least 5% employees favor the other method like performance & task achievement. So in United Spirit ltd technical skill is essential for the job.

Q.3 The employee is evaluated on the basis of :-

TABLE

S.NO.

OPTION

NO. EMPLOYEES

OF

A B TOTAL

360feedback 180feedback

50% 50%

11 11 22

RESPONSE

A 50% 50% B

50%employees said that 360 appraisals is done for performance appraisal and 50% said that 180 appraisal is used. So, in the organization both 360 & 180 appraisal is done.

Q.13 Is performance appraisal made for all level of the employees in the organization?

TABLE S.NO. OPTION % NO.OF EMPLOYEES

A B C D TOTAL

Senior manager Manager Assistant manager workmen

45% 23% 27% 5%

10 5 6 1 22

ANALYSIS CHART

RESPONSE
5%

27% 45%

A B C D

23%

45% said that appraisal program conducted for senior managers. 27% or %23% said it is conducted for assistant manager or managers respectively. And 5% said appraisal is done also for workmen.

CHAPTER-6

SWOT ANALYSIS

 SWOT ANALYSIS
Strength: It has a strong brand image. Company is the market leader. Global presence. Aggressive advertising. Quality and innovation. Ability to manage scale up. Extensive product portfolio.

Weakness: High reliance on United Breweries. Less focus on the SBUs. Use of E-Commerce in same SBUs. Long development cycles. Expensive brands. Maintenance. Relatively static market growth.

Opportunity: Demographic changes. Changing societal attitude.

Consumer brand. Threats: New competition. Cloning of successful brands. Increasing buy power. Government regulations.

Stiff competition to products.

Alternatives drinks and health conscious customers.

CHAPTER-7

CONCLUSION

CONCLUSION:The method adopted in USL for performance appraisal is god and fair enough for evaluating the performance of the employees. Employees of USL are also satisfied by appraisal method.

As requirement of modern era new technology is used for better results in appraisal.

The all over study conclude that performance appraisal is most suitable and best method for motivate the employee.

CHAPTER-8

SUGGESTIONS

SUGGESTIONS:Based on the findings of this study, the following suggestions and recommendations are made: New methods are also adopted by the company for performance appraisal like MBO, balance scorecard, rating scale, ranking forced choice, checklist. Appraisal interview is also conducted to get feedback of the employees about the whole appraisal process. Appraisal program conducted for all level of employees. From lower level to higher level to encourage and motivate them. Appraisal is best method of motivation so, various benefits like awards, increments, accommodations, bonus and loan facility is given after appraisal is done. Give equal opportunities to poor performer and also facilitate training and development program for them. Create familiar environment in the company and provide similar opportunity to all employees. Thus, no dispute is created. Provide better training program and well developed environment for work which is helpful in career growth and upgrade their skills.

CHAPTER-9

APPENDIX

QUESTIONNAIRE
1. NAME :___________________________________________________ 2. DESIGNATION:_________________________________________ 3. DEPARTMENT:__________________________________________ 4. PAY SCALE:______________________________________________ 5. JOINING DATE:__________________________________________ Q.1The performance appraisal method followed in the organization is A. Balance Scorecard method ( B. MBO ( ) C. Any other method ( ) )

Q.2 An individual employee is evaluated on the basis of A. Technical skills ( ) B. Behavior ( ) C. Adaptability in the organizations ( ) D. Any other( )

Q.3 The employee is evaluated on the basis of A. 360 Feedback ( ) B. 180 Feedback ( )

Q.4 The appraisal in conducted A. Once in 6 months ( ) B. Once in a year ( )

Q.5.What is the main purpose of conducting performance appraisal programmed in your organization? A. Assess performance ( ) B. Build on strength ( ) C. Identify weakness ( )

Q.6.The method which is adopted by your organization for performance appraisal is readily acceptable by you? A. Not acceptable ( ) B. Partially acceptable ( ) C. Acceptable ( ) D. More than acceptable ( ) E. Significantly more than acceptable ( )

Q.7 Within your functional area would you like to see an expansion in your role? A. Yes ( ) B. No. ( )

Q.8. Are you motivated by your performance appraisal programmed ? A. More motivated ( ) B. Motivated ( ) C. Less motivated ( ) D. Not motivated ( )

Q.9.Is company appraisal rating equivalence scale (CARES)? A Fair ( )

B. Acceptable to both parties ( ) C. Consist ent within a work group ( ) D. Consistent across the company ( )

Q.10 Are you satisfied with your working conditions or method? A. YES ( )

B. NO ( )

Q.11 What type of benefits you get after your performance appraisal programmed? A. Promotion ( ) B. Award ( ) C. Job rotation ( ) D. Managing poor performance ( )

Q.12.Is performance appraisal

effective for employees to take suitable steps to

improve their performance or to control their shortcomings? A. More effective ( ) B. Effective ( ) C. Less effective ( ) D. Not effective ( )

Q.13Is performance appraisal organization? A. Senior managers ( ) B. Manager ( ) C. Assistant manager ( ) D. Workmen ( )

made for all level of the employees in the

CHAPTER-9

BIBLIOGRAPHY

BIBLIOGRAPHY: T.N. CHHABRA Human Resources of Management

C.B. GUPTA Human Resources OF Management

C.R. KOTHARI Research Methodology

WEBSITE

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