INTRODUCTION

Human Resources management is pervasive function of management. It is

performed by all managers of various levels in the organization. Human Resources
management is not function of human resources department alone: it is a function of
all departments of the organization. It is concerned helping employees to develop
their potential abilities fully. It considers the development of individual at work, as an
individual and as a member of the group. Personnel policies are designed in the
manner so that intrinsic abilities of the employees may be developed to the best of the
organization.
According to Leon C.Megginson, the term human resources can be thought of
as, the total knowledge, skills, creative abilities, talent and aptitudes of an
organizations workforce, as well as the value, attitudes and belief s of the individuals
involved The term human resource can also explained in the sense that it is resource
like any natural resource.The process of Human Resources Development helps the
employees to acquire /develop technical, managerial and behavioral knowledge, skills
and abilities &moulds the values beliefs and attitudes necessary to perform present &
future roles. The process of performance appraisal helps the employees and the
management to know the level of employees performance compared to the
standard/pre-determined level.
Performance appraisal is essential to understand & improve the employees
performance through human resources development (HRD). In fact, performance
appraisal is the basis for HRD. It was viewed that performance appraisal was useful to
decide upon employee promotion/ transfer, determinate on & the like. But the recent
developments in human resources management indicates that performance appraisal
is the basis for employee development, it indicates the level of desired performance
level, level of actual performance and the gap between these two.

Page No: 1

PERFORMANCE APPRAISAL
Appraising the performance of individuals, groups and organizations are a
common practice of all societies. In some instances these appraisal processes are
structured and formally sanctioned, in other instances they are an informal and
integral part of daily activities. Teachers evaluate the performance of students,
bankers evaluate the performance of creditors, parents evaluate the behavior of their
children and all of us, consciously or unconsciously evaluate our own actions from
time to time. In social interactions, performance is conducted in a systematic and
planned manner to achieve widespread popularity in recent years.
Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and
also the future potential of the employee. Its aim is to measure what an employee
does.
DEFINITION
According to Edwin.B.Flippo, "Performance appraisal is the systematic, periodic
and an impartial rating of an employees excellence in the matters pertaining to his
present job and his potential for a better job." Performance appraisal is a systematic
way of reviewing and assessing the performance of an employee during a given
period of time and planning for his future.
Performance appraisal is defined as the systematic description of employees job
relevant, strength, weakness.
Performance appraisal may be conducted once in every 6 months or once in a year.
The basic idea of the appraisal is to evaluate the performance of the employee, giving
him a feed back. Identify areas where improvement is required so that training can be
provided.

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NEED FOR THE STUDY

A performance appraisal (or) performance review is a method by which the job

performance of an employee is evaluated (Generally in terms of quality, quantity, cost

& time) typically by the corresponding manager (or) superior. It is a part of guiding
and managing career level. It is a process of obtaining, analyzing and information
about the relative worth of the employee to the organization.
Performance appraisal is needed in every organization at every hierarchy level
to assess the performance of each and every employee in the work spot .Performance
appraisal is a method which highlights the employee needs and opportunities for
personal growth and development. Performance appraisal is essential to understand &
improve the employees performance through human resources development (HRD).
In fact, performance appraisal is the basis for HRD. It was viewed that performance
appraisal was useful to decide upon employee promotion/ transfer, determinate on &
the like. But the recent developments in human resources management indicates that
performance appraisal is the basis for employee development, it the indicates the level
of desired performance level, level of actual performance and the gap between these
two. This gap should be bridged through human resource development technique like
training, executive development etc.
Coco-cola company Visakhapatnam which is a multinational company
following good methods of performance appraisal, which in turn helping the
employees to develop their performance as well as their career growth in the
organization. Thus there is a felt need to study the performance appraisal practices at
coco-cola.

Page No: 3

OBJECTIVES OF THE STUDY

1. To study different performance appraisal methods & techniques.

2. To portray the profile of beverages industry with a special focus on Coco-Cola.
3. To study the performance appraisal system for employees in HCCBPVT.LTD.
4. To elicit the opinion of employee of HCCB PVT.LTD regarding the existing system
of performance appraisal.
5. To offer useful suggestions for improving methods of performance appraisal in the
organization.

Page No: 4

METHODOLOGY
SOURCES OF DATA
The sources for collecting the data are from both
Primary Data
Secondary Data
Primary Data
The primary data are those which are collected afresh and for the first time, and
thus happen to be original in character. The utilized tool for collecting this primary
data is through Interview Method or Questionnaire Method.
Total Population: The total population is 272 employees
Sample Size: The sample size is 70.
Sampling technique: Simple random sampling

Secondary Data
The information collected from the annual reports, company journals and other
material and even through web sites is called secondary data.
Secondary data have been collected from the relevant internal records of the
company as well as standard textbooks. At last both the data have been integrated to
make the project exact and relevant.

Page No: 5

LIMITATIONS

1. The performance appraisal study is limited only to the HCCB PVT. LTD, which
is located in Vishakhapatnam.
2. The survey could not be extended to all the employees working in the plant as
they could not spare much time because of their busy schedule of work.
3. The performance appraisal study is conducted on a limited number of
employees and on the entire work force.
4. The answers given by the respondents highly depend on the mood and interest
and thus the accuracy fluctuates sometimes.
5. Sample size is 70 respondents.

Page No: 6

CHAPTERISATION
Chapter1:
The first chapter deals with the introduction to the study about performance
appraisal, methodology and limitations of the study are also discussed.
Chapter2:
The second chapter portrays the profile of beverages Industry with a special
focus on HCCB PVT.LTD
Chapter3:
The third chapter deals with theoretical concepts of performance appraisal
as well as performance appraisal practices adopted by HCCB PVT.LTD.
Chapter4:
The fourth chapter elicits the opinion and views of respondents on the
existing performance appraisal at HCCB PVT.LTD.
Chapter5:
The fifth chapter evaluates the whole report in summary, findings and
suggestions.

Page No: 7

BEVERAGE INDUSTRY PROFILE

WELCOME TO THE COCA COLA FAMILY:

Coca-Cola Company is the worlds largest manufacturer and distributor of soft drink
syrup and concentrates.

The Coca-Cola Company Details:

Brand Name: Coca Cola
Drink Type: Soft Drink
Ticker Symbol: KO
Stock Exchange: NYS
Also Does Business As: Coca-Cola
Year Started: 1886
State of Incorporation: DE
Company Website: www.thecoca-colacompany.com, www.cocacola.com
Est. Employees: 92,400
Est. Employees at Location: 8,000

Page No: 8

COCA-COLA:

Coca-Cola is the most popular and biggest-selling soft drink in

history, as well as the best-known product in the world. Created in Atlanta, Georgia,
by Dr. John S.Pemberton, Coca-Cola was first offered as a fountain beverage by
mixing Coca-Cola syrup with carbonated water. Coca-Cola was introduced in 1886,
patented in 1887, registered as a trademark in 1893 and by 1895 it was being sold in
every state and territory in the United States. In 1899, The Coca-Cola Company began
franchised bottling operations in the United States. Coca-Cola might owe its origins
to the United States, but its popularity has made it truly universal. Today, we can find
Coca-Cola in virtually every part of the world.
BIRTH OF REFRESHING IDEA:
John Styth Pemberton first introduced the refreshing taste of Coca-Cola in
Atlanta, Georgia. It was May 8th of 1886. He first distributed the new product by
carrying Coca-Cola in jug, down the street to Jacobs Pharmacy. For five cents,
consumers could enjoy a glass of Coca-Cola at the soda fountain. Whether by design
or accident, carbonated water was teamed with new syrup, producing a drink that was
proclaimed delicious and refreshing.
TRADEMARKS:
Companys trademarks are most valuable assets. The trademark CocaCola was registered with U.S. patents and trademark office in 1893, followed by
Coke in 1945. Today, the worlds favorite soft drink Coca-Cola is also the
worlds best-known and admired trademark, recognized by more than 90% world
population.
STRUCTURE OF COCA-COLA: The five operating segments of Coca-Cola are
1. North America
2. Africa
3. Asia
4. Europe, Eurasia, and Middle East.
5. Latin America.

Page No: 9

Available in the following locations: Afghanistan, Albania, Algeria, American

Samoa, Angola, Antigua & Barbuda, Argentina, Armenia, Aruba, Australia, Austria,
Azerbaijan, Bahamas, Bahrain, Bangladesh, Barbados, Belarus, Belgium, Belize,
Benin, Bermuda, Bolivia, Bosnia & Herzegovina, Botswana, Brazil, British Virgin
Islands, Bulgaria, Burkina Faso, Burundi, Cambodia, Cameroon, Canada, Cape
Verde, Cayman Islands, Central African Republic, Chad, Chile, China, Colombia,
Comoros, Costa Rica, Croatia, Curacao, Cyprus, Czech Republic, Democratic
Republic of Congo, Denmark, Djibouti, Dominica, Dominican Republic, Ecuador,
Egypt, El Salvador, Equatorial Guinea, Eritrea, Estonia, Ethiopia, Fiji, Finland,
France, French Guiana, French Polynesia, Gabon, Georgia, Germany, Ghana, Great
Britain, Greece, Grenada, Guadeloupe, Guam, Guatemala, Guinea, Guinea-Bissau,
Guyana, Haiti, Honduras, Hong Kong, Hungary, Iceland, India, Indonesia, Israel,
Italy, Ivory Coast, Jamaica, Japan, Jordan, Kazakhstan, Kenya, Kuwait, Kyrgyzstan,
Latvia, Lebanon, Lesotho, Liberia, Lithuania, Luxembourg, Macau (Macao),
Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, Malta, Mariana Islands,
Martinique,

Mauritania,

Mauritius,

Mayetta,

Mexico,

Moldova,

Mongolia,

Montserrat, Morocco, Mozambique, Namibia, Nauru, Nepal, Netherlands, New

Caledonia, New Zealand, Nicaragua, Niger, Nigeria, Northern Ireland, Norway,
Oman, Pakistan, Panama, Papua New Guinea, Paraguay, Peru, Philippines, Poland,
Portugal, Puerto Rico, Qatar, Republic of Congo, Republic of Ireland, Republic of
Korea, Reunion, Romania, Russia, Rwanda, Saint Helena, Saint Kitts and Nevis,
Saint Lucia, Saint Martin, Saint Vincent & the Grenadines, Samoa, Sao Tome &
Principe, Saudi Arabia, Senegal, Serbia & Montenegro, Seychelles, Sierra Leone,
Singapore, Slovakia, Slovenia, Solomon Islands, South Africa, Spain, Sri Lanka,
Suriname, Swaziland, Sweden, Switzerland, Taiwan, Tanzania, Thailand, The
Gambia, Togo, Tonga, Trinidad & Tobago, Tunisia, Turkey, Turkmenistan, Turks &
Caicos Islands, U.S. Virgin Islands, Uganda, Ukraine, United Arab Emirates, United
States, Uruguay, Uzbekistan, Vanuatu, Venezuela, Vietnam.

Page No: 10

OUR MISSION, VISION, VALUES

The world is changing all around us. To continue to thrive as a business over
the next ten years and beyond, we must look ahead, understand the trends and forces
that will shape our business in the future and move swiftly to prepare for what's to
come. We must get ready for tomorrow today. That's what our 2020 Vision is all
about. It creates a long-term destination for our business and provides us with a
"Roadmap" for winning together with our bottler partners.
Our Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose
as a company and serves as the standard against which we weigh our actions and
decisions.

To refresh the world...

To inspire moments of optimism and happiness...

To create value and make a difference.

Our Vision
Our vision serves as the framework for our Roadmap and guides every aspect of
our business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.

People: Be a great place to work where people are inspired to be the best they
can be.

Portfolio: Bring to the world a portfolio of quality beverage brands that

anticipate and satisfy people's desires and needs.

Partners: Nurture a winning network of customers and suppliers, together we

create mutual, enduring value.

Planet: Be a responsible citizen that makes a difference by helping build and

support sustainable communities.

Profit: Maximize long-term return to shareowners while being mindful of our

overall responsibilities.
Page No: 11

Productivity: Be a highly effective, lean and fast-moving organization.

Our Winning Culture

Our Winning Culture defines the attitudes and behaviors that will be required of us to
make our 2020 Vision a reality.
Live Our Values
Our values serve as a compass for our actions and describe how we behave in the
world.
Leadership: The courage to shape a better future

Collaboration: Leverage collective genius

Integrity: Be real

Accountability: If it is to be, it's up to me

Passion: Committed in heart and mind

Diversity: As inclusive as our brands

Quality: What we do, we do well

Focus on the Market

Focus on needs of our consumers, customers and franchise partners

Get out into the market and listen, observe and learn

Possess a world view

Focus on execution in the marketplace every day

Be insatiably curious

Work Smart

Act with urgency

Remain responsive to change

Have the courage to change course when needed

Remain constructively discontent

Work efficiently

Page No: 12

Act like Owners

Be accountable for our actions and inactions

Steward system assets and focus on building value

Reward our people for taking risks and finding better ways to solve problems

Learn from our outcomes -- what worked and what didnt

Be the Brand

Inspire creativity, passion, optimism and fun

Production

Bottles of Coca-Cola Zero and Coca-Cola Light

Formula
Coca-Cola formula
The exact formula of Coca-Cola is a famous trade secret. The original copy of
the formula is held in SunTrust Bank's main vault in Atlanta. Its predecessor, the
Trust Company, was the underwriter for the Coca-Cola Company's initial public
offering in 1919. A popular myth states that only two executives have access to the
formula, with each executive having only half the formula. The truth is that while
Coca-Cola does have a rule restricting access to only two executives, each knows the
entire formula and others, in addition to the prescribed duo, have known the
formulation process.
Franchised production model
The actual production and distribution of Coca-Cola follows a franchising
model. The Coca-Cola Company only produces a syrup concentrate, which it sells to
various bottlers throughout the world who hold Coca-Cola franchises for one or more

Page No: 13

geographical areas. The bottlers produce the final drink by mixing the syrup with
filtered water and sugar (or artificial sweeteners) and then carbonate it before filling it
into cans and bottles, which the bottlers then sell and distribute to retail stores,
vending machines, restaurants and food service distributors.[35]
The Coca-Cola Company owns minority shares in some of its largest
franchises, like Coca-Cola Enterprises, Coca-Cola Amatil, Coca-Cola Hellenic
Bottling Company (CCHBC) and Coca-Cola FEMSA, but fully independent bottlers
produce almost half of the volume sold in the world. Since independent bottlers add
sugar and sweeteners, the sweetness of the drink differs in various parts of the world,
to cater for local tastes.
BRANDS OF COCA-COLA WORLD OVER:
Cola is able to maintain and produce the products worldwide, maintaining a
local approach. Heart of this approach is the bottling system. Before any product is to
be consumed, it has to be produced, packaged and distributed. Coca Cola reaches
around 6 million people and thus the bottling of the products is done either by the
individual companies or by the companies owned by the company itself, so the
process of acting locally and thinking globally is a competitive advantage to coke.
This is possible with the help of around 200-300 brands of the company.
POPULAR BRANDS:

Carbonated soft drink such as Coca cola, Diet coke Fanta.

Juices and juice drinks such as Minute-Maid, Qoo, Fruitopia, Maaza, and bibo.
Sports drinks such as POWERADE and Aquarius.
Coffee such as GEORGIA Coffee, the best selling non-carbonated beverage in

Japan.
COCA-COLA

The best selling soft drink in the world, and the

most recognized and admired trademark around the globe. In

April 1985, after extensive taste testing, the company introduced
a new haste of the Coke in United States of America and Canada.
Consumers responded with an unprecedented and legendary out
Page No: 14

pouring of loyalty and affection for the original formula hence the
company has introduced the formula in the year 1985 once again
as Coca-Cola classic.
DIET COKE:
A milestone in innovative product development, diet Coke debuted the
USA in the year 1982 and began a massive international rollout in 1983 as Coca
Cola light in some market. Named advertising ages brand of the decade in 1990, diet
Coke remains the number one diet soft drink in USA and around the world.
THUMS UP:
Thums up is a leading carbonated soft dink and most trusted brand in India.
Originally introduced in 1997, Thums up was acquired by the Coca-Cola Company in
1993. Thums up is known for its strong, fizzy taste and confident, mature and
uniquely masculine attitude. This brand clearly seeks to separate the men from the
boys.
LIMCA
Lime n Lemon, derived from nimbu + jaisa, hence lime sa Limca has
been lived up to its promise refreshment and has been original thirst choice of
millions of consumers for over three decades.
SPRITE:
Introduced in USA in the year 1961, it is the 5 th best selling soft drink in the
world and 4th best selling in the Coca-Cola family.
FANTA:
Introduced in the year 1960, fanta was the 1 st soft drink other than Coca-Cola
to be marketed by the company for year. Only the European bottlers of Coca-Cola
G.M.B.H. distributed fanta lime.
MAAZA
Maaza was launched in 1976. Here was a drink that offered the same real taste
of fruit juices and was available throughout the year. In 1993, Maaza currently
dominates the fruit category..
Brand logos
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Local competitors
Pepsi is often second to Coke in terms of sales but outsells Coca-Cola in some
markets. Around the world, some local brands do compete with Coke. In South and
Central America, Kola Real, known as Big Cola in Mexico, is a fast-growing
competitor to Coca-Cola. On the French island of Corsica, Corsica Cola, made by
brewers of the local Pietra beer, is a growing competitor to Coca-Cola. In the French
region of Bretagne, Breizh Cola is available. In Peru, Inca Kola outsells Coca-Cola.

Page No: 16

However, The Coca-Cola Company purchased the brand in 1999. In Sweden, Julmust
outsells Coca-Cola during the Christmas season.[45] In Scotland, the locally-produced
Irn-Bru was more popular than Coca-Cola until 2005, when Coca-Cola and Diet Coke
began to outpace its sales.[46] In India, Coca-Cola ranked third behind the leader,
Pepsi-Cola, and local drink Thums Up. However, The Coca-Cola Company purchased
Thums Up in 1993. As of 2004, Coca-Cola held a 60.9% market-share in India. [48]
Tropicola, a domestic drink, is served in Cuba instead of Coca-Cola due to a United
States embargo. French brand Mecca Cola and British brand Qibla Cola, popular in
the Middle East, are competitors to Coca-Cola. In Turkey, Cola Turka is a major
competitor to Coca-Cola. In Iran and also many countries of Middle East, Zam Zam
Cola and Parsi Cola are major competitors to Coca-Cola. In some parts of China,
Future cola is a competitor. In Slovenia, the locally-produced Cockta is a major
competitor to Coca-Cola, as is the inexpensive Mercator Cola, which is sold only in
the country's biggest supermarket chain, Mercator. In Israel, RC Cola is an
inexpensive competitor. In Madagascar, Classiko Cola, made by Tiko Group, the
largest manufacturing company in the country, is a serious competitor to Coca-Cola in
many regions. On the Portuguese island of Madeira, Laranjada is the top-selling soft
drink. In the UK, Coca-Cola stated that Pepsi was not its main rival, but rather
Robinsons drinks.
Revenue
According to the 2005 Annual Report, [5] the company sells beverage products
in more than 195 [6] countries. The report further states that of the more than 50 billion
beverage servings of all types consumed worldwide every day, beverages bearing the
trademarks owned by or licensed to Coca-Cola account for approximately 1.5 billion.
Of these, beverages bearing the trademark "Coca-Cola" or "Coke" accounted for
approximately 78% of the Company's total gallon sales.
Also according to the 2007 Annual Report, Coca-Cola had gallon sales distributed
as follows:
Page No: 17

37% in the United States

43% in Mexico, Brazil, Japan and China

20% spread throughout the rest of the world

Sponsorship
Coca-Cola has sponsored the English Football League since the beginning of
the 2004-05 season (beginning August 2004). Other major sponsorships include
NASCAR, the NBA, the PGA Tour, NCAA Championships, the 2008 Beijing
Olympics, the NRL and the UEFA European Football Championship, as well as the
hit FOX singing-competition series American Idol. Coca-Cola is also a sponsor of the
nightly talk show on PBS, Charlie Rose.
Coca-Cola India's Corporate Social Responsibility Strategy
This case is about Coca-Cola's corporate social responsibility (CSR) initiatives in
India. It details the activities taken up by Coca-Cola India's management and
employees to contribute to the society and community in which the company
operates.
Coca-Cola India being one of the largest beverage companies in India, realized
that CSR had to be an integral part of its corporate agenda. According to the company,
it was aware of the environmental, social, and economic impact caused by a business
of its scale and therefore it had decided to implement a wide range of initiatives to
improve the quality of life of its customers, the workforce, and society at large
However, the company came in for severe criticism from activists and environmental
experts who charged it with depleting groundwater resources in the areas in which its
bottling plants were located, thereby affecting the livelihood of poor farmers,
dumping toxic and hazardous waste materials near its bottling facilities, and
discharging waste water into the agricultural lands of farmers. Moreover, its allegedly
unethical business practices in developing countries led to its becoming one of the
most boycotted companies in the world.
Page No: 18

Notwithstanding the criticisms, the company continued to champion various

initiatives such as rainwater harvesting, restoring groundwater resources, going in for
sustainable packaging and recycling, and serving the communities where it operated.
Coca-Cola planned to become water neutral in India by 2009 as part of its global
strategy of achieving water neutrality. However, criticism against the company
refused to die down. Critics felt that Coca-Cola was spending millions of dollars to
project a 'green' and 'environment-friendly' image of itself, while failing to make any
change in its operations. They said this was an attempt at green washing as CocaCola's business practices in India had tarnished its brand image not only in India but
also globally. The case discusses the likely challenges for Coca-Cola India as it
prepares to implement its new CSR strategy in the country.
Issues:
Analyze the CSR strategy adopted by Coca-Cola India.
Understand the issues and challenges faced by Coca-Cola with regard to its
sustainability initiatives in India.
Analyze the underlying reasons for the growing criticism against Coca-Cola in India
and explore ways in which the company can address this issue.
Understand the concept of green washing and discuss and debate whether CocaCola is serious about its water sustainability initiatives.
Coca-Cola India Wins Golden Peacock Global Award for Corporate Social
Responsibility
Coca-Cola India was awarded the prestigious 2008 Golden Peacock Global Award for
Corporate Social Responsibility on Feb. 15 during a global conference in Vilamoura,
Portugal. Dr. Ola Ullsten, former prime minister of Sweden, presented the award to
Page No: 19

Deepak Jolly, Vice-President, Public Affairs & Communication, Coca-Cola India, on

behalf of the Company.
The Golden Peacock Global CSR Award showcases the human face of business by
recognizing the continuing commitment of companies to behave ethically and
contribute to economic development while improving the quality of life of the
workforce, their families and the local community and society at large.
Her Excellency Ms. Nilima Mitra Ambassador of India in Portugal said that she was
very impressed with the manner in which Coca Cola is fulfilling its CSR in India in
water management and conservation especially the intervention to ensure potable
water to 1000 primary schools in India.
Commenting on the Coca-Cola India winning the award, Atul Singh, President
& CEO, Coca-Cola India, said, Coca-Cola India has always placed high value on
good citizenship and has undertaken several initiatives for community development
and inclusive growth. We are gratified to receive this global award and are humbled at
being recognized for the little contributions that we have been able to make to
preserve and protect the environment and towards community development. We are
also establishing the Coca-Cola India Foundation which will further strive to make a
positive impact on local communities. The Company remains committed to work with
stakeholders and communities across the country in its bid to contribute to mutual
growth and development.
The award recognizes Coca-Cola Indias water conservation/management and
community development initiatives. The Company has installed 320 Rain Water
Harvesting (RWH) structures in 17 states and has restored several traditional water
bodies like the Sarai Bawari and Kale Hanuman ki Bawari in
Additionally, the Company recently set a target to reach a net-zero balance
with respect to groundwater usage by 2009 and launched the Elixir of life project to
provide drinking water to nearly 30,000 children in 100 primary and panchayat
Page No: 20

schools in and around Chennai. The Company plans to provide clean drinking CocaCola India also promotes sustainable packaging through PET recycling and has
undertaken several projects in the areas of primary health, primary education and
infrastructure for local communities. The Company has undertaken these Citizenship
initiatives in partnership with government, NGOs, educational institutions. In 2006,
the World Environment Foundation (WEF) honored Coca-Cola India with the Golden
Peacock Environment Management Special Commendation Award for its world-class
environment practices.
COCA-COLA INDIA
It consists of India, Nepal, Bhutan, Sri Lanka, Bangladesh and Maldives
It is a part of Asia group.
It has won the 2002 Robert Woodruff Award
Best market share of 61%
Record 23% CSDs growth
It has won numerous marketing excellences awards.
COCA-COLA INTO INDIA:
After the exit of the Coca-Cola in 1977 from India, Parle has established its
reign over the Indian soil and been flourishing since, in leaps and bounds.
Ramesh Chauhanand Prakash Chauhan were steering the phenomenal brands like
Thumps up, Limca, Citra, Gold Spot etc., Soft drink industry was reign by these
wizards for a period of two decades.
In the 1990s came the era of changes, LPG opened up the gates for the
biggies to flood with the competencies. Coca-Cola re-entered India in the year 1993,
yet another time. Prior to the entry to Coca-Cola, Pepsi was doing a big cats business
and has been eating the biggest pie of the cake every now and then.
In 2003, Coca Cola India pledged to invest a further US $100 million in its
operations. Coca Cola business directly employs approximately 6000 Local people in
India. In India, the company indirectly creates employment for more than 125000
people in related industries through their vast procurement, supply and distribution

Page No: 21

system. Virtually all the goods and services required to produce and market Coca
Cola locally are made in India.
COCA COLA INDIA VALUES:
Leadership: To courage to shape a better future.
Passion: Committed in heart and mind.
Accountability: If it is to be, its up to me.
Innovation: Seek, imagine, create and delight.
Integrity: Be real
Collaboration: Leverage collective genius
Quality: What we do, we do well.

COCA COLA TODAY:

Today Coca Cola spread all over India. The following are the various bottling
operations in India.
Table2.1:
>

COBO (Company Own Bottling Operation)

>

FOBO (Franchise Own Bottling Operation)

>

Co-Pack

32

>

Cadbury Schweppes

07

TOTAL

25
27

: 91

PROGRAM OBJECTIVE AND PHILOSOPHY

Page No: 22

To recognize and develop regional or local talent and ensure that these
talents graduate as full-pledged professionals to play a major role in
organizational development.
SWOT ANALYSIS
SWOT ANALYSIS is to suggest ways in which the organization can get
profits from opportunities and strengths and shield itself against weaknesses ant
threats.
Table 2.2: SWOT ANALYSIS
OPPORTUNITIES

THREATS

STRENGHTS

WEAKNESSESS

Growing markets

Economic

Strong R&D

Customers

Positive

slow down
Buyers

Dealers force

complaints
Long cycle time

Low cost

Service recovery

images
Moving

brand

market
to

high

technology
UNIQUE ACHIEVEMENTS
VARIOUS BRANDS OF COCA-COLA IN INDIA
1) Coca-Cola

2) Thums-Up

3) Sprite

4) Limca

5) Fanta

6) Kinley Water

7) Diet Coke

8) Minute-Maid Pulpy Orange

They manufacture 200ml and 300ml returnable glass bottles pack

of the flavors Thums-up, Coca-Cola, Fanta, Sprite, Limca and Kinley Soda (300
ml only).The plant has one manufacturing line for aerated products. The
manufacturing line has the capacity of 600BPM.

In 1998, Hindustan has taken

over from Pinakini Beverages and ever since the entry of multinational in the
business. The investments in the industry grew at a faster rate and spending in
the market also increased drastically.
Lots of efforts made by the company in marketing its products in the
remote villages, like free distribution vehicles providing to whole sellers have
paid dividends as the company has 70% of its market spread in the rural belt.

Page No: 23

They distributed the products, both own and sourced, to Nellore Raw
districts and supply productions to distributors. The company has received
several appreciations and prestigious awards for both quality and sales and the
company stood-up best in the year 1994-95 in system of Coca-Cola India, which
is record of sorts for rural bottling company.
Hindustan Coca-Cola Beverages Private Limited is operating in about
200 countries all over the world. Through the world there are 400 brands
produced by the company since 118 years with a turnover of $ 120 billion per
annum

Page No: 24

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED

(HCCBPL), VISAKHAPATNAM:

HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED (HCCBPL),

VISAKHAPATNAM was come into existence after VBC Industries (which was a
franchised bottling unit of Parle Group) was acquired by Coca-Cola India on 10 th
October 1998. This unit serves the districts of Visakhapatnam, Vizianagaram, and
Srikakulam.
The present Visakhapatnam unit is under Asia Zone of India Division. In India,
there are around 55 units (plants) and in Andhra Pradesh, there are 5 units and they
are at Visakhapatnam, Vijayawada, Hyderabad, Nellore and Sri Kalahasti. These
plants are concerned with the production, sales, marketing, bottling and customer care
of the Coca-Cola Company.
After acquiring the unit, the company is trying to mould the organization so
that it becomes consistent with the Coca-Cola work culture. The top-level

Page No: 25

management has already been professional zed and change is expected at the middle
level also. A total re-organization is around the corner.
An Area General Manger heads Bharat Coca Cola Bottling South East Pvt Ltd.
The various departments are the finance department, the sales department, the plant,
the quality assurance department and the personnel department.

VISAKHAPATNAM PLANT A BRIEF HISTORY:

It was started in the year 1967 when the great visionary Mr.M.V.V.S.Murthy
had started small business of selling soft drinks in Visakhapatnam town. It was started
as a small unit in the industrial estate with as many as of employees, they, being his
partners.
As the days went, the same plant was made into big plant with the help of
government and it was called the Visakha Bottling Company(VBC). This
constituted a small number of employees who were the loyalists of the great
visionary.
All this was further improved with the help of taking up the task of becoming
the sole franchise of the Parle products. Then it came to be called as the Gold Spot
Company. They were manufacturing all products of the Parle and they were the sole
distributors of the greatest brands like Thumsup, Limca, Citra, and Gold Spot etc.
The era of takeovers started in 1996 and Coke came in touch with VBC. The
deal was stuck and the coca-cola acquired it in the year 1998. From then on, it became
a sole authority to the property of Coke and since then it was operating as a fully
owned company.
This plant operates with 107 Staff, 10 Managers, 165 Plant Workers, 250
Contract Workers in peak season and 185-180 Contract workers in other seasons. The
plant is located at the picturesque location of Manchukonda gardens and it runs to
around 3 acres of land.

Page No: 26

The plant layout is given which depicts the extent of care taken by the
management to have a very pollution free area and an enjoyable arena to work in. The
entire plant is divided into four segments
.
1. Water treatment plant
2. Syrup preparation plant
3. Carbon dioxide preparation plant
4. Administration

1. THE PLANT:
The entire process in HCCBPL can be simplified and presented as below

Bottle Washer Unit

Raw
Syrup
Tank

Read

Para

Mix

Syrup

Machin

Tank

Filler

Godown

Page No: 27

Raw Syrup Room:

The Raw Syrup is obtained by mixing water and sugar at 85* C. This is done in a
large cylindrical tank of 6KL Capacity.
Ready Syrup Room:
The ready syrup is obtained by agitating the essence (which is kept in an essence
mix tank) with the raw syrup. The essence is imported from Atlanta and its
formulation is a tightly kept secret.

CIP Room: CIP stands for clean in point. There are two cylindrical tanks of capacity
2 KL each. One is a hot caustic tank maintained at 60*C and the other a hot water
tank kept at 80*C. These solutions are used for cleansing the raw syrup and ready
syrup tanks.

The temperature, water/solution level, etc can be maintained and

controlled by the automated CIP system. Before production starts each day, the raw
syrup tank and the ready syrup tank is cleaned in 3 steps.
1. Cool Water Rinsing
2. Hot water Circulation

- 05 min
- 10 min

3. Cool Water Rinsing

- 05 min

At the end of the day, the tanks are again cleaned in 5 steps.
1. Cool Water Rinsing

- 05 min

2. Hot Caustic Circulation

- 10 min

3. Cool Water Rinsing

- 10 min

4. Hot Water Circulation

5. Cool Water Rinsing

- 15 min
- 10 min

The Raw Syrup Room, Ready Syrup room and CIP are manned by five people.

Page No: 28

Bottle Washer:

This is a huge automated machine with five compartments.

Pre-rise Compartment.
Pre-wash Compartment
Soaker Compartment.
Hydro Compartment
Pre-Final Fresh Compartment
The bottles that return from the market are initially checked for damages and
cracks. If found fit, they are put in the bottle washer where they are thoroughly
cleaned. It then goes to the testing area where frontal and bottom testing is done.
The bottles are checked for faded labels, chipped mouth, cracks due to thermal
shock, bruises due to washing, residual liquid from washing and other foreign
debrief.
Filler and Para-mix Machines:
The Ready Syrup reaches the Para-mix Machine where it is cooled by the refrigerant
ammonia. The solution is carbonated and sent to the Filler Machine. The Filler
Machine fills the bottles and caps them at the rate of 600 bottles/min.
The bottles are coded using a coding machine where the price, batch and date
of manufacturing are imprinted. The filled bottles are finally checked for loose
crowns, rising bubbles, cracks and foreign particles, the level of the liquid etc.
The filled bottles are shifted to the go down which has a total capacity of
30000 crates. At any time, the go down will have a stock of 20000 to 25000 crates.
OTHER SECTIONS
Generator Room:
Two high-powered generators of 250 KVA and 125KVA are used for
providing energy.

Page No: 29

Chilling Plant:
It supplies ammonia, which acts as the refrigerant.
Water Treatment Plant (WTP) :
Water is obtained from pipelines and bore wells. This water is chemically
treated.
Boiler Plant:
It provides steam to Bottle Washer Unit, Raw Syrup Room and Ready Syrup
Room.
2. PRODUCTION DEPARTMENT:
The production department is headed by a Factory Manager who reports
directly to the Area General Manger (AGM).
One Engineer is for the inside battery limit i.e., Plant Equipments and Maintenance
and the second Engineer is for outside battery limits; for the utilities like Generator
Room, Boiler, Water Treatment Plant and the Maaza unit which is located at some
distance. These four people report to the Plant Manger.
There are 165 workers in the plant, which includes ladies, who are otherwise engaged
in housekeeping into the production line. Depending on the demand, the company
operates three types of shifts.
1. General Shift

- 8 am 5 pm

2. 2 Shifts

- 6 am 2 pm and 2 pm 10 pm

3. 24 hours

- 6 am 6 pm and 6 pm 6 am

Women are employed only in the general shift (8 am 5 pm) or the A shift (6
am 2 pm). In other shifts, casual labors are used.
Page No: 30

PRODUCTION PROCESS
The company has installed a semi automatic plant layout. The
present capacity of the plat is 600 crate / hr i.e., 4,800 crates per shift of 8 hr.
During the months of March to June due to peak demand, the plant is filled with
full capacity i.e., 5,500 crates per shift, with an extended shift of 12 hr. During
the other months of production per shift is 3, 3000 crates per shift.
STAGES IN PRODUCTION PROCESS
1. Water Treatment 2.Raw Syrup Making 3.Ready Syrup Making
4. Bottling Process

5.Quality Control

PRODUCTION SCHEDULE
The production schedule fixed daily by taking into consideration the
market demand, the availability of empty bottles and the inventory position of
filled bottles. The storage capacity of the go down is at present 90,000 crates,
which also limits the production schedule. The production schedule for each
brand is fixed daily. Production is generally carried out in 2 shifts. In summer,
the demand reached its peak and production will be extended 12 hr shifts.
RAW MATERIALS
Raw materials are the flavors essence concentrate supplied by Parle,
sugar and water. Sugar purchased in bulk from the wholesale sugar market. The
requirement of sugar for 20-25 production days kept in stock and requirement
for a month indented in advance. Water required met by municipal supply,
Water from bore well and tube wells also used when required. Water further
treated with chemicals. Caps are supplied by specialized firms like L&T and
metal box India Ltd.,
INGREDIENTS
1. Water

2.Sugar

3.Carbon-dioxide (CO2)
Page No: 31

4. Flavour (for soda only water, CO2 used)

3. QUALITY ASSURANCE DEPARTMENT:
A Plant Manger heads the Quality Assurance department. In addition to him,
there are seven chemists. The Deputy Manager reports to the Plant Manager.
The department tests and controls the quality of waters, caustic solution and
the final beverage. The final beverage is tested for gas and brix i.e., the sugar content.
Samples are taken for every half an hour. Any deviation from the specified
standards is reported and rectified immediately. In the micro testing lab, the water and
beverage is tested for contamination. If any indication of contamination is found out,
the QA department has the right to stop production immediately.
In the general lab, the products are tested for flavor and freshness. In addition
to this, the department does as shelf test. Five bottles are collected per day and they
are kept in the shelf for a period of three months. Later they are tested. Any
complaints from the market are promptly attended to. The batch number, months are
noted and a corresponding sample is tested from the shelf. Any complaint from the
market is received by the Sales team who in turn informs the QA department. One
chemist is in charge of spot-checking of fountains.
The Deputy General Manager or any of his subordinates in the QA department
have the right to stop production and order a sterilization process for the entire plant.
They can even bypass the plant manager in this regard.
The department sends daily reports to the AGM and the Plant Manger. In case
of any urgent need, he meets the AGM personally and sorts out the issue.
4. SALES DEPARTMENT:
The sales department has a general Sales Manager and three Associate Sales
Managers. Of the three Sales Managers, one person is in charge of city sales while
the others look after district and Orissa sales. All of them report to the AGM directly
who interacts with the Sales Department on a daily basis and virtually leads the team.

Page No: 32

District Sales
In addition to the Sales Manager, there is a Deputy Sales Manger, 4 Assistant
Sales Manger and below them 2 salesmen each. Each distributor has a target, which
is fixed by the Sales Manager in consultation with the distributor.

From the

distributor, it reaches the retailer outlet. The Company Sales Force helps the retailers
and distributors achieve their targets through promotions and other incentives.
The sales Force in far locations report to the Sales Manger once a week.
Based on their reports, new incentive schemes and offers are made. The previous
weeks performance is evaluated and targets for the next week are discussed.
City Sales:
Under the Sales Manager (city), there are supervisory staff and 113-field force.
The company has no distributors in the city of Visakhapatnam. They directly supply
to the retailers. There are twenty routes with a truck covering each route. Sales man
and two sales helpers accompany each truck. There is a Sales Officer for every two
routes. He moves around on a bike and sees to it that all outlets are covered. Any
urgent messages are communicated to the Sales Force through mobiles.
There are approximately 5600 outlets in Visakhapatnam city. In loop areas
i.e., areas where the company truck cannot go, a fat dealer is appointed. He supplies
to the remote areas and get about 5% discount on the total sales.
Bottles and crates are provided to a retailer after a certain deposits is paid. In
peak season when there is excess demand, crates are also provided on loan. This does
not involve money transactions and retailers may take 10 crates on loan, which he
will return later. Coolers are installed at retail outlets depending on the retailers
requirement and sales volume. The sales man on his visit sees to it that the coolers
are properly maintained. Any serious problem is rectified by the Service Engineers
who are on contract basis with the company.
Targets are fixed and the Sales men and sales helpers get incentives for
achieving and exceeding the targets. On returning to the Sales Depot, he submits the
Page No: 33

load sheets, the Cash Sales Invoice, Cash Detail Form and the Settlement Sheet. The
Sales Manager interacts with his sales team in the depot every morning where the
latest market situation is discussed. The Sales Manager does not hand over charge to
any one person during his absence. The AGM manages the show.

Recruitment

and Selection to this department is done by the Personnel Department. There is no

regular training program and the department is well staffed.
A person who reports to the Sales Manager handles Advertising and
merchandising. The budget is fixed at Bangalore. This is split up and allocated to
different departments. The artwork, the location, the type of display etc., is decided
by the advertising in the charge. The medium used includes canopy, glow signs,
hoardings, paints etc.

The company provides for electricity charges in selected

outlets.
5. Customer Service Support System:
There is Customer Service Support System (CSSS) which functions under the
CSSS for entire Andhra Pradesh, locally it reports to the AGM. In the soft drinks
industry, the customer and consumer is defined separately. The customer is one who
resells for profit. This includes the retailer and the distributor. By consumer, they
mean the end user of the products.
The CSSS studies the distribution network and suggest improvements where
necessary. The viability of existing routes, developing new routes, distributing and
merchandising planning are all functions of CSSS. It even suggests training programs
for the Sales Force depending on the need. The function of CSSS can be briefly
summed up as Managing the Middlemen.
Consumer Response Co- Ordination Unit (CRC):
The Consumer Response Co-Ordination Unit has the Sales Manager. This unit
is temporarily handled by the CRSS.

The CRC unit receives complaints and

grievance from the market either through phone calls or through the sales force. It

Page No: 34

sends regular reports to the Corporate Office. These reports are useful for dealing
with similar situations arising in different parts of the country.

DISTRIBUTION PATTERNS
Chart 2.1: Direct operation
Plant

Depot (Ko)

Retailers

Consumers

Area marketing

Indirect operation

Plant

C&F

Super
stockiest

Distributors

Customers

Consumers

Route Agents

6. FINANCE DEPARTMENT:
A Finance Manager heads the Finance Department. This is a very powerful
post in the company and the Finance Manager is the second in command of the unit.
The entire plant and operations keep in abreast of their daily functioning, while the

Page No: 35

AGM mainly attends to the sales functions. The Finance Department can be broadly
segmented into two, the accounting sections and the payables/Receivables i.e.
working Capital. In addition to these sections like Shipping Stores, Purchase,
Administration and taxes report to the FM. The annual budgets are prepared in unit
level Regional Office. The FM makes allocation for the different

departments in

consultation with the department heads.

SOURCES OF FINANCE
Coca- Cola being an MNC has a wide network and market for its
products worldwide. The finance to the company comes from the corporate
office and financial institution abroad. The units which have been setup in India
are subsidiary concerns of the group. These units mobilize their own funds and
pay a lumps amount to the corporate group for getting technology and the
product specification to be manufactured in the company, for which the
formulation comes from the office situated abroad.
As these units are franchisee units of the company, the owners of these
companies, have to perform individually in establishing the market and in the
distribution of the products in the areas specified. These companies are generally
situated in a Economical Processing Zones (EPZs) are industrial units where by
they get subsidies in various forms from the Govt. as well as financial
institution. The unit under study has secured loans from the central Govt. and
APEDA (Ministry of Commerce) for setting up its unit at Vizag
The Finance Department can be broadly segmented into two, the
accounting sections and the Payables or Receivables i.e., Working Capital. In
addition to these sections like Stores, Shipping, Purchase, Administration and
taxes report to the Finance Manager. The annual budgets are prepared in unit
level Regional Office. The Finance Manager makes allocations for the different
departments in consultation with department heads.

Page No: 36

7. STORES:
There is a Stores In-charge and four other people to assist him. All material
used for production are under the Stores In-charges once they enter the company
premises. This includes sugar, essence, crown etc. The Stores Department reports to
the Finance Manager and daily reports are sent to him. Materials are stocked in
accordance with the production schedule and sales target.
8. SHIPPING:
This functions under the Shipping In-charge who notes the full position in go
down. These units report to the Finance Manager.
9. PURCHASE:
This section functions with two people including the purchase In-charge who
reports to the Finance Manager. The plant informs the store of the requirements
that in turn make a purchase matter whether concerning the plant request to the
Purchase Department. Every purchase matter whether concerning the plant or
office is handled by the Purchase Department.
10. PERSONNEL DEPARTMENT:
Matters like recruitment, selection, wage structure, etc is decided at
Hyderabad. The respective department heads sanctions leaves for the staff. The
department is conducting training programs in computers and Spoken English so as
to better equip its people to handle the change, the organization is undergoing.
Table 2.3: MAN POWER PARTICULARS
S.No
1.
2.
3.

Category
Permanent
Temporary
Contract Labor
Total

Numbers
272
60
200
532

Page No: 37

The total manpower is 532 and there are no Bloc workers in the organization.
Permanent workers are workmen (165) staff (107), woman associates are permanent
(7) temporary (2) members, managers are (9) and market developers are (43)
members in the organization.
Organizational Structure
ORGANISATION CHART:
Organization structure is a basic framework, which the managers decisionmaking behavior takes place. Structure basically deals with relationships.
Organization structure is the pattern of relationships among various components or
parts of the organizations. This prescribes the relationship of various activities and
positions.
Organization chart is the vital tool for providing information about
organization relations.
ORGANISATION

STRUCTURE

OF

HINDUSTAN

COCA-COLA

BEVERAGES PRIVATE LIMITED:

The organization structure plays a vital role in the smooth functioning of the
Hindustan Coca-cola beverages Pvt. Ltd. Visakhapatnam. The organization chart for
the firm depends on the customer coverage.
The personnel department is under the main company i.e., Hindustan CocaCola Beverages Private Limited, Visakhapatnam. It is a bottling unit, so in the
bottling unit, there are only three departments i.e., accounts, production, and
marketing and human resource.

Page No: 38

Organizational Structure

A.G.M
.M

Plant
Manager

Quality
Manager

Finance
Manager

HR
Manager

Sales
Manager
Assistant
Sales
Manager

Assistant
Manager
Senior
Officer

Assistant
Manager
Senior
Executive

Executive

HRD ORGANIZATION CHART (VISAKHAPATNAM UNIT)

HR MANAGER
(N.v.s.Ramana
murty) )))murt
hy)

HR SALES
EXECUTIVE
(S.Ismail)

HR EXECUTIVE
(S.Srinivasa rao)

Human Resource Management Philosophy & Policy

HR
EXECUTIVE
(G.Srinivasa
Rao)

Page No: 39

The Coca-Cola Company fosters an environment that is productive, healthy,

and safe for all its employees. The company has policies to help and guide the
behaviors of the employees that shape the work at the end.
The HRD has staff relationship with other depots. The company is basically a
production and sales based. Therefore it mainly looks after the core areas of the org
that is sales, marketing, logistics and production departments. The HR dept is
responsible for advising all ranges from managing Director to the lowest live
supervisor. They also perform various functions of employee Training development.
AWARDS

COCA-COLA honored with best Management Award on Labour day,

may 1st,2005 by Andhra Pradesh Government(for its people management

practices)

PATNA unit wins (CSR) Corporate Social Responsibility award for the

year 2004-2005 by J.M.Institute of Speech and Hearing, Patna. (for continued

support provided towards uplifting of physically challenged children)

HCCBPL has been honored the Best Private Company in State by the

Government of Tamil Nadu at Chennai on 16th Aug 2004.

All India Division COBOs are now ISO 14001 certified.

Page No: 40

CONCEPT OF PERFORMANCE APPRAISAL

PERFORMANCE APPRAISAL is the process of appraising the
performance of individuals, groups and organizations are a common practice of all
societies. In some instances these appraisal processes are structured and formally
sanctioned, in other instances they are an informal and integral part of daily activities.
Teachers evaluate the performance of students, bankers evaluate the performance of
creditors, parents evaluate the behavior of their children and all of us, consciously or
unconsciously evaluate our own actions from time to time. In social interactions,
performance is conducted in a systematic and planned manner to achieve widespread
popularity in recent years.
Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and
also the future potential of the employee. Its aim is to measure what an employee
does.
DEFINITION
"Performance appraisal is the systematic, periodic and an impartial rating of an
employees excellence in the matters pertaining to his present job and his potential for
a better job." Performance appraisal is a systematic way of reviewing and assessing
the performance of an employee during a given period of time and planning for his
future. Performance appraisal is defined as the systematic description of employees
job relevant, strength, weakness.
Performance appraisal may be conducted once in every 6 months or once in a year.
The basic idea of the appraisal is to evaluate the performance of the employee, giving
him a feed back. Identify areas where improvement is required so that training can be
provided. Give incentives and bonus to encourage employees etc.

Page No: 41

HISTORY OF PERFORMANCE APPRAISAL

Its roots in the early 20 th century can be traced to Taylors pioneering time and
motion studies as a distinct and formal management procedure used in the evaluation
of work performance, appraisal really dates from the time of the second world warnot more than 60 years ago.
Performance appraisal systems began as simple methods of income justification.
That is, appraisal was used to decide whether or not salary or wage of an individual
employee was justified.
The process was firmly linked to material outcomes. If an employees performance
was found to be less than ideal, a cut in a pay would follow. On the other hand, if
their performance was better than the supervisor expected, a pay rise was in order.
Little consideration was given to the developmental possibilities of an appraisal, it
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.
It was felt that employees with roughly equal work abilities could be provided with
same amount of money, but they had different levels of morale, motivation &
performance. So basically the payment structure was focused on the amount of work
rather than the outcome. Morale and self-esteem was the issue which had a major
impact on the performance of different individuals.
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 the
performance appraisal, as it is known today, began from that time.

Page No: 42

OBJECTIVES OF PERFORMANCE APPRAISAL

To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior
subordinates and management employees.
To diagnose the strengths and weaknesses of the individuals so as to identify
the training and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the
organization.
Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
To reduce the grievances of the employees
TABLE 3.1: TRENDS IN PERFORMANCE APPRAISAL:
Item
Terminology
Purpose

Former Emphasis
Merit-rating
Determine wage increase,

Present Focus
Performance appraisal
Development of the individual,

Application

Promotion, transfer, lay off.

For rank and file workers

improved job performance.

For managerial and technical

Factors rated

Personal traits

personnel.
Performance,

Techniques

accomplishments.
Rating scales with emphasis Mutual goal-setting,
upon scores

result

or
critical

incidents, group appraisal.

PURPOSE OF PERFORMANCE APPRAISAL

Page No: 43

1. Feedback to the employee

Performance appraisal is beneficial because it provides feedback to the
employee about his performance. It identifies the areas for improvement so that
employee can improve itself.
2. Training and development
Due to performance appraisal it is easy to understand what type of training is
required for each employee to improve himself accordingly training programs can be
arranged.
3. Helps to decide promotion
Performance appraisal provides a report about the employee. Based on this
report future promotions are decided, incentives, salary increase is decided.
4. Validation of selection process
Through performance appraisal the HR department can identify whether any
changes are required in the selection process of the company normally a sound
selection process results in better performance and positive appraisal.
5. Deciding transfers and lay off of the worker
Employee with specific talent can be transferred to places where their talents
are utilized properly; similarly decisions regarding termination of employees depend
upon performance appraisal reports.
6. Human resource planning and career development
Companies can plan for future vacancies at higher levels based on performance
appraisal reports. Similarly career planning can be done for the employee on the
performance appraisal report.

Page No: 44

IMPORTANCE OF PERFORMANCE APPRAISAL

Performance appraisal is an essential and inescapable managerial activity.
Appraisal is necessary for all important decisions relating to people, such as
placement and promotion, remuneration and reward, training and development, as
well as long-term man power planning and organization development.
In recent years, efforts have been made to use appraisal systems for
motivation, for more effective communication, for strengthening superior-subordinate
relationships, for goal setting and work planning and for improving the total
performance of the organization. But in spite of its importance, uneasiness about
appraisal has been a long-standing feature of management. There is no doubt during
the past three decades, many developments have taken place and many innovations,
have been made in managerial appraisal system. Still, many issues remain unresolved.
Available literature on the subject reveals than even in the western
countries, where systematic appraisals have been widely practice over a much longer
period than in India and where a fair amount of empirical as well as theoretical
research on the relevant issues has been conducted, serious doubts continue to persist
about various aspects of appraisal

Approaches to Performance Development

Performance appraisal - Traditional approach

Page No: 45

Traditionally, performance appraisal has been used as just a method for

determining and justifying the salaries of the employees. Than it began to be used a
tool for determining rewards (a rise in the pay) and punishments (a cut in the pay) for
the past performance of the employees.
This approach was a past oriented approach which focused only on the past
performance of the employees i.e. during a past specified period of time. This
approach did not consider the developmental aspects of the employee performance
i.e. his training and development needs or career developmental possibilities. The
primary concern of the traditional approach is to judge the performance of the
organization as a whole by the past performances of its employees
Therefore, this approach is also called as the overall approach. In 1950s the
performance appraisal was recognized as a complete system in itself and the Modern
Approach to performance appraisal was developed.
Performance appraisal - Modern approach
The modern approach to performance development has made the
performance appraisal process more formal and structured. Now, the performance
appraisal is taken as a tool to identify better performing employees from others,
employees training needs, career development paths, rewards and bonuses and their
promotions to the next levels.
Appraisals have become a continuous and periodic activity in the organizations.
The results of performance appraisals are used to take various other HR decisions like
promotions, demotions, transfers, training and development, reward outcomes. The
modern approach to performance appraisals includes a feedback process that helps to
strengthen the relationships between superiors and subordinates and improve
communication throughout the organization.
METHODS OF APPRAISAL

TRADITIONAL METHODS

MODERN METHODS
Page No: 46

1. Checklist

1. Management by objective

2. Graphic rating scales

2. 360 degree appraisal

3. Forced choice method

4. Forced distribution method

3. Assessment centers
4.Behaviourally anchored rating

scales
5. Critical incident method
6. Performance tests and observations
7. Essay method
TRADITIONAL METHOD
1. CHECKLIST
A checklist of statements on the traits of the employee and his/her job is
prepared in two columns via, a yes column and a No column. All that rater
should do is tick the yes column if the answer to the statement is positive and in
column No if the answer is negative. After Ticking off against each item, the
rater forwards the list. To the HR department where the actual assessment of the
employee takes place. The HR department assigns certain points to each Yes the
total score is arrived at. When points are allotted to the checklist, the technique
becomes a weighed checklist.
2. GRAPHIC RATING SCALES
This is the simplest and most popular technique for appraising employee
performance. Graphic rating scale refers to using specific factors to appraise people.
The entire appraisal is presented in the form of a chart. The chart contains certain
columns which indicate qualities which are being appraised and other columns which
specify the rank to be given.

Page No: 47

TABLE 3.2: E.g. Employee A

Quality of work

Quantity of work

Intelligence

Excellent
Very good
Good
Satisfactory
Poor
The senior has to put a tick mark for a particular quality along with the ranking.
Such charts are prepared for every employee. According to the department in which
they work. Sometimes the qualities which are judged may change depending upon the
department.
3. FORCED CHOICE METHOD
This approach is known as the forced choice method because the rater is
forced to select the statements, which are readymade. The rater is given a series of
statements about an employee. These statements are arranged in block of two or
more, and the rater indicates, which statement is most or least descriptive of the
employee. As in the checklist method, the rater is simply expected to select the
statements that describe the rate. The HR department does the actual assessment.
4. FORCED DISTRIBUTION METHOD
The forced distribution method seeks to overcome the problem by
compelling the rate to distribute the rates on all points on the rating scale. The
second method operated under an assumption that the employee performance level
conforms to a normal statistical distribution. It is assumed that employee
performance levels conform to a bell-shaped curve. For example, 10% at the top
end of the scale is excellent, 20% good, 40% average, 20% of the lowest grade is
below average.

Page No: 48

5. CRITICAL INCIDENTS METHOD

The approach focuses on certain critical behaviors of an employee that
make all the difference between effective and non-effective performance of a job.
The superiors as and when they occur record such incidents.
6. PERFORMANCE TESTS AND OBSERVATIONS
With a limited number of jobs, employee assessment may be based upon a
test of knowledge or an actual demonstration of skills. The test must be reliable
and validated to be useful. Even then, performance tests are apt to measure
potential more than actual performance.
7. ESSAY METHOD
Under this method the supervisor makes a free form, open ended appraisal of an
employee in his own words and puts down his impressions about his impressions
about the employee. The description is always as factual and concrete as possible.
No attempt is made to evaluate an employee in a quantitative manner. The
strength or the essay method depends on the writing skills and analytical ability of
the rater. The essay method can consume much time because the rater must collect
the information necessary to develop the essay and then he/she must write it.
MODERN METHODS
1. 360 DEGREE APPRAISAL
The 360- degree technique is understood as systematic collection of
performance data on an individual or group, derived from a number of stakeholders.
The stakeholders being the immediate supervisors, team members, customers, peers,
and self. Any one who has useful information on how an employee does the job may
be one of the appraisers. It facilitates greater self development of the employee. It
enables an employee to compare his/her perceptions about self with perceptions of

Page No: 49

others. By design, the 360 degree appraisal is effective in identifying and measuring
interpersonal skills, customer satisfaction, and team building skills.

2. MANAGEMENT BY OBJECTIVES (MBO)

The MBO concept as was conceived by Mr. Drucker reflects a management
philosophy that stress goals rather than methods and which values and utilizes
employee contribution. It is result oriented. Application of MBO in the field of
performance appraisal in four steps:
A. To establish the goals each subordinate is to attain. The goals typically
refer to the desired outcome to be achieved; these goals can then by used
to evaluate employee performance.
B. Setting the performance standard for the subordinated in a previously
arranged time period. As subordinates perform they know fairly well there
is to do, what has been done, and what remains to be done.
C. The actual level of goal attainment is compared with the goals that were
not met upon. The evaluator explores reasons for the goals that were not
met and for the goals that were exceeded. This step helps determine
possible training needs.
D. Establishing new goals and, possibly, new strategies for goals not
previously attained. Subordinates who successfully reach the established
goals may be allowed to participate more in the goal setting process the
next time. The process is repeated.

Page No: 50

3. ASSESSMENT CENTERS
An assessment centre is a central location where managers may come together to
have their participation in job related exercises evaluated by trained observers. The
principle idea is to evaluate managers over a period of time, say one to three days, by
observing their behavior across a series of select exercises or work samples. Assesses
are requested to participate in in-nascent exercise work groups(with leaders), role
playing, and other similar activities, which require the same attributes for successful
performance, as in actual job. Self appraisal and peer evaluation are also throw in for
final rating. The characteristics assessed in a typical assessment centre include
assertiveness, persuasive ability, communicating ability, planning and organization

Page No: 51

ability, self confidence, resistance to stress, energy level, decision making, sensitivity
to the feeling of others, administrative ability, creativity, and mental alertness.
8. BEHAVIORALLY ANCHORED RATING SCALES (BARS)
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique
which combines the graphic rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of behavioral statements
describing important job performance qualities as good or bad (for eg. the qualities
like inter personal relationships, adaptability and reliability, job knowledge etc).
These statements are developed from critical incidents.
In this method, an employees actual job behavior is judged against the desired
behaviour by recording and comparing the behavior with BARS. Developing and
practicing BARS requires expert knowledge.
Developing BARS typically requires five steps
1. Generate critical incidents

Ask persons who know the job (jobholders

and / or supervisors) or describe specific illustrations (critical incidents) of

effective and ineffective performance.
2. Develop performance dimensions

Have these people cluster the incidents

into a smaller set of (5 or 10) performance dimensions, and define each

dimensions such as salesmanship skills.
3. Reallocate incidents

To verify, have another group of people who also know

the job reallocate the original critical incidents. They get the cluster definitions
(from step 2) and the critical incidents and must reassign each incident to the
cluster they think it fits best. Retain a critical incident if some percentage
(usually 50% to 80%) of this second group assigns it to the same cluster as did
the first group.

Page No: 52

4. Scale The Incidents This second group then rates the behavior described by
the incidents as to how effectively or ineffectively it represents performance
on the dimensions (7 to 9 point scales are typical).
5. Develop a final instrument
Choose about six or seven of the incidents as the dimensions behavioral
anchors.
THE APPRAISAL PROCESS
The appraisal process begins with the establishment of performance
standards; these should have evolved out of job analysis and the job description.
CHART 3.1:

Page No: 53

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the
standards which will be used to as the base to compare the actual performance of the
employees. This step requires setting the criteria to judge the performance of the
employees as successful or unsuccessful and the degrees of their contribution to the
organizational goals and objectives. The standards set should be clear, easily
understandable and in measurable terms. In case the performance of the employee
cannot be measured, great care should be taken to describe the standards.
COMMUNICATING THE STANDARDS
Once set, it is the responsibility of the management to communicate the
standards to all the employees of the organization.
The employees should be informed and the standards should be clearly explained
to the. This will help them to understand their roles and to know what exactly is
expected from them. The standards should also be communicated to the appraisers or
the evaluators and if required, the standards can also be modified at this stage itself
according to the relevant feedback from the employees or the evaluators.
MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the Performance appraisal process is measuring the
actual performance of the employees that is the work done by the employees during
the specified period of time. It is a continuous process which involves monitoring the
performance throughout the year. This stage requires the careful selection of the
appropriate techniques of measurement, taking care that personal bias does not affect
the outcome of the process and providing assistance rather than interfering in an
employees work.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE
The actual performance is compared with the desired or the standard
performance. The comparison tells the deviations in the performance of the
employees from the standards set. The result can show the actual performance being
Page No: 54

more than the desired performance or, the actual performance being less than the
desired performance depicting a negative deviation in the organizational performance.
It includes recalling, evaluating and analysis of data related to the employees
performance.
DISCUSSING RESULTS
The result of the appraisal is communicated and discussed with the employees on
one-to-one basis. The focus of this discussion is on communication and listening. The
results, the problems and the possible solutions are discussed with the aim of problem
solving and reaching consensus. The feedback should be given with a positive attitude
as this can have an effect on the employees future performance. The purpose of the
meeting should be to solve the problems faced and motivate the employees to perform
better.
DECISION MAKING
The last step of the process is to take decisions which can be taken either to
improve the performance of the employees, take the required corrective actions, or the
related HR decisions like rewards, promotions, demotions, transfers etc.
CHALLENGES OF PERFORMANCE APPRAISAL
An organization comes across various problems and challenges Of Performance
Appraisal in order to make a performance appraisal system effective and successful.
The main Performance Appraisal challenges involved in the performance appraisal
process are:
Determining the evaluation criteria
Identification of the appraisal criteria is one of the biggest problems faced by the
top management. The performance data to be considered for evaluation should be
carefully selected. For the purpose of evaluation, the criteria selected should be in
quantifiable or measurable terms
Page No: 55

Create a rating instrument

The purpose of the Performance appraisal process is to judge the performance of the
employees rather than the employee. The focus of the system should be on the
development of the employees of the organization.
Lack of competence
Top management should choose the raters or the evaluators carefully. They should
have the required expertise and the knowledge to decide the criteria accurately. They
should have the experience and the necessary training to carry out the appraisal
process objectively.

Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect (i.e. one trait
influencing the evaluators rating for all other traits) etc. may creep in the appraisal
process. Therefore the rater should exercise objectivity and fairness in evaluating and
rating the performance of the employees.
Resistance
The appraisal process may face resistance from the employees and the trade unions
for the fear of negative ratings. Therefore, the employees should be communicated
and clearly explained the purpose as well the process of appraisal. The standards
should be clearly communicated and every employee should be made aware that what
exactly is expected from him/her.
LIMITATIONS OF PERFORMANCE APPRAISAL
The following are the limitations of performance appraisal
1. HALO EFFECT
In this case the superior appraises the person on certain positive qualities only.
The negative traits are not considered. Such an appraisal will no give a true picture
about the employee. And in some cases employees who do not deserve promotions
may get it.

Page No: 56

2. HORN EFFECT :In this case only the negative qualities of the employee are
considered and based on this appraisal is done. This again will not help the
organization because such appraisal may not present a true picture about the
employee
3. CENTRAL TENDENCY
In this case the superior gives an appraisal by giving central values. This prevents a
really talented employee from getting promotions he deserves and some employees
who do not deserve any thing may get promotion.
4. LENIENCY AND STRICTNESS
Some bosses are lenient in grading their employees while some are very strict.
Employee who really deserves promotions may loose the opportunity due to strict
bosses while those who may not deserve may get benefits due to lenient boss.
5. SPILL OVER EFFECT
In this case the employee is judged +vely or vely by the boss depending upon
the past performance. Therefore although the employee may have improved
performance, he may still not get the benefit.
6. FEAR OF LOOSING SUBORDINATES AND SPOILING RELATIONS
Many bosses do not wish to spoil their relations with their subordinates. Therefore
when they appraise the employee they may end up giving higher grades which are not
required. This is a injustice to really deserving employees.
7. GOODWILL AND TECHNIQUES TO BE USED Sometimes a very strict
appraisal may affect the goodwill between senior and junior. Similarly when different
departments in the same company use different methods of appraisal it becomes very
difficult to compare employees.

Page No: 57

8. PAPER WORK AND PERSONAL BIASED

Appraisal involves a lot of paper work. Due to this the work load of HR
department increases. Personal bias and prejudice result in bosses favoring certain
people and not favoring others.
STEPS FOR MAKING APPRAISAL SUCCESSFUL
1. Existence of an atmosphere of confidence and trust.
2. The results of performance rather than personality traits should be given

due

weight.
3. The supervisor should analyze the strengths and weaknesses of the employee and
advise him.
4. The appraisal programmed should be less time-consuming and less costly
5. The results of appraisal should be immediately communicated to the employee.
6. A post appraisal interview should be arranged.
7. Training can be used to improve the standards of performance appraisal.
8. The right appraisal tools should be chosen to minimize arising problem.
ADVANTAGES OF DOING PERFORMANCE APPRAISALS
They provide a record of performance over a period of time.
They provide an opportunity for a manager to meet and discuss performance
with an employee.
Provide the employee with feedback about their performance and how they
completed their goals.
Provide an opportunity for an employee to discuss issues and to clarify
expectations with their manager.
Offer an opportunity to think about the upcoming year and develop employee
goals.
Can be motivational with the support of a good reward and compensation
system.
Page No: 58

DISADVANTAGES OF PERFORMANCE APPRAISAL

If not done appropriately, can be a negative experience.
Are very time consuming, especially for a manager with many employees.
Are based on human assessment and are subject to rater errors and biases.
If not done right can be a complete waste of time.

PERFORMANCE APPRAISAL PRACTICES AT COCA-COLA

In Coca-Cola company the performance appraisal is done by using the traditional
method i.e.; Graphic rating method. This is the simplest and most popular technique
for appraising employee performance. Graphic rating scale refers to using specific
factors to appraise people. The entire appraisal is presented in the form of a chart. The
chart contains certain columns which indicate qualities which are being appraised and
other columns which specify the rank to be given.
TABLE 3.2: E.g. Employee A
Quality of work

Quantity of work

Intelligence

Excellent
Very good
Good
Satisfactory
Poor
The senior has to put a tick mark for a particular quality along with the ranking.
Such charts are prepared for every employee. According to the department in which
they work. Sometimes the qualities which are judged may change depending upon the
department.
In Coca-Cola Company the Hr.executives will prepare the performance
appraisal charts and submitted those charts to the Hr.Manager. The hr.manager will

Page No: 59

assess the performance of the employee based on the report and give feedback to the
employees so that they can know their performance. If the feedback is poor the
management will provide training and if the feedback is good the appreciation will be
provided in the form of awards and rewards.

DATA ANALYSIS AND INTERPRETATION

Human resources are the greatest assets for any organization. These
resources should be developed to their fullest extent for the efficient functioning of an
organization and their performance needs to appraise continuously.
PERFORMANCE APPRAISAL plays a vital role in Human Resource
Management. It is an essential and inescapable managerial activity. Appraisal is
necessary for all important decisions relating to people, such as placement and
promotion, remuneration and reward, training and development, as well as long-term
man power planning and organization development.
HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED
(HCCBPL), VISAKHAPATNAM was come into existence after VBC Industries
(which was a franchised bottling unit of Parle Group) was acquired by Coca-Cola
India on 10th October 1998. This unit serves the districts of Visakhapatnam,
Vizianagaram, and Srikakulam.
Coco-Cola has been adopting good human resources development practices.
Performance appraisal is one of the important mechanisms of HRD. An attempt has
been made in the present study to draw the perception of employees towards
performance appraisal, as performance appraisal is a tool that helps to measure the
performance of the employees in the organization
The present survey has been conducted among 70 respondents by way of a

Page No: 60

Structured questionnaire adopting simple random sampling .Sample has been drawn
from the executive cadre of employees their opinions has been analyzed, interpreted
and presented in this chapter.

TABLE 4.1 Awareness of the Performance Appraisal System in coca-cola

company
S.NO
Opinion
1
Strongly Agree

No of Respondents
60

Percentage (%)
86

Partially Agree

10

14

Disagree

70

100

Total
GRAPH: 4.1:

ANALYSIS:
From the above table, 86% of the total respondents agree that they are aware of the
Performance Appraisal System in coca-cola company, 14% of them partially agree for
this and none of them disagrees for this.
Page No: 61

INTERPRETATION:
From the above table we can interpret that most of the employees are aware
of the Performance Appraisal System in coca-cola company.
.

TABLE 4.2: The Performance Appraisal system followed in the organization

helps in assessing the competencies
S.No
1.
2.

Opinion
Strongly Agree
Partially Agree

3.

Disagree
Total

Respondents
25
33

Percentage (%)
36
47

12

17

70

100

GRAPH 4.2:

ANALYSIS:
From the above table 36% of the respondents opined that the Performance Appraisal
system followed in the organization helps in assessing the competencies ,47%
partially agree for this and rest of them disagree this.

Page No: 62

INTERPRETATION:
From the above data we can interpret that the most of the employees felt that
the performance appraisal system followed in the organization helps in assessing the
competencies.
TABLE 4.3: The Performance appraisal system helps in assessing the training
needs of the employees.
S.No

Opinion

Respondents

Percentage (%)

Strongly Agree

43

62

Partially Agree

22

31

3.

Disagree
Total

5
70

7
100

GRAPH 4.3:

ANALYSIS:
From the above data it analysiss that 62% of the employees agree that the
Performance appraisal system helps in assessing the training needs of the employees,

Page No: 63

where as 31% of them partially agree fro this and while only 7% of them disagree for
this.
INTERPRETATION: From the above chart we can interpret that most of the
employees felt that Performance appraisal system helps in assessing the training
needs of the employees.

TABLE 4.4: The objective of performance appraisal is identifying training need

S.No

Opinion

Respondents

Percentage (%)
80

1.

Promotion

56

2.

Increments

13

19

3.

All the above

Total

1
70

1
100

GRAPH 4.4:

ANALYSIS:

Page No: 64

From the above table, we can say that 80% of the employees felt that the
objective of performance appraisal is identifying training need is promotion, where as
19% felt that it is increments and rest of them opined that it is based on both
promotion and increments
INTERPRETATION:
From the above data we can interpret that the most of the employees agree that the
objective of performance appraisal is identifying training need is based on promotion.

TABLE 4.5: The Performance Appraisal System forms the basis for making
decisions regarding promotions & rewards.
S.NO

Opinion

1.
2.

Strongly Agree
Partially agree

3.

Disagree
Total

Respondents

Percentage (%)

35
27

50
39

11

70

100

Page No: 65

GRAPH4.5:

ANALYSIS:
From the above table, 50% of the employees thinks that The Performance
Appraisal System forms the basis for making decisions regarding promotions &
rewards, while 39% employees partially agree for this and only 11% of them disagree
for this.
INTERPRETATION:
From the above data we can interpret that most of the employees believes that
the Performance Appraisal System forms the basis for making decisions regarding
promotions & rewards.

TABLE 4.6: Frequency of performance appraisal system in the organization

S.No
Opinion
1.
3 months
2.

6months

Respondents
10

Percentage (%)
14

52

75

Page No: 66

3.

1 year
Total

11

70

100

GRAPH 4.6:

ANALYSIS:
From the above table, 75% of the employees opined that frequency of
performance appraisal system in the organization is every 6 months,14% of them
thinks it should be 3 months and only 11% of them felt that it should be 1 year.
INTERPRETATION:
From the above that chart, we can interpret that most of the employees felt
that the frequency of performance appraisal system in the organization should be
every 6 months

TABLE 4.7: The performance appraisal system followed in the organization is

fair

Page No: 67

S.No

Opinion

Respondents

Percentage (%)

1.

Strongly Agree

2.

Partially Agree

36

51

3.

Disagree

14

21

70

100

Total

20

28

GRAPH 4.7:

ANALYSIS:
From the above table, 51% of the employees felt that the performance
appraisal system followed in the organization is fair, while 28% of the employees
partially agree for this and 21% of them disagree for this
INTERPRETATION:

From the above data we can interpret that the feedback is

communicated quickly because of this good communication will increase among

employees and management.

Page No: 68

TABLE 4.8: The performance appraisal rating by HR executive is

objective
S.No

Opinion

1.
2.
3.

Agree
Partially Agree
Disagree
Total

Respondents

Percentage (%)

47
21
2

67
30
3

70

100

GRAPH 4.8:

ANALYSIS:
From the above table, 67% of the respondents Agree that the
performance appraisal rating by HR executive is objective and 30% partially
agreed for this and rest of them only 3% disagree for this.
INTERPRETATION:
From the above data its evident that most of the employees agree that
the performance appraisal rating by HR executive is objective

Page No: 69

TABLE 4.9: Feedback is communicated to the employee

S.No

Opinion

Respondents

Percentage (%)

1.

Written

47

67

2.

Orally

21

30

3.

Both

2
70

3
100

Total
GRAPH 4.9:

ANALYSIS:
From the above table, 67% of the respondents Agreed that, the feedback is
communicated in written form and 30% partially agreed that; the feedback is
communicated in the written form and the remaining 3% disagreed.

Page No: 70

INTERPRETATION:
From the above data its evident that feedback is communicated is in the written
form because of this form the feedback is more communicated between the superiors
and subordinates.

TABLE 4.10: After performance appraisal feedback is given

S.No
1.
2.

Opinion
Strongly Agree
Partially Agree

3.

Disagree
Total

Respondents
45
20

Percentage (%)
64
29

70

100

GRAPH4.10:

ANALYSIS:
Page No: 71

From the above table, 64% of the respondents strongly agree that after
performance appraisal feedback is given, while 29% of them partially agree for this
and only 7% of them disagree for this.
INTERPRETATION:
From the above data we can interpret that most of the employees felt that after
performance appraisal only feedback should be given.

TABLE 4.11: The performance appraisal method followed in the organization is

according to the industry standards.
S.No
1.
2.

Opinion
Strongly Agree
Partially Agree

3.

Disagree
Total

Respondents
40
28

Percentage (%)
57
40

70

100

GRAPH 4.11:

ANALYSIS:

Page No: 72

From the above table,57%

of the employees strongly agree that the

performance appraisal method followed in the organization is according to the

industry standards, where as 40% of the employees partially agree for this and only
3% of them disagree for this.
INTERPRETATION:
By the above data we can interpret that most of the employees believes that the
performance appraisal method followed in the organization is according to the
industry standards.
TABLE 4.12: In your opinion performance need to be appraised by
S.No
1.
2.

Opinion
Superior
HOD

Respondents
30
25

Percentage (%)
43
36

3.

Peer Group

11

4.

All the above

10

Total

70

100

GRAPH4.12:

Page No: 73

ANALYSIS:
From the above table, 43% of the employees opined that performance need
to be appraised by superior ,36% of them felt that performance need to be appraised
by HOD,11% of them felt that performance need to be appraised by peer group and
rest of them felt that performance need to be appraised by all superior, HOD and
peer group.
INTERPRETATION:
From the above data we can interpret that most of the employees felt that performance
need to be appraised by superior.

TABLE 4.13: Employees were satisfied with the present system of performance
appraisal
S.No
1.
2.

Opinion
Strongly Agree
Partially Agree

3.

Disagree
Total

Respondents
60
6

Percentage (%)
86
8

70

100
Page No: 74

GRAPH 4.13:

ANALYSIS:
From the above data, we can say that 86% of the employees strongly agree that
Employees were satisfied with the present system of performance appraisal ,where as
8% of them partially agree and only 6% of them disagree for this.
INTERPRETATION:
By the above data we can interpret that majority of the employees agree that
employees were satisfied with the present system of performance appraisal .

Page No: 75

SUMMARY
Human resource is considered to be the most valuable asset in any
organization hence the human resource should be utilized to maximum extent in order
to achieve individual and organizational goals, which would be ultimately achieved
by employees performance however, the employees performance is motivated by
performance appraisal system.
Performance appraisal is the systematic description of employees job
relevant, strength, weakness. The objective of the study is to analyze different
performance appraisal schemes provided by Coca-Cola company Visakhapatnam and
also to analyze the performance feedback and counseling system for employees in
HCCB PVT.LTD.
The Coca-Cola Company Visakhapatnam unit is under Asia Zone of India
Division. In India, there are around 55 units (plants) and in Andhra Pradesh, there are
5 units and they are at Visakhapatnam, Vijayawada, Hyderabad, Nellore and Sri
Kalahasti. These plants are concerned with the production, sales, marketing, bottling
and customer care of the Coca-Cola Company. It is the most popular and biggestselling soft drink in history, as well as the best-known product in the world.
An employee may be satisfied or not satisfied with the existed
performance appraisal system in their organization, the opinion of the employee with
regard to different areas is collected by using questionnaire method and collecting the
feedback from them and sample size is only 70 respondents by random sampling
method.

Page No: 76

The employees are satisfied with the existed performance appraisal system as
they feel that the appraisal system motivates them and it help to improve the
relationship between the superiors and subordinates.
Many of the employees positively responded about the performance
Appraisal is necessary for all important decisions relating to people, such as
placement and promotion, remuneration and reward, training and development, as
well as long-term man power planning and organization development.
More than half of the employees feel that this appraisal system is helpful for
motivation, for more effective communication, for strengthening superior-subordinate
relationships, for goal setting and work planning and for improving the total
performance of the organization.
Majority of the employees are opined that the promotions should be based on
both merit & seniority for their carrier development. More than half of the employees
feel that this appraisal system is not based on job analysis which leads to some sort of
dissatisfaction and they also feel that the feedback is communicated in the form of
written is more effective.
.
In this way each and every area under which the employee is satisfied or
dissatisfied regarding the appraisal system, is analyzed and the reasons are nearly
summarized and based on these suggestions and recommendations are given to the
Coco-Cola company management to reach the organization goals and objectives.

Page No: 77

FINDINGS
The following are the major findings of my study:-

1. 86% of the respondents agrees that, the performance appraisal system is

existing in the organization
2. 47% of the respondents opined that, the performance appraisal factors are
good
3. 62% of the respondents opined that, the work atmosphere in the organization is
effective.
4. 80% of the respondents opinioned that, the performance appraisal is done at
the place of work.
5. 42.8% of the respondents opinioned that, they are fully aware of the
performance appraisal system.
6. 67% of the respondents opinioned that, the performance appraisal is conducted
for every 6 months.
7. 51% of the respondents opinioned that, the feedback of performance appraisal
is communicated with the appraise within 15 days
8. 67% of the respondents opinioned that, the performance appraisal feedback is
communicated in written form.

Page No: 78

9. 64% of the respondents opinioned that, the performance appraisal feedback is

communicated by the superior.
10. 57% of the respondents opinioned that, the performance appraisal is based on
well defined objective criteria.
11. 80% of the respondents opinioned that, the performance appraisal is not based
on the job analysis.
12. 86% of the respondents opinioned that, the organization gives reward on the
basis of performance.

13. 50% of the respondents opinioned that, the effectiveness of present

performance appraisal system is not effective.
14. 57% of the respondents opinioned that, the promotions are based on both merit
and seniority.

Page No: 79

SUGGESTIONS

Change is continuous in the world in every part and in every organization;

accordingly the change has to be adopted in the systems followed in the
organizations.
The management should motivate the employees to perform better by giving
rewards and other incentives.
Employees must be made to work in various areas which give them
enthusiasm to know much more and also which acts as motivation method,
this also gives them training to act as role plays in any superior absence.
The performance appraisal needs to be based on well defined objective
criteria.
The performance appraisal feedback needs to be communicated with the
appraise within short period.
Modern methods of performance appraisal need to be implemented in the
organization.

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CONCLUSION
The performance appraisal which is conducted by the organization is
very effective. The management gives the promotions based on both merit and
seniority.
Most of the employees are satisfied with the performance appraisal which is
conducted by the Coca-Cola organization. The feedback should be such that the
individuals should to know about their faults, where they have lack of knowledge in
doing their jobs in an effective manner.
Hence, the performance appraisal is necessary for every organization to
achieve its objectives.

Page No: 81

BIBLIOGRAPHY
BOOKS

Human Resource Management by L.M.Prasad.

Research Methodology by Kothari.
Human Resource Management and Industrial Relations by P.Subbarao.

READING MATERIALS
1. Annual records and reports of the company.
2. Previous project records at the company.

WEBSITES
1. www.Google.com
2. www.BBIPLINFRA.com

3. WWW.Coca-cola.com

Page No: 82

QUESTIOINNAIRE
Respected sir/Madam,
I am pursuing MBA, for the academic year 2011-2013, at School of Distance
Education,

Visakhapatnam

conducting

survey

on

PERFORMANCE

APPRAISAL.I requests you to spare your valuable time and fill the following
questionnaire. The data collected will be used for academic purpose only.
NAME:
DESIGNATION:
DEPARTMENT:
1. All the employee are aware about performance appraisal system in the
organization
a) Strongly Agree

b) Partially Agree

c) Disagree

2. Performance appraisal system followed in the organization helps in assessing

the competencies.
a) Strongly Agree

b) Partially Agree

c) Disagree

3. Performance appraisal system helps in assessing the training needs of the

employees?
a) Strongly Agree

b) Partially Agree

c) Disagree

4. Objective of Performance appraisal is identifying training need

a) Promotion

b) Increments

c) All the above

5. Performance appraisal system forms the basis for making decision regarding
promotions and rewards?
a) Strongly Agree

b) Partially Agree

c) Disagree

6. Frequency of Performance appraisal system in the organization.

Page No: 83

a) 3months

b) 6months

c) 1 year

7 .Performance appraisal system followed in the organization is fair

a) Strongly Agree

b) Partially Agree

c) Disagree

8. Feedback is communicated to the employees

a) Orally

b) written

c) Both

9. Performance appraisal rating by Hr.Executive is objective

a) Strongly Agree

b) Partially Agree c) Disagree

10. After performance appraisal performance feedback is given

a) Strongly Agree

b) Partially Agree

c) Disagree

11. The performance appraisal method followed in the organization is according to

the industry standards
a) Strongly Agree

b) Partially Agree

c) Disagree

12. In your opinion performance need to be appraised by

a) Superior

b) HOD c) Peer group d) All the above

13. Employees were satisfied with the present system of performance appraisal
a) Strongly Agree b) Partially Agree

c) Disagree

14. Your suggestions for improving the present method of performance appraisal

THANKYOU.

Page No: 84

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