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 organization’s
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 employee’s 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.

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 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 employee’s 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 employee’s 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.

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 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.

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 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

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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.

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 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.

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 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.

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 BEVERAGE INDUSTRY PROFILE

WELCOME TO THE COCA – COLA FAMILY:

Coca-Cola Company is the world’s 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

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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:

Company’s trademarks are most valuable assets. The trademark “Coca-

Cola” was registered with U.S. patents and trademark office in 1893, followed by
“Coke” in 1945. Today, the world’s favorite soft drink Coca-Cola is also the world’s
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.

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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.

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 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.

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 ● Profit: Maximize long-term return to shareowners while being mindful of our
overall responsibilities.
● 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

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● Act with urgency

● Remain responsive to change

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 ● Have the courage to change course when needed

● Remain constructively discontent

● Work efficiently

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 didn’t

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.

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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

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.

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 ~ 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 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 age’s 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:

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 Introduced in the year 1960, fanta was the 1st 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. 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 Robinson’s drinks.

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 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:

 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

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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.

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 Coca- Cola'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.

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» 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 Coca-
Cola 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
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

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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 India’s 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 schools in and
around Chennai. The Company plans to provide clean drinking Coca- Cola 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% CSD’s growth

 It has won numerous marketing excellences awards.

COCA-COLA INTO INDIA:

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 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 1990’s came the era of changes, LPG opened up the gates for the biggies
to flood with the competencies. Coca-Cola re-entered India in the year 1993, yet another
time. Prior to the entry to Coca-Cola, Pepsi was doing a 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 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, it’s up to me.

Innovation: Seek, imagine, create and delight.
Integrity: Be real

Collaboration: Leverage collective genius

Quality: What we do, we do well.

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 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) 25

FOBO (Franchise Own Bottling Operation) 27
Co-Pack 32

 CadburySchweppes 07

TOTAL :9 1
PROGRAM OBJECTIVE AND PHILOSOPHY

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

slow down complaints

Positive brand Buyers Dealers force Long cycle time

images market
Moving to high Low cost Service recovery

technology

UNIQUE ACHIEVEMENTS

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VARIOUS BRANDS OF COCA-COLA IN INDIA

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 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.
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

PageNo:27
 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.

PageNo:28
 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

PageNo:29
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.

PageNo:30
 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

Filler
Bottle Washer Unit

Raw Syrup Tank Read y Syrup Para Mix Machin

Tank e

Godown

PageNo:31
 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 - 05 min

2. Hot water Circulation - 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

PageNo:32
3. Cool Water Rinsing - 10 min

4. Hot Water Circulation - 15 min

5. Cool Water Rinsing - 10 min

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

PageNo:33
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:

PageNo:34
Two high-powered generators of 250 KVA and 125KVA are used for
providing energy.

PageNo:35
 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

PageNo:36
3. 24 hours - 6 am – 6 pm and 6 pm – 6 am

PageNo:37
 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.

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

PageNo:38
Ltd.,

PageNo:39
 INGREDIENTS

1. Water 2.Sugar 3.Carbon-dioxide (CO2)

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

PageNo:40
Managers. Of the three Sales Managers, one person is in charge of city sales while

PageNo:41
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.

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 week’s
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 retailer’s 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.

PageNo:42
 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 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

PageNo:43
 grievance from the market either through phone calls or through the sales force. It 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

Retailers
Plant Depot (Ko)
Consumers

Area marketing

Indirect operation

Plant C&F Distributors Customers Consumers

Route Agents

Super stockiest

PageNo:44
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.

PageNo:45
The entire plant and operations keep in abreast of their daily functioning, while the 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 (EPZ’s) 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.

PageNo:46
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. Catego Numbe
No ry rs
1. Permanent 272
2. Temporary 60
3. Contract Labor 200

PageNo:47
Total 532

PageNo:48
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 manager’s decision-

making 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 Coca- Cola
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.

PageNo:49
 Organizational Structure

A.G.M
.M

PlantM Quality Financ HR SalesM

anager Manag eMana Manager Assistant
anager Sales Manage
er ger

Assistant Manager
Assistant Manager

Senio SeniorE
rOffi Executive xecutive

HRD ORGANIZATION CHART (VISAKHAPATNAM UNIT)

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

HR EXECUTIVE
(G.Srinivasa Rao)

HR EXECUTIVE
HR SALES EXECUTIVE
(S.Ismail)
(S.Srinivasa rao)

PageNo:50
Human Resource Management Philosophy & Policy

PageNo:51
 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 COBO’s are now ISO 14001 certified.

PageNo:52
 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

employee’s 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 employee’s 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.

PageNo:53
 HISTORY OF PERFORMANCE APPRAISAL

Its roots in the early 20th century can be traced to Taylor’s 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 war- not
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 employee’s 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 1950’s 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.

PageNo:54
 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 Former Emphasis Present Focus

Terminology Merit-rating Performance appraisal
Purpose Determine wage increase, Development of the individual,

Promotion, transfer, lay off. improved job performance.

Application For rank and file workers For managerial and
technical

personnel.

PageNo:55
Factors rated Personal traits Performance, result
or

accomplishments.
Techniques Rating scales with emphasis Mutual goal-setting,
critical
upon scores
incidents, group appraisal.

PURPOSE OF PERFORMANCE APPRAISAL

PageNo:56
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

PageNo:57
appraisal reports. Similarly career planning can be done for the employee on the
performance appraisal report.

PageNo:58
 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

PageNo:59
 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

TRADITIONALMETHODS MODERNMETHODS

PageNo:60
 1. Checklist 1. Management by objective

2. Graphic rating scales 2. 360 degree appraisal

3. Forced choice method 3. Assessment centers

4. Forced distribution method 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

PageNo:61
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.

PageNo:62
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.

PageNo:63
 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

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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.

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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

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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 employee’s 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.
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).

PageNo:67
 5. Develop a final instrument

Choose about six or seven of the incidents as the dimension’s 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:

ESTABLISHING PERFORMANCE STANDARDS

The first step in the process of performance appraisal is the setting up of the

PageNo:68
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

PageNo:69
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 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.

PageNo:70
 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
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.

PageNo:71
 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 evaluator’s 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.

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

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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.
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

PageNo:73
and not favoring others.

PageNo:74
 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.
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.

PageNo:75
 If not done right can be a complete waste of time.

PageNo:76
 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
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

PageNo:77
provided in the form of awards and rewards.

PageNo:78
 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 10 th
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

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

PageNo:79
 S.N Opinion No of Percentage
O Respondents (%)
1 Strongly Agree 60 86

2 Partially Agree 10 14
3 Disagree 0 0
Tot 70 100
al

GRAPH: 4.1:

10

80

60

40

20
StrongAgre PartiallyAgre Disagre
0
%of respondents 86 14 0

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.

PageNo:80
 INTERPRETATION:

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

PageNo:81
 TABLE 4.2: The Performance Appraisal system followed in the organization
helps in assessing the competencies
S.No Opinion Responden Percentage
ts (%)
1. Strongly Agree 25 36
2. Partially Agree 33 47
3. Disagree 12 17
Tot 70 100
al

GRAPH 4.2:

50
40
30

20
10
0

StrongAgr PartialyAgr Disagre

e e

%of 3 4 1
respondent 6 7 7
s

ANALYSIS:

PageNo:82
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.

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.

PageNo:83
 S.N Opinion Responden Percentage
o ts (%)
1 Strongly Agree 43 62
2 Partially Agree 22 31
3. Disagree 5 7
Tot 70 100
al

GRAPH 4.3:

StrongAgr PartiallyAg Disagre

e re

PageNo:84
 70
60
50
40
30
20
10
%of 0 6 3 7
respondent 2 1
s

ANALYSIS:

From the above data it analysis’s that 62% of the employees agree that the
Performance appraisal system helps in assessing the training needs of the employees,
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.

PageNo:85
 TABLE 4.4: The objective of performance appraisal is identifying training need

S.No Opinion Responden Percentage (%)

ts
1. Promotion 56 80
2. Increments 13 19

3. All the above 1 1

Total 70 10
0
GRAPH 4.4:

promotion Increment al the

s above

%of 80 1 1

PageNo:86
80

60

40

20
respondent 9
0
s

ANALYSIS:

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.

PageNo:87
 TABLE 4.5: The Performance Appraisal System forms the basis for making
decisions regarding promotions & rewards.

S.NO Opinion Respondents Percentage

(%)
1. Strongly Agree 3 50
5
2. Partially agree 2 39
7
3. Disagree 8 11

Tot 7 100
al 0
GRAPH4.5:

PageNo:88
 60
50
40
30 StrongAgre PartialyAgr Disagre
20
10 e
0
%of 5 3 1
respondent 0 9
s

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.

PageNo:89
 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.N Opinion Responden Percentage (%)

o ts
1. 3 months 10 14
2. 6months 52 75
3. 1 year 8 11
Tot 70 1
al 0
0

GRAPH 4.6:

ANALYSIS:
80

60

40
PageNo:90
20
 3Months 6Months 1year
%of respondents 14 75 1

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

S.No Opinion Respondents Percentage (%)

1. Strongly Agree 20 28
2. Partially Agree 36 51

3. Disagree 14 21
Tot 70 10
al 0
GRAPH 4.7:

PageNo:91
 60
50
40
30
20
10 StronglyAgr PartialyAgr Disagre
0
e e

%ofrespond 2 5 2
ents 8 1 1

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.

PageNo:92
 TABLE 4.8: The performance appraisal rating by HR executive is objective

S.No Opinion Respondents Percentage (%)

1. Agree 47 67
2. Partially Agree 21 30
3. Disagree 2 3

PageNo:93
 Tot 70 10
al 0

GRAPH 4.8:

80
ANALYSIS:
60
From the above table, 67% of the respondents Agree that the
40
performance appraisal rating by HR executive is objective and 30% partially
20
agreed for this and rest of them only 3% disagree for this.
0
INTERPRETATION:
%of respondents Agre PartialyAgre Disagre
From the above data
67 it’s evident that 30most of the employees
3 agree that
the performance appraisal rating by HR executive is objective

TABLE 4.9: Feedback is communicated to the employee

PageNo:94
 S.No Opinion Respondents Percentage (%)
1. Written 47 67
2. Orally 21 30
3. Both 2 3
Tot 70 10
al 0

GRAPH 4.9:

80

60

ANALYSIS: 40

From the 20
above table, 67% of the respondents Agreed that, the feedback is
communicated in 0written form and 30% partially agreed that; the feedback is
communicated in the written Written
%of respondents form and the remaining 3% disagreed.
Oraly Both
67 30 3

INTERPRETATION:

From the above data it’s evident that feedback is communicated is in the written
form because of this form the feedback is more communicated between the superiors and
subordinates.

PageNo:95
 TABLE 4.10: After performance appraisal feedback is given

S.N Opinion Responden Percentage

o ts (%)
1. Strongly Agree 45 64
2. Partially Agree 20 29
3. Disagree 5 7
Tot 70 100
al
GRAPH4.10:

PageNo:96
 70
60
50
40
StronglyAg PartiallyAg Disagre
30
20
re re
10
%of 0 6 2 7
respondent 4 9
s

ANALYSIS:

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:

PageNo:97
 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.N Opinion Responden Percentage

o ts (%)
1. Strongly Agree 40 57
2. Partially Agree 28 40
3. Disagree 2 3
Tot 70 100
al

GRAPH 4.11:

60

50

40

PageNo:98
 30

20

10

0
StronglyAgre PartialyAgre Disagre
%of respondents57 40 3

ANALYSIS:

From the above table,57% of the employees strongly agree that the
performance appraisal method followed in the organization is according to the

PageNo:99
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.N Opinion Responden Percentage

o ts (%)
1. Superior 30 43
2. HOD 25 36
3. Peer Group 8 11
4. All the above 7 10
Tot 70 100
al

GRAPH4.12:

PageNo:10
 50

40 Superi H Pe All the

30 or od rGroup above

%of 20 4 36 1 1
respondent
10 3 0
s 0

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

PageNo:10
need to be appraised by superior.

TABLE 4.13: Employees were satisfied with the present system of

performance appraisal

PageNo:10
 S.N Opinion Responden Percentage
o ts (%)
1. Strongly Agree 60 86
2. Partially Agree 6 8
3. Disagree 4 6
Tot 70 100
al

GRAPH 4.13:

PageNo:10
 10

80

60

40

20

StronglyAgre
%ofrespondents

ParitalyAgre

Disagre 86

ANALYSIS:

PageNo:10
 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 .

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 employee’s 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,

PageNo:10
bottling and customer care of the Coca-Cola Company. It is the most popular and
biggest-selling 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.

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

PageNo:10
summarized and based on these suggestions and recommendations are given to the
Coco-Cola company management to reach the organization goals and objectives.

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.

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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.

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.

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 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.

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 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

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achieve its objectives.

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 BIBLIOGRAPHY

BOOKS

 Human Resource Management by L.M.Prasad.

 Research Methodology by Kothari.

 Human Resource Management and Industrial Relations by P.Subbarao.

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READING MATERIALS

1. Annual records and reports of the company.

2. Previous project records at the company.

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 WEBSITES

1. www.Google.com

2. www.BBIPLINFRA.com

3. WWW.Coca-cola.com

QUESTIOINNAIRE

Respected sir/Madam,

I am pursuing MBA, for the academic year 2010-2012, at Noble

Institute of Science and Technology College, Visakhapatnam conducting a 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.

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 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

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 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.

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

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 a) Strongly Agree b) Partially Agree c) Disagree

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

THANKYOU.

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 (

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