CHAPTER-1

INTRODUCTION TO THE TOPIC

INTRODUCTION

Performance appraisal, often referred to as performance evaluation or performance review, is a

fundamental practice within organizations aimed at assessing and managing the performance of
employees. It is a systematic process that provides a structured framework for evaluating
employees' job performance, contributions, and achievements in relation to established goals,
expectations, and organizational standards. Performance appraisal serves as a critical tool for human
resource management, talent development, and organizational improvement.

The practice of performance appraisal is rooted in the need for organizations to ensure that their
workforce is aligned with strategic goals and objectives, while also nurturing individual employee
growth and development. It plays a multifaceted role within the workplace, encompassing aspects
of feedback, goal setting, motivation, and decision-making. Through the performance appraisal
process, organizations seek to achieve several essential objectives:

1. Feedback and Improvement: Performance appraisals offer employees valuable feedback

on their strengths and areas for improvement, fostering a culture of continuous learning and
growth.

2. Goal Alignment: They help align individual employee goals and tasks with the broader
objectives of the organization, ensuring that everyone is working toward common goals.

3. Recognition and Reward: High-performing employees may be recognized and rewarded

for their contributions, motivating them to maintain or improve their performance.

4. Development and Training: Performance appraisals identify skill gaps and training needs,
allowing organizations to invest in employee development and enhance their capabilities.

5. Succession Planning: They aid in identifying employees with high potential for leadership
roles and succession planning.

6. Decision-Making: Performance appraisals provide data that can inform HR decisions such
as promotions, transfers, salary adjustments, and terminations.

7. Communication: They facilitate communication between employees and managers,

ensuring that expectations are clear and understood.

8. Legal and Ethical Compliance: Performance appraisals help organizations ensure that
employment decisions are fair, objective, and in compliance with legal and ethical
standards.
9. Performance Measurement: They provide a basis for measuring the effectiveness of
various HR and organizational initiatives.

WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance and progress of

an employee or a group of employees on a given job and his / their potential for future

development. It consists of all formal procedures used in working organizations and potential of

employees. According to Flippo, “Performance Appraisal is the systematic, periodic and an

important rating of an employee’s excellence in matters pertaining to his present job and his

potential for a better job.”

CHARACTERISTICS

 Performance Appraisal is a process.

 It is the systematic examination of the strengths and weakness of an employee in

terms of his job.

 It is scientific and objective study. Formal procedures are used in the study.

 It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

 The main purpose of Performance Appraisal is to secure information necessary for

making objective and correct decision an employee.

PROCESS

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

 3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

LIMITATIONS

 Errors in Rating

 Lack of reliability

 Negative approach

 Multiple objectives

 Lack of knowledge

STATEMENT OF THE PROBLEM

Much of literature dealing with Human Resource Management and its issues recognize the

Importance of performance appraisal system which occurs in the organization. All organization

faces the Problem of directing the energies of their staff to the task of achieving business goals

and objectives. In doing So, organization need to devise means to influence and channel the

behaviors‟ of their employees so as to Optimize their contributions. Performance appraisals

constitute one of the major management tools employed in This process.

The continuous evolution of organization towards the changes creates a great impact in the life

of the Business still, the business leaders are relying on the capacity of the people and their

performance towards their Job and roles in the organization. Whether a profitable or non –
profitable organization, the people has been Essential resources in the organization. Various

strategies had been effectively used for the employee according To their different needs and

areas that needs to sustain.

However, there is a little attention given in enhancing the employee performance appraisal

system. The present study was under taken to clarify certain questions related to the care

phase of Performance appraisal through regular assessment of progress toward goals focuses

the attention and efforts of An employee or a team.

SCOPE OF THE STUDY

 This study provide appraisal feedback to employees and thereby serve as vehicles for

personal and career development and allow the management to take effective decision

against drawbacks for the well being of the employee‟s development.

 To improve employee work performance by helping them realize and use their full

potential in carrying out their firms‟ mission.

 The main aim of the study is to find out the effectiveness of performance appraisal &

development programme conducted at “Wipro Infrastructure Engineering”.

 This study helps to know the level of importance of appraisal system.

 The payroll and compensation decision, training and development needs, promotion,

demotions transfer including job analysis and providing superior support, assistance

and counselling.

 It considers both the job performance as well as the personal qualities of an employee.

NEED OF THE STUDY

 This study helps building progress towards organizational goals.

 To help the superior to have a proper understanding about their subordinates.

 To ensure organizational effectiveness through correcting the employee for standard

and improved Performance and suggesting the changes in employee behavior.

 It provides information about the performance ranks.

 To provide information this helps to counsel the subordinates.

 To facilitate fair and equitable compensation based on performance

To identify the actual performance of the employees and performance standards used in

performance Appraisal program (opinion, satisfaction, benefit, outcome, etc.).

OBJECTIVES OF THE STUDY

 To create and maintain a satisfactory level of performance.

 To identify the awareness level of performance appraisal technique among the

employees.

 To maintain records in order to determine compensation packages wage structure,

salaries raises etc.

IMPORTANCE AND PURPOSE OF THE STUDY

Performance Appraisal has been considered as the most significant an indispensable tool for an

organization, for an organization, for the information it provides is highly useful in making

decisions regarding various personnel aspects such as promotion and merit increases.

Performance measures also link information gathering and decision making processes which

provide a basis for judging the effectiveness of personnel sub-divisions such as recruiting,

selection, training and compensation. Accurate information plays a vital role in the organization

as a whole. They help in finding out the weaknesses in the primary areas.
Formal Performance Appraisal plans are designed to meet three needs, one of the organization and
the other two of the individual namely:

 They provide systematic judgments to back up salary increases, transfers, demotions or

terminations.

 They are the means of telling a subordinate how he is doing and suggesting needed changes in his
behavior, attitudes, skills or job knowledge. They let him know where he stands with the Boss.

 Superior uses them as a base for coaching and counseling the individual.

On the basis of merit rating or appraisal procedures, the main objectives of Employee Appraisal are:

 To enable an organization to maintain an inventory of the number and quality of all managers and
to identify and meet their training needs and aspirations.

 To determine increment rewards and to provide reliable index for promotions and transfers to
positions of greater responsibility.

 To suggest ways of improving the employee s performance when he is not found to be up to the
mark during the review period.

 To identify training and development needs and to evaluate effectiveness of training and
development programmes.

 To plan career development, human resource planning based potentials.

 CHAPTER-2

COMPANY PROFILE
 AMUL
Company Profile: Amul Limited

Introduction

Amul Limited, often referred to as Amul, is one of India's most iconic and successful dairy
cooperatives. Founded in 1946, it has grown into a multi-billion-dollar enterprise that has
revolutionized India's dairy industry and earned global recognition for its quality dairy products.
Amul's journey from a small cooperative to a global brand is a remarkable testament to the power of
collective effort and innovation.

Amul is an acronym of the Indian cooperative society named Gujarat Milk Marketing
Federation based in Anand, Gujarat.[2][3] It is under the ownership of Gujarat Cooperative Milk
Marketing Federation Limited, Department of Cooperation, Government of Gujarat. It is controlled
by 3.6 million milk producers.[4]

Historical Background

Amul's roots can be traced back to the Indian state of Gujarat, where it was founded by Dr.
Verghese Kurien, a visionary and renowned dairy technologist, along with a group of local farmers.
The establishment of the Kaira District Cooperative Milk Producers' Union Limited (KDCMPUL),
better known as Amul, marked the beginning of India's White Revolution.

The White Revolution

The White Revolution, launched in the 1970s, was a transformative movement aimed at boosting
milk production and making India self-reliant in dairy products. Dr. Kurien's pioneering work in
introducing modern dairy farming techniques, establishing a cooperative model, and promoting the
use of technology played a pivotal role in this revolution. His efforts led to India becoming the
world's largest milk producer.

Cooperative Model

Amul's success is deeply rooted in its cooperative structure, which involves millions of dairy
farmers as stakeholders. These farmers, who are members of various cooperative societies, supply
milk to Amul, and in return, they receive a fair price for their milk production. This cooperative
model has empowered rural farmers, improved their livelihoods, and contributed significantly to
India's dairy industry's growth.

Product Portfolio

Amul offers a diverse range of dairy products, catering to the varied tastes and preferences of
consumers. Some of its most prominent product categories include:

1. Milk and Milk Products

 Fresh Milk

 Butter

 Ghee (clarified butter)

 Paneer (cottage cheese)

 Cheese

 Curd and Yogurt

 Milk Powders

2. Ice Creams

Amul ice creams have become a household favorite, offering an array of flavors and varieties.

3. Chocolates

Amul has ventured into the chocolate segment, producing high-quality chocolate bars and
confectionery items.

4. Beverages

Amul also offers flavored milk and beverages, catering to different age groups.

5. Bakery Products

The company produces bakery products such as biscuits and cakes under its "Amul Delicious"
brand.

Marketing and Branding

Amul's marketing and branding strategies have been instrumental in its success. The brand's mascot,
the Amul Girl, has become an iconic figure in Indian advertising. The Amul Girl, with her witty and
topical advertisements, has effectively communicated the brand's message to consumers for
decades.

Amul's marketing campaigns focus on quality, purity, and the goodness of dairy products. It has
consistently positioned itself as a trustworthy and affordable choice for consumers. The brand's
"Utterly Butterly Delicious" campaign for Amul butter is one of the most memorable in Indian
advertising history.

Global Presence

While Amul has its roots in India, it has expanded its footprint globally. Amul products are
exported to more than 60 countries, including the United States, Australia, the Middle East, and
Africa. The brand's quality and reputation have helped it carve a niche in international markets,
making it one of India's most successful dairy exporters.

Financial Performance

Amul's financial performance has been consistently impressive. The cooperative has reported
steady revenue growth year after year. Its ability to maintain profitability while ensuring fair prices
to dairy farmers showcases its commitment to sustainable growth and the welfare of its
stakeholders.

Corporate Social Responsibility (CSR)

Amul takes its corporate social responsibility seriously. The company has initiated several programs
aimed at improving the livelihoods of dairy farmers and promoting sustainable agricultural
practices. It has also invested in education and healthcare facilities in rural areas, contributing to the
overall development of these communities.

Research and Development

Amul has invested significantly in research and development (R&D) to enhance product quality,
develop new dairy products, and improve production processes. This commitment to innovation has
helped the company stay competitive in a rapidly evolving market.

Sustainability Initiatives

In recent years, Amul has taken steps to reduce its environmental footprint. It has introduced eco-
friendly packaging and adopted sustainable practices in its supply chain. These efforts align with
global trends towards sustainability and responsible business practices.

Challenges and Future Outlook

While Amul has achieved tremendous success, it faces challenges such as changing consumer
preferences, increased competition, and the need to adapt to evolving technology. However, the
cooperative's strong foundation, commitment to quality, and innovative spirit position it well for
continued growth and success in the future.

Conclusion

Amul Limited's journey from a small cooperative in Gujarat to a global dairy giant is a story of
resilience, innovation, and social impact. Its commitment to farmers, quality, and affordability has
made it a beloved brand in India and beyond. As Amul continues to evolve and expand its product
portfolio, it remains an inspiration for businesses worldwide and a testament to the power of
cooperative models in transforming industries and improving lives.

It all began when milk became a symbol of protest Founded in 1946 to stop the exploitation by
middlemen Inspired by the freedom movement The seeds of this unusual saga were sown more than
65 years back in Anand, a small town in the state of Gujarat in western India. The exploitative trade
practices followed by the local trade cartel triggered off the cooperative movement. Angered by
unfair and manipulative practices followed by the trade, the farmers of the district approached the
great Indian patriot Sardar Vallabhbhai Patel for a solution. He advised them to get rid of
middlemen and form their own co-operative, which would have procurement, processing and
marketing under their control. In 1946, the farmers of this area went on a milk strike refusing to be
cowed down by the cartel. Under the inspiration of Sardar Patel, and the guidance of leaders like
Morarji Desai and Tribhuvandas Patel, they formed their own cooperative in 1946. This co-
operative, the Kaira District Co-operative Milk Producers Union Ltd. began with just two village
dairy co-operative societies and 247 litres of milk and is today better known as Amul Dairy. Amul
grew from strength to strength thanks to the inspired leadership of Tribhuvandas Patel, the founder
Chairman and the committed professionalism of Dr Verghese Kurien,who was entrusted the task of
running the dairy from 1950. The then Prime Minister of India, Lal Bahadur Shastri decided that the
same approach should become the basis of a National Dairy Development policy. He understood
that the success of Amul could be attributed to four important factors. The farmers owned the dairy,
their elected representatives managed the village societies and the district union, they employed
professionals to operate the dairy and manage its business. Most importantly, the cooperatives were
sensitive to the needs of farmers and responsive to their demands. At his instance in 1965 the
National Dairy Development Board was set up with the basic objective of replicating the Amul
model. Dr. Kurien was chosen to head the institution as its Chairman and asked to replicate this
model throughout the country.
The Amul Model The Amul Model of dairy development is a three-tiered structure with the dairy
cooperative societies at the village level federated under a milk union at the district level and a
federation of member unions at the state level.

Establishment of a direct linkage between milk producers and consumers by eliminating middlemen

Milk Producers (farmers) control procurement, processing and marketing

Professional management

The Amul model has helped India to emerge as the largest milk producer in the world. More than
15 million milk producers pour their milk in 1,44,500 dairy cooperative societies across the country.
Their milk is processed in 184 District Co-operative Unions and marketed by 22 State Marketing
Federations, ensuring a better life for millions. GCMMF Gujarat Cooperative Milk Marketing
Federation Ltd. (GCMMF), is India's largest food product marketing organisation with annual
turnover (2017-18) US$ 4.5 billion. Its daily milk procurement is approx 18 million lit per day from
18,554 village milk cooperative societies, 18 member unions covering 33 districts, and 3.6 million
milk producer members. It is the Apex organisation of the Dairy Cooperatives of Gujarat, popularly
known as 'AMUL',which aims to provide remunerative returns to the farmers and also serve the
interest of consumers by providing quality products which are good value for money. Its success
has not only been emulated in India but serves as a model for rest of the World. It is exclusive
marketing organisation of 'Amul' and 'Sagar' branded products. It operates through 56 Sales Offices
and has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in
India. Its product range comprises milk, milk powder, health beverages, ghee, butter, cheese, Pizza
cheese,Ice-cream, Paneer, chocolates, and traditional Indian sweets, etc. GCMMF is India's largest
exporter of Dairy Products. It has been accorded a "Trading House"status. Many of our products are
available in USA, Gulf Countries,Singapore, The 16

Philippines, Japan, China and Australia. GCMMF has received the APEDA Award from
Government of India for Excellence in Dairy Product Exports for the last 16 years. For the year
2009-10, GCMMF has been awarded "Golden Trophy" for its outstanding export performance and
contribution in dairy products sector by APEDA. In 2013-14, GCMMF took giant strides in
expanding its presence in International markets. Amul’s presence on Global Dairy Trade (GDT)
platform in which only the top six dairy players of the world sell their products, has earned respect
and recognition across the world. By selling milk powders on GDT, GCMMF could not only realize
better prices as per market demand but it also firmly established Amul in the league of top dairy
players in world trade. For its consistent adherence to quality, customer focus and dependability,
GCMMF has received numerous awards and accolades over the years. It received the Rajiv Gandhi
National Quality Award in1999 in Best of All Category. In 2002 GCMMF bagged India's Most
Respected Company Award instituted by Business World. In 2003, it was awarded the The IMC
Ramkrishna Bajaj National Quality Award - 2003 - certificate of merit- for adopting noteworthy
quality management practices for logistics and procurement. GCMMF is the first and only Indian
organisation to win topmost International Dairy Federation Marketing Award for probiotic ice
cream launch in 2007. For the innovations, GCMMF has received AIMA-RK Swamy High
Performance brand award 2013 and CNN-IBN Innovating for better tomorrow award in 2014.
World Dairy Innovation Awards- 2014 for Best Marketing Campaign - "Eat Milk with Every
Meal". For the tree plantation activity GCMMF has received seven consecutive Good Green
Governance award from Srishti during 2007 to 2013. The Amul brand is not only a product, but
also a movement. It is in one way, the representation of the economic freedom of farmers. It has
given farmers the courage to dream. To hope. To live.

COMPANY DETAILS

Year of Establishment 1973

Members 18 District Cooperative Milk Producers' Unions
No. of Producer Members 3.6 Million
No. of Village Societies 18,549
Total Milk handling capacity per day 30 Million litres per day
Milk Collection (Total 2017) 6.44 billion litres
Milk collection (Daily Average 2017) 17.65 million litres
Cattle feed manufacturing Capacity 7800 Mts. per day

HEAD OFFICE:

Gujarat Cooperative Milk Marketing Federation Ltd. Amul Dairy Road, P B No.10, Anand –
388001, Gujarat, India.

VISION: -
Liberate our farmers from economic oppression and lead them to prosperity

MISSION: -

Dairy cooperatives of Gujarat turnover of Rs. 27000 crores by the year 2020. - To satisfy the taste
and nutritional requirements of the consumers and increasing numbers of these consumers today are
to be found only at the large format stores. Hence, in order to reach these consumers, we need to
form equitable alliances with organized retail chains wherever possible.

Objective:

Is to ensure that the maximum share of the consumer’s rupee goes back to the milk producers.

Future Plan:
Expansion of distribution network, creative marketing, consumer education and product
innovation, we will leverage effectively on rising income levels and growing affluence among
Indian consumers.  Tapping the rising demand for new value-added products.  Milk shed area will
increase to 231 lakh kg per day (23.1 million kg per day), at an annual growth rate of 4% 
Installing Bulk Milk Chillers and Automatic Milk Collection Systems in all our village cooperative
societies.  Collect as much as 195 lakh kg per day (19.5 million kg per day) of milk in the peak
flush season.  Satellite dairies with combined processing and liquid milk packaging capacity of 50
LKPD will be established in major metro market  We plan to double to processing capacity of our
dairy plants to 20.7 million kg per day, by 2020  Milk drying capacity will also be enhanced by
200 MT’s per day  Plan to expand our cattle feed manufacturing capacity, more than four times to
12,000 MT’s per day, by 2020.  Total investments envisaged for creating all the required
infrastructure would be Rs. 2,600 crores (Rs. 26 billion) till the year 2020

Amul Products List

Amul, an Indian dairy cooperative, offers a wide range of dairy and food products. Some of their
popular products include:

 Milk: Various types of milk, including fresh milk, toned milk, and skimmed milk.
 Butter: Amul Butter is a well-known product.
 Ghee: Amul Ghee is a clarified butter product.
Cheese: They produce a variety of cheese types like processed cheese, mozzarella, and cheddar.

Ice Cream: Amul Ice Cream comes in various flavors.

Milk Powders: Products like Amul Spray Milk Powder and Amul Mithai Mate.

Yogurt and Curd: Different yogurt and curd varieties.

Chocolates: Amul Chocolates are popular in India.

Paneer: A type of Indian cottage cheese.

Snacks: They also offer snac…

SWOT ANALYSIS
A SWOT analysis for Amul, an Indian dairy cooperative, can provide insights into its Strengths,
Weaknesses, Opportunities, and Threats:

Strengths:

Strong Brand: Amul is one of the most recognized and trusted dairy brands in India, known for its
quality and reliability.

Wide Product Range: It offers a wide range of dairy products, including milk, butter, cheese,
yogurt, and ice cream, catering to diverse consumer needs.

Robust Distribution Network: Amul has a well-established and extensive distribution network,
ensuring its products reach even remote areas of India.

Cooperative Model: It operates as a cooperative, empowering millions of dairy farmers and

promoting rural development.

Quality Control: Amul maintains strict quality control standards, assuring consumers of safe and
hygienic products.

Weaknesses:

Limited International Presence: While Amul has a strong domestic presence, its international
footprint is relatively small compared to some global dairy giants.

Dependency on Dairy: Amul's business heavily relies on dairy products, making it vulnerable to
fluctuations in milk production and demand.
Competition: The dairy industry in India is competitive, with other players vying for market share.

Supply Chain Challenges: Issues related to milk procurement and transportation can impact
Amul's operations.

Opportunities:

Diversification: Amul can explore diversification into non-dairy products or value-added dairy
products to capture new market segments.

Export Expansion: There is potential for Amul to expand its international presence by exporting
its products to more countries.

Health and Wellness Trends: With the growing focus on health and wellness, Amul can develop
and market healthier dairy products to cater to changing consumer preferences.

Technology Adoption: Embracing technological advancements in farming, processing, and

distribution can enhance efficiency and reduce costs.

Threats:

Competition: Intense competition from other dairy companies, both domestic and international,
poses a threat to Amul's market share.

Milk Price Volatility: Fluctuations in milk prices can impact Amul's profitability and the income
of dairy farmers.

Regulatory Changes: Changes in government regulations related to the dairy industry can affect
Amul's operations and business model.

Consumer Preferences: Shifting consumer preferences, such as a move towards plant-based

alternatives, could impact demand for traditional dairy products.

Global Economic Factors: Economic downturns and currency fluctuations can affect Amul's
exports and international business.

In conclusion, Amul has several strengths, such as a strong brand, a wide product range, and a
cooperative model. However, it also faces challenges, including competition and milk price
volatility. To thrive in the evolving dairy industry, Amul should explore diversification, expand
internationally, and adapt to changing consumer