Introduction

Performance appraisals of Employees are necessary to understand each employee’s

abilities, competencies and relative merit and worth for the organization. Performance
appraisal rates the employees in terms of their performance.

Performance appraisal is necessary to measure the performance of the employees and the
organization to check the progress towards the desired goals and aims.

Appraisal was used to decide whether or not the salary or wage of an individual employee
was justified The process was firmly linked to material outcomes. If an employee’s
performance was found to be less than ideal, a cut in pay would follow. On the other hand, if
their performance was better than the supervisor expected, a pay rise was in order. In
Dabur there are different methods to motivate and encourage employees who gain
imminsely from their work. The human resource department in the company takes lots of
time and effort to find new and innovative ways to motivate its employees. The employees
at lower level or at functional level get more satisfaction from the monetory rewards so they
are given more rewards in monetory terms rather than awarding them with other mental
satisfactory rewards.

PERFORMANCE MANAGEMENT

Performance system is fundamentally, a feed back process, which require sustained

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

THE PURPOSE OF APPRAISING PERFORMANCE

In general the appraisal systems serve a two fold purpose

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

To provide information to employees and managersfor use in making , work related

decisions.

More specifically appraisals serve the following purposes.

Appraisals provide feedback to employees and help the. “‘ management identify the areas
where development efforts are “‘ needed to bridge the gaps thereby serving as vehiclesfor
personal ” and career development. It helps management spot individuals who have specific
skills so that their promotions/transfer are in line with organizational requirements.
Appraisal serves as a key inputfor administering a formal organisation reward and
punishment system

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

VISION
“Dedicated to the health and well being of every household”

MISSION
Dabur believes in the mission of being a leader in the Natural Foods & Beverages Industry.
Dabur aims in offering quality products and distributing higher returns to stakeholders.
“Real” and “Real Activ” are the two fruit juice brands of Dabur, which are packaged in
different flavors like – Mixed Fruit Cucumber Spinach Juice and Mixed Fruit Beetroot Carrot
Juice.

Goals & Objectives

Objectives of the study includes:
To know the present system of performance appraisal.

To know the extent of effectiveness of the appraisal system

To identify and know the area for improvement system

Future Challenges
Forward Integration of SAP with Distributors and Stockiest. Backward Integration of SAP
with Suppliers.

Implementation of new POS system at Stockiest point and integration with SAP-ERP.
Implementation of SAP HR and payroll. SAP Rollout to DNPL and other new businesses.

Sample of the study

The population covered for the present study consisted of employee belonging to
supervisory and the level above. For the purpose of this study, survey covered the
employee of DABUR INDIA LTD. falling under supervisor and the level above.

The study covered a sample of 100 employees.

Methodology of the project
The project work has been carried out in three stages, a structured questionnaire with
objective and question was communicated tested and finalize. During the second stage, the
questionnaire was administered to the employees at Dabur India Ltd. by contacting them.
The work relating to data entry compilation, data analysis and report writing constituted the
third stage. Interview index was also used at some places to get information on the project
subject.

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The details of the methodology adopted are presented below:

The Questionnaire
Keeping in view the objective of the study, questionnaire was designed and tested on few
employees. After getting the proper response and sanction from the concerned department
the questionnaire was finalized.

Response to Questionnaire
In all 96 questionnaires were given to employees falling in the category of supervisors and
above. Out of which 48 could be collected back duly completed. The researcher individually
contacted the employees to get response on the questionnaire.

Limitations
Many employees gave guarded answers to some crucial questions.

Some of them did not fill the questionnaire due to lack of time

Response could not be collected from the total sample selected.

Some of the questionnaire could not be completed due to reasons other than

time factor.

The confidentiality of the system created some problem in getting information.

ORGANISATION PROFILE
Product and servicies
A vast array of products touching the life of almost every individual from an old man to a
new born; from rich to old, that’s how Dabur’s food products and personal health care
products could be nest explained. It is avaliable in more than 50 countreis world wide. It
comprises of:

Ayurvedic products
Chyawanprash
Leader in chyawanprash market in India. Dabur has conducted several clinical test which
prive its efficency in development of mind and strenghting the body

Digestives
Hajmola tablets
Hajmola tablets are the first classical product which being fun-filled has the goodness on
medical properties. In ayurveda it is named as Kshudhavedhak bati, and it is branded as
hajmola deriving its name from hajma which is an urdu word meaning digestion.

Hajmola Candy
Dabur launched hajmola candy in 1989 and till now company has added many flavors to it.

Pudin hara
One of the oldest products of Dabur portfolio is pudin hara. It is available in liquid and
capsule form. It has special combination of mint and essential oils.

Hingol
Asafoetida or hingis helpful in digestion and used a lot in indian cooking. Dabur hingoli has
goodness of all the hing and other herbs.

Childcare Products
Dabur Lal Tail
The largest baby massage oil in India, it has the goodness of herbs which helps in
strengthening the bones of infants

Dabur Janma Ghutti

This Ayurvedic preparation helps in strengthening the digestive system of new borns.

Women Care Products

Efarelle Comfort
A herbal medicine in self gel capsule form to help overcome abdominal pain during PMS. A
combination of natural oils, this formulation gives immediate relief from pain without any
side effects.

Hair & Skin Care

Dabur is the leader in hair care products in India, and has covered almost all the categories
of hair oils.

Dabur Amla Hair Oil -As a brand has made its mark beyond India and is a leading hair oil
brand in Middle East and Africa.

Vatika -The fastest growing hair oil brand of India, Vatika has single handedly created an
altogether new category of herbal enriched natural oils. The Vatika range also includes an
herbal shampoo, which has made its mark in the very first year of its launch in the
competitive shampoo market of India.

Gulabari -Rose water derived from best of Indian roses makes the skin supple and glowing.

Oral Care
Dabur Lal Dant Manjan -It is the second largest tooth powder brand of India and the largest
in coloured tooth power category. This herbal tooth powder is very popular in rural parts of
India.

Binaca Toothbrushes -After having acquired this dormant brand a few years back, Dabur
launched toothbrushes under this umbrella.

Dabur Honey
When repositioned in 1993, it totally changed the perception of Indian consumer. Honey,
which was mainly used for its medicinal properties in India, is today competing for space on
breakfast table.

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

Apart from food, Dabur Health Care offers wide range of ayurvedic and Health care
products. Dabur Consumer Health is the department that deals with the marketing of
Ayurvedic medicines worldwide. Dabur offers 350 Shastriya (Classical) ayurvedic
treatments and solutions. After a lot of market research Dabur Foods came up with a new
brand named as “Nature’s Best”, which was the initial brand of Dabur Food Services
Network. The 1kg Nature’s Best Tomato Ketchup was successfully launched after that.

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Joint Ventures
Dabon International Limited -Dabur has also collaborated with Bongrain

of France for the manufacture and marketingpf specialty cheese and other dairy products.
This joint venture company has already made its presence felt in the Indian cheese market
through the launch of processed cheese under the brand name LeBon, and a specialty
cheese under the brand name Delicious.

Subsidiaries
Dabur has six subsidiary units. These are:

Dabur Foods Limited -Dabur Foods Limited, a 100% subsidiary of Dabur India Limited, is
spearheading Dabur’s foray into food processing industry. The company, set up in April
1999, is marketing a range of fruit juices under the brand name Real, Hommade Cooking
Paste and Sauces and Lemoneez lemon juice. Dabur was the first company in India to
introduce fruit juices inpackaged form without any artificial additive.

Dabur Nepal Private Limited -Dabur Nepal was the first manufacturing base overseas for
Dabur group. The company is today the leading exporter of Nepal and the third largest and
most modern manufacturing base for Dabur.

Dabur Egypt Limited -Dabur Egypt is groups gateway to Africa. This manufacturing base set
up a couple of years back to c~ater to the demands of Middle East and African market is
producing Hair Care, Skin Care Products and Foods.

Dabur Oncology PIc. -Set up recently in UK, this subsidiary of Dabur India Limited will be
manufacturing anti-cancer formulations for European market. The company is in the
process of setting up manufacturing base near London and is expected to start operation
from year 2001.

Dabur Finance Limited

Dabur has an illustrious Board of Directors who are committed to take the company onto
newer levels of human endeavour in the service of mankind.
PERFORMANCE APPRAISAL
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 discussed under human
resource planning. These performance standards should also be clear and objective
enough to be understood and measured. Too often, these standards are articulated in some
such phrase as “afull day’s work” or “a good job”.

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

The final step in the appraisal is the initiation of corrective action when necessary.
Corrective action can, be of two types. One is immediate and deals predominantly with
symptoms. The other is basic and delves into causes. Immediate corrective action often
described as “putting out fires,” whereas basic corrective action gets to the source of
deviation and seeks to adjust the difference permanently

PERFORMANCE APPRAISAL SYSTEM IN DABUR INDIA LIMITED

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

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

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Company set goals to its employee by properly reporting with its employees and then
evaluating them upto what extent it has been achieved and if there is failure in reaching the
target what are the causes or reasons behind it.

Outcome of Performance Appraisal

As far as Dabur Company is concerned, there are four outcomes possible:

Outstanding -If the performance evaluated by the management turns out to be outstanding.
If the employee performs in such a way as to collect 3 consecutive outstanding
performances into his/her credit) he / she gets promoted.

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

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

ANALYSIS AND INTERPRETATION OF DATA

Promotions

The period of experience required for filling a higher post departmentally varies from 3-5
years. 5 years experience for promotion to managerial staff and 3 years experience for
promotion to Junior Management staff is needed. As per the guidelines from the personnel
department employees are to be promoted accordingly. However there is confusion among
the employee as these guidelines are not being explained time to time, many are not aware
of the existing promotion policy in the organisation.

30% agree that promotion is well defined in the organisation.However 54% were not able to
say it as there is lack of information about the promotion policy.Every employee need to be
communicated about the existing policy

Majority suggested for no change in the policy. It seems they are satisfied with

the current policy

Aligning goal
Respondent were asked about the present system, does it help in aligning individual goal
with those of the organisation.

Here the response from the supervisor were 45.83% for the factor that it help
in aligning their goal with those of organisation.

Career Progress

Career progress is also the responsibility of the employer to help him/her to identify the
career opportunity, make choices and develop his/her career and provide opportunities for
career planning and succession planning Question asked was as follows:

Are the issues like career planning and succession planning a part of Company’s policy?

Here only 46% of the respondent gave response that it does not while 38% gave response
that there is no career development plan at all.

CONCLUSIONS
The process of performance appraisal followed in Dabur India Ltd. at the supervisory and
above level IS to say not good but of satisfactory level. The employees do not rate it very
good . The appraisal outcome has to be used frequently for the purpose of reward on
performing well together with the feedback on the performance. Also when performance
goes down employee has to be given feedback and motivated to do better.

Performance appraisal in Dabur India Ltd is done on an annual basis.

More emphasis on training and job rotation as remedial measures.

.
Recommendations &
feedback

Through the study and reviews of the employees of dabur about the performance
apparasial format and methodology which Dabur has it is recommended that:

Remedial measure

Based on the performance the remedial measures are taken to do away with weakness if
any and build on the strength and add to the existing capability

Here the responses were both for job rotation and training programme.

Feedback

Feedback provides for the area of improvement.Respondent were asked about the
frequency of feedback based on their performance. 41 percent responded that feedback is
provided though on a few occasion. The frequency has to increase both from the individual
and organisation point of view to keep the individual motivated for work in line with the
organisational expectation.

QUESTIONNAIRE ON PERFORMANCE APPRAISALName: -

________________________________ Age_________Gender: [ ] Male [ ] Female Q-1. Do you
understand the basic objective of performance appraisal? Fully- Partially- No- Q-2. Is there a formal
appraisal system in your organization? Yes No Q-3. In your view does the performance appraisal
system function fairly/ equitably? YES- NO- Q-4. How is your performance appraised- individually, in
a team or both? Individually- In Team- Both- Q-5. Do you agree that the performance appraisal system
adopted by the firm is able to gauge the real performance of employee? Fully agree- Partially- Not at
all- Q-6. Is the appraisal system able to show the areas in which a person needs improvement? YES-
NO- Q-7. Is the appraisal system able to show the progress one has made in order to his/her set target?

1. Questionnaire on Performance Management System Disclaimer: The data gathered through this
interview schedule would be used exclusively for the purpose of academic research only Section – A:
General Profile of Respondents: 1. Sex: Male Female 2. Age group: 25 – 35 36-45 46+ 3.
Designation : _______________________ 4. Experience a. Less than 1 year b. 2-4years c. 5-7 years
d. More than 7 years 5. Which of the following economic sectors best describes your organization? a)
Public Sector b) Private Sector- manufacturing c) Private Sector – Service d) others (pls. specify) 6.
Approximately how many people are employed in your organisation? a) Less than 100 b) 101-500 c)
501-1000 d) More than 1001 Section B: Nature of current performance management systems: 1. Does
your organisation operate a formal performance management system? a) Yes b) No 2. If yes, which of
the following groups of employees do these processes apply to? Senior Managers Other
Managers/team leaders Technical/ Clerical Professionals Manual/ Blue Collar 3. How do the
performance management processes you operate differ between the above groups? a) Adoption of
different methods of appraisal for different groups b) Extensive use of self-appraisal for certain bands
of employees c) Adopting different time spans of appraisal for the different groups 4. What are the
techniques that are used in your organization for assessing performance? a) Observation b)
Assessment and Development Centers d) Checklists e) Others pls. specify
___________________________________ 5. Please indicate which of the following methods of
performance appraisal form a part of your system? a) Written Essay method f) Critical Incident
assessment b) Graphic rating scales g) Behavioural Assessment (BARS) c) Ranking method h) Paired
Comparison Method d) 360 degree appraisal i) Forced distribution method e) Self appraisal j) Balance
Score card k) Any other pls. specify_______________
2. 2. 2 6. Are the following processes a part of your performance management systems? a) Coaching b)
Training and development c) Career management & development d) Succession planning plans 7.
Who sets the performance goals/requirements for individuals? a) Senior Managers b) Line
managers/Team leaders c) HR professionals d) Appraisee e) Appraiser & Appraisee e) Others (pls.
specify) 8. Why do you have performance management systems in your organisation? (Please tick as
many boxes as appropriate) Retention strategy Reward allocation Identification of training and
development needs Facilitates Promotions & Transfers & Termination decisions To clarify an
employee’s job requirements Identifying barriers to performance Motivational Strategy. 9. How are
individual, team and organizational objectives linked? a. Cascading of goals(Top – down approach) b.
By enabling employees to see how their job contributes to the overall objectives of the organisation
 through frequent interactions. c. Comparing employee performance with work groups 10. What are
the determinants for job performance in your organisation? Organizational Culture Technology
Competency of the employee Intelligence Attitude Aptitude Section – C: Perceptions of HR
Professionals about Performance Management Systems: 1) What according to you is the most
challenging aspect of performance management? a) Determining the evaluation criteria b) Creating a
rating instrument c) Lack of competence d) Errors in rating and evaluation e) Resistance 2) What is
the difference between performance appraisal and performance management? a) They are the same b)
Performance management has a wider scope. 3) The quality management guru Edward Deming had
called performance management as a “deadly disease”. Do you agree with him? a) Yes b) No
3. 3. 3 4) Success of performance management systems depend on: a) Alignment of individual goals to
organizational goals b) Choosing the right method of appraisal 5) How is performance -linked pay
related to performance management in your organization? a) Performance – Linked incentives b)
Promotions coupled with salary increase c) Provision of Fringe Benefits d) Providing ESOP’s 6) Who
should own the performance management system? a) Line managers b) HR Managers c) Employees
7) Do performance appraisals get done because the system requires it in your organisation? ( i.e. is it a
bureaucratic chore)?a) Yes b) No 8) Does performance management distract people from more
important activities? a) Yes b) No 9) According to you performance management involves: a)
Looking backwards b) Filling forms c) Focuses on development and fostering communication d) Any
other, pls. specify______________ 10) What is the relevance of human judgement in a Performance
Management System? a) Highly relevant b) Has no place in competency – based performance
management Section – D: Process of Performance Management 1. Do you give an overall rating for
performance? a) Yes b) No 2. If yes, what sort of feedback do you give? a) Numerical/alphabetical b)
Verbal(all positive) c) Verbal (positive and negative) d) Combination of the above e) Others (pls.
specify) 3. Documentation of performance reviews is the function of: a) HR department b) Line
Manager/ Project Manager c) Individual d) others (pls. specify) 4. Do you have a separate appraisal
system for evaluating teams? a) Yes b) No 5. Do you undertake performance planning? a) Yes b) No
6. If yes, when is performance planning carried out? a) Hiring or transferring employees b)Business
plans are newly developed. c) Annual performance and development reviews have been completed 7.
How many meetings are scheduled in a year to discuss employee performance? a) 1 b) 2 c) 3 or more
8. Did the following people receive training in performance management techniques? (Please tick as
many boxes as appropriate)
4. 4. 4 All Employees Other Managers/team leaders Heads of departments Appraisers HR Team None
9.Are there trade unions operating in your organisation? a) Yes b) No 10. If yes, were the current
performance management arrangements agreed with the union? a) Yes b) No 11. What was the
attitude of the union(s)? a) Positive b) Neutral c) Negative Section E: Analysis on Issues in
Performance Management: 1. What in your opinion are the causes for failure of performance appraisal
system? a) Lack of role clarity b) Interval of appraisals c) Lack of communication by superiors d) Any
other pls. specify______________________________ 2. What are the stages of performance
management during which you communicate with your employees? a. Goal-setting stage b. Data-
gathering stage c. Mid – term reviews d. Annual Reviews 3. Do you use any of the following to
reduce subjectivity and bias in the performance appraisal system? a) Multiple raters b) Critical
Incidents c) Continuous Observation d) Peer review outcomes e) Selective evaluation f) Training
evaluators 4. What do you do when you identify poor performers post your review session? a)
Training b) Improvement coaching d) Relocation e) Dismissal/discharge 5. As an appraiser which role
do you think you perform better? a) Judge b) Helper c) Both 6. Do you believe that the entire process
can be carried out objectively? a) Yes b) No 7. Your opinion on employee self-appraisal? a) Highly
beneficial b) Beneficial to a certain degree c) tends to be inflated d) Not beneficial at all 8 .In which of
the following situations you find yourself uncomfortable: (pls. tick as many options as appropriate) a)
Appraising distant subordinate b) Appraising technically superior subordinate c) The older, highly
experienced subordinates d) The highly compensated individual e) Dealing with unrealistic
expectations f) Coping with employee defensiveness 9. What according to you would constitute
psychological barriers to effective performance appraisal?
5. 5. 5 a) Feelings of insecurity b) Being too skeptical or modest c) Worrying that performance appraisal
might cause resentment to subordinates. 10. Do you believe that linking rewards to performance
would: a) motivate employees b) compound problems Section F: Effectiveness of Performance
Management Systems and methods used in evaluation: 1. Is there a formal system for evaluation of
performance management practices of the organisation? a) Yes b) No 2. If yes, please specify the
process you use, to evaluate. a) Opinion/ attitude surveys b) Informal feedback (verbal) c) Formal
Feedback (written) d) Others (pls. specify) 3. What strategies of your organization have been linked to
the performance management systems to make it more effective? a) Reward Strategy b) Culture
Strategy c) Team work strategy d) Leadership strategy 4. Is attrition rate computed in your
organisation after the performance appraisal? a) Yes b) No 5. If yes, what do the trends suggest with
regard to attrition during the post appraisal phase? a) Increase in employee turnover b) Decrease in
employee turnover 6. In general, how effective has your organization’s performance management
processes proved in improving overall performance? a) Effective b) Moderately effective c)
Ineffective d) Don’t Know 7. Which according to you would improve effectiveness of an
organization’s performance management process? a) Bureaucratic approach b) Participative approach
8. Are you going to make any changes to your performance-management systems in the next 12
months? a) Yes b) No c) Don’t Know 9. If yes, in what aspect of performance management would you
introduce the change?_______________________________________________________
__________________________________________________________________ 10. Are there any
other comments you would like to make about your performance management arrangements not
covered in the questions above?
__________________________________________________________________
__________________________________________________________________
__________________________________________________________________
6. 6. 6 __________________________________________________________________
__________________________________________________________________
______________________________________________________