a study on performance appraisal

Performance Appraisal

A STUDY ON PERFORMANCE APPRAISAL

WITH REFERENCE TO

HINDUSTAN COCA- COLA BEVERAGES PRIVATE LIMITED

VISHAKAPATNAM

A project report submitted to JNT University, Kakinada in partial

fulfillment of the requirement for the award of the degree of

Master of Business Administration

Submitted by

YAVVARI LALITHA KUMARI

Regd.no.09PM1E0058

Under the guidance of

Mr.SAUMENDRA DAS

LLM, MBA (PhD)

DEPARTMENT OF MANAGEMENT STUDIES

AITAM SCHOOL OF COMPUTER SCIENCES AND MANAGEMENT

(Approved by AICTE, New Delhi & Affiliated to JNTU, KAKINADA)

K.Kotturu, Tekkali.

2009-2011

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AITAM SCHOOL OF COMPUTERSCIENCES AND MANAGEMENT(Approved by AICTE, New Delhi & Affiliated to JNTU, KAKINADA)

K.KOTTURU, TEKKALI- 532201

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that the project entitled on PERFORMANCE APPRAISAL

with reference to HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED is

Submitted by YAVVARI LALITHA KUMARI, bearing Regd. No. 09PM1E0058 in

partial fulfillment of the requirement for the award of degree of Master of Business

Administration from Aitam School Of Computer Sciences And Management is a record

of bonafide work carried out by her under my guidance and supervision.

The result embodied in this project work has not been submitted to any other

university or Institution for the award of any degree or diploma.

(DR. D. VISHNU MURTHY) (MR. SAUMENDRA DAS)

PRINCIPAL PROJECT GUIDE

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ACKNOWLEDGEMENT

I am very thankful to the entire team of HINDUSTAN COCA COLA BEVERAGES

PVT.LTD for their cooperation, without which completion of this project would not have

been possible.

I am extremely grateful to Mr. N.V.S RAMANA MURTHY (HR MANAGER) for

providing me with valuable insights about the base metals. I would like to thank him for the

patience shown by him and being of such a great help to all my queries.

I express my sincere gratitude to DR. D.VISHNUMURTY, Principal of ASCAM for

giving to me this opportunity to carry out this project.

I would like to thank Mr. SAUMENDRA DAS for his valuable guidance and

encouragement and constructive suggestions throughout the project work.

Finally I thank to my parents for their continue support and help in the completion of

my project.


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DECLARATION

I hereby declare that this project entitled PERFORMANCE APPRAISAL WITH

REFERENCE to HINDUSTAN COCA-COLA BEVERAGES PVT.LTD has been prepared by

me during Period (DECEMBER-JANUARY, 2010-2011) and submitted to AITAM SCHOOL

OF COMPUTER SCIENCES AND MANAGEMENT, TEKKALI. In partial fulfillment of the

requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION from

JAWAHARLAL NEHRU TECHNOLOGY UNIVERSITY, KAKINADA

I also declare that this project works in the result of my sincere effort and that it is

has not been submitted to any other university for the award of any degree or diploma.


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CONTENTS

CHAPTER NO TITLE PAGE NO

CHAPTER – 1: 1.1 INTRODUCTION OF THE STUDY 10

1.2 NEED FOR THE STUDY 12

1.3 OBJECTIVES OF THE STUDY 13

1.4 METHODOLOGY OF THE STUDY 14

1.5 LIMITATIONS OF THE STUDY 16

CHAPTER – 2: AN OVERVIEW OF CRONIMITE

2.1 PROFILE OF INDUSTRY 18

2.2 INDIAN FERRO ALLOYS IN THE WORLD 22

MARKET

2.3 FUTURE PROSPECTS OF INDUSTRY 23

2.4 INDUSTRY GENESS AND GROWTH 25

2.5 ORGANISATION STRUCTURE 28

2.6 FINANCIAL MANAGEMENT 30

2.7 MATERIALS MANAGEMENT 34

2.8 PRODUCTION MANAGEMENT 35

2.9 PERSONNEL MANAGEMENT 41

2.10 COOPERATIVE STORES 43

2.11 MANAGEMENT INFORMATION SYSTEM 44

2.12 MARKETING MANAGEMENT 44

CHAPTER - 3: THEORETICAL FRAMEWORK

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3.1 INTRODUCTION TO RECRUITMENT 48

3.2 RECRUITMENT POLICY 48

3.3 SOURCES OF RECRUITMENT 49

3.4 METHOD OF RECRUITMENT 49

3.5 RECRUITMENT PROCEDURE 49

3.6 SELECTION PROCEDURE 50

3.7 APPOINTENT 52

3.8 RECRUITMENT AND SELECTION IN CRONIMET 53

3.9 OBJECTIVES OF RECRUITMENT AND SELECTION 54

3.10 INTERNAL AND EXTERNAL SOURCES 55

3.11 SELECTION PROCEDURE 59

CHAPTER - 4: 4.1 DATA ANALYSIS AND INTERPRETATION 63

CHAPTER - 5: SUMMARY, FINDINGS AND SUGGESTION

5.1 SUMMARY 83

5.2 FINDINGS 87

5.3 SUGGESTIONS 90

BIBLIOGRAPHY 92

APPENDIX 94

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LIST OF TABLES

SL NO PARTICULARS PAGE NO1 TABLE NO-4.1.12 TABLE NO-4.1.23 TABLE NO- 4.1.34 TABLE NO-4.1.45 TABLE NO-4.1.56 TABLE NO-4.1.6

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7 TABLE NO-4.1.78 TABLE NO-4.1.89 TABLE NO-4.1.910 TABLE NO-4.1.1011 TABLE NO-4.1.1112 TABLE NO-4.1.1213 TABLE NO-4.1.1314 TABLE NO-4.1.1415 TABLE NO-4.1.1516 TABLE NO-4.1.1617 TABLE NO-4.1.1718 TABLE NO-4.1.18

LIST OF FIGURES

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SL NO PARTICULARS PAGE NO

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1 ORGANSATION CHART2 AVAILABILITY OF JOB3 BASIS OF SELECTION4 INVOLVEMENT OF HEAD5 SOURCE OF RECRUITMENT6 TYPE OF SELECTION7 CONCENT ON SELECTION8 PROMOTION 9 PREFERENCE TO INTERNAL SOURCES10 INGREDIENTS FOR INTERVIEW11 ORIENTATION CLASS12 EMPLOYEE TRANSFER13 EMPLOYEE REFERRALS14 SELECTION PROCEDURES15 PSYCHOMATRIC TEST16 EMPLOYEE AGREEMENTS17 PROBATION PERIODS18 HIRING PROCESS

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CHAPTER – I

INTRODUCTION

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1.1 INTRODUCTION OF THE STUDY

Performance appraisal is “the process of evaluating the performance and

qualification of the employees in terms of the administration including for promotion,

providing financial rewards and other placement, selection actions which require

differential treatment among the members of a group as distinguished from actions

affecting all members equally.”

Definition:

Performance appraisal is the systematic evaluation of individual with respect to

his/her performance on the job and his/her potential for development.

Performance appraisal is the systematic description of employee’s job relevant

strength and weakness. The purpose is to find out how well the employee is performing

his job and establish a plan of improvement. Performance appraisal is arranged

periodically according to a definite plan. Performance appraisal is not job evaluation.

Performance appraisal refers to how well someone is doing the assigned job. Job

evaluation determines how much a job is worth to the organization and, therefore, what

range of pay should be assigned to the job.

Once the employee has been selected, trained and motivated, he is then appraised

for his performance. Performance appraisal is essential in escapable managerial activity for

enhancing organizational performance. It adminstrative and training and development

decisions and motivating employees.

A performance of a job in terms of its requirements “observes, it is the process of

evaluating the performance of qualification of the employees in terms of the requirements

of the job to which he is employed for the purpose of administration including placement,

selection for promotions, providing finance rewards and other actions which require

differential treatment among the members of a group as distinguished from action

affecting all members equally.

Initially the appraisal system was started for the purpose of making administrative

decisions relating to promotions transfers and salary increments, however over the years

the performance appraisal system are being upon to serve a variety of purpose. They are,

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Administrative purpose

Motivational purpose

Development purpose

Performance improvement

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.

In this present situation performance appraisal become important aspect for the

growth and development of the organisation. As beverages industries are recruiting their

employees day to day and providing the best remunerations and facilities, the student

researcher thought to do her survey in Hindustan Coca-cola Beverages Ltd,

Vishakhapatnam to know about the fact in that organisation. The student researcher again

tried to compare the theories available in the books, journals etc with the practical

implementation in that company. She revealed the situation and found that the appraisa

system adopted by the company was good and satisfactory among all the employees.

Further she quoted points and suggested few points for the development of the

employees.

1.2 NEED FOR THE STUDY

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A very good system of performance appraisal system is neede by an organization

that wants to be dynamic and growth oriented. It is to be remember that the employee

needs to be satisfied and there should be no difference between the review and appraised

employee.

It plays a major role in the process of communication between the superior and the

subordinate. A good appraisal system is the best requirement to bring up the organization

and its productivity.

HCCBP Limited is having a very good system of performance appraisal system

because it has laid its own philosophy and well planned procedure in rating the employees

which is very important for the development of both individual and organization.

Management is also providing all the requirements of the employees for the

completion of the work and even the system constitute goal setting, periodic reviews,

feedback and consequence management, and finnaly rating is given as per this reviews.

The employee assessment has been done by the system of appraisal by the

superior and have the final authority for the rating. Here the employees are given chance

for their individual development. The action is taken according to the ratings of appraised

employee.

Creating and maintaining the satisfactory level of performance of employees in

their present job.

Provide feedback information about the level of achievement and behavior of

subordinate.

Provide information which helps to counsel subordinate.

To prevent grievances and in disciplinary activities.

Highlighting the employee needs and opportunities for personal growth and

development.

Aiding in decision making for promotions, transfers, layoffs and discharges.

Promoting understanding between the supervisor and the subordinates.

Providing useful criteria for determining the validity of selection and training.

1.3 OBJECTIVES OF THE STUDY

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1. To study and analyze different performance appraisal schemes provided by the HCCB

PVT.LTD.

2. To study the existing annual performance appraisal system in HCCB PVT.LTD.

3. To study the efficiency of the system and overall rating during last year.

4. To study the interpersonal and team relationship with peers, superiors and

subordinates.

5. To study the performance feedback and counseling system for employees in HCCB

PVT.LTD.

6.To analyze the employee attitude towards the present appraisal system.

7.To enhance job satisfaction and self actualization of employees by encouraging, and

assisting every employee to realize his or her full potential.

1.4 METHODOLOGY OF THE STUDY:

Research is a careful investigation or enquiry especially through search for new

facts in any branch of knowledge.

According to Redman and Mory, “Research is a systematized effort to gain new

knowledge”.

RESEARCH DESIGN:

“A Research Design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the research purpose with economy

in procedure”.

Generally the Research Design can be conveniently described in 3 ways. They are,

Research Design in case of exploratory research studies.

Research Design in case of descriptive and diagnostic research.

Research Design in case of hypothesis-testing research studies.

The present study is of descriptive study.

SOURCES OF DATA

The sources for collecting the data are from both

● Primary Method

● Secondary Method

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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 tools for collecting this primary data are by

two types namely Interview Method and Questionnaire Method.

Secondary Data

The Secondary data are those which have already been collected by someone else

and which have already been passed through the statistical process in the company.

SAMPLE SIZE

All items in any field of in query constitute a ‘universe’ or ‘population’. A finite

subset of the population gives a sample.

The statistical units in the sample are called sample units. The number of units in

the sample is called the size of the sample.

If the size of the sample is less than or equal to 30 then it is called as a small

samples. Otherwise that it if the size of the sample is greater than 30, it is called as large

samples.

The sample size of the survey is taken as 70 respondents.

SAMPLING PROCEDURE

Sampling is the selection of group with a view to obtain information about the

whole is group of persons that represents particular community.

The sampling method used was random sampling. This sampling method was used

because of lack of time and lack of through knowledge about the universe. The sample

size was fixed to 70 respondents.

SAMPLING TECHNIQUE

● Simple random sampling

RESEARCH INSTRUMENTS

1. Personal interviews: Schedulers where administered personally for Collecting the data.

2. Questionnaire : The questionnaire comprises of open ended questions and closed

ended questions.

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STATISTICAL TOOLS USED

● Bar charts

● Pie-charts

● Tables

1.6 LIMITATIONS OF THE STUDY

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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CHAPTER – II

INDUSTRY PROFILE AND COMPANY PROFILE

2.1 GENESIS AND GROWTH

The History of Soft Drinks

Soft drinks can trace their history back to the mineral water Found in

natural springs. Bathing in natural springs has long been considered a healthy thing to do;

mineral water was said to have curative powers. Scientists soon discovered the gas

harmonium or carbon dioxide was behind the Bubbles in natural mineral water. The first

marketed soft drinks (non-carbonated) appeared in the 17 Century. They were made from

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water and lemon juice sweetened with Honey. In 1676, the companies de Lemonades of

Paris were granted a Monopoly for the sale of lemonade soft drinks. Vendor would carry

Tanks of lemonade on their backs and dispensed cups of the soft drink to Thirsty Parisians.

Joseph Priestley

In 1767, the first drinkable man-made glass’ of carbonated water was

created by Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torero

Bergman invented a Generating apparatus that made carbonated water from chalk by the

use of sulfuric acid. Bergman’s apparatus allowed imitation mineral Water to be produced

in large amounts.

John Mathews

In 1810, the first United States patent was issued for the” means of mass

Manufacture of imitation mineral waters” to Simons and Rendell of Charleston, South

Carolina. However carbonated beverages did not achieve great popularity in America until

1832, when John Mathews Invented his apparatus for the making carbonated water. John

Mathews Then mass-manufactured his apparatus for sale to soda fountain owners.

Health Properties of Mineral Water

The drinking of either natural or artificial mineral water was considered a

healthy practice. The American pharmacists selling mineral waters Began to add medicinal

and flavorful herbs to unflavored mineral water. They used birch bark, dandelion,

sarsaparilla, and fruit extracts. Some Historians consider that the first flavored carbonated

soft drink was that made in 1807 by Doctor Philip syng Physic of Philadelphia. Early

American pharmacies with soda fountains became a popular part of Culture. The

customers soon wanted to take their “health” drinks home with them and a soft drink

bottling industry grew from consumer demand.

The Soft Drink Bottling Industry

Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated drink

bottle tops during the early days of the bottling industry. Carbonated drink bottles are

under a lot of pressure from the Gas. Inventors were trying to find the best way to prevent

the carbon Dioxide or bubbles from escaping. In 1892, the “Crown Cork Bottle Seal” Was

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patented by William Painter, a Baltimore machine shop operator. It was the first very

successful method of keeping the bubbles in the bottle?

Automatic Production of Glass Bottles

Coca-Cola® originated as a soda fountain beverage in 1886 selling for five

cents a glass. Early growth was impressive, but it was only when a strong bottling system

developed that Coca-Cola became the world-famous brand it is today.

1894…………….A modest start for a bold idea

1899…………….The first bottling agreement

1900-1909………Rapid growth

1916…………….Birth of the contour bottle

1920s……………Bottling overtakes fountain sales

1920s and 30s…...International expansion

1940s……………Post-war growth

1950s……………Packaging innovations

1960s……………New brands introduced

1970s and 80s…...Consolidation to serve customers

1990s……………New and growing markets

21st Century……..

The Coca-Cola bottling system grew up with roots deeply planted in local

communities. This heritage serves the Company well today as people seek brands that

honor local identity and the distinctiveness of local markets. As was true a century ago,

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strong locally based relationships between Coca-Cola bottlers, customers and

communities are the foundation on which the entire business grows.

Historical events of Coca-Cola

1885

John Pemberton invented the original recipe for a new coca wine. He named it

Pemberton’s French

Wine Coca, which was believed to be inspired by Vin Mariani, a popular coca wine

invented by Angelo Mariani.

1892

Made the first big break in Coca Cola history. Candler incorporated The Coca-Cola

Company in 1982, and began marketing the product.

1894

Bottles of Coca-Cola were sold starting in 1894.

1899

The first bottle was sold in Vicksburg, Mississippi. In 1899, Chattanooga, Tennessee

became the first site of a Coca-Cola bottling company.

1955

Coke cans were sold starting in 1955.

1985

Coca-Cola attempted to change the original formula. Most consumers preferred the taste

of the original Coca-Cola, and many ceased purchasing the product until the company

switched back to the original formula. It was renamed Coca-Cola Classic to show

consumers that the drink had reverted back to its original formula.

2000

Coca Cola is now being sold around the world, in more than 200 different countries. The

Coca-Cola Company now sponsors an assortment of events, including the “Olympic

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Games”, and “NASCAR”. In England, it is the primary sponsor of “The Football League”. It

is also featured in several television shows including “The Gods Must Be Crazy”.

2005

Coca Cola history took another leap in the market. In 2005, the company launched “Diet

Coke’, sweetened with artificial flavors. Later in 2005, it announced “Coca Cola Zero’,

sweetened with aspartame and ace sulfate potassium.

Coca Cola enjoyed in step by step worldwide

Atlanta Beginnings (1986- 1892)

Coca Cola is enjoyed in the United States.

Coca Cola made its debut in Atlanta, At Jacobs’ pharmacy Soda fountain where it

is sold for 5 cents a glass.

It was 1886, and in New York Harbor, workers were constructing the Statue of

Liberty. Eight hundred miles away, another great American symbol was about to be

unveiled.

John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One

afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he

carried it a few doors down to Jacobs’ Pharmacy. Here, the mixture was combined with

carbonated water and sampled by customers who all agreed -- this new drink was

something special. So Jacobs’ Pharmacy put it on sale for five cents a glass.

Pemberton’s bookkeeper, Frank Robinson, named the mixture Coca-Cola®, and

wrote it out in his distinct script. To this day, Coca-Cola is written the same way. In the

first year, Pemberton sold just 9 glasses of Coca-Cola a day.

A century later, The Coca-Cola Company has produced more than 10 billion

gallons of syrup. Unfortunately for Pemberton, he died in 1888 without realizing the

success of the beverage he had created.

Beyond Atlanta (1893-1904)

Coca - Cola hires first celebrity spokesperson,

Music hail performer Hilda Clark appears in advertisements.

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Safe guarding the Brand (1905-1918)

Coca-Cola is enjoyed in 8 countries worldwide.

The Contour Bottle to combat copycats, Coca-Cola develops a unique bottle.

1916, they began manufacturing the famous contour bottle. The contour bottle, which

remains the signature shape of Coca-Cola today, was chosen for its attractive appearance,

original design and the fact that, even in the dark, you could identify the genuine article.

The woodruff Legacy (19 19-1940)


Coca-Cola introduces the six packs.

This convenient packing revolutionizes soft drink consumption by enabling people

to enjoy Coca-Cola anywhere.

Woodruff was a marketing genius who saw opportunities for expansion

everywhere. He led the expansion of Coca-Cola overseas and in 1928 introduced Coca-

Cola to the Olympic Games for the first time when Coca-Cola traveled with the U.S. team

to the 1928 Amsterdam Olympics. Woodruff pushed development and distribution of the

six-pack, the open top cooler, and many other innovations that made it easier for people

to drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge

success.

The war and its Legacy (194 l-1959)


Introducing Coke

The elf-like sprite is introduce to promote the use of the worldwide “Coke”

A world of customers (196l-l980)

Coca-Cola is enjoyed 163 countries worldwide.

Teaching the world to sing

During the 70’s Coca-Cola thrilled the world with its exciting and dynamic advertising

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After 70 years of success with one brand, Coca-Cola®.

The Company decided to expand with new flavors:

Fanta®, originally developed in the 1940s and introduced in the 1950s;

Sprite® followed in 1961, with TAB® in 1963 and Fresca® in 1966. In 1960,

The Coca-Cola Company acquired The Minute Maid Company, adding an entirely

new line of business - juices -- to the Company.

Advertising for Coca-Cola, always an important and exciting part of its business,

really came into its own in the 1970s, and reflected a brand connected with fun, friends

and good times. The international appeal of Coca-Cola was embodied by a 1971

commercial, where a group of young people from all over the world gathered on a hilltop

in Italy to sing “I’d Like to Buy the World a Coke.”

1978, The Coca-Cola Company was selected as the only Company allowed to sell

packaged cold drinks in the People’s Republic of China.

Diet Coke and New Coke (1982-1989)

Coca-Cola is enjoyed 165 countries worldwide

Coke in space

In 1985, Coca-Cola becomes the first soft drink ever in space.

New Markets and Brands (1990-1999)

Coca-Cola is enjoyed in nearly 200 countries worldwide.

Refreshing the world through sports

The Company continues its long standing association with athletic events

including the Olympic Games and the FIFA world cup.

The l990s were a time of continued growth for The Coca-Cola Company. The

Company’s long association with sports was strengthened during this decade, with

ongoing support of the Olympic Games, FIFA World CupTM foot ball (soccer), Rugby World

Cup and the National Basketball Association. Coca-Cola classic became the Official Soft

Drink of NASCAR racing, connecting the brand with one of the world’s fastest growing and

most popular spectator sports.

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1993 saw the introduction of the popular “Always Coca-Cola” advertising

campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New

markets opened up as Coca-Cola products were sold in East Germany in 1990 and

returned to India in 1993.

New beverages joined the Company’s line-up, including PowerAde® sports

drink, Qoo® children’s fruit drink and Dasani® bottled water. The Company’s family of

brands further expanded through acquisitions, including Limca®, Maaza® and Thurns

Up® in India, Barq’s® root beer in the U.S., Inca Kola® in Peru, and Cadbury

Schweppes’® beverage brands in more than 120 countries around the world. By 1997, the

Company already sold 1 billion servings of its products every day, yet knew that

opportunity for growth was still around every corner.

Coca-Cola now (2000-now)

Coca-Cola is enjoyed in more than 200 countries worldwide.

Welcome to ‘The Coke side of life”

Coca-Cola global marketing flat form makes its debut.

1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy.

Now well into its second century, the Company’s goal is to provide magic every time

someone drinks one of its more than 500 brands.

From the early beginnings when just nine drinks a day were served, Coca-Cola

has grown to the world’s most ubiquitous brand, with more than 1.4 billion beverage

servings sold each day. When people choose to reach for one of The Coca-Cola Company

brands, the Company wants that choice to be exciting and satisfying, every single time.

Milestones

1969

• Hellenic Bottling Company S.A. is headquartered in Athens.

• The Coca-Cola Company grants bottling rights in Greece.

1981

• Kar-Tess Holding S.A. acquires 99.9 per cent interest in Hellenic Bottling Company

S.A.25


1991

• Hellenic Bottling Company S.A. shares are listed on the Athens Stock Exchange.

1998

• Coca-Cola Amatil Limited de-merges its European operations, resulting in the

formation of

Coca-Cola Beverages plc.

2000

• Coca-Cola Beverages plc is acquired by Hellenic Bottling Company S.A. to form Coca-

Cola Hellenic Bottling Company S.A.

• Included in the social responsibility index FTSE4Good.

2001

• Expanded territory to include The Coca Cola Company’s Russian territories, yielding

full control of Russian Coca-Cola bottling operations.

• First operation certified ISO 14001.

2002

• Acquired all bottling operations in the Baltic’s.

• Acquired Valser Mineraiquellen AG in Switzerland and Dorna Apemin in Romania.

• Coca-Cola Hellenic Bottling Company S.A. lists its American Depositary Receipts

(ADRs) on the New York Stock Exchange.

• FTSE4Good listing confirmed under the new stricter environmental, social and

human rights criteria.

2003

• Twentieth anniversary of our Amita juice brand, the market leader in Greece with 29

flavors.

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• Recapitalization plan results in a return of €2 per share to shareholders.

• Acquired Multi vita sp. z.o.o, in Poland and Romerquelle GmbH in Austria.

• Acquired the Greek potato chip company Tsakiris S.A.

• First country operations certified OHSAS 18001.

2004

• Acquired Gotalka d.o.o., a water company in Croatia.

• Eight Coca-Cola Hellenic Bottling Company territories join the European Union (EU).

• Published the first Global Reporting Initiative (GRI) report in the non-alcoholic

beverage industry.

2005

• Acquired Vlasinka d.o.o. mineral water company in Serbia and Bankya Mineral

Waters Bottling Company E.O.O.D. in Bulgaria.

• Acquired the Multon Z.A.O. Group, a leading Russian fruit juice company.

• Acquired Vendit Ltd, one of the largest independent vending operators in Ireland.

• Signed the UN Global Compact.

• Ratified the UNESDA commitments to the EU Platform on Diet and Health.

• Launched the Green Danube Partnership with the International Commission for the

Protection of the Danube River (ICPDR).

2006

• Sales volume exceeds 500 million unit cases of non-sparkling drinks for the first time

in one year.

• Acquired the Fresh & Co d.o.o. Group, a leading Serbian fruit juice company.

• Acquired Lanitis Brothers Public Limited, the Coca-Cola bottler in Cyprus.

• Acquired Fonti del vulture S.r.l., a producer of high quality mineral water in Italy.

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• Acquired Yoppi Kft., a hot and cold beverage vending operator in Hungary.

• Named Notable Reporter on Progress by the UN Global Compact.

2007

• Acquired Eurmatik, a full-line vending operator in Italy.

• Acquired a newly constructed beverage production facility, Aqua vision in Russia.

• Signed the UN Global Compact CEO Water Mandate, Caring for Climate statement

and the Bali Communiqué.

• Announced intent to build 15 combined heat and power (CHP) units to reduce total

carbon dioxide emissions from operations by 20 per cent.

• Opened the first industry-owned PET-to-PET recycling plant.

• Achieved the milestone of two billion unit case sales volume in one year.

• Earnings before interest, tax, depreciation and amortization (EBITDA) per annum in

excess of €l billion for the first time.

• Launched guideline daily amount (GDA) labeling in the EU states.

2008

• Formed three-party joint venture with The Coca-Cola Company and illycafe SpA, Italy

producer of premium coffees, to manufacture, market, sell and distribute premium

ready-to- drink (RTD) iced coffee products.

• Acquisition of Socib, the second largest Coca-Cola franchise bottler in Italy.

• Included in the Dow Jones Sustainability Indexes (DJSI).

2009

• Agreement with Campbell Soup Company regarding the distribution by Coca-Cola

Hellenic of Campbell soup and broth products throughout Russia.

2.2 ORGANIZATIONAL STRUCTURE

Organization Structure and Management Of Coca-Cola India (Limited)

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The word Organization” has two meanings. In the first instance, it signifies

institution or functional group and the second meaning refers to the process of organizing

the way of work which is arranged and allocated among the members of the organization,

so that the goal of the organization can be achieved efficiently. The organization process

involved the balancing of the companies on one hand changes on the other hand.

Organization structure gives stability and reliability to the action of its members.

Organization structure can be defined as the relationship existing among the

various jobs and positions within an organization an organization structure specifies its

division of work activities and shows how different functions or activities are linked.

The following table shows the description of the employees along with the

designation and also the number of employees.

SL. No. Description N.of employees

1 General Manager (Finance) 1

2 Commercial Manager 1

3 Marketing Dept Manager 1

4 Territory Dept Manager 4

5 Administration 1

6 Production Manager 1

7 Asst. Personal manager 1

8 Store Executive 3

9 Central Executive 25

10 Route Agents 50

11 Sales Training 1

12 Chemist 3

13 Accountant 5

29


14 Supervisors 8

15 Clerks 8

16 Operations 10

17 Electricians 3

18 Fitters 2

19 Computer cum Telephone Operator 12

20 Security Guards 6

21 Office Boys 13

22 Sweepers & Helpers 3

ORGANIZATION CHART OF COCA-COLA INDIA VIZAG LTD

30

Managing director

CEO

Executive CEO

Head Finance

Head AVP Sales

Managing Marketing

Head Operations

Head Human

Resource

Head Transport

& Shipping

Manager Finance

Manager TDM

Manager Modern Trade

Manager Production

Manager TPT

Executives Shipping

Asst. Accts

Executive

Asst. Manager

ADC

Asst. Manager

Marketing

Manager Quality Control

Sales Executives

Executives Manager Maintenance


FIGURE NO-2.2.1

2.3 FINANCIAL FUNCTIONS

Finance department

A finance manager heads the finance department. This is a very powerful post

in the company and the finance department. This is a very powerful post in the company

and the finance manager is the second in command of the unit. The entire plant and

operations keep him abreast of their daily functioning, while the AGM mainly attends to

the sales functions.

Sources of finance

Coca-cola being a MNC has a wide network and market for its products

worldwide. The finance to the company comes from corporate office and financial

institution abroad. The units which have been set up in India are subsidiary concerns of

group. These units mobilize their own funds and pay 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. 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 in unit level regional office. The finance manager makes

allocations for the different department in consultant heads

Stores

There is a store in-charge and four other people to assist him. All material used for

production are under the stores in charge once they enter the company premises. This

includes raw material, other material etc. The stores department reports to the finance

31


manager and daily reports are sent to him. Materials are stocked in accordance with the

production schedule and sales target.

Shipping

The functions of the two people including, the purchase in -charge who

reports to the finance manager.

Purchases

This section functions with two people including the purchase in charge who

reports to the finance manager. The plant inform as the stores of the requirements who in

turn make a purchase request to the purchase department. Every purchase matter

whether concerning the plant or office is handled by the purchase department.

Personnel department

Matters like recruitment, selection. Wage structure, etc is decided at

Hyderabad. The respective department heads sanction leaves for the staff. The

department is conducting training programs in computers and spoken English to better

equip its people to handle the change the organization is under going.

Financial Structure

Any company to start and operate its business has to invest its capital in fixed

assets and floating assets and also in meeting the daily requirements of the company.

However, depending on the nature of the business and the product being offered by the

company the ratio of the investment of capital in fixed and floating assets differ.

2.4 H R FUNCTIONS

Human Resource Management is an essential part for any organization.

Moreover, development of this department is the first step, the ground on which the future

of the company depends. It is essential for every single business unit and especially for

such international company as Coca Cola. It is people, not technology who create the

company. Human Resource Management at Coca Cola Company has many advantages. It

is the global company and it is impossible to create certain policies or procedures

applicable in all divisions of the company, cultural and political differences need to be

taken into account. Therefore, the focus of this paper will be on four tasks and duties of

Human Resource Management (performance management, compensation, career

development, succession planning) based on the United States procedures.32


Basically the HRM practices are necessary for every organization. But

unfortunately in Pakistan not so much used HRM practices. In multinational companies like

coca cola have their own separate department of HRM. According senior executive of HR

“Waqar Mahmood “our HR department consist of 29 people in Gujranwala plant.

Every organization has its own policies and strategies by which they control the

functions of their departments. Similarly, we also have own policies and strategies by

which we control all the functions of our departments. coca cola HR department is also

conducting all the practices of HRM like Job analysis and design of work ,recruitment and

selection, training and development, performance appraisals, compensation, employee

relationships, staff welfare and medical policies and some other things like that. These all

practices are conducted by own policies and strategies. HR department not make

decisions related of its own department, they also conduct in company’s decision.

Job analysis and designing

Job analysis is the procedure for determining the duties and skill requirements of

a job and the kind of person who should be hire for it. Job analysis consists of two products

one is job description and second job specification.

Job description: A list of job duties, responsibilities, reporting relationship,

working conditions, and supervisory responsibilities- one product of a job.

Job specification: A list of a job’s human requirements that is requisites

education, skills, personality, and so on-other product of a job analysis.

Coca cola company HR department check its own job description and job analysis

in which they get the information about employees work activities, human behavior,

performance standard, job context and human requirements and also other information

related to this conduct.

HR department of coca cola used this information for Recruiting, selection,

compensation, performance appraisal, training, and employee’s relationship.

Planning and Forecasting

The process of deciding what positions the firm will have to fill, and how to fill

them. Coca cola HR department involves in company strategic planning and they also

make sufficient planning for hiring new employees in the future. We forecast for the

33


expected employees needs in the organization. We forecast of employees on the change

technology and increasing in productivity.

After planning we send this report to the head office for approval. If we get

approval from the head office then we start recruitment process.

Our recruitment process

Our recruitment process is well established first of all we give ads in news papers,

company website, institutions etc. Once we receive an application form, from candidates

with required documents and CV.

Internal recruitment

External recruitment

Selection process

The selection process will vary depending on the position you’re applying for, as

one process can’t fit all the different roles we have here at CCE. However, in most cases a

combination of any of the following tools will be used:

Interview

Group exercises

Presentations

Psychometric tests

Role plays/Situational Exercises

Interview

The interview is designed to reveal more about you and your experiences. We’ll

ask for examples of how you behaved in different situations, maybe at school, university,

a club, at home or in previous jobs. This is not designed to 'catch you out' and our

interviewers will never try and trick you into an answer. Be honest, be yourself and it

should be an enjoyable experience.

Also, don’t forget that this is your chance to find out more about us and ask

questions. Remember, interviews are a two-way process so use it to understand the

nature of the role and to make sure it really is what you’re looking for.

34


Group exercises

We’re very much a team at CCE so these will show us how effectively you work

with people. They’re a good opportunity for us to see how you communicate, influence

and involve other people in the workplace.

Presentations give you the chance to show your ability to communicate to a

group of people on a specific topic. You may be given a topic in advance or on the day,

but don’t worry – you’ll have plenty of time to prepare.

Psychometric tests

Psychometric tests are timed exercises that examine your abilities and

potential. On occasions, we may also use a personality assessment tool that is designed to

find out more specific things about you. If you’re asked to complete a psychometric test,

we’ll send you information and advice in advance on how to prepare.

Role Plays/Situational Exercises

Designed to assess how you react in certain situations, these help to

highlight particular skills and how well you’re suited for a position. You may be given facts

and figures to review, or a report to complete; we may also have an assessor acting as a

customer or employee to simulate a situation that could occur in the workplace. Don’t

worry, you’ll be given a brief and ample time to prepare.

Training process of employees

Training process is essential part of every employee without training,

employee cannot come to now the procedure of work, rules and regulations of firm,

sometimes when new technology is introduced it is also responsibility of a firm to train its

employees.

After recruiting the fresh employee we train them for three months and also

pay them salaries after three months they become part of a firm.

35


We also give training to already exist employee it depend upon condition for

example if new technology is introduced first of all we give full training to them about new

technology then we allow them to start their job.

Performance appraisal

Coca cola performance appraisal is annually Hr manger waqar mahmood

said that we appraise the employee due to their performance about goals of the

organization. We set the goals started the year and tell the employees about the goal if

the employees achieve this goal we appraise the employees.

Compensation and benefits

Objective of compensation is our compensation objective is to improve

performance of employees and convey a message to employees that company is loyal

with employees.

HR department manage says that employees are our assets, there for we

are careful about their health and benefits. We give following compensation and benefits:

Basic salary

Bonus

Medical facility

Pick and drop

Gratuity fund

Social security

We get many advantages from our employees because they are happy

from company. Our employees are satisfy from our compensation and in the coca cola

never downsizing occurred which shows that well relationship between employees and

company.

EMPLOYEES RELATIONSHIP

36


Employees are the most important assets of every company so it is very

important to give them importance. The satisfaction of the employees makes the

company successful. The reason is that if the employees of the company are satisfied then

they will work hard for the development of the company but if they are not satisfied with

the company’s policies and they are not given their rights then they will leave the

company which can turn into a big loss. So employees’ relationship is very important for

every company.

Every company has its own policy. We have also got our own policy by

which we give importance to our employees if any employee faces some kind of problem

related to his life or work then he can directly go to the manager and he can share all of

his problems. This thing should be adopted by every company because this makes the

employee satisfied with the company.

We believe that an open door policy is the best policy for employees’

relations because due to this, our employees feel very independent and they know that if

they get any problem, they can contact directly to the manager of their department. So

we strongly believe that such policy makes our employees satisfy with us.

Safety Policy

We at CCBPL Gujranwala are committed to ensure the maximum level of

safety and prevention of loss for our employees, assets and visitors. We believe in the

involvement of each and every one of us in this effort and realize the importance of every

individual’s contribution to safety. We strive for continuous improvement in our safety

standards and to the consistently meet or exceed them. We therefore, will make certain

that the necessary financial and personnel resources are made available in order to

continuously improve our safety standards. With this belief we vow to.

Set our safety standard at a level that ensures compliance with

governmental and company requirements. Protect our employees and ensure public

safety extending throughout our organization.

37


Integrate sound safety practices in to our daily business operation even in

the absence of specific regulatory requirements use the results of research and new

technology to minimizing the safety risks of our operations equipment, products and

packages taking in to account the associate costs or profit for each safety benefits.

Ensure each and every one to use in responsible and accountable for our

actions. Establish mechanisms to communicate effectively with employees Consumers and

government on our safety performance. We believe in safety. We adhere to our safety

principles. We deliver.

H R Department Chart

FIGURE NO-2.4.1

38


2.5 Production Functions

Production department

The production department is headed by a factory manager who reports

directly to the Area General Manger (AGM) .one engineer is so far inn side battery limit i.e.

plant equipments and maintenance and the second engineer is for outside battery limits;

for the utilities like generate room, boiler, water treatment plant and the Maaza unit which

is located at same distance, these four people report to the plant manager.

There are 165 workers in the plant, which includes women, who are

otherwise engaged in housekeeping into the production line. Depending on the demand,

the company operates three types of shifts.

1. General shift : 8a.m to 5pm

2. Second shifts : 6am to 2pm to10pm

3. 24’hours : 6am to6pm and6pm to 6am

Women are employed only in the general shift (8am to 5pm) o the ‘a’ shift

(6am to 2pm).in the other shifts, casual labours are used.

Stages in production process:

1. Water treatment

2. Raw syrup making

3. Ready syrup making

4. Bottling process

5. Quality control

Production schedule

39


The production schedule fixed daily by taking into consideration the market

demand, the availability of empty bottles and inventory position of filled bottles. The

storage capacity of the godown 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 two shifts. In summer, the demand its peak and production will be

extended 12 hours shifts.

Raw materials

Raw materials are the flavors essence concentrate supplied by parley, sugar

and water sugar purchased in bulk from the wholesale sugar market. The requirement of

sugar for 20-25 production days kept in stock in stoke and requirement for a month

intended in advance. Water required met by municipal supply, water from bore well and

tube wells also used when required. Water further treated with chemicals. Caps are

supplied by specialized firms like L&T and metal box India ltd.

Ingredients

1. Water

2. Sugar

3. Co2

4. Flavors (for soda only water, co2 in used).

Quality assurance department

The quality assurance department is headed by plant manager. In addition

to him there are 7 chemists. The deputy manager reports to the plant manager. The

department tests and controls the quality of water, caustic solution and the final

beverage. The final beverage is tested for gas and bricks i.e. the sugar content.

2.6 MARKETING FUNCTION

Sales department

The sales department has a general sales manager and three associates’

sales managers. Of the three sales managers, one person is in charges of city sales while

40


the other looks after district and Orissa sales. All of report to AGM directly, Is interacts with

sales department on daily basis and virtually leads the teams.

District sales

In addition to the sales manager, there is a deputy sales manager, four

assistance sales manager and below the two salesmen each distributor. From the

distributor it reaches the retailer outlet. The company sales force helps the retailer and

distributor achieve their targets promotions and other incentives. The sales forced in far

locations report to the sales manager once in a weak. Based on their reports, new

incentive schemes and offers are made. The previous week’s performance is evaluated

and targets for the next week.

City sales

Under the sales manager (city), there are supervisor, staffs and 113 field

forces. The company has no distributors in the city of Visakhapatnam. They directly supply

to the retailers. There are 30 routes with trunks covering each route. Each trunk is

accompanied by sales man and two sales helpers. There is a sales officer for every two

routes. He moves around on a hike and sees to it that are outlets are covered. Any urgent

messages are communicated to the sales force through mobiles there are approximately

5600 outlets in Visakhapatnam city. In lop areas i.e. Areas where company trunk cannot

go, a fat dealer is appointed.

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 industry, the

customer and consumer are defined separately.

Consumer response co-ordination unit (CRC)

The consumer response co-ordination unit has the sales manager the unit’s

temporarily handle by the CSSS. The CRC unit receives complaints and grievance from the

market either through phone calls or through sales force. It sends regular reports to the

corporate office.

Distribution pattern:

41


Direct operation

Indirect operation

Marketing mix

In the early 1960’s, Professor Neil Borden at Harvard business school

identified a no of company performance action that can influence the consumer decision

to purchase goods or services. Borden suggested that all those actions of the company

represented a “marketing mix”. Professor e. Jerome mc carthy, also at the Harvard

business school in the early 1960’s, suggested that the marketing mix contained four

elements: product, price, place, and promotion.

Diagram

In popular usage “marketing” is the promotion of products especially advertising

and branding. However in professional usage the term as a wider meaning, which

42

Plant Plant Plant Plant

Plant

Area marketing

C&F Distributor

Customers

Consumers

Super stockiest Route

agents


recognize the marketing is customer cantered. Products often developed to meet the

desires of groups of customers or event, in some cases for specific customers.

The four p’s are

The product aspects of marketing deal with the specification of the actual

goods or services and how it relates to the end user needs and wants. The scope of a

product generally includes supporting elements such as warranties, guarantees, and

support.

Price: this refers to the process of setting, a price for a product, including discounts. The

price need not be monetary- it can simply be what exchanged for the product or services

Promotion: this includes advertising, sales promotion, publicity, and personal selling,

branding and refers to the various methods of product, brand, or company,

Place (or distribution): refers to how the product gets to the customer; for example,

point of sale placement or retailing this fourth p generally to the channel by which a

product segment (young adults, families, business people), etc.

These four elements are often referred to as the marketing mix, which a marketer

can use to craft a marketing plan.

2.7 RESEARCH FUNCTIONS

Coca-Cola's most senior executives commissioned a secret effort named

"Project Kansas" headed by marketing vice president Sergio Zyman and Brian Dyson,

president of Coca-Cola USA to test and perfect the new flavor for Coke itself. It took its

name from a famous photo of that state's renowned journalist William Allen White drinking

a Coke that had been used extensively in its advertising and hung on several executives'

walls. The company's marketing department again went out into the field, this time armed

with samples of the possible new drink for taste tests, surveys, and focus groups.

The results of the taste tests were strong the sweeter mixture

overwhelmingly beat both regular Coke and Pepsi. Then tasters were asked if they would

43

http://en.wikipedia.org/wiki/Focus_group

http://en.wikipedia.org/wiki/Statistical_survey

http://en.wikipedia.org/wiki/William_Allen_White

http://en.wikipedia.org/wiki/Journalist

http://en.wikipedia.org/wiki/Sergio_Zyman


buy and drink it if it were Coca-Cola. Most said yes, they would, although it would take

some getting used to. A small minority, about 10-12%, felt angry and alienated at the very

thought, saying that they might stop drinking Coke altogether. Their presence in focus

groups tended to skew results in a more negative direction as they exerted indirect peer

pressure on other participants.

The surveys, which were given more significance by standard marketing

procedures of the era, were less negative and were key in convincing management to

move forward with a change in the formula for 1985, to coincide with the drink's

centenary. But the focus groups had provided a clue as to how the change would play out

in a public context, a data point that the company downplayed but which was to prove

important later.

Management also considered, but quickly rejected, an idea to simply make

and sell the new flavor as yet another Coke variety. The company's bottlers were already

complaining about absorbing other recent additions into the product line in the wake of

Diet Coke. Many of them had sued over the company's syrup pricing policies. A new

variety of Coke in competition with the main variety could, if successful, also dilute Coke’s

existing sales and increase the proportion of Pepsi drinkers relative to Coke drinkers.

Early in his career with Coca-Cola, Goizueta had been in charge of the

company's Bahamian subsidiary. In that capacity, he had improved sales by tweaking the

drink's flavor slightly, so he was receptive to the idea that changes to the taste of Coke

could lead to increased profits. He believed it would be "New Coke or no Coke", and the

change must take place openly. He insisted that the containers carry the "NEW!" label,

which gave the drink its popular name.

Goizueta also made a visit to his mentor and predecessor as the company's

chief executive, the ailing Robert W. Woodruff, who had built Coke into an international

brand following World War II. He claimed he had secured Woodruff's blessing for the

reformulation, but even many of Goizueta's closest friends within the company doubt that

Woodruff truly understood what Goizueta intended. Goizueta always said he had.

2.8 FUTURE PLANS

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http://en.wikipedia.org/wiki/World_War_II

http://en.wikipedia.org/wiki/Robert_W._Woodruff

http://en.wikipedia.org/wiki/Mentor

http://en.wikipedia.org/wiki/Subsidiary

http://en.wikipedia.org/wiki/Bahamas

http://en.wikipedia.org/wiki/Syrup

http://en.wikipedia.org/wiki/Century

http://en.wikipedia.org/wiki/Peer_pressure

http://en.wikipedia.org/wiki/Peer_pressure


This report is to investigate Coca Cola Company. On this coursework I will

look at the company on all aspects from their business functions, organizational structures

to the company's objectives. I would have to look at the departments within the business

and the functional areas within these departments, also look at the different management

styles within the business, looking at the organizational structure, the communication

used within the business, and the impact of ICT on the organizations communications.

The Coca-Cola Company is the world's leading manufacturer,

marketer and distributor of non-alcoholic beverage concentrates and syrups. Along with

Coca Cola, the world's best known brand, The Coca Cola Company markets four of the

world's top-five soft drink brands, including Diet Coke, Fanta and Sprite. Throughout the

world, no other brand is an immediately recognizable as Coca Cola. With operations in

more than 200 countries, a diverse workforce comprised of more than 200 different

nationalities, The Coca Cola Company is part of the fabric of life in each of the

communities they serve throughout the world. It operates as a local business partner,

providing quality in the marketplace, enhancing the workplace.

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

well as the best-known product in the world. Coca-Cola was invented in May 1886 by Dr.

John S. Pemberton in Atlanta, Georgia. The name 'Coca-Cola' was suggested by Dr.

Pemberton's bookkeeper, Frank Robinson. He kept the name Coca-Cola in the flowing

script that is famous today. Coca-Cola was first sold at a soda fountain by mixing Coca-

Cola syrup with carbonated soda in Jacob's Pharmacy in Atlanta by Willis Venable. During

the first year, sales of Coca-Cola averaged nine drinks a day, adding up to total sales for

that year of $50. Since the year's expenses were just over $70, Dr. Pemberton took a loss.

Today, products of The Coca-Cola Company are consumed at the rate of more than one

billion drinks per day.

In 1893, Coca Cola was registered in the United States and then further

investment was put into it to expand the business. To handle the enormous capacity of its

business, the Coca Cola Company has divided up into six operating units: Middle and Far

East Groups, Europe, The Latin America Group, The North America, The Africa Group and

45

http://www.123helpme.com/search.asp?text=coca+cola+company

http://www.123helpme.com/search.asp?text=diverse+workforce

http://www.123helpme.com/search.asp?text=management+styles

http://www.123helpme.com/search.asp?text=management+styles


The Minute Maid Company. The Head Quarters is situated in the United States. The

country that I'm going to be concentrating on is the United Kingdom and how the

company works in the U.K.

I drew up this action plan as a guide to priorities what information I need to

complete this report. The method of research I will use the most on this report will be

secondary research such as the annual reports, etc.

Coca Cola also have limited liability as they are a public limited company. A

limited company is owned by its shareholders. There is no legal maximum to the number

of shareholders. There are two forms of Limited Liability Company in the UK, the Private

Limited Company (Ltd) and the Public Limited Company (Plc). The essential difference,

between the two, is that the Private Limited Company cannot legally offers its shares to

the general 'public', therefore this form of company is usually associated with family run

businesses. Whilst the Public Limited Company can sell its shares to the general public on

the Stock Exchange, providing the potential for far greater finances to be raised.

The owners of a limited company are referred to as its members, or

shareholders. An individual can become an owner of the business by purchasing shares in

that business. When the profits of the business are distributed to shareholders, they are

distributed in the form of a dividend. The value of the dividend is decided upon not by the

owners, but by the Directors of the business.

Some shareholders had invested their life savings and not only lost their

money, but their homes, limited liability was designed to protect shareholders from this

mistake, but the key motive was to ensure that large projects could continue to raise

capital. Coca Cola's Objectives of the Company.

Mainly all companies' objectives are to survive, maximize their profits and to

expand their business, however, from when Coca Cola had started, over the years they

had achieved these objectives. So the company has come up with six strategic objectives

to provide the company with a framework for the company's success. In 2003, every

function of The Coca-Cola Company integrated these priorities into their business plans.

46


And this year, they will continue to establish these priorities, and their benefits into every

aspect of the business.

2.9 OTHER INFORMATION

Coca-Cola is a carbonated soft drink sold in stores, restaurants, and vending

machines internationally. The Coca-Cola Company claims that the beverage is sold in

more than 200 countries. It is produced by The Coca-Cola Company in Atlanta, Georgia,

and is often referred to simply as Coke (a registered trademark of The Coca-Cola Company

in the United States since March 27, 1944). Originally intended as a patent medicine when

it was invented in the late 19th century by John Pemberton, Coca-Cola was bought out by

businessman Asa Griggs Candler, whose marketing tactics led Coke to its dominance of

the world soft-drink market throughout the 20th century.

The Coca Cola is a beverage company, manufacturer, distributor, and

marketer of non-alcoholic beverage concentrates and syrups. The company is best known

for its flagship product Coca-Cola invented by pharmacist John Stith Pemberton in 1886.

The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated

The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola

currently offers more than 400 brands in over 200 countries or territories and serves 1.6

billion servings each day.

Coke is it -- it being the world #1 soft-drink company. The Coca-Cola

Company (TCCC) owns four of the top five soft-drink brands (Coca-Cola, Diet Coke, Fanta,

and Sprite), Its other brands include Minute Maid, PowerAde, and Dasani water. In North

America it sells Group Danon&s Evian; it also sells brands from Dr Pepper Snapple Group

(Crush, Dr Pepper, and Schweppes) outside Australia, Europe, and North America. The firm

makes or licenses more than 3,000 drinks under 500 brand names in some 200 nations.

Although it does no bottling itself, Coke owns 34% of the world’s #1 Coke bottler Coca-

Cola Enterprises (CCE); 32% of Mexico’s bottler Coca-Cola FEMSA; and 23% of European

bottler Coca-Cola Hellenic Bottling.

OVER VIEW

47


Coca-Cola® were invented by Atlanta pharmacist, John Stith Pemberton in

1886, since that time The Coca-Cola Company has grown to represent over 400 different

brands in 200 countries.

Coca-Cola Ltd. (CCL) is responsible for developing and marketing the brands

of The Coca-Cola Company, and various other brands, to consumers in Canada, and for

the protection of our trademarks here in Canada. CCL is a subsidiary of the Coca-Cola

Company, the world’s leading Beverage Company, with worldwide headquarters in

Atlanta, Georgia. In addition, Coca-Cola Ltd. owns and operates The Minute Maid Company

Canada Inc.

Coca-Cola Bottling Company (CCBC) is our local primary Canadian bottler

responsible for manufacturing, sales and distribution of most Coca-Cola brands in Canada.

CCBC is a division of Coca-Cola Enterprises, the world’s largest Coca-Cola bottler.

The two partner organizations, CCL and CCBC, represent one beverage

provider ‘system’ which collectively employs over 5,000 people across Canada.

Coca-Cola® beverages have been sold and distributed in Canada for more

than one hundred years. In 1906, the first Canadian-made Coca-Cola® bottles came off

the production line at 65 Bell woods Avenue in Toronto. Today, the Coca-Cola system in

Canada has seven production plants and employs approximately 5,500 employees in more

than 60 sales centers and satellite locations in all 10 provinces.

The Coca-Cola Company is a vibrant network of people, in more than 200

countries. putting citizenship into action. Through our actions as local citizens, we strive

every day to refresh the marketplace, enrich the workplace, protect the environment and

strengthen our communities.

Corporate citizenship

Our efforts to identify solutions to environmental challenges, we seek the

cooperation of public, private and governmental organizations. We direct our company’s

skills, energies and resources toward activities and issues where we are confident of

making a powerful and effective contribution.

The Coca-Cola Identity

48


We are stewards of brands universally recognized for quality and consistency.

Maintaining an established standard of excellence in our business conduct is essential if

we are to continue to be trusted neighbors in the communities where we do business. Our

efforts towards environmental management exhibit this level excellence at the local,

division, and corporate levels. We will take progressive actions that focus on minimizing

our impact on the environment while striving towards continuous improvement.

We act responsibly, doing the right thing with regard to the local and global

environment as we build and nurture strong brands.

As responsible stewards of the environment and our brands, we will take

progressive actions that focus on minimizing our impact on the environment and strive for

continuous improvement.

Our goal is to be environment management leaders in the communities where we

conduct business. We provide leadership in three critical areas:

• Water efficiency and water quality

• Energy efficiency

• Eliminating or minimizing solid waste

Our activities focus on community involvement based on understanding local and

global environmental issues, leadership on research to provide innovative solutions, and

open and ongoing dialogue on our environmental efforts.

Coca-Cola headquarters

The Coca-Cola Headquarters is a campus in Midtown Atlanta, Georgia that is home

to The Coca-Cola Company. The most visible building on the site is a 29-story, 403—foot

(122.8 m) high One Coca-Cola Plaza. located on the corner of North Aven and Luckie

Street. Completed in 1979, the architects were FABRAP and the designer Torn Pardue.

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...49


• To inspire moments of optimism and happiness...

• To create value and make a difference

Vision

Our vision serves as the framework for our Roadmap and guides every aspect of our

business by describing what we need to accomplish in order to continue achieving

sustainable, quality growth.

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

be.

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

and satisfy people’s desires and needs.

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

create mutual, enduring value.

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

support sustainable communities.

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

responsibilities.

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

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

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• Quality: What we do, we do well

Focus on the Market

• Focus on needs of our consumers, customers and franchise partners

• Get out into the market and listen, observe and learn

• Possess a world view

• Focus on execution in the marketplace every day

• Be insatiably curious

Work Smart

• Act with urgency

• Remain responsive to change

• Have the courage to change course when needed

• Remain constructively discontent

• Work efficiently

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

CEO

Muhtar Kent is Chairman of the Board and Chief Executive Officer of The Coca-Cola

Company.

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Coca-Cola in India

Coca-Cola the corporation nourishing the global community with the world’s largest

selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year hiatus,

giving new thumbs up to the Indian soft drink market. In the same year, the Company

took over ownership of the nation’s top soft-drink brand and bottling network. It’s no

wonder our brands have assumed an iconic status in the minds of the world’s consumers.

Company Portfolio

Our Company continues to expand our beverage portfolio in order to meet

consumers evolving needs and preferences. We currently offer more than 3,300 Coca-Cola

beverages around the world. Visit our Products section to learn about beverage variety,

product safety and quality, nutrition, hydration, sweeteners and how our beverages can fit

into your healthy, active lifestyle.

Brand logos:-

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The various flavors and sub- brands are fallows:-

CSD (Carbonated soft drinks)

• Coca — Cola

• ThumsUp

• Limca

• Sprite

• Fanta

• Mazaa

• Pulpy Orange

• Minute maid nimbu fresh

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CEO COCA COLA INDIA

Atul Singh

(President, India and South West Asia Business Unit).

Atul Singh is the President of Coca-Cola India and South West Asia Business

Unit, a responsibility that he took over on September 1, 2005. He was earlier the President

of East, Central & South (ECS) China Division of Coca-Cola. Atul is responsible for Coca

Cola’s operations in India, Sri Lanka, Bangladesh, Bhutan, Nepal and the Maldives.

Coca cola beverages president & CEO

President : Atul Singh

CEO : Tirumalai Krishna Kumar

Coca-Cola India Head – Quarters

Company Coca Cola India,

Contact Person Alexander Von Behr, Dr. G.m.Tiwari,

Address Enkaya Towers, Udyog Vihar-v, Gurgaon,

State Haryana,

Zip/Pin 122106,

Country India,

Tel 0124-2648041/ 571,

Fax 0124-26348144/ 146,

Info Sweetened Carbonated No-alcoholic Beverages, Ready-to-serve

Beverages.

Coca-Cola India Vizag:

Company Coca Cola India,

Address Coca-Cola, Murali nagar,NH-5,

State Andhra Pradesh,

District Visakhapatnam – 530016.

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Coca-Cola international level

CCSF Coca-Cola Food Service

Innovation is always on tap with Coca-Cola Food Service (CCFS). Restaurateurs

can find ways to increase sales, better manage personnel, increase profits and grow the

business through CCFS. Bringing creativity and consumer and industry insights to food

and beverage operators, CCFS offers operators ways to build and sustain profit and growth

and develop their brands.

Coca-Cola beverages

Coca-Cola is worldwide leader in beverage innovation and creativity, throughout its

122-years ownership of the world most valuable brand and producing currently 2800

beverages , Coke takes pride in being a product and service innovator in 50 countries

Where in operates. On Guam, the northern Mariana Islands and all over Micronesia, Coca-

Cola exemplifies this leadership in innovation as its regularly introduce new quality

products to the region.

Market share

The market share of Coca-Cola is shown in the following table.

Coca-Cola India’s consolidated share of carbonated soft drinks is 57.8%,

Four Coca-Cola brands have market shares of over 10%.

Coca-cola & Thums up 25.6%

Sprite 12.2%

Limca 10.9%

Fanta 10.0%

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Achievements

Coca-Cola is one of the Warren Buffet’s Top 5 holding Company.

• Re entering in India 1993.

• Introducing of Kinley water bottle in the year 1994.

• Starting of Coca-Cola online in the year 1996.

• Celebrating a 100 anniversary with first world wide bottle conference in the year

1985.

• I time of introducing 2 liters, plastic bottles with bottle grip handle.

Coca-Cola India Private Limited

Company Overview

Coca-Cola India Private Limited produces carbonated drinks. It offers soft drinks,

juice drinks, fruit drinks, and bottled water, as well as ice tea and cold coffees. The

company was founded in 1993 and is based in Gurgaon, India. Coca-Cola India Private

Limited operates as a subsidiary of Coca-Cola South Asia Holdings, Inc.

Key Executives

Mr. Atul Singh

Chief Executive Officer and President -

Mr. Deepak Jolly

Vice President of Public Affairs and Communications

Mr. Richard L. Miller

Regional Vice President of North

Ms. Sangeeta Pendurkar

Vice President of Strategy

Mr. Viraj Chouhan

Senior Manager of Corporate Communications

Description of Products

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Sprite Clear Lemon

Fanta Orange

Maaza Mango

Pulpy Orange Pure Orange

Minute Maid Nimbu Lemon

Kinley Pure Water

Coca-Cola’s Brand order

COLOJK

Co - Cola - Coke, Thums up.

L - Lemon - Sprite, Limca

0 - Orange- Fantà

J - Juice - Mazaa, Pulpy, Nimbu fresh

K - Kinley - Soda, water

Generally Shops are called Outlets, These out lets are 4 type

There is

• Convenience out lets

• Grocery out lets

• E&D-l

• E&D-2

Contents of out lets

Convenience Outlets : It had all type of items available.

Ex: pan shops,

STD points etc.

Grocery Out lets : It was located on bus stops and public spots.

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Ex: Busy malls, provision stores, large shops etc.

E&D -l : wine shops , Lodges etc.

E&D -2 : Bar and Restaurants, Hotels etc.

In sales purpose outlets (channels) are divided 4 types, that is

• Diamond - 800 cases (+) per. Annum

• Gold - 500 to 799 cases p.a

• Silver -200 to 499 cases p.a

• Bronze - 1 to 199 cases p.a

In Income purpose Outlets (Channels) are divided 3 types, that is

• High level Income

• Medium level income

• Low level income

Mostly Coca-Cola using 2 types of Coolers, that is

• Visi Cooler

• Chest Cooler

Coca-Cola provides different outlets for different Coolers.

Cooler Size (Cases) Out Let (Channel)

4 Bronze

7 Silver

9 Gold

10 Gold

15 Diamond

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20 Diamond

30 Diamond

Types of Products available sizes

200 ml Coke, Thums Up, Limca, Sprite, Fanta, Mazaa, And Mazaa Tetra

250ml Mazaa-RCB

300 ml Coke, Thums Up, Limca, sprite, Fanta, kinley -RGB

330 ml Coke. Thums, sprite, Fanta cans or tins.

350 ml Coke, Thurns Up, Lirnca, sprite, Fanta —Pet- Xpress pack

600 ml Coke, Thums Up, Lirnca,sprite, Fanta, Mazaa — pet,mobile pack

400 ml Minuete maid, Pulpy orange, Nimbu fresh Mobile pack

1.25 ml Coke, Thums Up, Limca, sprite, Fanta — fridge pack

2 let Coke, Thums Up, Limca, sprite, Fanta — party pack

1 .2 let Mazaa

1 .2 let Pulpy orange

500 ml Soda

1.5 let Soda

500 ml Water

1 let Water

2 let Water

Types of Drinks

• SSD - Sparkling soft drink

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• CSD - Carbonated soft drink

• RGB - Returnable glass bottle

• PET - Poly ethylene turf ethylated

Coca-Cola took order booking 2 types, i.e.,

• Line order

• Alternate order

Line order booking: it had order taken every day. Regularly Coca cola follows this order.

Alternative Order booking: it had order taken every 3days at once. Sometimes

company fallows these order.

PLANT LAY-OUT

The lay-out of the bottling plant of Coca-cola vizag confirms to the products on

lines lay-out. The machines and equipment have been imported from Germany, which

products the best capital investment in the World. The machinery and all the equipments

is arranged according to the sequence of operations, the machines and workers are

specialized in drink industry. They are specialized in operations such as the syrup, clearing

the bottles, filling the bottles. Crating and sealing the bottles with crown. All these

operations are carried on a continuous movement.

THE REASONS FOR CHOOSING THE PRODUCT LAY-OUT

There is continuous supply of material.

The brands are all standardized products.

The demand for products brands are reasonable stable.

The volume of production is adequate for the reasonable utilization of equipment.

Due to above reasons the product lay-out offers certain advantages. The

production cycle is speedier up. Since the company follows a continuous movement, the

cost of material handling goes low. The total floor space required by the machine is less

than for other types of plant lay-outs.

PLANT CAPACITY

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The company installed latest up to automatic plant confirming to plant lay-out. The

capacity of the plant is 24000 bottles per hour i.e., at the speed on the 400 B.P.M.

implying 400 bottles per minute. In the months from March to June, the plant is used to its

full capacity by running their shifts every day. Each shift consists of 8 hours. So, during

the summer season the plant is run round the clock, i.e., 24 hour. This is because the

demand reaches its peak in its summer months. The company has to produce enough

bottles of soft drinks at a speed to keep in pace with the disappearance of soft drinks from

the shelves of the retailers.

PRODUCTION SCHEDULE

The production schedule is fixed by taking into consideration the present or current

market demand, the availability of empty bottles and also the inventory position of differ

flavors.

The production schedule for each brand is fixed daily, filling the bottles of each

brand and flavor. This has an advantage in that the branded products can be

manufactured once at a time. The glass bottles used for filling soft drinks are of the

volumes of containing 300m1 of soft drinks. There are also bottles of 500rnl capacities to

be filled soft drinks.

QUALITY CONTROL

Coca-Cola vizag takes great care to maintain the quality control of the products in

their factory. The bottles are visually examined for impurities continuously, as the bottles

move out. Samples are checked every ten minutes of production time by the chemist for

its quality and hygiene condition. The chemical analysis is also made for flavors, gas

contents and sugar percentages. The appearance, smell and taste of the products are also

checked.

If any defects are noticed the production is suspended and the connection

measures are taken so as to set right the bottling process irregularities, further samples

from each batch are dispatched to the affiliated parent agency company in each week for

quality check up. Moreover, agency of the company also lifts sample from the market at

random for quality checkup at any to make sure that the quality is maintained to the

exact standard of the parent company.

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At the end of the production schedule, daily all the equipment, plant floor

and wet patches are cleaned with bleaching powder of some other solution, the standards

of hygiene maintained inside the production shops are commendable.

SYRUP MAKING

In this process the syrup of a particular is prepared by heating sugar with

activated carbon power and filter aid (Hyfloces super cell) in treatment tank for a specified

time and up to a particular temperature. During the treatment most of the colors, odor

and some Organic impurities are removed from sugar syrup. This treated syrup then

passed through filter press, fitted with filter papers and heat exchangers and clear syrup is

collected in the syrup making tank, the essence of particular product will be added for

which a required.

Amount sugar is taken for treatment. Sugar syrup and essence are mixed in the

tank with the help of mechanical stirrer and eventually the flavor syrup is ready to be used

in the end use product.

WATER TREATMENT

This is the second in the process of soft drink manufacture. Water is the basic

ingredient in the soft drink, which comprises up to 90% of the quality. Hence, the quality

of water is brought to treatment tank and then water treatment chemicals such as

hydrated lime, bleaching powdered Ferro sulphate are added to the tank and mix

thoroughly with the help of mechanical stirrer.

THE REASONSFOR WATER TREATMENTS ARE

• It removes hardness and converts the water into soft water.

• It frees the water from micro organism• Reduces the alkalinity to a required level.

• Removes suspended matter in water.

This treated water passes though the specially designed filtration plant containing

chemical such activated carbon ( granular) and finally the manufacturer will get the water

suitable for soft drink bottling. For maintaining equipments in hygiene conditions soda

bicarbonate is used.

BOTTLING

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In this process both the concentrate and the purified water are mixed

together along with carbon dioxide gas and then bottled. In soft drinks field, only reusable

glass bottles sparkling clean and they are sterilized before the beverage is filled. For this

purpose the company makes use of machine known as’ Bottle Washer’. For cleaning of

bottles washing chemicals such as caustic soda and tn-sodium phosphate are used. In the

bottle washing system, in one end of washer the dirty bottles are fed and the bottles are

washed automatically while passing through various designed chambers containing

chemical solutions at different temperatures and concentration. Hot water is used for

cleaning the bottles. The bottles, after sterilization are collected at the other end of the

washer. They are then sending towards ‘Filler’ on conveyor belts. Before the beverage

reaches the filling machine fit is saturated with carbon dioxide gas in carbonated after

being chilled.

This carbon dioxide gas gives ‘Fizz’ to the soft drinks and along side pro larges the

shelf life of the products.

The bottles then are moved on the conveyor belts to the filling machines where the

beverage is filled under pressure and bottles are sent to the crowner where sealing is

done with the help of crowns. The crowns are used to retain the carbonation, flavors as

well as to protect the products form spoilage and contamination.

CRATING

The bottles collected from conveyor belts area placed manually into plastic crakes.

Each plastic case has capacity of 24 bottles. These crakes protect the bottles from

breakage and for easy handling of bottles. These crakes are put on specially designed

vans for carrying bottles and are sent to various consumption points.

DISTRIBUTION SETUP

Coca-Cola India pvt Ltd. Covers the five district of the territory through 172

distributors appointed at various locations for secondary di

Coca-Cola India., REACHES THE 2200 OUTLETS OF Vizag city trough its four

dealers. Each dealer is assigned a specific area which is further divided.. Dealer is given to

salesmen depending upon the potential of his route.

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The total covered by the plant is put to around 15,000 nos., in the five

districts in the Visakhapatnam city contributes to 2200 put lets.

CHAPTER – III

THEORETICAL REVIEW

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3.1 INTRODUCTION TO 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 Flippo, a prominent personality in the field of Human resources,

"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 the systematic description of employee’s job relevant strength

and weakness. The purpose is to find out how well the employee is performing his job and

establish a plan of improvement. Performance appraisal is arranged periodically according

to a definite plan. Performance appraisal is not job evaluation. Performance appraisal

refers to how well someone is doing the assigned job. Job evaluation determines how

much a job is worth to the organization and, therefore, what range of pay should be

assigned to the job.

3.2 History of Performance Appraisal

Its roots in the early 20th centuary 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.

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Performance appraisal systems began as simple methods of income

justification.that is, appraisal was used to decide whether or not salary or wageof an

individual employee was justified.

The process was firmly linke to material outcomes.if an employees’ performance

was found to be less than ideal, a cut in a pay would follow. On the other hand, if their

performance wasbetter 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.

3.3 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

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3.4 Purpose of performance appraisal

1 To create and maintain a satisfactory level of performance

2 To provide fed back.

3 To plan career goals of employees to identify career potential.

4 To provide important data base for management.

5 To fair and equitable compensation based on performance.

6 To identify training & development programmes.

7 To help in promotional decisions.

8 Contribute to employee’s personal growth and development.

3.5 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.

3.6 Approaches to Performance Development

Performance appraisal - Traditional approach

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

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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

1. Rating scales 1. Management by objective

2. Checklist 2. 360 degree appraisal

3. Forced choice method 3. Assessment centers

4. Forced distribution method

5. Critical incident method

6. Performance tests and observations

7. Essay method

8. Behaviorally anchored method

Traditional Methods

1. Rating scales

This is the simplest and most popular technique for appraising employee

performance. The typical rating system consists of several numerical scales, each

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TRADITIONAL METHODS MODERN METHODS


representing a job related performance criterion such as dependability initiative,

output, attendance, attitude, co-operation, and the appropriate performance level

on each criterion, and then computes the employees total numerical score. The

number of points scored may be linked to salary increases, whereby so many

points equal a rise of some percentage.

2. 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. 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.

3. 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.

4. 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.

5. Performance tests and observations

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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.

6. 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

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.

8. Behaviorally anchored rating scales

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

behavior by recording and comparing the behavior with BARS. Developing and practicing

BARS requires expert knowledge.

MODERN METHODS

1. 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:

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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.

2. 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. Anyone 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 others. By design, the 360 degree

appraisal is effective in identifying and measuring interpersonal skills, customer

satisfaction, and team building skills.

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,

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as in actual job. Self appraisal and peer evaluation are also throwing in for final rating. The

characteristics assessed in a typical assessment centre include assertiveness, persuasive

ability, communicating ability, planning and organization ability, self confidence,

resistance to stress, energy level, decision making, sensitivity to the feeling of others,

administrative ability, creativity, and mental alertness.

3.7 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.

STEPS IN APPRAISAL PROCESS

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1. Establishing Performance Standards

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

standards which will be used to as the base to compare the actual performance of the

employees. This step requires setting the criteria to judge the performance of the

employees as successful or unsuccessful and the degrees of their contribution to the

organizational goals and objectives. The standards set should be clear, easily

understandable and in measurable terms. In case the performance of the employee

cannot be measured, great care should be taken to describe the standards.

2. Communicating the Standards

Once set, it is the responsibility of the management to communicate the standards

to all the employees of the organization.

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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.

3. 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.

4. 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.

5. 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.

6. 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.

3.8 CHALLENGES OF PERFORMANCE APPRAISAL

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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.

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.

ADVANTAGES OF PERFORMANCE APPRAISAL:

They provide a record of performance over a period of time.

They provide an opportunity for a manager to meet and discuss performance with

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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.

If not done right can be a complete waste of time.

Can be stressful for all involved.

3.9 PERFORMANCE APPRAISAL SYSTEM IN HCCBP LIMITED

A performance appraisal system plays a vital role in every organization.

Manpower requirements are to be established far beyond the actual requirements. The

present study includes the performance appraisal systems carries out by HCCBPL The

study includes the sources utilize by HCCBPL internally. The study was going to be

conducted in HCCBPL, Vishakhapatnam on performance appraisal system.

I find a lot of scope to study my topic in this company. All the environments are

found to be provided well opportunity to me.

To be instrumental in helping employees to better understand their strengths and

weaknesses with respect to their role and functions in the organization

To help in identifying the developmental needs of employees, given their role and

function

To increase mutuality between employees and their supervisors so that every

employee feels happy to work with their supervisor and thereby contributes their

maximum to the organization

Supervisors. In this way, each employee gets to know the expectations of their

superior, and each superior also gets to know the difficulties of their subordinates

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and can try to solve them. Together, they can thus better accomplish their tasks

To provide an opportunity to each employee for self-reflection and individual goal-

setting, so that individually planned and monitored development takes place

To help employees internalize the culture, norms and values of the organization,

thus developing an identity and commitment throughout the organization

To help prepare employees for higher responsibilities in the future by continuously

reinforcing the development of the behavior and qualities required for higher-level

positions in the organization.

To be instrumental in creating a positive and healthy climate in the organization

that drives employees to give their best while enjoying doing so; and

To assist in a variety of personnel decisions by periodically generating data

regarding each employee.

HCCBPL has its considerable and conscience full ethics towards the employees and their

appraisal system. In this regard HCCBPL has developed a very good system of performance

appraisal system with remarkable constraints like periodic review, a specific appraisal form and

many..

QUALITY: HCCBPL’s dedication is completely towards achieving high levels of quality in

everything they do to delight customers, internal and external, every time. And even RESPECT

FOR INDIVIDUAL:

It upholds the self esteem and dignity of each other by creating an open culture conductive for

expression of views and ideas irrespective of hierarchy.

HARMONY AND SOCIAL RESPONSIBILITY:

HCCBPL take utmost care to protect our natural environment and serve the communities in which

we live and work.

Key process of appraisal :

Performance planning/goal setting

Performance review-periodic review

Consequence management

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Performance planning/goal setting:

Once the business/functional plan is frozen, the superior and the employee should meet to clarify

expectations from their key customers/stakeholders and each other. This input should be

converted into performance goals to be met during the review period.

The goals articulated are not merely a routine set of activities, but ideally should result in value

creation for the organization through either continuously improving or reducing gap in the existing

products, processes and services. To improve organizational performance. The goals must

necessarily incorporate performance stretch i.e., they need to be significantly higher than the

goals of the previous year.

Measurement criteria are for tracking performance against the goals. The superior/employee are

free to freeze the criteria as relevant to their nature of work. Possible criteria may be quantity

(tones produced, units sold), quality, cost, time and human relations.

The goals can be added/deleted/modified with mutual consent in response to changing business

priorities.

Performance review-periodic review:

HCCBPL follows an performance appraisal form for the purpose of periodic review over the

employee performance which is done periodically by the superior and the form includes:

1) Attributes

2) Overall assessment

Attributes:

In this section, the attributes of the employees like job knowledge, Quality of work, Target

achievement, Interpersonal relations, punctuality, integrity & loyalty of organization, Physical

stability, leadership & communication skills are observed and measured with specified ratings to

each employee.

Overall assessment:

Based on the ratings from attributes section and even other constraints the employees is given

with final result of review which results in the decisions of training/development programs,

promotions and even other incentives.

Consequence management:

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This is the final part of appraisal process. This is done based on the results of review and even the

appraised employee i.e., his/her feedback. It includes if appraised positively- rewards and

recognition,

If appraised negatively- mentoring, counseling, coaching…

The top management and HR manager facilitate this process…

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CHAPTER IV

DATA ANALYSIS

&

INTERPRETATION

4. DATA ANALYSIS AND INTERPRETATION

Data analysis and interpretation refers to how the collected from the different

sources and how it is interpreted. The data collected from the primary sources and

secondary sources.

The Primary data are those which are collected afresh and for the first time, and

thus happen to be original in character. The tools for collecting this primary data are by

two types namely Interview Method and Questionnaire Method.

The Secondary data are those which have already been collected by someone else

and which have already been passed through the statistical process in the company.

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For collecting the data the sample size taken in the survey is only 70 respondents.

Because lack of time. The technique used for collecting the data is simple random

sampling technique. The statistical tools used in survey are bar charts, pie charts and

tables.

1. Existence of Performance Appraisal System

Opinion Pool Respondents Percentage (%)

Yes 60 86

No 10 14

Total 70 100

Table No-4.1

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7

Kind Of Opinion

Respondents

Percentage (%)

FIGURE NO-4.1.1

INFERENCE:

From the above table, it shows the respondents opinion about existence of

performance appraisal system in the organization. It reveals that 86% of the total

respondents opinioned that the appraisal system existed in the company and 14% of the

respondents opinioned that the appraisal system is not existed. So majority of the

respondents opinioned that the appraisal system is existed.

2. The factors for performance appraisal

Opinion pool Respondents Percentage (%)

Excellent 15 22

Good 33 47

Average 12 17

Poor 10 14

Total 70 100

Table No-4.1.2

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6

Kind of opinion

Respondents

Percentage(%)

FIGURE NO-4.1.2

INFERENCE:

From the above table 22% of the respondents opinioned that the factors of

appraisal is excellent, 47% of the respondents opinioned that, the factors of appraisal is

good, 17% of the respondents opinioned that, the factors of appraisal is average and 14%

of the respondents opinioned that it is poor.

3. Are You Satisfied With Self Appraisal Or You Prefer

Opinion pool Respondents Percentage (%)Peers 40 57.1

Performance Review Committee 20 28.6

Others 10 14.3

Total 70 100

Table No-4.1.3

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7 8 9

Kind Of Opinion

Respondents

Percentage (%)

FIGURE NO-4.1.3

INFERENCE:

From the above table 57.1% opinioned that, they prefer peers, 28.6% opinioned that,

they prefer performance review committee and 14.3% opinioned that, they prefer others.

So majority of the respondents opinioned that they prefer peers.

4. The Performance Appraisal Is Done At


Place of work 55 78.5

Any other place 15 21.5

Total 70 100

Table No-4.1.4

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7

Kind Of Opinion

Respondents

Percentage (%)

FIGURE NO-4.1.4

INFERENCE:

From the above table, 78.5% opinioned that, the performance appraisal is done at

the place of work and 21.5% opinioned that, the performance appraisal is done at any

other place in the organization.

5. Awareness of the Performance Appraisal System

Opinion pool Respondents Percentage (%)Fully aware 30 42.8

Partially aware 20 28.6

Not at all aware 20 28.6

Total 70 100

Table No-4.1.5

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7

Kind Of Opinion

Respondents

Percentage (%)

INFERENCE

From the above table, 42.8% opinioned that, they are fully aware of the performance

appraisal system, 28.6% opinioned that, they are partially aware of the performance

appraisal system and 28.6% opinioned that, they are not at all aware of the performance

appraisal system.

6. Performance Appraisal Is Conducted For Every


3 months 5 7.1

6 months 35 50

9 months 5 7.1

1 year 25 35.8

Total 70 100

Table No-4.1.6

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0

10

20

30

40

50

60

70

80

90

100

3months

9months

Total

Respondents

Percentage (%)

INFERENCE

From the above table, 7.1% opinioned that, the performance appraisal is conducted for

every 3 months, 50% opinioned that, the appraisal is conducted for every 6 months, 7.1%

opinioned that, the appraisal is conducted for every 9 months and 35.8% opinioned that,

the appraisal is conducted for every 1 year most of the

7. Relationships with Peers, Superiors and Subordinates


Yes 60 86

No 10 14

Total 70 100

Table No-4.1.7

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7

Kind Of Opinion

Respondents

Percentage (%)

INFERENCE

From the above table, 86% opinioned that, the interpersonal and team relationships

with peers, superiors and subordinated is satisfactory and good and 14% opinioned that,

the interpersonal and team relationships with peers, superiors and subordinated is not

satisfactory.

8. Feedback Is Communicated By the Appraise

Opinion pool Respondents Percentage (%)Immediately after

completion 15 21.4

Within 15 days 35 50

More than a month 15 21.4

Not communicated 5 7.2

Total 70 100

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Table No-4.1.8

0102030405060708090

100

Immediatelyafter

completion

More than amonth

Total

Respondents

Percentage (%)

INFERENCE

From the above table, 21.4% opinioned that, the feedback is communicated

immediately after completion, 50% opinioned that, the feedback is communicated within

15 days, 21.4 % opinioned that, the feedback is communicated more than a month and

7.2% opinioned that, the feedback is not communicated.

9. Feedback Is Communicated In the Form Of

Opinion Respondents Percentage (%)

Oral 22 31.4

Written 48 68.6

Total 70 100

Table No-4.1.9

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7 8

Kind Of Opinion

Respondents

Percentage (%)

INFERENCE

From the above table, 31.4% of the respondents opinioned that, the feedback is

communicated in oral form and 68.6% opinioned that, the feedback is communicated in

the written form.

10.By Whom the Feedback Is Communicated

Opinion pool Respondents Percentage (%)Concerned controlling

officer 20 28.6

Superior 45 64.3

Any other manager 5 7.1

Total 70 100

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Table No-4.1.10

0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6

Kind Of Opinion

Respondents

Percentage (%)

INFERENCE

From the above table, 28.6% of the respondents opinioned that, the feedback is

communicated by the concerned controlling officer, 64.3% opinioned that, the feedback is

communicated by the superior and 7.1% opinioned that, the feedback is communicated by

any other manager.

11.To Whom the Self Appraisal Report Should Submit


Your superior 23 32.9

Any controlling officer 47 67.1

Total 70 100

Table No-4.1.11

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0

20

40

60

80

100

120

Respondents

Percentage (%)

INFERENCE

From the above table, 32.9% of the respondents opinioned that, the self appraisal

report should submit to the superior and 67.1% opinioned that, the self appraisal report

should submit to any controlling officer.

12. Performance Appraisal Based On Well Defined Objective Criteria


Yes 40 57

No 30 43

Total 70 100

Table No-4.1.12

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7

Kind Of Opinion

Respondents

Percentage (%)

INFERENCE

From the above table, 57% of the respondents opinioned that, the appraisal is based

on well defined objective and 43% opinioned that, the appraisal is not based on the well

defined objective .

13.The Appraisal Is Based On Job Analysis

Kind Of Opinion Respondents Percentage (%)

Yes 12 17

No 58 83

Total 70 100

Table No-4.1.13

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7

Kind Of Opinion

Respondents

Percentage (%)

INFERENCE From the above table, 17% of the respondents opinioned that, the appraisal is based

on job analysis and 83% opinioned that, the appraisal is not based on job analysis.

14.Necessary for Performance Appraisal


Yes 70 100

No 0 0

Total 70 100

Table No-4.1.14

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7

Kind Of Opinion

Respondents

Percentage (%)

INFERENCE

From the above table it shows all the respondents opinioned that, the appraisal is

necessary for the organization.

15.Publicity To The Performance Appraisal By The Organization


Yes 45 64

No 25 36

Total 70 100

Table No-4.1.15

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0

10

20

30

40

50

60

70

80

90

100

1 2 3 4 5 6 7

Kind Of Opinion

Respondents

Percentage (%)

INFERENCE

From the above table, 64% of the respondents opinioned that, the performance

appraisal publicity is given by the organization and 36% opinioned that, the publicity is not

given.

16.Effectiveness of Present Performance Appraisal System


Yes 35 50

No 35 50

Total 70 100

Table No-4.1.16

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0

10

20

30

40

50

60

70

80

90

100

Yes No Total

Respondents

Percentage (%)

INFERENCE

From the above table, 50% of the respondents opinioned that, the present

performance appraisal system is effective and 50% of the respondents opinioned that, the

present appraisal system is not effective.

17.Performance Appraisal Regarding Promotions Should Be Based On


Only seniority 20 28.6

Only merit 10 14.3

Both merit & seniority 40 57.1

Total 70 100

Table No-4.1.17

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0

20

40

60

80

100

120

Respondents

Percentage (%)

INFERENCE

From the above table, 28.6% of the respondents opinioned that, the appraisal

regarding promotions is based on only seniority, 14.3% opinioned that, the appraisal

regarding promotions is based on only merit and 57.1% opinioned that, the appraisal

regarding promotions is based on both merit and seniority.

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CHAPTER – V

SUMMARY & SUGGESTIONS

5.1 SUMMARY

This project is entitled with 5 chapters which are as follows:

The first Chapter deals with introduction need for the study, objectives,

methodology and limitations. In this chapter on need for the study deals with, a good

system of performance appraisal and feedback is needed by organization that wants to be

dynamic and growth orientd. There should no difference of opinion between the review

and appraisal employees. The feedback plays a major role in the process of

communication between the superior and the subordinate.

Objective of the study is to understand the practical problems in implementing the

procedure and to make employee realize his or her full potential. And establish and

maintain productive, self respecting and internally satisfying working relationships among

all the members of the origin.

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Methodology of the study, sample size is 70 and data collection of the study are

primary and secondary data. The technique used was simple random technique. the

instruments for collecting primary data are personal interview and questionnaire.

Limitations of the study is it may not be possible to cover in depth because of the period is

limited

The second Chapter deals with the industry profile and its business lines in

different fields. The HCCBPL got succeed in whatever it entered with awards and

milestones of successful journey as a symbol of its achievements. The group even more

serious and considerable its responsibilities as a social organization with CSR activities.

It deal with company profile and organization structure. In this chapter, company

profile includes with the company history and growth. In May 1886, Dr John Pemberton

first introduced Coca- Cola in Atlanta Mr. Frank M Robinson suggested the name of Coca –

Cola “meaning the extracts of cola nuts and coca leaves the two main ingredients of Coca

– Cola in 1929. CANDLER sold the company to Ernest Woodruff and he was the first

president of “Coca – Cola” M.DOUGLAS IVESTOR is currently chairman and BOD (Board of

director) of Coca – Cola company. Company’s head quarters are located in ATLANTA

GEORGIA. Approximately 70% of company volume and 80% of company profit come from

the outside the U.S. Scientists soon discovered that gas carbon or carbonium was behind

the bubbles in natural mineral water. The first marketed soft drink appeared in the 17th

century. Coca Cola enjoyed in step by step worldwide Atlanta Beginnings (1986-

1892).Coca Cola is enjoyed in the United States. Coca Cola made its debut in Atlanta, At

Jacobs’ pharmacy Soda fountain where it is sold for 5 cents a glass. It was 1886, and in

New York Harbor, workers were constructing the Statue of Liberty. Eight hundred miles

away, another great American symbol was about to be unveiled.

John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One

afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he

carried it a few doors down to Jacobs’ Pharmacy. Here, the mixture was combined with

carbonated water and sampled by customers who all agreed -- this new drink was

something special. So Jacobs’ Pharmacy put it on sale for five cents a glass.Pemberton’s

bookkeeper, Frank Robinson, named the mixture Coca-Cola®, and wrote it out in his

distinct script. To this day, Coca-Cola is written the same way. In the first year, Pemberton

sold just 9 glasses of Coca-Cola a day. A century later, The Coca-Cola Company has

100


produced more than 10 billion gallons of syrup. Unfortunately for Pemberton, he died in

1888 without realizing the success of the beverage he had created.


Introducing Coke, The elf-like sprite is introduce to promote the use of the worldwide

“Coke”

A world of customers (196l-l980)

Coca-Cola is enjoyed 163 countries worldwide.

Teaching the world to sing.

During the 70’s Coca-Cola thrilled the world with its exciting and dynamic

advertising. After 70 years of success with one brand, Coca-Cola®.

The Company decided to expand with new flavors:

Fanta®, originally developed in the 1940s and introduced in the 1950s;

Sprite® followed in 1961, with TAB® in 1963 and Fresca® in 1966. In 1960,

The Coca-Cola Company acquired The Minute Maid Company, adding an entirely

new line of business - juices -- to the Company.Advertising for Coca-Cola, always an

important and exciting part of its business, really came into its own in the 1970s, and

reflected a brand connected with fun, friends and good times. The international appeal of

Coca-Cola was embodied by a 1971 commercial, where a group of young people from all

over the world gathered on a hilltop in Italy to sing “I’d Like to Buy the World a Coke.”

Coke in space In 1985, Coca-Cola becomes the first soft drink ever in space.

New Markets and Brands (1990-1999)

Coca-Cola is enjoyed in nearly 200 countries worldwide.

Refreshing the world through sports. The Company continues its long standing

association with athletic events including the Olympic Games and the FIFA world cup. The

l990s were a time of continued growth for The Coca-Cola Company. The Company’s long

association with sports was strengthened during this decade, with ongoing support of the

Olympic Games, FIFA World CupTM foot ball (soccer), Rugby World Cup and the National

Basketball Association. Coca-Cola classic became the Official Soft Drink of NASCAR racing,

101


connecting the brand with one of the world’s fastest growing and most popular spectator

sports. New beverages joined the Company’s line-up, including PowerAde® sports drink,

Qoo® children’s fruit drink and Dasani® bottled water. The Company’s family of brands

further expanded through acquisitions, including Limca®, Maaza® and Thurns Up® in

India, Barq’s® root beer in the U.S., Inca Kola® in Peru, and Cadbury Schweppes’®

beverage brands in more than 120 countries around the world. By 1997, the Company

already sold 1 billion servings of its products every day, yet knew that opportunity for

growth was still around every corner.

Coca-Cola now (2000-now)

Coca-Cola is enjoyed in more than 200 countries worldwide.

Welcome to ‘The Coke side of life”. Coca-Cola global marketing flat form makes its

debut.1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy.

Now well into its second century, the Company’s goal is to provide magic every time

someone drinks one of its more than 500 brands. From the early beginnings when just

nine drinks a day were served, Coca-Cola has grown to the world’s most ubiquitous brand,

with more than 1.4 billion beverage servings sold each day. When people choose to reach

for one of The Coca-Cola Company brands, the Company wants that choice to be exciting

and satisfying, every single time. Achievements of coca cola are,

Coca-Cola is one of the Warren Buffet’s Top 5 Holding Companies. Re entering in

India 1993. Introducing of Kinley water bottle in the year 1994. Starting of Coca-Cola

online in the year 1996. Celebrating a 100 anniversary with first world wide bottle

conference in the year 1985. I time of introducing 2 liters, plastic bottles with bottle grip

handle. Organizational structure deals with division of work activities and shows how

different functions or activities are linked. Financial functions involves function of financial

department, sources of finance, financial structure and stores, shipping etc.. HR functions

involves planning and forecasting, job analysis, recruitment procedure, training and

development, compensation benefits employee relationships, safety policy. Production

function involves the functions of production department, production schedule, quality

assurance department. Marketing functions involves the functions of sales department,

advertising, marketing mix decisions, distribution channels, customer relationship

management.

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The third Chapter deals with the review literature and the procedure of

performance appraisal system in HCCBPL . The review literature deals with the main

aspects of performance appraisal of the employees and how it would motivate the

employees and it helps in both the individual and organizational development.

The performance appraisal system in HCCBP ltd is very good and satisfactory by

the employees.

The fourth chapter deals with the data analysis and interpretation. The data is

interpreted based on the samples collected from the employees in the organization. The

data analysis deals with the company whether the employees are satisfied with the

procedure or to make any changes in the present appraisal system and the necessary

chages are suggested to the organizations.

The fifth chapter deals with the summary of the project report and findings and

suggestions basing on the study.

5.2 FINDINGS

1. It observed that 86% of the respondents opinioned on the performance appraisal

system existence in the organization, where as 14% of the respondents opinioned

on the appraisal system non existence. Therefore majority are considering the

existence of appraisal system.

2. It observed that 22% of the respondents opinioned on the factors of appraisal was

excellent, 47% of the respondents opinioned that, the factors of appraisal was

good, 17% of the respondents opinioned that, the factors of appraisal was average

and 14% of the respondents opinioned that was poor. Hence it can conclude that

the appraisal system is up-to the mark.

3. It observed that 57.1% opinioned on the preference to peers, 28.6% opinioned

that, they prefer performance review committee and 14.3% opinioned that, they

prefer others. Hence it can conclude that majority are preferring the peer on

appraisal.

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4. It can observed that 78.5% opinioned on the performance appraisal was done at

the place of work and 21.5% opinioned that, the performance appraisal was done

at other place in the organization.

5. It can analysed that 42.8% opinioned were fully aware of the performance

appraisal system, 28.6% opinioned that, they were partially aware of the

performance appraisal system and 28.6% opinioned that, they were not at all

aware of the performance appraisal system. Hence it can said that majority are

having awareness.

6. 7.1% opinioned that, the performance appraisal is conducted for every 3 months,

50% opinioned that, the appraisal is conducted for every 6 months, 7.1%

opinioned that, the appraisal is conducted for every 9 months and 35.8%

opinioned that, the appraisal is conducted for every 1 year.

7. 86% opinioned that, the interpersonal and team relationships with peers, superiors

and subordinated is satisfactory and good and 14% opinioned that, the

interpersonal and team relationships with peers, superiors and subordinated is not

satisfactory .

8. 21.4% opinioned that, the feedback is communicated immediately after

completion, 50% opinioned that, the feedback is communicated within 15 days,

21.4 % opinioned that, the feedback is communicated more than a month and

7.2% opinioned that, the feedback is not communicated.

9. 31.4% of the respondents opinioned that, the feedback is communicated in oral

form and 68.6% opinioned that, the feedback is communicated in the written form.

10. 28.6% of the respondents opinioned that, the feedback is communicated by the

concerned controlling officer, 64.3% opinioned that, the feedback is

communicated by the superior and 7.1% opinioned that, the feedback is

communicated by any other manager.

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11. 32.9% of the respondents opinioned that, the self appraisal report should submit

to the superior and 67.1% opinioned that, the self appraisal report should submit

to any controlling officer.

12. 57% of the respondents opinioned that, the appraisal is based on well defined

objective and 43% opinioned that, the appraisal is not based on the well defined

objective .

13. 17% of the respondents opinioned that, the appraisal is based on job analysis and

83% opinioned that, the appraisal is not based on job analysis.

14. All the respondents opinioned that, the appraisal is necessary for the organization.

15. 64% of the respondents opinioned that, the performance appraisal publicity is

given by the organization and 36% opinioned that, the publicity is not given.

16. 50% of the respondents opinioned that, the present performance appraisal system

is effective and 50% of the respondents opinioned that, the present appraisal

system is not effective.

17. 28.6% of the respondents opinioned that, the appraisal regarding promotions is

based on only seniority, 14.3% opinioned that, the appraisal regarding promotions

is based on only merit and 57.1% opinioned that, the appraisal regarding

promotions is based on both merit and seniority.

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5.3 SUGGESTIONS

1. Only few respondents opinioned that the appraisal factors are excellent. So the

organization needs to consider good factors for appraisal.

2. The organization need to consider 360 degree appraisal system because they

prefer more to the peers.

3. For every organization the awareness of performance appraisal is important. So

the organization needs to create 100% awareness about performance appraisal

system.

4. The performance appraisal should be conducted based on the well defined

objective.

5. Job analysis is one of the dominant factors for appraisal so the organization need

to give more importance for job analysis while conducting appraisal.

6. The organization has to increase efficiency of system by establishing the good

standards for performance appraisal.

7. The feedback plays a major role in the process of communication between the

superior and the subordinate. So that the organization need to provide

immediate feedback to its employees.

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5.4 CONCLUSION

At lastly I would like to draw my conclusion in this topic performance appraisal

system. It is one of the crucial issues where employees expect good results which lead to

high satisfaction.

This appraisal even acts as a feedback system, which plays a major role in the

development of the organization through erasing the communication barriers between

the superior and the subordinate. In the present scenario system brings up the

organization with rich productivity.

A good system of performance appraisal comes out through perfect rating of the

employees and their feedback for the given rating. The system should work so the things

to be done through the people.

HCCBPL occupied a prominent position in the industry in its products and it has been

achieving its objectives despite of obstacles faced and stood at a good position with a

perfect vision.

The employees of HCCBPL are satisfied with the system of appraisal followed there,

because of its concern and consideration towards the employees by the management.

Finally I conclude my topic “performance appraisal ”, the work and the related issues

were drastically changed when compared to the past.

Performance appraisal is a sensitive issue because it not only appraisal for the

achievers but also punishments and warnings to the low contributors. Everything done by

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the organization should be accepted the employees and even make the perceive that it is

done for the good sake of employees. This factor is quite crucial for any organization to

achieve its objectives.

BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS

1. DR. P. SUBBA RAO Essentials of Human Resource Management And industrial

relations, Himalaya publishing house, 3rd revised edition, Mumbai 1999.

2. K. ASWATHAPPA Human Resources and Personnel Management,Mc Graw

Hill edition, New Delhi, revised edition, 2007.

3. R.S. DWIVEDI Human Resources and Personnel Management, Galgotia

Publishing Company, New Delhi, revised edition, 2008.

4. V.S.P. RAO Human Resource Management, excel books, New Delhi,

edition, 2005.

5. Kothari Research methodology.

READING MATERIALS

1. Annual records and reports of the coca cola company.

2. Previous project records at the company.

WEBSITES

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1. www.Google.com

2. www.BBIPLINFRA.com

ANNEXURES

110

http://www.BBIPLINFRA.com/

http://www.Google.com/


QUESTIOINNAIRE

Respected Sir/madam,

I am Y.LALITHA KUMARI studying M.B.A, 3rd semester with HR

specialization in AITAM SCHOOL OF COMPUTER SCIENCES AND MANAGEMENT, Tekkali. I

will sure that the information provided by you can be kept as confidentially and it is only

for my academic purpose. So please cooperate with me.

NAME:

AGE:

DESIGNATION:

DEPARTMENT:

MONTHLY INCOME:

EXPERIENCE:

1. Is there any performance appraisal system existing in your organization?

A. YES

B.NO

2. The criteria/factors for performance appraisal are

A. Excellent

B. Good

C. Average

D. Poor

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3. If you are above the supervisory cadre, are you satisfied with self appraisal or you

prefer

A. Peers

B. Performance Review Committee

C. Others

4. Where the performance appraisal is made?

A. Place of work

B. Any other place in the organization

5. Awareness of performance appraisal system

A .Fully Aware

B .Partially Aware

C. Not at all Aware

6. Performance appraisal are usually conducted every

A. 3 months

B. 6months

C. 9 months

D. 1 year

7. Interpersonal and team relationship with peers, superior and subordinates are

Satisfactory and good?

A .YES B .NO

8.Feedback is communicated to the appraise

A. Immediately after completion

B. within 15 days

C. More than a month

D .Not communicated

9. Feedback is communicated in which form

A. Oral

B. Written

10.The feedback in appraisal, if communicated, by whom it is done?

A. Concerned controlling officer

B. Superior

C. Any other manager

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11.If you are above the supervisory cadre, to whom you will submit the self appraisal

report?

A .Your superior

B .Any controlling officer

12.Is the performance appraisal based on well defined objective criteria?

A. Yes

B. No

13.Is the appraisal based on job analysis?

A. Yes

B. No

14.Is the performance appraisal necessary for the organization?

A. Yes B. No

15.Has the performance appraisal given wide publicity in the organization?

A .YES B .NO

16. Present performance appraisal is effective?

A .YES B .NO

17.Performance appraisal regarding promotions should be based on?

A.Only Seniority

B.Only Merit

C. Both Merit and Seniority

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