Bal Pharma Ltd-Saroja Bhimayya-04100

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    Effectiveness Of PAS Bal Pharma Ltd

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    EFFECTIVENESS OF PERFORMANCE APPRAISAL IN

    BAL PHARMA LTD

    A DISSERTATION SUBMITTED IN PARTIAL

    FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF

    MBA DEGREE OF

    BANGALORE UNIVERSITY

    SUBMITTED BY

    SAROJA BHIMAYYA

    Reg. No 04XQCM6079

    UNDER THE GUIDANCE

    OF

    Prof. NANDINI VAIDYANATHAN

    SENIOR PROFESSOR, MPBIM BANGALORE

    M. P. BIRLA INSTITUTE OF MANAGEMENT

    (ASSOCIATE BHARATIYA VIDYA BHAVAN)

    #43, Race Course Road, BANGALORE 560001 (2006)

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    DECLARATION

    I hereby declare that, this Dissertation is entitled EFFECTIVENESS OF

    PERFORMANCE APPRAISAL IN BAL PHARMA LTDis the result

    of project work undertaken by me under the guidance and supervision of

    Prof. Nandini Vaidyanathan, Professor, MPBIM, Bangalore, in partial

    fulfillment of the requirements for the award of Degree of Master of

    BusinessAdministration.

    I further declare that this dissertation has not been submitted to any

    University/Institute for the award of any degree/diploma or any other similar

    title.

    Place: Bangalore (SAROJA BHIMAYYA)

    Date: 14th June, 2006

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    ACKNOWLEDGMENT

    I would like to express my sincere gratitude to my research guide Prof.

    Nandini Vaidyanathan, Professor, M. P. Birla Institute of Management,Bangalore for her constant encouragement and guidance in the course of the

    research investigation.

    Further, I would also like to thank Prof. K V PRABHAKAR for his help in

    completing the project. I have gained a lot of knowledge through out the

    course of carrying out this project.

    And also, I would like to thank Maj. Kulwant Singh GM HR & Admin and

    Mrs. Mahalaxmi Asst. Manager HR (External Guide) in Bal Pharma Ltd for

    their support and guidance for successfully completing the project. I have

    gained a lot of knowledge through out the course.

    I would also like to sincerely thank my family and friends and my colleagues

    who have helped me in completing this project by providing me with the

    academic support.

    SAROJA BHIMAYYA

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    CONTENT

    ChapterTitle

    Page

    No

    Executive Summary 2

    1 Introduction

    Background of the study

    Performance Appraisal and its importance6

    2 Company Profile

    Performance Appraisal process in Bal Pharma

    Ltd.20

    3 Review of literature

    Purpose of the review of literature

    Methodology of the review of literature

    Summary of Review of Literature

    27

    4 Research methodology

    Problem Statement

    Objectives of the Research

    Type of Research

    Sampling TechniqueSample size

    Instrumentation techniques

    Actual collection of data

    Interpretation and analysis

    Limitations of the research

    34

    5 Data Analysis and Interpretation38

    6 Major Findings of Research 54

    7 Recommendations57

    8 Annexure61

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    List of Tables

    Table No Table Description Page No

    1

    Table showing employee service in the

    company 38

    2Table showing the responses for purpose of

    PAS40

    3 Table showing the rating officer for the PAS 41

    4 Table showing coverage of parameters in PAS 42

    5 Table showing coverage of parameters in PAS 43

    6 Table showing coverage of parameters in PAS 447 Table showing coverage of parameters in PAS 45

    8Table showing accurate evaluation of

    Performance46

    9Table showing preference of present rating

    system47

    10

    Table showing assistance of the performance

    parameters 48

    11Table showing dependence of appraisal

    system50

    12Table showing scope of individual

    development in the organization51

    13 Table showing opinion about the suggestions 52

    14 Table showing satisfaction of PAS 53

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    List of Graphs

    Table No Graph Description Page No

    1 Graph showing employee service in the

    company 38

    2 Graph showing the responses for purpose of

    PAS40

    3 Graph showing the rating officer for the PAS 41

    4 Graph showing coverage of parameters in

    PAS42

    5 Graph showing coverage of parameters inPAS

    43

    6 Graph showing coverage of parameters in

    PAS44

    7 Graph showing coverage of parameters in

    PAS45

    8 Graph showing accurate evaluation of

    Performance 46

    9 Graph showing preference of present rating

    system47

    10 Graph showing assistance of the performance

    parameters48

    11 Graph showing dependence of appraisal

    system

    50

    12 Graph showing scope of individual

    development in the organization51

    13 Graph showing opinion about the suggestions 52

    14 Graph showing satisfaction of PAS 53

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    EXECUTIVE SUMMARY

    The Indian Pharmaceutical Industry today is in the front rank of science-based industries

    with wide ranging capabilities in the complex field of drug manufacture and technology.

    A highly organized sector, the Indian Pharma Industry is estimated to be worth $ 4.5

    billion, growing at about 12 to 18 percent annually. It ranks very high in the third world,

    in terms of technology, quality and range of medicines manufactured. From simple

    headache pills to sophisticated antibiotics and complex compounds, almost every type of

    medicine is now made indigenously.

    Bal pharma was incorporated on 19th May 1987 as a private limited company and it

    commenced commercial production from 1992. Bangalore based pharmaceuticalcompany engaged in manufacturing and R&D of pharmaceutical products Also quoted on

    BSE. Mr.Shailesh Siroya, heads the company by playing an active role as the Managing

    Director of the company and steering it to better levels of profitability, quality, and

    perfection..

    Human Resource Management is a management function that helps managers to Recruit,

    Select, Train and Develop members for an organization. Performance appraisal may be

    understood as the assessment of an individuals performance being measured against

    such factors as job knowledge, quality and quantity of output, initiative, leadership

    abilities, supervision, dependability, co-operation, judgment, versatility, health and the

    like.

    The Performance Appraisal System needs to be very transparent and helpful both to the

    employees and to the organization. The need is to get a feedback from appraisers andappraisee, working in the organization, about the current state of the PAS. Only after

    analyzing the current state of PAS, the human resource managers can go to the next step

    of improvements in PAS. A survey is therefore required.

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    A study was undertaken to ascertain the views/opinions of the Raters and Ratees working

    in the company and to suggest appropriate modifications about the existing PAS.

    Structured questionnaire was prepared and discussed personally with the respondents to

    get their responses. The sample size will be restricted to 50 executives chosen on random

    sampling method.

    The findings indicate that the executives in general, the raters and the ratees are very well

    aware of the appraisal system followed in the company. The knowledge about the

    appraisal system is also found to be satisfactory. But there exists a performance related

    communication gap between the appraiser and the appraisee. The responses of the raters

    show that they encounter problems with the standards of evaluation. It was also found

    that appraisees dont get timely feedback from their appraisers. Training/counseling was

    provided occasionally to the ratees to improve their performance.

    A suitable recommendation needs to be provided in this front. Incorporating a suitable

    modification in the existing performance appraisal system can reduce the problems faced

    by the raters and ratees. The following recommendations are made:

    The training interventions should be more frequent, there should be system for more

    frequent feed back on employee performance and appraisal process and Introduction of

    360-degree appraisal system.

    .

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    INTRODUCTION

    Background of the Study

    Human Resource Management is a management function that helps managers to Recruit,

    Select, Train and Develop members for an organization. HRM is concerned with the

    peoples dimension in organizations. HRM is a series of integrated decisions that form

    the employment relationship, their quality contributes to the ability of the organizations

    and the employees to achieve their objective. Since every organization is made up of

    people, acquiring their services, developing their skills, motivating them to higher levels

    of performance and ensuring that they continue to maintain their commitment to the

    organizational objectives. This is true, regardless of the type of organization whether

    government, business, education, health, recreation, or social organization. Thus, HRM

    refers to a set of programme; functions and activities designed and carried out in order to

    maximize both employees as well as organizational effectiveness.

    Objectives of HRM

    The primary objective of HRM is to ensure the availability of a competent and willing

    workforce to an organization. Beyond this, there are other objectives, too.

    Specifically, HRM objectives are of four fold:

    1. Societal

    2. Functional

    3. Organizational

    4. Personal

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    HRM objectives - Supporting Functions

    1. Societal Objectives Legal Compliance

    BenefitsUnion Management relations

    2. Organizational Objectives Human resource planning

    Employee relations

    Selection

    Training and Development

    Appraisal

    Placement

    Assessment

    3. Functional Objectives Recruitment and selection

    Appraisal

    Placement

    Assessment

    Training and Development

    4. Personal Objectives Personal growth

    Learning

    Placement

    Compensation

    Assessment

    Job-Satisfaction

    Recognition

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    PERFORMANCE APPRAISAL

    The History of Performance Appraisal

    Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion

    studies. But that was not very helpful, for the same may be said about almost everything

    in the field of modern human resources management. 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.

    Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things

    historical, it might well lay claim to being the world's second oldest profession!

    There is, says Dulewicz (1989), "... a basic human tendency to make judgments about

    those one is working with, as well as about oneself." Appraisal, it seems, is both

    inevitable and universal. In the absence of a carefully structured system of appraisal,

    people will tend to judge the work performance of others, including subordinates,

    naturally, informally and arbitrarily.

    The human inclination to judge can create serious motivational, ethical and legal

    problems in the workplace. Without a structured appraisal system, there is little chance of

    ensuring that the judgments made will be lawful, fair, defensible and accurate.

    Performance appraisal systems began as a simple method of income justification. That is,

    appraisal was used to decide whether or not the salary or wage of an individual employee

    was justified.

    The process was firmly linked to material outcomes. If an employee's performance were

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

    performance was better than the supervisor expected, a pay rise was in order.

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    Little consideration, if any, was given to the developmental possibilities of 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.

    Objectives of performance Appraisal

    Data relating to performance assessment of employees are recorded, stored, and used for

    several purposes. The main purposes of employee assessment are:

    To effect promotions based on competence and performance To confirm the services of probationary employees upon their completing the

    probationary period satisfactorily.

    To assess the training and developmental needs of employees. To decide upon a pay raise where (as in the unorganized sector) regular pay scales

    have not been fixed.

    To let the employees know where they stand in so far as their performance isconcerned and to assist them with constructive criticism and guidance for the

    purpose of their development.

    To improve communication. Performance appraisal provides a format fordialogue between the Superior and the subordinate, and improves understanding

    of personal goals and concerns. This can also have the effect of increasing the

    trust between the rater and the ratee.

    Finally, performance appraisal can be used to determine whether HR programmessuch, as selection, training and transfers have been effective or not.

    Modern Appraisal

    Performance appraisal may be defined as a structured formal interaction between asubordinate and supervisor, that usually takes the form of a periodic interview (annual or

    semi-annual), in which the work performance of the subordinate is examined and

    discussed, with a view to identifying weaknesses and strengths as well as opportunities

    for improvement and skills development.

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    In many organizations - but not all - appraisal results are used, either directly or

    indirectly, to help determine reward outcomes. That is, the appraisal results are used to

    identify the better performing employees who should get the majority of available merit

    pay increases, bonuses, and promotions.

    By the same token, appraisal results are used to identify the poorer performers who may

    require some form of counseling, or in extreme cases, demotion, dismissal or decreases in

    pay. Whether this is an appropriate use of performance appraisal - the assignment and

    justification of rewards and penalties - is a very uncertain and contentious matter.

    Basic Purposes

    Effective performance appraisal systems contain two basic systems operating in

    conjunction: an evaluation system and afeedback system. The main aim of the evaluation

    system is to identify the performance gap (if any). This gap is the shortfall that occurs

    when performance does not meet the standard set by the organization as acceptable. The

    main aim of the feedback system is to inform the employee about the quality of his or her

    performance. (However, the information flow is not exclusively one way. The appraisers

    also receive feedback from the employee about job problems, etc.)

    One of the best ways to appreciate the purposes of performance appraisal is to look at it

    from the different viewpoints of the main stakeholders: the employee and the

    organization.

    Employee Viewpoint:

    From the employee viewpoint, the purpose of performance appraisal is four-fold:

    1. Tell me what you want me to do2. Tell me how well I have done it3. Help me improve my performance4. Reward me for doing well.

    (From Cash, 1993)

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    Organizational Viewpoint:

    From the organization's viewpoint, one of the most important reasons for having a system

    of performance appraisal is to establish and uphold the principle of accountability. For

    decades it has been known to researchers that one of the chief causes of organizational

    failure is "non-alignment of responsibility and accountability." Nonalignment occurs

    where employees are given responsibilities and duties, but are not held accountable for

    the way in which those responsibilities and duties are performed. What typically happens

    is that several individuals or work units appear to have overlapping roles.

    The overlap allows - indeed actively encourages - each individual or business unit to

    "pass the buck" to the others. Ultimately, in the severely non-aligned system, no one is

    accountable for anything. In this event, the principle of accountability breaks down

    completely. Organizational failure is the only possible outcome.

    Formal versus Informal appraisal

    Formal appraisals usually occur at specified time periods-once or twice a year. Formal

    appraisals are most often required by the organization for the purpose of employee

    evaluation.

    Informal performance appraisal can occur whenever the supervisor feels the needs forcommunication. Many organizations encourage a mixture of both formal and informal

    appraisals. The formal appraisal is most often used as primary evaluation. However, the

    informal appraisal is very helpful for more performance feedback. Informal appraisals

    should not take place of formal performance evaluation.

    Whose performance should be rated?

    To the question as to whose performance should be rated, the answer is obviousemployees. When we say employees, is it individuals or teams? Specifically, the rate may

    be defined as the individual, work group, division, or organization. It is also possible to

    define the ratee at multiple levels. For example, under some conditions, it may be

    desirable to appraise performance both at the work-group level for merit-pay increases

    and at the individual level to assess training needs.

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    Who are raters?

    Raters can be immediate supervisors, specialists from the HR department, department,

    subordinates, peers, committees, clients, selfappraisals, or a combination of several.

    Problems of rating

    Performance appraisals are subject to a wide variety of inaccuracies and biases referred to

    as rating errors. These errors occur in the raters observations, judgment, and

    information processing, and can seriously affect assessment results. The most common

    rating errors are

    Leniency or severity

    Central tendency

    Halo effect

    Rater effect

    Primacy and Recency effects

    Perceptual set

    Performance dimension behavior

    Spill over effect

    Status effect

    Solving raters problems

    The best way to overcome these problems is to provide training to the raters. From a

    practical point of view, several factors, including the extent to which pay is related to

    performance ratings, union pressure, turnover rates, time constraints and the need to

    justify ratings may be more important than training, influencing the ratings that raters

    actually give. This means that improving rating systems involves not just training the

    raters but rectifying outside factors such as union pressure. And it means that a rater

    training, to be effective, should also address real-life problems such as the fact that union

    representatives will try to influence supervisors to rate everyone high.

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    Training helps to improve the appraisal system by overcoming distortion that occurs due

    to the raters errors such as halo, leniency, central tendency and bias. Training of raters

    must help strengthen the factors that tend to improve accuracy of ratings and weaken

    those that lower the accuracy of the performance measurement.

    What should be rated?

    One of the steps in designing an appraisal Programme is to determine the evaluation

    criteria. It is obvious that the criteria should be related to the job. The six criteria for

    assessing performance are:

    Quality

    Quantity

    Timeliness

    Cost effectiveness

    Need for supervision

    Interpersonal impact

    These criteria relate to past performance and behavior of an employee. The first four -

    quality, quantity, timeliness and cost effectiveness are objective in nature. The last two -

    need for supervision and interpersonal impact are subjective. Objective measures are

    quantifiable and are therefore highly useful in measuring the performance of an

    employee. But performance of employees should not always be evaluated against

    quantifiable measures. Subjective measures are dependent upon human judgment. They

    are prone to different kind of errors stated earlier such as leniency or severity, central

    tendency, halo and the like. To be useful, subjective measures must be based on a careful

    analysis of the behavior viewed as necessary and important for effective job performance.

    Timing of Evaluation

    How often should an employee be assessed? The general trend is to evaluate once in

    three months, or six months, or once in a year. 70% of the organizations conduct

    performance appraisal once a year, according to a survey conducted in 1997 by Arthur

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    Anderson. Newly hired employees are rated more frequently than the older ones.

    Frequent assessment is better than phased evaluation. Feedback in the latter is delayed

    and the advantage of timely remedial measures by the employee is lost. Frequent

    evaluation gives constant feedback to the ratee, thus enabling him/her to improve

    performance if there is any deficiency. The performance of trainees and probationers

    should be evaluated at the end of respective programmes.

    Methods of Appraisals

    The last to be addressed in the process of designing an appraisal Programme is to

    determine method(s) of evaluation. Numerous methods have been devised to measure the

    quantity and quality of employees job performance. Each of the methods discussed

    could be effective for some purposes, for some organizations. None should be dismissed

    or accepted as appropriate except as they relate to particular type of employees. Broadly

    all approaches can be classified into:

    Past-oriented methods

    Future-oriented methods

    Each group has several techniques. Some of them are explained in the following section.

    Behavioral Anchored Rating Scales

    The term used to describe a performance rating that focuses on specific behaviors or sets

    as indicators of effective or ineffective performance, rather than on broadly stated

    adjectives such as "average, above average, or below average".

    Other variations are:

    Behavioral observation scales

    Behavioral expectations scales

    Numerically anchored rating scales

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    Checklists

    The term used to define a set of adjectives or descriptive statements. If the rater believes

    the employee possessed a trait listed, the rater checks the item; if not, the rater leaves the

    item blank. Rating score from the checklist equals the number of checks.

    Critical Incident Technique

    The term used to describe a method of performance appraisal that makes lists of

    statements of very effective and very ineffective behavior for employees. The lists are

    combined into categories, which vary with the job. Once the categories are developed and

    statements of effective and ineffective behavior provided, the evaluator prepares a log for

    each employee. During the evaluation period, the evaluator records examples of critical

    behaviors in each of the categories, and the log is used to evaluate the employee year end.

    Forced Choice Method

    This appraisal method has been developed to prevent evaluators from rating employees to

    high. Using this method, the evaluator has to select from a set of descriptive statements,

    statements that apply to the employee. The statements are weighted and summed to at,

    effectiveness index.

    Forced Distribution

    The term used to describe an appraisal system similar to grading on a curve. The

    evaluators are asked to rate employees in some fixed distribution of categories. One way

    to do this is to type the name of each employee on a card and ask the evaluators to sort

    the cards into piles corresponding to rating.

    Graphic Rating Scale

    The term used to define the oldest and most widely used performance appraisal method.

    The evaluators are given a graph and asked to rate the employees on each of the

    characteristics. The number of characteristics can vary from one to one hundred. The

    rating can be a matrix of boxes for the evaluator to check off or a bar graph where the

    evaluator checks off a location relative to the evaluators rating.

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    Narrative or Essay Evaluation

    This appraisal method asks the evaluator to describe strengths and weaknesses of an

    employee's behavior. Some companies still use this method exclusively, whereas in

    others, the method has been combined with the graphic rating scale.

    Management by Objectives

    The management by objectives performance appraisal method has the supervisor and

    employee get together to set objectives in quantifiable terms. The appraisal method is

    worked to eliminate communication problems by the establishment of regular meetings,

    emphasizing results, and by being an ongoing process where new objectives have been

    established and old objectives are modified as necessary in light of changed conditions.

    Paired Comparison

    The term used to describe an appraisal method for ranking employees. First, the names of

    the employees to be evaluated are placed on separate sheets in a pre-determined order, so

    that each person is compared with all other employees to be evaluated. The evaluator

    then checks the person he or she feels has been the better of the two on the criterion for

    each comparison. Typically the criterion is the employees over all ability to do the

    present job.

    Ranking

    The term ranking has been used to describe an alternative method of performance

    appraisal where the supervisor has been asked to order his or her employees in terms of

    performance from highest to lowest.

    Weighted Checklist

    The term used to describe a performance appraisal method where supervisors or

    personnel specialists familiar with the jobs being evaluated prepared a large list of

    descriptive statements about effective and ineffective behavior on jobs.

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    Performance Interview

    Performance Interview is another step in the appraisal process. Once the Appraisal has

    been made of employees, the raters should discuss and review the performance with the

    ratees, so that they will receive feedback about where they stand in the eyes of the

    superiors. Feedback is necessary to effect improvement in performance, especially when

    it is adequate. Specifically Performance Interview has three goals

    To change behavior of employees whose performance does not meet organizational

    requirements or their own personal goals.

    To maintain the behavior of employees who perform in an acceptable manner, a

    To recognize superior performance behavior so that they will be continued.

    Use of appraisal data

    The final step in the evaluation process is the use of evaluation data. The HR department

    must use the data and information generated through performance evaluation. In one way

    or the other, data and information outputs of a performance appraisal Programme can

    critically influence employer-employee reward opportunities. Specifically the data and

    information will be useful in the following areas of HRM

    Remuneration administration

    Validation of selection programmes

    Employee training and development programmes

    Promotion, transfer and lay-off decisions

    Grievance and discipline programmes

    HR planning

    Performance Management verses Performance Appraisal

    The shift from performance appraisal to performance management requires a shift in

    focus from a single event to a continuous process. The process provides employees with

    direction and support via a detailed performance plan composed of goals, action steps,

    measurements, and coaching throughout the yearlong cycle.

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    Performance management is different from the single appraisal because it:

    Begins with planning at the beginning of the year to clarify job expectations andaccountabilities between employee and manager

    Eliminates current employee concerns that expectations are vague or notarticulated

    Turns the appraisal document and appraisal meeting into the year-end feedbacksummary, the last of many meetings on performance.

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    COMPANY PROFILE

    Bal pharma was incorporated on 19th May 1987 as a private limited company and it

    commenced commercial production from 1992. Mr.Shailesh Siroya, playing an activerole as the Managing Director of the company and steering it to better levels of

    profitability, quality, and perfection, heads the company.

    The Bal Pharma Ltd. based in Bangalore, India - a nature and future Friendly City has

    been awarded the coveted ISO 9001 certificate by ANSI-RAB & KPMG, USA. Bal

    Pharma has three manufacturing units (Bal I- Formulations, Bal II - Bulk Drugs &

    Intermediates, Miaami - III Fluids & Ophthalmic Solutions), two units based in

    Bangalore and one in Pune, all units are equipped with ultramodern state-of the- art

    technology. All units conform to the GMP standards as laid down by WHO. Bal

    Pharmas unit III has Form Fill and Seal (FFS) technology for small & large volume

    parenteral at Miaami Pharma & Chemicals in Pune making them one of the only four

    companies in India with FFS technology for Small Volume Parenteral. The bulk drug unit

    specializes in high value niche products. They are the only manufacturer of Gliclazide by

    developing their unique Process Technology. The European directorate of Quality

    Management has awarded Certificate of Suitability for GLICLAZIDE Bulk Drug. At

    Bal Pharma, stringent quality assurance procedure for their entire product range has made

    them synonymous with quality in total. This is reflected in their commitment in meeting

    the challenges of the international and national market for formulations, bulk drug and

    intermediates.

    Their exports of formulations include South East Asian and African countries. They have

    already registered 150 of their formulations in these countries and are considering a fewmore. They have also forayed into marketing ofHERBAL MADICINES.

    From a modest turnover of 35 million (US $ 0.83 million) in 1994, Bal Pharma has

    surpassed a turnover of Rs. 450 million (US $ 9.23 million) in 2001-2002 and is today

    poised for an accelerated growth to reach Rs. 1,000 million (US $ 24 million)

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    Bal Pharma continues to strive to be the most progressive healthcare company dedicated

    to promote human health and improve quality of life through high quality need based

    formulations. The company has also successfully participated in global tenders

    PRODUCT PROFILE OF BAL PHARMA

    Analgesics / Antipyretics / Antiarthritics Antacids / Antiulcerants / Antiemetics Antihelmintics / Antiprotozoals Antiallergics / Liver Stimulants Antibiotic / Antibacterial Antidiabetics Antimalerials Antimicrobial (Topical) Antispasmodics Antitubercular Cardiac Care Cough Expectorants / Anticold Dermatologicals Neutraceuticals Progesterones Steroids Tranquilizers Large volume parenterals Small volume parenterals

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    MISSION, VISION, GOALS AND OBJECTIVES

    MISSION: We strive to be the most progressive heath care company, dedicated to

    promote human health and quality of life through high quality need based formulations,provide disciplined service to customers, encourage and reward the professional

    excellence of our people and ensure long term prosperity for our share holders.

    VISION: We with an ambitious growth plan consider change as the key factor for

    development. We believe change incorporates new ideas and perception, which helps in

    growth and development of the company. We believe in scaling in new heights. We keep

    in pace with the growing change, changing trends and always plan need based

    formulations to maintain peoples health and manage suffering millions.

    GOAL: We in a time span of3 years want to reach RS 300crore turnover and by the

    year 2010 would want to have the world as our market.

    OBJECTIVE: to ensure that every product that we manufacture must be safe, effective

    of the highest quality and should be delivered too our customers on time.

    Bal Pharma believes in achieving customers satisfaction as customers are considered as

    the The Supreme Sovereign. The following are the methods adopted to maintain

    customer satisfaction:

    Following Good manufacturing Process as lay down by the WHO. Upgraded technology and use of best resources.

    Well-trained personnel. Stringent in-hose specifications for products. Complying with registered required and continually incorporates the effectiveness

    of the quality management systems. Promoting continuous improvement in all

    fields of activity

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    Performance Appraisal System at Bal Pharma Ltd

    Performance management system consists of the processes used to identify, encourage,

    measure, evaluate, improve, and reward employee performance. Performance appraisal is

    the process of evaluating how well employees perform their jobs when compared to a set

    of standards and then communicating that information.

    Performance is essentially what an employee does or does not do. Bal Pharma assesses

    the performance of its employees on the following criteria:

    1.

    Quantity of output2. Quality of output3. Timeliness of output4. Presence at work5. Cooperativeness

    The existing Performance Appraisal System is of two types, in which they will see

    how the individuals rate themselves. Then head of the department will appraise the

    employees and on the basis of the score they will decide about the rewards,

    promotions, what skills they need, etc.

    1. Self Appraisal system

    2. Rating Scale method

    Self Appraisals:Getting employees to conduct a self-appraisal can be a useful

    evaluation technique if the goal of evaluation is to further self-development.

    When employees evaluate themselves, defensive behavior is less likely to occur

    and self-improvement is thus more likely. When self-appraisals are used to

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    determine areas of needed improvement, they can help users set personal goals for

    the future. The risk is that the employee will be too lenient or too critical of his or

    her performance.

    Rating Scales: Perhaps the oldest and most widely used form of performance

    appraisal is the rating scale, which requires the rater to provide a subjective

    evaluation of an individuals performance along a scale from low to high. The

    evaluation is based solely on the opinions of the rater, and in many cases the

    criteria are not directly related to job performance.

    The Key Elements of Performance Appraisal System

    Appraisal approaches must identify performance-related standards, measure those

    criteria, and then give feedback to employees and the HR department. If

    performance standards or measures are not job-related, the evaluation can lead to

    inaccurate or biased results, harming the managers relationship with their

    employees and violating equal employment opportunity rulings. Without

    feedback, improvement in human behavior is not likely and the department will

    not have accurate records in its HR information system on which to base decisions

    ranging from job design to compensation.

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    The format comprises of five major parts as under in Employer appraisal form:

    PART CONTENTS

    TO BE FILLED

    BY

    Part-A Bio-data of the Appraisee - Appraiser

    Part-B Evaluation Criteria - Appraiser

    Part-C Strengths Worthy Mention - Appraiser

    Part-D Training & Developmental

    Needs

    - Appraiser

    Part-E Weightage for each area

    agreed

    - Appraiser

    Part-A: In the first part of the Appraisal form bio-data of the

    Appraisee has to be filled by the appraiser.

    Part-B: In the second part the evaluation has been done by the Appraisee, the

    evaluation criteria is of five skills set, which contains again the different

    performance standards. For that appraiser has to rank on the basis of his

    observation.

    Part-C: In this part of the appraisal form appraiser has to write the strengths of the

    appraisee.

    Part-D: This part of appraisal form the appraisee has to mention the training needs

    which ever required for the appraisee for the better performance on the job.

    Part-E: This is the last part of the appraisal form where the net weight of the

    appraisal system has to be written from both the side i.e. appraisee and appraiser.

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    REVIEW OF LITERATURE

    Purpose of the review of literature

    The purpose of literature review is to identify the problem statement, understand the

    secondary data that has been gathered in the field of study and to make new findings on

    the problem statement.

    Methodology of the review of literature

    Methodology of the literature review different facets of information sources concerning

    to motivation factors for employee satisfaction. Different sources used in order to collect

    the information or data are:

    Magazines and journals

    The internet

    Publications

    Articles

    The articles have been analyzed and used in the research for better understanding of the

    topic.

    Title: How to make performance reviews more useful

    Author: Bruce L. Katcher, Ph.D. President of The Discovery Group.

    Website referred: www.discoverysurveys.com

    According to this article more than half of all employees believe that performance

    reviews have not been useful in helping them to improve their job performance.

    Employees have become cynical about the performance management process.

    http://www.discoverysurveys.com/
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    The management can

    Reinforce Positive Behaviors: "Reinforcing positive behavior will increase theprobability of that behavior."

    Uncouple Employee Development and Compensation Discussions: Salaryreviews should occur separately on an annual basis.

    Make Certain that the Performance Standards are Clear and Achievable:Performance measures must be made crystal clear. Use quantitative rather than

    qualitative measures whenever possible.

    Make Sure the Performance Measures are Relevant: Each performancemeasure should be relevant to each particular employee.

    Provide Team and Customer Feedback: Performance feedback from teammembers and customers is often much more useful than supervisory feedback.

    In summary, most employees find their performance reviews useless, but there are many

    steps that management can take to make them much more meaningful.

    Title: How to Improve the Effectiveness of Performance Management

    and Appraisal by Overcoming the Root Cause of the Problem

    Author: Julie Freeman

    Website referred: www.hrmguide.com

    This article explores why existing formal and informal approaches to Employee

    Performance Management and Appraisal (EPMA) tend to work well enough in theory,

    but fail to meet expectations in practice.

    Organizations encourage, even urge, their managers to talk informally with their

    employees about their performance on an ongoing basis. However, this rarely happens.

    Moreover, even when managers do talk to their employees, the communication often falls

    short of having the desired effect on their morale, motivation, and productivity. Despite

    our best efforts to date, managers still report that they are uncomfortable giving feedback

    http://www.hrmguide.com/
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    and discussing performance with their employees, especially if poor performance is a

    factor. It identifies the root cause of the problems associated with giving and discussing.

    Performance related information in formal and informal settings and presents a solution

    to overcome them. Various suggestions for how the solution can be applied to meet

    differing individual or corporate needs are also outlined.

    Only about 10 per cent of the managerial population has a natural ability to discuss

    performance with their employees in an effective way. According to the author, the root

    cause of the problem does not appear to lie in a lack of ability within the managerial

    population to honestly and accurately assess and evaluate an employees performance

    and potential. Actually most managers can do this very well. The root cause of the

    problem is that, to a greater or lesser extent, the vast majority of managers cannot

    actually translate what they know about that performance into useful information and

    then communicate it to the employee in an effective and practical way regardless of the

    method they are asked to use. The proposed solution for such a problem according to the

    author does not lie in trying to improve the technical elements of any given approach.

    The PAF (Performance Analysis and Feedback) technique discussed in this article

    provides a breakthrough in helping managers to deal with difficult situations like this. It

    works because it shows managers a simple and logical way that they can analyze and

    validate both the positive and negative aspects of their subjective fuzzy mental

    impressions.

    PAF is particularly effective for communicating "negative" information (the "hard stuff")

    without the kind of stress and anxiety that managers ordinarily expect to experience in

    such situations, and in a way that has the desired effect on employee behavior, outputs,

    motivation and morale. However, it is equally effective for conveying positive

    conclusions and opinions because it does so in a way that has the effect of building the

    employee's self -esteem, confidence, and desire to do well, while negative conclusions

    can be conveyed in a way that gets the hoped-for results.

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    This technique works because firstly, regardless of whether the feedback is positive or

    negative, the PAF Technique forces managers to analyze their conclusions in a very

    specific, positive, future-focused way. Specificity is a golden rule of feedback of course,

    but this approach goes ones step further because conclusions, once formed, are rarely

    examined and communicated in this way.

    Secondly, for negative feedback, the way that a problem is brought up and presented

    makes it easier on the manager to say and easier on employees to hear, understand, and

    accept, which decreases the potential for conflict and hurt feelings. Thirdly, the

    specificity of the desired performance combined with the discussion about solution

    options dramatically increases the probability that the process will achieve the hoped-for

    results.

    In summary, the big problem of improving performance-related communication between

    managers and employees can be solved by simple solution. All it takes is the will to

    implement it.

    Title: How to link pay and job performanceAuthor: Bruce L. Katcher, Ph.D. President of The Discovery Group

    Website Referred: www.discoverysurveys.com

    7 out of 10 employees say there is no relationship between their job performance and

    their pay. Employees want to feel that their good work is appreciated and appropriately

    compensated. Problems discovered from this article are:

    Employees believe that their performance is above average they therefore, believethat he or she should be paid above average.

    Employees feel that they are not adequately paid compared to those performingsimilar work in other organizations.

    Employees often perceive that there are poor performers in their organizationwho are earning as much if not more than they earn.

    http://www.discoverysurveys.com/
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    Supervisors don't have the know-how or guts to differentiate between poor,average, and above average performers.

    Tying pay to performance is very important to employees. This is particularly truein unionized organizations where the union has negotiated contracts that require

    their employer to tie pay increases to years of service rather than performance.

    The management can link pay to performance in the following manner:

    Make the organizations Pay-for-Performance Philosophy Clear to Employees. Use Bonuses Rather than Pay Increases. Rate Supervisors on how well they Rate their Subordinates. Train Supervisors how to talk about Pay. Use Objective Performance Measures. Weed out Ineffective Performers.

    In summary, employees typically want to be paid commensurate with the quality of their

    job performance. Doing so requires a carefully constructed pay program, a commitment

    from supervisors, and well-orchestrated communications to employees about their pay.

    Title: Using a Balanced Scorecard Approach to Measure

    Performance

    Authors: Robert S. Kaplan and David P. Norton

    Website referred: www.work911.com

    Traditionally, organizational performance is measured by focusing on internal or process

    performance, looking at factors such as the number of fulltime equivalents (FTE) allotted,

    the number of programs controlled by the agency, or the size of the budget for the fiscal

    year. In contrast, private sector businesses usually focus on the financial measures of

    their bottom line: return on- investment, market share, and earnings-per-share. Alone,

    neither of these approaches provides the full perspective of an organization's performance

    that a manager needs to manage effectively. But by balancing internal and process

    http://www.work911.com/
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    measures with results and financial measures, managers will have a more complete

    picture and will know where to make improvements.

    Summary of Review of Literature:The articles reviewed tell us it is difficult to introduce a new system of performance

    appraisal or modify the existing appraisal system. There always exists some problem

    regarding the performance evaluation. The study therefore tries to suggest ways in which

    the changes can be incorporated in a sequential and an ordered manner. Performance can

    also be linked to the monetary benefits associated with the job. The recommendation part

    of the research guides as to how the management can make the performance appraisal

    system more effective. One of the ways to measure performance of an employee withrespect to organizational strategies is by designing Balance Scorecard. A balance

    scorecard can be constructed with a specific purpose of linking any aspect of the

    organization with the overall organizational goals.

    Our literature survey indicates that the there is no stock type of mathematical formula for

    performance appraisal. It differs from company to company. The research on company-

    specific performance appraisal is inadequate. This has prompted us to take up this

    research investigation.

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    Research Methodology

    Problem Statement:

    A critical study of the effectiveness of the performance appraisal system and suggest

    Ways for improvement.

    Objectives of the Research:

    The research survey is proposed to be undertaken with the following objectives:

    To study the present Performance appraisal system at Bal Pharma Ltd. To ascertain the views/opinions of the Raters and Ratees working with the

    company about Performance Appraisal System, existing in the company.

    To suggest appropriate modifications in the existing Performance AppraisalSystem.

    Type of Research:

    Our research investigation is analytical. The respondents have been contacted through

    questionnaires blended with focus group interviews and responses with regard to the

    current performance appraisal system of the company have been analyzed.

    Sampling Technique:

    Though the study is confined to only one unit situated in Bangalore, a complete survey of

    all the employees is not possible, because of their busy schedule. The respondents

    belonging to the Executive level have been chosen.

    Sample size:

    A sample size of 50 employees has been selected on the basis of Random Sampling

    method.

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    Instrumentation techniques:

    Structured Questionnaire Focus Group Discussion

    Actual collection of data:

    Data is the fact of an event. Data is the base for every research work. The data is mainly

    classified into two groups.

    Primary data:Thrust has been on collection of primary data. Structured questionnaire

    has been used and discussed personally with the respondents to get their responses.

    Secondary data: Books, journals, websites etc., have been consulted for obtaining

    related information, and also for crosschecking of primary data.

    Interpretation and analysis:

    The data collected from the questionnaire have been synthesized in the form oftables and tabulated data has been analyzed.

    Percentage is calculated for each and every table. Analysis and interpretation is done based on primary data. Inference is drawn from the analysis of primary data, to attain the objective of the

    study.

    The primary data is diagrammatically represented.

    Limitations of the research

    Study is limited to the Bangalore unit of Bal Pharma Ltd only. The sample size is limited to only 50 employees Analysis of primary data is done on the assumption that the answers given by the

    respondents are true and correct.

    Time and Resource constraints.

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    DATA ANALYSIS AND INFERENCE

    PROFILE OF RESPONDENTS

    Q1. How many years of experience do you have in Bal Pharma Ltd?

    TABLE 1:Table showing the response number of years of service renderedin Bal Pharma Ltd.

    Years of Services No. Of respondents Percentage

    00 to 01 20 40

    01 to 03 8 16

    03 to 05 10 20

    05 and Above 12 24

    TOTAL 50 100

    Chart 1

    40%

    16%

    20%

    24%00 to 01

    01 to 03

    03 to 05

    05 and Above

    Source: Field Investigation

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    Observation: The above table shows that 40% of them have 1 year of experience, 16%

    of them have 3 years of experience, 20% of them are within 5 years and 20% of them are

    above 5 years experienced.

    Inference: This shows that many of the employees are new to the company. Because

    50% of them are having only one year of experience in the organization

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    Q2. According to you in Bal Pharma Ltd, Performance Appraisal system is used

    TABLE 2:Table showing the response to the purpose of PAS in Bal Pharma Ltd

    Options No. Of respondents Percentage

    To measure performance 25 50

    To Identify Skills 12 25

    To Promote individual 5 12

    To recognize & Reward 8 5

    TOTAL 50 100

    Chart 2

    50%

    24%

    10%

    16%

    To measure

    performance

    To Identify

    Skills

    To Promote

    individualTo recognize &

    Reward

    Source: Field Investigation

    Observation: The above table shows that 50 % of the respondent says performance

    appraisal system is used to measure the performance, 25 % to identify skills, 12% to

    promote individual, 5% to recognize and reward

    Inference:This shows that Bal Pharma uses PAS usually to measure the performance of

    the employee on the job.

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    Q3. Who is the rating officer of your performance in the appraisal system?

    TABLE 3:Table showing the rating officer for the PAS in Bal Pharma Ltd.

    Options No. Of respondents Percentage

    Supervisor 5 10

    Manager 0 0

    Line manager 0 0

    Head of the Department 45 90

    TOTAL 50 100

    chart 310%

    0%0%

    90%

    Supervisor

    Manager

    Line manager

    Head of the

    Department

    Source: Field Investigation

    Observation: The above table shows that 90 % of the respondents say their rating officer

    is head of their department and 10% of them said supervisor.

    Inference:This shows that head of the department is their rating officer in the company.

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    Q4. Does the present Performance Appraisal System takes into account these

    following parameters?

    TABLE 4:Table showing the job being performed by them is covered in PAS in Bal

    Pharma Ltd.

    Options No. Of respondents Percentage

    Covered 28 56

    Partially Covered 12 24

    Not covered 10 20

    TOTAL 50 100

    Chart 4

    56%24%

    20%

    Covered

    Partially

    CoveredNot covered

    Source: Field Investigation

    Observation: The above table shows 56% of them said its covered, 20% not covered

    and 24% said partially covered.

    Inference:This shows that usually they cover the job being performed by them on the

    job.

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    TABLE 5:Table showing the job knowledge of employee is covered in PAS in BalPharma Ltd.

    Options No. Of respondents Percentage

    Covered 27 54

    Partially Covered 13 26

    Not covered 10 20

    TOTAL 50 100

    Chart 5

    54%

    26%

    20%

    Covered

    Partially

    CoveredNot covered

    Source: Field Investigation

    Observation: The above table shows 54% of them said its covered, 20% not covered

    and 26% said partially covered.

    Inference:This shows that usually they cover the job knowledge of the employee on the

    job.

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    TABLE 6:Table showing the Efficiency of work done is covered in PAS in Bal PharmaLtd.

    Options No. Of respondents Percentage

    Covered 22 44

    Partially Covered 18 36

    Not covered 10 20

    TOTAL 50 100

    Chart 6

    44%

    36%

    20%

    Covered

    Partially Covered

    Not covered

    Source: Field Investigation

    Observation: The above table shows 44% of them said its covered, 20% not covered

    and 36% said partially covered.

    Inference:This shows that fairly they cover the efficiency of work done on the job.

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    TABLE 7:Table showing the communication skills are covered in PAS in Bal PharmaLtd.

    Options No. Of respondents Percentage

    Covered 21 42

    Partially Covered 19 38

    Not covered 10 20

    TOTAL 50 100

    Chart 7

    42%

    38%

    20%

    Covered

    Partially Covered

    Not covered

    Source: Field Investigation

    Observation: The above table shows 42% of them said its covered, 20% not covered

    and 38% said partially covered.

    Inference:This shows that usually they cover communication skills of the employee to

    measure the performance on the job.

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    Q5. Do you agree that present appraisal system is accurately evaluating your

    performance?

    TABLE 8:Table showing how much accurately PAS evaluate the performance of theemployee

    Options No. Of respondents Percentage

    0% to 25% 20 40

    26% to 50% 6 12

    51 to 75% 16 32

    76% to 100% 8 16

    TOTAL 50 100

    Chart 8

    40%

    12%

    32%

    16%

    0% to 25%

    26% to 50%

    51 to 75%

    76% to 100%

    Source: Field Investigation

    Observation: The above table shows 40% of them responded to 0%-25%, 12% of them

    is to26%-%50%, 32% of them is to 51%-75% and 16% of them is to 76%-100%.

    Inference:This shows that the PAS is not accurately evaluating the performance of the

    employee on the job in the organization.

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    Q6. According to your preference the present rating system is.

    TABLE 9:Table showing preference to the rating system used by them in PAS

    Options No. Of respondents Percentage

    Very Good 5 10

    Good 12 24

    Average 26 52

    Poor 7 14

    TOTAL 50 100

    Chart 9

    10%

    24%

    52%

    14%

    Very Good

    Good

    Average

    Poor

    Source: Field Investigation

    Observation: The above table shows 52% of them responded to average, 24% of them to

    good, 14% of them is to poor and 10% of them is to very good.

    Inference:This shows that the employees fairly satisfied with rating system followed by

    the organization.

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    Q7. How has the Appraisal System assisted in increasing following parameters?

    TABLE 10:Table showing preference to the rating system used by them in PAS

    Performance Efficiency Skill Knowledge

    Options No% No. % No % No %

    Excellent 4 8 5 10 5 10 5 10

    Very Good 8 16 7 14 9 18 9 18

    Good 25 50 23 46 21 42 21 42

    Average 8 16 10 20 10 21 10 21

    Poor 5 10 5 10 5 10 5 10

    TOTAL 50 100 50 100 50 100 50 100

    4

    8

    25

    8 8

    16

    50

    16

    5

    7

    23

    101014

    46

    20

    5

    9

    21

    1010

    18

    42

    21

    5

    9

    21

    1010

    18

    42

    21

    0

    10

    20

    30

    40

    50

    1 2 3 4 5 6 7 8

    Chart 10

    Excellent

    Very Good

    Good

    Average

    Source: Field Investigation

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    Observation: The above table shows three parameters,

    A. Performance: 50% of them have responded for good, 16% to the very

    good, 16% to average, 10% to poor and 8% to excellent.

    B. Efficiency: 46% of them responded to good, 20% to average, 14% to very

    good and 10 to each poor and excellent.

    C. Skills: 42% of them have responded to good, 21%to average, 18% to very

    good and 10% to each poor and excellent.

    D. Knowledge: 42% of them have responded to good, 21%to average, 18%

    to very good and 10% to each poor and excellent.

    Inference:This shows that the PAS has fairly insisted them to increase their performance

    of the job, efficiency of the work done, Skills which has to be improved and the

    knowledge of the job.

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    Q8. Do you feel that Performance Appraisal system totally depends on the Appraiser?

    TABLE 11:Table showing the dependent of the appraisal system

    Options No. Of respondents Percentage

    Yes 23 46

    No 12 24

    To Some Extent 15 30

    TOTAL 50 100

    Chart 11

    46%

    24%

    30%

    Yes

    No

    To Some

    Extent

    Source: Field Investigation

    Observation: The above table shows 46% of them responded to yes, 24% of them to no,

    24% of them responded to some extent.

    Inference:This shows that the appraisal system is mostly depends on appraiser only.

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    Q9. According to you in this organization is there scope for individual development

    to ensure new knowledge & skills

    TABLE 12:Table showing the scope of individual development, in ensuring the newknowledge and skills.

    Options No. Of respondents Percentage

    Yes 25 50

    No 10 20

    To Some Extent 15 30

    TOTAL 50 100

    Chart 12

    50%

    20%

    30%

    Yes

    No

    To Some Extent

    Source: Field Investigation

    Observation: The above table shows 50% of them said yes, 20% of them said no and

    30% of them said to some extent it is true.

    Inference: This shows that the appraisal system mostly encourages for individual

    development in terms of job knowledge and skills.

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    Q10. Does the Suggestions in the appraisal system, which are given by you are positively

    looked into by seniors?

    TABLE 13:Table showing opinion about the suggestions

    Options No. Of respondents Percentage

    Yes 23 46

    No 12 24

    To Some Extent 15 30

    TOTAL 50 100

    Chart 13

    46%

    24%

    30%

    Yes

    No

    To Some Extent

    Source: Field Investigation

    Observation: The above table shows 46% of them said yes, 24% of them said no and

    30% of them said to some extent it is true.

    Inference:This shows that the suggestions given by the appraisee are taken into positive

    way and encourages them to give suggestions also in the process of performance

    appraisal system

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    Q11. In your opinion present performance appraisal system is

    TABLE 14:Table showing satisfaction of the performance appraisal system in BalPharma Ltd.

    Options No. Of respondents Percentage

    Very Good 0 0

    Good 18 36

    Average 20 40

    Poor 12 24

    TOTAL 50 100

    Chart 14

    36%

    40%

    24%

    Very Good

    Good

    Average

    Poor

    Source: Field Investigation

    Observation: The above table shows 40% of them said average, 36% of them said good,

    24% of them said poor and 0% to very good.

    Inference:This shows that the employees in Bal Pharma Ltd are fairly satisfied with the

    present appraisal system.

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    MAJOR RESEARCH FINDINGS

    From the responses collected it can be inferred that the most of employees arenew to the company. Because 50% of them have only one year of experience.

    And very less number of employees having 5 years and above experience in the

    organization.

    According to the survey, performance appraisal system is used for the measure ofperformance of the employee on the job.

    From the responses collected from the survey, the rating officer for their appraisalis their head of the department.

    According to the respondents, the job being performed by them, knowledge of thejob, and efficiency of work done and communication skills have been included in

    the performance appraisal system.

    According to the responses from the respondents the appraisal system used by thecompany does not evaluate the accurate performance of the employee on the job.

    From the responses collected it can be inferred that the rating system used in theappraisal system are fairly satisfactory.

    The present appraisal system encourages improving these parameters,performance of the job, knowledge of the job, skills and efficiency of the work

    done.

    From the responses the appraisal system fairly depends on the appraiser.

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    According to the responses in Bal Pharma Ltd there is a scope for the individualdevelopment after the performance appraisal system.

    The suggestions given by the appraisee after the appraisal system are taken intopositive. And also encourages them to give suggestions

    From the responses collected it can be inferred that the performance appraisalsystem used in the organization does not evaluates the performance of the

    employee accurately, therefore the employees and executives are fairly satisfied

    with the present appraisal system.

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    RECOMMENDATIONS

    As employees feel that, job knowledge, communication skills & efficiency of thework done has effectively covered. How ever the employees feel that the training

    interventions should be more frequent.

    Communication skills are indispensable in modern day organization, soemployees should be encouraged to communicate their opinion about their

    expectation, problems & suggestions.

    A free and fair feedback to be given to the appraisee so that he/she can give therebest to the company and also allows self-development.

    There should be a system for more frequent feed back on employee performanceand appraisal process should be designed to cater for quarterly/ biannual

    performance appraisal

    Some of the employees feel that appraisal process should be more transparent.

    360 degree appraisal is a powerful developmental method and quite different totraditional manager-subordinate appraisals (which fulfill different purposes).

    Organisation may look into adopting this method bringing for more subjectively

    in the appraisal process.

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    A guide for introducing 360-degree appraisals:

    The following chart highlights the mechanism of 360-Degree:

    Choose/design a system (or system provider), i.e., research and investigateoptions (other local or same-sector companies using 360 already are a helpful

    reference point, or trade association HR group, or a specialist HR advisory body).

    When decided on a system, pilot it with a few people to make sure it does whatexpected. (It's best to establish some simple parameters or KPA's by which one

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    can make this assessment, rather than basing success on instinct or subjective

    views.)

    When satisfied with the system, launch it via a seminar or workshop, preferablyincluding role-plays and/or practical demonstration.

    Support the implementation with ongoing training, (include an overview in yourinduction training as well), a written process guide/booklet, and also publish

    process and standards on intranet.

    Establish review and monitoring responsibility.

    Ensure any 360-degree appraisal system is applied from top down, not bottomup, so everyone can see that the CEO is happy to undertake what he/she expects

    all the other staff to do. (As with anything else, if the CEO and board agree to

    undertake it first, the system will have much stronger take-up and credibility.)

    I also recommend that the company can restructure its "performance appraisal system"

    into "performance management system". I believe that to achieve performance

    orientation, the company needs to focus on Performance Management System

    rather than Performance Appraisal System. While PMS addresses all relevant and

    interrelated issues of individual motivation and processes holistically, PAS is one of

    the many sub-processes involved in a good PMS.

    To sum up, it is my belief and conviction that if the above-said recommendations are

    implemented, they would turbo charge the performance appraisal system/performance

    management system of the company.

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    ANNEXURE

    Books:

    1. " Human Resource Management" By J R

    Gordon, Boston: Allyn & Bacon Publications

    2002

    2. "Human Resource Management" By Lawrence

    S Kleiman, Atomic Dog Publishing Company,

    20053. "Human Resource Management" By John M

    Ivancevich, Tata McGraw Hill Publications

    2005

    4. "Human Resource Management" By Gary

    Dessler, Pearson Education Publications,

    2006

    5. "Human Resource Management" By Cynthia D

    Fisher, Lvle F Schoen Feldt and James B Shaw,

    Wiley Dream Tec Publications 2005

    6. "Human Resource Management" By Noe,

    Hollenbeck, Gerhardt and Wright, McGraw Hill

    Publications 2004

    7. "People Management" Edited by G Surya Prakash

    Rao, ICFAI Publications, 2002

    8. "Managing People" Business Today Survey, BT

    Publications, 2000

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    JOURNALS:

    Business Standard (Strategist) Harvard Business Review Journal of HRM Review (ICFAI publications) Business Line (Catalyst) Executive excellence (Sage Publications) Human Capital

    WEBSITES USED:

    1. www.google.com2. www.balpharma.com3. www.performance-appraisal.com

    http://www.performance-appraisal.com/http://www.balpharma.com/http://www.google.com/
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    Questionnaire

    Employee Name : (Optional)

    Department :

    Date of Joining :

    Qualification :

    Designation :

    1. How many years of experience do you have in Bal Pharma Ltd? 00 01 yr

    01 03 yrs

    03 05 yrs

    05 & Above yrs

    2. According to you in Bal Pharma Ltd, Performance Appraisal system is used

    To measure Performance

    To Identify Skills

    To Promote Individual

    To Recognize & Reward

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    3. Who is the rating officer of your performance in the appraisal system?

    Supervisor

    Manager

    Line Manager

    Head of the department

    4. Does the present Performance Appraisal System taken into account thesefollowing parameters?

    A. Job being performed by you

    Covered

    Partially Covered

    Not Covered

    B. Job Knowledge

    Covered

    Partially covered

    Not Covered

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    C. Speed of the work done

    Covered

    Partially covered

    Not Covered

    D. Communication skills

    Covered

    Partially covered

    Not Covered

    5. Do you agree that present appraisal system is accurately evaluating yourperformance?

    0% - 25%

    26% - 50%

    51% - 75%

    76% - 100%

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    6. According to your preference the present rating system is

    Very Good

    Good

    Average

    Poor

    7. How has the Appraisal System assisted in increasing following parameters?

    (Excellent - 5, Very Good - 4, Good - 3, Average 2, Poor-1)

    Parameters5 4 3 2 1

    Performance

    Efficiency

    Skills

    Knowledge

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    8. Do you feel that Performance Appraisal system is totally depends on theAppraiser?

    Yes

    No

    To Some Extent

    9. According to you in this organization is there scope for individualdevelopment to ensure new knowledge & skills

    Yes

    No

    To Some Extent

    10.Does the Suggestions in the appraisal system, which are given by you arepositively looked into by seniors?

    Yes

    No

    To Some Extent

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    11.In your opinion present performance appraisal system is

    Very Good

    Good

    Average

    Poor

    12.Any suggestions to improve the Performance Appraisal System

    _______________________________________________

    _______________________________________________

    _______________________________________________

    Thank you for giving your responses to the questions in the questionnaire. I sincerely

    assure you that your responses will be kept strictly confidential and shall only be used for

    academic purpose.

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