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

Paper Type: Free Essay Subject: Business
Wordcount: 3096 words Published: 1st Jan 2015

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Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.

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

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


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


In general the appraisal systems serve a two fold purpose

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

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

More specifically appraisals serve the following purposes.

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

Appraisal serves as a key inputfor administering a formal organisation reward and punishment system

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


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


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

Goals & Objectives

Objectives of the study includes:

To know the present system of performance appraisal.

To know the extent of effectiveness of the appraisal system

To identify and know the area for improvement system

Future Challenges

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

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

Sample of the study

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

The study covered a sample of 100 employees.

Methodology of the project

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

The details of the methodology adopted are presented below:

The Questionnaire

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

Response to Questionnaire

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


Many employees gave guarded answers to some crucial questions.

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

Response could not be collected from the total sample selected.

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

time factor.

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


Product and servicies

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

Ayurvedic products


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


Hajmola tablets

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

Hajmola Candy

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

Pudin hara

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


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

Childcare Products

Dabur Lal Tail

The largest baby massage oil in India, it has the goodness of herbs which helps in strengthening the bones of infants

Dabur Janma Ghutti

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

Women Care Products

Efarelle Comfort

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

Hair & Skin Care

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

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

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

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

Oral Care

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

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

Dabur Honey

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

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

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

Joint Ventures

Dabon International Limited -Dabur has also collaborated with Bongrain

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


Dabur has six subsidiary units. These are:

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

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

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

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

Dabur Finance Limited

Dabur has an illustrious Board of Directors who are committed to take the company onto newer levels of human endeavour in the service of mankind.



The appraisal process begins with the establishment of performance standards. These should have evolved out of job analysis and the job description discussed under human resource planning. These performance standards should also be clear and objective enough to be understood and measured. Too often, these standards are articulated in some such phrase as “afull day’s work” or “a good job”.

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

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


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

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

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

Outcome of Performance Appraisal

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

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

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

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



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

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

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

the current policy

Aligning goal

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

Here the response from the supervisor were 45.83% for the factor that it help

in aligning their goal with those of organisation.

Career Progress

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

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

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


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

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

More emphasis on training and job rotation as remedial measures.


Recommendations &


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

Remedial measure

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

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


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


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