Description
Making easy for taking ideas from these project to the new students who don't know that how to do Summer Internship Project.
PERFORMANCE APPRAISAL OF THE EMPLOYEES OF
Zydus Healthcare, Sikkim
Enrollment No. 161010900158
Under the project Guidance of
Internal Guide Mr. Tathagata Das Gupta External Guide Ms. Sabika Rai (HR Officer)
ZYDUS HEALTHCARE SIKKIM Bhagheykhola, Majhitar, Rangpo, East Sikkim
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PERFORMANCE APPRAISAL OF THE EMPLOYEES OF ZYDUS HEALTHCARE, SIKKIM
A report submitted in partial fulfillment of the requirements of 4th Semester of Bachelor of Business Administration (BBA) Program (2010-13)
Under the project guidance of
Ms. Sabika Rai (HR Officer) Faculty: Mr. Tathagata Das Gupta
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TABLE OF CONTENTS
SECTION Page No.
1. Acknowledgements....................................................1 2. Abbreviations……..…………………………….......2 3. Abstract.....................................................................3-4 4. Introduction................................................................5-6 o Objectives..........................................................7 o Limitations.........................................................8-9 5. Industry Profile...........................................................10 5.1 History...........................................................11-18 5.2 Product Profile...............................................19 5.3 Quality Policy................................................20 5.4 Location of Plant....………………..….….....21 5.5 Mission & Vision...........................................22
6. Methodology................................................................23-24 7. List of Illustrations.......................................................25-38 8. Conclusions..................................................................39-40 9. Appendix......................................................................41-44 10. Bibliography................................................................45 11. Glossary........................................................................46
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ACKNOWLEDGEMENTS
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number of people to whom I shall always remain grateful. I would like to express my gratitude to Zydus Healthcare, Sikkim for allowing me to undertake this project. I would like to take this opportunity to thank Mr. Ajit Singh (GM-HR) for providing me with an opportunity to work for Zydus Healthcare, Sikkim and also thank Ms. Sabika Rai (HR Officer) for guiding me in my project. I am also desirous of mentioning my profound indebtedness to Mr. Tathagata Das Gupta, Lecturer, ICFAI University Sikkim, for his valuable guidance, advice, precious time and support. I would be failing in my duty if I do not acknowledge my gratitude to Mr. Rishi Sir, SIP Co-ordinator who motivated me a lot in carrying out this project. Last but not the least, I would also like to thank all the respondents for giving me their precious time, relevant information and advice without which I would not be able to complete this project.
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ABBREVIATIONS
MBO: Management By Objectives PA: Performance Appraisal HR: Human Resource NDDS: Novel Drug Delivery System WHO: World Health Organization CNS: Complimentary Network Service CGMP: Current Good Manufacturing Practices API: Active Pharmaceutical Ingredient CND: Commission on Narcotic Drugs
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ABSTRACT
Under the Company guidance Ms. Sabika Rai (HR officer of Zydus Healthcare, Sikkim), I got a topic for making my Summer Internship Project and the title of my project is Performance Appraisal of employees of Zydus Healthcare, Sikkim and the Company is located in Bhagheykhola, Majhitar, Rangpo, East Sikkim. The abstract of my study of performance appraisal has been to determine whether the performance appraisal was used for employee development and whether the appraisal was emphasized as an important part of the performance appraisal process in Zydus Healthcare, Sikkim. Why am I doing My Summer Internship project on Performance Appraisal? This is because a performance appraisal form can tell more about an organization than other indicators. There are multifarious forms used by different organizations in assessing performance of their employees. In the eyes of Human Resource Management practitioners, there can be standard form for performance appraisal. „Job Description?, „Performance Level?, „Performance Factors?, „Appraiser?s Additional Comments?, „Appraisees? Feedback? are usual elements incorporated into such a standard form. Rating errors easily emerge among these elements in a performance appraisal form.
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Just realizing these errors cannot ensure an effective performance appraisal. A scientific and methodical approach, viz., „Grid Approach? can generate an error-free performance appraisal and so forth meet the mission of Performance Management. In an action learning program, one proceeds with research on the Performance Management System of an organization. One identifies different rating errors committed by the appraisers therein. A further study on rating errors brings up programmed knowledge of rating errors. Then, one?s questioning insight leads to an exploration of any possible remedy. Eventually, one finds the „Grid Approach? to be an effective counter-measure against some rating errors.
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INTRODUCTION
Performance Appraisal (PA) is a systematic evaluation of present potential capabilities of personnel and employees by their superiors, superior?s superior or a professional from outside. It is a process of estimating or judging the value, excellent qualities or status of a person or thing. It is a process of collecting, analyzing, and evaluating data relative to job behaviour and results of individuals. The appraisal system is organized on the principle of goals and MBO. Management decisions on performance utilize several integrated inputs: goals and plans, job evaluation, performance evaluation, and individual history. It connotes a two-dimensional concept - at one end of the continuum lies the goals set by the authority, and at the other end, the performance achieved by the individual or any given group. PA can be either formal or informal. Usage of former systems schedules regular sessions to discuss an employee?s performance. Informal appraisals are unplanned, often just chance statements made in passing about an employee?s performance. Most organizations use a formal appraisal system. Some organizations use more than one appraisal system for different types of employees or for different appraisal purposes. Organizations need to measure employee performance to determine whether acceptable standards of performance are being
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maintained. The six primary criteria on which the value of performance may be assessed are: quality, quantity, timeliness, cost effectiveness, need for supervision, and interpersonal impact. If appraisals indicate that employees are not performing at acceptable levels, steps can be taken to simplify jobs, train, and motivate workers, or dismiss them, depending upon the reasons for poor performance. The results of appraisal are normally used to: (1) Estimate the overall effectiveness of employees in performing their jobs, (2) Identify strengths and weaknesses in job knowledge and skills, (3)Determine whether a subordinate?s responsibilities can be expanded, (4) Identify future training and development needs, (5) Review progress toward goals and objectives, (6) Determine readiness for promotion, and (7) Motivate and guide growth and development.
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OBJECTIVES
1. To study the performance appraisal of Zydus Heathcare, Sikkim. 2. To study the pitfalls in performance appraisal of Zydus Healthcare, Sikkim. 3. To understand why performance appraisal is important in the company. 4. To study the potential benefits and complications of performance appraisal in the company. 5. To understand the reasons and frequency of performance appraisals conducted in Zydus Healthcare, Sikkim. 6. To understand the employee reactions toward performance appraisal in Zydus Healthcare, Sikkim.
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LIMITATIONS OF THE STUDY
Every study conducted may have certain shortcomings and unfortunately ours is also a similar case. A few errors have crept in despite our best efforts to avoid them but it is expected that still our study and findings are very much relevant. 1. To get contacts of General Manager (HR) for interviews was difficult. 2. Getting the views and opinions of the interviewee (HR Manager) was a difficult task. 3. The other limitation was that of time. Since there are 13 different departments in Zydus, making manpower level calculations and implementing the “manpower plans” in each department proved to be a tedious task in such a short period of time. 4. Along with these, there was an added hindrance of “safety protocols” due to which I was not allowed to go into the production area which prevented me from direct interaction with the employees. 5. The methodology used for data collection was insufficient. The use of only questionnaire made it hard to go into greater depth in the analysis of responses. There was also the possibility of receiving
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responses through interviews that could have brought in more objectivity into the data. 6. The time duration for executing the research study is just 6 weeks, so it is difficult to have a large sample size. Hence the research has concentrated on a smaller sample (size of 30) but is based on an indepth study of the organization as well as individuals. 7. The differences in perception of the employees can be a major constraint. Hence, findings due to an evaluation study have its limitations.
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HISTORY OF ZYDUS HEALTHCARE
Zydus Cadila is a global healthcare provider and one of the top five pharma companies in India. The company was founded by late Mr. Ramanbhai B. Patel in 1952 and went on to become the second largest pharma company in the early 1990?s. The name Zydus was chosen to reflect the company?s ethos. Zydus, a phonetically powerful word, combines the value of Greco-Roman God Zeus and dawn of new era. Zydus like Zeus symbolizes the company?s aspiration to contribute to the welfare of the people and social concerns. With dedicated services, ultra modern manufacturing processes and quality products, Zydus Healthcare is committed to make healthier place to live in. In 1995, the group restructured its operations and now operates as Cadila Healthcare Ltd., under the aegis of the Zydus group. The company spearheaded by Mr. Pankaj R. Patel, Chairman and Managing Director posted a turnover of over Rs. 2300 corers in 2007-08. The group has been listed as one of the „Best under a Billion” company from amongst 200 companies in Asia by Forbes. Proven expertise in manufacturing and marketing different dosage forms such as solid dosage forms, injectables, metered dose inhalers, dry powder inhalers, transdermal patches, suppositories and oncology formulations. Wide therapy coverage through three multitherapy divisions and eleven specialty divisions – Zydus Cadila, Zydus Alidac, German Remedies, Zydus Medica, Zydus CND, Zydus Biogen, Zydus Healthcare Sikkim, Zydus Neurosciences, Evona, Respicare, Aldac Corza, Alidac fortiza, Zydus Nutriva, Zydus Synovia and Liva Healthcare Limited. The divisions are spearheaded by some of the stalwarts in the field of Parma marketing.
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Dedicated field force of 3300 reaches out to super specialists, specialists, surgeons, physicians and the rural markets. The group is a leader in cardiovascular, gastrointestinal and women?s healthcare segments. It has strong presence in the respiratory, pain management, Complimentary Network Service (CNS), anti-infective, oncology, neurosciences, dermatology and nephrology segments. Leading the way through new product introductions, the group was the first to launch nucoxia (Etoricoxib), Nupatch (Diclofenac Patch), pantodac (Pantoprazole), Mifegest (Mifepristone), Penegra (Sildenafil Citrate), Providac Techsules, Betaferon, Fludara, Slimona (Rimonabant) and Novolizer in India. The group has several brands that feature amongst the top 300 Pharmaceutical brands in India. The group has a globally complaint manufacturing infrastructure comprising eight state-of-art facilities which support product launches not just in India but also in the regulated markets of U.S., Europe, Latin America. Three of the group?s facilities including formulation manufacturing plant at Moraiya, and API plants at Ankleshwar and Dabhasa near Vadodara are approved by the USFDA. More than 500 professionals spearhead the group?s research programme. Over 230 scientists are working on new molecular entity research at the Zydus Research Centre. The group has five INDs in various stages of clinical trials and two more INDs are in preclinical evaluation. Zydus Cadila is a partner of choice for several global Parma majors such as Boehringer Ingelheim, Schering AG, Madaus AG, Nycomed, Hospira, Zambon of Italy, Bio Sidus of Argentina, Mallinckrodt of USA, to name a few. One of the most reputed Parma companies globally, Zydus Cadila aims to be a leading global healthcare provider with a robust product pipeline and sales of over $1 billion by 2010. It plans to achieve sales of over $3 billion by 2015 and be a global research-driven company by 2010.
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With three multi-therapy divisions and eight specialty divisions Zydus Cadila is one of the leading players in the Indian healthcare industry. It is the leading player in the cardiovascular, gastrointestinal and women?s healthcare segments. It has been able to maintain overall position and market share through faster growing chronic/lifestyle segments. With several new product introductions and pillar brands such as Aten, Ocid, Deriphyllin, Pantodac, Atorva, Nucoxia, Mifegest to name a few, Zydus Cadila is considered a tour-de-force in therapy management and brand management. The group has several inlicensing alliances with global multinationals such as Schering AG, Boehringer Ingelheim, Viatris, etc.
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AWARDS AND ACCOLADES
YEAR 2005 AWARDS & ACHIEVEMENTS
Zydus Cadila receives approval from the USFDA to market the antihypertensive drug, Atenolol, and an anti-infective drug, Clindamycin on 31 Jan and 1 Feb. Zydus Cadila unveils „Pitavastatin? to control cholesterol on February 21, 2005
Cadila ties up with Tyco unit to sell generic drugs in US – India?s first indigenously manufactured
Launches
NuPatch
Diclofenac transdermal patch for pain relief.
Cadila Healthcare & Mayne signs agreement to set up JVC to manufacture specialty oncology products Cadila Healthcare – German Remedies launches Fludara Oral for Lymphocytic Leukaemia
Zydus Cadila receives tentative approval for Divalproex Sodium DR Tablets from USFDA
Cadila Healthcare receives approval for Promethazine Tablets from
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USDFA
Cadila Healthcare enters into JV with BSVL
2006 2007
Zydus Cadila forges alliance with French firm Zydus Cadila receives USFDA approval for Simvastatin Tablets Cadila healthcare Ltd on April 19, 2007 has announced the acquisition of Nippon Universal Pharmaceutical Ltd.
Cadila Healthcare Ltd has announced that its second overseas acquisition this year, the company signed an agreement to acquire 100% stake in Quimica e Farmaceutica Nikkho do Brasil Ltd.
2008
Zydus Cadila to collaborate with US-based prolong pharmaceuticals for drug discovery. This deal marks Zydus?s foray into the area of novel improved biologicals. Zydus Cadila launches new drug „Nudoxa is a novel drug delivery system (NDDS) product used in the chemotherapy treatment of various types of cancers.
Zydus Cadila to market four products in the US after USFDA approval.
The Indian Parma majors has also received a tentative approval to market escitalopram oxalate Tablets, 5, 10 and 20 mg, Losartan potassium and hydrochlorthiazide tablets 50mg/12.5mg and
100mg/25mg and anastraole tablets 1mg, used for the treatment of
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depression and anxiety.
Zydus Cadila acquires Spanish drug firm laboratories combix for an undisclosed amount, making its entry into the fifth largest pharmaceutical market in the world.
Zydus Cadila receives WHO prequalification accreditation for Rabies vaccine, Lyssavac.
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ZYDUS HEALTHCARE SIKKIM
Zydus one was one of the first pharmaceutical companies to be established in Sikkim. It started its operations in July 2006 with a meager strength of 50 personnel. Today it has strength of over 600 people and turnover of over 900 crores. It was a challenging task to set up a new state-of-art formulation plant in just seven months but Zydus involved in Sikkim Plant did just that. On the 7th of March 2006, Zydus Healthcare Plant was inaugurated at Rangpo in Sikkim. The plant spread over an area of 7500 sq.mt. The plant manufactures tablets and capsules for the domestic market. The Hon?ble Minister of Industries, Government of Sikkim, Mr. Ram Bahadur Subba inaugurated the plant which is first to be commissioned in
HR PHILOSOPHY:
We build people to build our business.
COMPANY’S CORE VALUES:
C? COMPETENCY BUILDING. A? ADAPT TO NEW ENVIRONMENT. R? RESPECT HUMAN VALUES E? EMPOWER, ENRICH AND EXCEL
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MANUFACTURING VISION:
To build capacity and capability to serve chosen markets at globally competitive and quality in time, all the time.
ENVIRONMENT:
The company promotes a work culture that encourages active involvement of every member.
SLIM GOALS:
To institutionalize integrated lean manufacturing across to achieve significant cost saving across all plants at Zydus. The group has been listed as one of the “Best under a Billion “company from amongst 200 companies in Asia by Forbes. The company has proven expertise in manufacturing and marketing different dosage forms such as: Solid dosage form, Injectable, Metered dose inhalers, Dry powder inhalers, Transdermal patches, Suppositories, Oncology formulation etc.
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PRODUCT PROFILE
Zydus Healthcare is a leader in cardiovascular, gastrointestinal and women?s healthcare segments. It has got strong presence in the respiratory, pain management, CNS, anti-infectives, oncology,
neuroscience, dermatology segments also. Leading the way through new product introductions, it was the first to launch many pharma products which are as follows. i. ii. iii. iv. v. vi. vii. Nucoxia (Etoricoxib) Nupatch (Diclofenac) Pantodac (pantoprazole) Mifegest (mifepristone) Penegra (Sildenafil Citrate) Providac Techsules Betaferon, Fludara
The group has a globally competent manufacturing infrastructure comprising eight state-of-the-art facilities which support product launches not just in India but also in the regulated markets of USA, Europe, and Latin America.
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QUALITY POLICY OF ZYDUS HEALTHCARE
Zydus Healthcare is committed to develop, manufacture and distribute products that meet the highest standards of quality at both national and international levels. Zydus Healthcare compiles with current good manufacturing practices (CGMP) in all its products and services. Zydus Healthcare has an ongoing endeavor to improve upon the quality thereby adding value to the products and customer satisfaction. Zydus Healthcare believes that quality is achieved through conscious team efforts of all the personnel, individually and collectively. Zydus Healthcare is “Dedicated to Life” and quality is a way of life at Zydus Healthcare.
Products manufactured
The various manufacturing operations at Sikkim Plant include: Tablets, Hard Gelatin Capsules & Hormones.
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LOCATION OF ZYDUS PLANT
ZYDUS HEALTHCARE SIKKIM
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MISSION:
“We are dedicated to life, in all its dimensions our world is shaped by a passion, for innovations, commitment to partners and concern for, people in an effort to create healthier communities globally.”
VISION:
“Zydus shall be a leading global healthcare provider; with a robust product pipeline and sales of over $1 billion by 2010; we shall achieve sales of over $3 billion by 2015 and be a research based pharmaceutical company by 2020.”
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METHODOLOGY
Sampling An integral component of a research design is the sampling plan. Specifically, it addresses three questions: 1. Whom to survey (The Sample Unit) 2. How many to Survey (The Sample Size) & 3. How to select them (The Sampling Procedure) Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort. Methods of Sampling Probability Sampling is also known as random sampling or chance sampling. Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of the persons making the study, that is, the sampling operation is controlled objectively so that the items will be chosen strictly at random. Non Probability Sampling is also known as deliberate sampling, purposeful or judgmental sampling. Non-Probability Sampling is that
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which does not provide every individual in the organization with a known chance of being included in the sample. Data collection method Collection of data is the first step in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be secondary or primary. Collection of Primary Data during the course of the study or research can be through observations or through direct communication with respondents in one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. Secondary data means data that is already available, i.e., it refers to data, which has already been collected by someone else. When secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc.
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DATA ANALYSIS
1. Have you worked in any other company prior to joining this organization?
26%
YES NO 74%
Analysis From the graph it can be seen that majority of employees (i.e. 74%) have some amount of prior work experience before joining Zydus Plant. Most of them are coming from other company and other employees (i.e. 26%) have no prior work experience except certificate holding.
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2. How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options)
0%
35%
34%
SIMPLE COMPLICATED OBJECTIVE SUBJECTIVE
7% 4%
20%
EFFICIENT INEFFICIENT
Analysis From the above chart it can be seen that, a majority of the sample respondents have found the Appraisal Model to be efficient and simple while only some have found it complicated. The Appraisal Model has been thoroughly dealt with during the training; so the employees know exactly what is expected of them.
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3. In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the Organization?
13%
YES NO 87%
Analysis About 87% of the respondents has told that the Performance Appraisal System does give a true and fair view of their contribution to the Organization. This does include employees who think that their rating does not always turn up to be correct as per their opinion. The group of respondents who have replied in the negative also include candidates who say that the appraisal does not turn out to be right most of the times but do show a fair view sometimes.
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4. How often does your Performance assessment match your expectations?
10% 10% NEVER RARELY 20% 37% SOMETIMES OFTEN EVERYTIME
23%
Analysis This question was purposely put into the questionnaire to validate the answers for the previous question. The breakup of the data clearly shows that according to 10% of the entire sample, the appraisals have never shown a fair view of their performance. If this can be combined with those who are of the opinion that their appraisal rarely matches up to their expectations, this figure goes up to 20% of the sample. The analysis further shows that 80% are satisfied with the present system even though this includes satisfaction in varying degrees of expectations like sometimes, often or every time. This does show that the satisfaction level of the employees in this system is quite high and that there is a general feeling of likeability among the respondents.
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5. According to you, how often should the Performance Review take place?
0% 29% 17% ONCE IN A WEEK 20% ONCE A MONTH EVERY 3 MONTHS EVERY 6 MONTHS 34% ONCE A YEAR
Analysis Performance appraisal review is a constant process and lesser the frequency between the appraisals, the better. The majority want (i.e. 34%) the frequency of the appraisal to be every 6 months. The employees say that the longer the frequency between appraisals, the more the chances of the appraisal not matching up to their expectations because many performances get overlooked. If the appraisal is done twice in a year, the employee has a chance to find out the gaps in his / her performance which will help them to improve more on their performance and thereby eliminate any inefficiency in the appraisal system.
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6. What is your satisfaction level with the current Appraisal System?
0% 19%
0%
44%
VERY LOW LOW AVERAGE
37%
HIGH VERY HIGH
Analysis On an average, the satisfaction level of the Appraisal System is high as can be seen from the graph. This is a good sign as increased level of satisfaction is the main emphasis of any appraisal system. The chart shows that 44% have rated the Appraisal System as average and 56% have rated the Appraisal System as high and very high. The high satisfaction level in the System is due to various reasons like monetary or non-monetary incentives and timely promotions. The satisfaction level also brings to light the efficiency of the management in devising an acceptable Appraisal System.
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7. Which are the areas that should be improved upon?
3%
14% 30% STANDARDS MONETARY INCENTIVES FREQUENCY OF APPRAISAL 53% APPRAISAL SYSTEM
Analysis This question breaks up the different phases of the appraisal system and tries to come to a conclusion as to the areas of improvement in the process of evaluation. 53% of the respondents say that there should be a change on the aspect of monetary incentives. This does not refer to an increase in the monetary incentives but a more reasonable incentive structure that will properly reward increased and efficient performance. Another aspect is that standards of performance (i.e., benchmarks) should be improved according to 30% of the respondents. 14% have stated that there should be change in the appraisal system. Only 3% stated that there should be improvement in frequency of appraisal.
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8. How important do you think is Performance Appraisal to your Performance?
0% 3% 27% 27% NOT IMPORTANT LESS IMPORTANT IMPORTANT VERY IMPORTANT 43% MOST IMPORTANT
Analysis This question was put in to find out and analyze the importance of the Appraisal System to measure the productivity of the employees. The data clearly shows that the recognition of the employees? performance does have a direct impact on his / her efficiency. A vast majority of the respondents (i.e., 70% which includes ratings of very important and most important) affirm that their performance is directly influenced by recognitions of their performance by the Appraisal System. None of the respondents has stated that the Appraisal System has no effect on his/her productivity. This points to the fact that the Appraisal System goes a long way in determining the productivity of the employees in the Organization. Therefore it is very important for any Organization to devise its PAS carefully.
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9. Do you feel comfortable discussing any difference of opinion about your Performance Rating with your appraiser?
23%
YES NO 77%
Analysis From the above chart it shows that, a majority of the respondents (i.e. 77%) feel comfortable discussing any difference of opinion about their Performance Rating with their appraiser. 23% of the respondents did not feel free to express their displeasure, if any, to the rating given to them or it can be due to decreased comfort levels with the appraiser.
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10. Do you think you should be given an opportunity to rate your own performance?
10%
YES NO 90%
Analysis From chart it can be seen that majority of respondents (i.e. 90%) want self-appraisal to be a method of conducting the appraisals. 10% of the respondents does not agree with self-appraisal and they think it is the work of HOD for observing the performance of the employees and appraise them.
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11.Is there a proper complaint channel for the employees who are dissatisfied with the performance appraisal system?
46% 54% YES NO
Analysis According to 54% of respondents, there is no proper complaint channel existing in the organization for the employees who are dissatisfied with the performance appraisal system. However, 46% of the respondents are of the opinion that there exists a proper complaint channel.
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12.Does the appraisal system provide a good communication between the top-management plans and business goals to staff below?
34%
YES 66% NO
Analysis From the above chart it can be seen that the majority of the respondents (i.e. 66%) think performance appraisal helps in communicating the top management plans and business goals to staff at lower level. 34% of the respondents do not agree with this.
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13. Were you given training in the areas you were identified weak in your appraisal?
36%
YES 64% NO
Analysis From the above chart it can be seen that the majority of the respondents (i.e. 64%) agree that they were given training in the areas they were weak in the appraisal. 36% of the respondents think they were not given proper training in their areas of weakness.
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CONCLUSIONS
? Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. ? There should be a review of job analysis, job design and work environment based on the PA. ? It should bring more clarity to the mission and vision of the organization. ? It should provide more empowerment to the employees. ? The employees who have excellent performance should be used as a mentor for other employees who would motivate others to perform better. ? Employees should be given feedback regarding their appraisal. This will help them to improve on their weak areas. ? Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better. ? The frequency of training program for the appraiser should be increased and these sessions should be made interactive. ? More transparency should be brought about in the appraisal system.
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? The awareness sessions for the employees/appraisees should be made more interactive and the views and opinions of the appraisees regarding appraisal should be given due
consideration. ? Assistance should be sought from specialists for framing a proper appraisal system that suits the organization climate. Constant monitoring of the appraisal system should be done through discussions, suggestions and interactions. ? The company can make use of modern appraisal techniques like 360o appraisal, assessment centers and others which are more effective. ? The appraisal system should cover all employees in the organization – both white-collar and blue-collar employees. ? The company should recognize the good performers, i.e., employees who have accomplished the targets for the year can be given promotion or salary hike commensurate with the performance. ? Information regarding the performance of the employees should be kept in proper manner. ? Some of the PA should be conducted by the top management so that they can understand the behaviour of employees better and also find out the loopholes in the existing PA system.
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QUESTIONNAIRE
1) Have you worked in any other Company prior to joining this Organization? a) Yes b) No
2) How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options) a) Simple f) Inefficient 3) In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the Organization? a) Yes b) No b) Complicated c) Objective d) Subjective e) Efficient
4) How often does your Performance assessment match your expectations? a) Never b) Rarely c) Sometimes d) Often e) Every time
5) According to you, how often should the Performance Review take place? a) Once in a week Months b) Once a month c) Every 3 months d) Every 6
e) Once a Year
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6) What is your Satisfaction level with the current Appraisal System? a) Very Low b) Low c) Average d) High e) Very High
7) Which are the areas that should be improved upon? a) Standards b) Monetary Incentives c) Frequency of Appraisal
d) Appraisal system 8) How important do you think is Performance Appraisal to your Performance? a) Not Important d) Very important b) Less Important e) Most Important c) Important
9) Do you feel comfortable discussing any difference of opinion about your Performance rating with your appraiser? a) Yes b) No
10) Do you think you should be given an opportunity to rate your own performance? a) Yes b) No
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11) Is there a proper complaint channel for the employees who are dissatisfied with the performance appraisal system? a) Yes b) No
12) Does the appraisal system provide a good communication between the top-management plans and business goals to staff below? a) Yes b) No
13) Were you given training in the areas you were identified weak in your appraisal? a) Yes b) No
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BIBLIOGRAPHY
1. www.managementparadise.com 2. http://business.mapsofindia.com/sectors/manufacturing/cadilahealthcare.html 3. Robbins P. Stephen and Decenzo A. David, “Human Resource Management”, Wiley India Pvt. Ltd., 10th edition, 2011. 4. Robbins P. Stephen, Sanghi Seema and Judge A. Timothy, “Organizational Behaviour”, Pearson Education, 13th edition, 2009. 5. Aswathappa K, “Human Resource Management”, Tata McGraw Hill, 6th edition, 2010. 6. Agarwala Tanuja, “Strategic Human Resource Management”, Oxford University Press, 1st edition, 2007. 7. Sanghi Seema, “The Handbook of Competency Mapping: Understanding, Designing and Implementing Competency Models in Organizations”, Response Books, 2nd edition, 2007.
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GLOSSARY
Performance Appraisal: An ongoing process of evaluating and managing both the behavior and outcomes of employees in the workplace. Cost Effectiveness Analysis: CEA is a form of economic analysis that compares the relative costs and outcomes (effects) of two or more courses of action. Job Analysis: The systematic collection, evaluation and organization of information related to jobs. Job Design: The process of structuring work and designating the specific activities at individual or group levels. Appraisee: An employee who is being appraised by his or her manager in
an appraisal interview.
360-degree appraisal: Appraisal by supervisors, peers, subordinates, customers and employees themselves. White Collar Job: It typically involves clerical, managerial or sales job. Blue Collar Job: It involves manual labor. Job Description: A written statement that explains the duties, working conditions, and other aspects of a specified job. Job Evaluation: The systematic process of analyzing jobs to determine the relative worth of a job within the organization.
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doc_380742261.docx
Making easy for taking ideas from these project to the new students who don't know that how to do Summer Internship Project.
PERFORMANCE APPRAISAL OF THE EMPLOYEES OF
Zydus Healthcare, Sikkim
Enrollment No. 161010900158
Under the project Guidance of
Internal Guide Mr. Tathagata Das Gupta External Guide Ms. Sabika Rai (HR Officer)
ZYDUS HEALTHCARE SIKKIM Bhagheykhola, Majhitar, Rangpo, East Sikkim
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PERFORMANCE APPRAISAL OF THE EMPLOYEES OF ZYDUS HEALTHCARE, SIKKIM
A report submitted in partial fulfillment of the requirements of 4th Semester of Bachelor of Business Administration (BBA) Program (2010-13)
Under the project guidance of
Ms. Sabika Rai (HR Officer) Faculty: Mr. Tathagata Das Gupta
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TABLE OF CONTENTS
SECTION Page No.
1. Acknowledgements....................................................1 2. Abbreviations……..…………………………….......2 3. Abstract.....................................................................3-4 4. Introduction................................................................5-6 o Objectives..........................................................7 o Limitations.........................................................8-9 5. Industry Profile...........................................................10 5.1 History...........................................................11-18 5.2 Product Profile...............................................19 5.3 Quality Policy................................................20 5.4 Location of Plant....………………..….….....21 5.5 Mission & Vision...........................................22
6. Methodology................................................................23-24 7. List of Illustrations.......................................................25-38 8. Conclusions..................................................................39-40 9. Appendix......................................................................41-44 10. Bibliography................................................................45 11. Glossary........................................................................46
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ACKNOWLEDGEMENTS
Preparing a project of this nature is an arduous task and I was fortunate enough to get support from a large number of people to whom I shall always remain grateful. I would like to express my gratitude to Zydus Healthcare, Sikkim for allowing me to undertake this project. I would like to take this opportunity to thank Mr. Ajit Singh (GM-HR) for providing me with an opportunity to work for Zydus Healthcare, Sikkim and also thank Ms. Sabika Rai (HR Officer) for guiding me in my project. I am also desirous of mentioning my profound indebtedness to Mr. Tathagata Das Gupta, Lecturer, ICFAI University Sikkim, for his valuable guidance, advice, precious time and support. I would be failing in my duty if I do not acknowledge my gratitude to Mr. Rishi Sir, SIP Co-ordinator who motivated me a lot in carrying out this project. Last but not the least, I would also like to thank all the respondents for giving me their precious time, relevant information and advice without which I would not be able to complete this project.
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ABBREVIATIONS
MBO: Management By Objectives PA: Performance Appraisal HR: Human Resource NDDS: Novel Drug Delivery System WHO: World Health Organization CNS: Complimentary Network Service CGMP: Current Good Manufacturing Practices API: Active Pharmaceutical Ingredient CND: Commission on Narcotic Drugs
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ABSTRACT
Under the Company guidance Ms. Sabika Rai (HR officer of Zydus Healthcare, Sikkim), I got a topic for making my Summer Internship Project and the title of my project is Performance Appraisal of employees of Zydus Healthcare, Sikkim and the Company is located in Bhagheykhola, Majhitar, Rangpo, East Sikkim. The abstract of my study of performance appraisal has been to determine whether the performance appraisal was used for employee development and whether the appraisal was emphasized as an important part of the performance appraisal process in Zydus Healthcare, Sikkim. Why am I doing My Summer Internship project on Performance Appraisal? This is because a performance appraisal form can tell more about an organization than other indicators. There are multifarious forms used by different organizations in assessing performance of their employees. In the eyes of Human Resource Management practitioners, there can be standard form for performance appraisal. „Job Description?, „Performance Level?, „Performance Factors?, „Appraiser?s Additional Comments?, „Appraisees? Feedback? are usual elements incorporated into such a standard form. Rating errors easily emerge among these elements in a performance appraisal form.
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Just realizing these errors cannot ensure an effective performance appraisal. A scientific and methodical approach, viz., „Grid Approach? can generate an error-free performance appraisal and so forth meet the mission of Performance Management. In an action learning program, one proceeds with research on the Performance Management System of an organization. One identifies different rating errors committed by the appraisers therein. A further study on rating errors brings up programmed knowledge of rating errors. Then, one?s questioning insight leads to an exploration of any possible remedy. Eventually, one finds the „Grid Approach? to be an effective counter-measure against some rating errors.
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INTRODUCTION
Performance Appraisal (PA) is a systematic evaluation of present potential capabilities of personnel and employees by their superiors, superior?s superior or a professional from outside. It is a process of estimating or judging the value, excellent qualities or status of a person or thing. It is a process of collecting, analyzing, and evaluating data relative to job behaviour and results of individuals. The appraisal system is organized on the principle of goals and MBO. Management decisions on performance utilize several integrated inputs: goals and plans, job evaluation, performance evaluation, and individual history. It connotes a two-dimensional concept - at one end of the continuum lies the goals set by the authority, and at the other end, the performance achieved by the individual or any given group. PA can be either formal or informal. Usage of former systems schedules regular sessions to discuss an employee?s performance. Informal appraisals are unplanned, often just chance statements made in passing about an employee?s performance. Most organizations use a formal appraisal system. Some organizations use more than one appraisal system for different types of employees or for different appraisal purposes. Organizations need to measure employee performance to determine whether acceptable standards of performance are being
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maintained. The six primary criteria on which the value of performance may be assessed are: quality, quantity, timeliness, cost effectiveness, need for supervision, and interpersonal impact. If appraisals indicate that employees are not performing at acceptable levels, steps can be taken to simplify jobs, train, and motivate workers, or dismiss them, depending upon the reasons for poor performance. The results of appraisal are normally used to: (1) Estimate the overall effectiveness of employees in performing their jobs, (2) Identify strengths and weaknesses in job knowledge and skills, (3)Determine whether a subordinate?s responsibilities can be expanded, (4) Identify future training and development needs, (5) Review progress toward goals and objectives, (6) Determine readiness for promotion, and (7) Motivate and guide growth and development.
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OBJECTIVES
1. To study the performance appraisal of Zydus Heathcare, Sikkim. 2. To study the pitfalls in performance appraisal of Zydus Healthcare, Sikkim. 3. To understand why performance appraisal is important in the company. 4. To study the potential benefits and complications of performance appraisal in the company. 5. To understand the reasons and frequency of performance appraisals conducted in Zydus Healthcare, Sikkim. 6. To understand the employee reactions toward performance appraisal in Zydus Healthcare, Sikkim.
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LIMITATIONS OF THE STUDY
Every study conducted may have certain shortcomings and unfortunately ours is also a similar case. A few errors have crept in despite our best efforts to avoid them but it is expected that still our study and findings are very much relevant. 1. To get contacts of General Manager (HR) for interviews was difficult. 2. Getting the views and opinions of the interviewee (HR Manager) was a difficult task. 3. The other limitation was that of time. Since there are 13 different departments in Zydus, making manpower level calculations and implementing the “manpower plans” in each department proved to be a tedious task in such a short period of time. 4. Along with these, there was an added hindrance of “safety protocols” due to which I was not allowed to go into the production area which prevented me from direct interaction with the employees. 5. The methodology used for data collection was insufficient. The use of only questionnaire made it hard to go into greater depth in the analysis of responses. There was also the possibility of receiving
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responses through interviews that could have brought in more objectivity into the data. 6. The time duration for executing the research study is just 6 weeks, so it is difficult to have a large sample size. Hence the research has concentrated on a smaller sample (size of 30) but is based on an indepth study of the organization as well as individuals. 7. The differences in perception of the employees can be a major constraint. Hence, findings due to an evaluation study have its limitations.
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HISTORY OF ZYDUS HEALTHCARE
Zydus Cadila is a global healthcare provider and one of the top five pharma companies in India. The company was founded by late Mr. Ramanbhai B. Patel in 1952 and went on to become the second largest pharma company in the early 1990?s. The name Zydus was chosen to reflect the company?s ethos. Zydus, a phonetically powerful word, combines the value of Greco-Roman God Zeus and dawn of new era. Zydus like Zeus symbolizes the company?s aspiration to contribute to the welfare of the people and social concerns. With dedicated services, ultra modern manufacturing processes and quality products, Zydus Healthcare is committed to make healthier place to live in. In 1995, the group restructured its operations and now operates as Cadila Healthcare Ltd., under the aegis of the Zydus group. The company spearheaded by Mr. Pankaj R. Patel, Chairman and Managing Director posted a turnover of over Rs. 2300 corers in 2007-08. The group has been listed as one of the „Best under a Billion” company from amongst 200 companies in Asia by Forbes. Proven expertise in manufacturing and marketing different dosage forms such as solid dosage forms, injectables, metered dose inhalers, dry powder inhalers, transdermal patches, suppositories and oncology formulations. Wide therapy coverage through three multitherapy divisions and eleven specialty divisions – Zydus Cadila, Zydus Alidac, German Remedies, Zydus Medica, Zydus CND, Zydus Biogen, Zydus Healthcare Sikkim, Zydus Neurosciences, Evona, Respicare, Aldac Corza, Alidac fortiza, Zydus Nutriva, Zydus Synovia and Liva Healthcare Limited. The divisions are spearheaded by some of the stalwarts in the field of Parma marketing.
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Dedicated field force of 3300 reaches out to super specialists, specialists, surgeons, physicians and the rural markets. The group is a leader in cardiovascular, gastrointestinal and women?s healthcare segments. It has strong presence in the respiratory, pain management, Complimentary Network Service (CNS), anti-infective, oncology, neurosciences, dermatology and nephrology segments. Leading the way through new product introductions, the group was the first to launch nucoxia (Etoricoxib), Nupatch (Diclofenac Patch), pantodac (Pantoprazole), Mifegest (Mifepristone), Penegra (Sildenafil Citrate), Providac Techsules, Betaferon, Fludara, Slimona (Rimonabant) and Novolizer in India. The group has several brands that feature amongst the top 300 Pharmaceutical brands in India. The group has a globally complaint manufacturing infrastructure comprising eight state-of-art facilities which support product launches not just in India but also in the regulated markets of U.S., Europe, Latin America. Three of the group?s facilities including formulation manufacturing plant at Moraiya, and API plants at Ankleshwar and Dabhasa near Vadodara are approved by the USFDA. More than 500 professionals spearhead the group?s research programme. Over 230 scientists are working on new molecular entity research at the Zydus Research Centre. The group has five INDs in various stages of clinical trials and two more INDs are in preclinical evaluation. Zydus Cadila is a partner of choice for several global Parma majors such as Boehringer Ingelheim, Schering AG, Madaus AG, Nycomed, Hospira, Zambon of Italy, Bio Sidus of Argentina, Mallinckrodt of USA, to name a few. One of the most reputed Parma companies globally, Zydus Cadila aims to be a leading global healthcare provider with a robust product pipeline and sales of over $1 billion by 2010. It plans to achieve sales of over $3 billion by 2015 and be a global research-driven company by 2010.
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With three multi-therapy divisions and eight specialty divisions Zydus Cadila is one of the leading players in the Indian healthcare industry. It is the leading player in the cardiovascular, gastrointestinal and women?s healthcare segments. It has been able to maintain overall position and market share through faster growing chronic/lifestyle segments. With several new product introductions and pillar brands such as Aten, Ocid, Deriphyllin, Pantodac, Atorva, Nucoxia, Mifegest to name a few, Zydus Cadila is considered a tour-de-force in therapy management and brand management. The group has several inlicensing alliances with global multinationals such as Schering AG, Boehringer Ingelheim, Viatris, etc.
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AWARDS AND ACCOLADES
YEAR 2005 AWARDS & ACHIEVEMENTS
Zydus Cadila receives approval from the USFDA to market the antihypertensive drug, Atenolol, and an anti-infective drug, Clindamycin on 31 Jan and 1 Feb. Zydus Cadila unveils „Pitavastatin? to control cholesterol on February 21, 2005
Cadila ties up with Tyco unit to sell generic drugs in US – India?s first indigenously manufactured
Launches
NuPatch
Diclofenac transdermal patch for pain relief.
Cadila Healthcare & Mayne signs agreement to set up JVC to manufacture specialty oncology products Cadila Healthcare – German Remedies launches Fludara Oral for Lymphocytic Leukaemia
Zydus Cadila receives tentative approval for Divalproex Sodium DR Tablets from USFDA
Cadila Healthcare receives approval for Promethazine Tablets from
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USDFA
Cadila Healthcare enters into JV with BSVL
2006 2007
Zydus Cadila forges alliance with French firm Zydus Cadila receives USFDA approval for Simvastatin Tablets Cadila healthcare Ltd on April 19, 2007 has announced the acquisition of Nippon Universal Pharmaceutical Ltd.
Cadila Healthcare Ltd has announced that its second overseas acquisition this year, the company signed an agreement to acquire 100% stake in Quimica e Farmaceutica Nikkho do Brasil Ltd.
2008
Zydus Cadila to collaborate with US-based prolong pharmaceuticals for drug discovery. This deal marks Zydus?s foray into the area of novel improved biologicals. Zydus Cadila launches new drug „Nudoxa is a novel drug delivery system (NDDS) product used in the chemotherapy treatment of various types of cancers.
Zydus Cadila to market four products in the US after USFDA approval.
The Indian Parma majors has also received a tentative approval to market escitalopram oxalate Tablets, 5, 10 and 20 mg, Losartan potassium and hydrochlorthiazide tablets 50mg/12.5mg and
100mg/25mg and anastraole tablets 1mg, used for the treatment of
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depression and anxiety.
Zydus Cadila acquires Spanish drug firm laboratories combix for an undisclosed amount, making its entry into the fifth largest pharmaceutical market in the world.
Zydus Cadila receives WHO prequalification accreditation for Rabies vaccine, Lyssavac.
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ZYDUS HEALTHCARE SIKKIM
Zydus one was one of the first pharmaceutical companies to be established in Sikkim. It started its operations in July 2006 with a meager strength of 50 personnel. Today it has strength of over 600 people and turnover of over 900 crores. It was a challenging task to set up a new state-of-art formulation plant in just seven months but Zydus involved in Sikkim Plant did just that. On the 7th of March 2006, Zydus Healthcare Plant was inaugurated at Rangpo in Sikkim. The plant spread over an area of 7500 sq.mt. The plant manufactures tablets and capsules for the domestic market. The Hon?ble Minister of Industries, Government of Sikkim, Mr. Ram Bahadur Subba inaugurated the plant which is first to be commissioned in
HR PHILOSOPHY:
We build people to build our business.
COMPANY’S CORE VALUES:
C? COMPETENCY BUILDING. A? ADAPT TO NEW ENVIRONMENT. R? RESPECT HUMAN VALUES E? EMPOWER, ENRICH AND EXCEL
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MANUFACTURING VISION:
To build capacity and capability to serve chosen markets at globally competitive and quality in time, all the time.
ENVIRONMENT:
The company promotes a work culture that encourages active involvement of every member.
SLIM GOALS:
To institutionalize integrated lean manufacturing across to achieve significant cost saving across all plants at Zydus. The group has been listed as one of the “Best under a Billion “company from amongst 200 companies in Asia by Forbes. The company has proven expertise in manufacturing and marketing different dosage forms such as: Solid dosage form, Injectable, Metered dose inhalers, Dry powder inhalers, Transdermal patches, Suppositories, Oncology formulation etc.
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PRODUCT PROFILE
Zydus Healthcare is a leader in cardiovascular, gastrointestinal and women?s healthcare segments. It has got strong presence in the respiratory, pain management, CNS, anti-infectives, oncology,
neuroscience, dermatology segments also. Leading the way through new product introductions, it was the first to launch many pharma products which are as follows. i. ii. iii. iv. v. vi. vii. Nucoxia (Etoricoxib) Nupatch (Diclofenac) Pantodac (pantoprazole) Mifegest (mifepristone) Penegra (Sildenafil Citrate) Providac Techsules Betaferon, Fludara
The group has a globally competent manufacturing infrastructure comprising eight state-of-the-art facilities which support product launches not just in India but also in the regulated markets of USA, Europe, and Latin America.
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QUALITY POLICY OF ZYDUS HEALTHCARE
Zydus Healthcare is committed to develop, manufacture and distribute products that meet the highest standards of quality at both national and international levels. Zydus Healthcare compiles with current good manufacturing practices (CGMP) in all its products and services. Zydus Healthcare has an ongoing endeavor to improve upon the quality thereby adding value to the products and customer satisfaction. Zydus Healthcare believes that quality is achieved through conscious team efforts of all the personnel, individually and collectively. Zydus Healthcare is “Dedicated to Life” and quality is a way of life at Zydus Healthcare.
Products manufactured
The various manufacturing operations at Sikkim Plant include: Tablets, Hard Gelatin Capsules & Hormones.
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LOCATION OF ZYDUS PLANT
ZYDUS HEALTHCARE SIKKIM
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MISSION:
“We are dedicated to life, in all its dimensions our world is shaped by a passion, for innovations, commitment to partners and concern for, people in an effort to create healthier communities globally.”
VISION:
“Zydus shall be a leading global healthcare provider; with a robust product pipeline and sales of over $1 billion by 2010; we shall achieve sales of over $3 billion by 2015 and be a research based pharmaceutical company by 2020.”
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METHODOLOGY
Sampling An integral component of a research design is the sampling plan. Specifically, it addresses three questions: 1. Whom to survey (The Sample Unit) 2. How many to Survey (The Sample Size) & 3. How to select them (The Sampling Procedure) Making a census study of the whole universe will be impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort. Methods of Sampling Probability Sampling is also known as random sampling or chance sampling. Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of the persons making the study, that is, the sampling operation is controlled objectively so that the items will be chosen strictly at random. Non Probability Sampling is also known as deliberate sampling, purposeful or judgmental sampling. Non-Probability Sampling is that
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which does not provide every individual in the organization with a known chance of being included in the sample. Data collection method Collection of data is the first step in statistics. The data collection process follows the formulation for research design including the sample plan. The data can be secondary or primary. Collection of Primary Data during the course of the study or research can be through observations or through direct communication with respondents in one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study. Secondary data means data that is already available, i.e., it refers to data, which has already been collected by someone else. When secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc.
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DATA ANALYSIS
1. Have you worked in any other company prior to joining this organization?
26%
YES NO 74%
Analysis From the graph it can be seen that majority of employees (i.e. 74%) have some amount of prior work experience before joining Zydus Plant. Most of them are coming from other company and other employees (i.e. 26%) have no prior work experience except certificate holding.
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2. How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options)
0%
35%
34%
SIMPLE COMPLICATED OBJECTIVE SUBJECTIVE
7% 4%
20%
EFFICIENT INEFFICIENT
Analysis From the above chart it can be seen that, a majority of the sample respondents have found the Appraisal Model to be efficient and simple while only some have found it complicated. The Appraisal Model has been thoroughly dealt with during the training; so the employees know exactly what is expected of them.
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3. In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the Organization?
13%
YES NO 87%
Analysis About 87% of the respondents has told that the Performance Appraisal System does give a true and fair view of their contribution to the Organization. This does include employees who think that their rating does not always turn up to be correct as per their opinion. The group of respondents who have replied in the negative also include candidates who say that the appraisal does not turn out to be right most of the times but do show a fair view sometimes.
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4. How often does your Performance assessment match your expectations?
10% 10% NEVER RARELY 20% 37% SOMETIMES OFTEN EVERYTIME
23%
Analysis This question was purposely put into the questionnaire to validate the answers for the previous question. The breakup of the data clearly shows that according to 10% of the entire sample, the appraisals have never shown a fair view of their performance. If this can be combined with those who are of the opinion that their appraisal rarely matches up to their expectations, this figure goes up to 20% of the sample. The analysis further shows that 80% are satisfied with the present system even though this includes satisfaction in varying degrees of expectations like sometimes, often or every time. This does show that the satisfaction level of the employees in this system is quite high and that there is a general feeling of likeability among the respondents.
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5. According to you, how often should the Performance Review take place?
0% 29% 17% ONCE IN A WEEK 20% ONCE A MONTH EVERY 3 MONTHS EVERY 6 MONTHS 34% ONCE A YEAR
Analysis Performance appraisal review is a constant process and lesser the frequency between the appraisals, the better. The majority want (i.e. 34%) the frequency of the appraisal to be every 6 months. The employees say that the longer the frequency between appraisals, the more the chances of the appraisal not matching up to their expectations because many performances get overlooked. If the appraisal is done twice in a year, the employee has a chance to find out the gaps in his / her performance which will help them to improve more on their performance and thereby eliminate any inefficiency in the appraisal system.
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6. What is your satisfaction level with the current Appraisal System?
0% 19%
0%
44%
VERY LOW LOW AVERAGE
37%
HIGH VERY HIGH
Analysis On an average, the satisfaction level of the Appraisal System is high as can be seen from the graph. This is a good sign as increased level of satisfaction is the main emphasis of any appraisal system. The chart shows that 44% have rated the Appraisal System as average and 56% have rated the Appraisal System as high and very high. The high satisfaction level in the System is due to various reasons like monetary or non-monetary incentives and timely promotions. The satisfaction level also brings to light the efficiency of the management in devising an acceptable Appraisal System.
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7. Which are the areas that should be improved upon?
3%
14% 30% STANDARDS MONETARY INCENTIVES FREQUENCY OF APPRAISAL 53% APPRAISAL SYSTEM
Analysis This question breaks up the different phases of the appraisal system and tries to come to a conclusion as to the areas of improvement in the process of evaluation. 53% of the respondents say that there should be a change on the aspect of monetary incentives. This does not refer to an increase in the monetary incentives but a more reasonable incentive structure that will properly reward increased and efficient performance. Another aspect is that standards of performance (i.e., benchmarks) should be improved according to 30% of the respondents. 14% have stated that there should be change in the appraisal system. Only 3% stated that there should be improvement in frequency of appraisal.
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8. How important do you think is Performance Appraisal to your Performance?
0% 3% 27% 27% NOT IMPORTANT LESS IMPORTANT IMPORTANT VERY IMPORTANT 43% MOST IMPORTANT
Analysis This question was put in to find out and analyze the importance of the Appraisal System to measure the productivity of the employees. The data clearly shows that the recognition of the employees? performance does have a direct impact on his / her efficiency. A vast majority of the respondents (i.e., 70% which includes ratings of very important and most important) affirm that their performance is directly influenced by recognitions of their performance by the Appraisal System. None of the respondents has stated that the Appraisal System has no effect on his/her productivity. This points to the fact that the Appraisal System goes a long way in determining the productivity of the employees in the Organization. Therefore it is very important for any Organization to devise its PAS carefully.
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9. Do you feel comfortable discussing any difference of opinion about your Performance Rating with your appraiser?
23%
YES NO 77%
Analysis From the above chart it shows that, a majority of the respondents (i.e. 77%) feel comfortable discussing any difference of opinion about their Performance Rating with their appraiser. 23% of the respondents did not feel free to express their displeasure, if any, to the rating given to them or it can be due to decreased comfort levels with the appraiser.
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10. Do you think you should be given an opportunity to rate your own performance?
10%
YES NO 90%
Analysis From chart it can be seen that majority of respondents (i.e. 90%) want self-appraisal to be a method of conducting the appraisals. 10% of the respondents does not agree with self-appraisal and they think it is the work of HOD for observing the performance of the employees and appraise them.
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11.Is there a proper complaint channel for the employees who are dissatisfied with the performance appraisal system?
46% 54% YES NO
Analysis According to 54% of respondents, there is no proper complaint channel existing in the organization for the employees who are dissatisfied with the performance appraisal system. However, 46% of the respondents are of the opinion that there exists a proper complaint channel.
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12.Does the appraisal system provide a good communication between the top-management plans and business goals to staff below?
34%
YES 66% NO
Analysis From the above chart it can be seen that the majority of the respondents (i.e. 66%) think performance appraisal helps in communicating the top management plans and business goals to staff at lower level. 34% of the respondents do not agree with this.
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13. Were you given training in the areas you were identified weak in your appraisal?
36%
YES 64% NO
Analysis From the above chart it can be seen that the majority of the respondents (i.e. 64%) agree that they were given training in the areas they were weak in the appraisal. 36% of the respondents think they were not given proper training in their areas of weakness.
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CONCLUSIONS
? Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. ? There should be a review of job analysis, job design and work environment based on the PA. ? It should bring more clarity to the mission and vision of the organization. ? It should provide more empowerment to the employees. ? The employees who have excellent performance should be used as a mentor for other employees who would motivate others to perform better. ? Employees should be given feedback regarding their appraisal. This will help them to improve on their weak areas. ? Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better. ? The frequency of training program for the appraiser should be increased and these sessions should be made interactive. ? More transparency should be brought about in the appraisal system.
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? The awareness sessions for the employees/appraisees should be made more interactive and the views and opinions of the appraisees regarding appraisal should be given due
consideration. ? Assistance should be sought from specialists for framing a proper appraisal system that suits the organization climate. Constant monitoring of the appraisal system should be done through discussions, suggestions and interactions. ? The company can make use of modern appraisal techniques like 360o appraisal, assessment centers and others which are more effective. ? The appraisal system should cover all employees in the organization – both white-collar and blue-collar employees. ? The company should recognize the good performers, i.e., employees who have accomplished the targets for the year can be given promotion or salary hike commensurate with the performance. ? Information regarding the performance of the employees should be kept in proper manner. ? Some of the PA should be conducted by the top management so that they can understand the behaviour of employees better and also find out the loopholes in the existing PA system.
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QUESTIONNAIRE
1) Have you worked in any other Company prior to joining this Organization? a) Yes b) No
2) How do you find the Performance Appraisal Model in this Organization? (Mark all the relevant options) a) Simple f) Inefficient 3) In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the Organization? a) Yes b) No b) Complicated c) Objective d) Subjective e) Efficient
4) How often does your Performance assessment match your expectations? a) Never b) Rarely c) Sometimes d) Often e) Every time
5) According to you, how often should the Performance Review take place? a) Once in a week Months b) Once a month c) Every 3 months d) Every 6
e) Once a Year
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6) What is your Satisfaction level with the current Appraisal System? a) Very Low b) Low c) Average d) High e) Very High
7) Which are the areas that should be improved upon? a) Standards b) Monetary Incentives c) Frequency of Appraisal
d) Appraisal system 8) How important do you think is Performance Appraisal to your Performance? a) Not Important d) Very important b) Less Important e) Most Important c) Important
9) Do you feel comfortable discussing any difference of opinion about your Performance rating with your appraiser? a) Yes b) No
10) Do you think you should be given an opportunity to rate your own performance? a) Yes b) No
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11) Is there a proper complaint channel for the employees who are dissatisfied with the performance appraisal system? a) Yes b) No
12) Does the appraisal system provide a good communication between the top-management plans and business goals to staff below? a) Yes b) No
13) Were you given training in the areas you were identified weak in your appraisal? a) Yes b) No
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BIBLIOGRAPHY
1. www.managementparadise.com 2. http://business.mapsofindia.com/sectors/manufacturing/cadilahealthcare.html 3. Robbins P. Stephen and Decenzo A. David, “Human Resource Management”, Wiley India Pvt. Ltd., 10th edition, 2011. 4. Robbins P. Stephen, Sanghi Seema and Judge A. Timothy, “Organizational Behaviour”, Pearson Education, 13th edition, 2009. 5. Aswathappa K, “Human Resource Management”, Tata McGraw Hill, 6th edition, 2010. 6. Agarwala Tanuja, “Strategic Human Resource Management”, Oxford University Press, 1st edition, 2007. 7. Sanghi Seema, “The Handbook of Competency Mapping: Understanding, Designing and Implementing Competency Models in Organizations”, Response Books, 2nd edition, 2007.
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GLOSSARY
Performance Appraisal: An ongoing process of evaluating and managing both the behavior and outcomes of employees in the workplace. Cost Effectiveness Analysis: CEA is a form of economic analysis that compares the relative costs and outcomes (effects) of two or more courses of action. Job Analysis: The systematic collection, evaluation and organization of information related to jobs. Job Design: The process of structuring work and designating the specific activities at individual or group levels. Appraisee: An employee who is being appraised by his or her manager in
an appraisal interview.
360-degree appraisal: Appraisal by supervisors, peers, subordinates, customers and employees themselves. White Collar Job: It typically involves clerical, managerial or sales job. Blue Collar Job: It involves manual labor. Job Description: A written statement that explains the duties, working conditions, and other aspects of a specified job. Job Evaluation: The systematic process of analyzing jobs to determine the relative worth of a job within the organization.
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