A Study on Performance Appraisal

Performance Appraisal
A STUDY ON PERFORMANCE APPRAISAL
WITH REFERENCE TO
HINDUSTAN COCA- COLA BEVERAGES PRIVATE LIMITED
VISHAKAPATNAM
A project report submitted to JNT University, Kakinada in partial fulfillment of
the requirement for the award of the degree of
Master of Business Administration
Submitted by
YAVVARI LALITHA KUMARI
Regd.no.09PM1E0058
Under the guidance of
Mr.SAUMENDRA DAS
LLM, MBA (PhD)
DEPARTMENT OF MANAGEMENT STUDIES
AITAM SCHOOL OF COMPUTER SCIENCES AND MANAGEMENT
(Approved by AICTE, New Delhi & Affiliated to JNTU, KAKINADA)
K.Kotturu, Tekkali.
2009-2011
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AITAM SCHOOL OF COMPUTERSCIENCES AND MANAGEMENT
(Approved by AICTE, New Delhi & Affiliated to JNTU, KAKINADA)
K.KOTTURU, TEKKALI- 532201
DEPARTMENT OF MANAGEMENT STUDIES
CERTIFICATE
This is to certify that the project entitled on PERFORMANCE APPRAISAL
with reference to HINDUSTAN COCA-COLA BEVERAGES PRIVATE LIMITED is
Submitted by YAVVARI LALITHA KUMARI, bearing Regd. No. 09PM1E0058 in
partial fulfillment of the requirement for the award of degree of Master of Business
Administration from Aitam School Of Computer Sciences And Management is a record
of bonafide work carried out by her under my guidance and supervision.
The result embodied in this project work has not been submitted to any other
university or Institution for the award of any degree or diploma.
(DR. D. VISHNU MURTHY) (MR. SAUMENDRA DAS)
PRINCIPAL PROJECT GUIDE
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ACKNOWLEDGEMENT
I am very thankful to the entire team of HINDUSTAN COCA COLA BEVERAGES
PVT.LTD for their cooperation, without which completion of this project would not have
been possible.
I am extremely grateful to Mr. N.V.S RAMANA MURTHY (HR MANAGER) for
providing me with valuable insights about the base metals. I would like to thank him for the
patience shown by him and being of such a great help to all my queries.
I express my sincere gratitude to DR. D.VISHNUMURTY, Principal of ASCAM for
giving to me this opportunity to carry out this project.
I would like to thank Mr. SAUMENDRA DAS for his valuable guidance and
encouragement and constructive suggestions throughout the project work.
Finally I thank to my parents for their continue support and help in the completion of
my project.
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DECLARATION
I hereby declare that this project entitled PERFORMANCE APPRAISAL WITH
REFERENCE to HINDUSTAN COCA-COLA BEVERAGES PVT.LTD has been prepared by
me during Period (DECEMBER-JANUARY, 2010-2011) and submitted to AITAM SCHOOL
OF COMPUTER SCIENCES AND MANAGEMENT, TEKKALI. In partial fulfillment of the
requirement for the award of the degree of MASTER OF BUSINESS ADMINISTRATION
from JAWAHARLAL NEHRU TECHNOLOGY UNIVERSITY, KAKINADA
I also declare that this project works in the result of my sincere effort and that it is
has not been submitted to any other university for the award of any degree or diploma.
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CONTENTS
CHAPTER NO TITLE PAGE NO
CHAPTER – 1: 1.1 INTRODUCTION OF THE STUDY 10
1.2 NEED FOR THE STUDY 12
1.3 OBJECTIVES OF THE STUDY 13
1.4 METHODOLOGY OF THE STUDY 14
1.5 LIMITATIONS OF THE STUDY 16
CHAPTER – 2: AN OVERVIEW OF CRONIMITE
2.1 PROFILE OF INDUSTRY 18
2.2 INDIAN FERRO ALLOYS IN THE WORLD 22
MARKET
2.3 FUTURE PROSPECTS OF INDUSTRY 23
2.4 INDUSTRY GENESS AND GROWTH 25
2.5 ORGANISATION STRUCTURE 28
2.6 FINANCIAL MANAGEMENT 30
2.7 MATERIALS MANAGEMENT 34
2.8 PRODUCTION MANAGEMENT 35
2.9 PERSONNEL MANAGEMENT 41
2.10 COOPERATIVE STORES 43
2.11 MANAGEMENT INFORMATION SYSTEM 44
2.12 MARKETING MANAGEMENT 44
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CHAPTER - 3: THEORETICAL FRAMEWORK
3.1 INTRODUCTION TO RECRUITMENT 48
3.2 RECRUITMENT POLICY 48
3.3 SOURCES OF RECRUITMENT 49
3.4 METHOD OF RECRUITMENT 49
3.5 RECRUITMENT PROCEDURE 49
3.6 SELECTION PROCEDURE 50
3.7 APPOINTENT 52
3.8 RECRUITMENT AND SELECTION IN CRONIMET 53
3.9 OBJECTIVES OF RECRUITMENT AND SELECTION 54
3.10 INTERNAL AND EXTERNAL SOURCES 55
3.11 SELECTION PROCEDURE 59
CHAPTER - 4: 4.1 DATA ANALYSIS AND INTERPRETATION 63
CHAPTER - 5: SUMMARY, FINDINGS AND SUGGESTION
5.1 SUMMARY 83
5.2 FINDINGS 87
5.3 SUGGESTIONS 90
BIBLIOGRAPHY 92
APPENDIX 94
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LIST OF TABLES
SL NO PARTICULARS PAGE NO
1 TABLE NO-4.1.1
2 TABLE NO-4.1.2
3 TABLE NO- 4.1.3
4 TABLE NO-4.1.4
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5 TABLE NO-4.1.5
6 TABLE NO-4.1.6
7 TABLE NO-4.1.7
8 TABLE NO-4.1.8
9 TABLE NO-4.1.9
10 TABLE NO-4.1.10
11 TABLE NO-4.1.11
12 TABLE NO-4.1.12
13 TABLE NO-4.1.13
14 TABLE NO-4.1.14
15 TABLE NO-4.1.15
16 TABLE NO-4.1.16
17 TABLE NO-4.1.17
18 TABLE NO-4.1.18
LIST OF FIGURES
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SL NO PARTICULARS PAGE NO
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1 ORGANSATION CHART
2 AVAILABILITY OF JOB
3 BASIS OF SELECTION
4 INVOLVEMENT OF HEAD
5 SOURCE OF RECRUITMENT
6 TYPE OF SELECTION
7 CONCENT ON SELECTION
8 PROMOTION
9 PREFERENCE TO INTERNAL SOURCES
10 INGREDIENTS FOR INTERVIEW
11 ORIENTATION CLASS
12 EMPLOYEE TRANSFER
13 EMPLOYEE REFERRALS
14 SELECTION PROCEDURES
15 PSYCHOMATRIC TEST
16 EMPLOYEE AGREEMENTS
17 PROBATION PERIODS
18 HIRING PROCESS
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CHAPTER – I
INTRODUCTION
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1.1 INTRODUCTION OF THE STUDY
Performance appraisal is “the process of evaluating the performance and
qualification of the employees in terms of the administration including for promotion,
providing financial rewards and other placement, selection actions which require
differential treatment among the members of a group as distinguished from actions
affecting all members equally.”
Definition:
Performance appraisal is the systematic evaluation of individual with respect to
his/her performance on the job and his/her potential for development.
Performance appraisal is the systematic description of employee’s job relevant
strength and weakness. The purpose is to find out how well the employee is performing
his job and establish a plan of improvement. Performance appraisal is arranged
periodically according to a definite plan. Performance appraisal is not job evaluation.
Performance appraisal refers to how well someone is doing the assigned job. Job
evaluation determines how much a job is worth to the organization and, therefore, what
range of pay should be assigned to the job.
Once the employee has been selected, trained and motivated, he is then appraised
for his performance. Performance appraisal is essential in escapable managerial activity for
enhancing organizational performance. It adminstrative and training and development
decisions and motivating employees.
A performance of a job in terms of its requirements “observes, it is the process of
evaluating the performance of qualification of the employees in terms of the requirements
of the job to which he is employed for the purpose of administration including placement,
selection for promotions, providing finance rewards and other actions which require
differential treatment among the members of a group as distinguished from action
affecting all members equally.
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Initially the appraisal system was started for the purpose of making administrative
decisions relating to promotions transfers and salary increments, however over the years
the performance appraisal system are being upon to serve a variety of purpose. They are,
• Administrative purpose
• Motivational purpose
• Development purpose
• Performance improvement
Importance of performance appraisal:
Performance appraisal is an essential and inescapable managerial activity.
Appraisal is necessary for all important decisions relating to people, such as placement
and promotion, remuneration and reward, training and development, as well as long-term
man power planning and organization development. In recent years, efforts have been
made to use appraisal systems for motivation, for more effective communication, for
strengthening superior-subordinate relationships, for goal setting and work planning and
for improving the total performance of the organization. But in spite of its importance,
uneasiness about appraisal has been a long-standing feature of management. There is no
doubt during the past three decades, many developments have taken place and many
innovations, have been made in managerial appraisal system. Still, many issues remain
unresolved. Available literature on the subject reveals than even in the western countries,
where systematic appraisals have been widely practice over a much longer period than in
India and where a fair amount of empirical as well as theoretical research on the relevant
issues has been conducted, serious doubts continue to persist about various aspects of
appraisal.
In this present situation performance appraisal become important aspect for the
growth and development of the organisation. As beverages industries are recruiting their
employees day to day and providing the best remunerations and facilities, the student
researcher thought to do her survey in Hindustan Coca-cola Beverages Ltd,
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Vishakhapatnam to know about the fact in that organisation. The student researcher
again tried to compare the theories available in the books, journals etc with the practical
implementation in that company. She revealed the situation and found that the appraisa
system adopted by the company was good and satisfactory among all the employees.
Further she quoted points and suggested few points for the development of the
employees.
1.2 NEED FOR THE STUDY
A very good system of performance appraisal system is neede by an organization
that wants to be dynamic and growth oriented. It is to be remember that the employee
needs to be satisfied and there should be no difference between the review and appraised
employee.
It plays a major role in the process of communication between the superior and
the subordinate. A good appraisal system is the best requirement to bring up the
organization and its productivity.
HCCBP Limited is having a very good system of performance appraisal system
because it has laid its own philosophy and well planned procedure in rating the employees
which is very important for the development of both individual and organization.
Management is also providing all the requirements of the employees for the
completion of the work and even the system constitute goal setting, periodic reviews,
feedback and consequence management, and finnaly rating is given as per this reviews.
The employee assessment has been done by the system of appraisal by the
superior and have the final authority for the rating. Here the employees are given chance
for their individual development. The action is taken according to the ratings of appraised
employee.
• Creating and maintaining the satisfactory level of performance of employees in
their present job.
• Provide feedback information about the level of achievement and behavior of
subordinate.
• Provide information which helps to counsel subordinate.
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• To prevent grievances and in disciplinary activities.
• Highlighting the employee needs and opportunities for personal growth and
development.
• Aiding in decision making for promotions, transfers, layoffs and discharges.
• Promoting understanding between the supervisor and the subordinates.
• Providing useful criteria for determining the validity of selection and training.
1.3 OBJECTIVES OF THE STUDY
1. To study and analyze different performance appraisal schemes provided by the HCCB
PVT.LTD.
2. To study the existing annual performance appraisal system in HCCB PVT.LTD.
3. To study the efficiency of the system and overall rating during last year.
4. To study the interpersonal and team relationship with peers, superiors and
subordinates.
5. To study the performance feedback and counseling system for employees in HCCB
PVT.LTD.
6.To analyze the employee attitude towards the present appraisal system.
7.To enhance job satisfaction and self actualization of employees by encouraging, and
assisting every employee to realize his or her full potential.
1.4 METHODOLOGY OF THE STUDY:
Research is a careful investigation or enquiry especially through search for new
facts in any branch of knowledge.
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According to Redman and Mory, “Research is a systematized effort to gain new
knowledge”.
RESEARCH DESIGN:
“A Research Design is the arrangement of conditions for collection and analysis of
data in a manner that aims to combine relevance to the research purpose with economy
in procedure”.
Generally the Research Design can be conveniently described in 3 ways. They are,
• Research Design in case of exploratory research studies.
• Research Design in case of descriptive and diagnostic research.
• Research Design in case of hypothesis-testing research studies.
• The present study is of descriptive study.
SOURCES OF DATA
The sources for collecting the data are from both
● Primary Method
● Secondary Method
Primary Data
The Primary data are those which are collected afresh and for the first time, and
thus happen to be original in character. The tools for collecting this primary data are by
two types namely Interview Method and Questionnaire Method.
Secondary Data
The Secondary data are those which have already been collected by someone else
and which have already been passed through the statistical process in the company.
SAMPLE SIZE
All items in any field of in query constitute a ‘universe’ or ‘population’. A finite
subset of the population gives a sample.
The statistical units in the sample are called sample units. The number of units in
the sample is called the size of the sample.
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If the size of the sample is less than or equal to 30 then it is called as a small
samples. Otherwise that it if the size of the sample is greater than 30, it is called as large
samples.
The sample size of the survey is taken as 70 respondents.
SAMPLING PROCEDURE
Sampling is the selection of group with a view to obtain information about the
whole is group of persons that represents particular community.
The sampling method used was random sampling. This sampling method was used
because of lack of time and lack of through knowledge about the universe. The sample
size was fixed to 70 respondents.
SAMPLING TECHNIQUE
● Simple random sampling
RESEARCH INSTRUMENTS
1. Personal interviews: Schedulers where administered personally for Collecting the data.
2. Questionnaire : The questionnaire comprises of open ended questions and closed
ended questions.
STATISTICAL TOOLS USED
● Bar charts
● Pie-charts
● Tables
1.6 LIMITATIONS OF THE STUDY
1. The performance appraisal study is limited only to the HCCB PVT. LTD, which is
located in Vishakhapatnam.
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2. The survey could not be extended to all the employees working in the plant as they
could not spare much time because of their busy schedule of work.
3. The performance appraisal study is conducted on a limited number of employees
and on the entire work force.
4. The answers given by the respondents highly depend on the mood and interest and
thus the accuracy fluctuates sometimes.
5. Sample size is 70 respondents.
CHAPTER – II
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INDUSTRY PROFILE AND COMPANY
PROFILE
2.1 GENESIS AND GROWTH
The History of Soft Drinks
Soft drinks can trace their history back to the mineral water Found in
natural springs. Bathing in natural springs has long been considered a healthy thing to do;
mineral water was said to have curative powers. Scientists soon discovered the gas
harmonium or carbon dioxide was behind the Bubbles in natural mineral water. The first
marketed soft drinks (non-carbonated) appeared in the 17 Century. They were made from
water and lemon juice sweetened with Honey. In 1676, the companies de Lemonades of
Paris were granted a Monopoly for the sale of lemonade soft drinks. Vendor would carry
Tanks of lemonade on their backs and dispensed cups of the soft drink to Thirsty
Parisians.
Joseph Priestley
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In 1767, the first drinkable man-made glass’ of carbonated water was
created by Englishmen Doctor Joseph Priestley. Three years later, Swedish chemist Torero
Bergman invented a Generating apparatus that made carbonated water from chalk by the
use of sulfuric acid. Bergman’s apparatus allowed imitation mineral Water to be produced
in large amounts.
John Mathews
In 1810, the first United States patent was issued for the” means of mass
Manufacture of imitation mineral waters” to Simons and Rendell of Charleston, South
Carolina. However carbonated beverages did not achieve great popularity in America until
1832, when John Mathews Invented his apparatus for the making carbonated water. John
Mathews Then mass-manufactured his apparatus for sale to soda fountain owners.
Health Properties of Mineral Water
The drinking of either natural or artificial mineral water was considered a
healthy practice. The American pharmacists selling mineral waters Began to add medicinal
and flavorful herbs to unflavored mineral water. They used birch bark, dandelion,
sarsaparilla, and fruit extracts. Some Historians consider that the first flavored carbonated
soft drink was that made in 1807 by Doctor Philip syng Physic of Philadelphia. Early
American pharmacies with soda fountains became a popular part of Culture. The
customers soon wanted to take their “health” drinks home with them and a soft drink
bottling industry grew from consumer demand.
The Soft Drink Bottling Industry
Over 1,500 U.S. patents were filed for a cork, cap, or lid for the carbonated
drink bottle tops during the early days of the bottling industry. Carbonated drink bottles
are under a lot of pressure from the Gas. Inventors were trying to find the best way to
prevent the carbon Dioxide or bubbles from escaping. In 1892, the “Crown Cork Bottle
Seal” Was patented by William Painter, a Baltimore machine shop operator. It was the
first very successful method of keeping the bubbles in the bottle?
Automatic Production of Glass Bottles
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Coca-Cola® originated as a soda fountain beverage in 1886 selling for five
cents a glass. Early growth was impressive, but it was only when a strong bottling system
developed that Coca-Cola became the world-famous brand it is today.
1894…………….A modest start for a bold idea
1899…………….The first bottling agreement
1900-1909………Rapid growth
1916…………….Birth of the contour bottle
1920s……………Bottling overtakes fountain sales
1920s and 30s…...International expansion
1940s……………Post-war growth
1950s……………Packaging innovations
1960s……………New brands introduced
1970s and 80s…...Consolidation to serve customers
1990s……………New and growing markets
21st Century……..
The Coca-Cola bottling system grew up with roots deeply planted in local
communities. This heritage serves the Company well today as people seek brands that
honor local identity and the distinctiveness of local markets. As was true a century ago,
strong locally based relationships between Coca-Cola bottlers, customers and
communities are the foundation on which the entire business grows.
Historical events of Coca-Cola
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1885
John Pemberton invented the original recipe for a new coca wine. He named it
Pemberton’s French
Wine Coca, which was believed to be inspired by Vin Mariani, a popular coca wine
invented by Angelo Mariani.
1892
Made the first big break in Coca Cola history. Candler incorporated The Coca-Cola
Company in 1982, and began marketing the product.
1894
Bottles of Coca-Cola were sold starting in 1894.
1899
The first bottle was sold in Vicksburg, Mississippi. In 1899, Chattanooga, Tennessee
became the first site of a Coca-Cola bottling company.
1955
Coke cans were sold starting in 1955.
1985
Coca-Cola attempted to change the original formula. Most consumers preferred the taste
of the original Coca-Cola, and many ceased purchasing the product until the company
switched back to the original formula. It was renamed Coca-Cola Classic to show
consumers that the drink had reverted back to its original formula.
2000
Coca Cola is now being sold around the world, in more than 200 different countries. The
Coca-Cola Company now sponsors an assortment of events, including the “Olympic
Games”, and “NASCAR”. In England, it is the primary sponsor of “The Football League”. It
is also featured in several television shows including “The Gods Must Be Crazy”.
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2005
Coca Cola history took another leap in the market. In 2005, the company launched “Diet
Coke’, sweetened with artificial flavors. Later in 2005, it announced “Coca Cola Zero’,
sweetened with aspartame and ace sulfate potassium.
Coca Cola enjoyed in step by step worldwide
Atlanta Beginnings (1986- 1892)
Coca Cola is enjoyed in the United States.
Coca Cola made its debut in Atlanta, At Jacobs’ pharmacy Soda fountain where
it is sold for 5 cents a glass.
It was 1886, and in New York Harbor, workers were constructing the Statue of
Liberty. Eight hundred miles away, another great American symbol was about to be
unveiled.
John Pemberton, an Atlanta pharmacist, was inspired by simple curiosity. One
afternoon, he stirred up a fragrant, caramel-colored liquid and, when it was done, he
carried it a few doors down to Jacobs’ Pharmacy. Here, the mixture was combined with
carbonated water and sampled by customers who all agreed -- this new drink was
something special. So Jacobs’ Pharmacy put it on sale for five cents a glass.
Pemberton’s bookkeeper, Frank Robinson, named the mixture Coca-Cola®, and
wrote it out in his distinct script. To this day, Coca-Cola is written the same way. In the
first year, Pemberton sold just 9 glasses of Coca-Cola a day.
A century later, The Coca-Cola Company has produced more than 10 billion
gallons of syrup. Unfortunately for Pemberton, he died in 1888 without realizing the
success of the beverage he had created.
Beyond Atlanta (1893-1904)
Coca - Cola hires first celebrity spokesperson,
Music hail performer Hilda Clark appears in advertisements.
Safe guarding the Brand (1905-1918)
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Coca-Cola is enjoyed in 8 countries worldwide.
The Contour Bottle to combat copycats, Coca-Cola develops a unique bottle.
1916, they began manufacturing the famous contour bottle. The contour bottle, which
remains the signature shape of Coca-Cola today, was chosen for its attractive
appearance, original design and the fact that, even in the dark, you could identify the
genuine article.
The woodruff Legacy (19 19-1940)
Coca-Cola introduces the six packs.
This convenient packing revolutionizes soft drink consumption by enabling
people to enjoy Coca-Cola anywhere.
Woodruff was a marketing genius who saw opportunities for expansion
everywhere. He led the expansion of Coca-Cola overseas and in 1928 introduced Coca-
Cola to the Olympic Games for the first time when Coca-Cola traveled with the U.S. team
to the 1928 Amsterdam Olympics. Woodruff pushed development and distribution of the
six-pack, the open top cooler, and many other innovations that made it easier for people
to drink Coca-Cola at home or away. This new thinking made Coca-Cola not just a huge
success.
The war and its Legacy (194 l-1959)
Introducing Coke
The elf-like sprite is introduce to promote the use of the worldwide “Coke”
A world of customers (196l-l980)
Coca-Cola is enjoyed 163 countries worldwide.
Teaching the world to sing
During the 70’s Coca-Cola thrilled the world with its exciting and dynamic advertising
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After 70 years of success with one brand, Coca-Cola®.
The Company decided to expand with new flavors:
Fanta®, originally developed in the 1940s and introduced in the 1950s;
Sprite® followed in 1961, with TAB® in 1963 and Fresca® in 1966. In 1960,
The Coca-Cola Company acquired The Minute Maid Company, adding an
entirely new line of business - juices -- to the Company.
Advertising for Coca-Cola, always an important and exciting part of its
business, really came into its own in the 1970s, and reflected a brand connected with fun,
friends and good times. The international appeal of Coca-Cola was embodied by a 1971
commercial, where a group of young people from all over the world gathered on a hilltop
in Italy to sing “I’d Like to Buy the World a Coke.”
1978, The Coca-Cola Company was selected as the only Company allowed to
sell packaged cold drinks in the People’s Republic of China.
Diet Coke and New Coke (1982-1989)
Coca-Cola is enjoyed 165 countries worldwide
Coke in space
In 1985, Coca-Cola becomes the first soft drink ever in space.
New Markets and Brands (1990-1999)
Coca-Cola is enjoyed in nearly 200 countries worldwide.
Refreshing the world through sports
The Company continues its long standing association with athletic events
including the Olympic Games and the FIFA world cup.
The l990s were a time of continued growth for The Coca-Cola Company. The
Company’s long association with sports was strengthened during this decade, with
ongoing support of the Olympic Games, FIFA World CupTM
foot ball (soccer), Rugby World
Cup and the National Basketball Association. Coca-Cola classic became the Official Soft
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Drink of NASCAR racing, connecting the brand with one of the world’s fastest growing and
most popular spectator sports.
1993 saw the introduction of the popular “Always Coca-Cola” advertising
campaign, and the world met the lovable Coca-Cola Polar Bear for the first time. New
markets opened up as Coca-Cola products were sold in East Germany in 1990 and
returned to India in 1993.
New beverages joined the Company’s line-up, including PowerAde® sports
drink, Qoo® children’s fruit drink and Dasani® bottled water. The Company’s family of
brands further expanded through acquisitions, including Limca®, Maaza® and Thurns
Up® in India, Barq’s® root beer in the U.S., Inca Kola® in Peru, and Cadbury
Schweppes’® beverage brands in more than 120 countries around the world. By 1997,
the Company already sold 1 billion servings of its products every day, yet knew that
opportunity for growth was still around every corner.
Coca-Cola now (2000-now)
Coca-Cola is enjoyed in more than 200 countries worldwide.
Welcome to ‘The Coke side of life”
Coca-Cola global marketing flat form makes its debut.
1886, Coca-Cola® brought refreshment to patrons of a small Atlanta pharmacy.
Now well into its second century, the Company’s goal is to provide magic every time
someone drinks one of its more than 500 brands.
From the early beginnings when just nine drinks a day were served, Coca-Cola
has grown to the world’s most ubiquitous brand, with more than 1.4 billion beverage
servings sold each day. When people choose to reach for one of The Coca-Cola Company
brands, the Company wants that choice to be exciting and satisfying, every single time.
Milestones
1969
• Hellenic Bottling Company S.A. is headquartered in Athens.
• The Coca-Cola Company grants bottling rights in Greece.
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1981
• Kar-Tess Holding S.A. acquires 99.9 per cent interest in Hellenic Bottling Company
S.A.
1991
• Hellenic Bottling Company S.A. shares are listed on the Athens Stock Exchange.
1998
• Coca-Cola Amatil Limited de-merges its European operations, resulting in the
formation of
Coca-Cola Beverages plc.
2000
• Coca-Cola Beverages plc is acquired by Hellenic Bottling Company S.A. to form
Coca-Cola Hellenic Bottling Company S.A.
• Included in the social responsibility index FTSE4Good.
2001
• Expanded territory to include The Coca Cola Company’s Russian territories, yielding
full control of Russian Coca-Cola bottling operations.
• First operation certified ISO 14001.
2002
• Acquired all bottling operations in the Baltic’s.
• Acquired Valser Mineraiquellen AG in Switzerland and Dorna Apemin in Romania.
• Coca-Cola Hellenic Bottling Company S.A. lists its American Depositary Receipts
(ADRs) on the New York Stock Exchange.
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• FTSE4Good listing confirmed under the new stricter environmental, social and
human rights criteria.
2003
• Twentieth anniversary of our Amita juice brand, the market leader in Greece with 29
flavors.
• Recapitalization plan results in a return of €2 per share to shareholders.
• Acquired Multi vita sp. z.o.o, in Poland and Romerquelle GmbH in Austria.
• Acquired the Greek potato chip company Tsakiris S.A.
• First country operations certified OHSAS 18001.
2004
• Acquired Gotalka d.o.o., a water company in Croatia.
• Eight Coca-Cola Hellenic Bottling Company territories join the European Union (EU).
• Published the first Global Reporting Initiative (GRI) report in the non-alcoholic
beverage industry.
2005
• Acquired Vlasinka d.o.o. mineral water company in Serbia and Bankya Mineral
Waters Bottling Company E.O.O.D. in Bulgaria.
• Acquired the Multon Z.A.O. Group, a leading Russian fruit juice company.
• Acquired Vendit Ltd, one of the largest independent vending operators in Ireland.
• Signed the UN Global Compact.
• Ratified the UNESDA commitments to the EU Platform on Diet and Health.
• Launched the Green Danube Partnership with the International Commission for the
Protection of the Danube River (ICPDR).
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2006
• Sales volume exceeds 500 million unit cases of non-sparkling drinks for the first time
in one year.
• Acquired the Fresh & Co d.o.o. Group, a leading Serbian fruit juice company.
• Acquired Lanitis Brothers Public Limited, the Coca-Cola bottler in Cyprus.
• Acquired Fonti del vulture S.r.l., a producer of high quality mineral water in Italy.
• Acquired Yoppi Kft., a hot and cold beverage vending operator in Hungary.
• Named Notable Reporter on Progress by the UN Global Compact.
2007
• Acquired Eurmatik, a full-line vending operator in Italy.
• Acquired a newly constructed beverage production facility, Aqua vision in Russia.
• Signed the UN Global Compact CEO Water Mandate, Caring for Climate statement
and the Bali Communiqué.
• Announced intent to build 15 combined heat and power (CHP) units to reduce total
carbon dioxide emissions from operations by 20 per cent.
• Opened the first industry-owned PET-to-PET recycling plant.
• Achieved the milestone of two billion unit case sales volume in one year.
• Earnings before interest, tax, depreciation and amortization (EBITDA) per annum in
excess of €l billion for the first time.
• Launched guideline daily amount (GDA) labeling in the EU states.
2008
• Formed three-party joint venture with The Coca-Cola Company and illycafe SpA,
Italy producer of premium coffees, to manufacture, market, sell and distribute
premium ready-to- drink (RTD) iced coffee products.
• Acquisition of Socib, the second largest Coca-Cola franchise bottler in Italy.
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• Included in the Dow Jones Sustainability Indexes (DJSI).
2009
• Agreement with Campbell Soup Company regarding the distribution by Coca-Cola
Hellenic of Campbell soup and broth products throughout Russia.
2.2 ORGANIZATIONAL STRUCTURE
Organization Structure and Management Of Coca-Cola India (Limited)
The word Organization” has two meanings. In the first instance, it signifies
institution or functional group and the second meaning refers to the process of organizing
the way of work which is arranged and allocated among the members of the organization,
so that the goal of the organization can be achieved efficiently. The organization process
involved the balancing of the companies on one hand changes on the other hand.
Organization structure gives stability and reliability to the action of its members.
Organization structure can be defined as the relationship existing among the
various jobs and positions within an organization an organization structure specifies its
division of work activities and shows how different functions or activities are linked.
The following table shows the description of the employees along with the
designation and also the number of employees.
SL. No. Description N.of employees
1 General Manager (Finance) 1
2 Commercial Manager 1
3 Marketing Dept Manager 1
4 Territory Dept Manager 4
5 Administration 1
6 Production Manager 1
30

7 Asst. Personal manager 1
8 Store Executive 3
9 Central Executive 25
10 Route Agents 50
11 Sales Training 1
12 Chemist 3
13 Accountant 5
14 Supervisors 8
15 Clerks 8
16 Operations 10
17 Electricians 3
18 Fitters 2
19 Computer cum Telephone Operator 12
20 Security Guards 6
21 Office Boys 13
22 Sweepers & Helpers 3
ORGANIZATION CHART OF COCA-COLA INDIA VIZAG LTD
31
Managing director
CEO
Executive CEO

FIGURE NO-2.2.1
2.3 FINANCIAL FUNCTIONS
Finance department
A finance manager heads the finance department. This is a very powerful
post in the company and the finance department. This is a very powerful post in the
company and the finance manager is the second in command of the unit. The entire plant
and operations keep him abreast of their daily functioning, while the AGM mainly attends
to the sales functions.
Sources of finance
Coca-cola being a MNC has a wide network and market for its products
worldwide. The finance to the company comes from corporate office and financial
32
Head
Finance
Head AVP
Sales
Managing
Marketing
Head
Operations
Head
Human
Resource
Head
Transport
& Shipping
Manager
Finance
Manager
TDM
Manager
Modern
Trade
Manager
Production
Manager
TPT
Executives
Shipping
Asst. Accts
Executive
Asst.
Manager
ADC
Asst.
Manager
Marketing
Manager
Quality
Control
Sales
Executives
Executives Manager
Maintenance

institution abroad. The units which have been set up in India are subsidiary concerns of
group. These units mobilize their own funds and pay lumps amount to the corporate
group for getting technology and the product specification to be manufactured in the
company, for which the formulation comes from the office situated abroad. The finance
department can be broadly segmented into two, the accounting sections and the payables
or receivables i.e., working capital. In addition to these sections like stores, shipping,
purchase, administration in unit level regional office. The finance manager makes
allocations for the different department in consultant heads
Stores
There is a store in-charge and four other people to assist him. All material
used for production are under the stores in charge once they enter the company
premises. This includes raw material, other material etc. The stores department reports to
the finance manager and daily reports are sent to him. Materials are stocked in
accordance with the production schedule and sales target.
Shipping
The functions of the two people including, the purchase in -charge who
reports to the finance manager.
Purchases
This section functions with two people including the purchase in charge who
reports to the finance manager. The plant inform as the stores of the requirements who in
turn make a purchase request to the purchase department. Every purchase matter
whether concerning the plant or office is handled by the purchase department.
Personnel department
Matters like recruitment, selection. Wage structure, etc is decided at
Hyderabad. The respective department heads sanction leaves for the staff. The
department is conducting training programs in computers and spoken English to better
equip its people to handle the change the organization is under going.
Financial Structure
Any company to start and operate its business has to invest its capital in fixed
assets and floating assets and also in meeting the daily requirements of the company.
33

However, depending on the nature of the business and the product being offered by the
company the ratio of the investment of capital in fixed and floating assets differ.
2.4 H R FUNCTIONS
Human Resource Management is an essential part for any organization.
Moreover, development of this department is the first step, the ground on which the
future of the company depends. It is essential for every single business unit and
especially for such international company as Coca Cola. It is people, not technology who
create the company. Human Resource Management at Coca Cola Company has many
advantages. It is the global company and it is impossible to create certain policies or
procedures applicable in all divisions of the company, cultural and political differences
need to be taken into account. Therefore, the focus of this paper will be on four tasks and
duties of Human Resource Management (performance management, compensation,
career development, succession planning) based on the United States procedures.
Basically the HRM practices are necessary for every organization. But
unfortunately in Pakistan not so much used HRM practices. In multinational companies
like coca cola have their own separate department of HRM. According senior executive of
HR “Waqar Mahmood “our HR department consist of 29 people in Gujranwala plant.
Every organization has its own policies and strategies by which they control the
functions of their departments. Similarly, we also have own policies and strategies by
which we control all the functions of our departments. coca cola HR department is also
conducting all the practices of HRM like Job analysis and design of work ,recruitment and
selection, training and development, performance appraisals, compensation, employee
relationships, staff welfare and medical policies and some other things like that. These all
practices are conducted by own policies and strategies. HR department not make
decisions related of its own department, they also conduct in company’s decision.
Job analysis and designing
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Job analysis is the procedure for determining the duties and skill requirements of
a job and the kind of person who should be hire for it. Job analysis consists of two
products one is job description and second job specification.
Job description: A list of job duties, responsibilities, reporting relationship,
working conditions, and supervisory responsibilities- one product of a job.
Job specification: A list of a job’s human requirements that is requisites
education, skills, personality, and so on-other product of a job analysis.
Coca cola company HR department check its own job description and job analysis
in which they get the information about employees work activities, human behavior,
performance standard, job context and human requirements and also other information
related to this conduct.
HR department of coca cola used this information for Recruiting, selection,
compensation, performance appraisal, training, and employee’s relationship.
Planning and Forecasting
The process of deciding what positions the firm will have to fill, and how to fill
them. Coca cola HR department involves in company strategic planning and they also
make sufficient planning for hiring new employees in the future. We forecast for the
expected employees needs in the organization. We forecast of employees on the change
technology and increasing in productivity.
After planning we send this report to the head office for approval. If we get
approval from the head office then we start recruitment process.
Our recruitment process
Our recruitment process is well established first of all we give ads in news papers,
company website, institutions etc. Once we receive an application form, from candidates
with required documents and CV.
 Internal recruitment
 External recruitment
Selection process
35

The selection process will vary depending on the position you’re applying for, as
one process can’t fit all the different roles we have here at CCE. However, in most cases a
combination of any of the following tools will be used:
 Interview
 Group exercises
 Presentations
 Psychometric tests
 Role plays/Situational Exercises
 Interview
The interview is designed to reveal more about you and your experiences. We’ll
ask for examples of how you behaved in different situations, maybe at school, university,
a club, at home or in previous jobs. This is not designed to 'catch you out' and our
interviewers will never try and trick you into an answer. Be honest, be yourself and it
should be an enjoyable experience.
Also, don’t forget that this is your chance to find out more about us and ask
questions. Remember, interviews are a two-way process so use it to understand the
nature of the role and to make sure it really is what you’re looking for.
Group exercises
We’re very much a team at CCE so these will show us how effectively you work
with people. They’re a good opportunity for us to see how you communicate, influence
and involve other people in the workplace.
Presentations give you the chance to show your ability to communicate to a
group of people on a specific topic. You may be given a topic in advance or on the day,
but don’t worry – you’ll have plenty of time to prepare.
Psychometric tests
Psychometric tests are timed exercises that examine your abilities and
potential. On occasions, we may also use a personality assessment tool that is designed
36

to find out more specific things about you. If you’re asked to complete a psychometric
test, we’ll send you information and advice in advance on how to prepare.
Role Plays/Situational Exercises
Designed to assess how you react in certain situations, these help to
highlight particular skills and how well you’re suited for a position. You may be given facts
and figures to review, or a report to complete; we may also have an assessor acting as a
customer or employee to simulate a situation that could occur in the workplace. Don’t
worry, you’ll be given a brief and ample time to prepare.
Training process of employees
Training process is essential part of every employee without training,
employee cannot come to now the procedure of work, rules and regulations of firm,
sometimes when new technology is introduced it is also responsibility of a firm to train its
employees.
After recruiting the fresh employee we train them for three months and also
pay them salaries after three months they become part of a firm.
We also give training to already exist employee it depend upon condition for
example if new technology is introduced first of all we give full training to them about new
technology then we allow them to start their job.
Performance appraisal
Coca cola performance appraisal is annually Hr manger waqar mahmood
said that we appraise the employee due to their performance about goals of the
organization. We set the goals started the year and tell the employees about the goal if
the employees achieve this goal we appraise the employees.
Compensation and benefits
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Objective of compensation is our compensation objective is to improve
performance of employees and convey a message to employees that company is loyal
with employees.
HR department manage says that employees are our assets, there for we
are careful about their health and benefits. We give following compensation and benefits:
 Basic salary
 Bonus
 Medical facility
 Pick and drop
 Gratuity fund
 Social security
We get many advantages from our employees because they are happy
from company. Our employees are satisfy from our compensation and in the coca cola
never downsizing occurred which shows that well relationship between employees and
company.
EMPLOYEES RELATIONSHIP
Employees are the most important assets of every company so it is very
important to give them importance. The satisfaction of the employees makes the
company successful. The reason is that if the employees of the company are satisfied
then they will work hard for the development of the company but if they are not satisfied
with the company’s policies and they are not given their rights then they will leave the
company which can turn into a big loss. So employees’ relationship is very important for
every company.
Every company has its own policy. We have also got our own policy by
which we give importance to our employees if any employee faces some kind of problem
related to his life or work then he can directly go to the manager and he can share all of
38

his problems. This thing should be adopted by every company because this makes the
employee satisfied with the company.
We believe that an open door policy is the best policy for employees’
relations because due to this, our employees feel very independent and they know that if
they get any problem, they can contact directly to the manager of their department. So
we strongly believe that such policy makes our employees satisfy with us.
Safety Policy
We at CCBPL Gujranwala are committed to ensure the maximum level of
safety and prevention of loss for our employees, assets and visitors. We believe in the
involvement of each and every one of us in this effort and realize the importance of every
individual’s contribution to safety. We strive for continuous improvement in our safety
standards and to the consistently meet or exceed them. We therefore, will make certain
that the necessary financial and personnel resources are made available in order to
continuously improve our safety standards. With this belief we vow to.
Set our safety standard at a level that ensures compliance with
governmental and company requirements. Protect our employees and ensure public
safety extending throughout our organization.
Integrate sound safety practices in to our daily business operation even in
the absence of specific regulatory requirements use the results of research and new
technology to minimizing the safety risks of our operations equipment, products and
packages taking in to account the associate costs or profit for each safety benefits.
Ensure each and every one to use in responsible and accountable for our
actions. Establish mechanisms to communicate effectively with employees Consumers and
government on our safety performance. We believe in safety. We adhere to our safety
principles. We deliver.
H R Department Chart
39

FIGURE NO-2.4.1
2.5 Production Functions
Production department
The production department is headed by a factory manager who reports
directly to the Area General Manger (AGM) .one engineer is so far inn side battery limit
40

i.e. plant equipments and maintenance and the second engineer is for outside battery
limits; for the utilities like generate room, boiler, water treatment plant and the Maaza
unit which is located at same distance, these four people report to the plant manager.
There are 165 workers in the plant, which includes women, who are
otherwise engaged in housekeeping into the production line. Depending on the demand,
the company operates three types of shifts.
1. General shift : 8a.m to 5pm
2. Second shifts : 6am to 2pm to10pm
3. 24’hours : 6am to6pm and6pm to 6am
Women are employed only in the general shift (8am to 5pm) o the ‘a’
shift (6am to 2pm).in the other shifts, casual labours are used.
Stages in production process:
1. Water treatment
2. Raw syrup making
3. Ready syrup making
4. Bottling process
5. Quality control
Production schedule
The production schedule fixed daily by taking into consideration the market
demand, the availability of empty bottles and inventory position of filled bottles. The
storage capacity of the godown is at present 90,000 crates, which also limits the
production schedule. The production schedule for each brand is fixed daily. Production is
41

generally carried out in two shifts. In summer, the demand its peak and production will be
extended 12 hours shifts.
Raw materials
Raw materials are the flavors essence concentrate supplied by parley, sugar
and water sugar purchased in bulk from the wholesale sugar market. The requirement of
sugar for 20-25 production days kept in stock in stoke and requirement for a month
intended in advance. Water required met by municipal supply, water from bore well and
tube wells also used when required. Water further treated with chemicals. Caps are
supplied by specialized firms like L&T and metal box India ltd.
Ingredients
1. Water
2. Sugar
3. Co2
4. Flavors (for soda only water, co2 in used).
Quality assurance department
The quality assurance department is headed by plant manager. In addition
to him there are 7 chemists. The deputy manager reports to the plant manager. The
department tests and controls the quality of water, caustic solution and the final
beverage. The final beverage is tested for gas and bricks i.e. the sugar content.
2.6 MARKETING FUNCTION
Sales department
The sales department has a general sales manager and three associates’
sales managers. Of the three sales managers, one person is in charges of city sales while
the other looks after district and Orissa sales. All of report to AGM directly, Is interacts
with sales department on daily basis and virtually leads the teams.
42

District sales
In addition to the sales manager, there is a deputy sales manager, four
assistance sales manager and below the two salesmen each distributor. From the
distributor it reaches the retailer outlet. The company sales force helps the retailer and
distributor achieve their targets promotions and other incentives. The sales forced in far
locations report to the sales manager once in a weak. Based on their reports, new
incentive schemes and offers are made. The previous week’s performance is evaluated
and targets for the next week.
City sales
Under the sales manager (city), there are supervisor, staffs and 113 field
forces. The company has no distributors in the city of Visakhapatnam. They directly
supply to the retailers. There are 30 routes with trunks covering each route. Each trunk is
accompanied by sales man and two sales helpers. There is a sales officer for every two
routes. He moves around on a hike and sees to it that are outlets are covered. Any urgent
messages are communicated to the sales force through mobiles there are approximately
5600 outlets in Visakhapatnam city. In lop areas i.e. Areas where company trunk cannot
go, a fat dealer is appointed.
Customer service support system
There is customer service support system (CSSS), which functions under
the CSSS for entire Andhra Pradesh, locally it reports to the AGM. In the soft industry, the
customer and consumer are defined separately.
Consumer response co-ordination unit (CRC)
The consumer response co-ordination unit has the sales manager the unit’s
temporarily handle by the CSSS. The CRC unit receives complaints and grievance from
the market either through phone calls or through sales force. It sends regular reports to
the corporate office.
Distribution pattern:
Direct operation
43

Indirect operation
Marketing mix
In the early 1960’s, Professor Neil Borden at Harvard business school
identified a no of company performance action that can influence the consumer decision
to purchase goods or services. Borden suggested that all those actions of the company
represented a “marketing mix”. Professor e. Jerome mc carthy, also at the Harvard
business school in the early 1960’s, suggested that the marketing mix contained four
elements: product, price, place, and promotion.
Diagram
In popular usage “marketing” is the promotion of products especially advertising
and branding. However in professional usage the term as a wider meaning, which
44
Plant Plant Plant Plant
Plant
Area
marketing
C&F Distributo
r
Customer
s
Consumers
Super
stockiest Route
agents

recognize the marketing is customer cantered. Products often developed to meet the
desires of groups of customers or event, in some cases for specific customers.
The four p’s are
The product aspects of marketing deal with the specification of the actual
goods or services and how it relates to the end user needs and wants. The scope of a
product generally includes supporting elements such as warranties, guarantees, and
support.
Price: this refers to the process of setting, a price for a product, including discounts. The
price need not be monetary- it can simply be what exchanged for the product or services
Promotion: this includes advertising, sales promotion, publicity, and personal selling,
branding and refers to the various methods of product, brand, or company,
Place (or distribution): refers to how the product gets to the customer; for example,
point of sale placement or retailing this fourth p generally to the channel by which a
product segment (young adults, families, business people), etc.
These four elements are often referred to as the marketing mix, which a
marketer can use to craft a marketing plan.
2.7 RESEARCH FUNCTIONS
Coca-Cola's most senior executives commissioned a secret effort named
"Project Kansas" headed by marketing vice president Sergio Zyman and Brian Dyson,
president of Coca-Cola USA to test and perfect the new flavor for Coke itself. It took its
name from a famous photo of that state's renowned journalist William Allen White
drinking a Coke that had been used extensively in its advertising and hung on several
executives' walls. The company's marketing department again went out into the field, this
time armed with samples of the possible new drink for taste tests, surveys, and focus
groups.
45

The results of the taste tests were strong the sweeter mixture
overwhelmingly beat both regular Coke and Pepsi. Then tasters were asked if they would
buy and drink it if it were Coca-Cola. Most said yes, they would, although it would take
some getting used to. A small minority, about 10-12%, felt angry and alienated at the
very thought, saying that they might stop drinking Coke altogether. Their presence in
focus groups tended to skew results in a more negative direction as they exerted indirect
peer pressure on other participants.
The surveys, which were given more significance by standard marketing
procedures of the era, were less negative and were key in convincing management to
move forward with a change in the formula for 1985, to coincide with the drink's
centenary. But the focus groups had provided a clue as to how the change would play out
in a public context, a data point that the company downplayed but which was to prove
important later.
Management also considered, but quickly rejected, an idea to simply make
and sell the new flavor as yet another Coke variety. The company's bottlers were already
complaining about absorbing other recent additions into the product line in the wake of
Diet Coke. Many of them had sued over the company's syrup pricing policies. A new
variety of Coke in competition with the main variety could, if successful, also dilute Coke’s
existing sales and increase the proportion of Pepsi drinkers relative to Coke drinkers.
Early in his career with Coca-Cola, Goizueta had been in charge of the
company's Bahamian subsidiary. In that capacity, he had improved sales by tweaking the
drink's flavor slightly, so he was receptive to the idea that changes to the taste of Coke
could lead to increased profits. He believed it would be "New Coke or no Coke", and the
change must take place openly. He insisted that the containers carry the "NEW!" label,
which gave the drink its popular name.
Goizueta also made a visit to his mentor and predecessor as the company's
chief executive, the ailing Robert W. Woodruff, who had built Coke into an international
brand following World War II. He claimed he had secured Woodruff's blessing for the
46

reformulation, but even many of Goizueta's closest friends within the company doubt that
Woodruff truly understood what Goizueta intended. Goizueta always said he had.
2.8 FUTURE PLANS
This report is to investigate Coca Cola Company. On this coursework I will
look at the company on all aspects from their business functions, organizational structures
to the company's objectives. I would have to look at the departments within the business
and the functional areas within these departments, also look at the different management
styles within the business, looking at the organizational structure, the communication
used within the business, and the impact of ICT on the organizations communications.
The Coca-Cola Company is the world's leading manufacturer,
marketer and distributor of non-alcoholic beverage concentrates and syrups. Along with
Coca Cola, the world's best known brand, The Coca Cola Company markets four of the
world's top-five soft drink brands, including Diet Coke, Fanta and Sprite. Throughout the
world, no other brand is an immediately recognizable as Coca Cola. With operations in
more than 200 countries, a diverse workforce comprised of more than 200 different
nationalities, The Coca Cola Company is part of the fabric of life in each of the
communities they serve throughout the world. It operates as a local business partner,
providing quality in the marketplace, enhancing the workplace.
Coca-Cola is the most popular and biggest-selling soft drink in history, as
well as the best-known product in the world. Coca-Cola was invented in May 1886 by Dr.
John S. Pemberton in Atlanta, Georgia. The name 'Coca-Cola' was suggested by Dr.
Pemberton's bookkeeper, Frank Robinson. He kept the name Coca-Cola in the flowing
script that is famous today. Coca-Cola was first sold at a soda fountain by mixing Coca-
Cola syrup with carbonated soda in Jacob's Pharmacy in Atlanta by Willis Venable. During
the first year, sales of Coca-Cola averaged nine drinks a day, adding up to total sales for
that year of $50. Since the year's expenses were just over $70, Dr. Pemberton took a
loss. Today, products of The Coca-Cola Company are consumed at the rate of more than
one billion drinks per day.
47

In 1893, Coca Cola was registered in the United States and then further
investment was put into it to expand the business. To handle the enormous capacity of its
business, the Coca Cola Company has divided up into six operating units: Middle and Far
East Groups, Europe, The Latin America Group, The North America, The Africa Group and
The Minute Maid Company. The Head Quarters is situated in the United States. The
country that I'm going to be concentrating on is the United Kingdom and how the
company works in the U.K.
I drew up this action plan as a guide to priorities what information I need to
complete this report. The method of research I will use the most on this report will be
secondary research such as the annual reports, etc.
Coca Cola also have limited liability as they are a public limited company. A
limited company is owned by its shareholders. There is no legal maximum to the number
of shareholders. There are two forms of Limited Liability Company in the UK, the Private
Limited Company (Ltd) and the Public Limited Company (Plc). The essential difference,
between the two, is that the Private Limited Company cannot legally offers its shares to
the general 'public', therefore this form of company is usually associated with family run
businesses. Whilst the Public Limited Company can sell its shares to the general public on
the Stock Exchange, providing the potential for far greater finances to be raised.
The owners of a limited company are referred to as its members, or
shareholders. An individual can become an owner of the business by purchasing shares in
that business. When the profits of the business are distributed to shareholders, they are
distributed in the form of a dividend. The value of the dividend is decided upon not by the
owners, but by the Directors of the business.
Some shareholders had invested their life savings and not only lost their
money, but their homes, limited liability was designed to protect shareholders from this
mistake, but the key motive was to ensure that large projects could continue to raise
capital. Coca Cola's Objectives of the Company.
48

Mainly all companies' objectives are to survive, maximize their profits and to
expand their business, however, from when Coca Cola had started, over the years they
had achieved these objectives. So the company has come up with six strategic objectives
to provide the company with a framework for the company's success. In 2003, every
function of The Coca-Cola Company integrated these priorities into their business plans.
And this year, they will continue to establish these priorities, and their benefits into every
aspect of the business.
2.9 OTHER INFORMATION
Coca-Cola is a carbonated soft drink sold in stores, restaurants, and
vending machines internationally. The Coca-Cola Company claims that the beverage is
sold in more than 200 countries. It is produced by The Coca-Cola Company in Atlanta,
Georgia, and is often referred to simply as Coke (a registered trademark of The Coca-Cola
Company in the United States since March 27, 1944). Originally intended as a patent
medicine when it was invented in the late 19th century by John Pemberton, Coca-Cola
was bought out by businessman Asa Griggs Candler, whose marketing tactics led Coke to
its dominance of the world soft-drink market throughout the 20th century.
The Coca Cola is a beverage company, manufacturer, distributor, and
marketer of non-alcoholic beverage concentrates and syrups. The company is best known
for its flagship product Coca-Cola invented by pharmacist John Stith Pemberton in 1886.
The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated
The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola
currently offers more than 400 brands in over 200 countries or territories and serves 1.6
billion servings each day.
Coke is it -- it being the world #1 soft-drink company. The Coca-Cola
Company (TCCC) owns four of the top five soft-drink brands (Coca-Cola, Diet Coke,
Fanta, and Sprite), Its other brands include Minute Maid, PowerAde, and Dasani water. In
North America it sells Group Danon&s Evian; it also sells brands from Dr Pepper Snapple
Group (Crush, Dr Pepper, and Schweppes) outside Australia, Europe, and North America.
49

The firm makes or licenses more than 3,000 drinks under 500 brand names in some 200
nations. Although it does no bottling itself, Coke owns 34% of the world’s #1 Coke bottler
Coca-Cola Enterprises (CCE); 32% of Mexico’s bottler Coca-Cola FEMSA; and 23% of
European bottler Coca-Cola Hellenic Bottling.
OVER VIEW
Coca-Cola® were invented by Atlanta pharmacist, John Stith Pemberton in
1886, since that time The Coca-Cola Company has grown to represent over 400 different
brands in 200 countries.
Coca-Cola Ltd. (CCL) is responsible for developing and marketing the
brands of The Coca-Cola Company, and various other brands, to consumers in Canada,
and for the protection of our trademarks here in Canada. CCL is a subsidiary of the Coca-
Cola Company, the world’s leading Beverage Company, with worldwide headquarters in
Atlanta, Georgia. In addition, Coca-Cola Ltd. owns and operates The Minute Maid
Company Canada Inc.
Coca-Cola Bottling Company (CCBC) is our local primary Canadian bottler
responsible for manufacturing, sales and distribution of most Coca-Cola brands in Canada.
CCBC is a division of Coca-Cola Enterprises, the world’s largest Coca-Cola bottler.
The two partner organizations, CCL and CCBC, represent one beverage
provider ‘system’ which collectively employs over 5,000 people across Canada.
Coca-Cola® beverages have been sold and distributed in Canada for more
than one hundred years. In 1906, the first Canadian-made Coca-Cola® bottles came off
the production line at 65 Bell woods Avenue in Toronto. Today, the Coca-Cola system in
Canada has seven production plants and employs approximately 5,500 employees in more
than 60 sales centers and satellite locations in all 10 provinces.
The Coca-Cola Company is a vibrant network of people, in more than 200
countries. putting citizenship into action. Through our actions as local citizens, we strive
every day to refresh the marketplace, enrich the workplace, protect the environment and
strengthen our communities.
Corporate citizenship
50

Our efforts to identify solutions to environmental challenges, we seek the
cooperation of public, private and governmental organizations. We direct our company’s
skills, energies and resources toward activities and issues where we are confident of
making a powerful and effective contribution.
The Coca-Cola Identity
We are stewards of brands universally recognized for quality and consistency.
Maintaining an established standard of excellence in our business conduct is essential if
we are to continue to be trusted neighbors in the communities where we do business. Our
efforts towards environmental management exhibit this level excellence at the local,
division, and corporate levels. We will take progressive actions that focus on minimizing
our impact on the environment while striving towards continuous improvement.
We act responsibly, doing the right thing with regard to the local and global
environment as we build and nurture strong brands.
As responsible stewards of the environment and our brands, we will take
progressive actions that focus on minimizing our impact on the environment and strive for
continuous improvement.
Our goal is to be environment management leaders in the communities where we
conduct business. We provide leadership in three critical areas:
• Water efficiency and water quality
• Energy efficiency
• Eliminating or minimizing solid waste
Our activities focus on community involvement based on understanding local and
global environmental issues, leadership on research to provide innovative solutions, and
open and ongoing dialogue on our environmental efforts.
Coca-Cola headquarters
The Coca-Cola Headquarters is a campus in Midtown Atlanta, Georgia that is home
to The Coca-Cola Company. The most visible building on the site is a 29-story, 403—foot
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(122.8 m) high One Coca-Cola Plaza. located on the corner of North Aven and Luckie
Street. Completed in 1979, the architects were FABRAP and the designer Torn Pardue.
Mission
Our Roadmap starts with our mission, which is enduring. It declares our purpose as a
company and serves as the standard against which we weigh our actions and decisions.
• To refresh the world...
• To inspire moments of optimism and happiness...
• To create value and make a difference
Vision
Our vision serves as the framework for our Roadmap and guides every aspect of our
business by describing what we need to accomplish in order to continue achieving
sustainable, quality growth.
• People: Be a great place to work where people are inspired to be the best they can
be.
• Portfolio: Bring to the world a portfolio of quality beverage brands that anticipate
and satisfy people’s desires and needs.
• Partners: Nurture a winning network of customers and suppliers, together we
create mutual, enduring value.
• Planet: Be a responsible citizen that makes a difference by helping build and
support sustainable communities.
• Profit: Maximize long-term return to shareowners while being mindful of our overall
responsibilities.
• Productivity: Be a highly effective, lean and fast-moving organization.
Values
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Our values serve as a compass for our actions and describe how we behave
in the world.
• Leadership: The courage to shape a better future
• Collaboration: Leverage collective genius
• Integrity: Be real
• Accountability: If it is to be, it’s up to me
• Passion: Committed in heart and mind
• Diversity: As inclusive as our brands
• Quality: What we do, we do well
Focus on the Market
• Focus on needs of our consumers, customers and franchise partners
• Get out into the market and listen, observe and learn
• Possess a world view
• Focus on execution in the marketplace every day
• Be insatiably curious
Work Smart
• Act with urgency
• Remain responsive to change
• Have the courage to change course when needed
• Remain constructively discontent
• Work efficiently
Act like Owners
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• Be accountable for our actions and inactions
• Steward system assets and focus on building value
• Reward our people for taking risks and finding better ways to solve problems
• Learn from our outcomes -- what worked and what didn’t
Be the Brand
• Inspire creativity, passion, optimism and fun
CEO
Muhtar Kent is Chairman of the Board and Chief Executive Officer of The Coca-Cola
Company.
Coca-Cola in India
Coca-Cola the corporation nourishing the global community with the world’s largest
selling soft drink concentrates since 1886, returned to India in 1993 after a 16 year
hiatus, giving new thumbs up to the Indian soft drink market. In the same year, the
Company took over ownership of the nation’s top soft-drink brand and bottling network.
It’s no wonder our brands have assumed an iconic status in the minds of the world’s
consumers.
Company Portfolio
Our Company continues to expand our beverage portfolio in order to meet
consumers evolving needs and preferences. We currently offer more than 3,300 Coca-
Cola beverages around the world. Visit our Products section to learn about beverage
variety, product safety and quality, nutrition, hydration, sweeteners and how our
beverages can fit into your healthy, active lifestyle.
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Brand logos:-
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The various flavors and sub- brands are fallows:-
CSD (Carbonated soft drinks)
• Coca — Cola
• ThumsUp
• Limca
• Sprite
• Fanta
• Mazaa
• Pulpy Orange
• Minute maid nimbu fresh
CEO COCA COLA INDIA
Atul Singh
(President, India and South West Asia Business Unit).
Atul Singh is the President of Coca-Cola India and South West Asia Business
Unit, a responsibility that he took over on September 1, 2005. He was earlier the
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President of East, Central & South (ECS) China Division of Coca-Cola. Atul is responsible
for Coca Cola’s operations in India, Sri Lanka, Bangladesh, Bhutan, Nepal and the
Maldives.
Coca cola beverages president & CEO
President : Atul Singh
CEO : Tirumalai Krishna Kumar
Coca-Cola India Head – Quarters
Company Coca Cola India,
Contact Person Alexander Von Behr, Dr. G.m.Tiwari,
Address Enkaya Towers, Udyog Vihar-v, Gurgaon,
State Haryana,
Zip/Pin 122106,
Country India,
Tel 0124-2648041/ 571,
Fax 0124-26348144/ 146,
Info Sweetened Carbonated No-alcoholic Beverages, Ready-to-serve
Beverages.
Coca-Cola India Vizag:
Company Coca Cola India,
Address Coca-Cola, Murali nagar,NH-5,
State Andhra Pradesh,
District Visakhapatnam – 530016.
Coca-Cola international level
CCSF Coca-Cola Food Service
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Innovation is always on tap with Coca-Cola Food Service (CCFS). Restaurateurs
can find ways to increase sales, better manage personnel, increase profits and grow the
business through CCFS. Bringing creativity and consumer and industry insights to food
and beverage operators, CCFS offers operators ways to build and sustain profit and
growth and develop their brands.
Coca-Cola beverages
Coca-Cola is worldwide leader in beverage innovation and creativity, throughout
its 122-years ownership of the world most valuable brand and producing currently 2800
beverages , Coke takes pride in being a product and service innovator in 50 countries
Where in operates. On Guam, the northern Mariana Islands and all over Micronesia, Coca-
Cola exemplifies this leadership in innovation as its regularly introduce new quality
products to the region.
Market share
The market share of Coca-Cola is shown in the following table.
Coca-Cola India’s consolidated share of carbonated soft drinks is 57.8%,
Four Coca-Cola brands have market shares of over 10%.
Coca-cola & Thums up 25.6%
Sprite 12.2%
Limca 10.9%
Fanta 10.0%
Achievements
Coca-Cola is one of the Warren Buffet’s Top 5 holding Company.
• Re entering in India 1993.
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• Introducing of Kinley water bottle in the year 1994.
• Starting of Coca-Cola online in the year 1996.
• Celebrating a 100 anniversary with first world wide bottle conference in the year
1985.
• I time of introducing 2 liters, plastic bottles with bottle grip handle.
Coca-Cola India Private Limited
Company Overview
Coca-Cola India Private Limited produces carbonated drinks. It offers soft drinks,
juice drinks, fruit drinks, and bottled water, as well as ice tea and cold coffees. The
company was founded in 1993 and is based in Gurgaon, India. Coca-Cola India Private
Limited operates as a subsidiary of Coca-Cola South Asia Holdings, Inc.
Key Executives
Mr. Atul Singh
Chief Executive Officer and President -
Mr. Deepak Jolly
Vice President of Public Affairs and Communications
Mr. Richard L. Miller
Regional Vice President of North
Ms. Sangeeta Pendurkar
Vice President of Strategy
Mr. Viraj Chouhan
Senior Manager of Corporate Communications
Description of Products
Sprite Clear Lemon
Fanta Orange
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Maaza Mango
Pulpy Orange Pure Orange
Minute Maid Nimbu Lemon
Kinley Pure Water
Coca-Cola’s Brand order
COLOJK
Co - Cola - Coke, Thums up.
L - Lemon - Sprite, Limca
0 - Orange- Fantà
J - Juice - Mazaa, Pulpy, Nimbu fresh
K - Kinley - Soda, water
Generally Shops are called Outlets, These out lets are 4 type
There is
• Convenience out lets
• Grocery out lets
• E&D-l
• E&D-2
Contents of out lets
Convenience Outlets : It had all type of items available.
Ex: pan shops,
STD points etc.
Grocery Out lets : It was located on bus stops and public spots.
Ex: Busy malls, provision stores, large shops etc.
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E&D -l : wine shops , Lodges etc.
E&D -2 : Bar and Restaurants, Hotels etc.
In sales purpose outlets (channels) are divided 4 types, that is
• Diamond- 800 cases (+) per. Annum
• Gold - 500 to 799 cases p.a
• Silver -200 to 499 cases p.a
• Bronze - 1 to 199 cases p.a
In Income purpose Outlets (Channels) are divided 3 types, that is
• High level Income
• Medium level income
• Low level income
Mostly Coca-Cola using 2 types of Coolers, that is
• Visi Cooler
• Chest Cooler
Coca-Cola provides different outlets for different Coolers.
Cooler Size (Cases) Out Let (Channel)
4 Bronze
7 Silver
9 Gold
10 Gold
15 Diamond
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20 Diamond
30 Diamond
Types of Products available sizes
200 ml Coke, Thums Up, Limca, Sprite, Fanta, Mazaa, And Mazaa Tetra
250ml Mazaa-RCB
300 ml Coke, Thums Up, Limca, sprite, Fanta, kinley -RGB
330 ml Coke. Thums, sprite, Fanta cans or tins.
350 ml Coke, Thurns Up, Lirnca, sprite, Fanta —Pet- Xpress pack
600 ml Coke, Thums Up, Lirnca,sprite, Fanta, Mazaa — pet,mobile pack
400 ml Minuete maid, Pulpy orange, Nimbu fresh Mobile pack
1.25 ml Coke, Thums Up, Limca, sprite, Fanta — fridge pack
2 let Coke, Thums Up, Limca, sprite, Fanta — party pack
1 .2 let Mazaa
1 .2 let Pulpy orange
500 ml Soda
1.5 let Soda
500 ml Water
1 let Water
2 let Water
Types of Drinks
• SSD - Sparkling soft drink
• CSD - Carbonated soft drink
• RGB - Returnable glass bottle
• PET - Poly ethylene turf ethylated
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Coca-Cola took order booking 2 types, i.e.,
• Line order
• Alternate order
Line order booking: it had order taken every day. Regularly Coca cola follows this order.
Alternative Order booking: it had order taken every 3days at once. Sometimes
company fallows these order.
PLANT LAY-OUT
The lay-out of the bottling plant of Coca-cola vizag confirms to the products on
lines lay-out. The machines and equipment have been imported from Germany, which
products the best capital investment in the World. The machinery and all the equipments
is arranged according to the sequence of operations, the machines and workers are
specialized in drink industry. They are specialized in operations such as the syrup, clearing
the bottles, filling the bottles. Crating and sealing the bottles with crown. All these
operations are carried on a continuous movement.
THE REASONS FOR CHOOSING THE PRODUCT LAY-OUT
• There is continuous supply of material.
• The brands are all standardized products.
• The demand for products brands are reasonable stable.
• The volume of production is adequate for the reasonable utilization of equipment.
Due to above reasons the product lay-out offers certain advantages. The
production cycle is speedier up. Since the company follows a continuous movement, the
cost of material handling goes low. The total floor space required by the machine is less
than for other types of plant lay-outs.
PLANT CAPACITY
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The company installed latest up to automatic plant confirming to plant lay-
out. The capacity of the plant is 24000 bottles per hour i.e., at the speed on the 400
B.P.M. implying 400 bottles per minute. In the months from March to June, the plant is
used to its full capacity by running their shifts every day. Each shift consists of 8 hours.
So, during the summer season the plant is run round the clock, i.e., 24 hour. This is
because the demand reaches its peak in its summer months. The company has to produce
enough bottles of soft drinks at a speed to keep in pace with the disappearance of soft
drinks from the shelves of the retailers.
PRODUCTION SCHEDULE
The production schedule is fixed by taking into consideration the present or
current market demand, the availability of empty bottles and also the inventory position
of differ flavors.
The production schedule for each brand is fixed daily, filling the bottles of
each brand and flavor. This has an advantage in that the branded products can be
manufactured once at a time. The glass bottles used for filling soft drinks are of the
volumes of containing 300m1 of soft drinks. There are also bottles of 500rnl capacities to
be filled soft drinks.
QUALITY CONTROL
Coca-Cola vizag takes great care to maintain the quality control of the products in
their factory. The bottles are visually examined for impurities continuously, as the bottles
move out. Samples are checked every ten minutes of production time by the chemist for
its quality and hygiene condition. The chemical analysis is also made for flavors, gas
contents and sugar percentages. The appearance, smell and taste of the products are also
checked.
If any defects are noticed the production is suspended and the connection
measures are taken so as to set right the bottling process irregularities, further samples
from each batch are dispatched to the affiliated parent agency company in each week for
quality check up. Moreover, agency of the company also lifts sample from the market at
random for quality checkup at any to make sure that the quality is maintained to the
exact standard of the parent company.
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At the end of the production schedule, daily all the equipment, plant floor
and wet patches are cleaned with bleaching powder of some other solution, the standards
of hygiene maintained inside the production shops are commendable.
SYRUP MAKING
In this process the syrup of a particular is prepared by heating sugar with
activated carbon power and filter aid (Hyfloces super cell) in treatment tank for a
specified time and up to a particular temperature. During the treatment most of the
colors, odor and some Organic impurities are removed from sugar syrup. This treated
syrup then passed through filter press, fitted with filter papers and heat exchangers and
clear syrup is collected in the syrup making tank, the essence of particular product will be
added for which a required.
Amount sugar is taken for treatment. Sugar syrup and essence are mixed in the
tank with the help of mechanical stirrer and eventually the flavor syrup is ready to be
used in the end use product.
WATER TREATMENT
This is the second in the process of soft drink manufacture. Water is the basic
ingredient in the soft drink, which comprises up to 90% of the quality. Hence, the quality
of water is brought to treatment tank and then water treatment chemicals such as
hydrated lime, bleaching powdered Ferro sulphate are added to the tank and mix
thoroughly with the help of mechanical stirrer.
THE REASONSFOR WATER TREATMENTS ARE
• It removes hardness and converts the water into soft water.
• It frees the water from micro organism• Reduces the alkalinity to a required level.
• Removes suspended matter in water.
This treated water passes though the specially designed filtration plant
containing chemical such activated carbon ( granular) and finally the manufacturer will
get the water suitable for soft drink bottling. For maintaining equipments in hygiene
conditions soda bicarbonate is used.
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BOTTLING
In this process both the concentrate and the purified water are mixed
together along with carbon dioxide gas and then bottled. In soft drinks field, only reusable
glass bottles sparkling clean and they are sterilized before the beverage is filled. For this
purpose the company makes use of machine known as’ Bottle Washer’. For cleaning of
bottles washing chemicals such as caustic soda and tn-sodium phosphate are used. In the
bottle washing system, in one end of washer the dirty bottles are fed and the bottles are
washed automatically while passing through various designed chambers containing
chemical solutions at different temperatures and concentration. Hot water is used for
cleaning the bottles. The bottles, after sterilization are collected at the other end of the
washer. They are then sending towards ‘Filler’ on conveyor belts. Before the beverage
reaches the filling machine fit is saturated with carbon dioxide gas in carbonated after
being chilled.
This carbon dioxide gas gives ‘Fizz’ to the soft drinks and along side pro larges the
shelf life of the products.
The bottles then are moved on the conveyor belts to the filling machines where
the beverage is filled under pressure and bottles are sent to the crowner where sealing is
done with the help of crowns. The crowns are used to retain the carbonation, flavors as
well as to protect the products form spoilage and contamination.
CRATING
The bottles collected from conveyor belts area placed manually into plastic
crakes. Each plastic case has capacity of 24 bottles. These crakes protect the bottles from
breakage and for easy handling of bottles. These crakes are put on specially designed
vans for carrying bottles and are sent to various consumption points.
DISTRIBUTION SETUP
Coca-Cola India pvt Ltd. Covers the five district of the territory through 172
distributors appointed at various locations for secondary di
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Coca-Cola India., REACHES THE 2200 OUTLETS OF Vizag city trough its four
dealers. Each dealer is assigned a specific area which is further divided.. Dealer is given to
salesmen depending upon the potential of his route.
The total covered by the plant is put to around 15,000 nos., in the five
districts in the Visakhapatnam city contributes to 2200 put lets.
CHAPTER – III
THEORETICAL REVIEW
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3.1 INTRODUCTION TO PERFORMANCE APPRAISAL
Appraising the performance of individuals, groups and organizations are a common
practice of all societies. In some instances these appraisal processes are structured and
formally sanctioned, in other instances they are an informal and integral part of daily
activities. Teachers evaluate the performance of students, bankers evaluate the
performance of creditors, parents evaluate the behavior of their children and all of us,
consciously or unconsciously evaluate our own actions from time to time. In social
interactions, performance is conducted in a systematic and planned manner to achieve
widespread popularity in recent years.
Performance appraisal is the process of obtaining, analyzing and recording
information about the relative worth of an employee. The focus of the performance
appraisal is measuring and improving the actual performance of the employee and also
the future potential of the employee. Its aim is to measure what an employee does.
Definition
According to Flippo, a prominent personality in the field of Human resources,
"performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his present job and his potential for a
better job." Performance appraisal is a systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for his future
Performance appraisal is the systematic description of employee’s job relevant strength
and weakness. The purpose is to find out how well the employee is performing his job and
establish a plan of improvement. Performance appraisal is arranged periodically according
to a definite plan. Performance appraisal is not job evaluation. Performance appraisal
refers to how well someone is doing the assigned job. Job evaluation determines how
much a job is worth to the organization and, therefore, what range of pay should be
assigned to the job.
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3.2 History of Performance Appraisal
Its roots in the early 20th
centuary can be traced to taylor’s pioneering time and
motion studies as a distinct and formal management procedure used in the evaluation of
work performance, appraisal really dates from the time of the second world war- not more
than 60 years ago.
Performance appraisal systems began as simple methods of income
justification.that is, appraisal was used to decide whether or not salary or wageof an
individual employee was justified.
The process was firmly linke to material outcomes.if an employees’ performance
was found to be less than ideal, a cut in a pay would follow. On the other hand, if their
performance wasbetter than the supervisor expected, a pay rise was in order. Little
consideration was given to the developmental possibilities of an appraisal, it was felt that
a cut in pay, or a rise, should provide the only required impetus for an employee to either
improve or continue to perform well.
It was felt that employees with roughly equal work abilities could be provided with
same amount of money, but they had different levels of morale, motivation &
performance. So basically the payment structure was focused on the amount of work
rather than the outcome. Morale and self-esteem was the issue which had a major
impact on the performance of different individuals.
As a result, the traditional emphasis on reward outcomes was progressively
rejected. In the 1950’s in the United States, the potential usefulness of appraisal as tool
for motivation and development was gradually recognized. The general model of the
performance appraisal, as it is known today, began from that time.
3.3 Objectives of Performance appraisal
• To review the performance of the employees over a given period of time.
• To judge the gap between the actual and the desired performance.
• To help the management in exercising organizational control.
• Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
• To diagnose the strengths and weaknesses of the individuals so as to identify the
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training and development needs of the future.
• To provide feedback to the employees regarding their past performance.
• Provide information to assist in the other personal decisions in the organization.
• Provide clarity of the expectations and responsibilities of the functions to be
performed by the employees.
• To judge the effectiveness of the other human resource functions of the
organization such as recruitment, selection, training and development.
• To reduce the grievances of the employees
3.4 Purpose of performance appraisal
1 To create and maintain a satisfactory level of performance
2 To provide fed back.
3 To plan career goals of employees to identify career potential.
4 To provide important data base for management.
5 To fair and equitable compensation based on performance.
6 To identify training & development programmes.
7 To help in promotional decisions.
8 Contribute to employee’s personal growth and development.
3.5 IMPORTANCE OF PERFORMANCE APPRAISAL
Performance appraisal is an essential and inescapable managerial activity.
Appraisal is necessary for all important decisions relating to people, such as placement
and promotion, remuneration and reward, training and development, as well as long-term
man power planning and organization development. In recent years, efforts have been
made to use appraisal systems for motivation, for more effective communication, for
strengthening superior-subordinate relationships, for goal setting and work planning and
for improving the total performance of the organization. But in spite of its importance,
uneasiness about appraisal has been a long-standing feature of management. There is no
doubt during the past three decades, many developments have taken place and many
innovations, have been made in managerial appraisal system. Still, many issues remain
unresolved. Available literature on the subject reveals than even in the western countries,
where systematic appraisals have been widely practice over a much longer period than in
India and where a fair amount of empirical as well as theoretical research on the relevant
70

issues has been conducted, serious doubts continue to persist about various aspects of
appraisal.
3.6 Approaches to Performance Development
Performance appraisal - Traditional approach
Traditionally, performance appraisal has been used as just a method for
determining and justifying the salaries of the employees. Than it began to be used a tool
for determining rewards (a rise in the pay) and punishments (a cut in the pay) for the
past performance of the employees.
This approach was a past oriented approach which focused only on the past
performance of the employees i.e. during a past specified period of time. This approach
did not consider the developmental aspects of the employee performance i.e. his training
and development needs or career developmental possibilities. The primary concern of the
traditional approach is to judge the performance of the organization as a whole by the
past performances of its employees.
Therefore, this approach is also called as the overall approach. In 1950s the
performance appraisal was recognized as a complete system in itself and the Modern
Approach to performance appraisal was developed.
Performance appraisal - Modern approach
The modern approach to performance development has made the performance
appraisal process more formal and structured. Now, the performance appraisal is taken as
a tool to identify better performing employees from others, employees’ training needs,
career development paths, rewards and bonuses and their promotions to the next levels.
Appraisals have become a continuous and periodic activity in the organizations.
The results of performance appraisals are used to take various other HR decisions like
promotions, demotions, transfers, training and development, reward outcomes. The
modern approach to performance appraisals includes a feedback process that helps to
strengthen the relationships between superiors and subordinates and improve
communication throughout the organization.
METHODS OF APPRAISAL
71
TRADITIONAL METHODS MODERN METHODS

1. Rating scales 1. Management by objective
2. Checklist 2. 360 degree appraisal
3. Forced choice method 3. Assessment centers
4. Forced distribution method
5. Critical incident method
6. Performance tests and observations
7. Essay method
8. Behaviorally anchored method
Traditional Methods
1. Rating scales
This is the simplest and most popular technique for appraising employee
performance. The typical rating system consists of several numerical scales, each
representing a job related performance criterion such as dependability initiative,
output, attendance, attitude, co-operation, and the appropriate performance level
on each criterion, and then computes the employees total numerical score. The
number of points scored may be linked to salary increases, whereby so many
points equal a rise of some percentage.
2. Checklist
A checklist of statements on the traits of the employee and his/her job is
prepared in two columns via, a ‘yes’ column and a ‘No’ column. All that rater should do
is tick the ‘yes’ column if the answer to the statement is positive and in column ‘No’ if
the answer is negative. After Ticking off against each item, the rater forwards the list.
To the HR department where the actual assessment of the employee takes place. The
HR department assigns certain points to each ‘Yes’ the total score is arrived at. When
points are allotted to the checklist, the technique becomes a weighed checklist.
2. Forced choice method
This approach is known as the forced choice method because the rater is
forced to select the statements, which are readymade. The rater is given a series of
statements about an employee. These statements are arranged in block of two or
more, and the rater indicates, which statement is most or least descriptive of the
employee. As in the checklist method, the rater is simply expected to select the
statements that describe the rate. The HR department does the actual assessment.
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3. Forced distribution method
The forced distribution method seeks to overcome the problem by compelling the
rate to distribute the rates on all points on the rating scale. The second method
operated under an assumption that the employee performance level conforms to a
normal statistical distribution. It is assumed that employee performance levels
conform to a bell-shaped curve. For example, 10% at the top end of the scale is
excellent, 20% good, 40% average, 20% of the lowest grade is below average.
4. Critical incidents method
The approach focuses on certain critical behaviors of an employee that
make all the difference between effective and non-effective performance of a job.
The superiors as and when they occur record such incidents.
5. Performance tests and observations
With a limited number of jobs, employee assessment may be based upon
a test of knowledge or an actual demonstration of skills. The test must be reliable
and validated to be useful. Even then, performance tests are apt to measure
potential more than actual performance.
6. Essay method
Under this method the supervisor makes a free form, open ended appraisal
of an employee in his own words and puts down his impressions about his
impressions about the employee. The description is always as factual and concrete
as possible. No attempt is made to evaluate an employee in a quantitative
manner. The strength or the
The essay method depends on the writing skills and analytical ability of the
rater. The Essay method can consume much time because the rater must collect the
information necessary to develop the essay and then he/she must write it.
8. Behaviorally anchored rating scales
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which
combines the graphic rating scale and critical incidents method. It consists of
predetermined critical areas of job performance or sets of behavioral statements
describing important job performance qualities as good or bad (for eg. the qualities like
73

inter personal relationships, adaptability and reliability, job knowledge etc). These
statements are developed from critical incidents.
In this method, an employee’s actual job behavior is judged against the desired
behavior by recording and comparing the behavior with BARS. Developing and practicing
BARS requires expert knowledge.
MODERN METHODS
1. Management by Objectives (MBO)
The MBO concept as was conceived by Mr. Drucker reflects a management
philosophy that stress goals rather than methods and which values and utilizes employee
contribution. It is result oriented. Application of MBO in the field of performance
appraisal in four steps:
A. To establish the goals each subordinate is to attain. The goals typically refer
to the desired outcome to be achieved; these goals can then by used to
evaluate employee performance.
B. Setting the performance standard for the subordinated in a previously
arranged time period. As subordinates perform they know fairly well there is
to do, what has been done, and what remains to be done.
C. The actual level of goal attainment is compared with the goals that were not
met upon. The evaluator explores reasons for the goals that were not met and
for the goals that were exceeded. This step helps determine possible training
needs.
D. Establishing new goals and, possibly, new strategies for goals not previously
attained. Subordinates who successfully reach the established goals may be
allowed to participate more in the goal setting process the next time. The
process is repeated.
2. 360 degree appraisal
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The 360- degree technique is understood as systematic collection of performance
data on an individual or group, derived from a number of stakeholders. The stakeholders
being the immediate supervisors, team members, customers, peers, and self. Anyone who
has useful information on ‘how an employee does the job’ may be one of the appraisers.
It facilitates greater self development of the employee. It enables an employee to
compare his/her perceptions about self with perceptions of others. By design, the 360
degree appraisal is effective in identifying and measuring interpersonal skills, customer
satisfaction, and team building skills.
3. Assessment centers
An assessment centre is a central location where managers may come together
to have their participation in job related exercises evaluated by trained observers. The
principle idea is to evaluate managers over a period of time, say one to three days, by
observing their behavior across a series of select exercises or work samples. Assesses are
requested to participate in in-nascent exercise work groups(with leaders), role playing,
and other similar activities, which require the same attributes for successful performance,
as in actual job. Self appraisal and peer evaluation are also throwing in for final rating.
The characteristics assessed in a typical assessment centre include assertiveness,
persuasive ability, communicating ability, planning and organization ability, self
confidence, resistance to stress, energy level, decision making, sensitivity to the feeling of
others, administrative ability, creativity, and mental alertness.
3.7 THE APPRAISAL PROCESS
The appraisal process begins with the establishment of performance standards;
these should have evolved out of job analysis and the job description.
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STEPS IN APPRAISAL PROCESS
76

A Study on Performance Appraisal

A Study on Performance Appraisal

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