A SUMMER TRAINING REPORT

ON

PERFORMANCE APPRAISAL

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA)
GURU JAMBHESHWAR UNIVERSITY
HISAR

Training Supervisor Submitted By

Mr. B.K. Jha KHUSHBU YADAV
(Manager - HR & Administration) Enrolment No.: 06511242370

Session- 2006 – 2009

GURU JAMBESHWAR UNIVERSITY

HISAR

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 ACKNOWLEDGMENT

Completing a task is never one man effort. It is often the result of invaluable contribution
of number of individuals in a direct or indirect manner that helps in sharing a making of
success.

I express my gratitude towards the management of USMS and Varun Beverages Ltd.,
Greater Noida for giving me the opportunity to undergo my project report in a
Multinational concern of a great reports and allowing me to gain invaluable experience
with subsequent exposure to the modern business world.

I am extremely grateful to my project guide Mr. B.K. Jha (Manager - HR &

Administration) for completing my project report successfully. His constant support as
well as the guidance, which he gave to me, helped me tide over the difficulties.

I further extend my thanks to all the employees for their appreciation & cooperation
given by them to me in gathering information for the survey.

I would like to extend my heartiest thanks to my guide Mr. Sanjay Dhingra, my class,
friends and for providing me light moments, patience and affection in times of distress
and hopelessness.

Last but not least I bow my head before GOD who has been the ultimate source of the
energy.

KHUSHBU YADAV

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3
 EXECUTIVE SUMMARY

This project takes a look in various kinds of merchandising activities, market share of
Pepsi and Coca Cola and various sales promotion schemes, which are followed in the soft
drink industry. The two major global players i.e. Pepsi and Coca Cola dominate the soft
drink industry in India. India is one of few battlegrounds in the world where there is
neck-to-neck competition between the two. Both the companies claim to be in number
one sport coating the data produced by two different marketing research companies.
Where coke follows ORG data and says it has 57% share, Pepsi follows IMRB data and
says it has 49% market shares in India.

In 2004 the cola war has begun afresh. Coca cola India today claimed that it has
increased its market share form 57 percent in the carbonated soft drink (CSD) Category
in 2002 to 61 percent at the end of December 2003, as per ORG - Marg figures. Pepsi,
however, contested the figures by saying that it market share stood at 47.6 pe4rcent
during the same period and Coca Cola India had a combined market share of only 52.4
percent, as per IMRB figures.

In this cutthroat competition, both of the cola majors have to do something special to the
service. This something special is done in various forms of advertising and sales
promotion schemes provided by the two companies.

Coca cola's 200ml strategy has paid off. New consumers are coming in droves from the
hinterland. This apart, the company undertook a series of cost-cutting measures to ensure
efficient distribution. According to Mr. Sunil Gupta, president Coca Cola India, apart
from the 200 ml strategy, ultra light glass bottles saved transport costs, centralized
procurement of raw material cut down wastage and the hub-and-spoke distribution
system ensured deeper penetration and faster turnaround of returnable glass bottles.

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 TABLE OF CONTENTS

S.NO. TITLE Page

No.
1. INTRODUCTION
1.1 OVERVIEW OF THE INDUSTRY
1.2 PROFILE OF THE COMPANY
1.3 PROBLEMS OF THE COMPANY
1.4 COMPETITION INFORMATION
1.5 SWOT ANLYSIS
2. RESEARCH METHODOLOGY
2.1 SIGNIFICANCE
2.2 MANAGERIAL USEFULNESS OF THE STUDY
2.3 OBJECTIVE OF THE STUDY
2.4 SCOPE OF THE STUDY
2.5 RESEARCH METHODOLOGY
2.6 LIMITATIONS
3. CONCEPTUAL DISCUSSION
4. DATA ANALYSIS
5. FINDINGS AND RECOMMENDATIONS
6. ANNEXURE
7. BIBLIOGRAPHY

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 Chapter 1
INTRODUCTION

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 INTRODUCTION

1.1 OVERVIEW VIEW OF SOFTDRINK INDUSTRY

Soft drink industry scenario the world is almost the same with two major players i.e.
Pepsi Co. and Coca-Cola having the major thank in the pie. The other Major player in the
industry is Cadbury-Schweppes and some local players in individual countries.

The major components of the industry consist of the concentrate manufactures, bottlers
and the sales and distribution network of the companies the rule and responsibilities of
each of the are different. The major activity taken up by the concentrate 2 India fountain
sales form a very insignificant part of the sales revenue. During the initial stages both soft
drinks. Majors used a network of independent bottlers to bottle and market their products.
Independent bottling arose primarily because it was not possible to create an effective
organization for operating a vertically integrated company with hundreds of
geographically separated manufacturing unit and local delivery operation given the
limited transportation and communication system of the time and the lack of
sophisticated financial and management controls.

Although Coca-Cola and Pepsi Cola are premier marketing companies the fundamental
competitive advantage that allowed that to compete so effectively lies in their ability to
operate through a very cumbersome distribution system.

In India after the exist of Coke in 1977 the Indian Soft Drink market was controlled by
Parle and Pure Drinks. By the and of 1970 Campa Cola was practically alone in cola
market Parles introduced Thumsup in the beginning of 1980s. By the and of 80’s Parle
with Limca, Gold Spot and Thums up emerged as clear winner with around 60% market
share.

In the year 1985 Pepsi tried to enter into India when it teamed up with RPG group. This
proposal was rejected on the grounds that the import of concentrate could not be agreed
and the use of foreign brand name was not allowed. In year 1988 Pepsi again floated a
project this time in collaboration with Punjab Agro Industrial Corporation (PIAC) and
Voltas India Limited and succeeded. Finally in June 1990 Pepsi was launched in India

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under the brand name of ‘ Lehar Pepsi’. Taking full advantage of the liberalization
policies of the government Pepsi set up a new company in India called PepsiCo India
Holding Pvt. A wholly around subsidiary Coca Cola company which is a leader in Soft
drink industry returned to India after a gap of 16 years in 1995. The most strategic step
taken by Coca Cola was the purchase of Parle brands. With this coke instantly had the
ownership of countries tap soft drinks brands as well as got access to Parles extensive 54
plant bottling as well as a pre set distribution network.

The Texas soft-drink industry dates from 1839, when Dr. Thomas Mitchell, an English
physician living in Houston, operated an apothecary with a soda fountain from March
until his death on October 1. Carbonated water had bubbled from springs in Europe since
Roman times. During the eighteenth century, scientists experimented with "fixed air" and
produced "aerated waters." Some of them used bicarbonate of soda in their experiments,
and the term "soda water" became ensconced in the English language. By 1810 New
York City had "soda fountains," where proprietors dispensed artificial "mineral waters"
for therapeutic purposes. Flavored soda water, which developed with the rise of the ice
industry, was available in apothecary shops, but bottled soda water was an expensive
product. Sailing ships took ice from northeastern states to New Orleans in 1820 and later
to Houston, and in 1838 a Houston newspaper noted that ice sold for 50 cents per pound.
In 1850 Texas had none of the sixty-four bottling plants in the nation. The first notice of a
soda-water manufacturer in Texas was issued in 1866, when the Houston City Directory
listed J. J. C. Smith's establishment as a "mineral water manufactory." In the 1870 census,
Galveston and Brownsville reported "manufacturers of mineral and soda water." Victoria
and Austin had two ice-making machines. Texas had one of the four ice plants in the
nation. In 1880 Texas had eleven bottling plants: four in San Antonio, two each in
Galveston and Austin, and one each in Houston, Dallas, and Mexia. In 1890 Texas had
forty-two soda-water plants, plus five unspecified bottlers and seven breweries.

The 1890s saw major changes in the state's soft-drink industry. New plants appeared with
the introduction of the Hutchinson bottle stopper, patented in 1879 and manufactured in
Chicago. (In a Hutchinson stopper, a wire loop protruded from the bottle neck and was
fastened to a rubber seal; when seated the seal blocked the escape of gas from the water
in the drink.) Most plants served one or two counties, and occasionally they shipped by

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rail to neighboring communities. The bottler's largest investment was in bottles and cases.
No deposit was charged and bottle stealing among bottlers was common, even when glass
blowers embossed the name of the town on the bottles. In 1891 the Elliott Bottling Works
of Paris called a convention to address the problem. Twenty-nine bottlers and suppliers,
principally from East Texas, met in October in Dallas and formed the Texas State
Bottlers Protective Association. They drafted a constitution and by-laws aimed at
preventing "the unlawful use of registered bottles, boxes, siphons, etc." But policing was
impossible.

By the 1890s two beverages had changed the character of the soft-drink industry. In 1885
Charles Alderton, a Waco pharmacist, originated Dr Pepper Phos-Ferrates (see DR
PEPPER COMPANY), and in 1886 John Pemberton concocted Coca-Cola in Atlanta,
Georgia. In 1885 Wade B. Morrison, who owned the Old Corner Drug Store in Waco,
arranged with Robert Sherman Lazenby, owner of a small bottling plant, to mix and ship
Dr Pepper Phos-Ferrates syrup to area drugstores. In 1891 a feed-store operator in
Dublin, Texas, began bottling soda waters, including Dr Pepper. Other plants in Central
Texas followed suit. However, during the 1890s no Texas bottling plant advertised a
franchised soft drink and no company listed such a product in its company or corporate
name. In 1898, during the Spanish-American War, Lazenby had an exclusive War
Department contract to bottle and ship his Circle A Ginger Ale to servicemen in foreign
lands. He supplied both army and navy installations until World War I. In 1900 Texas
had 139 soda-water bottling plants. Lemon, ginger, ale, vanilla, orange, sarsaparilla, and
raspberry were the principal flavors. The state also had seventy-seven ice plants, more
than any other. Only one bottling plant used power-a four-horsepower central motor
which delivered power by belts to carbonators and bottle-washing machines.

In 1899 two lawyers from Tennessee, B. F. Thomas and Joseph Whitehead, secured
"bottling rights" from the Coca-Cola Company of Atlanta, Georgia. They issued contracts
to produce and sell Coca-Cola within control areas. Although Texas and parts of New
England were excluded, the system provided the capital and the entrepreneurship needed
to develop the soft-drink industry nationally. Thomas and Whitehead offered contracts in
specific geographic regions, Thomas taking the northern and eastern states and Pacific
coast and Whitehead taking the South and Southwest. Thomas built a bottling plant in

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Chattanooga, Tennessee, and Whitehead built one in Atlanta. Whitehead sold a half
interest to J. T. Lupton, a lawyer from a Virginia tobacco family. Lupton helped finance
the Coca-Cola bottling plant in Atlanta, and in 1902 his relatives opened plants in Dallas
and Houston. Within three years Coca-Cola was selling its syrup to twenty-nine Texas
plants. Soft drinks were among the first consumer products controlled by the franchise
system. In 1914 twenty Texas bottlers listed Coca-Cola as part of their trade name, and
eight did not. Other Texas companies did not issue franchises until the 1920s. Delaware
Punch, a noncarbonated drink formulated in 1913 in San Antonio, was among the first to
join Coca-Cola in issuing franchises in Texas. Between 1899 and 1914 the number of
Texas plants doubled and the value of production tripled. In 1914 Texas had 262 plants
(4.8 percent of the nation's total), but only the Coca-Cola bottlers included the franchise
in their trade name.

Between 1914 and 1924 a number of flavor manufacturers or distributors began offering
franchises patterned after the Coca-Cola model. In 1922 Texas had 179 bottling works,
but only 33 included a copyrighted soft drink in their trade name-30 with Coca-Cola and
3 with Whistle. By 1923 Texas had 205 plants (of 4,514 nationally). In 1924 nine bottlers
were producing "cola" drinks besides Coca-Cola, including Chero-Cola, Tex-A-Cola,
Lime Cola, Keen Kola, and Cola Hiball. Cola-Cola filed a lawsuit against all "imitators,"
won a raft of court decisions, and stopped the traffic for a decade. The Chero-Cola
Company of Columbus, Georgia, changed its corporate name to Nehi Company and
promoted fruit flavors. Other franchises in Texas included Whistle (six plants), Orange
Crush (three), NuGrape (one), Grapico (two), and Cherry Blossoms (one). Bottling plants
also manufactured other merchandise: ice (five plants), ice cream (ten), candy (eleven),
creamery products (three), and beer (one). Out of 276 bottling firms, 114 produced no
franchised soft drinks. In 1924 Texas bottlers marketed eleven trademarked products. By
1929 the state had thirty-four Nehi plants, ten Dr Pepper plants with name identification
by trademark, three Orange Squeeze plants, and six other plants incorporating a beverage
name. Coca-Cola gave bottlers "exclusive rights" to use its trademark in 6½-ounce
returnable bottles in a specific territory. In 1929 Texas had 325 bottling plants, 16.3
percent of the national total. The number declined to 260 in 1931 and 210 in 1933.

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During the Great Depression, Seven-Up and Pepsi-Cola sought markets in Texas, mainly
under the promotion of Jodie W. McCarley of San Antonio. While shagging baseballs for
the Cleveland Indians in St. Louis, McCarley met Pearl Whitcraft and Ed Taylor, who
owned soda-water plants in the city. In 1929 Taylor offered McCarley a chance to get in
the bottling business by assuming a debt owed a St. Louis flavor manufacturer. McCarley
set up a small bottling plant in his home in San Antonio with second-hand machinery,
and peddled his drinks each morning. In addition to generic flavors, he sold Knight Club
Ginger Ale, mostly to bootleggers. Ed Taylor also put McCarley in touch with C. L.
Griggs, owner of the Howdy Company, which offered franchises on Howdy Orange. In
1928 Griggs had copyrighted Seven-Up, a lithiated lemon drink promoted as a mixer. In
January 1930 McCarley, the second bottler in the nation to receive a Seven-Up franchise
(Taylor was the first), was given an opportunity to sell Seven-Up in seventy-eight Texas
counties. Business was slow: he signed up only one bottler, Ed Knebel, who had moved
his small plant from Pflugerville to Austin in 1930. In 1932 McCarley obtained a
franchise to sell Hires Root Beer. Then Whitcraft notified McCarley that Pepsi-Cola was
interested in Texas, and on April 1, 1934, McCarley and a partner secured a Pepsi-Cola
franchise for sixty-four counties. McCarley was the first Texan to bottle Pepsi-Cola. In
his first year he sold 13,300 cases of Pepsi in twelve-ounce beer bottles of brown, green,
and "flint" (colorless). As his business expanded, he began operating five route trucks,
and in 1937 he moved to a larger plant in San Antonio. By the 1930s, Pepsi and Nehi's
Royal Crown Cola had established markets in Texas. Nehi had a statewide system known
as Chero-Cola bottlers. Depression prices enabled bottlers to offer twelve-ounce drinks
for five cents retail, and twelve-ounce bottles became popular. Between 1934 and 1939
Pepsi signed up bottlers in eighteen Texas towns, though many of these did not survive.

Texas bottlers were highly competitive. With Cola-Cola leading the way, they maintained
an eighty-cent wholesale price for a case of twenty-four bottles. The Coca-Cola franchise
system had developed, however, when each plant served an area that a horse-drawn truck
could cover in a day. The motor truck expanded dealer territories. Although each
community had a wealthy Coca-Cola bottler, Walter Mack, Pepsi president in 1938-39,
saw opportunities. Coca-Cola maintained 1,150 franchise areas in the nation, but Mack
was able to franchise 550 areas for Pepsi. Pepsi also ran ads at independent radio stations

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and later on the networks. By early 1938 many Texas Coca-Cola bottlers, under company
pressure, had dropped all flavors except Coca-Cola. Dr Pepper started franchising in 1925
and offered the drink to Coca-Cola bottlers, who declined to accept. In 1938 the Texas
soft-drink industry comprised 297 plants. Most held multiple franchises.

At the outbreak of World War II, the soft-drink industry faced rationing of sugar, crown
caps, cork, gasoline, tires, trucks, and coolers. Though prices were frozen and labor
became scarce, bottlers profited from the military bases established in Texas, since quota-
exempt sugar was available to the military, which deemed soft drinks essential to morale.
Coca-Cola promptly moved its vending machines, introduced in the late 1930s in service
stations, grocery stores, and at-work outlets, to military bases. Few bottlers had vending
machines, especially multiple choice vending. These bottlers found markets at the Post
Exchanges.

After the war, soft drink demand soared. On October 23, 1946, wartime controls were
lifted, but sugar rationing continued until July 28, 1947. Bottlers were reluctant to break
the "nickel price." Coca-Cola advanced its price from 80 cents to 90 cents to $1 a case,
but still did not raise the retail price of 5 cents. Some coin-vending machines had a six-
cent mechanism, but they were awkward to use. While Coca-Cola kept sales prices down,
other companies, especially Pepsi and RC Cola, were stuck with a twelve-ounce bottle
and its higher ingredient costs. In1955 Coca-Cola introduced the "king-size" (ten or
twelve ounce) and the "family-size" bottles (twenty-six ounces). The family-size
returnable became popular in Texas, particularly in urban areas. Dr Pepper and Seven-Up
followed. Nehi had authorized the "Par-T-Pak" in quart or family size in the 1930s, but
sales had been slow. Bottlers soon saw the economy of returnable bottles. As prices and
bottle sizes increased, a conflict loomed between "big-bottle bottlers" and "little-bottle
bottlers." Clifton C. Carter, a vice president of the Texas State Bottlers Association,
sought to resolve the problem. In 1952 the Texas State Bottlers Association enrolled 226
bottling plants as dues-paying members; 145 plants were non-members. Carter,
membership chairman, sought new members and saw a major increase in membership to
71 percent of total Texas bottlers. In February 1954 Carter became president, W. L.
"Brownie" Dorris became vice president, and J. Conrad Dunagan became second vice
president. Association officers made swings through Texas to enlist members. Carter

7
visited eleven cities, Dorris nine, and Dunagan five. Their efforts bore fruit. By enlisting
members, the association began to defuse the bottling controversy and other problems. In
1957 the American Bottlers of Carbonated Beverages, of which the Texas State Bottlers
had been an affiliate since 1919, cited the Texas group as the "outstanding state bottlers'
association in the nation." Dunagan was elected to the ABCB Executive Board in 1961 to
the presidency for 1957-58. Texas, with more ABCB members than any other state,
brought the national convention to Dallas in 1961. Vice President Lyndon B. Johnson
gave the keynote address.

As the Texas bottlers worked out their differences, innovations changed the industry in
packaging, manufacturing, and distribution. Cans with linings that could withstand the
acidity of soft drinks were introduced, along with materials to withstand high degrees of
carbonation. Calcium Cyclamate and sodium cyclamate were combined with the
synthetic sweetener saccharin to produce an acceptable diet drink. Nehi had tried to
market Diet Rite in 1952 in Texas, but acceptance was spotty. However, diet drinks
gained steadily and reached an annual rate of 15 percent of the soft-drink market by 1969.
Major soft-drink companies, as well as major brewers, had developed canned drinks
during World War II, but a "metallic" taste persisted because the cans lacked special acid-
resistant linings. Coco-Cola introduced canned drinks in 1960, when it authorized the
Kimble Food Products Company of Fort Worth to offer canned Coca-Cola to franchised
bottlers. Although supermarkets quickly accepted canned drinks, they sold only 450
million cans in 1954, a fraction of the 30.3 billion bottles sold. Canned-drink sales fell to
317 million by 1956, when Royal Crown, Nehi, and Par-T-Pak entered the market.
Canned RC Cola, Diet Rite, and Nehi flavors arrived in Texas by rail from Columbus,
Georgia. The glass-container industry, aware that Texas supermarkets objected to
handling returnable bottles, introduced light-weight glass bottles. The larger sizes,
twenty-six to thirty-two ounces, easily competed with aluminum and steel cans.
Marketing strategies also changed. In the 1920s, soft drinks were sold for home
consumption. Grocery stores offered a twenty-four-bottle wooden case, and plants also
sold cases from the floor or loading docks. In 1922 Coca-Cola sought additional markets
by producing a cardboard six-bottle carton, but the boxes were too expensive for one-trip
use. Strengthened paperboard solved the problem. In 1933 Coca-Cola distributed 2 cent

8
postcards to bottlers for stores to use as coupons with which a customer could received a
free six-pack by paying the twelve-cent bottle deposit. This encouraged housewives both
to return the empties and buy more.

In the 1970s the federal government threatened the franchise system in the soft-drink
industry. In 1971 the Federal Trade Commission declared the existing franchises to be
illegal restrictions on interstate commerce and sued the major companies. After lengthy
hearings, the FTC examiner ruled for the soft-drink companies. While the threat of
franchise cancellation hung over their heads, some bottlers turned to cooperatives to build
canning plants. Pepsi-Cola built a plant at Conroe, and in July 1970 turned it over to a
corporation composed of Texas Pepsi-Cola bottlers. By 1972 West Texas bottlers
planned a cooperative to produce Coca-Cola and other franchised products. Amarillo,
Lubbock, and Monahans bottlers sought ties with New Mexico and Oklahoma bottlers.
They established the Southwest Canners, with J. Conrad Dunagan as president, Pat W.
McNamara as vice president, and R. E. Nickles as secretary-treasurer. But Coca-Cola
warned that the bottlers who used their franchise territory to host a cooperative could
incur substantial liabilities. The organizers also discovered that Texas lacked legislation
to permit issuing tax-exempt bonds for industrial development, so Southwest Canners
located its plant in Portales, New Mexico, in the Clovis Coca-Cola franchise. New
Mexico permitted industrial bonds to acquire land, buildings, and equipment, and an
Albuquerque investment bank underwrote $2 million in municipal bonds. The Portales
plant opened in the spring of 1975. By then, however, the FTC decision favoring
franchises had been overruled-a shocking set-back. The bottlers now sought federal
legislation to rescue their franchises. As most congressional districts in Texas had
bottling plants, the bottlers found wide support. But Texas representative George H.
Mahon, chairman of the Appropriations Committee, would not release the bill. Finally,
Sam Hall, of Marshall, introduced a measure to call the bill from committee by a House
vote. Both House and Senate approved the measure, and the soft-drink franchise system
was saved.

In the late 1970s and early 1980s, bottling franchises began to consolidate. Coca-Cola,
which had relied heavily upon independents until the 1980s, began to purchase large

9
independent bottling groups in 1986 and consolidate them into Coca-Cola Enterprises. In
July 1986 Coca-Cola Enterprises acquired Rainwater Coca-Cola Bottling Companies in
Texas, and in September they acquired control of the McAllen and Brownsville Coca-
Cola Bottling Companies. By the mid-1990s many of the major urban markets for Coke
were serviced by Coca-Cola Enterprises, supplemented by other company franchises and
independents. In 1996 Pepsi-Cola had company-owned bottling facilities at Conroe,
Houston, Mesquite, and San Antonio, and worked through independent bottlers at
Abilene, Hallettsville, and Corpus Christi. Dr Pepper merged with the Seven-Up
Company in 1986 and soon thereafter moved its manufacturing operations to facilities in
St. Louis, although the company's corporate headquarters remained in Dallas.

1.2 COMPANY PROFILE

ABOUT PEPSICO COMPANY

PepsiCo is a world leader in convenient foods and beverages, with 2004 revenues of
more than $29 billion and 153,000 employees. The company consists of Frito-Lay North
America, PepsiCo Beverages North America, North America, PepsiCo International and
Quaker Foods North America. PepsiCo brands are available in nearly 200 countries and
territories and generate sales at the retail level of about $78 Billion.

Many of PepsiCo’s brand names are more than 100 years old, but the corporation is
relatively young. PepsiCo was founded in 1965 through the merger of Pepsi-Cola and
Frito-Lay. Tropicana was acquired in1998 and PepsiCo merged with Quaker Oats
Company including Gatorade in 2001.

PepsiCo’s Mission

“ To be the world’s premier consumer Products Company focused on convenient foods

and beverages. We seek to produce healthy financial rewards to investors as we provide
opportunities for growth and growth and enrichment to our employees, business partners

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and the communities in which we operate. And n everything we do, we strive for honesty,
fairness and integrity.”

PepsiCo’s World Headquarter

PepsiCo’s world Headquarter is located in Purchase, New York, approximately 45

minutes from New York City. The seven building headquarters complex was designed by
Edward Durrell Stone, one of America’ foremost architects. The building occupies 10
acres of a 144 acre complex that includes the Donald M. Kendall Sculpture Gardens, a
world acclaimed sculpture collection in a garden setting.

PEPSI – THE INDIAN SCENARIO

Since the entry of Pepsi – Cola to India in 1989, the soft drink industry has under gone a
radical change. When Pepsi-Cola entered Indian market, Parle was the leader with the
Thumps-Up being its flagship brand.

Other products offering by Parle included Limca & GoldSpot, another upcoming player
in the market was, the erstwhile bottler of Coca-Cola, “Pure Drinks”. Its offering
includes Campa-Cola, Campa-Lemon & Campa-Orange.

With the re-entry of Coca-Cola in the Indian market, Pepsi-Cola had to go in for more
aggressive marketing to sustain share.

The chronology of the initial phase of the Cola Wars in India are ……

1977 Milestone
Parle launched Thumps-Up and pure drinks launched Coca-Cola.

1990 Milestone
In March, “Pepsi-Cola and 7-Up” launched markets in north India.

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 In May, the Government cleared the Pepsi-Cola project again but with a
change in brand name to “Lehar Pepsi”, simultaneously it rejects the Coca-Cola
application “Citra” from the Parle, stable hited the market.

1991 Milestone
Pepsi-Cola extended its soft drinks business and reached at national scale.
Pepsi-cola launched its product in Delhi and Bombay.

1992 Milestone
In January, Brito Foods application is cleared by the FIPB. Pepsi-Cola
and Parle start initial negotiation for a strategic alliance but took break off after a while.

1993 Milestone
Pepsi-Cola launched “Slice & Teem” captured about 25-30% of the soft
drink market in about 2 years.

1994 Milestone
Pepsi bought “Dukes & Sones”.

1995 Milestone
Pepsi-Cola lunched Cans, having capacity of 330ml in various flavours.

1996 Milestone
Pepsi-Cola domestic and International operations combined into a Pepsi-
Cola Company. International and Domestic operations combined into one business unit
called “Frito-lay Company”.

1997 Milestone
Pepsi-Cola brought “Mirinda Orange” Opposite to “Fanta”.

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1998 Milestone
Pepsi-Cola launched “Mirinda Lemon” opposite to “Limca”.
In September, final approval for the Pepsi Foods Ltd. Project granted by the
“Cabinet Committee” on economic affairs of the “Rajeev Gandhi Govt.”

1999 Milestone
Pepsi-Cola launched “Diet Pepsi” can and 1.5 Lit. “PET” bottle for
health conscious people.

2001 Milestone
Pepsi-Cola launched Slice in “Tetra” Pack .

2003 Milestone
Pepsi-Cola launched “Pepsi Blue” to get the favour of world cup season.

2005-Milestone
Pepsi-Cola launched Mirinda in “Straw Berry” flavour to get the favour of
movie Batman.

2005-Milestone
Pepsi-Cola launched 7-up as “7-up ice”.

Pepsi-Cola launched “Mountain Dew” to be more competitive with Coca-cola.

CELEBRITIES FOR PEPSI

Following are some celebrities for Pepsi : -

 Amitabh Bachchan
 Shahrukh Khan
 Saif Ali Khan
 Fardeen Khan

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  Kareena Kapoor
 Preity Zinta
 Sachin Tendulkar
 Saurav Ganguly
 Yuvraj Singh
 Harbhajan Singh
 Rahul Dravid
 Zaheer Khan
 Mohammad Kaif
 Priyanka Chopra

FAMOUS CATCH LINES

Some famous lines of Pepsi are : -

• “Yehi Hai Right Choice Baby……Aaha !!”
• “Nothing Official About It”
• “Choice of Next Generation”
• “More Cricket More Pepsi”
• “Yeh Aazadi Hai Dil Ki”
• “Yeh Dil mange More”
• “Zor Ka Jhatka Dheere Se Lage”
• “Pepsi Ke Liye Hum Besharam Hain”
• “Yeh Pyaas Hai Badi”
• “Do The Dew”
• “Oye… Bubbly !!”

R .K .Jaipuria Group

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It can be said with absolute certainty that the RKJ Group has carved out a special niche
for itself. Our services touch different aspects of commercial and civilian domains like
those of Bottling, food chain and education. Headed by Mr. R. K. Jaipuria, the group as
today can lay claim to expertise and leadership in the fields of education, food beverages.

The business of the company was started in 1991 with tie- up with Pepsi Foods Limited
to manufacture and market Pepsi brand of beverages in geographically pre-defined
territories in which brand and technical support was provided by the Principles viz., Pepsi
foods Limited. The manufacturing facilities were restricted at Agra Plant, only Varun
Beverages Ltd. is the flagship company of the group.

The group also become the first franchisee for Yum Restaurants International [formerly
Pepsi Co Restaurants (India) Private Limited] in India.

It has exclusive franchise rights for the Northern & Eastern India. It has total 27 pizza
Hut Restaurants under its company.

It diversified into education by opening the first school in Gurgaon under

Management of Delhi Public School Society. The schools of the group are run
under a registered Trust namely Champa Devi Jaipuria Charitable Trust.

Companies are medium sized, professionally managed, unlisted and closely held
between Indian Promoters and Foreign collaborators.

The group added another feather to its cap when the prestigious PepsiCo
“International Bottler of the year” award was presented to Mr. R. K. Jaipuria
for the year 1998 at a glittering award ceremony at
PepsiCo’s centennial year celebrations at Hawai, USA. The award was presented
by Mr. Donald M. Roger A. Enrico, Chairman of the Board & C.E.O., PepsiCo
Inc. and Mr. Craig Weatherup, President of Pepsi Cola Company.

15
Vision:-
Being the best in everything we touch and handle.

Mission:-
Continuously excel to achieve and maintain leadership position in the chosen
business and delight all stakeholders by making economic value additions in all
corporate functions.

Success :-
Production of innovative, high quality retail branded beverages combined with
world class packaging.

Driven by management team with a relentless focus on achieving superior

customer service, driving earnings improvement and shareholder value.

People :-
RKJ creates an environment where employee enjoy a greater degree of
empowerment – both individually and in their work teams.

The employees are equipped with the necessary tools, training and well
management backup for strong performance and accountability, as well as with an
environment of open communication and involvement.

16
 THE RKJ GROUP INVESTMENT

COMPANIES CHART

17
VARUN BEVERAGES LTD, GREATER NOIDA

VARUN BEVERAGES LTD (PEPSI), Plot No – 2, Surajpur Bypass, Greater Noida is

a Bottling Plant of Pepsi Cola Brands. Today, VBL is the top position holding company

18
among the soft drink bottling companies in India. Its registered office is located in New
Delhi and corporate office at Noida. It is a Franchise company of PepsiCo India holding.
It’s a “R.K. JAIPURIA GROUP COMPANY”. The group is a largely diversified rising
group having interest in Soft Drink Bottling, Restaurant chains under the Brand name of
Pizza Hut and Tricon & Creambell Ice Cream manufacturing, power project, Export
and many other projects. It is having Pepsi Bottling Plants in various places of India as
well as out of India. It is on the rising path under and the wisdom guidance of its
chairman Mr. R.K.JAIPURIA.

The VBL plant was established in the year 1995 in Greater Noida. It was the first plant
to start its operation in the Greater Noida Industrial Development Area. Greater Noida
Industrial Development Authority has awarded and given early production incentive for
being starting and competing the project very first in Greater Noida. The company’s
mainly operate the Bottling and marketing of Pepsi Cola Brand.

Its product brand are Pepsi, Mirinda-orange, Mirinda-Lemon, Mirinda-Apple, Slice, 7-

Up, Evervess Soda. Its marketing Network is spread in Western-UP, Haryana,
Rajasthan, Delhi(TRANS YAMUNA) and Uttaranchal.

VBL has always secured top position in its best quality and marketing.
Mr.R.K.JAIPURIA who is the chairman of the group, received various award for the best
quality and marketing. He has also been awarded for good quality and marketing in
South Asia with “EXCELLANCY AWARD” by Mr. GEORGE BUSH, former
president of U.S.A. in 1998.

AIM

The main aim of VBL Greater Noida plant is to provide soft drink to the people of India
in its assigned territory, which is helpful in keeping cool their mind.

The aim of this company is also to provide full satisfaction to the customers. And most
importantly, through a range of customer relevant product manufactured with care and
quality in a fully hygiene environment.

QUALITY POLICY

19
• Deliver the best product in the market place

• The highest Quality

• The best Tasting

20
Different Brands of Pepsi Co.(India)

Pepsi Co is today having the soft drinks market in India with lots of its brands. They
have also diversified into different sectors. Their popularly exiting brands in the Indian
Market are as follows:

Soft Drinks

1) Pepsi

2) Pepsi Blue

3) Diet Pepsi

4) Mountain Dew

5) Slice

6) 7Up

Purified Drinking Water

Aquafina

Fruit Juice

Tropicana

Chips

Frito-Lays

Ruffles

21
Composition of Pepsi

Pepsi

Contains: Carbonated water, high fructose corn syrup and/or sugar, caramel color,
phosphoric acid, caffeine, citric acid and natural flavors

Calories 100

Total Fats (g) 0

Sodium (mg) 25

Potassium (mg) 10

Total Carbohydrates (g) 27

Sugars (g) 27

Protein (g) 0

Caffeine (mg) 25

Pepsi Blue

Contains: Carbonated water, high fructose corn syrup and/or sugar, citric acid, natural
and artificial flavors, phosphoric acid, potassium citrate, potassium benzoate and
potassium sorbate (to preserve freshness), caffeine, gum arabic, ascorbic acid and
calcium disodium EDTA (to protect flavor), blue 1, red 40

Calories 100

Total Fats (g) 0

Sodium (mg) 25

Total Carbohydrates (g) 27

Sugars (g) 26

22
Protein (g) 0

Caffeine (mg) 25

Diet Pepsi

Contains: Carbonated water, caramel color, aspartame, phosphoric acid, potassium

benzoate (preserves freshness), caffeine, citric acid and natural flavors

Calories 0

Total Fats (g) 0

Sodium (mg) 25

Potassium (mg) 20

Total Carbohydrates (g) 0

Sugars (g) 0

Protein (g) 0

Caffeine (mg) 24

PRODUCTION SET UP

Greater Noida plant is a dedicated plant for 7 major products.

These are as follows : -

PRODUCT BOTTLING FILLING
PEPSI 300ML, 200ML
MIRINDA ORANGE 300ML, 200ML
MIRINDA LEMON 300ML, 200ML
SLICE 250ML
7- UP 300ML, 200ML

23
 EVERVESS SODA 300ML
MOUNTAIN DEW 200ML & 300ML

Plant is producing 10 million cases every year. Plant has employed about 200 employees
on permanent and casual basis. There are 40 mangers/officers/ supervisors and rest of
workmen. Plant is dispatching near about125-150 trucks in peak seasons per day to
various location. This Plant is spread in peak seasons per day to various location. This
plant is spread over 7.5 acre.

1.3 PROBLEMS OF THE ORGANIZATION

• Service delivery / Logistics perception is weak

• Negative Environment

• Top management takes large amount of time to approve high value loan borrowers.

1.4 COMPETITION INFORMATION

• COCA-COLA INDIA PVT LTD

• DABUR INDIA LTD

• MOUNT EVEREST MINERAL WATERS LTD

• NARANGS HOSPITALITY SERVICES PVT LTD

• PARLE AGRO PVT LTD

• PARLE BISLERI LTD

• PIOMA INDUSTRIES LTD

24
1.5 SWOT ANALYSIS

STRENGTHS

1. Company belongs to the FMCG sector so the demand will never die.

2. A large and strong distribution network. (In comparison to the other competitive
brand Pepsi is having better reach to the market.)

3. Professional and dedicated manpower. (Starting from the higher-level

management to the sales-man Pepsi’s employees is having great degree of
dedication and professional attitude towards selling the products. On the other
hand companies’ operational staff always try their maximum strength to meet the
demand and utilize the recourses to maximum.)

4. More emphasis on market penetration. (Companies efforts of providing the Pepsi

and other products to the customer’s doorstep are working vis-ã-vis wherever the
transportation is not possible dealers are appointed.)

5. In comparison to Coca-Cola’s red color, which is brighter and have more

visibility Pepsi’s blue color provide sense of relax ness in the bright sunny day.

6. In the rural areas and outskirts of the city where there is maximum population is
illiterate, Pepsi is having an edge. (As compared to Coca-Cola, pronouncing Pepsi
is lot more easy reason for more demand of the Pepsi and its brands.)

7. More popularity among the kids and female youth. (Because of the sweetened
taste Pepsi and its other brands attracts the kids and female more. Mirinda is
found more popular among kids.).

8. Retain ability of the T.V. advertisements of Pepsi is far more in comparison to

Coca - Cola. (Pepsi’s T.V. advertisement in which Sachin Tendulkar whistles at
the end has maximum retain ability. Other than this world cup 2003 advertisement

25
 campaign that comprises of Sachin Tendulkar, Shane Warne and Carl Hooper,
advertisement campaign which comprises of Amitabh Bachan, Karma Kapoor and
Adnan Sami and latest advertisements of Pepsi and Mountain Dew (Do the Dew)
are very famous. On the other hand Coca-Cola’s advertisement campaign of”
thanda matlab Coca-Cola” and Amir Khan’s five rupees add have the maximum
retainability.

WEAKNESS

1. Coca-Cola’s red color has more visibility than Pepsi’s blue color. (Because of the
bright color of Coca-Cola it is more visible even from the distance as compared to
Pepsi)

2. Pepsi’s sinages are far more scattered as compared to Coca-Cola. (Because of this
at some places it looks that the market is captured by Coca-Cola.).

3. Low plant capacity because of which company is not able to meet its demand
during the peak season. (Devyani Beverages India Ltd., Pepsi’s Greater Noida
plant has one continuous assembly line for preparing tetra and four continuous
assembly lines’ which are filling around 15,000 bottle/day, which is insufficient
to complete the demand during the peak seasons.).

4. Lesser plant utilization during the off-peak seasons. (During the winter season as
the demand is very low, plant and resource utilization goes down.)

5. Lack of automaton in the administrative department in the plant, which results in

wastage of time and sometimes in resources also.

OPPORTUNITIES

1. Demand is more than the production. (Because of the heat the demand of the soft
drink raised drastically which is the good opportunity for the company a the rival

26
 brands are also finding it difficult to complete the demand. Therefore PepsiCo.
has to increase the production.)

2. In the rural areas PepsiCo’s distribution network is far stronger vis.-I-vis to any of
the competitor. Therefore it is viable to make it more stronger, as this can restrict
the entry of the other brands in the rural market.

3. Kids demand for the Mirinda more as compared to any other orange flavor soft
drink brand.

4. With the launch of slice tetra PepsiCo has entered in to one more segment of soft
drink beverages, which was more or less captured by the “Frooti” till now.

THREATS

1. Not able to meet the market demand during the peak season. (As the plant
capacity is very low the company is not able to meet the existing demand during
the peak seasons).

2. Pepsi is not picking up the empty bottles of Coca-Cola on the other hand Coca-
Cola is exchanging the Pepsi’s empty bottles with the filled bottles of Coca-Cola.
(This is hitting the Pepsi in two ways, firstly our bottles are getting tucked with
the Coca-Cola and creating shortage of empty bottles of Pepsi in the market, and
secondly when our salesman goes to distribute the re-filled bottles in the market,
he tends to meet with the lack of sales at the end of the day despite of the
increasing demand because wherever he goes he found the empty bottles of Coca-
Cola everywhere which he is asked not to picked up.

3. There is lot of complaints are coming up about the impurities or leakage of gas or
leakage of carbonated water. (Within the last 30 days I met around 50 such
complaints because of which retailers were very angry with the company).

27
4. Some of the filling equipments in the plant are quite old which one of the reasons
for low production is.

5. There is no proper policy of distributing the merchandising assets of the company

to the retailers. (Many of the retailers have so many things though their sales are
low but few of them don’t have anything inspite of large sales.).

28
 Chapter 2
OBJECTIVE AND
RESEARCH
METHODOLOGY

29
 RESEARCH METHODOLOGY

2.1 SIGNIFICANCE

The main significance of the project is to identify the level of motivation, job
satisfaction and performance among the employees after & before the conduction
of Performance Appraisal Exercise.

2.2 MANAGERIAL USEFULNESS OF THE STUDY

To point out and suggest the organization to adopt remedial actions to remove
those loopholes, aiming to improve the productivity and efficiency of the worker
and increase the level of job satisfaction among them.

2.3 OBJECTIVE

• To critically study the HR Policies and Performance Appraisal system existing at

Varun Beverages Ltd.

• To study the various types of Performance Appraisal methods.

• To study the Performance Appraisal method being used at Varun Beverages Ltd.

• To establish a direct relationship between work performance and Performance

Appraisal system.

2.4 SCOPE OF THE STUDY

• To find out the loopholes (if any) in the Performance Appraisal System at Varun
Beverages Ltd.

• To have an overlook over the changes and improvements made in the Company

30
2.5 METHODOLOGY

Research Methodology is a way to systematically solve the research problem involving a

study of various steps that are adopted by the researcher in studying his/her research
problem.

Data Collection

There are two methods for collecting the data. They are:

1) Primary Data

2) Secondary Data

Primary data: There are several methods of collecting Primary data. These are given
below.

A- Observation method: The observation method is the most commonly used method
especially in studiesrelating to behavioural sciences. Under the observation method the
information is sought by way of investigator’s own direct observation without asking
from the respondent.

B:- Interview method: The interview method of collecting data involves presentaion of
oral verbal and stimuli reply in terms of oral verbal responses. This method can be used
through personal interviews and if possible through telephonic interviews.

C:- Questionnaires;- This method of data collection is quite popular particularly in case
of enquiries. It is being adopted by private individuals, research purposes, private and
public organizatoions and evenby governments. In this method questionnaires are sent to
the persons ofconcern with the request to answer the questions and return the
questionnaires.The respondents have to answer the questions on their own.

In this project I have used questionnaires as one of the primary sources of collecting data.

31
 Secondary Data

When an investigator uses the data that has been already collected by others is called
Secondary Data. The secondary adapt could be collected from Journals, Reports and
various publications, web sites. The advantages of the secondary data can be- it is
economical, both in terms of money and time spent.

Sample Designing:

Target Population: The target population under this survey are the schools, canteens,
colleges, restaurants, banquet halls and other beverage stalls etc. which keep Pepsi
products and are in contract with Pepsi Food Pvt Ltd.

Also the target population is limited to the north and West Delhi only.

Type of Universe:

 Retailers or marketers who sell Pepsi products in the finite type of universe.

 Consumers of Pepsi products are the infinite type of universe.

Type of Sampling: The sample is drawn on non-probability sampling basis i.e. non-
random sampling technique has been used. The list of target population is definite and
already decided in advance.

Sample Size: The sample size taken into consideration includes simple of around 90
related people in various different location. The sample size has been decided in
accordance with the instructions been given by the Pepsi Food Pvt. Ltd.

2.6 LIMITATIONS

Every Study suffers from certain limitations and so does this project.

So, the applicability of the findings and recommendations is subjected to the following
mentioned constraints/limitations

 Respondents were reluctant to give their views on data or open to other

32
 Shortage of time duration for the research work

 Hiding of some true facts by the respondents due to the fear of the management

 Though care has been taken, judgement errors may have occurred

 Employees being very busy did not get enough time to give responses whole-
heartedly

 Some of the responses given by the respondents were not legible and clear.

33
 Chapter 3
CONCEPTUAL
DISCUSSION

34
 CONCEPTUAL DISCUSSION

HUMAN RESOURCE MANAGEMENT

Human Resource Management (HRM) is a process of bringing people and

organization together so that the goals of each are met. It is that part of the management
process which is concerned with managing Human Resources in an organization.

Simply put, Human Resource Management is a management function that helps

managers recruit, select, train, and develop members for an organization.

HRM tries to secure the best from people wining their whole hearted co-
operation. In short, it may be defined, as the art of procuring, developing and maintaining
competent work force to achieve the goals of an organization in an effective and efficient
manner.

Followings are the leading definitions of HRM………………………..

“Human Resource Management is a series of integrated decisions that from

the employment relationship: their quality contributes to the ability of organization
and the employees to achieve their objective”

“Human Resources Management is concerned with the people dimension in

management. Since every organization is made up of people, acquiring their service,
developing their skills/ motivating them to higher levels of performance and
ensuring that they continue to maintain their commitment to the organization are
essential to achieving organization objectives. This is true, regardless of the type of
organization–government business, education, health, recreation, or social action”

“Human Resource Management is the planning, organizing, directing and

controlling of the procurement, development, compensation, integration,
maintenance and separation of human resources to the end individual, organization,
and social objectives are accomplished.

35
 Thus, HRM refers to set programs, functions and activities designed and carried
out in order to maximize both employee as well as organization effectiveness.

Features/Characteristics/Nature of HRM

1. Pervasive Force

HRM is Pervasive in nature. It is present in all enterprises. It permeates at every

level of management within an organization.

2. Action Oriented

HRM focuses attention on action rather than on record keeping, making

procedures or rules.

3. People Oriented

HRM is all about people at work, both as individuals and group. It helps people
on assigned jobs in order to produce good results. The resultant gains are due to
the people and it motivates them toward further improvements in productivity.

4. Continuous Function

According to Terry, HRM is not a one short deal. It cannot be practiced only one
hour each day or one day a week. It requires a constant alertness and awareness of
human relation and their importance in every day operations.

5. Individual Oriented

HRM tries to help employees develop their potential fully. It enable them to give
out their best to the organization. It motivates employees through a systematic
manner of recruitment, selection, training and development coupled with fair
wage policies.

36
6. Development Oriented

HRM intends to develop the full potential of employees. The reward structure is
tuned to the needs of employees. Training is offered to sharpen and improve their
skills. Employees are rotated on various jobs so that they gain experience and
exposure. Every attempt is made to use their talents fully in the service of
organizational goals.

7. Integrating Function

HRM builds and maintain cordinal relations between people working at various
levels in the organization. In short, it tries to integrate human assets in the best
possible manner in the serviceof an organization.

8. Inter-Disciplinary Function

HRM is a multi-disciplinary activity, utilizing knowledge and inputs drawn from

psychology, sociology, anthropology, economics etc. to unravel the mystery
surrounding the human brain, managers, need to understand and appreciate the
contributions of all such ‘soft’ disciplines.

SCOPE OF HRM

1. Procurement

Procurement includes recruitment and selection of right kinds of personnel to

occupy the various posts in the organization.

It includes :-

(a) Determination of manpower requirements

(b) Job Analysis

37
 (c) Nature and scope of recruitment

(d) Employee selection and

(e) Placement of employees

Training & Development

Training & Development is a must to prepare the worker gaining proficiency in the
methods and techniques of work assigned to them. Efforts may be made to involve the
employees in the actual management situations. Employees participation in committee
and Board meetings may also contribute toward their development.

Job Analysis & Job Description

Job Analysis and Job Description involves the studies of job requirements of the
enterprises and assignment of well defined functions to jobs so that qualified employees
may be hired. It also forms the basis of wage determination.

Remuneration

Provision of adequate remuneration for the work done by an employee involves Job
Analysis and Job Evaluation. It includes determining wage rates, incentives systems of
wage payment, merit-rating and performance appraisal.

Personnel Records

The function of personnel records includes collection bio-data of all employees

pertaining to their work e.g., training job performance, aptitude payment records.

Welfare and Industrial Relations

It includes health and safety programme, sanity facilities, recreational facilities, group
insurance employee association etc.

38
OBJECTIVES OF HRM

The primary objective of HRM is to ensure the availability of a competent and willing
workforce to an organization. Beyond this, there are other objectives, too.

Specifically, HRM objectives are four fold – Societal, Organisational, Functional and
Personal.

1) Societal Objectives

To be ethically and socially responsible to the needs and challenges of the society
while minimizing the negative impact of such demands upon the organization.
The failure of organizations to use their resources for the society’s benefit in
ethical ways may lead to restrictions.

For example, the society may limit HR decisions through laws that enforce
reservation in hiring and laws that address discrimination, safety, or other such
areas of societal concern.

2) Organisational Objectives

To recognize the role of HRM in bringing about organizational effectiveness.

HRM is not an end itself. It is only a means to assist the organization with its
primary objectives.

Simply stated, the department exists to serve the rest of the organization.

3) Functional Objectives

To maintain the department’s contribution at a level appropriate to suit the

organisation’s demands. The department’s level of service must be tailored to fit
the organization it serves.

39
4) Personal Objectives

To assist employees in achieving their personal goals, at least insofar as these

goals enhance the individual’s contribution to the organization. Personal
objectives of employees must be met if workers are to be maintained. Retained
and motivated. Otherwise, employee performance and satisfaction may decline
and employees may leave the organization.

HRM OBJECTIVES AND FUNCTIONS

HRM Objectives Supporting Functions

1. Societal Objectives
a) Legal Compliance
b) Benefits
c) Union-management Relations

2. Organisational Objectives
a) Human Resource Planning
b) Recruitment
c) Selection
d) Training & Development
e) Appraisal
f) Placement
g) Assessment

3. Functional Objective
a) Appraisal
b) Placement
c) Assessment

40
4. Personal Objective
a) Training & Development
b) Appraisal
c) Placement
d) Compensation
e) Assessment

FUNCTIONS OF HRM

The functions of HRM can be broadly classified into two categories, viz.,

1) Managerial Functions
A) Planning
B) Organizing
C) Directing
D) Controlling

2) Operative functions
A) Employment
i) Job Analysis
ii) Human Resource Planning
iii) Recruitment
iv) Selection
v) Placement
vi) Induction & Orientation

B) Human Resource Development

i) Performance Appraisal
ii) Training
iii) Management Development
iv) Career Planning & Development

a) Internal Mobility

41
 b) Transfer
c) Promotion
d) Demotion

3) Compensation
A) Job Evaluation
B) Wage & Salary Administration
C) Incentives
D) Bonus
E) Fringe Benefits
F) Social Security Measures

4) Human Relations

5) Effectiveness of HRM

A) Human Resource Accounting

B) Human Resource Audit

C) Human Resources Research

All the above maintained Categories and their respective sub headings are discussed
in details as follows :-

1) Managerial Functions :-

A) Planning

It is pre-determined course of action. Planning is determination of personnel

programmes and changes in advance that will contribute to the organizational goals. In
other words, it involves planning of human resources, requirement, recruitment,
selection, training etc. It also involves forecasting of personnel needs, changing values,
attitudes and behavior of employees and their impact on organization.

42
B) Organizing

An organization is a means to an end. It is essential to carry out the determined

course of action. Thus, organization establishes relationships among the employees so
that they can collectively contribute to the attainment of company goals.

C) Directing

The next logical function after completing planning and organizing is the
execution of the plan. The basic function of personnel management at any level is
motivating commanding, leading and activating and human relations besides securing
employee contributions.

D) Controlling

After planning, organizing and directing the various activities of the personnel
management, the performance is to be verified in order to know that the personnel
functions are performed in conformity with the plans and directions. Controlling also
involves checking, verifying and comparing of the accruals with the plans, identification
of deviations if any and controlling of identified deviations.

2) Operative Functions

The Operative Functions of personnel management are related to specific

activities of personnel management, viz., employment, development, compensation and
relations. All these functions are interacted by managerial functions.

A) Employment

It is the first operative function of HRM. Employment is concerned with securing

and employing the people possessing required kind and level of Human Resources
necessary to achieve the organizational objectives. It covers the functions such as job

43
analysis, human resources planning, recruitment, selection, placement, induction and
internal mobility.

i) Job Analysis

It is the process of study and collection of information relating to the operations

and responsibilities of a specific job.

It includes :-

Collection of data, information, facts and ideas relating to various aspects of jobs
including man, machines and materials.

 Preparation of job description, job specification, job requirements and

employees specification which will help in identifying the nature, levels
and quantum of human resources.

 Providing the guides, plans and basis for the job design and for all
operative functions of HRM.

ii) Human Resources Planning

It is a process for determination and securing that the organization will have an
adequate number of qualified persons, available at proper times, performing jobs which
would meet the needs of the organization and which would provide satisfaction for the
individuals involved.

It involves :-

 Estimation of present and future requirements and supply of

human resources basing on objectives and long range plans of the organization.

 Calculation of net human resources requirements based on present

inventory of human resources.

44
 Taking steps to mould, change, and develop the strength of
existing employees in the organization so as to meet the future human resource
requirements.

 Preparation of action programmes to get the rest o human

resources from outside the organization and too develop the human resources of
existing employees.

iii) Recruitment

It is the process of searching for prospective employees and stimulating them to apply for
jobs in an organization.

It deals with :-

 Identification of existing sources of applicants and developing

them

 Creation/Identification of new sources of applicants.

 Stimulating the candidates to apply for jobs in the organization.

 Striking a balance between internal and external sources.

iv) Selection

It is the process of ascertaining the qualifications, experience, skill, knowledge

etc., of an applicant with a view to appraising his/her suitability to a job appraising.

This function includes :-

 Framing and developing application blanks

 Creating and developing valid and reliable testing techniques

45
 Formulating interviewing techniques.

 Checking of references

 Setting up medical examination policy and procedure

 Sending letter of appointment and rejection

 Employing the selected candidates who report for duty.

V) Placement

It is the process of assigning the selected candidate with the most suitable job in
terms of job requirements. It is matching of employee specifications with job
requirements. This includes :-

 Counseling the functional managers regarding placement.

 Conducting the follow-up-study, appraising employee

performance in order to determine employee adjustment with the job.

 Correcting misplacements, if any.

vi) Induction and Orientation

Induction and orientation are the techniques by which a new employee is

rehabilitated in the changed surrounding and introduced to the practices, policies,
purposes and people etc., of the organization. This includes :-

 Acquaint the employee with the company philosophy, objectives,

policies, career planning and development, opportunities, product, market share,
social and community standing, company history, culture etc.

46
 Introduce the employee to the people with whom he has to work
such as peers, supervisors and subordinates.

 Mould the employee attitude by orienting him to the new

working and social environment.

47
B) Human Resource Development :-

i) Performance Appraisal

It is the systematic evaluation of individuals with respect to their performance on

the job and their potential for development. It includes :-

 Developing policies, procedures and techniques

 Helping the functional managers

 Reviewing of reports and consolidation of reports

 Evaluating the effectiveness of various programmes

ii) Training

It is the process of imparting the employees the technical and operating skill of
employees. It includes :-

 Identification of training needs of the individuals and the

company

 Developing suitable training programmes.

 Evaluating the effectiveness of training programmes

iii) Management Development

It is the process of designing and conducting suitable executive development

programmes so as to develop the managerial and human relation skill of employees. It
includes :-
 Identification of the areas in which management development is
needed

48
 Conduction of development programmes
 Evaluating the effectiveness of executive development program

PERFORMANCE APPRAISAL

In simple terms, Performance Appraisal may be understood as the assessment of an

individual’s performance in a systematic way, the performance being measured against
such factors as job knowledge, quality and quantity of output, initiative, leadership
abilities, supervision, dependability, co-operation, judgement, versatility, etcs.

A formal definition of Performance Appraisal is :

“It is the systematic evaluation of the individuals with respect to his or her
performance on the job and his or her potential for development”

According to Dale Yoder, “all formal procedures used in working organization to

evaluate personalities and contributions and potentials of group members”

According to Flippo, “ Perfromance Appraisal is a systematic, periodic and so far as

humanly possible, an impartial rating of an employee’s excellence in matters pertaining
to his present job and to his potentialities for a better job”.

Thus under Performance Appraisal, we not only evaluate the performance of a worker but
also his potential for development.

Objectives of Performance Appraisal

The main purposes of employee assessment are :-

Training, and Transfers have been effective or not. Performance is concerned and to
assist them with constructive criticism and guidance for the purpose of their development
for dialogue between the superior and the subordinate, and improves understanding of
personal goals and concerns.

49
When to Appraise ?

The appraisals are conducted wheneverthe supervisor or personnel managers feel it

necessary. However systematic appraisals are conducted on a regular basis, say for
dxample every six months or annually.

Whose Performance should be Rated ?

To the question as to whose performance should be rated?

That is, who can be Ratee ?

The answer is obviously – Employees!

And when we say employees, it may be individual, group, teams, or division.

Who are Raters ?

Raters are immediate Supervisors, specialists from HR Department, Subordinates, Peers,

Committees, Clients, Self-appraisals, or a combination of several.

USE OF PERFORMANCE APPRAISAL

Followings are the some major use of Performance Appraisal to the organization :-

Poor Performance indicates the need for retraining. Likewise, good performance may
indicate untapped potential that should be developed.

2) Compensation Adjustments

Performance evaluations help decision-makers determine who should receive pay raises.
Many firms grant part or all of their pay increases and bonuses based upon merit, which
is determined mostly through performance appraisals.

50
Promotions, transfers, and demotions are usually based on the past or anticipated
performance. Often promotions are reward for past performance.

Good / bad performance throughout the organization indicates how well the human
resource function is performing.

Performance feedback allows the employee, manager, and Personnel specialists to

intervene with appropriate actions to improve performance.

Performance feedback guides career decisions about specific career paths one should
investigate.

Poor performance may be a symptom ill-conceived job designs. Appraisals help diagnose
these errors.

Deficiencies

Good or bad performance implies strengths or weakness in the personnel department’s

staffing procedures.

PROCESS OF PERFORMANCE APPRAISAL

Performance Appraisal is a nine step process :-

Step 1

In this step the performance standards are established based on the Job
Description and Job Specification. The standards should be clear, objective and
incorporate all the factors.

Step 2

Under this step, the Performance Standards are informed to all the employees
including Appraisals.

Step 3

51
 In this step, the instruction given to appraisal are followed, measurement of
employee performance by the appraisers through observation, interview, records and
reports are done.

Step 4

This step find out the influence of various internal and external factors on actual
performance.

Step 5

This step is to comparing the actual performance with that of other employees and
previous performance of the employee and others.

Step 6

The sixth step of Performance Appraisal Process, the actual performance is

measured with the standards and finding out deviations.

Step 7

The seventh step compares, the actual performance of the employee and other
employees doing the same job and discuss with him about the reasons for the positive or
negative deviations from the pre-set standards as the case may be.

Step 8

This step suggest necessary changes in standards, job analysis, internal and
external environment.

Step 9

The last step is the follow-up of performance appraisal report. This step includes
guiding, counseling, coaching and directing the employee or making arrangements for the
training and development pf the employee in order to ensure improved performance.

If the actual performance is very poor and beyond the scope of improvement, it
may be necessary to take steps for demotion or retrenchment or any suitable measure.

52
 METHODS OF PERFORMANCE APPRAISAL

1) Past Oriented Methods

a) Rating Scales

This is the simplest and the most popular technique for appraising employee
performance. It consists of several numerical scales, each representing job-related
performance criterion such as dependability, initiative output, attendance, attitude, co-
operation and the like. Each scale ranges from excellent to poor. The rater checks the
appropriate performance level on each criterion, then computes the employee’s total
numerical score. The number of points scored may be linked to salary increases whereby
so many points equal a rise of some percentage.

b) Checklist method

In this method, the raters doesn’t evaluate employee performance; he supplies reports
about it and the final rating is done by the personnel department. A series of questions are
presented concerning an employee to his behavior. The rater, then , checks to indicate if
the answer to a question about an employee is positive or negative. To value of each
question may be weighed equally or certain questions may be weighted more heavily
than others. Generally, the questions are on ‘Yes/No’ pattern.

c) Forced Choice Method

In this method, 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.

53
 Typical statements are :-

i) Learns Fast………………….Works hard

ii) Work is reliable…………… Performance is a good example

iii) Absent often…………………usually tardy

d) Forced Distribution Method

One of the errors in rating is leniency-clustering a large number of employees around a

high point on a rating scale. The forced distribution method seeks to overcome the
problems by compelling the rater to distribute the rates on all points on the rating scale.

For example, the following distribution might be assumed to exist – Excellent 10%,
Good 20%, Average 40%, Below Average 20% and Unsatisfactory 10%

e) Critical Incidents Method

This approach focuses on certain critical behaviors of an employee that makes all the
difference between effective and non-effective performance of a job. Such incidents are
recorded by the superiors as and when they occur.

f) Field Review Method

This is an appraisal by someone outside the assesee’s own department usually some one
from the corporate office or the HR department. The outsider reviews employee records
and holds interview with the ratee and his/her superior.

The method is primarily used for make promotional decision at the managerial level.

This method is also useful when comparable information is needed from employee in
different units or locations.

54
g) Cost Accounting Method

This method evaluates performance from the monetary returns the employee yields to his
or her organization. A relationship is established between the cost include in keeping the
employee and the benefit the organization derives from him or her. Performance of the
employee is then evaluated based on the established relationship between the cost and the
benefit.

h) Comparative Evaluation Approaches

This method is a collection of different methods that compare one worker’s performance
with that of his/her co-workers.

The usual comparative forms used in this kind of evaluation are the Ranking method and
the Paired Comparison Method.

i. Ranking Method

In this, the superior ranks his / her subordinates in the order of their merits,
starting from the best to the worst. Ranking can be given duly form A+, A, B+,
B……and so on.

ii. Paired – Comparison Method

Under this method, the appraiser compares each employee with every other
employee, one at a time. For example, there are five employees name A, B, C, D,
and E, the performance of A is first compared with the performance of B and a
decision is made about whose performance is better. Then A is compared with C,
D, and E. The same procedure is repeated for other employees.

The number of comparisons may be calculated with the help of formula which is
as under N(N-1)/2

Where, N= the number of employees to be compared.

55
 After the comparison, the result can be tabulated and a rank is created from the
number of times each person is considered to be Superior.

2) Future – Oriented Appraisals

a) Management By Objectives (MBO) Method

Peter F. Drucker was the first who gave the concept of MBO to the world way in 1954
when his The Practice Of Management was first published.

According to Prof. Reddin, “BO is the establishment of effectiveness areas and

effectiveness standards for the managerial positions and the periodic conversions of these
into measurable time bound objectives linked vertically and horizontally and with future
planning”.

MBO helps and increases employee motivation but it relates over all goals to the
individual’s goals and helps to increase an employee’s understand of where the
organization is and where it is heading.

MBO results in a “means ends” chain. Management at succeedingly lower level in the
organizations establishes targets which are integrated with those at the next higher level.
Thus, it can insure that everyone’s activity is ultimately aimed towards organization’s
goals.

MBO identifies performance deficiencies and enables the management and the
employees to set individualized self-improvement goals and thus proves effective
Training and Development programme.

b) Psychological Appraisals

Large organizations employ full-time industrial psychologists. When psychologists are

used for evaluations, they assess an individual’s future potential and not the past
performance. The appraisal normally consists of in-depth interviews, psychological tests,

56
 discussions with supervisors and a review of other evaluations. The psychologist then
writes an evaluation of the employee’s intellectual, emotional motivational and other
work-related characteristics that suggest individual potential and may predict future
performance.

c) Assessment Centres

This method is mainly used for executive hiring. Assessment centres are now being used
for evaluating executive or supervisory potential.

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, by observing their
behavior across a series of selected exercises or work samples.

Assesses are requested to participate in in-basket exercises, work groups (without

leaders), computer simulations, role playing, and other similar activities which requires
the same attributes for successful performance, as in the actual job.

After recording their observations of rate behaviors, the raters meet to discuss these
observations. Finally a decision is generated based on the discussion made.

57
 THE APPRAISAL INTERVIEW

The post appraisal interview has been considered by most of the organizations, as well as
employees, as the most essential part of appraisal system.

This interview provides the employee the feedback information, and an, opportunity to
the appraiser to explain the employee his rating, the traits and behavior he has taken into
consideration for appraisal.

It helps both the parties to review standards, set new standards based on the reality
factors, and helps the appraiser to offer his suggestions, help, guide and coach the
employee for his advancement.

OBJECTIVES OF APPRAISAL INTERVIEW

1) to let employee know where they stand

2) to help employees do a better job by clarifying what is expected of them

3) to plan opportunities for development and growth

4) to strengthen the superior-subordinate working relationship by developing

a mutual agreement of goals

5) to provide an opportunity for employees to express themselves on

performance related issues

Guidelines for effective Appraisal Interview

 select a good time

 inform to all employee a few days before the interview

 minimize interruptions

58
 welcome, set at ease

 start with something positive

 Ask open-ended questions to encourage discussion

 Listen

 Manage eye contact and body language

 Be specific

 Rate behavior, not personality

 Layout development plan

 Discuss the future as well as the past

 Encourage subordinate participation

 Try to make constructive discussion always

 Always make the discussion on the right track

 Complete form

 Set mutual agreeable goals for improvement

 End in a positive , encouraging note

 Set time for any follow-up meetings

59
 PROBLEMS OF PERFORMANCE APPRAISAL

The major problems in Performance Appraisal are :-

Rating Biases

The problem subjective measure (is that rating is not verifiable by others) has the
opportunity for bias.

The rater biases include :-

i) Halo Effect

It is the tendency of the raters to defend excessively on the rating of one trait or
behavioral consideration in rating all other traits or behavioral considerations.

ii) The Error Central Tendency

Some raters follow play safe policy in rating by rating all the employees around
the middle point of the rating scale and they avoid rating the people at both the
extremes of the scale. They follow play safe policy because of answerability to
management or lack of knowledge about the job and person he is rating or least
interest in his job.

iii) Leniency & Strictness

The leniency bias crops when some raters have a tendency to be liberal in their
rating by assigning higher rates consistently. Such ratings do not serve any
purpose. Equally damaging one is assigning consistently low rates.

60
iv) Recency Effect

The raters generally remember the recent actions of the employee at the time of
rating and rate on the basis of these recent action – favorable or unfavorable -
rather than on the whole activities.

2) Failure of the superior in conducting Performance Appraisal and Post

Performance Appraisal interviews.

Less reliability and validity of the Performance Appraisal

Techniques.

4) Negative rating affect Interpersonal Relations and Industrial Relation System

5) Influence of external environmental factors and uncontrollable internal factors

6) Some ratings particularly about the potential appraisal are purely based on
guesswork

7) Supervisors may get confused due to many objectives of Performance Appraisal

8) Management emphasizes on punishment rather than development of an employee

in Performance Appraisal.

61
COMPETITIVE ADVANTAGES OF PERFORMANCE
APPRAISAL

Improving Performance

An effective appraisal system can contribute to competitive advantage by

improving employee job performance in two ways – by directing employee
behavior towards organizational goals, and by monitoring that behavior to ensure
that the goals aremet.

Making Correct Decisions

Appraisal is a critical input in making decisions on such issues as pay raise,

promotion, transfer, training etcs

Ensuring Legal Compliance

Promotions made on factors other than performance might land up a firm in a

legal battle.

Minimizing Job Dissatisfaction & Turnover

Appraisal minimizes the frustration, dissatisfaction resulting increase in the

turnover among theemployees by generating a strong feeling of motivation.

Consistency between organizational strategy & behavior

Performance Appraisal system is an important organizational mechanism to elicit

feedback on the consistency of the strategy-behavior link.

62
 360° PERFORMANCE APPRAISAL METHOD

The Performance Appraisal method, in which multiple raters are involved in evaluating
performance, is called 360-degree appraisal.

The 360-degree technique is understood as systematic collection of performance data on

an individual or group, derived from a number of stakeholders- the stakeholders being the
immediate supervisors, team members, customers, peers, and self.

The appraiser should be capable of determining what is important and what is relatively
less important. He should prepare reports and make judgements without bias.

Supervisors

Supervisors include superiors of the employee, other superiors having knowledge

about the work of the employee and department head or Manager.

Peers

Peer appraisal may be reliable if the work group is stable over a reasonably long
period of time and performs tasks that require interaction.

Peer Consider the following factors while appraising :-

 Delegation of authority

 Team Spirit

 Motivation

Subordinates

The concept of having rated by subordinates is being used in most organizations

today, especially in developed countries. Such a novel method can be useful in

63
 other organizational settings too provided the relationships between superiors and
subordinates are cordial.

Self

If individual understand the objectives they are expected to achieve and the
standards by which they are to be evaluated, they are to a great extent in best
position to appraise their own performance.

Customers

Employee performance in every service organizations relating to behaviors,

promptness, speed in doing the job and accuracy, can better be judged by the
customers or users of services.

Consultants

Sometimes consultants may be engaged for the appraisal when employees or

employers do not trust supervisor for appraisal and management does not trust the
self-appraisal or peer appraisal or subordinate appraisal.

360 degree appraisal form design - template guidelines

Job descriptions are also a useful starting point for (but by no means the full extent of)
establishing feedback criteria, as are customer/staff survey findings in which
expectations/needs/priorities of appraisee performance are indicated or implied.

A 360 degree appraisal template typically contains these column headings or fields, also
shown in the template example below:

• Key skill/capability type (eg communications, planning, reporting, creativity and

problem solving, etc - whatever the relevant key skills and capabilities are for the role in
question).

64
• Skill component/element (eg 'active listening and understanding' [within a
'communications' key skill], or 'generates ideas/options' [within a 'creativity/problem
solving' key skill]). The number of elements per key skill varies - for some key skills
there could be just one element; for others there could be five or six, which I'd
recommend be the maximum. Break down the key skill if there are more than six
elements - big lists and groups are less easy to work with.

• question number (purely for reference and ease of analysis)

• specific feedback question (relating to skill component, eg does the person take
care to listen and understand properly when you/others are speaking to him/her? [for the
active listening skill])

• tick-box or grade box (ideally a,b,c,d or excellent, good, not good, poor, or rate
out of 5 or 10 - N.B. clarification and definitions of ratings system to participants and
respondents is crucial, especially if analysing or comparing results within a group, when
obviously consistency of interpretation of scoring is important)

360 degree feedback form template example

A typical 360 degree feedback form template would look like this. This template allows a
mixture of key skills comprising one, two, three, four, and up to six elements. The
number of elements per key skill/capability would vary of course, so if necessary adjust
the size of the boxes in the first column accordingly to accommodate more or less
elements. See the notes directly above for more explanation about the purpose of each
column and heading, and the feedback scoring method.

65
 Feedback Form headings and instructions: appraisee name, da feedback
respondent name, position (if applicable) plus l I instructions and guidelines for
completion, etc.

key skill/capability Sk skill/capability question feedback feedback

area element n number q question score

66
 Chapter 4
DATA ANALYSIS

67
 DATA ANALYSIS

Analysis has been made on the data collected by means of Questionnaires. For this
purpose, I prepared two questionnaires – First for the permanent Workers and Staff
members and Second for the Managers of Varun Beverages Ltd.

The Questionnaires have been prepared keeping in mind the level and magnitude of
activities carried out by the Workers, Staff & Managers. The basic aim of questionnaire is
to find out the mental perspective of the respondent towards the Performance Appraisal
exercise followed at Varun Beverages Lt.

The Questionnaire also aims at finding the level of motivation of the respondent with
reference to the performance appraisal exercise i.e. whether the respondent feels
motivated after his appraisal and works hard for the same.

The questionnaire also highlights some suggestions given by the respondents as

alternatives which the organization can practice for better working and for improving
satisfaction level of the employees.

68
 ANALYSIS BASED ON QUESTIONNAIRE ( WORKERS & STAFFS)

Q1) Are you aware of the Performance Appraisal (PA) Method followed in Varun
Beverages Ltd.?

Yes No

NO. OF
RESPONSE RESPONDANT PECENTAGE

Yes 24 60%

No 16 40%

TOTAL 40 100%

YES
NO

Inference
From the sample size of 40 respondents, only 24 are aware about the performance
appraisal system while other 16 are unaware about this.

It is thus cleared from the above analysis that about 40 % doesn’t know the performance
appraisal system at VBL

Q2) Are you satisfied with the existing P.A. Method followed in the Company?

69
 Highly Moderate Not at all

RESPONSE NO. OF PERCENTAGE

RESPONDENT

HIGHLY 11 28%

MODERATE 19 47%

NOT AT ALL 10 25%

TOTAL 40 100%

H IG H L Y
M O D E R A TE
N o t a t A ll

Inference
It is thus cleared from the above analysis that about are 28 % strongly satisfied, 47% are
moderately satisfies and 25% are unsatisfied by the performance appraisal system at
VBL.

This shows a very much unsatisfaction among employees regarding Performance System
at VBL

Q3) Are there Biases in the existing P.A. Method?

Yes No

70
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Yes 28 70%

No 12 30%

Total 40 100%

YES
NO

Inference
About 70% of the employees feel that there are biases in the Performance Appraisal
system at VBL.
This part constitutes a large amount of the total respondents.

Q4) Are you satisfied with the increment in your Salary?

71
 Yes No

RESPONSE NO. OF PERCENTAGE

RESPONDENT
Yes 07 18%

No 33 82%

Total 40 100%

YES
NO

Inference
From 40 respondent, 33 unsatisfied from their increment in salary and only 7 are
satisfied.
This shows a improper increment in salary or low satisfaction level among employee
regarding their salary increment.

Q5) Did Varun Beverages Ltd. provide any training at beginning of your joining?

Yes No

72
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Yes 29 72%

No 11 28%

Total 40 100%

YES
NO

Inference
Among 40 respondents, 29 said that they got training after joining the organization while
rest 11 respond to NO.
This shows that Training Program is also not undertaken with much care or there may be
some malfunctioning.

Q6) Is proper action taken after the fulfillment of the PA Forms?

Yes No

73
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Yes 12 30%

No 28 70%

Total 40 100%

YES
NO

As per the respondents, the proper actions are not being carried after the filling of
Appraisal Forms.
About 70% of the respondents, responds to NO, which shows a much amount and also
some mal-functionings in Performance Appraisal System

Q7) Is the PA exercise strictly followed or is just a formality?

Strictly followed Moderate Formality

74
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Strictly Followed 08 12%

Moderate 20 50%

Formality 12 30%
TOTAL 40 100%

Strictly
Followed
Moderate

Formality

Inference
The above data shows that very few employee feels that the Performance Appraisal
System really works in a proper way and most of were in the view of it as a Formality
one and is made on the papers.

Q8) Are you satisfied from the Feedback you get from your Supervisors?

75
 Completely Moderate Not at all

RESPONSE NO. OF PERCENTAGE

RESPONDENT
Completely 10 25%

Moderate 15 37%

Not at all 15 38%

TOTAL 40 100%

Completely
Moderate
not at all

Inference
From the above analysis one can find that there not proper discussion is being carried
among seniors and the junior employees

Q9) If the existing PA Method be changed? Would you readily accept the change?

Yes No

76
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Yes 29 72%

No 11 28%

Total 40 100%

YES
NO

Inference
Among 40 respondents, 29 said to change in existing Performance Appraisal Method and
also they will accept the newer method while rest 11 were satisfied to the existing method
and are not willing for new method

Q10) After filling PA Forms, are the results discussed between the Seniors &

Subordinates ?

77
 Yes No

RESPONSE NO. OF PERCENTAGE

RESPONDENT
Yes 28 70%

No 12 30%

Total 40 100%

YES
NO

Inference
About 70% of the employees feel that there are biases in the Performance

ANALYSIS BASED ON QUESTIONNAIRE (MANAGERS)

78
Q1) Are you aware of the Performance Appraisal (PA) Method followed in Varun
Beverages Ltd.?

Yes No

NO. OF
RESPONSE RESPONDANT PECENTAGE

Yes 35 87%

No 05 13%

TOTAL 40 100%

Yes
No

Inference
From the sample size of 40 respondents, 35 are aware about the performance appraisal
system while other 05 are unaware about this.

It is thus cleared from the above analysis that about 13 % doesn’t know the performance
appraisal system at VBL
Q)2 Who Appraises the Leaders/Heads/Managers?
Self Supervisors
Peers Unit Manager

79
 Sub-ordinates Chair Person

RESPONSE NO. OF RESPONDANT PECENTAGE

Self 02 5%

Peers 02 5%

Subordinates 04 10%

Supervisors 02 5%

Unit Manager 12 30%

Chair Person 18 45%

Total 40 100%

Self
Peers
Subordinates
Unit Manager
Supervisors
Chair Person

Inference

This shows that the Managers are Appraised mostly by the Unit Managers & the Chair
Person
Q3) Is PA at Managerial level seriously undertaken?
Yes No

80
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Yes 07 18%

No 33 82%

Total 40 100%

YES
NO

Inference
The above analysis shows that the Performance Appraisal is taken under seriously as
about 82% respondents have agreed regarding the respective question.

Q4) Are you satisfied with the existing P.A. Method followed in the Company?

Highly Moderate Not at all

81
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
HIGHLY 11 28%

MODERATE 19 47%

NOT AT ALL 10 25%

TOTAL 40 100%

H IG H L Y
M O D E R A TE
N o t a t A ll

Inference
It is thus cleared from the above analysis that about are 28 % strongly satisfied, 47% are
moderately satisfies and 25% are unsatisfied by the performance appraisal system at
VBL.

This shows a very much unsatisfaction among employees regarding Performance System
at VBL

Q5) Are you satisfied with the increment in your Salary?

Yes No

82
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Yes 33 82%

No 07 18%

Total 40 100%

YES
NO

Inference
From 40 respondent, 33 unsatisfied from their increment in salary and only 7 are
satisfied.
This shows a improper increment in salary or low satisfaction level among employee
regarding their salary increment.

Q6) Does the Appraisal System of the company motivates you?

Always
To a great extent
To some extent

83
 Not at all

RESPONSE NO. OF PERCENTAGE

RESPONDENT
Always 18 44
To a great 10 25
Extent
To some 07 18
extent
Not at all 05 13

Total 40 100%

Always
To Many Extent
To Some Extent
Not at all

Inference
The analysis shows that the Managers are motivated to different levels. However, most
of the Managers are motivated “Always” form the Performance Appraisal method at the
organization.

Q7) Are there Biases in the existing P.A. Method?

Yes No

RESPONSE NO. OF PERCENTAGE

84
 RESPONDENT

Yes 28 70%

No 12 30%

Total 40 100%

YES
NO

Inference
About 70% of the employees feel that there are biases in the Performance Appraisal
system at VBL.
This part constitutes a large amount of the total respondents.

Q8) In your opinion, do Managers requires Management Development

Programmes (MDP)?

Yes No

85
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Yes 33 82%

No 07 18%

Total 40 100%

YES
NO

Inference
From 40 responding Managers, around 33 agreed in the view that the MDP should be
given to them, while rest 07 disagreed and doesn’t need the programme

Q9) Has Varun Beverages Ltd. organized any Training Programmes for its
Managers or Department Heads etcs?.

Yes No

86
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
Yes 29 72%

No 11 28%

Total 40 100%

YES
NO

Inference
Among 40 respondents, 29 said that they got training after joining the organization while
rest 11 respond to NO.
This shows that Training Program is also not undertaken with much care or there may be
some malfunctioning.

Q10) Do you think the Training MDP will affect the performance levels of
the Leaders?

Highly Moderate Not at all

87
 RESPONSE NO. OF PERCENTAGE
RESPONDENT
HIGHLY 11 28%

MODERATE 19 47%

NOT AT ALL 10 25%

TOTAL 40 100%

H IG H L Y
M O D E R A TE
N o t a t A ll

Inference
Regarding affect of MDP over Mangers, many of the respondents were in Moderate
view.
However, respondent in view of Highly & Not at all are almost the same.

88
 FINDINGS
AND
RECOMMENDATIONS

89
RECOMMENDATIONS

• Certain recommendations can be made after interviewing various employees at

different levels with the help of my data sheet.

Some recommendations are as follows :-

• Good performer should not only be rewarded by promotion etc.,but also by

appreciation of their performance in public

• Worker’s opinion regarding their job should be given more priority. The work related
benefits like overtime, production incentives expenses should be provided to the
employees

• There should be proper utilization of existing manpower

• Employees should be given recognition at proper intervals.

• Suggestions from the employees should be welcomed with open arms and if found
suitable should be implemented

• More opportunities should be given to the employees regarding, T&D, MDPs,

participation in decision makings etcs.

90
CONCLUSION

After analysis of the data collected and compiled we can say that, VBL is doing well but
a major area for the concern is that the employees feel themselves are not being involved
in the decision making activity. This may bring down the moral of the employees. Thus,
the company should feel more free to work and accomplish the maximum results.

In conducting this study, it was found some employees are satisfied with the company’s
appraisal technique whereas some are not. This is bringing down the motivation level of
the employees. Thus, the management should pay heed to the problems faced by the
dissatisfied employees and may even implement the suggestions given by them.

The company should have manageable working hours and equitable pay to ensure
employee satisfaction. The company should also reward the efficient employees
occasionally to motivate them. Public appreciation of his/her performance may also prove
fruitful to this purpose.

If the organization does so, one can say for sure that the company will have a brighter
future.

91
ANNEXURE

92
 QUESTIONNAIRE
( For Workers & Staff Members )

Name :- ……………………………………………..

Age:- (Tick mark to which you belong)

Under 20 years Under 50 years
Under 30 years Under 60 years
Under 40 years Under 70 years

Deptt :-
Production Accounts Maintenance
Quality Control Security Marketing
TPT PMX HR

Designation:-…………………..

Grade:-
W1 S1
W2 S2
W3 S3

Current Salary (in Rs):-…………………….

Experiences(in Years) :-………….................

First Promotion :-…………………….

Salary (Before 1st Promotion):-……………..

93
1) Are you aware of the Performance Appraisal (PA) Method followed in
Varun Beverages Ltd.?
Yes No

2) Are you satisfied with the existing P.A. Method followed in the Company?
Highly Moderate Not at all

3) Are there Biases in the existing P.A. Method?

Yes No

4) Are you satisfied with the increment in your Salary?

Yes No

5) Did Varun Beverages Ltd. provide any training at beginning of your joining?
Yes No

6) Is proper Training given/recommended in PA Forms?

Yes No

7) Is proper action taken after the fulfillment of the PA Forms?

Yes No

8) Is the PA exercise strictly followed or is just a formality?

Strictly followed Moderate Formality

9) Are you satisfied from the Feedback you get from your Supervisors?
Completely Moderate Not at all

10) After filling PA Forms, are the results discussed between the Seniors &

Subordinates ?

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 Yes No
QUESTIONNAIRE
(For Managers)

Name :- ……………………………………………..

Age:- (Tick mark to which you belong)

Under 20 years Under 50 years
Under 30 years Under 60 years
Under 40 years Under 70 years

Deptt :-

Production Accounts HR
Quality Control Security Marketing
TPT PMX Maintenance

Designation:-…………………..

Grade:-
M1 M6
M2 M7
M3 M8
M4 M9
M5 M10

Current Salary (in Rs):-………………….

Experiences(in Years) :-………….............

First Promotion :-………………….

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Salary (Before 1st Promotion):-…………..

Are you aware of the Performance Appraisal (PA) method followed in Varun
Beverages Ltd.?
Yes No

How frequently is PA done ?

Monthly
Quarterly
Semi-Annually
Annually

Who Appraises the Leaders/Heads/Managers?

Self
Supervisors
Peers
Sub-ordinates

Is PA at Managerial level seriously undertaken?

Yes No

Are you satisfied with the existing P.A. Method followed in the Company?
Highly Moderate Not at all

Are you satisfied with the increment in your Salary?

Yes No
Does the Appraisal System of the company motivates you?
Always
To a great extent
To some extent

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 Not at all
Are there Biases in the existing P.A. Method?
Yes No

Which PA Method would you alternatively suggest for the existing one?
……………………………………………………………………………
……………………………………………………

Suggestions (if any):-………

………………………………………………….....................................
……………………………………………………………………………….
………………………………………………………………………………..

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REFERENCES

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 REFERENCES

HUMAN RESOURCE MANAGEMENT

 Human Resource Management &
Personnel Management - K. Aswathapa
 Human Resource Management - T.N. Chabra

RESEARH METHODOLOGY
 Research Methodology - C.R. Kothari

MARKETING RESEARH
 Marketing Research - Rajendra Nargundkar

WEBSITES

 www.pepsi.com
 www.pepsiworld.com
 www.pepsico.com
 www.pbg.com
 www.rkjgroup.com
 www.google.com

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