A

PROJECT REPORT

SUMMER TRAINING

ON

“PERFORMANCE APPRAISAL”

AT

“HEINZ INDIA PVT LTD”

FOR THE PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF UNDER THE SUPERVISION OF Ms. Hina Siddqui Mrs. Seema Singh

Lecture of IBM HR Executive

SUBMITTED BY:-

RADHA SINGH

MBA (2011-2013)

MANGALAYATAN UNIVERSITY

33RD KM STONE, ALIGARH-MATHURA HIGHWAY,

BESWAN, ALIGARH

DECLARATION

I Radha Singh, Enroll no 2011MBA001 a student of MBA in the Mangalayatan University, Aligarh. Hereby declare that the project report titled “PERFORMANCE APPRAISAL IN HEINZ INDIA PVT LTD” is going original work.

Radha Singh

ACKNOWLEDGMENT

All glory to the Almighty without his blessings this work would not have been possible. I bow my head before him.

I would like to extant my warm gratitude to my supervisor Ms. Hina Siddiqui Mangalayatan University, Aligarh. For her guidance and continued encouragement throughout the study.

I sincerely thank my entire organization member who gave their valuable inputs and helped me to successfully complete this project.

I PREFACE

Project repot is necessary part of fulfillment of MBA course. The emphasis in the project the study and an insight into Indian business scenario.

The research project is designed to provide participation of MBA program as soon on the job experience. This has given chance to try and apply, the academic knowledge and gain insight into corporate culture.

This project report entitled “PERFORMANCE APPRAISAL SYSTEM IN HEINZ INDIA PVT LTD.”

The projects consist of my findings after tabulation of collected data, then interpretations and conclusions were drawn and finally suggestions were put forwarded.

TABLE OF CONTENTS

I. CertificateII. Acknowledgment

III. Preface

1. Executive Summary 12. Introduction 23. Performance Appraisal 94. Area of Study 125. Objectives of Study 136. Research Methodology 147. Method of data 158. Sample Design 159. Source of Data 16 10.Finding 4111.Conclusion 4212.Suggestions 4313.Limitations 4414.Bibliography 45

EXECUTIVE SUMMARY

Henry john Heinz founded Henry Heinz developed sophisticated brand- building strategies without the advantages of modern economic analytic technique, data and theory. HBS professor Nancy F.Koehn shows how in this excerpt from her Business. As a child Henry Heinz sold excess vegetables from his mother’s garden, and by high school he was buying vegetables at wholesale and delivering them to neighbors’ home at a mark up. After attending Business College and working in the office of his father’s brick factory, he opened Heinz, Noble & company in 1869, selling bottled horseradish with his friend L. Clarance Noble. They added pickles and vinegar before bankrupt five years later. In 1875, in partnership with brother john and Cousin Frederick, he opened F & J Company. , selling the same array of condiments plus Heinz now famous Ketchup .In 1888 he bought out his partners and re-named the business H.J.Heinz Company, and by the time the company was incorporated in 1990, Heinz was already the country’s leading manufacturer of ketchup, mustard, pickles and vinegar.

Heinz broke with most of food industry in his ardent support of the pure food and drug act, and his company is one of the first to open its doors for “public tours”, to reassure customers that his products were produced under sanitary conditions. He was also known for gaudy but impressive advertising gimmicks, including some of the first billboards to be late at night,

1

INTRODUCTION

INTERNATIONAL

HEINZ international company is one of the American paradigms. It began shortly after the civil war, in a family garden near Pittsburgh Pennsylvania. In the year 1869, its founder HENRY JOHNS HEINZ was a pioneer I food processing and product marketing .He was a remarkable man, an energetic entrepreneurial boy from a pastor and a village near Pittsburgh, who was not only a business genius, but a man of high morals, principles and personal rectitude, setting a new standard for the entire world.

H.J.HEINZ Company is well known player in FMGC category. It s has stands second in the world among food product companies next to nestle. It has been certified by ISO-9000.

HEINZ is the company known as ‘a good place of work’ since 1869 and still known by this name. Heinz follows ‘good food manufacturing practices’. 1994 was significant year in the life of the H.J.HEINZ Company. It also marked HEINZ in the mind 1990’s –vigorous and full of beans’- both executing today’s strategies and forging those that would became the foundation of Heinz in the 21st Century, the Heinz of tomorrow.

The H.J.HEINZ Company is constantly looking forward into the future and backward into the past. By US standards, the Heinz Company at 125is also one of the dwindling numbers of surviving companies. Fewer companies, since the takeover days of the 1980’s, still bear the name of their founder. By any standard, it is a remarkable feat.

2

HISTORY OF CHANGING NAME FROM GLAXO TO HEINZ

The GLAXO INDIA LTD was incorporated in India on November, 1924 as an agency house for distributing. The well known baby food ‘GLACTO’ of a British co. which was recognized internationally as one of the leading manufacturers based pharmaceuticals and food products.

In the early 1990’s Glaxo was going in losses in the manufacturing of food products all over the world. Glaxo was asked to close all its food products over the entire globe.

However, Aligarh plant was running in profits so it did not want to close the unit and hence asked the headquarters agreed on a condition to continue the food product after changing the name so Glaxo India Ltd remained as Glaxo Laboratories India.

This change in name caused a negative effect on sales of pharmaceutical product so GLAXO INDIA inquired from the headquarters again to allow using the old name Glaxo India Ltd. The permission was granted. But due to competition in food product market Glaxo India Ltd thought that as the headquarters is not facilitating R and D program regarding food products so it would become difficult in the near future to survive in the growing stiff competition. Therefore Glaxo India Ltd thought that they should their Aligarh plant at the time when it is making profits so that good value could be earned from it. Ultimately in 1994 Glaxo India Ltd took a decision to sell its food products manufacturing unit in Aligarh. Heinz India private Ltd, in October 1984, as Glaxo has decided to concentrate only on pharmaceuticals. Heinz India private Ltd by 1999 has demand public co.’ as it has crossed the average annual turnover of Rs. 10 crores for three consecutive years. A limit set by companies act 1956 which permits a co. to omit writing the word ‘private’ in its name. So Heinz India privateLtd was renamed as Heinz India ltd and again renames the company Heinz India Pvt Ltd.

3

PRODUCTION RANGE: HEINZ INDIA PVT.LTD.

Instant Energy Drink

Gulcon –D Original

Gulcon –D Orange

Gulcon-D Nibu Pani

4

Energy Rich Health Drink

Natural complain

Chocolate complain

Strawberry complain

5

Caramel Complain

Mango Complain

Pista Badam

6

Prickly Heat Powder :- Prickly heat powder is manufactured under the brand of Nycil which is available in following five fragrances.

Classic Excel

Herbal Sandal

Lavender

7

Ghee:-As a byproduct of milk is manufactured under the brand name of Sampriti. It is manufacture at Aligarh Plant.

Heinz Ketchup: - Recently Heinz has came up with a product although Heinz is primarily a ketchup manufacturing company, this is the first ever ketchup produced by Heinz for Indian market.

8

PERFORMANCE APPRAISAL

9

In simple term, Performance Appraisal may be understood as the assessment of an individual performance in a systemic way, the performance being measured against such factors as job knowledge, quality and quantity of output, supervision ects.

Objectives of performance appraisal:- To effect promotion based on competence and performance. To assess the Training &Development needs of employees. To create and maintain a satisfactory level of performance. To help the supervisor to have a proper understanding about their

subordinates. When to Appraise?Informal appraisal is conducted whenever the supervisor or personnel feel it necessary.Appraisals are conducted on a regular basis, say for example, every Month, four month, six month, or Annually. Whose Performance should be rated?To question as to who’s performance should be rated?That is, who can be rate?The answer is – Employees. Who are raters?Raters supervisors, subordinates, peers, Clients.

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Performance appraisal at Heinz India Pvt.Ltd

In case of Heinz India Pvt. Ltd. , the grading method is used to appraise its employees on an annual basis. In this method, the raters consider certain features and mark them accordingly to the scale. The grades may also be assigned accordingly to the nature of the work.

In Heinz India. Pvt. Ltd. S Grades have been assigned by the employees. The employees are categorized into three main grade classes, namely, workers, staff member & managers.

Workers

W1……….Unskilled workers

W2……….Semi- skilled workers

W3……….Skilled workers

Staff Members

S1…....... Junior supervisors

S2………Supervisors

S3………senior supervisor

Managers

M1……… HR Executive

M2…………Senior Executive

M3…………Manager

M4………….General Manager

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AREA OF THE STUDY

My area of study is performance appraisal system at Heinz, Aligarh. According to Flippo,” Performance 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”.

My study will be helpful in knowing the relationship between performance of an employee and his performance appraisal and the effect performance appraisal has on the motivation of an employee.

I tried to know the loopholes of performance appraisal system at HEINZ INDIA PVT.LTD.

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OBJECTIVES OF STUDY

1. To identify the level of motivation, job satisfaction and Performance among the employees after & before the conduction of Performance Appraisal exercise.

2. To find out the loopholes in the Performance Appraisal system at Heinz India Pvt Ltd.

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RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the research problem involving a study of various steps that are adopted the researcher in studying research problem.

This includes:-

Defending the research problem Sampling Design Research Design Method of Data collection Data Analysis & interpretation

.Research Design

An overall “Rigid” descriptive research design has been used focusing attention on:-

Formulation of objectives of the study Designing methods for the Data Collection Selecting the sampling size Collecting the Data Processing & Analysis of data Reporting the finding

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Methods of Data Collection

Primary Data

Primary data is that kind of data which is collected by the investigator himself for the purpose of the specific study. The data such collected is original in character. The advantage of this method of collection is the authentic. Primary data was collected using Questionnaire. Sampling Technique.

Universe – Employees from every department having their respective Grades & Designation

Sampling Unit - The sampling unit was limited to Heinz India Pvt. Ltd.

Sampling Size – Workers-20, Staff Members-20 & Managers-40

Sample Design – Convenience sampling method without any stratification to obtain an uniform of respondents of every Grade & Designation.

Research Tool - questionnaire

15

DATA ANALYSIS AND INTERPRETATIO

16

ANALYSIS BASED ON QUESTIONNAIRE

(WORKERS & STAFFS)

17

Q) Are you aware of the performance Appraisal Method followed in Heinz India Pvt.Ltd?

Yes NoRESPONSE NO.OF RESPONDANT PERCENTAGEYes 24 60%No 16 40%TOTAL 40 100%

60%

40%

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

19

Q) Are you satisfied with the existing P.A.Method followed in the company?

Highly Moderate not at all

RESPONSE NO OF RESPONDENT PERCENTAGEHIGHLY 11 28%MODERATE 19 47%NOT AT ALL 10 25%TOTAL 40 100%

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 at Heinz Agro Industries Ltd.Thus shows a very much unsatisfaction among regarding Performance system at Heinz Agro Industries ltd

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

Yes No

RESPONSE NO OF RESPONDENT PERCENTAGEYES 28 70%NO 12 30%TOTAL 40 100%

70%

30%

Inference

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

21

Q) Are you satisfied with the increment in your salary?

Yes No

RESPONSE NO. OF RESPONDENT PERCENTAGEYes 33 82%No 07 18%Total 40 100%

82%

18%

Inference

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

22

Q) Did Heinz India Pvt ltd .provide any training at beginning of your joining?

Yes No

RESPONSE NO. OF RESPONDENT PERCENTAGEYes 29 72%No 11 28%Total 40 100%

72%

28%

Inference:-Among 40respondents, 29 said that they got training after joining the

organization while rests 11 respond to No.

This shows that training program is also not undertaken with much care or there may be some malfunctioning.

23

Q) Is proper Training given/ recommended in P A forms? Yes No

RESPONSE NO.OF RESPONDENT PERCENTAGEYes 24 60%No 16 40%Total 40 100%

Inference

24 respondent from 40 said training is recommended in the PA from, while 16 responds to NO. The ratio is 60:40This shows non-weight age is being given for Training & Development to the employees in the Appraisal.

24

60%

40%

Chart Title

Q) Is proper action taken by the worker after the fulfillment of the PA Forms?

Yes No

RESPONSE NO.OF RESPONDENT PERCENTAGEYes 12 30%No 28 70%Total 40 100%

30%

70%

Chart Title

Inference

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

25

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

Strictly followed Moderate Formality

RESPONSE N.OF RESPONDENT PERCENTAGEStrictly followed 08 20%Moderate 20 50%Formality 12 30%Total 40 100%

20%

50%

30%

Chart Title

Inference

The above data shows that very few employees’ 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.

25

Q) Are you satisfied from the feedback you get from your supervision?

Completely Moderate Not at all

RESPONSE NO.OF RESPONDENT PERCENTAGECompletely 10 25%Moderate 15 37%Not at all 15 38%Total 40 100%

25%

37%

38%

Chart Title

Inference

From the above analysis one can find that there not proper discussion is being

carried among seniors and the junior employees.

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Q) If the existing PA Method be changed? Would you readily accept the change? Yes No

RESPONSE NO.OF RESPONDENT PERCENTAGEYes 29 72%No 11 28%Total 40 100%

72%

28%

Chart Title

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.

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Q) After filling PA forms, are the results discussed between the seniors & subordinates?

Yes No

RESPONSE NO.OFRESPONDENT PERCENTAGEYes 28 70%No 12 30%Total 40 100%

70%

30%

Chart Title

Inference

About 70% of the employees say that the results are discussed between senior and subordinate

While 30% says no there is no discussion between and subordinate.

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ANALYSIS BASED ON QUESTIONNAIRE (MANAGERS)

29

Q) Are you aware of the performance appraisal method followed in Heinz India Pvt. Ltd?

Yes No

RESPONSE NO. OF RESPONDENT PERCENTAGEYes 35 87%No 05 13%Total 40 100%

87%

13%

Chart Title

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 Heinz.

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Q) Who Appraises the Leaders/Heads/Managers?

Self supervisor

Peers Unit Manager

Sub - ordinates Chair Person

RESPONSE NO.OF RESPONDENT PERCENTAGESelf 02 5%Peers 02 5%Sub – Ordinates 04 10%Supervisor 02 5%Unit Manager 12 30%Chair person 18 45%Total 40 100%

5%

5%

10%

5%

30%

45%

123456

Inference:-This shows that Managers are appraised mostly by the Unit

Managers & Chair Person.

31

Q) Is PA as Managerial Level seriously undertaken?

Yes No

RESPONSE NO. O RESPONDENT PERCENTAGEYes 33 82%No 07 18%Total 40 100%

82%

18%

12

Inference

The above analysis shows that the Performance Appraisal is taken under seriously

as about 82% respondent have agreed regarding the respective question.

32

Q) Are you satisfied with the existing PA Method followed in the company?

Highly Moderate Not at all

RESPONSE NO.OF RESPONDENT PERCENTAGEHighly 11 28%Moderate 19 47%Not at all 10 25%Total 40 100%

82%

18%

12

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 Heinz

This shows a very much unsatisfaction among employees regarding performance system at Heinz.

33

Q) Are you satisfied with the increment in your salary?

Yes No

RESPONSE NO.OF RESPONDENT PERCENTAGEYes 33 82%No 07 18%Total 40 100%

82%

18%

12

Inference

From 40, respondent, 33 satisfied from their increment in salary and only 7 are unsatisfied.

This shows a proper increment in salary or high satisfaction level among employee

regarding their salary increment.

34

Q) Does the Appraisal System of the company motivate you?

Always To a great extent

To some extent Not at all

RESPONSE NO.OF RESPONDENT PERCENTAGEAlways 18 44%To a great extent 10 25%To some extent 07 18%Not at all 05 13%Total 40 100%

28%

47%

25%

123

Inference

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

35

Q) Are there Biases in the existing PA Method?

Yes No

RESPONSE NO.OF RESPONDENT PERCENTAGEYes 28 70%No 12 30%Total 40 100%

28%

47%

25%

123

Inference

About & 0% of the employees feels that there are biases in the Performance Appraisal system Heinz.

This part cogitates a large amount of the total respondent.

36

Q) In your opinion, do Managers require Management Development Programme?

Yes No

RESPONSE NO.OF RESPONDENT PERCETAGEYes 33 82%No 07 18%Total 40 100%

28%

47%

25%

123

Inference

From 40 responding Managers, around 33 agreed in the view that the MDP should be given to them, while 07 disagreed and does not need the programme.

37

Q) Has Heinz India Pvt. Ltd. organized any Training programme for its Managers or Department head ects?

Yes No

RESPONSE NO.OF RESPONDENT PERCENTAGEYes 29 72%No 11 28%Total 40 100%

28%

47%

25%

123

Inference

Among 40 respondents, 29 said that they got training after joining organization while rests 11 respond to NO.

This shows that training program is not also undertaken with much care or there

may be some malfunctioning.

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

Highly Moderate Not at all

RESPONSE NO OF. RESPONDENT PERCENTAGEHighly 11 28%Moderate 19 47%Not at all 10 25%Total 40 100%

28%

47%

25%

123

Inference

Regarding affect of MDP over Managers, Many of the respondents were in moderate view.

However, respondent in view of highly& not at all almost the same.

39

Q) Is the Pa exercise strictly followed or is just a formality?

Strictly followed Moderate Formality

RESPONSE NO OF. RESPONDENT PERCENTAGEStrictly followed 08 12%Moderate 20 50%formality 12 30%

40 100%

13%

54%

33%

123

Inference

The above data shows that very few employees feel that the Performance Appraisal system really workers in a proper way and most of were in the view of it as a formality one and is made on the papers.

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Findings

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 Heinz India Pvt. Ltd.

In my finding 60:40 ratio are there 60 employees take seriously and always aware and 40 are not responding in Performance appraisal there are some loopholes.

In Heinz lot of employees are satisfied.

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CONCLUSION

After analysis of the collected and complied w can say that, Heinz India Pvt. Ltd. Is doing well but a major area of 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 to free 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 faced by the employees. Thus, the management should pay heed to 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 motivation 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.

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Suggestions

Some of the suggestions given by my side:-

Working hours are too strict to be followed. Salary should be increased after appraisal exercise has been conducted Salary should be increased considerably to motivate the employees. Training & development Programme should be undertaken to improve the

productivity and efficiency of the employees.

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LIMITATIONS

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

Shortage of time duration for the research work.

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

management

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

44

BIBLOGRAPHY

Company Records & Manual.

Data from the Past records of the company. Accounting Standards (AS 6 and As10) Company Web sites:

www.heinzindia.com

www.heinz.in.co

Other web sites: www.incometaxindia.gov.in www.icai.org