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A STUDY ON

“PERFORMANCE MANGEMENT PROCESS”

IN

PEPSICO

(ARADHANA FOODS AND JUICES PVT.LTD, POTHIREDDY PALLY VILLAGE,

SANGAREDDY MANDAL, MEDAK DIST, A.P.)

A Project submitted to GITAM University, in partial fulfillment

Of the requirement for the award of Degree of

MASTER OF BUSINESS ADMINISTRATION

By

PINKI BISWAS

(1225110238)

Under the Esteemed Guidance of

MS. S.ANJANI DEVI

(ASSISTANT PROFESSOR)

GITAM INSTITUTE OF MANAGEMENT

GITAM UNIVERSITY

VISAKHAPATNAM

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DECLARATION

I,PINKI BISWAS, hereby declare that the Project entitled “PERFORMANCE

MANAGEMENT PROCESS” in PEPSICO,HYDERABAD is an original work carried out by

me. This project is submitted under the esteemed guidance of Ms. S. ANJANI DEVI Assistant

Professor, GITAM Institute of Management, GITAM University, Visakhapatnam, is a

bonafied work carried out by me and has not been submitted to any other college or university

for the award of any kind of degree.

Place: PINKI BISWAS

Date: (1225110238)

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CERTIFICATE FROM GUIDE

This is to certify that the project Report titled “A STUDY ON PERFORMANCE

APPRAISALPROCESS”

with reference to PEPSICO, HYDERABAD is an original work carried out by Pinki Biswas Reg. No 1225110238, under my guidance and supervision in partial

fulfillment for the award of MBA program of GITAM INSTITUTE OF MANAGEMENT,

GITAM University, VISAKHAPATNAM during the Academic year 2010-2011. This report is

not submitted to any other University or Institution for the award of any

Degree/Diploma/Certificate.

Visakhapatnam:

Date: Ms. S. Anjani Devi

Asst. Prof

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ACKNOWLEDGEMENT

I express my profound gratitude to PROF .K. SIVARAMAKRISHNA, Principal,

PROF.P.SHEELA, Vice-Principal and Ms. K.V.UMA DEVI, Associate Professor, GITAM

INSTITUTE OF MANAGEMENT, GITAM UNIVERSITY for necessary cooperation

extended to me in doing my project work.

With my immense pleasure I would like to express my sincere thanks to my project guide

Ms. S.ANJANIDEVI, Assistant Professor for giving me this opportunity to successfully

complete my project work.

I also express my deep sense of gratitude to the management of PEPSICO for giving me this

opportunity to study “PERFORMANCE MANGEMENT PROCESS” in their esteemed

organization.

I extend my heartfelt thanks to MR.VENKAT SUNDARAM, GENERAL MANAGER,

HUMAN RESOURCES PEPSICO for kindly obliging to my proposal to do my internship in

their prestigious organization.

I take this opportunity to acknowledge my sincere thanks to MR.P.SANDEEP KUMAR,ASSISTANT MANAGER, HUMAN RESOURCES who was my Project Guide and for

spending his valuable time despite of his busy schedule. He has been a staunch pillar of support

to my data analysis and to all the employees whose cooperation and valuable guidance helped

me to enhance my knowledge in the subject.

I would humbly thank the representatives and employees of PEPSICO and all those individuals

who made this study A GRAND success, giving their support directly and indirectly.

PINKI BISWAS

(1225110238)

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CONTENTS

Particulars Pg.No.

EXECUTIVE SUMMARY

LIST OF TABLES

LIST OF FIGURES

Chapter 1: THEORITICAL AND CONCEPTUAL ANALYSIS

a. Main Subject (Performance management overview)b. Topic related concepts (Concepts of Performance management)

Chapter 2: METHODOLOGY

a. Need Significance of Studyb. Objectives of Studyc. Scope of Studyd. Research Designe. Limitations

Chapter 3: PEPSICO PROFILE

a. Industry profile of PepsiCob. Organizational profile (PepsiCo)c. Topic profile in the organization (Performance Management Process)

Chapter 4: ANALYSIS

a. Data collection and Analysis

Chapter 5:

a. Findingsb. Suggestionsc. Conclusions

BIBLIOGRAPHY

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ANNEXURE (Questionnaire)

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INTRODUCTION TO PERFORMANCE MANAGEMENT:

PERFORMANCE MANGEMENT (PM) includes activities that ensure that goals are

consistently being met in an effective and efficient manner. Performance management can focus

on the performance of an organization, a department, employee, or even the processes to build a

product or service, as well as many other areas.

“Performance Management is a cyclical process aimed at improving performance.”

In organizational development (OD), performance can be thought of as Actual Results versus

Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the

performance improvement zone. Performance management and improvement can be thought of

as a cycle:

1. Performance planning where goals and objectives are established.

2. Performance coaching where a manager intervenes to give feedback and adjust

performance.

3. Performance appraisal where individual performance is formally documented and

feedback delivered.

Once an employee is selected and trained for a job then management would like to see how he

performs his work. It helps in evaluating the performance of employees and in assessing the

hiring and training methods followed in an organization. Merit rating is a „process of evaluating

an employee‟s performance of a job in terms of its requirements‟.

MERIT RATING IS ALSO TERMED AS PERFORMANCE APPRAISAL OR EMPLOYEE

APPRAISAL.

MEANING AND DEFINITION:

Performance appraisal is the process of measuring quantitatively and qualitatively an employees‟

past or present performance against the background of his expected role performance, the

background of his work environment, and about his future potential for an organization. The

evaluation of the performance and personality of each employee is done by his immediate

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superior or some other person trained in the techniques of merit rating. Various rating techniques

are employed for comparing individual employees in a group in terms of personal qualities or

deficiencies and the requirements of their respective jobs.

ACCORDING TO EDWARD FLIPPO“Performance appraisal is the systematic, periodic and

an impartial rating of an employee‟s excellence in matters pertaining to his present job and his

potential for a better job.”

NEED OF THE STUDY:

Performance Appraisal has been considered as the most significant and indispensable tool for an

organization, for the information it provides is highly useful in making decisions regarding

various personnel aspects such as promotion and merit increases. Performance measures also

link information gathering and decision making processes which provide a basis for judging the

effectiveness of personnel sub-divisions such as recruiting, selection, training and compensation.

Accurate information plays a vital role in the organization as a whole. They help in finding out

the weaknesses in the primary areas. Formal Performance Appraisal plans are designed to meet

three needs, one of the organization and the other two of the individual namely:

They provide systematic judgments to back up salary increases, transfers,

demotions or terminations. They are the means of telling a subordinate how he is doing and suggesting

needed changes in his behavior, attitudes, skills or jobknowledge. They let him

know where he stands with the Boss.Superior uses them as a base for coaching

and counseling the individual.

On the basis of merit rating or appraisal procedures, the main objectives of employee appraisal

are:

To enable an organization to maintain an inventory of the number and quality of all

managers and to identify and meet their training needs and aspirations.

To determine increment rewards and to provide reliable index for promotions and

transfers to positions of greater responsibility.

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To suggest ways of improving the employee s performance when he is not found to be

up to the mark during the review period.

To identify training and development needs and to evaluate effectiveness of training and

development programs.

To plan career development, human resource planning based potentials.

OBJECTIVES OF THE STUDY:

Performance appraisal can be carried out with various objectives in mind and these objectives

can be classified under the following four heads

(a) WORK-RELATED OBJECTIVES:To assess the work of employees in relation to

job requirements, improve efficiency and carry out job evaluation.(b) CAREER DEVELOPMENT OBJECTIVES: To assess the strong and weak points

in the working of the employees and finding remedies for weak points through

training, plan promotions, transfers, layoffs, etc. of the employees and plan career

goals.

(c) COMMUNICATION: To give feedback to the employees about their performance,

develop positive superior-subordinate relations and provide coaching, counseling,

career planning and motivation to employees.

(d) ORGANIZATIONAL OBJECTIVES: To serve as the basis for promotion or

demotion, wage and salary administration, planning suitable training and

development programs and transfer or termination.

SCOPE OF THE STUDY:

The term "Performance Management" is often used in two contexts:

1. A way of maximizing performance of an individual, team or organization

2. A process for dealing with underperforming individuals (or teams).

Whilst the underlying principles are always the same, the way in which they are implemented

varies between the two contexts:

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Maximizing performance Poor performers

Usually collaborative between

management and staff Involves more confrontation

Can be informal, with written

records only recording revised

targets

Is a formal process with each

step being written down

Is a cyclical process, one of

constant improvement

Is a process that escalates into

disciplinary proceedings,

possibly concluding with

termination of employment

Often involves analysis of the

process

Often involves analysis of one

individual's behaviors/attitudes

PERFORMANCE APRAISAL PROCESS:

Performance appraisal should be done on the basis of certain standards or criterion fixed in

advance. Unless a proper process is used for evaluation, it will not give good results. Following

process is used for merit-rating:

1.

Establishing standards: Standards help in setting yardsticks for evaluating performance. 2. Communicating standards to employees: Employees should know what is expected

from them.

3. Measuring actual performance: Deviations in performance are noted in this stage.

4. Comparing actual with standards: The actual performance is compared to the

standards set earlier for finding out the standing of employees.

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5. Discussing reports with the employees: The assessment reports are discussed

periodically with concerned employees.

6. Taking corrective actions: Evaluation process will be usefulonly when corrective action

is taken on the basis of reports. Corrective action may be in the form of advice, counsel,

warning, training, etc. These actions will be useful in helping employees to improve their

performance in future.

RESEARCH DESIGN:

A research design is a type of blueprint prepared on various types of blueprints available for the

collection, measurement and analysis of data. A research design calls for developing the most

efficient plan of gathering the needed information. The design of a research study is based on the

purpose of the study.A research design is the specification of methods and procedures for

acquiring the information needed. It is the overall pattern or framework of the project that

stipulates what information is to be collected from which source and by what procedures.

Sampling:

An integral component of a research design is the sampling plan. Specifically, it addresses three

questions

Whom to survey (The Sample Unit)

How many to Survey (The Sample Size) &

How to select them (The Sampling Procedure)

Making a census study of the whole universe will be impossible on the account of limitations of

time. Hence sampling becomes inevitable. A sample is only a portion of the total employee

strength. According to Yule, a famous statistician, the object of sampling is to get maximum

information about the parent population with minimum effort.

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Methods of Sampling:

Probability Sampling is also known as random sampling or chance sampling. Under this

sampling design every individual in the organization has an equal chance, or probability, of

being chosen as a sample. This implies that the section of sample items is independent of thepersons making the study that is the sampling operation is controlled objectively so that the items

will be chosen strictly at random.

Non Probability Sampling is also known as deliberate sampling, purposeful and judgmental

sampling. Non-Probability Sampling is that which does not provide every individual in the

Organization with a known chance of being included in the sample.

Data collection method:

Collection of data is the first step in statistics. The data collection process follows the

formulation for research design including the sample plan. The data can be secondary or

primary.Collection of Primary Data during the course of the study or research can be through

observations or through direct communication with respondents on one form or another or

through personal interviews.

I have collected primary data by the means of a Questionnaire. The Questionnaire was

formulated keeping in mind the objectives of the research study.Secondary data means data that

is already available i.e., they refer to data, which has already been collected and analyzed by

someone else. When a secondary data is used, the researcher has to look into various sources

from where he can obtain data. This includes information from various books, periodicals,

magazines etc.

Primary Data:

Sample size-50

Method-Questionnaire

Secondary Data:

Sources-Internet, Websites, Company data

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Limitations

The following are the limitations faced by me during the course of the study:

The sample consisted only of employees in the day shift. Employees of the night shift were not

considered for the purpose of study. There is no concrete basis to prove the response given is a

true measure of the opinion of all the employees as a whole. The questionnaire contained mostly

multiple-choice questions; therefore many respondents may not have given a proper thought

before answering the questions. The response of the respondents may not be accurate thinking

that the management might misuse the data. Almost all of the questionnaires had the open-ended

questions. Sensitive company information cannot be displayed in the project report. Most

respondents might be influenced by their peers in answering the questions.

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INDUSTRY PROFILE:

PepsiCo entered India in 1989 and has grown to become one of the country‟s leading food and

beverage companies. One of the largest multinational investors in the country, PepsiCo has

established a business which aims to serve the long term dynamic needs of consumers in India.

PepsiCo India and its partners have invested more than U.S.$1 billion since the company was

established in the country. PepsiCo provides direct and indirect employment to 150,000 people

including suppliers and distributors.

PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy

as well as nutrition and always, good taste. PepsiCo India‟s expansive portfolio includes iconic

refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie

options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water,

isotonic sports drinks - Gatorade, Tropicana100% fruit juices, and juice based drinks – Tropicana

Nectars, Tropicana Twister and Slice. Local brands – Lehar Evervess Soda, Dukes Lemonade

and Mangola add to the diverse range of brands.

PepsiCo‟s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito

Lay products are free of trans-fat and MSG. It manufactures Lay‟s Potato Chips, Cheetos

extruded snacks, Uncle Chipps and traditional snacks under the Kurkure and Lehar brands. Thecompany‟s high fibre breakfast cereal, Quaker Oats, and low fat and roasted snack options

enhance the healthful choices available to consumers. Frito Lay‟s core products, Lay‟s, Kurkure,

Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and

all of its products contain voluntary nutritional labeling on their packets.

The group has built an expansive beverage and foods business. To support its operations,

PepsiCo has 36 bottling plants in India, of which 13 are company owned and 23 are franchisee

owned and 5 co packer units. In addition to this, PepsiCo‟s Frito Lay foods division has 3` state-of-the-art plants. PepsiCo‟s business is based on its sustainability vision of making tomorrow

better than today. PepsiCo‟s commitment to living by this vision every day is visible in its

contribution to the country, consumers and farmers.

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PepsiCo’s goal is to delight & nour ish consumers with products that range from treats to

healthy eats.

Mission and Vision

Mission:

"To be the world's premier consumer Products Company focused on convenience food and

beverages. We seek to produce healthy financial rewards to investors as we provide

opportunities for growth and enrichment to our employees, our business partners and the

communities in which we operate. And in everything we do, we strive for honesty, fairness and

integrity."

Vision:

"To build India’s leading total beverage company, delighting consumers by best meeting their

everyday beverage needs, and stakeholders, by delivering performance with purpose, through

our talented people."

PepsiCo Sustainability Vision

"PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate

– environment, social, economic – creating a better tomorrow than today"

Tomorrow better than Today

Organizational Values

Their commitment is to deliver sustained growth, through empowered people, acting with

responsibility and building trust.

Guiding Principles

Care for customers, consumers and the world.

Sells products with which the company can be proud of.

Speak with truth and candor.

Balance short term and long term.

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Win with diversity and inclusion.

Respect others and succeed together.

Their commitments are sustained growth, empowered people and responsibility and trust.

Code of Conduct

Each year, every PepsiCo associate is asked to review PepsiCo's Worldwide Code of Conduct

and recommit to living by it. Associates receive training in the Code, which is available in 38

languages. In 2005, PepsiCo took additional steps to ensure that key associates understood every

aspect of the Code by developing online and written training and certification that all executives

and associates are required to complete.

PepsiCo India also introduced a Speak Up line - a free hotline operated by a third party - which

PepsiCo associates may call to report any issues of concern, including those relating to values,

Code of Conduct and accounting and auditing issues. The line is accessible from anywhere

around the world and callers remain anonymous.

AFJP - SANGAREDDY PLANT HISTORY

This plant belongs to Koshla compressor (inaugurated by former PM of India- Indira Gandhi)

and converted to beverage manufacturing facilities under the name Charminar Bottling CompanyLtd in 1996 by Jaipuria group.

Charminar Bottling Company Ltd (CBCL), Sangareddy was an erstwhile franchisee owned

bottling operation taken over by PepsiCo on 26th March 2006 and named as Aradhana Foods

and Juices Pvt Ltd. It is located 45 Kms from the city of Hyderabad and services the entire

Andhra Pradesh and parts of Karnataka located at Pothireddypally Village, SangareddyMandal,

and Dist: Medak covering area of around 32 acres. . They manufacture the worldwide popular

carbonated soft drinks viz Pepsi, 7up, Mirinda, Mountain Dew, lemon flavouredNimbooz& Fruit

Juice drink Slice as well as the packaged water Brand “Aquafina”.

It has following manufacturing lines:

Linker, Hilden, Slice, Hot fill (Juice based drinks in PET), Aquafina Packaged Drinking Water

line, Carbonated Soft Drinks in PET bottles.

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Since take over from Charminar Bottling Company Ltd., company invested approximately 250

Crores in setting up state of the art, technology by setting up high speed Aquafina 120 BPM,

Aquafina 400 BPM,Hot Fill 600 BPM, CSD- PET 400 BPM, CSD- PET 600 BPM. Sangareddy

Plant emerged as the biggest plant in the region with the expansion and will scale up its capacity

further to become a 2 crore cases/annum plant by the year 2010.

Sangareddy Plant under the umbrella of PepsiCo India Business region is the biggest plants in

India which comes under Africa & Middle East Asia (AMEA) region.

PepsiCo's Environmental Commitment:

PepsiCo is committed to provide safe and healthy work environment and to being an

environmentally responsible corporate citizen. They conduct our business in an environmentally

responsible way. We comply with or exceed requirements of all applicable laws and regulations.

They have distributed around 100 tree guards at Pothireddypally village on World Environment

Day in 2008.

Community Development Program:

PepsiCo is highly committed in community development. This helps the organization and the

society to build up a high level trust. Plant has distributed around 40 Benches at Govt. High of

Pothireddypally Village.

Service to the local community:

• Sangareddy Plant under Performance with Purpose umbrella executed HIV AIDS awareness,

Livelihood Resource Centre – Employability Programme, Solid Waste Management Project –

Clean Sangareddy Green Sangareddy, Water Projects at villages,

Rain water harvesting, Infra development at schools and Environment support initiatives.

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ORGANIZATION STRUCTURE

PERFORMANCE MANAGEMENT IN THE ORGANIZATION:

PepsiCo‟s vision of Performance with Purpose is about delivering responsible and sustainable

growth. It is totally people‟s process. To achieve the vision of the organization the key element is

their talent. The performance management process in the organization is to ensure that everyone

is working according to the objectives set, receiving coaching and feedback to improve their

performance and experiencing exciting opportunities for growth.

Setting performance standards, observing and providing feedback, and conducting appraisals

enables the Team Leader to achieve the best results through managing employee

performance.The methods and techniques that are used for evaluating employee performance in

the organization is a combination of MBO (Management By Objective) and 360 degree

performance appraisal.

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MBO refers to a comprehensive, organization wise goal setting and appraisal programme.

The 360 degree technique involves a systematic collection of performance data on an individual

or group, derived from a number of stakeholders.

Performance Management Process Overview

PepsiCo‟s Performance Management Process, or PMP, is an annual employee performance,

development, and review cycle. This process reinforces the concept of Proven Results i.e.

business and people results and supports development through the Career Growth Model. PMP is

based on the principles that consistency and sustainability of results matters, and results must be

achieved in accordance with, and not at the expense of, their values.

The purpose of PMP is to ensure that managers and employees are:

Working effectively together against the right Business and Peopleobjectives that are

linked to our business plan

Providing and receiving feedback and coaching,

Recognizing and rewarding employee contributions, and

Considering employees‟ career interests and aspirations when making decisions.

These efforts support their strategic vision of Talent Sustainability, helpingto ensure they have“the right people in the right place, at the right time, doingthe right work the right way.”

To begin the process, it undergoes three key phases‟ i.e. objective setting, mid-year review and

performance and development review. The manager develops a performance plan that directs the

employee's efforts toward achieving specific results, to support organizational growth as well as

the employee's professional growth. Discussion of goals and objectives throughout the year

provides a framework to ensure that employees achieve results through mutual feedback. The

objectives should follow the SMART criteria i.e.

In mid-review phase the information on progress against objectives is collected then the

performance is reviewed & revisit career interest and necessary changes are made if any changes

are found in the objectives.

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The final PMP phase is the Performance and Development Review. This is the annual end-of-

year activity where managers and employees review accomplishments from the year and the

manager communicates performance ratings and compensation decisions. It‟s also the stage

where managers and employees discuss objectives for the upcoming year, and may take another

opportunity to discuss career interests.

Face-to-face discussions to gather information for the PDR

• While not required, a best practice is for managers and employees to sit down face-to-face to

review inputs for the PDR to understand the employee perspective on his / her performance over

the past year.

• The purpose is NOT to discuss or debate ratings, or for the manager to review his/her

perspective.

• The employee‟s role is to provide concise and complete information regarding performance

against objectives.

• The manager‟s role is to ask clarifying questions and understand the employee‟s perspective so

he/she can use the self-assessment as one data point when writing the final appraisal and

developing ratings.

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Complete performance review and finalize appraisal:

Once managers have collected all necessary data, they complete the performancereview by

documenting actual results against each objective. Managers should also write a detailed

summary of the performanceyear, as well as the employee‟s development focus for the coming

year.

Performance is rated for both Business and People results using a 5-point rating scale, with 1

being the lowest rating and 5 being the highest rating. Both ratings are weighted equally and will

drive both merit increases and bonus.

B e l o w

E x

p e c t a t i o n s

1 2 3 4 5

E x c e p

t i o n a l

Did not meet

most key

objectives

Unsatisfactory

year overall;

may have met

some

objectives, but

did not meet

expectation on

the most

important

objective.

Met most key

Objectives

Satisfactory

Overall; met

expectations on

most objectives.

Met key

Objectives

Good year

Overall; met

key objectives

and exceeded

some objectives.

Exceeded key

Objectives

Very good year

Overall;

exceeded

expectations on

the most

important

objectives and

met expectations

on others.

Significantly

exceeded most

key objectives

Outstanding

year overall;

significantly

exceeded

expectations on

the most

important

objectives and

met expectations

on others.

In the final step (at the end of the year) of discussion the manager and employee meet up and

review about the last year‟s performance, a look ahead to the coming year and discussion about

the development objectives and career interests. The purpose is to review accomplishments for

the year, and for the manager to communicate performance ratings and compensation decisions

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Data Collection and Analysis:

This report used the primary data collection technique as to get the raw data and used the sample

respondent‟s concept to understand the acceptance and satisfaction levels of the employees

regarding the questions that relate to the performance appraisal process in the organization.

Aim:

To ascertain the effectiveness of Performance Appraisal methodology used by the Organization.

Every question prepared under this questionnaire was thoroughly verified and gained acceptance

from the organization to facilitate the responses so as to compute the analysis of the collected

data.

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Data Analysis:

The following pages include the survey questionnaire with necessary analysis and column charts.

1) Work experience prior to joining PepsiCo.

Data: (TABLE 1)

Column-chart: (CHART 1)

Interpretation:

96% of the respondents have some amount of prior work experience before joining

PepsiCo.

4% of the have no work experience.

0

10

20

30

40

50

60

Yes No

Acceptance level Sample response Respondents (%)

Yes 48 96

No 02 04

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2) Information regarding the performance appraisal model is given during induction

Data: (TABLE 2)


Interpretation:

100% of the samples were informed about the performance appraisal model, during their

induction. The company has made it a point to inform the employee about the model

before he signs the acceptance letter. This prevents any ambiguities and

misunderstanding about what is expected of the employee before he joins the

organization.

0

20

40

60

80

100

120

Yes No

Option Sample response Respondents (%)

YES 50 100

No 00 00

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3) How do you find the Performance Appraisal Model in this Organization?

Data: (TABLE 3)


Interpretation:

From the above chart it can be inferred that, a majority of the sample (46%) respondents have

found the Appraisal Model to be objective.

0

10

20

30

40

50


Simple 10 20

Complicated 00 00

Objective 23 46

Subjective 05 10

Efficient 05 10

Inefficient 00 00

Both Objective &

subjective

07 14

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4) In your opinion, does the Performance Appraisal System give a proper assessment of your

contribution to the organization?

Data: (TABLE 4)


Interpretations:

About 94% of the respondents say that the Performance Appraisal System does give a true and

fair view of their contribution to the Organization. This does include employees who think that

their rating does not always turn up to be correct as per their opinion.

The groups of respondents, who have replied in the negative, also include candidates who say

that the appraisal does not turn out to be right most of the times but do show a fair view

sometimes. Since the appraisal is done on a half yearly basis and most of the candidates have not

gone through more than 1-2 rounds of appraisals, the data may not be entirely sufficient to reach

any conclusions.

0

20

40

60

80

100

Yes No


Yes 47 94

No 03 06

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5) How often does your Performance assessment match to your expectations?

Data: (TABLE 5)


Interpretation:

60% of the employees said that the performance assessment often match their expectations.

20% sometimes, 16% never and 4% every time.

0

10

20

30

40

50

60

70

Never Rarely Sometimes Often Evrytime


Never 08 16

Rarely 00 00

Sometimes 10 20

Often 30 60

Every time 02 04

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6) According to you, how often should the Performance Review take place?

Data: (TABLE 6)

Column-chart: ( CHART 6)

Interpretation:

The majority (96%) wants the frequency of the appraisal to be conducted in every 6 months and

04% of them opted once in a year.

0

20

40

60

80

100

120

Once a month Every 3 months Every 6 months Once in a year


Once a month 00 00

Every 3 months 00 00

Every 6 months 48 96

Once a year 02 04

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7) What is your Satisfaction level with the current Appraisal System?

Data: (TABLE 7)


Interpretation:

The satisfaction level of the Appraisal system is quite high as can be seen from the graph. This is

a good sign as increased level of satisfaction is the main emphasis of any appraisal system. The

curve tops at the rating of high and this includes about 75% of the population. The satisfaction

level also brings to light the efficiency of the management in devising an acceptable Appraisal

system.

0

10

20

30

40

50

60

70

80

Very low Low Average High Very high


Very low 05 10

Low 00 00

Average 10 20

High 35 70

Very high 00 00

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8) Which are the areas that should be improved upon?

Data: (TABLE 8)


Interpretation:

This question breaks up the different phases of the appraisal system and tries to come to derive aconclusion as to the areas of improvement in the process of evaluation. 60% of the respondents

say that there should be a change in the standards.

0

10

20

30

40

50

60

70

Standards Monetary

incentives

Frequency of

the appraisal

Appraiser


Standards 30 60

Monetary incentives 10 20

Frequency of Appraisal 10 20

Appraiser 00 00

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9) How important do you think is Performance Appraisal to your Performance?

Data: (TABLE 9)


Interpretation:

This question was put in to find out and analyze the importance of the Appraisal system to the

productivity of the employee. Majority of the respondents (i.e. 70% which includes ratings of

very important and 20% most important) affirm that their performance is directly influenced by

recognitionsof their performance by the appraisal system. None of the respondents have stated

that the appraisal system had no effect on their productivity. This points out to the fact that the

Appraisal system goes a long way in determining the productivity of the employees in an

Organization. Therefore it is very important for any Organization to devise their Performance

Appraisal System carefully.

0

20

40

60

80

Not

important

Less

important

Important Very

important

Most

important


Not Important 00 00

Less Important 00 00

Important 05 10

Very important 35 70

Most Important 10 20

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10) Do you think the one to one feedback sessions are effective in ironing out problems in the

work environment?

Data: (TABLE 10)

Column-chart:( CHART 10)

Interpretation:

One to One feedback sessions are conducted by PepsiCo during the appraisal system phase to tell

the employee on an individual level as to the rating given to him / her. The manager tries to justify his reasons on why he had given a particular rating to an employee. 92% of the employees

responded by saying that the face to face feedback are efficient in ironing out problems.

0

10

20

30

40

50

60

70

80

90

100

Yes No


Yes 46 92

No 04 08

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11) If you were given an opportunity to rate the transparency of the Appraisal System, what

marks would you give?

Data: (TABLE 11)


Interpretation:

This question is an attempt to analyze the perceived transparency of the rating among the

employees of the Organization. A majority of the employees have given a transparency rating of

8.

0

10

20

30

40

50

60

1 point 5 point 6 point 7point 8 point

Ratings Sample response Respondents (%)

1 point 05 10

5 point 10 20

6 point 05 10

7 point 05 10

8 point 25 50

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12) Do you feel comfortable discussing any difference of opinion about your Performance rating

with your appraiser?

Data: (TABLE 12)


Interpretation:

A majority (90%) of the employees feel that they feel comfortable discussing any differences of

opinion about their Performance rating with their appraiser and 10% of them has given negative

answer.

0

10

20

30

40

50

60

70

80

90

100

Yes No


Yes 45 90

No 05 10

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13) How do you rate the Performance Appraisal System in your Organization?

Data: (TABLE 13)


Interpretation:

This question is to ascertain whether there are any flaws in the Performance Appraisal system.

About 60 % of the sample has given a rating of 8 point. This shows the system is generally

acceptable to the employees and is a good sign for PepsiCo.

Ratings Sample response Respondents (%)

5 point 10 20

6 point 05 10

7 point 05 10

8 point 30 60

0

10

20

30

40

50

60

70

5 point 6 point 7 point 8 point

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14) Does the Performance Appraisal System in your Organization helps in developing your

career?

Data: (TABLE 14)


Interpretation:

A majority (96%) of the employees feel that the Performance Appraisal System in their

organization helps in developing their career.The feedback that is given to the employees about

their overall performance helps them to improve and thus helps in career building.

0

20

40

60

80

100

120

Yes No


Yes 48 96

No 02 04

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FINDINGS :

The following are the findings and suggestions derived from this particular

research study.

They have been able to deliver consistent results for so many years is because of effective

use of the performance management process.

Employee objectives are aligned with the business priorities.

Career Development Action Plans are in place and being executed.

Employees receive formal coaching and feedback and are appropriately recognized for

their contributions.

Career development discussions occur frequently.

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SUGGESTIONS:

In order to promote growth, far more information must be added to the appraisal process and the

related information should be transparently shared with the employee.

Most employees resist being classified at the low end of the scale. Employees who are low rated

are more likely to resist the evaluation of the superior and argue, claiming that personal bias was

involved in the ratings.

The implementation of a Performance Appraisal System rests on the shoulders of the manager

and he must ensure that it is done properly. A good manager can make an average appraisal

system work and vice-versa.

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CONCLUSION:

The group has built an expansive beverage and foods business. It support its operations, PepsiCo

has 36 bottling plants in India, of which 13 are company owned and 23 are franchisee owned and

5 co packer units. In addition to this, PepsiCo‟s Frito Lay foods division has 3` state-of-the-art

plants. PepsiCo‟s business is based on its sustainability vision of making tomorrow better than

today. PepsiCo‟s commitment to living by this vision every day is visible in its contribution to

the country, consumers and farmers.

PepsiCo‟s Performance Management Process, or PMP, is an annual employee performance,

development, and review cycle. This process reinforces the concept of Proven Results i.e.

business and people results and supports development through the Career Growth Model. PMP is

based on the principles that consistency and sustainability of results matters, and results must be

achieved in accordance with, and not at the expense of, their values.

Working at PEPSICO gave me some real insights into how practically the concepts of

Performance appraisal are implemented in an established organization. The internship pursued at

the company helped me to get practical exposures to varied concepts like performance appraisal

carried out by the management, theperformance management process and its effectiveness. The

project work carried out made me exposed to some practical findings which have already been

reported.

Finally, I would like to conclude my report thanking all my esteemed guides both in and outside

the organization who have helped me learn HR concepts being implemented practically. It has

been a great pleasure for me pursuing my project work at this company with well experienced

personnel.

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BIBLIOGRAPHY:

Books referred:

A.S. Kohli and T. Deb, Performance Management, Oxford University Press, New Delhi

2008.

T.V. Rao, Performance Management and Appraisal Systems. Response books New Delhi

2007

Journals & magazines:

Personnel today Kolkata.

HRM review Hyderabad.

Web sites

http:// www.google.com/

http:// www.pepsico.com/

http://www.google.com/



http://www.pepsico.com/





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ANNEXURE:

QUESTIONNAIRE

Dear Respondent,

I would be grateful if you could spare some of your time to respond to the following

questions . Your response will be treated as confidential and would only be used for

the purpose of study.

Gender : Male/ Female

Age: 21-25 25-30 30-35 35+

Years of experience in this Organization:

Less than a Year 1 yrs 2 yrs 3 yrs 4 yrs+

1) Have you worked in any other Company prior to joining this Organization?

Yes No

2) Were you informed about the Performance Appraisal model, used in the

Organization, during your induction?

Yes No

3) How do you find the Performance Appraisal Model in this Organization?

(Mark all the relevant options)

Simple Complicated Objective Subjective Efficient Inefficient

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4) In your opinion, does the Performance Appraisal System give a proper assessment of

your contribution to the organization?

Yes No

5) How often does your Performance assessment match to your expectations?

Never Rarely Sometimes Often Every time

6) According to you, how often should the Performance Review take place?

Once a month Every 3 months Every 6 months Once a year

7) What is your Satisfaction level with the current Appraisal System?

Very low Low Average High Very High

8) Which are the areas that should be improved upon?

(Mark all the relevant options)

Standards Monetary incentives Frequency of Appraisal Appraiser

9) How important do you think is Performance Appraisal to your Performance?

Not Important Less Important Important Very Important Most Important

10) Do you think the one to one feedback sessions are effective in ironing out problems

in the work environment?

Yes No

11) If you were given an opportunity to rate the transparency of the Appraisal System,

what marks would you give?

(On a scale of 1 to 10 with 1 being the lowest and 10 being the highest)

………………………………..

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12) Do you feel comfortable discussing any difference of opinion about your

Performance rating with your appraiser?

Yes No

13) How do you rate the Performance Appraisal System in your Organization?

(On a scale of 1 to 10 with 1 being the lowest and 10 being the highest)

……………………………….

14) Does the Performance Appraisal System in your Organization helps in developing your

career?

Yes No

15) Any Suggestions

………………………………………………………………………………………………………

…………..

Sou Jan Ya

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