SUMMER TRAINING REPORT PRESENTATION“STUDY ON PERFORMANCE

APPRAISAL SYSTEM IN HINDUSTAN ANTIBIOTICS LIMITED”

Project Mentor: Mrs. MEGHA TAPADIA

Faculty-HR

Presented By: Divya Singh

MBA 2nd year student Faculty of Management,

ASM Institute of Business Management and research (Affiliâted to Pune University, PUNE)

EXECUTIVE SUMMARY The strength of any organization is its people.

Employee performance is the only way to achieve organizational objectives.

The project was carried out to understand the process of Performance Appraisal of the company.

  To find out the effectiveness of the method followed by the organization, descriptive

research was carried out . For this purpose the necessary information was collected by using primary data

research tool such as questionnaire, observation & interview etc. secondary data such as books, articles, internet, policies and project reports etc.

On the basis of the data analysis using different tools of observations major findings were provided to the organization on purpose of conducting Appraisal in organization , satisfaction of employees, employee needs and expectations etc.

  And suggestions were provided on the basis of those findings such as – additional

attention should be given to training programs , frequent mini appraisals and feedback &counseling sessions will help ensure that employees receive continuous guidance ,support and encouragement they aspire for.

OBJECTIVE OF THE STUDY To analyze the Performance appraisal systems for further

development of employees.

  To know the level of satisfaction of both the executive and

ministerial staff working at HINDUSTAN ANTIBIOTIC LIMITED.

  To provide suggestions if any, for more effective performance

appraisal system.

To analyze the problems faced by the appraisee and the appraiser in this system & steps taken by the appraisers for the improvement of the performances of the appraisee.

SCOPE OF THE STUDY

INDUSTRY PROFILE The Pharmaceutical Industry in India is fragmented with over 3000 small/medium

sized generic pharmaceutical manufacturers. It has over 20000 units, out of which 300 units are in the organized sector; while others exist in the small scale or unorganized sector. There are also 5 central public sector units that manufacture drugs. These companies are :- 

Indian Drugs and Pharmaceuticals Hindustan Antibiotics Limited Bengal chemicals & pharmaceuticals Ltd Bengal Immunity Limited Smith Stanistreet Pharmaceuticals ltd o  The Indian pharmaceuticals Industry consists of manufacturers of bulk drugs and

formulations. Bulk drugs include the active pharmaceutical ingredients (APIs), which are used for manufacturing of formulations.

According to the estimates, the proportion of formulations & bulk drugs is in the order of 75:25.

The Indian Pharmaceuticals industry has the highest number of plants approved by the US Food & Drug Administration outside the US.

Setting up a plant is 40% cheaper in India as compared to developed countries & cost of bulk production is 60-70% less.

The strength of industry is in developing cost effective technologies in the shortest possible time for drug intermediaries & bulk activities without compromising on quality. In accordance with WTO stipulations, India grants product patent recognition to all new chemical Entities

INTRODUCTION TO

COMPANY PROFILE

THE BEGINNING:

Hindustan antibiotics Ltd was set up on 10th march 1954 & it came into being in 1955 as a result of an agreement between the Government of India & the World Health Organization/ UNICEF Assistance.

HISTORICAL SIGNIFICANCE:

The Plant at Pimpri began manufacturing Penicillin initially. Penicillin production at Hindustan Antibiotics Ltd has historical significance.

Prime Minister Pandit Jawaharlal Nehru decided to set up a penicillin plant in memory of Kasturba Gandhi.

She suffered from viral infection, which could be cured only by Penicillin. It was imported from foreign country & was not produced in India.

She passed away at Agakhan Palace in Pune, as she could not get the drug on time.

PRODUCTS: Hindustan Antibiotics Ltd has become pioneer of India with basic production of PENICILLIN,

STREPTOMYCIN, AMPICILLIN, and GENTAMYCIN & CEPHALOSPORIN. It has credited for original discoveries such as HAMYCIN (Antibiotics), AUREOFUNGIN.

It works with the main objective of “Better Drugs for more people at a low or reasonable price” .

APPOINTMENT: The BODs are appointed by the president of India. The Managing Director is the Chief

Executive of the company. Late Col. Dogra was the first Managing Director & Mr. K.V. Varkey is the present Managing Director of the company.

LOCATION: HAL is located in Pimpri, Pune, with its Branch Offices in Mumbai, Delhi, Lucknow, Hydrabad,

Cochin, Calcutta, Chandigarh, Orissa, Madras, Patna. HAL has export market in countries like UAE, Uganda, Tanzania, Netherland, Kenya, R.O.

Yemen, Srilanka etc. VISION:- “To create healthy India” -Late Pandit Jawaharlal Nehru

ORGANISATION HIERARCHY MANAGING DIRECTOR

GENERAL MANAGER

DEPUTY GENERAL MANAGER

MANAGER

DEPUTY MANAGER

ASSISTANT MANAGER

SENIOR EXECUTIVE

JUNIOR EXECUTIVE

PERFORMANCE APPRAISAL SYSTEM IN HAL In HAL Performance Appraisal is being done from its

inception. At that period of time it was done in form of “Confidential Reports” & was carried out annually.

From 1978, onwards the management introduced a new form of performance appraisal. It considered of two types of forms, both for the officer and supervisor level. The form for the officer level was known as “form A”, & for the workmen level was known as “form B”, which covered all employees of the organization in this level. This particular level system was known as “Partial Open System”. The system provides for self appraisal i.e. it provides for evaluation of employee by himself of his weakness /shortcomings. According to this system periodic meetings were held twice in a year, once in month of June/July & next December or January.

For assessment of workmen & officer then there are different parameters specified in each forms. The parameters for workmen level are as follows: 

For workers: Knowledge and skill, Work & result-quantity,Quality ,Discipline,Potential ,Integrity.

For officers:Intiative ,Planning & Organizing, Supervision & control,Cost consciousness, Communication, Decision making, Interpersonal relationship , Discipline & Integrity.

In current it follows a mixed system of rating scale and MBO.

RESEARCH METHODOLOGY Design of Research: Descriptive Sample Unit: Employees in HAL. Sample design: 20 Appraisers (Officers), 30 Appraisee (workers/non officers) . Sample Size: 50 Sample Area: HAL premises at Pimpri, Pune. Data type: Primary & Secondary. Data collection Methods: Interview,

Questionnaire(15 questions for appraiser & appraisee), observation, company manual, internet and company files.

Data presentation tools: Pie charts, tables.

ANALYSIS & INTERPRETATIO

N

FOR APPRAISERS1. WHAT IS THE MAIN OBJECTIVE OF CARRYING OUT PERFORMANCE APPRAISAL IN THE ORGANISATION?A)CAREER DEVELOPMENT B)TRAINING C)PROMOTION D)ALL OF THE ABOVE  

10%

10%

10%

70%

a)Career Development

b)Training

c)Promotion

d)All of the above

Majority says its carried for career development, training and promotion.

2 . DOES PERFORMANCE APPRAISAL SYSTEM SERVE AS AN EFFECTIVE TOOL FOR THE GROWTH OF AN APPRAISEE & IDENTIFIES HIS TRAINING NEEDS?A)STRONGLY AGREE B)AGREE C)DISAGREE D)STRONGLY DISAGREE E)CANT SAY 

5%

75%

10%5% 5%

strongly agree

agree

disagree

strongly disagree

cant say

Majority appraisers say its an effective tool for growth of employees.

3. DOES PERFORMANCE APPRAISAL SERVE IN BRINGING OUT THE RIGHT WORK ATTITUDE IN AN EMPLOYEE?A) YES B)NO

75%

25%

yes

no

75% feel it helps in developing right attitude for work.

4. Is performance Appraisal useful in Career planning and Forecasting?

a) Yes b)No c)Cant say 

70%

15%

15%

yes

no

cant say

Majority of appraisers say it helps in career planning and forecasting.

5.IS PERFORMANCE APPRAISAL SYSTEM OF THE ORGANISATION ECONOMICAL ?A)YES B)NO C)CANT SAY

85%

15%

0%

yes

no

cant say

85% appraisers say its still economical for them.

1. DOES PERFORMANCE APPRAISAL HELPS IN IMPROVING & MOTIVATING YOU? A)YES B)NO C)CANT SAY

FOR APPRAISEE

73%

10%

17%

yes

no

cant say

73% feel P.A helps motivate them and there performance while 27% are still don't feel it.

7. DO YOU EXPECT ANY CHANGES IN THE CURRENT APPRAISAL SYSTEM?A)YES B)NO

17%

83%

yes

no

83% employees doesn't expect any changes in the system.

8. IS THERE PROPER FEEDBACK &COUNSELING SESSIONS AFTER P.A?A) YES B) NO C)CAN’T SAY

30%

20%

50%yes

no

cant say

50%cant say anything where as 20%say no these session doesnt occur.

9. DO YOU THINK THERE ARE ANY RATING ERRORS IN THE PERFORMANCE EVALUATION?A)YES B)NO C)CANT SAY.

84%

16%

0%

yes

no

cant say

84% say yes there are errors occurring in evaluation.

10.IF YES, THEN IS IT:-A)JUDGMENTAL ERRORS B)POOR-APPRAISAL FORMS C)UNPREPARED APPRAISER D)INEFFECTIVE ORGANISATIONAL POLICIES E)IGNORANCE TOWARDS THE SYSTEM

10%

20%

17%3%

50%judgmental erorrs

poor appraisal forms

unprepared appraiser

Ineffective policies

Ignorance towards the system

50% employees say its due to ignorance towards the system.

OBSERVATIONS The employees are happy to work in this organization as there exists

friendly atmosphere in the organization There is some errors occurring in the appraisal. 65% of the employees feel that there should be a change in the present

system The employees are satisfied with their current job profile and are

motivated. The employees seemed very responsible and hard working in achieving

the targets of the organization. The existing process is economical even in time of crisis. The employee’s level of contribution was satisfactory in

performance appraisal. Most errors occur due to ignorance towards the system. Some people have less knowledge regarding the parameter of

appraisal. Majority of employees say P.A helps in judgment of performance of an

individual upto 75%. P.A helps identify weaknesses of an employee and overcome them.

SUGGESTIONS Objectivity: One manager's idea of "self-starting ability" can be quite

different than another's idea. The question then arises as to how does one objectively evaluate "creativity” ? If greater amount of objectivity can be infused into the Appraisal system, it can help to bring more transparency.

Effective Communication: One function of performance appraisals is to help employees develop so they can contribute more effectively. In order for the employees to develop and learn they need to know, what they need to change, where (specifically) they have fallen short, and what they need to do .In order to make it meaningful and promote growth, far more information must be added to the appraisal process and the related information should be transparently shared with the employee..

Fairness:-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.

Continued...

CONTINUED….. Managerial Efficiency:-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.

Workshops, seminars for reporting officers for proper understanding of system and its implementation.

Immediate follow ups and educating employees about parameters. Frequent mini appraisals or mid term reviews. Should try and implement 360 degree appraisal for officer level and

above. Active participation of workers and management should be promoted. Rating errors should be eliminated by making the process more

transparent. Motivation of employees to enhance productivity . Computerization of PA system for transparency and time saving.

LIMITATIONS The sample consisted only of employees

in the day shift. Employees of the nightshift were not considered for the purpose of study

The general questionnaire covered limited questions.

The questionnaire contained mostly multiple-choice questions; therefore many respondents may not have given a proper thought before answering the questions.

Respondents have less knowledge of new trends in methods of appraisals in organisations.

CONCLUSION

In order to improve the performance level of the employee’s in the organization it is necessary to implement certain types of programs.

The difference between actual and expected performance is less in HAL. Existing difference is because of lack of training. Current performance appraisal is a well crafted but certain changes are required. It is necessary to take decision of rewards and transfers on basis of appraisals for

legal compliance and for minimizing job dissatisfaction. The system is well organized and coordinated. It helps improve productivity up to some extent. Training should be provided more vigorously for employees lacking behind . There is good coordination and cooperation in between employees of HAL. A friendly

environment exists. Finally, this project has been a value addition for me, in terms of learning and

exposure to assess the performance of different cadres of employees in the organization. 

BIBLIOGRAPHYSr.no Authors Tital Publisher

1 C.R.Kothari Research Methodology

NewAge International Publishers

2 K.Ashwatha Ppa -

HR.&Personnel Management

TataMc GrawHill Publishing

3 V.S.P. Rao Human Resource management

Excel books

WEBLIOGRAPHY•www.hindantibiotics.gov.in•WWW.WIKIPEDIA.COM

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