STUDY On PERFOMANCE APPRAISAL with reference to ( Pepsi co) A minor project report submitted in partial fulfillment of the award

of the degree INTEGRATED MASTER OF BUSINESS ADMINISTRATION SUBMITTED BY: M.SAIKIRAN 1234110119 UNDER THE ESTEEMED GUIDANCE OF Dr.P.ASHA (Assistant Professor)

GITAM INSTITUTE OF MANAGEMENT

GITAM UNIVERSITY, VISAKHAPATNAM (2010-2015)

ACKNOWLEDGEMENT

.I would like to express my profound gratitude to PROF .K. SIVARAMAKRISHNA, Dean & Principal GITAM INSTITUTE OF MANAGEMENT, GITAM UNIVERSITY for necessary cooperation extended to me in doing my project work I extend my heartfelt thanks to Prof.P.Sheela Vice Principal GIM, GITAM University who has been a staunch pillar of support to do our project. I take this opportunity to acknowledge my sincere thanks to Dr.M.Jyothsna Programme Coordinator of IMBA whose cooperation and valuable guidance helped me to enhance my knowledge in completing my project report. With my immense pleasure I would like to express my sincere thanks to my project guide Dr.P.ASHA for giving me this opportunity to successfully complete my project work.

I express my deep sense of gratitude to the management of PEPSI CO for giving me this opportunity to study Performance Appraisal in their esteemed organization

M.SAIKIRAN 1234110119

DECLARATION

I hereby declare that the project work titled PERFOMANCE APPRAISAL submitted by me under the guidance of Dr.P.ASHA is the data collected by my own and has not been submitted to any other university or institution or Examining body or board for the award of any certificate Or degree or diploma.

M.SAIKIRAN 1234110119

CERTIFICATE

This is to certify that this report titled PERFOMANCE APPRAISAL successfully completed at PEPSI CO in partial fulfillment of the requirement for the award of the Degree of Integrated Master of Business Administration to GITAM INSTITUTE OF MANAGEMENT, GITAM UNIVERSITY, Visakhapatnam is a bona-fide work carried out by him under my guidance.

30/06/2011 Visakhapatnam

DR.P.ASHA Asst.professor GITAM INSTITUTE OF MANAGEMENT

INTRODUCTION TO PERFORMANCE APPRAISAL: 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. Performance Appraisal is the step where the Management finds out how effective it has been at hiring and placing employees. If any problems are identified, steps are taken to communicate with the employee and remedy them.

Performance Appraisal is a process of evaluating an employee s performance in terms of its requirements.

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.

MEANING AND DEFINITION: Performance Appraisal can also be defined as the process of evaluating the performance and qualifications of the employees in terms of the requirements of the job for which he is employed, for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally. 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.

PERORMANCE 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: The employees will have to be rated against the standards set for their performance. Standards may be in quantity and quality in case of production workers, personality traits like leadership, etc. Standards help in setting yardsticks for evaluating performance. 2. Communicating standards to employees: standards set for the employees should be communicated to the employees. Employees should know what is expected from them. 3. Measuring actual performance: Next step is to evaluate the performance of employees. 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. 5. Discussing reports with the employees: The assessment reports are discussed periodically with concerned employees. The weak and good points are discussed with the employees to improve their performance. 6. Taking corrective actions: Evaluation process will be useful only 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.

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: y y 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 job knowledge. 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: y y y y y 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. 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) (b) WORK-RELATED OBJECTIVES: To assess the work of employees in relation to job requirements, improve efficiency and carry out job evaluation. 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. 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. 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.

(c)

(d)

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).

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. 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.

Aim of the Research To ascertain the effectiveness of Performance Appraisal methodology used by the organization.

Objectives of the study: The following are the objectives of the study To develop my understanding of the subject. y Performance Appraisal System implemented in various organizations varies according to the need and suitability. Through my research, I have tried to study the kind of Appraisal used in the Organization and the various pros and cons of this type of system.

To conduct a study on social behavior: y Social behavior is a very unpredictable aspect of human life but social research is an attempt to acquire knowledge and to use the same for social development. To enhance the welfare of employees. The Appraisal system is conceived by the Management but mostly does not take into consideration the opinion of the employees. This can lead to adverse problems in the Organization. Therefore by this study I have attempted to put forth the opinion of the employee with respect to the acceptability of the Performance Appraisal System. To exercise social control and predict changes in behavior: The ultimate object of my research is to make it possible to predict the behavior of individuals by studying the factors that govern and guide them.

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 Chips and traditional snacks under the Kurkure and Lehar brands. The company 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 stateof-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 goal is to delight & nourish 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 y y y y y y 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. 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 Company Ltd 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, Sangareddy Mandal, and Dist: Medak covering area of around 32 acres. . They manufacture the worldwide popular carbonated soft drinks viz Pepsi, 7up, Mirinda, Mountain Dew, lemon flavoured Nimbooz & 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. 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.

ORGANIZATION STRUCTURE

TOPIC PROFILE IN THE ORGANIZATION: PepsiCo s vision of Performance with Purpose is about delivering responsible and sustainable growth. One key to achieving that is their talent. They already have great people, but they continuously strive to retain, develop and reward their talent base. This means ensuring everyone is working against the right priorities, 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. 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. PepsiCo s Performance Management Process 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. It 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 Performance appraisal is to ensure that managers and employees are: y y y y Working effectively together against the right Business and People objectives 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, helping to ensure they have the right people in the right place, at the right time, doing the 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. Specific Measurable Attainable Relevant Time bound 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. The final 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: A best practice is for managers and employees to sit down face-to-face to review inputs to understand the employee perspective on his / her performance over the past year. 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.

Complete performance review and finalize appraisal: Once managers have collected all necessary data, they complete the performance review by documenting actual results against each objective. Managers should also write a detailed summary of the performance year, 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. 1 Did not meet most key objectives Unsatisfactory year overall; may have met some objectives, but did not meet expectation on the most important objective. 2 Met most key Objectives Satisfactory Overall; met expectations on most objectives. 3 Met key Objectives Good year Overall; met key objectives and exceeded some objectives. 4 Exceeded key Objectives Very good year Overall; exceeded expectations on the most important objectives and met expectations on others. 5 Significantly exceeded most key objectives Outstanding year overall; significantly exceeded expectations on the most important objectives and met expectations on others.

Below Expectations

In the final step 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.

Exceptional

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. Primary Data: Sample size-20 Method-Questionnaire Sample segmentation-Occupation, Age and Gender. Secondary Data: Sources-Internet, Websites, Company data Data Analysis The following pages include the survey questionnaire with necessary analysis and cross tabular charts. Male / Female ratio within the selected sample: Data: Males-17 Females-3 Analysis: The female ratio in this organization is very low. This can also be ascertained from the fact that same ratio is present among the total strength of 75 executives in the company.

Data: Age: 21-25 4 25-30 10 30-35 6 35+ - nil Analysis: The age group between 25-30 is more.

Years of Experience within the Organization: 1) Less than a Year - 5 2) One Year - 5 3) Two Years - 2 4) Three Years - 3 5) Four + Years 5 Analysis: There are employees having less than a year experience who rare new to the company. There are employees who have been working from a long time.

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

Acceptance level Yes No

Sample response 18 02

Respondents (%) 90 10

Column-chart:
100 90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation: y y 90% of the samples have some amount of prior work experience before joining PepsiCo. 10% of the samples have no work experience.

2) Were you informed the Performance Appraisal model, used in the about organization, during your induction? Data:

Acceptance level Yes No

Sample response 20 00

Respondents (%) 100 00

Column-chart:
120 100 80 60 40 20 0 Yes No

Interpretation: y 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.

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

Acceptance level Simple Complicated Objective Subjective Efficient Inefficient Both Objective & subjective

Sample response 02 00 13 02 02 00 01

Respondents (%) 10 00 65 10 10 00 05

Column-chart:
70 60 50 40 30 20 10 0

Interpretation: From the above chart it can be inferred that, a majority of the sample (65%) respondents have found the Appraisal Model to be objective.

4) In your opinion, does the Performance Appraisal System give a proper assessment of your contribution to the organization? Data:

Acceptance level Yes No

Sample response 17 03

Respondents (%) 85 15

Column-chart:
90 80 70 60 50 40 30 20 10 0 Yes No

Interpretations: About 85% 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.

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

Acceptance level Never Rarely Sometimes Often Every time

Sample response 03 00 05 10 02

Respondents (%) 15 00 25 50 10

Column-chart:

60 50 40 30 20 10 0 Never Rarely Sometimes Often Evrytime

Interpretation: 50% of them said that often the performance assessment match to their expectations. 25% said sometimes, 15% never and 10% evrytime.

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

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

Sample response 00 00 18 02

Respondents (%) 00 00 90 10

Column-chart:
100 90 80 70 60 50 40 30 20 10 0 Once a month Every 3 months Every 6 months Once in a year

Interpretation: The majority wants the frequency of the appraisal to be conducted in every 6 months and 10% of them opted once in a year.

7) What is your Satisfaction level with the current Appraisal System? Data: Acceptance level Very low Low Average High Very high Column-chart:
80 70 60 50 40 30 20 10 0 Very low Low Average High Very high

Sample response 02 00 03 15 00

Respondents (%) 10 00 15 75 00

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.

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

Acceptance level Standards Monetary incentives Frequency of Appraisal Appraiser

Sample response 16 02 02 00

Respondents (%) 80 10 10 00

Column-chart:
90 80 70 60 50 40 30 20 10 0 Standards Monetary incentives Frequency of the appraisal Appraiser

Interpretation: This question breaks up the different phases of the appraisal system and tries to come to derive a conclusion as to the areas of improvement in the process of evaluation. 80% of the respondents say that there should be a change in the standards.

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

Acceptance level Not Important Less Important Important Very important Most Important Column-chart:
60 50 40 30 20 10 0 Not important Less important

Sample response 00 00 01 10 09

Respondents (%) 00 00 05 50 45

Important

Very important Most important

Interpretation: Majority of the respondents (i.e. 50% which includes ratings of very important and 45% most important) affirm that their performance is directly influenced by recognitions of 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.

10) Do you think the face to face feedback sessions are effective in ironing out problems in the work environment? Data:

Acceptance level Yes No

Sample response 16 04

Respondents (%) 80 20

Column-chart:
90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation: Face to face 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. 80% of the employees responded by saying that the face to face feedback are efficient in ironing out problems.

11) If you were given an opportunity to rate the transparency of the Appraisal System, what marks would you give? Data:

Points 1 point 5 point 6 point 7 point 8 point

Sample response 01 04 01 04 10

Respondents (%) 05 20 05 20 50

Column-chart:
60 50 40 30 20 10 0 1 point 5 point 6 point 7point 8 point

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.

12) Do you feel comfortable discussing any difference of opinion about your Performance rating with your appraiser? Data:

Acceptance level Yes No

Sample response 16 04

Respondents (%) 80 20

Column-chart:
90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation: A majority of the employees feel that they feel comfortable discussing any differences of opinion about their Performance rating with their appraiser and 20% of them has given negative answer.

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

Points 5 point 6 point 7 point 8 point

Sample response 05 01 04 10

Respondents (%) 25 05 20 50

Column-chart:
60

50

40

30

20

10

0 5 point 6 point 7 point 8 point

Interpretation: This question is to ascertain whether there are any flaws in the Performance Appraisal system. About 80 % 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.

14) Does the Performance Appraisal System in your Organization helps in developing your career? Data:

Acceptance level Yes No

Sample response 17 03

Respondents (%) 85 15

Column-chart:
90 80 70 60 50 40 30 20 10 0 Yes No

Interpretation: A majority of the employees feel that the Performance Appraisal System in their organization helps in developing their career.

FINDINGS AND CONCLUSIONS: 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. 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. 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.

CONCLUSION: The internship pursued at the company helped me to get practical exposures to performance appraisal system in the company. 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.