final project report dabur
TRANSCRIPT
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CASE STUDY OF PERFORMANCE APPRAISAL SYSTEM AND ITS
LINKAGE TO COMPETENCY MAPPING AT DABUR INDIA LTD.
Summer project submitted
IN
Partial Fulfilment of the Requirements for the Award ofPost Graduate Program
By
RIYA SHARMA
PGP 20102303
Under the guidance of
Mr. P awan Kumar Ponia
IILM,GURGAON
7TH
May to 30th June 2011
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Certificate from Faculty Guide
This is to certify that Mr. /Ms. _________________________________ (Roll No._______), a student of the Post-Graduate Program has successfull completedhis/her summer internship project titled____________________________________________ for the period from
__________ to _________.
This project is submitted by Mr./Ms. _______ in partial fulfillment of therequirements for the award of Post Graduate Diploma in Management.
The project is submitted following my approval and satisfies the rules andguidelines defined by IILM for the project.
Project Guide
Dated: ___________
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Acknowledgement
Completing the project work is never one-man effort. It is often the result of valuablecontributions of a number of individuals in a direct or indirect manner that helps in shaping andachieving stated objectives.
This project report bears the imprint of those who had rendered their wholehearted support andencouragement without whose help this effort of mine would be in vain.
I would like to give this note for (Senior Human Resource Officer Mr. Pawan Ponia ) myproject guide and mentor, as he was the source for my motivation in pressing circumstances tocomplete this project and honored by the responsible bestowed upon us. I am also grateful to Mr.Ashok Gupta Deputy Human Resource Manager) for their valuable guidance.
I express my deep sense of gratitude and sincere thanks to my project guideMiss Ridhi Bhatia for her directions, suggestion and information provided which were ofutmost importance for the successful completion of the project.
Last but not the least; I also thank the employees of Dabur India Ltd. for assisting me inthe timely completion of project.
RIYA SHARMA
June30, 2011
TABLE OFCONTENTS
Executive Summary Dabur as an FMCG company
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Company Profile Company History Milestones to success Dabur Worldwide and its products Corporate Governance
IT initiatives Future Challenges Organization Structure Dabur Products Vision and Mission Core Values Major Strategic Business Units
Human Resources at Dabur Introduction to Performance Appraisal Performance appraisal at Dabur Training and development
Competence and Competencies Competency mapping Mapping process Competency mapping and attributes Research methodology CEP of grade vioperations at Dabur India limited of Junior Officers Stores Competencies identified of junior officers stores on the basis of CEP parametres Analysis and interpretation of Questionnaires filled by
Junior officers stores Immediate supervisor
Findings Conclusion Recommendations Bibliography Questionnaires
EXECUTIVE SUMMARY
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In todays scenario, Human capital is acknowledged as one of the most potent sources incontributing directly and significantly in the growth of any organization. This project attempts to explore the most effective HR policies and practices for
smooth sailing of an organization.
It was a research conducted to get the feedback of the employees from differentdepartments about the existing performance appraisal system followed in theorganization.
The main research objective was to understand the relevance of wide variety of methodsand techniques that can be explored towards performance of the organizational goals. Intodays competitive world every organization is geared towards maximum return withminimum investment. Human Resource Management plays a vital role towards planning& controlling cost effective manpower support. This is widely affected by planning andimplementing Effective Performance Appraisal System which is the paramount part of
this project
Channelizing human energies in a predetermined desirable direction are not possibleunless harmonious relations are maintained among team members involved in businessdevelopment. Concept of employee retention was also understood through the projectstudy. The ways adopted by companies to manage grievances and stress and thereby
motivating the employees and reducing employee turnover were studied through theproject.
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DABUR AS AN FMCG COMPANY
Today, the FMCG is the fourth largest sector in the Indian economy and there are manyFMCG companies like HLL, ITC, Britannia, Tata Tea, Nestle, Godrej Consumer, Dabur,
Marico etc.
Dabur India Limited is the fourth largest FMCG Company in India. Dabur has five othersubsidiaries- Dabur Foods, Dabur Nepal, Dabur Egypt, Dabur Oncology and Dabur
Pharma.
Business
Daburs product range encompasses health care, personal care, ayurvedic specialities andfood segments.
Brands
Well-known brands include Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola, LalDantmanjan, Nature Care, Pudin Hara and Real.
Location
Dabur has been marketing its products in more than 50 countries all over the world. Thecompany has offices and representatives in Europe, America and Africa. Manufacturing
facilities are spread across three overseas locations.
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Turnover
Building on a legacy of quality and experience for over 100 years, today Dabur has aturnover of Rs.1899.57 with powerful brands.
COMPANY PROFILE
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DABUR INDIA LIMITED CORPORATE OFFICE
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COMPANYS CORPORATE OFFICE AT KAUSHAMBI, GHAZIABAD
COMPANY HISTORY
1884 Birth of Dabur1896 Setting up a manufacturing PlantEarly 1900s Ayurvedic Medicines1919 Establishment of Research Laboratories1920 Expands further1936 Dabur India ( Dr. S.K Burman) Pvt. Ltd.1972 Shift to Delhi1979 Sahibabad factory / Dabur Research Foundation1986 Public Limited Company1992 Joint Venture with Agrolimen of Spain1993 Cancer treatment1994 Public issues1995 Joint ventures1996 3 separate divisions1997 Food Division/Project STARS1998 Professionals to manage the Company2000
2003
2005
2006
Turnover of Rs 1000 crores
Dabur demerges Pharma Business
Dabur acquires Balsara
Dabur announces Bonus after 12 years
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2006 Dabur crosses $2 Bin market cap, adopts US GAAP
Milestones to Success
Dabur India Ltd. made its beginnings with a small pharmacy, but has continued to learnand grow to a commanding status in the industry. The Company has gone a long way inpopularizing and making easily available a whole range of products based on thetraditional science of Ayurveda. And it has very high standards in developing productsand processes that meet stringent quality norms.
1884 - Established by Dr. S K Burman at Kolkata 1896 - First production unit established at Garhia 1919 - First R&D unit established Early 1900s- Production of Ayurvedic medicines
Dabur identifies nature-based Ayurvedic medicines as its area of specialization. It is thefirst company to provide health care through scientifically tested and automatedproduction of formulation based on our traditional science.
1930Automation and Upgadation of Ayurvedic productmanufacturing initiated
1936Dabur ( Dr. S.K Burman) Pvt. Ltd. Incorporated 1940- Personal care through Ayurveda
Dabur introduces consumers to personal care through Ayurveda, with the launch ofDabur Amla Hair Oil. The product was so popular that it became the largest selling hairoil brand in India.
1949- Launched Dabur Chyawanprash in tin pack Widening the popularity and usage of traditional Ayurvedic products continues. The
ancient restorative Chyawanprash is launched in packaged form, and becomes the first
branded chyawanprash in India. 1957- Computerizations of operations initiated 1970- Entered Oral Care & Digestives Segment
Addressing rural markets where homemade oral care is more popular than multinationalbrands, Dabur introduces Lal Dant Manjan. With this a conveniently packaged herbaltoothpowder is made available at affordable costs to masses.
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1972- Shifts base to Delhi from Calcutta 1978- Launches Hajmola tablet
Dabur continues to make innovative products based on traditional formulations that canprovide holistic care in our daily life. An Ayurvedic medicine used as a digestive aid isbranded and launched as the popular Hajmola tablet.
1979- Commercial production starts at Sahibabad, the mostmodern herbal medicines plant at that time
1984- Dabur completes 100 years 1988- Launches pharmaceutical medicines 1989- Care with fun
The Ayurvedic digestive formulation is converted into a childrens fun product with thelaunch of Hajmola Candy. In an innovative move, a curative product is converted to aconfectionary item for wider usage.
1994- Comes out with first Public issue 1994- Enters oncology segment 1994- Leadership in Health care
Dabur establishes its leadership in health care as one of only two companies worldwide tolaunch the anti-cancer drug Intaxel (Paclitaxel). Dabur Research Foundation develops aneco-friendly process to extract the drug from its plant source.
1996- Enters foods business with the launch of Real Fruit Juice 1996- Real blitzkrieg
Dabur captures the imagination of young Indian consumers with the launch of Real FruitJuices- a new concept in the Indian foods market. The first local brand of 100% purenatural fruit juices made to International standards, real becomes the fastest growing andlargest selling brand in the country.
1998- Burman family hands over the management of the companyto professionals
2000- The 1,000 crore mark Dabur establishes its market leadership status by staging a turnover of Rs. 1,000 crores.
Across a span of over 1000 years, Dabur has grown from a small beginning based ontraditional health care.
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2001- Super specialty drugs
With the setting up of Dabur Oncologys sterile cytotoxic facility, the Company gainsentry into the highly specialized area of cancer therapy. The state-of-the art plant andlaboratory in the UK have approval from the MCA of UK. They follow FDA guidelinesfor production of drugs specifically for European and American markets.
2002- Dabur record sales of Rs. 1163.19 crore on a net profit of Rs64.4 crore
2003- Dabur demerges Pharmaceutical business
Maintaining Global Standards
As a reflection of its constant efforts at achieving superior quality standards, Daburbecame the first Ayurvadic products company to get ISO 9002 certification.
Science for Nature
Reinforcing its commitment to nature and its conversation, Dabur Nepal, a subsidiary ofDabur India, has set up fully automated greenhouses in Nepal. This scientific landmark
helps to produce saplings of rare medicinal plants that are under threat of extinction dueto ecological degradation.
Merger with Balsara Merger of 3 Balsara Companies- Besta cosmetics, Balsara hygiene Products and Balsara
Home Products to be effective from April 1, 2006.
2005- Dabur acquires Balsara 2006- Dabur announces Bonus after 12 years 2006- Dabur crosses $2 Bin market cap, adopts US GAAP
Dabur Worldwide
Daburs mission of popularizing a natural lifestyle transcends national boundaries. Todaythere is global awareness of alternative medicines, nature based and holistic lifestyles andan interest in herbal products. Dabur has been in the forefront of popularizing thisalternative way of life, marketing its products in more than 50 countries all over theworld.
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Its Products World Wide
Offices and representatives in Europe, America and Africa A special herbal health care and personal care range successfully selling in markets of the
Middle East, Far East and several European countries.
Inroads into European and American markets that have good potential due to resurgenceof the back-to-nature movement.
Corporate Governance
In India, the Securities and Exchange of India (SEBI) stipulates corporate governancestandards for listed companies through the Clause 49 of the listing agreement of the stockexchanges.
Good corporate governance and transparency in actions of the management is key to astrong bond of trust with the Companys stakeholders. Dabur understands the importance
of good governance and has constantly avoided an arbitrary decision-making process. Inthis pursuit, Dabur has already put in place systems and procedures and is fully compliantwith the revised Clause 49 well before it becomes mandatory. Thus at Dabur, we believegood governance is key to strong bond of trust between the company and all itsstakeholders.
IT Initiatives
In Dabur India Limited knowledge and technology are key and efficiency. Towards thisoverall goal of technology-driven performance, Dabur is utilizing the world. It will also
cut down costs and increase profitability. Information Technology in a big way. resourceswhich have helped the Company achieve higher levels of excellence This will help inintegrating a vast distribution system spread all over India and across.
Future Challenges Forward Integration of SAP with Distributors and Stockiest. Backward Integration of SAP with Suppliers. Implementation of new POS system at Stockiest point and integration with SAP-ERP. Implementation of SAP HR and payroll. SAP Roll-out to DNPL and other new businesses Central Procurement & Planning Department Dabur has established a Central Procurement & Planning Department (CPPD) to takecare of all high value purchases across the company. The CPPD is housed at the
Kaushambi Corporate Office (KCO) and is headed by the head- CPPD. Low valuepurchases are de-centralized at the manufacturing units. A Unit Purchase Heads thePurchase Department at the manufacturing units.
Dabur India Limited has also set up a cross-functional Purchase Committee to guideand oversee the purchasing function at the KCO.
To focus on customer and successfully meet their needs and requirements.
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To manufacture effective personal care, ayurvedic and food products at competitiveprices and improve the quality of life of common masses.
To implement system to ensure prevention of errors rather than detection of errors. To ensure global competitiveness by striving to achieve Current and Good
Manufacturing Practices (CGMP)
Organization structure
Dabur Products
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Dabur Health Care Product Range Health Supplements Dabur Chyawanprash Dabur Chyawanshakti Glucose-D Digestives Hajmola Yumstick Hajmola Mast Masala Anardana Hajmola Hajmola Candy Pudina hara Dabur Hingoli Natural Cures Shilajit Gold Nature Care Ring Ring Itch Care Back-aid Shankha Pushpi Dabur Balm Sarbyna Strong Dabur Baby Care Product Range Baby Care Dabur Lal Tail Dabur baby Olive oil Dabur Janma Ghunti Dabur Personal Care Product Range Hair Care-Oil Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla Hair Care- Shampoo Anmol Silky Black Shampoo Vatika Henna conditioning Shampoo Vatika Anti-Dandruff Shampoo Skin Care Gulabari
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Vatika Fairness Face Pack
Dabur Oral Care Product Range
Oral Care Dabur Red Gel Babool Toothpaste Dabur Red Toothpaste Dabur Lal Dant Manjan Dabur Binaca Toothbrush Dabur Foods Product Range Real Real Fruit Juice Real Active Homemade Lemoneez Natural Lemon Juice Honey Pure Natural Honey Capsico A fiery red-pepper sauce Dabur Ayurveda Product Range Dashmularishtha Ashokarishtha Lauhasava Mahanarayan Tail Juritap Madhuvani Lavan Basked
Vision and Mission
Founding Thought: What is that life worth which cannot bring comfort to others?
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Vision: Dedicated to the health and well being of every household.
Mission: To become a leading nature-based health and family care Products Company.
Core Values
Ownership : Accept personal responsibility, and accountability to meet business needs.
Passion for Winning: Leaders in the area of responsibility, with a deep commitment todeliver results. Determined to be the best at doing what matters most.
People Development: People are the most important asset. Add value through result driventraining, and we encourage & reward excellence.
Customer Focus : Superior understanding of consumer needs and develop products tofulfill them better.
Team Work : Work together on the principle of mutual trust & transparency in a boundary-less organization. Intellectually honest in advocating proposals, including recognizing risks.
Major Strategic Business Units
In India, the Companys business is carried out by three Strategic Business Units (SBUs)namely:
Consumer Care Division, with a share of 82% in its total sales. Consumer Healthcare Division, with a share of 8% in its total sales. Dabur Foods Limited as a wholly owned subsidiary with a share of 10% in its total sales.
HUMAN RESOURCE AT DABUR
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Dabur places great deal of confidence on its excellent pool of human resources, which it
realizes is the key to its further growth strategy. The company continued its efforts tofurther align its HR policies, processes and initiatives to meet the business needs.
In line with its focus on international operations, Dabur implemented a uniform HRstructure across all the groups companys operations. This will enable seamlesstransaction s between domestic and overseas position. Also the integration of thepersonnel of the erstwhile Family Products Division (F.P.D) & Healthcare ProductsDivision (H.C.P.D) was implemented efficiently to suit the requirements well withintime. Major initiatives taken were:
Dabur implements performance metrics for all key positions based on two aspects of theBalanced Score Card Approach- Financial and Internal Business Process. This approachclearly outlines the expectation from each position and will be upgraded to include twomore aspects for any key managerial positions in future.
The Company institutionalized the Assessment and Development Center(A.D.C)approach to all positions from staff to officer cadre and also at the senior levelsto
objectively identify, develop and promote the talent from within, and to provideindividual feedback for development of the participating employees. To encourage learning, the Company is planning to set-up a learning center, which will
be equipped with a library; I.T & Web based sources of knowledge. It is also in theprocess of setting up a knowledge management portal and a leadership and capabilitydevelopment cell
Dabur is committed to attract fresh talents. Towards this end, the company required over20 candidates from leading management and engineering institutes in the country, whowill be inducted.
INTRODUCTION TO PERFORMANCE APPRAISAL
This is a technique, not universally accepted, of assessing the performance of employeesagainst agreed targets. The personnel practitioners would be most likely to be involved indesigning the procedures, leaving the line managers normally to administer the process.
Performance Appraisal is the systematic evaluation of the individual with respect to hisor her performance on the job and his or her potential for development.
Aims of Performance Appraisal The following aims might be considered when examining a performance appraisal
system: Use reliable, fair and objective measures of performance, compare actual with planned
performance, and provide feedback to the appraisee. Make provision for the allocation of both extrinsic rewards (performance related pay) and
intrinsic rewards (opportunity to enhance ones skills) following the assessment process. Recognize that performance management is the heart of the general management process.
Objectives of Performance Appraisal
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Data relating to performance assessment of employees are recorded, stored and used forseveral purposes. The main purposes of employee assessment are:
To effect promotions based on competence and performance. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily. To assess the training and development needs of employees. To decide upon a pay raise where regular pay scales have not been fixed.
Appraisal Techniques
Certain techniques are available to evaluate the performance of the employee.
Written report: The appraiser writes about the strengths, weaknesses, previousperformance and potential of the appraisee, with suggestions for improvement. It isimportant that the appraiser is perceptive with reasonable writing skill.
Critical incidents: The appraiser highlights incidents or key events that show the
appraisers behavior as exceptionally good or bad in relation to particular outcomes at
work. This exercise would depict desirable behaviors as well as behavior that signal aneed for improvement.
Graphic Rating Scale: This is a popular appraisal technique and it lends itself toquantitative analysis and comparison of data. A set of performance factors id identified,including such characteristics as quality of work, technical knowledge, cooperative spirit,integrity, punctuality and initiative. The appraiser would go through the set of factorsrating them, for e.g., on a scale 1 to 5 where the highest number would denote the bestrating.
Multi-person Comparison: This technique is relative rather than an absolutemeasure is used to assess one persons performance against one or more other
individuals.
Multi-rater Comparative Evaluation: The total appraisal process consists ofinterviews, psychometric testing, simulations of relevant work activities, peer appraisalsand appraisals by trained assessors.
Self-appraisal: Self-appraisal has introduced as a mean for empowering employees,enhancing teamwork and raising awareness of quality. The employees are given appraisal
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forms on which they evaluate themselves against criteria such as attendance,productivity, quality, safety, teamwork and commitment.
Who are Raters?
Raters can be immediate supervisors, specialists from the HR department, subordinates,peers, committees, clients, self-appraisals, or combinations of several. Immediatesupervisor is the most fit candidate to appraise the performance of his or her subordinatesas no one is more familiar with the subordinates performance than his or her superior.
Subordinates can assess the performance of their superiors. This helps in assessing anemployees ability to communicate, delegate work, allocate resources, disseminate
information and resolve intra-personal conflict. Peers are in a better position to evaluatecertain facts of job performance, which the subordinates or superiors cannot do.
Where superiors, subordinates and clients, make the appraisal it is called 360-degreesystem of appraisal.
What should be Rated?
Quality: The degree to which the process or result of carrying out an activity approachesin terms of fulfilling the activitys intended purpose.
Quantity: The amount produced, expressed in monetary terms, number of units ornumber of completed activity cycles.
Timeliness: The degree to which an activity is completed or a result produced at theearliest time desirable.
Cost Effectiveness: The degree to which the use of organizations resources ismaximized in the sense of getting the highest gain by minimizing the losses.
Need for Supervision: The degree to which a job performer can carry out a job function.
Interpersonal Impact: The degree to which a performer promotes feeling of self-esteem,goodwill and cooperation among co-workers and subordinates.
Factors Determining Performance Evaluation
Halo Error: A halo error takes place when one aspect of an individuals performanceinfluences the evaluation of the entire performance of the individual. Rating employees
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separately on each of a number of performance measures and encouraging raters to guardagainst the halo effect are the two ways to reduce the halo effect.
Leniency: Every evaluator has his own value system, which acts as a standard againstwhich he makes his appraisals. Relative to the true or actual performance an individualexhibits, some supervisors have a tendency to be liberal in their ratings.
Central Tendency: This occurs when the evaluator assigns average or middle ratings tothe employees. The attitude of the rater is to play safe. This safe-playing attitude stemsfrom certain anxieties and doubts about the behavior of employee. Such tendency distortsthe evaluation.
Rater Effect: This includes favoritism, stereotyping and hostility. Excessively high orlow scores are given only to certain individuals or groups based on the raters attitudetowards the rate. Age, sex, race and friendship biases are examples of this type of error.
Perceptual Set: This occurs when the raters assessment is influenced by previously heldbeliefs. If supervisor, for example, has a belief that employees hailing from one particularregion are hard working, his subsequent rating of an employee hailing from that regiontends to be favorably high.
Spillover Effect: This refers to allowing past performance appraisal ratings tounjustifiably influence current ratings. Past ratings, good or bad, result in similar ratingfor the current period although the demonstrated behavior does not deserve the ratinggood or bad.
Status Effect: It refers to overrating of employees in higher level job or jobs held in highesteem, and underrating employees in lower level job or jobs held in low esteem.
Appraisal Methods The last to be addressed in the process of designing an appraisal program is to determine
methods of evaluation. Numerous methods have been devised to measure the quantity
and quality of employees job performance. Broadly, all the approaches of appraisal canbe classified into:
Past oriented Methods, and Future oriented Methods Past Oriented Methods
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Rating Scale: This is the simplest and most popular technique for appraising employee
performance. The typical rating scale consist of several numerical scales, eachrepresenting a job related performance criterion such as dependability, initiative, output,attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor.
The rater checks the appropriate performance level on each criterion, and then computesthe employees total numerical score. The number of points scored may be linked tosalary increase. The disadvantages of this method are several. The raters biases are likely
to influence evaluation.
Checklist: Under this method, a checklist of statements on the traits of the employee andhis or her job is prepared in two columns i.e., a Yes and a No column. All that the
rater should do is tick the Yes column if the answer to the statement is positive and incolumn No if the answer is negative. After ticking off against each item, the rater
forwards the list to the HR department where the actual assessment of the employee takes
place. The advantages of a checklist are economy, ease of administration, limited trainingof rater and standardization.
Essay Method: In the essay method, the rater must describe the employee within anumber of broad categories, such as:
The raters overall impression of the employees performance, The promotability of the employee, The jobs thats the employee is now able or qualified to perform, The strengths and weaknesses of the employee, The training and the development assistance required by the employee The strength of the Essay method depends on the writing skills and analytical ability of
the rater. A problem with this method is that the ratees may be rated on the quality of theappraisals that they give.
Ranking Method: In this, superior ranks his or her subordinates in the order of theirmerit, starting from the best to the worst. The HR department knows that A is better thanB. The how and why are neither questioned nor answered. This method is subject to
the halo effects. Its advantage includes ease of administration and explanation.
Forced Distribution Method: One of the errors in rating is leniency- clustering a largenumber of employees around a high point on a rating scale. This method seeks toovercome the problem by compelling the rater to distribute the ratees on all points on therating scale. The method operates under an assumption that the employee performancelevel conforms to a normal statistical distribution. The major weakness of the forceddistribution method lies in assumption that employee performance levels always conformto a normal distribution.
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Future Oriented Appraisal
Management by objective: I t was Peter Drucker who gave first the concept of MBO tothe world way back in 1954.. Application of MBO in the field of performance appraisal isa recent thinking. One comment made against the approach is that it is not applicable to
all jobs an all organization. Objectives are agreed and formulated at the beginning of theperiod under review, and the appraisee is given the necessary assistance and training tofacilitate the achievement of those objectives.
Psychological Appraisal: Large organization employs full-time industrial psychologists.When psychologists are used for evaluations, they assess an individuals future, potential
and past performance. The appraisal normally consists of in-depth interviews,psychological tests, discussions with supervisors and a review of other evaluations. Thepsychologist then writes an evaluation of the employees intellectual, emotional,
motivational and other related characteristics that suggest individual potential and may
predict future performance. From these evaluations, placements and developmentdecisions may be made to shape the persons career.
Assessment Centers: Mainly used for executive hiring. Assessment centers are nowbeing used for evaluating executive or supervisory potential. An assessment center is acentral location where managers may come together to have their participation in job-related exercises evaluated by trained observers. Assesses are requested to participate inin-basket exercises, work groups, computer simulations, role playing and other similaractivities. After recording their observations of ratee's behaviors, the raters meet todiscuss these observations. Self-appraisal and peer evaluation are also thrown in for final
rating.
360-Degree Feedback: Where multiple raters are involved in evaluating performance,the technique is called 360-degree appraisal. The 360-degree technique is understood assystematic collection of performance data on an individual or group, derived from anumber of stakeholders- the stakeholders being the immediate supervisors, teammembers, customers, peers and self. The 360-degree appraisal provides a broaderperspective about an employees performance. However, there are drawbacks associated
with the 360-degree feedback. Receiving feedback on performance from multiple sourcescan be unapproachable. It is essential that the organization create a non-threatening
environment by emphasizing positive impact of the technique on an employeesperformance and development. More and more number of firms are using 360-degreeappraisal technique to assess the performance of their employees.
Appraisal Process
The figure outlines the performance appraisal process. Each step in the process is crucialand is arranged logically.
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PERFORMANCE APPRAISAL AT DABUR
The System
Performance Appraisal of Grade VI and below in Dabur is carried out through RATINGMETHOD. Their immediate superior does performance appraisal and HR department
reviews it. Performance Evaluation is done by Contribution Enhancement Plan (CEP) atthe end of the year. CEP forms the core of Performance Appraisal system of employees(Grade VI and below in Dabur)
The performance appraisal of executives in Dabur is carried out through rating system ofperformance appraisal by their immediate supervisor and then reviewed by latters boss.
The performance appraisal system followed at Dabur is Rating Method and Action byObjectives Method.
The broad structure of the system can be laid down as:
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The performance appraisal of executives in Dabur is carried out through rating system ofperformance appraisal by their immediate supervisor and then reviewed by latters boss.
The performance appraisal system followed at Dabur is Rating Method and Action byObjectives Method.
The broad structure of the system can be laid down as:
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Mechanism The evaluation under CEP consist of following steps:
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Appraiser does the rating after considering individual assessment parameters of everyemployee.
Scores are given against each assessment parameter of an individual in the rating columnon the basis of 5-point rating.
Rating is reviewed with the reviewer.
Total score is computed by adding all the scores. The rating category corresponding to the appropriate range of total scores is selected asoverall final performance rating of employees from rating scale table.
The individual development form is filled by the Appraisee, which is further utilized fortraining and development needs of employees, besides giving a direction to his/her careergrowth in the organization.
After completing the appraisal, a constructive feedback should be given to the appraiseeby the Appraiser in presence of reviewer.
Finally, Contribution Enhancement Plan discusses rating for deciding upon theperformance rewards in the form of:
Annual Rewards
Promotions
CONTRIBUTION ENHANCEMENT PLAN
Contribution Enhancement Plan or CEP is a process, which will enableDabur to improve organizational contribution through enhanced contributionof individual. It aims to establish formal individual objectives and to review
subsequent contribution in order to reinforce successful behaviors, to correctshortfalls and to plan training and development activities. The system willensure that all management staff employees are aware as to what is expectedfrom them. This is a developmental plan for the improvement in contributionof executives towards organizations or SBUS achievement of objectivesand its development. It is categorized into 2 parts:
Contribution Enhancement Plan {(CEP)A} Contribution Enhancement Plan {(CEP)B} Contribution Enhancement Plan (A) evaluates the contribution of an
individual and decides revision in fixed pay and Contribution EnhancementPlan (B) is concerned with variable pay.
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Objectives of CEP
To establish formal contribution standards. To establish a system that is fact based and minimizes subjectivity in the
assessment of an individuals contribution. It should provide constructive feedback for development of an employee. Enable the individual to evaluate his/her own areas of strengths and areas of
improvement for being a better manager.
Applicability of CEP
The system is applicable to Grade V and above employees of the company. Setting of 3 to 5 BBOs, which are measurable?
Related to area/position in which employees operates. Evaluation of contribution and focus on employee development. Business Building Objective (BBOs) Process Business Building Objectives (BBOs) are mutually agreed objectives between an
employee and his/her superior. These are tangible business targets, which are measurable. The first stage is for the person initiating the review cycleto understands the business plan
so that there is clarity about the direction and priorities of the organization. This will helpensure that individual BBOs support the overall business plan.
BBOs Identification and Review Processes BBOs needed to be established the light of the annual business plan. The set objectives
must be relevant in context with each individual role. The employees must prepare in advance his/her draft objectives for the next year and
contribution against objectives set for the past year. The same need to be carried by theappraisee for discussion with the appraiser. The appraiser will also come prepared withBBOs (both past and future) for the employee. At the meeting they will discuss the yearahead and seek agreement on various objectives. During the same meeting they will alsodiscuss the contribution against the past years BBOs. Once the objectives for the nextyear are set and agreed upon the same need to be communicated to the employee inwriting. The employee shall be evaluated against BBO during mid-year at the end ofassessment year.
BBOs identification, assessment and review of contribution, assessment of traits andskills, training and development needs and plans will be joint responsibility if theappraisee and the appraiser. The reviewer needs to be satisfied that the key elements ofthe process have done correctly.
Conduct the Interim Contribution Review/s In the mid of the assessment year the appraiser and the appraisee should meet to review
the progress against the set BBOs. This should include a discussion of an assessment of
whether any BBOs should be amended, deleted or introduced. The Interim ContributionReview is a formal opportunity to reinforce effective behaviors, identify and correct any
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problems, give general feedback/advice, and to ensure the annual assessment will be fair.
This should be recorded in writing and a copy is given to the individual.
Category of Contribution
The Contribution rating is to be done on a 5-point scale for each set BBO. Their ratings are asfollows:
Rating Qualitative Description Score
Outstanding (OS)
Consistently exceed job expectations andstandards.Employee contribution has been exemplary andhas displayed good grasp of the job and handlesadditional responsibilities with confidence andease, while overcoming exceptional challengesor applying unique solutions.
5
Strong (ST) Very good contribution and often exceeds jobexpectations. A good learner who can handlethe job with minimum supervision. 4
Good (GD) Meet expectation on most of the set objectives.Requires occasional supervision and hasadequate knowledge of the job. 3
Satisfactory (ST)Inconsistent in meeting the set objectives.Needs regular guidance. Has knowledge aboutthe job however the same needs to be brushedup
2
Below Expectations (BE) Contribution is much below the set targets.Constantly needs supervision and guidance.Processes low level of job knowledge and skills 1
Contribution Grid
The contribution grid for arriving at final rating is as follows:
Final Rating Total Score RangeOutstanding 4.26-5.00Strong 3.51-4.25Good 2.51-3.50Satisfactory 1.51-2.50Below Expectation
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Assessment of Managerial Effectiveness
CEP forms pertain to evaluation of managerial competencies. Performing each jobrequires application of certain behavior traits/skills. Therefore, it is desirable to assess theappraise on traits/skills. The appraiser will pick the relevant traits/skills applicable to thejob/function. Minimum of 6 and maximum of 8 traits/skills must be chosen after carefulthought and thereafter rated on 5-point scale as mentioned below:
Skills/Traits RatingsStrongly Demonstrated 5Fairly Demonstrated 4Present but not constantly demonstrated 3Require significant development 2Not up to the expectation 1
Contribution Review Discussion The Contribution Review Discussion is intended to be an enriching process both for
Appraise and Appraiser. This is a critical and final stage of the entire CEP and thereforehas to be handled with utmost sensitivity, so that maximum value addition is derivedfrom this interaction between Appraise and Appraiser.
Contribution Enhancement Plan B (CEP B) After evaluation under Contribution Enhancement Plan (B), variable for each executive is
compared through (CEP B). Variable pay is a lump sum amount to be paid to appraiseonce a year on the basis of the performance.
The assessment of variable pay is done using the following table:Criterion % of fixed amount if
criterion is 100 fulfilledCompanys performance 33%Unit/SBUs performance 33%Individual performance 34%
If the companys performance meets the targeted performance then it will be calculatedas: (companys actual performance/companys targeted performance)* 100%.
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TRAINING AND DEVELOPMENT
Dabur should hire professionals from outside to head key positions to become a player ofrepute. In 1998, business was not big and being a family-owned company, there wereissues in hiring. Dabur was hiring literally at the rate of 20-30%.
They started hiring from campuses only in 1996-97. They went to the campuses andcarried out serious brand building exercise. Today their lateral hiring has come down toaround 10-15%. Dabur expanded their business and went to IIM for hiring. They also
evolved new strategies and a more structured hiring process.
This was a huge success and they hired close 100 people in the last two years. Theattrition rate at management level is 10% while at the field staff level its 16%. Dabur hasalso introduced ESOPs for freshers to address the retention issue right at the entry level.Currently, the annual training spend is around Rs 1.5 crore.
Training and Development plays a vital role in CEP, which pertains to identification oftraining needs through a joint process of discussion between Appraise and Appraiser. Theemployee himself does this through guidance, feedback counseling and task force
assignment including self-development initiatives.
COMPETENCE & COMPETENCIES
Competence, like truth, beauty, and contact lenses, is in the eye of the beholder
WILLIAM SHAKESPEARESuperfluity comes by white hairs, but competency lives longer.WALTER BENJAMIN
Avoid competency traps. Do not stay only where you are good at things. Go outand be challenged
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Everyone rises to their level of incompetence. Laurence j. peter
Often the desire to appear competent impedes our ability to become competent,because we more anxious to display our knowledge than to learn what we do notknow.
ANDREW CREIGHTON
These are the days when no one should rely unduly on his competence. Strength
lies in improvisation. All the decisive blows are struck left- handed.
Eighty percent of success is related to attitude rather than competency
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INTRODUCTION TO THE CONCEPT
Competencybased HR is the essence of good HR. When all the activities of HR arelinked through the competence matrix, there is a clear ideological shift from themanagement and development of human capital. When Competency for every role iswell-defined (technical as well as behavioural), right from the time of recruitment andpeople are shown a particular position. And this is enabled by enhancing competenciesthrough Training and Development.
There are different approaches to competency analysis. While some competency studiestake months to complete and result in vague statements that have little relevance topeople in the organization but if done well they provide the following benefits to theorganizations:
Increased productivity; Improved work performance; Training that is focused on organizational objectives; Employees know up front what is expected of them; Employees are empowered to become partners in their own performance development;
and The approach builds trust between employees and managers. Competency approach is a foundation upon which to build a variety of HRD initiatives.
This adaptable, flexible, and scalable tool has been used for the following benefits to theorganization:
Provides employees with a detailed job description Develops job advertisements Assists in personnel selection Assists in performance appraisals Targets training to skills that require development Gives credit for prior knowledge and experience Focuses on performance improvement Promotes ongoing employee performance development Provides a systematic approach to planning training
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Customizes training delivery to the individual or organization Evaluates suitability of training programs to promote job competence Identifies employees readiness for promotion Guides career development of employees Develops modular training curriculum that can be clustered as needed
Develops learning programmes. The competency based job analysis involves the following steps: Identification of major job functions; Identification of skills performed within each of the major job functions; Generation of several drafts to be reviewed by employees and employers and modified to
accurately reflect the skills performed on the job; Development of occupational analysis chart. The chart is two-dimensional spreadsheet
chart displaying the major job functions and skills; and Identification of performance standards for each skill using a competency-based rating
scale describing various levels of performance.
COMPETENCY MAPPING
Competency approach to job depends on competency mapping. Competency Mapping isa process to identify key competencies for an organization and/ or a job and incorporatingthose competencies throughout the various processes (job-evaluation, training,recruitment) of the organization. A competency is defined as a behavior (communication,leadership) rather than a skill or ability.
The steps involved in competency mapping are: Conduct a job-analysis by asking incumbents to complete position information
questionnaire (PIQ). This can be provided for incumbents to complete, or used as a basisfor conducting one-on-one interviews using the PIQ as a guide. The primary goal is togather from incumbents what they feel are the key behaviors necessary to perform theirrespective jobs.
Using the results of the job analysis, a competency based job description is developed. Itis developed after carefully analyzing the input from the represented group of incumbentsand converting it to standard competencies.
With a competency based job description, mapping the competencies can be done. Thecompetencies of the respective job description become factors for assessment on theperformance evaluation. Using competencies will help to perform more objectiveevaluation based on displayed or not displayed behaviors.
Taking the competency mapping one step further, one can use the result of onesevaluation to identify in what competencies individuals need additional development ortraining. This will help in focusing on training needs required to achieve the goals of theposition and company and help the employees develop toward the ultimate success of theorganization.
What are competencies?
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Competencies is the collection of success factors necessary for achieving importantresults in a specific job or work role in a particular organization. Success factors arecombinations of knowledge, skills, and attributes that are described in terms of specificbehaviors, and are demonstrated by superior performers in those jobs or work roles.
Attributes include: personal characteristics, traits, motives, values or ways of thinkingthat impact an individuals behavior. Competencies in organizations tend to fall into twobroad categories:
PERSONAL FUNCTIONING COMPETENCIES
These competencies include broad success factors not tied to a specific work function orindustry (often focusing on leadership or emotional intelligence behaviors).
FUNCTIONAL/TECHNICAL COMPETENCIES
These competencies include specific success factors within a given work function orindustry.
CLARITY IN THE CONCEPT, TERMS AND DEFINITIONS
Competence
Oxford Advanced Learners Dictionary defines competence as being competent, itmeans having the necessary knowledge, ability, skill and authority. Websters StudentsDictionary defines Competence as sufficiently able or qualified. Encarta World
Dictionary defines Competence as ability to do something well or to a requiredstandard. Social Science Encyclopedia defines a competent person as someone whopossesses the necessary skills to produce the desired effects.
According to Longmans Dictionary of Contemporary English, Skill is an ability to dosomething well.
The definitions do not distinguish between the inborn and inherent and the acquiredabilities that people possess. This may, therefore, be treated as commonsense meanings
of the terms. The inborn, inherent abilities emerge as the natural traits of a person andthese pertain both to the mental and physical domain. But the psychological aspects maydominate the acquired qualities. The acquired qualities have to be learnt, practiced andabsorbed. These may involve largely mental and partly physical use of hands. Theartisans, craftsman, artists and mechanics are the typical illustrations of skilled humanresources.
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Competence in normal parlance is synonymous to ability, skill, fitness, aptitude,proficiency, know-how, experience and expertise. Competence is a range of, skill,knowledge, ability, dexterities and attitudes that are evident in a persons action. In a
business context, the definition that addresses the importance of the problem proposed tobe studied is a specific, identifiable, definable and measurable knowledge, skill, ability
and/ or deployment related characteristic (e.g.: attitude, behavior, physical ability) whicha human resource may possess and which is necessary for, or material to, theperformance of an activity within a specific business context. Therefore competence is
the underlying characteristic that can be shown to predict outstanding performance on thejob. The determinants would be characterized as knowledge and skill. Competence can betermed as the application of knowledge and the interpersonal, decision-making, andpsychomotor skills expected for the nurses practice role, within the context of public
health, welfare and safety.
Capability is define as the quality of being capable or a feature, quality that may beused or developed. So, capability can be termed as a dormant ability developed through
learning, training and experience. It is inherent, inbuilt and natural ability that can beacquired and developed. This comprises both competence and competency. So,capability is inherent and natural, since certain traits are embryonic and certain traits areaccumulated and sharpened through constant use.
So some traits more or less can be developed. For example Voice Modulation to someextent can be acquired. So it would be right to highlight this point that nothing can becreated in vacuum, even knowledge was created by inherent mental ability. So ability andcapability are used synonymously.
Ability is a derivative or consequence of knowledge and skill. According to WebstersDictionary ability is defined as the condition or power of being able or talent or skill.Oxfords Advanced Learners Dictionary defines ability as capacity or powerto dosomething physical or mental. According to Longmans Dictionary ability as
something that you are able to do especially because you have a particular mental or
physical skill. So, ability can be defined as the condition, quality or feature that enablesa person to perform a certain task or the possession of qualities required to do
something.
Aptitude and Attitude are processes of individual behavior that can be induced orimbibed through organizational motivational schemes and a supportive work culture.Aptitude is the natural ability or inclination to make that action possible. Both thesecharacteristic have learning and innate dimension to it. They can be inherited or acquired.Aptitude can be developed through a positive work culture while ability is a consequenceof application of knowledge, skill and traits. The impact of some of these characteristiccan be measured in physical or quantifiable terms. The psychological or behavior relatedcharacteristic can be measured in terms of the consequences the act leads to.
\Knowledge is the act, fact or state of knowing. Knowledge, which is the highest degreeof the speculative faculties, consists in the perception of the truth of affirmative ornegative propositions Locke. In philosophy, the theory of knowledge is called
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epistemology and deals with such questions as how much knowledge comes fromexperience or from innate reasoning ability; whether knowledge needs to be believed orcan simply be used; and how knowledge changes as new ideas about the same set of factsarise. Therefore knowledge could be acquired from learning (qualification) or experienceor could be derived from a persons innate reasoning ability. The knowledge domain of
the Human Resource manager has to be classified as those derived from academicqualification or learning, those acquired through experience and those imbibed throughthe persons own innate abilities.
Skill is the proficiency in deliverance of any action. To determine the level ofcompetency required skills standards have to be specified. An accepted definition of skillstandard is a standard that specified the level of knowledge and competence required to
successfully perform work-related functions within an occupational cluster. This is thedefinition contained in the Goals 2000: Educate America Act, which authorized thecreation of the National Skills Standard Board. Simply stated; a skill standard is what youhave to know, and be able to do, to be successful at work. Subsequent research by the
Institute for Educational Leadership(US), has further refined the definition to read Askill standard is a competency unit which includes: 1) a description of the segment ofwork for which the standard applies; 2) a listing of the essential knowledge and skills thatare critical to the work segment; 3) a listing of the essential tools and equipment that arecritical to the work segment; and 4) the criteria to measure competency in performing thework segment. Skills can be innate or acquired through formal or non-formal training.The above explanation emphasizes ability to perform a given task as the basic componentof a skill, but the competency cannot be acquired instantaneously. It involves time, sinceskill can be acquired through learning or training and by doing so. Skill enables a personto perform an activity or accomplish a task. Skills and their effects may differ fromprofession to profession. In the teaching profession, the skill required ids the commandover contents, language and an unambiguous expression, whereas the desired effects ofteaching is absorption of the knowledge by the students. The learners are required to
understand the contents of what is taught and to whom, whereas the absorption shallwarrant the use of the knowledge so acquired in the designated manner. Use may involveapplications to find solutions to the problems. To determine the level of competency;standard required for the skill has to be specified.
Standard or norm pertain to a certain minimum quantum of work and/ or a specific levelof quality that is expected to be accomplished in a given time span. An accepteddefinition of standard is that a standard specifies the minimum level of knowledge andskill and hence competence that is required to successfully perform the given functionsrelated to the specific job within an occupational cluster.
Thus Competence, in technical terms, should therefore be taken to standard forknowledge, skill and ability to complete a specific task, to undertake particular activityand/or perform certain functions and duties that pertain to a given job. The ability andskills are, however, acquired through education, training and experience. Educationendows a person with knowledge, while training equips a person with skills, whileexperience provides both knowledge and skill through on the job training that is learning
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by doing. Acquisition of efficiency occurs by the repeated performance of the sameactivity. Competence is reflected in the application of the capabilities and the outcomecan be measured that shall reflect the degree of expertise, proficiency on the one hand,and the actual performance on the other. Competence, will therefore, be reflected both bythe quantum of work done or output produced and the quality of the outcome. Effect or
outcome of the competence has both quantitative and qualitative dimensions, which aremeasurable in time and space. The measurement may, however, be relative or absolute,cardinal or ordinal and it may even be nominal in some cases.
Competency is the ability necessary to do something to a desired standard so as torealize the specified objectives. Necessary means without possession of which the
performance of the activity cannot be undertaken at all, and even if it is undertaken, itwill not lead to realization of the specified objectives to the fullest extent. Level of abilitycan be decided in the light of the consequences or outcomes related to the initiallydefined objectives. But the fulfillment of goals or achievement of targets is a matter ofdegree and direction both of which lead to the desired outcomes. Just as the source of the
competence inputs into the performance of jobs may be too qualitative to measure orquantify, certain outcomes may also be qualitative, and therefore, may not be quantifiableprecisely. Capability is the know-how to do how of a job, to perform a task and tounderstand a specified activity. Naturally, both competence and competency, the
essential elements of capability pertain to the knowhow.
Competence refers to all those factors that are embodied, innate and inherent in thepersona of a person. These do not refer to the cultivated and acquired traits of humanbeings. As against competence, competency refers to the acquired, cultivated and hencedeveloped traits of a person that enables him to undertake specified activities, accomplishtasks and perform particular jobs. The accession and acquisition of competency are basedon knowledge, experience and training, through environment, incentives and motivationmay accentuate the same. The degree and quality of the elements relating to competencymay partly be dependent upon hereditary factors and these may partly be a matter of time,labor and efforts invested in their acquisition. Innate qualities are those which areimbibed within a person and an integral part of ones personality. Innate qualities are
include temperament, honesty, intuition, commitment, sense of responsibility, capacity toact independently, ability to coordinate and cooperate with others, reliability andconfidentiality, capacity to absorb new knowledge and capacity to act as agent ofchange, and or adapt to the emerging change. These qualities pertain to aptitudes,attitudes and approach which are inbuilt part of ones personality and they cannot beacquired. These traits depend mainly on a persons upbringing, environmental factors,
educational system etc. Thus competency may not be totally independent of competencepossessed by a person. Acquired traits are those which are notbuilt to ones personality,but these can be ingrained in ones persona by constant efforts and/or use. These traits
can be acquired through learning and training, experience, on the job learning, and fromeducation. Exogenous sources, and outside agents are required for acquiring these traits.Besides, investment of resources is involved in the acquisition. But cultivated traits areones in which no external force/agent is applied but is developed by prolonged use ofparticular trait or constant, conscious efforts by one may emulate others. Cultivated traits
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include habits and hobbies, work schedule adherence to or defiance of the system orvalues. These facets are also partly the elements that constitute the competence.
Capability is related to functional domain, and which is the core substance of humanresource, may be displayed through a more detailed flow chart/ diagram to display its
constituent elements.
Competence involves the demonstration of skills, knowledge and abilities on the basis ofthe following principles:
Consistency(the ability to repeat practice techniques and outcomes) Independence(the ability to practice without assistance from others) Timeliness(the ability to practice in time frame that enhances patient safety) Accuracy(the ability to practice utilizing correct techniques and to achieve the intended
outcomes) Appropriateness(the ability to practice in accordance with clinical standards and
protocols outlined within the practice jurisdiction
COMPETENCY MAPPING:
In mathematics, mapping is defined as a process by which the relationship between thetwo sets in operationalised so that the members of one set become the members of theother set. In other words, the members of the set one are functionally related to themembers of the second set. In other words , the members of the set one are functionallyrelated to the members of the second set. In geography, mapping is the process ofidentification and display of information regarding locationms of entities and their spatialrelations. Mapping also refers to the map making and the use of maps. If we borrow thisconcept of mapping from geography in the context of the mapping of competencies ofHR managers, then mapping may relate to the identification of elements or features of thepersona which competency comprises of. Then, the mapping will refer to the collection,display and dissemination of information about the elements or facets that constitute thecompetence or competency or capability. Therefore, mapping may be defined as theprocess of identification, explanation and elaboration and display of the nature andmeasurement of the dimensions of such innate as well as the acquired traits of thepersona which endow and enable a person to undertaken specific activities and performthe predefined functions and accomplish a prior assigned tasks that pertain to theparticular jobs.
Three other definitions are needed:
Competency Map
A competency map is a list of an individuals competencies that represent the factorsmost critical to success in given jobs, departments, organizations, or industries that arepart of the individuals current career plan.
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Competency Mapping
Competency Mapping is a process an individual uses to identify and describecompetencies that are the most critical to success in a work situation or work role.
Top Competencies
Top competencies are the vital few competencies (4 to 7, on average), that are the mostimportant to an individual in their ongoing career management process. Importance tothe individual is an intuitive decision based on a combination of three factors: past
demonstrated excellence in using the competency, inner passion for using thecompetency, and the current or likely future demand for the competency in theindividuals current position or targeted career. Although the definition above forcompetency mapping refers to individual employees, organizations also map
competencies, but from a different perspective. Organizations describe, or map,
competencies using one or more of the following four strategies: Organizations-Wide(often called core-competencies or those required for organizationssuccess)
Job Family or Business Unit Competency Sets Position-Specific Competency Sets Competency Sets Defined Relative to the Level of Employee Contribution (Individual contributor, manager, or organizational Leader)
MAPPING PROCESS
First stage of mapping requires understanding the vision and mission of the organization.This is necessary for specification determinationPositions to be mapped are identified.A preliminary project plan is developed during this step to ensure that all the keystakeholders are involved in the process and that the appropriate activities andcommunication plans are established to support the development of the maps.
Second stage requires understanding from the superior performs the behavioural as wellas the functional aspects required to perform job effectively. This involves DataCollectionInformation is gathered to identify the attributes and competencies requiredfor each position. Data is collected to determine the skills, abilities, and personal traitsrequired for success in the position being mapped. This data can be collected throughone-on-one interviews with job content experts and their managers, focus groups withincumbents and managers and internal and external customer interviews. Tool for thefirst and second stage would be a structured interview.
Third stage involves through study of the BEI Reports/ Structured Interview Reports Identification of the competency based on competency framework Measurement of competency Required levels of competency for each job family
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Development of dictionary which involves detail description of the competency based onthe indicators. Care should be taken that the indicators should be measurable and givesobjective judgment.
All information gathered in the data collection phase is analyzed. Attributes andcompetencies are identified and behavioral descriptions are created for each. In addition,
optimal areas of performance are identified and behavioral are created for each. Inaddition, optimal areas of performance are identified according to organizational andmarket requirements. The result of this step is a draft of the competency map. The map isthen reviewed to ensure it meets the current and future needs of the organization.Competencies, attributes, and their corresponding descriptions are evaluated for howaccurately they describe performance requirements and to ensure they are aligned withand support the organizations objectives.
Fourth stage requires preparation for assessment: Methods of assessment can be either through assessment centers or 360 degree feedback. If assessment center is the choice for assessment then tool has to be ready beforehand Tools should be objectively measure the entire competency required.
Determine the type of the tools for measuring the competency. Prepare the schedule for assessment. Training to the assessor should indicate their thorough understanding of the competencies
and the tools and also as to how the behavior has to be documented. Fifth stage involves conducting assessment centre. Usually it is a two day program which
would involve giving a brief feedback to the participation about the competencies thathas been assessed and where they stand.
Sixth stage involves detailed report of the competencies assessed the development planfor the developmental areas.
COMPETENCY MAPPING AND ASSESSMENT
is a process designed to consistently measure and assess staff performance as it relates tothe expectations of the organization. A competency map is made up of four areas ofcompetence attributes:
Personal AttributesThe characteristics which enable the employee to attract others to wellreasoned and logical points of view, to effectively communicate, and to relate to others. Theseinclude:
Insight Integrity and ethics Continuous personal Improvement Commitment and Performance Stability Interpersonal orientation Project Management Skills Innovative/ Creative thinking Presenting/ speaking
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Business writing Professional Demeanor
Leadership QualitiesThe skills that allow the employee to assume a position of influence byassembling and leveraging a variety of resources that address problems and opportunities
throughout the organization. These include: Strategic thinking and Planning Facilitating Negotiating and Persuading Teamwork Coaching and empowerment Problem solving Decision-making Cross-functional perspective.
Broad Business perspectiveThe body of knowledge that encompasses an understanding of
the organization and its industry. These include: The organization and industry knowledge Internal and external Consulting Business relationships/ partnerships Best Practices Current & Emerging Management Practices Risk management Mergers, Acquisitions and strategic alliances Management Accounting Organizational Systems and Processes
Functional Expertise - The traditional technical skills that the employee should possess andwhich form the basis for their unique ability to understand an organization from a perspectivethat others cannot. For e.g. A finance professional should have knowledge in the following:
Financial analysis Treasury Management Cost Management Human Resources Taxation Information Technology Control environment Financial and statutory Reporting and accounting Principles Internal audit Budgeting, Forecasting and Business planning
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Once a competency map has been developed and validated, it can be used as a tool tomanage, evaluate, and develop employee performance; recruit and select individuals thatpossess these skills required in the position; and compensate individuals based on theirdemonstrated performance.
USE OF ASSESMENT TOOL
The tool will continually evolve. As needs change and new concepts and practicesemerge, the model to can be updated to reflect the constantly changing world in which welive and work.
The model can be personalized for individual or corporate use. Different attributes maybe selected or omitted by the employee based on his or her role in the particularorganization.
Upon review of the various models, you will find that the first two competency categories(personal attributes, leadership qualities) as well as part of the third competency category(broad business perspective) are common to almost all employees.
The competencies within the fourth competency category, functional expertise, varybased on the functional area in which the employee works.
Research Methodology
Title A Case Study on the study of performance appraisal and its linkage to competencymapping.
Objectiveobjective is to know that existing performance appraisal system is wellcommunicated to all employees and it helps in improving productivity and individual growth.
Data Collection
Primary Data: Questionnaire, Interview Secondary Data: Data available in office (Sahibabad unit, Ghaziabad), data collectedfrom internet.
Research Design: Descriptive Problem identification Problem categorization Data collection on performance appraisal system exercised at Dabur India Ltd.
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Study of performance appraisal of junior officer stores at grade 6.Convenience sampling
It is purposive or non-probability samplingThis sampling method involves deliberate or purposive selection of particular units of the
universe for consulting a sample, which represents the universe and when elements are selectedfor inclusion in the sample based on the ease of access, it is called convenience sampling
Sampling plan
It is very difficult to collect information from every member of a population. As time andcosts are the major limitation that the researcher faces.
One sample is taken that is of one junior officer stores taking into account conveniencesampling technique. This sampling method involves deliberate or purposive selection ofparticular units of the universe for consulting a sample, which represents the universe andwhen elements are selected for inclusion in the sample based on the ease of access, it iscalled convenience sampling.
DATA SOURCE
The source of collection of Primary data is Questionnaire, interview. The source of collection of Secondary data is presentation, booklet and links to
Internets.
Procedure adopted for the study (analysis and interpretation)
Firstly we have studied the performance appraisal system which is followed at DaburIndia Ltd at various levels during the study of which we found that absence ofcompetency mapping. Then we have taken one of the job position at Dabur which lies atgrade 6 (junior officer stores) and studied his performance appraisal done by hisimmediate supervisor.
After the study of performance appraisal on the basis of various parameters mentionedwe have identified his competencies which are important for his better performance.
Different Questionnaires are got filled by one of the stores officer and his immediatesuperior who is responsible for doing performance appraisal of junior officer stores.
Then competency mapping is done matching the competencies identified of junior officerstores and competence of job holder and developing competency based job description.
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Following is given the format in which the performance appraisal system of
junior officer stores is done at Dabur India Ltd.
CONTRIBUTION ENHANCEMENT PLAN
(GRADE VI & BELOW- OPERATIONS)
DABUR INDIA LTD
Employee Details
Name Narayan Singh Khati
Designation junior officer
Division/department Stores
Employee code 0054
Grade VI
Review period April to March
ASSESMENT
PARAMETERS
Parameters
(details out deliverables
against each parameters
below)
Weight
ages
( B)Ratings Review
and
assessments (to
be filled
in by
appraise
r)
Sco
re
(E)
Final
score(F=B
*E)
PRODUCTIVITY ,
SERVICE LEVEL
(maintenance of
accounting records
providing vouchers to
auditors)
25% Outstanding -5
Strong- 4
Good -3
Satisfacto
ry- 2
Below
expectati
on -11.To ensure loading of
finished goods as per pick
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list released.
2. To ensure different
goods are loaded in
separate lots
3. To ensure batch wise
dispatches and planningof loading according to
the goods in pick list.
4. To ensure that the
goods are loaded in a
truck in a proper way as
per norms.
5. To ensure that the
goods are taken out as per
pick list after proper
verification and counting.
6. To ensure planning ofgoods as per list for a full
truck load so that full
place of truck should be
covered and maximum
load should be
transferred according to
transportation norms.
7. Before loading it should
be ensured that the
surface of truck should be
neat and clean.8. Ensure that heavy
weighted goods should be
loaded .QUALITY
IMPROVEMENT/ADHE
RENCE TO GMP
(Binding of vouchers in
systematic manner)
10% Outstanding -5
Strong- 4
Good -3
Satisfacto
ry- 2
Below
expectati
on -11.To ensure all the
finished goods are
receieved and dispatched
as per batch.
2. To ensure juice and
home care products,
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cosmetics products are
loaded in separate trucks.COST REDUCTION AND
WASATAGE
ELIMINATION
(Dispatches /courier of
cheques etc)(Operation of photo copier)
(Voucher binding)
10% Outstanding -5
Strong- 4
Good -3
Satisfactory- 2
Below
expectatio
n -11.To ensure proper
utilization of contract
workers
2.To finish work with
using minimum
manpower
3.To finish the loadingwith minimum time
comsumption for a truckUPKEEP OF MATERIALS
/MACHINERY/RECORDS
ETC
(Proper maintenance of
records)
10% Outstanding -5
Strong- 4
Good -3
Satisfacto
ry- 2
Below
expectatio
n -11.To ensure all finishedgoods stacked on pallets
as per stacking norms.
2. To ensure all the
finished goods left after
loading kept back to its
proper place.
3.Maintainig proper
loading record for each
and every truck loaded
SAFETY ANDHOUSEKEEPING
(keeping kitchen/records in
order)
10% Outstanding -5
Strong- 4
Good -3
Satisfacto
ry- 2Below
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expectatio
n -11.To take all safety
precautions while
handling of finished
goods.2.To maintain hygienic
and cleanliness
conditions.
3. To ensure presence of
conductor at the time of
positioning at the
platform.CONTRIBUTION TO
TPM, KAIZEN,5S,OTHER
DEVELOPMENTAL
ACTIVITIES
(record keeping in orderlymanner)
5% Outstanding -5
Strong- 4
Good -3
Satisfactory- 2
Below
expectatio
n -11.To ensure warehouse is
maintained in orderly
manner.
1.To ensure documents
are orderly filed
1.To ensure overall
quality improvement. 70% Total finalscore
ASSESMENT PARAMETRES - BEHAVORIAL
Parameters
Weightage(30%)
(B)Ratings
Review andassessment(to
be filled in by
appraiser)
Score(E) Finalscore(F)=B*E
Behavioural
Teamworking
10% Outstanding-5
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Effectiveness ofwork relationshipwith subordinatespeers & superiors.Contributes to
group performanceto meetobjectives/targets.
Strong- 4
Good -3
Satisfactory-
2
Below
expectation-1Conduct/discipline
Regular andpunctual inattendance.Good behavior withall.Follow companyrules.
No integrity issue.
5% Outstanding-5
Strong- 4
Good -3
Satisfactory-
2
Below
expectation
-1
Communication
The desire andability to shareavailableinformation with allconcerned.Uses effectivecommunicationskills to get the jobdone.
5% Outstanding-5
Strong- 4
Good -3
Satisfactory-
2
Below
expectation
-1
AttitudeApproach towardswork & learning,colleagues,superiors,commitmenttowards work andwillingness to helpothers.
10%
Outstanding-5
Strong- 4
Good -3
Satisfactory-
2
Below
expectation
-130% Total Final
ScoreGrand TotalScore(B+C)
Signature of appraiserDate
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Individual Development Plan (IDP)Overall Feedback to be communicated to the Assessee
What are employees training needs?
Justification for promotion, if recommended .(strictly follow the Promotion policy
guidelines)
If recommended, clearly specify current jobs alongwith proposed additional jobs to be
given post promotion.
Overall performance Review recommendations ( Please refer to the gridand contribution rating)
5-Outstanding 4-Strong 3-Good 2-Satisfactory 1-BelowExpectation
Appraiser Comments-
Reviewer Comments-
Signature of Appraiser Signature of Reviewer
Date ----------------
Now on the basis of parameters given in Contribution enhancement plan of
junior officer stores we have identified his competencies as
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Functional competencies-
1. Parameter- Productivity and service levelCompetencies- (1) Planning
(2) Physical counting & verification(3) Written communication(4) Proper space utilization(5) Ensure goods are loaded as per
Plan.(6) In-time loading & unloading
2.Parameter
-Quality improvement /Adherence to GMP.
Competencies- (1) Proper placement of goods.(2) To ensure batch-wise goods are(3) Dispatched and received.
3. Parameter- Cost reduction and Wastage Elimination.Competencies Effective manpower utilization
Minimize time consumption in loading/unloading activities.
4. Parameter- Safety and house-keepingCompetencies- (1) to take all safety measures while handling of finished Goods.
(2)To maintain hygienic cleanliness conditions.(3) To ensure presence of conductor at the time of positioning at the
platform.
5. Parameter- Contribution to TPM, Kaizen, 5S,Other developmental activities.
Competencies- (1) to ensure warehouse is maintained in orderly manner.(2)To ensure documents are are orderly filed.(3)To ensure overall quality improvement.
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Personal Competencies of junior officer stores as per behavioural parameter.
Team working Discipline Positive Attitude Commitment Interpersonal orientation Effective communication Self management
Analysis and interpretation
(Of the questionnaire filled by the junior officer stores)
1. Do you know that performance appraisal system is followed at Dabur India Ltd and its also
applicable to your position? Yes Partially Not at all
Ans (a) Yes
By the above answer it is analyzed that employees are aware about performanceappraisal carried out at their level.
2. Which method is used in appraising your performance? 360 degree method Action by objectives method Rating Method Others, please specify-------------------------------
Ans. Action by objectives method
It is analyzed that junior officer stores also know about the process which isfollowed at his level for performance appraisal. It also came to the knowledge that
till last year rating method was used for appraising the performance of the
employees of grade 6 and below it and from this year only action by objectives
method is used.
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3. Who appraise your performance?1) Your immediate supervisor2) Human resource department3) Head of the department
a) 1&2b) 1 & 3
c) 2 & 3
ans. (b) 1 & 3
it is analyzed through this answer that employee is knowing well that hisperformance will be appraised whom.
The fact came to light that performance is appraised by immediate supervisor andconcerned head of the department and then it is reviewed by the human resource
department.
4. Do you receive feedback on your performance?
Yes Occasionally Not at all
Ans. (a) Yes
It is analyzed that junior officer stores receive feedback, But during the study it came to light that feedback is not given on a regular basis i.e
daily, weekly, monthly or quarterly but it is given on an annual basis which is not
useful.
5. Who gives you feedback?a) Your supervisorb) Your department headc) Human Resource department
ans. (b) your department head
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it is analyzed that junior officer stores is known about the source of feedback to himand in case of knowing his own performance he can easily contact his concerned
departmental head.
6. Does feedback session structured or informal?
a) Structuredb) Informal
ans. (a) structured
Feedback session of junior officer stores is structured which takes place on anannual basis which is done so as to complete the performance appraisal process.
7. With the existing performance system, do you able to know which competencies your job
demands and you need to develop?(Yes or no) Yes No
Ans. Yes
It is analyzed that junior officer stores is of the view that he is able to know thecompetencies through the existing performance appraisal but during the study I
came to know that it is myth they only get to know about the parameters of
performance appraisal system but not the competencies which are essential for
performing the job task well.
8. If No, do you feel that knowing the competencies will help you in improving yourperformance?(Yes/no)
yes no ans.Answer to this question is not answered but it is evident that knowing the
competencies will help in improving the performance.
9. What is your opinion that competencies should be well-defined?
a) Yesb) To some extentc) Not at all
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ans. (a) Yes
it is analyzed that junior officer stores is of the opinion that competencies should bewell-defined but it is not the task of a officer on his own for the this purpose concept
of competency mapping should be introduced.
10. Can knowledge of competencies to you can contribute towards your increased knowledgeand higher productivity?
a) Yesb) To some extentc) Not at all
ans. (a) yes
It is analyzed that competencies are important and helps in increasing knowledgeand higher productivity as by understanding competencies only we will come to
know the gaps what we have and what should we have, and will try to overcome
those gaps through which increased knowledge and higher productivity can be
attained.
(Signature)---------------------------------
(Date)------------------------------------
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Analysis and interpretation (of the questionnaire filled by
immediate supervisor)
1. According to you existing PMS is scientific and capable to measure actual performance ofjunior store officer
Completely disagree 1 Disagree 2 Not sure 3 Agree 4 Completely agree 5
Ans. Agree 4
It is analyzed that supervisor is of the view that existing PMS is capable of measuring theactual performance of the junior officer stores but not completely as it shows that theresome loopholes which needs to be tightened up.
2. Do you think existing performance appraisal helps employee to improve his performancelevel?
Completely disagree 1 Disagree 2 Not sure 3 Agree 4 Completely agree 5
Ans. Agree 4