Introduction of Human Resource Management

7/29/2019 Introduction of Human Resource Management

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A

Project Report

On

A STUDY TO UNDERSTAND PERFORMANCE

APPRAISAL AT PEPSICO

2012-13

PGP-GBM

Submitted by- Submitted to-

Manish Kumar Lodha Mrs. Swati Shome

PGP-GBM IInd

Sem. Professor

XCELLON INSTITUTE SCHOOL OF BUSINESS

22/23, Shrimali Society, Opp. Navrangpura Police Station,

Navrangpura, Ahmedabad-380009


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ACKNOWLEDGEMENT

No task can be achieved alone. It took many special people to

facilitate and support it. Hence, I would like to acknowledge all for

their valuable support and convey my humble gratitude.

I would like to thank Mrs. Swati Shome ( Professor, Xcellon

Institute School of Business ,AHMEDABAD.) without whose

direction and guidance with constructive comments and

encouragement throughout the interview. Without him the interview

would not have been made possible. Mrs. Shome valuable advice,

remarks and discipline insured that I was constantly on my feet. I am

very thankful to him for his support, knowledge about practical

experience, which I got from him.

.

Manish Kumar Lodha


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CONTENTS:-

Chapter

No.

Name Page No.

1. Introduction 5-7

2. Human Resource Management 8-8

3. Performance Appraisal 9-13

4. Performance Appraisal at Pepsi International 14-14

5. Performance Appraisal challenges 15-16

6. Recommendation and Suggestion 17-17

7. Bibliographys 18-18


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Introduction of PepsiCo

PepsiCo entered India in 1989 and in a short period of 20 years has

grown into the largest and one of the fastest growing food & beverage

business in the country. PepsiCo Indias growth has been guided by

PepsiCos global vision of Performance with Purpose. This means

that while businesses maximize shareholder value, they have a

responsibility to all the stakeholders including the communities in

which they operate, the consumers they serve and the environment

whose resources they use.

Large investor: One of the largest US multinational investors in the

country with an investment of over $1 billion, PepsiCo India provides

direct and indirect employment to over 1,50,000 people across the

country. Its beverage and snack food business is supported by 36

beverage bottling plants, (13 company and 23 franchisee owned) and


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three food plants. PepsiCo Indias diverse portfolio includes iconic

brands like Pepsi, Lays, Kurkure, Tropicana 100%, Gatorade, Quaker

and young but immensely popular and fast growing brands such as

Nimbooz and Aliva.

No.1 food & beverage business in India: PepsiCo India has not only

grown to become the countrys largest food and beverage business but

has also become a powerful and consistent driver of PepsiCos global

growth. Over the last two years, India's beverage and foods businesses

have been the largest volume growth contributors to PepsiCo across

the globe. PepsiCo India has been frequently recognized for its

industry-leading human resource practices, indovations, corporate

values, and talent, and was one of the five top marketers of the

country in 2009.

A third of PepsiCo India's portfolio today comprises healthierproducts: PepsiCos portfolio reflects its commitment to nourish

consumers with a diverse range of fun and healthy products, making

the healthful choice an easier choice. As PepsiCo grows, the portfolio

transformation will continue with a systematic plan to reduce added

sugar, sodium and saturated fats in its products. Today, the portfolio

includes several healthier treats like Quaker Oats, Tropicana juices,

rehydrator Gatorade, Pepsi Max and Cheetos Whoosh. PepsiCo was

the first in India to introduce the use of healthier oils for its snacks --

Lays Potato chips, Kurkure and Cheetos.

Model partnership with over 22,000 farmers: PepsiCo has

pioneered and established a model of partnership with farmers and


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now works with over 22,000 happy farmers across ten states. More

than 45% of these are small and marginal farmers with a land holding

of one acre or less. PepsiCo Indias farming program has improved

their livelihoods and incomes by providing assured buy back of their

produce at pre-agreed prices thus insulating them from open market

price fluctuations. PepsiCo provides 360 degree support to the farmer

through quality seeds, extension services, disease control packages,

bank loans, weather insurance, and latest technological practices.

Global leader in water conservation: In 2009, PepsiCo India

achieved a significant milestone, by becoming the first business in the

PepsiCo system to achieve Positive Water Balance (PWB). This

means that it replenishes more water than it consumes in its

manufacturing operations. This has been validated by Deloitte

Consulting. PepsiCo is leading a pioneering initiative to replacetransplanting of paddy with direct seeding technology which has

helped reduce water consumption in paddy cultivation by over 30%

and has also cut down GHG emissions by 75%. In 2010, PepsiCo

India saved 10.1 billion litres of water through various initiatives. For

water related environment initiatives, PepsiCo India has received

numerous awards such as CII National award for water management,

Water Digest award for water practices and Golden Peacock award

for water conservation among others.

Care for the environment: Following its success in water

conservation, the company is now focused on reducing its carbon

footprint. Nearly 30% of its energy is today generated from renewable


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sources such as rice husk boilers and wind turbines. Initiatives such as

agriculture waste boilers in our plants, installation of wind turbines,

reduction of use of chemicals, reduction in weight of packaging and

film used in product packaging, reduction in weight of metal

crowns/polypropylene caps for plastic bottles, conversion of potato

waste into bio gas help reduce load on the environment. PepsiCo

India also partners NGOs and local administrations in three states of

India to recycle household solid waste in an endeavor to keep cities

clean. Its award-winning "waste to wealth" recycling program reaches

450,000 families.

Exemplary employment practices: PepsiCo India believes in

providing employment and growth opportunities to local talent. Its

College of Leadership, ensures early identification of talent, and

employees focused development through critical experiences.PepsiCo strongly believes in Winning with Diversity and Inclusion.

PepsiCo has been offering employment to women employees at the

same employment terms and equal growth opportunities as men.

Today women comprise more than 25% of the companys leadership

team in India. PepsiCo India currently employs over 100 differently-

abled people and has won the prestigious Hellen Keller award from

the National Centre for Promotion of Employment for Disabled

People (NCPEDP).


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Introduction of Human Resource Management

Human Resource Management (HRM) is the function within an

organization that focuses on recruitment of, management of, and

providing direction for the people who work in the organization.

HRM can also be performed by line managers.

HRM is the organizational function that deals with issues related to

people such as compensation, hiring, performance management,

organization development, safety, wellness, benefits, employee

motivation, communication, administration, and training.

Human Resource management includes

(1) Conducting job analyses,

(2) Planning personnel needs, and recruitment,

(3) Selecting the rightpeople for the job,

(4) Orienting and training,

(5) Determining and managing wages and salaries,

(6) Providing benefits and incentives,

(7) Appraising performance,

(8) Resolving disputes,
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Performance Appraisal

Performance appraisal is the process of obtaining, analyzing and

recording information about the relative worth of an employee. The

focus of the performance appraisal is measuring and improving the

actual performance of the employee and also the future potential of

the employee. Its aim is to measure what an employee does.

People differ in their abilities and their aptitudes. There is always

some difference between the quality and quantity of the same work on

the same job being done by two different people. Performanceappraisals of Employees are necessary to understand each employees

abilities, competencies and relative merit and worth for the

organization. Performance appraisal rates the employees in terms of

their performance.

Aprominent personality in the field of Human resources,

"performance appraisal is the systematic, periodic and an impartial

rating of an employees excellence in the matters pertaining to his

present job and his potential for a better job." Performance appraisal

is a systematic way ofreviewing and assessing the performance of an

employee during a given period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of

the employee. It helps to analyze his achievements and evaluate his

contribution towards the achievements of the overall organizational

goals.
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Objectives of Performance appraisal:

To review the performance of the employees over a given period

of time.

To judge the gap between the actual and the desired

performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication

between superiorsubordinates and managementemployees.

To diagnose the strengths and weaknesses of the individuals so

as to identify the training and development needs of the future.

To provide feedback to the employees regarding their past

performance.

Provide information to assist in the other personal decisions in

the organization.

Provide clarity of the expectations and responsibilities of the

functions to be performed by the employees.

To judge the effectiveness of the other human resource

functions of the organization such as recruitment, selection,

training and development. To reduce the grievances of the employees.


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process are application blanks, interviews, psychological tests, etc.

These tools are used to predict (guess) the candidate's performance on

the job. A proper performance appraisal finds out the validity of the

various selection tools and so the company can follow suitable steps

for selecting employees in future.

4. Promotions

Performance appraisal is a way of finding out which employee should

be given a promotion. Past appraisals, together with other backgrounddata, will enable management to select proper persons for promotion.

5. Transfers

Performance appraisal is also useful for taking transfer decisions.

Transfers often involve changes in job responsibilities, and it is

important to find out the employees who can take these

responsibilities. Such identification of employees who can be

transferred is possible through the performance appraisal.

6. Layoff Decisions

Performance appraisal is a good way of taking layoff decisions.

Employees may be asked to lay off, if the need arises. The weakest

performers are the first to be laid off. If there is no performance

appraisal, then there are chances that the best men in the department

may be laid off.
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7. Compensation Decisions

Performance appraisal can be used to compensate the employees by

increasing their pay and other incentives. This is truer in the case of

managerial jobs and also in the case of employees in non-unionized

organisations. The better performances are rewarded with merit pay.

8. Human Resource Planning (HRP)

The appraisal process helps in human resource planning (HRP).

Accurate and current appraisal data regarding certain employees helps

the management in talking decisions for future employment. Without

the knowledge of who is capable of being promoted, demoted,

transferred, laid off or terminated, management cannot make

employment plans for the future.

9. Career Development

Performance appraisal also enables managers to coach and counsel

employees in their career development.
http://kalyan-city.blogspot.com/2011/04/human-resource-planning-hrp-manpower.htmlhttp://kalyan-city.blogspot.com/2011/04/human-resource-planning-hrp-manpower.html


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Performance Appraisal at PepsiInternational

Pepsi international with operations in over 150 countries, has devised

a common performance appraisal system that focuses on motivating

managers to achieve and maintain high standards of performance.

Administrative consistency is achieved through the use of a

performance appraisal system of five feedback mechanisms - instant

feedback, coaching, accountability based performance appraisals,

development feedback, and a human resource plan. The common

system provides guidelines for performance appraisal, yet allows for

example, the first step of instant feedback is based on the principle

that any idea about any aspect of the business or about an individuals

performance is raised appropriately and discussed in a sensitive

manner. The instant feedback message can be delivered in anyculture; the important thing is not how it is done but that it is done.

The purpose of instant feedback is

always to improve business performance, not to criticise cultural

styles. Using this system, PCI tries to balance the cultural and

administrative imperatives of successful managing the performance of

a diverse workforce.


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Performance Appraisal challenges

Determining the evaluation criteria

Identification of the appraisal criteria is one of the biggest problems

faced by the top management. The performance data to be considered

for evaluation should be carefully selected. For the purpose of

evaluation, the criteria selected should be in quantifiable or

measurable terms

Create a rating instrument

The purpose of the Performance appraisalprocess is to judge the

performance of the employees rather than the employee. The focus of

the system should be on the development of the employees of the

organization

Lack of competence

Top management should choose the raters or the evaluators carefully.

They should have the required expertise and the knowledge to decide

the criteria accurately. They should have the experience and the

necessary training to carry out the appraisal process objectively.

Errors in rating and evaluation

Many errors based on the personal bias like stereotyping, halo effect

(i.e. one trait influencing the evaluators rating for all other traits) etc.

may creep in the appraisal process. Therefore the rater should exercise
http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/


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objectivity and fairness in evaluating and rating the performance of

the employees.

Resistance

The appraisal process may face resistance from the employees and the

trade unions for the fear of negative ratings. Therefore, the employees

should be communicated and clearly explained the purpose as well

the process of appraisal. The standards should be clearly

communicated and every employee should be made aware that what

exactly is expected from him/her.


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Recommendation and Suggestion

1- They should develop such system in their HR department that

no ethical issues can be raised

2- The employees should participate in all the activities of the

department.

3- They should choose plan in such a way that when there is a

need of recruitment the proper candidate must be available.

4- The factor of favouritism must be eliminated from the

department of HR.

5- They should hold meetings of the HR employees more

frequently for eliminating any misunderstanding.

6- Paper work must be reduced, computerized work

should be more

7-

There should be on-line information of all the

employees regarding all the activities performed by them

like performance, communication skills, quality of work,

over time devoted by each employee, etc

8- By adopting MBO method, Employees compete against

each other and dont help others.


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Bibliography

www.pepsico.com

www.managementparadise.com

www.citehr.com

K. Ashwathapa, Human Resource Management, Tata McGraw-hills

publishing company ltd., 3rd edition.

Chhabra T.N, Human Resource Management: Concepts and

issues,Dhanpat Rai & co.,5th

edition(2005)
http://www.managementparadise.com/http://www.citehr.com/http://www.citehr.com/http://www.managementparadise.com/


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Introduction of Human Resource Management