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A STUDY ON PERFORMANCE APPRAISAL MANAGEMENT IN Dr. REDDY’S LABORATORIES LTD
PROJECT REPORT
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE
MASTER OF BUSINESS ADMINISTRATION
BY
S.POOJITHA
A30601908080
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AMITY GLOBAL BUSINESS SCHOOL
2009
ACKNOWLEDGEMENT
I avail this opportunity to express my deep sense of gratitude to all the people who have helped me to carry out and complete this project in partial fulfillment of my MBA degree curriculum
I am deeply indebted to Dr. G. Prasad Rao, Director, AMITY GLOBAL BUSINESS SCHOOL for the valuable support and gave me an opportunity to do my project work.
I wish to express my hearty thanks to my faculty guide Prof. Latha Chakravarthy of AMITY GLOBAL BUSINESS SCHOOL, for the help she provided to carry out this project.
It has been of inestimatable pleasure and privilege to express my heartful gratitude, admiration and sincere thanks to Dr. V. Narayana Reddy, HR, Dr. Reddy’s Laboratories Limited, CTO-UNIT III
I also wish to thank all the employees of Dr. Reddy’s Laboratories Limited, who helped me by sharing their knowledge and I offer a word of thanks to the almighty who gave me strength, courage and blessing to carry out a successful study
S.POOJITHA
INTRODUCTION
In this 21st century scenario, one can easily identify the rapid changes in the world in various things. The human person started thinking differently from past. Each one strives to do better than the past.
Person’s mind started working in thinking about his status where he works and where he wants to be i.e., his future goal. Every one wants to be specially identified from the other. For this he strives to do better than others. He wants to be recognized as better than others.
In this context we have a word of performance appraisal of the individuals and groups in the organization. It is the individuals or employees who are considered to be the backbone of any organization.
In this work one can notice the importance of performance appraisal and how it helps in molding the employees in achieving organizational goals. For our convenience the work has been divided into various chapters each one dealing with different aspect of the work.
Performance appraisal is the method of appraising employee’s activities in order to make him to work towards achieving organizational goals. Appraising an employee is one of the fundamental jobs of human resource management. It is done by knowing the strengths and weaknesses of employees thus correcting them wherever necessary and molding them by training if necessary.
This also helps in giving rewards to those who contribute in the development of the organization. Before understanding the meaning of performance appraisal, let us consider where and how it started.
1.1 History of Performance Appraisal:
Once the employee has been selected and placed, he is then appraised for his performance. Performance appraisal is the step where the management finds out how effective is has been in selecting employees. Performance appraisal is a process of evaluating an employee’s performance on the job in terms of its requirements. It is the process of evaluating the performance of the employee in terms of the requirements of the job for which he is employed, for placement, selection promotion, financial reward and other actions which require differential treatment among the members of a group as distinguished from actions affecting all members equally.
Performance appraisal technique is said to be used, for the first time during the First World War, by the US army. It has adopted “man-to-man” rating system for evaluation military personnel during those periods.
Performance of individuals of an organization would chance over a period of time. It could happen in order to adapt to the changing requirements and the changing working conditions. By performance appraisal one can bring together or abolish the gap between the expected performances an actual performance.
So, the main objective of performance appraisal is to understand the needs of employees, to correct those who deviate from the organizational goals, through training, counseling. This also help to prevent grievances, and in disciplinary activities of employees. Thus, making each and every employee happy on his job and help them to develop their skills and talents.
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Figure 1: Employee Happiness
1.2 What is Performance?
Performance is synonymous with behavior; it is what people actually do. Performance includes those actions that are relevant to the organizational growth and can be measured in terms of each individual’s proficiency (level of contribution).
1.3 How is Performance managed?
Good performance by the employees creates a culture of excellence, which benefits the organization in the long run. The activity includes evaluation of jobs and people both, managing gender bias, career planning, and devising methods of employee satisfaction etc. The efforts are to make to generate the individual’s aspirations with the objectives of the organization. Organization has to clear the way of career advancements for talented and hardworking people. Fear of any kind from the minds of the employees should be removed so that they give best to their organization. Allow free flow of information. Communication network should be designed in such a way no one should be allowed to become a hurdle. This enables the managers to take correct decisions and that too quickly.
1.4 Why Performance Appraisal?
Today’s working climate demands a great deal of commitment and effort from employees, who in turn naturally expect a great deal more from their employers. Performance appraisal is designed to maximize effectiveness by bringing participation to more individual level in that it provides a forum for consultation about standards of work, potential, aspirations and concerns. It is an opportunity for employees to have significantly greater influence upon the quality of their working lives. In these times of emphasis on “quality”, there is a natural equation: better quality goods and services from employees who enjoy better quality “goods and services” from their employers.
Performance appraisal must be seen as an intrinsic part of a manager’s responsibility and not an unwelcome and time-consuming addition to them. It is about improving performance and ultimate effectiveness.
Performance appraisal is a systematic means of ensuring that managers and their staff meet regularly to discuss post and present performance issues and to agree what future is appropriate on both sides.
This meeting should be based on clear and mutual understandings of the job in question the standards and outcomes, which are a part of it. In normal circumstances, employees should be appraised by their immediate managers on one to one basis. Often the distinction between performance and appraising is not made. Assessment concerns itself only with the past and the present. The staff is being appraised when they are encouraged to look ahead to improve effectiveness, utilize strengths, redress weaknesses and examine how potentials and aspirations should match up.
It should also be understood that pushing a previously prepared report across and desk cursorily inviting comments, and expecting it to be neatly signed by the employee is not appraisal - this is merely a form filling exercise which achieves little in terms of giving staff any positive guidance and motivation.
1.5 The appraisal of performance should be geared to:
❖ Improving the ability of the jobholder;
❖ Identifying obstacles which are restricting performance
❖ Agreeing a plan of action, that will lead to improved performance.
It is widely accepted that the most important factor in organization effectiveness is the effectiveness of the individuals who make up the organization. If every individual in the organization becomes more effective, then the organization itself will become more effective. The task of reviewing situations and improving individual performance must therefore be a key task for all managers.
For appraisal to be effective, which means producing results for the company, each manager has to develop and apply the skills of appraisal.
These are: -
➢ SETTING STANDARDS
➢ MONITORING PERFORMANCE
➢ ANALYZING ANY DIFFERENCES
➢ INTERVIEWING
➢ Setting standards on the performance required, which will contribute to the achievement of specific objectives.
➢ Monitoring performance in a cost–effective manner, to ensure that previously agreed performance standards are actually being achieved on an ongoing basis.
➢ Analyzing any differences between the actual performance and the required performance to establish the real cause of a shortfall rather than assume the fault to be in the job holder.
➢ Interviewing having a discussion with the jobholder to verify the true cause of a shortfall, a developing a plan of action, which will provide the performance, required.
Appraisal can then become a way of life, not concerned simply with the regulation of rewards and the identification of potential, but concerned with improving the performance of the company. The benefits of appraisal in these terms are immediate and accrue to the appraising manager, the subordinate manager/employee, and to the company as a whole.
Performance appraisals actively involve employees in understanding what is expected of them. By setting agreed objectives — and later reviewing the results — each employee is responsible for his or her own performance.
Performance appraisals are applicable for all categories of employees in the enterprise. Sometimes self appraisal schemes are implemented for top management cadre. In most cases employees are appraised by their superiors. The modern way of appraising is by superiors, subordinates, peers and others which is 360 degree appraisal.
It is good to discuss the outcome of appraisal with the employee. The objective of appraisal is not to blame the employee but to bring an improvement in the employee. Appraisal needs to be objective and not subjective. The actual performance of the employee is to be appraised and not the employee as a person. It gives a qualitative judgment as to indicate how well or how bad the employee is doing the job, whether the employee is able to complete the job assigned to him and to what extent the achievement is possible, whether the performance is affected by the reasons beyond the control of the employee and whether the employee has utilized his strengths in performing the job.
At Dr. Reddy’s, sustainability is a multi-dimensional aspiration, which has its roots in the every purpose of our existence – providing affordable medicines to people around the world and meeting medical needs through innovation. Our business, by its very nature, serves a social good, so we have a far deeper reason than profits alone to drive our performance.
For Dr. Reddy’s, building a sustainable organization is not a trend that blindly follow; it is intrinsic to how they have operated for decades. To Dr. Reddy’s, a commitment to sustainability means a commitment to fulfilling the obligations to all the stakeholders – the customers & partners, employees, shareholders and society. Thus, while optimizing profitability may be one measurement of the performance, they also judge the success by the performance with regard to the communities in which they live and work, the environment and the employees. They understand that it is only by increasing value to all of these stakeholders that can build an ever flourishing and lasting organization.
While sustainability thinking was always woven into the fabric of the organization, they formally declared their intent to institutionalize it in 2004, when they first began to publicly report their sustainability practices. They annually publish their Sustainability Report with direction from the guidelines recommended by Global Report Initiative G3, covering social, ethical, and economic, safety and environmental aspects of our business.
1.6 Purpose of Performance Appraisal:
Organizations use the performance appraisal for three purposes:
a) Administrative: It commonly serves as an administrative tool by providing employers with a rationale for making many personnel decisions, such as decisions relating to pay increases, promotions, demotions, terminations and transfers.
b) Employee development: It provides feedback on an employee’s performance. Appraisal data can also be used for employee development purposes in helping to identify specific training needs of individual.
c) Programme Assessment: Programme assessment requires the collection and storage of performance appraisal data for number of uses. The records can show how effective recruitment, selection and placement have been in supplying a qualified workforce.
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. Performance appraisals of Employees are necessary to understand each employee’s abilities, competencies and relative merit and worth for the organization. Performance appraisal rates the employees in terms of their performance.
Performance appraisals are widely used in the society. Performance appraisal is considered as most significant and indispensable tool for organization because it provides highly useful information in making decisions regarding employee placements and promotions. Accurate information plays a vital role in organization as a whole. It helps pinpoint weak areas in employees and provides need bases training programmes.
Performance appraisal is very important but equally delicate and sensitive area in Human Resource Management. Periodical performance appraisal is a common practice in mist of the enterprises. It is a tool for the up-gradation of performance of the employees.
1.7 Benefits of performance appraisal:
❖ It serves as a means of telling a subordinate how he is doing and suggesting necessary changes in his behavior and attitudes.
❖ It thus provides information which helps to counsel the subordinate. It also serves to stimulate and guide employee’s development.
❖ It is useful in analyzing training and development needs. These needs can be assessed because performance appraisal reveals people who require further training to remove their weaknesses.
❖ Performance appraisal serves as a means for evaluating the effectiveness of devices used for the selection and classification of employees.
❖ It is therefore helps to judge the effectiveness of recruitment, selection, placement and orientation systems of the organization.
❖ Performance appraisal facilitates human resource planning and career planning. Permanent performance appraisal records of employees help management to do human resource planning without relying upon personal knowledge of supervisors.
❖ Performance appraisal promotes a positive work environment, which contributes to productivity. When achievements are recognized and rewards on the basis of objective performance measures, there is improvement in the work environment.
1.8 Need and Importance of the Study:
This work on performance appraisal helps, one to understand the methods adopted at Dr. Reddy’s Laboratories Ltd in appraising the employees, which makes or motivates them to work towards achieving organizational goals.
1.9 Objectives of the Study:
1. To study on Performance Appraisal System.
2. To study the design of Performance Appraisal System existing in Dr. Reddy’s Laboratories Limited.
3. To know the satisfaction level of existing Performance Appraisal System of the organization.
1.10 Scope of the Study:
This study is confined to the performance appraisal system of Dr. Reddy’s Laboratories Ltd. It analysis the different appraisal methods adopted by the organization and tries to bring out the importance and use of appraisal method to employees and also its drawbacks if any.
1.11 Methodology of the Study:
The study of performance appraisal in Dr. Reddy’s Laboratories Limited is made with the help of Primary and Secondary Data.
1.12 Sources of Data:
The study is based on both Primary and Secondary data.
➢ Primary Data:
Primary data is collected through a well structured questionnaire circulated to 50 employees working in the organization.
Personal discussions were held with the officials to elicit relevant information for the purpose of the study.
➢ Secondary Data:
Secondary data was some times collected from more than one source. The secondary data is collected from the official records of the company.
1.13 Limitations:
1. Since the number of employees selected is limited therefore the findings may not represent the entire organization.
2. The duration of the study is limited.
3. Gathering required information through oral communication also.
“The latest mantra being followed by organizations across the world being – "get paid according to what you contribute" – the focus of the organizations is turning to performance management and specifically to individual performance. Performance appraisal helps to rate the performance of the employees and evaluate their contribution towards the organizational goals. If the process of performance appraisals is formal and properly structured, it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance. It helps to align the individual performances with the organizational goals and also review their performance.”
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Figure 2: Appraisal of the employee by the supervisor
REVIEW OF LITERATURE
In any organization performance appraisal plays a vital role in developing the skills of the employees. It is a systematic evaluation of subordinates by their superiors of their performance. Generally, the superiors wish to know the performance of their subordinates. On the other hand, the employees like to know their positions in the organization.
Performance appraisal of the groups, individuals and organizations has become a common practice in all societies. It can be a structured form or unstructured form. This appraising of performance helps one to know where and how an individual or groups are performing the work.
2.1 Meaning:
Performance appraisal is a method of evaluating the behavior of employees in the work spot. In general, one can understand that performance refers to the degree of accomplishment of the tasks that make up an individual’s job. It means that whether the person has fulfilled the demands of the job, which are expected of him or of the job.
2.2 Definitions:
"Performance appraisal is a systematic and objective way of evaluating an employee's performance in terms of his job requirements".
"Performance Appraisal is the process of evaluating the performance and qualifications of the employees, in terms of the requirements of the job for purposes of administration including placement, selection for promotions, providing financial rewards and other actions which require: differential treatment among the members of a group as distinguished from actions affecting all members equally".
2.3 Features:
1. Performance appraisal is the systematic description of an employee’s job relevant strengths and weaknesses.
2. The basic purpose is to find out how well the employee is performing the job and establish a plan of improvement.
3. Appraisals are arranged periodically according to a definite plan.
4. Performance appraisal is not job evaluation. It refers to how well some one is doing the assigned job.
5. Performance appraisal is continuous process in every large-scale organization.
2.4 Need for Performance Appraisal:
The following explains the need for performance appraisal in any organization.
1. Performance appraisal Provides information about the performance ranks basing on which decision regarding salary fixation, conformation, promotion, transfer, and demotions are taken.
2. It Provides feedback information about the behavior of sub-ordinate.
3. It helps in counseling employees who are deviated from the objectives.
4. It is a tool to detect the skill, knowledge of employees.
5. It also needed to prevent grievance and in disciplinary activities.
2.5 Purpose of Performance Appraisal:
Basically the performance appraisal aims at attaining the different purposes.
They are: -
❖ To create and maintain a satisfactory level of performance.
❖ To contribute to the employee growth and development through training, self and management development program.
❖ To help the supervisors to have a proper understanding about their subordinates
❖ To guide the job changes with the help to continuous ranking.
❖ To facilitate fair and equitable composition based on performance.
❖ To facilitate for testing and validating selecting tests interview technique through comparing their scores with Performance Appraisal System Ranks.
❖ To provide information for making decision regarding lay of retrenchment etc…
❖ To ensure organizational effectiveness through correcting employee for standard and improved performance, and suggesting to change employee behavior.
2.6 Who Appraises:
It is important to know the persons who are responsible for appraising. The appraiser can be any person who has thorough knowledge about the job content, contents to be appraised, standards of contents, and who observes the employee while performing the job.
➢ The Typical Appraisers are as under:
□ The supervisor
□ peers
□ subordinates
□ Employees themselves
□ consultants
□ Users of service.
➢ Contents to be appraised:
Generally, the following qualities of the person are appraised. They are:
❖ Technical skills.
❖ Integrity.
❖ Honesty.
❖ Sincerity.
❖ Judgment skills.
❖ Creativity
❖ Ability to accustom to new things area of interest.
❖ Quantity of work.
❖ Knowledge of the job.
❖ Punctuality.
❖ Good housekeeping.
❖ Intelligence.
❖ Attendance.
❖ Cooperation.
❖ Initiative.
❖ Accuracy.
Performance appraisal plays a useful role in understanding and identifying the potential of the employees. It focuses on the aspects like whether the strengths and capabilities of the employee can be developed to match the specific requirements of the jobs at higher levels. It also helps to understand which other jobs can be assigned to him. Thus, the appraisal is the analysis of the employee. It suggests as how to strengthen the strengths and overcome the weaknesses so that he can become a better asset for the organization.
Performance appraisal is an important tool applied at the time of giving salary increase to the employees. Often, the performance of an employee is so extraordinary that the organization plans to reward the employee with a special increase in salary over and above the routine increase. These employees contribute valuably to the organization and giving extra benefits make them not to leave the organization. Thus performance appraisal is an integral part of the human resource development effort.
2.7 Process of Performance Appraisal System:
The major steps in the process of performance appraisal are diagrammatically represented below.
Figure 3: Steps Involved in The process of performance appraisal
2.8 The Evaluation Process:
This process of performance appraisal follows a set pattern viz., a means performance is periodically appraised by his superiors. Questions are raised. Is his potential the greatest as a manager or as a staff specialist? What are his strengths and weakness?
The process of evaluation begins with the establishment of performance standards. At the time of design a job and formulate a job description, performance standards are usually develop for the position. Theses standards should be clear and vague and objective enough to be understood and measured.
These standards should be discussed with supervisors to find out which different factors are to be incorporated, weights and points to be indicated on the appraisal form and later on used for appraising the performance of the employee.
The next step is to communicate theses standards to the employees, for the employees left to them, would find it difficult to guess what is expected of them. To make communication effective feedback is necessary from the subordinate to the manager.
The third step is the measurement of performance. To determine what actual performance is necessary to acquire information about it. We should be concerned with how we measure and what we measure.
The fourth step is the comparison of actual performance with standards. The employee is appraised and judged of his potential for growth and advancement. Attempts are made to note deviations between standard performance and actual performance.
The next stage is the results of appraisal are discussed periodically with the employee where good points weak points and difficulties are indicated and discussed so that performance is improved. Conveying good news is considerably less difficult for both the manager and subordinate than when performance has been below expectations.
The final step is the indication of corrective action when necessary immediate corrective action can be two types. One is immediate and deals predominately with symptoms, the other basic and devices into causes. Attempts may also be made to recommend for salary increases promotions.
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Figure 4: Evaluation process
APPRAISAL METHODS
TRADITIONAL METHODS MODERN METHODS
Straight Ranking Method. Assessment Center Method
Man-To-Man Comparison Method Management by Objectives Method
Grading Method Human Asset Accounting Method
Graphic Rating Scales Method Behaviorally Anchored Rating Scales
Forced Choice Description Method.
Check Lists Method
. Free From Essay Method.
Critical Incident Method
. Group Appraisal Method
. Field Review Method.
. Figure 5: Performance appraisal methods
2.9 Methods for Appraising Performance:
As there is lot of changes tasking place as the time passes number of methods of performance appraisal have been developed. Each of them has been used for measuring the performance of employees. Strauss and Sayles categorize these methods. They divided them into:
1. Traditional Methods
2. Modern Methods
The traditional methods emphasize about the individual employees’ personality trails, here as modern methods are based on job related and results oriented characteristics oft he employees. This classification is as follows
2.10 TRADITIONAL METHODS:
➢ Straight Ranking Method.
➢ Man-To-Man Comparison Method.
➢ Grading Method.
➢ Graphic Rating Scales Method.
➢ Forced Choice Description Method.
➢ Check Lists Method.
➢ Free From Essay Method.
➢ Critical Incident Method.
➢ Group Appraisal Method.
➢ Field Review Method.
2.11 MODERN METHODS:
➢ Assessment Center Method
➢ Management By Objectives Method
➢ Human Asset Accounting Method
➢ Behaviorally Anchored Rating Scales
TRADITIONAL METHODS
Following are some of the traditional methods of performance appraisal:
❖ Graphic Rating Scales:
Graphic rating scales compare individual performance to an absolute standard. In this method, judgments about performance are recorded on a scale. This is the oldest and widely used technique. This method is also known as ‘linear rating scale’ or ‘simple rating scale’. The appraisers are supplied with printed forms one for each employee. These forms contain a number of objectives, behavior and trait-based dependability, initiative, leadership qualities, emotional stability in case of managerial personnel.
These forms contain rating of scales. Rating scales are to two types:
1. Continuous Rating Scale
2. Discontinuous Rating Scale
❖ Continuous Rating Scale:
In continuous order like 0, 1,2,3,4, and 5.
❖ Discontinuous Rating Scale:
In discontinuous scale the appraiser assigns the points to each degree.
Performance regarding each character is known by the points given by the rater. The points given by the rater to each character are added up to find out the overall performance. Employees are ranked on the basis of total points assigned to each one of them.
One reason for the popularity of the rating scales is its simplicity, which permits many employees to quickly evaluate. Such scales have relatively low design cost and high in case of administration. They can easily pinpoint significant dimensions of the job.
The major drawback to these scales is their subjectivity and low reliability. Another limitation is that the descriptive words often used in such scales may have different meanings to different raters.
❖ Straight Ranking Method:
In this method, the ranking of a man in a work group is done against that of another. The relative position of each man is tested in terms of his numerical rank as the whole man is compared to whole man. It may also be done by ranking a person on his job performance against that of another member.
❖ Paired Comparison Method:
This method is also a ranking technique in which every employee is appraised by comparing his every trait with all the other persons’ traits. The results of these comparisons are tabulated and a rank is assigned to each employee.
❖ Man-to-man Comparison Method:
In this method, certain factors are identified for the purpose of analysis based on which a scale of a man is created for each factor by the appraiser. Then each employee is compared with the man in scale and certain score for each factor are awarded for him. This method is also known as forced comparison method.
❖ Grading Method:
The later considers certain features and marks them accordingly to a scale. Certain categories of worth are first established and carefully defined as grades like A-outstanding, B very good, C-good or average, D-fair and E-poor etc. The actual performance of an employee is then compared with these grade definitions and is allotted a grade that best describes the employee’s performance.
❖ Forced Choice Description Method:
The rating elements are several sets of pair phrases or adjectives relating to job proficiency or personal qualifications. The appraisal is asked to indicate which of the given phrases are most and least descriptive of the appraised. Based on the favorable and unfavorable terms the employee is appraised.
❖ Forced Distribution Method:
The appraiser is forced to rate the performance of the employees through their factors categorized into different types of either a five point scale or a three-point scale. For example, the appraisal may distribute his employee's performance as outstanding, above average, average, below average.
❖ Checklist Method:
The rater does not evaluate employee performance. The appraiser supplies reports about the performance of appraisers and the personnel department does the final rating. A series of questions are presented concerning an employee to his behavior. The rater, then, checks to indicate if the answer to a question about an employee is positive or negative. The value of each question may be weighed equally or certain questions may be weighed more heavily than others.
❖ Free Essay Method:
The supervisor makes a free form, open-ended appraisal of an employee in his own words and puts down his impressions about the employee. The description is always as factual and concrete as possible. No attempt is made to evaluate in a quantitative manner.
❖ Group Appraisal Method:
Appraisees are rated by an appraisal group consisting of their supervisor and three or four other supervisors who have some knowledge of their performance.
❖ Field Review Method:
A trainer employee from the personnel department interviews line supervisors to evaluate their respective subordinates. The appraiser takes detailed notes of the collected information and proceeds to evaluation process.
The above listed traditional methods are easy and simple to adopt but their effectiveness is limited because a majority of the methods are based on rating the personality traits of the appraisees rather than the task related traits.
MODERN METHODS OF PERFORMANCE APPRAISAL
❖ Appraisal by Results or Management by Objectives:
Management by objectives (MBO) can be described as a “process whereby the managers and employees of an organization jointly identify its common goals, define each individuals major areas of responsibility in terms of results expected of him and use these measures as guides for operating the units and assessing the contributions of each of its members”.
The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met.
✓ Objective of MBO:
MBO has an objective in itself. The objective is to change behavior and attitudes towards getting the job done. It is a management system and philosophy that stress goals rather than methods.
✓ Basic Principles of MBO:
• Setting of organizational goals and objectives.
• Specific objective for each individual.
• Participative decision making.
• Explicit time period and performance evaluation.
❖ Assessment Center Method:
It is a stimulation method developed initially for military situations. The important feature of this method is ‘job-related stimulation’ which involves characteristics of those managers that managers feel are important to the job success. The evaluators observe and evaluate participants as they perform activities commonly found in these higher-level jobs.
❖ Human Asset Accounting Method:
It refers to activity devoted to attaching money estimates to the value of a firm's internal" human organization and its external customer goodwill. The human asset is considered to be enhanced if; a worthy employee joins the organization. If distrust and conflict prevails in organization then human assets are considered to be devalued. The current value of an organization's human assets can be appraised by developed procedures, by undertaking periodic measures of key casual and intervening enterprise variables.
❖ Behaviorally Anchored Rating Scales (BARS) Method:
This method of performance appraisal is a recently developed method. The procedure for bars is usually five stepped. The first step is generation of critical incidents by the appraisers. The next step is to develop performance dimensions, which are clusters of the critical incidents. The third step is to reallocate incidents. Scaling of the incidents usually in a 7- point or in a 9- point scale to represent effective and ineffective performance is the Fourth step. The last step in this procedure is to develop a final instrument in which a subset of incidents is used as "behavior anchors" for the performance dimensions. This system is time consuming and expensive.
❖ 360 Degrees Performance Appraisal System:
This is defined as the systematic collection and feedback of performance data on an individual or group, derived from a number of stakeholders in their performance. It is done in a systematic way via questionnaire or interviews. This formalizes people judgement coming from natural interactions. They have with each other. There is both a collection and a feedback process. Data is gathered and feedback is provided to the individuals.
This feedback system assesses managers in terms of the competence. So far 360 degrees feedback has concentrated on people who are at more senior level in organization.
Figure 6: 3600 performance appraisal
2.12 Psychological Appraisal:
Large organizations employ full time industrial psychologists. When psychologists are used for evaluations, they assess an individual's future and not past performance. The appraisal normally consists of in-depth interviews, psychological tests and discussion with the superior.
PerfECT PROCESS IN Dr. REDDY’S LABS
We believe a great supervisor is actually an excellent coach, not just a boss. Our performance management process, ‘PerfECT’, gets our managers to do just that – COACH. It is all about inspiring breakthrough thinking. It is about challenging your limits. It is about an empowering environment to get you to be at your best – ALWAYS.
What’s more, you love being respected for what you are and beating your own expectations. We help you inspire yourself!
2.13 Perfect process:
The performance appraisal at Dr. Reddy’s is called PerfECT. A perfect stand for performance enhancement and coaching Tool, this tool is applicable to the entire organization.
➢ Objective:
Perfect at Dr. Reddy’s is essentially focused towards employee development. This means that the superior has to necessarily take a predominantly developer or coach role vis-à-vis the employee. This also implies that the focus is on performance improvement growth & employee alignment with the organization strategy & values and not merely on rewards and discrimination. A performance rating is a clement but not the primary aim of the perfect process.
➢ Philosophy:
• To align people with organizational strategy and values.
• To be perceived as transparent & fair in the process.
• To be oriented to people development and, yet put the onus of development on the individual.
• To encourage team work and collaboration,
• To create a system teamwork and collaboration.
• To create a system of assessment by team rather then individuals.
• To differentiate among team members based on performance and potential.
• To raise the performance bar.
• To show intolerance to mediocrity.
The perfect form is a flexible tool to help superiors and employees with each phase of performance management performance planning (Goal setting) performance coaching,
2.14 KEY PROCESS OF PERFECT:
➢ Performance Planning / Goal setting:
The superior and the employee meet to clarify expectations from their key customers stakeholders and each other. Those inputs should be converted into performance goals to be met during the review period. The goals can be added / deleted modified with mutual consent in response to changing business priorities.
➢ Performance coaching:
At various times throughout the year, the superior and the employee should meet informally to review job performance and progress against set goals. A formal half-yearly review discussion with mutual sign off between the superior and employee would take stock of the progress made and make course corrections as and when necessary.
➢ Performance review:
The employee is required to give his/her short term and medium term career aspiration at Dr. Reddy’s based on his/her current skill and competency sets and the skill/competency required to fit into the horizontal carrier movement within and across function, which may help in long term strategic development of the employee.
The superior while reviewing the performance of the employee shall try to take feedback from as many sources of data as possible in order to arrive at a reasonably objective conclusion. The superior shall analyze goal achievement data; self development efforts and then try to take feed back from customer/supplier/project managers, as the case may be both performance and behaviors.
The superior shall note his comments about the performance of the employee and propose a rating from the following
• Exceptional contributor
• Significant contributor
• Contributor
• Partial Contributor
• Low contributor
➢ Feedback and Consequence Management:
It is likely that some employees would be disappointed when they receive the final rating. It is the jobs of the superior manage the aspirations of different levels of performers and keep them motivated. It is necessary that the superior discuss in details with the employee and explain the rationale behind the rating. The development plan needs to be chalked out for the person to take him/her up the performance curve.
DR. REDDY’S LABORATORIES LTD.
[pic]
TYPE - Public
FOUNDED - 1984
HEADQUARTERS - Hyderabad, Andhra Pradesh, India
KEY PEOPLE - Anji Reddy, Chairman GV Prasad, CEO
INDUSTRY - Pharmaceuticals
REVENUE - $1.5 Billion (MAY2007)
NET INCOME - $216 Million (MAY2007)
EMPLOYEES - 8,225
WEBSITE -
“We are committed to
Providing affordable and
Innovative medicines
For healthier lives”.e
[pic] Dr. REDDY’S OVERVIEW
COMPANY OVERVIEW
Dr. Reddy’s Laboratories Ltd. trading as Dr. Reddy's, founded in 1984 by Dr. K. Anji Reddy, has become India’s second biggest pharmaceutical company. Dr. Anji Reddy had worked in the publicly-owned Indian Drugs and Pharmaceuticals Ltd. Reddy's manufactures and markets a wide range of pharmaceuticals in India and overseas. The company has more than 190 medications ready for patients to take, 60 active pharmaceutical ingredients for drug manufacture, diagnostic kits, critical care and biotechnology products. Dr. Reddy’s began as a supplier to Indian drug manufacturers, but it soon started exporting to other less-regulated markets that had the advantage of not having to spend time and money on a manufacturing plant that that would gain approval from a drug licensing body such as the US’s Food and Drug Administration
The Company was incorporated under the laws of Indian Companies Act, 1956 as a Public Limited Liability Company.
At a time when India was largely dependent on imports, Dr.Reddys began perations with a single drug facility near Hyderabad, India. In 1986, the first consignment of Methyldopa was shipped to West Germany, launching the Company’s foray into global markets. Subsequently, Dr. Reddy’s moved up the value chain, by entering the Finished Dosage business and launching its drug discovery program.
Over the years, related diversification and acquisitions transformed Dr. Reddy’s into a leading pharmaceutical company from India. Dr.Reddy’s stated purpose is to provide affordable and innovative medicines for healthier lives.
Dr. Reddy’s today is divided into three core businesses of Pharmaceutical Services & Active Ingredients (PSAI), Generics and Innovative Products. Dr.Reddy's have a dual impact. Through PSAI and Generics business, It strive to make medicines more affordable globally and through their focus on Innovative products they address unmet or poorly met medical needs.
The PSAI business serves Innovators and the Generics manufacturing companies through drug substance and drug product development along with manufacturing services.
Dr. Reddy’s core strength in APIs (Active Pharmaceutical Ingredients) continued to increase significantly over the years with offerings of over 100 molecules to customers across the world. Today, Dr.Reddy’s ranks amongst the top three API players globally. Its CPS (Custom Pharmaceutical Services) business, which is only seven years old, serves a few big sized pharmaceutical companies and many emerging pharma companies today. The CPS business received a boost in 2005 with the acquisition of Roche’s API manufacturing unit in Mexico.
This facility possesses the niche capability of steroid API manufacture. In 2008, acquisition of the Small Molecule business of DowPharma at its Mirfield and Cambridge sites, UK, made the business stronger in its portfolio and service offerings. Today, Dr.Reddy's is the largest CPS player from India. Their CPS business has emerged as a partner of choice to innovators by providing technical expertise, world-class infrastructure and flexibility to bring their medicines to the market quickly and economically.
Dr.Reddy's Generics business works towards providing patients in key geographies with high quality generic medicines at affordable prices. The top four key markets for their generics business include India, Russia, US and Germany. Apart from these four markets, Dr. Reddy’s has its business presence in many other countries through Joint Ventures, representative offices and third party arrangements.
Increased awareness, acceptance of generics and favorable legislation, have together with the large volume of branded products losing patent protection over the coming years, led to continued expansion of the generic pharmaceuticals market. Dr. Reddy’s capitalized on this opportunity by leveraging its product development capabilities, state-of-the-art manufacturing capacities and access to its own APIs, which offer significant supply chain efficiencies.
3.1 PURPOSE
The purpose is to help people lead healthier lives. This has been the driving force behind all their action and investments since 1984. There is a constant search for solutions to significantly improve the quality of life. Their relentless focus on innovation, entrepreneurship and globalization transformed them into an illustrious discovery-based entity powered by innovative research, which are guided by their core values.
Playing a meaningful role in the society is a priority in their commitment to spreading health and happiness. They intend to see that their work with the underprivileged in the areas of education, health and poverty alleviation scales up into a major movement and achieves self-sustainability.
3.2 VISION
[pic]Dr. Reddy’s is a global pharmaceutical powerhouse committed to protecting and improving health and well being.
Their vision is to become a discover –lead, global pharmaceutical company.
They will archive the vision by building:
• Workplaces that will attract, energize and help retain the first talent available.
• An organizational culture that is relentlessly focused on the speedy translation of scientific discoveries into innovative products that make a significant difference in the people’s live .
• A global marketing organization that understands and responds needs of the customer.
3.3 MISSION
• Create a customized curriculum design to develop the professionals who will work with the medical fraternity and the people to make their life healthier.
• Canalize the efforts of specialists from the various disciples to develop knowledge, skills, and faculty among the students with appropriate value and attitudinal orientation among them so that they can establish themselves as professionals
• Carve a space for patient education in health care service sector in order to enable them to complement medical fraternity and add value to the health.
• Equip patient educators to play a vital role in enabling medical parishioners devote quality time in diagnosis and treatment of patients.
3.4 OBJECTIVES OF DR. REDDY’S LABS
• Complying with the statutory norms and regulations.
• Conducting active R&D and technology planning in new process development to minimize the advance impact on safety, health and environment.
• Using and maintaining equipment systems and facilities to provide a safe work atmosphere to all employees, visitors, contractors and neighboring community and aim towards incident and injury free facilities.
• Conserving resources and preventing pollution.
[pic]
Dr. REDDY’S VALUES
➢ Quality:
We are dedicated to achieving the highest levels of quality in everything we do to delight customers internal and external every time.
➢ Respect for the Individual:
We uphold the self-esteem and dignity of each other by creating an open culture conductive for expression of views and ideas irrespective of hierarchy.
➢ Innovation and Continuous learning:
We create an environment of innovation and learning that fosters, in each of us a desire to excel and willingness to experiment.
➢ Collaboration & teamwork:
We seek opportunities to build relationships and leverage knowledge, expertise and resources to create greater values across businesses functions and locations.
➢ Harmony and Social Responsibility:
We take utmost care to protect our natural environment and serve the communities in which we work and live.
3.5 COMPANY POLICIES
Dr. Reddy’s is a global pharmaceutical power house committed to protecting and improving health and well being.
Their strategic business units are:
• Branded finishes Dosage
• Generic Finished Dosage
• Bulk Active
• Custom chemical
• Biotechnology
• Critical care
• Discovery Research
Critical care
Launched in 1998, Dr Reddy’s Critical Division (CCD) caters to Specialty segments like Oncology. It strives to create a strong base for a sustainable long-term competitive advantage.
In a short span of four years, the division has achieved a leading position in the oncology segment. The accelerated growth comes from its ability to face challenges and achieve a paradigm shift. CCD has set new standards through innovative product presentations focused customer approach and customized patient service.
Safety, Health and Environment
Safety, Health and Environment are the three magic words that ensure hope, health and happiness. They believe that maintaining the ecological balance is as important as their business. Their motto is creating more with less and, in keeping with it, they have taken major steps to develop sustainable use of resources and conserve the environment.
Child and police (CAP) Project:
In associations with the Andhra Pradesh state police as an innovative public private partnership to demonstrate a model to address the learning of children at risk.
A program from the CAP project platform, attempts to connect learning and livelihoods in a model that addresses critical issues affecting the quality of life and future of adolescent who opt of school as well as potential dropouts among school going adolescents in the 13-17 yrs age group.
The sustainability of this micro level project has been demonstrated by the initiatives that have affected policy across stakeholders. The program has gone beyond the ream of merely addressing access in educations and now includes school community competency development for quality education for children as part of the CAP-SCORE (school community partnerships in educations) project. The project has succeeded in directly mobilizing and mainstreaming 5970 children at risk – putting them through bridge school and successfully mainstreaming them into formal government school. In addition, it is now affecting over 20,000 children in 100 government schools and 150 slum communities of Hyderabad and urban Ranga Reddy districts through its school improvement initiatives.
The foundation considers it imperative that in having catalyzed a community-based model, the CAP-SCOPE program is mainstreamed with the bureaucracy for the program to be sustainable and replicable in the long run. As per this design, the project is now in its sixth years, an independent organization with its own board and governing council members with Dr. Reddy’s Foundation continuing to play a mentoring and supportive role.
Employee Events
Dr. Reddy’s organizes events to encourage holistic employee development. These events range from our three-month long annul sports and cultural fest. Celebrations” to occasion-led mini celebrations. They also have clubs to encourage employee interest in music, sports and adventure sports, among others.
House Magazine-Elixir
Elixir, their house magazine, was conceived to connect employees across locations and knit them into the Dr. Reddy’s family. It is also a forum for employees to hare news, views and analysis.
Employee Development
A motivated employee is a creative one. With this in mind, Dr .Reddy’s invests significant resources in employee development and in providing a constructive work environment, which is a key for enhancing employee contribution.
➢ LDP-The Leadership Development Programme
The leadership development programme (LOP) is a part of Dr. Reddy’s talent management programme. The company’s top 50 executives are part of this process, which involves workshops on company strategy and values, 360-degree feedback and development of skills. Every individual in the leadership group prepares his/her individual Development plan (IDP), which is discussed with the CEO and the COO. Based on the IDP, structured development programme also includes formal methods of assessing leadership competencies and providing career growth for senior executives.
➢ MDP – Management Development Programme
The management Development programme (MD/p0) is also part of the talent management initiative. An annual programme, it helps identify leaders.MDP creates a pool of talented employees who are high performers in their present position and also have the potential to handle challenges and greater responsibility. MOP creates a carrier path for promising executives by offering options for growth and development, besides opportunities for moving up the corporate ladder.
➢ Ankur – The Learning Center
Dr. Reddy’s is a learning organization. Ankur, Hindi for sprout, is our center for learning. Ankur symbolizes growth with transformation and is representative of the human potential for development.
Ankur envisions enabling Dr. Reddy’s to initialize the learning culture. And ensures that the learning process gathers speed throughout the company. Its activities are overseen by a supervisory board consisting of SBU heads and are led by a director.
➢ Ankur’s Mission:
• To provide a space for employees to study and reflect.
• To provide resources for intellectual stimulation.
• To enable an individual to grow as a person.
• To provide learning resources for self-development.
[pic]
[pic]
3.6 FOCUS ON EMPLOYEES
Our approach to Human Resource management is centered on our core values of individual respect, collaboration & teamwork, quality, innovation & continuous learning, and harmony & social responsibility. Anchoring the value system is the ideal of “excellence” at the pinnacle and “truth, integrity and transparency” at the base. With these values informing our people practices and policies, we have created a challenging, performance-oriented work environment where openness, fairness and collaboration bring out the best in our people and encourage continuous learning and personal growth. The key dimensions of our organizational culture are:
● Customer focused and performance-driven, where customers (external and internal) are accorded the highest priority and where everyone is sensitive to commitments, time and cost, and focus on delivering innovative affordable medicines globally.
● Entrepreneurial and innovative, where genuine mistakes are tolerated, intelligent risk-taking is encouraged and employee-empowerment practices are implemented.
● Egalitarian and trusting mindset, where rank and status consciousness are disdained, leadership walks the talk, where credibility and trustworthiness are championed and leaders provide access to people, resources and information.
●Flexible and adaptive, where change is welcome and initiatives implemented with sincerity and commitment, diversity understood and accepted, and mutual respect for diversity and various cultures coexist.
Dr. Reddy's efforts to recruit, develop and retain the best global talent across our organization have been greatly enhanced by their people-centric policies and practices, with the result that they have grown their workforce from 5,700 to 9,500 in the last five years. They have improved gender diversity from 2% in 2003 (our first year of sustainability reporting) to more than 8% today.
A significant preoccupation for Dr. Reddy’s currently is leadership development, which will drive growth and ensure a viable succession plan for the future. This means improving leadership behavior across the organization and giving high performing individuals the skills and opportunities they need to lead. The new Leadership Academy at Dr. Reddy’s will play an important role in these efforts.
➢ Recruitment
Dr. Reddy’s estimates of its annual manpower requirement flow from its Business Planning Process and its five-year strategic plan. The company uses a variety of means to recruit employees, including referrals, internal job postings, external consultants, industry and academic events, job fairs, newspaper advertisements, job portals, its web site, walk-ins, and campus, internship, and alumni programs.
Its referral program accounts for 26 percent of recruits and offers employees bonuses of at least $3000 for successful placement of recruits. As well as hosting thirty interns from college campuses each year, Dr. Reddy’s has a project-internship program, through which it gives business-relevant short-term projects to students. The majority of its recruits (83 percent) have industry experience. PhDs and technical candidates are required to make presentations in specific areas to a panel of interviewers. Psychometric evaluations are often used to assess candidates at the senior level.
➢ Training & development
Since the bulk of the company’s new employees already have extensive industry experience, induction is staggered over time as new recruits join. Induction facility visits, relevant training, and a meeting with the CEO and other senior executives.
After the induction program, management graduates complete a cross-functional project that they present to senior managers before taking on new assignments.
New employees are assigned a buddy for three months to help them integrate into the company. As well as through feedback solicited from new recruits following the induction program, employee first impressions and expectations are assessed through team poster presentations. The satisfaction of new recruits is gauged through feedback from buddies after 30 days, employee feedback after 60 days, and a discussion with both buddies and employees after 90 days.
Dr. Reddy’s has a dedicated learning center that runs various technical and soft-skill training modules for employees as well as extracurricular courses for employees and family members. It monitors training effectiveness through employee debriefs with managers, manager feedback, and skill assessments after a specified period. In addition to formal training, extensive coaching, and on-the-job training, the company uses informal experience sharing, computer-based training, and self-learning.
➢ Performance management
Employees are required to set functional, project, and development goals through discussions with managers. 360-degree performance reviews are conducted bi-annually, are based on a Balance Scorecard approach, and emphasize team as well as individual performance. Year-end performance reviews include employee self-appraisals and assessment of developmental needs as well as assessment by supervisors.
A committee reviews each employee’s performance ratings, and employees are required to agree or file a grievance regarding their performance ratings. Performance reviews are tied to training and development, succession planning, leadership development, promotion, and compensation.
Compensation levels are determined through biannual benchmarking studies. In addition to monetary rewards, Dr. Reddy’s recognizes individual and team performance as well as team and organizational service through a variety of awards celebrated annually.
➢ Managerial development
Dr. Reddy’s adheres to a promote-from-within policy, and employees are given preference in filling any vacant positions. A talent-management board identifies potential successors for critical positions in all business units. High-potential employees, identified through the company’s performance- management system, are gauged on nine leadership skills.
Employees participate in a career-design workshop that includes a variety of self-assessment tools such as psychometric tests and exercises. High-potential ones are groomed for leadership positions through in-house training programs, approved external programs, coaching, career counseling, meetings with those two organizational levels higher, job rotations and enrichment, and training.
➢ Employee engagement & retention
The human-resource function has two groups that work on organization-wide initiatives and another that works directly with each of the business groups. Dr. Reddy’s uses extensive structured coaching to encourage continual dialogue between managers and employees to enhance employee engagement. As well, the company has a formal system in which senior managers mentor employees and job mentors serve as mentors in plants.
Other communication channels include a corporate intranet, sessions with senior management, meetings with HR representatives, and newsletters. It also conducts an annual organizational-climate survey and solicits employee suggestions through opinion surveys, focus groups, an intranet, suggestion boxes, manager open-house sessions and town-hall meetings. The company offers tuition reimbursement, hosts a day-care center, offers a variety of preventive-medicine programs, and holds employee and family events.
➢ Management – employee communication
In Dr. Reddy’s employees can directly dialogue with senior management through:
• An open forum where employees get an audience with the global chief of HR and other senior HR members.
• Employees can skip a level and report problems to those above the immediate superior.
• Employees can post views or start discussions on the CEO’s blog on the intranet.
• In addition to above, Dr. Reddy’s employees have access to a variety of online and print communications.
3.7 HR PHILOSOPHY
Dr Reddy’s work place attracts, energizes and retains the finest talent they:
• Continuously strive towards working with a multifaceted and talented workforce that will bring different perspectives to the table.
• Provide an even-handed opportunity for individual development and advancement based on merit.
• Attract, Develop and retain versatile achievers. Regardless of their nationality, and provide them with the resources to bring out the best in them.
• Involve employees and their families in developing a network of talented people for creative work and a long-term relationship.
• Build an organization that is continuously learning and changing to suit the dynamic business environment.
• Develop and nurture leaders who shall bring out the best in themselves and their teams.
• Promotes the spirit if team work in the work place innovation IS a process that needs the contribution of many.
3.8 HR POLICY
• Always select employees who are the best of available candidates.
• Observe legal/moral obligation.
• Not opposed to union! Association of employees would welcome discussions with then employees’ representations.
• Active participation in professional association.
• Pay competitive remuneration at all aspects, in all aspects.
• Maintain high standard of discipline.
• Encourage employee welfare and support cultural activities.
• Publish in house journal to publicize employee’s professional and personal achievements.
• Encourage free journal to publicize employee’s professional and personal achievements.
• Encourage free flow of idea and suggestions all round so that employees can give his best in a free and democratic atmosphere.
• Given opportunity for self-development by
A) Encouraging participative management
B) Providing
• Internal training courses
• External training courses
• Participating in seminars
[pic]
Figure 7: HR policy in Dr.Reddy’s
| [pic] | |
| | |
| |Dr. ANJI REDDY |
| |(Chairman) |
| | |
|G.V.PRASAD |[pic] |
|(Executive vice chairman and chief executive officer) | |
| | |
|[pic] |SATISH REDDY |
| |(Managing Director &Chief Operating Officer) |
| | |
| |[pic] |
|DR.OMKARGOSWAMI | |
| | |
| [pic] | |
| | |
| |RAVI BHOOTHALINGAM |
| | |
| |[pic] |
|DR. BRUCE LA CARTER | |
| [pic] | |
| | |
| |ANUPAM PURI |
Table 1: Whole time directors and non-whole time directors
3.9 COMMITTEES OF THE BOARD
Committees appointed by the Board focus on specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations to the Board on matters in their areas or purview. All decisions and recommendations of the committees are placed before the Board for information or for approval.
We have six Board-level Committees, namely
• The Audit Committee
• The Compensation Committee
• The Governance Committee
• The Shareholders' Grievance Committee
• The Investment Committee
• The Management Committee
The members of the Committees of Board are as under:
➢ Audit Committee
Dr. Omkar Goswami (Chairman)
Kalpana Morparia
Ravi Bhoothalingam
➢ Management Committee
Satish Reddy (Chairman)
G.V.Prasad
Ravi Bhoothalingam
➢ Compensation Committee
Ravi Bhoothalingam (Chairman)
Kalpana Morparia
Dr. JP Moreau
➢ Investment Committee
G.V.Prasad (Chairman)
Ravi Bhoothalingam
Satish Reddy
➢ Governance Committee
Anupam Puri (Chairman)
Dr. Omkar Goswami
➢ Shareholders' Grievance Committee
Ravi Bhoothalingam (Chairman)
G.V.Prasad
Satish Reddy
3.10 MANAGEMENT TEAM
The Management Council is the top tier of our company's management structure. The management of Dr. Reddy's has developed and implemented policies, procedures and practices that attempt to translate our company's vision, mission and purpose into reality. The management also identifies, measures, monitors and controls the risks factors in the business and ensures safe, sound and efficient operation. The Management Council meets every quarter under the chairmanship of the CEO.
|Top Brands & Products |
|GERMANY |INDIA |RUSSIA |NORTH AMERICA (Products) |
|SIMVAS |NISE |OMEZ |Sumatriptan AG |
|ALENDR |OMEZ |CIPROLET |Fexofenadine |
|OMEPRA |STAMLO |NISE |Glimepiride |
|OXYCOD |STAMLO BETA |ENAM |Oxaprozin |
|TRAMAD |ATOCOR |KETOROL |Ondansetron |
|RAMHCT |OMEZ-D |EXIFINE |Meprobamate |
|IBUPRO |RAZO |CETRINE |Divalproex Spr. Capsules |
|GABAPE |ENAM | |Simvastatin |
|RAMIPR |MINTOP | |Finasteride |
|BISOPR |CLAMP | |Ciprofloxacin |
| | | |Tizanadine |
Table 2: Dr. Reddy’s Top brands and products of different countries
3.11 DR.REDDY'S RANKED AMONG BEST EMPLOYEERS IN INDIA
Dr. Reddy's has been ranked 13 among the 25 Best Employers in India and it is the only Indian Pharma Company among the top 25. This was announced in the "Best Employers in India 2002" survey conducted by Hewitt Associates, a global management consulting firm, in conjunction with Business Today, one of India's leading business magazines.
The selection was based on in-depth questionnaires completed by CEOs, HR departments and employees of participant organizations followed by an in-depth audit. The Best Employers were distinguished on the following criteria, among others:
• Degree of employee satisfaction, commitment, and morale
• Depth, breadth, and prevalence of HR practices
• Uniqueness of HR practices
• Effectiveness of HR practices in meeting employee needs
• Alignment of HR practices to business context
3.12 DR. REDDY’S CULTURE
• Customer focused and performance driven where both external and internal customers are accorded the highest priority and where everyone is sensitive to commitments, time & cost and focuses on delivering innovative, affordable medicines globally.
• Entrepreneurial and innovative where genuine mistake are tolerated, intelligent risk raking is encouraged and people feel a sense of empowerment.
• Egalitarian and trusting where rank and status consciousness is low: leadership walks the walk where credibility & trustworthiness are championed and leaders provide access to people, resources and information.
• Flexible and Adaptive where change is welcome and initiatives are implemented with sincerity and commitment diversity is understood and accepted and mutual respect for diversity and various ethnic cultures coexist.
RESEARCH AND METHODOLOGY
This deals with analyzing the data collected in Dr. Reddy’s Laboratories Ltd through questionnaire. This questionnaire is present to the employees working in Dr. Reddy’s Laboratories Limited.
The sample comprises of 50 members belonging to UNIT III of Dr. Reddy’s Laboratories Limited. The percentage is presented in below (pie) charts.
SAMPLE QUESTIONNAIRE
Employee Name:
Designation:
Please tick the appropriate block for the following questions:
| | | | | | |
| |To a large |To a certain |To a little |To a less | |
|Questions |extent |extent |extent |extent |Not at all |
|According to department norms, I have sorted out my | | | | | |
|routine activities for my better performance. | | | | | |
| | | | | | |
|Giving feedback is the best way to Improve performance. | | | | | |
| | | | | | |
|Are you satisfied with the present appraisal system? | | | | | |
| | | | | | |
|Do you have the liberty of self-appraisal? | | | | | |
| | | | | | |
|Compensation decision provides inputs to system of | | | | | |
|rewards. | | | | | |
|I regularly review my achievement in the current performance | | | | | |
|with a preset standard. | | | | | |
| | | | | | |
| |To a large |To a certain |To a little |To a less |Not at all |
|Questions |extent |extent |extent |extent | |
|Proper maintenance and arrangement of the records improve the | | | | | |
|presentation of my performance. | | | | | |
|Is a feedback channel practiced in your organization after the given | | | | | |
|task is completed? | | | | | |
|Are different types of training programs conducted at your work place | | | | | |
|on the basis of performance? | | | | | |
|Is career growth plan discussed in the performance appraisal process | | | | | |
|with every employee? | | | | | |
|A regular review of my performance will allow me to take early | | | | | |
|corrective action. | | | | | |
|A clear definition of my goals will enable me to improve my | | | | | |
|performance. | | | | | |
|I constantly improve myself by attending various sessions related to | | | | | |
|my area of interest. | | | | | |
|My performance related to the job has been changed largely over the | | | | | |
|last 3 years. | | | | | |
|Promotion decisions can serve as a useful basis for job change or | | | | | |
|enhancement. | | | | | |
Thanks for your cooperation
ANALYSIS
1. According to department norms, I have sorted out my routine activities for my better performance.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |25 |50 |
|Certain extent |10 |20 |
|Little extent |10 |20 |
|Less extent |5 |10 |
|Not at all |0 |0 |
|Total | 50 |100 |
[pic]
Interpretation: From the above table, it is observed that 50%of the employees have sorted their routine activities for better performance to a large extent, 20% certain extent, 20% little extent and other 10% less extent.
2. Giving feedback is the best way to improve performance.
| | | |
|Characteristics |No. of respondents |% of respondents |
| large extent |50 |100 |
| Certain extent |0 |0 |
|Little extent |0 |0 |
|Less extent |0 |0 |
|Not at all |0 |0 |
|Total |50 |100 |
[pic]
Interpretation: From the above table, it is observed that 100%of the employees said that giving feedback is the best way to improve the performance.
3. Are you satisfied with the present appraisal system?
| | | |
|Characteristics |No. of respondents |% of respondents |
| large extent |3 | 6 |
| Certain extent |15 |30 |
|Little extent |8 |16 |
|Less extent |16 |32 |
|Not at all |8 |16 |
|Total |50 |100 |
[pic]Interpretation: From the above table, it is observed that 6% of the employees are satisfied with the present appraisal system to a large extent, 30% of the employees are satisfied to a certain extent, 16% to a little extent, 32% less extent,16% are not all satisfied with the present appraisal system.
4. Do you have the liberty of self-appraisal?
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |2 |4 |
|Certain extent |10 |20 |
|Little extent |5 |10 |
|Less extent |0 |0 |
|Not at all |33 |66 |
|Total |50 |100 |
[pic]
Interpretation: From the above table, it is observed that 4% of the respondents said that they have a liberty of self-appraisal to a large extent,20% to a certain extent,10% to a little extent, 66% majority of the respondents said that they do not have the liberty of self-appraisal.
5. Compensation decision provides inputs to system of rewards.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |16 |32 |
|Certain extent |24 |48 |
|Little extent |5 |10 |
|Less extent |5 |10 |
|Not at all |0 |0 |
|Total |50 |100 |
[pic]
Interpretation: from the above table, it is observed that 32% of the respondents said that compensation decision will provide inputs to the system of rewards to a large extent, 48% respondents to a certain extent,10% little extent,10% less extent.
6. I regularly review my achievement in the current performance with a preset standard.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |22 |44 |
|Certain extent |18 |36 |
|Little extent |10 |20 |
|Less extent |0 |0 |
|Not at all |0 |0 |
|Total |50 |100 |
[pic]
Interpretation: From the above table, it is observed that 44% of the respondents said that they review their achievement in present performance with preset standard, 36% to certain extent and 20% little extent.
7. Proper maintenance and arrangement of the records improve the presentation of my performance.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |7 |14 |
|Certain extent |21 |42 |
|Little extent |20 |40 |
|Less extent |2 |4 |
|Not at all |0 |0 |
|Total |50 |100 |
[pic]
Interpretation: From the above table, it is observed that 14% of the respondents said that the performance can be improved by maintaining and arranging the records properly,42% said to a certain extent performance can be improved,40% to a little extent and 4% to a less extent.
8. Is a feedback channel practiced in your organization after the given task is completed?
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |38 |76 |
|Certain extent |12 |24 |
|Little extent |0 |0 |
|Less extent |0 |0 |
|Not at all |0 |0 |
|Total |50 |100 |
[pic]
Interpretation: From the above table, it is observed that 76% of the respondents said that feed back channel is practiced in their organization after the given task is completed to a large extent and 24% said that to a certain extent feedback channel is practiced.
9. Are different types of training programs conducted at your work place on the basis of performance?
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |7 |14 |
|Certain extent |24 |48 |
|Little extent |13 |26 |
|Less extent |3 |6 |
|Not at all |3 |6 |
|Total |50 |100 |
[pic]
Interpretation: From the above table, it is observed that 13% of the respondents said that different types of training programs are conducted on the basis of performance to a large extent, 47% of respondents said to a certain extent they are conducted, 28% to a little extent, 6% less extent and 6%said that no training programs are being conducted on the basis of performance.
10. Is career growth plan discussed in the performance appraisal process with every employee?
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |7 |14 |
|Certain extent |12 |24 |
|Little extent |3 |6 |
|Less extent |23 |46 |
|Not at all |5 |10 |
|Total |50 |100 |
[pic]
Interpretation: From the above table, it is observed that 14% of the respondents said that career growth plan is discussed with them in the appraisal process to a large extent, 24% said to a certain extent,6% little extent, 46% to a little extent and 10% respondents said that career growth plan is not at all discussed in appraisal process.
11. A regular review of my performance will allow me to take early corrective action.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |45 |90 |
|Certain extent |5 |10 |
|Little extent |0 |0 |
|Less extent |0 |0 |
|Not at all |0 |0 |
|Total |50 |100 |
[pic]
Interpretation: From the above table, it is observed that 90% majority of the respondents said that regular review of their performance will allow them to take early corrective action to a large extent and 10% respondents said to a certain extent.
12. A clear definition of my goals will enable me to improve my performance.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |15 |30 |
|Certain extent |15 |30 |
|Little extent |15 |30 |
|Less extent |0 |0 |
|Not at all |5 |10 |
|Total |0 |100 |
[pic]
Interpretation: From the above table, it is observed that 30% of the respondents said that clear definition of the goals will allow them to improve the performance to a large extent, 30% to a certain extent, 30% to a little extent and 10% said that clear definition of goals will not allow to improve the performance.
13. I constantly improve myself by attending various sessions related to my area of interest.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |12 |24 |
|Certain extent |12 |24 |
|Little extent |8 |16 |
|Less extent |0 |0 |
|Not at all |18 |36 |
|Total |30 |100 |
[pic]Interpretation: From the above table, it is observed that 24% of the respondents said that by attending various sessions related to their area of interest one can be improved to a large extent, 24% said to certain extent they can be improved, 16% to a little extent and 36% said that one cannot be improved at all by attending various sessions related to their of interest.
14. My performance related to the job has been changed largely over the last 3 years.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |40 |80 |
|Certain extent |10 |20 |
|Little extent |0 |0 |
|Less extent |0 |0 |
|Not at all |0 |0 |
|Total |30 |100 |
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Interpretation: From the above table, it is observed that 80% of the respondents said that their performance has been changed largely from the past 3 years to a large extent and 20% of the respondents said that their performance has been improved to a certain extent from the past 3 years.
15. Promotion decisions can serve as a useful basis for job change or enhancement.
| | | |
|Characteristics |No. of respondents |% of respondents |
|large extent |7 |14 |
|Certain extent |17 |34 |
|Little extent |0 |0 |
|Less extent |10 |20 |
|Not at all |16 |32 |
|Total |50 |100 |
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Interpretation: From the above table, it is observed that 14% of the respondents said that promotion decision can serve as a useful basis for improvement to a large extent33% to a certain extent, 20% less extent and 33% of the respondents said that promotion decision cannot serve as a basis for improvement at all.
CONCLUSIONS
Having done a work on performance appraisal at Dr. Reddy’s Laboratories Limited, the following conclusions are drawn. These are done after observing the appraisal at the organization.
➢ One could say that the organization has been motivating their employees to work more by appraising their performance.
➢ As the feedback from the employees reveal that performance appraisal system is helpful in achieving the goals and objectives of the organization.
➢ The organization follows seniority, merit cum seniority for promotions.
➢ The study reveals that there is significant improvement in the performance of the employees’ after appraisal.
➢ The respondents are satisfied with the existing performance appraisal system.
➢ The respondents prefer to set their own targets in order to improve their performance in line with those of company targets.
➢ The performance appraisal system gives importance in the identification and definition of training and development requirements.
➢ The performance is appraised based on the out come of the employee.
➢ The relation between superiors and subordinates is improved through performance appraisal system.
➢ Multi-dimensional skills are improved though performance appraisal.
➢ Appraisal system helps to create competitive environment at the work place.
SUGGESTIONS
Though the performance appraisal system is helping the employees in Dr. Reddy’s Laboratories Limited, it could be made better by following the suggestions given below:
1. In order to maintain healthy relationship between employees and management, the later should held regular discussions with their subordinates.
2. The management should also take proper care in handling dissatisfied employees, because they may create problems in the organization.
3. The management should help the employees to over come the stress and strain at their work place.
4. A competitive environment at the work place should be maintained.
5. The management should also encourage the efforts and suggestions from employees.
6. The employees should inculcate in themselves a feeling of family in the organization.
7. The organization should implement modern methods of performance appraisal such as performance management system (PMS).
CASE STUDY
A Sweet Employee Performance Appraisal System for
Jelly Belly
Candy making is a fun business, and so it's no surprise that it's fun to work at the Jelly Belly Candy Company of Fairfield, California. But at this family-owned company, there's no fooling around when it comes to promoting employee performance and job satisfaction. So when Jelly Belly decided to overhaul and automate its antiquated employee performance and talent management process, it was looking for a serious solution to help give its employees across the United States fair, accurate performance appraisals.
The Jelly Belly Candy Company makes Jelly Belly brand jelly beans in over 50 flavors, as well as candy corn and other treats. Introduced in 1976 and named by former U.S. president Ronald Reagan as his favorite candy, the company's jelly beans are exported worldwide. Herman Goelitz Candy was founded in 1869 by Albert and Gustav Goelitz, whose great-grandsons own and run Jelly Belly today.
Like almost every smart company, Jelly Belly recognizes that employees are more likely to stay with their employer when they feel connected and recognized for their efforts. Evaluation and performance management programs are critical to aligning corporate and employee values and priorities.
8.1 Challenge
Jelly Belly's search for a new employee performance and talent management system began several years ago, when two branches of the family business were reunited into a single company. One branch was using an outdated EPM software program. The other was doing its employee performance appraisals manually, using paper forms.
Having a variety of jelly bean flavors is great - a variety of employee appraisal processes in a single company is not. The task of updating and consolidating the performance management process fell to Margie Poulos, HR Manager of Jelly Belly's Midwest operations. She and a small team of Jelly Belly HR staff were charged with finding a single automated system that could be used for all of Jelly Belly's 600 employees in three locations.
The driving factor behind Jelly Belly's performance management automation was the belief that thorough, accurate reviews help employees to better understand what's expected of them, so that they can set clear, measurable objectives. That translates into higher employee satisfaction, said Jeff Brown, Jelly Belly's Director of Human Resources. "When employees feel they have gotten a thorough and accurate review, it boosts their morale," Brown said. It also leads to improved talent management and employee retention, which management experts know is a key factor in corporate growth and market leadership.
8.2 Solution
To meet their strategic goals, Poulos and her team drew up a list of the criteria that a new system had to meet. Top on the list was ease of use. "We didn't want to end up with a system that is so complicated that the managers wouldn't use it," Poulos said. A new system also had to save time. Because employees were in multiple locations, it needed to be web-based for accessibility. And it had to be flexible, easily incorporating core competencies into different forms.
Jelly Belly's selection committee looked at products from different software vendors. "We eliminated right away those that were geared to very large companies and those that were not web-based," Poulos said. "We also eliminated those that offered too many options for customization. It's one thing to offer options, but another thing when the product requires so much customization that it becomes overwhelming."
The committee selected Halogen eeAppraisal™, a web-based employee performance and talent management application from Halogen Software. "We liked the way it looked, and we really liked the user-friendliness of it. It's easy for the managers to use and it's customizable without overwhelming them," Poulos said. After two days of training by Halogen staff, four members of Jelly Belly's HR team set out to train the company's supervisors on the new system. About 50 managers received a crash course in using Halogen eAppraisal, and then used it to complete annual employee evaluations in May. Jelly Belly's HR team is now customizing the software to include more relevant competencies and to respond to comments from managers and staff on the new system.
"The feedback has been really positive, from both managers and employees as well. Some staff said this was the best appraisal they've had," Poulos said, "They felt the evaluations were fair and realistic, and supervisors had the scope to provide more relevant and legitimate comments than they could before. Rather than just clicking on a bunch of canned comments, they were accurately reviewing the employee."
8.3 Results
The new automated employee performance appraisal system has completely formalized and organized Jelly Belly's employee evaluation process. "It allows us to standardize competencies across job classifications, add signature and comment sections to make our process more interactive, and increase accessibility for remote managers," Brown said.
Under Jelly Belly's old system, employees conducting reviews started from scratch once a year with new performance journals. Halogen Appraisal will let them log notes throughout the year and regularly update their on-line appraisals. Employees use one consistent employee evaluation form to add comments and to sign their appraisals.
The web-based product helps remote and traveling managers maintain access to the forms and the data they need to evaluate their staff. "In our old system, a few folks in Chicago would have access to the system. But we have managers in California with Chicago subordinates. It's important that they can share the same forms across the board. And we have folks who are on the road a lot or are working out of home offices, so having them be able to access this is a huge point for us," Brown explained.
Organizing and automating the appraisal process results in performance appraisals that are more accurate and fair, Brown noted. "This is important `because, after all, an employee appraisal is a legal document," he said.
The new system is also helping Jelly Belly track training requirements and development in its staff, Poulos added. "We've always had a separate training manual. Now we can go in to the evaluations and more easily monitor employees' skills development, see what training is needed by individuals and check the due dates for training and renewal. That makes it much easier for us to keep track," Poulos noted.
The new employee performance and talent management system has proven to be a big time-saver for Jelly Belly's HR team. "Since this year was the first time using the new system, it took us a little longer than it will next year. But the process was a whole lot faster," Poulos said. "It has already saved us a lot of time, and we got everybody's appraisals done in one shot." The new system is also helping Jelly Belly to better align employee goals with the company's business objectives. And for one of America's best-known candy companies, it doesn't get any sweeter than that.
ARTICLE
CREATE A GOOD IMPRESSION IN YOUR NEW JOB!
Congratulations! You've just been appointed to your new job. Now the real work begins.
• It is important from the beginning to convince your new employers that, in selecting you, they have made the right choice.
• Demonstrate that you are highly-motivated and eager to get started.
• Discuss your duties and responsibilities; and establish your priorities. Set challenging, but achievable, short-term and long-term goals.
• To enable you to fit in quickly, find out as much you can about your company and its organizational structure.
• Identify the most successful and highly valued people in the firm and analyze the reasons for their success. Use them as your role models. Associate with colleagues who are perceived as ideal employees.
• Prepare carefully for meetings with your boss. Try to anticipate questions and be ready with positive and considered responses. Make sure you are always well-informed. Keep up to date on current issues.
• Learn all you can about problem-solving techniques. When you are given a problem to solve, tackle it enthusiastically and systematically.
• Establish a reputation as a good team player by developing good working relationships and cultivating friendships with as wide a range of people in the company as possible.
• Participate fully in your company's training programme and avail of all opportunities to extend your knowledge and develop work-related skills.
• Learn from your own mistakes and the mistakes of others.
• Do more than is specified in your contract. Volunteer for assignments that will help raise your profile within the company.
• Complete all work on time. Don't make promises unless you are sure you can deliver.
• Develop a reputation for honesty, loyalty and integrity.
• Since your job description will form the basis of your performance appraisal, it is important to review it regularly.
REFERENCES
Books
1. Agarwal R.D. Dynamics of Personnel Management in India, Tata McGraw Hill Publishing Company, New Delhi (1977).
2. Aswathappa, Human Resource Management, Tata McGraw-Hill Publishers Company, New Delhi, (2008).
3. Aquinas P.G., Human Resource Management, Vikas Publishing House Pvt Ltd, New Delhi (2005).
4. Biswajeet Pattanayak, Human Resource Management, Prentice Hall Of India, New Delhi, (2006).
5. C.B. Memoria and S.V. Gankar, Personnel Management, Himalaya publishing house, Hyderabad, (2007).
6. Edwin B. Flippo, Personnel Management, McGraw-Hill Book Company, New York, (1976).
7. Michael V.P., Human Resource Management and Human Relations, Himalaya Publishing House, Mumbai (1995).
8. Subba Rao, Industrial Relations and Personal Management, Himalaya publishing house, Hyderabad, (2007).
9. Terry G.R Principles of Management Richard D Irwin Homewood (1970).
Websites:
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If necessary, initiate corrective action
Discuss the appraisal with employees
Compare actual performance with standards
Measure actual Performance
Communicate performance expectations to employees
Establish performance standards
CUSTOMERS
TEAM MEMBERS
FEEDBACK
BOSS
PEERS
SELF
STAFF
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