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PROJECT REPORT
ON
STUDY OF PERFORMANCE APPRAISAL PROCESSAS PRACTICED IN GLAXOSMITHKLINE
PHARMACEUTICALS LIMITED
AT
GLAXOSMITHKLINE PHARMACEUTICALS LIMITED,
NASHIK
BY
Mr. SONAL S. KHAJEKAR
IN THE PARTIAL FULFILMENT OF THE COURCE
MBA [BIOTECHNOLOGY]
MITCON INSTITUTE OF MANAGEMENT
BALEWADI , PUNE 411045.
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2006-2007
EXECUTIVE SUMMARY
This project work is based on PERFORMANCE APPRAISAL, which is one of the
most important and difficult managerial activities. It can be said that it is the process of
assessing Qualitative & Quantitative aspects of an employees job performance.
PERFORMANCE APPRAISAL serves as work planning and review function. The
appraisal and subsequent-subordinate review provide an opportunity to review
subordinates progress, provide person with feedback, and map out a plan for rectifyingperformance deficiencies that might be identified. So PERFORMANCE APPRAISAL
process for managers in GSK was taken as topic of project.
The subject matter of this project has been adopted by using a questionnaire based on
which different points in this project were discussed & analyzed. Apart from this, to get
the complete understanding & coverage of the topic different books & websites were
referred. However, while adopting the relevant subject matter, the emphasis has been, on
the study of Performance Appraisal process of the organization.
The subject matter, observations, findings, & suggestions are supported by examples,
figures, & tables wherever required. A systematic representation of the subject matter has
been done in the following manner.
Chapter 1- Presents the background of the topic.
Chapter 2- Deals with the objective of the project topic.
Chapter 3 Named as Review of literature gives detailed introduction of the topic
Performance Appraisal & this chapter is also focus on the MBO-method used by GSK,
Objective setting process of GSK.
Chapter 4- Mentions the methodology of the research & gives the brief description of the
project matter.
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Chapter 5- Discusses the data presentation & analysis on the basis of the questionnaire.
Chapter 6- Gives the findings (i.e. conclusions) of the points mentioned in the data
presentation & analysis & the last chapter i.e.
Chapter 7- Gives suggestion about the findings.
The last part of the project report contains Annexure & Bibliography.
Thus, a sincere effort has been made to complete this project.
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AKNOWLEDGEMENT
It gives me immense pleasure to place on record my deep feelings of reverence andgratitude to Mr.V.R.Patil, Senior HR-Manager of GlaxoSmithKline, Nashik for
giving me this opportunity to carry out my summer project in this esteemed organization.
I also thank my external guide Mr. A.K.Lal, Asst. HR-Manager of
GlaxoSmithKline, Nashik, for his untiring devotion, noble guidance, valuable
suggestions and above all continuous encouragement, which has played an important role
in the completion of this project.
It is my earnest endeavor to express sincere thanks to Prof. Sanju Devis (Dean),
Prof. Santosh Mahajan (Registrar) & Dr.V.Vedak (Director) of Mitcon Institute of
Management (MIMA), other faculty members and staff members of MIMA for their
kind co-operation which made me worthy of being able to pursue such a challenging
project and complete it successfully.
I am highly indebted to my internal guide, Prof. Chandrima Roy & Co-guide,
Prof. Sudhakar Kanoji, who provided me with their valuable guidance throughout the
project.
PLACE :
SONAL S. KHAJEKAR
DATE : (PGDBM-BT)
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INDUSTRIAL PROFILE
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PHARMACEUTICAL INDUSTRY- AN OVERVIEW
The Indian pharmaceutical industry is a success story providing
employment for millions and ensuring that essential drugs at affordableprices are available to the vast population of this sub-continent.
Richard Gerster
Today, the Indian Pharmaceutical industry is in the fore front of science-based
industries of the country with wide ranging capabilities in the complex field of drug
manufacture and technology. India ranks among top 15 drug manufacturing countries of
the world and rates very high in the third world in terms of technology, quality and range
of medicines manufactured. The country boasts of manufacturing almost every type ofmedicine from simple headache pills to sophisticated antibiotics and complex cardiac
compounds.
The industry meets around 70 per cent of the country's demand for bulk drugs,
drug intermediaries, pharmaceutical formulations, chemicals, tablets, capsules, orals and
injectibles. The bulk drug industry in India has been growing at a phenomenal pace and
several important drugs like Ampicilin, Amoxyclin, Cloxacilin, Atenoloi, Ranitidia,
Lisinopril, Cephalosporin, Quinolones, anti-inflammatory drugs, Nifadipine, anti-
asthmatics, etc, have been produced in bulk. Growing at the rate of 14 per cent per year,
the industry possesses 20,053 manufacturing units, of which 290 units are in the large-
scale sector and 58 Multi-National Companies (MNCs) have manufacturing bases. It
provides employment to approximately 33 lakh people.
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The organized sector of Pharmaceutical industry has played a key role in promoting and
sustaining development in this vital field. International companies associated with this
sector have stimulated, assisted and
spearheaded this dynamic development in the past fifty four years and helped to put India
on the world pharmaceutical map.
The total production of bulk drugs in the country in 2000-2001 was Rs. 4533
corers, while formulations accounted for Rs. 18354 corers.India is largely self-sufficient
in the case of formulations, as over 85 per cent of formulations are sold in the domestic
market and only some life saving, new generation formulations continue to be imported,
specially by MNCs.
Factors Aiding Growth
The Indian market has some unique advantages. India has a fifty four year old
democracy. It has an educated work force and English is commonly used. It has a solid
legal framework and strong financial markets. Professional services are easily available. It
has a pool of personnel with high managerial and technical competence, as also skilled
workforce. There is already an established international industry and business community.
It has a good network of world-class educational institutions and established strength in
Information Technology. The country's commitment to free market economy and
globalization has given it an added advantage. Above all, it has a 70 million middle class
market, which is continuously growing.
The Pharmaceutical industry in India provides excellent facilities. It has quality producers
and regulatory authorities in the United Slates of America and the United Kingdom
approve many units.
Its track record of development, particularly in the area of improved cost-beneficialchemical synthesis for various drug molecules, is excellent. It provides a wide variety of
bulk drugs and exports sophisticated drugs
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Factors Deterring Growth
The Pharmaceutical industry has been plagued by two main deterrents. One of
them being price control and the other being taxation.
Price control in a large number of industries has already been abolished. The
Pharmaceutical industry in India is the only industry being subjected to a three-tier
control, viz, item-by-item control on the prices of bulk drugs, product-wise control on the
prices of formulations, and an overall control on the profitability of formulations.
The first formal drug price control was introduced in 1979, effected under the
Essential Commodities Act. Since then there have been two price revisions, the first being
in 1987 and the second in 1995. Administrative and rigid price control has certainly
retarded the development of this essential industry.
Medicines bear a heavy burden of taxes. Today, almost every pharmaceutical
product is being taxed to the extent of 30-35 per cent through custom duty, excise, sales
tax, octroi and other taxes. The burden on the consumer keeps rising year by year. In a
way, the tax on medicine is a tax on sickness.
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Opportunities for International Companies
For the first time in many years, the international pharmaceutical industry is
finding great opportunities in India. The process of consolidation, which has become a
generalized phenomenon in the world pharmaceutical industry, with its rich scientific
talents and research capabilities, supported by Intellectual Property Protection regime, is
well set to mark its place as a Sunrise Industry.
Exports
India is a net exporter of bulk drugs as over 50 per cent of bulk drug production is
exported. During the year 2000-2001, the total value of bulk drugs and pharmaceuticals
produced in India was worth US $ 1230 million, out of which drugs worth US $ 840
million were exported.
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The export of bulk drugs are projected to be around US $ 1350 million which
indicates more than 100 per cent growth by the year 2000-2003 in this sector.
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COMPANY PROFILE
NASHIK FORMULATION PLANT
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Nashik town possesses the largest manufacturing plant of GlaxoSmithKline Co. in India.
In terms of its volume it is considered to be one of Asias largest plant. This plant is also
termed as one of the fastest growing plants in India.
Situated in the Ambad Industrial Area this plant is erected on an area of 23 acres equal
amount of land is available for further expansion of the plant.
Location advantage of Nashik is that it is only 180 KM from financial capital of India that
is Mumbai. Nashik is situated 600 meters above sea land. Nashik is one of the fastest
growing cities in India. It has good infrastructure and enjoys facilities like power, water,
transportation and telecommunication facilities.
In this plant more than 50 products are manufactured. There are different sections like
tablets, liquids, ointments, aerosol, dry inject able powders and liquid ampoules which
produce different types of products.
Nashik factory is built to international standards manufacturing
facility of each dosage form is constricted as a separate module adopting the best
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prevailing practice in the world of technology. The factory is geared for production of
large volumes of a wide variety of effective remedies. The key products include anti
ulcer ant, Zinetic tablets, third generation antibiotic, fortum Aerosol containing
respiratory drug salbutamol and anti inflammatory, Beclometharone. Today the factory
produces 140 billion packs per year as against 30 million parks 8 years ago. The factory
now looks forward to fully utilize its production potential; the site exports its products to
various countries.
There are various efforts continuously carried out in the plant in order to reduce waste,
increase productivity, cost saving measures controlling and minimizing the use of utilities
so as to save power, water etc. There are in all 42 products in 75 packs manufactured at
Nashik.
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MISSION STATEMENT OF GSK
OUR GLOBAL QUEST IS TO IMPROVE THE QUALITY OF
HUMAN LIFE BY ENABLING PEOPLE TO DO MORE, FEELBETTER AND LIVE LONGER.
GOALS OF GSK
To delight customers through continuous improvement
To provide superior returns to our shareholders
To uphold leadership in selected disease areas and increase overall market share
To build a learning organization
To endow with an environment for excellence.
EHS POLICY OF GSK:
GSK pharmaceuticals limited, India is committed to high standards of
environment, safety and health management as an integral part of business
activities, in line with corporate values and continuous improvement.
GlaxoSmithKline Pharmaceuticals Ltd, Indias guiding principle is all accidents
are preventable and all identified Health risks are containable.
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PRODUCT RANGE :
LIQUIDS:
Vitamin preparation - Complex B Glaxo liquid .
Ostacalcium
Couge preparation - Piriton expectorant
Dilosyn
Sulpha drug - Septra suspension
OINTMENT:
Cream - Beta ovate range of products:-E.g.:- plain ,C,N,M,G etc.
Oimtments - Anovate, Betnovate-S, Neosporin.Highly potent drug - Flutivate cream/ Ointment, T-Bact.
TABLETS:
Beta products - Betnosol tablets/ Betnosol forte
Tablets, Betnalan tablets.Anti-ulcerate - Zintac tablets.
AEROSOLS:
Asthma preparation - Venorlin inhaler.- Becoride range of products.
DRY VIALS:
Third generation Antibiotics - Supacef Injection.- Fortum Injection.
- Cefidox Injection Vitneurin .
- Mecraberin Injection
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GlaxoSmithKline Pharmaceuticals Ltd.
General information :
Annual turnover of the year- 2005-06 were approximately 1400 corers
Total Manpower
Departments No. of Employees
1. Production 4842.Engineering 70
3. Quality Assurance 36
4. Crche 02
5. Lennon 05
6. Stores 10
7. O.H.C. 08
8. Office staff 28
9. Managerial staff 94
Shifts :
General :- 8 : 00 am to 5 : 30 pm
First :- 6 : 15 am to 3 : 00 pm
Second :- 3 : 15 pm to 12 : 00 am
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ORGANISATION CHART
17
SRGENER
ALMANAG
ER
Sr.
Manufacturi
ngManager
Sr.Eng
Manager
Sr.Human
Resource
Manager
Sr.Quality
Ass
urance
Manager
Manufacturi
ngManager
Eng
Manager
Quality
Assu
Mana
ger
Stores
manager
Training&
documentati
onManager
Accoun
ts
manager
AsstMfg
Manager
AsstEng
Manager
Asst..
Human
Resource
Manager
Asst.Q
ualityass
Manager
Asst
stores
Mgr
Asst
Distrib
Asst
Procure
EHS
Manager
Accounts
Executiv
e
Asst
T&D
manager
QA Exe
cutive
EngEx
ecutive
Mfg
Executive
Stores
Executiv
e
Attendant
Clerk
General
operative
Skille
Staff
Clerk
A
ttendant
Clerk
C
lerk
Skilled
Staff
Attendant
EHS
Executiv
e
Attendant
Clerk
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TABLE OF CONTENT
INDEX
CHAPTER
NO. TOPIC
PAGE
NO.
1 . RESARCH PROBLEM AND ITS BACKGROUND
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CHAPTER 1
RESARCH PROBLEM AND ITS
BACKGROUND
RESEARCH PROBLEM & ITS BACKGROUND
This project work is based on Performance Appraisal which is one of the most
important and difficult managerial activities. It can be said that it is the process of
assessing Qualitative & Quantitative aspects of an employee job performance.
Most organization have a formal performance appraisal programme.This
holds true for large and small union & non-union, and manufacturing and non
manufacturing companies .Most employee involve in these programs as well with
production ,office/clerical,professional/technical,first level supervision,middle,even top
management included.
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It is important to realize that Performance Appraisal will probably always
reflect an element of managerial discretion, and that such discretion is not necessarily
bad. Limited discretion, exercised by trained and responsible evaluators, will help to keep
the system flexible, responsive and accurate.
Finally, Performance Appraisal is based on the faith of the employee on
performance appraisal process of their organization, also based on the perception of
employee about the Performance Appraisal process of the organization. Therefore for
effective working of performance appraisal process there is needed to verify the
perception of the employee. So the study of study the perception of the managers of GSK
was taken as a research problem. The perception of the manager is taken because GSK
carryout performance appraisal process only for the managers.
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CHAPTER 2
OBJECTIVES AND SCOPE
OBJECTIVES:
The objectives of this project was -
1. To study the Performance Appraisal process as practiced in GSK.
2. To study the perception of the managers of GSK about the Performance Appraisal
Process as practiced in GSK
SCOPE OF THE PROJECT:
1. Appraisal in any organization is important as appraisals provide information upon
which promotions and salary decisions can be made.
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2. Appraisals also provide an opportunity for the senior and subordinate to review
the subordinates work related behavior.
3. Appraisal helps to determine the individual training and development needs of the
employees for a better and improved performance or handle greater
responsibilities.
4. Performance appraisal also tends to be extremely helpful in tough decisions about
promotion, transfer, demotion, salary hike, retention, etc.
5. It will help GSK for motivating the employees.
6. It will help GSK to formulate a better performance appraisal process
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CHAPTER 3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the research problem. It
may be understood as the science of studying how research is done. In it one studies the
various steps that are generally adopted by a researcher in studying his/her research
problem along with the logic behind it. It shows the type of sample design used and thesize the producer has used to draw the sample. The extent of precision achieved and the
method used for handling any special problem during the course of the study.
The methods used by me were the questionnaire method and the interview method
to collect the data and analyze the Performance Appraisal process in GlaxoSmithKline
pharmaceuticals limited, Nashik.
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In this my project the researchers have used both Primary data as well as Secondary data.
PRIMARY DATA:
Data collected by the researcher specifically for the research project.
It is collected directly from people and organizations via. Questionnaire or Surveys before
being analyzed to reach conclusions concerning the issues covered in the questionnaire or
survey.
New data gathered to help and solve the problem at hand. As compared to secondary data
which is previously gathered data. An example is information gathered by a
questionnaire.
Primary source includes:
Interview: It is best method to collect the data as it actually involve a face-to-face
interaction.
Questionnaire: It includes the opinion of the employee related to Performance
Appraisal and training provided.
SECONDARY DATA:
Secondary data is a data that has been gathered for some other purposes.
Data obtained indirectly from sources such as book or computer database.
Data that have already been collected for some purpose other than the current study.
Those that have been gathered for purposes other addressing the issue or problem
currently under study.
Secondary source includes:
Reference books: Every research study has its theoretical and practical part.
Theory part is usually compiled by reference of various books on concern topic.
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Company records: During the course of the investigation the researcher went
through the company records which are relevant to the performance of the
managers such as non confidential category records, objectives setting forms, the
personal files of the managers, trainee managers etc.
GSK news
SAMPLING DESIGN AND SAMPLE SIZE
Once the researcher has formulated the problem and developed a research design
including the questionnaire, he/she has to decide whether the information is to be
collected from all the people comprising the population.
.Purposive sampling a type of Non probability sampling method was used for this project.
.
SAMPLE SIZE :- 25-35
ANALYSIS OF COLLECTED DATA
Researcher has made use of graphs showing percentages to represent some questions.
Each question was analyzed and interpreted to arrive at a logical conclusion. The
graphical representation was to make the analysis easy to interpret. For each question,
tabular or graphical mode of representation has been used.
PREPARING THE RESEARCH REPORT
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Researcher has prepared his research report according to the principles prescribed by the
Institute. He has tried best to maintain objectivity, clarity in the presentation of ideas and
the use of charts and diagrams. The essence of a good research report is that, it effectively
communicates its research findings and to a great extent, Researcher has tried to maintain
this objective while compiling his project.
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CHAPTER 4
REVIEW OF LITERATURE
INTRODUCTION TO PERFORMANCE APPRAISAL:
Performance Appraisal is considered as a most significant and indispensable tool for an
organization, for the information it provides is highly useful in making decisions
regarding various personal aspects such as promotions and merit increases. Performance
measures also link information gathering and decision making processes which provide a
basis for judging the effectiveness of personnel. If valid performance data is available,
timely, accurate, objective, standardize and relevant, management can maintain consistent
promotion and compensation policies throughout the organization.
Formal performance appraisal plans are designed to meet three needs, one of the
organization and other two of individual.
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1. They provide systematic judgments to back up salary increases, transfers,
demotions or terminations.
2. They are means of telling a subordinate how he is doing, and suggesting needed
changes in his behavior attitudes, skills, or job knowledge. They let him know
where he stands with the boss.
3. The superior uses them as a base for training and developing the individual.
What is Performance Appraisal?
Performance Appraisal is an objective assessment of an individuals performance
against well-defined benchmarks.
It is the systematic Evaluation of the Individual with respect to his or her performance on
the job & his / her potential for development.
A more comprehensive definition is:
Performance Appraisal is a formal, structured system of measuring and evaluating an
employees job related behaviors and outcomes to discover how and why the employee is
presently performing on the job and how the employee can perform more effectively in
the future so that the employee, organization, and society all benefit
Methods Of Appraisal:
Several methods and techniques of appraisal are available for measurement of
performance of an employee. Each of the methods discussed could be effective for some
purposes, for some organizations.
The methods and scales differ,
1. In the source of traits or qualities to be appraised because of difference in Job
requirements, statistical requirement and the opinion of the management.
2. Because of the different kinds of workers who are being rated.
3. By the degree of precision attempted in an evaluation.
4. Because of the methods used to obtain weightings for various traits.
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The widely used categorization is that given by Strauss and Sayles.They have classified
Performance Appraisal methods into traditional and modern methods.
METHODS OF PERFORMANCE APPRAISAL
Traditional methods Modern methods
Rating Scales Assessment Center
Checklist Management By Objectives(MBO)
Forced choice Method BehaviorallyAnchored Rating ScalesForced Distribution Method 3600 Performance Appraisal
Critical Incidents Method Field Review Method
Essay Method
TRADITIONAL METHODS:-
Rating scales:
This is the simplest and most popular method for appraising employee performance.
The typical rating-scale system consists of several numerical scales, each representing a
job related performance criterion such as dependability, initiative, output, attendance,
attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rater
checks the appropriate performance level on each criterion, and then computes theemployees total numerical score. The number of points scored may be linked to salary
increases, whereby so many points equal a rise of some percentage.
Checklist method:
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In this method a checklist of statement on the traits of the employee and his or her job is
prepared in two columns yes and no. Here the rater has to tick yes column if the
answer is positive and the no column if the answer is negative. After ticking of f against
each statement the rater forward the list to the HR department. The HR dept. assigns
certain points to each yes tick. When points are allotted to the checklist the technique
becomes a Weighted Checklist. Actual evaluation is done by the HR dept.
Forced choice method:
This approach is known as the forced choice method because the rater is forced to select
the statements, which are readymade. The advantage of this method is the absence of
personal bias in rating. The disadvantage is that the statements may not be properlyframed- they may not be precisely descriptive of the ratees traits.
Forced distribution method:
The forced distribution method operates under an assumption that employee performance
level conforms to a normal statistical distribution. This system is used to minimize or
eliminate raters bias so that all personal may not be placed at the higher end or at the
lower end of the scale. It requires the rater to appraise an employee according to the
predetermined distribution scale. Under this system, it is assumed that it is possible and
desirable to rate only 2 factors visualizing job performance and promotability.
Critical incidents methods:
In this method, the subordinates are observed during their work whenever some critical
incidents occurred during the job (this critical incidents are the important occasionsidentified by the supervisors in the job) the behavior of the employees during this
incidents is appraised and based on the performance in this incidents, the subordinates are
evaluated.
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Field review method:
The field review method is an appraisal by someone outside the assessees own
department, usually from corporate office or the HR department. The outsider reviews
employee records and holds interviews with the ratee and his or her superior. The methodis primarily used for making promotional decision at the managerial level. Field reviews
are also useful when comparable information is needed from employees in different units
or locations.
Essay method:
Essay method is extremely useful in filing information gaps about the employees that
often occur in the better structure checklist method
MODERN METHODS :-
360-Degree Feedback:
The technique, in which multiple raters ranging from an employee, from supervisors,
subordinates, peers, and, internal and external customers are involved in evaluating
performance of an individual, is called 360-degree feedback method. This technique is
understood as systematic collection of performance data on an individual or group,
derived from a number of raters.
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Assessment center:
An assessment center is a central location where managers may come together to have
their participation in job related exercises evaluated trained observers. Mostly used for
executive hiring, assessment centers are now being used for evaluating executive or
supervisory potential.
Behaviorally Anchored Rating Scales:
BARS are said to be behaviorally anchored as the scales represent a range of descriptive
statements of behavior varying from the least to the most effective. These are the rating
scales whose scale points are determined by statements of effective and ineffective
behaviors. A rater is expected to indicate which behavior on each scale best describes an
employees performance.
DATA PRESENTATION
The Method used in GlaxoSmithKline pharmaceuticals Ltd. is based on
--
Management By Objectives
It was Peter F.Drucker who first gave the concept in 1954. MBO reflects a management
philosophy, which values and utilizes employee contributions.
MBO has been defined as:
1. A system approach to managing and organization, where those accountable for
directing the organization first determine where they want to take the organization.
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2. A process requiring and encouraging all key management personnel to contribute
their maximum to achieving the overall objectives.
3. An effort to blend and balance all the objectives of all key personnel, and
4. An evaluation mechanism.
Objectives:
1. The objective is to change behavior and attitudes towards getting the job done.
2. MBO is result oriented; it is performance that counts.
3. Stress the objectives rather than methods.
4. It provides responsibility and accountability and recognizes that employees have
needs for achievement and self-fulfillment. It meets these needs by providing
opportunities for participation in goal setting process.
5. Subordinate become involved in planning his or her own careers.
Process:
Four steps in MBO process
1. Establish organization objectives to establish objectives for each employee for
the given period. The objective typically refers to the desired outcome to be achieved.
These objectives can then used to evaluate employee performance.
2. Setting the performance standard involves setting the performance standards for
the subordinates in a previously arranged time period. As subordinates perform, they
know fairly well what there is to do, what has been done and what remains to be done.
3. Performance reviews the actual level of goal attainment is compared with the
objectives agreed upon. The evaluator explores reasons for the objectives that were
not met, and for their objectives that were exceeded. This step helps to determine
possible training needs. It also alerts the superior to conditions in the organization that
may affect a subordinate.
4. Feedback the employees who receive frequent feedback in time which are
specific and relevant, concerning their performance are highly motivated than those
who do not.
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5. Establishing new objectives involves establishing new objectives and, possibly,
new strategies for objectives not previously attained. At this point, subordinate and
superior involvement in objective setting may change. Employees who successfully
reach the established objectives may be allowed to participate more in objective
setting process the next time. The process is repeated.
Advantages:
MBO is an important performance tool. It has certain advantages.
1. MBO helps and increases employee motivation because it relates overall
objectives of the company to that of individual objectives, and helps the employee to
understand where he stands in the organization.
2. Managers will assess themselves, rather than compete with other managers,
which helps to reduce internal conflicts.
3. MBO results in a means ends chain. Management at succeeding lower levels in
the organization established targets, which are integrated with those at the next higher
level. Thus, it can help insure that everyones activity is ultimately aimed towardsorganizations goals.
4. MBO reduces role conflict and ambiguity since, MBO aims at providing clear
targets and their order or priority, and it reduces both these situations.
5. MBO provides more objective appraisal criteria, for evaluating the managers
performance.
6. MBO forces and aids in planning, to establish a strategy and goals for entire
organization and how to reach them.
7. Frequent performance reviews help to identify problems better and early.
8. MBO identifies performance deficiencies and enables the management to take
decisions related to training and development of employee.
Disadvantages:
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1. MBO is time and energy consuming.
2. MBO is not applicable to all jobs in all organizations.
3. There is sometimes a tug-of-war in which the subordinate tries to set the lowest
targets possible and the supervisor the highest.
OBJECTIVE SETTING PROCESSDefinition:
Objective setting process is the initial phase of performance management system that
involves setting of specific- measurable- agreed- realistic- time related (SMART), Key
result areas and proper appraisal system to trap bias free information.
Meaning:
Objective setting is a part of Performance Management System. It focuses on the notion
that employees efforts should be goal directed. There are two aspects of this:
1. The manager should appraise the employees based on how that employee
performed with respect to achieving the specific standards by which the employee
expected to be measured.
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2. The employees goals and performance standards should make sense in terms of
companys strategic goals.
Purpose:
Employee should know his yearly targets so that he can work accordingly
towards accomplishment of these targets.
For drawing conclusions/ rating employees performance at the end of the
year for taking decisions on incentives and promotion.
Employees individual targets should make pillars for accomplishment of
overall organization missions.
In GlaxoSmithKine, the Top-Down approach is followed.
In top down approach, the top management sets the organizational goals. These goals
thereon assigned to all the levels TOP DOWN APPROACH of the organization. The top
management set the departmental goals according to that it percolates down to the lower
level in the organization.
Top
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Management
Nashik Unit
Functional Manager
Employee
TOP DOWN APPROACH
Objective setting process in GSK pharmaceuticals Ltd
Objective setting for the newly joint employees is done after one month of Date of joining
and for existing employees it is done annually after the appraisal.
1. The objective setting form is available online in GSK for the respective managers.
2. The managers and the employee come together for a formal discussion and the
objectives are set participative.
3. The manager give an introduction about the organizational goals/ mission, job
profile and explains the whole process to the employee.
4. The objectives, which have to be set, are discussed between the managers and the
employee in consideration to Key Performance Areas and behavioral attributes.
KPAs are aligned with the departmental goals.
5. The final objectives are set according to SMART goals.
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SMART goals :-
S Specific- written in simple language and to the point.
M Measurable- must be easy to measure and evaluate.
A Agreed- agreed between the managers and the employee.
R Realistic- capable of being met by the employee given the circumstances
T Time Related- goals should be time bound. Goals lack significant incentive
power if they are unrelated to the organizations underlying personal
aspirations.
6. The behavioral and attitude objectives cannot be based on SMART goals, as they
cannot be measured.7. The employee studies the final objectives set and if he finds any difficulty in
achieving the targets, his training need is identified.
8. The objectives set is agreed by both of them are finally documented on the online
objective setting form and approved by the manager and the employee.
9. The objective setting form is finally filled online.
10. Copy of objective setting form has to be retained with the manager, the employee
and HR department for final review.
CHAPTER 5
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DATA PRESENTATION AND ANALYSIS
Data Analysis
Q.1. What you say about objective setting procedure in PA?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Relevant 9 30%
2 According to
business goals
21 70%
3 Not satisfied 0 0%
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TOTAL 30 100%
Q.2. Whether objectives are written by you or by your boss?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 By both 18 60%
2 By boss 9 30%
3 By self 3 10%
TOTAL 30 100%
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FEQUENCY
30%
70%
0%
Relevant
According to business goals
Not satisfied
FREQUENCY
60%
30%
10%
By both
By boss
By self
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Q.3. Do you feel that the objective setting procedure is to be
Changed ?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 No change 12 40%
2 Somewhat 18 60%3 Fully changed 0 0%
TOTAL 30 100%
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FREQUENCY
40%
60%
0%
No change
Somewhat
Fully changed
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Q.4. All the objectives of PA are clear to you ?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Somewhat 9 30%
2 Not fully 3 10%
3 Fully 18 60%
TOTAL 30 100%
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FREQUENCY
30%
10%
60%
Somewhat
Not fully
Fully
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Q.5. Are you satisfied with your speed of review towardsCompletion of target?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Satisfied 18 60%
2 Not much 6 20%
3 Slightly 6 20%
TOTAL 30 100%
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FREQUENCY
60%20%
20%
Satisfied
Not much
Slightly
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Q.7. Which of following factors affect your performance?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Health factors 0 0%
2 Family 0 0%
3 Profession 30 100%
TOTAL 30 100%
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FREQUENCY
0%0%
100%
Health factors
Family
Profession
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Q.8. Performance review discussion is conducted with high
Quality & care ?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Correct 15 45%
2 Somewhat
correct
12 45%
3 Incorrect 3 10%
TOTAL 30 100%
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FREQUENCY
50%40%
10%
Correct
Somewhat correct
Incorrect
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Q.9. Is HR-department provide inadequate feedback to the
Line manager on their behaviors?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Never 9 30%
2 Sometimes 9 30%
3 every time 3 10%
4 No response 9 30%
TOTAL 30 100%
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FREQUENCY
30%
30%
10%
30%
Never
Sometimes
every time
No response
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Q.10. Which type of benefits you gain through annual review ?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Monetary 12 40%
2 Non monetary 3 10%
3 Both 15 50%
TOTAL 30 100%
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FREQUENCY
40%
10%
50%
Monetary
Non monetary
Both
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Q.11. Are you satisfied with your score of this year ?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Fully 12 40%
2 Partially 15 50%
3 Not satisfied 3 10%
TOTAL 30 100%
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FREQUENCY
40%
50%
10%
Fully
Partially
Not satisfied
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Q.12. At which stage your objective lye at the annual review ?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Successfully
completed
21 70%
2 exceeds 9 30%
3 Not completed 0 0%
TOTAL 30 100%
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FREQUENCY
70%
30%0%
Successfully completed
exceeds
Not completed
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Q.13. Is individual performance based on effective
Implementation of PA-system?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Yes 7 23.35%
2 No 5 16.75%
3 Cant say 18 60%
TOTAL 30 100%
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FREQUENCY
23%
17%60%
Yes
No
Cant say
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Q.14. Is effective PA- system is important factor for
Improving individuals performance?
Sr. no. DESCRIPTION FREQUENCY PERCENTAGE
1 Important 8 26.70%
2 Not important 10 33.30%
3 Cant say 12 40%
TOTAL 30 100%
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FREQUENCY
27%
33%
40%
Important
Not important
Cant say
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CHAPTER 6
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FINDINGS AND CONCLUSIONS
.
Findings:
1. The Objective setting process is done for all the managers.
2. The objectives are set according to the Key Performance Area with theapplication of SMART Goals.
3. Performance appraisal is done annually.
4. MBO method is used for Performance management system.
5. The employee has full right to comment on the appraisal interview.
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CONCLUSIONS:
During my interaction with GSK group Nashik relating to my project I found a
friendly and stress less environments where management and staff frequently
interacted with each other
The goal for training is for employees to master the knowledge, skills and behaviors
emphasized in training programs and to apply them to their day to day activities.
In GSK Nashik I found that:
Performance Appraisal process is carried out only for managerial staff.
Performance Appraisal program are planned to align the requirements of the
company mission
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GSK believes that the basic resource of the company is the quality of human
capital, knowledge, skills and attitudes and combination of all three elements
measures productivity and value creation capabilities.
Performance Appraisal is the symbol of enabling task of enhancing values and
global competitiveness
The company aims at creating a feeling of identity, cohesiveness and
interdependence among different functions and ensures structures and
effective team building across the organization.
RECOMMENDATION
After studying and observing Performance Appraisal process carry out inGlaxoSmithKline Pharmaceutical Ltd. Nashik, following recommendation can bemade.
1) Other tools for judging the performance of the appraisee should be use like360 degree appraisal, feed back interviews etc..
2) The necessary discussion between the appraiser-appraisee regarding theperformance must be done at right time and in right way.
3) Performance appraisal process should conduct not only for managerialstaffs but also for the lower staffs and workers
4) The periodic review should be conducted at least two or more times a year.
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5) The training and development department must seriously take up theprograms identified after collecting and analyzing the appraisal data
6) Performance review discussion should be conducted with highQuality & care
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ANNEXURE
LIMITATIONS OF THE PROJECT
Any activity cannot to be so articulate and perfect that there are no limitations to it. Same
was the case with my project. In spite of the project being successful I felt that if I had
some more information or openings and of-course time, I would have worked better.
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The sample size was not satisfactory one due to time constraints.
I couldt observe the objective setting process of GSK because it was already done
in the month of January 2007.
Some of the managers were not comfortable to express their true views in front of
their superiors.
Some of the employees have to report to the managers who work in the other unit
than Nashik.
I was not able to observe Performance Appraisal Process because the company
executes the appraisal system in the month of December
5.1 BIBLIOGRAPHY
BOOKS:
K.Aswathappa Human Resourse and Personnel
Management
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Garry Dessler - Human Resourse Management
MAGAZINES:
The Human Factor (IIPM intelligence unit
publication)
GSK- News
WEB SITES:
www.gsk.com
QUESTIONNEIR OF PERFORMANCE APPRAISAL(For SENIOR,MIDDLE,&JUNIOR manager in GSK)
DEPARTMENT : NO. OF YEARS EXPEREANCE:
NAME : NO.OF YEARS IN GSK:
AGE : LAST YEAR SCORE OF PA:
A)Performance planning objective:
1)What you say about the objective setting procedure inperformance appraisal?a) Relavant b)According to business goalc)not satisfied.
2)Whether the objectives are written by you or your boss?
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a)by both b)by bossc)by self.
3)Do you feel that the objective setting procedure to be changed?
a)no change b)somewhatc)fully change
4)Whether time given to you for objective seting procedure issufficient?a)need extra time b)sufficientc)more than require time.
5)Which of the following help you to set your objective?a)discussion with boss b)motivation by your apparaiserc)self innovation.
6)All the objective of performance are clear to you?a)somewhat b)not fullyc)fully.
7)Discussion on the key result area before setting of the objectiveis educative to both?a)agreed b)partially agreedc)not agreed.
B)Periodic Rewiew of performance.
1)When the periodic rewiew done in GSK?a)after 6months b)every monthc)quarterly.
2) Is your objective are on the target?
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a) On target b) not on targetc)exceed the target.
3) Are you satisfied with your speed of review towards completion
of future target?a) Satisfied b) not muchc) slightly.
4) Do you want any change in this procedure?a)somewhat b)need improvementc)no improvement.
5)You ever adopted certain methods to improve team spirit towardsyour objective?a)never b)partiallyc)fully.
6)Which of the following factor affect your performance?a)health b)family factorsc)professional factors
7)Do you consider the key area time to time related to your job?a)never b)sometimesc)always.
8)At any time the team will face some tight deadlines which makework critical?a)no b)sometimes
c)everytime.
9)what is your role doing appraisal rewiew?a)supportive b)somewhatc)not all supportive
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C)Annual Rewiew .
1)performance rewiew discussion are conducted with high quality& care?
a)true b)somewhat true c)false.
2)Is HRD department provide adequate feedback to line manageron there behaviour?a)never b)sometimesc)everytime
3)Is the rewiew system provide opportunity to express your
developmental needs?a)never b)sometimesc)mostly.
4)which type benefit you gain through annual rewiew?a)monetary b)non monetaryc)both
5)Does appraisal finds out training needs & take seriously followup?a)truly b)sometimesc)never.
6)Which of the following type consider while ranking ?a)transparency maintain b)biases are heldc)faulty rewiew system
7)Are you satisfied with your score of these year?a)fully b)partiallyc)not satisfied
8)At which stage your objective lye at annual rewiew?
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a)successfully completed b)exceedc)not completed.
9) Appraisal data is consider for the other developmental decisions
like job rotation, job enrichment etc?a) true b)partially true c)false.
10) Is performance appraisal facilitates growth, mission,& goals,learning process in GSK?a)true b)partially true c)false
11) Are you happy with progress that you have made in GSK?
a) yes b) noc)somewhat?
12)where you want to see yourself after 5years in this organization& how you will link up with your performance?a)exceeding 3grades b)2grades c)1grade.
13) Is individual performance based on effectiveImplementation of PA-system?
a) yes b)no c)cant say
14)Is effective PA- system is important factor forImproving individuals performance ?
a) important b) not important c)cant say