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Essay / Performance Appraisal System of Dabur India Limited
Dabur began its streamlining efforts in April 1997, when consultants McKinsey & Co. were hired. Their three recommendations were: Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essay to focus on a few areas of activity; to improvise the supply chain and procurement processes and to restructure appraisal and compensation systems (HR Restructuring nd). Performance reviews at Dabur have been made even more objective by incorporating numerous measurable criteria. New concepts were introduced as performance evaluation criteria. Some of these new criteria are customer satisfaction, increased sales and reduced costs, cycle time efficiency, return on investment and shareholder value (Gibson, Harvey & Harris 2007). A few key performance areas (KPAs) for each employee have been identified by HR. managers to improve the level of employee satisfaction. Now, for performance appraisal and compensation planning, KRAs have become the basis. Performance management based on a Balanced Scorecard (Dabur India Ltd nd) is followed by Dabur, which ensures balanced performance of managers across multiple dimensions including financial objectives, customer relationship management, internal business processes and research and development. The company's variable compensation plan modified key performance indicators (KPIs) using the Balanced Scorecard. (Kaplan and Nortan 2001, Malmi 2001). The extent to which employees achieve a specific set of goals that have been deemed important to the success of their jobs determines the basis for their evaluation. This approach is called management by objectives (Greenwood 1981, Lepak et. al 2006), which involves setting objectives, planning actions, self-monitoring and periodic reviews (Nayab 2009). In setting objectives, the overall objectives of the organization are used as guidelines from which departmental and individual objectives are set. In action planning, means are determined to achieve the goals set in goal setting, that is, pragmatic plans are made to achieve the goals. There are three possible outcomes as far as Dabur Company is concerned: Outstanding – If the employee performs well, with respect to If his asset has 3 consecutive outstanding performances, he is promoted. Good - If rated "good", he is sent to a training program to improve his skills and achieve better results. Below Average – If the employee earns three below average points under his belt, then he is fired. Although the review of the performance appraisal system in Dabur reveals that it has an effective appraisal system, the following recommendations have nevertheless been made: Baseline performance, job rotation and training program can be included in the corrective measures taken (Craig, Beatty, Baird 1986). Both from an individual and organizational point of view, the frequency of feedback must be increased, to maintain employee motivation towards achieving the organization's goals. Train the assessor for a better understanding of the system and advise them to be honest, fair and impartial in the assessment process. Provide the employee with an appropriate comment or justification for assigning a particular rating. Better clarity of job descriptions. must be provided.