CHAPTER 1 INTRODUCTION

Performance appraisal (or performance review) is essentially an opportunity for individual employees and those concerned with their performance, typically line managers, to engage in a dialogue about each individuals performance and development, as well as the support required from the manager. The main purpose of performance appraisals are the improvement of employees performance on the job. Definition According to Edwin B Flippo performance appraisal is the systematic, periodic and an imparting rating of an employees excellence in matters pertaining to his present job and his potential for a better job. Statement of the problem The project envisages the studies about the potential of extending the performance appraisal system to all its employees and also the potentiality of extending the performance appraisal system even after the period of probationary and training of the employees. Thus the main problem behind the study is to make the performance appraisal an effective tool to improve employees work level and to improve productivity.

Scope of the project The scope of the project covers basically the organization, the employee who has their opinion in the implementation of the appraisal system and also the Manager the HRD also eager to implement it. Thus this is the main scope of the study that will help in the process of identifying the employees views on the implementation of the appraisal system. Thus this study will cover the entire assessment of the performance appraisal system and will in identifying the importance of it and use it in an efficient manner.

Objectives of study The following are the main objective of the study that will show the clear idea of the Primary objective of the study and also the secondary objective of the study. To focus on employees views on Performance appraisal.

 To suggest and recommend certain remedial measures to make Performance Appraisal system effective. Research design The Research design is descriptive design. Research methodology The methodology of study is carried out in two ways Primary source- Personal interview, questionnaire and actual observation. Secondary source Company files, Websites, books, journals.

Limitation of the study The study is limited to only Strides Arco Lab limited of 50 employees due to time constraints. Chapter scheme Basic information about performance appraisal. Information about Pharmaceutical industry in India and Global. Strides Arco Lab profile Performance appraisal practiced at Strides Arco Lab. Survey analysis.

CHAPTER 2 PHARMACEUTICAL INDUSTRY IN INDIA AND GLOBAL

The Pharmaceutical industry in India is the world's third-largest in terms of volume. According to Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, the total turnover of India's pharmaceuticals industry between 2008 and September 2009 was US$21.04 billion. While the domestic market was worth US$12.26 billion. According to Brand India Equity Foundation, the Indian pharmaceutical market is likely to grow at a compound annual growth rate (CAGR) of 14-17 per cent in between 2012-16. India is now among the top five pharmaceutical emerging markets of the world. Exports of pharmaceuticals products from India increased from US$6.23 billion in 200607 to US$8.7 billion in 200809 a combined annual growth rate of 21.25%. According to PricewaterhouseCoopers (PWC) in 2010, India joined among the league of top 10 global pharmaceuticals markets in terms of sales by 2020 with value reaching US$50 billion. In terms of the global market, India currently holds a modest 12% share, but it has been growing at approximately 10% per year. India gained its foothold on the global scene with its innovatively engineered generic drugs and active pharmaceutical ingredients (API), and it is now seeking to become a major player in outsourced clinical research as well as contract

manufacturing and research. There are 74 US FDA-approved manufacturing facilities in India, more than in any other country outside the U.S, and in 2005, almost 20% of all Abbreviated New Drug Applications Pharmaceutical industry in India 2 (ANDA) to the FDA are expected to be filed by Indian companies. Growths in other fields notwithstanding, generics are still a large part of the picture. London research company Global Insight estimates that Indias share of the global generics market will have risen from 4% to 33% by 2007. The Indian pharmaceutical industry has become the third largest producer in the world and is poised to grow into an industry of $20 billion in 2015 from the current turnover of $12 billion.

Performance appraisal at industrial level. The most commonly used performance appraisal methods used in industries today are:

comparative appraisals, behavioral appraisals, and output-based appraisals. Comparative Appraisals Managers directly compare the performance of their subordinates against one another in comparative appraisals. For example, a data entry operator's performance would be compared with that of other data-entry operators by the computing supervisor. Comparative techniques include ranking, paired comparisons, and forced distribution.

Behavioral Appraisals In contrast with comparative appraisals, behavioral appraisals allow supervisors to evaluate each person's performance independent of other employees but relative to important job-related behaviors, which when exhibited can lead to job success. For example, a salesperson that can exhibit the behavior of 'verbal persuasion' appropriately has satisfied a behavior-based criterion. The simplest methods for appraising job performance using behavioral criteria to mark an employee's level of performance in a specific form, namely: the graphic rating scale and checklist. Some managers are required to provide written appraisal information - in a narrative form. These records describe an employee's actions rather than indicating an actual rating. Among the most common narrative appraisal methods are included: the critical incident method and the essay. Output-based Appraisals While the methods described above focus on job behaviors or processes, output-based appraisals focus on job products as the primary criteria. The most commonly used output-based appraisal is Management-by-Objectives (MBO). MBO specifies the performance goals that an individual hopes to attain within an appropriate length of time. The objectives that each manager sets are derived from the overall goals and objectives of the organization.

CHAPTER 3 COMPANY PROFILE

Strides Arcolab is an Indian pharmaceutical company headquartered at Bangalore in southern India. Strides Arcolab Limited manufactures a range of ethical[pharmaceutical products, overthe-counter products and nutraceuticals. The company's products include softgel capsule, hardgel capsules, tablets and dry and wet injectables. It is one of the largest softgel capsule manufacturers in the world. Its softgel manufacturing capability consists of annual capacity of 50,000 machine hours or about three billion softgel capsules. The company has 15 manufacturing sites in six countries and marketing presence in 50 countries. In the United States and Canadian markets, the company partners with generic companies to supply retail and hospital generics in injectable products and softgels. In European markets, it has long-term relationships for the development of projects and supply agreements with the European companies. In Australia and New Zealand, the company is engaged in manufacturing and supply of soft gels and value-added manufacturing. The company has development and supply agreements with South African companies.

Mission
Innovate and operate in niche areas; deliver high quality products and compelling service that ensure that our customers view us as a long term and reliable partner.

Vision
To be a profitable provider of high quality pharmaceutical products and solutions that creates strategic value for our partners and provides a rewarding work place for our employees. Future Plans The company is targeting a strong position in the world market for steriles,with a wide range of capabilities in freeze drying, prefill syringes, ampoules and vials, and dedicated Penicillin, Cephalosporins and Penem capacities.About 40 sterile generic products are currently under development for the US and EU markets. The company also plans to position itself as a fullservice provider by entering into contract manufacturing and supply agreements. By mid 2007,the company also proposes to construct a greenfield facility in Bangalore for Oncology and

Hormone products. It has already established strategic partnerships in the EU for this purpose, and plans to make a capital expense of USD 40 million for expansion in the domains for steriles, softgels and APIs (active pharmaceutical ingredients). Performance appraisal practices at Strides Arco lab For Appraisee Do a self appraisal based on the KRA (Key Result Area) is agreed at the beginning of the year before going to their supervisor. Appraisee should fill this form by using their Daily, Weekly and Monthly reports, Development needs addressed and other reviews. After doing their self assessment interact with their supervisors for a discussion on their performance, development plan and feedback for the period 3 or 6 months. KRAs will have a weightage of 70% & behavioral attributes of 30% while arriving at the final score. For Appraiser Schedule performance Counseling meetings well in advance, ensure no disturbance and that the setting for the sessions facilitates open discussions. Care must be taken to ensure Personal Prejudices, Halo effect, Stereotyping does not come in the way of objective assessment. Should ensure Training & Developmental needs are filled for the overall development. The performance appraisal forms signed by appraiser and supervisor, handed over to HR department.

CHAPTER 4 CONCEPTUAL FRAMEWORK

The Present Performance Appraisal system that is been followed by the company is Managerial Appraisal System that is Balanced Scorecard Method and Key Result Area. The Procedure of the Performance Appraisal is as follows Once the person is entering the probationary period for one year, he will be given a Appraisal form and to fill his performance and what he wants to improve and to be trained; After this the person will be trained in his area of work and he is entering the Probationary period; & Then after the completion of Probationary period he will be again given a Appraisal form wherein, in this turn the Appraisal form will be filled by the Person himself and the Department head and will be confirmed for the position. Balanced Scorecard Method The balanced scorecard is a new management concept which helps managers at all levels monitor results in their key areas. An article by Robert Kaplan and David Norton entitled "The Balanced Scorecard - Measures that Drive Performance" in the Harvard Business Review in 1992 sparked interest in the method, and led to their business bestseller, "The Balanced Scorecard: Translating Strategy into Action", published in 1996. There's nothing new about using key measurements to take the pulse of an organization. What's new is that Kaplan and Norton have recommended broadening the scope of the measures to include four areas:

financial performance, customer knowledge, internal business processes, learning and growth.

Key Result Areas Key Result Areas or KRAs refer to general areas of outputs or outcomes for which the departments role is responsible. Key Result Area in simple Terms may be defined as Primary responsibilities of an Individual, the core area which each person is accountable. In Strides Arco Lab limited balanced scorecard method is used for rating performance of executives and managers. Key result area (KRA) method is used for supervisors and lower level employees.

CHAPTER 5 SURVEY ANALYSIS AND INTERPRETATION

Introduction Survey is a means of getting opinions and fact from different individuals having different socio economic conditions. In Strides Arco Lab limited we made a survey on performance appraisal practiced by the employees to know their performance level year on year. Analysis The detailed study for the project of performance appraisal was done purely for the academic purpose at Strides Arco lab limited Bangalore. This is done for the purpose of Data collection datas are collected from HR department of Strides Arco Lab. Focus group we have focused on both employees and managers in different fields to know their performance level. Research instrument we used questionnaire and personal interview to know the feedback of employees about performance appraisal system. Sample size 50 employees. Statistical tools bar graph and pie chart used to show for easy analysis of survey. Questionnaire Examples Do you have Performance development programs in your organization? A) Strongly agree B) Agree C) Disagree D) Strongly disagree E) Not applicable Would you accept performance appraisal system practiced in your organization? A) Strongly agree B) Agree C) Disagree D) Strongly disagree E) Not applicable

Pie chart example

CHAPTER 6 FINDINGS, SUGGESTIONS AND CONCLUSION

Findings The summary of various findings in this project spanning the employees of Strides Arco Lab limited is quite interesting on the basis of their valuable feedback through questionnaire in consultation with their management. Suggestions The company may involve more development programs on improving performance level of employees. The Company may also regularly update itself with modern approaches year by year. The company may also take feedback from employees. The company should provide training for the betterment of employees performance. Conclusion Hence Performance appraisal is system that is helpful in correctly identifying a training needs of an individual, this will ultimately helps in the process of improving companies potentiality and make better output.