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School of Management, KIIT University

HRM Report
PERFORMANCE APPRAISAL AT TCS LTD


Submitted to :
Prof. Debjani Ghosh


Submitted by:
Oindrila Mitra 13202026
Parag Parmar 13202027
Paulomi Mukherjee 13202028
Premasha Kar 13202031
Prerna Agrahari - 13202032
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Acknowledgement

The successful completion of this live project would not have been possible
without the guidance and support of my faculty, colleagues and my institute,
School of Management, KI I T University. I take this opportunity to thank them
and all my well-wishers for their relentless encouragement and wholehearted
support.

We would like to express my special thanks to Prof.Debjani Ghosh, the faculty
guides in School of Management, KIIT University, for helping me design the
framework and also to teach me all the dimensions to analyze the company and
gather informations.
We would also like to extend my gratitude to the associate consultant, TCS ltd
(Subsidiary of the erstwhile TATA group), Mr. Chandan Kar for finding out
time off his busy schedule to take help us complete our research study.

We would also thank my parents whose constant support and motivation has
boosted us to work relentlessly and be successful in all my endeavours.

Oindrila Mitra 13202026
Parag Parmar 13202027
Paulomi Mukherjee 13202028
Premasha Kar 13202031
Prerna Agrahari - 13202032
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Declaration

We hereby declare that the research report titled Performance Appraisal at Tata
Consultancy service is our own work and has been carried out under the
guidance of Prof. Debjani Ghosh, the faculty guides in School of Management,
KIIT University, Bhubaneswar, in the partial fulfillment of Masters of Business
Administration Degree.

The research work has been a part of the course curriculum and all the
responses collected from the respondents has been kept confidential and is used
for academic purpose only.

All care has been taken to keep this report flawless and we sincerely regret any
unintended discrepancies in this report.










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Table of Contents
Description Page no.

Executive summary 5
Introduction 6
Objective of the Project 7
Methodology 8
Company Profile - TCS Ltd. 9
Performance appraisal at TCS (earstwhile Tata Group) 10-13
Performance Appraisal Process
Relative Ranking System
Type of Appraisal
Objective of Appraisal
Process Involvement

Importance of Process 13
Lacks of Process 14
Barriers in Process & Some Improvements 14
Attributes Of Process 15
Conclusion 16
Bibliography 17





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Executive Summary

Organisation nowadays function towards the maximum utilization of its
resources and most effective use of its Human resource leads to better results.
Certainly, to sustain an organisations ever profitable position one needs to house
a bunch of effective and prudent employees who put in the labour to reap the
seeds. In order to have a power-house of employees which constitute the
backbone of any organisation Performance appraisal is a must needed area to be
taken care off.

Performance appraisal helps the organisation to improve the performance of
employees and motivate them for offer promotion based on competence. it is a
formal structured system of the measuring & evaluating an employee's job
related behaviour and outcomes. it is one of the most vital tools for an
organisation to develop an effective employee faction.

Through this live project, we shall try to have a look at the process of
Performance Appraisal of TCS Ltd and see how they have incorporated this
activity in their business cycle to enhance their manpower resources across their
various departments. We have gone to their Bhubaneswar office, which is
primarily a testing office.







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Introduction

This live project is a primary data collection method from HR personnel at TCS
Ltd subsidiary order to get a transparent picture of how Performance appraisal
is done in this organisation and what are the various verticals associated with
this analysis. how the persons involved in it and further what are the various
ways it is done.

A poor performer is not always a poor performer for life, says Mr S
Padmanabhan, Executive Vice President, global human resources,
Tata Consultancy Services (TCS).The Rs 9,749-crore InfoTech major
has 45,000 employees on its rolls. Close to 90 per cent of the companys
income flows in from outside India. And the bulk of its employees work across
TCS offices in 34 countries and on-site in more than 50 countries. For most of
them, the supervisor changes every time a project changes. Given that no two
projects or, for that, matter, no two bosses-
are alike, performance management and performance appraisal must be a
nightmare. Or is it?

The TCS-HR group operates with technical experts to create a synergy which is
illustrates the role of HR, which evidently is that of a facilitator. So whether it is
recruitment or even career development, HR is the catalyst which initiates andin
stitutionalizes processes. To manage all the functions for over 14000
employees is a Herculean task but the smoothness of operations
is intriguing. The HR structure, which allows flexibility and
empowerment, is the solution with guaranteed high motivations level at TCS
through competitive compensation packages, stimulating job content,
outstanding development opportunities, and not the least, an innovative
recognition mechanism.


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Objective of the Research

Data relating to performance assessment of employees arc recorded, stored. and
used for seven purposes. The main purposes of employee assessment are:
1. To effect promotions based on competence and performance.
2. To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
3. To assess the training and development needs of employees
.4. To decide upon a pay raise where (as in the unorganized sector)
regular pay scales have not been fixed.
5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.
6. To improve communication. Performance appraisal provides a format for
dialogue between the superior and the subordinate, and improves understanding
of personal goals and concerns. This can also have the effect of
increasing the trust between the rater and the ratee.
7. Finally, performance appraisal can be used to determine whether HR
programmes such a selection, training, and transfers have been effective or not.
Broadly, performance appraisal serves four objectives-
(i) developmental uses,
(ii)administrative uses/decisions,
(iii)organizational maintenance/objectives,
(iv)documentation purposes


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Methodology
We have gathered all the information through direct interview with Mr.
Chandan Kar (Associate consultant) TCS Ltd. We inquired about all the
associated area of concerns randomly without any specific tool, as our primary
data. Further, to understand the procedure better which stands as our secondary
data we have gone through their online publications.















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Company Profile:- TCS Ltd.

It is a Global Multinational into IT Services.
TCS is headquartered in Mumbai, operates in 46 countries and has more
than 208 offices across the world.
One of the pioneers of IT industry in Manpower management.
Flexible global business practices that enable companies to operate more
efficiently and produce more value

Tata Consultancy Services (TCS) is an IT services, consulting and business
solutions organisation that delivers real results to global businesses, ensuring a
level of certainty no other firm can match. TCS offers a consulting-led,
integrated portfolio of IT, BPO, infrastructure, engineering and assurance
services. This is delivered through its unique Global Network Delivery
Model
TM
, recognised as the benchmark of excellence in software development.

A part of the Tata group, Indias largest industrial conglomerate, TCS has over
285,000 of the world's best trained consultants. The company generated
consolidated revenues of $11.6 billion for year ended March 31, 2013 and is
listed on the National Stock Exchange and the Bombay Stock Exchange in
India.
Services
TCS helps clients optimise business processes for maximum efficiency and
galvanise their IT infrastructure to be both resilient and robust. TCS offers the
following solutions:
Assurance services
Business information and performance management
Business process outsourcing
Cloud services
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Connected marketing solutions
Consulting
Engineering and industrial services
Enterprise solutions
iON small and medium businesses
IT infrastructure services
IT services
Mobility solutions and services
Platform solutions
Industries
TCS has the depth and breadth of experience and expertise that businesses need
to achieve business goals and succeed amidst fierce competition. TCS helps
clients from various industries solve complex problems, mitigate risks and
become operationally excellent. Some of the industries it serves are:
Banking and financial services
Construction
Energy and utilities
Government
Healthcare
High tech
Insurance
Life sciences
Manufacturing
Media and information services
Metals and mining
Retail and consumer products
Telecom
Travel, transportation and hospitality

Software
TCS BaNCS
TCS MasterCraft
TCS technology products


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Performance Appraisal at TCS ltd.

Performance appraisal process
Half Yearly review system- They follow a half yearly review system named
as H1 and H2. The final evaluation report for every employee is generated
after H2 is completed.
Process:
1. Associates set Goals
2. Supervisor approves the goals
3. Skill sets are decided in joint meeting by supervisor and associate
to achieve goals.
4. Training deadlines are set to achieve required skill levels
5. Senior Supervisor achieves final plan
Associate employee OKs final goals.
Queries are acknowledged and addressed.
Scores are given on half yearly appraisals to achieve rating bands: A to E
Bands given at the end of H2 evaluation.
A is highest in accordance with relative rating of group employees.
No of people assessed by a Supervisor can range from 8-80.

Relative Ranking system
Attributes rated can reach a maximum of 50-60 based on type of team.
Varies in a team of people
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Directly linked to goals set.
Type of Appraisal
Self Appraisal ----- Moves to appraiser for evaluation
TCS conducts two appraisals:-

1.At the end of the year
2.At the end of a project.
Appraisals are based on Balanced Scorecard, which tracks the achievement of
employees on the basis of targets at four levels




The financial perspective quantifies the employees contribution in terms of
revenue growth, cost reduction, improved asset utilization and so on. The
customer perspective looks at the differentiating value proposition offered
by the employee. The internal perspective refers to the employees contribution
in creating and sustaining value. The learning and growth are self-explanatory.
The weight age given to each attribute is based on the function the
employee performs.
Objective of appraisal
To assess the performance of employees
Data driven process for defining success at work.
Quantifying the success A rated employees rewarded generously with
bonus and hikes of around 15%
Scoring is absolute- but banding is relative to encourage intra team
competitiveness.
Evaluation of attributes based on industry standards and specifications
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Process involvement
Levels of employees:
Associate
Supervisor (Business Consultants)
Senior Supervisor (Business Heads)
HR Executives of concerned departments
Feedback is subjective and specific areas of improvement are told to the
employee by the supervisor.
Completely system generated process built on indigenous ERP platform.

Importance of Process
For the Employee:

To understand his performance and place in the team.
What he needs to do more.
Where is it going good for him.
Technical areas of development.

For the Supervisor/Employer:

Who are the key people in the teams.
Whom to make better.
Who is a resource they should let go of







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Lacks of the process

We spoke extensively on the Performance Appraisal process with Mr Kar, who
wanted to share some of his view where the process lacks. The excerpts are as
below:

Employees dont focus on what the Supervisor says and try to plan their
own career path, in turn damaging their overall prospects altogether.
Each factors importance is not taken seriously.
Employee should get to know the overall prospects of appraisal. The
complete data sharing should happen, along with the HR personnel before
the Performance Appraisal starts to give a better clarity to the appraisee.
Peer evaluation is missing hence no 360 degree appraisal.
Only concerned about the bands they get in a team, hence no absolute
sense of performing. A mediocre person working in a low key team can
as well be getting the same band and hikes as a hi-flyer in a high
performing team.
30-40 attributes make it a very cumbersome process to manage along
with the regular business activities.



Barriers

Time is limited and difficult to manage along with regular business
process.
Biases exist among supervisors towards their team associates. It should
be avoided by keeping the HR personnel connected during the process.
Although final evaluation still remains in the hands of the supervisor.


Probable Improvement

Mr Kar suggested some probable improvements he feel can be brought about in
the appraisal process:

Max number of employees capped for each Supervisor. If the team is a
really big one then there should be multiple team leaders by creating
smaller teams. They shall in turn report to the supervisor (business
consultant).
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Supervisor should be mandated to provide feedback comments.
Sometimes the supervisors just give the bands to the employees without
finishing off with proper feedback. The HR should ensure this happens
more.
HR involvement should be increased to monitor & channelize proper
flow of process.


Desired Attributes

We found out some of the desired attributes that the process looks for in an
employee while appraising them. They were divided into two main domains:
Soft skills and Technical. Frontline associates who dealt with clients had to be
more proficient on both, whereas for back end testers soft skills was not
essentially very important in comparison.

Soft Skills:
Analytical abilities
Team Player
Leadership skills

Technical:

Testing
Improving productivity based on previous cycles
Value addition in terms of '$' to the customer.
















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Conclusion


From the processes we saw at TCS Ltd and the kind of
feedback we got, the appraisal process is one of the most important
tools for managing a company's Human Resources effectively. Also,
due importance has to be given to this by all companies, which many
of them fail to do.

Performance Appraisal for an employee is equally important for self
growth and also knowing where they stand in the organisation. The
employee has a good opportunity to get a clear feedback from his
boss which shall in the future help him to become a better asset for
the organization.

Performance appraisal, thus, is important for all managers (including
business managers and HR managers) to assess their human resources
and make the best out of them.















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References


www.tcs.com

Wikipedia

www.tata.in