Performance

Appraisal system in
HCL
 ABOUT HCL
 HCL, with its headquarters just outside
Delhi and a workforce of more than 30,000
spread over 15 countries, including
Australia, asks employees to rank their
boss and other company managers. The
difference is that the results are posted
online for everyone to see. There's nowhere
to hide.
ABOUT HCL cont..
 "We believe the workplace is actually an
extension of the campus. It's all about
making mistakes and learning. There is a
cultural orientation around virtual campus
creation at the workplace and this is part
of a significant investment in knowledge
management and knowledge banks."
 Performance Appraisal
objective

The identification, measurement,

and management of human
performance in organization.
A Model of Performance Appraisal

Identification

Measurement

Management
Dimension

An aspect of performance that

determines effective job
performance.
 The Benefits of
Performance Appraisal
Employer Perspective:
 Despite imperfect measurement techniques, individual differences in
performance can make a difference to company performance.
 Documentation of performance appraisal and feedback may be needed for
legal defense.
 Appraisal provides a rational basis for constructing a bonus or merit
system.
 Appraisal dimensions and standards can help to implement strategic goals
and clarify performance expectations.
 Providing individual feedback is part of the performance management
process.
 Despite the traditional focus on the individual, appraisal criteria can include
teamwork and the teams can be the focus of the appraisal.
The Benefits of Performance
Appraisal (cont.)
Employee Perspective:
 Performance feedback is needed and desired.
 Improvement in performance requires
assessment.
 Fairness required that differences in
performance levels across workers be measured
and have an effect on outcomes.
 Assessment and recognition of performance
levels can motivate workers to improve their
performance.
Rankings and Performance Levels Across
Work Teams managers and below
Actual Ranked Work Ranked Work Ranked Work

10 (High) Jaya (1) Farha (1)

9 rahul (2)
8 mona (2) Lisa (3)
7 Manisha (1) Sonam (3)
6 Uma (2)
5
4 Joy (3) Govind (4)
3 Boby (4) Kely (5) Joly (4)
2 Richa (5) Steve (5)
1 (Low)
Sample Trait Scales
Rate each worker using the scales below.

Decisiveness:
1 2 3 4 5 6 7
Very low Moderate Very high

Reliability:
1 2 3 4 5 6 7
Very low Moderate Very high

Energy:
1 2 3 4 5 6 7
Very low Moderate Very high
Loyalty:
1 2 3 4 5 6 7
Very low Moderate Very high
 Evaluation of Major
Appraisal
Appraisal
Formats
Administrative Developmental Legal
Format Use Use Defensibility
Absolute 0 + 0
Relative ++ - -
Trait + - --
Behavior 0 + ++
Outcome 0 0 +
-- Very Poor - Poor 0 Unclear or mixed + Good ++ Very good
 How to Determine and Remedy
Performance Shortfalls
Cause Questions to Ask Possible Remedies

Ability • Has the worker ever been • Train

able to perform adequately? • Transfer
• Can others perform the job • Redesign job
adequately, but not this worker? • Terminate
Effort • Is the worker’s performance • Clarify linkage between
level declining? performance and rewards
• Is performance lower on all • Recognize good
tasks? performance
Situation • Is performance erratic? • Streamline work process
• Are performance problems • Clarify needs to suppliers
showing up in all workers, • Change suppliers
even those who have adequate • Eliminate conflicting
supplies and equipment? signals or demands
• Provide adequate tools
 360° Feedback

The combination of peer,

subordinate, and self-review
Key Steps in Implementing 360°
Appraisal
 Top management communicates the goals of and need for
360° appraisal.
 Employees and managers are involved in the development of
the appraisal criteria and appraisal process.
 Employees are trained in how to give and receive feedback.
 Employees are informed of the nature of the 360° appraisal
instrument and process.
 The 360° system undergoes pilot testing in one part of the
organization.
 Management continuously reinforces the goals of the 360°
appraisal and is ready to change the process when necessary.
Performance management system
for mangers and above
 HCL philosophy is, "what gets measured, gets reviewed and
what gets reviewed, gets improved"
Performance Tracking System: They have a, a daily to weekly to
monthly to quarterly review system. This is done through tracking
enablers and results. This leads to satisfaction (both internal and
external), people satisfaction and business growth.HCL's belief for
holistic quality improvement is realized
 360 Degree Feedback: It shares a reciprocal relationship with
various processes facilitating continuous improvements in areas such
as selection, career planning, goal setting, reward schemes and
culture.

Assessments in HCL are not just for improvement and

development, but are also well recognized and rewarded.
 HCL Perot Systems (HPS) is a joint venture between HCL
Technologies and Perot Systems Corporation.

Appraisal system
For appraisal of personnel, HPS does not follow a formal structure. After the end of
every project, HPS does project reviews., this also helps them in assessing an
individual’s true competence, which can be later used for his career development.
To identify under-performers, HPS has a robust management system called
‘Performance Improvement Plan’. This system is also linked to their future training
needs for identifying and plugging skills gaps.
While HR policies at HPS are linked to performance and contemporary framework,
compensation is linked to role, responsibility, qualification and experience and skill
level of each associate, assessed at the time of joining. There are also schemes to
identify and recognize ‘Star Performers’ and ‘Star Teams’. The performance and
potential of an associate plays a crucial role in his growth and progression. The
company’s reward management plan incorporates rewards like associate of the
year, exceptional contributor, quality champion and competency development. To
retain their workforce, last year the company had started a new programme for the
top management. Under this, the senior managers and top management would be
offered dynamic profiles as rewards (read money) are not the big criteria.
A Performance Tracking System
is…
 A management tool that helps manage employees, supervisors,
and departments based on actual objective performance
standards instead of subjective guesswork. Performance
tracking defines performance standards for employees,
supervisors, and managers and measures actual performance
against standards. It identifies employees, supervisors, and
departments who are meeting, exceeding, or lagging behind
performance standards.

What are the benefits of a Performance Tracking System?

 Objective not subjective assessment

 Easy and timely access to actual performance levels

 Facilitates proactive management of "employee" resources