group 3 hrm performance appraisal
TRANSCRIPT
Human Resource Management 2010
December 2010
Human Resource
Management Performance Appraisal in Wipro
Submitted To,
Prof. John Peter
Submitted By,
Hiral Dodia - 60226
Manan Jhaveri - 60416
Rishabh Parekh - 60243
Abhishek Doshi - 60419
Aatash Patel - 60237
Deep Gadhvi - 60238
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Human Resource Management 2010
Contents
Introduction 3
Objectives 3
Methods of Performance Appraisal 4
Traditional Methods 5
Modern Methods 6
Appraisers 7
Process of Performance Appraisal 8
Survey for Performance Appraisal 9
Advantages and Disadvantages of Performance Appraisal 9
Example : Performance Appraisal at Wipro 10
Introduction 10
Timeline of Wipro 10
Appraisal Methods of Wipro 11
Human Resource Planning 12
Capacity Maturity Model (CMM) 12
Evolution of Six Sigma at Wipro 14
Process of HRP at Wipro 14
Performance Appraisal 15
Appraisal System 15
Promotion 16
Compensation 17
Aims of Performance Appraisal at Wipro 17
Example of Performance Appraisal Form 18
360 degree Performance feedback at Wipro 20
Advantages 20
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Human Resource Management 2010
Introduction
"Performance appraisal is the systematic, periodic and an impartial rating of an employee‟s
excellence in the matters pertaining to his present job and his potential for a better job."
The focus of the performance appraisal is providing feedback to the employee with the aim to
eliminate performance deficiencies as well as measuring and improving the actual
performance of the employee and also the future potential of the employee. A logical explanation
would be that it further leads to the performance related pay awards.
Objective
To review the performance of the employees over a given period of time.
To judge the gap between the actual and the desired performance.
To help the management in exercising organizational control.
Helps to strengthen the relationship and communication between superior – subordinates
and management – employees.
To diagnose the strengths and weaknesses of the individuals so as to identify the training
and development needs of the future.
To provide feedback to the employees regarding their past performance.
Provide information to assist in the other personal decisions in the organization.
Provide clarity of the expectations and responsibilities of the functions to be performed
by the employees.
To judge the effectiveness of the other human resource functions of the organization such
as recruitment, selection, training and development.
To reduce the grievances of the employees.
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Methods of performance appraisal
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Traditional Methods
1. Essay evaluation method
This method asked managers/supervisors to describe strengths and weaknesses of an employee‟s
behavior. Essay evaluation is a non-quantitative technique. This method usually use with the
graphic rating scale method.
2. Straight ranking method
This is one of the oldest and simplest techniques of performance appraisal. In this method, the
appraiser ranks the employees from the best to the poorest on the basis of their overall
performance. It is quite useful for a comparative evaluation.
3. Paired comparison analysis
Paired comparison analysis is a good way of weighing up the relative importance of options.
A range of plausible options is listed. Each option is compared against each of the other options.
The results are tallied and the option with the highest score is the preferred option.
4. Critical incident method
The critical incidents for performance appraisal are a method in which the manager writes down
positive and negative performance behavior of employees throughout the performance period.
5. Field interview
In this method, a senior member of the HR department or a training officer discusses and
interviews the supervisors to evaluate and rate their respective subordinates. A major drawback
of this method is that it is a very time consuming method. But this method helps to reduce the
superiors‟ personal bias.
6. Weighted checklist method
This method describe a performance appraisal method where rater familiar with the jobs being
evaluated prepared a large list of descriptive statements about effective and ineffective behavior
on jobs
7. Graphic rating scales
The Rating Scale is a form on which the manager simply checks off the employee‟s level of
performance. This is the oldest and most widely method used for performance appraisal.
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8. Forced ranking (forced distribution)
Forced ranking is a method of performance appraisal to rank employee but in order of forced
distribution.
For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80
percent in the middle, and 10 percent in the bottom.
Modern Methods
1. Management By Objectives (MBO) method
MBO is a process in which managers / employees set objectives for the employee, periodically
evaluate the performance, and reward according to the result.
MBO focuses attention on what must be accomplished (goals) rather than how it is to be
accomplished (methods)
2. 360 degree performance appraisal
360 Degree Feedback is a system or process in which employees receive confidential,
anonymous feedback from the people who work around them. This post also includes
information related to appraisal methods such as 720, 540, 180…
3. Assessment centers
An assessment centre typically involves the use of methods like social/informal events, tests and
exercises, assignments being given to a group of employees to assess their competencies to take
higher responsibilities in the future. Generally, employees are given an assignment similar to the
job they would be expected to perform if promoted. The trained evaluators observe and evaluate
employees as they perform the assigned jobs and are evaluated on job related characteristics.
The major competencies that are judged in assessment centers are interpersonal skills,
intellectual capability, planning and organizing capabilities, motivation; career orientation etc.
assessment centers are also an effective way to determine the training and development needs
of the targeted employees.
4. Behaviorally anchored rating scales
This method used to describe a performance rating that focused on specific behaviors or sets as
indicators of effective or ineffective performance. It is a combination of the rating scale and
critical incident techniques of employee performance evaluation.
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5. Human Resource Accounting Method
Human resources are valuable assets for every organization. Human resource accounting method
tries to find the relative worth of these assets in the terms of money. In this method the
Performance appraisal of the employees is judged in terms of cost and contribution of the
employees. The cost of employees include all the expenses incurred on them like their
compensation, recruitment and selection costs, induction and training costs etc whereas their
contribution includes the total value added (in monetary terms). The difference between the cost
and the contribution will be the performance of the employees. Ideally, the contribution of the
employees should be greater than the cost incurred on them.
Appraisers in performance Appraisal
PEERS
SUPERVISORS
SELF
APPRAISAL
CUSTOMERS /
CLIENTS
SUBORDINATES
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Process of Performance Appraisal
Establishing Performance
Standards
Measuring Actual
Performance
Communicating Standards
and Expectations
Comparing with Standards
Discussing Results
( Feedback )
Decision Making – Taking
Corrective Actions
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Results on Performance Appraisal (Purpose of the
Organization)
Advantages and disadvantages of performance appraisal
Advantages of doing performance appraisals:
They provide a record of performance over a period of time.
They provide an opportunity for a manager to meet and discuss performance with an
employee.
Provide the employee with feedback about their performance and how they completed
their goals.
Provide an opportunity for an employee to discuss issues and to clarify expectations with
their manager.
Offer an opportunity to think about the upcoming year and develop employee goals.
Can be motivational with the support of a good reward and compensation system.
Disadvantages of performance appraisal
If not done appropriately, can be a negative experience.
Are very time consuming, especially for a manager with many employees.
Are based on human assessment and are subject to rater errors and biases.
If not done right can be a complete waste of time.
Can be stressful for all involved.
0% 10% 20% 30% 40% 50% 60% 70% 80%
Other Puposes
Promotions, Demotions & Transfers
Deciding Future Goals & Course Of Actions
Identifying Cause Of gaps In Performance
Training & Development Needs
Payroll & Compensation Decision
6%
35%
42%
76%
71%
80%
Series1
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When I look at where we have come, what gives me tremendous satisfaction is not so much the success, but the fact that we achieved this success without compromising on the value we defined for ourselves? Values combined with a powerful vision can turbo-charge a company to scale new heights and make it succeed beyond one’s wildest expectations.”
-Azim Premji
WIPRO
Wipro started as a edible oil Producer in1945 under the name Western India Vegetable
Products
Chairman- Azim Premji
In 1977 it entered the IT segment.
Third largest IT services company in India
3rd
Best HR Management company in India
Employees- 97250 as on November 2008
Time Line of Wipro
1945- Incorporated as Western India Products Limited
1947-Establishment of an oil mill at Amalnaer, Maharashtra, India
1960- Manufacture of laundry soap 787 at Amalmaer
1970-Mfg of bakery shortening vanaspati at Amalnaer
1975- Diversification in Engineering and mfg of hydraulic cylinders as WINTROL (now called
Wipro Fluid Power) Division in Bangalore.
1977- Name of the company change to Wipro Products Limited
1980-Diversification into Information Technology
- This is the time the top IT managers Shreedhar Mitta, Dr. Laxman Rao, Venkatesh ,
Sadashivam quit in one stroke from the IT division of Giant public sector ECIL,
Hyderabad to join Wipro.
1988-Crossed the $10million mark in annualized revenues.
1990- Incorporation of Wipro-G Medical Systems.
1992- Going global with global IT solutions
1993- Busny to achieve the TL9000 certification for industries specific qualities standards.
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Human Resource Management 2010
Wipro acquires American management systems global energy practice
Becomes world‟s first PCMM level 5 company.
Premji established Azim Premji foundation, a not for profit org for elementary education.
Wipro becomes only Indian company features in business week‟s 100 best performing
Technology Company.
1995- Established Wipro Academy of Software excellence.
2002-Wipro acquires spectra mind.
Ranked the 7th software services company in the world by business week (InfoTech 100
,Nov 2002)
2003- Wipro acquires curve wire
Wipro tech wins prestigious IEEE award for software process excellence
Wipro tech wins prestigious ITSMA award for services marketing excellence
Wipro wins the 2003 Asians most admired knowledge award
2004- Crosses the $1Billion Million.
IDC rates Wipro as the leader among worldwide offshore service providers.
2005- Wipro acquires empower to enter payments space & also acquires European system on
Chip(SoC) designed firm new logic
2006- Wipro acquires enabler to enter niche retail market.
2007- Wipro acquires US‟s info crossing for 600M.
2009- Wipro acquires Gallagher financial system to enter mortgage loan origination space.
Wipro Stops Semi conductor IP solutions and closes New logic Sophia-Antipolis R&D,
France.
Wipro launches ESS- Electronic Security Solutions with production CCTV system access
control system and building management system.
Appraisal methods of Wipro
e-performance management
People Capability Maturity Model (PCMM)
Identification of start performers
Intensive training program
Quarterly and half yearly performance appraisal
360 degree performance feedback
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Human Resource Planning (HRP)
The basic purpose of having a manpower plan is to have accurate estimate of required
manpower with matching skills requirements. The main objectives are:
Forecast manpower requirements.
Cope with changes – environment, economic, organizational.
Use existing manpower productively.
Promote employees in a systematic way.
Wipro is the first People Capability Maturity Model (PCMM) Level 5, SEI Capability
Maturity Model(CMM) Level 5 and version 1.1 of CMMi certified IT Services Company
globally. Wipro‟s people processes are based on the current best practices in human resources,
knowledge management and organization development, giving a great focus to match changing
business needs with development of employee competencies.
Capability Maturity Model (CMM) Wipro has expertise in Six-Sigma methodologies, which have been put in use to streamline and
enhance existing people processes in organizations, enabling decision making based on metrics
and measurements.
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The central idea behind Six Sigma is that if you can measure how many “defects” you
have in a process, you can systematically figure out how to eliminate them and get as
close to “zero defects” as possible.
Six Sigma starts with the application of statistical methods for translating information
from customers into specifications for products or services being developed or produced.
Six Sigma is the business strategy and a philosophy of one working smarter not harder.
Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of the most
mature Six Sigma programs in the industry ensuring that 91% of the projects are completed on
schedule, much above the industry average of 55%. As the pioneers of Six Sigma in India, Wipro
has already put around ten years into process improvement through Six Sigma. Along the way, it
has scaled Six Sigma ladder, while helping to roll out over 1000 projects. The Six Sigma
program spreads right across verticals and impacts multiple areas such as project management,
market development and resource utilization.
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Evolution of Six Sigma at Wipro:-
Six Sigma at Wipro simply means a measure of quality that strives for near perfection. It
is an umbrella initiative covering all business units and divisions so that it could transform itself
in a world class organization. At Wipro, it means:
(i) Have products and services meet global benchmarks
(ii) Ensure robust processes within the organization
(iii) Consistently meet and exceed customer expectations
(iv) Make Quality a culture within.
As timely reviews play a very crucial role to judge the success of a project. Wipro had to develop
a team of experts for this purpose. The task assigned was to see the timeliness, find out gap,
week areas and to check the outcome as per the plan.
Process of HRP at Wipro
Process of human resource planning at wipro is done by the top management executives of HRD.
They formulate the different polices in reference to the Human Resource Planning. Human
Resource Policies in Wipro are as follows :
Manpower Planning
Recruitment & Selection
Training & Development
Performance Appraisal
Promotion, Transfer, & Demotion
Administration Section
Grievance Handling
Kaizen suggestion
Welfare Activities
Wipro Employee Stock Option Plan (WESOP) Allows employees to share in companies
success
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Performance Appraisal Appraisal System
In order to answer your Performance related questions, Wipro offers an integrated end-to-end
Performance Management Solution. This solution is based on global people processes drawn
from best practices and helps organizations streamline their performance evaluation processes.
Wipro‟s e-Performance Management solution not only helps you establish the best
practices in Performance Management, like 360degree appraisal, MBO, etc, but enables reduced
Performance Management cycle time without compromising on the sub-processes which are so
critical to your HR values, like Work Planning Conference, Work Plan establishment,
Development plans and Objective setting, Interim Review, Overall evaluation, detecting
Performance deficiencies, Tracking, Documentation and Archiving.
Once reviewed by HR dept. Assistant (HR) updates the records for each employee‟s score in the
database.
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Promotion
“Higher you go. Heavier you get”.
A promotion is the advancement of an employee's rank or position in an organizational hierarchy
system. Promotion may be an employee's reward for good performance i.e. positive appraisal.
Before a company promotes an employee to a particular position it ensures that the person is able
to handle the added responsibilities by screening the employee with interviews and tests and
giving them training or on-the-job experience.
As per Guidelines for supervisory employees‟ promotion/up gradation, applicable to the present
year, Manager (HR) prepares the list of eligible employees. Simultaneously, V P (HR) also asks
for recommendations from HODs. A comprehensive list is then prepared by Manager (HR) and
submitted to the EPPP which is announced by the Site President, for Executive and Manager
Family, and by the Group President (MSD), for Leader Family.
Bases of Promotion:-
1. Seniority
Seniority simply depends upon how long the employees is doing job with the company.
The length of service and talent are both interrelated with each other. It is based on the tradition
of respect for older people. It creates a sense of security among employees and avoids conflict
arising from promotion decision.
2. Merit
Merit implies the knowledge, skill and performance records of an employee. It helps to
motivate competent employee to work hard and acquire new skills. It helps to attract and retain
young and promising employees in the organization.
On the above basis, promotion of employees is done in Wipro. Wipro also prompt employee by
conducting different case studies on different aspects of Information Technology. Working at
Wipro is very comparative & to get promotion required smart work and projection.
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Compensation
Compensation is a systematic approach to providing monetary value to employees in exchange
for work performed. Compensation may achieve several purposes assisting in recruitment, job
performance, and job satisfaction.
Wages and salaries structure is very vital for the retention of the employees as due to stiff
competition, if proper salary is not given then the employees will go to those organization
offering higher salaries. Jivraj Tea Ltd is actively involved in retaining good manpower in the
organization by providing proper salary and incentive methods. Wipro runs 50 offices in India. It
has a branch office in USA, Canada, Europe, Middle east, Africa etc ….
Employee
Class
No. of
Employees
Salary
(Rs. / Month)
A+ Class 128 120000 U.S. $
A Class 1240 150000
B+ Class 33000 60000
B Class 22000 40000
Technicians 4000 35000
Zero Level 3440 10000
Aims of performance appraisal at Wipro
Give feedback on performance to employees
Identify employee training needs
Document criteria used to allocate organizational rewards
Form a basis for : promotion, demotion, disciplinary actions etc.
Provide the opportunity for organizational diagnosis and development
Facilitate the communication between the employee and the administrator
Validate selection techniques and human resource policies to meet Federal equal
employment opportunity requirements
Wipro‟s solution aims at strategic value delivery in the least possible time incorporating rich
functional features, aided by smooth workflow, notification, authorization, etc.
Align employee objectives to the business goals.
Enable strategic performance management through Management by Objectives (MBO)
Measure and Assess employee performance periodically and provide feedback and
support to achieve quantitative, qualitative and process targets
Evaluate and track Hi-Performance and achievers based on competency driven practices.
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Example of performance appraisal form
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360 degree performance feedback at Wipro
Wipro also uses 360 degree performance feedback technique for the appraisals.
360 degree feedback, also known as „multi-rater feedback‟, is the most apprehensive appraisal
where the feedback about employees‟ performance comes from all the sources that come in
contact with employee on his job.
360 degree respondents for an employee can be his/her peers, managers, subordinates, team
members, customers and suppliers/vendors etc - anyone who comes in contact with the employee
and can provide valuable insights and information or feedback regarding the „on-the-job‟
performance of employee.
Other companies using 360 degree performance appraisal method
Tata Infotech
HCL Infosystems
Asian Paints
Ashok Leyland
Important factors in 360 degree feedback
According to Mr. Pratik Kumar – Corporate VP HR, Wipro Technologies Limited
The mission and objective of the feedback must be clear
The employees must be involved early
Resources must be dedicated to the process, including top management‟s time
Confidentiality must be ensured
The organization, especially top management, must be committed to the program
Advantages
To the Individual
Helps one to understand that how other perceive him/her
Uncover blind spots
Quantifiable data on soft skills
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To the Team
Increases Communication
Higher levels of trust
Better team environment
Supports teamwork
Increased team effectiveness
To the Organization
Reinforced corporate culture by linking survey items to organizational leadership
competencies and company Values
Better careers development for employees
Promote from within
Improves customer service by involving them
Conduct relevant training