School of Management, KIIT University

HRM ReportPERFORMANCE 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, KIIT 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 - 13202032Declaration

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.

Table of ContentsDescription Page no.

Executive summary 5Introduction 6Objective of the Project 7Methodology 8Company Profile - TCS Ltd. 9Performance 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 13Lacks of Process 14Barriers in Process & Some Improvements 14Attributes Of Process 15Conclusion 16Bibliography 17

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.

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 percent 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 projectsor,forthat,matter,notwobosses-arealike,performancemanagementandperformance 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 recruitmentorevencareerdevelopment,HRisthecatalystwhichinitiatesandinstitutionalizes processes. To manage all the functions for over 14000 employees is a Herculean taskbut thesmoothness ofoperations isintriguing.The HRstructure, which allows flexibility and empowerment, is the solution with guaranteedhigh motivations level at TCS through competitive compensation packages, stimulating job content, outstanding development opportunities, and not the least, an innovative recognition mechanism.

Objective of the Research

Data relating to performance assessment of employees arc recorded, stored. and used forseven purposes. The mainpurposes of employee assessment are:1. To effect promotions based on competence and performance.2.Toconfirmtheservicesofprobationaryemployeesupontheircompletingtheprobationaryperiodsatisfactorily.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 theirdevelopment.6.To improve communication. Performance appraisal provides a format for dialoguebetween 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) developmentaluses,(ii)administrative uses/decisions,(iii)organizational maintenance/objectives, (iv)documentation purposes

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.

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. Flexibleglobalbusinesspractices 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 ModelTM, 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.ServicesTCS 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 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 solutionsIndustriesTCS has the depth and breadth of experience and expertise that businesses need to achieve business goals and succeed amidstfierce 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

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 Goals2. Supervisor approves the goals3. Skill sets are decided in joint meeting by supervisor and associate to achieve goals.4. Training deadlines are set to achieve required skill levels5. 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 Directly linked to goals set.Type of Appraisal Self Appraisal ----- Moves to appraiser for evaluation TCS conducts two appraisals:-

1.Atthe endofthe year2.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 levelsfinancialcustomerinternallearning and growthThe financial perspective quantifies the employees contribution in terms of revenue growth, cost reduction, improved asset utilization andso on. The customerperspective 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

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 ProcessFor 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

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). 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.

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.

References

www.tcs.com

Wikipedia

www.tata.in