performance appraisal in hcl info system
TRANSCRIPT
STUDENT DECLARATION
I am GARIMA BANSAL student of MBA here by declares that the summer training
report titled “PERFORMANCE APPRAISAL IN HCL INFOSYSTEM” is completed
and submitted under the guidance of “Mr. Gopal Saraswat” is my original work.
The imperial finding in this report are based on the data collected by me. This project has
submitted to SRM-IMT, Modinagar for the purpose of compliance of requirement this
examination.
GARIMA BANSAL
M.B.A. IV Sem
Roll No. - 3510930051
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ACKNOWLEDGEMENT
Presenting a summer training project of this type is an arduous task, demanding a lot of
time. I cannot in full measure appreciate and acknowledgement the kindness shown and
help extended by various persons in this endeavor. I will remember all of them with
gratitude.
My sincere thanks are also due to Dr. N.C. Bansal (H.O.D., Management) & Mr. Gopal
Saraswat, for their significant help extended for the successful completion of the project.
I highly the help I got from them in providing me and lot of information regarding the
functioning of this organization.
I am always beholden to my God, for always being with me and showing me the right
ways, my family, for always doing favors to me and my friends and colleagues
consistently helped with encouragement and criticism throughout the project work, for
always lifting my sights to higher vision, raising my personality beyond normal limitation
and for realizing me my strengths and potential, as I did not always welcome her
exhortation, “try again; you can do better.” But this project owes a great deal to it – and
so do I.
GARIMA BANSAL
PREFACE
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Today’s market scenario is totally different from what it has been a few years ago.
Consumers has a lot of choice for every product because day by day companies are
coming up with their new and innovative products. Later there was limited choice for
most of the products and companies didn’t have to put much of the efforts to sell their
products. But today’s scenario is totally different. Consumers have choice because of
availability of varieties and options. We can say today’s consumer is the market ruler. So
it is important to know his buying behavior and try to fulfill his demand. Company’s aim
should be customers delight not customer’s satisfaction.
This research was really good learning experience for me. I got opportunity to apply the
theoretical knowledge to practical aspects of selling. What problems can arise and the
way to tackle the difficulty during the sales as smartly as possible.
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CONTENTS
Student declaration
Acknowledgement
Preface
Indian hardware industry
Company profile
Product profile
Performance appraisal system in HCL
Research methodology
Objective of the study
College of data
Data analysis
Findings
Conclusions
Suggestions
Questionnaire
Bibliography
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INDIAN HARDWARE INDUSTRY AND HCL INFOSYSTEMS LTD.
The year 2004 marked a turning point in the history of global trade in services, with
growing acceptance of IT based global delivery model. With ever increasing availability
of international bandwidth and powerful workflow management software, it is now
possible to disaggregate any business process, execute the sub-processes in multiple
centres around the world, and reassemble it, in near-real time, at another location. This is
driving fundamental changes in the global IT services landscape; vendors and customers
are redefining the levels of value creation in the industry. In the wake of changing global
service landscape, Indian Information Technology (IT) and IT enabled services (ITES-
BPO) continue to chart remarkable growth.
The Indian software and services export is estimated at Rs. 78,230 crore (US$ 17.2
billion) in 2004-05, as compared to Rs. 58,240 crore (US $ 12.8 billion) in 2003-04, an
increase of 34 per cent both in rupee terms and dollar terms. This segment will continue
to show robust growth in future also.
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Indian ITES-BPO sector industry continues to grow from strength to strength, witnessing
high levels of activity – both onshore as well as offshore. Last year witnessed vendors
moving up the value-chain to offer higher-end research and analytics services to their
clients. Attrition levels also remained high, between 25-40 per cent, as demand for
trained talent outpaced supply.
As export revenues from ITES-BPO grew from US $ 2.5 billion in year 2002-03 to US $
3.6 billion in years 2003-04, a year-on-year growth of 44 per cent was achieved. In year
2003-04, ITES-BPO exports accounted for over 27 per cent of the total export revenue
earned by the Indian IT-ITES industry. The value of ITES-BPO exports from India is
expected to exceed US $ 5 billion mark in the year 2004-05.
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The Indian IT success story has also highlighted India 's attractiveness as an investment
destination – also beyond the IT sector. Another key impact of the global sourcing model
popularized by the growth of IT-ITES has been the reversal of the brain drain – as people
of Indian origin (who went to pursue careers abroad), as well as young expatriates, are
now attracted to work in India.
Indian IT-ITES growth has had a significant multiplier effect on the Indian economy.
Apart from the direct impact on national income and employment, the sector has also
contributed to the growth of several ancillary industries, a rise in direct-tax collection and
an increase in consumer spend due to the significantly higher disposable incomes.
The rapid growth of ITES-BPO and the IT industry as a whole has made a deep impact
on the socio-economic dynamics of the country. The sector has risen to become biggest
employment generator with the number of jobs added almost doubling each year, has
spawned a number of ancillary businesses such as transportation, real estate and catering,
and has contributed to a rising class of young consumers with high disposable incomes.
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COMPANY PROFILE
Shiv Nadar
Chairman and CEO
HCL Technologies Ltd.
Ajai Chowdhry
Chairman and CEO
HCL Infosystems Ltd.
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HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in
1976. For over quarter of a century, HCL have developed and implemented solutions for
multiple market segments, across a range of technologies in India. HCL have been in the
forefront in introducing new technologies and solutions.
HCL Infosystems (HCLI) draws it's strength from 29 years of experience in handling the
ever changing IT scenario, strong customer relationships, ability to provide the cutting
edge technology at best-value-for-money and on top of it, an excellent service & support
infrastructure.
Today HCL is country's premier information enabling company. It offers one-stop-shop
convenience to its diverse customers having an equally diverse set of requirements. Be it
a large multi-location enterprise, or a small/medium enterprise, or a small office or a
home, HCLI has a product range, sales & support capability to service the needs of the
customer.
Last 29 years apart from knowledge & experience have also given us continuity in
relationship with the customers, thereby increasing the customer confidence in us.
Their strengths can be summarized as:
Ability to understand customer's business and offer right technology
Long standing relationship with customers
Pan India support & service infrastructure
Best-vale-for-money offerings
Technology Leadership
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HCL Infosystems is known to be the harbinger of technology in the country. Right from
their inception HCL have attempted to pioneer the technology introductions in the
country either through their R&D or through partnerships with the world technology
leaders.
Using their own R&D, HCL have
Created their own UNIX & RDBMS capability (in 80s)
Developed firewalls for enterprise & personal system security
Launched their own range of enterprise storage products
Launched their own range of networking products
HCL strive to understand the technology from the view of supporting it post installation
as well. This is one of the key ingredients that go into their strategic advantage.
HCL Infosystems has to its claim several technology pioneering initiatives.
Some of them are:
Country's first Desktop PC - BusyBee in 1985
Country's first branded home PC - Beanstalk in 1995
Country's first Pentium 4 based PC at sub 40k price point
Country's first Media Center PC
Guiding Principles
Vision Statement
"Together we create the enterprises of tomorrow"
Mission Statement
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"To provide world-class information technology solutions and services to enable HCL’s
customers to serve their customers better"
Quality Policy
"We deliver defect-free products, services and solutions to meet the requirements of
HCL’s external and internal customers, the first time, every time"
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HCL’s Objectives
Management Objectives
To fuel initiative and foster activity by allowing individuals freedom of action and
innovation in attaining defined objectives.
People Objectives
To help people in HCL Infosystems Ltd. share in the company's successes, which they
make possible; to provide job security based on their performance; to recognize their
individual achievements; and help them gain a sense of satisfaction and accomplishment
from their work.
Core Values
We shall uphold the dignity of the individual
We shall honor all commitments
We shall be committed to Quality, Innovation and Growth in every endeavor
We shall be responsible corporate citizens
Philosophy of Quality
"We deliver defect-free products, services and solutions to meet the requirements of
HCL’s external and internal customers, the first time, every time."
To exist as a market leader in a globally competitive marketplace, organizations need to
adopt and implement a continuous improvement-based quality policy.
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One of the key elements to HCL's success is its never-ending pursuit of superior quality
in all its endeavors.
HCL Infosystems believes in the Total Quality Management philosophy as a means for
continuous improvement, total employee participation in quality improvement and
customer satisfaction. Its concept of quality addresses people, processes and products.
Over the last 20 years, we have adapted to newer and better Quality standards that helped
us effectively tie Quality with Business Goals, leading to customer and employee
satisfaction.
Quality at HCL Infosystems Ltd.
The history of structured quality implementation in HCL Infosystems began in the late
1980s with the focus on improving quality of its products by using basis QC tools and
Failure Reporting and Corrective Active Systems (FRACAS). We also employed
concurrent engineering practices including design reviews, and rigorous reliability tests
to uncover latent design defects.
In the early 90s, the focus was not merely on the quality of products but also the process
quality systems. HCL’s manufacturing unit at NOIDA was certified initially to ISO
9002:1994 by BVQI in 1994 and later on to ISO 9001:1994 in 1997. As of now, all
HCL’s manufacturing units are certified by BVQI as per ISO 9001:2000
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In early 1995, a major quality initiative was launched across the company based on Philip
B. Crosby's methodology of QIPM (Quality Improvement Process Management). This
model was selected to because it considered the need and commitment by an organization
to improve but more importantly, the individual's need towards better quality in his
personal life.
Under HCL’s Quality Education System program, we train HCL’s employees on the
basic concepts and tools of quality. A number of improvement projects have been
undertaken by HCL’s employees, whereby process deficiencies and bottlenecks are
identified, and Corrective Action Projects (CAPs) are undertaken. This reduces defect
rates and improves cycle times in various processes, including personal quality.
We have received MAIT's 'Level II recognition for Business Excellence' for HCL’s
initiatives in the Information Technology Industry, adding another commendation to
HCL’s fold. MAIT's Level II recognition is based on the 'European Foundation for
Quality Management' (EFQM), for gaining quality leadership and business
competitiveness.
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HCL’s certifications / awards in 2003 include ISO 9001-2000 by BVQI for HCL’s
InfoStructure Services and award of First Prize by ELCINA (Electronic Component
Industries Association) for Quality, 2002-03. The ELCINA award criterion considers two
aspects. (1) Enablers (Leadership & Management commitment, Resource Management,
Product Realization, Measurement Analysis & Improvement) and Results (Product
Quality, Customer / Stake holder satisfaction, Business results).
The tryst for continuous quality improvement is never-ending in HCL Infosystems. We
always strive to maintain high quality standards, which help us fulfill HCL’s mission to
provide world-class information technology solutions and services, to enable HCL’s
customers to serve their customers better.
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Alliances & Partnerships
To provide world-class solutions and services to all HCL’s customers, we have formed
Alliances and Partnerships with leading IT companies worldwide.
HCL Infosystems has alliances with global technology leaders like Intel, AMD,
Microsoft, Bull, Toshiba, Nokia, Sun Microsystems, Ericsson, nVIDIA, SAP, Scansoft,
SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus,
Duplo, Samsung and Novell.
These alliances on one hand give us access to best technology & products as well
enhancing HCL’s understanding of the latest in technology. On the other hand they
enhance HCL’s product portfolio, and enable us to be one stop shop for HCL’s
customers.
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ABOUT HCL
In the early 70’s, a group of young, enthusiastic and ambitious technocrats embarked
upon a venture that would make their vision of IT revolution in India a reality. Shiv
Nadar and five of his colleagues got together and in 1975, setup a new company called
Micro comp. To start with they decided to capitalize on their marketing skill Micro comp
marketed calculators and within a few months of starting operations, company was
outselling its major competitors. In 1976, Micro comp approached UPSEC (Uttar Pradesh
State Electronics Corporation) for help to setup a computer company. Impressed by their
technical and marketing competence, UPSEC agreed to setup a joint venture.
On the August 11, 1976 Hindustan Computers Limited was incorporated as a joint
venture between entrepreneurs and UPSEC and with an initial equity of Rs. 1.83 Lakhs.
\
Ajai Chowdhry
Chairman and CEO, HCL Infosystems Ltd.
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Source: www.hclinfosystem.com
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HCL – A Snapshot
The HCL Enterprise comprises two companies listed in India, HCL Technologies and
HCL Infosystems. HCL Technologies is the IT and BPO services arm focused on global
markets, while HCL Infosystems is the IT hardware and system integration arm focused
on the Indian market. Together, these entities have uniquely positioned HCL as an
enterprise with service offerings spanning the IT Services and Product spectrum.
Source: www.hcl.in
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The range of offerings span Product Engineering and Technology Development,
Application Services, BPO Services, Infrastructure Services, IT Hardware, Systems
Integration, and Distribution of Technology and Telecom products in India.
HCL Infosystems Ltd. (HCL Infosystems) has now become India’s one of big technology
integration company. Over the years, HCL Infosystems has positioned its business
operations to fulfill its vision statement ‘Together we create enterprise of tomorrow’. The
overarching theme for the company’s swift progression into the software and service
arena, in India and globally, is evolving. Signifying a state of constant growth, the evolve
theme is visible in the many ways that HCL Infosystems has undergone a metamorphosis
into becoming a complete IT solutions company.
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Source: www.hcl.in
The menu of HCL Infosystems global services broadly covers IT consulting and
professional service in the area of vertical applications, technology integration, ERP
implementation and software development. This also includes a complete portfolio of
systems and network services for development. This also includes a complete portfolio of
systems and network services for Financial Management, Helpdesks, System Supports
and network and Internet Implementation. HCL Infosystems global customers include
Samsung, Govt. of Singapore and AMAL Insurance, Jurong Port in Singapore,
Malaysian’s BSN Commercial Bank, SIA, DBS Bank, Maybank Life Assurance, Charted
Semiconductors, Asia Matsushita and Shell Malaysia. Some of its global customers in
government sector are Inland Revenue Authority of Singapore, Civil Aviation Authority
of Singapore, Singapore Power, Ministry of Education, Health and National
Development, Telecom Authority of Singapore and Penang State Govt.
HCL Infosystem’s chosen platform of total technology integration lends itself to some
very significant alliances with global leaders. Among it’s partner are HP for high end
AISCE/UNIX services and workstation and HP open view network management
solution, Intel for PC and PC server building blocks, Microsoft, Novell, SCO AG
Solutions, Red Hat, Linux, Samsung, Pivota for CRM solution and ORACLE Sybase and
Informix for RBMS platform.
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Key Business Associates of HCL
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ABOUT HCL FRONTLINE DIVISION
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The HCL Frontline Division of HCL Infosystems Ltd. focuses on providing solutions and
value-added services to small and medium corporate, the small office/home office and
the homebuyer. Involved in marketing and distributing national and international brands
of computer systems and peripherals, the Frontline Division evolves innovative channel
strategies to widen its market reach, and offers value added support services to users. The
extensive distribution network established by the Division encompasses more than 800
resellers and close to 300 retail outlets across 300 cities. Using its unmatched strength in
distribution, Frontline has big plans to increase penetration of notebooks in SOHO/SME
segments. The organization plans to use its already established retail network in big way
for this. It has proved its distribution might in the PC segment already where it has
pioneered on several fronts, with retail being just one.
The Division's singular mission has been to continuously anticipate and explore
technologies that have emerged as strong trends and established market standards in the
computing world globally, and bringing these to the Indian user in as short a time as
possible. Widely recognized for opening up several frontiers of the world of computing to
Indian users, the Division has partnered Dragon Systems, Inc., the world's leading
supplier of speech and language technology, to introduce speech recognition tools in the
country.
In Kerala the Frontline Division is represented by its state franchisee Team Frontline Pvt.
Ltd.. It is an ISO 9001 certified company and an extremely customer focused IT provider.
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6 S Offerings for Business Empowerment of HCL Infosystems
Need
In the emerging net economy, IT infrastructure Plays the role of a Powerful business
enabler to improve your business processes, to help you focus on your goals and
strategies and more importantly, to help you serve your customers better. IT
Infrastructure demands constant change latest technology, reliable operations and high
availability. Leaders like you, in the process of selecting the best of breed in technology,
require integrating different solutions from various vendors. Thus a situation where you
need a strong reliable and trusted partner committed to deliver beyond just services.
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Advantage
Staying competitive in today’s dynamic business environment means finding new ways
to reduce costs while maximizing the value of your technology and personal resources.
More than ever, your ability to "do more with less" determines how successful your
organization will be. That’s why HCL Infosystems helps you achieve. By channeling our
in-depth expertise gained from over 28 years of IT Domain experience. We provide a full
bandwidth of services specifically designed to meet your complete IT needs. And as a
single window for completing business solutions wherever you are located...
We make IT possible to save money...WE TELL YOU WHERE as well as time ...WE
SHOW YOU HOW
The 6 S
Solutions
The one stop shop solution center for all your IT needs, customized to meet and scale
with your unique Business Needs.
Services
A range of value added services in IT infrastructure operations and management.
Support
Pan-India footprint of support and logistics locations. Over 260 Direct service support
locations. Technically sound workforce of over 1700 certified professionals.
Standards
World Class Quality standards maintained for PPP (People, Processes & Performance).
Alliance with global technology leaders.
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Savings
We help you find new ways to reduce costs & "do more with less" by maximizing the
value of your technology and personal resources, thereby reducing your total cost of
ownership (TCO).
Satisfaction
Complete Satisfaction for the customers through the HCL 6S offering that enables one to
maximize system uptime through rapid response and resolution services, thereby
optimizing your IT investments.
HCL Production Facility
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Achievements
1976
- Foundation of the Company laid
- Introduces microcomputer-based programmable calculators with wide
acceptance in the scientific / education community
1977
- Launch of the first microcomputer-based commercial computer with a
ROM -based Basic interpreter
- Unavailability of programming skills with customers results in HCL
developing bespoke applications for their customers
1978 - Initiation of application development in diverse segments such as textiles,
sugar, paper, cement, transport
1980 - Formation of Far East Computers Ltd., a pioneer in the Singapore IT
market, for SI (System Integration) solutions
1981 - Software Export Division formed at Chennai to support the bespoke
application development needs of Singapore
1983 - HCL launches an aggressive advertisement campaign with the theme ' even
a typist can operate' to make the usage of computers popular in the SME
(Small & Medium Enterprises) segment. This proposition involved menu-
based applications for the first time, to increase ease of operations. The
response to the advertisement was phenomenal.
- HCL develops special program generators to speed up the development of
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applications
1985
- Bank trade unions allow computerization in banks. However, a computer
can only run one application such as Savings Bank, Current account, Loans
etc.
- HCL sets up core team to develop the required software - ALPM
(Advanced Ledger Posting Machines). The team uses reusable code to
reduce development efforts and produce more reliable code. ALPM
becomes the largest selling software product in Indian banks
- HCL designs and launches Unix- based computers and IBM PC clones
- HCL promotes 3rd party PC applications nationally
1986
- Zonal offices of banks and general insurance companies adopt
computerization
- Purchase specifications demand the availability of RDBMS products on
the supplied solution (Unify, Oracle). HCL arranges for such products to be
ported to its platform.
- HCL assists customers to migrate from flat-file based systems to RDBMS
1991 - HCL enters into a joint venture with Hewlett Packard
- HP assists HCL to introduce new services: Systems Integration, IT
consulting, packaged support services (basicline, teamline)
- HCL establishes a Response Centre for HP products, which is connected to
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the HP Response Centre in Singapore.
- There is a vertical segment focus on Telecom, Manufacturing and
Financial Services
1994
- HCL acquires and executes the first offshore project from IBM Thailand
- HCL sets up core group to define software development methodologies
1995
- Starts execution of Information System Planning projects
- Execution projects for Germany and Australia
- Begins Help desk services
1996
- Sets up the STP (Software Technology Park) at Chennai to execute
software projects for
international customers
- Becomes national integration partner for SAP
1997- Kolkata and Noida STPs set up
- HCL buys back HP stake in HCL Hewlett Packard
1998 - Chennai and Coimbatore development facilities get ISO 9001 certification
1999
- Acquires and sets up fully owned subsidiaries in USA and UK
- Sets up fully owned subsidiary in Australia
- HCL ties up with Broadvision as an integration partner
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2000
- Sets up fully owned subsidiary in Australia
- Chennai and Coimbatore development facilities get SEI Level 4
certification
- Bags Award for Top PC Vendor In India
- Becomes the 1st IT Company to be recommended for latest version of ISO
9001 : 2000
- Bags MAIT's Award for Business Excellence
- Rated as No. 1 IT Group in India
2001
-Launched Pentium IV PCs at below Rs 40,000
-IDC rated HCL Infosystems as No. 1 Desktop PC Company of 2001
2002
-Declared as Top PC Vendor by Dataquest
-HCL Infosystems & Sun Microsystems enters into a Enterprise Distribution
Agreement
- Realigns businesses, increasing focus on domestic IT, Communications &
Imaging
products, solutions & related services
2003 - Became the first vendor to register sales of 50,000 PCs in a quarter
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- First Indian company to be numero uno in the commercial PC market
- Enters into partnership with AMD
- Launched Home PC for Rs 19,999
- HCL Infosystems' Info Structure Services Division received ISO
9001:2000 certification
- Launches Infiniti Mobile Desktops on Intel Platform
- Launched Infiniti PCs, Workstations & Servers on AMD platform
2004- 1st to announce PC price cut in India, post duty reduction, offers Ezeebee
at Rs. 17990
- IDC India-DQ Customer Satisfaction Audit rates HCL as No.1 Brand in
Desktop PCs
- Maintains No.1 position in the Desktop PC segment for year 2003
- Enters into partnership with Port Wise to support & distribute security &
VPN solutions in
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India
- Partners with Microsoft & Intel to launch Beanstalk Neo PC
- Becomes the 1st company to cross 1 lac unit milestone in the Indian
Desktop PC market
- Partners with Union Bank to make PCs more affordable, introduces lowest
ever EMI for PC
in India
- Launched RP2 systems to overcome power problem for PC users
- Registers a market share of 13.7% to become No.1 Desktop PC company
for year 2004
- Crosses the landmark of $ 1 billion in revenue in just nine months
2005
- HCL completes buy out of JVs with Deutsche Bank and British Telecom
- Boeing inks 787 Dreamliner design deal with HCL
- HCL infrastructure ranked No.1 service provider - CMP
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MARKETING STRATEGY
”Marketing Strategy can be define as a businesses approach to marketing its products or
services expresses in broad terms, which forms the basis for developing a marketing
plan”. In other words, Marketing Strategy is nothing but a combination of decision
bearing on various aspects of marketing mix elements. There are basically five P’s of
marketing which play a vital role in marketing of a product and they are Product, Price,
Place, Promotion and Packaging. HCL concentrated on all aspects that’s the reason why
HCL has a very good and efficient market not only in Ghaziabad but also in other regions
of India.
Product Planning
HCL take good and effective decision on the faith of their existing product along with
their future products. This is a continuous process, which is taken into consideration by
HCL’s top management.
HCL have an R&D Department, which focuses on to the continuous innovation in order
to make HCL the best in today’s cutthroat competition
Management Information System (MIS)
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HCL takes into consideration every bit of information and have a very strong MIS. In
order to have the best knowledge about the market they study the market and to be the
best among the competitors they study all the market players thoroughly like wise they
collect the information regarding product, price, promotional strategy, etc. of the
competitor
Market Segmentation
Market Segmentation means dividing the market into distinct group of buyers keeping in
mind demographics, psychographics and behavioral differences among the buyers. Who
might require different products or marketing mixes?
A market segment consists of a group of people who share similar set of wants. A
segment is partly a fiction, in that not everyone wants exactly the same thing.
HCL has classified people into the following segments as per their living standards:
Lower Middle Class
Middle Class
Upper Middle Class
Higher Class
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Pricing Policies
India a country where the price of a product can define its faith in the market, hence we
can say that India is a very price sensitive market.
Price refers to the value of products attributes. Expressed in monetary terms price is the
value, which a customer pays to adhere or to avail a service or utility or a product
At HCL, pricing policy decisions are taken by the top management after following the
prices of the components and prices quoted by the competitors. After this a parallel
pricing policy is developed in which:
Bundles are created and products are marketed accordingly in every region.
Profit margins are kept into consideration, etc.
HCL gives 6 to 8 percent margin to their Channel Partners or Demo Centers, and
company gets X% profit in return.
HCL’s main objective is service rather than profit. No doubt there is profit but pricing
policy is just to meet minimum margin to have a competitive edge over the assembled
PCs market.
HCL believes in “wealth maximization rather than profit maximization”.
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HOME PCS
HCL Beanstalk
HCL recommends Windows® XP Professional
The all-new BeanStalk Series, where performance is rivaled only with
elegance of design. Customer gets superior technology and great value for
money all fused into one. It comes with the super-speed Intel® processor, plus
SD RAM and Ultra ATA Hard Disk that gives it incredible speed.
What's more, it is upgrade friendly and so virtually future-proof. Manufactured at HCL
Infosystems' state-of-the-art ISO 9001 certified plant, it is designed to outperform every
other Home Computer customer have ever seen or heard about. And with more than 250
Support providers across the country, its widespread network ensures excellence in
Customer Care. So go ahead and enjoy the wonder that is HCL BeanStalk, and watch, it
will amaze customer for years to come.
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It is faster than the fastest home computer. The HCL BeanStalk comes equipped with the
lightening fast Intel® Pentium® 4 processor which means customer can now get mind
blowing multimedia performance from customers computer. With its high performance
processor, it brings customer the Internet like no other computer can. So get ready to
experience 3D graphics, virtual reality and realistic audio-video, like never before.
The HCL BeanStalk with Intel® Pentium® 4 processor, the centre of customers digital
world, is designed to meet not just customers today's computing requirements, but also
the needs of customers future. So bring home the HCL BeanStalk today and stay ahead of
the rest of the world.
HCL Ezeebee
HCL recommends Windows® XP Professional
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The HCL Ezebee is the complete All-in-one PC brought to you by India's
No. 1 IT Brand, HCL. With amazing performance and prices lower than
other assembled PCs, the HCL Ezeebee is the most affordable Quality PC.
HCL recommends Windows® XP Professional
HCL Ezeebee 4781 Celeron D 310
HCL Ezeebee 8731 Sempron 2500+
HCL Ezeebee 8731 Athlon64 3000+
HCL Ezeebee 4781 P4P 506
HCL Ezeebee 4781 P4P 524
HCL Ezeebee 4951 P4P 630
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HCL Leaptops
HCL recommends Windows® XP Professional
HCL introduces Leaptops with unmatched mobile power. Designed to provide superior
performance, flexible connectivity and high mobility, these notebooks offer a new level
of freedom and functionality to bring you the ultimate in personal productivity.
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PERFORMANCE APPRAISAL
OBJECTIVE OF PERFORMANCE APPRAISAL
A good Performance Appraisal has following objectives: -
Help employee overcome his weakness & improve ones his strengths & thus
enable him to improve his performance & that of the Deptt.
Generate adequate feedback & guidelines form the repotting officers to the
employee.
Contribution to the growth & development of the employee through helping
him in realistic goal setting.
Help in creating a desirable culture & traditions in the organization.
Help identifying employees for the purpose of motivating, training &
developing them.
Generate significant, relevant, free & valid information about employees.
Thus, a good Performance Appraisal & review system should primarily focus
an employee development.
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DEFINED
Performance appraisal...
Measuring,
Evaluating, and
Influencing an employee’s job-related attributes, behaviors and outcomes.
Historically, performance appraisal was linked to material outcomes with the assumption
that a cut in pay, or a rise, should provide the required impetus for an employee to either
improve or continue to perform well. ...a structured appraisal system is more likely to be
lawful, fair, defensible, valid and reliable performance appraisal a structured and formal
interaction between a subordinate and his/her supervisor
Let's begin our discussion of performance appraisal by defining the concept.
Performance appraisal is a formal system of measuring, evaluating, and influencing an
employee’s job-related attributes, behaviors and outcomes. The objective is to to
determine how productive an employee is and/or to determine if an employee’s
productivity can be improved. As such, performance appraisals serve an important
purpose in managing people and meeting company goals.
The tendency to make judgments about oneself or about people one is working with,
appears to be both inevitable and universal. However, without a carefully structured
system of appraisal and evaluation, people will judge the performance of coworkers
-- subordinates, superiors, and peers -- arbitrarily and informally. This tendency to judge,
without a systematic procedure, has the potential to create serious motivational, ethical
43
and legal problems within the firm. On the other hand, a structured appraisal system is
more likely to be lawful, fair, defensible, valid and reliable.
What is the role of performance appraisal?
Performance appraisals telling subordinates how they are doing, and suggesting needed
changes in behaviors, attitudes, skills, or job knowledge. Effective appraisal systems
provide both evaluation and feedback the main aim of the evaluation is to identify
performance gaps feedback is necessary to inform employee about those performance
gaps One of the functions of performance appraisals is to ensure that people are
accountable for their organizational
We have seen from previous discussions, that people are one of a company's most
valuable assets. While most assets depreciate over time, people, viewed as assets, may
actually appreciate. One of the manager's major responsibilities is to improve and update
the knowledge and skills of employees -- appreciation of assets. Performance appraisal
plays a significant role as a tool and technique of organizational development and growth.
In essence, effective appraisal systems provide both evaluation and feedback.
The main aim of the evaluation is to identify performance gaps -- when
performance does not meet the organizational standards -- whereas feedback is necessary
to inform employee about those performance gaps. From the employee's perspective,
performance appraisal informs them about what is required of them in order to do their
jobs, it tells them how well they have achieved those objectives and helps them take
corrective action to improve their performance, and, finally, it may reward them for
meeting the required standards.
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The firm, on the other hand, needs a performance appraisal system in order to
establish principles of managerial accountability. Clearly, where employees are given
responsibilities and duties, they need to be held accountable. One of the functions of
performance appraisals is to ensure that people are accountable for their organizational
responsibilities.
Perhaps the most significant benefit of performance appraisals is the opportunities they
provide supervisors and subordinates to have one-on-one discussions of important work
issues. During appraisals, subordinates and supervisors can focus on work activities and
goals, identify and correct existing problems, and encourage better future performance.
Performance Appraisal and Motivation
Motivational research has recognized the power of recognition as an incentive
(see Maslow and the Expectancy Theory of Motivation). Performance appraisals provide
employees with recognition for their work efforts. The appraisal system provides the
supervisor with an opportunity to indicate to employees that the organization is interested
in their performance and development. This recognition can have a positive motivational
influence. on the individual's sense of worth, commitment and HCL onging.
Performance Appraisal and Training and Development
Performance appraisals identify performance gaps. As such, they provide an
excellent opportunity for a supervisor and subordinate to recognize and agree upon
individual training and development needs. Performance appraisal discussion may
identify the presence or absence of work skills. Further, the need for training can be made
more relevant if attaining the requisite job skills is clearly linked to performance
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outcomes. Consolidated appraisal data can also help form a picture of the overall
organizational training requirements.
Performance Appraisal and Recruitment
Recruitment and selection procedures need to be evaluated. Appraisal data can be
used to monitor the success of a firm's recruitment and selection practices. From this
data, the firm can determine how well employees who were hired in the past are
performing.
Performance Appraisal and Employee Evaluation
Employee evaluation is a major objective of performance appraisal. Given the
major functions of management -- planning, organizing, leading and controlling it is clear
that evaluations (controlling) need to be done. At its most basic level, performance
appraisal is the process of examining and evaluating the performance of employees.
However, the need to evaluate is also a source of tension, as evaluative and
developmental priorities appear to clash. Some management experts have argued that
appraisal cannot serve the needs of evaluation and development at the same time.
Performance Appraisal and Total Quality Management (TQM)
With the advent of TQM (Total Quality Management) and the extensive use of
teams, traditional performance appraisal systems have come under some criticism. For
example, rather than motivating employees, conflict may be created when appraisals are
tied to merit pay and when that merit pay is based on a forced ranking.
W. Edwards Deming, the founder of total quality management (TQM) has long been
associated with the view that performance appraisals ought to be eliminated. Many TQM
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proponents claim that performance appraisals are harmful. However, there is no doubt
that, without safeguards such as appropriate design, adequate administrative support,
comprehensive job analysis / description and training for appraisers, conventional
performance appraisal processes risk becoming just another of the many bureaucratic
rituals supervisors and subordinates must endure.
Performance Appraisal Summary
Performance appraisal, while enabling a manager to identify the training needs of
employees, and evolving training plan for them, also, serves to meet other objectives.
Performance appraisal satisfies the psychological needs individuals have to know how
they are performing their job and increases
Employees’ job satisfaction and morale by letting them know that the manager is
interested in their progress and development. Systematic performance appraisal also
provides the firm and the employee a careful evaluation, rather than a snap judgment of
an employee's performance. Many firms use performance appraisals to plan placements
and transfers and to provide input into decisions regarding salary increases, promotions,
and transfers. Finally, their superiors may use performance appraisals as a basis for the
coaching and counseling of individual employees by their superiors.
Performance appraisals provide a means for informing employees of the quality of
their work and identifying areas of performance that may need improvement
assessing the staff member's adequacy to perform tasks help supervisors maintain
control of the work and make the most effective use of their staff resources a
supportable basis for making personnel decisions
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To summarize the uses of performance appraisal:
Performance improvement
Compensation
Placement
Training & development needs assessment
Career planning
Job design error detection
Detection of external factors influencing job performance
o Performance deficiencies may be due to family or other pressures before
looking at specifics about performance appraisal programs, it might be
useful to examine some deficiencies of existing programs.
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Performance Measures
OBSERVATION
DIRECT INDIRECT
Comparative Evaluation Methods
Ranking Methods
Forced Distributions
Point Allocation Method
Paired Comparisons
Rating Scales Summary
As we indicated above, formal appraisal systems are necessary in order to
introduce objectivity into the evaluation process. Rating scales provide appraisers a fairly
high degree of structure. Using rating scales, employee traits and characteristics are rated
on a scale that usually has several points ranging from "poor" to "excellent". For
example, characteristics assessed might include cooperation, communications ability,
initiative, punctuality and technical competence. It is, of course, important that the traits
being evaluated be job-related. In designing the scale, the human resource specialist must
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Rater sees the actual performance
Rater evaluates substitutes (constructs) for actual performance
o Less accurate
make reference to the appropriate job descriptions. Use of inappropriate traits could result
in legal action on the grounds of discrimination.
Using a rating scale, the rater provides a subjective evaluation of an employee's
performance along a scale from high to low. Since the method provides a numerical value
for each dimension or trait, an overall average can be calculated for each employee. The
rating scale is inexpensive and easy to administer.
Advantages of Rating Scales
The greatest advantage of rating scales is that they are structured and
standardized. Thus, ratings can be easily compared and contrasted. Using rating scales,
each employee is rated according to the same basic appraisal process. The process
encourages equality in treatment for all employees. Further, rating scales are easy to
construct, to use and to understand.
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Disadvantages of Rating Scales
Rater biases
Specific performance criteria may be omitted to make form applicable to a variety
of jobs in the organization
Descriptive evaluations are subject to individual interpretation
Even though rating scales ought to be constructed with reference to the relevant job
descriptions, questions must be asked about whether or not the selected traits are relevant
to the jobs of all the appraises? Often, when efforts are made to standardize an appraisal
form across the entire organization, certain traits that are included will have a greater
relevance for some jobs than others. For example, the trait "initiative" might not be very
important in a job that is tightly defined and rigidly structured. In such cases, a low
appraisal rating for initiative may not mean that an employee lacks initiative. Rather, it
may reflect that fact that an employee has few opportunities to use and display that
particular trait.
In efforts to standardize the rating instrument, it is possible that factors that an
employee's performance may depend on have not been included in the selected list of
relevant traits. Thus, some employees may end up with ratings that do not fairly reflect
their effort or value to the organization.
Selective perception is the human tendency. Although rating scales are designed to
lend objectivity and empiricism to the evaluation process, it is difficult to eliminate
problems of selective perception (biases and rater inconsistencies). Similarly, the
reliability of rating instruments may be questioned if different appraisers would interpret
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the rating traits (such as, "punctuality") differently. What exactly does "HCL ow average
skill" mean? Different appraisers could very likely interpret this "score" differently.
Some errors are errors of perception. Other errors may in fact be deliberate. A very
common rating error is that of central tendency. An appraiser, wary of confrontations or
repercussions, may be tempted to give too many passive, middle-of-the-road ratings.
Thus the spread of ratings for all employees tends to be clumped around the middle of the
scale.
Narrative Essay
The essay method of performance appraisal requires the appraiser to prepare a
written statement about employees being appraised. The essay describes specific
strengths and weaknesses in job performance. Further, the essay may suggest actions the
employee might take in order to remedy problem areas identified in the appraisal. The
appraiser alone may write the essay, or it be prepared with input from the employee.
While the rating scale is structured and confining, the narrative essay allows the appraiser
to examine any relevant issue, attribute, or performance. Thus, appraisers are able to
place emphasis on whatever issues or attributes they feel are appropriate. In this sense,
the narrative essay is open-ended and flexible.
Effective Appraisal system (Must have)
Reliability and validity
Job - relatedness
Standardization
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Practical viability ability
Legal Sanction
Training to appraisers
Open communication
Reasons for Performance Appraisal Failures
Where performance appraisal fails to work as well as it should, lack of support
from the top levels of management is often cited as a major contributing reason.
Opposition may be based on political motives, or more simply, on ignorance or disHCL
ief in the effectiveness of the appraisal process. It is crucial that top management HCL
ieve in the value of appraisal and expresses their visible commitment to it. Top managers
are powerful role models for other managers and employees. Those attempting to
introduce performance appraisal, or even to reform an existing system, must be acutely
aware of the importance of political issues and symbolism in the success of such projects.
Fear of Failure
There is a stubborn suspicion among many appraisers that a poor appraisal result
tends to reflect badly upon them also, since they are usually the employee's supervisor.
Many appraisers have a vested interest in making their subordinates "look good" on
paper. When this problem exists (and it can be found in many organizations), it may point
to a problem in the organization culture. The cause may be a culture that is intolerant of
failure. In other words, appraisers may fear the possibility of repercussions - both for
themselves and the appraisee.
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That accuracy in performance appraisal is impossible to achieve, since people
play social and political games, and they protect their own interests. "No savvy
manager...” says Longenecker, "... is going to use the appraisal process to shoot himself
or herself in the foot." No matter what safeguards are in place, "... when you turn
managers loose in the real world, they consciously fudge the numbers." What
Longenecker is saying is that appraisers will, for all sorts of reasons, deliberately distort
the evaluations that they give to employees.
Indeed, surveys have shown that not only do many managers admit to a little
fudging, they actually defend it as a tactic necessary for effective management. The
fudging motives of appraisers have, at times, a certain plausibility. For instance, a
supervisor who has given an overly generous appraisal to a marginal performer might
claim that their "legitimate" motive was the hope of encouraging a better performance.
On the other hand, fudging motives can a lot less admirable and sometimes
devious: the appraiser who fudges to avoid the possibility of an unpleasant confrontation,
the appraiser who fudges to hide employee difficulties from senior managers, the
appraiser who fudges in order to punish or reward employees.
Judgment Aversion
Many people have a natural reluctance to "play judge" and create a permanent
record, which may affect an employee's future career. This is the case especially where
there may be a need to make negative appraisal remarks. Training in the techniques of
constructive evaluation (such as self-auditing) may help. Appraisers need to recognize
that problems left unchecked could ultimately cause more harm to an employee's career
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than early detection and correction. Organizations might consider the confidential
archiving of appraisal records more than, say, three years old.
Employee Participation
Employees should participate with their supervisors in the creation of their own
performance goals and development plans. Mutual agreement is a key to success. A plan
wherein the employee feels some degree of ownership is more likely to be accepted than
one that is imposed. This does not mean that employees do not desire guidance from their
supervisor; indeed they very much do.
Performance Management
One of the most common mistakes in the practice of performance appraisal is to perceive
appraisal as an isolated event rather than an ongoing process. Employees generally
require more feedback, and more frequently, than can be provided in an annual appraisal.
While it may not be necessary to conduct full appraisal sessions more than once or twice
a year, performance management should be viewed as an ongoing process.
Frequent mini-appraisals and feedback sessions will help ensure that employees
receive the ongoing guidance, support and encouragement they need. Of course many
supervisors complain they don't have the time to provide this sort of ongoing feedback.
This is hardly likely. What supervisors really mean when they say this is that the
supervision and development of subordinates is not as high a priority as certain other
tasks.
In this case, the organization may need to review the priorities and values that it
has instilled in its supervisory ranks. After all, supervisors who haven't got time to
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monitor and facilitate the performance of their subordinates are like chefs who haven't
got time to cook, or dentists who are too busy to look at teeth. It just doesn't make sense.
If appraisal is viewed as an isolated event, it is only natural that supervisors will come to
view their responsibilities in the same way. Just as worrying, employees may come to see
their own effort and commitment levels as something that needs a bit of a polish up in the
month or two preceding appraisals.
Performance Appraisal Bias Effects
Gabris & Mitchell have reported a disruptive bias in performance appraisal
known as the Matthew Effect. It is named after the Matthew of biblical fame who wrote,
"To him who has shall be given, and he shall have abundance: but from him who does
not have, even that which he has shall be taken away." In performance appraisal, the
Matthew Effect is said to occur where employees tend to keep receiving the same
appraisal results, year in and year out. That is, their appraisal results tend to become self-
fulfilling: if they have done well, they will continue to do well; if they have done poorly,
they will continue to do poorly. He Matthew Effect suggests that no matter how hard an
employee strives, there past appraisal records will prejudice their future attempts to
improve.
There is other research to support the theory that poor performers might not be
given a fair chance to improve. A study of supervisors in nearly 40 different
organizations found that subordinates tend to be divided into two groups: in-groupers and
out-groupers. This study, by Heneman, Green Berger & Anon you (1989) reported that in
groupers are subordinates who seem to be favored by their supervisors. In their
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relationship with the boss, they enjoy "a high degree of trust, interaction, support and
rewards."
On the other hand, out groupers don't do as well. They appear to be permanently
out of favor and are likely to bear the brunt of supervisory distrust and criticism. The
effect is therefore similar to the horns and halo effect; supervisors tend to judge
employees as either good or bad, and then seek evidence that supports that opinion. It
was found that when an in grouper did poorly on a task, supervisors tended to overlook
the failure or attribute to causes such as bad luck or bad timing; when they did well, their
success was attributed to effort and ability.
But when an out grouper performed well, it was rarely attributed to their effort or
ability. And when an out grouper performed poorly, there was little hesitation it citing the
cause as laziness or incompetence. It is not clear how supervisors come to make the
distinction between in groupers and out groupers. Whatever the criteria, however, it is
clearly not objective, equitable or reliable. This bias must inevitably lead to a distortion
of the appraisal process. It must also be a source of frustration for those employees who
are discriminated against. Success. A plan wherein the employee feels some degree of
ownership is more likely to be accepted than one that is imposed. This does not mean that
employees do not desire guidance from their supervisor; indeed they very much do.
Frustration
The extent of this frustration was explored by Gabris & Mitchell. They studied an
organization with a quarterly performance appraisal system. The workforce was divided
into two groups: those who had been given high appraisal results consistently, and those
57
who had low results consistently. When the groups were asked if the appraisal system
was fair and equitable, 63 per cent of the high performers agreed, compared to only 5 per
cent of the lower performers. The groups were asked if their supervisors listened to them.
Of the high performers, 69 per cent said yes, while among the low performers, 95 per
cent said no.
Finally, when asked if their supervisors were supportive, nearly half of the high
performers agreed that they were, while none (nil, zilch, zero!) of the low performers
agreed. Of course, not everyone who gets a poor appraisal result is a victim of
supervisory bias. Nor are all supervisors prone to making the same degree of in-group
and out-group distinction. The effects discussed here are tendencies, not immutable
effects. But to some extent, it appears that certain employees may be unfairly advantaged,
while others are disadvantaged, by bias effects in the judgments of supervisors.
It is a cardinal principle of performance appraisal that employees should have the
chance to improve their appraisal results - especially if their past results have not been so
good. It is a very serious flaw in the process of appraisal if this principle is denied in
practice. There are reasonable steps, which can be taken to limit the effects of supervisory
bias.
Awareness Training
The first line of defence lies in raising awareness of the problem. Supervisors
need to be informed of the types of subtle bias that can interfere with their performance
as appraisers. They need to understand that the in-group / out-group bias, for instance,
reduces the morale and motivation of their subordinates.
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Developing Poor Performers
Incentives, financial or non-financial, may offered to encourage supervisors to
make special efforts to help poor performers improve. Supervisory appraisals, for
example, might stress the importance of working with poor performers to upgrade their
performance. The possibilities are extensive.
Retention of Records
Performance appraisal results should not become a permanent part of an
employee's personnel record. Employees should not feel that their employment history
has been forever marred because of a poor appraisal result. If appraisal records are to be
retained for long periods of time, they should be securely archived and access to them
restricted. New supervisors should not be permitted to review records that are older than
a few years. Employees should have the chance to make a new impression.
Counseling, Transfer, Termination
There is always the possibility that an employee who receives poor appraisal
results is in fact a chronic poor performer of course, no employer is bound to tolerate
poor performance forever. Consistently poor appraisal results will indicate a need for
counseling, transfer or termination. The exact remedy will depend on the circumstances.
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Common Appraisal System Faults
Some of the most frequent faults employees find with performance appraisal systems are:
1. The reported evaluations tend to be non-specific (generalities cannot help an
employee make improvement)
2. The comments in the appraisal document are inconsistent with actual performance
(at least as perceived by the employees) -- the observations lack empirical
evidence
3. The meetings are handled poorly and dominated by superiors who tend to use
one-way communication
4. Little or no constructive suggestions for improvement are made during the
interview
5. Consistent with the observation that superiors frequently engage in one-way
communication, the individual employee has little or no input
6. The process is mechanical and contributes little to either the betterment of the
organization or the employee
Given the faults listed above, the process engenders hostility in the employees
Improving Appraisal Systems
The following suggestions might lead to a more rational performance appraisal process:
Ensure that all employees are subject to evaluation (from the president/manager
down)
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o People in the organization will feel more commitment to the performance
evaluation process if the supervisors who give appraisals will also be
judged
The appraisals ought to be spread out throughout the year
Supervisors faced with a pile of appraisals at any one period of time will feel
overwhelmed and will likely not do a good job because they are rushed
Legal considerations and confidentiality issues must be considered
o Policies with respect to where the appraisals will be kept and who has
access to them must be implemented
Self-evaluation should be encouraged as part of the process
o This procedure may invite disagreement
o Most people rate themselves the same or lower than their manager will
o Another benefit of self appraisal is that managers frequently don't know all
that's required to get the job done -- the manager thus learns more about the
organization by reading the employees' self-evaluation
Have peers conduct reciprocal reviews
Have subordinates evaluate their superiors
Establish a clear relationship between salary increments and performance
appraisals
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Establish a policy to determine how much of the review will be based on personal
observation and interaction, and how much will rely on input received from others
-- make sure all employees are aware of this policy
Publicize which performance appraisal methodology you intend to use:
o Management by objectives
o Essays
o Graphic rating scales
o Weighted checklists
o Behavioral anchored ratings
o Forced choices
o Critical incidents
o Rankings
o Paired comparisons
Consider using external sources of information -- customers, clients
Use performance appraisals as a chance to clarify or communicate the intent of
the employees' job descriptions
Use performance appraisals as a chance to revise job descriptions -- the interview
may make it clear that the job description is inconsistent with tasks actually
required of the employees
Include objectives for the coming year in the performance appraisals
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Follow up on the performance appraisal recommendations
360-degree Performance Appraisal: Evaluating Employees From All Angles
Traditional performance appraisals, as discussed above, can be both subjective
and simplistic. At times, they can also be deemed to be "political". In an attempt to
improve this methodology, some companies have turned to 360-degree appraisals. 360
appraisals pool feedback from a department's internal and external customers to ensure a
broader, more accurate perspective of an employee's performance. 360-degree
performance appraisal is an attempt to answer the question: "How can a supervisor
evaluate an employee he or she sees only a few hours each week?"
Using internal and external clients:-
360-degree performance appraisals offer an alternative by which organizations
may gain more useful performance information about employees. Because all
clients/customers an employee comes into contact with can conceivably have input into
the performance appraisal, this methodology can also makes them more accountable to
their customers. Using a courtroom metaphor, one could say that, rather than having a
single person play judge, a 360-degree appraisal acts more like a jury. People who
actually deal with the employee each day have an opportunity to create a pool of
information from which the appraisal is written. Internal clients may include supervisors,
subordinates, co-workers, and representatives from other departments. External
customers may include clients, suppliers, consultants and customers.
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Perceived fairness:-
Given the use of a wide variety of sources for information in the 360-appraisal
process, this method provides a broader view of the employee's performance. Frequently,
the employee on whom the appraisal is being done (the ratee) will feel that the process is
more fair.
Validity
Very often, an employee's peers know their behaviors best. Consequently,
employees cannot hide as easily in 360-degree appraisals.
Employee development
360-degree appraisal enables an employee to compare his or her own perceptions
of their work performance with the perception of others. As such, the method facilitates
employee self-development. Feedback from one's peers is more likely to lead to changed
behaviors.
Accountability to customers
A 360-degree appraisal process provides a formalized communication link
between the employee being evaluated and their customers. These people now have
feedback into the employee's performance rating. As such, the process is likely to make
the employee more accountable to his or her various internal and external customers.
Furthermore, organizations can also use this feedback to create more customer-oriented
goals for the following year.
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The raters: how many and who?
One issue employers must solve in implementing a 360-degree appraisal program is
determining how many raters should be involved. Next, the organization must decide
who should do the rating. Generally speaking, less than five raters limits the perspective
while more than ten raters is likely to make the appraisal system complex and time
consuming. A firm would be well advised to develop a workable definition of what
constitutes a peer, an internal customer, an external customer, a supervisor, etc. For
example, to be useful, the customer ought to be one who has significant interactions with
the ratee.
Some organizations permit the ratee to develop a list of key internal and external
customers that he or she interacts with. The ratee then recommends five to ten of these
individuals to serve as raters. In this process, the supervisor still retains the ultimate
responsibility for the appraisal and therefore ensures that appropriate raters are selected.
The ratee is thus prevented from stacking the deck with supportive customers. Another
option has the raters selected at random from the ratee's team by a computer-generated
system. Those selected are then notified by E-mail to participate in the appraisal.
Limitations on the use of external clients
An organization contemplating the use of the 360-degree process must keep in
mind that reviewing that organization's employees' performance is not the customer's
business. To ensure the customers' cooperation, the process should be a mutually
beneficial process. Furthermore, the various external customers would ideally evaluate
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the ratee only on the behaviors or work incidents that they have directly observed. This,
of course, also holds for internal raters.
Summarizing the data
Once all raters have supplied their appraisals, the employee's supervisor is
generally responsible for summarizing the data and determining the final performance
rating. After summarizing the data, the supervisor conducts the formal appraisal
interview with the ratee. Another variation of the summary process makes the ratee
responsible for summarizing the feedback data from the raters. The ratee then submits a
summary analysis to his or her supervisor. The ratee and the supervisor then meet to
determine the ratee's final performance rating and development plan.
Rater confidentiality
Organizations must decide whether the feedback from the various raters should be
kept anonymous or be identified to the employee. Sometimes raters give fuzzy feedback
because of the fear that the feedback might come back to them. One rule might be that no
rater can give negative feedback in the appraisal unless that rater has previously given the
feedback directly to the ratee. Most organizations should start with a policy of
confidentiality until sufficient understanding, maturity and organizational trust is
achieved.
Prescriptions for legally defensible appraisal systems...
System should be formal
Appraisal should be based on job analysis
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Rating should be on specific work dimensions rather than on overall or global
measures
Performance standards must be communicated to employees
Raters should be trained
Evaluators should be given specific, written instructions about the standards and
the process
Use more than one independent evaluator of performance
Evaluators must have ample time to evaluate performance
Use objective data whenever possible
Data should be empirically validated
Procedures for appraisal must not differ as a function of race, sex, color, national
origin, marital status, or age
Avoid ratings on traits, personality, or aptitude
Behavioral documentation should be given for extreme ratings (critical incidents)
Employees should be given an opportunity to review their appraisals
A formal appeal system should be available
Appraisal Methods
In a landmark study, Locher & Teel (1977) found that the three most common
appraisal methods in general use are rating scales (56%), essay methods (25%) and
results- oriented or MBO methods (13%). For a description of each, follow the button
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links on the left. Certain techniques in performance appraisal have been thoroughly
investigated, and some have been found to yield better results
Encourage Discussion
Research studies show that employees are likely to feel more satisfied with their appraisal
result if they have the chance to talk freely and discuss their performance. It is also more
likely that such employees will be better able to meet future performance goals.
Employees are also more likely to feel that the appraisal process is fair if they are given a
chance to talk about their performance. This especially so when they are permitted to
challenge and appeal against their evaluation.
Constructive Intention
It is very important that employees recognize that negative appraisal feedback is
provided with a constructive intention, i.e., to help them overcome present difficulties
and to improve their future performance. Employees will be less anxious about criticism,
and more likely to find it useful, when the HCL ieve that the appraiser's intentions are
helpful and constructive. In contrast, other studies have reported that "destructive
criticism" - which is vague, ill-informed, unfair or harshly presented - will lead to
problems such as anger, resentment, tension and workplace conflict, as well as increased
resistance to improvement, denial of problems, and poorer performance.
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RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of actions or steps
necessary to effectively carry out research and the desired sequencing of these steps. The
research is a process of involves a number of interrelated activities, which overlap and do
rigidly follow a particular sequence. It consists of the following steps
Formulating the objective of the study
Designing the methods of data collection
Selecting the sample plan
Collecting the data
Processing and analyzing the data
Reporting the findings
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Objective of Study
Research Design
Sample Design
Data Collection
Data Analysis
Reporting of Findings
RESEARCH OBJECTIVES
To study of about Performance Appraisal System of HCL.
RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a particular
study. A Research design is the arrangement of conditions for collection and analysis of
the data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research Design is broadly classified into three types as
Exploratory Research Design
Descriptive Research Design
Hypothesis testing Research Design
On the basis of the objective of study, the study which is concerned with describing the
characteristics of a particular individual or of group of individual under study comes
under Descriptive Research design.
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Descriptive Research Design:-
In this research design the objective of study is clearly defined and has accurate method
of measurement with a clear-cut definition of population that is to be studied.
To steps are involved in formulating the research problem:
Understanding the problem.
Rephrasing the problem into meaningful terms form an analytical
point of view.
The training sessions are conducted in the beginning of training in order
To make us clear about the tasks provided and how handle the different situation
The research design used in this study is descriptive which includes interviewers.
Questionnaire and unit fact-findings enquiries with the employees
SAMPLING:
Sample is Researcher collect needed information from various persons who are
associated with this subject. When such associated persons are in new number research
can get information from all of them in such some people among associated persons are
selected and collect information from them. These selected persons represent the whole
universe and are called sample.
Sampling unit
The sampling for this research was HCL Employees were available for interview.
Sampling frame
Sampling frame for this survey was least 100 officers & 100 workmen’s
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Sampling size
Sample size for the objective (Performance Appraisal system) sample size cover for the
various departments such as
Questionnaire Design
The questionnaire for this survey includes both open ended and close ended questions.
Why questionnaire
Now a days questionnaire are commonly used to collect data that is specific are crucial to
the success of business venture. With out doubt questionnaire allow to gather information
that can be found else where from say secondary information such as Manuals, Books
and internet resources this is because information collected is fresh and unique.
Questionnaire helps in identifying the following key points.
Study about Organization’s Performance Appraisal system
Employee’s awareness about Performance Appraisal system
Employee’s attitude towards existing Performance Appraisal system
Way of issuing questionnaire
It was personal interview (face to face). It helped in directly asking the question to data
available through this is a time consuming processed interviewers have little time to
think.
Research study
A research study for the project on performance appraisal system this is done through
questionnaire to employees. Research is a systematic and in depth study to find out the
awareness and attitude towards PAR among employees.
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COLLECTION OF DATA
The procedure for collection of data depends upon various considerations
Availability of resources like money time manpower etc also affects the choice of
procedure.
Primary data
Direct personal observation
Indirect oral interviews
Information through manuals& websites
Information through questionnaire filled by respondents
Questionnaire
The questionnaire a list of question to be asked from the respondent s the it also contains
a suitable space where the answer can be offered a better questionnaire form, which has
completed, by an interviewer.
Types of questionnaire
Structured – non disguised
Structured – disguised
Non structured – non disguised
Non structured – disguised
Secondary data
Secondary data mean that are already available that is they refer the data which have
already been collected and analyzed by some one else when the researcher utilizes
secondary data that has to look into various sources where he can obtain. In this case he
certainly not confronted with the problems that are usually data nor unpublished data
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associated data associated with the collection of original data secondary data may either
be published.
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TOOLS OF ANALYSIS
Analysis may be categorized as descriptive analysis and (inferential analysis is
often known as statistical analysis)
Descriptive Analysis: -
Descriptive analysis is largely the study of distribution of one variable this study
provide us profile of companies, workgroups and person & other subject on any of a
multitude of characteristics such as size composition.
Correlation Analysis: -
Correlation analysis studs the joint variation two or more variables for
determining the amount of correlation between two or more variable.
Inferential Analysis: -
Inferential analysis is concerned with the various tests of significance for testing
hypothesis in order to determine with what validity data can be said to indicate some
conclusion.
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DATA ANALYSIS
DATA WORK SHEET OF OFFICERS
Question No.
Options
(a) % (b) % (c) % (d) % NIL Total persons
1 90 10 0 0 0 100
2 75 15 5 5 0 100
3 34 60 4 2 0 100
4 15 85 0 0 0 100
5 50 30 10 8 2 100
6 95 5 0 0 0 100
7 65 28 2 3 2 100
8 78 10 10 0 2 100
9 42 30 16 10 2 100
10 80 18 0 0 2 100
11 70 20 10 0 0 100
12 65 24 10 0 1 100
13 80 20 0 0 0 100
14 40 10 40 10 0 100
15 52 25 12 10 1 100
16 55 25 10 10 0 100
17 90 10 0 0 0 100
18 20 40 10 30 0 100
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DATA WORK SHEET OF WORKMEN
Questio0n No.
Options
(a) % (b) % (c) % (d) % NIL Total persons
1 80 20 0 0 0 100
2 70 20 10 0 0 100
3 10 10 10 70 0 100
4 50 50 0 0 0 100
5 0 100 0 0 0 100
6 78 10 10 0 2 100
7 60 20 15 5 0 100
8 50 30 10 8 2 100
9 80 20 0 0 0 100
10 65 35 0 0 0 100
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QUESTIONNAIRE PRESENTATION WITH PIE CHART
( FOR OFFICERS)
1:- This pie chart is shows about 90% of officers are aware of current performance
appraisal System & 10% are not aware of current PAR System.
2:- According to 75% the current P.A. System is two tire System ,according
15% ,Three tire system ,5% four tire system and 5% are not aware current performance
appraisal System.
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3:- According to 34% two tire systems consist of appraisee & Appraiser, 60% IA &
RA, 4% HOD & GM & 2% immediate superior & HOD.
4:- About 85% of officers are performance appraisals assessed by point system, 10%
through Mark System 0% are not aware any group.
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5:- About 50% of Officers agree that task Setting provides objectively in appraising
their performance less than 30% of the officers are not fully agree with the statement
10% are neutral & disagree 2% are not fill the questionnaire.
6:- About 95% officers are says yes for completing Quarterly Task setting in
time ,rest due to some reason its not completed in time, such cases; lack of seriousness
& ambiguity.
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7:- Above 60% of the officers agree that self appraisal system Proves to be effective
& rest of officers do not completely agree with it.
8:- About 78% of officers are says that appraiser and appraisee should be responsible
for ensuring objectivity and reducing biasness the “Performance Appraisal system ,10%
are says appraiser & appraisee and peer & 10% says appraiser & appraisee and peer &
subordinate ,2% are not fill the questionnaire.
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9:- More than 40% officers are agree that skill possessed by an officers vary ,30%
are partially agree and 16% are Neutral ,less than 15% are not agree with its.
10:- About 80% officers are getting regular feedback on their performance but less
than 20% are not getting regular feedback.
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11:- About 70% of officers are agree that feedback is beneficial for improving their
performance ,20% are partially agree and 10% are neutral.
12:- 65% of the officers accepts that current PAR is an effective tool for evaluating the
employee performance,20% partially agree with this and 10% are neutral.
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13:- About 80% of officers are accept that current PAR System reflect the training
need, 20% are not accepts this.
14:- 40% of the officers consider that the relevance of PAR system in deciding
promotion, 10% are says deciding incentives and 40% agree with training and
development, 10% are accepting the programme succession planning.
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15:- According to 52% of officers are accepts the existing PAR system ensure due
recognition talented employee in term of promotion ,rewards and others, 28% are
partially agree and 12% are neural ,10% are disagree.
16:- More than 55% of officers are completely agree that the existing PAR system is
helpful in wholesome development of employee and 25% are partially agree,10%
disagree, 10% are neutral.
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17:- About 90% of the officers are completely satisfied with the current PAR system,
rest 10% are not satisfied with the current performance appraisal system.
18:- About 20% of the officers are say management is responsible to your
innovativeness and 40 % are says only personal problem, 10% are tell the official
problem 30% are says career aspiration.
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QUESTIONNAIRE PRESENTATION WITH CHART
(FOR WORKMEN)
1. About 80 % of workers are aware of current Performance Appraisal system & 20
% are not aware of current PAR System.
2. According to 70%, the current P.A. System is two-tire system, according 20%,
three tire system, and 10% four-tire system and 5% are not aware current Performance
Appraisal System
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3. About 10% of workers are performance appraisal assessed by point system, 10%
through Mark system 10% grade system and 70% are not aware.
4. About 50 % of workers are says task setting is done by time bound and 50% are not
accepts time bound.
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SUGGESTION OF ANALYSIS OF
QUESTIONNAIRE
Suggestion from employees for the effective implementation of PAR system
Job Description & key Result Areas should be identified & appraisee should be
answered accordingly.
While doing job Rotation a person’s core competence should be major criteria for
decision.
Assessment even by peer, subordinates & customers 360 degree PA system
should be implemented in order to make PAR system more focused, rather than
relation driven.
Project based performance & measurements (six sigma in work place & on personal
level) should be encouraged in Appraisal system.
Ideation & vision statement will interweavn them; strategy, transformation &
leadership should be encouraged & assessed in PAR system.
Effective need based training programme must be conducted on regular intervals like
time bound task setting is formulated in PAR system, there must also be time made
appraiser equally awakened. This will also help in making the existing PAR system
more effective & purposeful.
Deptts where work & task are not known, Like-Plant Maintenance & Hospital, PAR
system should be changed because jobs or tasks except regular work can’t be
assigned to individual.
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Suggestion point should be considered & implementation total. As seen that the
suggestion are some times ignored by higher authorities. As IA is dealing with
persons whose PAR is filled & knows form very near.
The present PAR system may be quite effective provide the weakness strengths
training requirements improvement suggestions are properly monitored for taking
necessary remedial action measures & fro suitable placement in the organization i.e.
right person at right place.
The task should be reviewed & discussed systematically by IA & RA & necessary
action should also be taken at proper time.
Ra should take necessary step in fulfilling Appraisee request regarding training, job
rotation.
Based upon the feedback. The training & Development needs of an individual should
be met & should not be limited only to award promotion.
There must be a provision that appraisee may come to know the final rating after PRB
i.e. more transparency is required.
Timely submission of quarterly task may be included to each offer’s task & marks to
be given on that.
Employees must be given proper knowledge & made aware of PAR system in HCL .
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FINDINGS
The PAR system has been reviewing time to time to improvise the ways to assess the
effectiveness, potential, development need & career sketch of the individual for the
management to formulate HRD programme into meet organization needs.
There is problem in collecting the PAR forms back more often the forms were not
received on time. The main problem is therefore of coordination.
Manager has to perform a very daunting list of time consuming tasks standing with
recalling which worker need to be reviewed each month, arranging appraisal meeting
with them, collection the relevant performance data, filling out the appraisal forms &
documenting the employees performance.
PA is not actually for workmen it’s basically for the officers. Previously workmen
were judged on the ground of ability, attendance & conduct through gradation system
but this time the new marking system is introduced.
The culture of confidentiality persists due to which PA will never be a readily
undertaken exercise. Adverse remarks are communicated to employees in writing
confidentially by the reporting officers.
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IA, RA & PRB consist of senior officers than the appraisee. Subordinate, peer,
customer or suppliers are not included in the PA committee. Thus the Appraisal
system is by higher level.
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CONCLUSION
Based on the vast study & analysis I can say that the Top management role needs
a tremendous change towards the role of facilitator. Every manager in the organization
hierarchy at his own position has the same role of facilitator. In fact in the present scene.
The managers are facilitators. The role of facilitator has a high demand on individual to
be a continuous learner, i.e. there is a transition from…………………….owner.
………………………Manager ……………………Leader
I conclude that for the LPG (Liberalization, Privatization and Globalization) of
business, Empowerment strengthens the ongoing capacity for successful action under
changing circumstances.
Thus to develop self esteem, organization has to satisfy the employees need for
higher levels of job satisfaction & an overall improved quality of work life consistent will
the dignity of the employees as a human being.
I hope that this project is of utmost value to all who are in this field & I also feel
that the knowledge gained during this training would be helpful to me in future.
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SUGGESTIONS
Workmen PAR should also be developed as of officers & they should be made aware
about it.
For the technical one column should also be included in the P.A. format which should
concern about the time availability of facilities provisions required for technical
workmen, officers in order to carry out & completion of job if any.
This would turn make IA / RA equally responsible & transparency in PAR system.
Emphasis should be given to measuring the employee’s performance i.e. what the
man does rather than what he is (merit rating). The important thing is to be aware of
his strengths. What can he do? And what has he done?
Self Appraisal system should thoroughly reviewed by the I.A., RA & Senior RA as
the appraisee would not be able to assess themselves but the concerned authorities
assessment of the appraisee should be impartial & up to the mark.
Extra care must be taken by the authorities while describing the performance of
appraisee, as the attributes used in this section are not the part of specified traits for
technical & non-technical personnel. Not only the deficiency should be pointed out in
this section but if the appraisee have fair better than usual it should also be
mentioned.
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Multirater Feedback Mechanism. Regular feedback must be given to employees.
Identify areas for both organizational & individual improvement through 360-degree
process. Promote team building by using this Multirater feedback mechanism
360-degree appraisal is an excellent means of providing feedback to employees
because it entails obtaining information from more than one group of people. All
those who form the role set member (those who has working relationship will the
appraisee) assess the appraisee on a standard format. The appraisees are taken form
the superiors, subordinates & colleagues. This encourages quality consciousness,
teamwork orientation & more participative.
“Give a man fish. He will eat it. Train a man to fish. He will his family,” the
technique of training has been a key factor & a major tool used to achieve the
objectives of HRD. Training should be base on an assessment of the needs of
different groups & individuals. The training needs should flow from PAR system.
PAR helps in identifying directions in which individual should be trained &
developed.
Whenever an individual is sponsored for training he should be told categorically the
reasons for sponsoring him & the expectations of the organization from him after he
return form the programme.
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Performance analysis should be made before making any comment. “Performance
Analysis “ is a sound alternative of finding ways & means of improving the employee
organizational performance & identifying development & growth needs.
A positive emotional & professional climate should be created in workplace for the
employee to progress & review himself through “Performance Review” (feedback &
counseling).
Virtual HR: HR Deptt. Can automate the PAR system with Internets. They can link
corporate business with the goals of the individual employee & generate meaningful
information from the vast data collected through out the organization.
The system can save managers the trouble of having to remember a whole lot of
things. Once the manager completes the form, he / she can instantly route it to the
central HR information system where it is stored for all authorized parties to see.
Such automated systems are very handy in case of 360-degree performance
evaluation. It frees HR Deptt. From needless paper work & allows human resource to
devote its resources to far more important things.
QUESTIONNAAIRE
PERFORMANCE APPRAISAL IN HCL
Designation. ________________Department. ________________
Grade, scale ________________
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1. Are you aware with the current “Performance Appraisal system” of HCL .
(a) yes (b) No
2. The current Performance Appraisal system is?
(a) Two tire system (b) Three tire system
(c) Four tire system (d) None aware
3. Two tire system Consist Of
(a) Appraisee &Appraiser (b) Ir & Ra
(c) Hod & Gm (d) Immediate
superior & Hod
4. Performance Appraisal Of Employee Is Assessed By
(a) Point system (b) Mark system
(c) Grade system (d) Not aware
Opinion About Features Of Performance Appraisal System
5. Task setting by appraisee and appraiser provides objective while appraising the
performance appraisal of the appraisee
(a) Agree (b) partially agree
(c) Neutral (d) disagree
6. Whether the quarterly task setting assignment completed by the 15th of first month
of each quarter if no give the reason
(a) Yes (b) No
7. Self Appraisal System proves to be effective while appraising the appraisee
(a) Agree (b) Partially agree
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(c) Neutral (d) Disagree
8. Who in your opinion should be the responsible for ensuring objectivity and
reducing baiasness the “Performance Appraisal” system?
(a) Appraiser and Appraisee.
(b) Appraiser, Appraisee & peer.
(c) Appraiser, Appraisee, peer, & subordinates.
9. Skill possessed by an Appraiser vary as the moves from one grade to another.
(a) Agree (b) Partially agree
(c) Neutral (d) Disagree
10. Are you getting regular feed back on your performance from your Appraisal?
(a) Yes (b) No
11. Feed back is beneficial for improving your performance
(a) Agree (b) Partially agree
(c) Neutral (d) Disagree
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Effectiveness of “Performance Appraisal” system
12. Current “Performance Appraisal” system is an effective tool for evaluating the
employee‘s performance
(a) Agree (b) Partially agree
(d) Neutral (d) Disagree
13. Does current “Performance Appraisal” system reflect the training need of an
employee?
(a) Yes (b) No
RELEVANCE OF “PERFORMANCE APPRAISAL” SYSTEM
14. What is your opinion is the relevance “Performance Appraisal” system?
Deciding promotion (b) Deciding incentives
(c) Training & development (d) programme Succession planning
15. The existing “Performance Appraisal” system ensures due recognition talented
employee in terms of promotion, rewards and others
(a) Agree (b) Partially agree
(c) Neutral (d) Disagree
16. Do you think that existing “Performance Appraisal” system is help full in
wholesome development of employee?
(a) Agree (b) Partially agree
(d) Neutral (d) Disagree
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17. Are you satisfied with the current “Performance Appraisal” system
(a) Yes (b) No
18. Would you say management is responsible to your
(a) Innovativeness (b) Personal problem
(c) Official problem (d) Career aspiration
Give your suggestion for effective implementation of Performance Appraisal system in
HCL .
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BIBLIOGRAPHY
Books
Manuals And Files Of HCL
Research methodology ----------- Devandra Thakur
Deep & Deep Publication Pvt. Ltd. Year -2005.
Principles and Techniques of Personnel Management –Udai Pareek
Himalya Publishing House Delhi Year -1997
WEB. Sites
www.HCL -india.com /
www.googal.com / performance appraisal system.
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