A

REPORT
ON
“PERFORMANCE APPRAISAL IN ORGANIZATION”

SUBMITTED TO:
DR. MAMATA MAHAPATRA

SUBMITTED BY:
Bijal j soni
2nd SEM MBA
ROLL NO: 034

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 PERFORMANCE APPRAISAL

An organization’s goals can be achieved only when people put in their best
efforts. How to ascertain whether an employee has shown his or her best
performance on a given job? The answer is performance appraisal. Employee
assessment is one of the fundamental jobs of HRM. But not an easy one though.

• Meaning and Definition

It is the systematic evaluation of the individual with respect to his or her

performance on the job and his or her potential for development.

In simple terms, performance appraisal may be understood as the assessment of

an individual's performance in a systematic way, the performance being
measured against such factors as job knowledge, quality and quantity of output,
initiative, leadership abilities, supervision, dependability, co-operation, judgment,
versatility, health, and the like. Assessment should not be confined to past
performance alone. Potentials of the employee for future performance must also
be assessed.

A more comprehensive definition is……

1. Performance' appraisal is a formal structured system of measuring and

evaluating an employee’s job related behaviors and outcomes to discover
how and why the employee is presently performing on the job and how
the employee can perform more effectively in the future so that the
employee organization and society all benefit.

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 2. The second definition includes employees’ behavior as part of the
assessment. Behavior can be active or passive--do something or do
nothing. Either way behavior affects job results. The other terms used for
performance appraisal arc: performance rating, employee assessment.
Employees performance review, personnel appraisal, performance
evaluation employee evaluation and (perhaps the oldest of the terms
used) merit rating. In a formal sense, employee assessment is as old as,
the concept of management and in an informal sense; it is probably as old
as mankind. Nor performance appraisal is done in isolation. It is linked to
job analysis as shown in Fig.

 OBJECTIVES OF PERFORMANCE APPRAISAL

Data relating to performance assessment of employees arc recorded, stored.

and used for seven purposes. The main purposes of employee assessment are:
1. To effect promotions based on competence and performance.
2. To confirm the services of probationary employees upon their completing
the probationary period satisfactorily.
3. To assess the training and development needs of employees.
4. To decide upon a pay raise where (as in the unorganized sector) regular
pay scales have not been fixed.
5. To let the employees know where they stand insofar as their performance
is concerned and to assist them with constructive criticism and guidance
for the purpose of their development.
6. To improve communication. Performance appraisal provides a format for
dialogue between the superior and the subordinate, and improves
understanding of personal goals and concerns. This can also have the
effect of increasing the trust between the rater and the rate.

Broadly, performance appraisal serves four objectives-

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 (i) developmental uses,
(ii) administrative uses/decisions,
(iii) organizational maintenance/objectives, and
(iv) documentation purposes

 Table below outlines these and specific uses more clearly:-

Multiple Purposes of Performance Assessment

General Applications Specific Purpose
Developmental Uses Identification of individual needs
Performance feedback
Determining transfers and job assignments
Identification of individual strengths ad
development needs

Administrative Uses/Decisions Salary

Promotion
Retention or termination
Recognition of individual performance
Lay-offs
Identification of poor performers

Organizational Maintenance/ HR planning

Objectives Determining organization training needs
Evaluation of organizational goal
achievement
Information for goal identification
Evaluation of HR systems

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PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE:

The objectives of performance appraisal, listed above, point out the purpose
which such an exercise seeks to meet. What needs emphasis is that
performance evaluation contributes to firm's competitive strength. Besides
encouraging high levels of performance, the evaluation system helps identify
employees with potential, reward performance equitably and determine
employee's need for training. Specifically, performance appraisal helps an
organization gain competitive edge in the following ways (see Fig below)

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 Improving Performance:
An effective appraisal system can contribute to competitive advantage by
improving employee job performance in two ways-by directing employee
behavior towards organizational goals, as was done by the second
beekeeper (see opening case), and by monitoring that behavior to ensure
that the goals are met.

 Making Correct Decisions:

As stated above, appraisal is a critical input in making decisions on such
issues as pay raise, promotion, transfer, training, discharges and
completion of probationary periods. Right decision on each of these can
contribute to competitive strength of an organization. If promotion, for
example, is made on performance, the promotee feels motivated to
enhance his or her performance.

 Ensuring Legal Compliance:

Promotions made on factors other than performance might land up a firm
in a legal battle, thus diverting its focus on non-productive areas, as it
happened to Williamson Meager. Organizations can minimize costly
performance-related litigation by using appraisal systems that give fair
and accurate ratings.

 Minimizing Job Dissatisfaction and Turnover:

Employees tend to become emotional and frustrated if they perceive that
the ratings they get are unfair and inaccurate. Such employees find that
the efforts they had put in became futile and obviously get de-motivated.
Dissatisfaction in the job sets in and one of the outcomes of job
dissatisfaction is increased turnover. Fair and accurate appraisal results in
high motivation and increased job satisfaction. An organization having
satisfied and motivated employees will have an edge over its competitors.

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 Consistency between Organizational Strategy and Behavior:

An organization needs a strategy consistent with the behavior of its

employees if it were to realize its goals. A truism of organizational life is
that people engage themselves in behaviors that they perceive will be
rewarded. As employees want to be rewarded, they tend to occupy
themselves more with those activities on which the organization
emphasizes. For example, if the focus is on service, employees will
behave in ways that will help them in gaining rewards associated with
service delivery. If the focus is on cost control, employees will seek to
control cost and thus be recognized and rewarded. If the focus is on
rewarding productivity, employees will strive for productivity.

METHODS OF APPRAISAL:
The last to be addressed in the process of designing an appraisal
programme is to determine methods of evaluation. Numerous methods
have been devised to measure the quantity and quality of employee’s job
performance. Each of the methods discussed could be effective for some
purposes, for some organizations. None should be dismissed or accepted
as appropriate except as they relate to the particular needs of the
organization or of a particular type of employees.

Broadly, all the approaches to appraisal can be identified into -

(i) Past-oriented methods, and
(ii) Future-oriented methods.

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 Past-Oriented Methods:

Rating Scales:
This is the simplest and most popular technique for appraising employee
performance; the typical rating-scale system consists of several numerical
scales, each representing a job-related performance criterion such as
dependability, initiative, output, attendance, attitude, co-operation, and the like.
Each scale ranges from excellent to poor. The rater checks the appropriate
performance level on each criterion, and then computes the employee’s total
numerical score. The number of points scored may be linked to salary increases,
whereby so many points equal a rise of some percentage.

Forced Choice Method:

In this, the rate is given a series of statements about an employee. These

statements are arranged in blocks of 2 or more, and the rater indicates which
statement is most or least descriptive of the employee.
Typical statements are :

1. Learns fast _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ works hard

2. Work is reliable_ _ _ _ _ _ _ _ _ _ _ _ _ _ performance is a good example

for

3. Absents often_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ others usually tardy.

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As in the checklist method, the rate is simply expected to select the statements
that describe the rate. Actual assessment is done by the HR Department.
This approach is known as the forced choice method because the rate is forced
to select statements, which are readymade. The advantage of this method is the
absence of personal bias in rating. The disadvantage is that the statements may
not be properly framed – they may not be precisely descriptive of the rate’s traits.

Forced Distribution Method:

One of the errors in rating is leniency – clustering a large number of employees
around a high point on a rating scale. The forced distribution method seeks to
overcome the problem by compelling the rater to distribute the rates on all points
on the rating scale.
The method operates under an assumption that the employee performance level
conforms to a normal statistical distribution. Generally, it is assumed that
employee performance levels conform to a bell shaped curve. For example, the
following distribution might be assumed to exist – excellent 10 %, good 20 %,
average 40 %, below average 20 %, and unsatisfactory 10 %.

The major weakness of the forced distribution method lies in the assumption that
the employee performance levels always conform to a normal distribution. In
organizations that have done a good job of selecting and retaining only the good
performers, the use of forced distribution approach would be unrealistic, as well
as possibly destructive to the employee morale.

The error of central tendency may also occur, as the rater resists from placing an
employee in the lowest or in the highest group. Difficulties also arise for the rater
to explain to the rate why he or she has been placed in a particular group. One
merit of this approach is that it seeks to eliminate the error of leniency. However,
the forced choice method is not acceptable to raters and rates, especially, in
small groups or when group members are of high ability.

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Field Review Method

This is an appraisal by someone outside the, assessor’s own department.

Usually someone from the corporate office or the HR department. The outsider
reviews Employee records and holds interviews with the rate and his or her
superior.

This method is primarily used for making promotional decision at the managerial
level. Field reviews are also useful when comparable information is needed from
employees in different units or locations. Two disadvantage of this method are:-

1. An "outsider" is usually not familiar with conditions in an employees’ work

environment which may affect the employee's ability or motivation to perform.
2. An 'outsider' review does not have the opportunity to observe employee
behavior of performance over a period of time and in a variety of situations. But
only in an artificially structured interview situation which extends over a very
short period of time.

Cost Accounting Method

This method evaluates performance from the monetary returns the employee
yields to his or her organization. A relationship is established between the cost
included in keeping the employee and the benefit the organization derives from
him or her. Performance of the employee is then evaluated based on the
established relationship between the cost and the benefit.

Ranking Method
In this, the superior ranks his or her subordinates in the order of their merit,
starting from the best to the worst. All that the HR department knows is that A is

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Better than B. The, 'how' and 'why' are not questioned, nor answered. No
attempt is made to fractionalize what is being appraised into component
elements. This method is subject to the halo and regency effects, although
rankings by two or more raters can be averaged to help reduce biases. Its
advantages include ease of administration and explanation.

Paired-comparison Method
Under this method the appraiser compares each employee with every other
employee one at a time. For example there are five employees named A, B. C.
D and E. The performance of A is first compared with the performance of B and
a decision is made about whose performance is better. Then A is compared with
C. D and E in that order. The same procedure is repeated for other employees.
The number of comparisons may be calculated with the help of a formula which
reads thus: N (N-1)/ 2 where N stands for the number of employees to be
compared. If there are 10 employees, the number of comparisons will be 10(10-
1)/2 = 45.
After the completion of comparison, the results can be tabulated and a rank is
created from the number of times each person is considered to be superior.

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12
 Performance Appraisal at Tata Consultancy Services Limited

Tata Consultancy Services Limited (TCS) is the world-leading information

technology consulting, services, and business process outsourcing organization
that envisioned and pioneered the adoption of the flexible global business
practices that today enable companies to operate more efficiently and produce
more value.

They commenced operations in 1968, when the IT services industry didn’t exist
as it does today. Now, with a presence in 34 countries across 6 continents, & a
comprehensive range of services across diverse industries, they are one of the
world's leading Information Technology companies. Seven of the Fortune Top 10
companies are among our valued customers.

They are part of one of Asia's largest conglomerates - the TATA Group - which,
with its interests in Energy, Telecommunications, Financial Services, Chemicals,
Engineering & Materials, provides us with a grounded understanding of specific
business challenges facing global companies.

As we move into an era of e-business where IT professionals will interview

employers so stringently that 40 percent employers will miss recruitment goals
(source: Gartner Group), the role of HR assumes unthinkable proportions and is
subject to mammoth challenges. With this sensitive breed of IT professionals,
how has TCS grown to and sustained at the number one position is a question

The TCS-HR group operates with technical experts to create a synergy which is
enviable. Figure 1 illustrates the role of HR, which evidently is that of a facilitator.
So whether it is recruitment or even career development, HR is the catalyst
which initiates and institutionalizes processes. To manage all the functions for
over 14000 employees is a Herculean task but the smoothness of operations is
intriguing. The HR structure, which allows flexibility and empowerment, is the
solution.

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“A poor performer is not always a poor performer for life,” says S Padmanabhan,
executive vice president, global human resources, Tata Consultancy Services
(TCS).

The Rs 9,749-crore InfoTech major has 45,000 employees on its rolls. Close to
90 per cent of the company’s income flows in from outside India. And the bulk of
its employees work across TCS offices in 34 countries and on-site in more than
50 countries. For most of them, the supervisor changes every time a project
changes. Given that no two projects — or, for that, matter, no two bosses — are
alike, and performance appraisal must be a nightmare.

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 Performance Appraisal Criteria at TCS

TCS conducts two appraisals:

1. At the end of the year

2. At the end of a project.

Appraisals are based on Balanced Scorecard, which tracks the achievement of

employees on the basis of targets at four levels —

 financial
 customer
 internal
 learning and growth

The financial perspective quantifies the employee’s contribution in terms of

revenue growth, cost reduction, improved asset utilization and so on;
The customer perspective looks at the differentiating value proposition offered
by the employee;
The internal perspective refers to the employee’s contribution in creating and
sustaining value;
The learning and growth are self-explanatory.

At the heart of an employee's satisfaction lies the fact that his performance is
being appreciated and recognized. TCS's performance management system has

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metamorphosed into one that emphasizes objectivity and a system that
mandates performance evaluation against pre-determined criteria.

What deserves special mention is the active participation of the senior

management in the determination of guidelines for the performance appraisal
process. The process ensure buy in of the employees since the guidelines for
the rating system and its conversion into money terms is not unilaterally decided
by HR but is a consensus of a cross functional team with representation from all
levels.

TCS's performance appraisal system is supported by an online system called the

Human Resource Management System- Oracle Developer 2000 based tool. The
system individual right from his biographical details to his projects performance.
An employee's performance history at the click of a button and this accurately
maintained for 14000 employees! Right from his entry, an employee in TCS get
formal performance feedback once every two months till such time that he is
confirmed after which the performance feedback is provided twice every year on
a formal basis. TCS however widely encourages informal feedback discussions
between Project Leaders and Team Members and this concept has found an
overwhelming appeal among the people.

Recognition at TCS

Guaranteed high motivation levels at TCS through competitive compensation

packages, stimulating job content, outstanding development opportunities, and,
not the least, an innovative recognition mechanism

The various ways in which TCS recognizes its people are listed below.

 Project milestone parties — to encourage efficient execution of projects.

 Recognition of star performers / high fliers — to recognize outstanding
talent.

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  Nomination to covet training programmes — to encourage self-
development.
 Best project award — to promote a spirit of internal competition across
work groups and to foster teamwork.
 Best PIP award — to encourage innovation and continuous improvement.
 Spot awards — to ensure real-time recognition of employees.
 Recommendations for new technology assignments / key positions — to
ensure career progression and development of employees' full potential.
 Performance-based annual increments — to recognize high performers
 Early confirmations for new employees — to reward high-performing new
employees
 Long-service awards — to build organizational loyalty
 EVA-based increments — to ensure performance-based salaries.
 On-the-spot recognition — to guarantee immediate recognition of good
performance.

Performance-appraisal management

Maintaining details of timely performance-appraisal reports.

Maintaining details of ratings from appraisal officers.
Generating details of reminders for performance-appraisal reports.

Promotion-details management

Generating lists of eligible candidates.

Grading eligible candidates.
Maintaining details of promotions.

Leave-details management

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 Crediting leave to employee accounts.
Maintaining details of leave availed and required approvals.
Maintaining details of leave encashment.
Validating details of residual leave.

Separation-details management

• • Updating details of terminal benefits.

• Registering details of employee benefits.

• Generating reports of these details.

Manpower planning

• Maintaining transfer details.

• Maintaining succession details.
• Generating MIS reports.
• Generating current human resources details.

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PERFORMANCE APPRAISAL SYSTEM AT BSNL

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 METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge,

even considering the available battery of appraisal techniques. But attempting to
avoid these pitfalls by doing away with appraisals themselves is like trying to
solve the problems of life by committing suicide. The more logical task is to
identify those appraisal practices that are (a) most likely to achieve a particular
objective and (b) least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal

stated at the outset of the article, I shall briefly review each, taking them more or
less in an order of increasing complexity.

Essay appraisal

In BSNL’s simplest form, this technique asks the rater to write a paragraph or
more covering an individual's strengths, weaknesses, potential, and so on. In
most selection situations, particularly those involving professional, sales, or
managerial positions, essay appraisals from former employers, teachers, or
associates carry significant weight.

GRAPHIC RATING SCALE

BSNL’s technique may not yield the depth of an essay appraisal, but it is more
consistent and reliable. Typically, a graphic scale assesses a person on the
quality and quantity of his work (is he outstanding, above average, average, or

unsatisfactory?) and on a variety of other factors that vary with the job but
usually include personal traits like reliability and cooperation. It may also include
specific performance items like oral and written communication.

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FIELD REVIEW

The field review is one of several techniques for doing this. A member of the
personnel or central administrative staff meets with small groups of raters from
each supervisory unit and goes over each employee's rating with them to (a)
identify areas of inter-rater disagreement, (b) help the group arrive at a
consensus, and (c) determine that each rater conceives the standards similarly.

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish
objective standards of comparison between individuals, but it do not involve the
intervention of a third party.

MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high
standards, employees in some organizations are being asked to set - or help set
- their own performance goals. Within the past five or six years, MBO has
become something of a fad and is so familiar to most managers that I will not
dwell on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare people

who work for different supervisors, individual statements, ratings, or appraisal
forms are not particularly useful. Instead, it is necessary to recognize that
comparisons involve an overall subjective judgment to which a host of additional
facts and impressions must somehow be added.

The best approach appears to be a ranking technique involving pooled judgment.

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The two most effective methods are alternation ranking and paired comparison
ranking.

1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method for
evaluating employees. Since it is usually easier to distinguish between the worst
and the best employees than to rank them, an alternation ranking method is
most popular. Here subordinates to be rated are listed and the names of those
not well enough to rank are crossed. Then on a form as shown below, the
employee who is highest on the characteristic being measured and the one who
is the lowest are indicated. Then chose the next highest and the next lowest,
alternating between highest and lowest until all the employees to be rated have
been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be

more so. But with large numbers of employees it becomes extremely time
consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e.,
when two or more people are asked to make independent rankings of the same
work group and their lists are averaged), are among the best available for
generating valid order-of-merit rankings for salary administration purposes.

360 DEGREE FEEDBACKS

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Many firms have expanded the idea of upward feedback into what the call 360-
degree feedback. The feedback is generally used for training and development,
rather than for pay increases.

Most 360 Degree Feedback system contains several common features.

Appropriate parties – peers, supervisors, subordinates and customers, for
instance – complete survey, questionnaires on an individual.

360 degree feedback is also known as the multi-rater feedback, whereby ratings
are not given just by the next manager up in the organizational hierarchy, but
also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once gathered in, the
assessment from the various quarters are compared with one another and the

results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like
the critical incident method, it focuses on actual behavior and actual results,
which can be discussed objectively and constructively, with little or no need for a
supervisor to "play God."

Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If

the employee meets or exceeds the set objectives, then he or she has
demonstrated an acceptable level of job performance. Employees are judged
according to real outcomes, and not on their potential for success, or on
someone's subjective opinion of their abilities.

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The guiding principle of the MBO approach is that direct results can be observed
easily. The MBO method recognizes the fact that it is difficult to neatly dissect all
the complex and varied elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up

into so many constituent parts, but to put all the parts together and the
performance may be directly observed and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be
reasonably accomplished. Supervisors and subordinates must have very good
"reality checking" skills to use MBO appraisal methods. They will need these
skills during the initial stage of objective setting, and for the purposes of self-
auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid
objectives may be distorted to disguise or justify failures in performance.

Benefits of Performance Appraisals

• Measures an employee’s performance.

• Helps in clarifying, defining, redefining priorities and objectives.
• Motivates the employee through achievement and feedback.
• Facilitates assessment and agreement of training needs.
• Helps in identification of personal strengths and weaknesses.
• Plays an important role in Personal career and succession planning.
• Clarifies team roles and facilitates team building.
• Plays major role in organizational training needs assessment and
analysis.

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 • Improves understanding and relationship between the employee and the
reporting manager and also helps in resolving confusions and
misunderstandings.
• Plays an important tool for communicating the organization’s philosophies,
values, aims, strategies, priorities, etc among its employees.
• Helps in counseling and feedback.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases

referred to as 'rating errors'. These errors can seriously affect assessment
results. Some of the most common rating errors are: -

Leniency or severity: - Leniency or severity on the part of the rater makes

the assessment subjective. Subjective assessment defeats the very purpose of
performance appraisal. Ratings are lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is
rated unfavorably will reflect poorly on his or her own worthiness.

b) She/he may feel that a derogatory rating will be revealed to the rate
to detriment the relations between the rater and the rate.

c) She/he may rate leniently in order to win promotions for the

subordinates and therefore, indirectly increase his/her hold over
him.

Central tendency: - This occurs when employees are incorrectly rated near
the average or middle of the scale. The attitude of the rater is to play safe. This
safe playing attitude stems from certain doubts and anxieties, which the raters
have been assessing the rates.

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Halo error: - A halo error takes place when one aspect of an individual's
performance influences the evaluation of the entire performance of the individual.
The halo error occurs when an employee who works late constantly might be
rated high on productivity and quality of output as well ax on motivation.
Similarly, an attractive or popular personality might be given a high overall rating.
Rating employees separately on each of the performance measures and
encouraging raters to guard against the halo effect are the two ways to reduce
the halo effect.

Rater effect: - This includes favoritism, stereotyping, and hostility. Extensively

high or low score are given only to certain individuals or groups based on the
rater's attitude towards them and not on actual outcomes or behaviors; sex, age,
race and friendship biases are examples of this type of error.

Primacy and Regency effects: - The rater's rating is heavily influenced

either by behavior exhibited by the rate during his early stage of the review
period (primacy) or by the outcomes, or behavior exhibited by the rate near the
end of the review period (regency). For example, if a salesperson captures an
important contract/sale just before the completion of the appraisal, the timing of
the incident may inflate his or her standing, even though the overall performance
of the sales person may not have been encouraging. One way of guarding
against such an error is to ask the rater to consider the composite performance
of the rate and not to be influenced by one incident or an achievement.

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 ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) Reporting Manager

Ø Provide feedback to the reviewer / HOD on the employees’ behavioral

traits indicated in the PMS Policy Manual

Ø Ensures that employee is aware of the normalization / performance

appraisal process

Ø Address employee concerns / queries on performance rating, in

consultation with the reviewer

b) Reviewer (Reporting Manager’s reporting Manager)

Ø Discuss with the reporting managers on the behavioral traits of all the
employees for whom he / she is the reviewer

Ø Where required, independently assess employees for the said behavioral

traits; such assessments might require collecting data directly from other
relevant employees

c) HOD (In some cases, a reviewer may not be a HOD)

Ø Presents the proposed Performance Rating for every employee of his /

her function to the Normalization committee.

Ø HOD also plays the role of a normalization committee member

Ø Owns the performance rating of every employee in the department

d) Normalization Committee

Ø Decides on the final bell curve for each function in the respective
Business Unit / Circle

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 Ø Reviews the performance ratings proposed by the HOD’s, specifically on
the upward / downward shift in ratings, to ensure an unbiased relative
ranking of employees on overall performance, and thus finalize the
performance rating of each employee

KEY CONCEPTS IN PMS

In order to understand the Performance Management System at BHARTI, some

concepts need to be explained which play a very important role in using the PMS
successfully. They are:

Ø KRA’S (KEY RESULT AREAS):

The performance of an employee is largely dependent on the KRA score

achieved by the employee during that particular year. Thus, it is necessary to
answer a few basic questions i.e.

 What are the guidelines for setting the KRA’s for an employee?

 How does an employee write down his KRA’s for a particular

financial year?

 KRA’s: The Four Perspectives.

 How is the KRA score calculated for an employee on the basis of

the targets sets and targets achieved?

Ø BEHAVIORAL TRAITS:

Some of the qualitative aspects of an employees’ performance combined

with the general behavioral traits displayed by the employee during a year
constitutes his behavior traits. An employee is assigned the rating on the

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basis of the intensity of the behavior displayed by him. They play a very
important role in the deciding the final performance rating for an employee as
is even capable of shifting the rating one level upwards/downwards.

Ø BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK:

This competency framework is a simple and structured way to describe the

elements of behaviors required to perform a role effectively. This framework
also tries to assess the performance of an employee objectively.

Ø THE PERFORMANCE RATING PROCESS:

The rating process tries to explain the four different types of rating that an
employee can achieve i.e. EC, SC, C and PC. It also explains the criteria,
which is considered for awarding any of these ratings to the employee.

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 PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR (SC)

Performs consistently and substantially Performs above expectations in all areas

above expectations in all areas

Achieves a final score greater than or Achieves final score between 100-114%
equal to 115%
Versatile in his/ her area of operation
Consistently delivers on stretch targets
Develops creative solutions and require
Is proactive
little / minimal supervision
Sets examples for others
Spots and anticipates problems,
implements solutions
Take ownership of own development
Sees and exploits opportunities
Coaches others
Delivers ahead of time

Sees the wider picture-impacts across Demonstrates business initiative

business

Focuses on what’s good for the Is self motivated

business
Supportive team player
Seen as role model by others

Recognized as exceptional by other Leads own team very effectively

functions as well
Demonstrate functional initiative
Motivates others to solve problems

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Summary:-

About the Tata Consultancy Services Limited

TCS's performance management system has metamorphosed into one that

emphasizes objectivity and a system that mandates performance evaluation
against pre-determined criteria. TCS's performance appraisal system is
supported by an online system called the Human Resource Management
System- Oracle Developer 2000 based tool. The system individual right from its
biographical details to his projects performance.TCS however widely encourages
informal feedback discussions between Project Leaders and Team Members and
this concept has found an overwhelming appeal among the people.

About the BSNL

According to BSNL’s Technique may not yield the depth of an essay appraisal,
but it is more consistent and reliable. Typically, a graphic scale assesses a
person on the quality and quantity of his work and on a variety of other factors
that vary with the job but usually include personal traits like reliability and
cooperation. It may also include specific performance items like oral and written
communication. Variable objectives may cause employee confusion. It is also
possible that fluid objectives may be distorted to disguise or justify failures in
performance.

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