PERFORMANCE APPRAISAL: Practice at TCS PERFORMANCE APPRAISAL Introduction: Introduction Performance appraisal goes by various names such as performance rating, progress rating, merit rating, merit evaluation etc. Performance Appraisal is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. Purposes: Purposes ADMINISTRATIVE PURPOSE Promotions Salary Retention or Termination Transfers Recognition of individual performances Training and development needs DEVELOPMENT PURPOSE Identification of individual needs Performance feedback Determining job assignments Purposes: Purposes ORGANIZATIONAL PURPOSE HR planning Determining organization training needs Reinforcement of organizational development needs Evaluation of HR systems 4. DOCUMENTATION PURPOSE Criteria for validation research Documentation for HR decisions Helping to meet legal requirements Basic Steps in a Performance Appraisal: Basic Steps in a Performance Appraisal Conduct ongoing observations and measurements to track performance Exchange ongoing feedback about performance Conduct a performance appraisal If performance meets desired performance standards, reward for performance Method of Appraisal: Method of Appraisal Performance Appraisal Traditional Modern Straight Ranking Method Paired Comparison Critical Incident Method Field Review Checklist Method Graphic Rating Scale Forced Distribution Management By Objective 360 Degree Appraisal Behaviorally Anchored Rating Scale Human Resource Accounting Performance Appraisal and Competitive Advantage: Performance Appraisal and Competitive Advantage Minimizing dissatisfaction and turnover Competitive Advantage Strategy and Behavior Improving Performance Making correct decisions Ensuring Legal Compliance Values and Behavior Performance appraisal at TCS: Performance appraisal at TCS TCS conducts two appraisals : 1. At the end of the year 2. At the end of a project PowerPoint Presentation: 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 PowerPoint Presentation: 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 refers to the development of employee Appraising at TCS: Appraising at TCS Based on their individual achievements, employees are rated on a scale of one to five (five = “superstar”). If employees get a low rating (less than two) in two consecutive appraisals, the warning flags go up. “If the poor performer continues getting low scores then the exit option may be considered” PowerPoint Presentation: Over the years TCS has found the pattern that leads to the maximum decline in performance — boredom. If employees work for more than two years on the same project, typically either their performance dips or they leave the organization. To avoid that, TCS shuffles its employees between projects every 18 months or so. TCS believes “Performance drops if motivation drops” Conclusion: Conclusion Performance Appraisal has a beneficial effect on both the persons doing the appraisal and being appraised The Appraisal brings prominently to the attention of supervisors or executives the importance of knowing their subordinates as human resource. The necessity of performance appraisal leads the appraiser to a thoughtful analysis of people rated and tends to make him more alive to opportunities and responsibilities in developing the subordinates.