Performance Appraisal in HCL Info System
Performance Appraisal in HCL Info System
I am GARIMA BANSAL student of MBA here by declares that the summer training
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
examination.
GARIMA BANSAL
M.B.A. IV Sem
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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
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
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
• Company profile
• Product profile
• Research methodology
• College of data
• Data analysis
• Findings
• Conclusions
• Suggestions
• Questionnaire
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• 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
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-
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
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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
services to their clients. Attrition levels also remained high, between 25-40 per
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
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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
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
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
estate and catering, and has contributed to a rising class of young consumers with
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COMPANY PROFILE
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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
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
enterprise, or a small office or a home, HCLI has a product range, sales & support
Last 29 years apart from knowledge & experience have also given us continuity in
relationship with the customers, thereby increasing the customer confidence in us.
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.
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.
Guiding Principles
Vision Statement
Mission Statement
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"To provide world-class information technology solutions and services to enable HCL’s
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
People Objectives
To help people in HCL Infosystems Ltd. share in the company's successes, which they
their individual achievements; and help them gain a sense of satisfaction and
Core Values
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."
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One of the key elements to HCL's success is its never-ending pursuit of superior quality
HCL Infosystems believes in the Total Quality Management philosophy as a means for
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.
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
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In the early 90s, the focus was not merely on the quality of products but also the
1997. As of now, all HCL’s manufacturing units are certified by BVQI as per ISO
9001:2000
In early 1995, a major quality initiative was launched across the company based on Philip
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
the basic concepts and tools of quality. A number of improvement projects have
bottlenecks are identified, and Corrective Action Projects (CAPs) are undertaken.
This reduces defect rates and improves cycle times in various processes, including
personal quality.
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We have received MAIT's 'Level II recognition for Business Excellence' for HCL’s
for Quality Management' (EFQM), for gaining quality leadership and business
competitiveness.
HCL’s certifications / awards in 2003 include ISO 9001-2000 by BVQI for HCL’s
We always strive to maintain high quality standards, which help us fulfill HCL’s
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Alliances & Partnerships
To provide world-class solutions and services to all HCL’s customers, we have formed
HCL Infosystems has alliances with global technology leaders like Intel, AMD,
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
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
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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,
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
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
solutions company.
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Source: www.hcl.in
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The menu of HCL Infosystems global services broadly covers IT consulting and
portfolio of systems and network services for development. This also includes a
and Shell Malaysia. Some of its global customers in government sector are Inland
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
Novell, SCO AG Solutions, Red Hat, Linux, Samsung, Pivota for CRM solution
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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
evolves innovative channel strategies to widen its market reach, and offers value
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
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
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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
Frontline Pvt. Ltd.. It is an ISO 9001 certified company and an extremely customer
focused IT provider.
Need
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.
and high availability. Leaders like you, in the process of selecting the best of breed
situation where you need a strong reliable and trusted partner committed to deliver
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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
to meet your complete IT needs. And as a single window for completing business
The 6 S
Solutions
The one stop shop solution center for all your IT needs, customized to meet and
Services
Support
Pan-India footprint of support and logistics locations. Over 260 Direct service
professionals.
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Standards
World Class Quality standards maintained for PPP (People, Processes &
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
Satisfaction
Complete Satisfaction for the customers through the HCL 6S offering that enables
one to maximize system uptime through rapid response and resolution services,
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Achievements
a typist can operate' to make the usage of computers popular in the SME
1983 based applications for the first time, to increase ease of operations. The
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.
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- HCL sets up core team to develop the required software - ALPM (Advanced
development efforts and produce more reliable code. ALPM becomes the
- HCL designs and launches Unix- based computers and IBM PC clones
computerization
1991
- HCL establishes a Response Centre for HP products, which is connected to
Services
- HCL acquires and executes the first offshore project from IBM Thailand
1994
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- Execution projects for Germany and Australia
projects for
1996
international customers
2000
- Becomes the 1st IT Company to be recommended for latest version of ISO
9001 : 2000
2001
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-HCL Infosystems & Sun Microsystems enters into a Enterprise Distribution
Agreement
Imaging
certification
Rs. 17990
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- IDC India-DQ Customer Satisfaction Audit rates HCL as No.1 Brand in
Desktop PCs
- Enters into partnership with Port Wise to support & distribute security &
VPN solutions in
India
- 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
in India
year 2004
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- Crosses the landmark of $ 1 billion in revenue in just nine months
- HCL completes buy out of JVs with Deutsche Bank and British Telecom
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MARKETING STRATEGY
services expresses in broad terms, which forms the basis for developing a
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
Product Planning
HCL take good and effective decision on the faith of their existing product along with
HCL have an R&D Department, which focuses on to the continuous innovation in order
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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,
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
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:
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
Price refers to the value of products attributes. Expressed in monetary terms price is the
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
Bundles are created and products are marketed accordingly in every region.
HCL gives 6 to 8 percent margin to their Channel Partners or Demo Centers, and
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
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HOME PCS
HCL Beanstalk
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.
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.
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
HCL Ezeebee
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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
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HCL Leaptops
HCL introduces Leaptops with unmatched mobile power. Designed to provide superior
performance, flexible connectivity and high mobility, these notebooks offer a new
productivity.
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PERFORMANCE APPRAISAL
OBJECTIVE OF PERFORMANCE APPRAISAL
Help employee overcome his weakness & improve ones his strengths & thus
Generate adequate feedback & guidelines form the repotting officers to the
employee.
developing them.
Thus, a good Performance Appraisal & review system should primarily focus
an employee development.
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DEFINED
Performance appraisal...
• Measuring,
• Evaluating, and
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
The tendency to make judgments about oneself or about people one is working with,
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
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and legal problems within the firm. On the other hand, a structured appraisal system is
Performance appraisals telling subordinates how they are doing, and suggesting needed
provide both evaluation and feedback the main aim of the evaluation is to identify
gaps One of the functions of performance appraisals is to ensure that people are
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
plays a significant role as a tool and technique of organizational development and growth.
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
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The firm, on the other hand, needs a performance appraisal system in order to
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
issues. During appraisals, subordinates and supervisors can focus on work activities and
goals, identify and correct existing problems, and encourage better future performance.
(see Maslow and the Expectancy Theory of Motivation). Performance appraisals provide
employees with recognition for their work efforts. The appraisal system provides the
in their performance and development. This recognition can have a positive motivational
excellent opportunity for a supervisor and subordinate to recognize and agree upon
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
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.
that evaluations (controlling) need to be done. At its most basic level, performance
developmental priorities appear to clash. Some management experts have argued that
appraisal cannot serve the needs of evaluation and development at the same time.
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
performance appraisal processes risk becoming just another of the many bureaucratic
employees, and evolving training plan for them, also, serves to meet other objectives.
Performance appraisal satisfies the psychological needs individuals have to know how
Employees’ job satisfaction and morale by letting them know that the manager is
provides the firm and the employee a careful evaluation, rather than a snap judgment of
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
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
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To summarize the uses of performance appraisal:
• Performance improvement
• Compensation
• Placement
• Career planning
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Performance Measures
OBSERVATION
DIRECT INDIRECT
• Ranking Methods
• Forced Distributions
• Paired Comparisons
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
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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make reference to the appropriate job descriptions. Use of inappropriate traits could result
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
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
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Disadvantages of Rating Scales
• Rater biases
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.
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
Selective perception is the human tendency. Although rating scales are designed to
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
Thus the spread of ratings for all employees tends to be clumped around the middle of the
scale.
Narrative Essay
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,
Job - relatedness
Standardization
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Practical viability ability
Legal Sanction
Training to appraisers
Open communication
from the top levels of management is often cited as a major contributing reason.
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
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
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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
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
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
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
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
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
Performance Management
One of the most common mistakes in the practice of performance appraisal is to perceive
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
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
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
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
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
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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
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
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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
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,
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,
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Developing Poor Performers
make special efforts to help poor performers improve. Supervisory appraisals, for
example, might stress the importance of working with poor performers to upgrade their
Retention of Records
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.
There is always the possibility that an employee who receives poor appraisal
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:
2. The comments in the appraisal document are inconsistent with actual performance
evidence
3. The meetings are handled poorly and dominated by superiors who tend to use
one-way communication
interview
6. The process is mechanical and contributes little to either the betterment of the
Given the faults listed above, the process engenders hostility in the employees
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
judged
• 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
o Policies with respect to where the appraisals will be kept and who has
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
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
o Management by objectives
o Essays
o Weighted checklists
o Forced choices
o Critical incidents
o Rankings
o Paired comparisons
may make it clear that the job description is inconsistent with tasks actually
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• Follow up on the performance appraisal recommendations
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
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,
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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
Employee development
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
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
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The raters: how many and who?
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
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.
mind that reviewing that organization's employees' performance is not the customer's
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,
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
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
achieved.
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• Rating should be on specific work dimensions rather than on overall or global
measures
• Evaluators should be given specific, written instructions about the standards and
the process
• Procedures for appraisal must not differ as a function of race, sex, color, national
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
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
Constructive Intention
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
problems such as anger, resentment, tension and workplace conflict, as well as increased
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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
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Objective of Study
Research Design
Sample Design
Data Collection
Data Analysis
Reporting of Findings
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RESEARCH OBJECTIVES
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
On the basis of the objective of study, the study which is concerned with describing the
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Descriptive Research Design:-
In this research design the objective of study is clearly defined and has accurate method
point of view.
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.
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
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
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.
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
75
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
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 – 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
76
associated data associated with the collection of original data secondary data may either
be published.
77
TOOLS OF ANALYSIS
Analysis may be categorized as descriptive analysis and (inferential analysis is
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
Correlation Analysis: -
Correlation analysis studs the joint variation two or more variables for
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
Options
Question No. (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
Options
Questio0n No. (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)
Question No. 01
0%
0%
10% 1
0%
2
3
4
5
90%
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.
Question No. 02
5%
5% 1
0%
15%
2
3
4
75% 5
2:- According to 75% the current P.A. System is two tire System ,according 15%
Question No. 18
,Three tire system ,5% four tire system and 5% are not aware current performance
0% 20% 1
30%
2
appraisal System. 3
4
10%
40% 5
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Question No. 03
2% 0%
4% 1
34%
2
3
4
60%
5
3:- According to 34% two tire systems consist of appraisee & Appraiser, 60% IA &
Question No. 04 0%
0%
0%
15% 1
2
3
4
85% 5
4:- About 85% of officers are performance appraisals assessed by point system, 10%
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Question No. 05
8% 2%
10% 1
2
3
50%
4
30% 5
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.
Question No. 06
0%
0%
5% 0% 1
2
3
4
5
95%
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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Question No. 07
2%
3%
2% 1
28% 2
3
4
65%
5
7:- Above 60% of the officers agree that self appraisal system Proves to be effective
Question No. 08
2%
0%
10% 1
10% 2
3
4
78% 5
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 &
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Question No. 09
10% 2% 1
16% 42% 2
3
4
30% 5
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.
Question No. 10
2%
0%
0%
18% 1
2
3
4
80% 5
10:- About 80% officers are getting regular feedback on their performance but less
85
Question No. 11
0%
10%
0% 1
20% 2
3
4
70% 5
11:- About 70% of officers are agree that feedback is beneficial for improving their
Question No. 12
1%
0%
10% 1
24% 2
3
65% 4
5
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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Question No. 13
0%
0%
20% 0% 1
2
3
4
80% 5
13:- About 80% of officers are accept that current PAR System reflect the training
Question No. 14
10% 0%
40% 1
2
3
4
40% 5
10%
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
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Question No. 15
10% 1%
12% 1
2
3
4
52% 5
25%
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
Question No. 16
10% 0%
10%
1
2
3
4
25% 55% 5
16:- More than 55% of officers are completely agree that the existing PAR system is
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Question No. 17
0%
0%
10% 0%
1
2
3
4
5
90%
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.
Question No. 18
30% 0% 20%
1
2
3
4
5
10% 40%
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
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QUESTIONNAIRE PRESENTATION WITH CHART
(FOR WORKMEN)
Question No. 02
0%
20%
1
0%
2
10% 3
70%
4
5
Question No. 01
3
20%
0% 5
Not
0% 1
aware 4
0% 2
3
4
5
80%
aware
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
90
Question No. 03 5
Question No. 04
0% 3
1
5 0%
10%
0% 4
0%
2
10% 1 1
2 2
2 1
4 3 3 3
50% 50%
70% 10%
4 4
5 5
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
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SUGGESTION OF ANALYSIS OF
QUESTIONNAIRE
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.
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
Ideation & vision statement will interweavn them; strategy, transformation &
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
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
The present PAR system may be quite effective provide the weakness strengths
necessary remedial action measures & fro suitable placement in the organization i.e.
The task should be reviewed & discussed systematically by IA & RA & necessary
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
There must be a provision that appraisee may come to know the final rating after PRB
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
There is problem in collecting the PAR forms back more often the forms were not
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 &
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
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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
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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
………………………Manager ……………………Leader
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
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
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
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
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
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this section but if the appraisee have fair better than usual it should also be
mentioned.
Identify areas for both organizational & individual improvement through 360-degree
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
“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
different groups & individuals. The training needs should flow from PAR system.
developed.
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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
Analysis “ is a sound alternative of finding ways & means of improving the employee
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.
evaluation. It frees HR Deptt. From needless paper work & allows human resource to
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QUESTIONNAAIRE
PERFORMANCE APPRAISAL IN HCL
1. Are you aware with the current “Performance Appraisal system” of HCL .
5. Task setting by appraisee and appraiser provides objective while appraising the
100
6. Whether the quarterly task setting assignment completed by the 15th of first month
8. Who in your opinion should be the responsible for ensuring objectivity and
9. Skill possessed by an Appraiser vary as the moves from one grade to another.
10. Are you getting regular feed back on your performance from your Appraisal?
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Effectiveness of “Performance Appraisal” system
12. Current “Performance Appraisal” system is an effective tool for evaluating the
employee‘s performance
13. Does current “Performance Appraisal” system reflect the training need of an
employee?
15. The existing “Performance Appraisal” system ensures due recognition talented
16. Do you think that existing “Performance Appraisal” system is help full in
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17. Are you satisfied with the current “Performance Appraisal” system
HCL .
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BIBLIOGRAPHY
Books
WEB. Sites
www.HCL -india.com /
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