Project Report on Performance Managment 3/19/2013 Tata Consultancy Services[Type the author name] Submitted to: Prof. Roopa Rao Submitted by: Bhagyashree Nathwani Roll no-32 PGP-1A & a comprehensive range of services across diverse industries. Figure 1 illustrates the role of HR. Financial Services. with a presence in 34 countries across 6 continents. is the solution. services.the TATA Group . the role of HR assumes unthinkable proportions and is subject to mammoth challenges. There is but one answer . They commenced operations in 1968. how has TCS grown to and sustained at the number one position is a question which market watchers have asked themselves a thousand times. when the IT services industry didn’t exist as it does today. . With this sensitive breed of IT professionals. The TCS-HR group operates with technical experts to create a synergy which is enviable. Engineering & Materials. which evidently is that of a facilitator. Now. with its interests in Energy.passion for excellence in the workforce practices. provides us with a grounded understanding of specific business challenges facing global companies. Chemicals. 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. To manage all the functions for over 14000 employees is a Herculean task but the smoothness of operations is intriguing. Seven of the Fortune Top 10 companies are among our valued customers.Performance Appraisal In TCS 2 Tata Consultancy Services Limited (TCS) is the world-leading information technology consulting. Telecommunications. which allows flexibility and empowerment. So whether it is recruitment or even career development. TCS has developed an unbreakable bond with sound HR practices in an environment that defies traditional roles and responsibilities. HR is the catalyst which initiates and institutionalizes processes. They are part of one of Asia's largest conglomerates . they are one of the world's leading Information Technology companies.which. 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 HR structure. Given that no two projects — or.749-crore InfoTech major has 45. matter. The Rs 9. for that. performance management and performance appraisal must be a nightmare. Tata Consultancy Services (TCS). the supervisor changes every time a project changes.” says S Padmanabhan. Close to 90 per cent of the company’s income flows in from outside India.000 employees on its rolls. Or is it? . global human resources. executive vice president. no two bosses — are alike.Performance Appraisal In TCS 3 “A poor performer is not always a poor performer for life. For most of them. And the bulk of its employees work across TCS offices in 34 countries and on-site in more than 50 countries. and used for seven purposes. and documentation purposes Table below outlines these and specific uses more clearly:- .Performance Appraisal In TCS 4 Performance Appraisal Criteria at TCS OBJECTIVES Data relating to performance assessment of employees arc recorded. performance appraisal serves four objectives(i) (ii) (iii) (iv) developmental uses. Finally. This can also have the effect of increasing the trust between the rater and the ratee. and transfers have been effective or not. 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. To assess the training and development needs of employees. organizational maintenance/objectives. Performance appraisal provides a format for dialogue between the superior and the subordinate. stored. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. The main purposes of employee assessment are: 1. To improve communication. 5. 4. performance appraisal can be used to determine whether HR programmes such a selection. and improves understanding of personal goals and concerns. 6. training. 2. administrative uses/decisions. To effect promotions based on competence and performance. Broadly. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 7. 3. Performance Appraisal In TCS 5 Multiple Purposes of Performance Assessment General Applications Specific Purpose Identification of individual needs Performance feedback Determining transfers and job assignments Identification of individual strengths ad development needs Salary Promotion Retention or termination Recognition of individual performance Lay-offs Identification of poor performers HR planning Determining organization training needs Evaluation of organizational goal achievement Information for goal identification Evaluation of HR systems Reinforcement of organizational development needs Criteria for validation research Documentation for HR decisions Helping to meet legal requirements Developmental Uses Administrative Uses/Decisions Organizational Maintenance/ Objectives Documentation . point out the purpose which such an exercise seeks to meet. At the end of the year 2. Besides encouraging high levels of performance. which tracks the achievement of employees on the basis of targets at four levels — .Performance Appraisal In TCS 6 PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE IN TCS The objectives of performance appraisal. At the end of a project. What needs emphasis is that performance evaluation contributes to TCS’s competitive strength. Appraisals are based on Balanced Scorecard. the evaluation system helps identify employees with potential. reward performance equitably and determine employee's need for training. performance appraisal has helped the TCS gain competitive edge in the following ways : Strategy and Behavior Improving Performance Making correct decisions Competitive Advantage Values and Behavior Minimizing dissatisfaction and turnover Ensuring Legal Compliance TCS conducts two appraisals: 1. Specifically. To avoid that. The customer perspective looks at the differentiating value proposition offered by the employee. Based on their individual achievements. If employees get a low rating (less than two) in two consecutive appraisals. the warning flags go up. An employee's performance history at the click of a button and this accurately maintained for 14000 employees! Right from his entry. What deserve special mention is the active participation of the senior management in the determination of guidelines for the performance appraisal process. TCS's performance appraisal system is supported by an online system called the Human Resource Management System. The weightage given to each attribute is based on the function the employee performs. typically either their performance dips or they leave the organization.Performance Appraisal In TCS financial customer internal learning and growth 7 The financial perspective quantifies the employee’s contribution in terms of revenue growth. 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. “Performance drops if motivation drops” At the heart of an employee's satisfaction lies the fact that his performance is being appreciated and recognized.an Oracle Developer 2000 based tool. The system individual right from his biographical details to his projects performance. cost reduction. the internal perspective refers to the employee’s contribution in creating and sustaining value. employees are rated on a scale of one to five (five = “superstar”). If employees work for more than two years on the same project. an employee in TCS get formal performance feedback once very two months till such time that he is confirmed after which the performance . improved asset utilization and so on. TCS's performance management system has metamorphosed into one that emphasizes objectivity and a system that mandates performance evaluation against pre-determined criteria. TCS shuffles its employees between projects every 18 months or so. “If the poor performer continues getting low scores then the exit option may be considered” Over the years TCS has found the pattern that leads to the maximum decline in performance — boredom. the learning and growth are self-explanatory. stimulating job content. Recognition of star performers / high fliers — to recognize outstanding talent. 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. outstanding development opportunities. Best PIP award — to encourage innovation and continuous improvement. Best project award — to promote a spirit of internal competition across work groups and to foster teamwork. Project milestone parties — to encourage efficient execution of projects. Human Resource Management System The functions of HRMS can be broadly stated as: Organisational set up and configuration Defining organisational structure and hierarchy. Recommendations for new technology assignments / key positions — to ensure career progression and development of employees' full potential. an innovative recognition mechanism The various ways in which TCS recognizes its people are listed below. Updating organisational structure and hierarchy. Defining and maintaining employee classification and hierarchy. On-the-spot recognition — to guarantee immediate recognition of good performance. and. not the least. Set up access and approval levels. Best auditor award — to acknowledge participation in critical support roles Spot awards — to ensure real-time recognition of employees. Performance-based annual increments — to recognize high performers Early confirmations for new employees — to reward high-performing new employees Long-service awards — to build organisational loyalty EVA-based increments — to ensure performance-based salaries. Nomination to covet training programmes — to encourage self-development. .Performance Appraisal In TCS 8 feedback is provided twice every year on a formal basis. Performance Appraisal In TCS Recruitment Advertisements in various forms. Employee details maintenance Maintaining service records of employees. Allowances and claims processing. transfers and deputation management. registering and updating professional memberships. Attendance management Tracking attendance registers. Updated lists for campus recruitments. Training details maintenance Tracking budgetary allocations. Producing appropriate reports. Verifying. Written tests and group discussions. Tracking overtime. 9 . Maintaining details of training institutions. Maintaining training requests and requirement details. Tracking late arrivals. transfers and deputation management Allocations. Maintaining post-training work reallocations. Generating interface reports. Tracking internal training programmes. Maintaining shift rosters. Employee benefits details maintenance Tracking changes in salary scales and allowances. Maintaining post-training details. Capturing interface data. Issuing loans and advances. Allocations. Application processing. Maintaining succession details. Manpower planning Maintaining transfer details. Maintaining details of leave encashment. Generating reports of these details. Maintaining details of promotions. Generating current human resources details. Maintaining details of leave availed and required approvals. Grading eligible candidates. Generating transfer details. Maintaining details of ratings from appraisal officers. Validating details of residual leave.Performance Appraisal In TCS Maintaining deputation details. Promotion-details management Generating lists of eligible candidates. Generating details of reminders for performance-appraisal reports. Separation-details management Updating details of terminal benefits. Generating MIS reports. Leave-details management Crediting leave to employee accounts. 10 . Registering details of employee benefits. Performance-appraisal management Maintaining details of timely performance-appraisal reports. Performance Appraisal In TCS 11 P-CMM ( PEOPLE CAPABILITY MATURITY MODEL ) The concept that is very close to the heart of the HR group and one that has seen mass appeal is the PEOPLE CAPABILITY MATURITY MODEL or the P-CMM. TCS has been the first company in India to be visited by the author of P-CMM . TCS plans to have an organization wide assessment this year. So HR now in the books of "QUALITY". And it is no mean feat that the two groups have generated such synergy that for a long time every one will be speaking one language . . facilitating the implementation of P-CMM ( being done for the first time in Asia) or designing a Balanced Score Card for the team. all of the HR processes will be subjected to an audit and that in itself is an achievement to be proud of because we hear so few a company having its HR processes audited.the-P-CMM. all of the HR processes will be subjected to an audit and that in itself is an achievement to be proud of because we hear so few a company having its HR processes audited. rubbing shoulders with the technology experts. Equipped with the training programmes at TMTC (The TATA Management Training Centre). For the first time. Developing the HR capabilities has been an imperative. The HR group along with the Software Engineering Process Group has dedicatedly worked towards achieving a high maturity level for the people processes. the extensive Labs at ISABS and ISISD the constant exposure at conferences. The HR team in TCS is transcending from its traditional "maintenance" role to a new developmental role. the HR team is a formidable one and at the cutting edge of HR technology. TCS plans to have an organization wide assessment this year. For the first time. So HR now in the books of "QUALITY". Designing training modules for Senior Project Leaders on performances management. Bill Curtis. the HR group is at the forefront.Dr. Performance Appraisal In TCS 12 . The organization misses opportunities to standardize workforce practices because the common knowledge and skills needed for conducting its business activities have not been identified) P-CMM . Each maturity level is a welldefined evolutionary plateau that institutionalizes new capabilities for developing the organization's workforce. Environmental distractions. Poor communication. to the performance of competency-based processes. an organization can avoid introducing workforce practices that its employees are unprepared to implement effectively. developing effective teams.Defined Level (Although there are performing basic workforce practices. unclear performance objectives or feedback. By following the maturity framework.Initial Level (Typical characteristics: Inconsistency in performing practices. P-CMM . Maturity Level 5 organizations treat change management as an ordinary business process to be performed in an orderly way on a regular basis) . and shaping the workforce the organization needs to accomplish its future business plans. The organization uses the results of the quantitative management activities established at Maturity Level 4 to guide improvements at Maturity Level 5. The organization is able to predict its capability for performing work because it can quantify the capability of its workforce and of the competency-based processes they use in performing their assignments) P-CMM . The five stages of the People CMM framework are: P-CMM . Lack of relevant knowledge.Performance Appraisal In TCS 13 The People Capability Maturity Model consists of five maturity levels that establish successive foundations for continuously improving individual competencies. motivating improved performance.Managed Level (Typical characteristics: Work overload. Ritualistic practices. and to workforce practices and activities. and Emotionally detached workforce).Predictable Level (The organization manages and exploits the capability created by its framework of workforce competencies. there is inconsistency in how these practices are performed across units and little synergy across the organization. Displacement of responsibility. The organization is now able to manage its capability and performance quantitatively. Low morale) P-CMM . These improvements are made to the capability of individuals and workgroups.Optimizing Level (The entire organization is focused on continual improvement. or skill. f o r . 16th march 2013 <http://www.com/performance-appraisalmethods/>.typesperformance-appraisal-1904.a p p r a i s a l .com/>.naukrihub.wsj.humanresources.co.hrvinet.r e v i e w / > .html>.in/what-are-the-objectives-of% E 2 % 8 0 % 9 C p e r f o r m a n c e .s ys t e m > . 16th march 2013 <http://www. 16th march 2013 <http://appraisals.bms.yo u r .Performance Appraisal In TCS 14 References 16th march 2013 <http://blogs.chron.com/indiarealtime/2013/01/14/career-journal-fivet i p s . 16th march 2013 <http://smallbusiness. .com/different.p e r f o r m a n c e .