Performance Appraisal at Tech - Mahindra
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A WINTER TRAINING REPORT ON “Performance Appraisal at Tech - Mahindra”
Submitted to Mr. Pramod Kumar Pandey MAHARSHI DAYANAND UNIVERSITY, ROHTAK In partial fulfillment of the requirement For the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION (INDUSTRY INTEGRATED) (III Semester) Submitted by Name: Yogesh Kumar Choken Regn. No.: 1130320034 Roll No. : 119011122 JAGANNATH INSTITUTE OF MANAGEMENT SCIENCES ELC CODE: 330912010 OCF Site NO.2, Sector-C, Near Police Station, Nelson Mandela Road, Vasant Kunj, New Delhi-70 March, 2013
CERTIFICATE This is to certify that Yogesh Kumar Choken a student of the Maharishi Dayanand University, Rohtak, has prepared his Training Report entitled “Performance Appraisal at Tech - Mahindra” at Mahindra LTD. under my
guidance. He has fulfilled all his requirements leading to award of the degree of BBA (Industry Integrated). This report is the record of bonafide training undertaken by his and no part of it has been submitted to any other University or Educational Institution for award of any other degree/diploma/fellowship or similar titles or prizes.
I wish his all success in life.
Signature of Faculty Guide: Name of Faculty Guide: Designation: Qualifications: Seal of the ELC:
STUDENTS DECLARATION I hereby declare that the Training Report conducted at Tech Mahindra LTD Under the guidance of Mr. Pramod Kumar Pandey submitted in Partial fulfillment of the requirements for the Degree of BACHELOR OF BUSINESS ADMINISTRATRION (Industry Integrated) TO MAHARSHI DAYANAND UNIVERSITY,ROHTAK Is my original and the same has not been submitted for the award of any other Degree/Diploma/Fellowship Or other similar titles or prizes.
Place: New Delhi
Yogesh Kumar Choken
Date: October, 2012
Regn No.:1130320034 Roll No.: 1190111218
The beatitude, bliss and euphoria that accompany successful completion of any task would be incomplete without the expression of gratitude to the people who made it possible with their every bit of help. As success in any work is credited to hard work, but without a proper guidance it may be out of one’s reach, so with reverence and honor we acknowledge all those who helped us in carrying out this project successfully. We avail this opportunity to express our profound sense of sincere and deep gratitude to Mr. Pramod Kumar Pandey who guided us with his valuable help in channelizing our effort in the right direction during the course of the project. We are also grateful people who filled in the questionnaire and provided us the inputs so that the sampling data could the prepared. Last but not the least, we are very much thankful to our friends and well-wishers and all others who have been instrumental in completion of this work.
(Yogesh Kumar Choken )
TABLE OF CONTENTS
S. No TOPIC CHAPTER 1 – INTRODUCTION
Page. No 1-51
1.1. Overview of Industry as a whole 1.2. Profile of the Organization
Mission & Vision
1.3 Introduction to the Topic/Title/Problem Studied
CHAPTER 2 - OBJECTIVE & METHODOLOGY
2.1. Objectives of the Study 2.2. Research Methodology
Sources of data
Sample size, if any
Methods of data collection
Tools and techniques of analysis
2.3. Limitations of the Study
CHAPTER 3 - DATA ANALYSIS & INTERPRETATION
CHAPTER 4 - FINDINGS
CHAPTER 5 - RECOMMENDATIONS
Tables/Graphs/ Annual Reports of Company/Industry etc.
Any other relevant documents
INTRODUCTION 1.1. Overview of Industry as a whole The information technology sector deals with the design, development and management of both computer software and hardware applications. This industry has witnessed growth despite the economic recession that hit the global market. Information technology (IT) is defined as the design, development, implementation and management of computer-based information systems, particularly software applications and computer hardware. Today, it has grown to cover most aspects of computing and technology. The reason why it has catapulted in importance is due to the improving accessibility, awareness and utility of technology. It is a common fact that a country’s IT potential is paramount for its march towards global competitiveness, healthy GDP and defense capabilities. IT professionals perform a variety of duties ranging from data management, networking, engineering computer hardware, database and software design, to the management and administration of entire systems. With the already high penetration of conventional personal computer and network technology, coupled with the growing convergence of information, communication and entertainment, the industry is now keenly focused on the integration with other technologies such as mobile phones, automobiles and televisions etc, thereby increasing the demand for such jobs. The largest firms globally include IBM, HP, Dell and Microsoft.
Performance In India, it is important to make the distinction between IT and ITES (IT enabled services). The latter refers to services delivered over telecom networks/ Internet to a range of external business areas (Colloquially referred to as KPO and BPO) and is treated elsewhere on this website (see ITES industry overview). Hence, we shall focus on the IT industry here by limiting the discussion to electronics hardware manufacturing and software development and services. Despite the unprecedented global economic downturn, the Indian IT industry has weathered the storm well, and will achieve sustainable growth going forward. India is
expected to witness an average 8% salary increase in 2010 and ~50% of companies have strong hiring plans, according to a survey by global HR consultancy Mercer, giving yet another indication of the high confidence levels among the country’s corporate houses after the economy staged a faster-than-expected recovery from the slowdown. While the larger players continue to lead growth, gradually increasing their share in the industry aggregate, several high-performing small and medium enterprises have also stood out.
Growth Potential The strong demand for electronic hardware and software in India has been fuelled by a variety of drivers including the high growth rate of the economy, emergence of a vast domestic market catering to the new generation of young consumers, a thriving middleclass populace with increasing disposable incomes and a relatively low-cost work force having advanced technical skills. Indeed, the Government has also identified growth of this sector as a thrust area as there remains great expectation for significant growth given the fairly low levels of penetration of technology among the 1.1 billion population; There were only 60 million Internet users in 2009, 7 million DVD players and personal computers were sold in 2008-09, and 11 million new mobile subscribers were added every month in the same period. In this scenario there is now a big opportunity to step up the production to gain higher global share besides meeting the domestic demands. The Indian IT sector has also built a strong reputation for its high standards of software development ability, service quality and information security in the foreign market- which has been acknowledged globally and has helped enhance buyer confidence. The industry continues its drive to set global benchmarks in quality and information security through a combination of provider and industry-level initiatives and strengthening the overall frameworks, creating greater awareness and facilitating wider adoption of standards and best practices.
Future Prospects The industry is likely to continue growing from strength to strength, as local players incorporate best in class practices from global counterparts whilst retaining their edge in terms of lower cost of labor and focused governmental investments. New graduates with degrees in related fields such as electrical engineering and computer science can hope to achieve significant professional growth and a healthy remuneration from companies looking to hire the best talent available, given the high proportion who leave to pursue jobs in this sector overseas. “Performance Management is an ongoing, continuous process of communicating & clarifying job responsibilities, priorities and performance expectations to ensure mutual understanding between supervisor and employee”. Creating high performance culture is nothing but a cycle of setting goals, appraising and rewarding. This cycle has become core basis for performance management practice followed in several corporate organizations. Experiences showed that substantive efforts are made to stretch goals, appraise performance using sate of art techniques and reward performance in holistic manner by monetary and nonmonetary incentives. Review of performance management system prevailing in organisation in India reveals that they are predominantly designed to create meaningful framework for defining performance centers, identifying accountability measures, appraising performance progress and rewarding fulfillment of targets.
Tech Mahindra Tech Mahindra is a global systems integrator and business transformation consulting firm focused on the communications industry. With the convergence of media and telecom, the changing landscape of the telecom industry is becoming extremely competitive. As companies rapidly strive to gain a competitive advantage, Tech Mahindra helps companies innovate and transform by leveraging its unique insights, differentiated services and flexible partnering models. This has helped our customers reduce operating costs and generate new revenue streams.
Recognizing that margins from connectivity are rapidly falling and that future growth in revenues and margins will only come from new applications, content and services, operators today are busy addressing business opportunities revolving around Commerce, Content, Convergence and Customer Experience to gain a sustainable Competitive Advantage. At Tech Mahindra, we understand this.
Tech Mahindra is the Leading provider of IT Solutions to the Telecom industry For over two decades, Tech Mahindra has been the chosen transformation partner for wireline, wireless and broadband operators in Europe, Asia-Pacific and North America. Majority owned by Mahindra & Mahindra, one of the Top 10 industrial houses in India, in partnership with British Telecommunications plc (BT), world’s leading communications service provider, Tech Mahindra has grown rapidly to become the 5th largest software exporter in India (NASSCOM 2009) and the first largest telecom software provider from India (Voice & Data 2009). Over 30,000 professionals service clients across the telecom eco-system, from our global network of development centres and sales offices across Americas, Europe, Middle-East, Africa and Asia-Pacific. Committed to quality, Tech Mahindra adds value to client businesses through wellestablished methodologies, tools and techniques backed by its stringent quality processes. Tech Mahindra is BS25999 certified which is a British Standards Institution (BSI) standard in the field of Business Continuity Management (BCM). Tech Mahindra is also ISO 9001:2008 certified and is assessed at SEI-CMMI Level 5. Tech Mahindra has also been awarded the ISO 20000-1 (IT Service Management Standard) and ISO 27001 (Security Management Standard) certification for its development centers across India and UK. Tech Mahindra is certified at PCMM Level 5 for its people-care practices and is the third company in the world to have been appraised for SSE-CMM Level 3.
Careers at Tech Mahindra Tech Mahindra offers a fast-paced career with global exposure to best business practices and a chance to be at the forefront of cutting-edge technologies. We believe in a vibrant and open door approach where hierarchies do not matter. Tech Mahindra offers you one of the best environments for career development and progression. A strong performance culture and a fully automated in-house appraisal system ensure that your career is chalked out and defined in line with your individual growth, and the overall growth of the organization. Tech Mahindra ensures that career development activities are aligned with organizational objectives to achieve growth for both employees and the company. The company provides immense opportunities to its employees to upgrade their skills and thereby achieve their career goals. At Tech Mahindra, we aim to achieve optimum utilization of available skill sets across the organization. We believe that job rotation is a crucial process that helps individuals to enhance their technical, behavioral and managerial competence. Our employees have the flexibility to switch over to a Management or a Specialist role in their career at Tech Mahindra. We understand that recognition plays an important role in motivating employees to demonstrate superior performance. There are many ways in which we acknowledge and appreciate good performance - from a sincere sharing of an ‘I Appreciate’ Note for a specific job well done to granting honors through an established formal reward program. So, if you're an achiever with a passion for setting and attaining goals, you'll find many opportunities for being recognised at Tech Mahindra.
1.2 COMPNAY PROFILE OF TECH MAHINDRA LIMITED
History Tech Mahindra was incorporated as a joint venture between Mahindra & Mahindra and British Telecom plc in 1986 under the name of ‘Mahindra British Telecom’. Later, the name was changed to ‘Tech Mahindra’, to reflect the diversification and growth of the client base and the increased breadth of our service offerings. Milestones 1986 Incorporation in India 1987 Commencement of Business 1993 Incorporation of MBT International Inc., the first overseas subsidiary 1994 Awarded the ISO 9001 certification by BVQI 1995 Established the UK branch office 2001 Incorporated MBT GmbH, Germany incorporated Re-certified to ISO 9001:1994 by BVQI 2002 Assessed at Level 5 of SEI CMM by KPMG Incorporated MBT Software Technologies Pte. Limited, Singapore 2003 Re-certified to ISO 9001:2000 by RWTUV 2005 Certified to BS 7799-2:2002 (Information Security Management Framework) by RWTUV now known as TUV Nord Acquired Axes Technologies (India) Private Limited, including its US and Singapore subsidiaries Assessed at Level 5 of SEI CMMI by KPMG 2006 Name changed to Tech Mahindra Limited Assessed at Level 5 of SEI People-
CMM (P-CMM) by QAI India Raised Rs 4.65 billion ($100 million) from a hugely successful IPO to build a new facility in Pune, to house about 9,000 staff Formed a JV with Motorola Inc. under the name CanvasM 2007 Acquired iPolicy Networks Private Limited Launched the Tech Mahindra Foundation to address the needs of the underprivileged in our society, especially children 2009 With Satyam acquisition, Tech Mahindra is well positioned to be a leader in the broader IT services space, serving a wide array of industry verticals like banking and financial services, manufacturing, energy and utilities in addition to telecom 2010 AT&T 2010 Supplier Award for outstanding performance & service to AT& T and its affiliates Expands footprint in Latin America
1.2.1 Origin: Overview Tech Mahindra is part of the US $14.4 billion Mahindra Group, in partnership with British Telecommunications plc (BT), one of the world’s leading communications service providers. Focused primarily on the telecommunications industry, Tech Mahindra is a leading global systems integrator and business transformation consulting organization. Tech Mahindra has recently expanded its IT portfolio by acquiring the leading global business and information technology services company, Mahindra Satyam (earlier known as Satyam Computer Services). Tech Mahindra’s capabilities spread across a broad spectrum, including Business Support Systems (BSS), Operations Support Systems (OSS), Network Design & Engineering, Next Generation Networks, Mobility Solutions, Security consulting and
Testing. The solutions portfolio includes Consulting, Application Development & Management, Network Services, Solution Integration, Product Engineering, Infrastructure Managed Services, Remote Infrastructure Management and BSG (comprises BPO, Services and Consulting). With an array of service offerings for TSPs, TEMs and ISVs, Tech Mahindra is a chosen transformation partner for several leading wireline, wireless and broadband operators in Europe, Asia-Pacific and North America. Tech
Operations globally and has over 128 active customer engagementsmostly in the Telecom sector. The company has been involved in about 8 transformation programs of incumbent telecom operators. In the Telecom sector, Tech Mahindra has niche and proven domain expertise, distinctive IT skills, research and development, innovative delivery models and approach to off-shoring. Company’s solutions enable clients to maximize returns on IT investment by achieving faster time to market, reduced total cost of ownership resulting into high levels of customer satisfaction. Tech Mahindra’s achievements have been recognized by various industry analysts, forums and clients – winning several prestigious awards and accolades. Tech Mahindra has a global footprint through operations in more than 31 countries with 17 sales offices and 15 delivery centers. Assessed at SEI CMMi Level 5, Tech Mahindra's track record for value delivery is supported by over 43,500 professionals who provide a unique blend of culture, domain expertise and in depth technology skill sets. Its development centers are ISO 9001:2008 & BS7799 certified.
1.2.2: Achievements Awards & Recognitions Tech Mahindra’s quality service is recognized by customers, media and various associations globally. The prestigious awards and recognitions that reflect expertise and innovation of Tech Mahindra include:
CanvasM ranked amongst India's Top 10 VAS players by V&D 2011
Among top 3 at the ‘DSCI excellence award for security in IT services company (Large)’, 2011
Tech Mahindra tops 2011 Global Services 100 in the following categories: • Global
Vendors • ADM
Vendors • IM
Vendors • Speciality
Engineering Vendors • Contact Center and Customer Management Vendors •
Ranked 9th in the NASSCOM Top 20 IT-BPO employers, 2010-2011
Voice&Data ranks Tech Mahindra as India's Top Telecom Software Company for the Year 2010 -11
Winner of the 2011 Microsoft Communications Sector Partner of the Year Award.
System Integrator of the Year in the Telecom sector award by a leading global Analyst and Research firm as a part of the India IT & Telecom Excellence Award.
Winner of 2010 and 2011 AT&T Supplier Award for outstanding performance & service to AT&T and its affiliates
CanvasM wins CMAI 5th National Telecom Awards for ‘Excellence in Innovation with Rural Telecom Focus’
Ranked 5th in NASSCOM's Top 20 IT services Exporters, 2009-2010
9 th Largest IT-BPO Employer in India (NASSCOM HR Summit, 2010)
Best System Integrator by CMAI and INFOCOM's National Telecom Awards 2010
1st Runner-up for the Best Service Enablement Implementation at the BOSS Conference & Expo 2010
Leapvault Change Leadership Award 2010 for Game Changing M&A - Domestic Category
In the 'Leaders' Category in the '2010 Global Outsourcing 100' (IAOP's Annual List of the Best Outsourcing Service Providers)
'Software Solution of the Year Middle East' by TMT Finance & Investment
Middle East Awards •
Ranked 12th in Gartner’s Top 50 Telecom Operations Management System (TOMS) Vendors, by Market Share and Revenue, Worldwide, 2009-2010
Amongst the 'Top 50 NASSCOM Innovators' for the Year 2009
Ranked #1 in Telecom Software category by Voice & Data, 2009 (V&D100 Ranking)
Ranked 13th in Gartner's Top 50 Telecom Operations Management System (TOMS) Vendors, Worldwide, by Market Share and Revenue 2007-2009
In the Leaders Category in 'The 2009 Global Outsourcing 100' (IAOP's Annual Listing of the World's Best Outsourcing Service Providers)
Deloitte Technology Fast 500 APAC 2008 Deloitte Technology Fast 50 India 2008
• Award for Excellence in Training (Employer Branding Awards 2008-2009) •
'Best Overall Recruiting & Staffing Organization of the Year Award' (RASBIC Awards 2009)
Award for Managing Health at Work (Employer Branding Awards 2008-2009)
Award for Excellence in Training (Employer Branding Awards 2008-2009)
BusinessWeek Award for Asia’s Best Performing Companies, 2008
Ranked 2nd in Telecom Software providers of India by Voice & Data, 2008 (V&D100 Ranking)
“Growth Excellence Award” by Frost & Sullivan, 2008
6th Largest Software Services Company in India (NASSCOM 2008)
Award for “Best Start-up Company” at Mobile Content Awards & Conference 2008 (MCA08) to CanvasM
Award in “Largest Revenue Category” of “IT and ITeS (excluding Hardware) Sector” by D&B – ECGC Indian Exporters Excellence Awards, 2008
Ranked 12th Largest TOMS vendor by Gartner in "Market Share: Telecoms Operations Management Systems – Worldwide, 2006-2007" April 2008
"Best Billing Solution" Category at "Billing and OSS World (B/OSS) Excellence Awards 2008", April 2008
The Brand Leadership Award by the Asia Brand Congress, 2008
'IT People Employer of the Year Award' (IT People Awards for Excellence in IT 2008)
'Best Overall Recruiting & Staffing Organization of the Year Award' (RASBIC Awards 2008)
In the Leaders Category in 'The 2008 Global Outsourcing 100' (IAOP's Annual Listing of the World's Best Outsourcing Service Providers) 'Organization with the most innovative HR practices Award' (Asia Pacific HRM
Global HR excellence Award 2007) 3rd largest BSS Systems Integrator and 5th largest BSS Vendor (GartnerDataquest, World Wide Analysis 2000-2006, published in 2007)
Product Innovation Award for Enterprise DRM (Frost & Sullivan Asia ICT Awards 2007)
Vertical Growth Leadership in Telecom Software (Frost & Sullivan Asia ICT Awards 2007)
The Elite member of the Deloitte Technology Fast 50 India (2007)
The Brand Leadership Award by the Asia Brand Congress, 2007
1.2.3: Mission & Vision Vision To be the most respected solution provider in the communications ecosystem Anticipating and enabling change Admired for technology, agility, innovation, business models and the quality of its talent
Values Tech Mahindra is focused on creating sustainable value growth through innovative solutions and unique partnerships. Our values are at the heart of our business reputation and are essential to our continued success. We foster an environment to instill these values in every facet of our organization. • Customer first • Good corporate citizenship • Professionalism • Commitment to quality • Dignity of the individual Brand Promise We have been growing rapidly, and capturing mind-share in specific communities. Tech Mahindra’s brand positioning highlights the success of the company which has emerged as the fastest growing provider of IT Solutions & Services in the Telecom space. The positioning exemplifies the performance of Tech Mahindra, as a success system, which is powering the growth of its customers and employees. We are a part of the exhilarating Telecom technology space that is characterized by highly innovative, speed-of-response based solutions, delivered with agility and flexibility and the new brand reflects this true character of the telecom world. The positioning incorporates both the success of the past and the promise of the future, where we are going to ‘Create the next wave’ - our brand mnemonic. Our brand echoes our commitment to not only creating solutions, but to creating the next wave in targeted and focused solutions guaranteed to propel our customers into the next generation. A visionary Management team coupled with an equally brilliant team of professionals is what we believe will make us the global leaders of the new age. Here’s to the next wave!
Social Responsibility At Tech Mahindra, ‘community work’ is not just an act of favour or charity, directed towards doing something for the welfare of the needy. It is, in fact, an initiative that is voluntarily undertaken to improve the quality of life around us. As an active corporate member of society, Tech Mahindra is committed to building relationships with local communities and the society as a whole. Corporate social responsibility reflects both our brand and our values by addressing some of society's most complex problems and striving to bring about a sustainable solution. We at Tech Mahindra have given Corporate Social Responsibility its due importance with the creation of a foundation dedicated to funding and helping various programs in the education of the underprivileged which will help in reducing socio-economic disparities. Tech Mahindra is committed to earmarking 1.5% of its Profit After Tax for CSR activities. Aim To inspire and motivate people around us via effective use of our resources in a rational manner and with humility. Focus Areas Education Woman empowerment Computer donations At Tech Mahindra, we endeavor to make a positive contribution to the underprivileged by supporting a wide range of educational and socio economic initiatives. Community projects and programs are driven by active participation from Tech Mahindra employees. Our commitment to address important community needs extends throughout our philanthropic outreach programs driven by the Tech Mahindra Foundation
1.2. 4. Product range of the company IT Solutions
Network Solutions and Services
IT Solutions: Dynamics of telecom industry have made CIO/Enterprise Architect pull different levers together at a time to ensure business benefits. Tech Mahindra has Operations Support Systems (OSS) or back office IT offerings for following market segments:
Telecom Service Providers (Wire line and Wireless)
OSS COTs/ISV vendors
Telecom Equipment Manufacturers (TEMs)
Our Managed Services cuts across Business Processes, Application, Infrastructure and Network, bringing in the expertise that spans across all aspects of the Telecom business including Fulfilment, Assurance, Customer Care, Billing, Network, Data Center and Support functions along with a choice of Pricing and Operation model. Our services portfolio resolves your critical strategic concerns, not just the bottom line pressures. Our offerings are built on experience of servicing global telecom giants and technology partnerships with world’s best solution providers.
Board of director
Mr.Anand G Mahindra, Chairman Anand Mahindra is the Non-Executive Chairman of the Company and is the Vice Chairman & Managing Director of Mahindra & Mahindra Ltd. Anand began his career with MUSCO, as Executive Assistant to the Finance Director. In 1989, he was appointed as President and Deputy Managing Director of MUSCO. Anand has received several awards, including the 'Knight of the Order of Merit' by the President of the French Republic and the 2005 Leadership Award from the American India Foundation.
He continues to be involved with Harvard and is a co-founder of the Harvard Business School Association of India, a member of the Board of Dean's Advisors and of the Asia Pacific Advisory Council of the Harvard Business School. He also serves on the Advisory Committee of the Harvard University Asia Centre and on the Harvard Business School Advisory Council for the Initiative on Corporate Governance. Anand is the Past President of the Confederation of Indian Industry and of the Automotive Research Association of India. Anand is the Co-Chairman of the International Council of Asia Society, New York, and Co-President of The Euro India Centre. He is also the Founder Chairman of the Mumbai Festival, which was launched in January 2005. An alumnus of Harvard College, Anand graduated Magna cum Laude (High Honours) in 1977. In 1981, he received an MBA degree from the Harvard Business School.
Mr.Vineet Nayyar, Vice Chairman, MD & CEO Vineet is the Vice Chairman & Managing Director of Tech Mahindra and the Chairman of Mahindra Satyam. An accomplished leader, he has led several organizations across industries, creating high performance teams and successful businesses. In a career spanning over 40 years, he has worked with the Government, international multilateral agencies and the corporate sector (both public and private). Vineet started his career with the Indian Administrative Service. While in the Government, he held series of senior positions, including that of a District Magistrate, Secretary - Agriculture & Rural Development for the Government of Haryana and Director, Department of Economic Affairs, Government of India. He also worked with the World Bank for over 10 years in a series of senior assignments, including successively being the Chief for the Energy, Infrastructure and the Finance Divisions for East Asia and Pacific.
In the Corporate sector, Vineet was the founding Chairman & Managing Director of the state owned Gas Authority of India. And in the Private Sector, he served as the Managing Director of HCL Corporation and as the Vice Chairman of HCL Technologies. He was also the founder & CEO of HCL Perot Systems. In addition to his responsibilities at Tech Mahindra, Nayyar’s principal directorships include his serving as a director on the boards of Venturbay Consultants Private Limited, Mahindra Logisoft Business Solutions Limited, Tech Mahindra (Thailand) Limited, CanvasM Technologies Limited, Tech Mahindra (Beijing) IT services Limited, Mahindra Holidays and Resorts India Limited, Mahindra United World College of India, Kotak Mahindra Old Mutual Life Insurance Limited, The Great Eastern Shipping Company Limited, Vidya Investments Private Limited, Vidya Education Investment Private Limited, Maurya Education Company Private Limited, Tech Mahindra (Americas) Inc, Tech Mahindra GmbH, Mahindra Education Foundation, Tech Mahindra Foundation, Vidya Education Foundation, HPS Social Welfare Foundation and Cathedral Vidya Trust. In addition to his current responsibilities as Vice-Chairman of Tech Mahindra, he also serves as a Director on the Boards of Great Eastern Shipping, Business Standard, Kotak Life Insurance, The Mahindra United World College of India, The Mahindra Holidays and Resorts India Ltd., and the Tech Mahindra Foundation. Vineet holds a Master’s degree in Development Economics from Williams College, Massachusetts.
Dr. Raj Reddy, Director Raj Reddy is a Non-Executive Independent Director of the Company. Presently he is the Mozah Bint Nasser University Professor of Computer Science and Robotics in the School of Computer Science at the Carnegie Mellon University, and has been on the
faculty of the Carnegie Mellon University USA since 1969. His research interests include the study of human-computer interaction and artificial intelligence. He has been awarded the Legion of Honour by President of France in 1984 and the Padma Bhushan by President of India in 2001.
Hon. Akash Paul, Director Hon. Akash Paul is a Non-Executive Independent Director of the Company. Akash has been with the Caparo Group, a steel and engineering company, one of UK's largest private companies. He has an interest in education and serves on the School of engineering, Dean's Advisory Council at Carnegie-Mellon University and the Dean's Advisory Council at the Sloan School of Management, MIT. He holds an MBA degree from Massachusetts Institute of Technology and a Bachelor of Science degree in Chemical engineering and Economics from Carnegie-Mellon University.
Nigel Stagg, Director Nigel Stagg began his career with BT in 1979, holding a number of marketing and purchasing positions in the early part of his BT career, becoming General Manager for Consumer Products in 1995 – a post he held for five years. Following that, Nigel spent two years as Director of BT Retail Product Management. This was followed by two years as Chief Executive Officer of BT Conferencing,
during which time BT Conferencing received two Frost & Sullivan Awards for Best Practice. In January 2006, he was appointed the role of Managing Director for BT Enterprises, where he has overall responsibility for six standalone business units including Payphones, Expedite, redcare, Conferencing, Directories and dabs.com. He led the team responsible for the acquisition of dabs.com in April 2006. Nigel was appointed Managing Director, Customer Service on 1 May 2008 and has been responsible for driving significant improvements to the customer experience while reducing costs and increasing the focus on quality and one contact resolution. Nigel was appointed Managing Director, BT Business on 25 November 2009.
Mr.Anupam Puri, Director Anupam Puri is Non-Executive Independent Director of the Company. Anupam was a management consultant with McKinsey for 30 years, working with companies, governments and multilateral agencies on strategy and organization. He founded McKinsey's practice in India. Since 2000, he has served as Non Executive Director of several Indian companies. His education includes a BA in Economics from Delhi University, and MA and M.Phil degrees in Economics from Oxford University. Mr.Bharat N. Doshi, Director Bharat Doshi is a Non-Executive Director of the Company. In August 1992, Bharat joined the Board of Mahindra & Mahindra as Executive Director in charge of Finance & Accounts, Corporate Affairs and Information Technology. He has been the President of the Trade & financial services Sector since December 1994. Bharat is
also on the Board of Governors of the Mahindra United World College of India and Indian Institute of Management, Kozhikode. Bharat is actively involved with the work of several Chambers of Commerce and Industries in India and is a member of the Managing Committee of Bombay Chamber of Commerce & Industry ("BCCI"), the Advisory Board and Think Tank of the BCCI Trust for Economic Management Studies and is a founding member and member of the Governing Council of Indian Association of Corporate CFOs and Treasurers (InAct). He was the Chairman of Expert Committee on Economic Affairs of BCCI during 1996-97. He was the Convenor of the BCCI "Think Tank", constituted as a special body to support the Chamber’s initiatives on policy issues. Bharat was adjudged ‘India's Best CFO' by the leading business fortnightly "Business Today"(India Today Group Publication) in April 2005. He was also conferred the 'CFO of the Year' Award. He is a fellow member of both, the Institute of Chartered Accountants of India and the Institute of Company Secretaries of India and has a Master's Degree in Law from the University of Bombay. He has participated in the Program for Management Development at the Harvard Business School. Mr. Richard Cameron, Director Richard has been the CFO of BT Operate since March 2008, which manages BT’s IT and Network infrastructure platforms as a single converged operation, sets and manages BT’s Security policy and processes and manages the group’s energy requirement and carbon strategy. During this time BT Operate has delivered significant reductions in its operating and capital expenditure through reductions in its workforce, more efficient business operations and improved supply chain management. Prior to this he was FD of the Consumer division with responsibility for the finance and pricing. During this time the business delivered both a return to profit growth and also grew its ARPU by 10%, reversing a declining trend. Before this he was Head of Finance, Reporting, Planning & Analysis where he was responsible for the creation of
a centre of excellence which brought together the teams managing Revenue, Margin, Sales and Volume analysis across the group. He Joined BT in 2003 from Level 3 where he had held a number of posts including FD for the Global Network division and FD Accounting & Reporting for the International Division. Previous companies he worked for include Telewest and Utility Cable. Mr.Ulhas N. Yargop, Director Ulhas N. Yargop is a Non-Executive Director of the Company. Ulhas joined the Mahindra & Mahindra Group in 1992 as General Manager - Corporate Planning. He later moved to the Automotive Sector as General Manager - product Planning, and was responsible for the product management function for automotive products. In 1994, he was appointed as General Manager, Mahindra-Ford Project, and led the Mahindra & Mahindra team working on the joint venture project with Ford Motor Company. In 1996, he was appointed as Treasurer and assumed responsibility for Corporate Finance. Since 1999, Ulhas has been President – telecom & Software Sector and a member of the Group Management Board. He holds a Bachelor’s degree in Technology from the Indian Institute of Technology, Chennai and an MBA degree from the Harvard Business School. Mr.Paul Zuckerman, Director Mr. Paul Zuckerman is a non-executive independent director of Tech Mahindra, is the chairman and Chief Executive Officer of Zuckerman & Associates Limited, which advises technology and life science related start ups and works with strategic and venture capital sources of finance. He has obtained a BA and MA in Economics and a Higher National Diploma in Agricultural Economics from Trinity College, Cambridge University. He also holds a Ph.D. in Agricultural Economics from Reading University, United Kingdom. He is an independent director on a number of international boards and was deputy chairman of Icap plc.
Mr.M. Damodaran, Non-Executive Director Mr. Damodaran is the Non-Executive Director of the company. He has recently completed his tenure as the Chairman of SEBI. As Chairman, he was instrumental in setting the pace for appropriate regulation of the securities market in India. His initiatives at SEBI have resulted in India’s financial markets being recognized as being amongst the best regulated in the world. Mr. Damodaran’s prior appointments include Chairman of IDBI and Chairman of UTI. Earlier, he was Joint Secretary (Banking Division), Ministry of Finance for five years He was also a member of the Indian Administrative Service and has served as Chief Secretary, Government of Tripura, apart from various assignments with the Central Government at the Ministry of Finance, Ministry of Commerce and Ministry of Information & Broadcasting. Mr. M Damodaran holds degrees in Economics and Law from the Universities of Madras and Delhi. Mr.Ravi Kulkarni, Director Ravi Kulkarni is Senior Partner, Khaitan & Co. Advocates and a member of Bar Council of Maharashtra & Goa. He has immense experience in all aspects of corporate law; Mergers & Acquisitions, cross-border transactions in Capital Markets, Securities Law, Restructuring, Foreign Collaboration, etc. On the board of various listed companies in India, Ravi advises several large Indian and multinational clients in various business sectors. Mr.B.H.Wani, Director B.H.Wani is a senior solicitor and advocate practicing in the Bombay High Court, at Mumbai for the last 40 years. Subsequent to his retirement as senior partner of Little & Co, he is practicing more in advisory capacity. During his career, he has independently handled civil matters of corporate bodies of India and abroad, relating to sale and purchase of properties, matters covering formation of companies, joint
ventures, collaborations, trademarks etc. and resolving issues relating to commercial laws, corporate laws including company law, banking, arbitration law, monopolies, mergers, takeovers.
1.2.5 Organization Structure
1.3 Introduction to the Topic/Title/Problem Studied Performance appraisal, a “human resources” activity used to determine the extent to which the employees are performing the job effectively. Performance means to do something and Appraisal means to decide the value of the work done. Performance appraisal together, means dividing the value of the work done by an individual. Therefore, performance appraisal is a process of recording assessments, criteria, performance, potential and developmental needs.
Therefore, performance appraisal may be defined as any procedure that involves: 1. Setting work standards. 2. Assessing the employee’s actual performance relative to their standards. 3. Providing feedback to the employees with the aim of monitoring that person to eliminate his deficiencies and/or continue to perform better. Generally, appraising the performance of an individual has been known as merit rating. But in recent years, different terminologies have been used to denote this process, such as performance appraisal, performance review, performance evaluation, employee appraisal, progress report, personnel review etc. Performance appraisal or merit rating is one of the oldest and most universal practices of management. It is an inevitable process, wherever men are employed on any kind of productive work in any organization. It is obvious that some form of systematic performance appraisal provides management with data for wage and salary administration, transfer, training, even termination of employment. Performance appraisal is essential to understand and improve the employee’s performance through human resource development. In fact, performance appraisal is the basis for human resource development. Recent developments in human resources management indicate that appraisal is the basis for employee development. Performance appraisal indicates the level of desired performance, level of actual
performance and the gap between these two. This gap should be bridged through human resources techniques like training, development etc. There is hardly any organization which does not own the importance of its human asset; yet, how many of them know it and keep an account of it? The human asset is sharp and flexible, with undefined potential. Performance is the key word in the life of an enterprise; it is the staffing tat performs the management tasks; not the machines or the materials. It is, therefore, amazing, yet understandable, how the appraisal of the employee effectiveness is mostly left to chance. It is amazing because of the importance of the task– the stake that it holds for the enterprise. And it is yet understandable, because of the difficulty of the appraisal. It will be our Endeavour, in this report to probe the content of the appraisal process, examine the problems, survey the appraisal methods in current practice and come to a conclusion. MEANING AND IMPORTANCE Meaning: Performance appraisal is the systematic, periodic and impartial rating on an employee’s excellence in matters pertaining to his present job and to his potentialities for a better job. When properly conducted, performance appraisal should not only let the employee know how well he is performing but also influence the employee’s future performance. Performance appraisal is a method of evaluating the behaviour of employees in the workspot, normally including both the quantitative and qualitative aspects of job performance. It indicates how well an individual is fulfilling the job demands. Often the term is confused with effort, but performance is always measured in terms of results and not efforts. Performance appraisal is not job evaluation. It refers to how well someone is doing the assigned job. Job evaluation determines how much a job is worth to the organization and therefore, what range of pay should be assigned to the job.
Thus, performance appraisal is a process of estimating or judging the value, excellence or qualities of employees in an organization. Importance Performance appraisal has become a very significant activity in most of the enterprises because it provides data about past, present and expected performance of the employees, which is helpful in taking decisions on selection, training and development, increases in pay, transfers and the like. These days a large amount of money is being spent on appraisals by most of the organizations. The following benefits of performance appraisal justify the designing of an effective program of performance appraisal: Performance Improvement - Performance feedback provides a scientific basis for judging the merit or worth of employees who will try to improve their performance if it is not up to the satisfaction of the employers. Placement Decisions - It is a sound basis for promotions, demotions, transfers or even termination of employees. Often promotions are a reward for past performances. Training and Development Needs - It helps in distinguishing between efficient and inefficient workers. Poor performance may indicate the need for retraining. Likewise, good performance may indicate untapped potential that should be developed. Career Planning and Development - Performance feedback guides career decisions about specific career paths one should investigate. It also helps the management to assign work to individuals for which they are best suited. External Challenges: Sometimes, performance is influenced by factors outside the work environment, such as family, financial, health or other personal matters. If uncovered through appraisals, the human resources department may be able to provide assistance.
If the appraisal is done scientifically and systematically, it will prevent grievances and develop a sense of confidence among the workers. Thus, appraisal helps in creating a congenial environment of employer-employee relations. Objectives of Appraisal The overall objective of performance appraisal is to improve organizational effectiveness by providing information about efficiencies and deficiencies of its human resources. The first function of this control mechanism is administrative i.e., it helps in administrating a reward and penalty system. It often provides the rational foundation for the estimation of the contributions of employees, and helps to determine the rewards and privileges rationally. The next important use of such appraisal is that it enables the management to inform the employees where they stand. In other words, it serves as a feedback to the employee. By letting the employee know how well he is doing or where he stands, it tells them what they can do to improve their performance. A third purpose of such appraisal is to locate or identify the potential for growth of individual employees. By identifying the strengths and weaknesses of an employee, it serves as a guide for formulating a suitable training and development program to improve their quality of work. Also, it helps to determine whether an employee can contribute more in a higher or different job. It helps in their suitable promotion or placement. Lastly, an analysis of the periodical assessments of all employees provides a fairly dependable connective data on the efficiency of the organizations, state of employee morale etc. to the top management where the appraisals are so structured as to elicit such information. In a concise manner, we can say that performance appraisals aim at attaining the following different purposes: To create and maintain a satisfactory level of performance.
To contribute to the employee growth and development through training, self and management development programs.
To help the superiors to have a proper understanding about their subordinates. To guide the job changes with the help of continuous ranking. To facilitate fair and equitable compensation based on performance. To facilitate testing and validating selection tests, interview techniques through comparing their scores with performance appraisal ranks. To provide information for making decisions regarding lay off, retrenchment etc. To ensure organizational effectiveness through correcting the employee for standard and improved performance and suggesting the change in employee behavior. The Appraisal Process
Approaches to Performance Appraisal:Methods/Techniques of Appraisal 1. Traditional Methods 2. Modern Methods Approaches to Performance Appraisal Generally speaking, three approaches are used in conducting performance appraisal. These are: 1. The goal or objective approach- Theoretically, this approach is the simplest and the most satisfying. When there is a goal for the manager- an objective, task, norm or target-in measurable or verifiable form, the appraisal process is simplified to a quantitative comparison of the achievement of the goal or objective. Basically, under this system, specific objectives are established for each position and they are appraised over a specific period of time. 2. The trait or traditional approach- The trait or traditional approach tends to appraise people on personality rather than on performance. The logic behind this approach is the assumption that there are certain qualities, traits etc. present in everyone- some of them are natural, others acquired and cultivated over a period of time. The possession of these traits in varying measures supplies the basis for appraisal. Hence, the scope was limited only to the extent of traits and personality in this approach. 3. The functional approach- This approach to appraisal is based on the thesis that an employer must succeed as an officer or manager. He must be judged by how much and how well he performs the functions of his post- planning, organizing, staffing, directing and controlling. A weightage is decided for the several functions and the employer’s score is recorded against each. The total score gives an index of his rating. Apart from the above-mentioned approaches, there are two approaches that are collectively known as composite approaches.
These are: (a) The trait-cum-goal approach (b) The goal-cum-functional approach These approaches have the combined features of any two approaches. The principle is that the goal has to be reached but through the possession and practice of certain essential traits/qualities and functions. METHODS/ TECHNIQUES OF APPRAISAL Several methods and techniques are available for measurement of the performance of an employee. The methods & scales vary for many reasons: 1. They differ in the sources of traits or qualities to be appraised. 2. They differ because of the different kinds of workers who are being rated. 3. It may be because of the degree of precision attempted in an evaluation may be different. 4. They may differ because of the methods used to obtain weightings for various traits. There is much argument on the best method to evaluate performance. Different authors have suggested different approaches. For example, Rock & Lewis classification; classification by Robbins; Strauss & Sayles classification system etc. The most widely used categorization is given by Strauss & Sayles. They have classified performance appraisal methods into traditional and newer or modern methods. The traditional methods lay emphasis on the rating of the individual’s personality traits such as initiative, dependability, drive, responsibility, creativity, integrity, leadership potential, intelligence, judgement, organizing ability etc. On the other hand, newer methods place more emphasis on the evaluation of work results, job achievements etc., than on personal traits.
Traditional Methods 1. Straight Ranking Method- In this system, the rating of a man in a work group is done against that of another. simplest method of separating the most efficient from the least efficient. It is relatively easy to develop and use. But the greatest limitation of this method is that, in practice it is very difficult to compare a single individual with another. Secondly, the task of ranking individuals is difficult when a large number of persons are rated. 2. Paired Comparison Method- By this technique, each person is compared with all other employees to be evaluated. The evaluator then checks the person he or she felt had been the better of the two on the criterion of over all ability to do the present job. The number of times a person has been preferred is tallied and the tally developed is an index of the performances. This method is not suitable for a large group. 3. Man-to-man Comparison Method- By this method certain factors are selected for the purpose of analysis (e.g. leadership, dependability, initiative) and the rater designs a scale for each factor. Certain scores for each factor are awarded to the appraisee. This method is used in job evaluation and is also known as the factor comparison method. It is not much use, because the designing of scales is a complicated task. 4. Grading Method- Under this system, the rater considers certain features and marks them accordingly to a scale. The scale may be: A-outstanding, B-very good, C-good or average, D-fair, E-poor and F-very poor or hopeless. The actual performance of an employee is then compared with these grade definitions and he is allotted the grade which best describes his performance. 5. Graphic/ Linear Rating Scale- It is the oldest and most widely used performance appraisal method. The rating can be a matrix of boxes or a bar graph where the evaluator checks off a location relative to the rating. This method is easy to understand and use. It permits a statistical tabulation of scores. One serious disadvantage is that, often the rating clusters on the high side when this method is used.
6. Forced Choice Description Method- It attempts to correct a rater’s tendency to give consistently high or consistently low ratings to all employees. Under this method, the rating elements are several sets of phrases relating to job proficiency or personal qualifications. The rater is asked to indicate which of the phrases is most and least descriptive of the employee. 7. Forced Distribution Method- This system is used to eliminate or minimize rater’s bias. A 5-point performance scale is used to rate the employees, without any descriptive statement. Employees are placed between the two extremes of ‘good’ and ‘bad’ job performances. This method tends to eliminate or reduce bias. This method is highly simple and very easy to apply in organizations. 8. Checklist Method- Under this method, the rater does not evaluate employee performance, he supplies reports about it and the personnel department does the final rating. A series of questions are presented concerning an employee’s behaviour. The rater then checks to indicate, if the answer to a question about an employee is positive or negative. This method suffers from bias on the part of the rater because he can distinguish positive & negative questions. This process can be very expensive & time consuming. 9. Free Essay Method- Under this method, the supervisor makes appraisal of an employee in his own words and puts down his impressions about the employee. He takes note of a number of factors like relations with colleagues, general organizing, planning ability, job knowledge, potential, attitude, development needs for future etc. There are no common criteria for evaluation. This system requires considerable time and thought from the appraiser. 10. Critical Incident Technique- This system attempts to measure a worker’s performance in terms of certain ‘events’ or ‘episodes’ that occur in the performance of the job. These events are known as critical incidents. The collected incidents are then ranked in order of frequency and importance. This method has a limitation that negative incidents are generally more noticeable than positive incidents.
11. Group Appraisal Method- Under this method, an appraisal group rates employees, consisting of supervisors who have some knowledge of their performance. The group then discusses the standards of performance for that job, the actual performance of the jobholder, and the causes of their particular level of performance and offers suggestions for future improvement, if any. This method is very time consuming. 12. Field Review Method- Under this method, a trainer employee from the personnel department interviews the supervisors to evaluate his subordinates. The supervisor is required to give his opinion about the progress of his subordinates, the level of the performance of each subordinate, his weaknesses, good points, ability etc. The success of this system depends upon the competence of the interviewer. One defect is that it keeps two management representatives busy with the appraisal. Modern Methods 1. Appraisal by Results/ Management By Objectives (MBO)- Management by objectives can be described as “a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individual’s major areas of responsibility and contributions of each of its members.” It strongly reinforces the importance of allowing the subordinate to participate actively in the decisions that affect him directly. Subordinates become involved in planning their own careers. MBO is result-oriented. MBO helps in increasing employee motivation. But MBO program takes a great deal of time, energy and form. There is sometimes a “tug of war” in which the subordinate tries to set the lowest target possible and the supervisor the highest. 2. Assessment Center Method- Under this method, many evaluators join together to judge employee performance in several situations with the use of a variety of criteria. Assessments are made to determine employee potential for promotion. The assessment centers generally measure interpersonal skills and other aspects such as: organizing and planning, getting along with others, quality of thinking, resistance to stress, motivation to work etc.
3. 360 Degree Performance Appraisal- Some organizations have expanded the idea of upward feedback into what they call 360 degree feedback. Performance information is collected “all round” an employee. From his supervisors, subordinates peers and internal and external customers. The feedback is generally used for training and development rather than for pay increase. 4. Human Asset Accounting Method- The human asset accounting method refers to activity devoted to attaching money estima external customer goodwill. If able, welltrained personnel leave a firm, the human organization is worthless; if they join it, its human assets are increase. This method is not yet very popular. 5. Behaviorally Anchored Rating Scales (BARS)- This is a new appraisal technique. It provides better, more equitable appraisals as compared to other techniques. Since BARS is done by persons who are expert in the technique, the results are sufficiently accurate. The technique is not biased by the experience and evaluation of the rater. COMPONENTS OF APPRAISAL
Who of the Appraisal
What of Appraisal
Why of Appraisal
When of Appraisal
Where of Appraisal
How of Appraisal
WHO OF APPRAISAL The ‘who’ of the appraisal is concerned with “who should be rated and who should do the rating?” The answer to the first query is that all employees of an organization should be appraised, for one reason or the other. Regarding the second issue, it may be said that the appraisal can be accomplished by one or more individuals who can be the immediate supervisor, other managers acquainted with the appraisee’s work, a higher level manager, a personnel manager, the appraisee’s peers, the appraisee himself or the appraisee’s subordinates.
Usually the immediate supervisor must be entrusted with the task of rating the appraisee because he is most familiar with his work and he is also responsible for providing a feedback of performance appraisal to the subordinate. The staff specialists, i.e., the personnel officers, may also do the appraisal. They may sometimes, just advise the supervisors in the process. His peers may also do the appraisal of an individual. Such appraisal proves effective in predicting future management success. Sometimes, self-evaluation is also employed for evaluating performance. It emphasizes human relations with the supervisor. Lastly, in many companies, subordinates and superiors jointly establish goals and periodically evaluate the subordinate’s performance with respect to these goals. WHAT OF APPRAISAL
The ‘what’ of the performance appraisal consists of the qualities and attributes that should be scrutinized, in order to judge the ability and the performance of the appraisee. Every organization has to decide the contents to be appraised before the program is approved. Generally, the content to be appraised is determined on the basis of job analysis. The content to be appraised may vary with the purpose of appraisal and type and level of employees. The various criteria for assessing a performance are: Regularity of attendance Self-expression: written and oral Ability to work with others Leadership styles and abilities Initiative Technical skill Technical ability or knowledge Ability to grasp new things Ability to reason Originality and resourcefulness Creative skills Areas of interest Area of suitability Judgment skills
Integrity Capability for assuming responsibility Level of acceptance by subordinates Honesty and sincerity Thoroughness in job and organizational knowledge Knowledge of systems and procedures Quality of suggestions offered for improvement The above criteria relate to past performance and behaviour of an employee. There is also the need for assessing the potential of an employee for future performance, particularly when the employee is expected to assume greater responsibilities. WHY OF APPRAISAL “In today’s competitive World, the word is PERFORM or PERISH.”
The ‘why’ of an appraisal is concerned with the purpose that is served by the process. Performance appraisals are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and help in business planning. Annual performance appraisals enable management and monitoring of standards, agreeing expectations and objectives, and delegation of responsibilities and tasks. They also help to establish individual training needs and organizational training needs and planning to fulfill those needs. Performance appraisals are important for staff motivation, attitude and behaviour development, communicating organizational aims, and encouraging positive relationships between management and staff. In short, performance and job appraisals are vital for managing the performance of people and organizations. Performance appraisals, thus, help in achieving the following objectives: Performance measurement - short, medium and long term. Clarifying and defining priorities and objectives. Motivation through agreeing to helpful aims and targets. Motivation through achievement and feedback. Assessing the training needs and learning desires – individual and organizational. Identification of personal strengths and direction, including unused hidden strengths. Career and succession planning - personal and organizational.
Team roles clarification and team building. Appraisee and manager mutual awareness, understanding and relationship. Resolving confusions and misunderstandings. Reinforcing organizational philosophies, values, aims, strategies, priorities, etc. Delegation, additional responsibilities, employee growth and development. Counseling and feedback. Manager development - all good managers should be able to conduct appraisals well, it's a fundamental process. Well-prepared
opportunities to help appraisees and managers improve and develop, and thereby also the organizations for whom they work. WHEN OF APPRAISAL The ‘when’ answers the query about the frequency of appraisal. The time period between two apprisals varies considerably with different organizations. Appraisals are conducted by organizations every three months, every six months or sometimes even annually. Suggested time periods include three and six month appraisals, as during this time the employee is learning the expectations of the job and the company. Performance appraisals are effective and useful during the beginning period of employment, at set intervals or when an employee changes job duties. New employees are rated more frequently than the older ones. Appraisals should immediately be followed by discussions between the appraiser and the employee who has been appraised. Effective management requires timely feedback to an employee - not 9 months after an event occurs. A performance appraisal should be a recap of the time period for which the review is based. Good work should be used as an oppurtunity to provide positive reinforcement and poor work should be used as a basis for training.
The time of rating should not coincide with the time of salary reviews, for if the two occur together constructive evaluation and considerations of self-development will probably take second place to the pressures of pay. WHERE OF ARPPRAISAL The ‘where’ indicates the location where an employee may be evaluated. It is usually done at the place of work or office of the supervisor. Informal appraisals may take place anywhere and everywhere, both on-the-job in work situations and off-the-job. A suitable venue should planned and available - private and free from interruptions. Hotel lobbies, public lounges, canteens etc should be avoided, as privacy is absolutely essential. Also planes, trains and automobiles are entirely unsuitable venues for performance appraisals. Room layout and seating are important elements to prepare also. Layout has a huge influence on the atmosphere and mood, irrespective of content. The atmosphere and mood must be relaxed and informal. All barriers should be removed. HOW OF APPRAISAL Under ‘how’, the company must decide what different methods are available and which of these may be used for performance appraisal. On the basis of the comparative advantages and disadvantages it is decided which method would suit the purpose best. Once this has been done, the process of appraisal begins. First of all, the appraiser should collect all the relevant data, records, reports etc of previous performance of the appraisee and his current job profile. The appraisee should be informed of the appraisal well in advance so that he has enough time to collect the necessary documents regarding his previous performances etc. At the time of the appraisal, the appraiser should be friendly and warm. He should try to put the appraisee at ease, as he may well be terrified. The appraiser should try to resist judging the appraisee according to his own style and approach and instead provide a good neutral basis for the discussion, free of bias and personal views.
An overall plan should be agreed with the appraisee, which should take account of the job responsibilities, the appraisee's career aspirations, the organization's priorities etc. The plan can contain an overview of the organization’s short, medium and long-term aspects, but importantly it must be agreed and realistic. The key to assessing an employee's performance is the setting of objectives. A key element of the performance appraisal process should be reviewing how well the employee has performed in relation to objectives that have previously been set for them. For objectives to be useful, it is often said they should be SMART. Specific Measurable Achievable /Agreed Result oriented Time framed The appraiser should invite questions or queries from the appraisee and make sure to satisfy them. Lastly, the appraiser should thank the appraisee for their contribution to the meeting and their effort through the year, thus helping in closing the appraisal on a positive note. Appraisals can become very positive and enjoyable activities if the above mentioned guidelines are followed.
Appraisals are not just about job performance and job skills training. They should focus on helping the 'whole person' to grow and attain fulfillment. Limitations of Appraisal
Problems with Appraisal Methods
Factors Affecting the Appraisal
Essentials of a Good Appraisal System Ethics of Appraisal
PROBLEMS WITH APPRAISAL METHODS A performance appraisal contains three steps - defining the job, appraising performance and providing feedback. Some appraisals fail because subordinates are not told ahead of time exactly what is expected of them in terms of good performance. Others fail because of problem with the form or procedure used to actually appraise the performance. Still other problems arise during the interview-feedback session, which include arguing and poor communications. Problems can occur at any stage in the evaluation process. Some of the pitfalls to avoid in performance appraisal are: 1. Unclear performance standards: Without standards, there can be no objective evaluation of results, only a subjective guess or feeling about performance. Standards should be established by analyzing the job output, to ensure that standards are job related. Those standards that are reasonable, but challenging have the most potential to motivate.
2. Use of abstract word: Problems of evaluation standards might arise because of the use of very common words for grading, viz. good, adequate, satisfactory and excellent, which mean differently to different evaluators. 3. Rate errors: Rate errors include rates bias or prejudice, halo effect, constant error, central tendency, and fear of confrontation etc. 4. Poor feedback to employees: Standards and/or ratings must be communicated to the employee in order to for the performance evaluation to be effective. 5. Negative communication: The evaluation process is hindered by communication of negative attitudes, such as inflexibility, defensiveness etc. 6. Failure to apply evaluation data: Failure to use evaluations in personnel decisionmaking and personnel development contradicts the primary purpose of performance evaluations. The use and analysis of multiple criteria as well as the frequency of evaluation also present problems. FACTORS AFFECTING THE APPRAISAL A well-designed performance appraisal system might fail to bring about the desired results if the appraisers are not properly trained. The appraisers or raters often suffer from the following kinds of errors or weaknesses: 1. Halo error- It occurs when the rater allows one aspect of a man’s character or performance to influence his entire evaluation. In other words, a supervisor’s rating of a subordinate on one trait, biases the rating of that person on other traits. Being aware of this problem is a major step toward avoiding it. One way of minimizing the effect of halo error is to have the supervisor judge all of his subordinates on a single factor or trait, before going on to next. In this manner, he can consider all of the men, relative to a standard or to each other, on each trait. 2. Central tendency- It is perhaps the most commonly found error in performance appraisal. This error occurs when the rater is in doubt about the subordinates, or has inadequate information about them, or is giving less attention and effort to the rating process. So he may play it safe by neither condemning nor praising the subordinates
and may rate them ‘averages’. Such a restriction can distort the evaluations, making them less useful for promotion, salary, or counseling purposes. Ranking employees instead of using a graphic rating scale can avoid this central tendency problem. 3. Leniency or strictness- Some supervisors have a tendency to be easy raters and some others, to be harsh in their ratings. Lenient or easy raters assign consistently high values or scores to their subordinates and strict or harsh raters give consistently low ratings. Strictness/leniency is not a very major problem. 4. Personal bias- Evaluator’s bias toward some employees can influence their evaluation. An effective training of the evaluator can remove this bias. Mode of evaluations and promotions should be examined by managers, to check a possible discrimination at the time of evaluation and make amends to reduce this bias. 5. Recent Behavior Bias– Often some raters value person’s on the basis of their performance in recent few weeks; average constant behavior is not checked. Some employees being aware of this tendency show better results when they feel that they are being observed and the report of their performance is to be complied soon. Such appraisal problems can be avoided by following some simple yet effective guidelines.
There are at least three ways to minimize the impact of appraisal
problems: First, be sure to be familiar with the problem. Understanding the problem can help to avoid it. Second, choose the right appraisal tool. Each tool such as the graphic rating scale or critical incident method has its own advantage and disadvantages. Third, training supervisors to eliminating errors such as halo, leniency, and central tendency can help them avoid these problems. ESSENTIALS OF A GOOD APPRAISAL SYSTEM A program of performance appraisal must consider the following essential points for it to be effective:
1. It must be easily understandable. If the system is too complex or too timeconsuming, it may be anchored to the ground by its own weight of complicated forms which nobody but the experts understand. 2. The appraisers should be given training beforehand. Supervisors responsible for performance appraisal should be well trained in the art and science of performance appraisal to ensure uniformity, consistency and reliability.
3. It must have the support of all people who administer it.
If the line people think it is too theoretical, too ambitious, and too unrealistic or that the management has imposed it on them, they will dislike it. Similarly, if they feel that their role is not very important they will not take the system seriously. 4. The system should be sufficiently grounded in the requirements of the organization. It should reflect the value system of the organization. In fact, it should tell the employees what set of activities or what qualities are considered desirable by the organization. As such, it should have linkage with the job description. 5. The system should be both valid and reliable. The validity of ratings is the degree to which they are truly indicative of the merit of the employees. Both validity and reliability result from objectivity. The appraisal systems of many organizations lack this, without taking into account their merit. This produces outstanding performers but not outstanding performance and raises doubts about the validity of the system. 6. The system should have built-in incentive, that is, a reward should follow satisfactory performance. This raises the morale of the employees and in turn results in improvement in performance. 7. The system should be open and participative. It should involve employees in the goal-setting process. This helps in planning performance better. 8. The system should focus more on the development and growth of employees than on generating data for administrative decision-making relating to promotions, increments etc.
It must help in identifying employees’ strengths and weaknesses and indicate corrective actions. 9. The system should be periodically evaluated to be sure that it is continuing to meet its goals. This will check the danger of the criteria of appraisal becoming subjective rather than the objective. Furthermore, the system may become rigid in a tangle of rules and procedures, many of which are no longer useful. 10. There should be provision for appeals. The employees should have the right to appeal against appraisals to ensure confidence of the employees and their association/unions. The employees should be given an opportunity to express their feelings on the performance reports. Ethics of Appraisal In performance appraisal, the ethics of appraisal should get due consideration failing which many organizational problems may crop up and the very purpose of appraisal may be defeated. The essence of the appraisal is that one performance is making judgments about certain aspects of another. Although he is not making a total judgement of the other person’s worth, but it is true that he is judging his resent or future usefulness to a job or an organization. Therefore, the appraisers should approach employee appraisal as a thoughtful, serious matter for which they are accountable. In this regard, managers need to apply a few simple rules, which will contribute to their ethical handling of the appraisal situations. The essential components of an effective performance appraisal are as follows:
1. Determination of purpose– The objective of the appraisal program may be weather to appraise the actual performance of individuals on their present jobs or to determine the potential of individuals to do higher jobs or both. Sometimes performance appraisal programs are associated with objectives like training and development, transfer and promotion, increase in pay, etc. 2. Selection and training of appraiser- In order to avoid subjectivity in appraisal, it is advisable to give sufficient training to the appraiser. It is also suggested that two persons should appraise the performance of one man independently, in order to have objective results. 3. Establishing standards of performance- The standards of performance should be laid down in clearly and communicated to the subordinates well in advance. This will help the subordinates in understanding the expectations of the management. 4. Frequency of appraisal- The frequency of appraisal should be determined by the objective and scope of performance appraisal. 5. Preparation of forms- Suitable forms should be designed to help the appraisers in their work. The form should be related to the job and the contents and design of the forms should reflect the objectives of the performance appraisal programs. 6. Conveying of results- The results of the appraisal whether positive or negative, should be conveyed to the employees in a considerate manner. Also, certain steps should be taken based on the findings of the evaluation, like conducting trainings or providing counseling, for the development of the employees etc. To sum up, performance appraisal should be an objective assessment, balanced on judgments and unbiased evaluation on the job of any performer by his superior.
THE EVALUATION PROCESS ESTABLISH PERFORMANCE STANDARDS COMMUNICATE PERFORMANCE EXPECTATIONS TO EMPLOYEES MEASURE ACTUAL PERFORMANCE PERFORMANCE COMPARE ACTUAL PERFORMANCE WITH STANDARDS DISCUSS THE APPRAISAL WITH THE EMPLOYEE IF NECESSARY, INITIATE CORRECTIVE ACTION THE EVALUATION PROCESS ESTABLISH PERFORMANCE STANDARDS At the time of designing a job and formulating a job description, performance standards are usually developed for the position. These standards should be clear and not vague, and objective enough to be understood and measured. These standards should be discussed to find out which different factors are to be incorporated, weights and points to be given to each factor and these then should be indicated on the Appraisal Form, and later on used for appraising the performance of the employees. COMMUNICATE PERFORMANCE EXPECTATIONS TO THE EMPLOYEES The next step is to communicate these standards to the employees, for the employees left to themselves, would find it difficult to guess what is expected of them. To make communication effective feedback is necessary from the subordinate to the manager. Satisfactory feedback ensures that the information communicated by the manager has been received and understood in the way it was intended. MEASURE ACTUAL PERFORMANCE
To determine what actual performance is, it is necessary to acquire information about it. We should be concerned with how we measure and what we measure. Four sources are frequently used to measure actual performance: Personal observations Statistical reports Oral reports Written reports COMPARE ACTUAL PERFORMANCE WITH STANDARDS The employee is apprised and judged of his potential for growth and advancement. Attempts are made to note deviations between standard performance and actual performance. DISCUSS THE APPRAISAL WITH THE EMPLOYEE The results of appraisal are discussed periodically with the employees, where good points, weak points and difficulties are indicated and discussed so that performance is improved. IF NECESSARY, INITIATE CORRECTIVE ACTIONS: Coaching, counselling may be done or special assignments and projects may be set; persons may be deputed for formal training courses, and decision making responsibilities and authority may be delegated to the subordinates. Attempts may also be made to recommend for salary increases or promotions, if these decisions become plausible in the light of appraisals. The details given above may vary from organization to organization but these steps usually form the principal steps/features of a sound evaluation programme.
The Central Tendency Problem It is the most commonly found error. It assigns average ratings to all the employees with a view to avoiding commitments or involvement; or when the rater is in doubt or has inadequate information or lack of knowledge about the behavior of the employee or when he does not have much time at his disposal. Such tendency seriously distorts the evaluations, making them most useless for promotion, salary or counseling purposes.
Similarity Error This type of error occurs when the evaluator rates other people in the same way he perceives himself. For example, the evaluator who perceives himself as aggressive may evaluate others by looking for aggressiveness. Those who show this characteristic may be benefited while others may suffer. This error also washes out if the same evaluator appraises all people in the organization. Social Differentiation Rating is sometimes impeded by the evaluator’s style of rating behavior. Pigou has classified raters as: high differentiators- i.e. using all or most of the scale. He observes: low differentiators tend to ignore or suppress differences, perceiving the universe as more uniform than it really is. High differentiators, on the other hand, tend to utilize all available information to the utmost extend and, thus, are better able to perceptually deny anomalies and contradictions than low differentiators. Social differentiators make evaluation using trait criteria unreliable. Miscellaneous Biases Bias against employees on ground of sex, race, religion or position is also common error in rating. Besides these, there may be opportunity bias, group characteristic bias and knowledge-of-predictor bias.
CHAPTER- 2 OBJECTIVE & METHODOLOGY
OBJECTIVE & METHODOLOGY 2.1: Objective of the study To analyse the existing Performance Appraisal System in Tech Mahindra To determine whether any change/modification is required in this system in Tech Mahindra To obtain employees view on performance Appraisal in Tech Mahindra and their valuable suggestions on the improvement of existing system
2.1.1: SCOPE OF THE STUDY The study with regard to the above objective will help Tech Mahindra, to ascertain whether the existing Performance Appraisal System is adequate or any change is required in this system. The study consists of employees view on performance Appraisal in Tech Mahindra and their valuable suggestions on the improvement of existing system.
2.2: RESEARCH METHODOLOGY A Research Methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study. The appropriate research design formulated is detailed below. Exploratory research: this kind of research has the primary objective of development of insights into the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action. The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. The present study contemplated an exploratory research
RESEARCH DESIGN The research design is the basic framework, which provides guidelines for the rest of the research process. The present research can be said to be exploratory. The research design determines the direction of the study throughout and the procedures to be followed. It determines the data collection method, sampling method, the fieldwork and so on.
NATURE OF DATA PRIMARY DATA:
Primary data is basically fresh data collected directly from the target respondents; it could be collected through Questionnaire Surveys, Interviews, Focus Group Discussions Etc.
Secondary data that is already available and published .it could be internal and external source of data. Internal source: which originates from the specific field or area
where research is carried out e.g. publish broachers, official reports etc. EXTERNAL SOURCE:
This originates outside the field of study like books, periodicals, journals, newspapers and the Internet.
DATA COLLECTION Primary data: Primary data was selected from the sample by a self-administrated questionnaire in presence of the interviewer.
SAMPLE SIZE: The survey is conducted among 100 respondents Sample Area:
Employees of Tech Mahindra, these people were requested to fill in the questionnaires during the lunch intervals at their office premises
Secondary data has been collected through Articles, Reports,
Journals, Magazines, Newspapers and Internet
SAMPLING TECHNIQUE Random sampling technique has been employed to extract the fruitful results. This includes the overall design, the sampling procedure, the data collection methods, the field methods and the analysis procedures
SAMPLING PROCEDURE ACTUALLY EMPLOYED: The process employed to select the sample was simple random sampling. Simple random sampling refers to that sampling technique in which each and every unit of the population has an equal and same opportunity of being on the sample. In simple random sampling, which item gets selected is just a matter of chance.
ANALYTICAL TOOLS: Simple statistical tools have been used in the present study to analyze and interpret the data collected from the field. The study has used percentiles method and the data are presented in the form of tables and diagrams.
2.3: LIMITATIONS OF RESEARCH In this form, no scale, checklists or other devices are used, but a supervisor is simply required to write down his impressions about an individual on a sheet of paper. This system has obvious limitations. The study consists of employees view on performance Appraisal in Tech Mahindra and their valuable suggestions on the improvement of existing system. The study has used percentiles method and the data are presented in the form of tables and diagrams.
CHAPTER – 3 DATA ANALYSIS & INTERPRETATION
DATA ANALYSIS AND INTERPRETATION TABULATION & ANALYSIS OF DATA S.No.
1. 2. 3. 4. 5. 6. 7. 8. 9.
Do you have a formal appraisal system in your office? Do you think that personnel should be appraised regularly? Performance appraisal provides an opportunity for selfreview. Do you agree? Do you think that both the personnel as well as the organization are benefited from appraisals? Is any effort made to determine the employee’s potential, during the appraisal process? Does your organization conduct post-appraisal interviews or interactions? Are the results of the appraisal conveyed to you? Does the system provide training and development after appraisal? Do you think that promotions and demotions should be governed by appraisal results? Are you satisfied with the present appraisal system in your organization?
DATA ANALYSIS Q1.
Do you have a formal appraisal system in your office? YES ---------------------------------
Interpretation Majority of the respondents say that they have a formal appraisal system in their office.
Do you think that personnel should be appraised regularly? YES ---------------------------------
Interpretation Majority of the respondents say that personnel should be appraised regularly.
Performance appraisal provides an opportunity for self-review. Do you agree? YES ---------------------------------
Interpretation Majority of the respondents say that performance appraisal provides an opportunity for self-review.
Do you think that both the personnel as well as the organization are benefited from appraisals? YES ---------------------------------
Interpretation Majority of the respondents say that both the personnel as well as the organization are benefited from appraisals.
Is any effort made to determine the employee’s potential, during the appraisal process? YES ---------------------------------
Interpretation Majority of the respondents say that an effort is made to determine the employee’s potential during the appraisal process.
Does your organization conduct post-appraisal interviews or interactions? YES ---------------------------------
Interpretation Majority of the respondents say that their organization does not conduct postappraisal interviews or interactions.
Are the results of the appraisal conveyed to you? YES ---------------------------------
Interpretation Majority of the respondents say that the results of the appraisal are conveyed to them.
Does the system provide training and development after appraisal? YES ---------------------------------
Interpretation Majority of the respondents say that the system does not provide training and development after appraisal.
Do you think that promotions and demotions should be governed by appraisal results? YES ---------------------------------
Interpretation Majority of the respondents say that promotions and demotions should be governed by appraisal results.
Q10. Are you satisfied with the present appraisal system in your organization? YES ---------------------------------
Interpretation Majority of the respondents say that they are satisfied with the present appraisal system in their organization.
FINDINGS Appraisal is a sensitive as well as a very important issue in any organization. It directly affects the trust and the relationship of the employees with the Superiors and the Orgnization. Performance Appraisals should be authentic and satisfactory in Tech Mahindra Limited. Feedback should be made available to the employees, irrespective of whether the result is negative or positive. Feedback should also be taken from employees to check whether appraisals are serving their objective. Majority of the respondents say that they have a formal appraisal system in their office. Majority of the respondents say that personnel should be appraised regularly. Majority of the respondents say that performance appraisal provides an opportunity for self-review. Majority of the respondents say that both the personnel as well as the organization are benefited from appraisals. Majority of the respondents say that an effort is made to determine the employee’s potential during the appraisal process. Majority of the respondents say that their organization does not conduct postappraisal interviews or interactions. Majority of the respondents say that the results of the appraisal are conveyed to them.
CHAPTER – 5 RECOMMENDATIONS
RECOMMENDATIONS Appraisal is a sensitive as well as a very important issue in any organization. It directly affects the trust and the relationship of the employees with the Superiors and the Orgnization. It was seen during the course of time that performance appraisals were affected by the perceptions of the employees as well as the Managers in the sense that: Employees, who were not happy with the previous appraisals, did not actively participate in the next appraisals as well. Recent experiences were fresh in the minds of employees and the employers, which affected the appraisals to a large extent. Any kind of appraisal cannot be held within short period of restructuring in the company, as it is bound to affect the results of the appraisal.
Suggestions and Recommendations Some suggestions in order to improve the appraisal methods and their use are as follows: Performance Appraisals should be authentic and satisfactory in Tech Mahindra. Feedback should be made available to the employees, irrespective of whether the result is negative or positive. Feedback should also be taken from employees to check whether appraisals are serving their objective. Appraisals should not involve any question of salary, incentives etc. as these are matters of different area and affect the morale of the employees.
ANNEXURE QUESTIONNAIRE Questionnaire with responses received from officials of Tech Mahindra Limited. Q1.
Do you have a formal appraisal system in your office? YES -------------------------------- NO-----------------------------------
Do you think that personnel should be appraised regularly? YES -------------------------------- NO-----------------------------------
Performance appraisal provides an opportunity for self-review. Do you agree? YES -------------------------------- NO-----------------------------------
Do you think that both the personnel as well as the organization are benefited from appraisals? YES -------------------------------- NO-----------------------------------
Is any effort made to determine the employee’s potential, during the appraisal process? YES -------------------------------- NO-----------------------------------
Does your organization conduct post-appraisal interviews or interactions? YES -------------------------------- NO-----------------------------------
Are the results of the appraisal conveyed to you?
YES -------------------------------- NO----------------------------------Q8.
Does the system provide training and development after appraisal? YES -------------------------------- NO-----------------------------------
Do you think that promotions and demotions should be governed by appraisal results? YES -------------------------------- NO-----------------------------------
Q10. Are you satisfied with the present appraisal system in your organization? YES -------------------------------- NO-----------------------------------
BIBLIOGRAPHY & REFERENCES
BIBLIOGRAPHY & REFERENCES Dwivedi R. S.; “Manpower Management”; Prentice Hall of India Pvt. Ltd., New Delhi; 1984. Banerjee Shyamal; “Principles and Practices of Management”; Oxford & IBH Publishing Co. Pvt. Ltd.; 1990. Mamoria C. B. & Gankar S. V.; “Human Resource Management”; Himalaya Publishing House; 2003. Tripathi P. C.; “Personnel Management and Industrial Relations”; Sultan Chand & Sons, New Delhi; 2002. Subba Rao P.; “Personnel and Human Resource Management”; Himalaya Publishing House; 2002. Prasad L.M.; “Human Resource Management”; Sultan Chand & Sons, New Delhi; 2001. Subramani P.N. & Rajendra G.; “Human Resource Management and Industrial Relations”; Himalaya Publishing House; 2001. Surendar Kumar; “Performance Appraisal and Potential Evaluation”; Galgotia Publishing House; 2001.
Reference & Illustrations: www.work911.com www.archernorth.com www.humanrightinitiative.org www.fotosearch.com