STUDENT DECLARATION

I am GARIMA BANSAL student of MBA here by declares that the summer training

report titled “PERFORMANCE APPRAISAL IN HCL INFOSYSTEM” is completed

and submitted under the guidance of “Mr. Gopal Saraswat” is my original work.

The imperial finding in this report are based on the data collected by me. This project has

submitted to SRM-IMT, Modinagar for the purpose of compliance of requirement this

examination.

GARIMA BANSAL

M.B.A. IV Sem

Roll No. - 3510930051

1
 ACKNOWLEDGEMENT

Presenting a summer training project of this type is an arduous task, demanding a lot of

time. I cannot in full measure appreciate and acknowledgement the kindness shown and

help extended by various persons in this endeavor. I will remember all of them with

gratitude.

My sincere thanks are also due to Dr. N.C. Bansal (H.O.D., Management) & Mr. Gopal

Saraswat, for their significant help extended for the successful completion of the project.

I highly the help I got from them in providing me and lot of information regarding the

functioning of this organization.

I am always beholden to my God, for always being with me and showing me the right

ways, my family, for always doing favors to me and my friends and colleagues

consistently helped with encouragement and criticism throughout the project work, for

always lifting my sights to higher vision, raising my personality beyond normal limitation

and for realizing me my strengths and potential, as I did not always welcome her

exhortation, “try again; you can do better.” But this project owes a great deal to it – and

so do I.

GARIMA BANSAL

PREFACE

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Today’s market scenario is totally different from what it has been a few years ago.

Consumers has a lot of choice for every product because day by day companies are

coming up with their new and innovative products. Later there was limited choice

for most of the products and companies didn’t have to put much of the efforts to

sell their products. But today’s scenario is totally different. Consumers have choice

because of availability of varieties and options. We can say today’s consumer is the

market ruler. So it is important to know his buying behavior and try to fulfill his

demand. Company’s aim should be customers delight not customer’s satisfaction.

This research was really good learning experience for me. I got opportunity to apply the

theoretical knowledge to practical aspects of selling. What problems can arise and

the way to tackle the difficulty during the sales as smartly as possible.

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 CONTENTS

• Student declaration

• Acknowledgement

• Preface

• Indian hardware industry

• Company profile

• Product profile

• Performance appraisal system in HCL

• Research methodology

• Objective of the study

• College of data

• Data analysis

• Findings

• Conclusions

• Suggestions

• Questionnaire

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• Bibliography

5
 INDIAN HARDWARE INDUSTRY AND HCL INFOSYSTEMS LTD.

The year 2004 marked a turning point in the history of global trade in services, with

growing acceptance of IT based global delivery model. With ever increasing availability

of international bandwidth and powerful workflow management software, it is now

possible to disaggregate any business process, execute the sub-processes in multiple

centres around the world, and reassemble it, in near-real time, at another location. This is

driving fundamental changes in the global IT services landscape; vendors and customers

are redefining the levels of value creation in the industry. In the wake of changing global

service landscape, Indian Information Technology (IT) and IT enabled services (ITES-

BPO) continue to chart remarkable growth.

The Indian software and services export is estimated at Rs. 78,230 crore (US$ 17.2

billion) in 2004-05, as compared to Rs. 58,240 crore (US $ 12.8 billion) in 2003-04, an

increase of 34 per cent both in rupee terms and dollar terms. This segment will continue

to show robust growth in future also.

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Indian ITES-BPO sector industry continues to grow from strength to strength, witnessing

high levels of activity – both onshore as well as offshore. Last year witnessed

vendors moving up the value-chain to offer higher-end research and analytics

services to their clients. Attrition levels also remained high, between 25-40 per

cent, as demand for trained talent outpaced supply.

As export revenues from ITES-BPO grew from US $ 2.5 billion in year 2002-03 to US $

3.6 billion in years 2003-04, a year-on-year growth of 44 per cent was achieved. In

year 2003-04, ITES-BPO exports accounted for over 27 per cent of the total export

revenue earned by the Indian IT-ITES industry. The value of ITES-BPO exports

from India is expected to exceed US $ 5 billion mark in the year 2004-05.

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The Indian IT success story has also highlighted India 's attractiveness as an investment

destination – also beyond the IT sector. Another key impact of the global sourcing

model popularized by the growth of IT-ITES has been the reversal of the brain

drain – as people of Indian origin (who went to pursue careers abroad), as well as

young expatriates, are now attracted to work in India.

Indian IT-ITES growth has had a significant multiplier effect on the Indian economy.

Apart from the direct impact on national income and employment, the sector has

also contributed to the growth of several ancillary industries, a rise in direct-tax

collection and an increase in consumer spend due to the significantly higher

disposable incomes.

The rapid growth of ITES-BPO and the IT industry as a whole has made a deep impact

on the socio-economic dynamics of the country. The sector has risen to become

biggest employment generator with the number of jobs added almost doubling each

year, has spawned a number of ancillary businesses such as transportation, real

estate and catering, and has contributed to a rising class of young consumers with

high disposable incomes.

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 COMPANY PROFILE

Shiv Nadar Ajai Chowdhry

Chairman and CEO Chairman and CEO

HCL Technologies Ltd. HCL Infosystems Ltd.

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HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in

1976. For over quarter of a century, HCL have developed and implemented

solutions for multiple market segments, across a range of technologies in India.

HCL have been in the forefront in introducing new technologies and solutions.

HCL Infosystems (HCLI) draws it's strength from 29 years of experience in handling the

ever changing IT scenario, strong customer relationships, ability to provide the

cutting edge technology at best-value-for-money and on top of it, an excellent

service & support infrastructure.

Today HCL is country's premier information enabling company. It offers one-stop-shop

convenience to its diverse customers having an equally diverse set of

requirements. Be it a large multi-location enterprise, or a small/medium

enterprise, or a small office or a home, HCLI has a product range, sales & support

capability to service the needs of the customer.

Last 29 years apart from knowledge & experience have also given us continuity in

relationship with the customers, thereby increasing the customer confidence in us.

Their strengths can be summarized as:

Ability to understand customer's business and offer right technology

Long standing relationship with customers

Pan India support & service infrastructure

Best-vale-for-money offerings

Technology Leadership

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HCL Infosystems is known to be the harbinger of technology in the country. Right from

their inception HCL have attempted to pioneer the technology introductions in the

country either through their R&D or through partnerships with the world

technology leaders.

Using their own R&D, HCL have

Created their own UNIX & RDBMS capability (in 80s)

Developed firewalls for enterprise & personal system security

Launched their own range of enterprise storage products

Launched their own range of networking products

HCL strive to understand the technology from the view of supporting it post installation

as well. This is one of the key ingredients that go into their strategic advantage.

HCL Infosystems has to its claim several technology pioneering initiatives.

Some of them are:

Country's first Desktop PC - BusyBee in 1985

Country's first branded home PC - Beanstalk in 1995

Country's first Pentium 4 based PC at sub 40k price point

Country's first Media Center PC

Guiding Principles

Vision Statement

"Together we create the enterprises of tomorrow"

Mission Statement

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"To provide world-class information technology solutions and services to enable HCL’s

customers to serve their customers better"

Quality Policy

"We deliver defect-free products, services and solutions to meet the requirements of

HCL’s external and internal customers, the first time, every time"

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HCL’s Objectives

Management Objectives

To fuel initiative and foster activity by allowing individuals freedom of action and

innovation in attaining defined objectives.

People Objectives

To help people in HCL Infosystems Ltd. share in the company's successes, which they

make possible; to provide job security based on their performance; to recognize

their individual achievements; and help them gain a sense of satisfaction and

accomplishment from their work.

Core Values

We shall uphold the dignity of the individual

We shall honor all commitments

We shall be committed to Quality, Innovation and Growth in every endeavor

We shall be responsible corporate citizens

Philosophy of Quality

"We deliver defect-free products, services and solutions to meet the requirements of

HCL’s external and internal customers, the first time, every time."

To exist as a market leader in a globally competitive marketplace, organizations

need to adopt and implement a continuous improvement-based quality policy.

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One of the key elements to HCL's success is its never-ending pursuit of superior quality

in all its endeavors.

HCL Infosystems believes in the Total Quality Management philosophy as a means for

continuous improvement, total employee participation in quality improvement and

customer satisfaction. Its concept of quality addresses people, processes and

products.

Over the last 20 years, we have adapted to newer and better Quality standards that

helped us effectively tie Quality with Business Goals, leading to customer and

employee satisfaction.

Quality at HCL Infosystems Ltd.

The history of structured quality implementation in HCL Infosystems began in the late

1980s with the focus on improving quality of its products by using basis QC tools

and Failure Reporting and Corrective Active Systems (FRACAS). We also

employed concurrent engineering practices including design reviews, and rigorous

reliability tests to uncover latent design defects.

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 In the early 90s, the focus was not merely on the quality of products but also the

process quality systems. HCL’s manufacturing unit at NOIDA was certified

initially to ISO 9002:1994 by BVQI in 1994 and later on to ISO 9001:1994 in

1997. As of now, all HCL’s manufacturing units are certified by BVQI as per ISO

9001:2000

In early 1995, a major quality initiative was launched across the company based on Philip

B. Crosby's methodology of QIPM (Quality Improvement Process Management).

This model was selected to because it considered the need and commitment by an

organization to improve but more importantly, the individual's need towards better

quality in his personal life.

Under HCL’s Quality Education System program, we train HCL’s employees on

the basic concepts and tools of quality. A number of improvement projects have

been undertaken by HCL’s employees, whereby process deficiencies and

bottlenecks are identified, and Corrective Action Projects (CAPs) are undertaken.

This reduces defect rates and improves cycle times in various processes, including

personal quality.

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We have received MAIT's 'Level II recognition for Business Excellence' for HCL’s

initiatives in the Information Technology Industry, adding another commendation

to HCL’s fold. MAIT's Level II recognition is based on the 'European Foundation

for Quality Management' (EFQM), for gaining quality leadership and business

competitiveness.

HCL’s certifications / awards in 2003 include ISO 9001-2000 by BVQI for HCL’s

InfoStructure Services and award of First Prize by ELCINA (Electronic

Component Industries Association) for Quality, 2002-03. The ELCINA award

criterion considers two aspects. (1) Enablers (Leadership & Management

commitment, Resource Management, Product Realization, Measurement Analysis

& Improvement) and Results (Product Quality, Customer / Stake holder

satisfaction, Business results).

The tryst for continuous quality improvement is never-ending in HCL Infosystems.

We always strive to maintain high quality standards, which help us fulfill HCL’s

mission to provide world-class information technology solutions and services, to

enable HCL’s customers to serve their customers better.

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Alliances & Partnerships

To provide world-class solutions and services to all HCL’s customers, we have formed

Alliances and Partnerships with leading IT companies worldwide.

HCL Infosystems has alliances with global technology leaders like Intel, AMD,

Microsoft, Bull, Toshiba, Nokia, Sun Microsystems, Ericsson, nVIDIA, SAP,

Scansoft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates,

RedHat, Infocus, Duplo, Samsung and Novell.

These alliances on one hand give us access to best technology & products as well

enhancing HCL’s understanding of the latest in technology. On the other hand they

enhance HCL’s product portfolio, and enable us to be one stop shop for HCL’s

customers.

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 ABOUT HCL
In the early 70’s, a group of young, enthusiastic and ambitious technocrats embarked

upon a venture that would make their vision of IT revolution in India a reality. Shiv

Nadar and five of his colleagues got together and in 1975, setup a new company called

Micro comp. To start with they decided to capitalize on their marketing skill Micro comp

marketed calculators and within a few months of starting operations, company was

outselling its major competitors. In 1976, Micro comp approached UPSEC (Uttar Pradesh

State Electronics Corporation) for help to setup a computer company. Impressed by their

technical and marketing competence, UPSEC agreed to setup a joint venture.

On the August 11, 1976 Hindustan Computers Limited was incorporated as a joint

venture between entrepreneurs and UPSEC and with an initial equity of Rs. 1.83 Lakhs.

Ajai Chowdhry

Chairman and CEO, HCL Infosystems Ltd.

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 Source: www.hclinfosystem.com

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 HCL – A Snapshot

The HCL Enterprise comprises two companies listed in India, HCL Technologies and

HCL Infosystems. HCL Technologies is the IT and BPO services arm focused on

global markets, while HCL Infosystems is the IT hardware and system integration

arm focused on the Indian market. Together, these entities have uniquely positioned

HCL as an enterprise with service offerings spanning the IT Services and Product

spectrum.

Source: www.hcl.in

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The range of offerings span Product Engineering and Technology Development,

Application Services, BPO Services, Infrastructure Services, IT Hardware, Systems

Integration, and Distribution of Technology and Telecom products in India.

HCL Infosystems Ltd. (HCL Infosystems) has now become India’s one of big technology

integration company. Over the years, HCL Infosystems has positioned its business

operations to fulfill its vision statement ‘Together we create enterprise of

tomorrow’. The overarching theme for the company’s swift progression into the

software and service arena, in India and globally, is evolving. Signifying a state of

constant growth, the evolve theme is visible in the many ways that HCL

Infosystems has undergone a metamorphosis into becoming a complete IT

solutions company.

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 Source: www.hcl.in

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The menu of HCL Infosystems global services broadly covers IT consulting and

professional service in the area of vertical applications, technology integration,

ERP implementation and software development. This also includes a complete

portfolio of systems and network services for development. This also includes a

complete portfolio of systems and network services for Financial Management,

Helpdesks, System Supports and network and Internet Implementation. HCL

Infosystems global customers include Samsung, Govt. of Singapore and AMAL

Insurance, Jurong Port in Singapore, Malaysian’s BSN Commercial Bank, SIA,

DBS Bank, Maybank Life Assurance, Charted Semiconductors, Asia Matsushita

and Shell Malaysia. Some of its global customers in government sector are Inland

Revenue Authority of Singapore, Civil Aviation Authority of Singapore, Singapore

Power, Ministry of Education, Health and National Development, Telecom

Authority of Singapore and Penang State Govt.

HCL Infosystem’s chosen platform of total technology integration lends itself to some

very significant alliances with global leaders. Among it’s partner are HP for high

end AISCE/UNIX services and workstation and HP open view network

management solution, Intel for PC and PC server building blocks, Microsoft,

Novell, SCO AG Solutions, Red Hat, Linux, Samsung, Pivota for CRM solution

and ORACLE Sybase and Informix for RBMS platform.

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Key Business Associates of HCL

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ABOUT HCL FRONTLINE DIVISION

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The HCL Frontline Division of HCL Infosystems Ltd. focuses on providing solutions and

value-added services to small and medium corporate, the small office/home office

and the homebuyer. Involved in marketing and distributing national and

international brands of computer systems and peripherals, the Frontline Division

evolves innovative channel strategies to widen its market reach, and offers value

added support services to users. The extensive distribution network established by

the Division encompasses more than 800 resellers and close to 300 retail outlets

across 300 cities. Using its unmatched strength in distribution, Frontline has big

plans to increase penetration of notebooks in SOHO/SME segments. The

organization plans to use its already established retail network in big way for this. It

has proved its distribution might in the PC segment already where it has pioneered

on several fronts, with retail being just one.

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 The Division's singular mission has been to continuously anticipate and explore

technologies that have emerged as strong trends and established market standards

in the computing world globally, and bringing these to the Indian user in as short a

time as possible. Widely recognized for opening up several frontiers of the world of

computing to Indian users, the Division has partnered Dragon Systems, Inc., the

world's leading supplier of speech and language technology, to introduce speech

recognition tools in the country.

In Kerala the Frontline Division is represented by its state franchisee Team

Frontline Pvt. Ltd.. It is an ISO 9001 certified company and an extremely customer

focused IT provider.

6 S Offerings for Business Empowerment of HCL Infosystems

Need

In the emerging net economy, IT infrastructure Plays the role of a Powerful

business enabler to improve your business processes, to help you focus on your

goals and strategies and more importantly, to help you serve your customers better.

IT Infrastructure demands constant change latest technology, reliable operations

and high availability. Leaders like you, in the process of selecting the best of breed

in technology, require integrating different solutions from various vendors. Thus a

situation where you need a strong reliable and trusted partner committed to deliver

beyond just services.

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28
Advantage

Staying competitive in today’s dynamic business environment means finding new ways

to reduce costs while maximizing the value of your technology and personal

resources. More than ever, your ability to "do more with less" determines how

successful your organization will be. That’s why HCL Infosystems helps you

achieve. By channeling our in-depth expertise gained from over 28 years of IT

Domain experience. We provide a full bandwidth of services specifically designed

to meet your complete IT needs. And as a single window for completing business

solutions wherever you are located...

We make IT possible to save money...WE TELL YOU WHERE as well as

time ...WE SHOW YOU HOW

The 6 S

Solutions

The one stop shop solution center for all your IT needs, customized to meet and

scale with your unique Business Needs.

Services

A range of value added services in IT infrastructure operations and management.

Support

Pan-India footprint of support and logistics locations. Over 260 Direct service

support locations. Technically sound workforce of over 1700 certified

professionals.

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Standards

World Class Quality standards maintained for PPP (People, Processes &

Performance). Alliance with global technology leaders.

Savings

We help you find new ways to reduce costs & "do more with less" by maximizing

the value of your technology and personal resources, thereby reducing your total

cost of ownership (TCO).

Satisfaction

Complete Satisfaction for the customers through the HCL 6S offering that enables

one to maximize system uptime through rapid response and resolution services,

thereby optimizing your IT investments.

HCL Production Facility

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Achievements

- Foundation of the Company laid

1976 - Introduces microcomputer-based programmable calculators with wide

acceptance in the scientific / education community

- Launch of the first microcomputer-based commercial computer with a ROM

-based Basic interpreter

1977
- Unavailability of programming skills with customers results in HCL

developing bespoke applications for their customers

- Initiation of application development in diverse segments such as textiles,
1978
sugar, paper, cement, transport
- Formation of Far East Computers Ltd., a pioneer in the Singapore IT
1980
market, for SI (System Integration) solutions
- Software Export Division formed at Chennai to support the bespoke
1981
application development needs of Singapore
- HCL launches an aggressive advertisement campaign with the theme ' even

a typist can operate' to make the usage of computers popular in the SME

(Small & Medium Enterprises) segment. This proposition involved menu-

1983 based applications for the first time, to increase ease of operations. The

response to the advertisement was phenomenal.

- HCL develops special program generators to speed up the development of

applications
1985 - Bank trade unions allow computerization in banks. However, a computer

can only run one application such as Savings Bank, Current account, Loans

etc.

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 - HCL sets up core team to develop the required software - ALPM (Advanced

Ledger Posting Machines). The team uses reusable code to reduce

development efforts and produce more reliable code. ALPM becomes the

largest selling software product in Indian banks

- HCL designs and launches Unix- based computers and IBM PC clones

- HCL promotes 3rd party PC applications nationally

- Zonal offices of banks and general insurance companies adopt

computerization

- Purchase specifications demand the availability of RDBMS products on the

1986
supplied solution (Unify, Oracle). HCL arranges for such products to be

ported to its platform.

- HCL assists customers to migrate from flat-file based systems to RDBMS

- HCL enters into a joint venture with Hewlett Packard

- HP assists HCL to introduce new services: Systems Integration, IT

consulting, packaged support services (basicline, teamline)

1991
- HCL establishes a Response Centre for HP products, which is connected to

the HP Response Centre in Singapore.

- There is a vertical segment focus on Telecom, Manufacturing and Financial

Services
- HCL acquires and executes the first offshore project from IBM Thailand

1994

- HCL sets up core group to define software development methodologies

1995 - Starts execution of Information System Planning projects

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 - Execution projects for Germany and Australia

- Begins Help desk services

- Sets up the STP (Software Technology Park) at Chennai to execute software

projects for
1996
international customers

- Becomes national integration partner for SAP

- Kolkata and Noida STPs set up
1997
- HCL buys back HP stake in HCL Hewlett Packard
1998 - Chennai and Coimbatore development facilities get ISO 9001 certification
- Acquires and sets up fully owned subsidiaries in USA and UK

1999 - Sets up fully owned subsidiary in Australia

- HCL ties up with Broadvision as an integration partner

- Sets up fully owned subsidiary in Australia

- Chennai and Coimbatore development facilities get SEI Level 4 certification

- Bags Award for Top PC Vendor In India

2000
- Becomes the 1st IT Company to be recommended for latest version of ISO

9001 : 2000

- Bags MAIT's Award for Business Excellence

- Rated as No. 1 IT Group in India

-Launched Pentium IV PCs at below Rs 40,000

2001

-IDC rated HCL Infosystems as No. 1 Desktop PC Company of 2001

2002 -Declared as Top PC Vendor by Dataquest

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 -HCL Infosystems & Sun Microsystems enters into a Enterprise Distribution

Agreement

- Realigns businesses, increasing focus on domestic IT, Communications &

Imaging

products, solutions & related services

- Became the first vendor to register sales of 50,000 PCs in a quarter

- First Indian company to be numero uno in the commercial PC market

- Enters into partnership with AMD

- Launched Home PC for Rs 19,999

2003

- HCL Infosystems' Info Structure Services Division received ISO 9001:2000

certification

- Launches Infiniti Mobile Desktops on Intel Platform

- Launched Infiniti PCs, Workstations & Servers on AMD platform

2004 - 1st to announce PC price cut in India, post duty reduction, offers Ezeebee at

Rs. 17990

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- IDC India-DQ Customer Satisfaction Audit rates HCL as No.1 Brand in

Desktop PCs

- Maintains No.1 position in the Desktop PC segment for year 2003

- Enters into partnership with Port Wise to support & distribute security &

VPN solutions in

India

- Partners with Microsoft & Intel to launch Beanstalk Neo PC

- Becomes the 1st company to cross 1 lac unit milestone in the Indian

Desktop PC market

- Partners with Union Bank to make PCs more affordable, introduces lowest

ever EMI for PC

in India

- Launched RP2 systems to overcome power problem for PC users

- Registers a market share of 13.7% to become No.1 Desktop PC company for

year 2004

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 - Crosses the landmark of $ 1 billion in revenue in just nine months

- HCL completes buy out of JVs with Deutsche Bank and British Telecom

2005 - Boeing inks 787 Dreamliner design deal with HCL

- HCL infrastructure ranked No.1 service provider - CMP

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 MARKETING STRATEGY

”Marketing Strategy can be define as a businesses approach to marketing its products or

services expresses in broad terms, which forms the basis for developing a

marketing plan”. In other words, Marketing Strategy is nothing but a combination

of decision bearing on various aspects of marketing mix elements. There are

basically five P’s of marketing which play a vital role in marketing of a product and

they are Product, Price, Place, Promotion and Packaging. HCL concentrated on all

aspects that’s the reason why HCL has a very good and efficient market not only in

Ghaziabad but also in other regions of India.

Product Planning

HCL take good and effective decision on the faith of their existing product along with

their future products. This is a continuous process, which is taken into

consideration by HCL’s top management.

HCL have an R&D Department, which focuses on to the continuous innovation in order

to make HCL the best in today’s cutthroat competition

Management Information System (MIS)

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HCL takes into consideration every bit of information and have a very strong MIS. In

order to have the best knowledge about the market they study the market and to be

the best among the competitors they study all the market players thoroughly like

wise they collect the information regarding product, price, promotional strategy,

etc. of the competitor

Market Segmentation

Market Segmentation means dividing the market into distinct group of buyers keeping in

mind demographics, psychographics and behavioral differences among the buyers. Who

might require different products or marketing mixes?

A market segment consists of a group of people who share similar set of wants. A

segment is partly a fiction, in that not everyone wants exactly the same thing.

HCL has classified people into the following segments as per their living standards:

Lower Middle Class

Middle Class

Upper Middle Class

Higher Class

38
Pricing Policies

India a country where the price of a product can define its faith in the market, hence we

can say that India is a very price sensitive market.

Price refers to the value of products attributes. Expressed in monetary terms price is the

value, which a customer pays to adhere or to avail a service or utility or a product

At HCL, pricing policy decisions are taken by the top management after following the

prices of the components and prices quoted by the competitors. After this a parallel

pricing policy is developed in which:

Bundles are created and products are marketed accordingly in every region.

Profit margins are kept into consideration, etc.

HCL gives 6 to 8 percent margin to their Channel Partners or Demo Centers, and

company gets X% profit in return.

HCL’s main objective is service rather than profit. No doubt there is profit but pricing

policy is just to meet minimum margin to have a competitive edge over the

assembled PCs market.

HCL believes in “wealth maximization rather than profit maximization”.

39
 HOME PCS

HCL Beanstalk

HCL recommends Windows® XP Professional

The all-new BeanStalk Series, where performance is rivaled only with

elegance of design. Customer gets superior technology and great value

for money all fused into one. It comes with the super-speed Intel®

processor, plus SD RAM and Ultra ATA Hard Disk that gives it incredible speed.

What's more, it is upgrade friendly and so virtually future-proof. Manufactured at HCL

Infosystems' state-of-the-art ISO 9001 certified plant, it is designed to outperform

every other Home Computer customer have ever seen or heard about. And with

more than 250 Support providers across the country, its widespread network

ensures excellence in Customer Care. So go ahead and enjoy the wonder that is

HCL BeanStalk, and watch, it will amaze customer for years to come.

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It is faster than the fastest home computer. The HCL BeanStalk comes equipped with the

lightening fast Intel® Pentium® 4 processor which means customer can now get

mind blowing multimedia performance from customers computer. With its high

performance processor, it brings customer the Internet like no other computer can.

So get ready to experience 3D graphics, virtual reality and realistic audio-video,

like never before.

The HCL BeanStalk with Intel® Pentium® 4 processor, the centre of customers digital

world, is designed to meet not just customers today's computing requirements, but

also the needs of customers future. So bring home the HCL BeanStalk today and

stay ahead of the rest of the world.

HCL Ezeebee

HCL recommends Windows® XP Professional

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The HCL Ezebee is the complete All-in-one PC brought to you by India's No. 1 IT

Brand, HCL. With amazing performance and prices lower than other assembled

PCs, the HCL Ezeebee is the most affordable Quality PC.

HCL recommends Windows® XP Professional

HCL Ezeebee 4781 Celeron D 310

HCL Ezeebee 8731 Sempron 2500+

HCL Ezeebee 8731 Athlon64 3000+

HCL Ezeebee 4781 P4P 506

HCL Ezeebee 4781 P4P 524

HCL Ezeebee 4951 P4P 630

42
HCL Leaptops

HCL recommends Windows® XP Professional

HCL introduces Leaptops with unmatched mobile power. Designed to provide superior

performance, flexible connectivity and high mobility, these notebooks offer a new

level of freedom and functionality to bring you the ultimate in personal

productivity.

43
 PERFORMANCE APPRAISAL
OBJECTIVE OF PERFORMANCE APPRAISAL

A good Performance Appraisal has following objectives: -

 Help employee overcome his weakness & improve ones his strengths & thus

enable him to improve his performance & that of the Deptt.

 Generate adequate feedback & guidelines form the repotting officers to the

employee.

 Contribution to the growth & development of the employee through helping

him in realistic goal setting.

 Help in creating a desirable culture & traditions in the organization.

 Help identifying employees for the purpose of motivating, training &

developing them.

 Generate significant, relevant, free & valid information about employees.

 Thus, a good Performance Appraisal & review system should primarily focus

an employee development.

44
 DEFINED

Performance appraisal...

• Measuring,

• Evaluating, and

• Influencing an employee’s job-related attributes, behaviors and outcomes.

Historically, performance appraisal was linked to material outcomes with the assumption

that a cut in pay, or a rise, should provide the required impetus for an employee to either

improve or continue to perform well. ...a structured appraisal system is more likely to be

lawful, fair, defensible, valid and reliable performance appraisal a structured and formal

interaction between a subordinate and his/her supervisor

Let's begin our discussion of performance appraisal by defining the concept.

Performance appraisal is a formal system of measuring, evaluating, and influencing an

employee’s job-related attributes, behaviors and outcomes. The objective is to to

determine how productive an employee is and/or to determine if an employee’s

productivity can be improved. As such, performance appraisals serve an important

purpose in managing people and meeting company goals.

The tendency to make judgments about oneself or about people one is working with,

appears to be both inevitable and universal. However, without a carefully structured

system of appraisal and evaluation, people will judge the performance of coworkers

-- subordinates, superiors, and peers -- arbitrarily and informally. This tendency to judge,

without a systematic procedure, has the potential to create serious motivational, ethical

45
and legal problems within the firm. On the other hand, a structured appraisal system is

more likely to be lawful, fair, defensible, valid and reliable.

What is the role of performance appraisal?

Performance appraisals telling subordinates how they are doing, and suggesting needed

changes in behaviors, attitudes, skills, or job knowledge. Effective appraisal systems

provide both evaluation and feedback the main aim of the evaluation is to identify

performance gaps feedback is necessary to inform employee about those performance

gaps One of the functions of performance appraisals is to ensure that people are

accountable for their organizational

We have seen from previous discussions, that people are one of a company's most

valuable assets. While most assets depreciate over time, people, viewed as assets, may

actually appreciate. One of the manager's major responsibilities is to improve and update

the knowledge and skills of employees -- appreciation of assets. Performance appraisal

plays a significant role as a tool and technique of organizational development and growth.

In essence, effective appraisal systems provide both evaluation and feedback.

The main aim of the evaluation is to identify performance gaps -- when

performance does not meet the organizational standards -- whereas feedback is necessary

to inform employee about those performance gaps. From the employee's perspective,

performance appraisal informs them about what is required of them in order to do their

jobs, it tells them how well they have achieved those objectives and helps them take

corrective action to improve their performance, and, finally, it may reward them for

meeting the required standards.

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 The firm, on the other hand, needs a performance appraisal system in order to

establish principles of managerial accountability. Clearly, where employees are given

responsibilities and duties, they need to be held accountable. One of the functions of

performance appraisals is to ensure that people are accountable for their organizational

responsibilities.

Perhaps the most significant benefit of performance appraisals is the opportunities they

provide supervisors and subordinates to have one-on-one discussions of important work

issues. During appraisals, subordinates and supervisors can focus on work activities and

goals, identify and correct existing problems, and encourage better future performance.

Performance Appraisal and Motivation

Motivational research has recognized the power of recognition as an incentive

(see Maslow and the Expectancy Theory of Motivation). Performance appraisals provide

employees with recognition for their work efforts. The appraisal system provides the

supervisor with an opportunity to indicate to employees that the organization is interested

in their performance and development. This recognition can have a positive motivational

influence. on the individual's sense of worth, commitment and HCL onging.

Performance Appraisal and Training and Development

Performance appraisals identify performance gaps. As such, they provide an

excellent opportunity for a supervisor and subordinate to recognize and agree upon

individual training and development needs. Performance appraisal discussion may

identify the presence or absence of work skills. Further, the need for training can be made

more relevant if attaining the requisite job skills is clearly linked to performance

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outcomes. Consolidated appraisal data can also help form a picture of the overall

organizational training requirements.

Performance Appraisal and Recruitment

Recruitment and selection procedures need to be evaluated. Appraisal data can be

used to monitor the success of a firm's recruitment and selection practices. From this

data, the firm can determine how well employees who were hired in the past are

performing.

Performance Appraisal and Employee Evaluation

Employee evaluation is a major objective of performance appraisal. Given the

major functions of management -- planning, organizing, leading and controlling it is clear

that evaluations (controlling) need to be done. At its most basic level, performance

appraisal is the process of examining and evaluating the performance of employees.

However, the need to evaluate is also a source of tension, as evaluative and

developmental priorities appear to clash. Some management experts have argued that

appraisal cannot serve the needs of evaluation and development at the same time.

Performance Appraisal and Total Quality Management (TQM)

With the advent of TQM (Total Quality Management) and the extensive use of

teams, traditional performance appraisal systems have come under some criticism. For

example, rather than motivating employees, conflict may be created when appraisals are

tied to merit pay and when that merit pay is based on a forced ranking.

W. Edwards Deming, the founder of total quality management (TQM) has long been

associated with the view that performance appraisals ought to be eliminated. Many TQM

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proponents claim that performance appraisals are harmful. However, there is no doubt

that, without safeguards such as appropriate design, adequate administrative support,

comprehensive job analysis / description and training for appraisers, conventional

performance appraisal processes risk becoming just another of the many bureaucratic

rituals supervisors and subordinates must endure.

Performance Appraisal Summary

Performance appraisal, while enabling a manager to identify the training needs of

employees, and evolving training plan for them, also, serves to meet other objectives.

Performance appraisal satisfies the psychological needs individuals have to know how

they are performing their job and increases

Employees’ job satisfaction and morale by letting them know that the manager is

interested in their progress and development. Systematic performance appraisal also

provides the firm and the employee a careful evaluation, rather than a snap judgment of

an employee's performance. Many firms use performance appraisals to plan placements

and transfers and to provide input into decisions regarding salary increases, promotions,

and transfers. Finally, their superiors may use performance appraisals as a basis for the

coaching and counseling of individual employees by their superiors.

Performance appraisals provide a means for informing employees of the quality of

their work and identifying areas of performance that may need improvement

assessing the staff member's adequacy to perform tasks help supervisors maintain

control of the work and make the most effective use of their staff resources a

supportable basis for making personnel decisions

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To summarize the uses of performance appraisal:

• Performance improvement

• Compensation

• Placement

• Training & development needs assessment

• Career planning

• Job design error detection

• Detection of external factors influencing job performance

o Performance deficiencies may be due to family or other pressures before

looking at specifics about performance appraisal programs, it might be

useful to examine some deficiencies of existing programs.

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Performance Measures

OBSERVATION

DIRECT INDIRECT

 Rater sees the actual  Rater evaluates

performance substitutes (constructs)
for actual performance
o Less accurate

Comparative Evaluation Methods

• Ranking Methods

• Forced Distributions

• Point Allocation Method

• Paired Comparisons

Rating Scales Summary

As we indicated above, formal appraisal systems are necessary in order to

introduce objectivity into the evaluation process. Rating scales provide appraisers a fairly

high degree of structure. Using rating scales, employee traits and characteristics are rated

on a scale that usually has several points ranging from "poor" to "excellent". For

example, characteristics assessed might include cooperation, communications ability,

initiative, punctuality and technical competence. It is, of course, important that the traits

being evaluated be job-related. In designing the scale, the human resource specialist must

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make reference to the appropriate job descriptions. Use of inappropriate traits could result

in legal action on the grounds of discrimination.

Using a rating scale, the rater provides a subjective evaluation of an employee's

performance along a scale from high to low. Since the method provides a numerical value

for each dimension or trait, an overall average can be calculated for each employee. The

rating scale is inexpensive and easy to administer.

Advantages of Rating Scales

The greatest advantage of rating scales is that they are structured and

standardized. Thus, ratings can be easily compared and contrasted. Using rating scales,

each employee is rated according to the same basic appraisal process. The process

encourages equality in treatment for all employees. Further, rating scales are easy to

construct, to use and to understand.

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Disadvantages of Rating Scales

• Rater biases

• Specific performance criteria may be omitted to make form applicable to a variety

of jobs in the organization

• Descriptive evaluations are subject to individual interpretation

Even though rating scales ought to be constructed with reference to the relevant job

descriptions, questions must be asked about whether or not the selected traits are relevant

to the jobs of all the appraises? Often, when efforts are made to standardize an appraisal

form across the entire organization, certain traits that are included will have a greater

relevance for some jobs than others. For example, the trait "initiative" might not be very

important in a job that is tightly defined and rigidly structured. In such cases, a low

appraisal rating for initiative may not mean that an employee lacks initiative. Rather, it

may reflect that fact that an employee has few opportunities to use and display that

particular trait.

In efforts to standardize the rating instrument, it is possible that factors that an

employee's performance may depend on have not been included in the selected list of

relevant traits. Thus, some employees may end up with ratings that do not fairly reflect

their effort or value to the organization.

Selective perception is the human tendency. Although rating scales are designed to

lend objectivity and empiricism to the evaluation process, it is difficult to eliminate

problems of selective perception (biases and rater inconsistencies). Similarly, the

reliability of rating instruments may be questioned if different appraisers would interpret

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the rating traits (such as, "punctuality") differently. What exactly does "HCL ow average

skill" mean? Different appraisers could very likely interpret this "score" differently.

Some errors are errors of perception. Other errors may in fact be deliberate. A very

common rating error is that of central tendency. An appraiser, wary of confrontations or

repercussions, may be tempted to give too many passive, middle-of-the-road ratings.

Thus the spread of ratings for all employees tends to be clumped around the middle of the

scale.

Narrative Essay

The essay method of performance appraisal requires the appraiser to prepare a

written statement about employees being appraised. The essay describes specific

strengths and weaknesses in job performance. Further, the essay may suggest actions the

employee might take in order to remedy problem areas identified in the appraisal. The

appraiser alone may write the essay, or it be prepared with input from the employee.

While the rating scale is structured and confining, the narrative essay allows the appraiser

to examine any relevant issue, attribute, or performance. Thus, appraisers are able to

place emphasis on whatever issues or attributes they feel are appropriate. In this sense,

the narrative essay is open-ended and flexible.

Effective Appraisal system (Must have)

 Reliability and validity

 Job - relatedness

 Standardization

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  Practical viability ability

 Legal Sanction

 Training to appraisers

 Open communication

Reasons for Performance Appraisal Failures

Where performance appraisal fails to work as well as it should, lack of support

from the top levels of management is often cited as a major contributing reason.

Opposition may be based on political motives, or more simply, on ignorance or disHCL

ief in the effectiveness of the appraisal process. It is crucial that top management HCL

ieve in the value of appraisal and expresses their visible commitment to it. Top managers

are powerful role models for other managers and employees. Those attempting to

introduce performance appraisal, or even to reform an existing system, must be acutely

aware of the importance of political issues and symbolism in the success of such projects.

Fear of Failure

There is a stubborn suspicion among many appraisers that a poor appraisal result

tends to reflect badly upon them also, since they are usually the employee's supervisor.

Many appraisers have a vested interest in making their subordinates "look good" on

paper. When this problem exists (and it can be found in many organizations), it may point

to a problem in the organization culture. The cause may be a culture that is intolerant of

failure. In other words, appraisers may fear the possibility of repercussions - both for

themselves and the appraisee.

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 That accuracy in performance appraisal is impossible to achieve, since people

play social and political games, and they protect their own interests. "No savvy

manager...” says Longenecker, "... is going to use the appraisal process to shoot himself

or herself in the foot." No matter what safeguards are in place, "... when you turn

managers loose in the real world, they consciously fudge the numbers." What

Longenecker is saying is that appraisers will, for all sorts of reasons, deliberately distort

the evaluations that they give to employees.

Indeed, surveys have shown that not only do many managers admit to a little

fudging, they actually defend it as a tactic necessary for effective management. The

fudging motives of appraisers have, at times, a certain plausibility. For instance, a

supervisor who has given an overly generous appraisal to a marginal performer might

claim that their "legitimate" motive was the hope of encouraging a better performance.

On the other hand, fudging motives can a lot less admirable and sometimes

devious: the appraiser who fudges to avoid the possibility of an unpleasant confrontation,

the appraiser who fudges to hide employee difficulties from senior managers, the

appraiser who fudges in order to punish or reward employees.

Judgment Aversion

Many people have a natural reluctance to "play judge" and create a permanent

record, which may affect an employee's future career. This is the case especially where

there may be a need to make negative appraisal remarks. Training in the techniques of

constructive evaluation (such as self-auditing) may help. Appraisers need to recognize

that problems left unchecked could ultimately cause more harm to an employee's career

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than early detection and correction. Organizations might consider the confidential

archiving of appraisal records more than, say, three years old.

Employee Participation

Employees should participate with their supervisors in the creation of their own

performance goals and development plans. Mutual agreement is a key to success. A plan

wherein the employee feels some degree of ownership is more likely to be accepted than

one that is imposed. This does not mean that employees do not desire guidance from their

supervisor; indeed they very much do.

Performance Management

One of the most common mistakes in the practice of performance appraisal is to perceive

appraisal as an isolated event rather than an ongoing process. Employees generally

require more feedback, and more frequently, than can be provided in an annual appraisal.

While it may not be necessary to conduct full appraisal sessions more than once or twice

a year, performance management should be viewed as an ongoing process.

Frequent mini-appraisals and feedback sessions will help ensure that employees

receive the ongoing guidance, support and encouragement they need. Of course many

supervisors complain they don't have the time to provide this sort of ongoing feedback.

This is hardly likely. What supervisors really mean when they say this is that the

supervision and development of subordinates is not as high a priority as certain other

tasks.

In this case, the organization may need to review the priorities and values that it

has instilled in its supervisory ranks. After all, supervisors who haven't got time to

57
monitor and facilitate the performance of their subordinates are like chefs who haven't

got time to cook, or dentists who are too busy to look at teeth. It just doesn't make sense.

If appraisal is viewed as an isolated event, it is only natural that supervisors will come to

view their responsibilities in the same way. Just as worrying, employees may come to see

their own effort and commitment levels as something that needs a bit of a polish up in the

month or two preceding appraisals.

Performance Appraisal Bias Effects

Gabris & Mitchell have reported a disruptive bias in performance appraisal

known as the Matthew Effect. It is named after the Matthew of biblical fame who wrote,

"To him who has shall be given, and he shall have abundance: but from him who does

not have, even that which he has shall be taken away." In performance appraisal, the

Matthew Effect is said to occur where employees tend to keep receiving the same

appraisal results, year in and year out. That is, their appraisal results tend to become self-

fulfilling: if they have done well, they will continue to do well; if they have done poorly,

they will continue to do poorly. He Matthew Effect suggests that no matter how hard an

employee strives, there past appraisal records will prejudice their future attempts to

improve.

There is other research to support the theory that poor performers might not be

given a fair chance to improve. A study of supervisors in nearly 40 different

organizations found that subordinates tend to be divided into two groups: in-groupers and

out-groupers. This study, by Heneman, Green Berger & Anon you (1989) reported that in

groupers are subordinates who seem to be favored by their supervisors. In their

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relationship with the boss, they enjoy "a high degree of trust, interaction, support and

rewards."

On the other hand, out groupers don't do as well. They appear to be permanently

out of favor and are likely to bear the brunt of supervisory distrust and criticism. The

effect is therefore similar to the horns and halo effect; supervisors tend to judge

employees as either good or bad, and then seek evidence that supports that opinion. It

was found that when an in grouper did poorly on a task, supervisors tended to overlook

the failure or attribute to causes such as bad luck or bad timing; when they did well, their

success was attributed to effort and ability.

But when an out grouper performed well, it was rarely attributed to their effort or

ability. And when an out grouper performed poorly, there was little hesitation it citing the

cause as laziness or incompetence. It is not clear how supervisors come to make the

distinction between in groupers and out groupers. Whatever the criteria, however, it is

clearly not objective, equitable or reliable. This bias must inevitably lead to a distortion

of the appraisal process. It must also be a source of frustration for those employees who

are discriminated against. Success. A plan wherein the employee feels some degree of

ownership is more likely to be accepted than one that is imposed. This does not mean that

employees do not desire guidance from their supervisor; indeed they very much do.

Frustration

The extent of this frustration was explored by Gabris & Mitchell. They studied an

organization with a quarterly performance appraisal system. The workforce was divided

into two groups: those who had been given high appraisal results consistently, and those

59
who had low results consistently. When the groups were asked if the appraisal system

was fair and equitable, 63 per cent of the high performers agreed, compared to only 5 per

cent of the lower performers. The groups were asked if their supervisors listened to them.

Of the high performers, 69 per cent said yes, while among the low performers, 95 per

cent said no.

Finally, when asked if their supervisors were supportive, nearly half of the high

performers agreed that they were, while none (nil, zilch, zero!) of the low performers

agreed. Of course, not everyone who gets a poor appraisal result is a victim of

supervisory bias. Nor are all supervisors prone to making the same degree of in-group

and out-group distinction. The effects discussed here are tendencies, not immutable

effects. But to some extent, it appears that certain employees may be unfairly advantaged,

while others are disadvantaged, by bias effects in the judgments of supervisors.

It is a cardinal principle of performance appraisal that employees should have the

chance to improve their appraisal results - especially if their past results have not been so

good. It is a very serious flaw in the process of appraisal if this principle is denied in

practice. There are reasonable steps, which can be taken to limit the effects of supervisory

bias.

Awareness Training

The first line of defence lies in raising awareness of the problem. Supervisors

need to be informed of the types of subtle bias that can interfere with their performance

as appraisers. They need to understand that the in-group / out-group bias, for instance,

reduces the morale and motivation of their subordinates.

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Developing Poor Performers

Incentives, financial or non-financial, may offered to encourage supervisors to

make special efforts to help poor performers improve. Supervisory appraisals, for

example, might stress the importance of working with poor performers to upgrade their

performance. The possibilities are extensive.

Retention of Records

Performance appraisal results should not become a permanent part of an

employee's personnel record. Employees should not feel that their employment history

has been forever marred because of a poor appraisal result. If appraisal records are to be

retained for long periods of time, they should be securely archived and access to them

restricted. New supervisors should not be permitted to review records that are older than

a few years. Employees should have the chance to make a new impression.

Counseling, Transfer, Termination

There is always the possibility that an employee who receives poor appraisal

results is in fact a chronic poor performer of course, no employer is bound to tolerate

poor performance forever. Consistently poor appraisal results will indicate a need for

counseling, transfer or termination. The exact remedy will depend on the circumstances.

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Common Appraisal System Faults

Some of the most frequent faults employees find with performance appraisal systems are:

1. The reported evaluations tend to be non-specific (generalities cannot help an

employee make improvement)

2. The comments in the appraisal document are inconsistent with actual performance

(at least as perceived by the employees) -- the observations lack empirical

evidence

3. The meetings are handled poorly and dominated by superiors who tend to use

one-way communication

4. Little or no constructive suggestions for improvement are made during the

interview

5. Consistent with the observation that superiors frequently engage in one-way

communication, the individual employee has little or no input

6. The process is mechanical and contributes little to either the betterment of the

organization or the employee

Given the faults listed above, the process engenders hostility in the employees

Improving Appraisal Systems

The following suggestions might lead to a more rational performance appraisal process:

• Ensure that all employees are subject to evaluation (from the president/manager

down)

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 o People in the organization will feel more commitment to the performance

evaluation process if the supervisors who give appraisals will also be

judged

• The appraisals ought to be spread out throughout the year

• Supervisors faced with a pile of appraisals at any one period of time will feel

overwhelmed and will likely not do a good job because they are rushed

• Legal considerations and confidentiality issues must be considered

o Policies with respect to where the appraisals will be kept and who has

access to them must be implemented

• Self-evaluation should be encouraged as part of the process

o This procedure may invite disagreement

o Most people rate themselves the same or lower than their manager will

o Another benefit of self appraisal is that managers frequently don't know all

that's required to get the job done -- the manager thus learns more about the organization by

reading the employees' self-evaluation

• Have peers conduct reciprocal reviews

• Have subordinates evaluate their superiors

• Establish a clear relationship between salary increments and performance

appraisals

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• Establish a policy to determine how much of the review will be based on personal

observation and interaction, and how much will rely on input received from others

-- make sure all employees are aware of this policy

• Publicize which performance appraisal methodology you intend to use:

o Management by objectives

o Essays

o Graphic rating scales

o Weighted checklists

o Behavioral anchored ratings

o Forced choices

o Critical incidents

o Rankings

o Paired comparisons

• Consider using external sources of information -- customers, clients

• Use performance appraisals as a chance to clarify or communicate the intent of

the employees' job descriptions

• Use performance appraisals as a chance to revise job descriptions -- the interview

may make it clear that the job description is inconsistent with tasks actually

required of the employees

• Include objectives for the coming year in the performance appraisals

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 • Follow up on the performance appraisal recommendations

360-degree Performance Appraisal: Evaluating Employees From All Angles

Traditional performance appraisals, as discussed above, can be both subjective

and simplistic. At times, they can also be deemed to be "political". In an attempt to

improve this methodology, some companies have turned to 360-degree appraisals. 360

appraisals pool feedback from a department's internal and external customers to ensure a

broader, more accurate perspective of an employee's performance. 360-degree

performance appraisal is an attempt to answer the question: "How can a supervisor

evaluate an employee he or she sees only a few hours each week?"

Using internal and external clients:-

360-degree performance appraisals offer an alternative by which organizations

may gain more useful performance information about employees. Because all

clients/customers an employee comes into contact with can conceivably have input into

the performance appraisal, this methodology can also makes them more accountable to

their customers. Using a courtroom metaphor, one could say that, rather than having a

single person play judge, a 360-degree appraisal acts more like a jury. People who

actually deal with the employee each day have an opportunity to create a pool of

information from which the appraisal is written. Internal clients may include supervisors,

subordinates, co-workers, and representatives from other departments. External

customers may include clients, suppliers, consultants and customers.

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Perceived fairness:-

Given the use of a wide variety of sources for information in the 360-appraisal

process, this method provides a broader view of the employee's performance. Frequently,

the employee on whom the appraisal is being done (the ratee) will feel that the process is

more fair.

Validity

Very often, an employee's peers know their behaviors best. Consequently,

employees cannot hide as easily in 360-degree appraisals.

Employee development

360-degree appraisal enables an employee to compare his or her own perceptions

of their work performance with the perception of others. As such, the method facilitates

employee self-development. Feedback from one's peers is more likely to lead to changed

behaviors.

Accountability to customers

A 360-degree appraisal process provides a formalized communication link

between the employee being evaluated and their customers. These people now have

feedback into the employee's performance rating. As such, the process is likely to make

the employee more accountable to his or her various internal and external customers.

Furthermore, organizations can also use this feedback to create more customer-oriented

goals for the following year.

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The raters: how many and who?

One issue employers must solve in implementing a 360-degree appraisal program is

determining how many raters should be involved. Next, the organization must decide

who should do the rating. Generally speaking, less than five raters limits the perspective

while more than ten raters is likely to make the appraisal system complex and time

consuming. A firm would be well advised to develop a workable definition of what

constitutes a peer, an internal customer, an external customer, a supervisor, etc. For

example, to be useful, the customer ought to be one who has significant interactions with

the ratee.

Some organizations permit the ratee to develop a list of key internal and external

customers that he or she interacts with. The ratee then recommends five to ten of these

individuals to serve as raters. In this process, the supervisor still retains the ultimate

responsibility for the appraisal and therefore ensures that appropriate raters are selected.

The ratee is thus prevented from stacking the deck with supportive customers. Another

option has the raters selected at random from the ratee's team by a computer-generated

system. Those selected are then notified by E-mail to participate in the appraisal.

Limitations on the use of external clients

An organization contemplating the use of the 360-degree process must keep in

mind that reviewing that organization's employees' performance is not the customer's

business. To ensure the customers' cooperation, the process should be a mutually

beneficial process. Furthermore, the various external customers would ideally evaluate

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the ratee only on the behaviors or work incidents that they have directly observed. This,

of course, also holds for internal raters.

Summarizing the data

Once all raters have supplied their appraisals, the employee's supervisor is

generally responsible for summarizing the data and determining the final performance

rating. After summarizing the data, the supervisor conducts the formal appraisal

interview with the ratee. Another variation of the summary process makes the ratee

responsible for summarizing the feedback data from the raters. The ratee then submits a

summary analysis to his or her supervisor. The ratee and the supervisor then meet to

determine the ratee's final performance rating and development plan.

Rater confidentiality

Organizations must decide whether the feedback from the various raters should be

kept anonymous or be identified to the employee. Sometimes raters give fuzzy feedback

because of the fear that the feedback might come back to them. One rule might be that no

rater can give negative feedback in the appraisal unless that rater has previously given the

feedback directly to the ratee. Most organizations should start with a policy of

confidentiality until sufficient understanding, maturity and organizational trust is

achieved.

Prescriptions for legally defensible appraisal systems...

• System should be formal

• Appraisal should be based on job analysis

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 • Rating should be on specific work dimensions rather than on overall or global

measures

• Performance standards must be communicated to employees

• Raters should be trained

• Evaluators should be given specific, written instructions about the standards and

the process

• Use more than one independent evaluator of performance

• Evaluators must have ample time to evaluate performance

• Use objective data whenever possible

• Data should be empirically validated

• Procedures for appraisal must not differ as a function of race, sex, color, national

origin, marital status, or age

• Avoid ratings on traits, personality, or aptitude

• Behavioral documentation should be given for extreme ratings (critical incidents)

• Employees should be given an opportunity to review their appraisals

• A formal appeal system should be available

Appraisal Methods

In a landmark study, Locher & Teel (1977) found that the three most common

appraisal methods in general use are rating scales (56%), essay methods (25%) and

results- oriented or MBO methods (13%). For a description of each, follow the button

69
links on the left. Certain techniques in performance appraisal have been thoroughly

investigated, and some have been found to yield better results

Encourage Discussion

Research studies show that employees are likely to feel more satisfied with their appraisal

result if they have the chance to talk freely and discuss their performance. It is also more

likely that such employees will be better able to meet future performance goals.

Employees are also more likely to feel that the appraisal process is fair if they are given a

chance to talk about their performance. This especially so when they are permitted to

challenge and appeal against their evaluation.

Constructive Intention

It is very important that employees recognize that negative appraisal feedback is

provided with a constructive intention, i.e., to help them overcome present difficulties

and to improve their future performance. Employees will be less anxious about criticism,

and more likely to find it useful, when the HCL ieve that the appraiser's intentions are

helpful and constructive. In contrast, other studies have reported that "destructive

criticism" - which is vague, ill-informed, unfair or harshly presented - will lead to

problems such as anger, resentment, tension and workplace conflict, as well as increased

resistance to improvement, denial of problems, and poorer performance.

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 RESEARCH METHODOLOGY
Research methodology is a systematic way, which consists of series of actions or steps

necessary to effectively carry out research and the desired sequencing of these steps. The

research is a process of involves a number of interrelated activities, which overlap and do

rigidly follow a particular sequence. It consists of the following steps

 Formulating the objective of the study

 Designing the methods of data collection

 Selecting the sample plan

 Collecting the data

 Processing and analyzing the data

 Reporting the findings

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 Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Reporting of Findings

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 RESEARCH OBJECTIVES

 To study of about Performance Appraisal System of HCL.

RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a particular

study. A Research design is the arrangement of conditions for collection and analysis of

the data in a manner that aims to combine relevance to the research purpose with

economy in procedure. Research Design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design

Hypothesis testing Research Design

On the basis of the objective of study, the study which is concerned with describing the

characteristics of a particular individual or of group of individual under study comes

under Descriptive Research design.

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Descriptive Research Design:-
In this research design the objective of study is clearly defined and has accurate method

of measurement with a clear-cut definition of population that is to be studied.

To steps are involved in formulating the research problem:

• Understanding the problem.

• Rephrasing the problem into meaningful terms form an analytical

point of view.

The training sessions are conducted in the beginning of training in order

To make us clear about the tasks provided and how handle the different situation

The research design used in this study is descriptive which includes interviewers.

Questionnaire and unit fact-findings enquiries with the employees

SAMPLING:

Sample is Researcher collect needed information from various persons who are

associated with this subject. When such associated persons are in new number research

can get information from all of them in such some people among associated persons are

selected and collect information from them. These selected persons represent the whole

universe and are called sample.

Sampling unit

The sampling for this research was HCL Employees were available for interview.

Sampling frame

Sampling frame for this survey was least 100 officers & 100 workmen’s

74
Sampling size

Sample size for the objective (Performance Appraisal system) sample size cover for the

various departments such as

Questionnaire Design

The questionnaire for this survey includes both open ended and close ended questions.

Why questionnaire

Now a days questionnaire are commonly used to collect data that is specific are crucial to

the success of business venture. With out doubt questionnaire allow to gather information

that can be found else where from say secondary information such as Manuals, Books

and internet resources this is because information collected is fresh and unique.

Questionnaire helps in identifying the following key points.

• Study about Organization’s Performance Appraisal system

• Employee’s awareness about Performance Appraisal system

• Employee’s attitude towards existing Performance Appraisal system

Way of issuing questionnaire

It was personal interview (face to face). It helped in directly asking the question to data

available through this is a time consuming processed interviewers have little time to

think.

Research study

A research study for the project on performance appraisal system this is done through

questionnaire to employees. Research is a systematic and in depth study to find out the

awareness and attitude towards PAR among employees.

75
 COLLECTION OF DATA
The procedure for collection of data depends upon various considerations

Availability of resources like money time manpower etc also affects the choice of

procedure.

Primary data

Direct personal observation

Indirect oral interviews

Information through manuals& websites

Information through questionnaire filled by respondents

Questionnaire

The questionnaire a list of question to be asked from the respondent s the it also contains

a suitable space where the answer can be offered a better questionnaire form, which has

completed, by an interviewer.

Types of questionnaire

Structured – non disguised

Structured – disguised

Non structured – non disguised

Non structured – disguised

Secondary data

Secondary data mean that are already available that is they refer the data which have

already been collected and analyzed by some one else when the researcher utilizes

secondary data that has to look into various sources where he can obtain. In this case he

certainly not confronted with the problems that are usually data nor unpublished data
76
associated data associated with the collection of original data secondary data may either

be published.

77
 TOOLS OF ANALYSIS
Analysis may be categorized as descriptive analysis and (inferential analysis is

often known as statistical analysis)

Descriptive Analysis: -

Descriptive analysis is largely the study of distribution of one variable this study

provide us profile of companies, workgroups and person & other subject on any of a

multitude of characteristics such as size composition.

Correlation Analysis: -

Correlation analysis studs the joint variation two or more variables for

determining the amount of correlation between two or more variable.

Inferential Analysis: -

Inferential analysis is concerned with the various tests of significance for testing

hypothesis in order to determine with what validity data can be said to indicate some

conclusion.

78
 DATA ANALYSIS
DATA WORK SHEET OF OFFICERS

Options
Question No. (a) % (b) % (c) % (d) % NIL Total persons
1 90 10 0 0 0 100
2 75 15 5 5 0 100
3 34 60 4 2 0 100
4 15 85 0 0 0 100
5 50 30 10 8 2 100
6 95 5 0 0 0 100
7 65 28 2 3 2 100
8 78 10 10 0 2 100
9 42 30 16 10 2 100
10 80 18 0 0 2 100
11 70 20 10 0 0 100
12 65 24 10 0 1 100
13 80 20 0 0 0 100
14 40 10 40 10 0 100
15 52 25 12 10 1 100
16 55 25 10 10 0 100
17 90 10 0 0 0 100
18 20 40 10 30 0 100

79
 DATA WORK SHEET OF WORKMEN

Options
Questio0n No. (a) % (b) % (c) % (d) % NIL Total persons
1 80 20 0 0 0 100
2 70 20 10 0 0 100
3 10 10 10 70 0 100
4 50 50 0 0 0 100
5 0 100 0 0 0 100
6 78 10 10 0 2 100
7 60 20 15 5 0 100
8 50 30 10 8 2 100
9 80 20 0 0 0 100
10 65 35 0 0 0 100

80
 QUESTIONNAIRE PRESENTATION WITH PIE CHART

( FOR OFFICERS)

Question No. 01
0%
0%
10% 1
0%
2
3
4
5
90%

1:- This pie chart is shows about 90% of officers are aware of current performance

appraisal System & 10% are not aware of current PAR System.

Question No. 02

5%
5% 1
0%
15%
2
3
4
75% 5

2:- According to 75% the current P.A. System is two tire System ,according 15%
Question No. 18

,Three tire system ,5% four tire system and 5% are not aware current performance
0% 20% 1
30%
2
appraisal System. 3
4
10%
40% 5

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 Question No. 03

2% 0%
4% 1
34%
2
3
4
60%
5

3:- According to 34% two tire systems consist of appraisee & Appraiser, 60% IA &

RA, 4% HOD & GM & 2% immediate superior & HOD.

Question No. 04 0%
0%
0%
15% 1
2
3
4
85% 5

4:- About 85% of officers are performance appraisals assessed by point system, 10%

through Mark System 0% are not aware any group.

82
 Question No. 05

8% 2%
10% 1
2
3
50%
4
30% 5

5:- About 50% of Officers agree that task Setting provides objectively in appraising

their performance less than 30% of the officers are not fully agree with the statement

10% are neutral & disagree 2% are not fill the questionnaire.

Question No. 06

0%
0%
5% 0% 1
2
3
4
5
95%

6:- About 95% officers are says yes for completing Quarterly Task setting in time

,rest due to some reason its not completed in time, such cases; lack of seriousness &

ambiguity.

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 Question No. 07
2%
3%
2% 1
28% 2
3
4
65%
5

7:- Above 60% of the officers agree that self appraisal system Proves to be effective

& rest of officers do not completely agree with it.

Question No. 08
2%
0%
10% 1
10% 2
3
4
78% 5

8:- About 78% of officers are says that appraiser and appraisee should be responsible

for ensuring objectivity and reducing biasness the “Performance Appraisal system ,10%

are says appraiser & appraisee and peer & 10% says appraiser & appraisee and peer &

subordinate ,2% are not fill the questionnaire.

84
 Question No. 09

10% 2% 1
16% 42% 2
3
4
30% 5

9:- More than 40% officers are agree that skill possessed by an officers vary ,30%

are partially agree and 16% are Neutral ,less than 15% are not agree with its.

Question No. 10
2%
0%
0%
18% 1
2
3
4
80% 5

10:- About 80% officers are getting regular feedback on their performance but less

than 20% are not getting regular feedback.

85
 Question No. 11

0%
10%
0% 1
20% 2
3
4
70% 5

11:- About 70% of officers are agree that feedback is beneficial for improving their

performance ,20% are partially agree and 10% are neutral.

Question No. 12
1%
0%
10% 1
24% 2
3

65% 4
5

12:- 65% of the officers accepts that current PAR is an effective tool for evaluating the

employee performance,20% partially agree with this and 10% are neutral.

86
 Question No. 13
0%
0%
20% 0% 1
2
3
4
80% 5

13:- About 80% of officers are accept that current PAR System reflect the training

need, 20% are not accepts this.

Question No. 14

10% 0%
40% 1
2
3
4
40% 5
10%

14:- 40% of the officers consider that the relevance of PAR system in deciding

promotion, 10% are says deciding incentives and 40% agree with training and

development, 10% are accepting the programme succession planning.

87
 Question No. 15

10% 1%

12% 1
2
3
4
52% 5
25%

15:- According to 52% of officers are accepts the existing PAR system ensure due

recognition talented employee in term of promotion ,rewards and others, 28% are

partially agree and 12% are neural ,10% are disagree.

Question No. 16

10% 0%
10%
1
2
3
4
25% 55% 5

16:- More than 55% of officers are completely agree that the existing PAR system is

helpful in wholesome development of employee and 25% are partially agree,10%

disagree, 10% are neutral.

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 Question No. 17

0%
0%
10% 0%
1
2
3
4
5
90%

17:- About 90% of the officers are completely satisfied with the current PAR system,

rest 10% are not satisfied with the current performance appraisal system.

Question No. 18

30% 0% 20%
1
2
3
4
5
10% 40%

18:- About 20% of the officers are say management is responsible to your

innovativeness and 40 % are says only personal problem, 10% are tell the official

problem 30% are says career aspiration.

89
 QUESTIONNAIRE PRESENTATION WITH CHART

(FOR WORKMEN)

Question No. 02
0%
20%
1
0%
2
10% 3
70%
4
5

Question No. 01
3
20%
0% 5
Not
0% 1
aware 4
0% 2
3
4
5
80%
aware

1. About 80 % of workers are aware of current Performance Appraisal system & 20

% are not aware of current PAR System.

2. According to 70%, the current P.A. System is two-tire system, according 20%,

three tire system, and 10% four-tire system and 5% are not aware current Performance

Appraisal System

90
 Question No. 03 5
Question No. 04
0% 3
1
5 0%
10%
0% 4
0%
2
10% 1 1
2 2
2 1
4 3 3 3
50% 50%
70% 10%
4 4
5 5

3. About 10% of workers are performance appraisal assessed by point system, 10%

through Mark system 10% grade system and 70% are not aware.

4. About 50 % of workers are says task setting is done by time bound and 50% are not

accepts time bound.

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 SUGGESTION OF ANALYSIS OF

QUESTIONNAIRE

 Suggestion from employees for the effective implementation of PAR system

 Job Description & key Result Areas should be identified & appraisee should be

answered accordingly.

 While doing job Rotation a person’s core competence should be major criteria for

decision.

 Assessment even by peer, subordinates & customers 360 degree PA system

should be implemented in order to make PAR system more focused, rather than

relation driven.

 Project based performance & measurements (six sigma in work place & on personal

level) should be encouraged in Appraisal system.

 Ideation & vision statement will interweavn them; strategy, transformation &

leadership should be encouraged & assessed in PAR system.

 Effective need based training programme must be conducted on regular intervals like

time bound task setting is formulated in PAR system, there must also be time made

appraiser equally awakened. This will also help in making the existing PAR system

more effective & purposeful.

 Deptts where work & task are not known, Like-Plant Maintenance & Hospital, PAR

system should be changed because jobs or tasks except regular work can’t be

assigned to individual.

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 Suggestion point should be considered & implementation total. As seen that the

suggestion are some times ignored by higher authorities. As IA is dealing with

persons whose PAR is filled & knows form very near.

 The present PAR system may be quite effective provide the weakness strengths

training requirements improvement suggestions are properly monitored for taking

necessary remedial action measures & fro suitable placement in the organization i.e.

right person at right place.

 The task should be reviewed & discussed systematically by IA & RA & necessary

action should also be taken at proper time.

 Ra should take necessary step in fulfilling Appraisee request regarding training, job

rotation.

 Based upon the feedback. The training & Development needs of an individual should

be met & should not be limited only to award promotion.

 There must be a provision that appraisee may come to know the final rating after PRB

i.e. more transparency is required.

 Timely submission of quarterly task may be included to each offer’s task & marks to

be given on that.

 Employees must be given proper knowledge & made aware of PAR system in HCL .

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 FINDINGS

 The PAR system has been reviewing time to time to improvise the ways to assess the

effectiveness, potential, development need & career sketch of the individual for the

management to formulate HRD programme into meet organization needs.

 There is problem in collecting the PAR forms back more often the forms were not

received on time. The main problem is therefore of coordination.

 Manager has to perform a very daunting list of time consuming tasks standing with

recalling which worker need to be reviewed each month, arranging appraisal meeting

with them, collection the relevant performance data, filling out the appraisal forms &

documenting the employees performance.

 PA is not actually for workmen it’s basically for the officers. Previously workmen

were judged on the ground of ability, attendance & conduct through gradation system

but this time the new marking system is introduced.

 The culture of confidentiality persists due to which PA will never be a readily

undertaken exercise. Adverse remarks are communicated to employees in writing

confidentially by the reporting officers.

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 IA, RA & PRB consist of senior officers than the appraisee. Subordinate, peer,

customer or suppliers are not included in the PA committee. Thus the Appraisal

system is by higher level.

95
 CONCLUSION
Based on the vast study & analysis I can say that the Top management role needs

a tremendous change towards the role of facilitator. Every manager in the organization

hierarchy at his own position has the same role of facilitator. In fact in the present scene.

The managers are facilitators. The role of facilitator has a high demand on individual to

be a continuous learner, i.e. there is a transition from…………………….owner.

………………………Manager ……………………Leader

I conclude that for the LPG (Liberalization, Privatization and Globalization) of

business, Empowerment strengthens the ongoing capacity for successful action under

changing circumstances.

Thus to develop self esteem, organization has to satisfy the employees need for

higher levels of job satisfaction & an overall improved quality of work life consistent will

the dignity of the employees as a human being.

I hope that this project is of utmost value to all who are in this field & I also feel

that the knowledge gained during this training would be helpful to me in future.

96
 SUGGESTIONS

 Workmen PAR should also be developed as of officers & they should be made aware

about it.

 For the technical one column should also be included in the P.A. format which should

concern about the time availability of facilities provisions required for technical

workmen, officers in order to carry out & completion of job if any.

 This would turn make IA / RA equally responsible & transparency in PAR system.

 Emphasis should be given to measuring the employee’s performance i.e. what the

man does rather than what he is (merit rating). The important thing is to be aware of

his strengths. What can he do? And what has he done?

 Self Appraisal system should thoroughly reviewed by the I.A., RA & Senior RA as

the appraisee would not be able to assess themselves but the concerned authorities

assessment of the appraisee should be impartial & up to the mark.

 Extra care must be taken by the authorities while describing the performance of

appraisee, as the attributes used in this section are not the part of specified traits for

technical & non-technical personnel. Not only the deficiency should be pointed out in

97
 this section but if the appraisee have fair better than usual it should also be

mentioned.

 Multirater Feedback Mechanism. Regular feedback must be given to employees.

Identify areas for both organizational & individual improvement through 360-degree

process. Promote team building by using this Multirater feedback mechanism

 360-degree appraisal is an excellent means of providing feedback to employees

because it entails obtaining information from more than one group of people. All

those who form the role set member (those who has working relationship will the

appraisee) assess the appraisee on a standard format. The appraisees are taken form

the superiors, subordinates & colleagues. This encourages quality consciousness,

teamwork orientation & more participative.

 “Give a man fish. He will eat it. Train a man to fish. He will his family,” the

technique of training has been a key factor & a major tool used to achieve the

objectives of HRD. Training should be base on an assessment of the needs of

different groups & individuals. The training needs should flow from PAR system.

PAR helps in identifying directions in which individual should be trained &

developed.

98
 Whenever an individual is sponsored for training he should be told categorically the

reasons for sponsoring him & the expectations of the organization from him after he

return form the programme.

 Performance analysis should be made before making any comment. “Performance

Analysis “ is a sound alternative of finding ways & means of improving the employee

organizational performance & identifying development & growth needs.

 A positive emotional & professional climate should be created in workplace for the

employee to progress & review himself through “Performance Review” (feedback &

counseling).

 Virtual HR: HR Deptt. Can automate the PAR system with Internets. They can link

corporate business with the goals of the individual employee & generate meaningful

information from the vast data collected through out the organization.

 The system can save managers the trouble of having to remember a whole lot of

things. Once the manager completes the form, he / she can instantly route it to the

central HR information system where it is stored for all authorized parties to see.

 Such automated systems are very handy in case of 360-degree performance

evaluation. It frees HR Deptt. From needless paper work & allows human resource to

devote its resources to far more important things.

99
 QUESTIONNAAIRE
PERFORMANCE APPRAISAL IN HCL

Designation. ________________Department. ________________

Grade, scale ________________

1. Are you aware with the current “Performance Appraisal system” of HCL .

(a) yes (b) No

2. The current Performance Appraisal system is?

(a) Two tire system (b) Three tire system

(c) Four tire system (d) None aware

3. Two tire system Consist Of

(a) Appraisee &Appraiser (b) Ir & Ra

(c) Hod & Gm (d) Immediate

superior & Hod

4. Performance Appraisal Of Employee Is Assessed By

(a) Point system (b) Mark system

(c) Grade system (d) Not aware

Opinion About Features Of Performance Appraisal System

5. Task setting by appraisee and appraiser provides objective while appraising the

performance appraisal of the appraisee

(a) Agree (b) partially agree

(c) Neutral (d) disagree

100
6. Whether the quarterly task setting assignment completed by the 15th of first month

of each quarter if no give the reason

(a) Yes (b) No

7. Self Appraisal System proves to be effective while appraising the appraisee

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

8. Who in your opinion should be the responsible for ensuring objectivity and

reducing baiasness the “Performance Appraisal” system?

(a) Appraiser and Appraisee.

(b) Appraiser, Appraisee & peer.

(c) Appraiser, Appraisee, peer, & subordinates.

9. Skill possessed by an Appraiser vary as the moves from one grade to another.

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

10. Are you getting regular feed back on your performance from your Appraisal?

(a) Yes (b) No

11. Feed back is beneficial for improving your performance

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

101
Effectiveness of “Performance Appraisal” system

12. Current “Performance Appraisal” system is an effective tool for evaluating the

employee‘s performance

(a) Agree (b) Partially agree

(d) Neutral (d) Disagree

13. Does current “Performance Appraisal” system reflect the training need of an

employee?

(a) Yes (b) No

RELEVANCE OF “PERFORMANCE APPRAISAL” SYSTEM

14. What is your opinion is the relevance “Performance Appraisal” system?

Deciding promotion (b) Deciding incentives

(c) Training & development (d) programme Succession planning

15. The existing “Performance Appraisal” system ensures due recognition talented

employee in terms of promotion, rewards and others

(a) Agree (b) Partially agree

(c) Neutral (d) Disagree

16. Do you think that existing “Performance Appraisal” system is help full in

wholesome development of employee?

(a) Agree (b) Partially agree

(d) Neutral (d) Disagree

102
17. Are you satisfied with the current “Performance Appraisal” system

(a) Yes (b) No

18. Would you say management is responsible to your

(a) Innovativeness (b) Personal problem

(c) Official problem (d) Career aspiration

Give your suggestion for effective implementation of Performance Appraisal system in

HCL .

-----------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------

103
 BIBLIOGRAPHY
Books

 Manuals And Files Of HCL

 Research methodology ----------- Devandra Thakur

Deep & Deep Publication Pvt. Ltd. Year -2005.

 Principles and Techniques of Personnel Management –Udai Pareek

Himalya Publishing House Delhi Year -1997

WEB. Sites

 www.HCL -india.com /

 www.googal.com / performance appraisal system.

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