Performance management system (PMS) is the heart of

any “people management” process in organization.

Organizations exist to perform. If properly designed and
implemented it can change the course of growth and pace of
impact of organizations.

Performance management could be defined as it begins

when the job is defined and ends when an employee leaves
the company.

“Performance Appraisal is the process of evaluating the

performance & qualification of the employees in terms of the
requirements of the job for which he is employed, for the
purpose of administration including placement, selections for
promotions, providing financial rewards & other action which
required differential treatment among the group as
distinguished from actions affecting all member equally.”

There are three major steps in the performance appraisal process:

 Identification
 Measurement
 Management

With identification, the behaviors necessary for successful performance are

determined.

Measurement involves choosing the appropriate instrument for appraisal and

assessing performance.

Management, which is the ultimate goal, is the reinforcing of good performance

and the correction of poor performance.

Features of Performance Management System:

Setting SMART Goals for Employees : Goal Setting Software provides leaders, managers and
employees with web-based tools to set SMART goals and track progress on frequent intervals.

Evaluate Employee Performance : Employee Appraisal Software ensures objective and accurate
evaluation of your employees performance and helps you find the strengths and weaknesses of
the employees.

Coach and Train Employees to improve their performance : To continually improve performance
of your organization you need to continuously training employees to update their skills and
competencies. Training Management Software allows you to manage employee training
effectively.

Define competitive employee compensation plans: Employee compensation plan helps you to
remain competitive in your business and attract and retain talented employee. Promote right
employees to critical positions: Organizations success by placing right employee in right
positions.

Infosys defines, designs and delivers IT-enabled business solutions that

help Global 2000 companies win in a flat world. These solutions focus
on providing strategic differentiation and operational superiority to
clients. With Infosys, clients are assured of a transparent business
partner, world-class processes, speed of execution and the power to
stretch their IT budget by leveraging the Global Delivery Model that
Infosys pioneered.

INFOSYS TECHNOLOGIES : Performance Management System:

The first step toward carrying out performance appraisal at Infosys was the evaluation of
personal skills for the tasks assigned to an employee during the period of appraisal.

To evaluate the performance, different criteria :

timeliness,
quality of work carried out by the employee,
customer satisfaction,
peer satisfaction,
and business potential, were considered.

The personal skills of the employees were also evaluated based on their learning and
analytical ability, communication skills, decision making, change management, and
planning and organizing skills.
Each of these criteria was measured on a scale of 1 to 5 (with 1 signifying above the
expected performance level and 5 below the expected performance level).
360-Degree Feedback: The employees also look at aspects of the managers' performance,
strategic vision, ability to communicate, problem-solving skills, responsiveness

'What gets measured gets reviewed and what gets reviewed gets improved' is what the company
believes in and rewards each employee whose innovation is lauded by the customer. Employee-
Management Interface: It reduces the gap between the manager and the employee. Direct Q&A
link with the President himself, who is to respond within a given time-frame. Focus on Learning: A
lot of investment in employee-focused resources (e-Learning) and creating libraries
for employees, holding workshops. Allemployees are eligible for ESOPs after one year of
joining. Innovation: To innovate and nurture your own business ideas by getting support and
guidance from the company itself. Innovate@HCL is one such e-forum that enables employee
involvement and participation towards innovations in their work environment and beyond.
Business Continuity Plan: The company's comprehensive succession plan ensures continuity in
the event of an employee-related contingency. • This is a bi-annual process. The system is called
PerforMagic. KRAs are mutually set through a discussion between the project manager and the
software engineer. Also during this discussion the annual certifications are discussed. An
employee can obtain more than one certifications. The previous year’s certifications are also
reviewed and training needs are established. Also the reasons for incompletion of certification are
explored.

Soft skill training needs are also ascertained depending on the project requirements. Finally the
points are given. The report is sent three levels higher. If the superiors do need respond on time it
is considered approved. Then it is sent back to the engineer to find if he/she is satisfied. If it is
agreeable then it is finalised. There is a salary hike or a band change accordingly.

This entire system is online. Hence everyone involved in the process gets to gets track of it. This
ensures transparency.

Infosys technologies instituted an Employee Stock Option Plan for all eligible employees
in 1994 .
ESOP : Under this scheme warrants were transferred to employees .Each warrant, issued
at a price at Re.1,entitled the warrant holder a share at an eexercise price of Rs.99. These
shares are granted to 5000 employees

Infosys believed in financial value creation through competitive compensation as well as

through wealth creation opportunities. By linking a component of employee salaries to
their performance , the company has created a compensation model which embodies the
best principles of socialism and capitalism . While the individual performance incentive
benefits the company ,the company performance incentive is made attractive through the
ESOP scheme

Later scheme has discontinued due to Stock options killed the incentive to work. People with whom
infosys shared unparalleled wealth have left them and that they believe is not healthy,”

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive
appraisal where the feedback about the employees’ performance comes from all the sources that
come in contact with the employee on his job.

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with
the employee and can provide valuable insights and information or feedbackregarding the "on-the-
job" performance of the employee.
360 degree appraisal has four integral components:

1. Self appraisal
2. Superior’s appraisal
3. Subordinate’s appraisal
4. Peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his
achievements, and judge his own performance. Superior’s appraisal forms the traditional part of
the 360 degree performance appraisal where the employees’ responsibilities and actual
performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication
and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known
as internal customers, the correct feedback given by peers can help to find employees’ abilities to
work in a team, co-operation and sensitivity towards others.