CHAPTER I:

INTRODUCTION TO PERFORMANCE APPRAISAL

Performance Appraisal

People differ in their abilities and aptitudes. These differences are natural to a great
extent and cannot be eliminated even by giving the same basic education and training to
them. There will be some differences in the quality and quantity of work done by
different employees even in the same job. Therefore, it is necessary for management to
know these differences so that the employees having better abilities may be rewarded and
the wrong placements of employees may be rectified through transfers. The individual
may also like to know the level of his performance in comparison to his fellow
employees so that he may improve upon it. Thus, there is a great need to have suitable
performance appraisal system to measure the relative merit of each employee.

The basic purpose of performance appraisal is to facilitate orderly determination of an

employee’s worth to the organization of which he is a part. However, a fair determination
of the worth of an employee can take place only by appraising numerous factors some of
which are highly subjective, as for instance, attendance, while others are highly
subjective, as for instance, attitude and personality. The objective factors can be assessed
accurately on the basis of records maintained by Human Resource or Personnel
Department, but there is no device to measure the subjective factors precisely.
Notwithstanding this, appraisal of these factors must be done to achieve the full
appreciation of every employee’s merit.

What is Performance Appraisal ?

Performance appraisal goes by various names such as performance evaluation, progress

rating, merit rating, merit evaluation, etc. performance appraisal means systematic
evaluation of the personality and performance of each employee by his supervisor or
some other person trained in the techniques of merit rating. In simple words, performance
appraisal is the systematic evaluation of the individual with respect to his performance on

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the job and his potential for development.“Performance appraisal includes all formal
procedure used to evaluate personalities and contributions and potentials of group
members in a working organization. It is continuous process to secure information
necessary for making correct and objective decision on employees.”

Performance Appraisal is the systematic appraisal of the employee’s personality traits

and performance on the job and is designed to determine his contribution and relative
worth to the firm.

Under Performance Appraisal we not only evaluate the performance of a worker but
also his potential for development.

How is Performance managed ?

Good performance by the employees creates a culture of excellence, which benefits the
organization in the long run. The activity includes evaluation of jobs and people both,
managing gender bias, career planning, and devising methods of employee satisfaction
etc. The efforts are to make to generate the individual’s aspirations with the objectives of
the organization. Organization has to clear the way of career advancements for talented
and hardworking people. Fear of any kind from the minds of the employees should be
removed so that they give best to their organization. Allow free flow of information.
Communication network should be designed in such a way no one should be allowed to
become a hurdle. This enables the managers to take correct decisions and that too quickly.

Why Performance Appraisal ?

Today’s working climate demands a great deal of commitment and effort from employees,
who in turn naturally expect a great deal more from their employers. Performance
appraisal is designed to maximize effectiveness by bringing participation to more
individual level in that it provides a forum for consultation about standards of work,
potential, aspirations and concerns. It is an opportunity for employees to have
significantly greater influence upon the quality of their working lives. In these times of
emphasis on “quality”, there is a natural equation: better quality goods and services from

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employees who enjoy better quality “goods and services” from their employers.
Performance appraisal must be seen as an intrinsic part of a manager’s responsibility and
not an unwelcome and time-consuming addition to them. It is about improving
performance and ultimate effectiveness. Performance appraisal is a systematic means of
ensuring that managers and their staff meet regularly to discuss post and present
performance issues and to agree what future is appropriate on both sides. This meeting
should be based on clear and mutual understanding of the job in question and the
standards and outcomes, which are a part of it. In normal circumstances, employees
should be appraised by their immediate managers on one to one basis. Often the
distinction between performance and appraising is not made. Assessment concerns itself
only with the past and the present. The staff is being appraised when they are encouraged
to look ahead to improve effectiveness, utilize strengths, redress weaknesses and examine
how potentials and aspirations should match up. It should also be understood that pushing
a previously prepared report across and desk cursorily inviting comments, and expecting
it to be neatly signed by the employee is not appraisal - this is merely a form filling
exercise which achieves little in terms of giving staff any positive guidance and
motivation.

PURPOSE OF PERFORMANCE APPRAISAL

 Evaluation:The major purpose of performance appraisal is to evaluate how well

employees have conducted their duty.

 Measure performance accurately: Every company has to set mutually acceptable

criteria or performance standards so that it could compare employee’s performance
with it. This helps in accurate measurement of employee’s job performance which is
necessary for the company to know where it is heading towards.

 Provide clarity of expectation and actual result: Every employee wants them to be
told about their duties; what the organization really wants them to do. However, this
is not enough to get good output from them.They should also be told how well they

3
 have done their duties and how can they improve their performance. They should be
made clear about how near they are to do their expectation.

 Identify area of weakness of employees:All employees may not be all-rounder.

Some employees may have weak points as well, which if not sorted out in time,
might be a liability for the company. Performance appraisal helps in identifying such
weak points.

 Determine training and developmental needs: Only determining weak points is

not enough. A company should also make efforts to abolish them. A properly carried
out performance appraisal is a tool to determine what necessary steps are to be taken
in order to help the employees in improving their performance.

 Take corrective actions:Performance appraisal distinguishes excellent and poor

performing employees. Results of performance appraisal help the employers in
taking corrective actions. Such actions may be counseling or warning the poor
performers to improve performance and to prevent occurrence of undesirable results.

 Decide retention and termination of employees: Progress report of employees

does not only help in determining promotion but also in determining termination.
Employees, with poor reports, are at first consulted. But, if the supervisors don’t find
any growth, they will be forced to take severe action like termination.

 Evaluate effectiveness of HRM functions: Recruitment, selection, employee

training, rewarding, etc. are some functions of human resource management whose
effectiveness can only be analyzed when performance of employees are appraised.

 Decide salary and rewards: Performance appraisal of employees helps the

supervisors in knowing their job performance and the rightful amount to pay them.
The employees will receive wages as per the contribution they have made. The

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 impressive contributors are also rewarded by the company as per the organization’s
policy.

 Providing continuous feed back: It is essential for the employers to know what
performance and achievements have been made by their employees. But, it is also
equally important for an employee to know where they stand, where they are going
and how they are going to get there. Thus, giving feedbacks to employees is also a
major purpose of performance appraisal.

Benefits of Performance Appraisal

1. A good system of performance appraisal helps the supervisor to evaluate the

performance of his employees systematically and periodically. It also helps him to
assign that work to individuals for which they are best suited.
2. Performance rating helps in guiding and correction of employees. The supervisor
my use the results of rating for the purpose of constructively guiding employees
in the efficient performance of work.
3. The ability of staff is recognized and can be adequately rewarded by giving them
special increments.
4. Performance appraisal can be used as a basis of sound personnel policy in relation
to transfers and promotions.
5. Rating can be used to evaluate the effectiveness of training programmers’.
Weaknesses of employees are revealed by merit rating and the training programs
can be modified accordingly.
6. Performance appraisal provides an incentive to the employees to better their
performance in a bid to improve their rating over others.
7. Systematic appraisals will prevent grievances and develop confidence amongst
the employees if they are convinced of the impartial basis of evaluation.
8. Performance appraisals can target a specific area of weakness that needs
evaluation and remediation.
9. Performance appraisals give the employer and employee the opportunity to sit
down and discuss performance.

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PERFORMANCE APPRAISAL PROCESS

ESTABLISH PERFORMANCE STANDARDS

COMMUNICATE PERFORMANCE
EXPECTATIONSTO EMPLOYEES

MEASURE ACTUAL PERFORMANCE

COMPARE ACTUAL PERFORMANCE

WITH STANDARDS

DISCUSS APPRAISAL WITH EMPLOYEE

INITIATE CORRECTIVE ACTION

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1. Establish Performance Standards:

The appraisal process begins with the establishment of performance standards. The
managers must determine what outputs, accomplishments and skills will be evaluated.
These standards should have evolved out of job analysis and job descriptions.

These performance standards should also be clear and objective to be understood and
measured. Standards should not be expressed in an articulated or vague manner such as
“a good job” or “a full day’s work” as these vague phrases tells nothing.

2. Communicate Performance Expectations to Employees:

Once the performance standards are established, this need to be communicated to the
respective employees so that they come to know what is expected of them. Past
experience indicates that not communicating standards to the employees compounds the
appraisal problem.

Here, it must be noted that mere transference of information (relating to performance

standards, for example) from the manager to the employees is not communication It
becomes communication only when the transference of information has taken place and
has been received and understood by the employees’.

The feedback from the employees on the standards communicated to them must be
obtained. If required, the standards may be modified or revised in the light of feedback
obtained from the employees. It is important to note that communication is a two-way
street.

3. Measure Actual Performance:

This is the third step involved in the appraisal process. In this stage, the actual
performance of the employee is measured on the basis of information available from
various sources such as personal observation, statistical reports, oral reports, and written
reports.

Needless to mention, the evaluator’s feelings should not influence the performance
measurement of the employee. Measurement must be objective based on facts and

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findings. This is because what we measure is more critical and important to the
evaluation process than how we measure.

4. Compare Actual Performance with Standards:

In this stage, the actual performance is compared with the predetermined standards. Such
a comparison may reveal the deviation between standard performance and actual
performance and will enable the evaluator to proceed to the fifth step in the process, i.e.,
the discussion of the appraisal with the concerned employees.

5. Discuss the Appraisal with the Employee:

The fifth step in the appraisal process is to communicate to and discuss with the
employees the results of the appraisal. This is, in fact, one of the most challenging tasks
the manager’s face to present an accurate appraisal to the employees and then make them
accept the appraisal in a constructive manner.

A discussion on appraisal enables employees to know their strengths and weaknesses.

This has, in turn, impact on their future performance. Yes, the impact may be positive or
negative depending upon how the appraisal is presented and discussed with the
employees.

6. Initiate Corrective Action:

The final step in the appraisal process is the initiation of corrective action when it is
necessary. The areas needing improvement are identified and then, the measures to
correct or improve the performance are identified and initiated.The corrective action may
be taken accordingly using the information achieved by covering the above
steps.Whenever possible, the manager should inform the employee of the type or amount
of increase to expect for her performance during the year. So this is about the
performance appraisal process.It should be done in a systematic way.

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METHODS OF PERFORMANCE APPRAISAL

Traditional Methods Modern Methods

1. Ranking method 1. Management by Objectives(MBO)

2. Paired Comparison 2. Behaviourally anchored rating scales

3. Grading 3. Assessment Centres

4. Forced Distribution method 4. 360-degree appraisal

5. Forced Choice Method 5. Cost accounting method

6. Checklist Method

7. Critical incident method

8. Graphic Scale method

9. Essay method

10. Field review method

11. Confidential report

Traditional Methods:

 Ranking Method:

It is the oldest and simplest formal systematic method of performance appraisal in which
employee is compared with all others for the purpose of placing order of worth. The
employees are ranked from the highest to the lowest or from the best to the worst.

9
In doing this the employee who is the highest on the characteristic being measured and
also the one who is L lowest, are indicated. Then, the next highest and the next lowest
between next highest and lowest until all the employees to be rated have been ranked.
Thus, if there are ten employees to be appraised, there will be ten ranks from 1 to 10.

 Paired Comparison:

In this method, each employee is compared with other employees on one- on one basis,
usually based on one trait only. The rater is provided with a bunch of slips each coining
pair of names, the rater puts a tick mark against the employee whom he insiders the better
of the two. The number of times this employee is compared as better with others
determines his or her final ranking.

The number of possible pairs for a given number of employees is ascertained by the
following formula:

N (N-1)/2

Where N = the total number of employees to be evaluated.

 Grading Method:

In this method, certain categories of worth are established in advance and carefully
defined. There can be three categories established for employees: outstanding,
satisfactory and unsatisfactory. There can be more than three grades. Employee
performance is compared with grade definitions. The employee is, then, allocated to the
grade that best describes his or her performance.

Such type of grading is done is Semester pattern of examinations and in the selection of a
candidate in the public service sector. One of the major drawbacks of this method is that
the rater may rate most of the employees on the higher side of their performance.

 Forced Distribution Method:

This method was evolved by Tiffen to eliminate the central tendency of rating most of the
employees at a higher end of the scale. The method assumes that employees’

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performance level confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per
cent. This is useful for rating a large number of employees’ job performance and promo
ability. It tends to eliminate or reduce bias.

It is also highly simple to understand and easy to apply in appraising the performance of
employees in organisations. It suffer from the drawback that improve similarly, no single
grade would rise in a ratings.

 Forced-Choice Method:

The forced-choice method is developed by J. P. Guilford. It contains a series of groups of

statements, and rater rates how effectively a statement describes each individual being
evaluated. Common method of forced-choice method contains two statements, both
positive and negative.

Examples of positive statements are:

1. Gives good and clear instructions to the subordinates.

2. Can be depended upon to complete any job assigned.

A pair of negative statements may be as follows:

1. Makes promises beyond his limit to keep these.

2. Inclines to favour some employees.

Each statement carries a score or weight, which is not made known to the rater. The
human resource section does rating for all sets of statements— both positive and negative.
The final rating is done on the basis of all sets of statements. Thus, employee rating in
this manner makes the method more objective. The only problem associated with this
method is that the actual constructing of several evaluative statements also called ‘forced-
choice scales’, takes a lot of time and effort.

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 Check-List Method:

The basic purpose of utilizing check-list method is to ease the evaluation burden upon the
rater. In this method, a series of statements, i.e., questions with their answers in ‘yes’ or
‘no’ are prepared by the HR department (see Figure 28-2). The check-list is, then,
presented to the rater to tick appropriate answers relevant to the appraisee. Each question
carries a weight-age in relationship to their importance.

When the check-list is completed, it is sent to the HR department to prepare the final
scores for all appraises based on all questions. While preparing questions an attempt is
made to determine the degree of consistency of the rater by asking the same question
twice but in a different manner However, one of the disadvantages of the check-list
method is that it is difficult to assemble, analyse and weigh a number of statements about
employee characteristics and contributions From a cost stand point also, this method may
be inefficient particularly if there are a number of job categories in the organisation,
because a check-list of questions must be prepared for each category of job. It will
involve a lot of money, time and efforts.

 Critical Incidents Method:

In this method, the rater focuses his or her attention on those key or critical behaviours
that make the difference between performing a job in a noteworthy manner (effectively or
ineffectively). There are three steps involved in appraising employees using this method.

First, a list of noteworthy (good or bad) on-the-job behaviour of specific incidents is

prepared. Second, a group of experts then assigns weightage or score to these incidents,
depending upon their degree of desirability to perform a job. Third, finally a check-list
indicating incidents that describe workers as “good” or “bad” is constructed. Then, the
check-list is given to the rater for evaluating the workers.

The basic idea behind this rating is to apprise the workers who can perform their jobs
effectively in critical situations. This is so because most people work alike in normal
situation. The strength of critical incident method is that it focuses on behaviours and,
thus, judge’s performance rather than personalities.

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Its drawbacks are to regularly write down the critical incidents which become time-
consuming and burdensome for evaluators, i.e., managers. Generally, negative incidents
are positive ones. It is rater’s inference that determines which incidents are critical to job
performance. Hence, the method is subject to all the limitations relating to subjective
judgments.

 Graphic Rating Scale Method:

The graphic rating scale is one of the most popular and simplest techniques for appraising
performance. It is also known as linear rating scale. In this method, the printed appraisal
form is used to appraise each employee.

The form lists traits (such as quality and reliability) and a range of job performance
characteristics (from unsatisfactory to outstanding) for each trait. The rating is done on
the basis of points on the continuum. The common practice is to follow five points scale.

 Essay Method:

Essay method is the simplest one among various appraisal methods available. In this
method, the rater writes a narrative description on an employee’s strengths, weaknesses,
past performance, potential and suggestions for improvement. Its positive point is that it
is simple in use. It does not require complex formats and extensive/specific training to
complete it.

However, essay method, like other methods, is not free from drawbacks. In the absence
of any prescribed structure, the essays are likely to vary widely in terms of length and
content. And, of course, the quality of appraisal depends more upon rater’s writing skill
than the appraiser’s actual level of performance.

Moreover, because the essays are descriptive, the method provides only qualitative
information about the employee. In the absence of quantitative data, the evaluation
suffers from subjectivity problem. Nonetheless, the essay method is a good start and is
beneficial also if used in conjunction with other appraisal methods.

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 Field Review Method:

When there is a reason to suspect rater’s biasedness or his or her rating appears to be
quite higher than others, these are neutralised with the help of a review process. The
review process is usually conducted by the personnel officer in the HR department.

The review process involves the following activities:

(a) Identify areas of inter-rater disagreement.

(b) Help the group arrive at a consensus.

(c) Ensure that each rater conceives of the standard similarity.

However, the process is a time-consuming one. The supervisors generally resent what
they consider the staff interference. Hence, the method is not widely used.

 Confidential Report:

It is the traditional way of appraising employees mainly in the Government Departments.

Evaluation is made by the immediate boss or supervisor for giving effect to promotion
and transfer. Usually a structured format is devised to collect information on employee’s
strength weakness, intelligence, attitude, character, attendance, discipline, etc. report.

Modern Methods:

 Management by Objectives (MBO):

Most of the traditional methods of performance appraisal are subject to the antagonistic
judgments of the raters. It was to overcome this problem; Peter F. Drucker propounded a
new concept, namely, management by objectives (MBO) way back in 1954 in his
book.Stripped to its basic, Management by objectives requires the manager to set specific
measurable goals with each employee & then periodically discuss the latter’s progress
towards these goals. You could engage in a modest informal MBO program with
subordinates by jointly setting goals & periodically providing feedback.

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 Assessment Centres:

The introduction of the concept of assessment centres as a method of performance

method is traced back in 1930s in the Germany used to appraise its army officers. The
concept gradually spread to the US and the UK in 1940s and to the Britain in 1960s.

The concept, then, traversed from the army to business arena during 1960s. The concept
of assessment centre is, of course, of a recent origin in India. In India, Crompton Greaves,
Eicher, Hindustan Lever and Modi Xerox have adopted this technique of performance
evaluation.

In business field, assessment centres are mainly used for evaluating executive or
supervisory potential. By definition, an assessment centre is a central location where
managers come together to participate in well-designed simulated exercises. They are
assessed by senior managers supplemented by the psychologists and the HR specialists
for 2-3 days.

Assessee is asked to participate in in-basket exercises, work groups, simulations, and role
playing which are essential for successful performance of actual job. Having recorded the
assessee’s behaviour the raters meet to discuss their pooled information and observations
and, based on it, they give their assessment about the assesee. At the end of the process,
feedback in terms of strengths and weaknesses is also provided to the assesees.

The distinct advantages the assessment centres provide include more accurate evaluation,
minimum biasedness, right selection and promotion of executives, and so on. Nonetheless,
the technique of assessment centres is also plagued by certain limitations and problems.
The technique is relatively costly and time consuming, causes suffocation to the solid
performers, discourages to the poor performers (rejected), breeds unhealthy competition
among the assessees, and bears adverse effects on those not selected for assessment.

 360 – Degree Appraisal:

Yet another method used to appraise the employee’s performance is 360 – degree
appraisal. This method was first developed and formally used by General Electric

15
Company of USA in 1992. Then, it travelled to other countries including India. In India,
companies like Reliance Industries, Wipro Corporation, Infosys Technologies, Thermax,
Thomas Cook etc., have been using this method for appraising the performance of their
employees. This feedback based method is generally used for ascertaining training and
development requirements, rather than for pay increases.

Under 360 – degree appraisal, performance information such as employee’s skills,

abilities and behaviours, is collected “all around” an employee, i.e., from his/her
supervisors, subordinates, peers and even customers and clients.

In other worlds, in 360-degree feedback appraisal system, an employee is appraised by

his supervisor, subordinates, peers, and customers with whom he interacts in the course
of his job performance. All these appraisers provide information or feedback on an
employee by completing survey questionnaires designed for this purpose.

All information so gathered is then compiled through the computerized system to prepare
individualized reports. These reports are presented to me employees being rated. They
then meet me appraiser—be it one’s superior, subordinates or peers—and share the
information they feel as pertinent and useful for developing a self-improvement plan.

 Cost Accounting Method:

This method evaluates an employee’s performance from the monetary benefits the
employee yields to his/her organisation. This is ascertained by establishing a relationship
between the costs involved in retaining the employee, and the benefits an organisation
derives from Him/her.

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CHAPTER II:

INTRODUCTION TO THE COMPANIES

Wipro Limited (Western India Palm Refined Oils Limited or more recently, Western
India Products Limited) is an Indian Information Technology Services corporation
headquartered in Bangalore, India.

CEO: Abidali Neemuchwala

Owner: Azim Premji (73.25%)

Founder: M.H. Hasham Premji

Subsidiaries: Appirio, Yardley of London, Saic Inc., more

In 2013, Wipro demerged its non-IT businesses into a separate companies to bring in
more focus on independent businesses.

Wipro Consumer Care & Lighting

Wipro Consumer Care and Lighting (WCCLG), a business unit of Wipro Limited
operates in the FMCG segment dealing in consumable commodities. Established in 1945,
its first product was vegetable oil, later sold under the brand name "Sunflower Vanaspati".
It sells personal care products, such as Wipro Baby Soft and Wipro Safewash, toilet soaps
Santoor and Chandrika as well as Yardley.It sells lighting products, including Smartlite
CFL, LED, and emergency lights.

Through product sales and acquisitions, Wipro Consumer Care and Lighting has grown
steadily in the FMCG segment.

17
Wipro Infrastructure Engineering

Wipro Infrastructure Engineering is the hydraulics business division of Wipro Limited

and has been in the business of manufacturing hydraulic cylinders, truck cylinders, and
their components and solutions since 1976. This division delivers hydraulic cylinders to
international OEMs and represents the Kawasaki, Sun Hydraulics and Teijin Seiki range
of hydraulic products in India. It has entered into partnerships Kawasaki and aerospace
giant EADS. In 2010 Wipro Infrastructure Engineering was the second largest
independent manufacturer of hydraulic cylinders in the world.

Wipro GE Medical Systems

Wipro GE Medical Systems Limited is Wipro’s joint venture with GE Healthcare South
Asia. It is engaged in the research and development of advanced solutions to cater to
patient and customer needs in healthcare. This partnership, which began in 1990, today
includes gadgets and equipment for diagnostics, healthcare IT solutions and services to
help healthcare professionals combat cancer, heart disease, and other ailments. There is
complete adherence to Six Sigma quality standards in all products.

Sustainability at Wipro

Wipro has been ranked 1st in the 2010 Asian Sustainability Rating (ASRTM) of Indian
companies and is a member of the NASDAQ Global Sustainability Index as well as
the Dow Jones Sustainability Index.

In November 2012 Guide to Greener Electronics, Greenpeace ranked Wipro first with a
score of 7.1/10.

Listing and shareholding

Listing:

Wipro's equity shares are listed on Bombay Stock Exchange where it is a constituent of
the BSE SENSEX index, and the National Stock Exchange of India where it is a
constituent of the S&P CNX Nifty.The American Depositary Shares of the company are
listed at the NYSE since October 2000.

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Shareholding:

On 30 September 2013, 73.51% of the equity shares of the company were owned by the
promoters: Azim Premji, his family members, partnership firms in which he is a partner
and Trusts formed by him/his family. The remaining 26.49% shares are owned by others.

Shareholders (as on 20-January-2016) Shareholding

Promoter group led by Azim Premji 73.36%

Foreign Institutional Investors (FII) 10.68%

Indian Public 04.99%

Bodies Corporate 02.50%

Mutual Funds/UTI 01.90%

NRI 01.11%

Trusts/Others 0.77%

American Depositary Shares 02.30%

Total 100.0%

Employees

At the end of December 31, 2015, its employee strength was 170,664. Abid Ali
Neemuchwala was appointed as Wipro's CEO after T. K. stepped down in early 2016.

19
Awards and recognitions

 In March 2017, Wipro was recognized as one of the world’s most ethical
companies by US-based Ethisphere Institute for the sixth consecutive year.
 In May 2016, it was ranked 755th on the Forbes Global 2000 list.
 Wipro won Gold Award for ‘Integrated Security Assurance Service (iSAS)’ under
the ‘Vulnerability Assessment, Remediation and Management’ category of the
11th Annual 2015 Info Security PG’s Global Excellence Awards.
 Wipro won 7 awards, including Best Managed IT Services and Best System
Integrator in the CIO Choice Awards 2015, India
 In 2014, Wipro was ranked 52nd among India's most trusted brands according to
the Brand Trust Report, a study conducted by Trust Research Advisory.
 Wipro was ranked 2nd in the Newsweek 2012 Global 500 Green companies.
 Wipro received the 'NASSCOM Corporate Award for Excellence in Diversity and
Inclusion, 2012', in the category 'Most Effective Implementation of Practices &
Technology for Persons with Disabilities'.
 In 2012, it was awarded the highest rating of Stakeholder Value and Corporate
Rating 1 (SVG 1) by ICRA Limited.
 It received National award for excellence in Corporate Governance from
the Institute of Company Secretaries of India during the year 2004.

Wipro Ltd (NYSE:WIT) is a global information technology, consulting and outsourcing

company with 170,000+ workforce serving clients in 175+ cities across 6 continents. The
company posted revenues of $7.7 Billion for the financial year ended Mar 31, 2016.
Wipro helps customers do business better by leveraging our industry-wide experience,
deep technology expertise, comprehensive portfolio of services and vertically aligned
business model. Our 55+ dedicated emerging technologies ‘Centers of Excellence’ enable
us to harness the latest technology for delivering business capability to our clients.
Wipro is globally recognized for its innovative approach towards delivering business
value and its commitment to sustainability. Wipro champions optimized utilization of
natural resources, capital and talent. Today we are a trusted partner of choice for global
businesses looking to ‘differentiate at the front’ and ‘standardize at the core’ through

20
technology interventions.In today’s world, organizations will have to rapidly re-engineer
themselves and be more responsive to changing customer needs. Wipro is well positioned
to be a partner and co-innovator to businesses in their transformation journey, identify
new growth opportunities and facilitate their foray into new sectors and markets.

Recent Milestones
Wipro, one of the world’s most trusted brands, is a name with a long history. Here’s a
snapshot of our journey to date:
2016 – Wipro Acquires HealthPlan Services, a Leading Technology and Business
Process as a Service Provider in the US Health Insurance Market
2015 – Carved out Wipro Digital business as a separate unit. Announced its intention to
acquire Designit, global strategic design firm specializing in designing transformative
product-service experiences.
2014 – Wipro selected as Dow Jones Sustainability Index (DJSI), World member for the
5th consecutive year and recognized as the Global Sector Leader for the Software &
Service Industry.
2013 – Wipro Ltd. demerges its ‘Diversified Business’ into a separate company to be
named ‘Wipro Enterprises Ltd’. Wipro Ltd. to focus exclusively on IT Business.
· Entered the Eco-energy business in 2008
· Entered the BPO business in 2002
· The first company in the world to be assessed at PCMM Level 5 in 2001
· Listed on NYSE in 2000 (NYSE:WIT)
· Software business assessed at SEI-CMM Level 5 in 1998
· Entered IT services in the 1990s – we were among the pioneers in developing the
ODC (Offshore Development Center) concept
· Established a Joint venture with GE in 1989
· Pioneers in marketing indigenous Personal Computers in 1985
· Established software products and exports subsidiary, Wipro Systems Ltd. in

1983
· Ventured in to the fledgling IT industry in 1981

21
 · IPO for capital in February 1946
·Established in 1945 as Western India Vegetable Products Limited in Amalner,
Maharashtra.

Wipro Enterprises (P) Limited (Formerly Azim Premji Custodial Services Private
Limited), was incorporated under the Provisions of Companies Act, 1956, is
headquartered in Bangalore, India. The Company primarily carries on the businesses of
Consumer care products, Domestic & Commercial lighting and Infrastructure engineering
which were transferred pursuant to the Scheme of Arrangement of Wipro Limited
(“Wipro”) with effect from March 31, 2013, with the appointed date as on April 1, 2012.

SPIRIT OF WIPRO
The Spirit of the Wipro is the core of the Wipro. The Spirit is rooted in current reality,
but it also represents what Wipro aspires to be thus making it future active.Wipro is
achieving great heights with ths Spirit. The Spirit is an indivisible synthesis of all three
statements. It means manifesting Intensity to Win, acting with sensitivity and being
unyielding on integrity all the time.
Make customers successful
Team, Innovate, Excel
This is the desire to stretch, to achieve that which seems beyond our grasp. This is aiming
for maximum. This is the ardour to do our best, the hunger to be the best. This is the
devotion to challenging our limits, it is about realizing our potential, and about expanding
our potential.
· It is not about winning at all costs. It is not about winning every time. It is not
about winning at the expense of others.
· It is about working together to create synergy. It is realising that I win when my
team wins; my team wins when Wipro wins; and Wipro wins when its customers win,
when its stakeholders win.
· It is about innovating all the time. It is a continuous endeavour to do better than
last time.
· It is the Spirit of fortitude, the Spirit of never letting go, Ever.

22
 PRODUCTS
Wipro Products showcases the best in sophistication and styling across India and the
Middle East, with primary focus on blending green computing and your sense of style
and comfort. With high-end performance being the cornerstone of our product
development process, we bring you a wide array of Green technology products that help
you choose what’s best for your day-to-day operations as well as the world around you.
Infrastructure Technology Solutions
Wipro provides you comprehensive solutions packaged to meet your business
requirements. When it comes to reliability and superior performance, Wipro Enterprise
Products are second to none. So go ahead… and know more on what Wipro can offer you
for your strategic business initiatives.
Our enterprise products are customized based on a requirement analysis of your IT
environment and include the following:
 Networking Solutions
 Platforms & Storage
 Enterprise Information Security
 Emerging Technologies
 Enterprise Management
 Contact Centre Infrastructure

Mission: MIssion of Wipro is to help create a new kind of professional services firm that
works with both business and IT executives to innovate and deliver, end to end solutions
that create measurable value for our clients. Wipro's Think-Build-Operate vision requires
the tight integration of world class business and domain consulting, with Wipro's award
winning distributed IT and BPO delivery capability.
Vision: Wipro's Vision is focused on attaining leadership in the areas of business,
customer and people.

23
Introduction:
Infosys is a global leader in consulting, technology, and outsourcing and next-generation
services. People at Infosys enable clients, in more than 50 countries, to stay a step ahead of
emerging business trends and outperform the competition. The experience gives our clients a
distinct advantage. In addition to helping them manage their business, we power their
transformation to a smarter organization as well. This allows them to focus on their core
business priorities. Their expertise spans industries. From helping build lighter and stronger
passenger jets and creating more fuel efficient smart cars, to enabling banks to provide
financial inclusion to the most remote corners of the globe and empower technology
executives with solutions to maximize global agility – Infosys delivers powerful innovations.
And in doing so, Infosys change the way the world works and lives. At Infosys, it’s more
than just innovation that has won them the confidence of their stakeholders. People believe
their responsibilities also extend beyond the boundaries of business. The Infosys Foundation
provides assistance to some of the most depressed sectors of the communities in which they
work. The Infosys Science Foundation awards the Infosys Prize to some of the most
important research of their times in the sciences and the humanities. An entrepreneurial
adventure that began with seven engineers and US$250, Infosys is now a publicly traded
company driven by 169,000+ relentless innovators and revenues of more than $8.64 billion

24
History
Established in 1981, Infosys is a NYSE listed global consulting and IT services company
with more than 165,000 employees. From a capital of US$ 250, we have grown to become a
US$ 8.64 billion (LTM Q3 FY15 revenues) company with a market capitalization of
approximately US$ 36.1 billion. In the journey of over 30 years, they have catalysed some of
the major changes that have led to India's emergence as the global destination for software
services talent. Infosys pioneered the Global Delivery Model and became the first IT
Company from India to be listed on NASDAQ. Their employee stock options program
created some of India's first salaried millionaires.

AWARDS
Infosys won a leading Green energy award in 2014. We received the Gold Award for
sustainable buildings at the 2014 International Ashden Awards, which celebrate pioneering
businesses and organizations that are helping tackle climate change and transforming
people’s lives. The 2014 Asian Most Admired Knowledge Enterprises (MAKE) award has
been presented to Infosys. Infosys is the only Indian company to have won the award 12
times, the first one being in the year 2000. Once again, Infosys topped ASIAMONEY’s
Corporate Governance Poll in the ‘domestic country’ category. The poll was expanded to
cover Australia and Vietnam, and is the largest ever, with 322 select analysts and investors
voicing their opinions.
At the Institutional Investor 2014 All-Asia Rankings, they were honoured with several
awards in the IT services and software categories. The recognitions included Best CFO and
Best Investor Relations.
Infosys named a Leader in The Forrester Wave™: North American Applications
Outsourcing, Q1 2014. Infosys Finacle has been rated as a ‘Best-in-Class’ provider by CEB
Tower Group in its report titled ‘Core Banking Systems for the Large Bank Market’
Infosys publishes sustainability report as per latest GRI (G4) guidelines
Becomes first IT company globally to achieve the feat Infosys has become the first IT
company in the world to publish its sustainability report based on the latest Global
Reporting Initiative (GRI) G4 comprehensive framework. GRI is the most widely
respected sustainability reporting framework, worldwide.(Infosys sustainability Report
2013-14)

25
Achievements
Infosys BPO has chosen a 12,000 square feet site in the northern municipality of Aguadilla,
an aviation hub, to run its operations. The Commonwealth of Puerto Rico and the Puerto
Rico Industrial Development Company (PRIDCO) joined senior executives from Infosys
BPO during the opening ceremony of the new center. (March 09, 2015)

Infosys (NYSE: INFY), a global leader in consulting, technology, outsourcing and next-
generation services, today announced that it has been honored with the coveted Daimler
Supplier Award 2014 at the Mercedes-Benz Center in Stuttgart, Germany at a ceremony
attended by 450 representatives of the major suppliers and about 200 representatives of
Daimler management. (March 12, 2015)

CHAPTER III:
REVIEW OF LITERATURE

Dr.D.B.Bagul (2013) studied the attitudes of the employees towards performance appraisal in
SEMCO ELECTRIC PVT LTD, Chakan. He suggested 360 degree feedback model and reduce
the parameters in evaluation with higher officials and opined that appraisals must be simpler and
shorter.
Amie Farrell (2013) mentioned that the finding of the study revealed that overall the employees
were happy with having to complete performance appraisal by knowing the benefits they receive
like rewards and promotions at NALCO.
Amit Hole and Dr. Ashutosh Misal (2013) found out Employees who work related with sale of
insurance policies in private sector general insurance companies is performing good than
employees who work related with sale of insurance policies in public sector general insurance
companies.
Sanjita Tendon (2013) concluded that Performance Appraisal is more effective in private sector
than public sector by conducting z-test. She suggested to utilize numerical ratings. Training is
essential for appraiser biases to be reduced. Moreover, she tells an employee is selected, trained
and motivated and finally appraised for the performance
Christoph Reichard and Jan van Helden (2015) in the research paper discovered that the
differences between performance management practices in the public and private sector are less
stringent than expected with regard to more or less fundamental differences between both sectors.

26
They found difference based on 3 attributes namely ownership, funding and control. They divided
lifecycle of PMS into design phase and use phase.
Sameera Begum, K. Sarika & G. Sumalatha (2015) compared performance both public &
private sector as a whole based on the parameters like two-way communication between appraise
and appraiser, feedback system in which peers, Superiors, and Junior Employees give feedback to
every employee, adopting technologies, monetary and non-monetary benefits, job security, Leave
Management System as well as Process of Recruitment & Selection.
Kona Yasoda (2016) detailed the elements of an Ideal Performance Management System. The
important elements are job descriptions, performance expectations, appraisals, compensations,
disciplinary policies and commendations. She described globally trending models like Team
Performance Appraisal, 360 Degree Appraisal, Rank and Yank strategy, the new model and real-
time feedback.
Ramila Ram Sign & S. Vadivelu (2016) mentioned in their paper about the performance
appraisal in India. Retention of the employees in the organization is a difficult task for the
management. Motivation play a key role in this aspect. Performance appraisal is a tool to know
the employees performance in various aspects. It is useful for salary increment, promotion, staff
retention and to reinforce staff behaviour.
The above referred literature shows that Performance Appraisal is only tool in assessing the
employee’s tasks and responsibilities matching their capability. A comparison has been done in
public and private sector enterprises where private sector appraisals have been more effective.

CHAPTER IV: RESEARCH METHODOLOGY

RESEARCH

Research in common parlance refers to a search for knowledge Redman and Mory define
Research as a “systematized effort to gain new knowledge. Research is an academic
activity and as such the term should be used in a technical sense. According to Clifford
woody, Research comprises defining and redefining problem, formulating hypothesis or
suggested solutions; collecting, organizing and evaluating data; making deductions and
research conclusion; and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis.

27
METHODOLOGY

Every project work is based on certain methodology,which is a way to systematically

solve the problem or attain its objectives.It is very important guideline and lead to
completion of any project work theough observation,data collection and data analysis.

“Research Methodolgy comprises of defining problems,collecting,organizing &

evaluating data,making decisions & researching to conclusions”.

RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis of data in
a manner that aims to combine relevance to the Research purpose with economy in
procedure. In fact the Research design is the conceptual structure within which Research
is conducted: it constitutes the blueprint for the collection measurement and analysis of
data. It must be able to define clearly what he wants to measure and must find adequate
methods for measuring it along with a clearly cut definition of population he wants to
study. Since the aim is to obtain complete and accurate information in the said studies,
the procedure to be used must be carefully planned. The research design must make
enough provision for protection against bias and must maximize reliability with due
concern for the economical completion of the research study. A typical research design of
a company basically tries to resolve the following issues:
a) Determining Data Collection Design
b) Determining Data methods
c) Determining Data Sources
d) Determining Primary Data Collection Methods
e) Developing Questionnaires
f) Determining Sampling Plan

Descriptive research is adopted for this study. It includes surveys and fact finding
enquires of different kinds. The major purpose of descriptive research is description of
the state of affairs as it exists at present. The main characteristic of this method is that the
researcher has no control over the variables. He can only report what has happened or
what is happened.

28
SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from the sampling frame, it
refers to the technique or procedure the researcher would adopt in selecting some
sampling units from which inferences about the population is drawn.

SAMPLING PLAN

Sample Size= 30 employees

Sample Area= Wipro Ltd. , Infosys Ltd.

SAMPLING TECHNIQUE

When field studies are undertaken in practical life,consideration of time cost and some
other factors almost invariably lead to selection of respondents.The selected respondents
constitutes a sample and the selection process is called sampling technique.

I have selected simple random sampling in my project.

SIMPLE RANDOM SAMPLING

In this technique, each member of the population has an equal chance of being selected as
subject. The entire process of sampling is done in a single step with each subject selected
independently of the other members of the population.

POPULATION AND SAMPLE SIZE

A decision has to be taken concerning a sampling unit before selecting sample. The
population for this study includes the employees from Wipro Ltd. 50 employees were
undertaken for the study. In this study the population and sample are not equal.

DATA COLLECTION

The task of data collection begins after a research problem has been defined and research
design / plan chalked out. While deciding about the method of data collection to be used
for the study,.

29
METHOD OF DATA COLLECTION

There are two method of data collection

1.Primary Data collection

2.Secondary Data collection

1. Primary Data

Raw data or primary data is a term for data collected at source. This type of information
is obtained directly from first hand sources by means of surveys, observations and
experimentation and not subjected to any processing or manipulation and also called
primary data.

2. Secondary Data

It refers to the data collected by someone other than the user i.e. the data is already
available and analysed by someone else. Common sources of secondary data include
various published or unpublished data, books, magazines, newspaper, trade journals etc.

Collection of Primary Data →

Primary data is collected in the course of doing experimental or descriptive research by

doing experiments, performing surveys or by observation or direct communication with
respondents. Several methods for collecting primary data are given below –

1.Observation Method

(a) Structured (descriptive) and Unstructured (exploratory) observation

(b) Participant, Non-participant and Disguised observation

(c) Controlled (laboratory) and Uncontrolled (exploratory) observation

30
2.Interview Method

(A)Personal Interview
(B)Telephonic Interviews

3.Questionnaire

In this method a questionnaire is sent (mailed) to the concerned respondents who are
expected to read, understand and reply on their own and return the questionnaire. It
consists of a number of questions printed on typed in a definite order on a form on set of
forms. It is advisable to conduct a `Pilot study’ which is the rehearsal of the main survey
by experts for testing the questionnaire for weaknesses of the questions and techniques
used.

4.Schedules

This method of data collection is similar to questionnaire method with the difference that
schedules are being filled by the enumerations specially appointed for the purpose.
Enumerations explain the aims and objects of the investigation and may remove any
misunderstanding and help the respondents to record answer. Enumerations should be
well trained to perform their job, he/she
should be honest hard working and patient. This type of data is helpful in extensive
enquiries however it is very expensive.

Collection of Secondary Data

A researcher can obtain secondary data from various sources. Secondary data may either
be published data or unpublished data.

Published data are available in :

a. Publications of government b. technical and trade journals

31
c. reports of various businesses, banks etc. d. public records
e. statistical or historical documents.
Unpublished data may be found in letters, diaries, unpublished biographies or work.

CHAPTER V: DATA ANALYSIS AND INTERPRETAION

1.How many times Performance Appraisal does take place in your organization?

No.of No. of
Options Respondents Percentage Respondents Percentage
at wipro at Infosys

Once a year 2 6% 3 10%

Twice a year 3 10% 6 20%

Quarterly 25 84% 21 70%

Chart Title
100%

80%

60%
Wipro
40% Infosys

20%

0%
Once a year Twice a year Quarterly

32
Interpretation:-( At Wipro ) 84 percent of the employees says that Performance
Appraisal is conducted quarterly whereas 10 percent employees say that it conducted
twice a year and only 6 percent of the employees say that it is conducted once a year.

On the other hand, At Infosys, 84 percent of the employees says that Performance
Appraisal is conducted quarterly whereas 10 percent employees say that it conducted
twice a year and only 6 percent of the employees say that it is conducted once a year.

2.Who conducts Performance Appraisal?

No. of No. of
Options Percentage Percentage
Respondents Respondents

Peers 0 0% 0 0%

Everyone 0 0% 0 0%

Outsider 0 0% 0 0%

Manager 30 100% 30 100%

33
 120%
100%
80%
60% Wipro

40% Infosys

20%
0%
Manager Peers Everyone Outsider

Interpretation:- According to the study 100% of the employees say that the Performance
Appraisal is conducted by the manager itself.

3.How many meetings are scheduled in a quarter to discuss employee performance?

No. of No. of
Options Percentage Percentage
Respondents Respondents

Nil 0 0% 0 0%

Once 0 0% 0 0%

Twice 6 18% 4 14%

Thrice 2 6% 2 6%

34
 Four times 22 76% 24 80%

Chart Title

Four Times

Thrice

Twice Infosys
Wipro
Once

Nil

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Interpretation:-76% of the employees says that 4 times a meeting is scheduled,6% of

the employees say that three times a meeting is scheduled and 18% of the employees say
that meeting is scheduled twice in a quarter.

4.Which method of performance appraisal is implemented in the organization?

No. of No. of
Options Percentage Percentage
Respondents Respondents

Rating 27 92% 24 80%

35
 Ranking 1 2% 2 6%

Both 2 6% 4 14%

Other 0 0 0 0%

Chart Title
100%

80%

60%
Wipro
40% Infosys

20%

0%
Rating Ranking Both Other

Interpretation:- 92 percent of the employees are aware of the method used and say that
it is ranking method whereas only 2% of the employees say that it is ranking method and
6% of the employees say that both of the methods are used.

6.On what basis performance appraisal is made?

Options No. Of Respondents Percentage

Total output 2 4%

Behavioral Efficiency 0 0%

Both above 18 33%

36
 To identify and enhance the
KRA of Resource 30 63%

Chart Title

To identify and enhance the KRA of

Resource

Both above
Infosys
wipro
Behavioral Efficiency

Total output

0% 10% 20% 30% 40% 50% 60% 70% 80%

Interpretation:- Accordingly 63% employees says the basis of Performance appraisal is

to identify and enhance the KRA of resource,33% says that basis is both total output and
behavioural efficiency and only 4% say that it is total output only.

7.Are you informed the reason for conducting Performance Appraisal program?

Options No. of Respondents Percentage

37
 Always 38 96%

Sometimes 9 18%

Never 3 6%

Chart Title
100%

80%

60%
Wipro
40% Infosys

20%

0%
Always Sometimes Never

Interpretation:-96% of the employees say they were always informed of the reason for
appraisal program whereas 18% of the employees says that they are sometimes informed
and 6% says they were never informed.

8.Does Top Management support and encourage Performance Appraisal?

38
 Options No. of Respondents Percentage

Highly Supportive 50 100%

Less supportive 0 0%

Not supportive 0 0%

Wipro Infosys
120%
100%
100% 90%

80%
60%
40%
20% 10%
0% 0%
0%
Highly supportive Less supportive Not supportive

Interpretation:-100% of the employees say that the top management is highly

supportive.

9.Do you share your opinion and suggestions freely to the managers during the Appraisal
program?

39
 Options No. of Respondents Percentage

Mostly 36 72%

Rarely 14 28%

Never 0 0

0
Never
0

17%
Rarely
28%

83%
Mostly
72%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Infosys Wipro

Interpretation:-72% of the employees mostly share opinion and suggestions with the
managers and 28% of them less oftenly share their suggestions and opinions.

40
10.State your satisfaction through the Performance Appraisal program at the
Organization?

Options No. of Respondents Percentage

Highly Satisfied 27 54%

Satisfied 18 36%

Dissatisfied 0 0

Just satisfied 5 10%

Just satisfied
10%

Dissatisfied
0

Satisfied
36%

1
Highly Satisfied
54%

0% 20% 40% 60% 80% 100% 120%

Infosys Wipro

Interpretation:-54% of the employees are highly satisfied,36% are satisfied,no one is

satisfied and 10% are just satisfied.

41
11.Do you receive any increment in your salary after Performance Appraisal?

Options No. of Respondents Percentage

Yes 44 88%

No 6 12%

100% 88%
76%
80%

60%

40%
24%
20% 12%

0%
Yes No

Wipro Infosys

Interpretation:-88% of the employee say that they receive increment and 12% say no
about the increments after Performance Appraisal.

42
12.Is Performance Appraisal properly executed in your organization?

Options No. of Respondents Percentage

Yes 43 86%

No 7 14%

90% 86%
80% 70%
70%
60%
50%
40% 30%
30%
20% 14%
10%
0%
Yes No

wipro Infosys

Interpretation :-According to 86% of the employees the Appraisal is properly executed

and the remaining 14% say no.

43
13.Do you think performance of employees improve after process of Performance
Appraisal?

Options No. of Respondents Percentage

Yes 50 100%

No 0 0%

120%
100% 100%
100%

80%

60%

40%

20%
0% 0%
0%
Yes No

Wipro Infosys

Interpretation:-100% of the employees thinks that performance of employees improve

after process of Performance Appraisal

44
14.After Performance Appraisal improvement in your Performance?

Options No. of Respondents Percentage

10-20% 7 14%

20-30% 10 20%

30-above% 33 66%

70% 66%
60%
60%
50%
40%
27%
30%
20%
20% 14% 13%
10%
0%
10-20% 20-30% 30-above%

Wipro Infosys

Interpretation:-66% of the respondents answered the improvement after appraisal is

30% or above , 20% answered improvement between 20-30% and 14% answered 10-20%

45
15.Do you obtain Appraisal Feedback?

Options No. of Respondents Percentage

Always 50 100%

Sometimes 0 0%

Never 0 0%

120%
100% 100%
100%

80%

60%

40%

20%
0% 0% 0% 0%
0%
Always Sometimes Never

Wipro Infosys

Interpretation:- 100% of the employees obtain Appraisal feedback.

46
16.Does Appraisal Program need to be improved?.

Options No. of Respondents Percentage

Yes 7 14%

No 43 86%

90% 86%
77%
80%
70%
60%
50%
40%
30% 23%
20% 14%
10%
0%
Yes No

Wipro Infosys

47
Interpretation:- 14% of the employees say that it needs improvement and 86% of them
says no improvement needed.

48