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CHAPTER-I

INTRODUCTION

INTRODUCTION
Performance Appraisal is the important aspect in the organization to evaluate the
employee‟s performance. It helps in understanding the employees work culture,
involvement, and satisfaction. It helps the organization in deciding employees‟ promotion,
transfer, incentives, and pay increase.

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INTRODUCTION TO HUMAN RESOURCES MANAGEMENT:
Human Resource (or personnel) management, in the sense of getting things done
through people, is an essential part of every manager‟s responsibility, but many
organizations find it advantageous to establish a specialist division to provide an expert
service dedicated to ensuring that the human resource function is performed efficiently.
“People are our most valuable asset” is a cliché, which no member of any
senior management team would disagree with. Yet, the reality for many organizations are
that their people remain undervalued, under trained and underutilized.
The market place for talented, skilled people is competitive and expensive.
Taking on new staff can be disruptive to existing employees. Also, it takes time to develop
„cultural awareness‟, product / process / organization knowledge and experience for new
staff members.
Human resources management can be defined as managing the functions of
employing ,developing and compensating human resource resulting in the creation and
development of human relations with a view to contribute proportionately to the
organizational , individual and social group
In simple words, HRM means employing people, developing their capacities, utilizing,
maintaining and compensating their services in tune with the job and organizational
requirement. Overall, the theory of HRM argues that the goal of human resource
management is to help an organization to meet strategic goals by attracting, and
maintaining employees and also to manage them effectively.

FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are
essential for the effective functioning of the organization:

1. Recruitment

2. Selection

3. Induction

4. Performance Appraise

5. Training & Development

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Recruitment

The process of recruitment begins after manpower requirements are determined in terms of
quality through job analysis and quantity through forecasting and planning.

Selection

The selection is the process of ascertaining whether or not candidates possess the requisite
qualifications, training and experience required.

Induction

Induction is the technique by which a new employee is rehabilitated into the changed
surroundings and introduced to the practices, policies and purposes of the organization.

WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance and progress
of an employee or a group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in working organizations and
potential of employees.

A performance appraisal, employee appraisal, performance review, or (career)


development discussion is a method by which the job performance of
an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically
by the corresponding manager or supervisor.
A performance appraisal is a part of guiding and managing career development. It
is the process of obtaining, analyzing, and recording information about the relative worth

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of an employee to the organization. Performance appraisal is an analysis of an employee's
recent successes and failures, personal strengths and weaknesses, and suitability for
promotion or further training. It is also the judgment of an employee's performance in a
job based on considerations other than productivity alone.

Generally, the aims of a performance appraisal are to:

 Give employees feedback on performance


 Identify employee training needs
 Document criteria used to allocate organizational rewards
 Form a basis for personnel decisions: salary increases, promotions, disciplinary
actions, bonuses, etc.
 Provide the opportunity for organizational diagnosis and development
 Facilitate communication between employee and administration
 Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
 To improve performance through counseling, coaching and development.

According to Flippo, “Performance Appraisal is the systematic, periodic and an important


rating of an employee‟s excellence in matters pertaining to his present job and his potential
for a better job.”

A formal definition of performance appraisal is “It is the systematic evaluation of


the individual with respect to his or her performance on the job and his or her potential for
development”.
-Dale. S. Beach

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in


terms of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged


periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary


for making objective and correct decision an employee.

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PROCESS

ESTABLISHING PERFORMANCE STANDARDS


The first step in the process of performance appraisal is the setting up of the standards
which will be used to as the base to compare the actual performance of the employees

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards


5. Discussing the appraisal

6. Taking Corrective Action

METHODS OF PERFORMANCE APPRAISAL:

Methods of Performance Appraisal

Traditional methods Modern methods

1. Graphic rating scales 1. Behaviorally anchored rating scales


2. Ranking method 2. Assessment Centre.

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3. Paired comparison method 3. Human resource accounting
4. Forced distribution method 4. Management by objectives
5. Checklists 5. Psychological appraisal
6. Critical incident method 6. 3600 Appraisal method.
7. Essay or free from appraisal
8. Group appraisal
9. Field review method
10. Grading method & 11.Confidential.

Methods of Performance appraisal:

The foregoing list of major program pitfalls represents a formidable challenge, even
considering the available battery of appraisal techniques. But attempting to avoid these
pitfalls by doing away with appraisals themselves is like trying to solve the problems of
life by committing suicide. The more logical task is to identify those appraisal practices
that are (a) most likely to achieve a particular objective and (b) least vulnerable to the
obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated at the
outset of the article, I shall briefly review each, taking them more or less in an order of
increasing complexity. The best-known techniques will be treated most briefly

ESSAY APPRAISAL:

In its simplest form, this technique asks the rater to write a paragraph or more
covering an individual's strengths, weaknesses, potential, and so on. In most selection
situations, particularly those involving professional, sales, or managerial positions, essay
appraisals from former employers, teachers, or associates carry significant weight.

GRAPHIC RATING SCALE:

The Rating Scale is a form on which the manager simply checks off the employee‟s level
of performance.
This is the oldest and most widely method used for performance appraisal.

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This technique may not yield the depth of an essay appraisal, but it is more consistent and
reliable. Typically, a graphic scale assesses a person on the quality and quantity of his
work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of
other factors that vary with the job but usually include personal traits like reliability and
cooperation. It may also include specific performance items like oral and written
communication.

FIELD REVIEW:

The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit
and goes over each employee's rating with them to (a) identify areas of inter-rater
disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater
conceives the standards similarly. .

FORCED-CHOICE RATING:
Forced ranking is a method of performance appraisal to rank employee but in order
of forced distribution

Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a
third party.

MANAGEMENT BY OBJECTIVES:

Management by objectives is a systematic and organized approach that allows


management to focus on achievable goals and to attain the best possible result from
available resources

To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own
performance goals. Within the past five or six years, MBO has become something of a fad
and is so familiar to most managers that I will not dwell on it here.

RANKING METHODS:

For comparative purposes, particularly when it is necessary to compare people who work
for different supervisors, individual statements, ratings, or appraisal forms are not
particularly useful. Instead, it is necessary to recognize that comparisons involve an
overall subjective judgment to which a host of additional facts and impressions must
somehow be added. There is no single form or way to do this.

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The best approach appears to be a ranking technique involving pooled judgment. The two
most effective methods are alternation ranking and paired comparison ranking.

1. “Alternation ranking”:

Ranking of employees from best to worst on a trait or traits is another method for
evaluating employees. Since it is usually easier to distinguish between the worst and the
best employees than to rank them, an alternation ranking method is most popular. Here
subordinates to be rated are listed and the names of those not well enough to rank are
crossed. Then on a form as shown below, the employee who is highest on the
characteristic being measured and the one who is the lowest are indicated. Then chose the
next highest and the next lowest, alternating between highest and lowest until all the
employees to be rated have been ranked.

2. “Paired-comparison ranking”:

This technique is probably just as accurate as alternation ranking and might be more so.
But with large numbers of employees it becomes extremely time consuming and
cumbersome. Both ranking techniques, particularly when combined with multiple
rankings (i.e., when two or more people are asked to make independent rankings of the
same work group and their lists are averaged), are among the best available for
generating valid order-of-merit rankings for salary administration purposes.

ASSESSMENT CENTERS:

So far, we have been talking about assessing past performance. What about the
assessment of future performance or potential? In any placement decision and even more
so in promotion decisions, some prediction of future performance is necessary. How can
this kind of prediction be made most validly and most fairly?

360 DEGREE FEEDBACKS:


Many firms have expanded the idea of upward feedback into what the call 360-
degree feedback. The feedback is generally used for training and development, rather than
for pay increases.
Most 360 Degree Feedback system contains several common features. Appropriate
parties–peers, supervisors, subordinates and customers, for instance–complete survey,
questionnaires on an individual. 360 degree feedback is also known as the multi-rater
feedback, whereby ratings are not given just by the next manager up in the organizational
hierarchy, but also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once gathered in, the assessment from
the various quarters are compared with one another and the results communicated to the
manager concerned

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.

Another technique that is useful for coaching purposes is, of course, MBO. Like the
critical incident method, it focuses on actual behavior and actual results, which can be
discussed objectively and constructively, with little or no need for a supervisor to "play
God."

Advantages:
Instead of assuming traits, the MBO method concentrates on actual outcomes. If
the employee meets or exceeds the set objectives, then he or she has demonstrated an
acceptable level of job performance. Employees are judged according to real outcomes,
and not on their potential for success, or on someone's subjective opinion of their abilities.
The guiding principle of the MBO approach is that direct results can be observed
easily. The MBO method recognizes the fact that it is difficult to neatly dissect all the
complex and varied elements that go to make up employee performance.
MBO advocates claim that the performance of employees cannot be broken up into
so many constituent parts, but to put all the parts together and the performance may be
directly observed and measured.

Disadvantages:
This approach can lead to unrealistic expectations about what can and cannot be
reasonably accomplished. Supervisors and subordinates must have very good "reality
checking" skills to use MBO appraisal methods. They will need these skills during the
initial stage of objective setting, and for the purposes of self-auditing and self-monitoring.
Variable objectives may cause employee confusion. It is also possible that fluid objectives
may be distorted to disguise or justify failures in performance.
Benefits of Performance Appraisals:

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Performance appraisal provides a lot of information not only to solve the managerial
problems, but also to help in taking the decisions.

I)for the appraise:

1. Increased motivation and job satisfaction.

2. Clear understanding of what is expected and what needs to be done to meet


expectations.

3. Opportunity to discuss aspirations and any guidance, support or training needed to fulfill
these aspirations.

4. Improved working relationships with the superior.

5. Opportunity to overcome the weaknesses by way of counseling and guidance from the
superior.

6. Increased sense of personal value as he too is involved in the appraisal process

II) For the appraiser:

1. Opportunity to develop an overview of individual jobs.

2. Opportunity to identify strengths and weaknesses of appraises.

3. Increased job satisfaction.

4. Opportunity to link team and individual objectives with department & organizational
objectives.

5. Opportunity to clarify expectations that the manager has from teams and individuals.

6. Opportunity to re-prioritize targets.

7. Means of forming a more productive relationship with staff based on mutual trust and
understanding.

8. Due to all above Increased sense of personal value

III) For the company:

1. Improved performance throughout the organization due to:

• Increased sense of cohesiveness and loyalty.

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• Managers are better equipped to use their leadership skills and to develop their staff.

• Effective communication of organization‟s objectives and values.

2. Improved overview of tasks performed by each member of a group.

3. Identification of ideas for improvement.

4. Creation and maintenance of a culture of continuous improvement.

5. Communication to people that they are valued.


(CHECK)Measures an employee‟s performance.

 Helps in clarifying, defining, redefining priorities and objectives.


 Motivates the employee through achievement and feedback.
 Facilitates assessment and agreement of training needs.
 Helps in identification of personal strengths and weaknesses.
 Plays an important role in Personal career and succession planning.
 Clarifies team roles and facilitates team building.
 Plays major role in organizational training needs assessment and analysis.
 Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.
 Plays an important tool for communicating the organization‟s philosophies, values,
aims, strategies, priorities, etc among its employees.
 Helps in counseling and feedback.

NEED FOR PERFORMANCE APPRAISAL:


Performance appraisal is need in order to
1. Provide information about the performance ranks basing on which decision
regarding salary fixation, confirmation, promotion, transfer and demotions are
taken.
2. Provide feedback information about the level of achievement and behavior of
subordinates. This information helps to review the performance of the sub-
ordinates, rectifying performance deficiencies and to set new standards of work if
necessary.
3. Provide information which helps to counsel the subordinate.
4. Provide information to diagnose deficiency in employee regarding skill,
knowledge, determine training and development needs and to prescribe the means
for employee growth provides information for correct placement.

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5. To prevent grievances and in disciplinary activities.

OBJECTIVES OF APPRAISAL:
Performance appraisal systems can serve the following purpose.

 To enable each employee to understand his role better and become effective on the
job.

 To understand his own strength and weaknesses with respect to his role in the
organization.

 To identify the developmental needs of each employee.

 To improve relationship between the subordinate through the realization that each
is dependent on the other for good performance and success.

 To provide an opportunity to the employee for introspection, self evaluation and


goal setting so that he remains on the path of development.

 To enable every employee to internalize the norms and the values of the
organization so that an organizational identity and commitment is developed
throughout the organization.

 To prepare employees for higher jobs by continuously reinforcing development of


behavior and qualities for these higher level positions.

 To be an instrument for creating a positive and healthy climate in the organization


that makes people to give their best and enjoy during so.

 To help in a variety of personnel decisions by generating relevant data on each


employee periodically.

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CHAPTER-II
COMPANY PROFILE

Overview of HCL (Hindustan Computers Limited):


Founder for HCL: Shiva Nadar, Founder - HCL and Chairman& Chief Strategy
Officer, HCL Technologies said - “Vineet‟s appointment to the Board reflects HCL‟s
commitment to nurturing talent, positioning it in key areas of leadership and building
lasting institutions of excellence. Vineet joined HCL - his first and only job, as Senior
Management Trainee in 1985. He created HCL Comnet, and positioned HCL as a pioneer
and industry leader globally in the Remote Infrastructure Management space. He has led
HCL‟s transformation strategy, now a Harvard Business School case study. Vineet will
now continue to bring his leadership skills to bear on HCL‟s future but in a larger context -
in developing its vision, governance and strategy beyond the confines of HCL‟s business.

“Vineet Nayar, now CEO and Whole time Director, HCL Technologies, said, “I am
honoured by the Board‟s decision, and look forward to being part of the future growth of
HCL in all its larger dimensions as a global and responsible corporate citizen. In my 23
year association with HCL, this is another opportunity for me to share and shape the larger
transformation journey with Shiva Nadar, the board, and my team members across the
HCL Enterprise.”

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About the Hindustan Computers Limited (HCL):
HCL is a leading global Technology and IT Enterprise with annual revenues of US$ 5.5
billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies
(www.hcltech.com) and HCL Infosystems (www.Hclinfosystems.in)

The 3 decade old enterprise, founded in 1976, is one of India's original IT garage start ups.
Its range of offerings span R&D and Technology Services, Enterprise and Applications
Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems
Integration and Distribution of Technology and Telecom products in India. The HCL team
comprises 77,000 professionals of diverse nationalities, operating across 29 countries
including 500 points of presence in India. HCL has global partnerships with several
leading Fortune 1000 firms, including several IT and Technology majors.

Leadership: At a time when India had a total of 250 computers, Shiva Nadar led a young
team which passionately believed in and bet on the growth of the IT industry. That vision
in 1976, born out of a Delhi "barsaati", akin to a garage start-up, has resulted 3 decades
later in a $5.5 billion global transformational technology enterprise today. From designing
India's first PC at the same time as global IT peers in 1978; to working on the Boeing
Dreamliner's Flight Management Systems now, HCL has stayed a true Pioneer of Modern
Computing. HCL's range of offerings spans Product Engineering, Custom & Package
Applications, BPO, IT Infrastructure Services, IT Hardware, Systems Integration, and
distribution of ICT products - across a wide range of focused industry verticals. The HCL
team comprises over 77,000 professionals of diverse nationalities, who operate from 29
countries including over 500 points of presence in India. HCL has global partnerships with
several leading Fortune 1000 firms, including leading IT and Technology firms.

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Company Profile & facts
HCL is a leading global Technology and IT Enterprise with annual revenues of US$ 4.9
billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies
and HCL Infosystems.
The 3 decade old enterprise, founded in 1976, is one of India's original IT garage start ups.
Its range of offerings span R&D and Technology Services, Enterprise and Applications
Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems
Integration and Distribution of Technology and Telecom products in India. The HCL team

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comprises 55,000 professionals of diverse nationalities, operating across 18 countries
including 360 points of presence in India.

HCL has global partnerships with several leading Fortune 1000, including several IT and
Technology majors.

Along with the swiftly growing software technology industry, HCL, which was hitherto
known as the pioneer in modern computing made the advent into software development.

HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the
software services arena.
Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest
BPO operation, and manages the network for Asia's largest stock exchange network apart
from designing zero visibility landing systems to land the world's most popular airplane.
And this it does across 18 countries and across 360 service locations in India.

Vision and Mission:


Vision
To maximize shareholder value through sustainable mining and value added
products.
Mission

 More than three times increase in ore production in a decade.


 Continuous improvement in productivity and energy efficiency to bring it at par
with the best internationally.
 Acquiring and developing new resources of copper domestically and
internationally.
 To rigidly follow framework for sustainable development of mine and ensure
corporate social responsibility.
 To be one of the most profitable Nav-Ratna Companies.

Products & Services


Product Engineering & Technology Development
The Engineering and R & D services department runs the largest outsourced engineering
center outside the US which is a testimony to the 30 year product engineering experience.
The company offers a comprehensive range of R&D and Engineering services to
component vendors, OEMs, ODMs and ISVs across multiple industry segments and
domains.

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Infrastructure
HCL Infrastructure Management Division is focused on addressing the growing demand
for the cost-effective management of technology infrastructure across geographically
dispersed locations. IT Infrastructure Management is in the HCL DNA, drawing resources
from the 30 year pioneering heritage in the area of computing, in line with global giants

BPO
Business Processing Outsourcing is heading towards a maturity level where a new form of
BPO, called Transformational BPO, is evolving that constitutes Full Process Outsourcing
and Multiple Process Outsourcing. The evolving trend is more focused towards
compliance, time-to-market, focus on core process, and quality improvement rather than
cost savings.

Applications
Leveraging strong partnerships with platform / product companies, the team of
applications professionals deliver unprecedented value to few of the largest players in the
field of Financial Services, Retail and Healthcare.

IT Hardware
HCL Infosystems portfolio of products covers the entire spectrum of the information
technology needs of its customers. By virtue of the immense diversity of markets and
customers that it addresses, HCL Infosystems products offerings include everything from
high end enterprise level servers for mission critical applications to multimedia home
computers.

Telecom and Imaging Products and Retail:HCL Infinet covers a range of telecom and
imaging products including enterprise networking. HCL tied up with Nokia in 1995 with
the sale and services of Nokia mobile phones in India.

Networking and Network Integration


Network Management involves Network Monitoring of Bandwidth Utilization, Network
Errors / Collisions, Network Troubleshooting, Day-to-day Network Operations, Network
performance monitoring, Tuning Network Operating System and advise action plan.

Major Achievements of HCL


 Developed the first indigenous micro-computer in 1978.
 Indigenously developed an RDBMS, a Networking OS and a Client Server
architecture in 1983.

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 In 1986, HCL becomes the largest IT Company in India.
 HCL introduced fine grained multi-processor Unix-3 years ahead of "Sun" and
"HP".

Awards & Accolades


HCL Infosystems has been acknowledged and rewarded for its support, innovative
products and solutions and dedication countless times. Listed below is an up to date list of
rewards and recognitions that HCL Infosystems has won till date

CHAPTER-III
RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY
NEED FOR THE STUDY
Performance appraisal system in any organization is an important component for effective
and efficient performance of the employee. Therefore it is necessary for organization to
develop performance analysis and review which effects performance of individual under
their requirement the present study has been under taken to analyze the performance
Appraisal System at HCL

SCOPE OF THE STUDY

The scope of performance appraisal provide employees with a better understanding


of their role and responsibilities; increase confidence through recognizing strengths while
identifying training needs to improve weaknesses ; increase commitment to organizational
goals; develop employees in to future supervisors ;assist in personnel decisions such as
promotions or allocating rewards; and allow time for self-reflection, and personal goal
setting.
2.3 OBJECTIVES OF THE STUDY
1.To study and evaluate performance appraisal policies and procedures
Of the company.
2. To find out the opinion of the employees with regarding to the current appraisal system.
3. To suggest the steps for improvement of performance appraisal system.

UNIT OF THE STUDY


The study was conducted at HCL
RESEARCH INSTRUMENT
A Questionnaire will set with a formal list of questions to be answered in the
survey. A structured non-disguised questionnaire will be used as the research instrument.

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SOURCE OF DATA COLLECTION
Data Collection:
The gathering of data may range from a simple observation at one location. The method
selected will largely determine how the data are collected, questionnaires, standardized
tests, observational forms, laboratory notes and instrument calibration logs are among the
devices used to record raw data. But what are data, one writer defines data as the facts
presented to the researcher from the study‟s environment
Primary Data:
Primary data were collected through Questionnaire and direct personal interview.
The Questionnaire was framed as such a manner to obtain correct information, graded
suitably for the study. All Questionnaires were distributed to the respondents and collected
immediately from the respondents.
Secondary Data:
The secondary data has been collected through oral communication. The company profile
and other details were collected from the company website and annual reports, broachers,
charts and other documents.

SAMPLING TECHNIQUE
Sampling is simply the process of learning about the population on the basis of a
sample. Simple random techniques instead of every unit of the universe only a part of the
universe are studied and conclusions are drawn on the basis for the entire universe.
SAMPLE SIZE
The sample has been taken only for the senior employees. Sample of 120 senior
employees

POPULATION
Total population is 1000 above in the company.

STATISTICAL TOOLS
Percentage Method:
By percentage method we mean the total number of respondents divided by the
total sample size ad then multiplied by 100% percentage refers to a special kind of ratio.
Percentage refers to a special kind or ratio. Percentage is used in making comparison

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between two (or) more series of data. Since percentage reduce everything to a common
base and there by allow meaningful comparison to be made.
Percentage method is used in making comparison between two or more series of
data. This method is used to derive relationship.

Number of respondents
Percentage Method = ----------------------------- X 100
Total respondents

LIMITATION OF THE STUDY

 The response given by the selected employees may be subjected to bias answer.
 The employee‟s availability during the working hours was a difficult task.
 The organization has not given the performance results of its employees.
 Scope of the questionnaire was limited.

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CHAPTER-III
DATA ANALYSIS
AND
INTERPRETATION

Performance appraisal help in the assessment of individual potential.

Table 3.1:Assessment of individual potential

PERCENTAGE
PARAMETERS NO.OF RESPONDENTS
(%)

Strongly agree 38 32
Agree 64 53
Neutral 18 15
Strongly disagree - -
Disagree - -
TOTAL 120 100

Graph.3.1: Assessment of individual potential

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PERCENTAGE OF RESPONDENTS
60
53
50

40
32
30

20 15

10
0 0
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.1 it is observed that out of 120 respondents, 64
respondents (i.e.53%) are agree that the performance appraisal help in the assessment of
individual potential, 38 respondents (i.e.32%) are strongly agree,18 respondents(i.e.15%)
are neutral that is performance appraisal help in the assessment of individual performance.

Performance appraisal is the Development of the individual potential, career


growth& development.
Table3.2: Development of the individual potential, career growth & development.
PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)
Strongly agree 31 25
Agree 69 58
Neutral 15 12
Strongly disagree 2 2
Disagree 3 3
TOTAL 120 100

Graph 3.2: Development of the individual potential, career growth &


development.

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PERCENTAGE OF PARAMETERS
70
58
60

50

40

30 25

20
12
10 3
2
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.2 it is observed that out of 120 respondents, 69 respondents
(i.e.58%) are agree that the appraisal system is the development of an individual potential,
career & growth, 31 respondents (i.e.25%) are strongly agree,15 respondents (i.e.12%) are
neutral, 2 respondents (i.e.2%) are strongly disagree, 3 respondents (i.e.3%) are disagree
that the appraisal system is the development of an individual potential, career & growth.

Performance appraisal system followed in the organization is rational & fair.


Table3.3: Performance appraisal system followed in the organization is
rational & fair.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)

Strongly agree 23 19

Agree 67 56

Neutral 17 14

Strongly disagree 5 4

Disagree 8 7
TOTAL 120 100

Graph 3.3: Performance appraisal system followed in the organization is


. rational & fair.

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PERCENTAGE OF RESPONDENTS
60 56

50

40

30
19
20 14

10 7
4

0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.3 it is observed that out of 120 respondents, 67
respondents (i.e.56%) are agree that the performance appraisal system followed in the
organization is rational & fair, 23 respondents (i.e.19%) are strongly agree, 17 respondents
(i.e.14%) are neutral, 5 respondents (i.e.4%) are strongly disagree, 8 respondents (i.e.7%)
are disagree that the performance appraisal system followed in the organization is not
rational & fair.
Period of assessment of performance.
Table 3.4:Period of assessment of performance.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE


(%)
Once in 3 months 28 23
Once in 6 months 49 41
Once in a year 43 36
TOTAL 120 100

Graph 3.4: Period of assessment of performance.

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PERCENTAGE OF RESPONDENTS
45 41
40 36
35
30
25 23

20
15
10
5
0
Once in 3 months Once in 6 months Once in a year
PARAMETERS

INTERPRETATION:
From the above table 3.4 it is observed that out of 120 respondents, 49 respondents
(i.e.41%) are opinioned that the period of assessment of performance is once in 3 months,
43 respondents (i.e.36%) are opinioned that the period of assessment of performance is
once in a year, 28 respondents (i.e.23%) are opinioned that the period of assessment of
performance is once in 6 month.
Basic of performance appraisal system.
Table 3.5: Basic of performance appraisal system.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Skills 62 52
Responsibility 23 19
Job knowledge 33 27
Seniority 2 2
TOTAL 120 100

Graph 3.5: Basic of performance appraisal system.

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PERCENTAGE OF RESPONDENTS
60
52
50

40

30 27

19
20

10
2
0
Skills Responsibility Job knowledge seniority
PARAMETERS

INTERPRETATION:
From the above table 3.5 it is observed that out of 120 respondents, 62 respondents
(i.e.52%) are opinioned that skills on the basic of performance appraisal, 33 respondents
(i.e.27%) are opinioned that job knowledge, 23 respondents (i.e.19%) are opinioned that
responsibility, 2 respondents (i.e.2%) are opinioned that seniority on the basic of
performance appraisal.

Mode of performance appraisal.


Table 3.6: Mode of performance appraisal.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Oral 14 12
Written 8 7
Observation 47 39
Online 51 42
TOTAL 120 100

Graph 3.6: Mode of performance appraisal.

27
PERCENTAGE OF RESPONDENTS
45 42
39
40
35
30
25
20
15 12
10 7
5
0
Oral Written Observation Online
PARAMETERS

INTERPRETATION:
From the above table 3.6 it is observed that out of 120 respondents, 51
respondents (i.e.42%) are opinioned that the mode of performance appraisal is online, 47
respondents (i.e.39%) are opinioned that the mode of performance appraisal is
observation, 14 respondents (i.e.12%) are opinioned that performance appraisal is oral, 8
respondents(i.e.7%) are opinioned that performance appraisal is written.

Awareness of 360-degree performance appraisal.


Table 3.7: Awareness of 360-degree performance appraisal.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Yes 76 63
No 44 37
TOTAL 120 100

Graph 3.7: Awareness of 360-degree performance appraisal.

28
PERCENTAGE OF RESPONDENTS
70 63
60

50

40 37

30

20

10

0
Yes No
PARAMETERS

INTERPRETATION:
. From the above table 3.7 it is observed that out of 120 respondents, 76
respondents (i.e.63%) are agree that the awareness of 360 performance appraisal, 44
respondents (i.e.37%) are disagree that the awareness of 360 performance appraisal.

Who will be the appraiser?


Table 3.8: who will be the appraiser.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Superior 46 38
Subordinate 14 12
HOD 44 37
Peer groups 16 13
TOTAL 120 100

Graph 3.8: who will be the appraiser.

29
PERCENTAGE OF RESPONDENTS
40 38 37
35
30
25
20
15 12 13

10
5
0
Superior Subordinate HOD Peer groups
PARAMETERS

INTERPRETATION:
. From the above table 3.8 it is observed that out of 120 respondents, 46
respondents (i.e.38%) are opinioned that the superior will be the appraiser, 44 respondents
(i.e. 37%) are opinioned that the HOD, 16 respondents (i.e.13%) are opinioned that the
peer groups and 14 respondents (i.e.12%) are opinioned that the subordinate will be the
appraiser.

Task and job expectations are communicated.

Table 3.9: Task and job expectations are communicated


PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)
Strongly agree 18 15
Agree 74 62
Neutral 20 17
Strongly disagree 6 5
Disagree 2 1
TOTAL 120 100

Graph 3.9: Task and job expectations are communicated

30
PERCENTAGE OF RESPONDENTS
70
62
60

50

40

30

20 15 17

10 5
1
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.9 it is observed that out of 120 respondents, 74
respondents(i.e.62%) are agree that the task on job expectation are communicated, 20
respondents (i.e.17%) are neutral, 18 respondents (i.e.15%)are strongly agree, 6
respondents (i.e.5%) are strongly disagree and 2 respondents (i.e.1%) are disagree that the
task on job expectations are communicated.

The assessment is better than phased evaluation.


Table 3.10: The assessment is better than phased evaluation.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Strongly agree 25 21
Agree 67 56
Neutral 17 14
Strongly disagree 8 7
Disagree 3 2
TOTAL 120 100

Graph 3.10: The assessment is better than phased evaluation.

31
PERCENTAGE OF RESPONDENTS
60 56

50

40

30
21
20 14

10 7
2
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.10 it is observed that out of 120 respondents,67
respondents (i.e.56%) are agree that the assessment is better than phased evaluation, 25
respondents (i.e. 21%) are strongly agree, 17 respondents(i.e.14%) are neutral, 8
respondents (i.e.7%) are strongly disagree and 3 respondents (i.e.2%) are disagree that the
assessment is better than phased evaluation.

The performance rating by superiors is objective.


Table 3.11: The performance rating by superiors is objective.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Strongly agree 26 22
Agree 71 59
Neutral 15 12
Strongly disagree - -
Disagree 8 7
TOTAL 120 100

Graph 3.11: The performance rating by superiors is objective.

32
PERCENTAGE OF RESPONDENTS
70
59
60
50

40

30 22
20
12
10 7
0
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.11 it is observed that out of 120 respondents, 71
respondents (i.e.59%) are agree that the performance rating by superior is objective, 26
respondents(i.e.22%) are strongly agree, 15 respondents (i.e. 12%) are neutral and 8
respondents (i.e.7%) are disagree that the performance rating by superior is objective.

Training program scheduled after performance gap is observed.


Table 3.12: Training program scheduled after performance gap is
observed.
PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)
Yes 86 72
No 28 28
TOTAL 120 100

Graph 3.12: The training program scheduled after performance gap is observed.
PERCENTAGE OF RESPONDENTS

80 72
70
60
50
40
28
30
20
10
0
Yes No
PARAMETERS

INTERPRETATION:

33
From the above table 3.12 it is observed that out of 120 respondents, 86
respondents (i.e.72%) are agree that the training program scheduled after performance gap
is observed and 28 respondents (i.e.28%) are disagree that the training program scheduled
after performance gap is observed.

The performance appraisal followed in the organization help to assess the training
and develop needs of the employee.
Table 3.13: The organization help to assess the training and develop needs.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Strongly agree 37 31
Agree 60 50
Neutral 9 7
Strongly disagree 12 10
Disagree 2 2
TOTAL 120 100

Graph 3.13: The organization. help to assess the training and develop needs.
PERCENTAGE OF RESPONDENTS

60
50
50

40
31
30

20
10
10 7
2
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.13 it is observed that out of 120 respondents, 60
respondents (i.e.50%) are agree that the organization help to assess the training &

34
development needs of the employee, 37 respondents (31%) are strongly agree, 12
respondents (i.e.10%) are strongly disagree, 9 respondents (i.e.7%) respondents are neutral
and 2 respondents (i.e.2%) are disagree that the organization help to assess the training &
develop needs of the employees.
The performance appraisal in the organization helps to recognize the competence
and potential of an individual.
Table 3.14: The organization helps to recognize the competence and potential
of an individual.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Strongly agree 29 24
Agree 82 68
Neutral 7 6
Strongly disagree - -
Disagree 2 2
TOTAL 120 100

Graph 3.14: The organization helps to recognize the competence and potential
of an individual
PERCENTAGE OF RESPONDENTS

80
68
70
60
50
40
30 24
20
10 6
0 2
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.14 it is observed that out of 120 respondents, 82
respondents (i.e.68%) are agree that the organization help to recognize the competence &
potential of an individual, 29 respondents (i.e.24%) are strongly agree, 7 respondents
(i.e.6%) are neutral and 2 respondents (i.e.2%) are disagree that the organization help to
recognize the competence & potential of an individual.

35
I am happy with the assessment of performance followed in the organization.
Table 3.15: Happy with the assessment of performance in the organization.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Strongly agree 26 22
Agree 57 47
Neutral 15 12
Strongly disagree 16 13
Disagree 6 5
TOTAL 120 100

Graph 3.15: Happy with the assessment of performance in the organization.


PERCENTAGE OF RESPONDENTS

50 47
45
40
35
30
25 22
20
12 13
15
10 5
5
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.15 it is observed that out of 120 respondents, 57
respondents (i.e.47%) are agree that the happy with the assessment of performance in
organization, 26 respondents (i.e.22%) are strongly agree, 15 respondents (i.e.12%) are
neutral, 16 respondents (i.e.13%) are strongly disagree and 6 respondents (i.e.5%0 are
disagree that the happy with the assessment of performance in organization.

Employee has been appraised fairly according to the company policies.


Table 3.16: Fairly appraised according to the company policies.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Strongly agree 27 23

36
Agree 58 48
Neutral 21 17
Strongly disagree 7 6
Disagree 7 6
TOTAL 120 100

Graph 3.16: Employee has been appraised fairly according to the


companies policies.
PERCENTAGE OF RESPONDENTS

60
48
50

40

30
23
20 17

10 6 6

0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.16 it is observed that out of 120 respondents, 58 respondents
(i.e.48%) are agree that the employees are fairly appraised according to the company
policies, 27 respondents (i.e.23%) are strongly agree, 21 respondents (i.e.17%) are neutral,
7 respondents (i.e.^%) are strongly disagree and 7 respondents (i.e.6%) are disagree that
the employee‟s are fairly appraised according to the company policies.
Advises and suggestion are given to the employee during the appraisal process.
Table 3.17: Advises and suggestion are given to the employee during the
appraisal process.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Strongly agree 29 24
Agree 60 50
Neutral 16 13

37
Strongly disagree 8 7
Disagree 7 6
TOTAL 120 100

Graph 3.17: Advises and suggestions are given to the employee during.
the appraisal process.
PERCENTAGE OF RESPONDENTS

60
50
50

40

30 24
20
13
10 7 6

0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS
:
INTERPRETATION:
From the above table 3.17 it is observed that out of 120 respondents, 60
respondents (i.e.50%) are agree that the advises & suggestions are given to the employee‟s
during the appraisal process, 29 respondents (i.e.24%) are strongly disagree, 16
respondents (i.e.13%) are neutral, 8respondents (i.e.7%) are strongly disagree and 7
respondents (i.e.6%) are disagree that the advises & suggestions are given to the
employee‟s during the appraisal process.

Employees accept the appraisal feedback.


Table 3.18: Employees accept the appraisal feedback.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Positive way 75 63
Negative way 18 15
Uninteresting 15 12
Neutral 12 10

38
TOTAL 120 100

Graph 3.18: Employees accept the appraisal feedback.


PERCENTAGE OF RESPONDENTS

70 63
60

50

40

30

20 15
12 10
10

0
Positive way Negative way Uninteresting Neutral
PARAMETERS

INTERPRETATION:
From the above table 3.18 it is observed that out of 120 respondents, 75 respondents
(i.e.63%) are said that employees accept the appraisal feed back in positive way, 18
respondents (i.e.15%) are said that negative way, 15 respondents (i.e.12%) are said that
uninteresting and 12 respondents (i.e.10%) are said that the employee‟s accept feedback in
neutral

The Performance appraisal followed in the organization motivates


Table 3.19: Motivation of performance appraisal in an organization.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Strongly agree 21 17
Agree 67 56
Neutral 24 20
Strongly disagree 6 5

39
Disagree 2 2
TOTAL 120 100

Graph 3.19: Motivation of performance appraisal in an organization.


PERCENTAGE OF RESPONDENTS

60 56

50

40

30
20
20 17

10 5
2
0
Strongly agree Agree Neutral Strongly Disagree
disagree
PARAMETERS

INTERPRETATION:
From the above table 3.19 it is observed that out of 120 respondents, 67
respondents (i.e.56%) are agree that the motivation of performance appraisal in an
organization, 24 respondents (i.e.20%) are neutral, 21 respondents (i.e.17%) are strongly
agree, 6 respondents (i.e.5%) are strongly disagree and 2 respondents (i.e2%) are disagree
that the motivation of performance in an organization.

Errors/problems have impact on performance rating in the organization.


Table 3.20: Errors/ problems are rating in an organization.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)

Influence 21 17

40
Biased 19 16
Subjectivity 42 35
Status effect 15 12
Attitude/personal 23 20
TOTAL 120 100

Graph 3.20: Errors/ problems are rating in an organization.


PERCENTAGE OF RECPONDENTS

40 35
35
30
25 20
20 17 16
15 12
10
5
0
ce

l
ity

ct

na
se

fe
en

iv

so
ia

ef
ct
flu

er
je

s
In

/p
ub

tu

de
ta
S

tu
tti
A

PARAMETERS

INTERPRETATION:
From the above table 3.20 it is observed that out of 120 respondents, 42 respondents
(i.e.35%) are opinioned that errors/problems are rating in an organization is subjectivity 21
respondents (i.e.17%) are opinioned that influence, 23 respondents (i.e.20%) are opinioned
that the attitude/ personal, 19 respondents (i.e.16%) are opinioned that biased & 15
respondents (i.e.12%) are opinioned that errors/problems are rating in an organization is
status effect.

Feedback on performance is communicated after assessment of the performance.


Table 3.21: Feed back is communicated after assessment of the performance.

PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)


Yes 85 71
No 35 29
TOTAL 120 100

41
Graph 3.21: Feed back is communicated after assessment of the performance.
PERCENTAGE OF RESPONDENTS

80
71
70
60
50
40
29
30
20
10
0
Yes No
PARAMETERS

INTERPRETATION:
From the above table 3.21 it is observed that out of 120 respondents, 85 respondents
(i.e.71%) are agreed that the feed back is communicated after assessment of the
performance and 35 respondents (i.e.29%) are disagree that the feed back is communicated
after assessment of the performance.

Change required in performance appraisal.


Table 3.22: Change required in performance appraisal.
PARAMETERS NO.OF RESPONDENTS PERCENTAGE (%)
Yes 49 41
No 71 59
TOTAL 120 100

Graph 3.22: Change required in performance appraisal.

42
PERCENTAGE OF RESPONDENTS
70
59
60

50
41
40

30

20

10

0
Yes No
PARAMETERS

INTERPRETATION:
From the above table 3.21 it is observed that out of 120 respondents, 71
respondents (i.e.59%) are disagree that the change required in performance appraisal and
49 respondents (i.e.41%) are agree that the change required in performance appraisal.

CHAPTER-IV
FINDINGS

43
&
SUGGESSIONS

FINDINGS

 It is found that 53% employees said that performance appraisal help in the
assessment of the individual potential.

 It is found that 58% employees feel that performance appraisal is the development
of the individual potential career, growth & development.

 It is found that 56% of employees said that performance appraisal followed in the
organization is rational and fair.

 It is found that 41% of employees said that employee be assessed once in 6


months.

 It is found that 52% of employees are agree that the basis of performance appraisal
system.

 It is found that 42% of employees said that online system is used to evaluate the
employee performance.

44
 It is found that 63% of employees said that, awareness of 360-degree performance
appraisal.

 It is found that 38% of employees said that superior will be the appraiser.

 It is found that 62% of employees feel that task and job expectation are
communicated.

 It is found that 56% of employees feel that frequent assessment is better than
phased evaluation.

 It is found that 59% of employees said that performance rating by superior is


objective.

 It is found that 72% of employees said that training program scheduled after gap is
observed.

 It is found that 50% of employees feel that performance appraisal followed in the
organization help to assess the training and development needs of the employee.

 It is found that 68% of employees feel that performance appraisal in the


organization helps to recognize the competence followed in the organization.

 It is found that 47% of employees feel that they are happy with the assessment of
performance followed in the organization.

 It is found that 48% of employees said that employees have been appraised fairly
according to the company‟s policies.

 It is found that 50% of employees said that advises and suggestions are given to the
employees during the appraisal process.

 It is found that 63% employees feel that, employees accept the appraisal feedback
in a positive way.

45
 It is found that 56% of employees feel that performance appraisal followed in the
organization motivates them.

 It is found that 42% of employees feel that errors/problems has impact on


performance rating in the organization according to subjectivity.

 It is found that 71% of employees feel that feedback on performance is


communicated after assessment of the performance.

 It is found that 59% of employees feel that their will be change required in
performance appraisal.

CONCLUSION

From the above findings, we conclude that HCL, the employees are working
sincerely for the development of the organization. The employees interested to take part in
performance appraisal programmers and improving their knowledge and skills and
management attitude towards performance appraisal appreciable.

SUGGESTIONS

1. The organization should put more efforts in appraisal system to


Motivated hundred percentage of employee.

46
2. The organization should try to conduct performance appraisal system half
yearly also.
3. Appraisal of an employee should be done based on his/her action performance.
Regularly discussion with subordinates be conducted in order to maintain and relationship
between management and employee

47
QUESTIONNARIES

48
1. Performance appraisal help in the assessment of individual potential?
a. Strongly agree[ ] b. Agree[ ] c. neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

2. Performance appraisal is the development of the individual potential, career &


growth development?
a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

3. Performance appraisal system followed in the organization is Rational & Fair?


a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

4. Period of assessment of performance?


a. Once in 3 months[ ] b. Once in 6 months[ ]c. Once in a year[ ]

5. Basic of performance appraisal system?


a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

6. Mode of performance appraisal?


a. Oral[ ] b. written[ ] c. Observation[ ] d. Online[ ]

7. Awareness of 360-degree performance appraisal?


a. Yes[ ] b. No[ ]

8. Who will the appraisal?


a. Superior[ ] b. subordinate[ ] c. HOD[ ] d. Peer Groups[ ]

9. Task and job expectations are communicated?


a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

10. The assessment is better than phased evaluation?


a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

11. The performance rating by superiors is objective?


a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

12. Training program schedule after performance gap is observed?


a. Yes [ ] b. No[ ]

49
13. The performance appraisal fallowed in the organization help to assess the training
and develop needs of the employee?
a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

14. The performance appraisal in the organization helps to recognize the competence
& potential of an individual?
a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

15. I am happy with the assessment of performance fallowed in the organization?


a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

16. Employee has been apprised fairly according to the company policies?
a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

17. Advises and suggestion are given to the employee during the appraisal process?
a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

18. Employees accept the appraisal feed back?


a. Positive way[ ] b. Negative way[ ] c. uninteresting[ ]
d. neutral[ ]

19. The performance appraisal fallowed in the organization motivates?


a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

20. Errors/problems have impact on performance rating in the organization?


a. Strongly Agree[ ] b. Agree[ ] c. Neutral[ ] d. Strongly disagree[ ] e.
disagree[ ]

50
BIBLIOGRAPHY

BOOKS
Essentials of human resource management P.Subba Rao
Principles of personal management Edwin D.Flippo
Personal management
Performance management and other information from internet

Websites
www.HCL.com
www.shodhganga.com

51

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