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Performance management system at TCS


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The performance management process involves all levels in an organization. Strategic goals set by Verified writer
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the organization filter through the organization and affect the Your
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addition, the performance management process By a Professional
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maintain the human resource information system (HRIS). The HRIS contains a skill bank of employee 4.9 (984)
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This information is used in all areas of HR decision-making. Effective performance management
Topic
requires ongoing communication between supervisors and staff. The assessment and review part of
the process provides the opportunity for documentation and formal communication. It’s the time for the What’s Your Topic?
supervisor and the employee to set developmental goals that reinforce the organization’s strategic
Deadline: 10 days left
plan and, if there are areas of problem performance, action plans for improvement. There should be
discussion of the employee’s career progress and plans made for training and long-term career 11-11-2022 10:45
growth.
Number of pages

Many supervisors see the appraisal process as a motivation tool to improve employee performance. 2 pages (550 words)

The employee’s main objective is to obtain feedback from the supervisor on his or her work Email
performance. Ideally, employees receive feedback at all times and not just through the review process.
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The employee will also expect organizational support in his or her career growth. Together, the
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Anything the supervisor can do to enhance the employee’s skills will benefit both the employee and
the organization. If the organization links performance appraisal to compensation, most employees will WRITE MY PAPER
expect a raise as a result of a positive review. Though supervisors generally conduct the review, they
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may not have a say in the amount of compensation awarded because compensation is normally
determined by organizational policy. This can be particularly problematic for supervisors who want to
motivate employees through the appraisal process but find the organization’s compensation to be a
de-motivator when increases are not as much as employees would like. For this reason, many
supervisors prefer that compensation increases are not linked to the performance appraisal process. Related Essays

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Performance management is a goal-oriented system to ensure that organizational processes exist to MANAGING PERFORMANCE
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A performance appraisal is a formal system of review and evaluation of individual or team MANAGEMENT
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The performance appraisal is a periodic event to reflect and evaluate past performance with the intent Performance Management
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A performance appraisal is just one part of a performance management system. Database Management
System: Parcel Collection
The Importance of Performance Management
System
The employees are an integral and indispensable part of running a business smoothly and efficiently. Pages: 4 (1105 words)
That’s why, keeping in mind the crucial role of the employees, a recent trend known as Performance
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employees not only fulfil their responsibilities, but do so to the best of their abilities and up to your of Milma
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expectations. Performance management allows us to tap the full potential of our staff. It can be
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rating their progress and rewarding them for their achievements. I. Involve Employees in the Planning Performance Measurement
Stage System
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The making of plans alone will not help us to run our business successfully. We must also focus on the
Optimizing Performance Using
appropriate ways to get business tasks done. One way of doing this efficiently is to involve our Spread Messaging System
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clear picture of what we expect from them and what they need to accomplish.
Performance budgeting
II. Monitoring the Progress of Our Employees system
Pages: 1 (234 words)
Just as revision of business plans is sometimes necessary for the success of our business, measuring
the performance of every employee is also important. This ensures that tasks are efficiently completed
on time and on or under budget. It also points out to you any shortcomings of either our staff or
business plans, and helps us to take the appropriate corrective actions.

III. Ensuring All Around Development of Employees


Performance management gives us the tools to install the desired qualities in our employees in order
to get the job done. Development is not limited to only individuals in our workplace, but also addresses
the performance of the team as a whole. All around employee development not only ensures
the personal and professional growth of our employees, but also the expansion and improvement of
our business.

IV. Evaluation of Individual Performance


Evaluating and rating the performance of our employees on an individual basis is essential. This gives
them a clear picture of where they presently stand, areas that they need to work on and what they are
good at. This way, they can focus more on their weaknesses and work to strengthen those areas. We
should make it company policy to issue performance reviews while providing your employees with the
feedback that they need to perform better at their jobs.

V. Rewarding Our Employees

Rewarding and appreciating our employees’ efforts ensures that the level of their performance and
consequently the performance of our business is not compromised. It ensures optimum productivity,
Performance and maximum profitability. Rewarding our staff for a job well done not only enhance their
performance but also serves as a tool to keep them motivated. Therefore, performance management
is an effective system that allows us to achieve the financial goals of our small business. Methods of
Performance Appraisal

There are a variety of appraisal methods available to organizations. The method selected by the
organization should fit well with the organization’s goals and be appropriate to the job being appraised.
Some organizations use different methods for different positions. Regardless of the system used,
regular communication and feedback from managers are more important than the method used.
Graphic rating scale

A graphic rating scale is the most commonly used appraisal system. Evaluators record their judgments
on a scale that includes about 5–7 categories. Categories are defined by adjectives such as
outstanding, meets expectations or needs improvement. This method is popular because it is easy to
administer and can be quantified, if desired, by adding a numeric value to each description.

Ranking method
In the ranking method, the evaluator places employees from a particular group in the order of overall
performance, starting with the top performer–who is rated the highest–and moving down to the
poorest performer in the group who receives the lowest ranking. Paired comparison is a variation of
the ranking method in which the performance of each employee is compared with every other
employee. The comparison is often based on a single criterion, such as overall performance. The
employee who receives the greatest number of favorable comparisons is ranked the highest. This can
be difficult to administer if your work group consists of a large number of employees.

Forced distribution method


The forced distribution method requires the evaluator to assign individuals to a limited number of
categories, much like a normal frequency distribution curve. A few individuals will get very high ratings
and a few will get very low ratings, with the majority averaging in the center of the curve. Generally,
those with very low ratings are subject to termination. As with the ranking method, this system requires
the evaluator to place some employees at the bottom, even if their performance is acceptable, and
some at the top, even if performance may actually be less than outstanding. The system makes the
erroneous assumption that there must be some outstanding workers and some poor workers, even
when that may not be the case. Forced distribution is unpopular among managers because many
believe it destroys teamwork and fosters cutthroat competition among employees.

Critical incident method


The critical incident method requires the evaluator to maintain records of employees’ favorable and
unfavorable performances. These critical incidents become the basis for evaluation. The incident log
must be maintained over the entire evaluation period to eliminate the problem of just evaluating an
employee’s most recent Performance.

Essay method
In the essay method, the evaluator writes a brief narrative of the employee’s performance. The major
criticism of this method is that it is very subjective because the evaluation criteria left entirely to the
discretion of the evaluator and the results are dependent on the writing skills of the evaluator. It can be
difficult to compare the results of employee evaluations that use the essay method because there are
no common criteria used for evaluation. BARS–behaviorally anchored rating scale

BARS is a behaviorally anchored rating scale that combines elements of a traditional rating scale and
a critical incident method. Various performance levels are described on a scale, and the evaluator
compares the employee’s performance to the levels described. The descriptions provided reduce the
amount of judgment required of the evaluator and rely on the evaluator’s observations of the
employee’s work behavior.

MBO–management by objectives
Management by objectives, or MBO, is a results-based system that relies on the manager and the
employee to jointly agree on objectives, the attainment of which becomes the basis of evaluation for
the next appraisal period.

TCS- Tata Consultancy Service

About The Company


Tata consultancy services limited (TCS) is the world-leading information technology consulting,
services, and business process outsourcing organization that envisioned and pioneered the adoption
of flexible global and pioneered the adoption of the flexible global business practices that today enable
companies to operate more efficiently and produce more value. They are part of one of Asia’s largest
conglomerates- the TATA Group- which, with its interests in Energy, Telecommunications, Financial
Services, Chemicals, provides us with a grounded understanding of specific business challenges
facing global companies. The role of HR assumes unthinkable proportions and is subject to mammoth
challenges. With this sensitive breed of IT professionals, how has TCS grown to and sustained at the
number one position is a question which market watchers have asked themselves a thousand times.
There is but one answer- passion for excellence in the workforce practices.

TCS has developed an unbreakable bond with sound HR practices in an environment that defines
traditional roles and responsibilities. The TCS-HR group operates with technical experts to create a
synergy which is enviable. The role of HR, which is that of a facilitator. So whether it is recruitment or
even career development, HR is the catalyst which initiates and institutionalizes processes. To
manage all the functions for over 14000 employees is a difficult task but the smoothness of operations
is intriguing. The HR structure, which allows flexibility and empowerment, is the solution.

Performance Appraisal Criteria at TCS


Objective
Data relating to performance assessment of employees are recorded, stored and used for different
purposes:

MAIN PURPOSE OF PERFORMANCE APPRAISAL


General Applications
Specific purposes
Developmental Uses
Identification of individual needs
Performance feedback
Determining Transfers and job assignments
Identification of individual strengths and development needs. Administrative Uses
Salary
Promotion
Retention or termination
Recognition of individual performance
Lay-offs
Identification of poor performers
Organizational Maintenance/ Objectives
HR planning
Determining organization training needs
Evaluation of organizational gal achievement
Information for goal identification
Evaluation of HR systems
Reinforcement of organizational development needs
Documentation
Criteria for validation research
Documentation for HR decisions
Helping to meet legal requirements

Performance Appraisal and Competitive Advantages in TCS


The objectives of performance appraisal, point out the purpose which such an exercise seeks to meet.
What needs emphasis is that performance evaluation contributes to TCS’s competitive strength.
Besides encouraging high levels of performance, the evaluation system helps identify employees with
potential, reward performance equitable and determine employee’s need for training.

Specifically, performance appraisal has helped the TCS gain competitive edge in the following ways:
Improving performance
Making correct decisions
Ensuring legal compliance
Minimizing dissatisfaction and turnover
Values and behaviour
Strategy and behaviour

TCS conducts two appraisals:


1. At the end of the year
2. At the end of a project

Appraisals are based on Balanced Scorecard, which tracks the achievement of employees on the
basis of targets at four levels:

Based on their individual achievements, employees are rated on a scale of one to five (five =
“superstar”). If employees get a low rating (less than two) in two consecutive appraisals, the warning
flags go up. “If the poor performer continues getting low scores then the exit option may be
considered. Over the years TCS has found the pattern that leads to the maximum decline in
performance. If employees work for more than two years on the same project, typically either their
performance dips or they leave the organisation. To avoid that, TCS shuffles its employees between
projects every 18 months or so. “Performance drops if motivation drops” the employee satisfaction
depends upon the fact whether his performance is being appreciated and recognized. TCS’s
performance management system has metamorphosed into one that emphasizes objectivity and a
system that mandates performance evaluation against pre-determined criteria.

What Deserve special mention is the active participation of the senior management in the
determination of guidelines for the Performance Appraisal Process. The process ensure buy in of the
employees since the guidelines for the rating system and its conversion into money terms is not
unilaterally decided by HR but is a consensus of a cross functional team with representation from all
levels. TCS’s performance appraisal system is supported by an online system called the Human
Resource management system an Oracle Developer 2000 based tool. An employee’s performance
history at the click of a button and this accurately maintained for 14000 employees. Right from his
entry, an employee in TCS get formal performance feedback once every 2 months till such time that
he is confirmed after which the performance feedback is provided twice every year on a formal basis.
TCS however widely encourages informal feedback discussions between Project leader & Team
Members and this concept have found an overwhelming appeal among the people.

Recognition at TCS

Guaranteed high motivation levels at TCS through competitive compensation packages, stimulating
job content, outstanding development opportunities, and not the least, an innovative recognition
mechanism.

The various ways in which TCS recognizes its people are listed below: Project milestone parties — to
encourage efficient execution of projects. Recognition of star performers / high fliers — to recognize
outstanding talent. Nomination to covet training programmes — to encourage self-development. Best
project award — to promote a spirit of internal competition across work groups and to foster teamwork.
Best PIP award — to encourage innovation and continuous improvement. Best auditor award — to
acknowledge participation in critical support roles Spot awards — to ensure real-time recognition of
employees. Recommendations for new technology assignments / key positions — to ensure career
progression and development of employees’ full potential. Performance-based annual increments —
to recognize high performers Early confirmations for new employees — to reward high-performing new
employees Long-service awards — to build organisational loyalty

EVA-based increments — to ensure performance-based salaries. On-the-spot recognition —to


guarantee immediate recognition of good performance.

Calvin Nichols Share

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