A STUDY ON

“PERFORMANCE APPRAISAL IN TCS”

BY: ADITYA PANIGRAHI

REGISTRATION NO - 2106266008

UNDER THE SUPERVISION OF

MR. ADITYA PRAKASH
SAHOO
DEPARTMENT OF MBA

TRIDENT ACADEMY OF CREATIVE

TECHNOLOGY BHUBANESWAR, ODISHA
 GUIDE CERTIFICATE

THIS IS TO CERTIFY THAT THE PROJECT

ENTITTLED

“PERPORMANCE APPRAISAL IN TCS”

SUBMITTED BY: MR. ADITYA

PANIGRAHI

(REGD. NO. 2106266008)

TRIDENT ACADEMY OF CREATIVE TECHNOLOGY UNDER MY

GUIDANCE AND DIRECTION, HIS FIELD WORK IS SATISFACTORY.

SIGNATURE OF HOD SIGNATURE OF THE

GUIDE
(DR. NARGIS BEGUM) (Mr.ADITYA PRAKASH
SAHOO)
 ACKNOWLEDGEMENT

A PROJECT USUALLY FALLS SHORT OF ITS EXPECTATION

UNLESS GUIDED BY THE RIGHT PERSON AT TIGHT TIME. SUCCESS
OF A PROJECT IS AN OUTCOME OF SINCERE EFFORTS, CHANNELLED
IN RIGHT DIRECTION, EFFICIENT SUPERVISION AND THE MOST
VALUABLE PROFESSIONAL GUIDANCE.
THIS PROJECT WOULD NOT HAVE BEEN COMPLETED WITHOUT
THE DIRECT AND INDIRECT HELP AND GUIDANCE OF SUCH
LUMINARIES. THEY PROVIDE ME WITH THE NECESSARY
RESOURCES AND ATMOSPHERE FOR HEALTHY LEARNING AND
TRAINING.
AT THE OUTSET I WOULD LIKE TO TAKE THIS OPPORTUNITY TO
GRATEFULLY ACKNOWLEDGE THE VERY KIND AND PATIENT
GUIDANCE FROM MY PROJECT GUIDE: MR.ADITYA PRAKASH
SAHOO WITHOUT HIS CRITICAL EVALUATION AND SUGGESTION AT
EVERY STAGE OF THE PROJECT, THIS REPORT COULD NOT HAVE
REACHED ITS PRESENT FORM.
LAST BUT NOT LEAST I WOULD LIKE TO THANK MY FAMILY
MEMBERS AND FRIENDS FOR SUPPORTING ME TO COMPLETE MY
TASK.

YOURS SINCERELY

ADITYA PANIGRAHI

(REGD. NO. - 2106266008)

 DECLARATION
I ADITYA PANIGRAHI, STUDENT OF MBA AT TRIDENT ACADEMY OF
CREATIVE TECHNOLOGY, BHUBANESWAR, ODISHA, SOLEMNLY
DECLARE THAT THE PROJECT WORK TITLE AS “PERFORMANCE
APPRAISAL IN TCS”, IN PARTIAL FULFILMENT OF MBA PROGRAM
UNDER BPUT OF ODISHA, THIS PROJECT WAS UNDERTAKEN AS A
PART OF UNIVERSITY RULES, NORMS AND BY NO COMMERCIAL
MOTIVES.

PLACE- BHUBANESWAR
DATE- ADITYA PANIGRAHI
TABLE OF CONTENT
Sr. PARTICULARS Page no.
No

1 INTRODUCTION OF STUDY
2-3
 INTRODUCTION
  OBJECTIVE OF THE STUDY
 RESEARCH METHODOLOGY

2 INDUSTRY ANALYSIS
3-4

3 COMPANY ANALYSIS
5-11
 ABOUT THE COMPANY
 COMPANY STRUCTURE
 MANPOWER ANALYSIS
 STRATEGIC ANALYSIS
 FINANCIAL ANALYSIS

4 COMPETITOR ANALYSIS
12-13

5 CLIENT AND CUSTOMER ANALYSIS

14

7 CONCEPT OF PERFORMANCE APPRAISAL SYSTEM

14-16
 IMPORTANCE
 METHODS
 FUTURE TRENDS
 CHALLENGES FACED

8 PERFORMANCE APPRAISAL IN TCS

17-19

9 ANALYSIS AND INTERPETITION

19-25

10 CONCULSION
26-27

ABSTRACT
In this dynamic and ever exponentially changing global market, nothing can be measured with accuracy
because business world made market attributes volatile. In the complex business world, human beings are
the most valuable assets. Human resources attitude is also volatile as subjected to many experiences and
situations. In such scenario, one needs to measure how Human Resources perform for the purpose of
reward, assessment and knowledge. The tools & techniques innovated for measuring human productivity
and performance with respect to the required capability, intellect and experience is under an umbrella
named Performance Appraisal System. No single Performance Appraisal system can assure the reliability of
its results. PAS can only be performed as impartial as possible by choosing the best fit method out of
trending ones. Performance appraisal process is a continuous process to monitor the actual performance of
 the employee i.e. the work done by the employees throughout the year. In this stage careful selection of the
appropriate techniques of measurement such as personal observation, statistical reports, and written reports
for measuring the performance is needed. This paper attempts to explain PAS followed in TATA
Consultancy Service.

INTRODUCTION
Performance can be defined as the actual output delivered to the organization when provided with certain roles and
responsibilities within a given period of time. Performance appraisal is evaluation of the performance of an employee for
a defined period of time. Any organizations‟ development is primarily based on its employees‟ efficiency and attitude
towards the organizational goal. These appraisals can be used in deciding the pay, career prospects, training. Performance
appraisal is normally given to the employee to the next superior designated person who would observe the employees'
efforts, performance and efficiency. Performance Appraisal creates a negative effect on the employees as well as towards
the organizational objectives. performance management systems as concerned with directing and supporting employees
to work as effectively and efficiently as possible in line with the needs of the organization. Broadly, performance
management, which is continuous process must contain performance appraisal to assess the employees stand in pursuing
individual as well as organizational goals. Performance appraisal simply serves as an aid for managers in the process of
performance management. Performance Planning: According to T V Rao, “It is defined as systematic outlining of the
manager’s activities which are expected to undertake during specified period contributing for organizational outcome.”
The performance of each mentee was given by ratings from their superiors. Significant relations were found between
interaction opportunities and both motivation and commitment, and between relationship closeness and both these
attitudes.It is just a beforehand blueprint of future plans to be implemented and accomplished. Appraiser: A person who
undertakes/ is given the responsibility to evaluate in terms of performance, skills and ability of his team (individually) or
 subordinates or employees at the immediate next & down level of superiority is called appraiser. Appraisee: A person who is
being evaluated (knowingly or unknowingly) by the Appraiser is called Appraisee Performance Review Discussion: It is the
brainstorming and thought sharing activity performed by appraiser and appraisee. It is also called performance counseling.
Here, even the negative feedback must be given in a positive and constructive way by the appraiser. Self-Appraisal: A notes
developed by an employee about the tasks and accomplishments performed by to know variations for the last year and now in
his performance even if organization does not mandate its requirement. Performance indicators (PIs) and performance
measurement are populartopics in management literature nowadays. However, hardly ever is attention paid to the
consequences of the relationships that often exist between the different PIs for designing effective, consistent
performance management systems for organizations as whole.

OBJECTIVE
The objective of this paper is follows:
 To study the performance Appraisal system
 To examine why performance appraisal is important
 Performance Appraisal practices in TATA Consultancy Service

RESEARCH METHODOLOGY
The data of this report is been collected from secondary sources . Secondary data inclusive of quantitative and qualitative
data as well collected from various sources including books, annual reports published by the company, research papers,
newspapers, magazines and website is used for the purpose of the study.

INDUSTRY ANALYSIS
With digital transformation, organizations have become dependent on the success of creative applications and
extensions that IT could provide. More certainly, IT has become a critical competitive edge for most organizations.
Moreover, IT outsourcing has become more than a simple cost-reduction technique with the migrations and options
of cloud services. Therefore, this new form is driven by organizational motivations regarding business growth,
customer experience, and competitive disruption.
Multiple studies have suggested that Application Development and Maintenance have become the most frequently
outsourced functions amidst the partial IT outsourcing trends. For instance, in 2021, Accenture PLC reported an
increase in the revenue in its outsourcing business by 15% compared to fiscal 2020. The company also said that
growth in outsourcing revenue was led by strong growth in North America and other markets, with solid growth in
 Europe.
Leading IT companies are experiencing growing demand to assist clients with application modernization and
maintenance, cloud enablement, and managed security services. In addition, clients continue to be focused on
transforming their operations through automation and AI, data, and analytics to drive operational cost savings and
productivity.
Looking at application development, companies such as Slack, GitHub, Alibaba, and WhatsApp have successfully
leveraged the benefits of outsourcing development. In its initial days, WhatsApp resorted to Eastern Europe for tech
talent to keep operation costs low. It hired offshore developers from Russia for the software build and kept its in-
house employees focused on customer support and operations.
Many established and technologically driven players are present across regions. The development of specializations
has led to market fragmentation with the vendors studied. With many options to choose from, the rivalry is also
expected to be on the higher side as multiple strategies have been adopted to enter new emerging markets and
acquire/partner with allied technology-driven companies.
The growing adoption of cloud services since the outbreak of COVID-19 is expected to create a favourable market
scenario for the growth of the IT outsourcing market as enterprises using such services often outsource the
maintenance and portion of development work to third parties.
IT Outsourcing Industry Segmentation
IT outsourcing involves a contractual arrangement where IT service providers take complete ownership and control
over the client’s infrastructure. The growing emphasis on operational efficiency and cost-effectiveness led to
increased demand for outsourcing to offshore companies. The study tracks the regional and country-level market
demand for IT outsourcing and provides detailed coverage of the major end-user trends affecting adoption.

The IT outsourcing market is highly competitive owing to multiple vendors providing IT services to the domestic and
international markets. To sustain in the market and retain their clients, companies are developing advanced technologies to
play on the competitive edge, thereby intensifying the competitive rivalry in the market.
 COMPANY INTRODUCTION AND PROFILE
INTRODUCTION
Tata Consultancy Services Limited (TCS) is a subsidiary of the Tata Group, an Indian information technology consulting and
business solutions company which operates in 46 countries worldwide. TCS Limited was founded in 1968 by a division of Tat
Sons Limited.  Its early contracts included punched card services to TISCO (now Tata Steel), working on an Inter-Branch
Reconciliation System for the Central Bank of India. In 1975 TCS made an electronic depository and trading system called
SEMCOM for Swiss company. TCS also established India's first software research and development centre called Tata Research
Development and Design Centre in Pune, Maharashtra. On 25 August 2004, TCS became a Publicly Listed Company.
Tata Consultancy Services Limited (TCS) is Software service consulting company headquartered in Mumbai, India. TCS i
the largest provider of information technology and business process outsourcing services in Asia. TCS has offices in 42
countries with more than 142 branches across the globe. The company is listed on the National Stock Exchange an
Bombay Stock Exchange of India.TCS is one of the operative subsidiaries of one of India’s largest and oldes
conglomerate company, the Tata Group or Tata sons Limited, which has interests in areas such as energy
telecommunication, financial services, manufacturing, chemicals, engineering, materials, government and healthcare.

TATA CONSULTANCY SERVICE, BHUBANESWAR

HISTORY
It began as the TATA Computer Centre, for the company Tata Group whose main business was to provide compute
services to other group companies. FC Kohli was the first general manager. JRD Tata was the first chairman, followed by
Nani Palkhivala. One of TCS first assignments was to provide punched card services to a sister concern, Tata steel (then
TISCO). It later bagged the country’s first software project, the inter-branch reconciliation system (IBRS) for the centra
bank of India. It also provides bureau services to unite Trust of India, thus becoming one of the first companies to offe
BPO services. In the early 1970s, Tata Consultancy services started exporting its services. The company pioneered th
globe delivery model for IT services started exporting its services. The company pioneered the global delivery model fo
IT services with its first offshore client in 1974. TCS first international order came from Burroughs, one of the firs
business computer manufacturers.TCS was assigned to write code for the Burroughs machines for several US based
clients. This experience also helped TCS bag its first onsite project – the institutional Group& Information Company
(IGIC), a data centre for ten banks, which catered to two million customers in the US, assigned TCS the task o
maintaining and upgrading its computer systems. In 1981, TCS set up India's first software research and developmen
centre, the Tata Research Development and Design Centre (TRDDC). The first client-dedicated offshore developmen
centre was set up for Compaq (then Tandem) in 1985. In 1989, TCS delivered an electronic depository and trading system
called SECOM for SIS Sega Inter Settle, Switzerland. It was by far the most complex project undertaken by an Indian IT
company. TCS followed this up with System X for the Canadian Depository System and also automated the Johannesbur
Stock Exchange (JSE). TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired. In 18the early 1990s
the Indian IT outsourcing industry grew tremendously due to the Y2K bug and the launch of a unified European currency
Euro. TCS pioneered the factory model for Y2K conversion and developed software tools which automated the conversion
process and enabled third-party developers and clients to make use of it. In 1999, TCS saw outsourcing opportunity in E
Commerce and related solutions and set up its E-Business division with ten people. By 2004, E-Business was contributing
half a billion dollars (US) to TCS. On 9 August 2004, TCS became a publicly listed company, much later than its rivals
Infosys, Wipro and Mahindra Satyam. Study of Recruitment, Selection and Performance Appraisal of TCS 5 during 2005
TCS ventured into a new area for an Indian IT services company - Bioinformatics In 2008, the company went through an
internal restructuring exercise that executives claim would bring about agility to the organization. INDIAN BRANCHES
TCS has development centres and/or regional offices in the following Indian cities: Ahmadabad, Baroda, Bangalore
Bhubaneswar, kochi, Kolkata, Lucknow, Mumbai, Noida, Pune, Thiruvananthapuram, Patna,Haldia GLOBAL UNITS
Africa: South Africa, Morocco Asia (Outside India): Bahrain, Beijing, Hong Kong, Hangzhou, Shanghai, Indonesia, Israel
Japan, Malaysia, Saudi Arabia, Singapore, South Korea, Taiwan, Thailand, UAE(Dubai) Australia: Australia Europe
Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway
Portugal, Spain, Sweden, Switzerland, United Kingdom North America: Canada, Mexico, USA South America: Argentina
Brazil, Chile, Colombia, Ecuador, Uruguay, Peru EMPLOYEES TCS is one of the largest private sector employers in
India with core strength in excess of 186,914 individuals. TCS has one of the lowest attrition rates in the Indian IT
industry.

VISION STATEMENT 
TCS will be recognized and respected as professional, innovative, profitable information, and knowledge base
logistics/services enterprise. TCS embeds internet based technologies into its internal operating structures and as busines
solutions for customers; with customer, employee and shareholders’ interests at the core of its operations; demonstrating
clear concerns for ethical conducts and good corporate citizenship; with the objective of growing into a regional and globa
player, with emphasis on the Middle East, Europe and North America.

MISSION STATEMENT
 TCS has built a global reputation for its ability to help customers achieve their business objectives – by providing
innovative, best-in-class consulting; IT and IT enabled solutions and services. TCS core set of values underpin all activitie
in the company and these include leadership with trust, integrity, excellence, respect for the individual an
learning/sharing. The company plans to further strengthen and consolidate its position in the global IT industry as a
integrated full services player with global footprint interns of innovation, operations and service delivery.

COMPANY PROFILE
TATA CONSULTANCY SERVICE
Formerly : Tata Iron and Steel Company Limited
Industry : IT Services, IT Consulting
Founded : 1968; 53years ago
Founder : Tata sons
Headquarters : Mumbai, Maharashtra, India
Area served : Worldwide
Key people :Natarajan Chandrasekaran (Chairman)
Rajesh Gopinathan
(CEO & Managing Director)
Services : Outsourcing Consulting Managed services
Revenue : ₹161,541 crore (US$23 billion) (2020)
Operating income : ₹42,248 crore (US$5.9 billion) (2020)
Net income : ₹32,340crore (US$17 billion) (2020)
Total assets : ₹120,899 crore (US$17 billion) (2020)
Total equity : ₹72,729 crore (US$10 billion) (2019)
Number of employees : 509,058 (2020)
Parent : Tata sons
Subsidiaries : TCS china TCDDC
Website : www.tcs.com

OPERATION
Tata Consultancy Services has 285 offices across 46 countries and 147 delivery centres in 21 countries. On the same date, TCS
had a total of 58 subsidiary companies.
TCS has operations in the following locations:
India:
Ahmedabad, Bengaluru, Baroda, Bhubaneswar, Chennai, Coimbatore, Delhi, Gandhinagar, Goa, Gurugram, Guwahati, Hyderaba
d, Bhopal, Indore, Jamshedpur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, Noida, Nashik, Patna,[88][89] Pune, Thiruvananthapura
m, and Varanasi
Asia (excluding India):
Bahrain, China, Israel, UAE, Hong Kong, Indonesia, Japan, Malaysia, the Philippines, Saudi Arabia, Singapore, South
Korea, Taiwan, Thailand, and Qatar
Oceania:
Australia
Africa:
South Africa, Morocco (closed)
Europe:
Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Republicof Ireland, Italy, Luxembourg,
the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
North America:
Canada, Mexico, and the United States.
South America:
 Argentina, Brazil, Chile, Colombia, Ecuador, Peru, and Uruguay.

PRODUCTS& SERVICES
TCS and its 67 subsidiaries provide a wide range of information technology-related products and services includin
application development, business process outsourcing, capacity planning, consulting, enterprise software, hardwar
sizing, payment processing, software management, and technology education services. The firm's established softwar
products are TCS BaNCS and TCS Master Craft.
TCS' services are currently organized into the following service lines (percentage of total TCS revenues in the 2012-13
financial year generated by each respective service line is shown in parentheses):
 Application development and maintenance (43.80%) value;
 Asset leverage solutions (2.70%);
 Assurance services (7.70%);
 Business process outsourcing (12.50%);
 Consulting (2.00%);
 Engineering and Industrial services (4.60%);
 Enterprise solution (15.21%); and
 IT infrastructure services (11.50%).
 Cognitive Business Operations
 Cloud Infrastructure
 Automation and AI

Application development consulting

Cloud infrastructure Automation

Award &
Recognition
TCS won the followin
awards:
•Gold Stevie – IT Department of the Year: TCS IT Ultimatix – TCS India
•Gold Stevie – Mobile Site & App – Sports: 2019 TCS New York City Marathon App – TCS United States
•Silver Stevie – New Products and Product Management – Business Technology Solution – Artificia
Intelligence/Machine Learning Solution: TCS Optumera™ – TCS United States
•Bronze Stevie – Most Exemplary Employer: TCS SBWSTM – TCS India
The International Business Awards (IBAs) are the world’s premier business awards program. All individuals and
organizations worldwide – public and private, for-profit, and non-profit, large, and small – are eligible to submi
nominations. The 2020 IBAs received entries from organizations in 63 nations and territories. Stevie Award winner
were determined by the average scores of more than 250 executives worldwide who participated in the judging proces
from July through early September.
Artificial Intelligence
 Asset leverage solution

FINANCIAL ANALYSIS
Tata Consultancy Services Limited reported earnings results for the third quarter and nine months ended December 31
2022. For the third quarter, the company reported sales was INR 582,290 million compared to INR 488,850 million a yea
ago. Revenue was INR 587,490 million compared to INR 500,900 million a year ago. Net income was INR 108,460
million compared to INR 97,690 million a year ago. Basic earnings per share from continuing operations was INR 29.64
compared to INR 26.41 a year ago. For the nine months, sales were INR 1,662,960 million compared to INR 1,411,63
million a year ago. Revenue was INR 1,685,700 million compared to INR 1,442,000 million a year ago. Net income wa
INR 307,550 million compared to INR 284,010 million a year ago. Basic earnings per share from continuing operation
were INR 84.05 compared to INR 76.77 a year ago.

MANPOWER ANALYSIS
TCS has a workforce of 500,000. That’s roughly ten times the capacity of New York’s Yankee stadium, or a little unde
the total population of the Swiss city of Basel.
CEO Rajesh Gopinathan recently commented that in terms of human capital, with every quarter, the company has bee
mobilizing and matching employee skills to requirements equivalent to the workforce numbers of a medium-sized
company.
TCS’ Resource Management Group (RMG) has, over the years, put together an intricate blueprint to ensure that th
enterprise makes the most of its human capital by analysing, and then up skilling and reskilling the workforce. RMG wa
awarded three coveted industry prizes in 2021 for human resource optimization and management. One among these i
Brandon Hall Group’s 2021 Excellence Awards for Best Advance in Workforce Planning and Management.

STRATEGIC ANALYSIS
TCS is an IT services, consulting and business solutions organization partnering many of the world’s largest businesses i
their transformational journeys for the last 50 years. It has a global presence, deep domain expertise in multiple industry
verticals and a complete portfolio of offerings – grouped under consulting and service integration, digital transformation
services, cloud services, cognitive business operations, and products and platforms – targeting every C-suite stakeholder.

The Company leverages all these and its deep contextual knowledge of its customers’ businesses to craft unique, high
quality, high impact solutions designed to deliver differentiated business outcomes. These solutions are delivered using it
Secure Borderless Workspaces™ (SBWS™) operating model which enables a highly distributed, Location Independen
Agile™ delivery.
 Competitor Analysis

TCS (Tata Consultancy Services) competitors include Amazon, Accenture, Wipro Limited, Cognizant Technology
Solutions and Infosys. TCS (Tata Consultancy Services) ranks 2nd in Product Quality Score on Comparably vs. its
competitors. See below how TCS (Tata Consultancy Services) compares to its competitors with CEO Rankings, Product &
Services, NPS, Pricing, Customer Services, Overall Culture Score, eNPS, Gender and Diversity Scores.

TCS RANKS:

CEO Rank
5th
eNPS Rank
5th
Gender Rank
6th
Diversity Rank
6th
Product Quality
2nd
NPS Rank
4th
Pricing Rank
 2nd
Customer Service

TCS (Tata Consultancy Services) Culture vs. Competitors:


1st

Amazon
74 / 100


2nd

Accenture
72 / 100


3rd

Wipro Limited
71 / 100


4th

Cognizant Technology Solutions

65 / 100

 5th
 TCS (Tata Consultancy Services)
63 / 100

6th

Infosys
62 / 100

CLIENT AND CUSTOMER ANALYSIS

What are the clients of TCS?

TCS is here to make a difference through technology.
 Banking.
 Capital Markets.
 Consumer Goods and Distribution.
 Communications, Media, and Information Services.
 Energy, Resources, and Utilities.
 Healthcare.
 High Tech.
 Life Sciences.

With the profusion of data from multiple sources, many brands struggle to get the single 360° customer view needed to
deliver personalized services, products, and experiences at the right time through the right channels.

TCS Customer Intelligence & Insights™ (CI&I) is an AI-driven customer analytics and real-time CDP solution that
leverages data for actionable insights so organizations can deliver personalized experiences that build customer loyalty and
increase lifetime value.

CONCEPT OF PERFORMANCE APPRAISAL SYSTEM OF TCS

IMPORTANCE OF PERFORMANCE APPRAISAL OR PERFORMANCE MANAGEMENT:
 Every employee gets the feedback from superior about the work done or tasks completed.
 Deficiencies of employees are known individually.
 It is the only prominent tool based upon which promotion, compensation, transfer or layoff decisions are taken.
 It helps in framing the content required for Human Resource Planning.
 Generally, employees are counseled after receiving appraisal which benefits them to perform better.
 Employees are motivated by constructive appraisal formats.
 Flow of communication improves through the process of Performance counseling
 It gives a good estimate of employee’s potential and has scope to set future goalsbased on one’s capability.
 A critical appraisal gives chance for employees to rectify their mistakes.
 It assesses the need of training or whether employee is eligible to get trained.
 Methods of Performance Appraisal System (PAS)
In traditional methods
 Essay appraisal method considers examples and evidences which are factual- based. Straight ranking doe
comparative evaluation whereas paired comparison makes each employee to be compared with all othe
employees. Critical incidents method judges by observing the performance during critical incidents given. I
field review method, superior employee trains the supervisor about how to evaluate their workers. Checklis
contains statements with yes or no answer for judging job performance.
 Graphic rating scale suggests for quality and quantity of work to be marked on a
Rating scale. In bell curve or forced distribution, all employees are distributed in fixed categories whil
comparing with each other.
In modern methods,
 Assessment center method assesses an employee by assigning a role in job if he/she is given promoted. Usuall
this method is used for assessing the need of training and development of employees. Behaviorally Ancho
Rating scale is a combination method of critical incident method as well as graphic rating method. HR
accounting method defines performance as the difference of contribution to the company and cost incurred fo
the employee. 360 degree feedback method takes the appraisals from himself/ herself, superior, sub-ordinate an
peer group.

 In Management By Objectives, employees set their own goals with their superior
Which in parallel to set the standard performance which can be reference to the actual performance
FUTURE TRENDS IN PERFORMANCE APPRAISAL PRACTICES
The world of performance management is drastically changing from what it was just a decade ago. Of age, data-base
methods of evaluation have confirmedthemselves unproductive. It is hard to believe that 90 % of HR professionals don’t believ
performance ratings are effective. The different trends already adapted by leading companies and to be adapted by other companie
re as follows:
 Regular check-ins, supported by frequent feedback (both positive and constructive) replacing the annua
performance appraisal is adapted by Adobe.
 A weekly check-in of every team leader with every team member discussing the near-term work and prioritie
along with comment on recent work and provide coaching as well ad quarterly reviews instead of once-a-yea
performance reviews, 360 degree feedback and objective cascading is followed in Deloitte.
 A frequent feedback and regular conversations called „touch points‟ to review progress against agreed near-term
goals supported by online and mobile app enabling employees to capture progress against their goals, giv
feedback to peers and request is now implemented by General Electric by eliminating the rank and yan
system(in which least performed employees 10% were fired).
 Accenture have decided to put frequent feedback and conversations at the heart of their new process, and focu
on performance development, rather than performance rating and disbanded their ranking and once-a-yea
evaluation process.
 Cargill, the US food producer and distributor, removed performance ratings and annual review forms an
instead focused on managers having frequent, on-the- job conversations and giving regular, constructiv
feedback with a different terminology 'Everyday Performance Management' including sharing success tips
rewarding managers of best practices and building skills with feedback and coaching.
 In line with the abandonment of performance ratings, companies are setting more regular objectives with shorte
time frames.
 Paul Hamerman, Vice President and a principal analyst at Forrester Research, has predicted that a shift to th
cloud and increased use of software will be a big part of the future of performance management.
 A focus on gender bias to reduce the discrepancies in feedback because of gender.
CHALLENGES FACED IN IMPLEMENTING THE PERFORMANCE MANAGEMENT
Challenge 1 Lack of Alignment
The first challenge is the lack of alignment due to various organizational processes being created in isolation. The lin
between Strategy development, budgeting and operational planning is developed by different groups of people with differen
rameworks being used. The performance management system lacks alignment between individual performance, departmenta
performance and organizational delivery and so all systems default back to financial measurements.
Challenge 2 Lacks of Measurements
The second challenge happens at various levels of the organization in that poor measures are developed, in many cases target
are set but no relevant measure is put in place. In other cases no data can be collected or is kept as evidence to track
performance.
Challenge 3 Leadership and Management commitment
The Leadership and Management challenge has a huge impact on integrating and aligning a management system to deliver
comprehensive performance management system. The commitment and understanding of leadership and management of th
equirements for achieving a workable performance system is critical to performance success.

Challenge 4 Managing of the performance system

Managing a performance system in an organization requires a disciplined framework; it requires the organization to work of
one master plan broken down into relevant parts and areas of responsibility. The management responsibility at various level
needs to understand the contracting, measurement development and appraisal process very well and apply it consistently
Secondly management needs to appreciate that performance management is not an event but something that is managed dail
but recorded and reported at certain times through reviews and appraisals.
Challenge 5 Managing poor performances
The management of poor performance is normally a reactive action, but in many cases it is delayed and therefore turns into
discussion that is difficult to make relevant. Another reason poor performance is not managed on time is the lack of valid
measurements and the collection of required evidence and measurement data.

PERFORMANCE APPRAISAL PRACTICES IN TCS

TCS is a subsidiary of Tata Sons Group. It was found in 1868 by Jamshedji Tata. It generates 70% revenues of Tata Sons i.e
about US$103.5 billion. In 2015, TCS is ranked 64th overall in the Forbes World's Most Innovative Companies. It employ
660,000 people. The performance appraisal for these employees is done as follows: Even TCS has been in the process o
ransforming from Forced Distribution model to continuous feedback. In forced distribution, every appraisee is provided wit
a goal sheet which contains 15 to 20 goals (based on his/her experience and profile) which are rated out of 5 by appraiser and
attendance of project as well as technical trainings. Average score of these ratings is done for aggregate rating. According t
he aggregate rating obtained, employee is put into A, B, C or D categories. For suppose, 20 members in a group for a projec
are to be evaluated, the project leader or project manager rates them and put 2 in A, 6 in B, 8 in C and 4 in D categories based
on the rating scores. While rating appraisee, it is also observed for them meeting with Subject Matter Experts. The pay hik
tarts from 0% for D to 12 -14% for A. The hike is based on Gross Pay. This forced ranking model is done twice in a year and
pay is increased once in a year by rating and categorization basis. Appraiser for entry level employees is team leader o
project manager. Continuous feedback has more transparency when compared to the above model implemented. Appraise
would be willing to share the feedback and appraisee can ask to know the lacking KPAs in the appraisal sheet. Here, th
eedback is provided for each quarter of financial year. Feedback here is given by considering individual ability and no
compared with any other which has a better scope for self-improvement of skills and lacking areas of performance.

TCS abandons bell curve based

 360 Degree Feedback
TCS Plan to Adopt New Appraisal System
A performance appraisal (PA) which is also referred to as a performance review, performance evaluation, and (career)
development discussion or employee appraisal is a metl1od with which the job performance of an employee is documented
and also evaluated. Performance appraisals are an integral part of career development and consist of regular reviews of
employee performance within organizations. Tata Consultancy Services (TCS) is rethinking its appraisal system for its 3,
70,000 plus employees after scrapping the Bell Curve model.
As the Indian IT sector shifts away from the relative ranking of its 3 million employees, the leading companies are bringing
in new models.According to one TCS executive with knowledge of the manner, there will be separate appraisal systems for IT
employees and BPO employees and the company is even looking at how senior executives should be appraised. This is all in the
testing phase now. Nothing firm has been decided.
IT services companies of India across the globe will keenly watch how TCS manages its appraisal system, given the scale
of the exercise. KPMG, Microsoft, Accenture and Deloine have abandoned the Bell Curve, a performance rating system
that requires managers to rank their employees against each other. TCS is looking forward to adopt a system of continuous
feedback, a goal that may be hard to achieve given the number of employees.
Earlier it was reported that TCS was building a technology platform to manage the process of regular feedback. The TCS
executive announced that the company will modify an existing platform for its IT appraisals, while for the BPO employees
it would be more of a social media system.
Earlier in this month a subset of employees received an email detailing the above modifications. A per the email this is
witl1 reference to certain changes being introduced in the Performance Management System. The stage-wise timelines for
appraisal process has been discontinued last year to encourage the continuous feedback.

ANALYSIS AND INTERPRETATION

1. Awareness with the current performance appraisal system of TCS

Yes 20
No 10

[Source -Google]
This pie chart is shows about 67% of employees are aware of current performance appraisal system. And about 33% are
not aware of current performance appraisal system. Awareness of performance appraisal system motivates to do the people
in a better way. Therefore, it is necessary that the management make all the employees aware of their appraisal system.

2. Performance appraisal of employees is assessed by-

The data resolves around 30 individuals to whom a set of questions were interrogated to properly understand the
performance appraisal system that is being carried out in different ways. And they were assessed in the form of points,
marks, and grade, not aware.

3. Task setting y appraise and appraiser provides objective while appraising the performance appraisal of the
appraise
About 9 of employees agree that task setting provides objectives in appraising their performance. And 12 of employees are
partially agreed with the statement and about 9 of the employees are neutral and 0 of the employees are disagree and not
filled the requirement.

5. Whether the quarterly task setting assignment completed by the 15 th of first month of each quarter. If no give
reasons.

About 18 employees says yes for completing quarterly task setting in time, rest due to some reason it’s not completed in
time such cases lack of seriousness & ambiguity.12 of employees says no for completing quarterly task setting in time.

5 Self appraisal system proves to be effective while appraising the appraise

 Agree 8
Partially agree 13
Disagree 9
Neutral 0

About 2 of employees are agreeing with the self-appraisal system. 13 of employees are partially agreed and 9 of employees
are disagreeing and rest neutral is 0.
6. Skill possessed by an appraiser varies as they move from one grade to another
Agree 11
Partially agree 15
Neutral 4
Disagree 0

Appraisers Skills

[source-google]
About 11 of employees are agreed, 15 of employees are partially agree and some 4 of employees are neutral
and rests 0 of employees are not agreed with the shift in grade.
7. Are employees getting regular feedback on your performance from your appraisal?
 YES 25

NO 5
Feedback on performance appraisal

NO
17
%

YES
83
%
About 25 of employees are getting regular feedback on their performance and 5 of employees are not getting regular
feedback.

8. Feedback is beneficial for improving employees’ performance

Agree 20
Partially agree 10
Neutral 0
Disagree 0

[Source-Google]

20 of employees agree that feedback is beneficial for improving their performance. And about 10 of employees
are partially agree and rest neutral and disagree category of employees is 0.

9. Current performance appraisal system is an effective tool for evaluating the employee’s performance.

Agree 18
Partially agree 8
Neutral 4
 Disagree 0

[Source -Google]
18 of the employees accept that current PAR is an effective tool for evaluating the employee’s performance. 8
employees are partially agree with this 4 are being neutral opinion. This speaks the unawareness of the role of
their appraisal all employees are not agreeing performance appraisal as an efficient tool.

10. Does performance appraisal system reflect the training and of an employee

YES 24

NO 6

NO
20
%

YES
80
%

[Source -Google]
About 24 of employees accept that current PAR system reflects the training need. Through employees feel that
their training needs are arrived at but training is not provided to the fullest extent.

11. The existing performance appraisal system ensures due recognition talented employees in terms of
promotion, rewards and other.
 Agree 18

Partially agree 8

Neutral 4

Disagree 0

[Source Google]

18 of employees acceptable PAR system ensure due recognition talented employees in term of promotion, reward
and others and 8 are partially agree and 4 are neutral and 0 are disagree.

12. Are you satisfied with the current performance appraisal system?

YES 28

NO 2

SATISFACTION ON PERFORMANCE APPRAISAL

NO
7%

YES
93%

[Source- Google]
About 93% of the employees are completely satisfied with the current performance appraisal system.

FINDINGS, SUGGESTION&CONCLUSION

FINDINGS
 Presence of a firmly implemented career plan good sense of growth.
 High proportion of routine work – during training and immediately after.
 Organization climate :-
 Well analyzed goals are set.
  Goods and effective performance appraisal strategies applied.
 All the strategies are fair and objective.
 The employees are well aware of what is expected of them.
 Proper feedback is not given to the management staff.
 Suggestions and innovation are not rewarded.
 Supervisors are patient with the employee’s problem.
 Good performance leads to annual increments and performance.
 Training and development programs are not very effective and helpful.
 The purpose of performance appraisal system followed in the company is fulfilled.

SUGGESTION
 Transparent career planning for all employees.
 Informal calling as and when they need.
 Giving chance in decision making.
 Reward for employees work.
 Proper interactions with seniors.
 Effective training and development programs should be held.
 Improve competency of the workers.
 The company should concentrate more on individual development
 Not every goal is appropriate for a performance management setting. Goals that aren’t
clearly defined can become bogs to get stuck in rather than opportunities for success.
Following the guidelines to SMART goals can be incredibly helpful.
 Offering training for employees

 Performance management is an amazing tool to target employee weaknesses, but an

organization needs to be willing to offer training for employees to improve and move
forward. The same goes for managers – organizations should offer managers training in
the skills that are critical to good leadership – communication skills, listening techniques,
how to offer feedback, and how to avoid the pitfalls of reviewing an employee.

CONCLUSION

Appraisal in the organization is an effective tool to strengthen human resources, since it is on continuous basis.
Performance appraisals in Tata Consultancy Services are satisfactory for its effective management and evaluation of
staff. Appraisals here are helping individuals to develop, improve organizational performance, and feed into business
planning. Performance appraisals enable management in monitoring of standards, agreeing expectations and
objectives, and delegation of responsibilities and tasks. Staff performance appraisals also establish individual training
needs and enable organizational training needs analysis also establish individual training needs and enable
organizational training needs analysis and planning. 90 degree appraisal system or review is being followed in Tata
Consultancy Services i.e. feedback that comes from members of an employee’s immediate work circle most often ,
360- degree feedback will include direct feedback from an employee’s subordinates, peers and supervisor(s), as well
as a self- evaluation. It can include, in some cases, feedback from external sources, such as customers and suppliers or
other interested stakeholders. Employees of the organization are quiet familiar with the appraisal techniques used and
are aware of the need for the same. TCS has conducted performance appraisal in a very fair and equitable manner
which encourages the employees to work hard and efficiently for own development and growth of the company.
Appraisal process is continuous which encourages employee productively with positive feedbacks.