Performance & Reward Systems

Analysis

INTRODUCTION C O N T E N T S EXISTING SYSTEM REWARD INTAKES CHRONOLOGY PROCEDURE HIERARCHY CHALLENGES FACED ACTION PLAN IMPACT SUMMARY .

• Annual employee attrition rate was 12.6% for FY 2011-12. Objectives of Goal setting • Enables employees to realize about their contribution TRACKS THE ACHIEVEMENT OF EMPLOYEES ON THE BASIS OF TARGETS AT FOUR LEVELS Factor taken care during the goal setting process • Financial Perspective • Objectives • Internal Perspective • KPIs/ Measures • Customer Perspective • Targets • Learning and Growth • Initiatives .Performance Evaluation in TCS • TCS spends 6-7% of its total annual sales on training & Rewards.

Trainings are organized : focus on goal setting. Employee Assistance Program Leadership Review Management Career Hub INSPIRE . fair evaluation.Existing Framework Features Regular Feedback throughout the year: goal & behaviour. giving feedback and handling difficult reactions Workshops to perform the responsibilities Digitized PMS: 95% done online.

 Corresponding to the project performance band rating from A –E. E D C B A 1 2 3 4 5 .  Rating from 1-5 for non project activities.Rating Process  Half yearly basis – H1 & H2  Basis of that employee gets a band which is in correlation with the ratings.  Rating is calculated on a percentage basis on completion of goals.

Process Timeline Month Process April Goal Setting Method       April mid Starts working towards achieving goals   Discussion with  immediate superior. Can opt for trainings to increase specific skills/competencie s. In case of goals to achieve specific skills gets enrolled for training programs.  Goal sheet send to HR of respective enrolled project. In case of . Send to next superior for record keeping and giving feedback.  Quantifying measures Weightage given to each goal based on corporate guidelines. Feedback given whenever required. Review process with immediate superior. Goals set. Process takes 15 days to complete Continuous evaluation  by immediate superior.

 performance based on parameters/goals set in April Evaluation done based on performance in Project  Immediate superior gives  comment on the given ratings and puts his ratings irrespective of what the employee’s ratings. HR manager collects all the ratings of the employees who are in the project and gives the final rating/band on the basis of normal distribution or curve distribution . Ratings are in the range of 1-5 Completion of Trainings  Next superior reviews the process and gives ratings on the basis of ratings given by the immediate superior  After completion of individual rating.Process Timeline August Mid-Year Rating  Employee gives rating on self.

Reward Rating Process Project Rating is based on BAND determined by normal distribution Non Project rating is based on 1-5 rating .

For example ASE SE Direct Promotion to second level possible if “Outstanding” in two consecutive years .Mid Level Hierarchy • • • Promotion rewards  Hierarchy based Ratings satisfactory then only promoted.

process and timeline) • Compliance is given importance rather than coaching mentality • Primarily Bi-annual focussed system • Immediate superiors as goal setting mentors • Ratings given on the basis of number of people in the Project .Challenges faced • Attrition rate increases • Assessment focussed and subjective system • Largely process driven (Template used.

Action Plan for Improvement TCS Performance Management Dashboard 1 2 Components Dashboard       Compliance Targets Utilization Percentage Mandatory Trainings Communication Training hours Learning Hours Firm Initiative Hours 3 4 5 of Rating System Mid-Year Rating Year End Rating Feedback System • • • Project feedback Primary Feedback Provider – Project Lead Level Secondary Feedback Provider – Project Manager Level .

Performance culture driven strategy .

Real time Performance Dashborad • • • • Helps Employee identify where they stand Emails and alerts send for deadlines Suggestions for trainings to be taken based on hierarchy Self driven system .

Impact on Employees • • • Positive attitude as recognition is given Discussion driven Continuous feedback system .

high commitment to own performance and development .Advantages • Non-biased system • Single rating scale –Easier to comprehend • Goal setting framework is improved as mentors are assigned • Transparent system – Real time dashboard • System focussed on outcomes rather than compliance • Link Performance Management to Talent Management • Continuous feedback loops • Self-directed.

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