PRESENTED BY :-

DEBANGAN DAS (17006)

&
WAIBHAV KRISHNA AGRAWAL (17027)
 PERFORMANCE APPRAISAL OF TCS

What is Performance Appraisal?

 Performance Appraisal (PA) is the process that is used to evaluate the personality, performance
and potential of the employees of an organization.
 It is a process of evaluating and communicating to an employee how he or she is performing
the job and establishing a plan for improvement.
 Hence, it is a system of review and evaluation of job performance to assess accomplishments
and to evolve plans for development.
Recognition at TCS
Tata Consultancy Services Limited (TCS) is a global IT services, business solutions
and outsourcing company. Its a subsidiary of the Tata Group. It is Ranked 20 in the list
of top companies of India, by Fortune India 500magazine. 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 -
 Financial perspective - contribution in terms of revenue growth, cost reduction and
improved asset utilization.
 Customer perspective - Looks at the differentiating value proposition offered by the
employee.
 Internal perspective -Refers to the employee’s contribution in creating and
sustaining value.
 Learning and growth - are self-explanatory.
TCS can review and design incentive plans which could include any of the following:
• Annual Bonus Plans
• Short-term Incentive Plans
• Long-term Incentive Plans
• Equity Incentive Plans
TCS adopted ECONOMIC VALUE ADDED MODEL to focus on continuous improvement rather than short
term goals and also to motivate employees. EVA measured operating and financial performance of the
organization and the compensation of all employees was linked to it. It has 4 M’s –
 Measurement
 Management System
 Motivation
 Mindset

SUGGESTION’s
• From our point of view, BALANCE SCORECARD is not the good method. It does not give the clear picture
of how performance management process is done.
• I should suggest that EVA model should be removed because it mainly concentrated on return on investments,
due to which the growth of TCS could be restricted.
• Attrition Rate is more in IT Industry.
• Should get some good management ideas.
 PROCESS

Setting
Communicating
performance
standards
standards

Taking
corrective Measuring standards
actions

Comparing
Discussing results
standards
 METHODS OF PERFORMANCE APPRAISAL

Traditional Methods Modern Methods

1. Paired comparison 1. Assessment Center

2. Graphic Rating scales 2. Appraisal by Results or
3. Forced choice Description Management by
method Objectives
4. Forced Distribution Method 3. Human Asset
5. Checks lists Accounting
6. Free essay method 4. Behaviorally Anchored
Rating scales
7. Critical Incidents
5. 360 Degree Appraisal
8. Group Appraisal
9. Field Review Method
10.Confidential Report
11.Ranking
Conclusion
• Performance Appraisal has a beneficial effect on both the persons doing
the appraisal and being appraised
• The Appraisal brings prominently to the attention of supervisors or
executives the importance of knowing their subordinates as human resource.
• The necessity of performance appraisal leads the appraiser to a thoughtful analysis
of people rated and tends to make him more alive to opportunities and responsibilities
in developing the subordinates
 P-CMM (PEOPLE CAPABILITY MATURITY MODEL )

 The concept that is very close to the heart of the HR group and one that has seen mass appeal is the PEOPLE CAPABILITY MATURITY
MODEL or the P-CMM.

 TCS has been the first company in India to be visited by the author of P-CMM - Dr. Bill Curtis.
 The five stages of the People CMM framework are:
 The five stages of the People CMM framework are:

 P-CMM - Initial Level (Typical characteristics: Inconsistency in performing practices,
Displacement of responsibility, Ritualistic practices, and Emotionally detached
workforce).

 P-CMM - Managed Level (Typical characteristics: Work overload, Environmental
distractions, unclear performance objectives or feedback, Lack of relevant knowledge,
or skill, Poor communication, Low morale)

 P-CMM - Defined Level (Although there are performing basic workforce practices, there
is inconsistency in how these practices are performed across units and little synergy
across the organization. The organization misses opportunities to standardize workforce
practices because the common knowledge and skills needed for conducting its business
activities have not been identified)
The five stages of the People CMM
framework are:
 P-CMM - Predictable Level (The organization manages and exploits the
capability created by its framework of workforce competencies. The
organization is now able to manage its capability and performance
quantitatively. The organization is able to predict its capability for performing
work because it can quantify the capability of its workforce and of the
competency-based processes they use in performing their assignments)

 P-CMM - Optimizing Level (The entire organization is focused on continual

improvement. These improvements are made to the capability of individuals
and workgroups, to the performance of competency-based processes, and to
workforce practices and activities. The organization uses the results of the
quantitative management activities established at Maturity Level 4 to guide
improvements at Maturity Level 5. Maturity Level 5 organizations treat change
management as an ordinary business process to be performed in an orderly
way on a regular basis)