INTRODUCTION

Human Resources Management:

Human Resource Management (HRM) is the function within an

organization that focuses on recruitment of, management of, and providing
direction for the people who work in the organization. Human Resource
Management can also be performed by line managers.

Human Resource Management is the organizational function that deals

with issues related to people such as compensation, hiring, performance
management, organization development, safety, wellness, benefits, employee
motivation, communication, administration, and training.

Human resource management (HRM) is the strategic and coherent approach to

the management of an organization's most valued assets - the people working there
who individually and collectively contribute to the achievement of the objectives
of the business.The terms "human resource management" and "human resources"
(HR) have largely replaced the term "personnel management" as a description of
the processes involved in managing people in organizations. In simple words,
HRM means employing people, developing their capacities, utilizing, maintaining
and compensating their services in tune with the job and organizational
requirement.

Human Resources Development:

Human Resource Development (HRD) is the framework for helping

employees develops their personal and organizational skills, knowledge, and
abilities. Human Resource Development includes such opportunities as employee
training, employee career development, performance management and
development, coaching, mentoring, succession planning, key employee
identification, tuition assistance, and organization development.
The focus of all aspects of Human Resource Development is on
developing the most superior workforce so that the organization and individual
employees can accomplish their work goals in service to customers.
Human Resource Development can be formal such as in classroom
training, a college course, or an organizational planned change effort. Or, Human
Resource Development can be informal as in employee coaching by a manager.
Healthy organizations believe in Human Resource Development and cover all of
these bases.

Performance Appraisal System:

Performance appraisal refers to all the formal procedures used to evaluate an

individual, his contributions and potential. In other words, it is to plan and measure
the performance of an individual in terms of the requirement of the job or it is a
process of finding out how effective the organization has been at hiring and
placing an employee.

Performance appraisal is a formal system of review and evaluation of individual or

team task performance. While evaluation of team performance is critical when
teams exist in an organization, the focus of performance appraisal in most firms
remains on the individual employees. Regardless of the emphasis, an effective
appraisal evaluates accomplishments and initiates plans for development, goals and
objectives.
performance appraisal. Employee assessment is one of the fundamental jobs of
HRM. But not an easy An organization’s goals can be achieved only when people
put in their best efforts. How to ascertain whether an employee has shown his or
her best performance on a given job? The answer is one though.

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.

In simple terms, performance appraisal may be understood as the assessment of

an individual's performance in a systematic way, the performance being
measured against such factors as job knowledge, quality and quantity of output,
initiative, leadership abilities, supervision, dependability, co-operation, judgment,
versatility, health, and the like. Assessment should not be confined to past
performance alone. Potentials of the employee for future performance must also
be assessed.

Performance' appraisal is a formal structured system of measuring and evaluating

an employee’s job related behaviors and outcomes to discover how and why the
employee is presently performing on the job and how the employee can perform
more effectively in the future so that the employee organization and society all
benefit.
 OBJECTIVES OF THE STUDY

Data relating to performance assessment of employees arc recorded, stored. and

used for seven purposes. The main purposes of employee assessment are:

1. To effect promotions based on competence and performance.

2. To confirm the services of probationary employees upon their completing the

probationary period satisfactorily.

3. To assess the training and development needs of employees.

4. To decide upon a pay raise where (as in the unorganized sector) regular pay
scales have not been fixed.

5. To let the employees know where they stand insofar as their performance is
concerned and to assist them with constructive criticism and guidance for the
purpose of their development.

6. To improve communication. Performance appraisal provides a format for

dialogue between the superior and the subordinate, and improves understanding of
personal goals and concerns. This can also have the effect of increasing the trust
between the rater and the ratee.

7 . To determine whether HR programmes such a selection, training, and transfers

have been effective or not.

8. To study the need and importance of performance appraisal.

9. To summarize and find certain suggestions for the impotent of Performance

Appraisal system in the company.

10.To make data analysis and interpretation based on the perception of the
employee in the organization.
 SCOPE OF THE STUDY

Appraising the performance of individuals, groups and organizations is a

common practice of all societies. While in some instances these appraisal
processes are structured and formally sanctioned, in other instances they are an
informal and integral part of daily activities. Consciously of unconsciously
evaluate our own actions from time to time. In social interactions, performance is
conducted a systematic and planned manner to achieve widespread popularity in
recent years.

Performance appraisal is essential to understand and improve the

employee's performance through HRD. In fact, performance appraisal is the basis
fore HRD. It was viewed performance appraisal was useful to decide upon
employee promotion / transfer salary determination and the like. But the recent
developments in human resources management indicate that performance appraisal
is the basis for employee development. Performance appraisal indicates the level
of desired performance level, level of actual performance and the gap between
these two. This gap should be bridged through human resources development
techniques like training executive development etc.

According to the past survey it was noticed that the performance

appraisal system in this company was not up to the mark. Hence there would be
scope for giving few suggestions as per my knowledge to improve the performance
appraisal system which was quite essential for the better performance of the
employees.
Limitations of Study

As the study revolves around the performance appraisal of human resources

aspects the overall organization performance cannot be ascertained. In spite of
giving honest and sincere efforts there are several limitations, which are as follows:

 The period of study is only for some days, which is a major constraint.

 The perception bias or attitude of the respondents may also act as hurdles to
the study.

 The study is only confined to performance appraisal.

 The study cannot be oriented with all HRM practices followed by

 TATA CONSULTANCY SERVICES LTD because of the paucity of time

requirements.

 The sample size taken for the research is small due to the constraint of time.
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 the flexible global business practices that
today enable companies to operate more efficiently and produce more value.

They commenced operations in 1968, when the IT services industry didn’t exist as
it does today. Now, with a presence in 34 countries across 6 continents, & a
comprehensive range of services across diverse industries, they are one of the
world's leading Information Technology companies. Seven of the Fortune Top 10
companies are among our valued customers.

They are part of one of Asia's largest conglomerates - the TATA Group - which,
with its interests in Energy, Telecommunications, Financial Services, Chemicals,
Engineering & Materials, provides us with a grounded understanding of specific
business challenges facing global companies.

As we move into an era of e-business where IT professionals will interview

employers so stringently that 40 percent employers will miss recruitment goals
(source: Gartner Group), 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 defies
traditional roles and responsibilities.

The TCS-HR group operates with technical experts to create a synergy which is
enviable. Figure 1 illustrates the role of HR, which evidently 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 Herculean task but the smoothness of operations is intriguing. The
HR structure, which allows flexibility and empowerment, is the solution.

“A poor performer is not always a poor performer for life,” says S Padmanabhan,
executive vice president, global human resources, Tata Consultancy Services
(TCS).

The Rs 9,749-crore InfoTech major has 45,000 employees on its rolls. Close to 90
per cent of the company’s income flows in from outside India. And the bulk of its
employees work across TCS offices in 34 countries and on-site in more than 50
countries. For most of them, the supervisor changes every time a project changes.
Given that no two projects — or, for that, matter, no two bosses — are alike,
performance appraisal must be a nightmare. Or is it?
RESARCH METHODOLOGY

Research in common parlance refers to a search of knowledge. According to Wall

man(2005), research is not just about gathering facts without purpose, or
presenting information or data without interpretation. Rather, research is something
which is undertaken to find out things in a systematic manner where data is
collected and interpreted systematically and there is a clear purpose guiding the
enquiry (Saunders, Lewis &Thorn hill, 2009)

Methodology refers to the methods that researcher used in order to conduct a

research to attain the objectives. This chapter will describe the exact steps that will
undertake to address the hypothesis and research question. The aim of this chapter
is to provide a complete description of the specific steps to be followed,
insufficient detail to allow reader to replicate the research. It is also beneficial and
important part to achieve effective and appropriate finding in any research

Collection of data is an essential part of each research. If the data is not appropriate
and suitable, the results of the research are vault to be misleading. The collection
of data is based on the area for which it is to be collected. The researcher has to
decide which methods is to be used and in what order to study the problem;
whether it is questionnaire, an interview schedule, a case study or observation
method or a combination of any of these. The person collecting the data is
similarly imperative. He must be fair, intelligent and polite to respondents so that
they can satisfyingly part away with the information.

After the objective of the study has clearly stated, the next step in formal
research project is to determine the source from which the data is required to be
collected. The data collection is an interesting aspect of the study achieving data
effectively the information consists of two types of data. The diagram is as
follows:

Data collections:

a) Primary data:

The primary data are those, which are collected freshly and for the first time,
from the employees directly. It is collected through the following methods.

1. Questionnaire: A structure of questionnaire was prepared and distributed

among the employees and workers.

2. Interview: Personal interviews and interaction with the employees

and contractor labour.

3. Observation: By observing the working environment.

b) Secondary data:

The secondary data are those which have already been collected by someone or
else which have been passed through statistical process. Sources of secondary data
can be categorized into two broad categories named published and unpublished
statistics. Various sources are available namely books, synergies monthly
(Chakaravahini) books etc. and also collected from various sources.

Size:

A sample of 50 employees has been selected .Although it looks to be a

small sample keeping in view the large number of employees it has to be
limited because of time constraint . Even then the sample size is not
considered to be small. It is enough to draw conclusions.

Type:

Since employees from all levels namely the top level, the middle level, and
the lower level are bound to experience stress, the sample has to include
employees from all levels. Stratified random sampling technique was
selected while preparing questionnaire as this was the only technique that
helped to draw conclusions accurately.
 METHODS OF DATA COLLECTION

Numerous methods have been devised to measure the quantity and quality of
performance appraisals. Each of the methods is effective for some purposes for
some organizations only. None should be dismissed or accepted as appropriate
except as they relate to the particular needs of the organization or an employee.

Broadly all methods of appraisals can be divided into two different categories.

 Past Oriented Methods

 Future Oriented Methods
 Past Oriented Methods
1. Rating Scales: Rating scales consists of several numerical scales
representing job related performance criterions such as dependability, initiative,
output, attendance, attitude etc. Each scales ranges from excellent to poor. The
total numerical scores are computed and final conclusions are derived.
Advantages – Adaptability, easy to use, low cost, every type of job can be
evaluated, large number of employees covered, no formal training required.
Disadvantages – Rater’s biases
2. Checklist: Under this method, checklist of statements of traits of employee
in the form of Yes or No based questions is prepared. Here the rater only does
the reporting or checking and HR department does the actual evaluation.
Advantages – economy, ease of administration, limited training required,
standardization. Disadvantages – Raters biases, use of improper weighs by HR,
does not allow rater to give relative ratings

3. Forced Choice Method: The series of statements arranged in the blocks of

two or more are given and the rater indicates which statement is true or false.
The rater is forced to make a choice.
 5. Critical Incidents Method: The approach is focused on certain critical
behaviors of employee that makes all the difference in the performance.
Supervisors as and when they occur record such incidents. Advantages –
Evaluations are based on actual job behaviors, ratings are supported by
descriptions, feedback is easy, reduces recency biases, chances of subordinate
improvement are high. Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback may be too much and
may appear to be punishment.
6. Behaviorally Anchored Rating Scales: statements of effective and
ineffective behaviors determine the points. They are said to be behaviorally
anchored. The rater is supposed to say, which behavior describes the employee
performance. Advantages – helps overcome rating errors. Disadvantages –
Suffers from distortions inherent in most rating techniques.
7. Field Review Method: This is an appraisal done by someone outside
employees’ own department usually from corporate or HR department.
Advantages – Useful for managerial level promotions, when comparable
information is needed, Disadvantages – Outsider is generally not familiar with
employees work environment, Observation of actual behaviors not possible.
Future Oriented Methods
1. Management By Objectives: It means management by objectives and the
performance is rated against the achievement of objectives stated by the
management. MBO process goes as under.
 Establish goals and desired outcomes for each subordinate
 Setting performance standards
 Comparison of actual goals with goals attained by the employee
 Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may result in
setting short-term goals rather than important and long-term goals etc.

2. Psychological Appraisals: These appraisals are more directed to assess

employees potential for future performance rather than the past one. It is done in
the form of in-depth interviews, psychological tests, and discussion with
supervisors and review of other evaluations. It is more focused on employees
emotional, intellectual, and motivational and other personal characteristics
affecting his performance. This approach is slow and costly and may be useful for
bright young members who may have considerable potential. However quality of
these appraisals largely depend upon the skills of psychologists who perform the
evaluation.
3. Assessment Centers: This technique was first developed in USA and UK in
1943. An assessment center is a central location where managers may come
together to have their participation in job related exercises evaluated by trained
observers. It is more focused on observation of behaviors across a series of select
exercises or work samples. Assesses are requested to participate in in-basket
exercises, work groups, computer simulations, role playing and other similar
activities which require same attributes for successful performance in actual job.
The characteristics assessed in assessment center can be assertiveness, persuasive
ability, communicating ability, planning and organizational ability, self confidence,
resistance to stress, energy level, decision making, sensitivity to feelings,
administrative ability, creativity and mental alertness etc.

4. 360-Degree Feedback: It is a technique which is systematic collection of

performance data on an individual group, derived from a number of stakeholders
like immediate supervisors, team members, customers, peers and self. In fact
anyone who has useful information on how an employee does a job may be one of
the appraisers. This technique is highly useful in terms of broader perspective,
greater self-development and multi-source feedback is useful. 360-degree
appraisals are useful to measure inter-personal skills, customer satisfaction and
team building skills. However on the negative side, receiving feedback from
multiple sources can be intimidating, threatening etc. Multiple raters may be less
adept at providing balanced and objective feedback.