STUDENT DECLARATIONI am GARIMA BANSAL student of MBA here by declares that the summer training report titled PERFORMANCE APPRAISAL IN HCL INFOSYSTEM is completed and submitted under the guidance of Mr. Gopal Saraswat is my original work.

The imperial finding in this report are based on the data collected by me. This project has submitted to SRM-IMT, Modinagar for the purpose of compliance of requirement this examination.

GARIMA BANSAL M.B.A. IV Sem Roll No. - 3510930051

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ACKNOWLEDGEMENTPresenting a summer training project of this type is an arduous task, demanding a lot of time. I cannot in full measure appreciate and acknowledgement the kindness shown and help extended by various persons in this endeavor. I will remember all of them with gratitude. My sincere thanks are also due to Dr. N.C. Bansal (H.O.D., Management) & Mr. Gopal Saraswat, for their significant help extended for the successful completion of the project. I highly the help I got from them in providing me and lot of information regarding the functioning of this organization. I am always beholden to my God, for always being with me and showing me the right ways, my family, for always doing favors to me and my friends and colleagues consistently helped with encouragement and criticism throughout the project work, for always lifting my sights to higher vision, raising my personality beyond normal limitation and for realizing me my strengths and potential, as I did not always welcome her exhortation, try again; you can do better. But this project owes a great deal to it and so do I.

GARIMA BANSAL

PREFACE

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Todays market scenario is totally different from what it has been a few years ago. Consumers has a lot of choice for every product because day by day companies are coming up with their new and innovative products. Later there was limited choice for most of the products and companies didnt have to put much of the efforts to sell their products. But todays scenario is totally different. Consumers have choice because of availability of varieties and options. We can say todays consumer is the market ruler. So it is important to know his buying behavior and try to fulfill his demand. Companys aim should be customers delight not customers satisfaction.

This research was really good learning experience for me. I got opportunity to apply the theoretical knowledge to practical aspects of selling. What problems can arise and the way to tackle the difficulty during the sales as smartly as possible.

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CONTENTSStudent declaration Acknowledgement Preface Indian hardware industry Company profile Product profile Performance appraisal system in HCL Research methodology Objective of the study College of data Data analysis Findings Conclusions Suggestions Questionnaire 4

Bibliography

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INDIAN HARDWARE INDUSTRY AND HCL INFOSYSTEMS LTD. The year 2004 marked a turning point in the history of global trade in services, with growing acceptance of IT based global delivery model. With ever increasing availability of international bandwidth and powerful workflow management software, it is now possible to disaggregate any business process, execute the sub-processes in multiple centres around the world, and reassemble it, in near-real time, at another location. This is driving fundamental changes in the global IT services landscape; vendors and customers are redefining the levels of value creation in the industry. In the wake of changing global service landscape, Indian Information Technology (IT) and IT enabled services (ITESBPO) continue to chart remarkable growth. The Indian software and services export is estimated at Rs. 78,230 crore (US$ 17.2 billion) in 2004-05, as compared to Rs. 58,240 crore (US $ 12.8 billion) in 2003-04, an increase of 34 per cent both in rupee terms and dollar terms. This segment will continue to show robust growth in future also.

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Indian ITES-BPO sector industry continues to grow from strength to strength, witnessing high levels of activity both onshore as well as offshore. Last year witnessed vendors moving up the value-chain to offer higher-end research and analytics services to their clients. Attrition levels also remained high, between 25-40 per cent, as demand for trained talent outpaced supply. As export revenues from ITES-BPO grew from US $ 2.5 billion in year 2002-03 to US $ 3.6 billion in years 2003-04, a year-on-year growth of 44 per cent was achieved. In year 2003-04, ITES-BPO exports accounted for over 27 per cent of the total export revenue earned by the Indian IT-ITES industry. The value of ITES-BPO exports from India is expected to exceed US $ 5 billion mark in the year 2004-05.

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The Indian IT success story has also highlighted India 's attractiveness as an investment destination also beyond the IT sector. Another key impact of the global sourcing model popularized by the growth of IT-ITES has been the reversal of the brain drain as people of Indian origin (who went to pursue careers abroad), as well as young expatriates, are now attracted to work in India.

Indian IT-ITES growth has had a significant multiplier effect on the Indian economy. Apart from the direct impact on national income and employment, the sector has also contributed to the growth of several ancillary industries, a rise in direct-tax collection and an increase in consumer spend due to the significantly higher disposable incomes.

The rapid growth of ITES-BPO and the IT industry as a whole has made a deep impact on the socio-economic dynamics of the country. The sector has risen to become biggest employment generator with the number of jobs added almost doubling each year, has spawned a number of ancillary businesses such as transportation, real estate and catering, and has contributed to a rising class of young consumers with high disposable incomes.

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COMPANY PROFILE

Shiv Nadar Chairman and CEO HCL Technologies Ltd.

Ajai Chowdhry Chairman and CEO HCL Infosystems Ltd.

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HCL Infosystems Ltd is one of the pioneers in the Indian IT market, with its origins in 1976. For over quarter of a century, HCL have developed and implemented solutions for multiple market segments, across a range of technologies in India. HCL have been in the forefront in introducing new technologies and solutions. HCL Infosystems (HCLI) draws it's strength from 29 years of experience in handling the ever changing IT scenario, strong customer relationships, ability to provide the cutting edge technology at best-value-for-money and on top of it, an excellent service & support infrastructure. Today HCL is country's premier information enabling company. It offers one-stop-shop convenience to its diverse customers having an equally diverse set of requirements. Be it a large multi-location enterprise, or a small/medium enterprise, or a small office or a home, HCLI has a product range, sales & support capability to service the needs of the customer.

Last 29 years apart from knowledge & experience have also given us continuity in relationship with the customers, thereby increasing the customer confidence in us. Their strengths can be summarized as: Ability to understand customer's business and offer right technology Long standing relationship with customers Pan India support & service infrastructure Best-vale-for-money offerings Technology Leadership

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HCL Infosystems is known to be the harbinger of technology in the country. Right from their inception HCL have attempted to pioneer the technology introductions in the country either through their R&D or through partnerships with the world technology leaders. Using their own R&D, HCL have Created their own UNIX & RDBMS capability (in 80s) Developed firewalls for enterprise & personal system security Launched their own range of enterprise storage products Launched their own range of networking products HCL strive to understand the technology from the view of supporting it post installation as well. This is one of the key ingredients that go into their strategic advantage. HCL Infosystems has to its claim several technology pioneering initiatives. Some of them are: Country's first Desktop PC - BusyBee in 1985 Country's first branded home PC - Beanstalk in 1995 Country's first Pentium 4 based PC at sub 40k price point Country's first Media Center PC

Guiding Principles Vision Statement "Together we create the enterprises of tomorrow"

Mission Statement 11

"To provide world-class information technology solutions and services to enable HCLs customers to serve their customers better"

Quality Policy "We deliver defect-free products, services and solutions to meet the requirements of HCLs external and internal customers, the first time, every time"

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HCLs Objectives Management Objectives To fuel initiative and foster activity by allowing individuals freedom of action and innovation in attaining defined objectives.

People Objectives To help people in HCL Infosystems Ltd. share in the company's successes, which they make possible; to provide job security based on their performance; to recognize their individual achievements; and help them gain a sense of satisfaction and accomplishment from their work.

Core Values We shall uphold the dignity of the individual We shall honor all commitments We shall be committed to Quality, Innovation and Growth in every endeavor We shall be responsible corporate citizens

Philosophy of Quality "We deliver defect-free products, services and solutions to meet the requirements of HCLs external and internal customers, the first time, every time."

To exist as a market leader in a globally competitive marketplace, organizations need to adopt and implement a continuous improvement-based quality policy.

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One of the key elements to HCL's success is its never-ending pursuit of superior quality in all its endeavors.

HCL Infosystems believes in the Total Quality Management philosophy as a means for continuous improvement, total employee participation in quality improvement and customer satisfaction. Its concept of quality addresses people, processes and products.

Over the last 20 years, we have adapted to newer and better Quality standards that helped us effectively tie Quality with Business Goals, leading to customer and employee satisfaction.

Quality at HCL Infosystems Ltd. The history of structured quality implementation in HCL Infosystems began in the late 1980s with the focus on improving quality of its products by using basis QC tools and Failure Reporting and Corrective Active Systems (FRACAS). We also employed concurrent engineering practices including design reviews, and rigorous reliability tests to uncover latent design defects.

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In the early 90s, the focus was not merely on the quality of products but also the process quality systems. HCLs manufacturing unit at NOIDA was certified initially to ISO 9002:1994 by BVQI in 1994 and later on to ISO 9001:1994 in 1997. As of now, all HCLs manufacturing units are certified by BVQI as per ISO 9001:2000 In early 1995, a major quality initiative was launched across the company based on Philip B. Crosby's methodology of QIPM (Quality Improvement Process Management). This model was selected to because it considered the need and commitment by an organization to improve but more importantly, the individual's need towards better quality in his personal life.

Under HCLs Quality Education System program, we train HCLs employees on the basic concepts and tools of quality. A number of improvement projects have been undertaken by HCLs employees, whereby process deficiencies and bottlenecks are identified, and Corrective Action Projects (CAPs) are undertaken. This reduces defect rates and improves cycle times in various processes, including personal quality.

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We have received MAIT's 'Level II recognition for Business Excellence' for HCLs initiatives in the Information Technology Industry, adding another commendation to HCLs fold. MAIT's Level II recognition is based on the 'European Foundation for Quality Management' (EFQM), for gaining quality leadership and business competitiveness.

HCLs certifications / awards in 2003 include ISO 9001-2000 by BVQI for HCLs InfoStructure Services and award of First Prize by ELCINA (Electronic Component Industries Association) for Quality, 2002-03. The ELCINA award criterion considers two aspects. (1) Enablers (Leadership & Management commitment, Resource Management, Product Analysis & Improvement) and Results (Product Quality, Customer / Stake holder satisfaction, Business results). Realization, Measurement

The tryst for continuous quality improvement is never-ending in HCL Infosystems. We always strive to maintain high quality standards, which help us fulfill HCLs mission to provide world-class information technology solutions and services, to enable HCLs customers to serve their customers better.

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Alliances & Partnerships To provide world-class solutions and services to all HCLs customers, we have formed Alliances and Partnerships with leading IT companies worldwide.

HCL Infosystems has alliances with global technology leaders like Intel, AMD, Microsoft, Bull, Toshiba, Nokia, Sun Microsystems, Ericsson, nVIDIA, SAP, Scansoft, SCO, EMC, Veritas, Citrix, CISCO, Oracle, Computer Associates, RedHat, Infocus, Duplo, Samsung and Novell.

These alliances on one hand give us access to best technology & products as well enhancing HCLs understanding of the latest in technology. On the other hand they enhance HCLs product portfolio, and enable us to be one stop shop for HCLs customers.

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ABOUT HCLIn the early 70s, a group of young, enthusiastic and ambitious technocrats embarked upon a venture that would make their vision of IT revolution in India a reality. Shiv Nadar and five of his colleagues got together and in 1975, setup a new company called Micro comp. To start with they decided to capitalize on their marketing skill Micro comp marketed calculators and within a few months of starting operations, company was outselling its major competitors. In 1976, Micro comp approached UPSEC (Uttar Pradesh State Electronics Corporation) for help to setup a computer company. Impressed by their technical and marketing competence, UPSEC agreed to setup a joint venture. On the August 11, 1976 Hindustan Computers Limited was incorporated as a joint venture between entrepreneurs and UPSEC and with an initial equity of Rs. 1.83 Lakhs.

\ Ajai Chowdhry Chairman and CEO, HCL Infosystems Ltd.

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Source: www.hclinfosystem.com

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HCL A Snapshot The HCL Enterprise comprises two companies listed in India, HCL Technologies and HCL Infosystems. HCL Technologies is the IT and BPO services arm focused on global markets, while HCL Infosystems is the IT hardware and system integration arm focused on the Indian market. Together, these entities have uniquely positioned HCL as an enterprise with service offerings spanning the IT Services and Product spectrum.

Source: www.hcl.in

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The range of offerings span Product Engineering and Technology Development, Application Services, BPO Services, Infrastructure Services, IT Hardware, Systems Integration, and Distribution of Technology and Telecom products in India.

HCL Infosystems Ltd. (HCL Infosystems) has now become Indias one of big technology integration company. Over the years, HCL Infosystems has positioned its business operations to fulfill its vision statement Together we create enterprise of tomorrow. The overarching theme for the companys swift progression into the software and service arena, in India and globally, is evolving. Signifying a state of constant growth, the evolve theme is visible in the many ways that HCL Infosystems has undergone a metamorphosis into becoming a complete IT solutions company.

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Source: www.hcl.in

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The menu of HCL Infosystems global services broadly covers IT consulting and professional service in the area of vertical applications, technology integration, ERP implementation and software development. This also includes a complete portfolio of systems and network services for development. This also includes a complete portfolio of systems and network services for Financial Management, Helpdesks, System Supports and network and Internet Implementation. HCL Infosystems global customers include Samsung, Govt. of Singapore and AMAL Insurance, Jurong Port in Singapore, Malaysians BSN Commercial Bank, SIA, DBS Bank, Maybank Life Assurance, Charted Semiconductors, Asia Matsushita and Shell Malaysia. Some of its global customers in government sector are Inland Revenue Authority of Singapore, Civil Aviation Authority of Singapore, Singapore Power, Ministry of Education, Health and National Development, Telecom Authority of Singapore and Penang State Govt.

HCL Infosystems chosen platform of total technology integration lends itself to some very significant alliances with global leaders. Among its partner are HP for high end AISCE/UNIX services and workstation and HP open view network management solution, Intel for PC and PC server building blocks, Microsoft, Novell, SCO AG Solutions, Red Hat, Linux, Samsung, Pivota for CRM solution and ORACLE Sybase and Informix for RBMS platform.

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Key Business Associates of HCL

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ABOUT HCL FRONTLINE DIVISION

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The HCL Frontline Division of HCL Infosystems Ltd. focuses on providing solutions and value-added services to small and medium corporate, the small office/home office and the homebuyer. Involved in marketing and distributing national and international brands of computer systems and peripherals, the Frontline Division evolves innovative channel strategies to widen its market reach, and offers value added support services to users. The extensive distribution network established by the Division encompasses more than 800 resellers and close to 300 retail outlets across 300 cities. Using its unmatched strength in distribution, Frontline has big plans to increase penetration of notebooks in SOHO/SME segments. The organization plans to use its already established retail network in big way for this. It has proved its distribution might in the PC segment already where it has pioneered on several fronts, with retail being just one.

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The Division's singular mission has been to continuously anticipate and explore technologies that have emerged as strong trends and established market standards in the computing world globally, and bringing these to the Indian user in as short a time as possible. Widely recognized for opening up several frontiers of the world of computing to Indian users, the Division has partnered Dragon Systems, Inc., the world's leading supplier of speech and language technology, to introduce speech recognition tools in the country.

In Kerala the Frontline Division is represented by its state franchisee Team Frontline Pvt. Ltd.. It is an ISO 9001 certified company and an extremely customer focused IT provider.

6 S Offerings for Business Empowerment of HCL Infosystems Need In the emerging net economy, IT infrastructure Plays the role of a Powerful business enabler to improve your business processes, to help you focus on your goals and strategies and more importantly, to help you serve your customers better. IT Infrastructure demands constant change latest technology, reliable operations and high availability. Leaders like you, in the process of selecting the best of breed in technology, require integrating different solutions from various vendors. Thus a situation where you need a strong reliable and trusted partner committed to deliver beyond just services. 27

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Advantage Staying competitive in todays dynamic business environment means finding new ways to reduce costs while maximizing the value of your technology and personal resources. More than ever, your ability to "do more with less" determines how successful your organization will be. Thats why HCL Infosystems helps you achieve. By channeling our in-depth expertise gained from over 28 years of IT Domain experience. We provide a full bandwidth of services specifically designed to meet your complete IT needs. And as a single window for completing business solutions wherever you are located...

We make IT possible to save money...WE TELL YOU WHERE as well as time ...WE SHOW YOU HOW The 6 S Solutions The one stop shop solution center for all your IT needs, customized to meet and scale with your unique Business Needs. Services A range of value added services in IT infrastructure operations and management. Support Pan-India footprint of support and logistics locations. Over 260 Direct service support locations. Technically sound workforce of professionals. over 1700 certified

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Standards World Class Quality standards maintained for PPP (People, Processes & Performance). Alliance with global technology leaders. Savings We help you find new ways to reduce costs & "do more with less" by maximizing the value of your technology and personal resources, thereby reducing your total cost of ownership (TCO).

Satisfaction Complete Satisfaction for the customers through the HCL 6S offering that enables one to maximize system uptime through rapid response and resolution services, thereby optimizing your IT investments.

HCL Production Facility

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Achievements - Foundation of the Company laid 1976 - Introduces microcomputer-based programmable calculators with wide acceptance in the scientific / education community - Launch of the first microcomputer-based commercial computer with a ROM 1977 -based Basic interpreter - Unavailability of programming skills with customers results in HCL developing bespoke applications for their customers 1978 - Initiation of application development in diverse segments such as textiles, sugar, paper, cement, transport 1980 - Formation of Far East Computers Ltd., a pioneer in the Singapore IT market, for SI (System Integration) solutions 1981 - Software Export Division formed at Chennai to support the bespoke application development needs of Singapore - HCL launches an aggressive advertisement campaign with the theme ' even a typist can operate' to make the usage of computers popular in the SME (Small & Medium Enterprises) segment. This proposition involved menu1983 based applications for the first time, to increase ease of operations. The response to the advertisement was phenomenal. - HCL develops special program generators to speed up the development of applications 1985 - Bank trade unions allow computerization in banks. However, a computer can only run one application such as Savings Bank, Current account, Loans etc.

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- HCL sets up core team to develop the required software - ALPM (Advanced Ledger Posting Machines). The team uses reusable code to reduce development efforts and produce more reliable code. ALPM becomes the largest selling software product in Indian banks - HCL designs and launches Unix- based computers and IBM PC clones - HCL promotes 3rd party PC applications nationally - Zonal offices of banks and general insurance companies adopt computerization - Purchase specifications demand the availability of RDBMS products on the 1986 supplied solution (Unify, Oracle). HCL arranges for such products to be ported to its platform. - HCL assists customers to migrate from flat-file based systems to RDBMS - HCL enters into a joint venture with Hewlett Packard - HP assists HCL to introduce new services: Systems Integration, IT consulting, packaged support services (basicline, teamline) 1991 - HCL establishes a Response Centre for HP products, which is connected to the HP Response Centre in Singapore. - There is a vertical segment focus on Telecom, Manufacturing and Financial Services - HCL acquires and executes the first offshore project from IBM Thailand 1994 - HCL sets up core group to define software development methodologies 1995 - Starts execution of Information System Planning projects 32

- Execution projects for Germany and Australia - Begins Help desk services - Sets up the STP (Software Technology Park) at Chennai to execute software projects for 1996 international customers - Becomes national integration partner for SAP - Kolkata and Noida STPs set up 1997 - HCL buys back HP stake in HCL Hewlett Packard 1998 - Chennai and Coimbatore development facilities get ISO 9001 certification - Acquires and sets up fully owned subsidiaries in USA and UK 1999 - Sets up fully owned subsidiary in Australia - HCL ties up with Broadvision as an integration partner - Sets up fully owned subsidiary in Australia - Chennai and Coimbatore development facilities get SEI Level 4 certification - Bags Award for Top PC Vendor In India

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- Becomes the 1st IT Company to be recommended for latest version of ISO 9001 : 2000 - Bags MAIT's Award for Business Excellence - Rated as No. 1 IT Group in India -Launched Pentium IV PCs at below Rs 40,000

2001 -IDC rated HCL Infosystems as No. 1 Desktop PC Company of 2001 2002 -Declared as Top PC Vendor by Dataquest 33

-HCL Infosystems & Sun Microsystems enters into a Enterprise Distribution Agreement - Realigns businesses, increasing focus on domestic IT, Communications & Imaging products, solutions & related services - Became the first vendor to register sales of 50,000 PCs in a quarter

- First Indian company to be numero uno in the commercial PC market

- Enters into partnership with AMD

- Launched Home PC for Rs 19,999 2003 - HCL Infosystems' Info Structure Services Division received ISO 9001:2000 certification

- Launches Infiniti Mobile Desktops on Intel Platform

- Launched Infiniti PCs, Workstations & Servers on AMD platform 2004 - 1st to announce PC price cut in India, post duty reduction, offers Ezeebee at Rs. 17990

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- IDC India-DQ Customer Satisfaction Audit rates HCL as No.1 Brand in Desktop PCs

- Maintains No.1 position in the Desktop PC segment for year 2003

- Enters into partnership with Port Wise to support & distribute security & VPN solutions in India

- Partners with Microsoft & Intel to launch Beanstalk Neo PC

- Becomes the 1st company to cross 1 lac unit milestone in the Indian Desktop PC market

- Partners with Union Bank to make PCs more affordable, introduces lowest ever EMI for PC in India

- Launched RP2 systems to overcome power problem for PC users

- Registers a market share of 13.7% to become No.1 Desktop PC company for year 2004

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- Crosses the landmark of $ 1 billion in revenue in just nine months - HCL completes buy out of JVs with Deutsche Bank and British Telecom

2005

- Boeing inks 787 Dreamliner design deal with HCL

- HCL infrastructure ranked No.1 service provider - CMP

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MARKETING STRATEGY

Marketing Strategy can be define as a businesses approach to marketing its products or services expresses in broad terms, which forms the basis for developing a marketing plan. In other words, Marketing Strategy is nothing but a combination of decision bearing on various aspects of marketing mix elements. There are basically five Ps of marketing which play a vital role in marketing of a product and they are Product, Price, Place, Promotion and Packaging. HCL concentrated on all aspects thats the reason why HCL has a very good and efficient market not only in Ghaziabad but also in other regions of India. Product Planning HCL take good and effective decision on the faith of their existing product along with their future products. This is a continuous process, which is taken into consideration by HCLs top management.

HCL have an R&D Department, which focuses on to the continuous innovation in order to make HCL the best in todays cutthroat competition

Management Information System (MIS)

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HCL takes into consideration every bit of information and have a very strong MIS. In order to have the best knowledge about the market they study the market and to be the best among the competitors they study all the market players thoroughly like wise they collect the information regarding product, price, promotional strategy, etc. of the competitor

Market Segmentation Market Segmentation means dividing the market into distinct group of buyers keeping in mind demographics, psychographics and behavioral differences among the buyers. Who might require different products or marketing mixes?

A market segment consists of a group of people who share similar set of wants. A segment is partly a fiction, in that not everyone wants exactly the same thing. HCL has classified people into the following segments as per their living standards: Lower Middle Class Middle Class Upper Middle Class Higher Class

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Pricing Policies India a country where the price of a product can define its faith in the market, hence we can say that India is a very price sensitive market. Price refers to the value of products attributes. Expressed in monetary terms price is the value, which a customer pays to adhere or to avail a service or utility or a product At HCL, pricing policy decisions are taken by the top management after following the prices of the components and prices quoted by the competitors. After this a parallel pricing policy is developed in which: Bundles are created and products are marketed accordingly in every region. Profit margins are kept into consideration, etc. HCL gives 6 to 8 percent margin to their Channel Partners or Demo Centers, and company gets X% profit in return. HCLs main objective is service rather than profit. No doubt there is profit but pricing policy is just to meet minimum margin to have a competitive edge over the assembled PCs market. HCL believes in wealth maximization rather than profit maximization.

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HOME PCS HCL Beanstalk HCL recommends Windows XP Professional

The all-new BeanStalk Series, where performance is rivaled only with elegance of design. Customer gets superior technology and great value for money all fused into one. It comes with the super-speed Intel processor, plus SD RAM and Ultra ATA Hard Disk that gives it incredible speed.

What's more, it is upgrade friendly and so virtually future-proof. Manufactured at HCL Infosystems' state-of-the-art ISO 9001 certified plant, it is designed to outperform every other Home Computer customer have ever seen or heard about. And with more than 250 Support providers across the country, its widespread network ensures excellence in Customer Care. So go ahead and enjoy the wonder that is HCL BeanStalk, and watch, it will amaze customer for years to come.

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It is faster than the fastest home computer. The HCL BeanStalk comes equipped with the lightening fast Intel Pentium 4 processor which means customer can now get mind blowing multimedia performance from customers computer. With its high performance processor, it brings customer the Internet like no other computer can. So get ready to experience 3D graphics, virtual reality and realistic audio-video, like never before.

The HCL BeanStalk with Intel Pentium 4 processor, the centre of customers digital world, is designed to meet not just customers today's computing requirements, but also the needs of customers future. So bring home the HCL BeanStalk today and stay ahead of the rest of the world.

HCL Ezeebee HCL recommends Windows XP Professional

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The HCL Ezebee is the complete All-in-one PC brought to you by India's No. 1 IT Brand, HCL. With amazing performance and prices lower than other assembled PCs, the HCL Ezeebee is the most affordable Quality PC. HCL recommends Windows XP Professional HCL Ezeebee 4781 Celeron D 310 HCL Ezeebee 8731 Sempron 2500+ HCL Ezeebee 8731 Athlon64 3000+ HCL Ezeebee 4781 P4P 506 HCL Ezeebee 4781 P4P 524 HCL Ezeebee 4951 P4P 630

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HCL Leaptops HCL recommends Windows XP Professional

HCL introduces Leaptops with unmatched mobile power. Designed to provide superior performance, flexible connectivity and high mobility, these notebooks offer a new level of freedom and functionality to bring you the ultimate in personal productivity.

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PERFORMANCE APPRAISALOBJECTIVE OF PERFORMANCE APPRAISAL A good Performance Appraisal has following objectives: Help employee overcome his weakness & improve ones his strengths & thus enable him to improve his performance & that of the Deptt. Generate adequate feedback & guidelines form the repotting officers to the employee. Contribution to the growth & development of the employee through helping him in realistic goal setting. Help in creating a desirable culture & traditions in the organization. Help identifying employees for the purpose of motivating, training & developing them. Generate significant, relevant, free & valid information about employees. Thus, a good Performance Appraisal & review system should primarily focus an employee development.

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DEFINEDPerformance appraisal... Measuring, Evaluating, and Influencing an employees job-related attributes, behaviors and outcomes. Historically, performance appraisal was linked to material outcomes with the assumption that a cut in pay, or a rise, should provide the required impetus for an employee to either improve or continue to perform well. ...a structured appraisal system is more likely to be lawful, fair, defensible, valid and reliable performance appraisal a structured and formal interaction between a subordinate and his/her supervisor Let's begin our discussion of performance appraisal by defining the concept. Performance appraisal is a formal system of measuring, evaluating, and influencing an employees job-related attributes, behaviors and outcomes. The objective is to to determine how productive an employee is and/or to determine if an employees productivity can be improved. As such, performance appraisals serve an important purpose in managing people and meeting company goals. The tendency to make judgments about oneself or about people one is working with, appears to be both inevitable and universal. However, without a carefully structured system of appraisal and evaluation, people will judge the performance of coworkers -- subordinates, superiors, and peers -- arbitrarily and informally. This tendency to judge, without a systematic procedure, has the potential to create serious motivational, ethical 45

and legal problems within the firm. On the other hand, a structured appraisal system is more likely to be lawful, fair, defensible, valid and reliable. What is the role of performance appraisal? Performance appraisals telling subordinates how they are doing, and suggesting needed changes in behaviors, attitudes, skills, or job knowledge. Effective appraisal systems provide both evaluation and feedback the main aim of the evaluation is to identify performance gaps feedback is necessary to inform employee about those performance gaps One of the functions of performance appraisals is to ensure that people are accountable for their organizational We have seen from previous discussions, that people are one of a company's most valuable assets. While most assets depreciate over time, people, viewed as assets, may actually appreciate. One of the manager's major responsibilities is to improve and update the knowledge and skills of employees -- appreciation of assets. Performance appraisal plays a significant role as a tool and technique of organizational development and growth. In essence, effective appraisal systems provide both evaluation and feedback. The main aim of the evaluation is to identify performance gaps -- when performance does not meet the organizational standards -- whereas feedback is necessary to inform employee about those performance gaps. From the employee's perspective, performance appraisal informs them about what is required of them in order to do their jobs, it tells them how well they have achieved those objectives and helps them take corrective action to improve their performance, and, finally, it may reward them for meeting the required standards. 46

The firm, on the other hand, needs a performance appraisal system in order to establish principles of managerial accountability. Clearly, where employees are given responsibilities and duties, they need to be held accountable. One of the functions of performance appraisals is to ensure that people are accountable for their organizational responsibilities. Perhaps the most significant benefit of performance appraisals is the opportunities they provide supervisors and subordinates to have one-on-one discussions of important work issues. During appraisals, subordinates and supervisors can focus on work activities and goals, identify and correct existing problems, and encourage better future performance. Performance Appraisal and Motivation Motivational research has recognized the power of recognition as an incentive (see Maslow and the Expectancy Theory of Motivation). Performance appraisals provide employees with recognition for their work efforts. The appraisal system provides the supervisor with an opportunity to indicate to employees that the organization is interested in their performance and development. This recognition can have a positive motivational influence. on the individual's sense of worth, commitment and HCL onging. Performance Appraisal and Training and Development Performance appraisals identify performance gaps. As such, they provide an excellent opportunity for a supervisor and subordinate to recognize and agree upon individual training and development needs. Performance appraisal discussion may identify the presence or absence of work skills. Further, the need for training can be made more relevant if attaining the requisite job skills is clearly linked to performance 47

outcomes. Consolidated appraisal data can also help form a picture of the overall organizational training requirements. Performance Appraisal and Recruitment Recruitment and selection procedures need to be evaluated. Appraisal data can be used to monitor the success of a firm's recruitment and selection practices. From this data, the firm can determine how well employees who were hired in the past are performing. Performance Appraisal and Employee Evaluation Employee evaluation is a major objective of performance appraisal. Given the major functions of management -- planning, organizing, leading and controlling it is clear that evaluations (controlling) need to be done. At its most basic level, performance appraisal is the process of examining and evaluating the performance of employees. However, the need to evaluate is also a source of tension, as evaluative and developmental priorities appear to clash. Some management experts have argued that appraisal cannot serve the needs of evaluation and development at the same time. Performance Appraisal and Total Quality Management (TQM) With the advent of TQM (Total Quality Management) and the extensive use of teams, traditional performance appraisal systems have come under some criticism. For example, rather than motivating employees, conflict may be created when appraisals are tied to merit pay and when that merit pay is based on a forced ranking. W. Edwards Deming, the founder of total quality management (TQM) has long been associated with the view that performance appraisals ought to be eliminated. Many TQM 48

proponents claim that performance appraisals are harmful. However, there is no doubt that, without safeguards such as appropriate design, adequate administrative support, comprehensive job analysis / description and training for appraisers, conventional performance appraisal processes risk becoming just another of the many bureaucratic rituals supervisors and subordinates must endure. Performance Appraisal Summary Performance appraisal, while enabling a manager to identify the training needs of employees, and evolving training plan for them, also, serves to meet other objectives. Performance appraisal satisfies the psychological needs individuals have to know how they are performing their job and increases Employees job satisfaction and morale by letting them know that the manager is interested in their progress and development. Systematic performance appraisal also provides the firm and the employee a careful evaluation, rather than a snap judgment of an employee's performance. Many firms use performance appraisals to plan placements and transfers and to provide input into decisions regarding salary increases, promotions, and transfers. Finally, their superiors may use performance appraisals as a basis for the coaching and counseling of individual employees by their superiors. Performance appraisals provide a means for informing employees of the quality of their work and identifying areas of performance that may need improvement assessing the staff member's adequacy to perform tasks help supervisors maintain control of the work and make the most effective use of their staff resources a supportable basis for making personnel decisions 49

To summarize the uses of performance appraisal: Performance improvement Compensation Placement Training & development needs assessment Career planning Job design error detection Detection of external factors influencing job performanceo

Performance deficiencies may be due to family or other pressures before looking at specifics about performance appraisal programs, it might be useful to examine some deficiencies of existing programs.

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Performance Measures OBSERVATION

DIRECT Rater sees the actual performance

INDIRECT

Rater evaluates substitutes (constructs) for actual performance o Less accurate

Comparative Evaluation Methods Ranking Methods Forced Distributions Point Allocation Method Paired Comparisons Rating Scales Summary As we indicated above, formal appraisal systems are necessary in order to introduce objectivity into the evaluation process. Rating scales provide appraisers a fairly high degree of structure. Using rating scales, employee traits and characteristics are rated on a scale that usually has several points ranging from "poor" to "excellent". For example, characteristics assessed might include cooperation, communications ability, initiative, punctuality and technical competence. It is, of course, important that the traits being evaluated be job-related. In designing the scale, the human resource specialist must 51

make reference to the appropriate job descriptions. Use of inappropriate traits could result in legal action on the grounds of discrimination. Using a rating scale, the rater provides a subjective evaluation of an employee's performance along a scale from high to low. Since the method provides a numerical value for each dimension or trait, an overall average can be calculated for each employee. The rating scale is inexpensive and easy to administer. Advantages of Rating Scales The greatest advantage of rating scales is that they are structured and standardized. Thus, ratings can be easily compared and contrasted. Using rating

scales, each employee is rated according to the same basic appraisal process. The process encourages equality in treatment for all employees. Further, rating scales are easy to construct, to use and to understand.

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Disadvantages of Rating Scales Rater biases Specific performance criteria may be omitted to make form applicable to a variety of jobs in the organization Descriptive evaluations are subject to individual interpretation Even though rating scales ought to be constructed with reference to the relevant job descriptions, questions must be asked about whether or not the selected traits are relevant to the jobs of all the appraises? Often, when efforts are made to standardize an appraisal form across the entire organization, certain traits that are included will have a greater relevance for some jobs than others. For example, the trait "initiative" might not be very important in a job that is tightly defined and rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an employee lacks initiative. Rather, it may reflect that fact that an employee has few opportunities to use and display that particular trait. In efforts to standardize the rating instrument, it is possible that factors that an employee's performance may depend on have not been included in the selected list of relevant traits. Thus, some employees may end up with ratings that do not fairly reflect their effort or value to the organization. Selective perception is the human tendency. Although rating scales are designed to lend objectivity and empiricism to the evaluation process, it is difficult to eliminate problems of selective perception (biases and rater inconsistencies). Similarly, the reliability of rating instruments may be questioned if different appraisers would interpret 53

the rating traits (such as, "punctuality") differently. What exactly does "HCL ow average skill" mean? Different appraisers could very likely interpret this "score" differently. Some errors are errors of perception. Other errors may in fact be deliberate. A very common rating error is that of central tendency. An appraiser, wary of confrontations or repercussions, may be tempted to give too many passive, middle-of-the-road ratings. Thus the spread of ratings for all employees tends to be clumped around the middle of the scale. Narrative Essay The essay method of performance appraisal requires the appraiser to prepare a written statement about employees being appraised. The essay describes specific strengths and weaknesses in job performance. Further, the essay may suggest actions the employee might take in order to remedy problem areas identified in the appraisal. The appraiser alone may write the essay, or it be prepared with input from the employee. While the rating scale is structured and confining, the narrative essay allows the appraiser to examine any relevant issue, attribute, or performance. Thus, appraisers are able to place emphasis on whatever issues or attributes they feel are appropriate. In this sense, the narrative essay is open-ended and flexible. Effective Appraisal system (Must have) Reliability and validity Job - relatedness Standardization

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Practical viability ability Legal Sanction Training to appraisers Open communication Reasons for Performance Appraisal Failures Where performance appraisal fails to work as well as it should, lack of support from the top levels of management is often cited as a major contributing reason. Opposition may be based on political motives, or more simply, on ignorance or disHCL ief in the effectiveness of the appraisal process. It is crucial that top management HCL ieve in the value of appraisal and expresses their visible commitment to it. Top managers are powerful role models for other managers and employees. Those attempting to introduce performance appraisal, or even to reform an existing system, must be acutely aware of the importance of political issues and symbolism in the success of such projects. Fear of Failure There is a stubborn suspicion among many appraisers that a poor appraisal result tends to reflect badly upon them also, since they are usually the employee's supervisor. Many appraisers have a vested interest in making their subordinates "look good" on paper. When this problem exists (and it can be found in many organizations), it may point to a problem in the organization culture. The cause may be a culture that is intolerant of failure. In other words, appraisers may fear the possibility of repercussions - both for themselves and the appraisee. 55

That accuracy in performance appraisal is impossible to achieve, since people play social and political games, and they protect their own interests. "No savvy manager... says Longenecker, "... is going to use the appraisal process to shoot himself or herself in the foot." No matter what safeguards are in place, "... when you turn managers loose in the real world, they consciously fudge the numbers." What Longenecker is saying is that appraisers will, for all sorts of reasons, deliberately distort the evaluations that they give to employees. Indeed, surveys have shown that not only do many managers admit to a little fudging, they actually defend it as a tactic necessary for effective management. The fudging motives of appraisers have, at times, a certain plausibility. For instance, a supervisor who has given an overly generous appraisal to a marginal performer might claim that their "legitimate" motive was the hope of encouraging a better performance. On the other hand, fudging motives can a lot less admirable and sometimes devious: the appraiser who fudges to avoid the possibility of an unpleasant confrontation, the appraiser who fudges to hide employee difficulties from senior managers, the appraiser who fudges in order to punish or reward employees. Judgment Aversion Many people have a natural reluctance to "play judge" and create a permanent record, which may affect an employee's future career. This is the case especially where there may be a need to make negative appraisal remarks. Training in the techniques of constructive evaluation (such as self-auditing) may help. Appraisers need to recognize that problems left unchecked could ultimately cause more harm to an employee's career 56

than early detection and correction. Organizations might consider the confidential archiving of appraisal records more than, say, three years old. Employee Participation Employees should participate with their supervisors in the creation of their own performance goals and development plans. Mutual agreement is a key to success. A plan wherein the employee feels some degree of ownership is more likely to be accepted than one that is imposed. This does not mean that employees do not desire guidance from their supervisor; indeed they very much do. Performance Management One of the most common mistakes in the practice of performance appraisal is to perceive appraisal as an isolated event rather than an ongoing process. Employees generally require more feedback, and more frequently, than can be provided in an annual appraisal. While it may not be necessary to conduct full appraisal sessions more than once or twice a year, performance management should be viewed as an ongoing process. Frequent mini-appraisals and feedback sessions will help ensure that employees receive the ongoing guidance, support and encouragement they need. Of course many supervisors complain they don't have the time to provide this sort of ongoing feedback. This is hardly likely. What supervisors really mean when they say this is that the supervision and development of subordinates is not as high a priority as certain other tasks. In this case, the organization may need to review the priorities and values that it has instilled in its supervisory ranks. After all, supervisors who haven't got time to 57

monitor and facilitate the performance of their subordinates are like chefs who haven't got time to cook, or dentists who are too busy to look at teeth. It just doesn't make sense. If appraisal is viewed as an isolated event, it is only natural that supervisors will come to view their responsibilities in the same way. Just as worrying, employees may come to see their own effort and commitment levels as something that needs a bit of a polish up in the month or two preceding appraisals. Performance Appraisal Bias Effects Gabris & Mitchell have reported a disruptive bias in performance appraisal known as the Matthew Effect. It is named after the Matthew of biblical fame who wrote, "To him who has shall be given, and he shall have abundance: but from him who does not have, even that which he has shall be taken away." In performance appraisal, the Matthew Effect is said to occur where employees tend to keep receiving the same appraisal results, year in and year out. That is, their appraisal results tend to become selffulfilling: if they have done well, they will continue to do well; if they have done poorly, they will continue to do poorly. He Matthew Effect suggests that no matter how hard an employee strives, there past appraisal records will prejudice their future attempts to improve. There is other research to support the theory that poor performers might not be given a fair chance to improve. A study of supervisors in nearly 40 different organizations found that subordinates tend to be divided into two groups: in-groupers and out-groupers. This study, by Heneman, Green Berger & Anon you (1989) reported that in groupers are subordinates who seem to be favored by their supervisors. In their

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relationship with the boss, they enjoy "a high degree of trust, interaction, support and rewards." On the other hand, out groupers don't do as well. They appear to be permanently out of favor and are likely to bear the brunt of supervisory distrust and criticism. The effect is therefore similar to the horns and halo effect; supervisors tend to judge employees as either good or bad, and then seek evidence that supports that opinion. It was found that when an in grouper did poorly on a task, supervisors tended to overlook the failure or attribute to causes such as bad luck or bad timing; when they did well, their success was attributed to effort and ability. But when an out grouper performed well, it was rarely attributed to their effort or ability. And when an out grouper performed poorly, there was little hesitation it citing the cause as laziness or incompetence. It is not clear how supervisors come to make the distinction between in groupers and out groupers. Whatever the criteria, however, it is clearly not objective, equitable or reliable. This bias must inevitably lead to a distortion of the appraisal process. It must also be a source of frustration for those employees who are discriminated against. Success. A plan wherein the employee feels some degree of ownership is more likely to be accepted than one that is imposed. This does not mean that employees do not desire guidance from their supervisor; indeed they very much do. Frustration The extent of this frustration was explored by Gabris & Mitchell. They studied an organization with a quarterly performance appraisal system. The workforce was divided into two groups: those who had been given high appraisal results consistently, and those 59

who had low results consistently. When the groups were asked if the appraisal system was fair and equitable, 63 per cent of the high performers agreed, compared to only 5 per cent of the lower performers. The groups were asked if their supervisors listened to them. Of the high performers, 69 per cent said yes, while among the low performers, 95 per cent said no. Finally, when asked if their supervisors were supportive, nearly half of the high performers agreed that they were, while none (nil, zilch, zero!) of the low performers agreed. Of course, not everyone who gets a poor appraisal result is a victim of supervisory bias. Nor are all supervisors prone to making the same degree of in-group and out-group distinction. The effects discussed here are tendencies, not immutable effects. But to some extent, it appears that certain employees may be unfairly advantaged, while others are disadvantaged, by bias effects in the judgments of supervisors. It is a cardinal principle of performance appraisal that employees should have the chance to improve their appraisal results - especially if their past results have not been so good. It is a very serious flaw in the process of appraisal if this principle is denied in practice. There are reasonable steps, which can be taken to limit the effects of supervisory bias. Awareness Training The first line of defence lies in raising awareness of the problem. Supervisors need to be informed of the types of subtle bias that can interfere with their performance as appraisers. They need to understand that the in-group / out-group bias, for instance, reduces the morale and motivation of their subordinates.

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Developing Poor Performers Incentives, financial or non-financial, may offered to encourage supervisors to make special efforts to help poor performers improve. Supervisory appraisals, for example, might stress the importance of working with poor performers to upgrade their performance. The possibilities are extensive. Retention of Records Performance appraisal results should not become a permanent part of an employee's personnel record. Employees should not feel that their employment history has been forever marred because of a poor appraisal result. If appraisal records are to be retained for long periods of time, they should be securely archived and access to them restricted. New supervisors should not be permitted to review records that are older than a few years. Employees should have the chance to make a new impression. Counseling, Transfer, Termination There is always the possibility that an employee who receives poor appraisal results is in fact a chronic poor performer of course, no employer is bound to tolerate poor performance forever. Consistently poor appraisal results will indicate a need for counseling, transfer or termination. The exact remedy will depend on the circumstances.

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Common Appraisal System Faults Some of the most frequent faults employees find with performance appraisal systems are: 1. The reported evaluations tend to be non-specific (generalities cannot help an employee make improvement) 2. The comments in the appraisal document are inconsistent with actual performance (at least as perceived by the employees) -- the observations lack empirical evidence 3. The meetings are handled poorly and dominated by superiors who tend to use one-way communication 4. Little or no constructive suggestions for improvement are made during the interview 5. Consistent with the observation that superiors frequently engage in one-way communication, the individual employee has little or no input 6. The process is mechanical and contributes little to either the betterment of the organization or the employee Given the faults listed above, the process engenders hostility in the employees Improving Appraisal Systems The following suggestions might lead to a more rational performance appraisal process: Ensure that all employees are subject to evaluation (from the president/manager down)

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o

People in the organization will feel more commitment to the performance evaluation process if the supervisors who give appraisals will also be judged

The appraisals ought to be spread out throughout the year Supervisors faced with a pile of appraisals at any one period of time will feel overwhelmed and will likely not do a good job because they are rushed Legal considerations and confidentiality issues must be consideredo

Policies with respect to where the appraisals will be kept and who has access to them must be implemented

Self-evaluation should be encouraged as part of the processo o o

This procedure may invite disagreement Most people rate themselves the same or lower than their manager will Another benefit of self appraisal is that managers frequently don't know all

that's required to get the job done -- the manager thus learns more about the organization by reading the employees' self-evaluation Have peers conduct reciprocal reviews Have subordinates evaluate their superiors Establish a clear relationship between salary increments and performance appraisals

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Establish a policy to determine how much of the review will be based on personal observation and interaction, and how much will rely on input received from others -- make sure all employees are aware of this policy Publicize which performance appraisal methodology you intend to use:o o o o o o o o o

Management by objectives Essays Graphic rating scales Weighted checklists Behavioral anchored ratings Forced choices Critical incidents Rankings Paired comparisons

Consider using external sources of information -- customers, clients Use performance appraisals as a chance to clarify or communicate the intent of the employees' job descriptions Use performance appraisals as a chance to revise job descriptions -- the interview may make it clear that the job description is inconsistent with tasks actually required of the employees Include objectives for the coming year in the performance appraisals 64

Follow up on the performance appraisal recommendations 360-degree Performance Appraisal: Evaluating Employees From All Angles Traditional performance appraisals, as discussed above, can be both subjective and simplistic. At times, they can also be deemed to be "political". In an attempt to improve this methodology, some companies have turned to 360-degree appraisals. 360 appraisals pool feedback from a department's internal and external customers to ensure a broader, more accurate perspective of an employee's performance. 360-degree performance appraisal is an attempt to answer the question: "How can a supervisor evaluate an employee he or she sees only a few hours each week?" Using internal and external clients:360-degree performance appraisals offer an alternative by which organizations may gain more useful performance information about employees. Because all clients/customers an employee comes into contact with can conceivably have input into the performance appraisal, this methodology can also makes them more accountable to their customers. Using a courtroom metaphor, one could say that, rather than having a single person play judge, a 360-degree appraisal acts more like a jury. People who actually deal with the employee each day have an opportunity to create a pool of information from which the appraisal is written. Internal clients may include supervisors, subordinates, co-workers, and representatives from other departments. External customers may include clients, suppliers, consultants and customers.

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Perceived fairness:Given the use of a wide variety of sources for information in the 360-appraisal process, this method provides a broader view of the employee's performance. Frequently, the employee on whom the appraisal is being done (the ratee) will feel that the process is more fair. Validity Very often, an employee's peers know their behaviors best. Consequently, employees cannot hide as easily in 360-degree appraisals. Employee development 360-degree appraisal enables an employee to compare his or her own perceptions of their work performance with the perception of others. As such, the method facilitates employee self-development. Feedback from one's peers is more likely to lead to changed behaviors. Accountability to customers A 360-degree appraisal process provides a formalized communication link between the employee being evaluated and their customers. These people now have feedback into the employee's performance rating. As such, the process is likely to make the employee more accountable to his or her various internal and external customers. Furthermore, organizations can also use this feedback to create more customer-oriented goals for the following year.

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The raters: how many and who? One issue employers must solve in implementing a 360-degree appraisal program is determining how many raters should be involved. Next, the organization must decide who should do the rating. Generally speaking, less than five raters limits the perspective while more than ten raters is likely to make the appraisal system complex and time consuming. A firm would be well advised to develop a workable definition of what constitutes a peer, an internal customer, an external customer, a supervisor, etc. For example, to be useful, the customer ought to be one who has significant interactions with the ratee. Some organizations permit the ratee to develop a list of key internal and external customers that he or she interacts with. The ratee then recommends five to ten of these individuals to serve as raters. In this process, the supervisor still retains the ultimate responsibility for the appraisal and therefore ensures that appropriate raters are selected. The ratee is thus prevented from stacking the deck with supportive customers. Another option has the raters selected at random from the ratee's team by a computer-generated system. Those selected are then notified by E-mail to participate in the appraisal. Limitations on the use of external clients An organization contemplating the use of the 360-degree process must keep in mind that reviewing that organization's employees' performance is not the customer's business. To ensure the customers' cooperation, the process should be a mutually beneficial process. Furthermore, the various external customers would ideally evaluate

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the ratee only on the behaviors or work incidents that they have directly observed. This, of course, also holds for internal raters. Summarizing the data Once all raters have supplied their appraisals, the employee's supervisor is generally responsible for summarizing the data and determining the final performance rating. After summarizing the data, the supervisor conducts the formal appraisal interview with the ratee. Another variation of the summary process makes the ratee responsible for summarizing the feedback data from the raters. The ratee then submits a summary analysis to his or her supervisor. The ratee and the supervisor then meet to determine the ratee's final performance rating and development plan. Rater confidentiality Organizations must decide whether the feedback from the various raters should be kept anonymous or be identified to the employee. Sometimes raters give fuzzy feedback because of the fear that the feedback might come back to them. One rule might be that no rater can give negative feedback in the appraisal unless that rater has previously given the feedback directly to the ratee. Most organizations should start with a policy of confidentiality until sufficient understanding, maturity and organizational trust is achieved. Prescriptions for legally defensible appraisal systems... System should be formal Appraisal should be based on job analysis

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Rating should be on specific work dimensions rather than on overall or global measures Performance standards must be communicated to employees Raters should be trained Evaluators should be given specific, written instructions about the standards and the process Use more than one independent evaluator of performance Evaluators must have ample time to evaluate performance Use objective data whenever possible Data should be empirically validated Procedures for appraisal must not differ as a function of race, sex, color, national origin, marital status, or age Avoid ratings on traits, personality, or aptitude Behavioral documentation should be given for extreme ratings (critical incidents) Employees should be given an opportunity to review their appraisals A formal appeal system should be available Appraisal Methods In a landmark study, Locher & Teel (1977) found that the three most common appraisal methods in general use are rating scales (56%), essay methods (25%) and results- oriented or MBO methods (13%). For a description of each, follow the button 69

links on the left. Certain techniques in performance appraisal have been thoroughly investigated, and some have been found to yield better results Encourage Discussion Research studies show that employees are likely to feel more satisfied with their appraisal result if they have the chance to talk freely and discuss their performance. It is also more likely that such employees will be better able to meet future performance goals. Employees are also more likely to feel that the appraisal process is fair if they are given a chance to talk about their performance. This especially so when they are permitted to challenge and appeal against their evaluation. Constructive Intention It is very important that employees recognize that negative appraisal feedback is provided with a constructive intention, i.e., to help them overcome present difficulties and to improve their future performance. Employees will be less anxious about criticism, and more likely to find it useful, when the HCL ieve that the appraiser's intentions are helpful and constructive. In contrast, other studies have reported that "destructive criticism" - which is vague, ill-informed, unfair or harshly presented - will lead to problems such as anger, resentment, tension and workplace conflict, as well as increased resistance to improvement, denial of problems, and poorer performance.

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RESEARCH METHODOLOGYResearch methodology is a systematic way, which consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The research is a process of involves a number of interrelated activities, which overlap and do rigidly follow a particular sequence. It consists of the following steps

Formulating the objective of the study Designing the methods of data collection Selecting the sample plan Collecting the data Processing and analyzing the data Reporting the findings

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Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Reporting of Findings

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RESEARCH OBJECTIVES To study of about Performance Appraisal System of HCL.

RESEARCH DESIGNResearch design specifies the methods and procedures for conducting a particular study. A Research design is the arrangement of conditions for collection and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research Design is broadly classified into three types as

Exploratory Research Design Descriptive Research Design Hypothesis testing Research Design

On the basis of the objective of study, the study which is concerned with describing the characteristics of a particular individual or of group of individual under study comes under Descriptive Research design.

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Descriptive Research Design:In this research design the objective of study is clearly defined and has accurate method of measurement with a clear-cut definition of population that is to be studied. To steps are involved in formulating the research problem: Understanding the problem. Rephrasing the problem into meaningful terms form an analytical point of view. The training sessions are conducted in the beginning of training in order To make us clear about the tasks provided and how handle the different situation The research design used in this study is descriptive which includes interviewers. Questionnaire and unit fact-findings enquiries with the employees SAMPLING: Sample is Researcher collect needed information from various persons who are associated with this subject. When such associated persons are in new number research can get information from all of them in such some people among associated persons are selected and collect information from them. These selected persons represent the whole universe and are called sample. Sampling unit The sampling for this research was HCL Employees were available for interview. Sampling frame Sampling frame for this survey was least 100 officers & 100 workmens

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Sampling size Sample size for the objective (Performance Appraisal system) sample size cover for the various departments such as Questionnaire Design The questionnaire for this survey includes both open ended and close ended questions. Why questionnaire Now a days questionnaire are commonly used to collect data that is specific are crucial to the success of business venture. With out doubt questionnaire allow to gather information that can be found else where from say secondary information such as Manuals, Books and internet resources this is because information collected is fresh and unique. Questionnaire helps in identifying the following key points. Study about Organizations Performance Appraisal system Employees awareness about Performance Appraisal system Employees attitude towards existing Performance Appraisal system Way of issuing questionnaire It was personal interview (face to face). It helped in directly asking the question to data available through this is a time consuming processed interviewers have little time to think. Research study A research study for the project on performance appraisal system this is done through questionnaire to employees. Research is a systematic and in depth study to find out the awareness and attitude towards PAR among employees.

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COLLECTION OF DATAThe procedure for collection of data depends upon various considerations Availability of resources like money time manpower etc also affects the choice of procedure. Primary data Direct personal observation Indirect oral interviews Information through manuals& websites Information through questionnaire filled by respondents Questionnaire The questionnaire a list of question to be asked from the respondent s the it also contains a suitable space where the answer can be offered a better questionnaire form, which has completed, by an interviewer. Types of questionnaire Structured non disguised Structured disguised Non structured non disguised Non structured disguised Secondary data Secondary data mean that are already available that is they refer the data which have already been collected and analyzed by some one else when the researcher utilizes secondary data that has to look into various sources where he can obtain. In this case he certainly not confronted with the problems that are usually data nor unpublished data 76

associated data associated with the collection of original data secondary data may either be published.

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TOOLS OF ANALYSISAnalysis may be categorized as descriptive analysis and (inferential analysis is often known as statistical analysis)

Descriptive Analysis: Descriptive analysis is largely the study of distribution of one variable this study provide us profile of companies, workgroups and person & other subject on any of a multitude of characteristics such as size composition.

Correlation Analysis: Correlation analysis studs the joint variation two or more variables for determining the amount of correlation between two or more variable.

Inferential Analysis: Inferential analysis is concerned with the various tests of significance for testing hypothesis in order to determine with what validity data can be said to indicate some conclusion.

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DATA ANALYSISDATA WORK SHEET OF OFFICERS Question No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 (a) % 90 75 34 15 50 95 65 78 42 80 70 65 80 40 52 55 90 20 Options (b) % (c) % 10 0 15 5 60 4 85 0 30 10 5 0 28 2 10 10 30 16 18 0 20 10 24 10 20 0 10 40 25 12 25 10 10 0 40 10 (d) % 0 5 2 0 8 0 3 0 10 0 0 0 0 10 10 10 0 30 NIL 0 0 0 0 2 0 2 2 2 2 0 1 0 0 1 0 0 0 Total persons 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

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DATA WORK SHEET OF WORKMEN

Questio0n No. 1 2 3 4 5 6 7 8 9 10

(a) % 80 70 10 50 0 78 60 50 80 65

Options (b) % (c) % 20 0 20 10 10 10 50 0 100 0 10 10 20 15 30 10 20 0 35 0

(d) % 0 0 70 0 0 0 5 8 0 0

NIL 0 0 0 0 0 2 0 2 0 0

Total persons 100 100 100 100 100 100 100 100 100 100

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QUESTIONNAIRE PRESENTATION WITH PIE CHART ( FOR OFFICERS)Question No. 010% 0% 10% 0% 1 2 3 4 90% 5

1:-

This pie chart is shows about 90% of officers are aware of current performance

appraisal System & 10% are not aware of current PAR System.

Question No. 025% 5% 15% 0% 1 2 3 4 75% 5

2:-

According to 75% the current P.A. System is two tire System ,according 15%Question No. 180%

,Three tire system ,5% four ti re system and 5% are not aware current performance apprai sal Syst em.10% 40% 30% 20% 1 2 3 4 5

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Question No. 03

2% 4%

0% 34%

1 2 3 4 5

60%

3:-

According to 34% two tire systems consist of appraisee & Appraiser, 60% IA &

RA, 4% HOD & GM & 2% immediate superior & HOD.Question No. 040% 0% 0% 15% 1 2 3 4 85% 5

4:-

About 85% of officers are performance appraisals assessed by point system, 10%

through Mark System 0% are not aware any group.

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Question No. 05

10%

8%

2%

1 2 50% 3 4 5

30%

5:-

About 50% of Officers agree that task Setting provides objectively in appraising

their performance less than 30% of the officers are not fully agree with the statement 10% are neutral & disagree 2% are not fill the questionnaire.

Question No. 060% 0% 5% 0% 1 2 3 4 95% 5

6:-

About 95% officers are says yes for completing Quarterly Task setting in time

,rest due to some reason its not completed in time, such cases; lack of seriousness & ambiguity.

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Question No. 072% 3% 2% 28% 1 2 3 65% 4 5

7:-

Above 60% of the officers agree that self appraisal system Proves to be effective

& rest of officers do not completely agree with it.Question No. 082% 0% 10% 10% 1 2 3 4 78% 5

8:-

About 78% of officers are says that appraiser and appraisee should be responsible

for ensuring objectivity and reducing biasness the Performance Appraisal system ,10% are says appraiser & appraisee and peer & 10% says appraiser & appraisee and peer & subordinate ,2% are not fill the questionnaire. 84

Question No. 09

10% 16%

2% 42%

1 2 3 4

30%

5

9:-

More than 40% officers are agree that skill possessed by an officers vary ,30%

are partially agree and 16% are Neutral ,less than 15% are not agree with its.

Question No. 102% 0% 0% 18% 1 2 3 4 80% 5

10:-

About 80% officers are getting regular feedback on their performance but less

than 20% are not getting regular feedback.

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Question No. 11

0% 10% 20% 0% 1 2 3 4 70% 5

11:-

About 70% of officers are agree that feedback is beneficial for improving their

performance ,20% are partially agree and 10% are neutral.Question No. 121% 0% 10% 24% 65% 1 2 3 4 5

12:-

65% of the officers accepts that current PAR is an effective tool for evaluating the

employee performance,20% partially agree with this and 10% are neutral.

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Question No. 130% 0% 20% 0% 1 2 3 4 80% 5

13:-

About 80% of officers are accept that current PAR System reflect the training

need, 20% are not accepts this.

Question No. 14

10%

0% 40% 1 2 3 4

40% 10%

5

14:-

40% of the officers consider that the relevance of PAR system in deciding

promotion, 10% are says deciding incentives and 40% agree with training and development, 10% are accepting the programme succession planning. 87

Question No. 15

10% 12%

1% 1 2 3 4 52% 5

25%

15:-

According to 52% of officers are accepts the existing PAR system ensure due

recognition talented employee in term of promotion ,rewards and others, 28% are partially agree and 12% are neural ,10% are disagree.

Question No. 16

10% 10%

0% 1 2 3 4 5

25%

55%

16:-

More than 55% of officers are completely agree that the existing PAR system is

helpful in wholesome development of employee and 25% are partially agree,10% disagree, 10% are neutral. 88

Question No. 170% 10% 0% 0% 1 2 3 4 5 90%

17:-

About 90% of the officers are completely satisfied with the current PAR system,

rest 10% are not satisfied with the current performance appraisal system.Question No. 18

30%

0%

20% 1 2 3 4 5

10%

40%

18:-

About 20% of the officers are say management is responsible to your

innovativeness and 40 % are says only personal problem, 10% are tell the official problem 30% are says career aspiration.

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QUESTIONNAIRE PRESENTATION WITH CHART (FOR WORKMEN)

Question No. 020% 20% 0% 10% 70% 1 2 3 4 5

Question No. 0120% Not aware 3 0% 5 0% 4 0% 1 2 3 4 80% aware 5

1.

About 80 % of workers are aware of current Performance Appraisal system & 20

% are not aware of current PAR System. 2. According to 70%, the current P.A. System is two-tire system, according 20%,

three tire system, and 10% four-tire system and 5% are not aware current Performance Appraisal System

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Que stion No. 03

5 0%

Question No. 041 10% 2 10% 5 0% 1 2 3 4 5 2 50% 1 50% 3 0% 4 0% 1 2 3 4 5

4 70%

3 10%

3.

About 10% of workers are performance appraisal assessed by point system, 10%

through Mark system 10% grade system and 70% are not aware. 4. About 50 % of workers are says task setting is done by time bound and 50% are not accepts time bound.

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SUGGESTION OF ANALYSIS OF QUESTIONNAIRE Suggestion from employees for the effective implementation of PAR system Job Description & key Result Areas should be identified & appraisee should be answered accordingly. While doing job Rotation a persons core competence should be major criteria for decision. Assessment even by peer, subordinates & customers 360 degree PA system should be implemented in order to make PAR system more focused, rather than relation driven. Project based performance & measurements (six sigma in work place & on personal level) should be encouraged in Appraisal system. Ideation & vision statement will interweavn them; strategy, transformation & leadership should be encouraged & assessed in PAR system. Effective need based training programme must be conducted on regular intervals like time bound task setting is formulated in PAR system, there must also be time made appraiser equally awakened. This will also help in making the existing PAR system more effective & purposeful. Deptts where work & task are not known, Like-Plant Maintenance & Hospital, PAR system should be changed because jobs or tasks except regular work cant be assigned to individual. 92

Suggestion point should be considered & implementation total. As seen that the suggestion are some times ignored by higher authorities. As IA is dealing with persons whose PAR is filled & knows form very near. The present PAR system may be quite effective provide the weakness strengths training requirements improvement suggestions are properly monitored for taking necessary remedial action measures & fro suitable placement in the organization i.e. right person at right place. The task should be reviewed & discussed systematically by IA & RA & necessary action should also be taken at proper time. Ra should take necessary step in fulfilling Appraisee request regarding training, job rotation. Based upon the feedback. The training & Development needs of an individual should be met & should not be limited only to award promotion. There must be a provision that appraisee may come to know the final rating after PRB i.e. more transparency is required. Timely submission of quarterly task may be included to each offers task & marks to be given on that. Employees must be given proper knowledge & made aware of PAR system in HCL .

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FINDINGS The PAR system has been reviewing time to time to improvise the ways to assess the effectiveness, potential, development need & career sketch of the individual for the management to formulate HRD programme into meet organization needs.

There is problem in collecting the PAR forms back more often the forms were not received on time. The main problem is therefore of coordination.

Manager has to perform a very daunting list of time consuming tasks standing with recalling which worker need to be reviewed each month, arranging appraisal meeting with them, collection the relevant performance data, filling out the appraisal forms & documenting the employees performance.

PA is not actually for workmen its basically for the officers. Previously workmen were judged on the ground of ability, attendance & conduct through gradation system but this time the new marking system is introduced.

The culture of confidentiality persists due to which PA will never be a readily undertaken exercise. Adverse remarks are communicated to employees in writing confidentially by the reporting officers.

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IA, RA & PRB consist of senior officers than the appraisee. Subordinate, peer, customer or suppliers are not included in the PA committee. Thus the Appraisal system is by higher level.

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CONCLUSIONBased on the vast study & analysis I can say that the Top management role needs a tremendous change towards the role of facilitator. Every manager in the organization hierarchy at his own position has the same role of facilitator. In fact in the present scene. The managers are facilitators. The role of facilitator has a high demand on individual to be a continuous learner, i.e. there is a transition from.owner. Manager Leader I conclude that for the LPG (Liberalization, Privatization and Globalization) of business, Empowerment strengthens the ongoing capacity for successful action under changing circumstances. Thus to develop self esteem, organization has to satisfy the employees need for higher levels of job satisfaction & an overall improved quality of work life consistent will the dignity of the employees as a human being. I hope that this project is of utmost value to all who are in this field & I also feel that the knowledge gained during this training would be helpful to me in future.

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SUGGESTIONS Workmen PAR should also be developed as of officers & they should be made aware about it.

For the technical one column should also be included in the P.A. format which should concern about the time availability of facilities provisions required for technical workmen, officers in order to carry out & completion of job if any.

This would turn make IA / RA equally responsible & transparency in PAR system.

Emphasis should be given to measuring the employees performance i.e. what the man does rather than what he is (merit rating). The important thing is to be aware of his strengths. What can he do? And what has he done?

Self Appraisal system should thoroughly reviewed by the I.A., RA & Senior RA as the appraisee would not be able to assess themselves but the concerned authorities assessment of the appraisee should be impartial & up to the mark.

Extra care must be taken by the authorities while describing the performance of appraisee, as the attributes used in this section are not the part of specified traits for technical & non-technical personnel. Not only the deficiency should be pointed out in

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this section but if the appraisee have fair better than usual it should also be mentioned.

Multirater Feedback Mechanism. Regular feedback must be given to employees. Identify areas for both organizational & individual improvement through 360-degree process. Promote team building by using this Multirater feedback mechanism

360-degree appraisal is an excellent means of providing feedback to employees because it entails obtaining information from more than one group of people. All those who form the role set member (those who has working relationship will the appraisee) assess the appraisee on a standard format. The appraisees are taken form the superiors, subordinates & colleagues. This encourages quality consciousness, teamwork orientation & more participative.

Give a man fish. He will eat it. Train a man to fish. He will his family, the technique of training has been a key factor & a major tool used to achieve the objectives of HRD. Training should be base on an assessment of the needs of different groups & individuals. The training needs should flow from PAR system. PAR helps in identifying directions in which individual should be trained & developed.

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Whenever an individual is sponsored for training he should be told categorically the reasons for sponsoring him & the expectations of the organization from him after he return form the programme.

Performance analysis should be made before making any comment. Performance Analysis is a sound alternative of finding ways & means of improving the employee organizational performance & identifying development & growth needs.

A positive emotional & professional climate should be created in workplace for the employee to progress & review himself through Performance Review (feedback & counseling).

Virtual HR: HR Deptt. Can automate the PAR system with Internets. They can link corporate business with the goals of the individual employee & generate meaningful information from the vast data collected through out the