A COMPARATIVE STUDY OF

PERFORMANCE MANAGEMENT At HCL INFOSYSTEMS LTD

Submitted to CHITKARA BUSINESS SCHOOL In partial fulfillment of the requirements for the award of degree of Bachelor Of Business Administration

Submitted by: Jasmeen Roll No. CUN110501039

Supervised by: Ruhani Mahajan (Designation here)

CHITKARA BUSINESS SCHOOL CHITKARA UNIVERSITY 2011-13

Contents

1. Introduction 1.1. HCL an overview 1.2. HCL DNA 1.3. Employer spotlight: 1.4. About HCL 1.5. Strong SAP Capabilities 1.6. Vision statement 1.7. Mission Statement 1.8. Quality Policy 1.9. Objective 1.10. Core Values 1.11. A Snapshot Of HCL Infosystems Ltd.

2. Literature Review - PMS

2.1. An Introduction of Performance Management 2.2. Levels of performance management 2.3. Value for money 2.4. Measures and metrics 2.5. Processes 2.6. Objectives of a Performance Management System

2.7. Overall

Goal

and

Focuses

of

Performance

Management 2.8. Performance Improvement of the Organization or a Subsystem is an Integrated Process 2.9. Ongoing Activities of Performance Management 2.10. Basic Steps 2.11.Project Performance Management 2.12. Managing Performance Effectively 2.13. Feature of good PMS

3. Project
3.1. Objective of the project Introduction of the problem 3.2. Significance of the Project 3.3. Definition - A Theoretical Perspective 3.4. Preparation management 3.5. Performance Management and Development 3.6. Performance Assessment and Development Plan In HCL INFOSYSTEMS LTD 4. Research Methodology 4.1 Research Design 4.2 Data Collection Method 4.3 Analysis of PMS 5. Recommendation 3 and Planning for performance

6. Conclusion 7. Bibliography 8. Appendix

Acknowledgment

The project of this nature is arduous task stretching over a period of time, completing a project like this one takes the effort and cooperation of many people. Although this project report is being brought in my name, it bears an imprint of guidance and cooperation of many individuals. Several persons with whom I integrated have contributed significantly to the successful completion of the project study. In the successful & trouble free completion of my final term project I am titled graceful PERFORMANCE to CHITKARA MANAGEMENT,

BUSINESS SCHOOL , for helping us towards the completion of the project. I extend my deepest and sincere thanks to my project guide, Miss.Laveena Mehta and other HR Executives HCL Infosystems Ltd. for the unflinching support and guidance through out the project I would also like to thank all the executives who shared their precious time and experience with me.

Last but not the least, I extend my sincere thanks to all the staff members of HCL Infosystems Ltd. for their cooperation.

Executive summary

Performance management is the process of bringing people in to the organization making very sure that new entrants have the potential and willingness to contribute to organizational success. In todays scenario without effective performance management the organization will meet the considerable resistance when introducing change. Without organizational change and development survival become very uncertain so in order to make the industry survive it is very important to adopt the different performance

management practices in all organizations so as to understand the employees or workers need and satisfy them. There should be effective people utilization in every industry. All these practices in an organization will make the

organization to grow at a faster speed. The study will be empirical and primary research will be done by using the questionnaire which will administer to sales, service and support function employee. The date will be collected and assimilated by using statistical tool like median and date will be analyzed by using Bar Chart. The analysis will be to find the effectiveness of current PMS.

1. INTRODUCTION 1.1. HCL an overview

Born in 1976, HCL has a 3-decade rich history of inventions and innovations. In 1978, HCL developed the first indigenous microcomputer at the same time as Apple and 3 years before IBM's PC. During this period, India was a black box to the world and the world was a black box to India. This microcomputer virtually gave birth to the Indian computer

industry. The 80's saw HCL developing know-how in many other technologies. HCL's in-depth knowledge of Unix led to the development of a fine grained multi-processor Unix in 1988, three years ahead of Sun and HP. HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 30 years into multiple practices - semi-conductor, operating systems, automobile, avionics, bio-medical engine HCL's R&D was spun off as HCL Technologies in 1997 to mark their advent into the software services arena. During the last eight years, HCL has strengthened its processes and applied its know-how, developed over 30 years into multiple practices - semiconductor, operating systems, automobile, avionics, biomedical engineering, wireless, telecom technologies, and many more. Today, HCL sells more PCs in India than any other brand, runs Northern Ireland's largest BPO operation, and manages the network for Asia's largest stock exchange network apart from designing zero visibility landing systems to land the world's most popular airplane.

1976 1977 1978

Hindustan Computers Limited (HCL) born. Distribution alliance formed with Toshiba for copiers. HCL successfully ships in-house designed

microcomputer at the same time as Apple. The Indian computer industry is born. 1980 HCL introduces bit sliced, 16-bit processor based

microcomputer.

1983 peers. 1986 1988

Indigenously develops an RDBMS, a Networking OS

a Client Server architecture, at the same time as global IT

HCL becomes the largest IT company in India. HCL introduces fine-grained multi-processor Unix-3

years ahead of Sun and HP. 1990 Data Quest marks HCL No.1 amongst top ten

computer giants. 1991 HCL Ltd. and Hewlett Packard, USA, partner to form Packard Ltd.

HCL-Hewlett entry into contract 1994

JV develops multi-processor Unix for HP-heralds HCLs

Distribution alliances formed with Ericsson Switches

and Nokia Cell phones. 1997 HCL Info systems are formed. HCL's R&D spun-off

as HCL Technologies- marks advent into software services. JV with Perot Systems, stake divested in 2003. 1999 Initial Public Offering made by HCL Technologies

Ltd.Formation of Global Board of Directors. 2000 Large contracts won from Bankers Trust, KLA

Tenor, Cisco, GTech, NEC among others. 2001 JV with Deutsche Bank- DSL software formed. HCL

BPO Incorporated. Acquired British Telecom Apollos

contact center in Belfast, Northern Ireland. HCL Info systems become largest hardware company. 2002 Strong pursuit of nonlinear strategy to widen services

portfolio; several JVs and alliances formed. Strategic alliance forged with Jones Apparel Group, Inc. a fortune 500 company. Infrastructure services division launched to address emerging global needs. Software businesses of HCL Info systems and HCL Technologies merged. 2003 Largest BPO order ever outsourced to an Indian BPO

firm, won from British Telecom. Landmark deals signed with Airbus and AMD. HCL manpower crosses the 20,000 mark.. 2004 Accorded leader status by Meta Group in Offshore

Outsourcing. HCL is Indias No.1 PC 4th year in a row.

2005 HCL signs Software Development Agreement with Boeing for the 787 Dream liner program. JV with NEC, Japan HCL sets up first Power PC architecture design center outside of IBM. Completes buy-out of JVs with Deutsche Bank and British Telecom Apollo Contact Center. HCL integrates all group employees under HCL in domain.

10

Sets up a dedicated Offshore Design Center for leading Tier-1 Aerospace supplier, Hamilton Sundstrand.

HCL Info systems launches sub Rs.10, 000 PC. Joins hands with AMD, Microsoft to bridge the digital divide.

2006 75,000+ machines produced in a single month. HCL Info systems in partnership with Toshiba expand its retail presence in India by unveiling 'shop Toshiba'. HCL Info systems & Nokia announce a long-term distribution strategy. HCL the leader in Desktops PCs unveils India's first segment specific range of notebooks brand - 'HCL Laptops'. HCL Info systems showcase Computer Solutions for the Rural Markets in India. HCL Support wins the DQ Channels-2006 GOLD Award for Best After Sales Service on a nationwide customer satisfaction survey conducted by IDC. HCL AND ZEE - Dish TV team up to take DTH TV to its next level of growth in India HCL Info systems First in India to Launch the New Generation of High Performance Server Platforms Powered by Intel Dual - Core Xenon 5000 Processor. HCL Forms a Strategic Partnership with APPLE to provide Sales & Service Support for iPods in India.

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HCL is one of the leading global Technology and IT enterprises with annual revenues of US$ 4 billion. The HCL Enterprise comprises two companies listed in India, HCL Technologies (http://www.hcltech.com/) and HCL Info systems (http://www.hclinfosystems.in/) The 30 year old enterprise, founded in 1976, is one of India's original IT garage start ups. Its range of offerings span R&D and Technology Services, Enterprise and Applications Consulting, Remote Infrastructure Management, BPO services, IT Hardware, Systems Integration and Distribution of Technology and Telecom products in India. The HCL team comprises 45,000 professionals of diverse nationalities, operating across 17 countries including 360 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including several IT and Technology major.

12

1.2.

HCL DNA:

Fueled by the entrepreneurial zeal of its founders, HCL developed the first indigenous microcomputer in 1978, at the same time as Apple. Since then, HCL has had a 3-decade rich history of inventions and innovations. Entrepreneur is the term that best describes the HCL employees. The TIME magazine has referred to HCL as an "intellectual clean room where its employees could imagine endless possibilities." Ever since HCL entered into an alliance in 1970s, partnerships and HCL have been inseparable. Bonds have been forged with partners to co-create value. Strong inorganic growth is a testimony to the spirit of partnerships.

13

This entrepreneurial and win-win relationship driven culture continues to guide HCL in all its endeavors.

1.3.

Employer spotlight:

HCL is one of Indias leading global IT Services companies, providing software-led IT solutions, remote infrastructure management services and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences 14

Aerospace, Automotive, Semiconductors, Telecom and MPE (Media Publishing & Entertainment)

HCL in India:
HCL has evolved from a dream of eight youngsters in 1977 to the country's top IT group today. Our well-balanced portfolio of turnkey solutions across equipments, software and services make our offerings end-to-end for all IT needs of the Indian customers. Our recognitions speak of our dominant position in India. V&D100 2005, No. 1 Security service provider in India by DQ Annual 2004, No.1 Infra service provider by CMP 2005, and No.1 PC Brand recognize us as No.1 Network Management service provider in India for the last 5 year in India. HCL is known to be the harbinger of technology in the country. Our partnerships with technology leaders like JDA, Oracle, SAP, KANA, Intel, Microsoft go back to the time when India was being recognized as a growing and strategic market. Along with global capability, HCL has leveraged such relationships to create value for Indian customers - the comprehensive integrated market surveillance solution for SEBI being one such example. Our services are backed by an extensive direct support infrastructure spread across 170 locations nationwide, which offer 24-x7 support offering for critical sites. With more than 70 SAP implementations till date, HCL has been rendering

15

service to key Indian players in Banking, Retail and Government. We are committed to the Indian Market and will continue to invest more to further enrich our end-to end IT offerings for this market. Our flexible engagement models, rich heritage of technology solutions and over 29 years of leadership across service areas give us a strategic advantage to meet the nation's IT needs.

1.4.

About HCL

HCL Enterprise is a leading Global Technology and IT enterprise that comprises two companies listed in India HCL Technologies & HCL Info systems. The 3-decade-old enterprise, founded in 1976, is one of Indias original IT garage start-ups. Its range of offerings span Product Engineering, Technology and Application Services, BPO, Infrastructure Services, IT Hardware, Systems Integration, and distribution of ICT products. The HCL team comprises approximately 42,000 professionals of diverse nationalities, who operate from 16 countries including 300 points of presence in India. HCL has global partnerships with several leading Fortune 1000 firms, including leading IT and Technology firms. HCL Technologies is one of Indias leading global IT Services companies, providing softwareled IT solutions, remote infrastructure management services

16

and BPO. Having made a foray into the global IT landscape in 1999 after its IPO, HCL Technologies focuses on Transformational Outsourcing, working with clients in areas that impact and re-define the core of their business. The company leverages an extensive global offshore infrastructure and its global network of offices in 16 countries to deliver solutions across select verticals including Financial Services, Retail & Consumer, Life Sciences Aerospace, Automotive, Semiconductors, Telecom and MPE (Media Publishing & Entertainment). For the quarter ending 31st December 2006, HCL Technologies, along with its subsidiaries had revenue (TTM) of US $ 1.155 billion (Rs. 5220 crore) and employed 38,317 professionals.

1.5.

Strong SAP capabilities:

HCL Technologies is one of the largest global SAP service providers in India, providing a spectrum of SAP services. HCL Technologies has developed strong capabilities on the SAP Net Weaver platform and drives market demand in the SAP world through unique market propositions and upgrade offerings to my SAP ERP. HCL is a value added reseller and services partner across multiple geographies. With a track

17

record of successful engagement in this space, HCL has received prestigious awards from SAP - distinguished partner award 2005, best my SAP HCM implementation award 2005, Saps "outstanding partner award for implementation/upgrade project 2004, and more. Forrester has lauded HCL Technologies is one of a number of firms in this space and is a viable candidate for multinational firms that are contemplating global outsourcing and are interested in SAP implementation and maintenance services.

1.6.

VISION STATEMENT

Together we create enterprises of tomorrow.

1.7.

MISSION STATEMENT

To provide world class information technology solution

and services to enable our customers to serve their customer better.

1.8.

QUALITY POLICY STATEMENT

We will deliver defect-free products, service and

solutions to meet the requirements of our external and internal customers the fist time, every time.

1.9.

OUR OBJECTIVE

18

OUR MANAGEMENT OBJECTIVE

To fuel initiative and foster active by allowing

individuals freedom of action and innovation in attaining defined objectives.

OUR PEOPLE OBJECTIVE

To help HCL Infosystem people share in the companys

success, which they make possible to provide job security based on their performance; to recognize their individual achievements and to help them gain a sense of satisfaction and accomplishment from their work.

1.10. CORE VALUES

We shall uphold the dignity of individual

We shall honor all commitments.

We shall be committed to Quality. Innovation and growth

in every endeavor. We shall be responsible Corporate Citizens.

19

1.11. A SNAPSHOT OF HCL Infosystems Ltd.

Indias leading IT company

HCL In say is Indias largest information technology (IT), transnational conglomerate. With its-depth expertise in developing solution spanning diverse technologies. HCL Insys aims to propel its course on to the high

growth Path total Technology Integration. Towards capturing two Ends of market spectrum - enterprise solution and PCs. HCL Insys has made significant strategic infrastructure investments in the professional services Organization (PSO), the Support Services Organization (SSO) and its manufacturing plant at Pondicherry. Thus it is the manufacturer of general purpose computer and provides services in the areas of IT Consultancy, system integration, Software Development and Training. It makes true technology integration possible across

multiple platforms, this was possible because of the in-depth expertise in developing state-of-the-art indigenous hardware solution; thorough understanding of networking technology. As a part of this plan to market more and more

technology integration services world-wide, HCL in sys has already taken a step in the direction of export by localizing its service comprising software, hardware design and development, value added support service networking abs repair services and overseas integration projects to meet the demands of the global clients.

20

Companys continuous and consistent anticipation of the requirement of the IT Industry has led it to undertake the acquisition of the business of HCL Info solutions limited (now known as Frontline Division), HCL Peripherals Limited (now known the acquisition of Customer Support Organization (CSO) activities of HCL Office Automation Limited (now know as office Automation Division)

FRONTLINE DIVISION
Frontline Division, formerly HCL Info solution Ltd. (HCL Insol) started with the aim of increasing market penetration by handing segments not covered by HCL Insys and creating new niches. Today it specializes.

21

2. 2.1.

PMS An Introduction of Performance

Management

2.1.1.

What is performance management?

Performance management is the activity of tracking performance against targets and identifying opportunities for improvement - but not just looking back at past performance. The focus of performance management is the future - what do you need to be able to do and how can you do things better? Managing performance is about managing for results. Performance-based management at any level in the organization should demonstrate that You know what you are aiming for You know what you have to do to meet your objectives You know how to measure progress towards your objectives You can detect performance problems and remedy them 2.1.2. Why is it important?

The Modernizing Government agenda sets challenging new performance objectives for organizations, from the delivery of high quality services that meet the needs of their customers and stakeholders, to doing more within the 22

constraints of available resources, through to continuous improvement in how the organization itself operates. Performance management underpins the operations and processes within a strategic change program framework. Sound practices and targets, which are both flexible and reactive to change, are needed to achieve performance improvement. The effective performance of your organization depends on the contributions of activities at all levels - from top management policy development through to efficiently run operations. In response to the pressures and opportunities for improving organizational performance, you need to understand how to define and measure performance as part of a concerted strategy for relevant, successful and cost-effective operations.

2.1.3.

Critical factors for success

Focusing on outcomes that meet business objectives, rather than outputs Managing performance by cascading down from the top and building bottom-up Defining and using measures that evolve over time Using a mix of short and long term measures, and selecting measures that link cause and effect Measuring effectiveness (doing the right things) and efficiency (doing things right) in parallel

23

Relating individuals' reward and remuneration with achievement of outcomes.

2.1.4.

Who is involved?

Business managers are responsible for setting targets and managing performance against those targets; contract managers monitor service performance from the customer viewpoint; information. service providers supply performance

2.1.5.

Principles

Performance management should be an integrated part of a business lifecycle helping an organization to mature through evolving and changing performance measures, from their definition through to monitoring and review in addition, by including the IS/IT component throughout this lifecycle, rather than just considering it as a 'downstream' cost of provision, there should be enhanced benefits from an increased and more effective contribution from any investment made in IS/IT. You will need to ensure that you have adopted sound practices in commissioning and acquiring IS/IT services to achieve performance identifies improvement. opportunities for Performance maximizing 24 management

improvements in managing service delivery in the future. Performance management helps you to make decisions about investment routes, affordability and setting investment priorities in the face of competing demands for resources.

2.1.6.

Managing for results

Managing for results requires the organization to focus on the outputs of the processes and activities undertaken by the organization at varying levels. Together these outputs will contribute to the achievement of the outcomes desired by the organization and those of the government as a whole.

2.2.

Levels of performance management

1. The effective performance of your organization depends on the contribution of activities at all levels - from top management policy development through to efficiently run operations. There are three or four levels of performance management in the model framework below, some organizations may combine the strategic level with the organizations priorities level. 2. Organizations priorities: at the highest level performance management is rooted in the organizations long term business strategy. Measures at this level are of impact, resource utilization and public service improvement. 3. Strategic level performance management: at this level the management concern is from an "outside in" as well as an internal perspective. Measures are of outcome, such as

25

volume and value of service take-up, upward trends for inclusion, staff and users' satisfaction. 4. Program level performance management: performance management at this level is focused on the desired results of programs of change, to demonstrate what has been accomplished. The measures used would include those stated in individual business cases. Benefits management would help to determine if these are achieved. 5. Tactical or operational service level performance management: here the management focus is concerned with service delivery and outputs, using conventional service level agreement approaches and related measures of aspects such as volumes and quality. Although performance measures and indicators may be different at each level, they will need to be. Directional - to confirm that you are on track to reach the goals. Quantitative - to show what has been achieved and how much more is to be done. Worthwhile - adding more value to the business than they cost to collect and use. 2.3. Value for money

You must be able to demonstrate that you have achieved value for money in your operations. Value for money is taken to cover three measures of performance:

26

Economy - Minimizing the cost of resources used for an activity, having regard to appropriate quality Efficiency - the relationship between outputs, in terms of goods, services or other results and the resources used to produce them

Effectiveness - the extent to which objectives have been achieved, and the relationship between the intended impacts and actual impacts of an activity.

2.4.

Measures and metrics

You should use these evaluation criteria for measures and metrics: Are you measuring the right thing? Do you have the right measures? Are the measures used in the right ways? Do you determine the quality of a particular performance metric using the SMART test (Specific, Measurable, Attainable, Relevant, Timely)?

The procedures and measures used in performance management will depend, among other factors, on the type of business process which is being measured. A business process is assumed to be made up of a number of activities which transform inputs into outputs and contribute to the realisation of outcomes. The customers for a process may be external (for example, members of the public) or internal,

27

within the same organisation or elsewhere in the public sector.

2.4.1.

Business

processes

can

be

distinguished by:
The extent to which the activities involved are peopleoriented as opposed to automated Whether the activities are primarily 'front-office' or 'back-office' - that is, the amount of direct contact which the staff have with the customers or recipients of the process Whether the process itself is the important feature of the activity - for example, in delivering consultancy - or whether the activities are concerned primarily with the generation of defined outputs The extent to which the activity is customized or tailored to the needs of each customer, as opposed to being routine and procedural The amount of discretion which needs to be exercised in the activities The duration of the contact with the customer.

2.5.

Processes

You will need to review the effectiveness of your procedures for: Setting performance targets Designing measures of performance relevant to the targets Systematically and accurately measuring outcomes Assessing the performance of external service providers 28

Using results for informed decision-making Improving performance. shows that most organizations have the

Research

components of performance management in place, but they are not always used to overall advantage. A possible fivestep approach that could help organizations in improving the performance management of the IS/IT contribution is outlined below, with suggested techniques. Step 1: Identify your level of maturity in performance management Look at how the organization is performing in all its aspects of performance management - from direction setting through to review and measurable improvement. Do an assessment; this will help to identify your organizations weaknesses. Establish where you are now as a series of baselines, looking at performance management at strategic program, tactical and operational levels. Bottom-up measures of economy and efficiency are likely to be reasonably strong and have good management. This may not be so well developed for effectiveness measures Innovation, process improvement, customer satisfaction, and contribution to policy objectives. Most organizations have a good understanding of financial measure; this level of understanding needs to be developed for other measures. maturity and the strengths and

29

Techniques: Assessment; baseline

Step 2: Identify where performance management is important to your organization Is it in setting direction or ensuring the delivery of required benefits or improving the alignment, performance and contribution of the internal and external resources used by the organization? Identify the values for your organization. Key values for safety critical operational services are speed and integrity of information. A different organization might place high value on information flows or on single points of access to information at a contact/call centre. Techniques: Value chain analysis; benchmarking with other organizations (which may identify things you had not thought of) Step 3: Resolve any mismatch between steps 1 and 2 Review performance management at each of the four levels - (organization, strategic, program and tactical). Are there weaknesses in areas that are important to your organization? Techniques: to become more outward looking and customer-focused, use the well established balanced scorecard and EFQM techniques. To answer questions about where IT makes a contribution, use Goals, Questions and Metrics (GQM) to identify and define measures.

30

Step 4: Establish where you want to be and begin to build performance management into business processes and into the culture The aim is to have target, measurement and review processes for those things that the business considers important such as product, process, service and staff. You will have lots of measures which need to be prioritised values. establish benefits management as a norm Use databases to collect Techniques performance information and analyse trends Include performance management in the business, programme and project lifecycle Step 5 : Feed information back into performance improvement Monitor and take action on: We achieve what we set out to do? Where are the opportunities to improve? What can we do to improve? You are seeking answers to: What is achievable? against your particular perspective on effectiveness, efficiency and economy and against your

31

What is important for our organization? What was achieved?

Techniques: Process assessment; your own targets, looking at benchmarks from the outside world.

The process of performance management

32

33

2.6.

Objectives of a Performance Management System

Performance management is an integral part of a comprehensive human resource management strategy. Its objective is to maximize individuals' performance and potential with a view to attaining organizational goals and enhancing overall effectiveness and productivity.

A staff performance management system aims at: To help achieve departmental objectives through staff
Departments formulate strategies and objectives to support their vision, mission and values. To achieve these broad objectives, departments have to turn them into specific objectives and targets for the divisions, sections, units and subsequently individual job objectives and targets for implementation. As individual job objectives are linked to those of departments', the performance of individual officers contributes to the delivery of departmental objectives.

To

evaluate

performance

and

improve

communication between managers and staff on managing performance

The staff performance management system provides a mechanism to monitor and evaluate staff performance. Performance objectives are set at the beginning of the

34

performance management cycle through open discussion between the supervisors and the appraisees. Progress is monitored regularly and feedback from staff and supervisors is collated to help clarify objectives and output expectation; and to enhance performance.

To provide opportunities for development

The staff performance management system serves as a multipurpose management tool. It provides valuable information to help identify individual training needs so as to enhance performance and to develop the potential of the staff for further advancement. The following figure provides an illustration of how performance management links with other human resource functions.

2.7.

Overall Goal and Focus of Performance Management

The overall goal of performance management is to ensure that the organization and all of its subsystems (processes, departments, teams, employees, etc.) are working together in an optimum fashion to achieve the results desired by the organization.

2.8.

Performance

Improvement

of

the

Organization or a Subsystem is an Integrated Process

Note that because performance management strives to optimize results and alignment of all subsystems to achieve

35

the overall results of the organization, any focus of performance management within the organization (whether on department, process, employees, etc.) should ultimately affect overall organizational performance management as well.

2.9.

Ongoing

Activities

of

Performance

Management
Achieving the overall goal requires several ongoing activities, including identification and prioritization of desired results, establishing means to measure progress toward those results, setting standards for assessing how well results were achieved, tracking and measuring progress toward results, exchanging ongoing feedback among those participants working to achieve results, periodically reviewing progress, reinforcing activities that achieve results and intervening to improve progress where needed. Note that results themselves are also measures. Note: these general activities are somewhat similar to several other major approaches in organizations, e.g., strategic planning, management by objectives, Total Quality Management, etc. Performance management brings focus on overall results, measuring results, focused and ongoing feedback about results, and development plans to improve results. The results measurements themselves are not the ultimate priority as much as ongoing feedback and adjustments to meet results. The steps in performance management are also similar to those in a well-designed training process, when the process can be integrated with the overall goals of the organi zation. 36

Trainers are focusing much more on results for performance. Many trainers with this priority now call themselves performance consultants.

2.10. Basic Steps

Various authors propose various steps for performance management. The typical performance management process includes some or all of the following steps, whether in performance management of organizations, subsystems, processes, etc. Note that how the steps are carried out can vary widely, depending on the focus of the performance efforts and who is in charge of carrying it out. For example, an economist might identify financial results, such as return on investment, profit rate, etc. An industrial psychologist might identify more human-based results, such as employee productivity. The following steps are described more fully in the topics
Performance Performance Appraisal Plan,

and

Development Plan,

including through

use of an example application. The steps are generally followed in sequence, but rarely followed in exact sequence. Results from one step can be used to immediately update or modify earlier steps. For example, the performance plan itself may be updated as a result of lessons learned during the ongoing observation, measurement and feedback step. NOTE: The following steps occur in a wide context of many activities geared towards performance improvement in an organization, for example, activities such as management

37

development, activities.

planning,

organizing

and

coordinating

1. Review organizational goals to associate preferred organizational results in terms of units of performance, that is, quantity, quality, cost or timeliness (note that the result itself is therefore a measure) 2. Specify desired results for the domain -- as guidance, focus on results needed by other domains (e.g., products or services need by internal or external customers) 3. Ensure the domain's desired results directly contribute to the organization's results 4. Weight, or prioritize, the domain's desired results. 5. Identify first-level measures to evaluate if and how well the domain's desired measure if necessary 7. Identify standards for evaluating how well the desired results were achieved (e.g., "below expectations", "meets expectations" and "exceeds expectations") 8. Document a performance plan -- including desired results, measures and standards 9. Conduct ongoing observations and measurements to track performance 10. Exchange ongoing feedback about performance 11. Conduct a performance appraisal (sometimes called performance review) 12. If performance meets the desired performance standard, then reward for performance (the nature of the reward depends on the domain) results were achieved 6. Identify more specific measures for each first-level

38

13. If performance does not meet the desired performance standards, then develop or update a performance development plan to address the performance gap* (See Notes 1 and 2) 14. Repeat steps 9 to 13 until performance is acceptable, standards are changed, the domain is replaced, management decides to do nothing, etc.

Note 1: Inadequate performance does not always indicate a problem on the part of the domain. Performance standards may be unrealistic or the domain may have insufficient resources. Similarly, the overall strategies or the organization, or its means to achieving its top-level goals, may be unrealistic or without sufficient resources. Note 2: When performance management is applied to an employee or group of employees, a development plan can be initiated in a variety of situations E.g. a. When a performance appraisal indicates performance improvement is needed, that is, that there is a "performance gap" b. To "benchmark" the status of improvement so far in a development effort c. As part of a professional development for the employee or group of employees, in which case there is not a performance gap as much as an "growth gap

39

d. As part of succession planning to help an employee be eligible for a planned change in role in the organization, in which case there also is not a performance gap as much as an "opportunity gap" e. To "pilot", or test, the operation of a new performance management system.

2.11. Performance management mainly include following things:

Performance management is the systematic process by which an agency involves its employees, as individuals and members goals. of a group, in improving organizational effectiveness in the accomplishment of agency mission and

Planning

work and setting expectations,

Continually monitoring performance, Developing the capacity to perform, Periodically rating performance in a summary fashion, and
Rewarding

good performance. 40

The revisions made in 1995 to the Government wide performance appraisal and awards regulations support sound management principles. Great care was taken to ensure that the requirements those regulations establish would complement and not conflict with the kinds of activities and actions practiced in effective organizations as m after of course. Additional background information on performance management can be found in the following

2.11.1.

Planning

In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts towards achieving the organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done. The regulatory requirements for planning employees' performance include establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely

41

paperwork that is filed in a drawer and seen only when ratings of record are requirement

2.11.2.

Monitoring

In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, unacceptable performance can be identified at any time during the appraisal period and assistance provided to address such performance rather than wait until the end of the period when summary rating levels are assigned.

2.11.3.

Developing Employees

In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps 42

employees keep up with changes in the workplace, such as the introduction of new technology. Carrying out the processes of performance management provides an excellent opportunity to identify developmental needs. During planning and monitoring of work, deficiencies in performance become evident and can be addressed. Areas for improving good performance also stand out, and action can be taken to help successful employees improve even further.

2.11.4.

Rating

From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and comparing performance over time or among various employees. Organizations need to know who their best performers are. Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions; such as granting within-grade pay increases and determining additional retention service credit in a reduction in force.

43

Note: Although group performance may have an impact on an employee's summary rating, a rating of record is assigned only to an individual, not to a group.

2.11.5.

Rewarding

In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good performance is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good performance like saying "Thank you" don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many no monetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments.

2.12. Managing Performance Effectively

In effective organizations, managers and employees have been practicing good performance management naturally all their lives, executing each key component process well. 44

Goals are set and work is planned routinely. Progress toward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behavior and results that accomplish the mission. All five-component processes working together and supporting each other achieve natural, effective performance management.

2.13. Features

of

Good

Performance

Management System
A good staff performance management system normally consists of the following features: Fair and open Objective -The system designed should aim to facilitate objective and fair assessment by the management and encourage frank and constructive feedback of appraises. These can be achieved through: Setting clear targets and standards; Providing opportunities for supervisors to inform appraises of their performance regularly, to be accompanied by timely coaching and counseling; Permitting the appraise to have access to the entire report and to review the appraisal before the appraisal interview; and Where necessary an assessment panel should be formed to ensure fairness in performance rating. Adopting such an open system for staff performance also supports the spirit of the Personal Data (Privacy) Ordinance.

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2.13.1.

Competency-Based

Competency refers to the knowledge, attributes, attitude and skills required to perform a job effectively. There are two broad categories of competencies: core competencies and functional competencies. Core competencies are the generic competencies associated with effective performance required by a group of job holders in a department across different divisions/sections. An example is managerial competencies required for staff in managerial positions. Functional competencies are the competencies specific to certain job functions, such as computer programming skills for programmers in the Computer Section and classroom skills for trainers in the Training Division of a department. Competencies are reflected in a set of desirable behavior patterns which are observable, measurable and can be tracked and monitored. Developing and using a competency-based approach enables departments to use a common language and structured way to define and describe appropriate job behaviors at different ranks as officers progress through the grade. The approach help to assess staff's potential and promo ability to the next higher rank and identify development needs of the staff. It also enhances the objectivity and transparency of performance assessment. When core competency-based approach is adopted,

departments need to ensure that the competencies are developed properly by : 46

Aligning

individual

performance

objectives

with

departmental ones, Securing senior management's commitment, and Involving staff in the process.

Furthermore there should be a clear differentiation in competency descriptions among different ranks in the same grade. An unduly long list of competencies may adversely affect the effectiveness of the system. For competencies to effectively serve the needs of a department, they should be department-specific and reflect the missions, values and culture of the department. Any list of competencies cannot be exhaustive. It only provides the common language and understanding of the key dimensions and descriptions that warrant attention. Upon implementation, there should be proper and adequate training for the staff on the implementation of the performance management system Performance planning starts with a session between the appraising officer and the appraisee to agree on the list of objectives/responsibilities for the coming appraisal period. The agreed list will include the objectives of the section/unit and the broad areas of responsibilities of the appraisees, that is key result areas (KRAs).

47

2.13.2.

A Continuous Process

Staff performance management cycle is a continuous process which involves : Performance planning Continuous coaching and development Interim review Performance appraisal

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 2.13.3. Performance planning

Performance planning starts with a session between the appraising officer and the appraisee to agree on the list of objectives/responsibilities for the coming appraisal period. The agreed list will include the objectives of the section/unit and the broad areas of responsibilities of the appraisees, that is key result areas (KRAs). Examples of KRAs are: Timely completion of caseloads Customer satisfaction and relations Staff development Resource management Project management

Specific, measurable, achievable and time bound targets will then be set on the basis of the KRAs. The appraising officer should ensure that these targets are in alignment with the overall departmental objectives and that they are clearly understood by the appraisee. Depending on the nature of the job, appraising officers may alternatively agree with appraises a list of key responsibilities with specific performance results. This list provides the appraisees and the appraising officers with the yardstick to objectively discuss, monitor and assess performance. The list should be kept under frequent review and be revised whenever there are changes in the job.

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2.13.4.

Continuous coaching and development

The performance management system is a on-going process. After work targets and standards have been decided and performance objectives agreed upon, the appraising officer should start the coaching and development process which threads through performance planning, regular feedback and guidance, interim reviews and performance appraisal. Coaching is about providing regular feedback to staff on their performance. It aims at: Giving recognition to encourage and reinforce good performance; and Providing advice and counseling to help improve performance, and where appropriate, take corrective action. Through the coaching sessions, training needs should also be identified and followed.

2.13.5.

Interim review

An interim review is a scheduled, formal discussion between the appraising officer and the appraisee to review the latter's progress in meeting the agreed objectives/responsibilities. This usually takes place in the middle of the appraisal period. An interim review should take the form of a structured session to provide an opportunity for additional coaching, for problem solving, and for updating objectives/responsibilities.

50

An interim review aims to:

Identify performance results that are below, on or above target and determine appropriate responses on corrective measures. Supervisors should use this occasion to recognize and encourage good performance. On the other hand, performance below targets is to be pointed out and guidance for improvement to be given; Assess and follow up development or training need of staff to assist them in achieving their objectives/responsibilities; Ascertain whether there are potential problems that may affect the appraisers performance in the latter half of the reporting cycle and put in place preventive measures; and Review whether adjustments to the agreed objectives/responsibilities are required.

2.13.6.

Performance appraisal

Performance appraisal is the formal assessment on the appraisees performance for the appraisal period. It covers the following aspects: How effectively the agreed objectives/responsibilities have been carried out and targets met; Whether the effectiveness has been adversely affected by any constraints or obstacles; The strengths and weaknesses of the appraisee which affected or will affect the officer's further development; And what sort of personal/career development and training actions should be taken.

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2.13.7.

To maintain an open system

The appraisee should be shown the assessment by the appraising and countersigning officers before the appraisal interview.

Countersigning officers are encouraged to complete the appraisal form before the appraisal interview is conducted; and

An interview record has to be prepared and signed by both parties.

For training and career development proposals put forward in the appraisal, the grade management must take the initiative to ensure any necessary follow up actions are taken in a timely and appropriate manner. These proposals will also provide useful reference for the supervisors to develop the staff's competencies. Common themes on training and development identified should be consolidated for incorporation into the training and development plans of the department and the grade. To ensure consistency in assessment standards and fairness in performance rating in staff appraisals, heads of departments/grades may consider if an assessment panel should be set up. An assessment panel is a management tool to help departments cross moderate appraisal ratings. An assessment panel is usually chaired by the head of branch/division or head of grade with members drawn from section/unit heads. At the start of a reporting cycle, the assessment panel will meet to discuss the marking criteria and standard. Staff will be informed of these criteria and 52

standard and clear guidelines will be issued to appraising officers. The assessment panel will review the completed reports on the basis of panel members' knowledge about the performance of the appraisees. If the assessment panel disagrees with the assessment of a report, the reviewing officer and the appraising/countersigning officer, where necessary, may be requested to explain before the panel. Amendments may be made to the appraisal reports to ensure parity of assessment, if necessary.

3. PROJECT

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3.1.

Objective of the Project Introduction of

the Problem
3.1.1. To Primary Objective the basic features of performance

understand

management plan or performance assessment in HCL and their contribution in the success of HCL Infosystems Ltd. within a short span of previous years. 3.1.2. Secondary objective aspects/ Parameters are high

To identify which of the functional aspects/ Parameters are low and which dysfunctional in order to put some suggestion for increasing the former and reducing the latter in other words to move from dysfunctional to functional performance assessment.

3.2.

Significance of the Project

The six weeks of summer training at HCL Infosystems Ltd. gave me a complete exposure to the organizational work life. It was unique opportunity to explore the realities of Indias leading companies as a researcher and gather knowledge from its vast repertoire of experience. It was great learning experience to know the duties performer, responsibilities taken and the skill regained by the executives of the organization to reform heir jobs effectively and efficiently. The project not only helps me to enhance my practical knowledge but it also help me to understand how performance management work into the organization and

54

how executives assess their own employee into the organization. The summer project, also made me realize the worth of an HR manager. I got to know the importance of employee assessment and communication and interpersonal skill in getting things done from other. In a net shell, it was a very fulfilling and fruitful period of my life as a management student.

3.3.

Definition - A Theoretical Perspective

Performance Management is the process of crating a work area setting in which people are enabled to perform to the best of their abilities. Performance Management is a whole work system that begins when a job is defined as needed. System includes the flowing actions1. Development job description 2. Select appropriate people with an apply selection process. 3. Negotiate requirement and accomplishment based

performance standards 4. Outcomes measures. 5. Provide effective orientation training. 6. Provide ongoing coaching and feedback. 7. Conduct quarterly performance development discussions.

55

8. Design effective compensation and recognition systems that reward people for their contribution. 9. Provide promotional/crier contributions. 10. Assist with exit interviews to understand why valuable employees leave the organization.

3.4.

Preparation and Planning for performance

management
Much work is invested, on the front end, to improve a traditional employee appreciate process, Infect managers can feel as if the new process is too time consuming ones the function of developmental goal is in place however time to an administrator the system decreases. Each of these steps to taken with the participation and cooperation of the employee for best results.

3.5.

Performance

Management

and

Development
Define the purpose of the job, job duties.

Define the performance goals with measurable outcomes.

Define the each job responsibilities a goal.

Define the performance standards for key components of the job,

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Hold interim discussions and provide feedback abuts employee performance.

Maintain a record of performance through critical incident reports.

Provide opportunity for broaden feedback. Use 360` performance feedback system. Develop administer a coaching and implement plan if the employee is not meeting expectation

3.6.

Performance Assessment and Development

Plan In HCL INFOSYSTEMS LTD. 3.6.1. Prior to filling the form please read

carefully Instructions to the Appraiser

Appraise the employee in related to the positions held during the period under appraisal. Be objective, Avoid any personal prejudice. Do not evaluate on the basis of isolated incidents, but base your judgment on the entire period under review. Consider each independently, uninfluenced by the rating given for other factors. This from will not be treated as complete and processed further until all selections are filled up.

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3.6.2. Performance appraisal guidelines 3.6.2.1. Appraisal procedure

Performance appraisal encompasses the on-going workrelated discussions, which take place between appraisals and appraisees throughout the year. The formal performance appraisal meeting is normally attended by the employee and manager only; but when relevant, another manager will also participate (e.g. functional head / HR person).

3.6.2.2. The Form And Its Contents

The guide for the performance / achievement rating is as follows. Outstanding Consistently exceeds the requirement of job. Exemplary performance - Far exceeds the requirement of job. Growth potential unlimited. Very good: - Handle assignments with thoroughness and perfection, effective discharge of responsibilities to the satisfaction of superiors completes assignment in time. With a little more initiative could have performed better. Good: - Just meets the normal requirements of the job, needs substantial improvement in all areas of work to meet requirement of complete employee. Not Up to the Expectation - Not likely to meet the requirements of complete employee.

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Section 1 : Quarterly Self appraisal forms:

a)

General notes on goals /target setting

Key responsibility areas relate to the key result area on going and inherent in the achievements and performance again each one. Targets and achievements are also to be filled after discussing with the manager. Target related to the priority activates normally are within the key responsibility areas. Target must be agreed between the manager and the subordinate. Each target should be specified in such a way that it will be clear when it is met and must include the time frame in which it elements to ensure consistence as summarized in the acronym SMART (S-specific, Mmeasurable, A-achievable, R-relevant, T-timer related). Although it is anticipated the performance against the target will be assessed quarterly, it is responsibilities are reviewed at appropriate in travels every quarterly. The manager should ensure that at all times the subordinate has a clearly defined set of agreed Target. Target for the period under review: In section 1 KRA/ assignment for the period under review should be stated. In some cases it will be necessary for the objective to be amplified on a separate sheet and this documents should be referenced on the form..

b)

Achievement against Target

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Were the target / expectations for the period under review achieved? Comments and reasons for the success or failure should be given at the end of the review quarter period.

c)

Target for the next quarter

At the beginnings of the quarter the target should be decided in Section 1. The aim is to achieve sustainable improvement in the subordinates performance. Enter the date by which the target should be achieved.

d)

Overall View Of Performance

This is the Appraisee/managers view of the overall performance. Assessment must be made on the overall rating listed above and in terms of the trend in performance. Section 2 : Annual Appraisal Form To the filled up by the appraisee at the end of the annual review year. Section 3 : Potential And Qualitative Assessment The objective is to provide an opportunity to the employee and the manager to discuss the strengths that the individual brings to the job and examine the limitations, which may require attention. The aim is to improve performance and development of the individual.

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Section 4 : Overall Performance / Potential

Assessment
Space for other comments by the manager (if required for any issues with regard to constraints to effective performance and / or supporting actions to achieve target).

a) Ratings / Final Recommendation

Rating has to be given by the Regional Manager / General Manager / Functional Head after a through appraisal of the performance of the employee and in accordance with the parameters given. Mention if any promotion / salary discrepancy / rewards / movement is recommended. b) Signature The managers and employees should sign the form at the end of the discussion acknowledging that the objectives of the appraisal have been achieved and emphasizing a joint commitment to implement and actions agreed upon. Signatures are to confirm that the form has been read and the key points have been noted. Section- 5 : Assessment For Development And

Growth
Training for improvement and career development the training plan for the employee for the coming year should be discussed.

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The training identification form has to be filled and returned to the HR department. In the month of the April for the preparation of the training calendar for the forth coming year. The manager should return the complete field form within ten days hence from the completion of the Annual Review period to the HRD Dept. in order to attain consistency of the appraisal standards and relevant follow up action.

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4. RESEARCH METHODOLOGY

4.1.

Research Design

In general terms research methodology is the process of carrying out research in a formalized and scientific way. It is one manner in which one proceeds with his research design adopted. The research done is exploratory and analytical in nature. The major emphasis in studies was on discovery of new ideas and insights. Research is done as Firstly to understand the concept of performance management. What is the area of performance management?

How it is being implemented in HCL?

What is the assessment process of performance management?

Did questionnaire survey with the sample size of 30.It was conducted for three main departments-Sales, Support and Service?

Did analysis and prepared Column charts according to the questionnaire survey response?

63

The assessment is then done to bring out what is the process being followed in HCL Infosystems Ltd. regarding performance management.

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4.2.

Data Collection Method

a. Secondary Data - It refers to the data that has already been collected, the secondary data, which has been used to carry out this study, are as follows: * Performance assessment and development plan manual. * Companys Internet site (www.hcl.in) * Other relevant study materials and websites.

evidence, in the form of a hypothesis test, indicates otherwise that is, when researcher has a certain degree of confidence, usually 95% to 99%, that the data does not support the null hypothesis. It is possible for an experiment to fail to reject the null hypothesis. H0 = the null hypothesis

Assumption: The Performance Management System in

HCL Infosystems is not effective.

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4.3.

Analysis

of

PMS

Processes

&

Components 4.3.1. Planning

In an effective organization, work is planned in advance. This includes setting performance expectation and goals for individual in order to channel effort towards achieving the organizational objectives. Involvinng employee in planning process is essential to their understanding of the goals of the organization, what needs to be done, why it needs to be done, and expectation of accomplishing the goals.

2.9 2.8 2.7 Score 2.6 2.5 2.4 2.3 2.2 Overall Sales Service Support 2.61 2.47 2.89 2.83 Series1

Function

The PMS in terms of planning in HCL fairs around average, where they need to put planning system in a very scientific way. They need to design the entire planning session taking

66

into consideration the aspiration and need of the people whose performance needs to be planned.

4.3.2.
Designing

Monitoring
effective feedback into a performance

management programme will improve individual and team performance and will make your organization more effective. With effective feedback process, employees can see their progress and that motivates them to reach their performance goals effectively.

3.1 3 2.9 2.8 Score 2.7 2.6 2.5 2.4 2.3 Overall Sales 3.02 2.93 2.54 Service Support 2.95 Series1

Function

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The PMS of HCL stand in between for monitoring, where they need to develop a feedback channel into the system, which will capture the feedback in holistic way and must be part of organizational culture.

4.3.3.

Developing Employees
with training and development

Providing employees

opportunities encourages the good performance, strengthen job related skills and competencies , and help employee keep up with changes in the work place.

2 1.8 1.6 1.4 1.2 Score 1 0.8 0.6 0.4 0.2 0

1.84 1.53

1.52

1.37

Series1

Overall

Sales

Service

Support

Function

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The Employee development in HCL is fairly better, where the feedback from PMS is implemented by the way of training and development. Where the organization equips people with the skill which will be required in future.

4.3.4.

Rating

Within the context of formal appraisal performance requirement, rating means evaluating the employee performance against the element and standard in an employee performance appraisal plan and assigning a rating of record.

69

3.5 3 2.5 Score 2 1.5 1 0.5 0 Overall Sales Service Support 2.99 2.56 3.00 3.25 Series1

Function

The rating of Performance appraisal system in HCL is satisfactory , ratings are more objective for sales , which people in service and support dont view as more subjective.

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4.3.5.

Action Based Performance

A Basic principle of effective management is that all behavior is controlled by its consequences. Those consequences should be both formal and informal and both positive and negative. Positive consequences include rewards and recognition.promotion.Negative consequences means may include counseling, reassigning, removing or downgrading.

2 1.8 1.6 1.4 1.2 Score 1 0.8 0.6 0.4 0.2 0

1.78

1.97 1.30 1.64 Series1

Overall

Sales

Service

Support

Function

The PMS in HCL fairs in terms of action based performance. HCL administers positive and negative consequences with apt.

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4.3.6.

Analysis

If we look at the following graph, which measures the effectiveness of PMS in HCL, we find out that it is quite effective and are continually achieving the purpose of enhanced performance.

4.3.7.

Effectiveness

Sign of a good system is that, it achieves what it has been designed to achieve. The principle of execution achieves the end with best means and delivers the best result.

3 2.5 2 Score 1.5 1 0.5 0 Overall Sales Service Support 1.61 2.57 1.82 1.64 Series1

Function

The effectiveness score of HCL is fairly high where the employees seem to be happy with current PMS

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system .HCL need to work for sales, where they need to design the new PMS system. The PMS of HCL is very effective on action based performance and developing employees, which clearly shows that as an organization HCL is highly progressive organization which continually develop people and provides negative and positive feedback. While, it need to work in the area of planning, monitoring and rating , where they have to get into more systematic and have a separate session on planning , mid year review , and need to teach appraiser how to provide rating objectively. They need to plan and devise KRA sessions for each employee by taking an objective of getting all the KRA in Month , which need to discussed jointly and must be agreed between the Appraiser and Appraisee

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5. RECOMMENDATIONS 5.1. Recommendations

1. Though the employees are free in all respects, there should be more Employee Empowerment. 2. Employees should be encouraged to do work creatively and innovate to improve the growth rate of organizations. 3. While posting employee in different departments their personal choices should also be taken into consideration. 4. Executives must be given jobs where they are creative rather than following orders of the boss and obeying them willingly. 5. The career growth of employees should be planned on the long-term basis.

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6. The (candidates) not considered for promotion, should be informed about their weaknesses so that they can work on it. 7. Separate session on planning the KRA should be taken up and must be discussed and signed jointly between the appraiser and the appraisee. 8. HCL should introduce mid year review into the system and must rate the employee and provide them with necessary training and development.

6. CONCLUSION

HCL Infosystems Ltd. though seems to be an open organization but has a conservative approach towards its performance management policies. There are many worker policies provided for them. Besides this, their policies are quiet rigid. There is no proper formation of grievance cell. Only basic amenities are being provided to workers. Thus the strengths and weaknesses of the organization can be listed below.

Strengths
High concern for excellence in performance. Continuous development of workforce.

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No place for displacing personnel power. A strong desire for making an impact on others for the well being of the organization. A good teamwork. A desire to change adverse situations.

Weaknesses
Under utilization of decision-making power. Rigid hierarchy level.

7. BIBLIOGRAPHY

Books
Organizational behavior - Robbins, Stephen P Personnel Management and Human Relations Venkata Ratnam, C S and Srivastava, B K Human Resource Management - Ashwathappa, K Human Resource Management - Rao, V S P

Web sites

www.google.com

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www.hrmguide.net www.managementscience.org www.londonexternal.ac.uk www.hr.com www.wikipedia.com

8.

APPENDIX 1

Performance Assistance & Development Plan Important Nothing hurts more then the felling of the employee that his/her performance is not evaluated properly. The whole exercise would be futile if the appraisals are not done objectively based on actual performance during the assessment period. Scant regard to this exercise may denotative the willing and committed employees and rated their growth and development in the organization.

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Name: Grade: Designation: Region: Last Change of grade in (mm/yy):

Ec No: Date of joining: Department:

Personal & Educational qualification (with Year and Institute): 1. 2. 3. Appraisal period in (mm/yy) from Appraisal Record (To be filled by HRD) to

Quarter 1. 2. 3. 4. Annual

Period

Name of the Appraisal

Rating

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Performance Assistance & Development Plan

Section 1 Quarterly self appraisal form Goal setting (To be filled after discussing with your manager. In case you have had change in the assignment, or manager, have the figure attested by your former manager wherever possible.) Name of Appraisee : EC. No.: Appraisal Period : QTR (JAS/OND/JFM/AMJ) Tick whichever Qtr is applicable KRAs/Assignments Target for the QTR Achievements Rating

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Guide for Achievement Rating (1) Outstanding, (2) Very Good, (3) Good, (4) Not up to the Expectation Performance Assistance & Development Plan I. Specify one achievement which is beyond target /

expectations during the quarter and reason for that achievement.

II.

In case of shortfalls (if any), list the assistance/help

you require to remove the same in the next Quarter.

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III.

If you are working in a team list down your team

members.

IV.

Overall performance rating during the Quarter:

(To be filled by Appraise) Appraisers Rating Guide for performance Rating (1) Outstanding, (2) Very Good, (3) Good, (4) Not up to the Expectation

(To be filled by Appraise) Appraisers Rating Guide for performance Rating (1) Outstanding, (2) Very Good, (3) Good, (4) Not upto the Expectation

Signature of the Appraise_____________ Appraiser______________ Date :

Signature of the

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Performance Assistance & Development Plan Section 2 Annual appraisal form Name of Appraisee: ____________________________ Ec. No.: ___________________ Appraisal Period From: __________________To: ______________________________ Self-Appraisal: 1. Does your role fully utilize your knowledge skills? Qualitatively

Qualitatively

2. What additional responsibilities would you like to handle?

3. List significant educational attainments during the period under review. _________________________________________________ _________________________________________________ _________________________________________________ _____________________________________________

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4. List if you have undergone any training during this period. _________________________________________________ _________________________________________________ _________________________________________________ _____________________________________________ 5. List the location you dont mind moving to. a.)_________________________b)__________________c). ________________

6. List three major issues which are bothering you. _________________________________________________ _________________________________________________ _________________________________________________ _____________________________________________ 7. List there major factors you are proud of working for the organization: _________________________________________________ _________________________________________________ _________________________________________________ _____________________________________________ Signature of the Appraisee _______________________ Date:

Performance Assistance & Development Plan SECTION 3 POTENTIAL AND QUALITIVE

ASSESSMENT

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(To filled by the Appraiser/Manger)

S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Guide for Rating

Qualities/Areas Quality of Work Cost Saving Assist Others Creative Thinking Team Leader/Team player Independent Working Dependability Internal Customers Satisfaction Farsightedness Analytical/Logical Approach Interaction with seniors/cross function Problem Solving Capability Communication Professional/Technical knowledge Behavior/Attitude

Rating

(1) Outstanding, (2) Very good, (3) Good, (4) Not up to the expectation 2. List specific strengths/ areas to be focused for individuals development. STRENGTHS AREAS OF DEVELOPMENT

3. What are the other areas where individuals potential can be explored?

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85

Performance Assistance & Development Plan

OVERALL ASSESSEMENT

PERFORMANCE/

POTENTIAL

Comments by immediate manager

Signature of the Appraise_________________ Signature of the Appraiser___________ Date: (This part not to be discussed with the employee) Rating by Regional Manager/General Manager/Functional Head Rating: 25% Top 25% Bottom 5% Next 45% Next

If employee is rated in top 25% then please specify the exception achievements during the appraisal period.

(Authorized Signatory)

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Overall view of performance Trend Declining Stable Improving

(Please tick whichever is applicable) Final Recommended with respect to (If any): 1 2 3 4 Promotion: Salary Discrepancy: Exceptional reward: Movement:

New Structure (To be filled by HRD) Confirmation/probation/increment :_____________________ Compensation ________________________ level/basic/designation: w.e.f.

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Performance Assistance & Development Plan

SECTION-5 ASSESSEMENT FOR DEVELOPMENT AND GROWTH (Identification of training and Development Need .To be sent to HRD in the first week of April) (For the use of HRD) NAME: EC.NO. DEPARTMET: GRADE: DESIGNATION: LOCATION:

Training History (Information on the Soft Skill/Technical Training undertaken by the Appraise in the previous years) Courses/training underwent 1. 2. 3. 4. Effectiveness/impact on the appraisers performance

Training Needs Identification (Specify on the type of Soft Skills like Communication/ Presentation skills, supervisory Development, selling skills, Motivation & team building, attitudinal skills and Technical Training you will like the appraise to under to order To improve his/ her performance on the job to meet future needs) 1. 2. 3. 88

5. 6. Signature of the appraise__________________ Signature of the appraiser___________ Date: Date:

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