PROJECT REPORT

“A STUDY ON PERFORMANCE MANAGEMENT”

At
HCL INFOSYSTEMS LTD.
NOIDA

Submitted towards partial fulfillment of the

Requirements for the award of the
PGDM Programme 2009-2010
Approved by AICTE
(Equivalent to MBA)
ACADEMIC SESSION 2009 - 2010

Submitted to :- Submitted by:-

Prof. Shweta Mittal Akansha Jaiswal 09022

HR Department Neha Singh
IMS Ghaziabad Prerna Paul
Priyanka pathak
Ragiv Jalan
Rupal Azmani
Vikas Darbari

IMS GHAZIABAD
LALKUAN

1
Contents 2.8. Perfor
mance

1. Introduction Improv
ement
1.1. HCL an overview of the
1.2. HCL DNA Organi
zation
1.3. Employer spotlight:
or a
1.4. About HCL
Subsyst
1.5. Strong SAP Capabilities
em is
1.6. Vision statement
an
1.7. Mission Statement
Integrat
1.8. Quality Policy
ed
1.9. Objective
Process
1.10. Core Values
2.9. Ongoin
1.11. A Snapshot Of HCL
g
Infosystems Ltd.
Activiti
es of
Perfor
2. Literature Review - PMS
mance
2.1. An Introduction of
Manag
Performance Management
ement
2.2. Levels of performance
management
2.3. Value for money
2.4. Measures and metrics
7
2.5. Processes
2.6. Objectives of a Performance
7
Management System
12
2.7. Overall Goal and Focuses of
13
Performance Management
15

2
16 3.2. Signifi
16 cance
16 of the
16 Project
17 3.3. Definiti
17 on - A
17 Theoret
ical
Perspec
tive
20 3.4. Prepara
22 tion
23 and
24 Plannin
25 g for
29 perfor
mance
30 manage
ment
30 3.5. Perfor
mance
30 Manag
2.10. Basic Steps ement
and
2.11.Project Performance
Develo
Management
pment
2.12. Managing Performance
3.6. Perfor
Effectively
mance
2.13. Feature of good PMS
Assess
3. Project
ment
3.1. Objective of the project –
and
Introduction of the
Develo
problem

3
 pment Plan In HCL 48.
INFOSYSTEMS LTD
4. Research Methodology 51
4.1 Research Design 52
4.2 Data Collection Method 53
4.3 Analysis of PMS 60
5. Recommendation 61
6. Conclusion 62
7. Bibliography 63
8. Appendix

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37 31
37 31

44 31
32
44 32
45
47

47

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36
31 36
31 37
37
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32
32 56

57

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58 5
9

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 titled “PERFORMANCE
MANAGEMENT”, I am graceful to Institute of Management
and Technology, Ghaziabad for helping us towards the
completion of the project.

I extend my deepest and sincere thanks to my project guide,

Mr. Ram Krishn 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.

6
 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 today’s 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.

7
 INTRODUCTION

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

8
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 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.

9
.

1976 Hindustan Computers Limited (HCL) born.

1977 Distribution alliance formed with Toshiba for copiers.

1978 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.

10
1983 Indigenously develops an RDBMS, a Networking OS
a Client Server architecture, at the same time as global IT
peers.

1986 HCL becomes the largest IT company in India.

1988 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

HCL-Hewlett Packard Ltd.
JV develops multi-processor Unix for HP-heralds HCL’s
entry into contract

1994 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 Apollo’s

11
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 India’s 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.

12
 • 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.

13
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.

14
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.

15
 This entrepreneurial and win-win relationship driven culture
continues to guide HCL in all its endeavors.

Employer spotlight:

HCL is one of India’s 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 Aerospace,

16
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 years 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

17
 offer 24-x7 support offering for critical sites. With more than
70 SAP implementations till date, HCL has been rendering
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.

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 India’s 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 India’s
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

18
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.

1.1. 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
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,

19
Sap’s "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.

VISION STATEMENT

• Together we create enterprises of tomorrow.

MISSION STATEMENT

• To provide world class information technology solution

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

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.’

OUR OBJECTIVE

OUR MANAGEMENT OBJECTIVE

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• 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 company’s

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.

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.

A SNAPSHOT OF HCL Infosystems Ltd.

• India’s leading IT company

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HCL In say is India’s 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.

Company’s continuous and consistent anticipation of the

requirement of the IT Industry has led it to undertake the

22
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.

23
 PMS

An Introduction of Performance Management

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

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 constraints of
available resources, through to continuous improvement in

24
 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.

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
• Relating individuals' reward and remuneration with
achievement of outcomes.

25
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; service providers supply performance information.

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 improvement. Performance
management identifies opportunities for maximizing
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.

Managing for results

Managing for results requires the organization to focus on the

outputs of the processes and activities undertaken by the

26
 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.

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 organization’s priorities level.

2. Organization’s priorities: at the highest level

performance management is rooted in the organization’s
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 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

27
 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.

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:

• 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

28
 • Effectiveness - the extent to which objectives have
been achieved, and the relationship between the intended
impacts and actual impacts of an activity.

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,
within the same organisation or elsewhere in the public
sector.
Business processes can be distinguished by:

• The extent to which the activities involved are people-

oriented as opposed to automated

29
 • 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.

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
• Using results for informed decision-making
• Improving performance.

Research shows that most organizations have the components

of performance management in place, but they are not always
used to overall advantage. A possible five-step approach that

30
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
organization’s maturity and the strengths and 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.
• 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,

31
 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.

Step 4: Establish where you want to be and begin to build

performance management into business processes and
into the culture

32
 • 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 against your particular perspective on
effectiveness, efficiency and economy and against your
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?
• What is important for our organization?
• What was achieved?

Techniques: Process assessment; your own targets, looking at

benchmarks from the outside world.

33
The process of performance management

34
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
performance management cycle through open discussion

35
 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 multi-
purpose 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.

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.

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

36
affect overall organizational performance management as
well.
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.
Trainers are focusing much more on results for performance.
Many trainers with this priority now call themselves
performance consultants.

37
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 Plan,

Performance Appraisal 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
development, planning, organizing and coordinating
activities.

1. Review organizational goals to associate preferred

organizational results in terms of units of performance,

38
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 results were achieved
6. Identify more specific measures for each first-level
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)
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)

39
 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”

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"

40
 e. To "pilot", or test, the operation of a new performance
management system.

Performance management mainly include

following things:

Performance management is the systematic process by which

an agency involves its employees, as individuals and
members of a group, in improving organizational
effectiveness in the accomplishment of agency mission and
goals.

• Planning work and setting expectations,

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

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

41
 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

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

Monitoring

42
 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.

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
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

43
 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.

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.
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.

Rewarding

44
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.

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.
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.

45
 Features of a 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.

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

46
 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 officer’s 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 :

• 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

47
 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).

A Continuous Process

Staff performance management cycle is a continuous process

which involves :
• Performance planning
• Continuous coaching and development
• Interim review
• Performance appraisal

48
 •

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.

49
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.

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 appraiser’s 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.

Performance appraisal

Performance appraisal is the formal assessment on the

appraisee’s 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.

51
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

52
and standard. Staff will be informed of these criteria and
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.

PROJECT

53
 Objective of the Project – Introduction of the
Problem

Primary Objective
To understand the basic features of performance management
plan or performance assessment in HCL and their
contribution in the success of HCL Infosystems Ltd.
within a short span of previous years.

Secondary objective
To identify which of the functional aspects/ Parameters are
low and which dysfunctional aspects/ Parameters are high 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.

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 India’s
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.

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 actions-

1. 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.

55
 7. Conduct quarterly performance development
discussions.

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.

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.

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.

56
 • Define the performance standards for key components
of the job,

• 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

Performance Assessment and Development Plan

In HCL INFOSYSTEMS LTD.

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.

57
Performance appraisal guidelines

Appraisal procedure
Performance appraisal encompasses the on-going work-
related 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).

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.

58
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, M-
measurable, 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

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.

59
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 subordinate’s performance. Enter the date by which the
target should be achieved.

d) Overall View Of Performance

This is the Appraisee/manager’s 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.

Section – 4 : Overall Performance / Potential

Assessment

60
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.

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.

61
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.

62
RESEARCH METHODOLOGY

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.

64
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.

* Company’s 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.

65
 Analysis of PMS – Processes & Components

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
2.6 2.89 2.83
Score
2.5 Series1
2.61
2.4 2.47
2.3
2.2
Overall Sales Service Support
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
into consideration the aspiration and need of the people
whose performance needs to be planned.

66
Monitoring

Designing 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 3.02
2.95
2.93
2.6 Series1
2.5
2.54
2.4
2.3
Overall Sales Service Support
Function

67
 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.

Developing Employees

Providing employees with training and development

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 1.84
1.53 1.52 1.37
0.8 Series1
0.6
0.4
0.2
0
Overall Sales Service Support
Function

68
 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.

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.

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

69
The rating of Performance appraisal system in HCL is
satisfactory , ratings are more objective for sales ,
which people in service and support don’t view as
more subjective.

70
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 1.97
1.78
1.64
0.8 1.30 Series1
0.6
0.4
0.2
0
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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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.

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.

2.5

Score 1.5 2.57

Series1
1 1.82 1.64
1.61
0.5

0
Overall Sales Service Support
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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RECOMMENDATIONS

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.

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.
• No place for displacing personnel power.

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 • 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.

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

• www.hrmguide.net

• www.managementscience.org

76
 • www.londonexternal.ac.uk

• www.hr.com

• www.wikipedia.com

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.

Name: Ec No:

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Grade: Date of joining:

Designation: Department:

Region:

Last Change of grade in (mm/yy):

Personal & Educational qualification (with Year and

Institute):
1.
2.
3.
Appraisal period in (mm/yy) from to
Appraisal Record
(To be filled by HRD)

Quarter Period Name of the Appraisal Rating

1.
2.
3.
4.
Annual

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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

KRA’s/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.

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

require to remove the same in the next Quarter.

If you are working in a team list down your team members.

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Overall performance rating during the Quarter:

(To be filled by Appraise)

Appraiser’s Rating

Guide for performance Rating

(1) – Outstanding, (2) – Very Good, (3) – Good, (4) – Not up to the Expectation

(To be filled by Appraise)

Appraiser’s Rating

Guide for performance Rating

(1) – Outstanding, (2) – Very Good, (3) – Good, (4) – Not upto the Expectation

Signature of the Appraise_____________ Signature of the

Appraiser______________

Date :

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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 don’t 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

83
(To filled by the Appraiser/Manger)

S. No. Qualities/Areas Rating

1. Quality of Work
2. Cost Saving
3. Assist Others
4. Creative Thinking
5. Team Leader/Team player
6. Independent Working
7. Dependability
8. Internal Customers Satisfaction
9. Farsightedness
10. Analytical/Logical Approach
11. Interaction with seniors/cross function
12. Problem Solving Capability
13. Communication
14. Professional/Technical knowledge
15. Behavior/Attitude

Guide for Rating

(1) Outstanding, (2) Very good, (3) Good, (4) Not up to the
expectation

2. List specific strengths/ areas to be focused for individual’s

development.
STRENGTHS AREAS OF DEVELOPMENT

3. What are the other areas where individual’s potential can

be explored?

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85
Performance Assistance & Development Plan

OVERALL PERFORMANCE/ POTENTIAL

ASSESSEMENT
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: Top 25% Next 45% Next
25% Bottom 5%

If employee is rated in top 25% then please specify the

exception achievements during the appraisal period.

(Authorized Signatory)

86
Overall view of performance
Trend
Declining Stable Improving

(Please tick whichever is applicable)

Final Recommended with respect to (If any):
1 Promotion:

2 Salary Discrepancy:

3 Exceptional reward:

4 Movement:

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

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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 Effectiveness/impact on the appraiser’s performance
1.
2.
3.
4.

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:

89