Performance Appraisal system in HCL

ABOUT HCL

HCL, with its headquarters just outside Delhi and a workforce of more than 30,000 spread over 15 countries, including Australia, asks employees to rank their boss and other company managers. The difference is that the results are posted online for everyone to see. There's nowhere to hide.

ABOUT HCL cont..

"We believe the workplace is actually an extension of the campus. It's all about making mistakes and learning. There is a cultural orientation around virtual campus creation at the workplace and this is part of a significant investment in knowledge management and knowledge banks."

Performance Appraisal objective

The identification, measurement, and management of human performance in organization.

A Model of Performance Appraisal

Identification

Measurement

Management

Dimension
An aspect of performance that determines effective job performance.

The Benefits of Performance Appraisal

Employer Perspective:

Despite imperfect measurement techniques, individual differences in performance can make a difference to company performance.
Documentation of performance appraisal and feedback may be needed for legal defense. Appraisal provides a rational basis for constructing a bonus or merit system. Appraisal dimensions and standards can help to implement strategic goals and clarify performance expectations. Providing individual feedback is part of the performance management process. Despite the traditional focus on the individual, appraisal criteria can include teamwork and the teams can be the focus of the appraisal.

The Benefits of Performance Appraisal (cont.)

Employee Perspective: Performance feedback is needed and desired. Improvement in performance requires assessment. Fairness required that differences in performance levels across workers be measured and have an effect on outcomes. Assessment and recognition of performance levels can motivate workers to improve their performance.

Rankings and Performance Levels Across Work Teams managers and below
Actual 10 (High) 9 8 7 6 5 4 3 2 1 (Low) Ranked Work Ranked Work Jaya (1) mona (2) Sonam (3) Ranked Work Farha (1) rahul (2) Lisa (3)

Manisha (1) Uma (2)

Joy (3) Boby (4) Richa (5)

Govind (4) Kely (5)

Joly (4) Steve (5)

Sample Trait Scales

Rate each worker using the scales below. Decisiveness: 1 2 Very low Reliability: 1 2 Very low Energy: 1 2 Very low Loyalty: 1 2 Very low

4 Moderate

7 Very high

4 Moderate

7 Very high

4 Moderate 4 Moderate

7 Very high 7 Very high

Evaluation of Major Appraisal Formats Administrative Developmental Appraisal

Format Absolute Relative Use 0 ++ + 0 0
- Poor

Use

Legal Defensibility 0 -++ +

+
-

Trait
Behavior Outcome
-- Very Poor

+
0
0 Unclear or mixed + Good

++ Very good

How to Determine and Remedy Performance Shortfalls

Cause
Ability

Questions to Ask
Has the worker ever been able to perform adequately? Can others perform the job adequately, but not this worker? Is the workers performance level declining? Is performance lower on all tasks? Is performance erratic? Are performance problems showing up in all workers, even those who have adequate supplies and equipment?

Possible Remedies
Train Transfer Redesign job Terminate Clarify linkage between performance and rewards Recognize good performance Streamline work process Clarify needs to suppliers Change suppliers Eliminate conflicting signals or demands Provide adequate tools

Effort

Situation

360 Feedback
The combination of peer, subordinate, and self-review

Key Steps in Implementing 360 Appraisal

Top management communicates the goals of and need for 360 appraisal.
Employees and managers are involved in the development of the appraisal criteria and appraisal process.

Employees are trained in how to give and receive feedback.

Employees are informed of the nature of the 360 appraisal instrument and process. The 360 system undergoes pilot testing in one part of the organization. Management continuously reinforces the goals of the 360 appraisal and is ready to change the process when necessary.

Performance management system for mangers and above

HCL philosophy is, "what gets measured, gets reviewed and what gets reviewed, gets improved"
Performance Tracking System: They have a, a daily to weekly to

monthly to quarterly review system. This is done through tracking enablers and results. This leads to satisfaction (both internal and external), people satisfaction and business growth.HCL's belief for holistic quality improvement is realized 360 Degree Feedback: It shares a reciprocal relationship with various processes facilitating continuous improvements in areas such as selection, career planning, goal setting, reward schemes and culture.

Assessments in HCL are not just for improvement and development, but are also well recognized and rewarded.

HCL Perot Systems (HPS) is a joint venture between HCL Technologies and Perot Systems Corporation. Appraisal system
For appraisal of personnel, HPS does not follow a formal structure. After the end of every project, HPS does project reviews., this also helps them in assessing an individuals true competence, which can be later used for his career development. To identify under-performers, HPS has a robust management system called Performance Improvement Plan. This system is also linked to their future training needs for identifying and plugging skills gaps. While HR policies at HPS are linked to performance and contemporary framework, compensation is linked to role, responsibility, qualification and experience and skill level of each associate, assessed at the time of joining. There are also schemes to identify and recognize Star Performers and Star Teams. The performance and potential of an associate plays a crucial role in his growth and progression. The companys reward management plan incorporates rewards like associate of the year, exceptional contributor, quality champion and competency development. To retain their workforce, last year the company had started a new programme for the top management. Under this, the senior managers and top management would be offered dynamic profiles as rewards (read money) are not the big criteria.

A Performance Tracking System is

A management tool that helps manage employees, supervisors, and departments based on actual objective performance standards instead of subjective guesswork. Performance tracking defines performance standards for employees, supervisors, and managers and measures actual performance against standards. It identifies employees, supervisors, and departments who are meeting, exceeding, or lagging behind performance standards. What are the benefits of a Performance Tracking System?

Objective not subjective assessment Easy and timely access to actual performance levels Facilitates proactive management of "employee" resources