A

PROJECT REPORT
ON
PERFORMANCE APPRAISAL ON TCS

SUBMITTED TO
MAHARASHI DAYANAND
UNIVERSITY, ROHTAK
In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

FOR THE ACADEMIC SESSION
2018-2020.
SUBMITTED BY

SANJUKTA BOSE

MBA 4thSEM.

ST. THOMAS MANAGEMENT INSTITUTE

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CERTIFICATE

This is certifying that Mr. Sanjukta Bose a bonafide student of ST. THOMAS
MANAGEMENT INSTITUTE has satisfactorily conducted project report
entitled
"PERFORMANCE APPRAISAL ON THE COMPANY OF TCS".
I wish him all success in every edventor of life.

S.T.M.I
Dept. Of management

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 CERTIFICATE

This is to certify that the project work entitled “Performance Appraisal on the
company TCS” Submitted by Sanjukta Bose for the partial fulfillment of Degree
of Master of Business Administration from MAHARASHI DAYANAND
UNIVERSITY, Rohtak is an authentic work performed by the student.

This work has submitted for the sole purpose of academic interest.

External Examiner

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DECLARATION

I hereby declare that the project entitled on performance appraisal of TCSsubmitted by me, in
partial fulfillment of the requirements for award of the degree of MBA at ST.THOMAS
INSTITUTE OF MANAGEMENT, affiliated to MAHARSHI DAYANAND UNIVERSITY,
ROHTAK, is work turned out by me and has not been submitted to any university/institute for
award of any degree/ diploma.

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PREFACE

To attain maturity and perfection in any field, theoretical knowledge must be blended with
practical application. Theory of MANAGEMENT needs to tested and verified in various types of
situation. Since a manager works in a dynamic and complex environment, practical training is
essential for getting acquainted and complex environment, practical training is essential
acquainted with the environment.

This project report has been completed in a way to provide an analytical frame work for
understanding the theoretical as well as practical knowledge of human resource management and
its importance in the running of any organization. In the following pages, I am sharing my
wonderful experience and knowledge which I have been a part of since last 2 months.

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ACKNOWLEDGEMENT
I would not have completed this project without the help, guidance and support of certain people
who acted as guides and friends along the way. I would like to express my deepest and sincere
thanks to my faculty guide MEENAKSHI PANDEY, for her invaluable guidance and help. The
project could not be completed without her support and guidance. I am also thankful to Dipayan
Singha my elder brother for his help in completing the project. They acted as a continuous source
of inspiration and motivated me throughout the duration of the project helping me a lot in
completing this project.

I would like to express our immense gratitude towards our institution ST. Thomas INSTITUTE
OF MANAGEMENT, MAHARSHI DAYANAND UNIVERSITY, ROHTAK, which fulfilling
our most cherished goal. I am very much thankful to our internal guide professors for extending
their cooperation of project.

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 TABLE OF CONTENTS
S N0. CONTENT PAGE
NO.

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1. Introduction 8-11

2. Objectives of performance appraisal 11-13

3. Introduction of the company 13-15

4. Star model of organization 16

5. About recruitment and selection 17-21

6. Literature review 22-24

7. Research methodology 25-26

8. Data analysis 27-42

9. Findings 43

10. Conclusion 44

11. bibliography 45

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INTRODUCTION
A performance appraisal, also referred to as a performance review, performance
evaluation, (career) development discussion, or employee appraisal is a method by which the job
performance of an employee is documented and evaluated. Performance appraisals are a part
of career development and consist of regular reviews of employee performance
within organizations. Annual performance reviews have been criticized as providing feedback
too infrequently to be useful, and some critics argue performance reviews in general do more
harm than good. A performance appraisal is a systematic, general and periodic process that
assesses an individual employee's job performance and productivity in relation to certain pre-
established criteria and organizational objectives. Other aspects of individual employees are
considered as well, such as organizational citizenship behavior, accomplishments, potential for
future improvement, strengths and weaknesses, etc.To collect PA data, there are three main
methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations
are the most commonly used with a large variety of evaluation methods. Historically, PA has
been conducted annually (long-cycle appraisals); however, many companies are moving towards
shorter cycles (every six 10months, every quarter), and some have been moving into short-cycle
(weekly, bi-weekly) PA. The interview could function as "providing feedback to employees,
counseling and developing employees, and conveying and discussing compensation, job status,
or disciplinary decisions". PA is often included in performance management systems. PA helps
the subordinate answer two key questions: first, "What are your expectations of me?" second,
"How am I doing to meet your expectations?

Performance management systems are employed "to manage and align" all of an organization's
resources in order to achieve highest possible performance. "How performance is managed in an
organization determines to a large extent the success or failure of the organization. Therefore,
improving PA for everyone should be among the highest priorities of contemporary
organizations". Some applications of PA are compensation, performance improvement,
promotions, termination, test validation, and more. While there are many potential benefits of
PA, there are also some potential drawbacks. For example, PA can help facilitate management-
employee communication; however, PA may result in legal issues if not executed appropriately,
as many employees tend to be unsatisfied with the PA process. PAs created in and determined as

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useful in the United States are not necessarily able to be transferable cross-culturally. A central
reason for the utilization of performance appraisals (PAs) is performance improvement ("initially
at the level of the individual employee, and ultimately at the level of the organization"). Other
fundamental reasons include "as a basis for employment decisions (e.g. promotions,
terminations, transfers), as criteria in research (e.g. test validation), to aid with communication
(e.g. allowing employees to know how they are doing and organizational expectations), to
establish personal objectives for training" programs, for transmission of objective feedback for
personal development, "as a means of documentation to aid in keeping track of decisions and
legal requirements and in wage and salary.  Additionally, PAs can aid in the formulation of job
criteria and selection of individuals "who are best suited to perform the required organizational
tasks". A PA can be part of guiding and monitoring employee career development. PAs can also
be used to aid in work motivation through the use of reward system.

What Is a Performance Appraisal?

A performance appraisal is a regular review of an employee's job performance and overall
contribution to a company. Also known as an "annual review," "performance review or
evaluation," or "employee appraisal," a performance appraisal evaluates an employee’s skills,
achievements and growth, or lack thereof. Companies use performance appraisals to give
employees big-picture feedback on their work and to justify pay increases and bonuses, as well
as termination decisions. They can be conducted at any given time but tend to be annual, semi-
annual or quarterly

Why Companies Give Performance Appraisals

Because companies have a limited pool of funds from which to award raises and bonuses,
performance appraisals help determine how to allocate those funds. They provide a way for
companies to determine which employees have contributed the most to the company’s growth so
companies can reward their top-performing employees accordingly. Performance appraisals also
help employees and their managers create a plan for employee development through additional
training and increased responsibilities, as well as to identify shortcomings the employee could
work to resolve. Ideally, the performance appraisal is not the only time during the year that
managers and employees communicate about the employee’s contributions. More frequent

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conversations help keep everyone on the same page, develop stronger relationships between
employees and managers, and make annual reviews less stressful.  

Performance Appraisal Types

Most performance appraisals are top-down, meaning supervisors evaluate their staff with no
input from the subject. But there are other types:

 Self assessment: Individuals rate their job performance and behavior.

 Peer assessment: An individual's work group rates his performance.
 360-degree feedback assessment: Includes input from an individual, her supervisor and
her peers.
 Negotiated appraisal: A newer trend, utilizes a mediator and attempts to moderate the
adversarial nature of performance evaluations by allowing the subject to present first.
Also focuses on what the individual is doing right before any criticism is given. This
structure tends to be useful during conflicts between subordinates and supervisors.

Performance Appraisal Criticism

An issue with performance appraisals is that differentiating individual and organizational
performance can be difficult. And if the evaluation's construction doesn't reflect the culture of a
company or organization, it can be detrimental. Employees report general dissatisfaction with
their performance appraisal processes. Other potential issues include:

 Distrust of the appraisal can lead to issues between subordinates and supervisors or a
situation in which employees merely tailor their input to please their employer.
 Performance appraisals can lead to the adoption of unreasonable goals that demoralize
workers or incentivize them to engage in unethical practices.
 Some labor experts believe that use of performance appraisals has led to lower use of
merit- and performance-based compensation.
 Performance appraisals may lead to unfair evaluations in which employees are judged not
by their accomplishments but by their likeability. They can also lead to managers giving
underperforming staff a good evaluation to avoid souring their relationship.

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 Unreliable raters can introduce a number of biases that skew appraisal results toward
preferred characteristics or ones that reflect the rater's preferences.
 Performance appraisals that work well in one culture or job function may not be useful in
another.

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OBJECTIVES OF PERFORMACE APPRAISAL

Providing Feedback: - Providing feedback is the most common justification for an organization
to have a performance appraisal system. Through its performance appraisal process the
individual learns exactly how well he/she did during the previous twelve months and can then
use that information to improve his/her performance in the future. In this regard, performance
appraisal serves another important purpose by making sure that the boss’s expectations are
clearly communicated.

Facilitating Promotion Decisions: - Almost everyone in an organization wants to get ahead.

How should the company decide who gets the brass rings? Performance appraisal makes it easier
for the organization to make good decisions about making sure that the most important positions
are filled by the most capable individuals.

Rightsizing or Downsizing Decisions:- If promotions are what everybody wants, layoffs are

what everybody wishes to avoid. But when economic realities force an organization to downsize,
performance appraisal helps make sure that the most talented individuals are retained and to
identify poor performers who effects the productivity of the organisation. (India's largest
software services provider TCS axed 1,000 jobs in the country due to non-performance by its
employees.

Motivating Superior Performance: - This is another classic reason for having a performance
appraisal system. Performance appraisal helps motivate people to deliver superior performance
in several ways. First, the appraisal process helps them learn just what it is that the organization
considers to be ‘‘superior.’’ Second, since most people want to be seen as superior performers, a
performance appraisal process provides them with a means to demonstrate that they actually are.
Finally, performance appraisal encourages employees to avoid being stigmatized as inferior
performers.

Setting and Measuring Goals: - Goal setting has consistently been demonstrated as a
management process that generates superior performance. The performance appraisal process is

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commonly used to make sure that every member of the organization sets and achieves effective
goals.

Counseling Poor Performers: - Not everyone meets the organization’s standards. Performance
appraisal forces managers to confront those whose performance is not meeting the company’s
expectations.

Determining Compensation Changes: - This is another classic use of performance appraisal.

Almost every organization believes in pay for performance. But how can pay decisions be made
if there is no measure of performance? Performance appraisal provides the mechanism to make
sure that those who do better work receive more pay.

Encouraging Coaching and Mentoring :- Managers are expected to be good coaches to their
team members and mentors to their proteges. Performance appraisal identifies the areas where
coaching is necessary and encourages managers to take an active coaching role.

Supporting Manpower Planning: - Well-managed organizations regularly assess their bench

strength to make sure that they have the talent in their ranks that they will need for the future.
Companies need to determine who and where their most talented members are. They need to
identify the departments that are rich with talent and the ones that are suffering a talent drought.
Performance appraisal gives companies the tool they need to make sure they have the intellectual
horsepower required for the future.

 To review the performance of the employees over a given period of time

 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 Helps to strengthen the relationship and communication between superior – subordinates
and management – employees.
 To diagnose the strengths and weaknesses of the individuals so as to identify the training
and development needs of the future.
 To provide feedback to the employees regarding their past performance.
 Provide information to assist in the other personal decisions in the organization.

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 Provide clarity of the expectations and responsibilities of the functions to be performed
by the employees.
 To judge the effectiveness of the other human resource functions of the organization such
as recruitment, selection, training and development.
 To reduce the grievances of the employees.

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INTROUCTION ABOUT THE COMPANY

Tata Consultancy Services Limited (TCS) is Software service consulting company headquartered
in Mumbai, India. TCS is the largest provider of information technology and business process
outsourcing services in Asia. TCS has offices in 42 countries with more than 142 branches across
the globe. The company is listed on the National Stock Exchange and Bombay Stock Exchange
of India.TCS is one of the operative subsidiaries of one of India’s largest and oldest
conglomerate company, the Tata Group or Tata sons Limited, which has interests in areas such
as energy, telecommunication, financial services, manufacturing, chemicals, engineering,
materials, government and healthcare.

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HISTORY

It began as the TATA Computer Centre, for the company Tata Group whose main business was
to provide computer services to other group companies. FC Kohli was the first general manager.
JRD Tata was the first chairman, followed by Nani Palkhivala. One of TCS first assignments
was to provide punched card services to a sister concern, Tata steel (then TISCO). It later bagged
the country’s first software project, the inter-branch reconciliation system (IBRS) for the central
bank of India. It also provides bureau services to unite Trust of India, thus becoming one of the
first companies to offer BPO services. In the early 1970s, Tata Consultancy services started
exporting its services. The company pioneered the globe delivery model for IT services started
exporting its services. The company pioneered the global delivery model for IT services with its
first offshore client in 1974. TCS first international order came from Burroughs, one of the first
business computer manufacturers.TCS was assigned to write code for the Burroughs machines
for several US based clients. This experience also helped TCS bag its first onsite project – the
institutional Group& Information Company (IGIC), a data centre for ten banks, which catered to
two million customers in the US, assigned TCS the task of maintaining and upgrading its
computer systems. In 1981, TCS set up India's first software research and development centre,
the Tata Research Development and Design Center (TRDDC). The first client-dedicated offshore
development center was set up for Compaq (then Tandem) in 1985. In 1989, TCS delivered an
electronic depository and trading system called SECOM for SIS SegaInterSettle, Switzerland. It
was by far the most complex project undertaken by an Indian IT company. TCS followed this up
with System X for the Canadian Depository System and also automated the Johannesburg Stock
Exchange (JSE). TCS associated with a Swiss partner, TKS Teknosoft, which it later acquired. In

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the early 1990s, the Indian IT outsourcing industry grew tremendously due to the Y2K bug and
the launch of a unified European currency, Euro. TCS pioneered the factory model for Y2K
conversion and developed software tools which automated the conversion process and enabled
third-party developers and clients to make use of it. In 1999, TCS saw outsourcing opportunity in
E-Commerce and related solutions and set up its E-Business division with ten people. By 2004,
E-Business was contributing half a billion dollars (US) to TCS. On 9 August 2004, TCS became
a publicly listed company, much later than its rivals, Infosys, Wipro and Mahindra Satyam.
Study of Recruitment, Selection and Performance Appraisal of TCS 5 during 2005, TCS
ventured into a new area for an Indian IT services company - Bioinformatics In 2008, the
company went through an internal restructuring exercise that executives claim would bring about
agility to the organization. INDIAN BRANCHES TCS has development centres and/or regional
offices in the following Indian cities: Ahmadabad, Baroda, Bangalore, Bhubaneswar, kochi,
Kolkata, Lucknow, Mumbai, Noida, Pune, Thiruvananthapuram, Patna,Haldia GLOBAL UNITS
Africa: South Africa, Morocco Asia (Outside India): Bahrain, Beijing, Hong Kong, Hangzhou,
Shanghai, Indonesia, Israel, Japan, Malaysia, Saudi Arabia, Singapore, South Korea, Taiwan,
Thailand, UAE(Dubai) Australia: Australia Europe: Belgium, Denmark, Finland, France,
Germany, Hungary, Iceland, Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain,
Sweden, Switzerland, United Kingdom North America: Canada, Mexico, USA South America:
Argentina, Brazil, Chile, Colombia, Ecuador, Uruguay, Peru EMPLOYEES TCS is one of the
largest private sector employers in India with core strength in excess of 186,914 individuals.
TCS has one of the lowest attrition rates in the Indian IT industry. In the Study of Recruitment,
Selection and Performance Appraisal of TCS 6 past TCS has been criticized by its employees in
Public forums on its Appraisal and Promotion policies. past TCS has been criticized by its
employees in Public forums on its Appraisal and Promotion policies.

ORGANISATIONAL DEVELOPMENT

At TCS, OD has contributed immensely towards redefining the organization’s relationship to its
markets, key stake holders and environment. In the years 1998-99, despite the fact that TCS had
emerged as the largest Indian software company it still suffered on its operational side. The
expertise was diffused and in order to meet the needs the employees were rotated across
domains and skills. A lot of emphasis was paid to the Voice of the Customer, in comparison to

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the Voice of employee Managers mainly focused on short-term projects instead of concentrating
on long- term ones.

They followed a reactive approach and hence lacked a proactive approach. Lack of focus on
innovation and experimentation. Absence of a formal system where in the knowledge could be
shared for ease of replication across projects. Absence of team based rewards as focus was on
individual performance. Absence of endeavors towards Image building which lead to greater
difficulty in attracting quality talent.

STAR MODEL OF ORGANIZATION DESIGN FRAMEWORK DESIGN ELEMENTS

STRATEGY: The Company’s strategy specifies the goals and objectives to be achieved as well
as the values and missions to be pursued. It sets out the basic direction of the company. TCS
follows a cost leader strategy. The focus for TCS is to attain competitive advantage is to Study of
Recruitment, Selection and Performance Appraisal of TCS 9 reduce the per employee cost and
attain economies of scale. This is the reason TCS doesn’t lay much importance to R&D.

STRUCTURE: The structure of the organization determines the placement of power and
authority in the organization. TCS has a mechanistic structure wherein the there is a formal
structure and control is imposed on employees. Rules, procedures and a hierarchy of authority
help in getting work done in time and with minimum cost. TCS has a matrix structure where is
departments exists based on specialization. Decision making is centralized.

PROCESSES: TCS has vertical processes. The needs of different departments are centrally
collected, and priorities are decided for the budgeting and allocation of the resources to capital,
research and development, training, and so on. Communication tends to follow formal channels
and employees are given specific job descriptions delineating their roles and responsibilities.
Coordination is maintained through the chain of command.

PEOPLE: People in star model depict the human resource policies of recruiting, selection,
rotation, training, and development. Human resource policies when in the appropriate
combination produce the talent required by the strategy and structure of the organization,
generating the skills and mind-sets necessary to implement the chosen strategy. The employees

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in a service organization are the biggest source of competitive advantage. There is continuous
investment in learning, and an active sharing of knowledge with the aim to convert learning into
action.

REWARDS: The purpose of the reward system is to align the goals of the employee with the
goals of the organization. It provides motivation and incentive for the completion of the strategic
direction. The organization’s reward system defines policies regulating salaries, promotions,
bonuses, profit sharing, stock options, and so forth. Reward structure at TCS is primarily focused
on individual performances. Team rewards is not a part of the compensation.

ABOUT RECRUITMENT & SELECTION

Recruitment refers to the process of attracting, screening, and selecting qualified people for a job
at an organization or firm. For some components of the recruitment process, mid- and large-size
organizations often retain professional recruiters or outsource some of the process to recruitment
agencies. The recruitment industry has five main types of agencies: employment agencies,
recruitment websites and job search engines, "headhunters" for executive and professional
recruitment, niche agencies which specialize in a particular area of staffing, or employer
branding strategy and in-house recruitment. The stages in recruitment include sourcing
candidates by advertising or other methods, and screening and selecting potential candidates
using tests or interviews.

IN-HOUSE RECRUITMENT

Under pressure to reduce costs, both large- and medium-sized employers tend to undertake their
own in-house recruitment, using their human resources department, front-line hiring managers
and recruitment personnel who handle targeted functions and populations. In addition to
coordinating with the agencies mentioned above, in-house recruiters may advertise job vacancies
on their own websites, coordinate internal employee referrals, work with external associations,
trade groups and/or focus on campus graduate recruitment. Some large employers choose to
outsource all or some of their recruitment process (recruitment process outsourcing) however a
much more common approach is for employers to introduce referral schemes where employees
are encouraged to source new staff from within their own network.

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PROCESS

1) JOB ANALYSIS: - Job analysis the proper start to a recruitment effort is to perform a job
analysis, to document the actual or intended requirement of the job to be performed. This
information is captured in a job description and provides the recruitment effort with the
boundaries and objectives of the search. Oftentimes a company will have job descriptions
that represent a historical collection of tasks performed in the past. These job descriptions
need to be reviewed or updated prior to a recruitment effort to reflect present day
requirements. Starting recruitment with an accurate job analysis and job description
ensures the recruitment effort starts off on a proper track for success. Job analysis defines
the duties and human requirements of the company’s jobs. The next step is to recruit and
select employees. We can envision the recruitment effort starts off on a proper track for
success.

Steps 1) Decide the positions to fill, through personnel planning and forecasting.

Step 2) Build a pool of candidates or these jobs, by recruiting internal or external candidate.

Step 3) Have candidates complete application forms and perhaps undergo initial screening
interviews.

Step 4) Use selection tools like tests, background investigations, and physical exams to identify
viable candidates.

Step 5) Decide who to make an offer to, by having the supervisor and perhaps others interview
the candidates.

2) SOURCING :- It involves
 Advertising , a common part of the recruiting process, often encompassing
multiple media, such as the internet ,general newspaper , job ad newspapers,
professional publications, window advertisements, job centers, and campus
graduate recruitment programs .

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  Recruiting research , which is the proactive identification of relevant talent who
may not respond to job postings and other recruitment advertising methods done
in the initial research for so- called passive prospects, and also called name –
generation, result in a list of prospects who can then be contacted to solicit
interest, obtain a resume/cv, and be screened .
3) SCREENING and SELECTION :-Suitability for a job is typically assessed by looking
for skills, eg. Communication, typing, and computer skills. Qualifications may be shown
through resumes , job applications, interviews, educational or professional experience,
the testimony of references such as for software knowledge, typing skills , numeracy and
literacy , through psychological tests or employement testing. Other resume screening
criteria may include length of service, job titles and length of time at a job. In some
countries, employers are legally mandated to provide equal opportunity in hiring.
Business management software is used by many recruitment agencies to automate the
testing process. Many recruiters and agencies are using an applicant tracking system to
perform many of the filtering tasks, along with software tools for psychometric testing.

Onboarding
Onboarding is a team which describes the process of helping new employees becomes
productive members of an organization. A well- planned introduction helps new
employees become fully operational quickly and is often integrated with a new company
and environment. Onboarding is included in the recruitment process for retention
purposes. Many companies have Onboarding campaigns in hopes to retain top talent that
is new to the company; campaigns may last anywhere from I week to 6 months.

Planning Forecasting
Employement personnel planning: The process of deciding what positions the firm will
have to fill, and how to fill, and how to fill them. The recruitment and selection process
starts with employment or personal planning. This is the process of deciding what
positions the firm will have to fill, and how to fill them. However most firms call the
process of deciding how to fill executive jobs succession planning.

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Internet recruitment and websites
Such sites have two main features: job boards and a resume/cv database. Jobs boards
allow member companies to post job vacancies. Alternatively, candidates can upload a
resume to be included in searches by member companies. Fees are charged for job
postings and access to search resumes. And since the late 1990s , the recruitment
websites has evolved to encompass end-to-end recruitment. Websites capture candidate
details and then pool them in clients accessed candidate management interfaces.

PROCESS OF RECRUITMENT
Step 1. Identify vacancy.
Step 2. Prepare job description and person specification.
Step 3. Advertising the vacancy.
Step 4. Managing the response.
Step 5. Short- listing.
Step 6. Arrange interviews.
Step 7. Conducting interview and decision making.

Advantages of Performance Appraisal:-

 It helps the supervisors to chalk out the promotion programs for efficient
employees. In this regards, inefficient workers can be dismissed or demoted in
case.
 The systematic procedure of PA helps the supervisors to frame training policies
and programs. It helps to analyze strengths and weaknesses of employees so that
new jobs can be designed for efficient employees. It also helps in framing future
development programs.
 It helps the supervisors to understand the validity and importance of the selection
procedure. The supervisors come to know the validity and thereby the strengths

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 and weaknesses of selection procedure. Future changes in selection methods can
be made in this regard.
 For an organization, effective communication between employees and employers
is very important.
 It serves as a motivation tool. Through evaluating performance of employees, a
person’s efficiency can be determined if the targets are achieved. This very well
motivates a person for better job and helps him to improve his performance in the
future.

Disadvantages of Performance Appraisal:-

 If not done right, they can create a negative experience.

 Performance appraisals are very time consuming and can be overwhelming to
managers with many employees.
 They are based on human assessment and are subject to rater errors and biases.
 Can be a waste of time if not done appropriately.
 They can create a very stressful environment for everyone involved.

PERFORMANCE APPRAISAL CRITERIA AT TCS:-

 To effect promotions based on competence and performance.

 To confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
 To assess the training and development needs of employees.
 To decide upon a pay raise where ( as in the unorganized sector) regular pay scales have
not been fixed.
 To let the employees know where they stand insofar as their performance is concerned
and to assist them constructive criticism and guidance for the purpose of their
development.
 To improve communication. Performance appraisal provides a format for dialogue
between the superiorand the subordinate, and improves understanding of personal goals

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 and concerns. This can also have the effect of increasing the trust between the rater and
the rate.
 Finally, performance appraisal can be used to determine whether HR programmes such a
selection, training, and transfers have effective or not.

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VISION STATEMENT

TCS will be recognized and respected as professional, innovative, profitable information, and
knowledge based logistics/services enterprise. TCS embeds internet based technologies into its
internal operating structures and as business solutions for customers; with customer, employee
and shareholders’ interests at the core of its operations; demonstrating a clear concerns for
ethical conducts and good corporate citizenship; with the objective of growing into a regional
and global player, with emphasis on the Middle East, Europe and North Americ

MISSION STATEMENT

TCS has built a global reputation for its ability to help customers achieve their business
objectives – by providing innovative, best-in-class consulting; IT and IT enabled solutions and
services. TCS core set of values underpin all activities in the company and these include
leadership with trust, integrity, excellence, respect for the individual and learning/sharing. The
company plans to further strenghthen and consolidate its position in the global IT industry as an
integrated full services player with global footprint interns of innovation, operations and service
delivery.

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OBJECTIVE OF THE STUDY

 To study the history of Tata Consultancy Service.

 To understand the organizational development of TCS.
 To know the TCS recruitment & selection process.
 To know the performance appraisal criteria at TCS.

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LITERATURE REVIEW

The study of performance appraisal and training programmes has attracted many of the
researchers and practitioners. There has been continuous research in the field of sugar industries
and its methods, appraisal time, appraisal meeting, training programmes and their benefits in the
industry. Though there is no death of document any evidence in the field of sugar industries,
studies, particularly in Performance Appraisal and Training Programmes are rare. It is a field in
the preschooler stage in India, when compared to other countries in the west. Since a research
report, either a dissertation or a thesis, is supposed to be an in-depth study of and contribution to
existing knowledge, a careful check should be made that the proposed study has not previously
been carried out.

Cumming (1973) in an article titled, A Field Experimental Study of the Effects of Two
Performance Appraisal Systems, reported the results of a field experiment designed to test the
effects of manipulating several elements of an operative level performance appraisal system.
First, the multipurposive nature of appraisal in formal organizations is discussed. This is
followed by a brief overview of the literature on performance appraisal. The design and results of
the study at hand are then discussed.

Patton (1973) in his paper on Does performance appraisal work? States that performance
appraisal can be a powerful force for performance improvement at both the individual and the
corporate level, but few companies in the US and even fewer in Europe have learned to tap its
full potential. Examining the differences between European and US performance appraisal
practices, the author finds that some European companies have more than caught up with
American counterparts. He offers guidelines to overcome some difficulties prevalent on both
sides of the Atlantic.

Rendell (1973) in his paper tilted Performance Appraisal purposes, practices and conflicts
discuss the collection of information from and about people and conflicts, discuss the collection
of information from and about people at work. It attempts to structure the field, define key

29
problems, expose sources of conflict and point the way to resolving major difficulties. Taylor
and Wilsted (1974) in their article tilted – Capturing Judgment Polices: A Field Study of
performance Appraisal used mathematical models of judgement policy for evaluating 625
performance reports during a single rating cycle. Linear and nonlinear analyses are used to
describe the cues most important in determining the overall ratings. In addition, performance
rating policy is compared with stated policy for each of the 40 rates.

Bedein (1976) in his paper tilted Rater Characteristics Affecting the Validity of Performance
Appraisals states that the task of developing effective performance appraisal states that the task
of developing effective performance appraisal system is one of the most preferred contemporary
problems of personal administration. An abundance of literature is available detailing the
problems and difficulties inherent in subordinate appraisals. Numerous studies have made
suggestions for rating format and content changes. This study examines an unlikely case of
management- union partnership in performance appraisal- that applied since 2000 to teachers in
Australia’s largest public schooling bureaucracy, the NSW Department of Education and
Training, whose teachers have a long history of union solidarity and industrial militancy. The
experiment can be seen as a union retreat from confrontrationism, a concession to margerialism,
and a resignation to the dominance of individualism over collectivism. However, it has also
widened the scope for both union and employee voice at the workplace level.

First, performance appraisal is negatively associated with tenure; where employers cannot rely
on the carrot of deferred pay or the stick of dismissal to motivate workers, they will tend to rely
more on monitoring, ceteris paribus. Second, employer monitoring and performance pay may be
complementary. However consonant with the disparate results from the wider literature, there is
more modest agreement on the contribution of specific human resource management practices,
and still less on the role of job control.

Moreover, it can be seen that the more the supervisor shows an orientation to negative
assessments as being socially problematic, the more difficult it becomes for the employee to deal
with negative assessments. The study ends by outlining various implications for the workplace.
Four propositions of the criteria and methods of performance appraisal and compensation
strategy are inferred in this systematic framework. Furthermore, four situations of 2*2

30
combinations with the criteria and above methods are discussed for the new systematic
performance appraisal and compensation strategy. Through this framework, an organization can
appropriately focus on employee’s representation or individual to evaluate and motivate
employees in a rational or humanistic way. A university case study examined the functioning of
an innovative 360- degree performance appraisal system came from supervisors, colleagues,
clients and junior staff as well as from the employees themselves. The validity of the system was
examined on two occasions. While all employees were satisfied with the system, support and
clerical staff in the university were more satisfied than academic staff. A number of suggestions
were made for improving the working of such a system in a university environment.

31
RESEARCH METHODOLOGY
AIM:- Research is a systematic quest for knowledge. That means, techniques and frames of
reference by which a researcher approaches and carries out enquiry is known as methodology.
Data is an input for my project; likewise the data has been collected from the following sources.
The inputs of the project were mainly accumulated through the primary research and the
secondary information. The primary information was gathered through interactions and
discussions with the employees of the TCS Company. The sources of secondary information
were various books, magazines, articles and web. Once the information was gathered, it was
properly evaluated. Then inferences were carefully drawn on the basis of pf the primary data
collected after going through series of deliberations. The output was thus produced. The goal of
fulfillment of the objective of the project was thus achieved.

HYPOTHESIS:- The study uses a null hypothesis of performance appraisal of TCS employees
is virtuous whereas the alternate hypothesis states that performance appraisal of TCS employees
is unkind.

RESEARCH DESIGN:- The study uses both primary and secondary data in need to fulfill the
objective and have a clear view. The primary data have been collected randomly from employees
working in TCS over a long period of time. A set of questions were interrogated to properly
understand the performance appraisal system that is being carried out in different ways. And they
were assessed in the form of points, marks, and grade, not aware.

TOOLS:- standard tools have been used while conducting the study. Charts graphs have been
created using excel. As the sample size is small no extra statistical tools have been used.

SAMPLE SIZE:- The primary data resolves around 30 individuals to whom a set of questions
were interrogated to properly understand the performance appraisal system that is being carried
out in different ways. And they were assessed in the form of points, marks, and grade, not aware.

PROCEDURE:- the study uses simple measures to evaluate the response of 30 employees of
TCS to understand the performance appraisal procedure and the satisfaction level. The
consciousness among the employees has also been evaluated.
32
LIMITATION:- The study have many limitations, like:-

1. Time restriction in the project is very problematic.

2. The current COVID-19 situation has restricted the study and impact of that has
affected the study.
3. Many employees are only with the objective of doing work and achieving the target
without getting involved in performance appraisal.

33
DATA ANALYSIS

Q.1 Awareness with the current performance appraisal system of TCS?

Yes 20
No 10

Awareness with the current performance

appraisal system of TCS

This pie chart is

33% shows about 67% of

Yes No employees are aware

of current
performance appraisal
67% system. And about
33% are not aware of
current performance
appraisal system.
Awareness of
performance appraisal system motivates to do the people in a better way. Therefore, it is
necessary that the management make all the employees aware of their appraisal system.

34
Q.2. Performance appraisal of employees is assessed by-

Point 9
Mark 9
Grade 12
Not aware 0

Performance appraisal of employees is

assessed by

12

10

0
Point Mark Grade Not aware

The data resolves around 30 individuals to whom a set of questions were interrogated to properly
understand the performance appraisal system that is being carried out in different ways. And they
were assessed in the form of points, marks, and grade, not aware.

35
Q.3. Task setting y appraise and appraiser provides objective while appraising the performance
appraisal of the appraise

Agree 9
Partially agree 12
Neutral 9
Disagree 0

Disagree

Neutral

Partially agree

Agree

0 2 4 6 8 10 12

About 9 of employees agree that task setting provides objectives in appraising their performance.
And 12 of employees are partially agreed with the statement and about 9 of the employees are
neutral and 0 of the employees are disagree and not filled the requirement.

36
Q.4 Whether the quarterly task setting assignment completed by the 15 th of first month of each
quarter. If no give reasons.

YES 18

NO 12

Quarterly task setting assignment weather completed by

the 15 th of first month of each quarter

NO
40%

YES
60%

About 18 employees says yes for completing quarterly task setting in time, rest due to some
reason it’s not completed in time such cases lack of seriousness & ambiguity.12 of employees
says no for completing quarterly task setting in time.

37
Q. 5 Self appraisal system proves to be effective while appraising the appraise

Agree 8
Partially agree 13
Disagree 9
Neutral 0

Effectiveness of appraisal

14
12
10
8
6
4
2
0
Agree Partially agree Disagree Neutral

About 2 of employees are agreeing with the self-appraisal system. 13 of employees are partially
agreed and 9 of employees are disagreeing and rest neutral is 0.

38
Q.6. Who in your opinion should be the responsible for ensuring objectivity and reducing
biasness in the performance appraisal system?

Appraiser and appraise 12

Appraiser, appraise, and peer 10
Appraiser, appraise, peer and subordinate 8

Responsibility of Performance Appraisal

System
12
8
4
0

About 12 of employees says that appraiser and appraise should be responsible for ensuring,
objectivity and reducing biasness in the performance appraisal system. 10 of employees says
appraiser, appraise and peer& rest 8 of employees says appraiser& appraise and peer and
subordinate.

39
Q.7 Skill possessed by an appraiser varies as they move from one grade to another

Agree 11
Partially agree 15
Neutral 4
Disagree 0

Appraisers Skills

Disagree

Neutral

Partially agree

Agree

0 2 4 6 8 10 12 14 16

About 11 of employees are agreed, 15 of employees are partially agree and some 4 of employees
are neutral and rest 0 of employees are not agreed with the shift in grade.

40
Q. 8. Are you getting regular feedback on your performance from your appraisal?

YES 25

NO 5

Feedback on performance appraisal

NO
17%

YES
83%

About 25 of employees are getting regular feedback on their performance and 5 of employees are
not getting regular feedback.

41
9. Feedback is beneficial for improving your performance

Agree 20
Partially agree 10
Neutral 0
Disagree 0

Importance of feedback in Performance

Appraisal

20
18
16
14
12
10
8
6
4
2
0
Agree Partially agree Neutral Disagree

20 of employees agree that feedback is beneficial for improving their performance. And about 10
of employees are partially agree and rest neutral and disagree category of employees is 0.

42
Q.10. Current performance appraisal system is an effective tool for evaluating the employee’s
performance.

Agree 18
Partially agree 8
Neutral 4
Disagree 0

Effectiveness of current performance appraisal

system

Disagree

Neutral

Partially agree

Agree

0 2 4 6 8 10 12 14 16 18

18 of the employees accept that current PAR is an effective tool for evaluating the employee’s
performance. 8 employees are partially agree with this 4 are being neutral opinion. This speaks
the unawareness of the role of their appraisal all employees are not agreeing performance
appraisal as an efficient tool.

43
Q.11 Does performance appraisal system reflect the training and of an employee

YES 24

NO 6

NO
20%

YES
80%

About 24 of employees accept that current PAR system reflects the training need. Through
employees feel that their training needs are arrived at but training is not provided to the fullest
extent.

44
12. What is your opinion in the of relevance performance appraisal system

Deciding promotion 12
Deciding incentives 9
raining & development 9
Programme succession planning 0

Relevance performance appraisal system

Programme succession planning

raining & development

Deciding incentives

Deciding promotion

0 2 4 6 8 10 12

12 of the employees considered that there is relevance of PAR system in deciding promotion. 9
are deciding incentives and 9 are training & development and rest 0 are programming succession
planning.

45
Q.13. The existing performance appraisal system ensures due recognization talented employees in
terms of promotion, rewards and others

Agree 18

Partially agree 8

Neutral 4

Disagree 0

18
16
14
12
10
8
6
4
2
0
Agree Partially agree Neutral Disagree

18 of employees acceptable PAR system ensure due recognition talented employees in term of
promotion, reward and others and 8 are partially agree and 4 are neutral and 0 are disagree.

46
Q.14. Do you think that existing performance appraisal system help full in wholesome development
of employees?

Agree 18

Partially agree 12

Neutral 0

Disagree 0

Disagree

Neutral

Partially agree

Agree

0 2 4 6 8 10 12 14 16 18

18 of employees completely agree that the existing PAR system is helpful in wholesome
development of employees and 12 are partially agree and rest neutral is 0 and disagree is 0.

47
15. Are you satisfied with the current performance appraisal system

YES 28

NO 2

SATISFACTION ON PERFORMANCE APPRAISAL

NO
7%

YES
93%

About 28 of the employees are completely satisfied with the current performance appraisal
system.

48
Q.16. Would you say management is responsible to

Innovations 9

Personal problem 12

Official problem 0

Career aspiration 9

14

12

10

0
Innovationess Personal problem Official problem Career aspiration

About 6 of the employees say management is responsible to your innovations 12 says personal
problem, 0 says official problems, and 9 stands for career aspiration.

49
 FINDINDS:-

 Presence of a firmly implemented career plan good sense of growth.

 High proportion of routine work – during training and immediately
after.
 Oraganisation climate :-
 Well analyzed goals are set.
 Goods and effective performance appraisal strategies applied.
 All the strategies are fair and objective.
 The employees are well aware of what is expected of them.
 Proper feedback is not given to the management staff.
 Suggestions and innovation are not rewarded.
 Supervisors are patient with the employee’s problem.
 Good performance leads to annual increments and
performance.
 Training and development programs are not very effective and
helpful.
 The purpose of performance appraisal system followed in the
company is fulfilled.

SUGGESTION:-

 Transparent career planning for all employees.

 Informal calling as and when they need.
 Giving chance in decision making.
 Reward for employees work.
 Proper interactions with seniors.
 Effective training and development programs should be held.
 Improve competency of the workers.
 The company should concentrate more on individual development.

50
CONCLUSION
Appraisal in the organization is an effective tool to strengthen human resources,
since it is on continuous basis. Performance appraisals in Tata Consultancy
Services are satisfactory for its effective management and evaluation of staff.
Appraisals here are helping individuals to develop, improve organizational
performance, and feed into business planning. Performance appraisals enable
management in monitoring of standards, agreeing expectations and objectives, and
delegation of responsibilities and tasks. Staff performance appraisals also establish
individual training needs and enable organizational training needs analysis also
establish individual training needs and enable organizational training needs
analysis and planning. 90 degree appraisal system or review is being followed in
Tata Consultancy Services i.e. feedback that comes from members of an
employee’s immediate work circle most often , 360- degree feedback will
include direct feedback from an employee’s subordinates, peers and supervisor(s),
as well as a self- evaluation. It can include, in some cases, feedback from external
sources, such as customers and suppliers or other interested stakeholders.
Employees of the organization are quiet familiar with the appraisal techniques used
and are aware of the need for the same. TCS has conducted performance appraisal
in a very fair and equitable manner which encourages the employees to work hard
and efficiently for own development and growth of the company. Appraisal
process is continuous which encourages employee productively with positive
feedbacks.

51
BIBLOGRAPHY

52
APPENDIX

Questionnaire

1. When performance appraisal is made in the organization?

a) Monthly
b) Quarterly
c) Yearly
2. What is the objective of performance appraisal?
a) Promotion
b) Assessing training and development needs
c) Pay rise
d) Other
3. Is there any conflict arise between employees after performance appraisal is
made?
a) Frequently
b) Often
c) Sometimes
d) Never
4. Who rates the performance?
a) Superior
b) Subordinates
c) Clients
d) All
5. Are there any job expectations established before performance appraisal?
a) Frequently
b) Often
c) Sometimes
d) Never
6. In your opinion performance appraisal is?
a) Evaluation of employees
b) Promotion of employees
c) Job satisfaction of employees
d) Motivation
7. Which methods of performance appraisal are implemented in the organization?
a) Merit
b) Grading
c) Other
8. Do you receive any increment in your salary after performance appraisal?
a) Yes
b) No
9. Do you think that performance appraisal help to provide an atmosphere where all
are encouraged to share one another burden.

53
 a) Yes
b) No
10. Do you think performance appraisal helps people set and achieve meaningful
goals?
a) Yes b) No
11. Do you think performance appraisal give constructive criticism in a friendly and
positive manner?
a) Yes
b) No
12. Do you think that performance of employees improves after process of
performance appraisal?
a) Yes
b) No
13. Do you think performance appraisal improves motivation and job satisfaction?
a) Yes
b) No
14. Is the top level management partial in performance appraisal?
a) Yes
b) No
15. Do you think performance appraisal helps to change behaviour of employees?
a) Yes
b) No
16. Is your opinion performance appraisal system of your organization is related to
which of the following?
a) Retention of employees
b) Recruitment system
c) Organizational culture
d) Motivation
17. After performance appraisal improvement in your performance.
a) 10-20
b) 20-30
c) 30- above

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