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A STUDY ON
PERFORMANCE APPRAISAL
AT
HCL CDC PATIALA
PROJECT REPORT

Supervised By-
Asst. Prof Varinder Singh

Submitted By-
Imrosepal Singh Virk
Registeration no-1205119
In partial fulfillment for the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
IN
BHAI GURDAS INSTITUTE OF MANAGEMENT AND TECHNOLOGY

PUNJAB TECHNICAL UNIVERSITY

JALANDHAR
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DECLARATION

Imrosepal Singh Virk student of Bhai Gurdas Institute of Management and Technology pursuing
BBA course hereby declare that the project work entitled carried on PERFORMANCE
APPRAISAL at HCL CDC PATIALA is an original work carried out by me availing the
guidance of my project , guide to my entire satisfaction. This report bears no resemblance
with any other report submitted to PUNJAB TECHNICAL UNIVERSITY during the current
academic year. I am presenting this during the year 2013-2014 in partial fulfillment of

“ Bachelor of Business Administration”.

I also declare that this project report work is not submitted to any other university for any degree.

PROF. Savdeep Khokhar Imrosepal Singh Virk

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ACKNOWLEDGEMENT

It is not possible to prepare a project report without the assistance & encouragement of other
people. This one is certainly no exception ”On the very outset of this report, I would like to
extend my sincere & heartfelt obligation towards all the personages who have helped me in this
endeavor. Without their active guidance, help, cooperation & encouragement, I would not have
made headway in the project. I would like to express my heartfelt gratitude to PROF. Savdeep
Khokhar of our College. Faculty, Bhai Gurdas Institute Of Management and Technology
Sangrur, for guidance for the completion of this project report.I express my deep sense of
gratitude to my family members and to my dear friends for their support and encouragement
during the entire course of study.

Imrosepal Singh Virk

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ABSTRACT

Performance appraisal may be understood as the assessment of individual’s performance in

systematic way, the performance being measured against factors such as job knowledge, quality
and quantity output, initiative, leadership abilities, supervision, dependability, co-operation,
judgment, versatility, health and the like. Assessment should be confined to past performance
alone. Potentials of the employee for future performance must also be assessed. Performance
appraisal is a method of evaluating the behavior of employees in the work spot, normally
including both the quantitative and qualitative aspect of job performance. Performances here
refer to the degree of accomplishment of the tasks that make up an individual’s job. It indicates
how well an individual is fulfilling the job demands. Often the term is confused with effort, but
performance is always measured in terms of result and not efforts.
A formal definition of performance appraisal is “it is the systematic evaluation of the individual
with respect to his or her performance on the job and his or her potential for development.”
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TABLE OF CONTENTS

DECLARATION……………………………………….
ACKNOWLEDGEMENT……………………………….
ABSTRACT……………………………………………....

CHAPTER TITLE
1 INTRODUCTION
1.1 COMPANY PROFILE
1.2 INTRODUCTION TO THE STUDY

2 RESEARCH METHODOLOGY

3 REVIEW OF LITERATURE

4 DATA ANALYSIS AND INTERPRETATION

5 FINDINGS OF THE STUDY

LIMITATIONS

6 RECOMMENDATIONS AND
CONCLUSION

ANNEXURE I

BIBLIOGRAPHY
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Introduction
to
company
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INTRODUCTION OF THE COMPANY

HCL Infosystems Ltd, established in 1976, is one of the pioneers in the Indian IT market.
For over quarter of a century, we have been in the forefront of introducing new
technologies and solutions.

FAST FACTS

Company Name HCL Technologies Ltd.

Corporate L74140DL1991PLC046369
Identification
Number

Company Type Global IT Company

Service Areas Software, Infrastructure and BPO

Date of November 12, 1991

Establishment

Chairman and Shiv Nadar

Chief Strategy
Officer

President & Anant Gupta

CEO

Employee 90,190 on 31st March 2014.

Strength

Offices Offices in 31 countries

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Geographies USA, Europe, Asia Pacific and Japan

Consolidated US$ 5.2 bn as on 31st March, 2014

Revenues

HISTORY
The highlights of the HCL are summarised below:
 HCL Digischool wins ‘Best Smart Classroom Solution Provider’ at the prestigious
Shiksha Ratan Award - State Education Summit 2013Office Automation (OA) Business
bagged the Silver Award for Technical Proficiency in Color Category at the 15th Quality
Service Campaign conducted by Toshiba-APAC among 29 participants from various
countries.
 Bagged Partner of the Year Award for the Asia Pacific & Japan region as part of CA
Technologies Partner for Impact Awards, held at the Annual User Conference, CA World '13
in Las Vegas. HCL Infosystems was honored for its commitment and expertise in taking CA
Technologies solutions portfolio to market, and its efforts in driving new contracts and
business opportunities.Bagged Corporate - Best Government to Citizens (G2C) Initiative of
the Year” award at the e-Maharashtra Summit 2013.
 HCL Infosystems was awarded the honor for implementing turnkey ICT solutions in
design, supply, installation, automation, integration, and subsequent maintenance of India’s
first state-of-the-art Border Check Post (BCP) project undertaken by the Maharashtra
Government.
 Bagged the prestigious Golden Peacock Eco Innovation Award 2013 for eNBA
project during the 15th World Congress on Environment Management .HCL was
honored for providing IT Solutions to National Board of Accreditation which resulted
in eco innovation, cost saving and transparency in the accreditation process
 Awarded PC Quest Best IT Implementations of the Year 2013 under the
category Project with Maximum Social Impact for Financial Inclusion project of
Bank of Baroda. The project aims at providing easy access to affordable financial
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services to those who are deprived of it so far thereby bringing the unbanked and
under banked villages into the formal financial stream.
 Won INDIA Public Sector Enterprises Award 2013 for the project eProcurement by
Indian Railways.HCL was honored for automating the tendering process of Indian
Railways which reduced the procurement cycle time of material from 23 days to
instantaneous .
 Awarded PC Quest Best IT Implementations of the Year 2013 under the
category Best Education Project (Silver) for eNBA. The project has brought
complete transparency and reduced the accreditation process time from 1.5 years
to 4 months for higher educational institutions seeking accreditation
Vision
A global corporation enriching lives and enabling business transformation for our customers,
with leadership in chosen technologies and markets. Be the first choice for employees and
partners, with commitment to sustainability.

Mission
We enable business transformation and enrichment of lives by delivering sustainable world class
technology products, solutions and services in our chosen markets thereby creating superior
shareholder value.
Core Values
 We shall uphold the dignity of every individual
 We shall honour all commitments
 We shall be responsible corporate citizens
 We shall be committed to Quality, Innovation and Growth in every endeavour

Board of Directors
The Board of Directors of the Company has an optimum combination of executive and non-
executive directors. As on December 31, 2013 the Board of Directors consisted of ten members,
of whom, one is the promoter director who is designated as the Chairman & Chief Strategy
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Officer of the Company and other nine are non- executive directors including eight independent
directors. Accordingly, as on December 31, 2013 80% of the Board of Directors comprise of
independent non-executive directors.
I. The Board of Directors of the Company meets at least four times a year and the
maximum time gap between any two meetings does not exceed four months.
II. The Company provides to the Board, all the information prescribed in the Listing
Agreement in addition to the other agenda items.
III. As prescribed in the Listing Agreement, none of the Directors of the Company is a
member in more than 10 committees or acting as a Chairman of more than 5
committees across all companies in which he/she is a director
IV. HCL Infosystems Ltd. is India’s Premier Distribution and IT Services and Solutions
Company. HCL Infosystems’ has one of the largest sales & distribution network in
the country and provides value added distribution for partners including last mile
connect and support in marketing and promotions for Telecom, IT , Office
Automation and Consumer Electronics products covering more than 15000 towns
across 664 districts in India. Our distribution business has an unparallel network
that reaches more than 100,000 retail outlets, over 800 Direct and Micro
Distributors and over 12400 Channel Partners across India.
In the services space the Company has robust services offerings such as a
comprehensive portfolio of Infrastructure Managed Services, Enterprise
Application Services, System Integration Services, Office Automation Services,
Managed Print Services, Life Cycle Services and After-Sales Support Services.
HCL Learning, the Company’s learning solutions business, serves the entire
spectrum of education and training requirements across schools colleges,
individuals and enterprises and offers Digital Content & Learning Solutions.
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Introduction
to
study
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PERFORMANCE APPRAISAL
Performance appraisal may be understood as the assessment of individual’s performance in a
performance must also be assessed .A formal definition of performance appraisal is “it is the
systematic evaluation of the individual with respect to his or her performance on the job and his
or her potential for development.”

FEATURES OF PERFORMANCE APPRAISAL

 Performance appraisal is the systematic description of an employee’s job relevant
strengths and weaknesses.
 2)The basic purpose is to find out how well the employee is performing the job and
establish a plan of improvement.
 3)Appraisals are arranged periodically according to a definite plan.
 4)Performance appraisal is not job evaluation. It refers to how well someone is doing the
assigned job. Job evaluation determines how much a job is worth to the organization and
there for, what range of pay should be assigned to the job.
 5) Performance appraisal is a continuous process in every large scale organization.

OBJECTIVE OF PERFORMANCE APPRAISAL

 A good Performance Appraisal has following objectives: -

 Help employee overcome his weakness & improve ones his strengths & thusenable him
to improve his performance & that of the Deptt.

 Generate adequate feedback & guidelines form the repotting officers to the employee.

 Contribution to the growth & development of the employee through helping him in
realistic goal setting.

 Help identifying employees for the purpose of motivating, training &developing them.
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REVIEW
OF
LITERATURE
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HUMAN RESOURCES MANAGEMENT

Human resource management (HRM, or simply HR) is a function in organizations designed to

maximize employee performance in service of their employer’s strategic objectives.HR is
primarily concerned with how people are managed within organizations, focusing on policies
and systems. HR departments and units in organizations are typically responsible for a number of
activities, including employee recruitment, training and development, performance appraisal, and
rewarding (e.g., managing pay and benefit systems). HR is also concerned with industrial
relations, that is, the balancing of organizational practices with regulations arising from
collective bargaining and governmental laws.

Performance appraisals
Meaning:
Performance appraisal is a method of evaluating the behavior of employees in the work spot,
normally including both the quantitative and qualitative aspects of job performance. Performance
here refers to the degree of accomplishment of the tasks that make up an individual‘s job. It
indicates how well an individual is fulfilling the job demands. Often the term is confused with
effort, but performance is always measured in terms of results and not efforts.

Need of Performance Appraisal:

 Provides information about the performance ranks, basing on which decision regarding
salary fixation, confirmation, promotion, transfer and demotion are taken.
 Provide feedback information about the level of achievement and behavior of
subordinate. This information helps to review the performance of the subordinate,
rectifying performance deficiencies and to set new standards of work, if necessary.
 Provide information, which helps to counsel the subordinate.
 Provide information to diagnose deficiency in employee regarding skill, knowledge,
determine training and developmental needs and to prescribe the means for employee
growth provides information for correcting placement.
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Purpose

 Performance appraisal aims at attaining the different purpose. They are

 To create and maintain a satisfactory level of performance.
 To contribute to the employee growth and development through training self and
management development programs.
 To help the superiors to have a proper understanding about their subordinates.
 To guide the job changes with the help to continuous ranking.
 To facilitate fair and equitable compensation based on performance.
 To facilitate for testing and validating selection tests, interview techniques through
comparing their scores with performance appraisal ranks.
 To provide information for making decisions regarding lat off, retrenchment etc.
 To ensure organizational effective through correcting employee for standard and
improved performance, and suggesting the change in employee behavior.

Methods of Performance Appraisal:

The methods of performance Appraisal are basically classified as
 Traditional Methods,
 Modern Methods and
 result – Oriented Appraisal

(1) The Traditional Methods consists of ‘Graphic Rating Scales’,’ Ranking Method’,’
Paired comparison Method’, ‘Forced Distribution Method’, ‘Checklist method’, ‘Essay or
free from APPRAISAL’, ‘Group Appraisal and ‘confidential Report’.

(2) Modern Methods of evaluating performance appraisal are ‘Behaviorally Anchored

Rating Scales’, Assessment Center’, Human Resource Accounting’, Management by
objectives’, Psychology Appraisal’.
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Uses of Performance Appraisals:-

I. Performance Improvement: Performance feedback allows the employee, manager,
and personnel specialists to intervene with appropriate actions to improve performance.
II. Compensation Adjustments; Performance evaluations help decision-makers
determine who should receive pay raises. Many firms grant part or all of their pay
increases and bonuses based upon merit, which is determined mostly through
performance appraisals.
III. Placement Decisions: Promotions, transfers, and demotions are usually based on past
or anticipated performance. Often promotions are a reward for past performance.
IV. Training and Development; Poor performance may indicate the need for retraining.
Likewise, good performance may indicate untapped potential that should be developed.
V. Career Planning and Development: Performance feedback guides career decisions
about specific career paths one should investigate.
VI. Staffing Process Deficiencies: Good and Bad performance implies strength or
weakness in the personnel department s staffing procedures.
VII. Informational Inaccuracies: Poor performance may indicate errors in job analysis
information, human resource plans, or other parts of the personnel management
information system. Reliance on inaccurate information may have led to inappropriate
hiring, training, or counseling decisions.
VIII. Job Design Errors: Poor performance may be a symptom of ill-conceived job designs.
Appraisals help diagnose these errors.
IX. Equal Employment Opportunity: Accurate performance appraisals that actually
measure job related performance ensure that internal placement decisions are not
discriminatory.
X. External Challenges: Sometimes performance is influenced by factor outside the work
environment, such as family, financial, health, or other personal matters. If uncovered
through appraisals, the human resource department may be to provide assistance.
XI. Feedback to Human Resources: Good/bad Performance throughout the organization
indicates how well the human resource function is performing.
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PROCESS OF PERFORMANCE APPRAISAL

Performance appraisal is planned, developed and implemented through a series of steps:

1) Establish Performance Standards.

Appraisal systems require performance standards, which serve as benchmarks against which
performance is measured. In order to be useful, standards should relate to the desired results of
each job. Appraisals must have a clear- cut criteria. Performance standards must be both to the
appraiser and the appraise. The performance standards of goals must be developed after a
thorough analysis of the job. Goals must be written down. They must be measurable within
certain time and cost considerations.
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2) Communicate the Standards.

Performance appraisal involves attract two parties; the appraiser who does the appraisal and the
appraise whose performance is being evaluated. Both are expected to do certain things. The
appraiser should prepare job descriptions clearly, help appraise set his goals and targets; analysis
results objectively; offer coaching and guidance to appraise whenever required and reward good
results. The appraiser should be very clear about what he is doing and why he is doing. For this
purpose, the performance standards must be communicated to appraise and their reactions are
noted initially. These standards must be revised or modified as and when required.

3) Measure Actual Performance.

After the performance standards are set and accepted, the next step is to measure actual
performance. This requires the use of dependable performance measures, the ratings used to
evaluate performance. Performance measures in order to be helpful must be easy to use, reliable
and report on the critical behaviors that determine performance. Generally, managers regarding
how to measure actual performance use four common sources of information: personal
observation, statistical reports, oral reports and written reports.

4) Compare Actual Performance with Standards and Discuss the Appraisal.

Actual performance may be better than expected and sometimes it may even go off the track.
The assessment of another person's contribution and ability is not an easy task. It has serious
emotional overtones as it affects the self-esteem of the appraise. Any appraisal asked on
subjective criteria is likely to be questioned by the appraisers and leave him quite dejected and
unhappy when the appraisal turns out to be negative.

5) Taking Corrective Action, if Necessary.

Corrective action is of two types: The one, which puts out the fires immediately and the other
one, which strikes at he root of the problems permanently. Immediate action sets things right and
get things back or track, whereas the basic corrective action gets to the source of deviations and
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seems to adjust the difference permanently. Basic corrective step seek to find out how and why
performance deviate.
METHODS OF PERFORMANCE APPRAISAL:

A) Traditional Methods B) Modern Methods

1. Confidential report 1. Human resource accounting
2.Ranking 2. management by objective
3.Graphical rating scale 3. Assessment centre
4.Checklists 4. BARS( Behaviorally anchored rating scale )
5.Forced distribution
6.Critical incidents
7.Essay evaluation
8.Group appraisals

Traditional methods:

1.Confidential report method

It is mostly used in government organizations. It is a descriptive report generally prepared at the
end of the year, by the employee’s immediate superior. The report highlights the strengths,
weaknesses, major mistakes, merits, good work done etc. of the subordinate. The impression of
the superior about the superior is merely recorded here. It does not offer any feedback to
appraise. It is a narrative method of performance appraisal since the report is not made public
and hence no freedom is available, the subjective analysis of the superior is likely to be hotly
contested.
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2.Ranking method
This is relatively easy method of performance evaluation. In it, the ranking of an employee in a
work group is against that of another employee. The relative position of each employee is tested
in terms of his or her numerical rank, for example, when there are five employees (A,B,C,D,E) to
be compared, then A’s performance is compared with that of B’s and decision is arrived at as to
whose is the better or worst. Next, B is also compares with all others. Since A is already
compared with B, this time B is to be compared with only C, D, and E In this evaluation is asked
to rate the employees from highest to lowest on some overall criterion. It is easier to rank the
best and the worst employee, it is very difficult to rank the average employees.

3.Graphical rating scale

It is the oldest and the most commonly used method of performance in this, a printed form is
used to evaluate the performance of an employee. Four to twelve factors are selected, depending
upon the category to which the employee belongs. Some of these factors are quantity of out put,
quality of out put, initiative, integrity, dependability etc. these factors and their degrees are
marked on a graph paper provided in the form. The rater has merely to check on the scale where
he thinks the employee belongs.

4.Checklists and weighted checklists

The checklist is a simple rating technique in which the supervisor is given a list of statement or
world and ask to check statement representing the characteristic and performance of each
employee a checklist represents a set of objective statement about the employee and his
behavior. A more recent variation of the checklist is weighted list. Under this the value of each
question may be weighted more heavily than others.
A rating score from the checklist helps the manager in evaluation of the performance of the
employee.

5.Forced distribution method

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It was developed to eliminate the bias and the preponderance of high ratings that might occur in
some organizations. Its primary purpose is the correct tendency of the rates to give consistently
high and low ratings to all employees. This method makes those of several sets of pair phases,
two of which are positive and two of them are negative and the rates is asked to indicate which
of the four phrase is the most or least descriptive of a particular employee. Actually the statement
items are grounded in such a way that the rater cannot which statement applies to the most
effective employee. The favorable qualities earn a plus credit and the unfavorable ones earn the
severest. In this the overall objectivity is increased in the employee’s performance because the
rater does not know how high or low he is evaluating the individual, as he has no access to the
storing key.

6.Critical incident method

The manager prepares test of statements of every effective and ineffective behavior of an
employee. These critical incidents or events represent the outstanding poor behavior of the
employees. The manager prepares records of the critical incidents of the worker’s behavior. At
the end of the rating period, the recorded critical incidents are used in the evaluation of the
workers’ performance.

7.Essay Appraisal
Under this method the rater is asked to express the strong as well as the weak points of the
employee’s behavior. This technique is normally used with a combination of the graphical rating
scale because the rater an elaborately present the scale by sustaining an explanation for his
rating. In it, the rater considers the following factors:
-Job knowledge and potential of the employee.
-Employees understanding about the company’s programmes, policies, objective, etc.
-The employees general planning, organizing and controlling ability.
-The employee’s relation with the co-workers and superiors.
-The attitude and perceptions of the worker, in general.

8.Group appraisal
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In this method an employee is appraised by a group of appraisers. This group consists of the
immediate supervisor of the employee, other supervisors who have close contact with
employee’s work, manager or head of department or consultant. The head of department or
manager may be the chairman of the group and the supervisor may act as the coordinate for the
group activities. The immediate supervisor enlighten other members about the job
characteristics, demand, standards or performance etc. then the group appraise the performance
of the employee, compares the performance with the standards, finds out the deviation, discusses
the reasons, therefore suggests ways for improvement of performance, prepares an action plan,
studies the need for change in the job analysis and standards and recommends changes, if
necessary. This method eliminates “personal bias” to a large extent, as performance is evaluated
by multiple rates. However, it is very time consuming process.

B) Modern Methods:
1.Human resource accounting
HRA is a sophisticated way to measure in financial terms the effectiveness of the personal
manager activities and the use of people in an organization. It is process of accounting people as
an organization resource. It tries to place a value on the organizational human resources as assets
and not as expenses. This method shows the investment the organization makes in the people and
how the value of these people change over a time. The acquisition of employee is compared with
the replacement cost from time to time. In brief, in this method the employees’ performance is
evaluated in terms of costs and contributions of employees.

2.Management by objectives
It is the modern method of evaluating the performance of personnel. Managers have become
increasingly aware that the traditional performance evaluation systems are characterized by
facing goals. The concept of MBO is actually the outcome the pioneering work of Drucker,
Mcgreger and Odioine in management science. MBO can be described as the process whereby
the superior and subordinate manager of an organization jointly identify its common goals, each
individual’s areas of operations, responsibility in terms of results expected of him and use these
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measures as a guide for operating the unit and assessing the contributions of each of its members.
MBO thus represents more than an evaluation process.

The MBO can be described in four steps:

 The first step is to establish the goals each subordinate is to attain. The goals typically
refer to the desired outcome to be achieved. The goals can be then used to evaluate the
employee performance
 The second step involves setting of the performance standard fro the subordinates in a
previously arranged time period.
 In the third step, the actual level of goal attainment is compared with the goals agreed
upon. The evaluator explores the reasons or the goals that were not met and the goals that
were exceeded. This step helps to determine the training needs. It also alerts the superior
of the conditions that may affect but over which the subordinate has no control.
 The final step involves establishing new goals and, possibly, new strategies for goals that
previously not attained. At this point, subordinate and superior involvement in the goal
setting may change. Subordinates who successively reach the established goals may be
allowed to participate more in the goal setting process the next time. The process is
repeated.

3.Assessment center
In this approach individuals from various departments are brought together to spend two or three
days working on an individual or a group assignment similar to the ones they would be handling
when promoted. Observers rank the performance of each and every participant in order to merit
since assessment centers are basically meant for evaluating the potential of candidates to be
considered for promotion, training on development, they offer an excellent means for conducting
evaluation process in an objective way. All assesses get an equal opportunity to show their
talents and capabilities based on merit.

4. Behaviorally anchored rating scale

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This method is also known as behavioral expectation scale. This method represent he latest
innovation in the performance appraisal. It is the combination of the rating scale and critical
incident techniques of employee performance evaluation. The critical incidents serve as the
anchor statement on a scale and the rating form usually contains six to eight specifically defined
performance dimensions.

360° PERFORMANCE APPRAISAL

The appraisal may be any person who has thorough knowledge about the job contents, contents
to be appraised, standards of contents and who observes the employee's by performing a job. The
appraisal should be capable of determining what is more important and what is relatively less
important. He should prepare reports and made judgments without bias. Typical appraisals are
supervisors, peers. Subordinates, employees themselves, user of service and consultants.
Performance Appraisal by all these parties is called 360° Performance Appraisal.

1.Supervisors
Supervisors include superiors of the employee, other superiors having knowledge about the work
of the employee and department head or manager. General practice is that immediate superior
appraises the performance, which in turn is reviewed by the departmental head/ managers. This
is because superiors are responsible free managing their subordinates and they have the
opportunity to observe, direct and control the subordinate continuously. Moreover, they are
accountable for the successful performance of their subordinates. Sometimes other supervisors,
who have close contact with employee work also appraise with a view to provide additional
information.

2.Peers
Peer appraisal may be reliable of the workgroup is stable over a reasonably long period of time
and performs tasks that require interaction.

3.Subordinates
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In developed countries, the concept of change superiors rated by subordinates in being used in
most organizations. Such a method can be useful provided the relationships between superiors
and subordinates art cordial. Subordinate's ratings in such cases can be quite useful in identifying
competent superiors.

4.Self-Appraisal
If individuals understand the objectives they are expected to achieve and the standards by which
they are to be evaluated, they are to a great extent in the best position to appraise their own
performance. Also, since employee development means self-development, employees who
appraise their own performance may become highly motivated.

5. Users of Services/Customers
The customers on users of services can, better judge employee performance in service
organizations relating to behaviors, promptness, speed in doing the job and accuracy. Example,
students better judge a teacher’s performance.

6. Consultants
Sometimes consultants may be engaged for appraisal when employees or employers do not trust
the supervisory appraisal and management does not trust the self-appraisal and the appraisal
done by subordinates. In such situation, the consultants are trained and they observe the
employee at work for sufficiently long periods for the purpose of appraisal.

7. When to appraise?
Informal appraisals are conducted whenever the supervisor or personnel manager feel it
necessary. However, systematic appraisals are conducted on a regular basis; say for example,
every six month or annually.

REQUIREMENTS OF A GOOD APPRAISAL SYSTEM:

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1.It must be easily understandable:

If the system is too much complex or to time consuming, it may be anchored to the ground by its
own dead weight of complicated forms which nobody but the experts understand.

2.It musty has support of all line people who administer it:
If the line people think that there role is not very important then they will not consider the system
seriously. Similarly, if the people find that the system is too theoretical, too ambitious, or that has
been foisted on them by the ivory-tower staff consultants who have no comprehension of the
demand then they will recent it.

3.The system should be sufficiently grounded in the requirement of the organization:

It should reflect the value system of the organization. In fact functioning as a definition of
performance, it should tell he employee what set of activities or what qualities are considered
desirable by the organization. As such it should have linkage with the job description.

4.The system should be both valid and reliable:

The validity of the ratings is the degree to which they are truly indicative of the intrinsic merit of
the employees. The reliability of the ratings is the consistency with which the ratings are made,
either by different sectors, one by one rater at different times. Both validity and reliability result
from objectivity. The appraisal system of many organizations lacks this objectivity and bunches
all employees into one or two top ranks without taking into account their merits. This raises
outstanding performances but also raises doubts about the validity of the system.

5.The system should have built-in incentive:

This means that the reward should follow satisfactory performance. Many authors however,
advocate against the direct linkage between the appraisal and rewards. In their opinion, such a
connection throttles downward communication of performance appraisal because superiors do
not like being questioned by disgruntled subordinates.

6.The system should be open and participative:

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It should involve employees in goal-setting process. This helps in planning performance better.

7.The systems should focus more on the development and growth:

Of the employee than on generating data for administrative decision making related to
promotions, increments, etc. the system must help in identifying employee’s strengths and
weaknesses and indicate corrective actions. For example it may reveal that goals need to be
modified on; there is need for classification of duties or for additional training or job rotation or
job enrichment.
How implement performance appraisal
Introduction
Now a day’s Performance appraise is very important from company point of view. It is use to
take various managerial decision. E.g. decision regarding employee’s increment or decision
regarding employee’s future career planning etc. In Company they use “Grading and Ranking
“method to appraise performance of there employee.

Who Appraise
Performance appraise by Head of the department or from the superior. They did not conduct
performance appraisal on officer’s level it conduct only on officer’s basis. In Company
Performance is appraising by head of the department, Supervisor, manager, etc.
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General use of performance report in HCL

 Need of training
Head of the department or HR manager can decide whether employee needs training for
good performance or not.
 Career Planning
Career planning generally use to retain skilled employee. They can find out skilled
employee for skilled employees career planning from performance appraisal report.
 Succession planning:
From performance appraisal Report Company can select candidate to make succession
planning.

Benefits of employee to company

Company’s employee are company’s asset, it is helpful to calculate that company’s employee
how much give returns to company. Or which employee is beneficial for company and which is
not beneficial.

Reasons for Performance Appraisal Failures

Where performance appraisal fails to work as well as it should, lack of support from the top
levels of management is often cited as a major contributing reason. Opposition may be based on
political motives, or more simply, on ignorance or disHCLief in the effectiveness of the appraisal
process. It is crucial that top management HCLieve in the value of appraisal and expresses their
visible commitment to it. Top managersare powerful role models for other managers and
employees. Those attempting to introduce performance appraisal, or even to reform an existing
`

system, must be acutely aware of the importance of political issues and symbolism in the success
of such projects.

Fear of Failure
There is a stubborn suspicion among many appraisers that a poor appraisal result tends to reflect
badly upon them also, since they are usually the employee's supervisor.Many appraisers have a
vested interest in making their subordinates "look good" on paper. When this problem exists (and
it can be found in many organizations), it may point to a problem in the organization culture. The
cause may be a culture that is intolerant of failure. In other words, appraisers may fear the
possibility of repercussions - both for themselves and the appraisal
`

RESEARCH
METHODOLOGY
`

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

 Formulating the objective of the study

 Designing the methods of data collection
 Selecting the sample plan
 Collecting the data
 Processing and analyzing the data
 Reporting the findings

COLLECTION OF DATA
The procedure for collection of data depends upon various considerations Availability of
resources like money time manpower etc also affects the choice of procedure.
 Primary data
 Direct personal observation
 Indirect oral interviews
 Information through manuals& websites,
 Information through questionnaire filled by respondents

Questionnaire
`

The questionnaire a list of question to be asked from the respondent s the it also contain suitable
space where the answer can be offered a better questionnaire form, which has completed, by an
interviewer

Secondary data
Secondary data mean that are already available that is they refer the data which have already
been collected and analyzed by someone else when the researcher utilizes secondary data that
has to look into various sources where he can obtain. In this case he certainly not confronted with
the problems that are usually data nor unpublished data
`

OBJECTIVES OF STUDY
`

Objective of study
The subject of the study is to prepare a detail field report on the performance appraisal procedure
of HCL and its linkage with other system of human resource management (training, promotion
,transfer, etc.).

Purpose of the Study:

1. In general, the purpose of the study is to know the system of performance appraisal in HCL
CDC PATIALA.

2. Besides, the purpose of the study is to fulfill the partial requirement.

3. To understand satisfaction among employees of HCL.
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DATA ANALYSIS
AND
INTERPRETATION
 `

1. When performance appraisal is made in the organization?

on OOOOO No of respondent Percentage

Monthly 10 20%
Quarterly 30 60%
Yearly 10 20%
Never 0 0%
Total 50 100%

Interpretation-
In HCL CDC Patiala the performance appraisal is conducted quarterly according to 60% of
employees.10% of employees response that it is done after monthly and yearly .
`

2. What is the objective of performance appraisal?

Option Respondents Percentage

Promotion 10 20%

Assessing training and 35 70%

development needs
Pay rise 5 10%
Other 0 %
Total 50 100%

Interpretation-In HCL the performance appraisal is done for training and development purpose
according to 70% of employees and 20%employees think that it is foe permotiom purpose and
10% employees feel that it is done for pay rise purpose.
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3. Is there any conflict arise between employees after performance appraisal is made?

Option Respondent Percentage

Often 5 10%
Sometimes 10 20%
Never 35 70%
Total 50 100%

Interpretation-
In HCL CDC Patiala about10% of employees face conflicts daily and 20% employees face the
conflicts sometimes and 70% employees never face any conflict among their subordinates.
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4. Is there any job expectations established before performance appraisal?

Option Respondent Total

Often 30 60%
Sometimes 10 20%
Never 10 20%
Total 50 100%

Interpretation-
60% of HCL employees say that job expectation is done frequently.20% employees say that
sometimes job expectation is done.20% of employees say that such method is not used by HCL.
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5. Who rates the performances?

option No of respondent Percentage

superiors 35 70%
subordinate 10 20%
client 5 10%
All 0 0%
total 50 100%

Interpretation-
70 % of respondents says that performance appraisal is rated by the superiors of the company
and 20 % by the subordinates and clients only partcipates in the 10% of the rating purpose and
0% of combine all members of the company rated performance appraisal.
`

6. On what basis performance appraisal is made?

option No of respondent Percentage

Total output 35 70
Behavior 10 20
Both 5 10
Total 50 100%

Interpretation-:
CDC 70 % employees think that their performance is rate on the total output which they gave to
organization and 20% think that it is on the basis of behavior and 10%thought that it is on the
basis of both or overall performance.
`

7.Is 360 degree appraisal process undertaken in the organization?

option No of respondent Percentage

Yes 40 80%
No 10 20%
total 50 100%

Interpretation-:
HCL uses 360 feedback method according to 80% of employees.20%of employees think that
such methods is not used.
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8. Does any change arise after appraising the performances of employees?

Option No of respondent Percentage

Yes 35 70%
No 15 30%
Total 50 100%

Interpretation-:
70% of employees feel change in their performance after appraisal and 30% employees not feel
any change after apprasing the performance.
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9. Does performance appraisal process help to raise organization’s total output?

Option No of respondent Percentage

Yes 40 80%
No 10 20%
Total 50 100%

Interpretation-
HCL 80% of employees feel change in total output.but 20% of employees not feel any change in
total output.
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10.Are you satisfied with the appraisal process of the organization?

Option No of respondent Percentage

Yes 30 60%
No 20 40%
Total 50 100%

Interpretation-:
About 60% of employees is satisfied with their appraisal process followed by HCL and 40% of
employees are not satisfied .and the want change in the whole process.
`

Findings
&
Limitation
`

Findings

 In HCL performance appraisal is done on quarterly basis.

 HCL employees feel that performance appraisal is done for training and development
purpose. In HCL employes never face any conflict between their subordinates and
superiors.
 In HCL job expectation is established before performance appraisal.
 The performance appraisal is rate by superiors in HCL.
 The performance appraisal is done on total output of employees.
 360 degrees appraisal process is use by HCL.
 Employees feel change after appraising the performance.
 In HCL performance appraisal is very useful for raise organizational total output.
 In HCL most of the employees are satisfied with appraisal performance.

Limitation-
1. LACK OF CLARITY:

The objective of performance appraisal is to evaluate and develop employees.HCL should avoid
using one appraisal system to achieve both objectives. The particular system of the appraisal
system should clarify before it is designed and should be discussed with all managers and
employees to gain their commitment. Any performance appraisal system, however good the
design, is unlikely to succeed if the managers and employees are suspicious of its objectives. It is
extremely difficult if not impossible to device a system that will be able to satisfy both
performance and reward. It happens because employees are likely to resist negative feedback and
tend to be defensive when weakness in current performance is identified. It is because of this
type of overlap in purposes that the appraisal loses it’s practically and increases the conflict
between the manager and the employees.

2. APPRAISAL ERRORS: These are as follows;

Halo, Recency, Contrast effects: the Halo effect occurs when a manager rates an employee high
or low on all teams, because of one characteristic. For instance; if an employee has few absences,
his manager might give him high rates in all other area of work. The recency effect happens
`

when a rater gives greater weight to recent occurrence when appraising an employee’s
performance. This sort of effect is an understandable rater’s error. It may not be easy for the
manager to remember all events that happened like for instance; six months ago. Contrast error
occurs when employees are rated relatively to other employees rather than to performance
standards. For example; if everyone else in a group is doing mediocre job, an employee
performing somewhat better may be rated as excellent because of the contrast effect.

Rater biases: this occurs when manager values distort the rating. Reasons for bias differ, for
instance, religion, age, sex, appearance or other arbitrary classifications. If a manager strongly
dislikes a certain ethnic group, this will be negatively reflected in appraisal if the appraisal
scheme is not properly designed.

3. UNEQUAL PERFORMANCE STANDARDS

Employees differ from each other in the way they perceive things. What is good for some may be
bad for others. Therefore managers have different judgments in appraising their employees.
Managers’ attitudes to their employees differ, so different managers will appraise the same
people quite differently which could make appraisal system subjective and manipulative.

.
`

Recommendations
And
Conclusion
`

Recommendation
 Workmen PAR should also be developed as of officers & they should be made aware
about it.
 For the technical one column should also be included in the P.A. format which should
concern about the time availability of facilities provisions required for technical
workmen, officers in order to carry out & completion of job if any.
 This would turn make IA / RA equally responsible & transparency in PAR system.
 Emphasis should be given to measuring the employee’s performance i.e. what the man
does rather than what he is (merit rating). The important thing is to be aware of his
strengths. What can he do? And what has he done?
 Self Appraisal system should thoroughly reviewed by the I.A., RA & Senior RA as the
appraisee would not be able to assess themselves but the concerned authorities
assessment of the appraisee should be impartial & up to the mark.
 Extra care must be taken by the authorities while describing the performance of
appraisee, as the attributes used in this section are not the part of specified traits for
technical & non-technical personnel. Not only the deficiency should be pointed out in

SUGGESTION OF ANALYSIS OF QUESTIONNAIRE

 Suggestion from employees for the effective implementation of PAR system
 Job Description & key Result Areas should be identified & appraisee should be answered
accordingly.
 While doing job Rotation a person’s core competence should be major criteria for
decision.
 Assessment even by peer, subordinates & customers 360 degree PA system should be
implemented in order to make PAR system more focused, rather than relation driven.
 Project based performance & measurements (six sigma in work place & on personallevel)
should be encouraged in Appraisal system.
 Ideation & vision statement will inter weavn them; strategy, transformation &leadership
should be encouraged & assessed in PAR system.
`

 Effective need based training programme must be conducted on regular intervals like
time bound task setting is formulated in PAR system, there must also be time made
appraiser equally awakened. This will also help in making the existing PAR system more
effective & purposeful.
 Deptts where work & task are not known, Like-Plant Maintenance & Hospital, PAR
system should be changed because jobs or tasks except regular work can’t beassigned to
individual
 Suggestion point should be considered & implementation total. As seen that the
suggestion are some times ignored by higher authorities. As IA is dealing with persons
whose PAR is filled & knows form very near.
 The present PAR system may be quite effective provide the weakness strengths training
requirements improvement suggestions are properly monitored for taking necessary
remedial action measures & fro suitable placement in the organization i.e. right person at
right place.
 Based upon the feedback.
 Employees must be given proper knowledge & made aware of PAR system in HCL
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CONCLUSION

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

ANNEXURE I
`

NAME:…………………………………………………………
DESIGNATION:………………………………………………
ADDRESS:
……………………………………………………..………………………………………………
…………………...
AGE: ……………………………………………………………GENDER: …………....
CONTACT NO. (If any): ……………………………………...

1. When performance appraisal is made in the organization?

o Monthly

o Quarterly

o Yearly

o Others

2. What is the objective of performance appraisal?

o Promotion

o Assessing training and development needs

o Pay rise

o Others
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3. Is there any conflict arise between employees after performance appraisal ismade?Frequently

o Often

o Sometimes

o Never

4. Are there any job expectations established before performance appraisal?

Frequently

o Often

o Sometimes

o Never

5. Who rates the performances?

o Superiors’

o Subordinates

o Clients

o All

6. On what basis performance appraisal is made?

o Total output
`

o Behavioural efficiency

o Both

7. Is 360 degree appraisal process undertaken in the organization?

o Yes

o No

8. Does any change arise after appraising the performances of employees?

o Yes
o No

9. Does performance appraisal process help to raise organization’s total output?

o Yes

o No
10.Are you satisfied with the appraisal process of the organization?
o Yes

o No

Any/comments/sugessions…………………………………………………………………………
………………………………………………………………………………………………………
……………
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`

BIBLIOGRAPHY

Books-
Human resource management by SHASHI. K. GUPTA
Research Methodology by CR.KOTHARI

Websites-
www.hcl.com
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http://www.hcllearning.com/cdc/