“A STUDY ON IMPACT OF PERFORMANCE

APPRAISAL ON EMPLOYEES OF TATA

CONSULTANCY SERVICES LTD.”

Project Report Submitted in partial Fulfillment of the requirements for the award of
the degree of

MASTER OF BUSINESS ADMINISTRATION

of

BANGALORE UNIVERSITY

Submitted By
Shruti Roychoudhury
REG. NO: 17X6CMD030

Under the guidance of

Mr. Prasanna Kumar Y.N.
Asst. Professor

R.R INSTITUTE OF ADVANCED STUDIES

#67, R.R Layout, R.R Group of Institution, Chikkabanavara, Bengaluru, Karnataka-90

2017-19
 TABLE OF CONTENTS

CHAPTER PAGE
PARTICULARS
NO. NO.

1 INTRODUCTION 1-4

BACKGROUND AND 5-15

OBJECTIVES
2.1. Industry Profile

2 2.2. Company Profile

2.3. Statement of the problem
2.4. Need of the study
2.5. Objective of the study

TRAINING METHODS AND 16-17

ACTIVITIES
3.1. Sampling
3
3.2. Data collection
3.3. Plan of analysis
3.4. Limitations of the study

4 LEARNING OUTCOMES 18-19

DATA ANALYSIS AND 20-39

5
INTERPRETATION

KEY FINDINGS AND 40-41

CONCLUSIONS
6
6.1. Key findings
6.2. Conclusions

7 RECOMMENDATIONS 42

ANNEXURE

BIBLIOGRAPHY
 LIST OF TABLES

TABLE PAGE
DESCRIPTION
NO. NUMBER

1 Age of the respondents 20

2 Gender of the respondents 22

3 Educational Qualification of the

24
respondents

4 Years of experience of the respondents 26

5 Performance appraisal helps to win co-

28
operation and teamwork

6 Performance appraisal is helpful in reducing

30
grievance among the employees

7 Performance appraisal is helpful for improving

32
personnel skill

8 Performance appraisal helps to identify the

34
strength and weakness of employees

9 Performance appraisal enhances employee

36
motivation

10 The present appraisal system identifies the 38

training needs
 LIST OF CHARTS

CHART PAGE
DESCRIPTION
NO. NUMBER

1 Age of the respondents 21

2 Gender of the respondents 23

3 Educational Qualification of the

25
respondents

4 Years of experience of the respondents 27

5 Performance appraisal helps to win co-

29
operation and teamwork

6 Performance appraisal is helpful in reducing

31
grievance among the employees

7 Performance appraisal is helpful for improving

33
personnel skill

8 Performance appraisal helps to identify the

35
strength and weakness of employees

9 Performance appraisal enhances employee

37
motivation

10 The present appraisal system identifies the 39

training needs
 CHAPTER-1

INTRODUCTION
PERFORMANCE APPRAISAL

The dynamic organizational framework is running persistently with the change. The
associations have utilized versatile capacity and proactive way to deal with exceeding
expectations in their business condition. Performance appraisal is the methodical,
intermittent and a fair-minded rating of an employee‘s excellence in issues relating to
his present employment and his potential for a superior job. Performance appraisal is
anything but a one-demonstration play. It is fairly a procedure that includes a few
demonstrations or steps. It is a orderly assessment of an employee‘s good qualities
and shortcomings with regards to the given job. It is an objective, fair-minded and
logical assessment through comparable measure and systems for all employees in a
formal way. The primary target of it is to know how well an employee is going for the
organization and what should be enhanced in him. Systematic (i.e., formal) appraisal
of an individual employee is probably going to happen at specific interims all through
that individual's history of work (say once in 3 months ,once in 6 months , once in a
year, etc.).

A solid Performance Appraisal process is efficient, cyclic, in nature and fundamental

need of an organization which causes the managers to assess and evaluate their
employees’ performance on a continuous premise. Performance Appraisal is an
efficient and intermittent survey of the performance of the employee working in the
organization. Performance Appraisal is a methodical and occasional survey of the
employee performance of the employee working in the organization.

Performance Appraisal expects to decide the required performance of the worker in

the start of the year. It is done mutually by the superior and his subordinate. The
supervisor then encourages his good performance during the given period.

PURPOSE OF PERFORMANCE APPRAISAL

According to Wayne F. Casco (2006), appraisals give a formal organizational

justification for employment decision regarding promotions, training, salary hikes and
incentives. To put it plainly, appraisal fills in as a key contributor for directing a
formal organizational reward and punishment system. Appraisals provide criticisms to
employees and accordingly fill in as vehicle for individual and profession
improvement. It helps the organization in diagnosing organizational issues by
recognizing training needs, qualities needed for hiring, serves as a basis for
differentiating between powerful and incapable performers.

The significant reason of performance appraisal is to empower discussion between the

subordinate and superior about job performance. As indicated by Abraham, Karnes,
Shaw and Mena(2001) leadership skills, client focus, result orientation, critical
thinking, communication and team work are six most basic and powerful capabilities
of manager while evaluating the performance of an employee. The performance
appraisal is considered as the device for communication which guarantees that the
supervisor and her reporting employee are clear about the expectations from each of
the employee.

The following are the principle reasons for performance appraisal:-

1. Appraisal Procedure: It provides a typical and bound together measure of

performance appraisal, with the goal that all employees are assessed in a similar way.
It gives an indiscriminatory rating of all the employees.

2. Decision Making: Performance appraisal of the employees is to a great extent

utilized for tricking the decision making process of the organization. In selection,
training, promotion, pay, increment and in transfer, performance appraisal is an
extremely helpful device.

3. Work Performance Records: Performance appraisal gives us a total data as records

with respect to every employee.

4. Employee’s Development: Performance appraisal guides the employees in

removing their drawbacks and improving their working .The shortcomings of the
employee recorded in the performance appraisal give the premise for an individual
development programme. If properly recorded and utilized, the performance appraisal
gives the reasonable chances to the employees to correct and rectify their mistakes.

5. Empowers Supervisors to be More Alert and Competent: Performance appraisal

empowers administrator to be progressively alert and skillful and to enhance the
nature of supervision by giving him a complete record of employee's performance. He
can manage an employee, where he is inclined to commit mistakes.

Performance Appraisal is an integral asset in estimating not only employees’

individual performance yet in addition group performance or teamwork and
additionally in general overall organizational performance. In the information
technology sector, Performance Appraisal plays the key job for the present and future
rivalry. In addition to this, Performance Appraisal is additionally used to check
whether an employee is performing according to the necessities of the organization.
Additionally it is utilized to discover the answer for what could possibly be done with
the non-performing employees or employees who fail to meet the expectations of the
organization, regardless of whether they ought to be offered training to influence them
to perform, which clearly lies with the management or administration of the
organization to choose.

Effects of performance appraisal on employees of an organization

The performance appraisal is an imperative career improvement device or tool for the
manager and the employee. The manager can help manage the employee on the way
to corporate progression, and the employee gets a crystal clear understanding of what
is expected from him/her in one’s everyday work obligations. Performance appraisals
have a wide assortment of impacts on employees that supervisors must recognize and
get it.

1. Motivation- An employee’s performance appraisal can go about as an inspiration

for an employee to enhance his efficiency. At the point when an employee sees his
objectives plainly characterized, his performance challenges distinguished and
career improvement solutions set up to enable development in his profession, the
impact is to persuade the employee to accomplish those objectives. Making an
exhaustive arrangement for employee improvement and giving an employee
accomplishments to make progress toward will encourage a higher amount of
productivity.

2. Clarity- Employees perform their job obligations to the best of their abilities
throughout the year depending on the direction from the executives or
management. Some portion of a performance appraisal is the point at which the
 manager and the employee review the set of working responsibilities and contrast
the employee’s performance with expectations. This gives the employee a feeling
of clarity and understanding that will enable him all the more better to perform his
duties more responsibly.

3. Take Responsibility- To get ready for the yearly review, a supervisor should keep
notes of the majority of the employee’s achievements and challenges and
difficulties he has faced consistently. At the point when these are introduced to the
employee amid the appraisal, it offers the employee the chance to get profit by
his/her achievements and accept responsibility for the performance challenges. By
asserting responsibility of performance issues, the employee makes the procedure
of career development an increasingly close to home duty.

4. Teamwork- Amid a performance appraisal, a supervisor needs to set aside

opportunity to demonstrate the employee how his performance influences the
efficiency of the whole organization. At the point when employees see how their
performance influences the capacity of other employees to carry out their
responsibilities, it helps put his own job duties into a general organization setting.
It enhances the thought of collaboration among the staff, and can likewise urge
participation to accomplish corporate objectives.
 CHAPTER-2

BACKGROUND AND OBJECTIVES

2.1 INDUSTRY PROFILE

Information technology has been around for a long, long time. Essentially insofar as
individuals have been near, information technology has been around because there were
always ways of communicating through technology available at that point in time.
There are four primary ages that partition up the historical backdrop of information
technology. Just the most recent age (electronic) and a portion of the electromechanical
age truly influences us today.

The four fundamental ages that contain the historical backdrop of information
technology are as per the following:-

1. Pre-mechanical age- The pre-mechanical age is the soonest time of information

technology. It tends to be characterized as the time between 3000 B.C. and 1450 A.D. It
is quite a while back. At the point when people initially begun communicating they
would try attempt to utilize dialect or language or basic picture illustrations known as
petroglyths which were generally carved in rock.

Early letters in order were created, for example, the Phoenician letter set or alphabet set.
As letters in order turned out to be increasingly well known and more individuals were
writing information down, pens and paper started to be produced. It began off as just
stamps in wet mud, yet later paper was made out of papyrus plant. The most well
known sort of paper made was presumably by the Chinese who made paper from
clothes.

Since individuals were recording a ton of information they required approaches to keep
it all in permanent storage. This is where the first books and libraries are created. There
were Egyptian scrolls parchments which were prevalent methods of recording
information to save. Some groups of individuals were actually binding paper together
into a book-like shape.

Likewise amid this period were the first numbering frameworks or systems. Around
100 A.D. was when the point at which the initial 1-9 framework was made by
individuals from India. Nonetheless, it wasn’t until 875 A.D. (after 775 years) that the
number 0 was developed. What’s more, now that numbers were made, individuals
needed stuff to do with them so they made calculators. A calculator was the very first
indication of an information processor. The famous model of that time was the abacus.

2. Mechanical age- The mechanical age is the point at which we first begin to see
associations between our present technology and its progenitors. The mechanical age
can be characterized as the time somewhere between 1450 and 1840. A ton of new
innovations are produced in this period as there is an expansive blast in enthusiasm with
this zone. Technologies like the slide rule (an analog computer used for multiplying and
dividing) were invented. Blaise Pascal invented the Pascaline which was an extremely
prevalent mechanical PC. Charles Babbage built up the difference engine which
tabulated polynomial equations utilizing the technique of finite differences. There were
bunches of various machines made amid this time and while we have not yet gottent to
a machine that can do more than one type of calculation in one, like our modern-day
calculators, we are still learning about how all of our all-in-one machines started.
Likewise, in the event that you take a gander at the span of the machines imagined in
this time contrasted with the power behind them it appears (to us) totally silly to
comprehend why anyone would need to utilize them, yet to the general population
living in that time these creations were immense.

3. Electromechanical age- Now we are at long last drawing near to a few advancements
in technologies that look-like our modern-day or current technology. The
electromechanical age can be characterized as the time somewhere between 1840 and
1940. These are the beginnings of media transmission or telecommunication. The
telegraph or broadcasting system was made in the mid 1800s. Morse code was made by
Samuel Morse in 1835. The telephone (a standout amongst the most famous types of
communication at any point) was made by Alexander Graham Bell in 1876. The first
radio was created by Guglielmo Giovanni Maria Marconi in 1894. These were to a
great degree vital rising innovations that prompted enormous advances in the
information technology field.

The first large-scale automatic digital computer in the United States was the Mark 1
made by Harvard University around 1940. This PC was 8ft high, 50ft long, 2ft wide,
and weighed 5 tons .It was magnificent. It was programmed using punch cards. It was
from colossal machines like this that individuals started to take to look at reducing the
size or scaling down each one of the parts to first make them usable by organizations
and in the end in our very own home.

4. Electronic age- The electronic age is the thing that we as of now live in. It very well
may be characterized as the time between 1940 and at this moment. The ENIAC was
the first high-speed, digital computer fit or capable of being reprogrammed or
reconstructed to solve a full range of computing problems. This computer was designed
to be used by the U.S. Army for artillery firing tables. This machine was significantly
bigger than the Mark 1 taking up 680 square feet and weighing 30 tons which was again
magnificent. It primarily utilized vacuum tubes to do its counts.

There are 4 primary segments of digital computing. The first was the period of vacuum
tubes and punch cards like the ENIAC and Mark 1. Rotating magnetic drums were used
for internal storage. The second era supplanted vacuum tubes with transistors, punch
cards were supplanted with magnetic tape, and rotating magnetic drums were swapped
by magnetic cores for inward storage. Additionally amid this time high-level
programming languages were created such as FORTRAN and COBOL. The third era
supplanted transistors with integrated circuits, magnetic tape was utilized throughout all
computers, and magnetic core transformed into metal oxide semiconductors. An actual
operating system appeared around this time alongside the advanced programming
language BASIC. The fourth and most recent age acquired CPUs (central processing
units) which contained memory, logic, and control circuits all on a mono chip. The
personal computer was created (Apple II). The graphical user interface (GUI) was
created.

The 2000s saw the introduction of smart devices that enabled everybody to have
access to information from their fingertips. This, indeed, changed the direction of
information technology and computer development.

The IT business incorporates business for improvement, support and publication of

software that are utilizing distinctive business models, predominantly either
"license/maintenance based" (on-premises) or "Cloud based" (viz. SaaS, PaaS, IaaS,
MaaS, AaaS, and so on). The industry also includes software services, such as
training, documentation, consulting and data recovery.
History of IT sector in India prior to 1991

In 1965, immigration laws in USA were changed and the confinements on immigrants
were decreased significantly. Thus a great deal of Indian professionals relocated for
research opportunities in USA. The IT revolution in USA and the much liked Silicon
Valley in the US amid the 90s could not have been possible without the work of these
shifted Indians. What this movement did for the Indian IT industry was making
multitudinous open doors in the USA in the IT sector. Because of the quickly
developing IT segment in USA, there was a requirement for IT experts outside USA.
India had an enormous number of educated people and the education in India, English
being the medium, there was a huge populace of English speaking technically strong
people in India. Subsequently outsourcing of work began gaining momentum and this
prompted the huge boom in the IT sector in India, whose most of the work is
exporting software and software services to the US and other overseas clients.

Tata Consultancy Services (TCS) was begun by the TATA group for software
development services in India in 1968. TCS started the software services by creating
punched card facilities for TATA steel employees (TSICO). The first overseas client
for TCS was Burroughs Corporation based in the United States. The assignment of
TCS was to compose software code for the Burroughs machines in 1974. With word
of mouth, TCS grabbed a various projects and assignments, little and enormous amid
the next years and today TCS is India's best IT organization with a turnover of more
than $10 billion. In 1966, Azim Premji became the chairmen of the expansive
organization WIPRO and the focus of WIPRO was concentrated on the IT services
sector. Patni Computer Systems started developing software and providing services
since the start of the organization in 1972 (around then it was named Data Conversion
Inc). In 1981,Infosys was founded by Narayan Murthy and his partners. Infosys was
totally dedicated towards giving quality software services and furthermore built up an
IT business model which was later followed by most of the IT organizations in India.

The Indian economy amid this period was totally controlled by the Indian
Government and there were strict limitations and directions for private business
elements in India. Subsequently there was no real development in the IT division in
India till 1991.
Economic reforms in 1991 and rise of IT sector in India

The Indian government had strict control over the private business entities in India
before liberalization of economy in 1991. Moreover, the central government
completely controlled the wide area networks and internet lines. In this manner, the
Indian IT sector was totally held down in view of these confinements on the working
of the software services providers. The first real IT reform by the Indian
Government was the formation of a unit called Software Technology Parks of India
(STPI). This enterprise gave satellite connects to significant IT designers empowering
them to transmit the work done in India straightforwardly abroad. This decreased the
expenses brought about to the Indian IT organizations and additionally helped the
clients in US confide in Indian businesses and go for outsourcing. The then Finance
minister, Dr. Manmohan Singh, presented the major economic reforms in 1991 to
solve the debt issue made amid that time. According to these economic reforms the
universal reconciliation became possible. The tremendous limitations on overseas
business were lifted and foreign investments were invited. Accordingly, the IT
business in India turned out to be free and the business of outsourcing would at long
last gain force with an ever increasing number of clients and enterprises going for
outsourcing of IT. Also, the beginning of Windows and other user friendly operating
services made the PC experience considerably simpler and less tedious. Combined
with advancement of high level programming languages like Basic, C and others, the
Indian IT cerebrums had the ideal stage to ascend in the worldwide field.. The Indian
IT industry boomed and developed at gain of nearly 50% every year.
Another significant occasion for Indian IT industry post the 1991 changes was the
Y2K bug. Fear of an entire breakdown of computer services, the US corporations
outsourced all the machines and updating work to Indians. The errand of redressing
the Y2K bug was tossed to the Indians and subsequently the alteration of the
considerable number of codes and softwares, which were at first structured till a date
of 1999 was to be altered and enormous work was outsourced to the Indian IT
businesses. The Indian IT industry has contributed a national GDP of over 6% since
these financial changes occurred 20 years prior and today, India is known as the IT
center of the world.

The NDA (National Democratic Alliance) government, under the initiative of prime
minister Atal Bihari Vajpayee, incorporated the improvement of IT as the best need in
their long haul plan. Indian National Task Force was shaped for this reason which
overwhelmed its development of IT services in extensive scale and small IT
undertakings in India. Within 3 months, the National Task Force, provided an
itemized cover on the Indian IT and technological businesses with in excess of 100
proposals which would help enhance the IT services in India. A swift action plan by
the Central Government towards IT services growth was executed and every one of
the proposals were followed up on sooner than later. The aftereffect of these
endeavors from the Indian Government proved to be fruitful with the IT exports
touching more than $50 billion. Now, Indian economy was no longer a developing
nation, but at neck-to-neck level with those of the developed nations in the world. The
New Telecommunications Policy, 1999 (NTP 1999) helped free the
telecommunications sector in India. This helped accessibility of the infrastructure for
the telecommunication. The satellites, towers and other telecom related organizations
were never again had ownership by the Central Government. The entry of private
sector in these departments helped the telecom division grow quickly resulting in
the boom in IT segment in India in the long run. The development of IT is absolutely
reliant on the advancement and improvement of telecom industry. The Information
Technology Act 2000 gave lawful acknowledgment of the electronic records, digital
signatures, offences and negations. This helped in a long way in striking deals with
US clients as no longer the individual to individual gathering was required for
finalization of business deals.

2.2 COMPANY PROFILE

Built up in 1968, Tata Consultancy Services a member of the Tata Group has
developed to its present position as the biggest IT services firm in Asia depending on
its record of exceptional service, collective associations, advancement, and corporate
responsibility.

It was established by Jamshedji Tata in 1848 and it is one of India’s most respected
organizations today. Their main goal mirrors the Tata Group's longstanding pledge to
giving brilliance- to enable clients to accomplish their business objectives by
providing creative, best–in–class consulting, IT solutions and services, and to
effectively connect all stakeholders in a profitable, collaborative, and commonly
useful relationship.

TCS's capacity to deliver high–quality services and solutions is unmatched. They are
the world’s first business entity to accomplish an enterprise–wide Maturity Level 5 on
both CMMI and P–CMM, utilizing the most thorough assessment methodology –
SCAMPISM. Additionally, TCS’s Integrated Quality Management System (iQMS)
incorporates process, individuals and technology development through different set-
up structures and practices including IEEE, ISO 9001:2000, CMMI, SW–CMM, P–
CMM and 6–Sigma.

It is biggest IT employer in India. It provides services to extensive variety of section

like banking & financial services, energy, resources & utilities, government, telecom,
media & information services, and so on.

Some essential aspects identified with TCS are referenced underneath:-

 One of the largest employers for women employees with about 36% in the IT
sector.
 TCS turned into the first Indian IT organization to reach $100 billion market
capitalization with an estimation of $102.6 billion in Bombay Stock Exchange
and second Indian organization ever after Reliance Industries Ltd. that
accomplished the equivalent in 2007.
 TCS is positioned 10th on Fortune India 500 list in 2017.
 World’s largest IT service provider by revenue.
 TCS is positioned 64th overall in Forbes World’s most creative organizations
ranking, making it the most astounding ranked IT services organization ever.

Organization Heads

 Chairman of TCS- N. Chandrasekaran

 CEO and Managing Director of TCS- Rajesh Gopinathan

TCS Mission Statement

“To enable clients to accomplish their business objectives by providing creative, best-
in-class consulting, IT solutions and services and to make it a delight or all
stakeholders to work with us”.

Tagline of the organization

Experience Certainty.

Headquarters of the organization

Mumbai, Maharashtra, India

Geographical Presence

TCS is a worldwide pioneer in technology and consulting services. It empowers

clients in 46 nations to make and execute strategies for their digital transformation.

A piece of the TATA group, TCS has 3,95,000 associates(including subsidiaries),

representing 131 nationalities, spreading over 46 nations as of March 31, 2018. The
organization produced consolidated revenues of US $19.09 billion( a development of
8.6% over the earlier year) for the year ended on March 31, 2018, and is recorded on
the National Stock Exchange and Bombay Stock Exchange in India.

Awards and Recognitions

 TCS is ranked among the Top Regarded Companies and the World’s Best
Employers in the 2017 Global 2000 List by Independent survey.
 Based on the “WILL Best Employers for Women: Benchmarking survey”
conducted by the WILL Forum India ( Forum for Women in Leadership), TCS
has been awarded ‘WILL Best Employers for Women’.
 At the Great Employers Awards in 2017, the organization has won one Gold
and two Silver Stevies.
 The Top Employer Institute has recognized TCS as Global Top Employer.
With this TCS has become one of the 8 organizations all over the world to
have achieved this status.

TCS acquired Citigroup Global Services(CGSL), India based BPO for $505 million.
The acquisition expanded TCS’s portfolio of end–to–end IT and BPO services in the
worldwide Banking and Financial Services (BFS) division. TCS’s upgraded scale and
skill will be give service improvements to Citi and Citi’s clients. CGSL has in excess
of 12,000 employees situated in India.

Tata Consultancy Services conveys genuine outcomes to worldwide organizations,

guaranteeing a dimension of sureness which no other firm can match.TCS offers a
consulting–driven, integrated portfolio of IT and IT–enabled services delivered
through its one of a kind Global Network Delivery Model, recognized as the
benchmark of magnificence in software development. TCS has more than 143,000 of
the world's best prepared and trained IT consultants in 42 nations.

Tata Consultancy Services reported the dispatch of TCS BaNCS Core Banking
Release 12.0 at the yearly flagship event for banking and capital markets, SIBOS
2011, in Toronto.

In 2014, TCS announced to set up biggest Corporate Learning Center in Trivandrum

with a capacity to train 50,000 IT experts consistently each year.

IT services which TCS offers:

 Custom Application Development

 Application Management
 Migration & Re–engineering
 System Integration
 Testing
 Performance Engineering

Consulting services which TCS offers:

 Business Consulting
 IT Consulting
 Business Solutions

Business Process Outsourcing services which TCS offers:

 Customer Interaction Management (CIM)
 Finance and Accounting
 Human Resources Outsourcing
  Knowledge Process Outsourcing
 Supply Chain Management
 Reconciliations
 Benefits Administration
 Payroll
 Industry–specific Offerings

2.3 STATEMENT OF THE PROBLEM

A study on effect of the performance appraisal on employees of TCS is undertaken. It

is undertaken to help in exercises such as training and development, pay increment,
transfer, promotion and so forth. It additionally fills in as a feedback to the
employees, providing incentives to employees etc. Performance appraisals of
employees are fundamental for the improvement of the individuals and also the
organization. It finds the gaps in the existing performance appraisal system.

2.4 NEED OF THE STUDY

 To find out current system of performance appraisal in TCS

 To find out if it is necessary to change the current performance appraisal
system
 To understand the need of performance appraisal in the organization
 To find if any changes are there in the performance appraisal system and how it
affects the performance, motivation and development of employees and
whether there are any training needs for enhancement in performance of
employees.

2.5 OBJECTIVE OF THE STUDY

 To study the performance appraisal for employees at TCS

 To analyze the implementation of performance appraisal system on employees
at TCS
 To identify the impact of performance appraisal on productivity of employees
of TCS
 To suggest the modifications needed in the present employee performance
appraisal systems for enriching it.

CHAPTER-3

TRAINING METHODS AND ACTIVITIES

3.1 SAMPLING

The total sample size for the data collection for the research was 50 respondents.

3.2 DATA COLLECTION

The sources of data collection are:-

Primary data:

It is the first hand information collected by the researcher himself/herself for his/her
study. The sources of primary data collected in the project are:-

 Interviews: Interviews were conducted with respondents who were employees

of TCS in which questions and opinions regarding performance appraisal in
the company was asked.
 Questionnaires: A set of 10 questions were given to 50 employees to mark
their answers.

Secondary data:

It is the data that has been collected by some other people other than the user or the
researcher himself/herself. The sources of secondary data collected in the project are:-

 Company website: Information was collected from official company website

of TCS
 Journals, magazines: Information was collected from different management
journals and magazines.

3.3 PLAN OF ANALYSIS


 The information required for the study has been collected from primary data
source using structured questionnaires with closed-end questions with 5-point
scale and nominal scaling technique. Also secondary data source has been used
from websites.
 Later the frequency distribution, Percentage, Graphs will be done for analyzing
the data and interpretation will be done.

 Finally based on the data analysis the necessary findings will be collected with the
meaningful Conclusion.
 Later on recommendations will be given.

3.4 LIMITATIONS OF THE STUDY

A study cannot be 100% accurate at all the time. This is because of the inherent
limitation that could be present in such a study.

 The project is restricted to the responses of those interviewed during the

period of data collection.
 Reluctance to answer the questions is one of the limitation.
 Errors occur due to personal bias of the respondents.
 Lack of co-operation by the respondents while collecting data is another
limitation.
 CHAPTER-4

LEARNING OUTCOMES
In this section, I will put into words about the performance appraisal systems of the
employees of TCS and how it affects the employees of the same organization
whatever I have found out from my research on the topic.

PERFORMANCE APPRAISAL SYSTEM IN TCS

Till now in TCS, the model of performance appraisal which was being pursued was
the bell-curve. The idea of bell curve was given by German mathematician Johann
Carl Friedrich Gauss in 1809. Bell curve framework of performance appraisal is a
forced ranking system imposed on the employees by the management. Through this
framework the organization tries to segregate the best, mediocre and worst performers
and support the best and dispose of the worst. Furthermore, this segregation is based
on relative comparison of the performance of the workforce against those occupied
with similar activity and rank them accordingly.

Bell curve model of performance appraisal assumes that employees in a company can
be segregated into groups such as:

 High Performers – Top 20%

 Average Performers – The middle 70%
 Non-Performers or Below Average Performers – The bottom 10%.

Figure 1. Bell-curve model of performance appraisal

The present arrangement of performance appraisal being followed in the organization
is the arrangement of continuous feedback. Also, there is currently one appraisal cycle
for whole year applicable for all employees. Rather than half-yearly appraisals,
targeted employees would move to a project-end appraisal cycle — and that the
projects could last somewhere in the range from two months to a year.
 CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

TABLE-1

AGE OF THE RESPONDENTS

NUMBER OF
AGE IN PERCENTAGE
RESPONDENTS

20-30 10 20

30-40 20 40

40-50 9 18

50-60 11 22

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table it is clear that 20% of the respondents are in the age between 20-
30, 40% of the respondents are in the age between 30-40, 18% of the respondents are
in the age between 40-50. 22% of the respondents are in the age between 50-60.
CHART-1

AGE OF RESPONDENTS

45
40
40
35
30
NUMBER OF
25 22
20 20 RESPONDENTS
20 18
PERCENTAGE OF
15 11 RESPONDENTS
10 9
10
5
0
20-30 30-40 40-50 50-60

INTERPRETATION

More than 40% of employees belong to age group of 30-40 and 20% of respondents
are youngsters, so we can say that there are more middle-aged people employed than
youngsters.
TABLE-2

RESPONDENTS BY THEIR GENDER

NO. OF IN
S.NO GENDER
RESPONDENTS PERCENTAGE

1 MALE 31 62

2 FEMALE 19 38

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table (2), it is clear that 62% of the respondents are male whereas
38% of respondents are female.
CHART-2

RESPONDENTS BY THEIR GENDER

70 62
60
50
38 NO. OF
40 31 RESPONDENTS
30 PERCENTAGE OF
19
RESPONDENTS
20
10
0
MALE FEMALE

INTERPRETATION

62% of employees belong to male gender whereas 38% of respondents are females.
Hence we can say that there are quite a lot of female employees in the organization
but they are less in strength compared to the male employees.
TABLE-3

RESPONDENTS BY THEIR EDUCATIONAL QUALIFICATION

S.NO EDUCATIONAL NO. OF IN

QUALIFICATION RESPONDENTS PERCENTAGE

1 SSLC 9 18

2 PUC 8 16

3 Graduation 17 34

4 Post graduation 16 32

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table it is clear that about 18% have completed their SSLC, 16% of
respondents have completed their PUC, most of the respondents, about 34% of the
respondents have completed their Graduation and 32% of respondents have completed
their Post graduation.
CHART-3

RESPONDENTS BY THEIR EDUCATIONAL QUALIFICATION

34
35 32
30
25
18 17
20 16 16
15 NO. OF
9 8 RESPONDENTS
10
5 PERCENTAGE OF
0 RESPONDENTS

INTERPRETATION

The above graph shows that 34% of employees have done their graduation and 32%
have done their post graduation. Most of the employees’ qualification in the company
is graduation and post graduation. So it is clear that company is concentrating more
on the more qualified employees because they need more technically educated
workers.
TABLE-4

RESPONDENTS BY THEIR YEARS OF EXPERIENCE

EXPERIENCE( NO.OF IN
S.NO.
YEARS) RESPONDENTS PERCENTAGE

1 Less than 3 years 6 12

2 4 years 12 24

3 5 years 14 28

4 Above 6 years 18 36

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table (4), it is clear that 12% of respondents are below 3 years
experienced, 24% of the respondents are 4 years experienced, 28% of respondents
have an experience of 5 years, 36% of respondents are above 6 years experienced.
CHART-4

RESPONDENTS BY THEIR YEARS OF EXPERIENCE

40 36
35 28
30 24
25 18 NO.OF
20 14
12 12 RESPONDENTS
15
10 6 PERCENTAGE OF
5 RESPONDENTS
0
Less 4 years 5 years Above
than 3 6 years
years

SOURCE: BY QUESTIONNAIRE- NOV 2018

INTERPRETATION

The graph shows that majority (36%) of respondents are above 6 years of experience.
It is clear that company is maintaining experienced employees. Therefore the work
performance will increase and employees may take short time to perform the task in
effective way.
TABLE-5

PERFORMANCE APPRAISAL HELPS TO WIN CO-OPERATION AND

TEAMWORK

NO. OF IN
S.NO. PARTICULARS
RESPONDENTS PERCENTAGE

1 Strongly Agree 27 54

2 Agree 22 44

3 Neutral 0 0

4 Disagree 1 2

5 Strongly Disagree 0 0

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table(5), it is clear that 54% of respondents strongly agree that
performance appraisal system helps to win co-operation and teamwork, 44% of
respondents agree to the same and 2% of the respondents disagree to the same.
CHART- 5

PERFORMANCE APPRAISAL HELPS TO WIN CO-OPERATION AND

TEAMWORK

60 54
50 44
40
27
30 22
NO. OF
20 RESPONDENTS
10 00 12 00
Percentage of
0
respondents

INTERPRETATION

The graph shows that 54% f the respondents strongly agree that performance appraisal
helps to win co-operation and teamwork, because if the employees are doing team
work co-operation is required to achieve the task successfully and when team has to
perform better individual co-operation is necessary and 2% disagree to the above
statement.
TABLE-6

PERFORMANCE APPRAISAL IS HELPFUL IN REDUCING GRIEVANCE

AMONG THE EMPLOYEES

NO. OF IN
S.NO. PARTICULARS
RESPONDENTS PERCENTAGE

1 Strongly Agree 24 48

2 Agree 21 42

3 Neutral 3 6

4 Disagree 2 4

5 Strongly Disagree 0 0

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table(6), it is clear that 48% of respondents strongly agree that
performance appraisal system is helpful in reducing grievance among the employees,
42% of respondents agree to the same; 6% of respondents are neutral to the same and
4% of respondents disagree to the same.
CHART-6

PERFORMANCE APPRAISAL IS HELPFUL IN REDUCING GRIEVANCE

AMONG THE EMPLOYEES

48
50
45 42
40
35
30 24
25 21
NO. OF
20
RESPONDENTS
15
10 6 PERCENTAGE OF
5
3 24 00 RESPONDENTS
0

INTERPRETATION

The graph shows that 48% of respondents strongly agree that performance appraisal
system is helpful in reducing grievance among the employees because performance
will be evaluated by the appraiser and employees are aware that if they create any
problem that will affect their performance appraisal and have negative impact on
them and 4% of the respondents disagree to the same.
TABLE-7

PERFORMANCE APPRAISAL IS HELPFUL FOR IMPROVING

PERSONNEL SKILL

NO. OF IN
S.NO. PARTICULARS
RESPONDENTS PERCENTAGE

1 Strongly Agree 28 56

2 Agree 20 40

3 Neutral 2 4

4 Disagree 0 0

5 Strongly Disagree 0 0

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table (7), it is clear that 56% of respondents strongly agree and 40%
of respondents agree & 4% are neutral that performance appraisal is helpful in
improving personnel skill.
CHART-7

PERFORMANCE APPRAISAL IS HELPFUL FOR IMPROVING

PERSONNEL SKILL

60 56

50
40
40
28
30
20 NO. OF
20 RESPONDENTS

10 PERCENTAGE OF
24 00 00 RESPONDENTS
0

INTERPRETATION

The graph shows that 56% of respondent are strongly agree that performance
appraisal system is helpful in improving personnel skill because the employees keep
on learning in the organization and improve their skill so that their performance will
have a positive impact on their jobs and they can get promoted easily.
TABLE-8

PERFORMANCE APPRAISAL HELPS TO IDENTIFY THE STRENGTH

AND WEAKNESS OF EMPLOYEES

NO. OF IN
S.NO. PARTICULARS
RESPONDENTS PERCENTAGE

1 Strongly Agree 25 50

2 Agree 25 50

3 Neutral 0 0

4 Disagree 0 0

5 Strongly Disagree 0 0

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table (8), it is clear that 50% of respondents strongly agree and 50%
of respondents agree that performance appraisal system helps to identify the strengths
and weaknesses of the employees.
CHART-8

PERFORMANCE APPRAISAL HELPS TO IDENTIFY THE STRENGTH

AND WEAKNESS OF EMPLOYEES

50 50
50
45
40
35
30 25 25
25
No.of respondents
20
15
10 Percentage of
5 0 0 0 0 0 0 respondents
0

INTERPRETATION

The graph shows that 50% of respondents strongly agree that performance appraisal
system helps to identify the strength and weaknesses of the employee. This will help
the employer to know where actually the employees are standing and what are the
strengths and weaknesses of their employees and according to that they can give
feedback to the employees.
TABLE-9

PERFORMANCE APPRAISAL ENHANCES EMPLOYEE MOTIVATION

NO. OF IN
S.NO. PARTICULARS
RESPONDENTS PERCENTAGE

1 Strongly Agree 23 46

2 Agree 27 54

3 Neutral 0 0

4 Disagree 0 0

5 Strongly Disagree 0 0

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table (9), it is clear that 46% of respondents strongly agree and 54%
of respondents agree that performance appraisal enhances employee motivation.
CHART-9

PERFORMANCE APPRAISAL ENHANCES EMPLOYEE MOTIVATION

60 54
46
50
40
27
30 23
No.of respondents
20
10 00 00 00 Percentage of
0 respondents

INTERPRETATION

The graph shows that 54% of respondents agree that performance appraisal enhances
employee motivation. Motivation is the process that energizes employees and propels
them to pursue their goals. Well designed and well-executed performance appraisals
have a strong motivational impact. Appraisals have the power to motivate employees
because they provide a number of interconnected benefits.
TABLE-10
THE PRESENT APPRAISAL SYSTEM IDENTIFIES THE TRAINING
NEEDS

NO. OF IN
S.NO. PARTICULARS
RESPONDENTS PERCENTAGE

1 Strongly Agree 12 24

2 Agree 18 36

3 Neutral 12 24

4 Disagree 8 16

5 Strongly Disagree 0 0

TOTAL 50 100

SOURCE: BY QUESTIONNAIRE- NOV 2018

ANALYSIS

From the above table (10), it is seen that 24% of the respondents strongly agree that
the present appraisal system identifies the training needs, 36% of the respondents
agree to the same, 24% of respondents are neutral to it, 16% of the respondents
disagree to the same.
CHART-10
THE PRESENT APPRAISAL SYSTEM IDENTIFIES THE TRAINING
NEEDS

40 36
35
30 24 24
25 18
20 16
12 12 No.of respondents
15 8
10
5 00 Percentage of
0 respondents

INTERPRETATION

Majority (36%) of employees agree and 16% disagree that the present appraisal
system identifies the training needs which will help to increase the performance of
employees.
 CHAPTER-6

KEY FINDINGS AND CONCLUSIONS

6.1 KEY FINDINGS

 20% of respondents are youngsters and 40% are middle-aged.

 38% of respondents are females and 62% are males
 34% of the respondents are having educational qualification as graduation degree
and 16% have passed PUC.
 36% of the respondents are having more than 6 years of experience and 12% of
respondents have less than 3 years of experience.
 Majority (54%) of the respondents strongly agree that performance appraisal
system helps to win co-operation and teamwork and 2% of the respondents
disagree to the statement.
 It is observed that majority (48%) of respondents strongly agree that the
performance appraisal system is helpful in reducing grievance among employees
and 4% disagree to the statement.
 Majority (56%) of respondents strongly agree that the performance appraisal
system is helpful in improving personnel skill.
 50% of respondents strongly agree that performance appraisal system helps to
identify strength and weakness of employees.
 It has been found that majority (54%) of the respondents agree that performance
appraisal enhances employee motivation.
 Majority (36%) of respondents believe that present appraisal system identifies the
training needs.

6.2 CONCLUSIONS

The project has been carried out with the target of studying and concentrating the
effect on employees and effectiveness of the existing performance appraisal system of
TCS. Appraisal is the evaluation of worth, quality or legitimacy. In the organizational
view performance appraisal is a precise assessment of staff by superior or others
familiar with their performance.

Different factors like age of the staffs, gender, educational qualification and
years of experience are compared with various factors affecting appraisal of
performance. The different factors include work standards, feedback, motivation,
training needs, and so on. These variables are compared with the performance of
employees. Performance appraisal helps in exercises such as training and
development, salary increase, transfer, and so forth. It additionally serves as a
feedback to the employees, and so on. Different proposals are made for enhancing the
circumstances.

Organizations are run and controlled by individuals. It is through individuals

that goals are set and objectives figured out. The performance of an organization is in
this way reliant upon the whole of the performance of its individuals. Appraisals help
to develop individuals, improve a person, to make inquiries and proposes whether
there are any training requirements for the employee.

Consequently, performance appraisal is especially fundamental for each

employee of an organization as it realizes the improvement of the individual and in
addition the increase in performance of his team and indirectly the organization as it
helps in inspiring and motivating the employees which urges them to perform well to
accomplish their individual goals and in addition the goals of the organization.
 CHAPTER-7

RECOMMENDATIONS
 The employees in the company are experienced and company can better utilize
their potentials for the improvement of company.

 Company is concentrating more on technically-qualified graduates because they

need more technical persons.

 Company is maintaining experienced employees. Therefore the work performance

will increase and employees may take short duration to perform the task
effectively.

 Developing an effective employee performance appraisal system allows one to

improve employee performance, employee satisfaction, employee motivation and
achieve the organizational goals and objectives.

 The pressure on the employees can be reduced. Proper training and development
can be given to the employees.
QUESTIONNAIRES

Please tick( ) the appropriate choice for the following questions:

1. What is your age group?

A. 20-30 ( )

B. 30-40 ( )

C. 40-50 ( )

D. 50-60 ( )

2. What is your gender?

A. Male ( )
B. Female ( )

3. What is your educational qualification?

A. SSLC ( )

B. PUC ( )

C. Graduation ( )

D. Post graduation ( )

4. What is your year of experience in TCS?

A. Less than 3 years ( )

B. 4 years ( )

C. 5 years ( )

D. More than 6 years ( )

5. Do you agree that performance appraisal helps to win co-operation and

teamwork?
 A. Strongly agree ( )

B. Agree ( )

C. Neutral ( )

D. Disagree ( )

E. Strongly disagree ( )

6. Do you agree that performance appraisal is helpful in reducing

grievance among employees?

A. Strongly agree ( )

B. Agree ( )

C. Neutral ( )

D. Disagree ( )

E. Strongly disagree ( )

7. Do you agree that performance appraisal is helpful for improving

personnel skill?

A. Strongly agree ( )

B. Agree ( )

C. Neutral ( )

D. Disagree ( )

E. Strongly disagree ( )

8. Do you agree that performance appraisal is helps to identify the

strength and weakness of employees?

A. Strongly agree ( )

B. Agree ( )

C. Neutral ( )

D. Disagree ( )
 E. Strongly disagree ( )

9. Do you agree that performance appraisal enhances employee

motivation?

A. Strongly agree ( )

B. Agree ( )

C. Neutral ( )

D. Disagree ( )

E. Strongly disagree ( )

10. Do you agree that performance appraisal may lead to disputes

among superiors and subordinates?

A. Strongly agree ( )

B. Agree ( )

C. Neutral ( )

D. Disagree ( )

E. Strongly disagree ( )
 BIBLIOGRAPHY
WEBSITES

1. https://www.tcs.com

2. https://economictimes.indiatimes.com

JOURNALS

1. The International Journal on Human Resource Management- Volume 28, 2017-

issue 5

2. Journal of Public Administration and Governance- Volume 4, No.4, 2014

 MBA 3rd semester project
1ST PROGRESS REPORT
Sl. Particulars
No.
1 Name of the Student
2 Registration Number
3 Name of College Guide
4 Name and contact no of the
Co-Guide/External Guide
(Corporate)
5 Title of the Dissertation
6 Name and Address of the
Company/Organization where
dissertation undertaken with
Date of starting Dissertation
7 Progress report : A brief note
reflecting ,Number of meeting
with Guides, places visited,
libraries visited, books referred,
meeting with persons, activities
taken up, preparations done for
collection and analysis of data
etc.,)
SHRUTI ROYCHOUDHURY
17X6CMD030
ASST. PROF. PRASANNA KUMAR Y N
ARKAJYOTI MISRA
Contact no: 7676133377
A STUDY ON IMPACT OF
PERFORMANCE APPRAISAL ON
EMPLOYEES OF TATA
CONSULTANCY SERVICES LIMITED
TATA CONSULTANCY SERVICES
LIMITED, 6TH FLOOR, C 4 BUILDING,
MANYATA TECH PARK, OUTER RING
ROAD,NAGAWARA, BANGALORE-
560045
Email: https://www.tcs.com/
05/11/2018: Submitted the synopsis to the
university.
15/11/2018: Got the approval of my topic
from the university and started preparation
works to carry on with the project.
Discussed with the external guide regarding
the project.
19/11/2018: Went to college library in
search of articles and journals related to my
project.The books I referred some journals
which are as follows:-
1. International journal of social
sciences and entrepreneurship.
2. IOSR journal of business &
management.
22/11/2018: I met with the external guide
regarding the project and have asked the
required material which will be needful
throughout my work. A brief introduction
on my title was given by the external guide.
 26/11/2018: Met with my internal guide and
discussed what was to be done and other
important information which I should
collect from my external guide.

30/11/2018: I met few known employees

and asked some questions regarding
performance appraisal in their company and
how it affects them.

Date: 30-11-2018

Signature of the Candidate Signature of the College

Guide
 MBA 3rd SEMESTER PROJECT
2nd PROGRESS REPORT
Sl. Particulars
No.
1 Name of the Student
2 Registration Number
3 Name of College Guide
4 Name and contact no of the
Co-Guide/External Guide
(Corporate)
5 Title of the Dissertation
6 Name and Address of the
Company/Organization where
dissertation undertaken with
Date of starting Dissertation
7 Progress report : A brief note
reflecting ,Number of meeting
with Guides, places visited,
libraries visited, books referred,
meeting with persons, activities
taken up, preparations done for
collection and analysis of data
etc.,)
Date: 14-12-2018
SHRUTI ROYCHOUDHURY
17X6CMD030
ASST. PROF. PRASANNA KUMAR Y N
ARKAJYOTI MISRA
Contact no: 7676133377
A STUDY ON IMPACT OF
PERFORMANCE APPRAISAL ON
EMPLOYEES OF TATA
CONSULTANCY SERVICES LIMITED
TATA CONSULTANCY SERVICES
LIMITED, 6TH FLOOR, C 4 BUILDING,
MANYATA TECH PARK, OUTER RING
ROAD,NAGAWARA, BANGALORE-
560045
Email: https://www.tcs.com/
01/12/2018: Met my internal guide and
discussed about the questionnaire to be
prepared for the interview
03/12/2018: I met my external guide and he
introduced me to some of the employees of
TCS to whom I gave those questionnaires
prepared by me to answer
06/12/2018: Got the response on the
questionnaires back from those respondents
08/12/2018: I met my internal guide and sat
with him for discussing the data analysis
and interpretation of the data collected by
me
11/12/2018: Drew inferences from the
collected data and jotted them down and
went to the library to refer more journals
14/12/2018: Discussed for the key findings
and conclusion with the internal guide
Signature of the Candidate Signature of the College
Guide