Performance management system at TCS Essay

The operation focus process involves each levels in an make-up. strategical destructions set by the organization filter through the organization and affect the goals and activities of individually employee. In addition, the performance commission process gathers and updates current employee data to save the human resource information governing body (HRIS). The HRIS contains a skill bank of employee information that enables the HR de luckment to determine if the organization has the right mix of skills and mint to achieve the organizations goals in an ever-changing world. This information is drilld in all areas of HR decision-making. Effective performance management requires ongoing communicating between supervisors and staff. The assessment and review part of the process provides the opportunity for documentation and formal communication. Its the time for the supervisor and the employee to set developmental goals that reinforce the organizations strategic plan and, if th ere are areas of problem performance, action plans for improvement. in that location should be discussion of the employees career progress and plans made for bringing up and long-term career growth. Many supervisors see the assessment process as a motif mari geniustte to improve employee performance.The employees main objective is to run feedback from the supervisor on his or her change state performance. Ideally, employees receive feedback at all times and non just through the review process. The employee allow for to a fault foresee organizational support in his or her career growth.To jerk offher, the employee and the supervisor should identify areas for improvement and set goals for develop and skill development. Anything the supervisor rotter do to lift the employees skills will benefit both the employee and the organization. If the organization links performance appraisal to allowance, most employees will expect a raise as a result of a positive review. Though su pervisors generally conduct the review, they may non have a say in the amount of compensation looted because compensation is normally determined by organizational policy. This can be particularly problematic for supervisors who want to motivate employees through the appraisal process but disclose the organizations compensation to be a de-motivator when increases are not as much as employees would like. For this reason, many supervisors prefer that compensation increases are not linked to the performance appraisal process.Difference between transaction management and performance appraisal Performance ManagementPerformance AppraisalPerformance management is a goal-oriented system to ensure that organizational processes exist to maximize the productivity of employees, teams and, ultimately, the organization.A performance appraisal is a formal system of review and rating of individual or team performance.Performance management is an ongoing organizational process that is conducted to maximize the productivity of employees with the overall intention of improving the organizations effectiveness.The performance appraisal is a plosiveic event to reflect and evaluate past performance with the intent to identify strengths and weaknesses of an employees performance and to identify developmental goals.It is strategic in nature and involves either person and all HR processes in the organization. All are directly tied to achieving the organizations goals.A performance appraisal is just one part of a performance management system.The Importance of Performance ManagementThe employees are an integral and indispensable part of running a business smoothly and efficiently. Thats why, keeping in mind the crucial role of the employees, a recent trend known as Performance Management has come into practice. Using performance management, we can ensure that our employees not only fulfil their responsibilities, but do so to the best of their abilities and up to your expectations . Performance management allows us to tap the full potential of our staff. It can be described as a comprehensive process starting from monitor and developing the desired traits to rating their progress and rewarding them for their skills. I. Involve Employees in the Planning StageThe making of plans alone will not help us to run our business successfully. We must likewise focus on the appropriate ways to pulsate business tasks done. One way of doing this efficiently is to involve our employees in the planning process. This will not only boost their morale and confidence, but also help us avoid any communication gaps in the process. Additionally, it will also help in providing them with a clear picture of what we expect from them and what they need to accomplish.II. Monitoring the Progress of Our EmployeesJust as revision of business plans is sometimes necessary for the success of our business, measuring the performance of every employee is also important. This ensures that tasks are efficiently completed on time and on or under budget. It also points out to you any shortcomings of either our staff or business plans, and helps us to take the appropriate corrective actions.III. Ensuring All Around Development of EmployeesPerformance management gives us the tools to install the desired qualities in our employees in order to get the job done. Development is not limited to only individuals in our workplace, but also addresses the performance of the team as a whole. All around employee development not only ensures thepersonal and professional growth of our employees, but also the magnification and improvement of our business.IV. Evaluation of Individual PerformanceEvaluating and rating the performance of our employees on an individual basis is essential. This gives them a clear picture of where they presently stand, areas that they need to work on and what they are good at. This way, they can focus more on their weaknesses and work to strengthen those areas. We should make it company policy to issue performance reviews plot of land providing your employees with the feedback that they need to perform better at their jobs.V. Rewarding Our EmployeesRewarding and appreciating our employees efforts ensures that the level of their performance and consequently the performance of our business is not compromised. It ensures optimum productivity, Performance and utmost profitability. Rewarding our staff for a job well done not only enhance their performance but also serves as a tool to keep them motivated. Therefore, performance management is an effective system that allows us to achieve the financial goals of our small business. Methods of Performance AppraisalThere are a variety show of appraisal modes available to organizations. The method selected by the organization should fit well with the organizations goals and be appropriate to the job being appraised. Some organizations use different methods for different positions. Regardless of the system used, regular communication and feedback from managers are more important than the method used. Graphic rating scaleA pictorial rating scale is the most commonly used appraisal system. Evaluators record their judgments on a scale that includes about 57 categories. Categories are be by adjectives such as outstanding, meets expectations or needs improvement. This method is popular because it is easy to administer and can be quantified, if desired, by adding a numeric honor to each description.Ranking methodIn the ranking method, the evaluator places employees from a particular gathering in the order of overall performance, starting with the top instrumentwho is rated the highestand moving down to the poorest performer in the group who receives the lowest ranking. Paired comparison is a variation of the ranking method in which the performance of each employee is compared with every other employee. The comparison is often based on a single criterion, such as overall perform ance. The employee who receives the greatest number of favorable comparisons is stratified the highest. This can be difficult to administer if your work group consists of a large number of employees.Forced distribution methodThe forced distribution method requires the evaluator to assign individuals to a limited number of categories, much like a normal frequency distribution curve. A few individuals will get very high ratings and a few will get very low ratings, with the majority averaging in the center of the curve. Generally, those with very low ratings are clear to termination. As with the ranking method, this system requires the evaluator to place some employees at the bottom, even if their performance is acceptable, and some at the top, even if performance may rattling be less than outstanding. The system makes the erroneous assumption that there must be some outstanding workers and some poor workers, even when that may not be the case. Forced distribution is unpopular among managers because many believe it destroys teamwork and fosters cutthroat competition among employees.Critical incident methodThe critical incident method requires the evaluator to maintain records of employees favorable and unfavorable performances. These critical incidents become the basis for evaluation. The incident log must be maintained over the entire evaluation period to eliminate the problem of just evaluating an employees most recent Performance.Essay methodIn the essay method, the evaluator writes a brief narrative of the employees performance. The major criticism of this method is that it is verysubjective because the evaluation criteria left entirely to the discretion of the evaluator and the results are dependent on the writing skills of the evaluator. It can be difficult to compare the results of employee evaluations that use the essay method because there are no common criteria used for evaluation. parallel barsbehaviorally anchored rating scaleBARS is a behaviorally anchored rating scale that combines elements of a traditional rating scale and a critical incident method. Various performance levels are described on a scale, and the evaluator compares the employees performance to the levels described. The descriptions provided reduce the amount of judgment required of the evaluator and rely on the evaluators observations of the employees work behavior.MBOmanagement by objectivesManagement by objectives, or MBO, is a results-based system that relies on the manager and the employee to jointly agree on objectives, the attainment of which becomes the basis of evaluation for the next appraisal period.TCS- Tata Consultancy ServiceAbout The CompanyTata consultancy services limited (TCS) is the world-leading information technology consulting, services, and business process outsourcing organization that envisioned and pioneered the adoption of conciliatory global and pioneered the adoption of the flexible global business practices that today enable comp anies to operate more efficiently and produce more value. They are part of one of Asias largest conglomerates- the TATA Group- which, with its interests in Energy, Telecommunications, Financial Services, Chemicals, provides us with a grounded understanding of specific business challenges facing global companies. The role of HR assumes unthinkable proportions and is subject to large challenges. With this sensitive breed of IT professionals, how has TCS grown to and sustained at the number one position is a question which market watchers have asked themselves a thousand times. There is but one answer- passion for excellence in the workforce practices.TCS has developed an unbreakable bond with sound HRpractices in an environment that defines traditional roles and responsibilities. The TCS-HR group operates with technical experts to create a synergy which is enviable. The role of HR, which is that of a facilitator. So whether it is recruitment or even career development, HR is the cata lyst which initiates and institutionalizes processes. To manage all the functions for over 14000 employees is a difficult task but the smoothness of operations is intriguing. The HR structure, which allows flexibility and empowerment, is the solution.Performance Appraisal Criteria at TCSObjectiveData relating to performance assessment of employees are recorded, stored and used for different purposesMAIN PURPOSE OF PERFORMANCE APPRAISALGeneral ApplicationsSpecific purposesDevelopmental Uses denomination of individual needsPerformance feedbackDetermining Transfers and job assignmentsIdentification of individual strengths and development needs. Administrative UsesSalaryPromotionRetention or terminationRecognition of individual performanceLay-offsIdentification of poor performersOrganizational Maintenance/ ObjectivesHR planningDetermining organization training needsEvaluation of organizational gal achievementInformation for goal identificationEvaluation of HR systemsReinforcement of org anizational development needsDocumentationCriteria for validation researchDocumentation for HR decisionsHelping to meet lawful requirementsPerformance Appraisal and Competitive Advantages in TCSThe objectives of performance appraisal, point out the purpose which such an exercise seeks to meet. What needs emphasis is that performance evaluation contributes to TCSs competitive strength. Besides encouraging high levels of performance, the evaluation system helps identify employees with potential, reward performance equitable and determine employees need for training.Specifically, performance appraisal has helped the TCS gain competitive edge in the following ways Improving performanceMaking correct decisionsEnsuring legal complianceMinimizing dissatis detailion and turnoverValues and doingsStrategy and behaviourTCS conducts two appraisals1. At the end of the year2. At the end of a projectAppraisals are based on Balanced Scorecard, which tracks the achievement of employees on the basi s of targets at four levelsBased on their individual achievements, employees are rated on a scale of one to five (five = superstar). If employees get a low rating (less than two) in two consecutive appraisals, the warning flags go up. If the poor performer continues getting low scores then the release option may be considered. Over the years TCS has found the pattern that leads to the maximum decline in performance. If employees work for more than two years onthe same project, typically either their performance dips or they leave the organisation. To avoid that, TCS shuffles its employees between projects every 18 months or so. Performance drops if motivation drops the employee satisfaction depends upon the fact whether his performance is being appreciated and recognized. TCSs performance management system has metamorphosed into one that emphasizes objectivity and a system that mandates performance evaluation against pre-determined criteria.What Deserve modified mention is the act ive participation of the senior management in the determination of guidelines for the Performance Appraisal Process. The process ensure buy in of the employees since the guidelines for the rating system and its conversion into money terms is not unilaterally decided by HR but is a consensus of a cross functional team with image from all levels. TCSs performance appraisal system is supported by an online system called the Human Resource management system an Oracle Developer 2000 based tool. An employees performance history at the click of a button and this accurately maintained for 14000 employees. Right from his entry, an employee in TCS get formal performance feedback once every 2 months till such time that he is confirmed after which the performance feedback is provided twice every year on a formal basis. TCS thus far widely encourages informal feedback discussions between Project leader & Team Members and this concept have found an overwhelming appeal among the heap.Recognitio n at TCSGuaranteed high motivation levels at TCS through competitive compensation packages, stimulating job content, outstanding development opportunities, and not the least, an innovative reference mechanism.The various ways in which TCS recognizes its people are listed below Project milestone parties to encourage efficient execution of projects. Recognition of star performers / high fliers to recognize outstanding talent. Nomination to covet training programmes to encourage self-development. Best project award to promote a spirit of internal competition across work groups and to foster teamwork. Best PIP award to encourage innovation and continuous improvement. Best auditor award to acknowledge participation in critical support roles Spot awards to ensurereal-time recognition of employees. Recommendations for late technology assignments / key positions to ensure career progression and development of employees full potential. Performance-based annual increments to recogn ize high performers Early confirmations for new employees to reward high-performing new employees Long-service awards to build organisational loyaltyEVA-based increments to ensure performance-based salaries. On-the-spot recognition to guarantee immediate recognition of good performance.