Performance Appraisal

PERFORMANCE APPRAISAL IN
TCS
INTRODUCTION
• Tata Consultancy Services Limited (TCS) is an Indian multinational
information technology ( IT) service, consulting company Headquarter
in Mumbai, Maharashtra
• It is part of the Tata Group and operates in 46 countries.
• TCS is one of the largest Indian companies by market capitalization.
• TCS is now placed among the most valuable IT services brands
worldwide.
• It is the world's 2nd largest IT services provider.
• As of 2017, it is ranked 10th on the Fortune India 500 list.
• In April 2018, TCS became the first Indian IT company to breach $100
billion market capitalization
• second Indian company ever (after Reliance Industries achieved it in
2007)after its m-cap stood at Rs 6,79,332.81 crore ($102.6 billion)
in Bombay Stock Exchange.
OBJECTIVES OF PERFORMANCE APPRAISAL
SYSTEM IN TCS
• To effect promotions based on competence and
performance.
• To confirm the services of probationary employees upon
their completing the probationary period satisfactorily.
• To assess the training and development needs of
employees
• To decide upon a pay role system.
• To let the employees know where they stand in so far as
their performance is concerned To improve
communication.
• Performance appraisal plays a channel between the
superior and the subordinate, and improves
understanding of personal goals and concerns.
PERFORMANCE APPRAISAL SYSTEM IN TCS
Bell Curve Model
It is a forced ranking system

Through this system, the organization
tries to segregate the best employee
among them.
DISADVANTAGE OF BELL CURVE
• In the Bell Curve appraisal system, managers rank their employees
from best to worst to determine pay as well as to fire someone.
• In this extreme system, 20% of the employees come under ‘Top
Performers’ list, 70% of the workers will be in the average performers
and 10% will be put in the non-performers.
• The top performers will get all the additional benefits including bonus
and other perks.
• Whereas average performers will get a chance to figure out ways to
be one among the top performers.
• But those in the bottom 10% hold less chance of continuing unless
they show a remarkable improvement in their performance.
Balance Score Card
 strategic performance measurement model
 Used to translate an organization’s mission and vision into actual
(operational) actions (strategic planning )
Oracle Developer 2000 based tool
It is an online system individual right from his biographical details to

his projects performance.
An employee's performance history at the click of a button.
Right from his entry, an employee in TCS get formal performance
feedback once very two months till such time that he is confirmed
after which the performance feedback is provided twice every year.
TCS however widely encourages informal feedback.
https://newsable.asianetnews.com/money/five-things-you-should-know-about-tcs-new-appraisal-system
on the basis of this link
TCS IS CHANGING APPRAISAL SYSTEM
1) No more half-yearly appraisals

Employees will not have half-yearly assessments, they will be assessed after every project. The
projects could last from months to a year, but targeted workers will be considered for appraisal after
the completion of their project work.
2) Separate appraisal systems for IT and BPO employees
Sources said TCS was building a technology platform to manage the regular feedback process.
Henceforth, those working in the IT sector will be considered for appraisal according to their
performance in the particular project, whereas work of the BPO employees will be judged on the basis
of regular feedback.
3) Stage-wise timelines discontinued
The TCS had discontinued the stage-wise timelines for appraisal process last year itself, to start the
continuous feedback process. This will be encouraged more and will be useful for those working in the
BPO sections of the company.
4) TCS is the fourth company to build new platform
Before TCS, HCL Technologies had changed its platform of appraisal and had called it iSuccess. The
Wipro had called their new platform Performance Next and Infosys launched iCOunt Platform, this
year. Let us wait and see what the TCS is going to name its new appraisal platform.
TCS conducts two appraisals:
- At the end of the year

- At the end of a project
Appraisals are based on Balanced Scorecard, which tracks the achievement of employees on the basis of
targets at four levels;
1 ) Financial perspective - contribution in terms of revenue growth, cost reduction and improved asset
utilization.
2 ) Customer perspective - Looks at the differentiating value proposition offered by the employee.
Customer.
3 ) Internal perspective -Refers to the employee’s contribution in creating and sustaining value.
4 ) Learning and growth - are self-explanatory.
“If the poor performer continues getting low scores then the exit option may be considered”
OUTCOMES OF PERFORMANCE APPRAISAL
SYSTEM
• 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.
• To encourage innovation and continuous improvement.
• Best auditor award — to acknowledge participation in critical support roles.
• Spot awards — to ensure real-time recognition of employees.
• Recommendations for new technology assignments / key positions — to ensure career
progression and development of employees' full potential.
• Performance-based annual increments — to recognize high performers.
• Early confirmations for new employees — to reward high-performing new employees.

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What are the objectives of the performance appraisal system in TCS?

What model does TCS use for performance appraisal and what are its disadvantages?

PERFORMANCE APPRAISAL IN

It is a forced ranking system

It is an online system individual right from his biographical details to

TCS IS CHANGING APPRAISAL SYSTEM

1) No more half-yearly appraisals

- At the end of the year

4 ) Learning and growth - are self-explanatory.

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