A

PROJECT REPORT ON
STUDY ON PERFORMANCE APPRAISAL OF A EMPLOYEES AT
TCS
SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULFILLMENT OF

BACHELOR IN BUSINESS ADMINISTRATION

UNDER GUIDANCE OF

PROF. SARITA KUMARI

SUBMITTED BY –
VAISHNAVI MALUSARE
BBA- III YEAR (HR) (V SEM) 2024

SIDDHANT COLLEGE OF MANAGEMENT STUDIES

PUNE 412109
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 ACKNOWLEDGENT

I am using this opportunity to express my gratitude to everyone who supported me

throughout the course of bachelors in business administration project. I am thankful
for their aspiring guidance, invaluably constructive criticism and friendly advice
during the project work. I am sincerely grateful to them for sharing their truthful and
illuminating views on a number of issues related to the project.
I express my warm thank to Prof. Sarita Kumari for her support and guidance at
Tata Consultancy Services.
.

Thank you so much

Your sincerely,

Vaishnavi Sunil Malusare

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 DECLARATION

I hereby declare that the project work entitled “a study on Performance Appraisal”
submitted to SAVITRIBAI PHULE PUNE UNIVERSITY, PUNE, is a record of
an original work done by me under the guidance of Prof. Sarita Kumari this
project work is submitted in partial fulfillment of requirements for the award of the
degree of bachelors in business administration.

It is hereby declared that all the facts and figures included in the project is a result
lf my own research and investigations including formal analysis of the entire
project work. The results embodied in this thesis have not been submitted to any
other university or institute for the award of any degree.

Date: Signature of Student

Place: Sudumbre Vaishnavi Sunil Malusare

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 INDEX

Sr. Page
No
Topics No
5
1. EXECUTIVE SUMMARY

6
2 OBJECTIVES AND SCOPE OF PROJECT

8
3 COMPANY PROFILE

14
4 PRODUCT PROFILE

18
5 THEORETICAL BACKGROUD

21
6 RESEARCH METHODOLOGY
24
7 DATA ANALYSIS AND INTERPRETATION

34
8 OBSERVATION AND FINDINGS

35
9 LIMITATIONS

36
10 CONCLUSION

37
11 RECOMMENDATIONS

38
12 BIBLIOGRAPHY

39

13 ANNEXURE / QUESTIONNAIRE

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 EXECUTIVE SUMMARY

Human Resource Management focuses on the most key element of the organization. There are several
resources needed by the organization but most effective one is the human resources. Human resource
functions are broadly recognized by all organization, among these important function’s performance
appraisal is a remarkable one. The report of the internship has been titling das; “
A Study on Employees’ Performance Appraisal of TCS”.
The study basically based on the study overall employee’s performance appraisal.
Tata Consultancy Services Limited (TCS) is the world-leading information technology consulting,
services, and business process outsourcing organization that envisioned and pioneered the adoption of
the flexible global business practices that today enable companies to operate more efficiently and
produce more value. They commenced operations in 1968, when the IT services industry didn’t exist
as it does to day. Now, with a presence in 34 countries across 6 continents, & a comprehensive range
of services across diverse industries, they are one of the world's leading Information Technology
companies. Seven of the Fortune Top 10 companies are among our valued customers. They are part of
one of Asia's largest conglomerates - the TATA Group - which, with it interests in Energy,
Telecommunications, Financial Services, Chemicals, Engineering &Materials, provides us with a
grounded understanding of specific business challenges facing global companies. As we move into an
era of e-business where IT professionals will interview employers so stringently that 40 percent
employers will miss recruitment goals (source: Gartner Group), the role of HR assumes unthinkable
proportions and is subject to mammoth 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 HR practices in an environment that
defies traditional roles and responsibilities. The TCS-HR group operates with technical experts to
create a synergy which is enviable. Figure 1 illustrates the role of HR, which evidently is that of a
facilitator. So, whether it is recruitment or even career development, HR is the catalyst which initiates
and institutionalizes processes. To manage all the functions for over 14000 employees is a Herculean
task but the smoothness of operations is intriguing. The HR structure, which allows flexibility and
empowerment, is the solution.

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 OBJECTIVES AND SCOPE OF THE PROJECT

 OBJECTIVES

• To study the need and importance of “Performance Appraisal”.

•
To portray the profile of “TCS”.

• To study the performance appraisal implementation in TCS.

• To make data analysis and interpretation based on the perception of the employee in the

organization.

• To summarize and find certain suggestions for the impotent of Performance Appraisal system in the
company.

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 Scope
The scope of performance management and appraisal should include the following:

• Provide employees with a better understanding of their role and responsibilities.

• Increase confidence through recognizing strengths while identifying training needs to

improve weaknesses.

• Improve working relationships and communication between supervisors and

subordinates.

• Increase commitment to organizational goals; develop employees into future

supervisors.

• Assist in personnel decisions such as promotions or allocating rewards.

• Allow time for self-reflection, self-appraisal and personal goal setting.

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 COMPANY PROFILE

TATA CONSULTANCY SERVICES

Rajiv Gandhi IT Park (Phase 3),

Hinjewadi, Pune 411057 .

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COMPANY PROFILE OF TCS
Tata Consultancy Services Limited (TCS) is engaged in providing information technology
(IT) services, digital and business solutions. The Company's segments include banking,
finance and insurance services (BFSI); manufacturing; retail and consumer packaged
goods (CPG); telecom, media and entertainment, and others, such as energy, resources and
utilities, hi -tech, life science and healthcare, s -Governance, travel, transportation and
hospitality, and other product.
Area of Business

Services:

TCS helps clients optimize business processes for maximum efficiency and galvanize their
IT infrastructure to be both resilient and robust. TCS offers the following solutions:

Assurance services.
BI and performance management.
Business process services.
Consulting.
Digital enterprise. Eco-sustainability services.
Industries:

TCS has the depth and breadth of experience and expertise that businesses need to achieve
business goals and succeed amidst fierce competition.

Some of the industries it serves are:

Banking and financial services.

Energy - oil and gas, oil field services and renewable.
Government.
Healthcare.
High tech.
Insurance.

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 PRODUT PROFILE

Products and services offered by the Company:

Technology Products:

TCS Digital Certification Services / Public Key Infrastructure (PKI)

Suite TCS Tax Mantra Integrated Tax Solution

TCS Data Cleansing Framework

TCS Business Rules Engine

TCS Experience Based KM (Knowledge Management)

Other Products:

TCS Clin–e2e

TCS Hospital Management Solution

TCS Silicone Ambulatory ECG Device and Solution

TCS Enterprise Integration and Control Environment Solution/ Energy and Utilities

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 Services:

IT Services:

Custom Application Development

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

Infrastructure Services:

Infrastructure Readiness Assessment

IT Service Desk
Data Center Management End
User Computing Services
Database Services
Engineering & Industrial Services:

New Product Development Solutions

Product Lifecycle Management Plant
Solutions & Services Geospatial
Technology Solutions

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 PRODUCTS AND SERVICES OFFERED BY THE COMPANY:

FINANCIAL SERVICES:

The Financial Services segment includes customers providing

banking/transaction processing, capital markets and insurance services. The
Company serves traditional retail and commercial banks, diversified financial
enterprises, broker-dealers, asset management firms, depositories, clearing
organizations and exchanges.

IT SERVICES:
The Company focuses on such aspects of its customers' operations as business
acquisition, policy administration, claims processing, management reporting, regulatory
compliance and reinsurance.
HEALTHCARE SERVICES:
The Healthcare segment includes healthcare providers and payers, as well as life
sciences customers, including pharmaceutical, biotech and medical device companies.
The Company serves global healthcare organizations, including healthcare payers,
providers and pharmacy benefit managers. The Company serves pharmaceutical,
biotech, and medical device companies, as well as providers of generic, animal health
and consumer health products.
INFRASTRUCTURE SERVICES:

The Manufacturing/Retail/Logistics segment includes manufacturers, retailers, travel

and other hospitality customers, as well as customers providing logistics services. The
Company's customers in this sector include manufacturers of automotive and industrial
products as well as processors of natural resources, chemicals and raw materials.

OTHER SERVICES:

The Company serves a range of retailers and distributors, including

Super markets, specialty premium retailers, department stores and large mass-
merchandise discounters. It also serves the travel and hospitality industry,
including airlines, hotels, restaurants, online and retail travel, rental car
companies, global distribution systems and intermediaries and real estate
companies

TECHNOLOGICAL PRODUCTS:

The segment includes its information, media and entertainment services,

communications and high technology operating segments. The Company serves
communications (cable, wireless and wireline) service providers, equipment vendors,
and software vendors. It serves media and entertainment companies, including
information service providers,publishers, broadcasters, and movie, music and video
game companies.

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 THEORETICAL BACKGROUND

A performance appraisal, also referred to as a performance review, performance evaluation, (career)

development discussion, or employee appraisal, sometimes shortened to "PA",is a periodic and
systematic process whereby the job performance of an employee is documented and evaluated. This
is done after employees are trained about work and settle into their jobs. Performance appraisals are
a part of career development and consist of regular reviews of employee performance within
organizations.

Performance appraisals are most often conducted by an employee's immediate manager or line
manager. While extensively practiced, annual performance reviews have also been criticized as
providing feedback too infrequently to be useful, and some critics argue that performance reviews
in general do more harm than good. It is an element of the principal-agent framework, that describes
the relationship of information between the employer and employee, and in this case the direct effect
and response received when a performance review is conducted.
A performance appraisal is a systematic, general and periodic process that assesses an individual
employee's job performance and productivity in relation to certain pre-established criteria and
organizational objectives. Other aspects of individual employees are considered as well, such as
organizational citizenship behavior, accomplishments, potential for future improvement, strengths
and weaknesses, etc.

To collect PA data, there are three main methods: objective production, personnel, and judgmental
evaluation. Judgmental evaluations are the most commonly used with a large variety of evaluation
methods. Historically, PA has been conducted annually (long-cycle appraisals); however, many
companies are moving towards shorter cycles (every six months, every quarter), and some have
been moving into short-cycle (weekly, bi-weekly) PA. The interview could function as "providing
feedback to employees, counseling and developing employees, and conveying and discussing
compensation, job status, or disciplinary decisions".[10] PA is often included in performance
management systems. PA helps the subordinate answer two key questions: first, "What are your

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expectations of me?" second, "How am I doing to meet your expectations?"

Performance management systems are employed "to manage and align" all of an organization's
resources in order to achieve highest possible performance and to eliminate distractions procured
from individual agents that neglect the companies goals. "How performance is managed in an
organization determines to a large extent the success or failure of the organization. Therefore,
improving PA for everyone should be among the highest priorities of contemporary organizations".
Some applications of PA are compensation, performance improvement, promotions, termination,
test validation, and more. While there are many potential benefits of PA, there are also some
potential drawbacks. For example, PA can help facilitate management-employee communication;
however, PA may result in legal issues if not executed appropriately, as many employees tend to
be unsatisfied with the PA process, as well as, the misuse of PA's can incur apathy towards
organizational goals and values. PAs created in and determined as useful in the United States are
not necessarily able to be transferable cross-culturally.

A performance appraisal is a regularly scheduled formal process evaluating an employee’s overall

performance and contribution to the company with the goal of improving that performance. It can
also be referred to as the performance review, performance evaluation, or employee appraisal.
Performance appraisals are a platform to provide feedback, offer a formal moment in time to
evaluate job performance, and help distribute raises and bonuses among employees. Usually, this
happens once or twice a year, taking place at the start of the year and around the half-year point.
These are formal sit-downs in which the direct manager or supervisor evaluates performance on
the main tasks and responsibilities of the employee.
HR is typically responsible for outlining the performance appraisal process, which is then executed
by managers. Employees’ active involvement creates the buy-in necessary to make the
improvements that the performance appraisal is set up for in the first place.
Identifying opportunities for improvement based on pre-determined goals and metrics is a key goal
of performance appraisals. For example, employees or departments might need specific training to
perform better.

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Types of Performance Appraisals
Performance appraisals can be broken down into four distinct significant types:

1. 360-Degree Appraisal
The manager gathers information on the employee’s performance, typically by questionnaire, from
supervisors, co-workers, group members, and self-assessment.

2. Negotiated Appraisal
This type of appraisal uses a mediator to help evaluate the employee’s performance, with a greater
emphasis on the better parts of the employee’s performance.

3. Peer Assessment
The team members, workgroup, and co-workers are responsible for rating the employee’s
performanc

4.Self-Assessment
The employees rate themselves in categories such as work behavior, attitude, and job performance.

Note that some organizations use several appraisal types during the same review. For instance, a
manager could consult with the employee’s peers and assign a self-assessment to the employee. It
doesn’t have to be a case of either/or.

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 RESEARCH METHODOLOGY

SOURCE OF DATA COLLECTION

primary data and secondary sources of data will be gathered for the research. Primary source of data
will be collected through the use of questionnaires and survey interviews.
The secondary sources of information were collected from past research work, books, journals, articles,
internet search, etc.

METHODS FOR COLLECTING PRIMARY DATA

In collecting data for the study, questionnaire and direct interview methods will be employed. The
questionnaire was used to ensure that only relevant questions were asked and also to ensure that the
questions were properly structured.

COLLECTION OF DATA
The questionnaire was the only tool used to collect data. Likert type (close ended) questionnaire was
employed to generate data. The importance of the use of close ended questions was to avoid delays in
responding to the questionnaire, thus enabling the respondents who had busy schedules to respond
quickly. Another reason for using close ended questions was that coding of close ended questions did
not take much time as compared to open ended questions/ and also for testing hypothesis.

SAMPLING
A sample of Fifty (50) respondents were drawn from employees

Convenience sampling technique has been used to derive data from different levels of employees

SAMPLING TECHNIQUE
Convenient Sampling Technique.

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 It is the scientific way to resolve the research problem. This includes discovering all possible means of
solving the research problem; study the different methods one by one and arriving at the best conceivable
method considering the resources at the clearance of the researcher.

METHODS OF DATA COLLECTION:

Primary data:
The primary data is composed by a questionnaire in OFMK distributed among the employees to gather
information.
Primary data was collected through the company interviews and some discussion with the HR
manager and employee which some special company and concerned preplanned structured
questionnaire was used to collect the require data. The concerned manager peoples which was
important forms project study point if view were student, company employee, employer, manager
etc.
Secondary data:
The secondary data has been composed from
1. Reviews of books, Websites, Digital libraries, journals and online database.
2. The secondary data was obtained in the information and material that already exists which has
been collected and documented by others. Database has been the primary source of our findings
academic articles and books. The database has mainly used Google search engine. Where the most
common search words have been.” HR employee monitoring system”.

Research tools:
A prepared questionnaire has been set to get the connected information from the respondents. The
questionnaire covers of a change of questions obtainable to the respondents for their response. The
several

Types of questions are used in this survey are:

1. Closed ended questions

2. Multiple choice questions

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Sample size :50
1. Bars & charts
2. Percentage analysis

Statistical tools: Annova

Variables: Independent -Gender, age, education, Dependent - Factors.

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 DATA ANALYSIS AND INTERPRETATION

1. Do you think Performance Appraisal is essential for employees?

Necessity of Performance Appraisal

Interpretation:

From the above data, it's evident that maximum of respondents feel that performance
appraisal is essential in the organization

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2. Do you agree that the objectives of the appraisal system are clear to all employees?

25
3. Are you aware of the Dr. Reddy’s performance appraisal system for employees?

Awareness of performance appraisal system

26
4. Are you satisfied with existing system in Dr Reddy’s Laboratories?

Satisfaction with the system

27
5. Performance Appraisal system really assesses the performance of an employee. Do you agree?

Assessment of performance appraisal

6. On what basis periodicity of performance appraisal of employees should be?
7. Does the present performance appraisal of Dr. Reddy’s distinguish performers& non-performers?
8. Are the standards on the basis of which the performance appraisal is carried out communicated to
the employees beforehand?
9. Is there any scope for bias in the evaluation process due to personal acquaintances between the
appraisers and appraise?
10. Does the Management inform you about the performance appraisal at the beginning of the appraisal
period?
 OBSERVATION AND FINDINGS

1. Performance appraisal at TATA CONSULTANCY SERVICES is done annually.

2. Rating scales and Field review methods are the two performance appraisal methods
adopted by TCS.

3. For the above mentioned appraisal, a self appraisal form is given to the staff, so that they
fll it. Simultaneously a form is given to their colleagues to rate them. A rating is given to the
employee after taking inconsideration the self appraisal form as well as the rating given by the
staff members.

4. Promotions and incentives are given to an employee according to his or her performance
rating.

5. At TCS, majority of the staff submits all the information regardingappraisal well within
time to their supervisors.

6. All officers agree that performance appraisal system helps them top perform better.
 LIMITATIONS

As the study revolves around the performance appraisal of human resources aspects the overall
organization performance cannot be ascertained. In spite of giving honest and sincere efforts there are
several limitations, which are as follows:

1. The period of study is only for about 2 months, which is a major constraint.

2. The perception bias or attitude of the respondents may also act as hurdles to the study.

3. The study is only confined to performance appraisal.

4. The study cannot be oriented with all HRM practices followed by

5. TATA CONSULTANCY SERVICES Ltd. because of the paucity of time requirements.

6. The sample size taken for the research is small due to the constraint of time.

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 CONCLUSION

Performance appraisal is the methodical review of employees' performance and understanding of a

person's talents for future growth and development. It also evaluates individuals' prospects for
advancement. The primary goal of performance evaluation is to recognize and reward people that operate
effectively and honestly in the Organization. At the same time, it seeks to eliminate individuals who
could be more efficient and competent in carrying out their duties. Organizations may use the
performance assessment system not only to identify and grade people on performance levels but also to
deploy human resources wisely and efficiently and to build the needed capabilities in them.

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 RECOMMENDATIONS

1. Establish goals and desired outcomes for each subordinate

2. Setting performance standards for employees

3. Comparison of actual goals with goals attained by the employee

4. Establish new goals and new strategies for goals not achieved in previous year.

5. Transparent career planning for all employees.

6. Informal calling as and when they need.

7. Giving chance to employees in decision making.

8. Effective training and development programs should be held for employees.

9. Improve competency of the employees.

10. The company should concentrate more on individual development.

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 BIBLIOGRAPHY

BOOKS:

Bascal, Robert. Performance Management. (New York: McGraw-Hill, 1999).

DelPo Amy. The Performance Appraisal Handbook, Legal & Practical Rules for Managers. (Berkeley,
CA: Nolo, 2005).
Falcone, Paul. 101 Sample Write-Ups for Documenting Employee Performance Problems. (New York:
AMACOM, 1999).
Grote, Dick. The Complete Guide to Performance Appraisal. (New York: AMACOM, 1996).
Grote, Dick. The Performance Appraisal Question & Answer Book, A Survival Guide for Managers.
(New York: AMACOM, 2002).
Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisal and Coaching.
Richard Rudman, 2003, Performance Planning and Review.
Roger E. Herman, 1997, The Process of excelling, oak Hill press.
P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya
Publishing House

WEBSITES:

www.performance-appraisal.com/intro.html
www.google.com www.wikipedia.com
https://en.wikipedia.org/wiki/Performance_appraisal

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 ANNEXURE / QUESTIONNAIRE

1) Do you think Performance Appraisal is essential for employees?

2) Do you agree that the objectives of the appraisal system are clear to all employees?

3) Are you aware of the Dr. Reddy’s performance appraisal system for employees?

4) Are you satisfied with existing system in Dr Reddy’s Laboratories?

5) Performance Appraisal system really assesses the performance of an employee. Do you agree?

6) On what basis periodicity of performance appraisal of employees should be?

7) Does the present performance appraisal of Dr. Reddy’s distinguish performers & non-
performers?

8) Are the standards on the basis of which the performance appraisal is carried out communicated
to the employees beforehand?

9) Is there any scope for bias in the evaluation process due to personal acquaintances between the
appraisers and appraise?

10) Does the Management inform you about the performance appraisal at the beginning of the
appraisal period?

39