RESEARCH PROJECT REPORT

Submitted in partial fulfillment of Master of Business Administration

Session- 2021-2022

A Study of Performance Appraisal System in HCL

Internal Guide Submitted By

Faculty Name Name of the student

[Associate Professor] Roll No- 2003480700011

Dayanand Academy of Management Studies

Affiliated to Dr. APJAKTU

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 DECLARATION
I here by declare that this submission is my own work. It contains no material

previously published or written by another person, nor has this material to a

substantial extent been accepted for the award of any other degree or diploma of

the university or other institute of higher learning.

Name of the student

Roll No.
2003480700011

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 ACKNOWLEDGMENT

Research Project Report is the one of the important parts of MBA program, which has

helped me to gain a lot of experience, which will be beneficial in my succeeding

career.For this with an ineffable sense of gratitude I take this opportunity to express

my deep sense of indebtedness and gratitude to Dr. Sadhvi Mehrotra, Director,

DAMS and, Mr. Amarendra Tiwari HOD, Department of Business Administration, , for

their encouragement, support and guidance in carrying out the project.

I am very much thankful to, My Project Guide “Faculty Name”, Associate Professor

for his interest, constructive criticism, persistent encouragement and untiringGuidance

throughout the development of the project. It has been my great privilege to work

under his/her inspiring guidance.

I am also thankful to my Parents and my friends for their indelible Co-operation for

achieving the Goal of this study.

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 EXECUTIVE SUMMARY

The report aims to study and analyze Performance Appraisal components and their

usage in HCL Technologies. The study entailed detailed examination of the methods

to measure and enhance performance appraisal system against its objectives.

Exploratoryresearch followed by descriptive research has been used in the study. As it

is inferred that Performance appraisals system is important for any organization, the

organizations must invest in specific technology oriented products and services,

software and hardware to improve the performance. The companies must identify and

develop unique retention strategies to retain the employees. Retention and innovation

strategies are used to improve the performance of employees, so the focus must be

directed towards improving the Performance appraisal system.

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 TABLE OF CONTENT

S. No. TIT PAG

LE E
NO
.
1 CHAPTER 1: INTRODUCTION 1

1.1 APPROACHES TO PERFORMANCE APPRAISAL 1

1.2 METHODS/ TECHNIQUES OF APPRAISAL 3

1.3 PROBLEMS WITH APPRAISAL METHODS 9

1.4 FACTORS AFFECTING THE APPRAISAL 11

1.5 ESSENTIALS OF A GOOD APPRAISAL SYSTEM 13

1.6 ETHICS OF APPRAISAL 15

2 CHAPTER 2: INDUSTRY PROFILE 18

2.1 BUSINESS STRATEGY OF HCL 21

3 CHAPTER 3: LITERATURE REVIEW 28

4 CHAPTER 4:RESEARCH METHODOLOGY 47

4.1 OBJECTIVES OF THE STUDY 48

4.2 SCOPE OF THE STUDY 49

4.3 RESEARCH DESIGN 50

4.4 DATA SOURCES 53

5 CHAPTER 5: FINDINGS 56

6 CHAPTER 6:CONCLUSION &RECOMMENDATIONS 58

7 CHAPTER 7: MAJOR CHALLENGES/LIMITATIONS 61

BIBLIOGRAPHY

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 CHAPTER 1
INTRODUCTION

vi

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 INTRODUCTION

APPROACHES TO PERFORMANCE APPRAISAL

Generally speaking, three approaches are used in conducting performance

appraisal.These are:

1. The goal or objective approach- Theoretically, this approach is the simplest and

themost satisfying. When there is a goal for the manager- an objective, task, norm or

targetinmeasurable or verifiable form, the appraisal process is simplified to a

quantitativecomparison of the achievement of the goal or objective. Basically, under

this system,specific objectives are established for each position and they are

appraisedover a specificperiod of time.

2. The trait or traditional approach- The trait or traditional approach tends to

appraisepeople on personality rather than on performance. The logic behind this

approach is theassumption that there are certain qualities, traits etc. present in

everyone- some of themare natural, others acquired and cultivated over a period of

time. The possession of thesetraits in varying measures supplies the basis for

appraisal. Hence, the scope was limitedonly to the extent of traits and personality in

this approach.

3. The functional approach- This approach to appraisal is based on the thesis that an

employer must succeed as an officer or manager. He must be judged by how

muchandhow well he performs the functions of his post- planning, organizing,

staffing,directingand controlling. A weightage is decided for the several functions

and theemployer’sscore is recorded against each. The total score gives an index of his
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rating. Apart from the above-mentioned approaches, there are two approaches that

arecollectively known as composite approaches.

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These are:

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(a) The trait-cum-goal approach

(b) The goal-cum-functional approach

These approaches have the combined features of any two approaches. The principle is

that the goal has to be reached but through the possession and practice of certain

essentialtraits/qualities and functions.

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 METHODS/ TECHNIQUES OF APPRAISAL

Several methods and techniques are available for measurement of the performance of

anemployee. The methods & scales vary for many reasons:

1. They differ in the sources of traits or qualities to be appraised.

2. They differ because of the different kinds of workers who are being rated.

3. It may be because of the degree of precision attempted in an evaluation

maybedifferent.

4. They may differ because of the methods used to obtain weightings for various traits.

There is much argument on the best method to evaluate performance. Different

authorshave suggested different approaches. For example, Rock & Lewis

classification;classification by Robbins; Strauss & Sayles classification system etc.

The most widely used categorization is given by Strauss & Sayles. They have

classifiedperformance appraisal methods into traditional and newer or modern

methods.

The traditional methods lay emphasis on the rating of the individual’s personality

traitssuch as initiative, dependability, drive, responsibility, creativity, integrity,

leadershippotential, intelligence, judgment, organizing ability etc.

On the other hand, newer methods place more emphasis on the evaluation of

workresults, job achievements etc., than on personal traits.

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 TRADITIONAL METHODS

1. Straight Ranking Method- In this system, the rating of a man in a work group is

done against that of another. Persons are tested in order of merit and placed in a

simplegrouping. This is the simplest method of separating the most efficient from the

leastefficient. It is relatively easy to develop and use.

But the greatest limitation of this method is that, in practice it is very difficult to

comparea single individual with another. Secondly, the task of ranking individuals is

difficult when a large number of persons are rated.

2. Paired Comparison Method- By this technique, each person is compared with all

other employees to be evaluated. The evaluator then checks the person he or she

felthadbeen the better of the two on the criterion of over all ability to do the present

job.Thenumber of times a person has been preferred is tallied and the tally developed

is anindex of the performances. This method is not suitable for a large group.

3. Man-to-man Comparison Method- By this method certain factors are selected for

the purpose of analysis (e.g. leadership, dependability, initiative) and the rater designs

a scalefor each factor. Certain scores for each factor are awarded to the appraise. This

methodis used in job evaluation and is also known as the factor comparison method. It

is notmuch use, because the designing of scales is a complicated task.

4. Grading Method- Under this system, the rater considers certain features and

marksthem accordingly to a scale. The scale may be: A-outstanding, B-very good,

C-goodoraverage, D-fair, E-poor and F-very poor or hopeless. The actual performance

of an employee is then compared with these grade definitions and he is allotted the

gradewhichbest describes his performance.

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5. Graphic/ Linear Rating Scale- It is the oldest and most widely used performance

appraisal method. The rating can be a matrix of boxes or a bar graph where the

evaluatorchecks off a location relative to the rating. This method is easy to understand

and use.It permits a statistical tabulation of scores.

One serious disadvantage is that, often the rating clusters on the high side when

thismethod is used.

6. Forced Choice Description Method- It attempts to correct a rater’s tendency to

giveconsistently high or consistently low ratings to all employees. Under this method,

therating elements are several sets of phrases relating to job proficiency or personal

qualifications. The rater is asked to indicate which of the phrases is most and least

descriptive of the employee.

7. Forced Distribution Method- This system is used to eliminate or minimize rater’s

bias. A 5-point performance scale is used to rate the employees, without any

descriptivestatement. Employees are placed between the two extremes of ‘good’ and

‘bad’ jobperformances.

This method tends to eliminate or reduce bias. This method is highly simple and

veryeasy to apply in organizations.

8. Checklist Method- Under this method, the rater does not evaluate employee

performance, he supplies reports about it and the personnel department does the final

rating. A series of questions are presented concerning an employee’s behaviour. The

raterthen checks to indicate, if the answer to a question about an employee is

positiveornegative.

This method suffers from bias on the part of the rater because he can
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distinguishpositive& negative questions. This process can be very expensive & time
consuming. 5

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9. Free Essay Method- Under this method, the supervisor makes appraisal of an

employee in his own words and puts down his impressions about the employee.

Hetakesnote of a number of factors like relations with colleagues, general

organizing,planningability, job knowledge, potential, attitude, development needs for

future etc. There are no common criteria for evaluation. This system requires

considerable timeandthought from the appraiser.

10. Critical Incident Technique- This system attempts to measure a worker’s

performance in terms of certain ‘events’ or ‘episodes’ that occur in the performance

ofthejob. These events are known as critical incidents. The collected incidents are

thenrankedin order of frequency and importance. This method has a limitation that

negativeincidents are generally more noticeable than positive incidents.

11. Group Appraisal Method- Under this method, an appraisal group rates

employees,consisting of supervisors who have some knowledge of their performance.

The groupthen discusses the standards of performance for that job, the actual

performance of thejobholder, and the causes of their particular level of performance

and offers suggestionsfor future improvement, if any. This method is very time

consuming.

12. Field Review Method- Under this method, a trainer employee from the personnel

department interviews the supervisors to evaluate his subordinates. The supervisor is

required to give his opinion about the progress of his subordinates, the level of the

performance of each subordinate, his weaknesses, good points, ability etc.The

successof this system depends upon the competence of the interviewer. One defect

isthat itkeeps two management representatives busy with the appraisal.

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 MODERN METHODS

1. Appraisal by Results/ Management By Objectives (MBO)-Management by

objectives can be described as “a process whereby the superior and subordinate

managersof an organization jointly identify its common goals, define each

individual’smajor areasof responsibility and contributions of each of its members.”

It strongly reinforces the importance of allowing the subordinate to participate

actively inthe decisions that affect him directly. Subordinates become involved in

planning theirown careers. MBO is result-oriented. MBO helps in increasing

employee motivation. ButMBO program takes a great deal of time, energy and form.

There is sometimes a “tug ofwar” in which the subordinate tries to set the lowest target

possibleand the supervisor thehighest.

2. Assessment Center Method- Under this method, many evaluators join together to

judge employee performance in several situations with the use of a variety of criteria.

Assessments are made to determine employee potential for promotion. The

assessmentcenters generally measure interpersonal skills and other aspects such

as:organizing andplanning, getting along with others, quality of thinking, resistance

tostress, motivation towork etc.

3. 360 Degree Performance Appraisal- Some organizations have expanded the idea

of upward feedback into what they call 360 degree feedback. Performance

information iscollected “all round” an employee. From his supervisors, subordinates

peers and internal and external customers. The feedback is generally used for training

anddevelopment rather than for pay increase.

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4. Human Asset Accounting Method- The human asset accounting method refers to

activity devoted to attaching money estimates to the value of a firm’s internal human

organization and its external customer goodwill. If able, well-trained personnel

leaveafirm, the human organization is worthless; if they join it, its human assets are

increase.This method is not yet very popular.

5. Behaviorally Anchored Rating Scales (BARS)-This is a new appraisal technique.

Itprovides better, more equitable appraisals as compared to other techniques. Since

BARSis done by persons who are expert in the technique, the results are sufficiently

accurate.The technique is not biased by the experience and evaluation of the rater.

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 PROBLEMS WITH APPRAISAL METHODS

A performance appraisal contains three steps - defining the job, appraising

performanceand providing feedback. Some appraisals fail because subordinates are

nottold ahead oftime exactly what is expected of them in terms of good performance.

Others fail becauseof problem with the form or procedure used to actually appraise the

performance. Stillother problems arise during the interview-feedback session, which

include arguing andpoor communications.

Problems can occur at any stage in the evaluation process. Some of the pitfalls to

avoidinperformance appraisal are: -

1. Unclear performance standards: Without standards, there can be no objective

evaluation of results, only a subjective guess or feeling about performance. Standards

should be established by analyzing the job output, to ensure that standards are

jobrelated.

Those standards that are reasonable, but challenging have the most potential to

motivate.

2. Use of abstract word: Problems of evaluation standards might arise because of the

use of very common words for grading, viz. good, adequate, satisfactory and

excellent,which mean differently to different evaluators.

3. Rate errors: Rate errors include rates bias or prejudice, halo effect, constant

error,central tendency, and fear of confrontation etc.

4. Poor feedback to employees: Standards and/or ratings must be communicated to

theemployee in order to for the performance evaluation to be effective.

5. Negative communication: The evaluation process is hindered by communication

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ofnegative attitudes, such as inflexibility, defensiveness etc.
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6. Failure to apply evaluation data: Failure to use evaluations in personnel

decisionmaking and personnel development contradicts the primary purpose of

performance evaluations. The use and analysis of multiple criteria as well as the

frequency of evaluation also present problems.

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 FACTORS AFFECTING THE APPRAISAL

A well-designed performance appraisal system might fail to bring about the desired

results if the appraisers are not properly trained. The appraisers or raters often

sufferfromthe following kinds of errors or weaknesses:

1. Halo error- It occurs when the rater allows one aspect of a man’s character or

performance to influence his entire evaluation. In other words, a supervisor’s rating

ofasubordinate on one trait, biases the rating of that person on other traits.

Being aware of this problem is a major step toward avoiding it. One way of

minimizing the effect of halo error is to have the supervisor judge all of his

subordinates on a singlefactor or trait, before going on to next. In this manner, he can

consider all of the men,relative to a standard or to each other, on each trait.

2. Central tendency- It is perhaps the most commonly found error in performance

appraisal. This error occurs when the rater is in doubt about the subordinates, or has

inadequate information about them, or is giving less attention and effort to the rating

process. So he may play it safe by neither condemning nor praising the

subordinatesandmay rate them ‘averages’. Such a restriction can distort the

evaluations, makingthem lessuseful for promotion, salary, or counseling purposes.

Ranking employeesinstead of usinga graphic rating scale can avoid this central

tendency problem.

3. Leniency or strictness- Some supervisors have a tendency to be easy raters and

someothers, to be harsh in their ratings. Lenient or easy raters assign consistently high

valuesor scores to their subordinates and strict or harsh raters give consistently low

ratings.Strictness/leniency is not a very major problem.

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4. Personal bias- Evaluator’s bias toward some employees can influence their
evaluation.An effective training of the eva1l1uator can remove this bias. Mode of

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evaluations andpromotions should be examined by managers, to check a

possiblediscrimination at thetime of evaluation and make amends to reduce this bias.

5. Recent Behavior Bias– Often some raters value person’s on the basis of their

performance in recent few weeks; average constant behavior is not checked. Some

employees being aware of this tendency show better results when they feel that they

arebeing observed and the report of their performance is to be complied soon.

Such appraisal problems can be avoided by following some simple yet

effectiveguidelines.

There are at least three ways to minimize the impact of appraisal problems:

First, be sure to be familiar with the problem. Understanding the problem can help

toavoid it.

Second, choose the right appraisal tool. Each tool such as the graphic rating scale

orcritical incident method has its own advantage and disadvantages.

Third, training supervisors to eliminating errors such as halo, leniency, and

centraltendency can help them avoid these problems.

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 ESSENTIALS OF A GOOD APPRAISAL SYSTEM

A program of performance appraisal must consider the following essential points for

ittobe effective:

1. It must be easily understandable: If the system is too complex or too

timeconsuming,it may be anchored to the ground by its own weight of complicated

forms which nobody but the experts understand.

2. The appraisers should be given training beforehand:Supervisors

responsibleforperformance appraisal should be well trained in the art and science of

performance appraisal to ensure uniformity, consistency and reliability.

3. It must have the support of all people who administer it: If the line people think

it is too theoretical, too ambitious, and too unrealistic or that themanagement has

imposed it on them, they will dislike it. Similarly, if they feel that theirrole is not very

important they will not take the system seriously.

4. The system should be sufficiently grounded in the requirements of the

Organization: It should reflect the value system of the organization. In fact, it

shouldtell the employees what set of activities or what qualities are considered

desirable bythe organization. As such, it should have linkage with the job description.

5. The system should be both valid and reliable: The validity of ratings is the

degreeto which they are truly indicative of the merit of the employees. Both validity

and reliability result from objectivity. The appraisal systems of many organizations

lack this, without taking into account their merit. This produces outstanding

performers butnot outstanding performance and raises doubts about the validity of the

system.
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6. The system should have built-in incentive: A reward should follow satisfactory

performance. This raises the morale of the employees and in turn results in

improvement in performance.

7. The system should be open and participative: It should involve employees in

theGoal-setting process. This helps in planning performance better.

8. The system should focus more on the development and growth of employees:

Generating data for administrative decision-making relating to promotions,

incrementsetc. It must help in identifying employees’ strengths and weaknesses and

indicate corrective actions.

9. The system should be periodically evaluated to be sure that it is continuing to

meet its goals: This will check the danger of the criteria of appraisal

becomingsubjective rather than the objective. Furthermore, the system may become

rigid in atangle of rules and procedures, many of which are no longer useful.

10. There should be provision for appeals:The employees should have the right

toappeal against appraisals to ensure confidence of the employees and their

association/unions. The employees should be given an opportunity to express their

feelings on the performance reports.

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 ETHICS OF APPRAISAL

In performance appraisal, the ethics of appraisal should get due consideration failing

which many organizational problems may crop up and the very purpose of

appraisalmaybe defeated. The essence of the appraisal is that one performance is

makingjudgments about certain aspects of another. Although he is not making a

totaljudgement of the other person’s worth, but it is true that he is judging his

recent orfuture usefulness to a job or an organization. Therefore, the appraisers should

approachemployee appraisal as athoughtful, serious matter for which they are

accountable. Inthis regard, managers need to apply a few simple rules, which will

contribute to theirethical handling of theappraisal situations.

The essential components of an effective performance appraisal are as follows:

1. Determination of purpose: The objective of the appraisal program may be

weatherto appraise the actual performance of individuals on their present jobs or to

determine the potential of individuals to do higher jobs or both. Sometimes

performance appraisal programs are associated with objectives like training and

development, transfer and promotion, increase in pay, etc.

2. Selection and training of appraiser: In order to avoid subjectivity in appraisal, it

is advisable to give sufficient training to the appraiser. It is also suggested that two

persons should appraise the performance of one man independently, in order to have

objectiveresults.

3. Establishing standards of performance: The standards of performance should be

laid down in clearly and communicated to the subordinates well in advance. This will

help the subordinates in understanding the expectations of the management.

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4. Frequency of appraisal: The frequency of appraisal should be determined by
theobjective and scope of performance ap1p5raisal.

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5. Preparation of forms: Suitable forms should be designed to help the appraisers in

their work. The form should be related to the job and the contents and design of

theforms should reflect the objectives of the performance appraisal programs.

6. Conveying of results:The results of the appraisal whether positive or negative,

should be conveyed to the employees in a considerate manner. Also, certain steps

should be taken based on the findings of the evaluation, like conducting trainings or

providing counseling, for the development of the employees etc.

To sum up, performance appraisal should be an objective assessment, balanced

onjudgments and unbiased evaluation on the job of any performer by his superior.

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 CHAPTER 2
INDUSTRY PROFILE

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 INDUSTRY PROFILE

At HCL, people are not just employees but family. So, like an important member of

the family should, you get endless freedom to experiment, unlimited empowerment

toexecute your dreams and the rare opportunity to be an entrepreneur.

HCL Technologies is an Indian multinational information technology (IT) services and

consulting company headquartered in Noida, Uttar Pradesh, India. It is a subsidiary of

HCL Enterprise. Originally a research and development division of HCL, it emerged

as an independent company in 1991 when HCL entered into the software services

business. The company has offices in 50 countries including United Kingdom, United

States, France, and Germany with a worldwide network of R&D, "innovation labs"

and "delivery centers", over 187,000 employees and its customers include 250 of the

Fortune 500 and 650 of the Global 2,000 companies.

It operates across sectors including aerospace and defense, automotive, banking,

capitalmarkets, chemical and process industries, energy and utilities, healthcare, hi-

tech, industrial manufacturing, consumer goods, insurance, life sciences,

manufacturing, media and entertainment, mining and natural resources, oil and gas,
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retail, telecom, andtravel, transportation, logistics & hospitality.
19
HCL Technologies is on theForbes Global 2000list. It is among the top 20 largest

publicly traded companies in India and as of February 2022 HCL Technologies has a

market cap of $41.62 Billion. This makes HCL Technologies the world's 437th most

valuable company by market cap.

HCL Enterprise was founded in 1976.

The first three subsidiaries of parent HCL Enterprise were:

• HCL Technologies - originally HCL's R&D division, it emerged as a subsidiary

in 1991

• HCL Info systems

• HCL Healthcare

The company tried to stay focused on hardware but, via HCL Technologies, software

and services is a main focus.

HCL Technologies is a next-generation global technology company that helps

enterprises reimagine their businesses for the digital age. Our technology products and

services are built on four decades of innovation, with a world-renowned management

philosophy, a strong culture of invention and risk-taking, and a relentless focus on

customer relationships. HCL also takes pride in its many diversity, social

responsibility,sustainability, and education initiatives. Through its worldwide network

of R&D facilities and co-innovation labs, global delivery capabilities, and over

197,000+ ‘Ideapreneurs’ across 52 countries, HCL delivers holistic services across

industry verticals to leading enterprises, including 250 of the Fortune 500 and 650 of

the Global2000. 20
Enterprises across industries stand at an inflection point today. In order to thrive in the

digital age, technologies such as analytics, cloud, IoT, and automation occupy center

stage. In order to offer enterprises the maximum benefit of these technologies to

furthertheir business objectives.

HCL offers an integrated portfolio of products and services through three

business units. These are:

• IT and Business Services (ITBS),

• Engineering and R&D Services (ERS) and

• Products and Platforms (P&P).

ITBS enables global enterprises to transform their businesses via Digital Foundation,

our modernized infrastructure stack built around hybrid cloud, software-defined

networks, the digital workplace, and other elements; Digital Business, a combination

of our application services and consulting capabilities; and Digital Operations, a three-

pronged setup for modernized and efficient operations at enterprise level.

ERS offers engineering services and solutions in all aspects of product development

and platform engineering.

P&P, HCL provides modernized software products to global clients for their

technological and industry-specific requirements.

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 BUSINESS STRATEGY OF HCL

Mode 1-2-3

The growth blueprint for a sustainable, scalable and resilient digital enterprise

The holistic Mode 1-2-3 strategy forms the backbone of these three business units to

help enterprises navigate the digital age with ease. It is the core aspect of our ‘Digital

Enterprise 4.0’ focus – aimed at offering holistic services to our clients to meet the

technology needs of their present while readying them to be future-ready.

The company’s DNA of grassroots innovation, its ingrained culture of co-innovation,

and its tradition of going far beyond what is expected, to create customer value,

clearlydifferentiates it and gives it a distinct advantage in creating value for businesses

in thedigital and connected world.

The company’s unique blend of services and products enables clients to

achievetransformation guided by the framework of the company’s Mode 1-2-3

22
strategy, its Signature growth blueprint to ensure organizations accelerate their
 21
transition intodigital enterprises.

23
The Mode 1-2-3 strategy gives clients assurance and confidence in HCL’s ability to

deliver on their vision of sustainable transformation.

HCL’s Mode 1 services aim to offer global clients a leadership position and enhance

the business competencies for their core business processes, products, and services

through the highest level of reliability and consistency through maximum automation,

efficient delivery, and operational agility. They enable clients to become more efficient

and agile while helping them achieve competitive differentiation in their industry.

Mode 1 leverages the current business and IT landscape by consolidating a firm’s

existing core and unearthing new ways to enhance that core with new technologies.

These service offerings are comprised of applications, infrastructure, engineering and

Research & Development, and Digital Process Operations.

HCL’s Mode 2 offerings help enterprises take the next digital leap using insight-based,

experience-centric, and outcome-based integrated services that leverage

next-generation technologies. Mode 2 propositions are in the areas of digital

transformation, data analytics, IoT, hybrid cloud migration and management, digital

product engineering and cyber security, and they help clients build robust new-age

capabilities and pivot to new business models.

Cloud is a critical part of your company’s Mode 2 offerings. It is transforming from

computing infrastructure to becoming the core of business. It is the new way of

delivering infrastructure services, driving engineering, creating software,

managingdata, and democratizing access to technology. To paraphrase Gartner, “There

can be nobusiness strategy without cloud strategy”. HCL’s Cloud Smart approach

provides a mixof cloud choices that modern business strategy demands. HCL
24
unlocks the growthopportunities through Cloud Smart leveraging the HCL
Ecosystem Units dedicated tohyperscalers22like Google, Microsoft, AWS, IBM/

RedHat and tech leaders like Cisco,

25
23
Dell, VMware, Intel, and SAP among others. The servicesoffered under the Cloud

Smart umbrella are a reflection of HCL’s ability to develop capabilities and execute

services that are closely aligned with business needs – a fact

recognized by clients, analysts, experts, and partners.

HCL’s Mode 3 offerings are based on a strategy of creating innovative intellectual

property (IP) by leveraging anecosystem model through strategic

partnerships,carve-outs, and co-innovation programs. Through bothinternal and

external IP creation, HCL’s Mode 3 offeringshelp clients target specific next-

generation opportunities with scalable and ready-to- deploy products and platforms

thatreduce the time to become future-ready. It addressesthe various needs of enterprise

clients in the area of technology and domain related intellectual properties. These

intellectual properties also enable our Mode 1-2 portfolio by augmenting with

automation and AI/MLbuilt into our service propositions. A new addition to our Mode3

strategy is the establishment of a dicated Industry Software Division. This unit will

focus on building next-generation products in 5G/telecom, manufacturing,Noida,

Indiaand enterprise AI.

24
HCL differentiates itself from other technology consulting organizations through

itspeople, unique culture, traditionof innovation, focus on outcomes, and an IP-led

(via proprietary technology) approach. It goes beyond thetraditional delivery model,

leveraging an extensive partner ecosystem – from hyper-scalers to vertical

platforms,fromstart-up incubators to boutique industry consultants –across the entire

value chainto solve client business problems. The company has created an efficient

“onshore-offshore-nearshore-anyshore” model to design exceptional talent

management andtraining programs; even as talent goes remote, it’s accessible to the

entireworld on avideo conference. In the anywhere, anytime world of service

delivery, HCL continuesto invest indata security and governance as cyber protection

and data privacy becomesever more critical in the post pandemic era.

25
 RECENT HAPPENINGS AT HCL TECHNOLOGIES

HCL Technologies has been positioned as a leader in the Gartner Magic Quadrant for

Outsourced Digital Workplace Services 2022 global report. HCL is the only global

provider to be positioned as a leader in all four Magic Quadrants: Outsourced Digital

Workplace Services, Managed Network Services, Datacenter Outsourcing and Hybrid

Infrastructure Managed Services, and Public Cloud IT Transformation Services. HCL

has been rated highest on both parameters of the MQ: completeness of vision

andability to execute. HCL has carved out its digital workplace services as a separate

business unit within infrastructure services, launching dedicated workplace services

delivery teams to provide differentiated solutions to clients.

26
HCL Technologies launched two new 5G applications at MWC Barcelona to help

mobile network operators optimize customer experience and reduce energy

consumption across their 4G and 5G infrastructure. HCL’s Quality of Experience

(QoE) and Energy Savings applications are built on HCL’s Augmented Network

Automation (ANA) Platform, developed by its Industry Software team to enable

mobileoperators globally to effectively manage their 5G and 4G services.

27
 CHAPTER 3
REVIEW OF LITERATURE

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 LITERATURE REVIEW

(Kressler, 2003); Conducted a research on Effective Performance appraisals, they are

one of the most important requirements for successful business and human resource

policy. Rewarding and promoting effective performance in organizations, as well as

identifying ineffective performers for developmental programs or other personnel

actions, are essential to effective to human resource management (Pulakos, 2003). The

ability to conduct performance appraisals relies on the ability to assess an employee’s

performance in a fair and accurate manner. Evaluating employee performance is a

difficult task. Once the supervisor understands the nature of the job and the sources

ofinformation, the information needs to be collected in a systematic way, provided as

feedback, and integrated into the organization’s performance management process for

use in making compensation, job placement, and training decisions and assignments

(London, 2003).

According to Everden and Anderson (1992), performance appraisal will assist the

organization in succession planning, identifying gaps in human resources planning,

ensuring organization's and individual's objectives are in harmony, improving

communication and performance. It is one of the many tools of managing people. In

this regard, Armstrong (1991), recommended that the principles in managing people

embodies in the following: People are the most important resources in an

organizationand must be managed effectively, as they are the key to the organization's

success. Thehuman resource policies and procedures need to be closely linked so as to

contribute tothe achievement objectives and strategic plans.

Keeping in mind the growing attrition rates and the employee dissatisfaction among
29
theemployees, the HR professionals are approaching and using the performance
 29
appraisal asa fuel to motivate employees . The latest trend being followed by the HR

30
professionals isto use the performance appraisal and review process as a motivating

mechanism. Varioussurveys and studies have testified the relationship between

performance review, pay and motivation.

Other than the traditional goal of accessing the performance of the employees,

Performance appraisals and reviews can be used as a tool to reinforce the desired

behavior and competent performance of the employees.One of the most

motivatingfactors for the employees, in the Performance appraisal processes is to

receive a fair anaccurate assessment of their performance. Inaccurate evaluation is one

reason becauseof which most employees dread going through performance

appraisals. An employeealways expects his appraiser to recognize and appreciate his

achievements, support himto overcome the problems and failures. The discrepancies

and the inaccuracies in theperformance review can demotivate the employees, even if

there has been an increasein the salary. Such inaccuracies can kill theinnovating and

risk taking enthusiasm andspirit in the employees. Similarly, inaccurate reviews with

no hike in compensation canincrease the attrition rate in the organisation, forcing the

employees to look out for otheroptions.

An employee prefers an accurate performance review with no increase in the salary

over inaccurate performance review with an increase in salary. Employees, who

receiveboth accuracy and a pay increase during their performance review, are likely to

be the most motivated. Therefore, performance appraisal (review and its consequence

in the form ofcompensation adjustments) has the potential of motivating employees

and increasing their job satisfaction.

30
 PERFORMANCE APPRAISAL IN HCL TECHNOLOGY LTD.:

Now let us discuss about the Performance Appraisal Process in HCL Technologies

Ltd.,each step in the process is crucial and is arranged logically. The process as shown

belowis somewhat idealized. In HCL Technologies Ltd. make every effort to

approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately,

many others fail to consider one or more of the steps and, therefore, have less-

effectiveappraisal system.

• Objectives of Appraisal
• Establish job Expectation
• Design Appraisal programme
• Appraise performance
• Performance review

• Use appraisal Data for appropriate purposes

Objectives of Appraisal:
In HCL Technologies Ltd. objectives of appraisal, as stated above, include effecting

promotions and transfers, assessing training needs, awarding pay increases, and

thelike.The emphasis in all these is to correct the problems. These objectives are

appropriate aslong as the approach in appraisal is individual. Appraisal, in future,

wouldassume systems orientation .In the systems approach, the objectives of appraisal

stretchbeyond the traditional ones. In the systems approach, appraisal aims at

improving theperformance, instead of merely assessing it. Towards this end, appraisal

system seeksto evaluate opportunity factors. Opportunity factors include the physical

environmentsuch as noise, ventilation and lightings, available resources such as

human andcomputer assistance; and social process such as leadership effectiveness.

These
31
opportunity variables are more important than individual abilities in determining

workperformance.

Establish Job Expectations:

In HCL Technologies Ltd., the second step in the performance appraisal process is to

establish job expectations. This includes informing the employee what is expected

ofhim or her on the job. Normally, a discussion is held with his or her superior to

reviewthe major duties contained in the job description. Individuals should not be

expected tobeginthe job until they understand what is expected of them.

Design appraisal Programme:

In HCL Technologies Ltd. designing a performance appraisal programme poses several

questions which need answers. They are, i) Formal versus informal appraisal; ii)

whose performance is to be assessed? Iii) Who are the raters? iv) What problems are

encountered? V) How to solve the problems? Vi) What should be evaluated? Vii) When

to evaluate? Viii) What methods of appraisal are to be used?

Formal versus Informal Appraisal:

HCL Technologies Ltd.’s first step in designing a performance appraisal programme is

todecide whether the appraisal should be formal or informal. Formal appraisals

usuallyoccur at specified time periods- once or twice a year. Formal appraisals are

most oftenrequired by the organization for the purpose of employee evaluation.

Informalperformance appraisal can occur whenever the supervisor feels the need

forcommunication. For example, if the employee has been consistently meeting or

executing standards, and informal appraisal may be in order to simply recognize

thisfact. Discussions can take to be ensuring that the discussion in held in private.
32
HCL Technologies Ltd. encourage a mixture of both formal and informal appraisals.
The formal appraisal is most often used as32primary evaluation. However, the informal

33
appraisal is very helpful for more performance feedback. Informal appraisals should

not take the place of formal performance evaluation.

Appraisee performance and performance review in HCL Technologies Ltd.:

Answering the following questions can look into these two aspects:

Whose performance should be rated?

To the question whose performance should be rated, the answer is obvious-

employees.When HCL Technologies Ltd. says employees, is it individuals or teams?

Specifically, therate may be defined as the individual, work group, division, or

organization. It is alsopossible to define the rate at multiple levels. For example,

undersome conditions, it maybe desirable to appraise performance both at the work-

group level for merit pay increasesand at the individual level tosses training needs.

Who are Raters?

In HCL Technologies Ltd. raters can be immediate supervisors, specialists from the HR

department, subordinates, peers, committees, clients, self-appraisals, or a combination

of several. Immediate Supervisor is the fit candidate to appraise the performance of

his orher subordinates. There are three reasons in support of this choice. No one is

more than his or her superior. Another reason is that the superior has the responsibility

of managing a particular unit. When the task of evaluating a subordinate a given to

another person, thesuperior authority may be undermined seriously. Finally, training

and development ofsubordinates is an important element in every supervisor may be

the logical choice toconduct the performance evaluation. Subordinates can assess the

performance of their superiors.

One of the steps in designing performance appraisal programme is to determine the

34
evaluation criteria .It is obvious that the criteria should be related to the job. The
sixcriteria for assessing performance in H3C3L Technologies Ltd. are:

35
• Quality: The degree to which the process or result of carrying out an activity

approaches perfection in terms of either conforming to some ideal way

ofperforming the activity, or fulfilling the activity’s intended purpose.

• Quantity: The amount produced, expressed in monetary terms, number of

units,or number of competed activity cycles.

• Timeliness: The degree to which an activity is completed or a result produced,

at the earliest time desirable from the standpoints of both coordinating with the

outputs of others and of maximizing the time available for other activities.

• Cost of Effectiveness: the degree to which the use of the organizations

resources e.g. human, monetary, technological and material is maximized in

the sense of getting the highest gain or reduction in loss from each unit or

instanceof use of a resource.

• Need for supervision: The degree to which a job performer can carry out a

job function without either having to request supervisory assistance or

requiring supervisory intervention to prevent an adverse outcome.

• Interpersonal impact: The degree to which a performance promotes feeling

of self-esteem, goodwill and cooperation among co-workers and

subordinates.These criteria relate to past performance and behavior of an

employee. There is also the need for assessing, as was pointed out earlier, the

potential of an employee for future performance, particularly when the

employee is tipped for assuming greater responsibilities.

34
36
Timing of evaluation:

The general trend is to evaluate once in three months, or six months, or once in a

year.70per cent of the HCL Technologies Ltd.’s conduct performance appraisal once a

year.Newly hired employees are rated more frequently that the older ones. Frequent

assessment is better than phased evaluation. Feedback in the latter is delayed and the

advantages of timely remedial measures by the employee are lost. Frequent

evaluationgives constant feedback to the rate, thus enabling him or her to improve

performanceifthere is any deficiency. The performance of trainees and

probationers should beevaluated at the end of respective programs. HCL

Technologies Ltd. is screeningaround 2,400-3000 employees (4-5 percent of

thetotal workforce) on the grounds ofnon-performance. According to sources,

around 1000 employees are being given thepink slips, while about 2000 are allowed

to move on.

The company will provide some of the employees with counseling for boosting up

their performance. It's a regular annual exercise. As the appraisal cycle gets over, a

multi- layer review happens. Following that, people who have fallen in the lower

quadrants ofperformance are put on watch. Some are asked to pull up and others are

asked to move33 on." It includes all the 50,000 global services employees from the

senior leadership teamdown to the person with one-year experience. On the number of

the employees who hadbeen asked to move on, HCL Technologies Ltd. did not

disclose the number. But it was"significantly lower than 2,000" as company sources

said about1,000 employees werebeing asked to leave.

HCL Technologies Ltd. will probably celebrate. After a fairly dismal performance last
37
year for a company in its league, it made a big jump up the rankings-from number 8
tonumber 3. And there’s one reason—35it improved internal HR processes and

indicators. Pre-requisites in HCL Technologies Ltd. for Effective & Successful

38
Performance

36

39
Appraisal:

The HCL Technologies Ltd.’s effective performance system is as follows:

• Documentation: Itmeans continuous noting and documenting the performance

1. Italso helps the evaluators to give a proof and the basis of their ratings.

• Standards / Goals: The standards set should be clear, easy to

understand,achievable, motivating, time bound and measurable.

• Practical and simple format: The appraisal format should be simple, clear,

fairand objective. Long and complicated formats are time consuming, difficult

to understand, and do not elicit much useful information.

• Evaluation technique: An appropriate evaluation technique should be

selected; the appraisal system should be performance based and uniform. The

criteria for evaluation should be based on observable and measurable

characteristics of thebehavior of the employee.

• Communication: Communication is an indispensable part of the

Performance appraisal process. The desired behavior or the expected results

should be communicated to the employees as well as the evaluators.

Communication alsoplays an important role in the review or feedback meeting.

Open communication system motivates the employees to actively participate

in the appraisal process.

• Feedback: The purpose of the feedback should be developmental rather than

judgmental. To maintain its utility, timely feedback should be provided to the

employees and the manner of giving feedback should be such that it should

haveamotivating effect on the employees’ future performance.

• Personal Bias: Interpersonal relationships can influence the evaluation and

40
thedecisions in the performance appraisal process. Therefore, the evaluators
37
should

41
38
 be trained to carry out the processes of appraisals without personal bias

andeffectively.

Preparation for Performance Review in HCL Technologies Ltd.:

In HCL Technologies Ltd. the performance review meeting should not be strictly

formalnor should it be completely informal in nature. Ideally, the review meeting

should bestructured, semi – formal meeting which needs prior preparation by the

appraiser as well as the employee for it to be effective.

Following are some points that need to be prepared before the review meeting of

Performance appraisal in HCL Technologies Ltd.:

• Inform the concerned employees the date, time and place for the review

meetingwell in advance.

• Review and be prepared with each and every employee’s

➢ Job description

➢ Performance standards

➢ Planned performance goals

➢ Performance measures collected throughout the time period

➢ The critical incidents details

➢ Past appraisals of the employees.

• Be ready with all the important dates

• Give the employee a copy of the appraisal form
• The appraiser needs to completely understand the standards for the employees

at same level to maintain the consistency in the process.

• Prepare what to say and how to say it calmly.

• The feedback should be prepared in quantifiable measures where ever possible.

39
 • The appraiser should be familiar with the performance review form and

thedetails.

• The employee and the appraiser both should be prepared to discuss and

figureout the future goals and training needs.

• They should be mentally prepared for constructive feedback.

• Collect as many evidences to support your point as possible like the

monthly,quarterly progress reports.

Analysis for Improving Performance in HCL Technologies Ltd.:

In HCL Technologies Ltd. performance review process is incomplete without the

feedback to the employees. The feedback could be given in the review discussion.

Review discussions are semi formal, scheduled, periodic interactions – usually

bimonthly or quarterly – between a manager and his employee. The basic purpose

ofthe review discussion is to analyze the performance of the employee in the past

toimprove the performance of the employee in future. A review discussion is an

opportunity to coach,mentor, learn and understand. The manager encourages his/

heremployees to critically reflect over progress made on the Performance appraisal

planand to develop creative, yetfeasible alternatives for problem areas.

The HCL Technologies Ltd.’s manager uses this opportunity to:

• Review the performance of the each employee individually.

• Discuss the problems faced by the employees during the course of action.

• The solutions tried, and the degree of success achieved in solving the

problemsfaced.

• Revisit with the employee, his/ her annual plan for the remaining time

periodand develop revised action plans, if necessary.

40
Review discussions reassure the employees that each one of them has structured
opportunities for one to one interaction with the manager once every two or three

monthsduring the year. These opportunities are important as they provide an important

chance for performance monitoring or development mentoring. In HCL Technologies

Ltd., theaim of the performance review discussions is to share perceptions, solve the

problem faced during the course of the action, decide on the new goals jointly and

provide a feedback to the employee for the past performance i.e. to look at his

strengthsand weaknesses and also help to chart out a career plan for the employee.

The focus ofthe performance review discussions should not bet o judge the

employees’ past performance; rather it should be to motivate the employee to improve

his future performance and reinforce his good behaviour.

Active Performance Appraisal Conversation in HCL Technologies Ltd.:

Active conversation plays an important part in the performance review meeting at

HCLTechnologies Ltd. The HCL Technologies Ltd.’s appraiser should ensure that the

meeting has a two way conversation and that the employee should get a fair chance to

speak. The“manner” of giving the feedback of the performance of the employee is

veryimportant. The conversation should have an optimistic and motivating tone.Some

important points that should be taken care of in the appraisal conversation at

HCLTechnologies Ltd. are:

1. Make it a two-way conversation: An effective Performance appraisal review

Requires an interactive discussion with an open agenda. Try to formulate questions

that seek the employee’s ideas and input. This will help the employee feel you value

his/ her opinions. Give the employee a fair chance to put forward his ideas; let

himspeak.
41
2. Be a good listener: Remember to be an active listener and to pick up at HCL
Technologies Ltd. employee’s verbal and 4n1onverbal cues. Listen to his ideas and

42
problems.

3. Address what’s important to the employee: Since job satisfaction is the most

important factor affecting an employee’s attitude, an effective review should

delveinto areas that include issues most important to that employee.

4. Lead with the positive: It’s important to reaffirm the employee’s strengths at the

beginning of the review. Since job security is the number one concern of most

people,the performance review is a good time to tell an employee how much values

their contributions to HCL Technologies Ltd.

5. Don’t be confrontational: It’s important not to criticize the employee in

generalterms. The goal is to evaluate job performance and not the person. A

performance review that turns into a gripe session misses the opportunity to raise

employee morale.

6. Positive reinforcement: Emphasizing what has been done well so that it will be

done even better in the future and making only constructive criticisms (i.e. those

thatpoint the way to improvement).

7. Exchange of views: Ensuring that the discussion involves a full, free and frank

exchange of views about what has been achieved, what needs to be done to

achievemore and what the appraiser think about their work the way they are

managed.

8. Agreement: Jointly coming to an understanding about what has to be done by

bothparties to improve performance, knowledge and skills and overcome any work

problems raised during the discussion.

PERFORMANCE APPRAISAL FEEDBACK IN HCL TECHNOLOGIES

43
LTD.:
Performance appraisal process is incomp4le2te without the feedback given to the

employeeabout his appraisal and his performance. But the way of giving as well as

44
43
receiving thefeedback differs from person to person and their way of handling and

theiroutlooktowards the issue.

According to a HCL Technologies Ltd.’s HR manager:

“A Successful Man Is One Who Can Lay A Firm Foundation With The Bricks Others

Have Thrown At Him.”

Therefore, On the part of the person receiving the feedback, the following points

areimportant to be taken care of:

➢ The employee should have a positive attitude towards the feedback process

➢ He should listen to the suggestions of the appraiser calmly and try to

incorporatethemin his plans.

➢ He should not hesitate to ask for the help of his superiors.

➢ Should have a co-operative attitude during the feedback meeting.

➢ Don’t judge the appraiser as a person.

➢ Should take the feedback objectively.

➢ Should not judge the appraiser as a person on the basis of the feedback.

On the part of the appraiser or the manager / person giving the feedback, the following

points are to be taken care of in HCL Technologies Ltd.:

➢ The appraiser should make the receiver feel comfortable during the

feedbackmeeting.

➢ The appraiser should make it a two – way conversation i.e. let the

employeespeak.

➢ Listen to the employee and note his points, suggestions, problems etc.

➢ The appraiser should not adopt a confrontational approach towards the meeting.

The goal is not to criticize the employee.

44
 ➢ Provide a constructive feedback to the employee i.e. in a way which

willmotivate him to perform better.

➢ Have a positive attitude towards the process.

➢ Try to understand the reasons of his failure.

➢ Be fair and objective.

➢ Prepare yourself for what to say and how to say.

The following are the major discrepancies found in the performance appraisal

processesbeing followed at the HCL Technologies Ltd.

➢ Most of the indicators used for measuring the performance the employees

arenot quantifiable in nature, making it difficult to measure the performance.

➢ Unavailability of the job descriptions for many employees.

➢ Most of the objectives in HCL Technologies Ltd. is unchallenging, unrealistic

and not timely reviewed and updated.

➢ It is difficult to measure the average performance of the HCL Technologies Ltd.

employees.

➢ Unprofessional and unstructured approach towards the process.

➢ There is often a lot of bias and subjectivity involved in the ratings given by

thesuperiors.

➢ Lack of complete information on appraisal forms due to expertise and

relevanttraining; often, the appraisals are not conducted on a regular basis.

➢ In HCL Technologies Ltd., team appraisal is often not possible.

➢ Other HR decisions like rewards, training or promotions are not directly

linkedto the results of the performance appraisal process.

In HCL Technologies Ltd. Performance Appraisal for different Level Employees:

45
Performance appraisal is important for employees at all levels throughout the AIGL.

The parameters, the characteristics and the standards for evaluation may be different,

but the fundamentals of performance appraisal are the same. But as the level of the

employee’s increases, performance appraisal is more effectively used as the tools of

managing performance.

Performance appraisal of Managers:

In HCL Technologies Ltd. appraising the performance of managers is very important,

but at the same time, it is one of the most difficult tasks in the HCL Technologies Ltd.

It is difficult because most of the managerial work cannot be quantified i.e. it is

qualitative in nature like leading his/her team, guiding, motivating, planning etc.

Therefore, the two things to be noted and evaluated for the purpose of appraisals are:

• Performance in accomplishing goals, and

• Performance as managers

Performance in accomplishing goals:

Managers are responsible for the performance of their teams as a whole. Performance

in accomplishing goals would mean to look at the completion or achievement of the

goals set for a team of employees which is being assigned to or working under a

particular manager. The best measuring criteria for a manager are hi goals, his plans

ofcourse of action to achieve them and the extent of achievement of the goals.

Performance as managers:

The responsibilities of managers in HCL Technologies Ltd. include a series of activities

which are concerned with planning, organizing,

46 directing, leading, motivating and
controlling. Managers can be rated on the a bove parameters or characteristics
4 6

47
Criteria for measuring performance at different levels:

The criteria for measuring performance changes as the levels of the employees and

theirroles and responsibilities change.

For top level management:

• Degree of organizational growth and expansion

• Extent of achievement of organizational goals
• Contribution towards the society
• Profitability and return on capital employed

For middle level managers:

• Performance of the departments or teams

• Co-ordination with other departments
• Optimal use of resources
• Costs Vs revenues for a given period of time
• The communication with superiors and subordinates

For front line supervisors:

• Quantity of actual output against the targets

• Quality of output against the targets

• Number of accidents in a given period

• Rate of employee absenteeism

Trends in HCL Technologies Ltd.:

The emergence of following concepts and the following trends related to

Performanceappraisal can be seen in the HCL Technologies Ltd. scenario:

47
 • 360 Degree Appraisal: 360 degree feedback, also known as 'multi-rater

feedback, is the most comprehensive appraisal where the feedback about the

employees’ performance comes from all the sources that come in contact with

the employee on his job. HCL Technologies Ltd. is increasingly using feedback

from various sources such as peer input, customer feedback, and input from

superiors. Different forms with different formats are being used to obtain the

information regarding the employee performance.

• Team Performance Appraisal: Most of the performance appraisal techniques

are formulated with individuals in mind i.e. to measure and rate the

performanceof the individual employee. Therefore, with the number of teams

increasing in the HCL Technologies Ltd., it becomes difficult to measure and

appraise the performance of the team. The question is how to separate the

performance of the team from the performance of the employees. A solution to

this problem that is being adopted by the HCL Technologies Ltd. is to measure

both the individual and the team performance. Sometimes, team based

objectives are also includedin the individual performanceplans.

• Rank and Yank Strategy: Also known as the “Up or out policy”, the rank and

yank strategy refers to the performance appraisal model in which best-to-

worst ranking methods are used to identify and separate the poor performers

from the good performers. Then the action plans and the improvement

opportunities of the poor performers are discussed and they are given to

improve their performance in a given time period, after which the appropriate

HR decisions are taken. HCL Technologies Ltd. following this strategy are

Ford, Microsoft and Sun Microsystems.

48

Employee Reaction towards HCL Technologies Ltd.’s Performance Appraisal

49
System:

The attitudes and perceptions toward performance appraisal of two groups,

supervisoryand non-supervisory employees are working in HCL Technologies Ltd. In

other words,both supervisors and non-supervisors described their perception and

attitudes about how they, personally, were appraised. Any significant differences

between supervisory and non-supervisory reactions toward performance appraisal

could have important implications for the design and implementation of appraisal

systems in HCL Technologies Ltd. To the extent that appraisal systems are applied

evenly in HCL Technologies Ltd., these findings are likely to be applicable to other

agencies as well. Butthe fact remains that an appraisal system is not an isolated

activity within the HCLTechnologies Ltd.

Employees’ feelings regarding the PA seem likely to extend to employees’ feelings

toward the person appraising them. Although previous research has not specifically

investigated this relationship, it is conceivable that those employees provided

development will feel better about the appraiser. The positive, helping aspects of

developmental feedback may enhance how employees view the person providing the

development. Employee perceptions that PA is used for development will positively

associate with employee satisfaction with the appraiser. Those employees at the lower

performance level (and perhaps not given a wage increase) may be unhappy with the

PAand also be provided only evaluation, because it is unpleasant to discuss remedial

development. In effect, performance may drive both PA use and attitudes.

50
 CHAPTER 4
RESEARCH METHODOLOGY

51
 RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. In it we

study the various steps that are generally adopted by a researcher in studying his

research problem along with the logic behind them. It is necessary for the researcher

to know not only the research methods/techniques but also the methodology.

Researchers not only need to know how to develop certain indices or tests, how to

calculate the mean, the mode, the median or the standard deviation or chi-square, how

to apply particular research techniques, but they also need to know which of these

methods or techniques,are relevant and which are not, and what would they mean and

indicate and why. Researchers also need to understand the assumptions underlying

various techniques and they need to know the criteria by which they can decide that

certain techniques and procedures will be applicable to certain problems and others

will not. All this means that it is necessary for the researcher to design his

methodology for his problem as the same may differ from problem to problem. For

example, an architect, who designs a building, has to consciously evaluate the basis of

his decisions, i.e., he has to evaluate why and on what basis he selects particular size,

number and location of doors, windows and ventilators, uses particular materials and

not others and the like. Similarly, in research the scientist has to expose the research

decisions to evaluation before they are implemented. He has to specify very clearly

and precisely what decisions he selects and why he selects them so that they can be

evaluated by others also.

“The methodology is used for the project is secondary data based research
52
paperand it is exploratory research paper.”
 OBJECTIVE OF THE STUDY
• To study the Performance appraisal process in HCL Technologies.
• To bring out best practices for the current Performance Appraisal process to

bemore effective.

• To examine the standing relationship between the employees and the

management.

• To classify ways to improve the standing performance appraisal methods.

• To examine the opinion of employees towards performance appraisal at

HCLTechnologies.

53
 SCOPE OF THE STUDY

Any organizations development is primarily based on its employees efficiency and

attitude towards the organizational goal. The company and the employees are to be

mutually benefited with the organization profit, which is possible only with an

understanding management & dedicated staff, which require a proper blending of

organizational goals with individual goals. Performance management helps the

management of an organization to overcome this situation.

In connection to this, the performance of the employees is being analyzed which can

indirectly influence the satisfaction of the employee and directly motivates them to

work for the organizational development. The study helps to analyze the trends in

performance management system in HCL industry and give appropriate suggestions

toimprovise the practices taken by it.

54
 RESEARCH DESIGN

Research design is the framework of research methods and techniques chosen by a

researcher. The design allows researchers to hone in on research methods that are

suitable for the subject matter and set up their studies up for success.

The design of a research topic explains the type of research (experimental,

survey, correlational, semi-experimental, review) and also its sub-type (experimental

design, research problem, and descriptive case-study).

The type of research problem an organization is facing will determine the research

design and not vice-versa. The design phase of a study determines which tools to use

and how they are used. An impactful research usually creates a minimum bias in data

and increases trust in the accuracy of collected data. A design that produces the least

margin of error in experimental research is generally considered the desired outcome.

The methodologies and methods incorporated in the design of a research study will

depend on the standpoint of the researcher over their beliefs in the nature of

knowledgeand, often shaped by the disciplinary areas the researcher belongs to.

The design of a study defines the study type (descriptive, correlational, semi-

experimental, experimental, review, meta-analytic) and sub-type (e.g., descriptive-

longitudinal case study), research problem, hypotheses, independent and dependent

variables, experimental design, and, if applicable, data collection methods and a

statistical analysis plan A research design is a framework that has been created to find

answers to research questions.

55
 CHARACTERSTICS OF RESEARCH DESIGN

Neutrality: When you set up your study, you may have to make assumptions about
thedata you expect to collect. The results projected in the research should be free from
biasand neutral. Understand opinions about the final evaluated scores and conclusions
frommultiple individuals and consider those who agree with the derived results.

Reliability: With regularly conducted research, the researcher involved expects

similarresults every time. Your design should indicate how to form research questions
to ensure the standard of results. You’ll only be able to reach the expected results if
yourdesign is reliable.

Validity: There are multiple measuring tools available. However, the only correct
measuring tools are those which help a researcher in gauging results according to the
objective of the research. The questionnaire developed from this design will then be
valid.

Generalization: The outcome of your design should apply to a population and not
justa restricted sample. A generalized design implies that your survey can be conducted
onany part of a population with similar accuracy.

56
Type of research design

Exploratory research and Secondary data has been used here.

Exploratory research is defined as a research used to investigate a problem which is

not clearly defined. It is conducted to have a better understanding of the existing

problem, but will not provide conclusive results. For such a research, a researcher

starts with a general idea and uses this research as a medium to identify issues , that can

be the focusfor future research. An important aspect here is that the researcher should

be willing tochange his/her direction subject to the revelation of new data or insight.

Such a research is usually carried out when the problem is at a preliminary stage. It is

often referred to as grounded theory approach or interpretive research as it used to

answer questions likewhat, why andhow.

57
 DATA SOURCES

Data is a collection of facts, figures, objects, symbols, and events gathered from

different sources. Organizations collect data to make better decisions. Without

data,it would be difficult for organizations to make appropriate decisions, and so data

is collected at various points in time from different audiences.

For instance, before launching a new product, an organization needs to collect data on

product demand, customer preferences, competitors, etc. In case data is not collected

beforehand, the organization’s newly launched product may lead to failure for many

reasons, such as less demand and inability to meet customer needs.

Although data is a valuable asset for every organization, it does not serve any purpose

until analyzed or processed to get the desired results.

Secondary Data Collection Method

• Secondary research is a research method that involves using already existing data.

• Existing data is summarized and collated to increase the overall effectiveness of

research.

• Secondary research includes research material published in research reports and

similardocuments.

• These documents can be made available by public libraries, websites, data obtained

from already filled in surveys etc. Some government and non-government agencies

alsostore data that can be used for research purposes and can be retrieved from them.

• Secondary research is much more cost-effective than primary research, as it makes

useof already existing data, unlike primary

58 research where data is collected first hand
57
by
59
 organizations or businesses or they can employ a third party to collect data on

theirbehalf.

• Secondary data is easily available and hence, less time-consuming and expensive.

58
CHAPTER
5FINDINGS

59
 FINDINGS
• Self-appraisal is an important tool which is used extensively in the company.
• For reducing the biasness in (Performance Management System) PMS,

360degree feedback and continuous observations are used mostly.

• Training of the employees is an important part of PMS.

• Retention of the employees is of utmost importance while making policies.
• There is a trend of linking performance with promotion in the company.

60
 CHAPTER 6
CONCLUSION & RECOMMENDATIONS

61
 CONCLUSION & RECOMMENDATIONS

Conclusion:

Appraisal is a sensitive as well as a very important issue in any organization. It

directlyaffects the trust and the relationship of the employees with the Superiors and

the Organization.

It was seen during the course of time that performance appraisals were affected by the

perceptions of the employees as well as the Managers in the sense that:

• Employees, who were not happy with the previous appraisals, did not

activelyparticipate in the next appraisals as well.

• Recent experiences were fresh in the minds of employees and the

employers,which affected the appraisals to a large extent.

• Any kind of appraisal cannot be held within short period of restructuring in

thecompany, as it is bound to affect the results of the appraisal.

Recommendations:

Some suggestions in order to improve the appraisal methods and their use are as

follows:

• A formal discussion should take place between managers and appraisee

regarding target vs. achievement. This gives a clear picture to both parties

involved on the factual situation.

• Performance Appraisals should be authentic and satisfactory. Feedback should

be made available to the employees, irrespective of whether theresult is

negativeor positive.

• 6 months formal reviews should happen,

62 however increments can be annual.
• Feedback should also be taken from employees to check whether

appraisalsareserving their objective.

• Appraisals should not involve any question of salary, incentives etc. as

thesearematters of different area and affect the morale of the employees.

63
 CHAPTER 7
MAJOR CHALLENGES/LIMITATIONS

64
 MAJOR CHALLENGES/ LIMITATIONS

• If the factors included in assessment are irrelevant, the result of

performanceappraisal will not be accurate.

• Different qualities to be rated may not be given proper weightage in

certaincases.

• Some of the factors are highly subjective like initiatives and personalities of

the employees because of which performance rating may not be on

scientificlines.

• Supervisors may be guided by their personal emotions and likes.

65
 BIBLIOGRAPHY

REFERENCES
• Blanchar, C., &Onton, J., Performance measures in times of change.

EmploymentRelations Today , 32(1): 25-34; 2005.

• Fields, D., & Blum, T. C., Employee satisfaction in work groups with

differentgender composition. Journal of Organizational Behavior, 18, 181-196;

2010.

• Human resource management by T.N. Chabbra

• Mamoria C. B. &Gankar S. V.; “Human Resource Management”;

HimalayaPublishing House; 2003.

• P. Subba Rao, 2006, Essentials of Human Resource Management and

IndustrialRelations, Himalaya Publishing House.

• Prasad L.M.; “Human Resource Management”; Sultan Chand & Sons,

NewDelhi;2001.

• Surendar Kumar; “Performance Appraisal and Potential Evaluation”;

GalgotiaPublishing House; 2001.

• Business World
• Business Today
• The Times of India
• https://www.hcltech.com

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