NIT Graduate School of Management

CERTIFICATE

This is to certify that the project report titled “ ANALYTICAL STUDY OF

PERFORMANCE APPRISAL SYSTEM ADOPTED BY TATA CONSULTANCY
SERVICES,NAGPUR”; is a bonafide work of “ Sandhya Babanrao Dhande”who is
student of MBA (Second Year), N I T Graduate School of Management (Academic Session
– 2015-16). This report is being submitted in partial fulfillment of requirement for the course
of Post Graduate Degree of Masters of Business Administration (MBA) of Rashtrasant
Tukadoji Maharaj Nagpur University, Nagpur.

Prof.Vaibhav Bhalerao Dr.Neha Sharma

Project Guide Director

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APPROVAL OF PROJECT PROPOSAL

Name of Student : - Sandhya Babanrao Dhande

Enrollment Roll No : - 2015016600969515

College : - N I T Graduate School of Management

Address of Student : - At Ashok Vatika Borda,Warora

Title of Project : -Analytical Study Of Performance Apprisal System Adopted

By Tata Consultancy Services

Subject Area : - Human Resource Management

Name of Guide : - Prof.Vaibhav Bhalerao

Prof. Vaibhav Bhalerao Dr.Neha Sharma

Faculty & Guide Director

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DECLARATION
I Sandhya Babanrao Dhande hereby declare that the project report titled, “ANALYTICAL
STUDY OF PERFORMANCE APPRISAL SYSTEM ADOPTED BY TATA
CONSULTANCY SERVICES,NAGPUR ” which is being submitted by me in partial
fulfillment of requirement for the Degree of Master of Business Administration of
Rashtrasant Tukadoji Maharaj Nagpur University, is a bonafide record of work exclusively
carried out by me. It is the result of my genuine efforts and the same has not been previously
submitted towards requirements of any course or examination of this or any other university.

The sources of material and information used in this research study has been duly
acknowledged and certified. I hereby further confirm that this project truly represents the
bonafide work undertaken by me and is the outcome of thorough and systematic research.

Sandhya Babanrao Dhande

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ACKNOWLEDGEMENT

I wish to express my sincere thanks to honorable director Dr. Neha Sharma of N I T

Graduate School of Management, Nagpur for providing us an opportunity to conduct this
project study.
I wish to take this opportunity to express my deep gratitude and completely
hearted thanks to my project guide Prof.Vaibhav Bhalerao, faculty member of N.I .T
Graduate School of Management, Nagpur and all other faculty members for their invaluable
suggestion at various stages of the work.
I am grateful to the entire official and the staff of N I T Graduate School of
ManagementAuthoritywithout whose help it would not have been possible to collect all the
data required to this.
I am also thankful to all those, who are directly or indirectly contributed to this
project work including family and friends.

Sandhya Babanrao Dhande

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PREFACE
This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come
together to have their participation in job related exercises evaluated by
trained observers. It is more focused on observation of behaviors across
a series of select exercises or work samples. Assesses are requested to
participate in in-basket exercises, work groups, computer simulations,
role playing and other similar activities which require same attributes for
successful performance in actual job. The characteristics assessed in
assessment center can be assertiveness, persuasive ability,
communicating ability, planning and organizational ability, self-
confidence, resistance to stress, energy level, decision making,
sensitivity to feelings, administrative ability, creativity and mental
alertness etc. Disadvantages – Costs of employees traveling and lodging,
psychologists, ratings strongly influenced by assessee’s inter-personal
skills. Solid performers may feel suffocated in simulated situations. Those
who are not selected for this also may get affected.

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TABLE OF CONTENTS

Chapter
CONTENTS Page No.
No.
1. Introduction 1
10
2. Company Profile
14
3. Company History
16
4. Objective Of Study
18
5. Hypothesis Of Study
20
6. Scope Of Study
30
7. Research Methodology
32
8. Data Analysis And Interpretation
49
9. Finding
51
10. Observation Of Study
55
11. Conclusion
57
12. Limitation Of Study
59
13. Suggestion
62
14. Bibliography

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64
15. Annexures

CHAPTER 1

INTRODUCTIO
N

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INTRODUCTION

 A performance appraisal is a systematic 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 accomplishments, potential for future improvement, strengths
and weaknesses, etc.To collect Performance Appraisal 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, Performance Appraisal
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)
Performance Appraisal is counseling and developing employees, and
conveying and discussing compensation, job status, or disciplinary
decisions”. Performance Appraisal is often included in performance
management systems. Performance Appraisal helps the subordinate
answer two key questions; first, "What are your 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. “How performance is managed in an organization
determines to a large extent the success or failure of the organization.
Therefore, improving Performance Appraisal for everyone should be
among the highest priorities of contemporary” organizations.
Some applications of Performance Appraisal are compensation,
performance improvement, promotions, termination, test validation, and

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more. While there are many potential benefits of Performance Appraisal,

there are also some potential drawbacks. For example, Performance
Appraisal can help facilitate management-employee communication;
however, Performance Appraisal may result in legal issues if not executed
appropriately as many employees tend to be unsatisfied with the
Performance Appraisal process. Performance Appraisal s created in and
determined as useful in the United States are not necessarily able to be
transferable cross-culturally.

A central reason for the utilization of performance appraisals (PAs) is

performance improvement (“initially at the level of the individual
employee, and ultimately at the level of the organization”). Other
fundamental reasons include “as a basis for employment decisions (e.g.
promotions, terminations, transfers), as criteria in research (e.g. test
validation), to aid with communication (e.g. allowing employees to know
how they are doing and organizational expectations), to establish personal
objectives for training” programs, for transmission of objective feedback
for personal development, “as a means of documentation to aid in
keeping track of decisions and legal requirements” and in wage
and  administration. Additionally, PAs can aid in the formulation of job
criteria and selection of individuals “who are best suited to perform the
required organizational tasks”. A PA can be part of guiding and monitoring
employee career development.

There are a number of potential benefits of organizational performance

management conducting formal performance appraisals (PAs). There has
been a general in the belief that PAs lead to positive implications of
organizations. Furthermore, PAs can benefit an organization’s
effectiveness. One way is PAs can often lead to giving individual workers
feedback about their job performance. From this may spawn several
potential benefits such as the individual workers becoming more
productive.

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A central reason for the utilization of performance appraisals (PAs) is

performance improvement (“initially at the level of the individual
employee, and ultimately at the level of the organization”). Other
fundamental reasons include “as a basis for employment decisions (e.g.
promotions, terminations, transfers), as criteria in research (e.g. test
validation), to aid with communication (e.g. allowing employees to know
how they are doing and organizational expectations), to establish personal
objectives for training” programs, for transmission of objective feedback
for personal development, “as a means of documentation to aid in
keeping track of decisions and legal requirements” and in wage
and  administration. Additionally, PAs can aid in the formulation of job
criteria and selection of individuals “who are best suited to perform the
required organizational tasks”. A PA can be part of guiding and monitoring
employee career development. PAs can also be used to aid in through the
use of 

There are a number of potential benefits of organizational performance

management conducting formal performance appraisals (PAs). There has
been a general in the belief that PAs lead to positive implications of
organizations. Furthermore, PAs can benefit an organization’s
effectiveness. One way is PAs can often lead to giving individual workers
feedback about their job performance. From this may spawn several
potential benefits such as the individual workers becoming more
productive.
Other potential benefits include:
 Facilitation of communication: communication in organizations is
considered an essential function of worker motivation. It has been
proposed that feedback from PAs aid in minimizing employees’ of
uncertainty. Fundamentally, feedback and management-employee
communication can serve as a guide in job performance.
 Enhancement of employee focus through promoting trust:
behaviors, thoughts, and/or issues may distract employees from their

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work, and trust issues may be among these distracting factors. Such

factors that consume can lower job performance and cause workers to
lose sight of organizational goals. Properly constructed and utilized PAs
have the ability to lower distracting factors and encourage trust within
the organization.
 And desired performance reinforcement: organizations find it
efficient to match individual worker’s goals and performance with
organizational goals. PAs provide room for discussion in the
collaboration of these individual and organizational goals. Collaboration
can also be advantageous by resulting in employee acceptance and
satisfaction of appraisal results.
 Performance improvement: well-constructed PAs can be valuable
tools for communication with employees as pertaining to how their job
performance stands with organizational expectations. “At the
organizational level, numerous studies have reported positive
relationships between human resource management (HRM)
practices" and performance improvement at both the individual and
organizational levels.
 Determination of training needs: “Employee training and
development are crucial components in helping an organization
achieve strategic initiatives”. It has been argued that for PAs to truly
be effective, post-appraisal opportunities for training and development
in problem areas, as determined by the appraisal, must be offered. PAs
can especially be instrumental for identifying training needs of new
employees. Finally, PAs can help in the establishment and supervision
of employees’ career goals.

 Potential complications
Despite all the potential advantages of formal performance appraisals
(PAs), there are also potential drawbacks. It has been noted that
determining the relationship between individual job performance and
organizational performance can be a difficult task. Generally, there are

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two overarching problems from which several complications spawn. One

of the problems with formal PAs is there can be detrimental effects to the
organization(s) involved if the appraisals are not used appropriately. The
second problem with formal PAs is they can be ineffective if the PA system
does not correspond with the system.
Complications stemming from these issues are:
 Detrimental to quality improvement: it has been proposed that
the use of PA systems in organizations adversely affect organizations’
pursuits of quality performance. It is believed by some scholars and
practitioners that the use of PAs is more than unnecessary if there is
total quality management.
 Negative perceptions: “Quite often, individuals have negative
perceptions of PAs”. Receiving and/or the anticipation of receiving a PA
can be uncomfortable and distressful and potentially cause “tension
between supervisors and subordinates”. If the person being appraised
does not trust their employer, appraiser or believe that they will
benefit from the process it may become a "tick box" exercise.
 Errors: Performance appraisals should provide accurate and
relevant ratings of an employee’s performance as compared to pre-
established criteria/goals (i.e. organizational expectations).
Nevertheless, supervisors will sometimes rate employees more
favorably than that of their true performance in order to please the
employees and avoid conflict. “Inflated ratings are a common malady
associated with formal" PA.
 Legal issues: when PAs are not carried out appropriately, legal
issues could result that place the organization at risk. PAs are used in
organizational disciplinary programs as well as for promotional
decisions within the organization. The improper application and
utilization of PAs can affect employees negatively and lead to legal
action against the organization.
 Performance goals: performance goals and PA systems are often
used in association. Negative outcomes concerning the organizations

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can result when goals are overly challenging or overemphasized to the

extent of affecting ethics, legal requirements, or quality. Moreover,
challenging performance goals can impede on employees’ abilities to
acquire necessary knowledge and skills. Especially in the early stages
of training, it would be more beneficial to instruct employees on
outcome goals than on performance goals.
 Derail merit pay or performance-based pay: some researchers
contend that the deficit in merit pay and performance-based pay is
linked to the fundamental issues stemming from PA systems.
Improving Performance Appraisals
Although performance appraisals can be so easily biased, there are
certain steps that can be taken to improve the evaluations and reduce the
margin of errors through the following:
 Training - Creating an awareness and acceptance in the people
conducting the appraisals that within a group of workers, they
will find a wide range in difference of skills and abilities.
 Providing Feedback to Raters - Trained raters provide managers who evaluated
their subordinates with feedback, including information on ratings from other
managers. This reduces leniency errors.
 Subordinate Participation - By allowing employee participation in the evaluation
process, there is employee-supervisor reciprocity in the discussion for any
discrepancies between self-ratings and supervisor ratings, thus, increasing job
satisfaction and motivation.

4 Goals Of Performance Appraisal

General Goals: - Specific Goals

Developmental Use:-Performance feedback

Transfers and Placements
Strengths and Development needs
Individual needs

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Administrative Decisions / Uses: Promotion

Retention / Termination
Recognition
Lay offs
Poor Performers identification
Salary

Organizational Maintenance:-Training Needs

Organizational Goal achievements
Goal Identification
HR Systems Evaluation
Reinforcement of organizational needs
HR Planning

Documentation:-Validation Research
For HR Decisions
Legal Requirements

Performance Appraisal Process

1.    Objectives definition of appraisal

2.    Job expectations establishment
3.    Design an appraisal program
4.    Appraise the performance
5.    Performance Interviews
6.    Use data for appropriate purposes
7.    Identify opportunities variables
8.    Using social processes, physical processes, human and computer assistance

Difference between Traditional and Modern (Systems) approach to Appraisals

Categories Traditional Appraisals Modern, Systems

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Appraisals
Guiding Values Individualistic, Control Systematic,
oriented, Documentary Developmental, Problem
solving
Leadership Styles Directional, Evaluative Facilitative, Coaching
Frequency Occasional Frequent
Formalities High Low
Rewards Individualistic Grouped, Organizational

TECHNIQUES/METHODS OF PERFORMANCE APPRAISAL

Numerous methods have been devised to measure the quantity and

quality of performance appraisals. Each of the methods is effective for
some purposes for some organizations only. None should be dismissed or
accepted as appropriate except as they relate to the particular needs of
the organization or an employee.
Broadly all methods of appraisals can be divided into two different
categories.
 Past Oriented Methods
 Future Oriented Methods

Past Oriented Methods

1. Rating Scales: Rating scales consists of several numerical scales

representing job related performance criterions such as
dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores are
computed and final conclusions are derived. Advantages –
Adaptability, easy to use, low cost, every type of job can be
evaluated, large number of employees covered, no formal training
required. Disadvantages – Rater’s biases

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2. Checklist: Under this method, checklist of statements of traits of

employee in the form of Yes or No based questions is prepared.
Here the rater only does the reporting or checking and HR
department does the actual evaluation. Advantages – economy,
ease of administration, limited training required, standardization.
Disadvantages – Raters biases, use of improper weighs by HR, does
not allow rater to give relative ratings

3. Forced Choice Method: The series of statements arranged in the

blocks of two or more are given and the rater indicates which
statement is true or false. The rater is forced to make a choice. HR
department does actual assessment. Advantages – Absence of
personal biases because of forced choice. Disadvantages –
Statements may be wrongly framed.

4. Forced Distribution Method: here employees are clustered

around a high point on a rating scale. Rater is compelled to
distribute the employees on all points on the scale. It is assumed
that the performance is conformed to normal distribution.
Advantages – Eliminates Disadvantages – Assumption of normal
distribution, unrealistic, errors of central tendency.

5. Critical Incidents Method: The approach is focused on certain

critical behaviors of employee that makes all the difference in the
performance. Supervisors as and when they occur record such
incidents. Advantages – Evaluations are based on actual job
behaviors, ratings are supported by descriptions, feedback is easy,
reduces recency biases, chances of subordinate improvement are
high. Disadvantages – Negative incidents can be prioritized,
forgetting incidents, overly close supervision; feedback may be too
much and may appear to be punishment.

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6. Behaviorally Anchored Rating Scales: statements of effective

and ineffective behaviors determine the points. They are said to be
behaviorally anchored. The rater is supposed to say, which behavior
describes the employee performance. Advantages – helps
overcome rating errors. Disadvantages – Suffers from distortions
inherent in most rating techniques.

7. Field Review Method: This is an appraisal done by someone

outside employees’ own department usually from corporate or HR
department. Advantages – Useful for managerial level promotions,
when comparable information is needed, Disadvantages – Outsider
is generally not familiar with employees work environment,
Observation of actual behaviors not possible.

8. Performance Tests & Observations: This is based on the test of

knowledge or skills. The tests may be written or an actual
presentation of skills. Tests must be reliable and validated to be
useful. Advantage – Tests may be apt to measure potential more
than actual performance. Disadvantages – Tests may suffer if costs
of test development or administration are high.

9. Confidential Records: Mostly used by government departments,

however its application in industry is not ruled out. Here the report
is given in the form of Annual Confidentiality Report (ACR) and may
record ratings with respect to following items; attendance, self
expression, team work, leadership, initiative, technical ability,
reasoning ability, originality and resourcefulness etc. The system is
highly secretive and confidential. Feedback to the assessee is given
only in case of an adverse entry. Disadvantage is that it is highly
subjective and ratings can be manipulated because the evaluations
are linked to HR actions like promotions etc.

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10. Essay Method: In this method the rater writes down the employee
description in detail within a number of broad categories like,
overall impression of performance, promoteability of employee,
existing capabilities and qualifications of performing jobs, strengths
and weaknesses and training needs of the employee. Advantage – It
is extremely useful in filing information gaps about the employees
that often occur in a better-structured checklist. Disadvantages – It
its highly dependent upon the writing skills of rater and most of
them are not good writers. They may get confused success depends
on the memory power of raters.

11. Cost Accounting Method: Here performance is evaluated from

the monetary returns yields to his or her organization. Cost to keep
employee, and benefit the organization derives is ascertained.
Hence it is more dependent upon cost and benefit analysis.

12. Comparative Evaluation Method (Ranking & Paired

Comparisons): These are collection of different methods that
compare performance with that of other co-workers. The usual
techniques used may be ranking methods and paired comparison
method.

 Ranking Methods: Superior ranks his worker based on merit, from

best to worst. However how best and why best are not elaborated in
this method. It is easy to administer and explanation.

 Paired Comparison Methods: In this method each employee is rated

with another employee in the form of pairs. The number of
comparisons may be calculated with the help of a formula as under.

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Future Oriented Methods

1.    Management by Objectives: It means management by objectives

and the performance is rated against the achievement of objectives
stated by the management. MBO process goes as under.
 Establish goals and desired outcomes for each subordinate
 Setting performance standards
 Comparison of actual goals with goals attained by the employee
 Establish new goals and new strategies for goals not achieved in
previous year.
 Advantage – It is more useful for managerial positions.
 Disadvantages – Not applicable to all jobs, allocation of merit pay
may result in setting short-term goals rather than important and
long-term goals etc.
2.    Psychological Appraisals: These appraisals are more directed to
assess employee’s potential for future performance rather than the past
one. It is done in the form of in-depth interviews, psychological tests, and
discussion with supervisors and review of other evaluations. It is more
focused on employees emotional, intellectual, and motivational and other
personal characteristics affecting his performance. This approach is slow
and costly and may be useful for bright young members who may have
considerable potential. However qualities of these appraisals largely
depend upon the skills of psychologists who perform the evaluation.

3.    Assessment Centers: This technique was first developed in USA

and UK in 1943. An assessment center is a central location where
managers may come together to have their participation in job related
exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work
samples. Assesses are requested to participate in in-basket exercises,

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work groups, computer simulations, role playing and other similar

activities which require same attributes for successful performance in
actual job. The characteristics assessed in assessment center can be
assertiveness, persuasive ability, communicating ability, planning and
organizational ability, self-confidence, resistance to stress, energy level,
decision making, sensitivity to feelings, administrative ability, creativity
and mental alertness etc. Disadvantages – Costs of employees traveling
and lodging, psychologists, ratings strongly influenced by assessee’s
inter-personal skills. Solid performers may feel suffocated in simulated
situations. Those who are not selected for this also may get affected.
Advantages – well-conducted assessment center can achieve better
forecasts of future performance and progress than other methods of
appraisals. Also reliability, content validity and predictive ability are said
to be high in assessment centers. The tests also make sure that the
wrong people are not hired or promoted. Finally it clearly defines the
criteria for selection and promotion.

4.    360-Degree Feedback: It is a technique which is systematic

collection of performance data on an individual group, derived from a
number of stakeholders like immediate supervisors, team members,
customers, peers and self. In fact anyone who has useful information on
how an employee does a job may be one of the appraisers. This
technique is highly useful in terms of broader perspective, greater self-
development and multi-source feedback is useful. 360-degree appraisals
are useful to measure inter-personal skills, customer satisfaction and
team building skills. However on the negative side, receiving feedback
from multiple sources can be intimidating, threatening etc. Multiple
raters may be less adept at providing balanced and objective feedback.

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CHAPTER 2

COMPANY PROFILE

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COMPANY PROFILE

Tata Consultancy Services Ltd was founded in 1968 by a division of Limited. Its early
contracts included providing punched card services to sister company TISCO (now Tata
Steel), fortune ranking 1 working on an Inter-Branch Reconciliation System for the Central
Bank of India, and providing bureau services to Unit Trust of India.
In 1975, TCS conducted its first campus interviews, held at IISc, Bangalore. The recruits
comprised 12 Indian Institutes of Technology graduates and three IISc graduates, who
became the first TCS employees to enter a formal graduate trainee program.
In 1979, TCS delivered an electronic depository and trading system called SECOM for the
Swiss company SIS SegaInterSettle. TCS followed this up with System X for the Canadian
Depository System and automating the Johannesburg Stock Exchange.  TCS associated with
a Swiss partner, TKS Teknosoft, which it later acquired.
In 1981, TCS established India's first dedicated software research and development centre,
the Tata Research Development and Design Centre (TRDDC) in Pune.
In 1985 TCS established India's first client-dedicated offshore development centre, set up for
clients Tandem.
In early the Indian IT outsourcing industry grew rapidly due to the Y2K bug and the launch
of a unified European currency, Euro. TCS created the factory model for Y2K conversion and
developed software tools which automated the conversion process and enabled third-party
developer and client implementation.
2000 to present.
On 25 August 2004, TCS became a publicly listed company.
In 2005, TCS became the first India-based IT services company to enter
the bioinformatics market.
In 2006, TCS designed an ERP system for the Indian Railway Catering and Tourism
Corporation.
In 2008, TCS's e-business activities were generating over US$500 million in annual
revenues.
In 2008, TCS undertook an internal restructuring exercise which aimed to increase the
company's agility.
TCS entered the small and medium enterprises market for the first time in 2011, with cloud-
based offerings. On the last trading day of 2011, TCS overtook RIL to achieve the highest
market capitalisation of any India-based company.
In the 2011/12 fiscal year, TCS achieved annual revenues of over US$10 billion for the first
time.

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In May 2013, TCS was awarded a six-year contract worth over   1100 crores to provide
services to the Indian Department of Posts.
In 2013 TCS moved from the 13th position to 10th position in the League of top 10 global IT
services companies
In July 2014, TCS became the first Indian company to cross the Rs 5 lakh croremark in
market capitalization.
Acquisitions

Employee
Countr s
Acquisitio Activitie Pric
Name y of (at Notes
n date s e
HQ acquisitio
n)

Access to
domestic
capability;
$33.9 continues to
CMC Limited 2001 October IT Services India 3,100
m be a
separately
run
company.

Airline BPO
Financial expertise in
Support 2004 January BPO India $5.1 m 400 Airline and
Services Hospitality
India (AFS) sector

Aviation
Software
Development 2004 March IT Services India $3.1 m 180
Consultancy
India (ASDC)

Phoenix 2004 May BPO India $13 m 400 Acquire

Global expertise in
Solutions insurance-
domain

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Employee
Countr s
Acquisitio Activitie Pric
Name y of (at Notes
n date s e
HQ acquisitio
n)

consulting

Acquire
blue-chip
European
customers
like
Ericsson,
IKEA,
Vattenfall
Swedish
and
Indian IT [
2005 May IT Services Sweden $4.8 m n/a Hutchison;
Resources
SITAR was
AB (SITAR)
TCS’
exclusive
partner in
Sweden and
a non-
exclusive
partner in
Norway.

[
Pearl Group 2005 October Insurance United $94.7 950 Acquired life
Kingdom m and pension
outsourcing
business
from Pearl
Group;
Domain
knowledge
of life and
pension
underwriting

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Employee
Countr s
Acquisitio Activitie Pric
Name y of (at Notes
n date s e
HQ acquisitio
n)

business.

TCS
acquired core
banking
solution
product
Financial (BANCS)
Core
Network and access to
2005 October Banking Australia $26 m 190
Services (FN 116
Product
S) customers in
35 countries;
FNS was an
existing
partner for
TCS.

Entry into
Latin
America;
2005 Banking
Comicrom Chile $23 m 1,257 Access to
November BPO
payment
processing
platform.

Tata Infotech 2006 IT Services India $259.2 3,600 The merger

February m of Tata
Infotech
added 15
new Fortune
500 clients
and
enhanced

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Employee
Countr s
Acquisitio Activitie Pric
Name y of (at Notes
n date s e
HQ acquisitio
n)

TCS’
systems
integration
and
infrastructure
service
capabilities.

Access to
TCS 2006
IT Services Australia $13 m 35 Australian
Management November
clients

Expand
product
portfolio by
acquiring
rights to
Quartz and
TKS- 2006 Banking Switzerlan $80.4
115 ownership of
Teknosoft November Product d m
Alpha and e-
portfolio,
enhanced
presence in
Switzerland
and France

Citigroup 2008 Captive India $512 m 12,472 TCS

Global December BPO acquired key
Services ofCitigroup Banking and
Limited Inc. Financial
Services
(BFS)
domain

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Employee
Countr s
Acquisitio Activitie Pric
Name y of (at Notes
n date s e
HQ acquisitio
n)

knowledge.

TCS had a
deal with
Captive Supervalu to
IT/BPO have their
Supervalu 2010 unit of Software
India $100 m 600
Services India September Supervalu Outsourcing
Inc. in to TCS and
India acquired
Supervalu
India.

Acquire
expertise in
High
High
Computationa Performance
Performanc
l Research 2012 August India $34 m 80 Computing
e
Laboratories (HPC)
Computing
applications
and Cloud
services

Alti SA 2013 April IT Services France $97.5 1,200 Access to

Mn blue-chip
French and
European
clients in
banking,
luxury,
manufacturin
g and
utilities

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Employee
Countr s
Acquisitio Activitie Pric
Name y of (at Notes
n date s e
HQ acquisitio
n)

sectors

Products and service

TCS and its 59 subsidiaries provide a wide range of information technology-related products
and services including application development, business process outsourcing, capacity
planning, consulting, enterprise software, hardware sizing, payment processing, software
management and technology education services. Its established software products are TCS
BaNCS and TCS MasterCraft
Service lines
TCS' services are currently organised into the following service lines (percentage of total
TCS revenues in the 2012-13 fiscal year generated by each respective service line is shown in
parentheses):

 Application development and maintenance (43.80%);

 Asset leverage solutions (2.70%);
 Assurance services (7.70%);
 Business process outsourcing (12.50%);
 Consulting (2.00%);
 Engineering and Industrial services (4.60%);
 Enterprise solutions (15.20%); and
 IT infrastructure services (11.50%)

Operations
As of 31 March 2013, TCS had 200 offices across 44 countries and 124 delivery centers in 21
countries. At the same date TCS had a total of 58 subsidiary companies.
Locations
TCS has operations in the following locations:
India: Ahmedabad,Bangalore, Baroda, Bhubaneswar,Chennai, Coimbatore, Patna, Delhi, Ga
ndhinagar, Goa, Gurgaon, Guwahati, Hyderabad, Bhopal , Indore, Jamshedpur,Kochi, Kolkat
a, Lucknow, Mumbai, Nagpur, Noida, Pune and Trivandrum
Africa: South Africa, Morocco

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Asia (excluding India): Bahrain, China, Israel, UAE, Hong

kong, Indonesia, Japan, Malaysia, Philippines, Saudi Arabia, Singapore, South
Korea, Taiwan, Thailand
Australia: Australia
Europe: Belgium, Denmark, Finland, France, Germany, Hungary, Iceland, Republic of
Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerlandand 
United Kingdom.
North America: Canada, Mexico and United States.
South America: Argentina, Brazil, Chile, Colombia, Ecuador, Peru and Uruguay.

Tata Consultancy
Services,Hyderabad 

The Tata Consultancy Services

campus in Lucknow 

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Tata Consultancy Services on

Grosvenor Square, London 
TCS BPS
TCS BPS (Business Process Services)is the third-largest India-based IT outsourcing company
(after Genpact). The BPS division had revenues of US$1.44 billion in the FY 2012-13 which
was 12.5% of the total revenue of TCS. TCS BPS has more than 45,000 employees which
serve over 225 million customers across 11 countries. The rate of attrition in BPS division
during the financial year 2012-13 was 19.5%.
In 2006, TCS won a $35 million contract from Eli Lilly and Company for providing data
management, biostatistics and medical writing services. 
In 2007, TCS won a major multi-year deal from Swiss pharmaceutical major Hoffmann-La
Roche. As per this deal, TCS will provide data management, biostatistics, clinical
programming and drug safety support to Hoffmann-La Roche's global pharmaceutical
development efforts.
Tata Consultancy Services has also opened a business process outsourcing facility in the
Philippines.

Tata Research Development and Design Centre.

TCS established the first software research center in India, the Tata Research Development
and Design Centre, in Pune, India in 1981. TRDDC undertakes research in Software
engineering, Process engineering and systems research. Researchers at TRDDC also
developed MasterCraft (now a suite of digitization and optimization tools) a Model Driven
Development software that can automatically create code based on a model of a software, and
rewrite the code based on the user's needs. Research at TRDDC has also resulted in the
development of Sujal, a low-cost water purifier that can be manufactured using locally
available resources. TCS deployed thousands of these filters in the Indian Ocean
Tsunami disaster of 2004 as part of its relief activities. This product has been marketed in
India as Tata swach, a low cost water purifier.

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CHAPTER 3

COMPANY HISTORY

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TCS is one of the largest private sector employers in India, and the second-largest employer

among listed Indian companies (after Coal India Limited).]
TCS had a total of 276,196 employees as of March 2013, of which 31% were women. The
number of non-Indian nationals was 21,282 as at March 31, 2013 (7.7%). The employee costs
for the FY 2012-13 were US$4.38 billion, which was approx. 38% of the total revenue of the
company for that period. In the fiscal year 2012-13, TCS recruited a total of 69,728 new staff,
of whom 59,276 were based in India and 10,452 were based in the rest of the world. In the
same period, the rate of attrition was 10.6%. The average age of a TCS employee is 28
years. The employee utilisation rate, excluding trainees, for the FY 2012-13 was 82%. TCS
was the fifth-largest United States visa recipient in 2008
(after Infosys, CTS, Wipro and Mahindra Satyam). In 2012, the Tata group companies,
including TCS, were the second largest recipient of H-1B visas.
SubramaniamRamadorai, former CEO of TCS, has written an autobiographical book about
his experiences in the company called The TCS Story...and Beyond.
As of Jun 2014, TCS has over 300,000 employees. It is world's third largest IT employer
behind IBM and HP.

Awards

 TCS ranked #1 for customer satisfaction in the UK.

 TCS was awarded the Business Standard's Company of the Year award for 2012.
 In 2012, the company won Gold Shield award for excellence in financial reporting
from the Institute of Chartered Accountants of India (ICAI).
 The company won 'Recruiting and Staffing Industry Leader of the Year' and ‘Best
Employer Brand’ awards at the World HRD Congress' annual meet in 2012.
 TCS was ranked #1 IT service provider for the Manufacturing in Europe, Middle East
and Africa (EMEA) by International Data Corporation in 2014.

Sponsorships
TCS is the title sponsor for Amsterdam Marathon, Bangalore 10k, New York City
Marathon and one of the sponsors of Berlin Marathon, Chicago Marathon, Boston Marathon,
Bangalore 10k marathon and Mumbai Marathon. TCS is a sponsor of Indian Premier
League team Rajasthan Royals since 2009. In addition, TCS provides Rajasthan Royals with
technology to help in analysis of player performance, simulation and use of RFID tags for
tracking the players’ fitness levels and for security purposes in the stadiums. TCS sponsors an
annual IT quiz for high school students called TCS IT Wiz.

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CHAPTER 4

OBJECTIVE OF
STUDY

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Objective of the study

1. To study Performance appraisal system adopted for further growth of the organisation
and the staff as well.
2. To study the appraisal system and reward system adopted for the staff at Emirates
Airline.
3. To study the factors affecting employee performance.
a. Organisation related factors
b. Job related factors.
c. Rewards related factors
d. Motivation related factors

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CHAPTER 5

HYPOTHESIS OF
THE STUDY

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Hypothesis of the study

The hypothesis taken under consideration of the study:-

The performance appraisal is helping in motivating employees
and giving opportunities to show their skills at optimum level.

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CHAPTER 6

SCOPE OF THE
STUDY

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SCOPE OF THE STUDY

 The rating given is confidential and out of the knowledge of their subordinates.
Accordingly, promotions and incentives are granted to the deserving ones.

 Rating given to the senior operational officers is done confidentially and whatever
information is filled in the self-appraisal form is not cross questioned.

 The sole objective for taking part in performance appraisal of senior officers at TCS
is to get awarded with promotions and incentives but the basic reason why
performance appraisal is conducted is to develop the performance and attitude.

 Senior officers of TCS airline follow the procedure of performance appraisal given by
the senior managers because they have monotony in their work and they have no time
for any innovation or creativity.

 It is concluded that the performance appraisal system adopted by

TCS is good as it is seen through the research, that approximately
85% of the employees are satisfied with the system adopted
through which the employees are getting motivated.
 Hence the the hypothesis taken under consideration of the study is
proved right that the performance appraisal is helping in motivating employees
and giving opportunities to show their skills at optimum level.

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CHAPTER 7

RESEARCH
METHODOLOGY

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Research
Research is the process of systematic & in depth study or search of any
particular topic, subject by the collection, presentation & interpretation of
relevant details or data. It is a careful search or injury into any subject or
subject matter, which is an endeavour to discover or to find out valuable
facts which would be useful for further application or utilisation. Generally
research is considered as an endeavor to arrive at the answer to
intellectual and practical problems through the application of scientific
methods to the knowledge universe. It is movement from known to
unknown. Clifford Woody has defined research in a specific manner.
According to him, “the research comprises of defining and redefining
problems, formulating hypothesis or suggested solutions, organizing and
evaluating data, making deductions and reaching conclusions and at last
carefully testing the conclusions to determine whether they fit the
formulating hypothesis”.

Whereas, research methodology is defined as a highly intellectual human

activity used in the investigation of nature and matter and deals
specifically in the manner in which data is collected, analysed and
interpreted.
The research methodology adopted for the study of the topic
“ANALYTICAL STUDY OF PERFORMANCE APPRAISAL SYSTEM
ADOPTED BY TATA CONSULTANCY SERVICES ”is analytical
methodology.

There are two source of data collection

Primary data Secondary data

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DATA COLLECTION
PRIMARY DATA COLLECTION METHOD
The study uses the primary data for the study like:-
 Questionnaires and Public Reviews.
SECONDARY DATA COLLECTION METHOD
The study also uses secondary sources of data for the study.
 Information gathered through Public Reports;
 Information gathered through surfing the internet;
 Information available on internet site.
The study of the topic “ANALYTICAL STUDY OF PERFORMANCE

APPRAISAL SYSTEM ADOPTED BY TATA CONSULTANCY

SERVICES” will be done through both the sources of data.

DATA COLLECTED THROUGH SECONDARY DATA

COLLECTION METHOD

PERFORMANCE APPRAISAL AT TATA CONSULTANCY

SERVICES
Performance appraisal in TCS, is done annually. For appraisal in the
TCS, a SELF APPRAISAL form is given to the staff members and they fill it
up. And then after according to their self observation and through the
appraisal form filled by the staff members rating is given to the members.
Accordingly, incentives and promotions are granted.
In TCS, the majority of the staff members submit all the information timely
to their superiors.
The head of H.R department in the TCS start with the following objectives
of-

1. Evaluating performance of employees.

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2. For making decision regarding promotion of employees.

3. Identifying the needs of training and development.

4. To evaluate the morals of the employees.

5. For the promotion of employees.

The appraisal takes place once in a year in the month of March-April the
appraisal report must be completed in all respects before the 30th of April
of every year of the preceding assessment year.
The appraisal report of the level below H1 shall be maintained by the
personal and Administration Department of the concerned unit, division,
head office.

 The performance should be rated with reference to the task or

activities assigned and/or undertaken and the results achieved
thereof., during the period under review, as can be identified and
described as follows:

 Outstanding- Consistently exceptional performance despite

constraints.

 Very good- High level performance.

 Fair- Generally meets expectations.

 Poor- Doesn’t meet expectations, requirement of job.

 Rating of attributes characterizing effectiveness of the appraise

should be, as far as possible, based on sufficient evidence that can
be adduced during the period under review and not on isolated
recent occasions; for imparting objectivity to the assessment, the
same should be based on facts and relevant or significant instances,

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both positive or negative. Each attribute should be taken

independently of the other ones.
 Attributes of performance-
 Job knowledge

 Job performance

 Dependability

 Behavior and Discipline, conduct.

 Supervision required.

 Regulatory and punctuality.

 Maintenance of records.

 Safety.

 Initiatives.

 Computer knowledge.

Performance and Development Reviews in TCS:

1. General Principles
2. Annual Performance And Development Review (Annual Review)
3. Interim Review
4. Performance Review On Transfer

1. General Principles

 All supervisors/managers are required to discuss performance with

each employee reporting to them, and rate such performance, once
per year. This is called the Annual Performance and Development
Review and should take place three months prior to the Annual
Remuneration Review.

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 During the Annual Performance and Development Review,

objectives should be agreed, competencies determined, and a
development plan documented for the forthcoming year.

 All supervisors/managers are also required to monitor employee performance

throughout the year. At least one Interim Review (and up to 3) should be conducted
during the review period.

 An employee should be notified of an upcoming performance review at least one

week in advance to allow time for preparation. Employee preparation is important to
help get maximum benefit from the review.

 Employees in Grades EK.01 and EK.02 are exempt from Interim Reviews unless the
relevant supervisor/manager wishes to conduct them for any reason.

 The level of performance, as recorded through the annual Performance and

Development Review, may have an impact in a number of areas including level of
merit pay awarded, career prospects, Company contribution towards training/study
and eligibility for profit share.

 Disciplinary letters may be issued to staff who are

rated ‘Unsatisfactory’, provided that during the interim review/s
efforts have been made to highlight performance shortfalls, and
corrective action/recommendations have been discussed and
documented.  Following a disciplinary letter, an interim review must
be conducted within 3 months to establish extent of improvement or
otherwise.  A development plan addressing the key concerns must
also be included in the next year’s PM Review giving fixed periods of
time when interim reviews will be conducted to monitor
performance.

2. Annual Performance And Development Review (Annual

Review)
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a)
 The employee’s performance is discussed in terms of progress
against the previously agreed objectives, competencies, and
development plan determined during the past year.

Exceptional
Very
Good 
Developing 
Unsatisfactory 

 New objectives should then be agreed for the year ahead and the competencies
should be reviewed to ensure they are still relevant to the job.

 Lastly, the development needs of the employee must be considered, and action to
address these needs should be agreed in the form of a development plan.

b) On completion of the Annual Review, the supervisor/manager should

complete the Performance and Development Review form, and must give
a copy to the employee. (There are two different forms available - one for
employees in Grades EK.01 and EK.02, and the other for employees in
Grades EK.03 and above). The completed Annual Review form, together
with any completed Interim Reviews forms, should then be forwarded to
the respective Manager Human Resources who, after review, will forward
the form to the employee's personal file.

c) Employees who believe they have not been treated fairly during the
review process may log their grievance on the Annual Review form, and
discuss the issue with their indirect supervisor (i.e. the manager of the
designated supervisor). Where an indirect supervisor is unable to resolve
such a situation, the respective Manager Human Resources should be
involved.

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3. Interim Review :

 All employees (except employees in Grades EK.01 and EK.02)

should have at least one Interim Review during the year which
should take place between the specified period.

 The Interim Reviews are not formally rated as they are designed to
facilitate discussions about employee progress during the year,
rather than rate performance.

 The purpose of the Interim Review is to discuss progress against the

agreed objectives, competencies and development plan determined
during the Annual Review. Should any corrective action or changes
to the agreed performance standards/targets be required, this
should be discussed and documented on the Interim Review form,
and a copy must be given to the employee. The completed form
should be attached to the Annual Review form and forwarded to the
respective Manager Human Resources at the completion of the
review period. 

4. Performance Review On Transfer :

 When an employee is transferring from one department/job to

another during the review period, the releasing
supervisor/manager must complete the current Annual Review form
and discuss this with the employee, on or prior to the date of
transfer.

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CHAPTER 8

DATA ANALYSIS
AND
INTERPRETATION

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DATA COLLECTED THROUGH PRIMARY DATA COLLECTION

METHOD
DATA ANALYSIS AND INTERPRETATION
QUESTIONNAIRE
Q1) Are you aware of the performance appraisal system adopted
by TATA CONSULTANCY SERVICES?
Yes/No

20%

Ye
s
N
o
80%

There were 80% of the respondents who framed a positive answer

& were aware of the performance appraisal system adopted in
TATA CONSULTANCY SERVICES.

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Q2) Are the employees satisfied with appraisal system adopted

currently?

Yes/No

13%

Ye
s

88%

There were 87% of the respondents who were satisfied with the
current performance appraisal system adopted in TATA
CONSULTANCY SERVICES.

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Q3) What ratings among best, good and worst would you give to
TCS for the appraisal system adopted?

BEST
GOO
D

45% of the employees rated best to the appraisal system adopted

for them, where as 35% rated good.

Q4) Do you think that the performance appraisal system helps to

provide a congenial atmosphere, whereallareencouragedto
perform better?

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21%

Ye
s
79%

79% of the respondents agreed that the performance appraisal

system provided a congenial atmosphere which encouraged
them to perform better.

Q5) Do you think performance appraisal helps people to set and

achieve meaningful goals?

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a.Yes
b. No

25%

Yes
75% No

Giving response to this question 75% of the employees said yes,

that the performance appraisal helps to set and achieve
meaningful goals. 25% were not in favor that the appraisal
system helps in setting meaningful goals.

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Q6) Do you think performance appraisal give constructive

criticism in a friendly and positive manner?

a.Yes
b. No

29%

Yes
71% No

71 % of the respondents agreed that performance appraisal

gives a constructive criticism in a friendly and positive manner
and 29% denied that it gives a constructive criticism in a
positive way.

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Q7) Do you think performance appraisal improves motivation and

job Satisfaction?

a.Yes
b. No

28%

Ye
s
73% No

72 % of the respondents said “Yes they think performance

appraisal improves motivation and job Satisfaction”.

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Q8) Do you think performance appraisal helps to change

behavior of Employees?

a.Yes
b. No

33%

Yes
68% No

67 % of the respondents agreed to the fact that the

performance appraisal helps to change behavior of the
Employees and 33% of them do not believe that it helps to
change behavior of employees.

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Q9)Do you feel that the rewards are given according to your
performance?

10%

Yes
No
90%

a.Yes
b. No

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90 % of the respondents said that rewards are given according

to their performance and 10% of them claimed that the rewards
given to them are not according to their performance.

Q10) Are you satisfied with the criteria adopted to appraise you?

a.Yes
b. No

10%

Yes
No
90%

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90 % of the respondents were satisfied with the criteria adopted

to appraise them and 10% of them were not satisfied.

Q11)Is the appraisal system able to show the areas in which a

person needs improvement?

a.Yes
b. No

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10%

Yes
No
90%

90% of the respondents agreed and showed a positive

response to the question, while 10% denied it.

Q12) Do you agree that the performance appraisal system

adopted by the firm is able to gauge the real performance of
employee?

a.Yes
b. No

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13%

Yes
87%
No
88% of the

respondents feel that the performance appraisal system adopted

by the firm is able to gauge the real performance of the employee
and 13% of them do not agree to it.

CHAPTER 9
FINDING
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Finding

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 fill it. Simultaneously a form is given to their colleagues
to rate them. A rating is given to the employee after taking in
consideration 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 regarding

appraisal well within time to their supervisors.

6.All officers agree that performance appraisal system helps them to

perform better.

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CHAPTER 10

OBSERVATION OF
STUDY

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Observation of study

 There are a number of potential benefits of organizational

performance management conducting formal performance

appraisals (PAs).

 A rating is given to the employee after taking in consideration

the self appraisal form as well as the rating given by the staff
members.

 Should any corrective action or changes to the agreed

performance standards/targets be required, this should be

discussed and documented on the Interim Review form..

 In TCS, the majority of the staff members submit all the

information timely to their superiors.

 by TCS is good as it is seen through the research, that

approximately 85% of the employees are satisfied with the system

adopted through which the employees are getting motivated.

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CHAPTER 11

CONCLUSION
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Conclusion
 At TCS, performance appraisal is conducted annually. The immediate boss who has
been observing the immediate subordinate throughout the year rates him according to
the self appraisal form filled and also through personal observation under following
factors:

a) Quality of work

b) Quantity of work

c) Job knowledge

d) Dependability

e) Innovation and creativity

f) Ability to learn

g) Attendance

h) Reaction to criticism

i) Discipline

j) Customer relations

k) Subordinate development

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CHAPTER 12

LIMITATION OF
STUDY

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Limitation of the study

1. The data obtained from the company during the research strictly pertains to the company.
2. The research done is restricted to the company. There is no role of any other source other
than Tata Consultancy Services in providing the information.
3. Also the confidential information is not disclosed by the company as per the policy of the
company.

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CHAPTER 13

SUGGESITION

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Suggestions
 Establish goals and desired outcomes for each subordinate
 Setting performance standards
 Comparison of actual goals with goals attained by the employee
 Establish new goals and new strategies for goals not achieved in
previous year.

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CHAPTER 14

BIBLIOGRAPHY

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Bibliography

BOOKS :

 Human Resource Management- VSP Rao

 Human Resource Management- K Ashwathappa

WEBSITES :
 www.TCS.com

OTHER:
 Employees of TCS.
 Newspapers, magazines.
 Annual reports.

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CHAPTER 15

ANNEXURES

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ANNEXURE

QUESTIONNAIRE

1. Since how long you have been working in this organization?

□ 0-1
□ 1-5
□ 5-10
□ 10-above
2. I am always willing to listen to other’s opinions, but I also want to give them mine?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true
3. If people don’t respect my opinion, I keep it to myself?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true
4. When conflicts arise, I usually stand on my principles?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true
5. I am always willing to consider other people’s opinions, but I make my own decisions?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true

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6. When a conflict occurs, I tend to back out of the situation and do something else?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true
7. During a conflict, I try to find some compromise?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true
8. I like to ask others for their opinions and try to find ways to co-operate?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true
9. When there is a conflict, I make a point of presenting my view, and I invite others to do the
same?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true
10. I think it is more important to get along than to win an argument?
□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true

11. I try to avoid people who have strong opinions?

□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true
12. I avoid discussing my differences with others?
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□ Definitely true
□Tends to be true
□ Tends not to be true
□Definitely not true

13. When I observe people in conflicts in which anger, threats, hostility, and strong opinions
are present, I tend to?
□ Involve
□ Observe
□ Mediate
□ Leave at earliest
14. When I see a serious conflict developing between two people who are relatively
unimportant to me, I tend to?
□ Express my disappointment
□ Attempt to persuade them to resolve
□ Simply watch
□ Leave the scene
15. When communicating with someone, with whom I am having serious conflict, I?
□ Express my disappointment
□ Attempt to persuade them to resolve
□ Simply watch
□ Leave the scene

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