It is a PPT which describes briefly about Performance appraisal process of 5 companies. they are - TCS, GENERAL ELECTRIC, SAP, BIG BAZAAR and TITAN. These 5 companies, which process they have adopted for appraisal and why it is good for the company?

1. PERFORMANCE MANAGEMENT SYSTEM
OF
5 COMPANIES
Submitted To –
Prof. ELIZABETH MATHEW
Submitted By –
SHWETA BEBARTA
ISB&M, Bangalore

2. What is Performance Appraisal?
Performance Appraisal (PA) is the process that is
used to evaluate the personality, performance and
potential of the employees of an organization.
It is a process of evaluating and communicating to
an employee how he or she is performing the job
and establishing a plan for improvement.
Hence, it is a system of review and evaluation of job
performance to assess accomplishments and to
evolve plans for development.
Copyright - ManagementStudyGuide.com

3. SAP
(UTOPIAa partner
company)

4. Employee Performance Review •
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•
•
•
•
Believe in One to One Manager Interaction
Rating Method is used.
Rating will be given by manager and by employee.
It will be done once a year.
Final appraisal of an employee will be decided by HR.
Employee Performance Review Form will be given to individual
employees. Client appreciation mail or any other attachment can be
added.
• If not satisfied, then again one to one interaction will be done with
HR and Manger.
• Final payroll will be decided in the next month.

5. RATING
DESCRIPTION
Significantly
exceeds
performance
requirements
Exceeds
performance
requirements
Meets
performance
requirements
DETALIED INFORMATION
RATING
Performance levels and accomplishments far exceed normal
expectations. This category is reserved for the employee who
truly stands out and clearly and consistently demonstrates
exceptional accomplishments in terms of quality and quantity of 5
work that is easily recognized as truly exceptional by others
Performance
frequently
exceeds
job
requirements.
Accomplishments are regularly above expected levels.
Performance at a level beyond expectations is sustained, and 4
the quality of work is uniformly high
Performance clearly and fully meets all the requirements of the
position in terms of quality and quantity of work. It is described
as good, solid performance, with thorough and on-time results.
3
While minor deviations may occur, the overall level of
performance meets all position requirements
Performance is noticeably less than expected. The employee
Marginally meets generally meets most job requirements, but struggles to fully
performance
meet them all. The need for further development and 2
requirements
improvement is clearly recognized
Unacceptable
performance
Performance must improve substantially within a reasonable
period of time if the individual is to remain in this position. The
1
employee is not meeting the job requirements
RATING VIEW
Very Strong
Strong
Neither a Strength
nor
a
Development
need
Some
Improvement
Needed
Major
Improvement
Needed

6. CORE COMPETENCIES ARE –
• Idea Leadership
• Handling Complexity
• Superior Execution
• Drive for Results
• Influencing/Negotiating
• Attracting & Developing Talent
• Team Leadership
• Professional Maturity
• Business Savvy
• Risk Taking
• Adaptability
• Build & Sustain Relationships
• Customer Focus
• Diversity
•
SELF and MANGER EVALUATION FORM is also there in Employee Performance
Review Form. In this, goals are given with percentage weightage like –
a. Achieve Excellence in Project Delivery
50%
b. Achieving Excellence in Client Facing Skills
25%
c. Standardized Processes & Methodology for Key Service Offerings 25%

7. Suggestion’s
From my point of view, Rating Method is good to adopt because
–
• It is customer driven company which provide solutions to
different sectors.
• Fast and Time saving method.
• Give motivation while an employee can discuss their
achievement by some attachment.

8. GENERAL ELECTRIC

9. •
General Electric, American multinational corporation incorporated in New York and
headquartered in Fairfield, Connecticut in the United States. In 2011, GE ranked among
the Fortune 500 as the 26th-largest firm in the U.S. by gross revenue, as well as the 14th most
profitable.
•
GE's divisions include GE Capital, GE Power & Water, GE Oil & Gas, GE Aviation, GE
Healthcare, GE Transportation, and GE Home & Business Solutions.
•
“Management by Objective” and “Rating Scale Method” are the methods which are used in
Performance Management System.
•
Online system of EMS (evaluation measurement system) portal is created.
•
In performance evaluations, GE executives focus on one’s ability to balance risk and return and
deliver long-term results for shareowners.
•
Thousands of people from every level of the company are trained at the Jack F. Welch
Leadership Center.
•
•
•
3 Participant will be there in EMS. I.e. Employee, Manager and Senior Manager.
EMS will be done once in a year and reviewed quarterly.
EMS verticals are defined as1. Leadership
2. Team Work and Pipeline
3. Quality
4. Cost.

10. Evaluation Measurement System
•
•
•
•
•
•
•
•
•
•
•
•
•
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Employee need to set goals yearly in the month of April.
Employee has to select all 4 verticals and under each vertical, choice of objectives and
challenge's are given and employee has to choose.
One of the additional goal can be set by the employee.
Quarterly Meeting will be done by immediate manger and it will be of purely “Professional
Discussion”. Employees has to take initiative of its own and invite manager for this discussion.
Quarterly Meeting will be in June, September and December. In meeting, Graph
Representation of employee performance will be shared by manager quarterly. And Guidelines
and problem faced in the critical situation to be discussed.
Training session will be given to fill the online EMS.
31st December is the date set to submit EMS Form w.r.t achieve goals and objectives in the
entire year. Overall summary should be only in 2000 words.
For every question, employee has to rate his own in Rating Line – 1,2,3,4,5.
Training plan will be discussed according to the rating.
EMS Form will be proceed to Manger and it has to be approved. Manger has the right to
comment on employee strength, Weakness, Productivity and Goals, but no discussion with the
employee.
in the whole scenario, Employees cannot see the manger comment and then, EMS Form will
revert to Senior manger for approve.
After whole process, Senior Manger will release the EMS Form Portal to access for employees.
In this, Rating will be given to the employees w.r.t to all 5 verticals. And by putting
formula, overall rating is given to the employee.
If satisfied or not, discussion will be there. Feedback and Comments will be given by immediate
manger. It will be kind of one and half an hour discussion.
In the month of April, Salary will be incremented.

11. Suggestion’s
• From my point of view, adoption of “Management by Objective” and
“Rating Scale Method” is perfect for GE because –
• GE believes in Employee Driven Process.
• Transparent Process
• No partiality will be seen in the whole process. Fair decision will be made.
• Employee can stand of his own words for its objectives and goals.

13. Tata Consultancy Services Limited (TCS) is a global IT services, business solutions
and outsourcing company. Its a subsidiary of the Tata Group. It is Ranked 20 in the list
of top companies of India, by Fortune India 500magazine. TCS conducts two
appraisals:
1. At the end of the year
2. At the end of a project.
Appraisals are based on Balanced Scorecard, which tracks the achievement of
employees on the basis of targets at four levels  Financial perspective - contribution in terms of revenue growth, cost reduction and
improved asset utilization.
 Customer perspective - Looks at the differentiating value proposition offered by the
employee.
 Internal perspective -Refers to the employee’s contribution in creating and
sustaining value.
 Learning and growth - are self-explanatory.
TCS can review and design incentive plans which could include any of the following:
• Annual Bonus Plans
• Short-term Incentive Plans
• Long-term Incentive Plans
• Equity Incentive Plans

14. 




TCS adopted ECONOMIC VALUE ADDED MODEL to focus on continuous
improvement rather than short term goals and also to motivate employees. EVA
measured operating and financial performance of the organization and the
compensation of all employees was linked to it. It has 4 M’s –
Measurement
Management System
Motivation
Mindset
SUGGESTION’s
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From my point of view, BALANCE SCORECARD is not the good method. It does not
give the clear picture of how performance management process is done.
I should suggest that EVA model should be removed because it mainly
concentrated on return on investments, due to which the growth of TCS could be
restricted.
Attrition Rate is more in IT Industry.
Should get some good management ideas.

15. TITAN

16. •
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Titan Industries is the world's fifth largest watch manufacturer and India's leading
producer of watches under the Titan, Raga, Orion, Nebula, Octane etc.
TITAN believes that success of PMS shall depend on whole HRM Process.
Recruitment process acts as an important support for success of PMS.
It designs in such a way that promotes a two way “dialogue”.
Objectives of PMS to create role clarity and clarity performance expectations and
measure at individual , group and organizational levels.
To provide job guidance, feedback and counseling to build upon the strengths and
areas of improvement
To identify training n development needs of the employees.
To encourage superior performance measuring stretch goals.
PMS has 4 steps •
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Performance planning – it involves identifying KRA, Understanding critical factors
and drawing the development plan
Coaching
Performance review meetings
Rewards and Recognition
Titan has introduced 360 degree leadership development program for senior
management.

17. SUGGESTION’s
From my point of view, 360 degree method is not the good
method at present scenario because –
1. 360 degree method is not effective
2. Takes lot of time
3. It is not accurate feedback and biased

18. BIG BAZZAR

19.  Big Bazaar conducts the performance appraisal in the month of April annually.
 Based on their performance, increments will be given in their pay.
 If an employee achieves or exceeds the target given along with their team will be
provided with attractive cash and incentives.
 Big Bazaar specifically targets working women and home makers who are the
primary decision makers.
 Future group has its own training division for all its employee named as- Future
Learning and Development Limited. Employees will be given 20 days of training.
 360 Degree appraisal method is used for low level employees, not for managers or
high level employees.

20. SUGGESTION’s
From my point of view, 360 degree is not effective in India.
People still hesitate to use this method because –
1. The organizations are ruled as per hierarchy
2. subordinates do not open up about their boss.
3. Managers Nature
4. Power and Politics exists in organization
5. Majorly, vertical communication (Top to Down) exists.