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Good Morning ♫♫♫♫!!!
Appraisal: IT Industry
-SUDIP PAUDEL
Overview
 1.) Assessing various appraisal methodology in IT industry
 2.) Trend for salary hike in last 5 years in IT industry
 3.)Trend for salary revision for next three years
 4.) linkage between appraisal system and attrition rate
of the IT industry
 5.) Views/recommendations
What is Performance Appraisal?
 Fulfillment of job requirement
 Continuous development of human resources.
 Potential
 Periodic process
 Both quantitative and qualitative evaluation of job performance
Features of Performance Appraisal
Appraisal methodology popular in IT industry
1.) 360 degree feedback system
2.)Bell curve based performance appraisal system
A.) 360 degree Performance appraisal
♪Comprehensive feedback
♪ Highly effective performance evaluation tool
♪ Very reliable
♪ popular
♪ Realistic evaluation
Features of 360 degree feedback system
B.) Bell curve based performance
appraisal system
Features of Bell curve based appraisal
♪ Compares employees performance relative to others
♪ Segregation of workforce
♪ Helps to differentiate individuals
♪ Well accepted
New trends in Appraisal…..
“Only in our dreams are
we free, the rest of the
time we need wages.”
-Sir Terry Pratchett
Trend for salary hike in last 5 years in IT
industry
For the past five years, average salary hikes in Indian IT sector have been
around 10 percent
 Regional practices in the economy
 Industry/company performance
 Compensation policy of the institution
 Supply and demand of labour,and
 Individual’s job performance
Trend for salary revision for next three
years
 Employee with skill in verticals like cloud, mobility, social media and
analytics will get huge compensation
 Salary rate and incentives will be high for top performers
 Average Industry salary is expected to grow at an annual rate of 6-9%
 Salesforce employee salary could be determined by the revenue they
bring from client
Linkage between appraisal system and
attrition rate in IT industry
 Attrition management has become the strategic focus and compelling
necessity of business today.
 The toughest concern for an HR manager is however the high attrition rate
 IT industry has one of the highest attrition rate. Appraisal should be done
fairly so that conflict , dissatisfaction and attrition rate gets reduced.
 The share of attrition due to dissatisfaction in appraisal is also growing as
techie are finding better opportunities at mushrooming startups and
poaching is always there.
Problems with current appraisal process
 People are inspired and motivated by positive, constructive feedback- and the
“appraisal” process almost always works against this.
 The most valuable part of an appraisal is the “development planning” conversation
–what can one do to improve performance and engagement- and this is often left
to a small box on the review form
 Employees need and want regular feedback(daily, weekly), so a once a year review
is not only too late but its often a surprise. Regular coaching is the key to alignment
and performance.
Views/ Recommendations:-
 Not only performance but also potential should be considered during
appraisal.
 Focus should be given to team performance also
 We have a shortage of key talent and the keys to success now focus on
regular alignment, coaching, creating passion and engagement, and
continuous employee development.
 Set and reset goals frequently. Companies that set performance goals
quarterly generates 31% greater returns from their performance process
than those who do it annually, and those who do it monthly even get
better results.
 Companies thrive by building skills-so in addition to encouraging managers
to produce good work, HR should incent them to produce a good talent as
well.
One more thing………
I never criticize anyone. There is nothing that so kills the ambition of a person
as criticisms from superiors. I believe in giving a person incentive to work.
The ultimate way to develop the best that is in a person is by appreciation
and encouragement - Charles M. Schwab
THANK YOU
Annexure:-
 Citehr.com
 Quora.com
 articles.economictimes.indiatime.com/
 Slideshare.net/
 Human Resource Management text and cases by VSP Rao
 Forbes.com
 Info.shine.com
 Wikipedia.com

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Performance Appraisal in IT industry

  • 3. Overview  1.) Assessing various appraisal methodology in IT industry  2.) Trend for salary hike in last 5 years in IT industry  3.)Trend for salary revision for next three years  4.) linkage between appraisal system and attrition rate of the IT industry  5.) Views/recommendations
  • 4.
  • 5. What is Performance Appraisal?
  • 6.  Fulfillment of job requirement  Continuous development of human resources.  Potential  Periodic process  Both quantitative and qualitative evaluation of job performance Features of Performance Appraisal
  • 7. Appraisal methodology popular in IT industry 1.) 360 degree feedback system 2.)Bell curve based performance appraisal system
  • 8. A.) 360 degree Performance appraisal
  • 9. ♪Comprehensive feedback ♪ Highly effective performance evaluation tool ♪ Very reliable ♪ popular ♪ Realistic evaluation Features of 360 degree feedback system
  • 10. B.) Bell curve based performance appraisal system
  • 11. Features of Bell curve based appraisal ♪ Compares employees performance relative to others ♪ Segregation of workforce ♪ Helps to differentiate individuals ♪ Well accepted
  • 12. New trends in Appraisal…..
  • 13. “Only in our dreams are we free, the rest of the time we need wages.” -Sir Terry Pratchett
  • 14.
  • 15. Trend for salary hike in last 5 years in IT industry For the past five years, average salary hikes in Indian IT sector have been around 10 percent  Regional practices in the economy  Industry/company performance  Compensation policy of the institution  Supply and demand of labour,and  Individual’s job performance
  • 16. Trend for salary revision for next three years  Employee with skill in verticals like cloud, mobility, social media and analytics will get huge compensation  Salary rate and incentives will be high for top performers  Average Industry salary is expected to grow at an annual rate of 6-9%  Salesforce employee salary could be determined by the revenue they bring from client
  • 17.
  • 18. Linkage between appraisal system and attrition rate in IT industry  Attrition management has become the strategic focus and compelling necessity of business today.  The toughest concern for an HR manager is however the high attrition rate  IT industry has one of the highest attrition rate. Appraisal should be done fairly so that conflict , dissatisfaction and attrition rate gets reduced.  The share of attrition due to dissatisfaction in appraisal is also growing as techie are finding better opportunities at mushrooming startups and poaching is always there.
  • 19. Problems with current appraisal process  People are inspired and motivated by positive, constructive feedback- and the “appraisal” process almost always works against this.  The most valuable part of an appraisal is the “development planning” conversation –what can one do to improve performance and engagement- and this is often left to a small box on the review form  Employees need and want regular feedback(daily, weekly), so a once a year review is not only too late but its often a surprise. Regular coaching is the key to alignment and performance.
  • 20. Views/ Recommendations:-  Not only performance but also potential should be considered during appraisal.  Focus should be given to team performance also  We have a shortage of key talent and the keys to success now focus on regular alignment, coaching, creating passion and engagement, and continuous employee development.  Set and reset goals frequently. Companies that set performance goals quarterly generates 31% greater returns from their performance process than those who do it annually, and those who do it monthly even get better results.  Companies thrive by building skills-so in addition to encouraging managers to produce good work, HR should incent them to produce a good talent as well.
  • 22. I never criticize anyone. There is nothing that so kills the ambition of a person as criticisms from superiors. I believe in giving a person incentive to work. The ultimate way to develop the best that is in a person is by appreciation and encouragement - Charles M. Schwab
  • 24. Annexure:-  Citehr.com  Quora.com  articles.economictimes.indiatime.com/  Slideshare.net/  Human Resource Management text and cases by VSP Rao  Forbes.com  Info.shine.com  Wikipedia.com