PERFORMANCE APPRAISAL:

Performance appraisal means evaluating an employee’s current and/or past performance

relative to his or her performance standards. It also requires setting performance standards,
and assumes that the employee receives the training, feedback, and incentives required to
eliminate performance deficiencies. Stripped to its essentials, performance appraisal always
involves the three-step performance appraisal process:
(1) setting work standards
(2) assessing the employee’s actual performance relative to those standards (this often
involves some rating form)
(3) providing feedback to the employee with the aim of helping him or her to eliminate
performance deficiencies or to continue to perform above par.
PERFORMANCE APPRIASAL AT DABUR INDIA LIMITED:
The appraisal in the organisation is divided into 2 ways for convenience. They are:
1)WRF: front line level
2)MRF: senior level and upper middle level
But the process carried down is same.
The process:
1)Collecting data and feedback by “worker Revise form.
2)Sending it to head of department for rating scale.
3)Cross question by personal manager.
4)Appraisal is sent to general manager for final decision.
5)Order implementation in the form of increment & training.
In brief:
1) Collecting data and feedback by worker Review form: This is the first step of
performance appraisal process. In this form, there are personal data, job data and
period of appraisal is described.
2) Appraisal procedure: Thus we see that the format of (WRF) through the first part of it
(personal data) initiating officer taken information about the background of worker.
After it they send it to head of department. Send WRF to HOD for appraisal ratings:
After taking personal data initiating officer sends WRF to the head of department.
HOD appraises and gives rating But HOD gives rating on the basis of feedback of
engineers and line manager who live daily with worker and observe they (engineers
and line manager) gives their views and information to the head of department. After
taking the information, head of department rates to the worker on the basis of there
parameters.
• Attendance
• Punctuality
 • Discipline
Level of involvement & participation, Health and energy, Loyalty towards worker &
organization these are appraised by HR department and given to the HOD. Then HOD
takes information by line manager, & engineers and rates worker on these parameters:
• Job knowledge
• Quality of work
• Productivity
• Tidiness of work palace
• Safety consciousness
• Dependability
• Adaptability
• Attitude towards seniors and co-workers
• Sincerity and dedication
• Responsibility & Accountability
• Innovation and creativity
• Handling of company. On the basis of these the HOD gives rates to worker.
3) Cross questions and identifying errors by personal manager: After the rating the
workers the WRF is returned back to the initiating officer. Where the personnel
manager finds out the errors by cross questions. He asks to the head of department
that he rated worker on which basis. He identifies the reasons on the basis of which
HOD rated to the worker if reasons are wrong and depends upon the personal relation,
their own view. But in general cases the ratings of the HOD would be on satisfactory
level and personal manager also follows that ratings.
4) Appraisal sends to the GM for final: when the personnel manager or initiating officer
checks the ratings and sends it to the general Manager. General Manager checks the
ratings and gives his own view. He firstly sees the 5 ratings and checks their
correctness then gives order of increment or training. He gives order on the basis of
ratings. These ratings decide the overall evaluation percentage. If HOD rated a worker
as effective, means between 40% to 75%. On the basis of this percentage general
manager recommends increment of training process for the employee. His
recommendation will be last and final
5) Recommendation /Comments of employee, Order recommendation implementation:
When general manager passes the WRF with recommendation the initiating officer
starts to implement it. Thus, these are the steps, which are mainly followed in the
Dabur India Limited to appraise the worker.
6) Discussion of appraisal with the workers.
APRAISAL RATING SCALE:
91 and above Exception
76-90 Highly Effective
41-75 Effective
20-40 Adequate
Below 20 Unacceptable
PERFORMANCE APPRIASAL AT NESTLE:
Nestle HR gives utmost priority and importance particularly in this field since It provides a
way to help identify areas for performance enhancement and to help promote professional
growth. Open lines of communication throughout the year helps to make effective working
relationships. Each employee inside Nestle is entitled to a thoughtful and careful appraisal.
The success of the process depends on the supervisor's willingness to complete a constructive
and objective appraisal and on the employee's willingness to respond to constructive
suggestions and to work with the supervisor to reach future goals.
Performance Factors:
Nestle’s seven performance factors are:
• Communication
• Customer Service
• Cooperation/Teamwork
• Quality and Nutrition
• Productivity/Core Organizational/Business Skills
• Job Knowledge/Technical Proficiency
• Professionalism
The three additional Performance Factors have been identified for employees in positions
with supervisory responsibility are:
• Performance Management
• Leadership
• Unit Achievement/Fiscal Management
Performance Appraisal Rating: In this method, the performance appraisal rating is calculated
and the points assigned in the performance factor section are totalled and then divided by the
number of performance factors to determine the overall performance appraisal rating.
Appraiser’s Overview Evaluation: The Appraiser’s Overview Evaluation is a composite
statement of the performance. In this section the manager writes a narrative overview of the
workers performance during the review period.
Reinforcement/ Behavior Modification Theory: Measurement of employee job performance:
When negative consequences are attached directly to undesirable behavior Positive
Reinforcement: When rewards are tied directly to performance.
Reward and Employee Relations Team: As a member of Reward and Employee Relations
Team, employees join one of two expert sub-teams, each with specific responsibility for
business-wide strategic and operational remits. As part of the Employee Relations sub-team,
it provides business-wide advice and guidance to line managers and the HR community on
individual employee relations matters and to HR Business Partners on broader employee
relations and change management issues, as well as developing and implementing policies
and procedures in this area and undertaking relevant project work. As part of the Reward sub-
team, on the other hand, it focuses on maximizing return on investment to deliver Reward
that will motivate the employees to perform at the highest level as well as managing overall
Reward principles and processes including base salary, incentives and Flexible Reward. Such
motivating strategies are:
 Performance Driven - The level of employees Reward is linked to the performance; hence
the highest performers will see the greatest Reward. There is also a direct link between the
performance of the business and the Reward we're able to offer
 Competitive - Nestle benchmark all aspects of Reward to ensure that it offers all its
employees a competitive Reward package
 Inclusive - Nestle Reward program is designed to reflect the valuable contribution which
every employee makes, not just senior managers
 Flexible – They have made their top priority to allow its employees to tailor the Reward
they receive to their circumstances, whenever possible or practical.
PERFORMANCE APPRAISAL AT ICIC BANK:
The bank employs a management-by-objectives approach. In this strategy, the subordinate, in
collaboration with the supervisor, develops short-term objectives, which are then followed by
specific activities that he must achieve. Finally, goals have been developed and are action-
oriented. The goals specified are explicit, quantifiable, attainable, reviewable, and time-
bound, and they are most crucially connected with the organization's goals. The actions are
jointly reviewed by the subordinate and his supervisor at the conclusion of a set time period.
The goals are adjusted or altered for the following period of time based on the subordinate's
performance. As a result, the MBO is a performance-oriented system.
A well-thought-out MBO system has several advantages. It provides a relationship between
the individual's and the bank's performance. It is simple to put into action since people who
carry out the plan also help to set it up. Each employee is made aware of his or her
responsibilities in the bank. As a result, capacity and skill are better used. It encourages
improved communication and exchange of information. It contains recommendations for self-
assessment as well as superior evaluation against predetermined tasks and objectives. It
makes guiding and counselling easier.
PERFORMANCE APPRAISAL AT ACCENTURE:
CDP: Comprehensive development plan ARD: Annual Resource-Development
Every year, the Accenture performance period runs from June through May. At the start of
each performance period, all employees of the organisation, regardless of their position, must
set the objectives and targets. Employees use an online programme called "My Performance
Tool" to define goals and objectives for their roles and projects. The supervisor reviews the
objectives, which are then finalised by both the employee and his or her supervisor. The
employee is evaluated based on whether or not he accomplishes these goals towards the end
of the year. If the employee is happy with the feedback, he can click the accept button in the
tool to accept it.  If he is not satisfied with the feedback then he can request for a one on one
meeting with his supervisor to raise his concerns.
After all workers have received feedback, each employee will be given a relative rating based
on their performance throughout the performance period and whether or not their aims and
objectives were accomplished. Employees are informed of their evaluations and, if
applicable, promotions in August. Each employee's evaluation is based on his or her rating.
The evaluation takes place in September, at the start of the Accenture fiscal year. Every
employee must construct a targeted strategy for performance enhancement, performance
improvement, and career growth based on feedback from the previous year. Before deciding
on a future professional development plan, the individual should meet with a career
counsellor.
PERFORMANCE APPRAISAL AT TCS:
TCS conducts 2 appraisals:
1)At the end of the year.
2) At the end of the project.
Appraisals are based on Balanced Scorecard, which tracks the achievement of employees on
the basis of targets at four levels —
1) financial
2) customer
3)internal
4)learning and growth
The financial perspective quantifies the employee’s contribution in terms of revenue growth,
cost reduction, improved asset utilization and so on; The customer perspective looks at the
differentiating value proposition offered by the employee; the internal perspective refers to
the employee’s contribution in creating and sustaining value; the learning and growth are
self-explanatory. The weightage given to each attribute is based on the function the employee
performs. Based on their individual achievements, employees are rated on a scale of one to
five (five = “superstar”). If employees get a low rating (less than two) in two consecutive
Strategy and Behaviours Improving Performance Making correct decisions Competitive
Advantage Minimizing dissatisfaction and turnover Ensuring Legal Compliance Values and
Behaviours appraisals, the warning flags go up. “If the poor performer continues getting low
scores, then the exit option may be considered” Over the years TCS has found the pattern that
leads to the maximum decline in performance — boredom. If employees work for more than
two years on the same project, typically either their performance dips or they leave the
organization.
STRATEGY SUGGESTION:
Present appraisal system followed at outlook:
In well-renowned media house like Outlook, KPI/KRA based performance is always best.
The system and procedure used is as below:
a) Design KPIs for every single department.
b) Train managers on KPIs of their respective department. Fix the KRAs based on the KPIs.
c) Fix a date of measurement of the performance.
d) Conduct the supplementary training to managers on "How to Conduct Performance
Appraisal".
e) Conduct the Performance appraisal. Again, fix KRAs for the next financial year.
f) Assess the suitability of PA process. Changes are made accordingly.
g) Reptation of the cycle is done.
I would like to suggest to use some good technology like “My performance tool” which is
used by Accenture as technology seems to be easy and it also reduces the processing time.
The other software which I found to be better is Synergita to automate the employee
performance appraisal which includes Goals management, update achievements, rewards and
recognitions, continuous performance discussions and annual appraisals which leads to
holistic employee development.
Goals management: Sets SMART goals, updates achievements, tracks progress &
gives continuous feedback.
Continuous feedback: Enables daily conversations between managers and employee.
Rewards and recognition: Instant recognition and redeemable rewards for employees.
360-degree feedback: Complete 360 feedback for every employee.
Employee performance appraisal: Conduct periodic performance appraisals easily.
Configurable feedback forms, workflows. Digitize performance appraisals.
Employee engagement: Attract, Engage, Nurture and Retain Millennials with right
Employee Engagement Practices.
Many great companies like lotte, Vedanta etc. use this software they say that the software is
very free to use and it’s easy to customise and configure system without any technical
expertise. The system is incredibly robust.
I would even choose MBO method (Management by objectives)
Steps that need to be followed in the MBO appraisal process:
1) Define organisational goals
2) Define employee objectives
3) Continuous monitoring performance and progress
4) Performance evaluation
5) Providing feedback
6) Performance reviews.
Benefits of MBO:
Employees like their on-the-job duties and duties when they are managed by targets.
The targeted Key Result Areas (KRAs) are tailored to each employee's interests, educational
qualifications, and specialism.
The MBO method often leads to improved collaboration and communication.
It gives employees a clear idea of what they are expected to do. Supervisors provide goals to
each team member, and each employee is given a list of specific responsibilities.
Every employee has their own set of objectives. As a result, each employee feels
indispensable to the company and develops a sense of devotion to the company.