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PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF DEGREE

     MASTER OF BUSINESS ADMINISTRATION




                           DECLARATION


I hereby declare that this project report titled Performance Review System
for a software development company (Halcyon Technologies) submitted by
me to the department of Business Management of XXXX is a bonafide work
undertaken by me and it is not submitted to any other University or Institute
for the Award of any degree diploma/certificate or published any time
before.
Name:




Date:   (Signature)
ACKNOWLEDGEMENT


A Good start leads to a Fine end. The ideal way to begin documenting this
project work would be to extend my earnest gratitude to everyone who has
encouraged, motivated and guided me to make a fine effort for successful
completion of this project.

I would like to thank XXXX, Director of Halcyon technologies for giving
me an opportunity by taking me as an internee in their organization. This
proved to be a very good learning experience for me, where I could get an
exposure to all the aspects of real time Core HR activities.

I am very thankful to XXX, faculty of business management for guiding me
throughout the project. My sincere Gratitude to the College Management for
extending their co-operation for successful completion of my project.

I acknowledge with pleasure and owe my special thanks to XXXX, HR
Manager, Halcyon Technologies for his continuous guidance and support
throughout the project.

A final word of thanks goes to my Parents, Friends and everyone else who
made this project possible. Your contributions have been most appreciated.
INDEX


Table of Contents:                          Page No.
    1.    Abstract                           i

    2.    Objective of the study             ii

    3.    Introduction                       2

    4.    Company Profile                    19

    5.    Methodology / Approach             24

    6.    Limitations of the Study           26

    7.    Data Analysis                      27

    8.    Findings                           32

    9.    Recommendations                    34

    10.   Annexure-1 (Questionnaire)         36

    11.   Annexure-2 (Self Review Form)      39

    12.   Annexure-3 (Peer Feedback Form)    43

    13.   Bibliography                       44
ABSTRACT


Halcyon Technologies has given me an excellent opportunity of designing a
new Performance Appraisal System for their company. It was designed after
understanding the Halcyon Environment at whole.



Since my internship was for four months, I could not be a part of the entire
Appraisal System but only the Review system.



A customized and relevant Review System was prepared which would fulfill
both the needs of Management and Employees. The Self Review Form and
Peer Feedback form was designed and then sessions were conducted to make
the employees understand the Process and importance of Performance
Review. Then as scheduled the one-one meeting between the employee and
their respective Team Leader was conducted and the final report was given
to HR Manager.



This Review would help Employees in their upcoming Performance
Appraisal where the hikes, incentives etc would be based on their targets set
at the time of Review.




                                      i
Objectives of the Study
Halcyon being a start - up company I got the opportunity to design a new
Performance Review System under the guidance of HR Manager. The
secondary objectives of my study were:



  1. To develop an effective Performance Appraisal system.

  2. To know the Requirements of management regarding the designing of
     new Appraisal system and Review System.

  3. To help the Employee in understanding the Process of Performance
     Review.




                                    ii
at
INTRODUCTION


Performance Appraisal is a formal, structured system that compares
employee performance to established standards. Assessment of job
performance is shared with employees being appraised through one of
several primary methods of performance appraisals. Elements in
performance appraisal methods are tailored to the organization's employees,
jobs, and structure.

       Performance appraisals, also known as employee appraisal are
        essential for the effective management and evaluation of staff.
        Appraisals help develop individuals, improve organizational
        performance, and feed into business planning. Each staff member
        is appraised by their line manager. Directors are appraised by the
        CEO, who is appraised by the chairman or company owners,
        depending on the size and structure of the organization.
        Performance appraisal is a part of career development and regular
        review of employee performance within organizations.

       Annual performance appraisals enable management and
        monitoring of standards, agreeing expectations and objectives, and
        delegation of responsibilities and tasks. Staff performance
        appraisals also establish individual training needs and enable
        organizational training needs analysis and planning.

       Performance appraisal should also be viewed as a system of highly
        interactive processes which involve personnel at all levels in
        differing degrees in determining job expectations, writing job
        descriptions, selecting relevant appraisal criteria, developing
        assessment tools and procedures, and collecting interpreting, and
        reporting results

         Performance appraisals are important for staff motivation, aligning
          individual and organizational aims, and fostering positive
          relationships between management and staff.

                                      2
 Appraisals must address 'whole person' development - not just job
        skills or the skills required for the next promotion. Appraisals must
        not discriminate against anyone on the grounds of age, gender,
        sexual orientation, race, religion, disability, etc.

       Performance appraisals should be positive experiences. The
        appraisals process provides the platform for development and
        motivation, so organizations should foster a feeling that
        performance appraisals are positive opportunities, in order to get
        the best out of the people and the process.

 Requirements for effective performance management system:

     1.    Effective performance management requires a good deal of face-
          to-face supervisor-employee interaction. By knowing the
          subordinates, a supervisor can steer them onto a path of greater
          productivity and optimized output. Long-term successful business
          owners view performance appraisal as a process of getting to know
          the people who work for them. It is the most significant and
          indispensable tool for an organization. It provides information,
          which helps in taking important decisions for the development of
          an individual and the organization.

     2. Thus, one phase of the annual performance management cycle is
        performance appraisal, the process of reviewing employee
        performance vis-à-vis the set expectations in a realistic manner,
        documenting the review, and delivering the review verbally in a
        face-to-face meeting, to raise performance standards year over
        year through honest and constructive feedback. In the process
        management expects to reinforce the employee’s strengths,
        identify improvement areas so that one can work on them and also
        set stretched goals for the coming year.

An effective review process helps organizations in three areas:

    1. Evaluation and improving personnel selection and training systems;

   2. Preventing wrongful termination; and

   3. Increasing real employee diversity

                                      3
Some Basic Concepts:

      Performance refers to an employee’s accomplishment of assigned
       tasks.

      Performance Appraisal is the systematic description of the job-
       relevant strengths and weaknesses of an individual or a group.

      Appraisal period is the length of time during which an employee’s
       job performance is observed in order to make a formal report of it.

      Performance Management is the total process of observing an
       employee’s performance in relation to job requirements over a period
       of time (I.e. clarifying expectations, setting goals, providing on-the-
       job coaching, storing and recalling information about performance)
       and then making an appraisal of it. Information gained from the
       process may be fed back via an appraisal interview to determine the
       relevance of individual and work-group performance to organizational
       purposes, improve the effectiveness of unit and improve work
       performance of employees.

Performance and Development Planning (PDP):

PDP is a process for managers that aligns individual performance with
company goals and ensures focus on the development of talent company-
wide. PDP is an important step in their corporate effort to engage and enable
employees to deliver their contribution to their business. Also, PDP serves to
enable employees to identify and realize personal opportunities for
development that are aligned to current and future business challenges.


Objectives of Performance Appraisal:

    Let the employees know where they stand in so far as their
     performance is concerned and to assist them with constructive
     criticism and guidance for the purpose of their development.

    Assessment of skills within an organization.

                                      4
 Set targets for future performance.

 Effect promotions based on competence and performance.

 Strengthen relationship between superior and subordinate.

 Assess the training and development needs of employees.

 Identify the strengths and weaknesses of employees.

 Decide upon a pay raise (increments).

 Determine whether human resource programs such, as selection,
  training and transfers have been effective or not.

 Form a basis for personnel decisions-salary (merit) increases,
  promotions, disciplinary actions, etc.

 Provide the opportunity for organizational diagnosis and development.

 Facilitate communication between employee and administrator.

 Increase motivation to perform effectively.

 Better clarify and define job functions and responsibilities.

 Clarify organizational goals so they can be more readily accepted.




                                   5
Performance Appraisal Process



     •   Prepare - prepare all materials, notes agreed tasks and records of
         performance, achievements, incidents, reports etc - anything
         pertaining to performance and achievement

     •   Inform - ensure the appraisee is informed of a suitable time and
         place and clarify purpose and type of appraisal

     •   Venue - ensure a suitable venue is planned and available - private
         and free from interruptions

     •   Introduction - relax the appraisee - open with a positive statement,
         smile, be warm and friendly

     •   Review and measure - review the activities, tasks, objectives and
         achievements one by one

     •   Agree an action plan - An overall plan should be agreed with the
         appraisee, which should take account of the job responsibilities, the
         appraisee's career aspirations, the departmental and whole
         organization's priorities .

                                      6
•   Agree necessary support - This is the support required for the
         appraisee to achieve the objectives, and can include training and
         anything relevant and helpful that will help the person develop
         towards the standard and agreed task.
         Also consider training and development that relates to 'whole-
         person development' outside of job skills. Developing the whole
         person in this way will bring benefits to their role, and will increase
         motivation and loyalty.

     •   Invite any other points or questions - make sure you capture any
         other concerns.

     •   Close positively- Thank the appraisee for their contribution to the
         meeting and their effort through the year, and commit to helping in
         any way you can.

     •   Record main points, agreed actions and follow-up - Swiftly
         follow-up the meeting with all necessary copies and confirmations,
         and ensure documents are filed and copied to relevant departments.




Designing an appraisal program poses several questions, which need
answers. They are:

     1. Whose performance is to be assessed?

     2. Who are the appraisers?

     3. What should be evaluated?

     4. When to appraise?

     5. What problems are encountered?

     6. How to solve the problems?
                                       7
7. What methods of appraisal are to be used?



Discussion points in the appraisal:

      1. Has the past year been good/bad/satisfactory or otherwise for you,
      and why?

      2. What do you consider to be your most important achievements of
      the past year?

      3. What do you like and dislike about working for this organization?

      4. What elements of your job do you find most difficult?

      5. What elements of your job interest you the most, and least?

      6. What do you consider to be your most important tasks in the next
      year?




Benefits:

The following are the benefits of a successful appraisal system:

1. For the Organization:

    Improved performance throughout the organization due to:

      - Effective communication of organization’s objectives and values
      - Increased sense of cohesiveness and loyalty.
      - Managers are better equipped to use their leadership skills and to
        develop their staff.

    Improved overview of tasks performed by each member of a group.

    Identification of ideas for improvement.


                                      8
 Communication to people that they are valued.

2. For the Appraiser:

   Opportunity to develop an overview of individual jobs.

   Opportunity to identify strengths and weaknesses of appraisees.

   Increased job satisfaction.

   Opportunity to link team and individual objectives with department &
    organizational objectives.

   Opportunity to clarify expectations that the manager has from teams
    and individuals.

   Opportunity to re-prioritize targets

   Means of forming a more productive relationship with staff based on
    mutual trust and understanding.

   Due to all above Increased sense of personal value

3. For the Appraisee:

   Increased motivation and job satisfaction.

   Clear understanding of what is expected and what needs to be done to
    meet expectations.

   Opportunity to discuss aspirations and any guidance, support or
    training needed to fulfill these aspirations.

   Improved working relationships with the superior.

   Opportunity to overcome the weaknesses by way of counseling and
    guidance from the superior

Performance appraisal drawbacks:


                                    9
 Performance appraisal program demands and depends too much on
  supervisors.

 Sometimes certain standard ratings tend to vary widely and unfairly.

 Some raters can be tough, and some lenient. Some departments have
  highly competent people whereas others have less competent people.

 Personal bias can replace organizational standards. Because of the
  bias, some non competent employees may get a favored treatment.

 Sometimes there tends to be lack of communication. The employees
  may not even know they are being judged. No performance appraisal
  system can be effective if the appraised do not know the criteria under
  which they have been appraised and judged.




                                                         Biases      in
                                                         Performance
                                                         Appraisal

                                                          Types
   Explanation                        Example




                                 10
11
Performance Appraisal Techniques:
Traditional Methods of Appraisals:


1. Ranking

In this, the superior ranks his/her subordinates in order of their merit, from
best to worst.

- It is done in a competitive group.

- It is done by placing the appraisee on numerical scales I.e. 1st, 2nd, 3rd etc.
in the total group.

- Ranking of an appraisee on his job performance/traits against that of
another member.

2. Person-to-Person/Paired Comparison

Under this method the appraiser compares each employee with every other
employee, one at a time.

- Certain key performance areas/traits are developed. E.g.: Leadership,
Creativity, Initiative etc.

- A scale for each factor is designed.

- A scale of people is also created for each factor.

- Each Appraisee is compared to every other person on the scale.

- Certain scores for each factor are awarded to the appraisee.




3. Grading



                                         12
- Certain categories of traits/performance criteria, which are worth of
appraising, are established. E.g. cooperativeness, self-expression,
dependability, job knowledge etc.

- The actual performance (Key performance area) of an employee is then
compared to the predetermined grade definitions.

- Appraisee is allotted with the grade, which describes his performance in
the best possible manner.

- Any grade that is selected should be well defined.

4. Graphic Scales

- A printed form, one for each person to be rated is used.

- The factors included in the form are Employee characteristics such as
leadership, cooperativeness, enthusiasm, loyalty etc. or Employee
contribution which includes quantity and quality of work, specific goals
achieved, regularity of attendance, responsibility assumed etc.

- The traits can be evaluated on continuous scale – the appraiser places a
mark along a continuum (range).

5. Checklist

- A series of questions are presented concerning an appraisee’s behavior.

- The appraiser has to reply to the questions in either negative or positive
tone- (Yes/No).

- The value of each question may be weighted I.e. one can have
predetermined scale and scoring to those questions.

6. Essay

- A blank form is given to the appraiser.

- The form contains main heading such as employees’ characteristics,
attitudes, job knowledge, potential etc.

- The appraiser is asked to put in words his impressions about the employee..
                                       13
- It gives specific information about the employee.

7. Confidential Reporting

- It is the most traditional way of appraising employee’s performance. The
basic assumption here is that since the superior is in direct contact he knows
his subordinates better than any other and hence his appraisal would be more
appropriate.

- The superior writes a paragraph or so about his subordinate’s strengths,
weaknesses, intelligence, attitude to work, attendance, conduct and
character, work efficiency, etc.

8. Critical Incident Method

- Initially a set of noteworthy (good or bad) on-the-job behaviours is
prepared. This is usually in the form of incidents.

- These incidents are given to a group of experts who assign scale values
depending upon the degree of desirability for the job.

- This checklist is used by superiors for evaluating the employees.

- This method helps in identifying the key areas where the employees are
weak or strong.

- It emphasizes rating on objective evidence and helps in counseling.

9. Forced Choice Technique

- In forced choice system the appraiser is forced to choose one from among a
group of 4 statements that best fits the individual being rated and one which
least fits him.

- Each statement is given a value or a score.

- The evaluator does not know the score value of statements; hence he
cannot show any favor towards the appraisee.




                                      14
- The method of arranging the traits involves a long process from getting the
description of “good” or “bad” employees to establishing their validity and
reliability.

Modern Methods of Appraisal:
   1.   Behaviorally Anchored Rating Scales:



        Behaviorally Anchored Rating Scales (BARS) is a relatively new
        technique which combines the graphic rating scale and critical
        incidents method. It consists of predetermined critical areas of job
        performance or sets of behavioral statements describing important job
        performance qualities as good or bad (for eg. the qualities like inter-
        personal relationships, adaptability and reliability, job knowledge etc).
        In this method, an employee’s actual job behaviour is judged against
        the desired behaviour by recording and comparing the behaviour with
        BARS. Developing and practicing BARS requires expert knowledge.



   2. Human Resource Accounting Method


        Human resources are valuable assets for every organization. Human
        resource accounting method tries to find the relative worth of these
        assets in the terms of money. In this method the performance of the
        employees is judged in terms of cost and contribution of the
        employees. The cost of employees include all the expenses incurred
        on them like their compensation, recruitment and selection costs,
        induction and training costs etc whereas their contribution includes
        the total value added (in monetary terms). The difference between the
        cost and the contribution will be the performance of the employees.
        Ideally, the contribution of the employees should be greater than the
        cost incurred on them.



                                        15
3. Assessment Centres


  An assessment centre typically involves the use of methods like
  social/informal events, tests and exercises, assignments being given to
  a group of employees to assess their competencies to take higher
  responsibilities in the future. Generally, employees are given an
  assignment similar to the job they would be expected to perform if
  promoted. The trained evaluators observe and evaluate employees as
  they perform the assigned jobs and are evaluated on job related
  characteristics.


  The major competencies that are judged in assessment centres are
  interpersonal skills, intellectual capability, planning and organizing
  capabilities, motivation, career orientation etc. assessment centres are
  also an effective way to determine the training and development needs
  of the targeted employees.


4. Management by Objectives

   The concept of ‘Management by Objectives’ (MBO) was first given
  by Peter Drucker in 1954.
   Management by Objectives is basically a process whereby the
   superior and the subordinate managers of an enterprise jointly
   identify its common goals, define each individual’s major areas of
   responsibility in terms of the results expected of him and use these
   measures as guides for operating the unit and assessing the
   contribution of each of its members. Management by Objectives is
   primarily to change the behaviour and attitude towards getting an
   activity or assignment completed in a manner that it is beneficial for
   the organization. Management by objectives is a result-oriented

                                 16
process, wherein emphasis is on results and goals rather than a
     prescribed method. A number of companies have had significant
     success in broadening individual responsibility and involvement in
     work planning at the lowest organizational levels.
 Management by Objectives is a process having following basic steps:

       I. Set Organizational Goals

      II. Joint Goal Setting

      III. Performance Reviews

     IV. Set check posts

      V. Feedback




5.     360º Feedback

     The 360º Feedback process is called multi-source assessment, taps
     the collective wisdom of those who work most closely with the
     employee, superiors, colleagues (peers), direct reports and possibly
     internal and often external customers. The collective intelligence
     these people provide on critical competencies or specific behaviours
     and skills gives the employee a clear understanding of personal
     strengths and areas ripe for development. Employees also view this
     performance information from multiple perspectives as fair, accurate,
     credible, and motivating.

     As the 360º Feedback process better serves the needs of employees, it
     serves the changing needs of their organizations too. Organizations
     are reducing hierarchy by removing layers of management and
     putting more emphasis on empowerment, teamwork, continuous
     learning, individual development, and self-responsibility. The 360º
     Feedback Model aligns with these organizational goals to create
     opportunities for personal and career development.

                                  17
360 degree appraisal has four integral components:

       1. Self appraisal

       2. Superior’s appraisal

       3. Subordinate’s appraisal

       4. Peer appraisal.




Electronic Appraisal System (eAPPRAISAL)

eAppraisal is a recently introduced method of performance appraisal that
eliminates paper work. eAppraisal simplifies and enhances the employee
performance appraisal process. It provides an organization with a powerful
tool to help develop organization’s critical talent all year round. It is easier
to conduct eAppraisals by automating the time-consuming process of
administrating employee performance reviews. It is flexible and can be
customized to suit an organization’s needs. The comprehensive workflow
makes it easy for human resource professionals to manage the process by
approving appraisal forms, monitoring the status and sending automatic
email notifications to managers..

I. Features:

                                        18
 intranet-based

       Ease of use

       Sophisticated workflow

       Centralized

       User customizable performance appraisal forms

       Automated email notification and reminder notice

       Comprehensive status and action view for HR manager
       Competency-based text answers and/or range scale
       Self-rating capabilities

II. Benefits:
       Appraisals are processed more quickly and efficiently.
       Appraisal data is received by concerned superior/manager in
         virtual real-time when the appraisal is uploaded into eAppraisal
         system..
       Appraisals cannot be misplaced or lost, as is possible with
         hardcopies. Appraisals can be stored electronically and available
         online




                                     19
Company Profile


HALCYON Technologies is an Application Development and
Business Process Outsourcing solutions provider. HALCYON
Technologies offers a range of services from outsourced application
development and managed services to professional services. All
Their services are enabled by experienced, knowledge, proven
methodologies, global talent and innovation. Their portfolio includes
Application Development, consulting, maintenance & support,
Business Process Outsourcing, and Testing services. HALCYON
provides services to clients from their network of offices across US,
UK and state-of-the-art Global Solutions Development center in
Hyderabad, India.



Their experience with working on and managing outsourced IT
projects of large magnitude and BPO solutions gives us a leading
edge over their competitors. Their commitment is to produce
superior quality deliverables using the industry specified standards.
HALCYON achieve this by maintaining an effective and open
communication channel across clients in automotive retail industry
and have also worked with fortune 500 clients in the Healthcare,
Banking, Telecom, Manufacturing, Insurance, Utilities and Financial
verticals. Their in-depth understanding of various industry verticals
enables us to provide innovative and end-to-end technology
solutions.




                             20
With HALCYON Technologies, the clients can rest assured of
transport fair working partnership and quality work processes.
HALCYON Technologies offers cutting-edge technologies that help
the client business improve, and more well ahead of their
competitors in the market.




HALCYON helps clients:

    • Create an adaptive technologies infrastructure

    • Streamline the business processes

    • Raise the market value

    • Increase the competitive advantage, and

    • Support the cost-effective sources of productivity and
      growth.



HALCYON Technologies evolves client-specific strategic initiatives
with a dual aim to achieve cost savings, and to improve on quality of
services offered.



Services




                             21
HALCYON delivers a wide-range of value added services adopting
a unique approach of integrating people, processes and technology.
HALCYON creates solutions for its clients by leveraging its domain
and business expertise along with a range of services.



HALCYON Technologies range of services includes:

      • Application development

      • Business Process Outsourcing

      • Consulting

      • Maintenance & support

      • QA and testing




Technologies



As a technology company, HALCYON proactively gains insights
into leading and emerging technologies.



HALCYON Technologies has expertise in:

     • Microsoft .NET Technologies

     • J2EE Technologies

     • IBM Mainframe Technologies

     • EAI technologies like Tibco, Web Methods MQ and
       Seebeyond

                            22
• Report generation using Business Objects, Crystal Reports
        and Infragistics



BPO Solutions



HALCYON Technologies Business Process Outsourcing (BPO)
services aim at leveraging technologies to provide and manage an
organization’s critical and/or non-critical enterprise processes and
applications. HALCYON Technologies holistic BPO services
integrate software, process management, and people to operate the
services.



BPO Solutions provided by HALCYON for Automotive industry
include:

     • Data analysis and processing of Rate and Residuals for Car
       Dealerships



BPO Solutions provided by HALCYON for others Industries
include:

     • Information Capture

     • Data Entry & Correction

     • Document Conversation



Products

 HALCYON offer product development services enriched with their
experience and technology expertise. HALCYON has developed

                             23
products on leading technologies with a strong orientation toward
standards-driven architecture.

Products developed by HALCYON for Automotive Retail industry
are:

   • Vehicle Comparison Search Engine and Market Analyzer

   • RFID based Vehicle Management Solutions

   • CRM & ERP Solutions for Car Dealerships

   • F & I Menu and Desking Application Solutions



Why HALCYON?



HALCYON have a vast practical experience of developing and
supporting critical applications with high quality and within
scheduled time. Their offshore development model id devised to act
as an extension of the client, providing them with excellent outputs
when needed. By outsourcing your work to HALCYON
Technologies, you have powerful advantage like cost saving,
quality, time to market and flexibility to adapt to client’s market and
customer’s demands.



HALCYON Advantage:



   • Vast experience in working on number of software
     projects/solutions

   • Mature onsite-offshore development model with high record
     of matching deliverables within clients’ expectations


                              24
• Strong Domain experience which has been gained over the
            years by providing IT Solutions to clients

          • In-depth understanding of clients’ business

          • Enviable ability to deliver innovative, reliable and high
            quality solutions

          • Cost effective pricing and flexible approach

The company-wide mindset of co-ownership and co-responsibility is what
differentiates them from any of other players.




                                   25
Methodology / Approach


                As per the requirement of the management to design a new
policy for performance Review system, I basically analyzed the
questionnaire given to employees to know their perception regarding the
Review System and collected information on websites regarding the various
methods of appraisals, the process of Performance Appraisals etc and also
referred to books to get the idea of the concepts. The practical approach was
by –

   •    Understanding the perspective of Management.

   • Studying the kind of Appraisal suitable for Halcyon environment.

   • The time period required for the Review to be completed.

   .

 The following procedure was adopted:-

       1.   Before starting up the process and coming up with new policy we
            thought of taking up the overall outlook with respect to
            Performance Review. We designed a Questionnaire to analyze the
            Perception of Employees.

       2.    The management was approached to discuss the contents of
            Review policy so that an effective policy can be designed which
            will be useful hence forth.

       3.   A customized Performance Review Policy was designed which was
            a combination of two methods of Appraisal I.e. Self Review method
            and Peer Feedback method.

       4. Self Review method is a method were the employee is asked to give
          a self rating for himself on the tasks done by him. Later on these
          same tasks will be appraised by the appraiser and he gives his rating
          on the same tasks. Peer feedback is the feedback given by the other

                                       26
employees to his/her colleague on his technical knowledge as well
     as the behavioral aspect in the organization.

5.   A Presentation on the Performance Review Process as well as the
     Criteria to give Ratings was given to team members and the Team
     Leaders so that they have a clear understanding about it.

6.   Then the team members were asked to fill up the Self Review Form
     and submit it to the HR department which in turn passed it to the
     team leaders.

7. A one to one meeting was fixed with the team leader by the team
   members accordingly. This was to discuss various aspects of
   performance of the employee like discussing the ratings given by
   the appraise and to evaluate his overall performance and set new
   goals.

8.   Then the appraiser gives his own rating to the employee after the
     one – one discussion and then the report is submitted to the
     reviewer and a final discussion takes place with the HR Manager to
     proceed with the next course of action like setting of goals, hike in
     salaries, performance linked incentives, etc..




                                  27
Limitations:


   The Appraisal Process was designed but I could be a part of only
    Review Process which was conducted in the month of November.

 Due to time constraint the Post Feedback of Employees regarding the
  Review Process could not be taken.




                                  28
29
Data Analysis:



 My self-assessment result contributes
      to my final appraisal result


        10
20                                  Strongly Agree
                                    Neutral
                                    Strongly Disagree
                      70




     The Review will help me to improve
      my future working performance


        10
                                    Strongly Agree
                                    Neutral
30
                          60        Strongly Disagree




                     30
I know all the aspects and standards
          that are used to evaluate my
                  performance

                      30
40                              Strongly Agree
                                Neutral
                                Strongly Disagree
                 30




 Do you feel confident that you will be
 able to benefit as an appraisee in the
 review sessions with your team lead

 30                    35       Strongly Agree
                                Neutral
                                Strongly Disagree
           35




                      31
Do you think you need a training
      program in relation to Clarity of
               Procedures

     20
                      35           To An Extent
                                   Totally
                                   Not At All
      45




     Do you think you need a training
     program in relation to Process of
          Performance Review

      15
                          45       To An Extent
                                   Totally
                                   Not At All
40




                     32
Do you think you need a training
     program in relation to Self Rating


     20
                          40       To An Extent
                                   Totally
                                   Not At All
     40




     What are you looking forward to
          change Post Review


          10
15                               Salary
                                 Responsibility
                                 Team Structure
                    75




                     33
How do you rate the importance of
      General Work Behavior in your
            Review Process?
            0                   Not Important
40
                                some what
                                important
                          60
                                Most Important




 Are you aware of the concept of Peer
              Feedback


 30
                                  To An Extent
                                  Totally
                          60      Not At All
 10




                     34
Findings


As the whole Process was designed by the HR department, I was also
involved in it from the designing stage to the implementation part of the
Review system. In this process I could recognize the benefits derived out of
this system as well as observed some drawbacks.



My Findings from the questionnaire were:



    1.   The perception of employees regarding performance Review was a
         hike in Salary, which is not the case in reality.

    2.   After knowing the requirements of employees a training session was
         conducted to help the employees understand the need and process of
         Performance Review and Criteria to give Self Rating.

    3. They were aware of the fact that the General Work Behavior would
       play a major role in their Review but were unaware of all the
       Standards and Aspects used to Evaluate their Performance



Other Findings:



    4. The process did not take place in the exact time frame as planned
       and scheduled.

    5.   A good improvement was seen in the inter-personal relationship
         between the team leader and subordinates.



                                     35
6. Many employees could not justify the ratings given by them in the
   Self Review Form.

7. It helped the employees in understanding their past performance and
   setting up of targets and goals for future.

8. They got to understand the organizational needs and it helped in
   developing a sense of belongingness towards the company.

9. It helped the management in identifying the Caliber of employees
   and encourage the same.

10.The employer and employees got a platform to understand each
   other in a better manner.

11.    The management was too much dependent on team leaders for
      conducting

      Reviews.

12. When the Peer Feedback Form was given employees were too
   hesitant in giving ratings to their colleagues.




                               36
37
Recommendations


After the successful completion of the whole Process of Performance
Review under the supervision of the HR Manager I.e. by recognizing the
need for Review policy, designing the policy, taking up a presentation to
explain the importance and process of Review, attending the meetings with
the team leader, being a part in discussions by the management regarding
appraisals and analysis of the feedback given by employees helped me to
evaluate the benefits and shortcomings of the Performance Review Process
and recommend the measures to improve the same.



The recommendations are as follows:



1. Identify the KRA’s (Key Resource Areas) and communicate the same to
   the employees so that he can be judged appropriately based upon it.

2. The employees must be motivated to fill in the self review form
   appropriately.

3. They must be appreciated for their individual achievements during the
   period and training/guidance must be given if they lack in some areas.

4. The review must be conducted informally once in every month so that the
   desired result can be achieved at the time of actual review.

5. The team leader should treat everyone equally without any bias and give
   appropriate ratings to each member depending upon their performance.

6. The employees must be educated regarding the importance of Peer
   feedback that the true rating, be it positive or negative will help his
   colleague in understanding his abilities and drawbacks and he can
   develop himself on those aspects.



                                      38
7.   To motivate employees for their extra ordinary performance apart from
     the PLI’s there must be some token of appreciation given for him in the
     form of promotions or a simple gift voucher etc.,

8.   The token of appreciation should be given to those employees whose
     performance was extra ordinary as well as who have been in the
     organization for a longer period of time.

9. The feedback from employees must also be taken regarding the working
   style of management so that the management functions can also be
   improved. They must be given the freedom to express their concerns.

10.While conducting the Performance Review the team member must also
   be given the right to rate his team leader or provide him the feedback
   because a cordial relation between the team lead and members of the
   team is very important and the lack of good understanding may hamper
   the team work.

11. The problems or hindrances which are faced by employees should be
   taken care of, so that the employee is satisfied and works enthusiastically.

12. The employees must be informed before – hand that he needs to provide
   a proper justification for the ratings given by him and it will ultimately
   help him to recognize his accomplishments and drawbacks.

13. The one to one meeting should be conducted in a peaceful manner so
   that it does not lead to any argument and the desired objective is
   achieved.

14. Measures must be taken for effective time management because the
   delay in the process will lead to distractions.

15. Suggestions must be taken from employees after the review process in
   order to make it more effective.

16. The career goals and career prospects of an employee must be taken into
   consideration so that they stay committed to the organization.



                                      39
17. The negative feedback should be given and taken in a constructive
   manner.

18. There must be delegation of authority so that one individual doesn’t feel
   the pressure of handling all the responsibilities.

19. Efforts must be taken to reduce the communication gap between the
   employees and management.

20. All the employees of the organization must maintain a personal diary to
   record their day to day achievements as well as the problems they faced
   during performing a particular task so that he has a record of all the
   things and it can be reproduced in front of the team leader or
   management as and when the need arises.




                 Performance Review Questionnaire

1.   My self-assessment result contributes to my final appraisal result.

a. Strongly agree
b. Neutral
c. Strongly disagree



2.   The Review will help me to improve my future working performance

     a. Strongly agree
     b. Neutral
     c. Strongly Disagree



                                     40
3. I know all the aspects and standards that are used to evaluate my
performance.

  a. Strongly agree
  b. Neutral
  c. Strongly Disagree




  4.   Do you feel confident that you will be able to benefit as an
       appraisee in the review sessions with your team lead?

       a. Strongly agree
       b. Neutral
       c. Strongly Disagree


  5.   Do you think you need a training program in relation to Clarity of
       Procedures?

          a. To an Extent
          b. Totally
          c. Not at all


  6. Do you think you need a training program in relation to Process of
     Performance Review?

          a. To an Extent
          b. Totally
          c. Not at all


                                      41
7. Do you think you need a training program in relation to Self
     Rating?

           a. To an Extent
           b. Totally
           c. Not at all


  8. What are you looking forward to change Post Review?

       a. Salary
       b. Responsibility
       c. Team Structure



9. How do you rate the importance of General Work Behavior in your
Review Process?

       a. Not Important
       b. Some What Important
       c. Most Important



10.   Are you aware of the concept of Peer Feedback ?

      a. To an Extent
      b. Totally
      c. Not at all




                                    42
43
Self Review Form

     Name                                   Reviewer                                  DOJ

     Designation                                                                      DOR

     Location                                                                         Period


     I. OBJECTIVE REVIEW & FEEDBACK

     (To be filled in by the Employee and discussed with the Director/ Person reporting to)
     Rating 1: Poor Performance, 2: Below Par, 3: At Par, 4: Above Par, 5: Excellent


No           Tasks                 Self Review             Rating         Reporting head Review   Rating

1.



2.



3.



4.



5.



6.




                                                      44
II. Other assignments/tasks /achievements that you would like to mention other than those
stated in Section I.
   No             Assignments /Achievements                                Remarks




III. Specify the most important factors affecting your work

              Facilitating                                       Hindering




IV. Notes: (Write here a brief description about your work at Halcyon)




                                                                         Signature of the Employee




                                               45
V. Reviewer’s Feedback




SECTION VI - “General Rating”
(To be filled in by the reviewer)



  Technical Skills        Comments   Rating          Soft Skills        Comments       Rating



     Technical                                     Communications
     Knowledge



    Coding Skills                                   Team playing



   Analytical and                                     Attitude

   Logical Skills



     Standards                                        Proactive



    Learn ability                                    Bottom line
                                                    responsibility



                                                                     Signature of the Reviewer




                                              46
SECTION VII - “OBJECTIVE SETTING”

(To be filled in by the Employee after discussion with the Director/ Person reporting to)


No           Objectives                  Target Date            Comments of Director/ Reporting Head

 1.



 2.


 3.



 4.




 5.



 6.




Signature of the Employee                           Signature of the Director/Reporting Head




                                                  47
Peer Feedback Form

             Your Name --->                  Anna

                                            Your Feedback on the Skills of the Team Member
      Team Member
                                        Pradeep                             Sundeep

                               Rating   Remarks              Rating   Remarks                Rating
   Communication skills
       Technical skills
 Bottomline Responsibility
        Proactiveness
       Job Knowledge
      Leadership Skills
         Learnability
        Team Player
     Process adherence
 Quality of the work product
         Timeliness
 Any other Feedback points




Worst            0
Bad              1
Ok                2
Good             3
Very Good        4
Excellent        5




                                                  48
Bibliography


Human Resource Management                          : Gary Desler

Appraising and Developing Managerial Performance   : T.V.Rao



Websites:

                www.citehr.com

                www.google.com

                www.custominsight.com




                                 49

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Performance review-system-mba-hr-project

  • 1. PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE MASTER OF BUSINESS ADMINISTRATION DECLARATION I hereby declare that this project report titled Performance Review System for a software development company (Halcyon Technologies) submitted by me to the department of Business Management of XXXX is a bonafide work undertaken by me and it is not submitted to any other University or Institute for the Award of any degree diploma/certificate or published any time before.
  • 2. Name: Date: (Signature)
  • 3. ACKNOWLEDGEMENT A Good start leads to a Fine end. The ideal way to begin documenting this project work would be to extend my earnest gratitude to everyone who has encouraged, motivated and guided me to make a fine effort for successful completion of this project. I would like to thank XXXX, Director of Halcyon technologies for giving me an opportunity by taking me as an internee in their organization. This proved to be a very good learning experience for me, where I could get an exposure to all the aspects of real time Core HR activities. I am very thankful to XXX, faculty of business management for guiding me throughout the project. My sincere Gratitude to the College Management for extending their co-operation for successful completion of my project. I acknowledge with pleasure and owe my special thanks to XXXX, HR Manager, Halcyon Technologies for his continuous guidance and support throughout the project. A final word of thanks goes to my Parents, Friends and everyone else who made this project possible. Your contributions have been most appreciated.
  • 4. INDEX Table of Contents: Page No. 1. Abstract i 2. Objective of the study ii 3. Introduction 2 4. Company Profile 19 5. Methodology / Approach 24 6. Limitations of the Study 26 7. Data Analysis 27 8. Findings 32 9. Recommendations 34 10. Annexure-1 (Questionnaire) 36 11. Annexure-2 (Self Review Form) 39 12. Annexure-3 (Peer Feedback Form) 43 13. Bibliography 44
  • 5. ABSTRACT Halcyon Technologies has given me an excellent opportunity of designing a new Performance Appraisal System for their company. It was designed after understanding the Halcyon Environment at whole. Since my internship was for four months, I could not be a part of the entire Appraisal System but only the Review system. A customized and relevant Review System was prepared which would fulfill both the needs of Management and Employees. The Self Review Form and Peer Feedback form was designed and then sessions were conducted to make the employees understand the Process and importance of Performance Review. Then as scheduled the one-one meeting between the employee and their respective Team Leader was conducted and the final report was given to HR Manager. This Review would help Employees in their upcoming Performance Appraisal where the hikes, incentives etc would be based on their targets set at the time of Review. i
  • 6. Objectives of the Study Halcyon being a start - up company I got the opportunity to design a new Performance Review System under the guidance of HR Manager. The secondary objectives of my study were: 1. To develop an effective Performance Appraisal system. 2. To know the Requirements of management regarding the designing of new Appraisal system and Review System. 3. To help the Employee in understanding the Process of Performance Review. ii
  • 7. at
  • 8. INTRODUCTION Performance Appraisal is a formal, structured system that compares employee performance to established standards. Assessment of job performance is shared with employees being appraised through one of several primary methods of performance appraisals. Elements in performance appraisal methods are tailored to the organization's employees, jobs, and structure.  Performance appraisals, also known as employee appraisal are essential for the effective management and evaluation of staff. Appraisals help develop individuals, improve organizational performance, and feed into business planning. Each staff member is appraised by their line manager. Directors are appraised by the CEO, who is appraised by the chairman or company owners, depending on the size and structure of the organization. Performance appraisal is a part of career development and regular review of employee performance within organizations.  Annual performance appraisals enable management and monitoring of standards, agreeing expectations and objectives, and delegation of responsibilities and tasks. Staff performance appraisals also establish individual training needs and enable organizational training needs analysis and planning.  Performance appraisal should also be viewed as a system of highly interactive processes which involve personnel at all levels in differing degrees in determining job expectations, writing job descriptions, selecting relevant appraisal criteria, developing assessment tools and procedures, and collecting interpreting, and reporting results  Performance appraisals are important for staff motivation, aligning individual and organizational aims, and fostering positive relationships between management and staff. 2
  • 9.  Appraisals must address 'whole person' development - not just job skills or the skills required for the next promotion. Appraisals must not discriminate against anyone on the grounds of age, gender, sexual orientation, race, religion, disability, etc.  Performance appraisals should be positive experiences. The appraisals process provides the platform for development and motivation, so organizations should foster a feeling that performance appraisals are positive opportunities, in order to get the best out of the people and the process. Requirements for effective performance management system: 1. Effective performance management requires a good deal of face- to-face supervisor-employee interaction. By knowing the subordinates, a supervisor can steer them onto a path of greater productivity and optimized output. Long-term successful business owners view performance appraisal as a process of getting to know the people who work for them. It is the most significant and indispensable tool for an organization. It provides information, which helps in taking important decisions for the development of an individual and the organization. 2. Thus, one phase of the annual performance management cycle is performance appraisal, the process of reviewing employee performance vis-à-vis the set expectations in a realistic manner, documenting the review, and delivering the review verbally in a face-to-face meeting, to raise performance standards year over year through honest and constructive feedback. In the process management expects to reinforce the employee’s strengths, identify improvement areas so that one can work on them and also set stretched goals for the coming year. An effective review process helps organizations in three areas: 1. Evaluation and improving personnel selection and training systems; 2. Preventing wrongful termination; and 3. Increasing real employee diversity 3
  • 10. Some Basic Concepts:  Performance refers to an employee’s accomplishment of assigned tasks.  Performance Appraisal is the systematic description of the job- relevant strengths and weaknesses of an individual or a group.  Appraisal period is the length of time during which an employee’s job performance is observed in order to make a formal report of it.  Performance Management is the total process of observing an employee’s performance in relation to job requirements over a period of time (I.e. clarifying expectations, setting goals, providing on-the- job coaching, storing and recalling information about performance) and then making an appraisal of it. Information gained from the process may be fed back via an appraisal interview to determine the relevance of individual and work-group performance to organizational purposes, improve the effectiveness of unit and improve work performance of employees. Performance and Development Planning (PDP): PDP is a process for managers that aligns individual performance with company goals and ensures focus on the development of talent company- wide. PDP is an important step in their corporate effort to engage and enable employees to deliver their contribution to their business. Also, PDP serves to enable employees to identify and realize personal opportunities for development that are aligned to current and future business challenges. Objectives of Performance Appraisal:  Let the employees know where they stand in so far as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development.  Assessment of skills within an organization. 4
  • 11.  Set targets for future performance.  Effect promotions based on competence and performance.  Strengthen relationship between superior and subordinate.  Assess the training and development needs of employees.  Identify the strengths and weaknesses of employees.  Decide upon a pay raise (increments).  Determine whether human resource programs such, as selection, training and transfers have been effective or not.  Form a basis for personnel decisions-salary (merit) increases, promotions, disciplinary actions, etc.  Provide the opportunity for organizational diagnosis and development.  Facilitate communication between employee and administrator.  Increase motivation to perform effectively.  Better clarify and define job functions and responsibilities.  Clarify organizational goals so they can be more readily accepted. 5
  • 12. Performance Appraisal Process • Prepare - prepare all materials, notes agreed tasks and records of performance, achievements, incidents, reports etc - anything pertaining to performance and achievement • Inform - ensure the appraisee is informed of a suitable time and place and clarify purpose and type of appraisal • Venue - ensure a suitable venue is planned and available - private and free from interruptions • Introduction - relax the appraisee - open with a positive statement, smile, be warm and friendly • Review and measure - review the activities, tasks, objectives and achievements one by one • Agree an action plan - An overall plan should be agreed with the appraisee, which should take account of the job responsibilities, the appraisee's career aspirations, the departmental and whole organization's priorities . 6
  • 13. Agree necessary support - This is the support required for the appraisee to achieve the objectives, and can include training and anything relevant and helpful that will help the person develop towards the standard and agreed task. Also consider training and development that relates to 'whole- person development' outside of job skills. Developing the whole person in this way will bring benefits to their role, and will increase motivation and loyalty. • Invite any other points or questions - make sure you capture any other concerns. • Close positively- Thank the appraisee for their contribution to the meeting and their effort through the year, and commit to helping in any way you can. • Record main points, agreed actions and follow-up - Swiftly follow-up the meeting with all necessary copies and confirmations, and ensure documents are filed and copied to relevant departments. Designing an appraisal program poses several questions, which need answers. They are: 1. Whose performance is to be assessed? 2. Who are the appraisers? 3. What should be evaluated? 4. When to appraise? 5. What problems are encountered? 6. How to solve the problems? 7
  • 14. 7. What methods of appraisal are to be used? Discussion points in the appraisal: 1. Has the past year been good/bad/satisfactory or otherwise for you, and why? 2. What do you consider to be your most important achievements of the past year? 3. What do you like and dislike about working for this organization? 4. What elements of your job do you find most difficult? 5. What elements of your job interest you the most, and least? 6. What do you consider to be your most important tasks in the next year? Benefits: The following are the benefits of a successful appraisal system: 1. For the Organization:  Improved performance throughout the organization due to: - Effective communication of organization’s objectives and values - Increased sense of cohesiveness and loyalty. - Managers are better equipped to use their leadership skills and to develop their staff.  Improved overview of tasks performed by each member of a group.  Identification of ideas for improvement. 8
  • 15.  Communication to people that they are valued. 2. For the Appraiser:  Opportunity to develop an overview of individual jobs.  Opportunity to identify strengths and weaknesses of appraisees.  Increased job satisfaction.  Opportunity to link team and individual objectives with department & organizational objectives.  Opportunity to clarify expectations that the manager has from teams and individuals.  Opportunity to re-prioritize targets  Means of forming a more productive relationship with staff based on mutual trust and understanding.  Due to all above Increased sense of personal value 3. For the Appraisee:  Increased motivation and job satisfaction.  Clear understanding of what is expected and what needs to be done to meet expectations.  Opportunity to discuss aspirations and any guidance, support or training needed to fulfill these aspirations.  Improved working relationships with the superior.  Opportunity to overcome the weaknesses by way of counseling and guidance from the superior Performance appraisal drawbacks: 9
  • 16.  Performance appraisal program demands and depends too much on supervisors.  Sometimes certain standard ratings tend to vary widely and unfairly.  Some raters can be tough, and some lenient. Some departments have highly competent people whereas others have less competent people.  Personal bias can replace organizational standards. Because of the bias, some non competent employees may get a favored treatment.  Sometimes there tends to be lack of communication. The employees may not even know they are being judged. No performance appraisal system can be effective if the appraised do not know the criteria under which they have been appraised and judged. Biases in Performance Appraisal Types Explanation Example 10
  • 17. 11
  • 18. Performance Appraisal Techniques: Traditional Methods of Appraisals: 1. Ranking In this, the superior ranks his/her subordinates in order of their merit, from best to worst. - It is done in a competitive group. - It is done by placing the appraisee on numerical scales I.e. 1st, 2nd, 3rd etc. in the total group. - Ranking of an appraisee on his job performance/traits against that of another member. 2. Person-to-Person/Paired Comparison Under this method the appraiser compares each employee with every other employee, one at a time. - Certain key performance areas/traits are developed. E.g.: Leadership, Creativity, Initiative etc. - A scale for each factor is designed. - A scale of people is also created for each factor. - Each Appraisee is compared to every other person on the scale. - Certain scores for each factor are awarded to the appraisee. 3. Grading 12
  • 19. - Certain categories of traits/performance criteria, which are worth of appraising, are established. E.g. cooperativeness, self-expression, dependability, job knowledge etc. - The actual performance (Key performance area) of an employee is then compared to the predetermined grade definitions. - Appraisee is allotted with the grade, which describes his performance in the best possible manner. - Any grade that is selected should be well defined. 4. Graphic Scales - A printed form, one for each person to be rated is used. - The factors included in the form are Employee characteristics such as leadership, cooperativeness, enthusiasm, loyalty etc. or Employee contribution which includes quantity and quality of work, specific goals achieved, regularity of attendance, responsibility assumed etc. - The traits can be evaluated on continuous scale – the appraiser places a mark along a continuum (range). 5. Checklist - A series of questions are presented concerning an appraisee’s behavior. - The appraiser has to reply to the questions in either negative or positive tone- (Yes/No). - The value of each question may be weighted I.e. one can have predetermined scale and scoring to those questions. 6. Essay - A blank form is given to the appraiser. - The form contains main heading such as employees’ characteristics, attitudes, job knowledge, potential etc. - The appraiser is asked to put in words his impressions about the employee.. 13
  • 20. - It gives specific information about the employee. 7. Confidential Reporting - It is the most traditional way of appraising employee’s performance. The basic assumption here is that since the superior is in direct contact he knows his subordinates better than any other and hence his appraisal would be more appropriate. - The superior writes a paragraph or so about his subordinate’s strengths, weaknesses, intelligence, attitude to work, attendance, conduct and character, work efficiency, etc. 8. Critical Incident Method - Initially a set of noteworthy (good or bad) on-the-job behaviours is prepared. This is usually in the form of incidents. - These incidents are given to a group of experts who assign scale values depending upon the degree of desirability for the job. - This checklist is used by superiors for evaluating the employees. - This method helps in identifying the key areas where the employees are weak or strong. - It emphasizes rating on objective evidence and helps in counseling. 9. Forced Choice Technique - In forced choice system the appraiser is forced to choose one from among a group of 4 statements that best fits the individual being rated and one which least fits him. - Each statement is given a value or a score. - The evaluator does not know the score value of statements; hence he cannot show any favor towards the appraisee. 14
  • 21. - The method of arranging the traits involves a long process from getting the description of “good” or “bad” employees to establishing their validity and reliability. Modern Methods of Appraisal: 1. Behaviorally Anchored Rating Scales: Behaviorally Anchored Rating Scales (BARS) is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job performance or sets of behavioral statements describing important job performance qualities as good or bad (for eg. the qualities like inter- personal relationships, adaptability and reliability, job knowledge etc). In this method, an employee’s actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge. 2. Human Resource Accounting Method Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the performance of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them. 15
  • 22. 3. Assessment Centres An assessment centre typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centres are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centres are also an effective way to determine the training and development needs of the targeted employees. 4. Management by Objectives The concept of ‘Management by Objectives’ (MBO) was first given by Peter Drucker in 1954. Management by Objectives is basically a process whereby the superior and the subordinate managers of an enterprise jointly identify its common goals, define each individual’s major areas of responsibility in terms of the results expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members. Management by Objectives is primarily to change the behaviour and attitude towards getting an activity or assignment completed in a manner that it is beneficial for the organization. Management by objectives is a result-oriented 16
  • 23. process, wherein emphasis is on results and goals rather than a prescribed method. A number of companies have had significant success in broadening individual responsibility and involvement in work planning at the lowest organizational levels. Management by Objectives is a process having following basic steps: I. Set Organizational Goals II. Joint Goal Setting III. Performance Reviews IV. Set check posts V. Feedback 5. 360º Feedback The 360º Feedback process is called multi-source assessment, taps the collective wisdom of those who work most closely with the employee, superiors, colleagues (peers), direct reports and possibly internal and often external customers. The collective intelligence these people provide on critical competencies or specific behaviours and skills gives the employee a clear understanding of personal strengths and areas ripe for development. Employees also view this performance information from multiple perspectives as fair, accurate, credible, and motivating. As the 360º Feedback process better serves the needs of employees, it serves the changing needs of their organizations too. Organizations are reducing hierarchy by removing layers of management and putting more emphasis on empowerment, teamwork, continuous learning, individual development, and self-responsibility. The 360º Feedback Model aligns with these organizational goals to create opportunities for personal and career development. 17
  • 24. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superior’s appraisal 3. Subordinate’s appraisal 4. Peer appraisal. Electronic Appraisal System (eAPPRAISAL) eAppraisal is a recently introduced method of performance appraisal that eliminates paper work. eAppraisal simplifies and enhances the employee performance appraisal process. It provides an organization with a powerful tool to help develop organization’s critical talent all year round. It is easier to conduct eAppraisals by automating the time-consuming process of administrating employee performance reviews. It is flexible and can be customized to suit an organization’s needs. The comprehensive workflow makes it easy for human resource professionals to manage the process by approving appraisal forms, monitoring the status and sending automatic email notifications to managers.. I. Features: 18
  • 25.  intranet-based  Ease of use  Sophisticated workflow  Centralized  User customizable performance appraisal forms  Automated email notification and reminder notice  Comprehensive status and action view for HR manager  Competency-based text answers and/or range scale  Self-rating capabilities II. Benefits:  Appraisals are processed more quickly and efficiently.  Appraisal data is received by concerned superior/manager in virtual real-time when the appraisal is uploaded into eAppraisal system..  Appraisals cannot be misplaced or lost, as is possible with hardcopies. Appraisals can be stored electronically and available online 19
  • 26. Company Profile HALCYON Technologies is an Application Development and Business Process Outsourcing solutions provider. HALCYON Technologies offers a range of services from outsourced application development and managed services to professional services. All Their services are enabled by experienced, knowledge, proven methodologies, global talent and innovation. Their portfolio includes Application Development, consulting, maintenance & support, Business Process Outsourcing, and Testing services. HALCYON provides services to clients from their network of offices across US, UK and state-of-the-art Global Solutions Development center in Hyderabad, India. Their experience with working on and managing outsourced IT projects of large magnitude and BPO solutions gives us a leading edge over their competitors. Their commitment is to produce superior quality deliverables using the industry specified standards. HALCYON achieve this by maintaining an effective and open communication channel across clients in automotive retail industry and have also worked with fortune 500 clients in the Healthcare, Banking, Telecom, Manufacturing, Insurance, Utilities and Financial verticals. Their in-depth understanding of various industry verticals enables us to provide innovative and end-to-end technology solutions. 20
  • 27. With HALCYON Technologies, the clients can rest assured of transport fair working partnership and quality work processes. HALCYON Technologies offers cutting-edge technologies that help the client business improve, and more well ahead of their competitors in the market. HALCYON helps clients: • Create an adaptive technologies infrastructure • Streamline the business processes • Raise the market value • Increase the competitive advantage, and • Support the cost-effective sources of productivity and growth. HALCYON Technologies evolves client-specific strategic initiatives with a dual aim to achieve cost savings, and to improve on quality of services offered. Services 21
  • 28. HALCYON delivers a wide-range of value added services adopting a unique approach of integrating people, processes and technology. HALCYON creates solutions for its clients by leveraging its domain and business expertise along with a range of services. HALCYON Technologies range of services includes: • Application development • Business Process Outsourcing • Consulting • Maintenance & support • QA and testing Technologies As a technology company, HALCYON proactively gains insights into leading and emerging technologies. HALCYON Technologies has expertise in: • Microsoft .NET Technologies • J2EE Technologies • IBM Mainframe Technologies • EAI technologies like Tibco, Web Methods MQ and Seebeyond 22
  • 29. • Report generation using Business Objects, Crystal Reports and Infragistics BPO Solutions HALCYON Technologies Business Process Outsourcing (BPO) services aim at leveraging technologies to provide and manage an organization’s critical and/or non-critical enterprise processes and applications. HALCYON Technologies holistic BPO services integrate software, process management, and people to operate the services. BPO Solutions provided by HALCYON for Automotive industry include: • Data analysis and processing of Rate and Residuals for Car Dealerships BPO Solutions provided by HALCYON for others Industries include: • Information Capture • Data Entry & Correction • Document Conversation Products HALCYON offer product development services enriched with their experience and technology expertise. HALCYON has developed 23
  • 30. products on leading technologies with a strong orientation toward standards-driven architecture. Products developed by HALCYON for Automotive Retail industry are: • Vehicle Comparison Search Engine and Market Analyzer • RFID based Vehicle Management Solutions • CRM & ERP Solutions for Car Dealerships • F & I Menu and Desking Application Solutions Why HALCYON? HALCYON have a vast practical experience of developing and supporting critical applications with high quality and within scheduled time. Their offshore development model id devised to act as an extension of the client, providing them with excellent outputs when needed. By outsourcing your work to HALCYON Technologies, you have powerful advantage like cost saving, quality, time to market and flexibility to adapt to client’s market and customer’s demands. HALCYON Advantage: • Vast experience in working on number of software projects/solutions • Mature onsite-offshore development model with high record of matching deliverables within clients’ expectations 24
  • 31. • Strong Domain experience which has been gained over the years by providing IT Solutions to clients • In-depth understanding of clients’ business • Enviable ability to deliver innovative, reliable and high quality solutions • Cost effective pricing and flexible approach The company-wide mindset of co-ownership and co-responsibility is what differentiates them from any of other players. 25
  • 32. Methodology / Approach As per the requirement of the management to design a new policy for performance Review system, I basically analyzed the questionnaire given to employees to know their perception regarding the Review System and collected information on websites regarding the various methods of appraisals, the process of Performance Appraisals etc and also referred to books to get the idea of the concepts. The practical approach was by – • Understanding the perspective of Management. • Studying the kind of Appraisal suitable for Halcyon environment. • The time period required for the Review to be completed. . The following procedure was adopted:- 1. Before starting up the process and coming up with new policy we thought of taking up the overall outlook with respect to Performance Review. We designed a Questionnaire to analyze the Perception of Employees. 2. The management was approached to discuss the contents of Review policy so that an effective policy can be designed which will be useful hence forth. 3. A customized Performance Review Policy was designed which was a combination of two methods of Appraisal I.e. Self Review method and Peer Feedback method. 4. Self Review method is a method were the employee is asked to give a self rating for himself on the tasks done by him. Later on these same tasks will be appraised by the appraiser and he gives his rating on the same tasks. Peer feedback is the feedback given by the other 26
  • 33. employees to his/her colleague on his technical knowledge as well as the behavioral aspect in the organization. 5. A Presentation on the Performance Review Process as well as the Criteria to give Ratings was given to team members and the Team Leaders so that they have a clear understanding about it. 6. Then the team members were asked to fill up the Self Review Form and submit it to the HR department which in turn passed it to the team leaders. 7. A one to one meeting was fixed with the team leader by the team members accordingly. This was to discuss various aspects of performance of the employee like discussing the ratings given by the appraise and to evaluate his overall performance and set new goals. 8. Then the appraiser gives his own rating to the employee after the one – one discussion and then the report is submitted to the reviewer and a final discussion takes place with the HR Manager to proceed with the next course of action like setting of goals, hike in salaries, performance linked incentives, etc.. 27
  • 34. Limitations:  The Appraisal Process was designed but I could be a part of only Review Process which was conducted in the month of November.  Due to time constraint the Post Feedback of Employees regarding the Review Process could not be taken. 28
  • 35. 29
  • 36. Data Analysis: My self-assessment result contributes to my final appraisal result 10 20 Strongly Agree Neutral Strongly Disagree 70 The Review will help me to improve my future working performance 10 Strongly Agree Neutral 30 60 Strongly Disagree 30
  • 37. I know all the aspects and standards that are used to evaluate my performance 30 40 Strongly Agree Neutral Strongly Disagree 30 Do you feel confident that you will be able to benefit as an appraisee in the review sessions with your team lead 30 35 Strongly Agree Neutral Strongly Disagree 35 31
  • 38. Do you think you need a training program in relation to Clarity of Procedures 20 35 To An Extent Totally Not At All 45 Do you think you need a training program in relation to Process of Performance Review 15 45 To An Extent Totally Not At All 40 32
  • 39. Do you think you need a training program in relation to Self Rating 20 40 To An Extent Totally Not At All 40 What are you looking forward to change Post Review 10 15 Salary Responsibility Team Structure 75 33
  • 40. How do you rate the importance of General Work Behavior in your Review Process? 0 Not Important 40 some what important 60 Most Important Are you aware of the concept of Peer Feedback 30 To An Extent Totally 60 Not At All 10 34
  • 41. Findings As the whole Process was designed by the HR department, I was also involved in it from the designing stage to the implementation part of the Review system. In this process I could recognize the benefits derived out of this system as well as observed some drawbacks. My Findings from the questionnaire were: 1. The perception of employees regarding performance Review was a hike in Salary, which is not the case in reality. 2. After knowing the requirements of employees a training session was conducted to help the employees understand the need and process of Performance Review and Criteria to give Self Rating. 3. They were aware of the fact that the General Work Behavior would play a major role in their Review but were unaware of all the Standards and Aspects used to Evaluate their Performance Other Findings: 4. The process did not take place in the exact time frame as planned and scheduled. 5. A good improvement was seen in the inter-personal relationship between the team leader and subordinates. 35
  • 42. 6. Many employees could not justify the ratings given by them in the Self Review Form. 7. It helped the employees in understanding their past performance and setting up of targets and goals for future. 8. They got to understand the organizational needs and it helped in developing a sense of belongingness towards the company. 9. It helped the management in identifying the Caliber of employees and encourage the same. 10.The employer and employees got a platform to understand each other in a better manner. 11. The management was too much dependent on team leaders for conducting Reviews. 12. When the Peer Feedback Form was given employees were too hesitant in giving ratings to their colleagues. 36
  • 43. 37
  • 44. Recommendations After the successful completion of the whole Process of Performance Review under the supervision of the HR Manager I.e. by recognizing the need for Review policy, designing the policy, taking up a presentation to explain the importance and process of Review, attending the meetings with the team leader, being a part in discussions by the management regarding appraisals and analysis of the feedback given by employees helped me to evaluate the benefits and shortcomings of the Performance Review Process and recommend the measures to improve the same. The recommendations are as follows: 1. Identify the KRA’s (Key Resource Areas) and communicate the same to the employees so that he can be judged appropriately based upon it. 2. The employees must be motivated to fill in the self review form appropriately. 3. They must be appreciated for their individual achievements during the period and training/guidance must be given if they lack in some areas. 4. The review must be conducted informally once in every month so that the desired result can be achieved at the time of actual review. 5. The team leader should treat everyone equally without any bias and give appropriate ratings to each member depending upon their performance. 6. The employees must be educated regarding the importance of Peer feedback that the true rating, be it positive or negative will help his colleague in understanding his abilities and drawbacks and he can develop himself on those aspects. 38
  • 45. 7. To motivate employees for their extra ordinary performance apart from the PLI’s there must be some token of appreciation given for him in the form of promotions or a simple gift voucher etc., 8. The token of appreciation should be given to those employees whose performance was extra ordinary as well as who have been in the organization for a longer period of time. 9. The feedback from employees must also be taken regarding the working style of management so that the management functions can also be improved. They must be given the freedom to express their concerns. 10.While conducting the Performance Review the team member must also be given the right to rate his team leader or provide him the feedback because a cordial relation between the team lead and members of the team is very important and the lack of good understanding may hamper the team work. 11. The problems or hindrances which are faced by employees should be taken care of, so that the employee is satisfied and works enthusiastically. 12. The employees must be informed before – hand that he needs to provide a proper justification for the ratings given by him and it will ultimately help him to recognize his accomplishments and drawbacks. 13. The one to one meeting should be conducted in a peaceful manner so that it does not lead to any argument and the desired objective is achieved. 14. Measures must be taken for effective time management because the delay in the process will lead to distractions. 15. Suggestions must be taken from employees after the review process in order to make it more effective. 16. The career goals and career prospects of an employee must be taken into consideration so that they stay committed to the organization. 39
  • 46. 17. The negative feedback should be given and taken in a constructive manner. 18. There must be delegation of authority so that one individual doesn’t feel the pressure of handling all the responsibilities. 19. Efforts must be taken to reduce the communication gap between the employees and management. 20. All the employees of the organization must maintain a personal diary to record their day to day achievements as well as the problems they faced during performing a particular task so that he has a record of all the things and it can be reproduced in front of the team leader or management as and when the need arises. Performance Review Questionnaire 1. My self-assessment result contributes to my final appraisal result. a. Strongly agree b. Neutral c. Strongly disagree 2. The Review will help me to improve my future working performance a. Strongly agree b. Neutral c. Strongly Disagree 40
  • 47. 3. I know all the aspects and standards that are used to evaluate my performance. a. Strongly agree b. Neutral c. Strongly Disagree 4. Do you feel confident that you will be able to benefit as an appraisee in the review sessions with your team lead? a. Strongly agree b. Neutral c. Strongly Disagree 5. Do you think you need a training program in relation to Clarity of Procedures? a. To an Extent b. Totally c. Not at all 6. Do you think you need a training program in relation to Process of Performance Review? a. To an Extent b. Totally c. Not at all 41
  • 48. 7. Do you think you need a training program in relation to Self Rating? a. To an Extent b. Totally c. Not at all 8. What are you looking forward to change Post Review? a. Salary b. Responsibility c. Team Structure 9. How do you rate the importance of General Work Behavior in your Review Process? a. Not Important b. Some What Important c. Most Important 10. Are you aware of the concept of Peer Feedback ? a. To an Extent b. Totally c. Not at all 42
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  • 50. Self Review Form Name Reviewer DOJ Designation DOR Location Period I. OBJECTIVE REVIEW & FEEDBACK (To be filled in by the Employee and discussed with the Director/ Person reporting to) Rating 1: Poor Performance, 2: Below Par, 3: At Par, 4: Above Par, 5: Excellent No Tasks Self Review Rating Reporting head Review Rating 1. 2. 3. 4. 5. 6. 44
  • 51. II. Other assignments/tasks /achievements that you would like to mention other than those stated in Section I. No Assignments /Achievements Remarks III. Specify the most important factors affecting your work Facilitating Hindering IV. Notes: (Write here a brief description about your work at Halcyon) Signature of the Employee 45
  • 52. V. Reviewer’s Feedback SECTION VI - “General Rating” (To be filled in by the reviewer) Technical Skills Comments Rating Soft Skills Comments Rating Technical Communications Knowledge Coding Skills Team playing Analytical and Attitude Logical Skills Standards Proactive Learn ability Bottom line responsibility Signature of the Reviewer 46
  • 53. SECTION VII - “OBJECTIVE SETTING” (To be filled in by the Employee after discussion with the Director/ Person reporting to) No Objectives Target Date Comments of Director/ Reporting Head 1. 2. 3. 4. 5. 6. Signature of the Employee Signature of the Director/Reporting Head 47
  • 54. Peer Feedback Form Your Name ---> Anna Your Feedback on the Skills of the Team Member Team Member Pradeep Sundeep Rating Remarks Rating Remarks Rating Communication skills Technical skills Bottomline Responsibility Proactiveness Job Knowledge Leadership Skills Learnability Team Player Process adherence Quality of the work product Timeliness Any other Feedback points Worst 0 Bad 1 Ok 2 Good 3 Very Good 4 Excellent 5 48
  • 55. Bibliography Human Resource Management : Gary Desler Appraising and Developing Managerial Performance : T.V.Rao Websites: www.citehr.com www.google.com www.custominsight.com 49