1. Group 1 Neeraj Panjwani Aakanksha Gupta Aakanksha Siwach Anurag Shukla Anurag Omer Ashutosh Parashar

2. Performance Appraisal is the systematic evaluation of the performance of employees and to understand the abilities of a person for further growth and development. PERFORMANCE APPRAISAL OBJECTIVES To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. To identify the strengths and weaknesses of employees to place right men on right job To maintain and assess the potential present in a person for further growth and development To provide a feedback to employees regarding their performance and related status To review and retain the promotional and other training programs ADVANTAGES Promotion Compensation Employee development Motivation INTRODUCTION

3. Types of Performance Appraisal Systems 360- Degree Appraisal Management by Objective Balanced Scorecard Forced Ranking Straight Ranking Gathering feedback from multiple parties such as managers, co-workers, customers and even vendors Two types : 1. Structured 360 Feedback 2. Unstructured 360 Feedback This approach combines quantitative info such as sales quotas and funds requirement, with performance standards particular to the position It utilizes key performance indicators, or KPIs, to observe and track how well the employee has reached short- and long-term goals Utilized at the highest echelon of business and sometimes middle management as well The manager and the employee agree upon specific and attainable goals with a set deadline The process relies on goals setting and constructive feedbacks The straight ranking method compares workers with each other, ranking them from best to worst Measure the performance of an employee against the performance of his peers to identify the best and worst performers Results in more productive workforce overall, however may lead to a very competitive work environment and a lack of collaboration and cooperation between employees PERFORMANCE APPRAISAL SYSTEMS

4. PERFORMANCE APPRAISAL SYSTEMS USED IN IT COMPANIES Continuous Feedback Employers give employees feedback and also invite employees to provide feedback directly to managers and the leadership team Helps in the identification of potential problems or sources of discontent quickly and response to industry changes For example – Wipro iCount Employees are rewarded on particular short-term targets and are given feedbacks throughout the year Higher focus on individual performance rather than relative performance For example – Infosys Sync Up Conversations Informal discussions between the appraisers and the appraises For example - Cisco Checkpoint Five-point scale Evaluation of employees on five parameters - impact on client success, business results, innovation, personal responsibility towards others and employee skills on a quarterly review basis, example IBM India Objectives and Key Results Employees set goals for themselves and come up with quantifiable results For example - Google

5. Primary Data Primary data are those which are collected afresh and for the first time, and thus happen to be original in character. In this report, the primary data will be collected by means of floating a questionnaire to employees of Infosys Limited to assess the type, objective, and performance of the performance appraisal system used in their organization/ Secondary Data Secondary data means data that are already available, i.e. they refer to the data which have already been collected and analysed by someone else, which may be published or unpublished. Secondary data for this report has been mainly obtained from the Internet. DATA COLLECTION METHOD Convenient method is used in this method in which the researcher selects those units of population in the sample that appear convenient to him in conducting the research. Sample Size: 43 This refers to the number of items to be selected from the universe to constitute a sample. An optimum sample is one which fulfils the requirements of efficiency, representatives, reliability, and flexibility. The interpretation of the data gathered will be done using bar charts, and pie diagrams. DATA ANALYSIS TOOLS METHODOLOGY SAMPLING METHOD

6. Infosys has scrapped off the bell curve based CRR rating system to bring in the new system The ratings would be given disproportionately to motivate the employees to focus on the task at hand. Setting the goals and the targets with the manager on the mutual agreement Targets are based on the task Feedback and rating of each task is soon after the task is completed. Final rating is given annually based on the task performance given throughout the year Final rating reviewed by Higher Management to ensure transparency and fairness SALIENT FEATURES OF NEW APPRAISAL SYSTEM The ratings given to the employees from Highest to Lowest are- Outstanding Commendable Met Expectations Below expectations THE NEW ICOUNT APPRAISAL SYSTEM THE 4-RATING SYSTEM

7. The ratings given to the employees from Highest to Lowest are- Outstanding Commendable Met Expectations Below expectations THE NEW ICOUNT APPRAISAL SYSTEM THE 4-RATING SYSTEM

8. AnalysisInsights Majority of the Appraisals are handled by supervisors that includes Project Manager, Senior Manager and Delivery Manager. With the rise of 360 degree system overall assessment including clients and subordinates is being carried out Conflicts and Performance appraisal goes hand in hand. A trend is observed a lot of employees leave jobs just after appraisal. The conflict in Performance Appraisals arises not because of Performance Appraisals but due to the rewards and punishment A majority of managers associate performance appraisals and goal setting with hidden potential of employees. To identify hidden talents employees are allowed to choose their own goals Performance Rating and conflictsWho all are consulted before rating Identification of hidden potential SAMPLE SIZE=43

9. AnalysisInsight Partiality is perceived as the most evident evil in Appraisal Systems and majority of the employees feel that their managers are biased and partial. Appraisal Systems helps employees in setting and achieving meaningful goals. Majority of the employees feel that their performance increase after the process of performance appraisal. Employees also view Appraisals as a mean of reducing grievances and improving their personal skills PartialityAchieve GoalsIncrease in performanceReduction in Grievances Views on Appraisal Systems

10. Objective of Performance Appraisals Analysis Employees have a notion that Performance Appraisals are done with the sole intent of giving bonus and discussing about pay hikes and that is evident from our research. Employees also consider Appraisal System as a means for getting genuine feedback and a ladder for their promotion. Motivation is not generally associated with Appraisal Systems in today’s era but still some employees seek Appraisals as a form of motivation.

11. PERFORMANCE MEASUREMENT AT INFOSYS LTD The bell curve system for performance appraisal High Performers – top 20% Average Performers –middle 70% Non-Performers or Below Average Performers –bottom 10% Old System Problems In Old System Too Rigid Doesn’t give performance feedback May create unhealthy competition Middle position is hardly motivating Manipulation tool by managers Performance of the employees is reviewed quarterly and not yearly which was before in forced ranking system No rating for employees is given anymore for appraisals This method is a more fluid system New System Advantages of New System Reduced employee disengagement and less of a fixed mindset Less negative feelings from supervisors about being ranked More number of benefits especially in high talent lot of employees Enlarged bias with managers creating their own rules Motivates employees to improve performance regularly