Human Resource Management 2010

December 2010

Human Resource

Management Performance Appraisal in Wipro

Submitted To,

Prof. John Peter

Submitted By,

Hiral Dodia - 60226

Manan Jhaveri - 60416

Rishabh Parekh - 60243

Abhishek Doshi - 60419

Aatash Patel - 60237

Deep Gadhvi - 60238

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Human Resource Management 2010

Contents

Introduction 3

Objectives 3

Methods of Performance Appraisal 4

Traditional Methods 5

Modern Methods 6

Appraisers 7

Process of Performance Appraisal 8

Survey for Performance Appraisal 9

Advantages and Disadvantages of Performance Appraisal 9

Example : Performance Appraisal at Wipro 10

Introduction 10

Timeline of Wipro 10

Appraisal Methods of Wipro 11

Human Resource Planning 12

Capacity Maturity Model (CMM) 12

Evolution of Six Sigma at Wipro 14

Process of HRP at Wipro 14

Performance Appraisal 15

Appraisal System 15

Promotion 16

Compensation 17

Aims of Performance Appraisal at Wipro 17

Example of Performance Appraisal Form 18

360 degree Performance feedback at Wipro 20

Advantages 20

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Human Resource Management 2010

Introduction

"Performance appraisal is the systematic, periodic and an impartial rating of an employee‟s

excellence in the matters pertaining to his present job and his potential for a better job."

The focus of the performance appraisal is providing feedback to the employee with the aim to

eliminate performance deficiencies as well as measuring and improving the actual

performance of the employee and also the future potential of the employee. A logical explanation

would be that it further leads to the performance related pay awards.

Objective

To review the performance of the employees over a given period of time.

To judge the gap between the actual and the desired performance.

To help the management in exercising organizational control.

Helps to strengthen the relationship and communication between superior – subordinates

and management – employees.

To diagnose the strengths and weaknesses of the individuals so as to identify the training

and development needs of the future.

To provide feedback to the employees regarding their past performance.

Provide information to assist in the other personal decisions in the organization.

Provide clarity of the expectations and responsibilities of the functions to be performed

by the employees.

To judge the effectiveness of the other human resource functions of the organization such

as recruitment, selection, training and development.

To reduce the grievances of the employees.

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Methods of performance appraisal

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Human Resource Management 2010

Traditional Methods

1. Essay evaluation method

This method asked managers/supervisors to describe strengths and weaknesses of an employee‟s

behavior. Essay evaluation is a non-quantitative technique. This method usually use with the

graphic rating scale method.

2. Straight ranking method

This is one of the oldest and simplest techniques of performance appraisal. In this method, the

appraiser ranks the employees from the best to the poorest on the basis of their overall

performance. It is quite useful for a comparative evaluation.

3. Paired comparison analysis

Paired comparison analysis is a good way of weighing up the relative importance of options.

A range of plausible options is listed. Each option is compared against each of the other options.

The results are tallied and the option with the highest score is the preferred option.

4. Critical incident method

The critical incidents for performance appraisal are a method in which the manager writes down

positive and negative performance behavior of employees throughout the performance period.

5. Field interview

In this method, a senior member of the HR department or a training officer discusses and

interviews the supervisors to evaluate and rate their respective subordinates. A major drawback

of this method is that it is a very time consuming method. But this method helps to reduce the

superiors‟ personal bias.

6. Weighted checklist method

This method describe a performance appraisal method where rater familiar with the jobs being

evaluated prepared a large list of descriptive statements about effective and ineffective behavior

on jobs

7. Graphic rating scales

The Rating Scale is a form on which the manager simply checks off the employee‟s level of

performance. This is the oldest and most widely method used for performance appraisal.

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8. Forced ranking (forced distribution)

Forced ranking is a method of performance appraisal to rank employee but in order of forced

distribution.

For example, the distribution requested with 10 or 20 percent in the top category, 70 or 80

percent in the middle, and 10 percent in the bottom.

Modern Methods

1. Management By Objectives (MBO) method

MBO is a process in which managers / employees set objectives for the employee, periodically

evaluate the performance, and reward according to the result.

MBO focuses attention on what must be accomplished (goals) rather than how it is to be

accomplished (methods)

2. 360 degree performance appraisal

360 Degree Feedback is a system or process in which employees receive confidential,

anonymous feedback from the people who work around them. This post also includes

information related to appraisal methods such as 720, 540, 180…

3. Assessment centers

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 centers are interpersonal skills,

intellectual capability, planning and organizing capabilities, motivation; career orientation etc.

assessment centers are also an effective way to determine the training and development needs

of the targeted employees.

4. Behaviorally anchored rating scales

This method used to describe a performance rating that focused on specific behaviors or sets as

indicators of effective or ineffective performance. It is a combination of the rating scale and

critical incident techniques of employee performance evaluation.

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Human Resource Management 2010

5. 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 appraisal 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.

Appraisers in performance Appraisal

PEERS

SUPERVISORS

SELF

APPRAISAL

CUSTOMERS /

CLIENTS

SUBORDINATES

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Human Resource Management 2010

Process of Performance Appraisal

Establishing Performance

Standards

Measuring Actual

Performance

Communicating Standards

and Expectations

Comparing with Standards

Discussing Results

( Feedback )

Decision Making – Taking

Corrective Actions

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Human Resource Management 2010

Results on Performance Appraisal (Purpose of the

Organization)

Advantages and disadvantages of performance appraisal

Advantages of doing performance appraisals:

They provide a record of performance over a period of time.

They provide an opportunity for a manager to meet and discuss performance with an

employee.

Provide the employee with feedback about their performance and how they completed

their goals.

Provide an opportunity for an employee to discuss issues and to clarify expectations with

their manager.

Offer an opportunity to think about the upcoming year and develop employee goals.

Can be motivational with the support of a good reward and compensation system.

Disadvantages of performance appraisal

If not done appropriately, can be a negative experience.

Are very time consuming, especially for a manager with many employees.

Are based on human assessment and are subject to rater errors and biases.

If not done right can be a complete waste of time.

Can be stressful for all involved.

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other Puposes

Promotions, Demotions & Transfers

Deciding Future Goals & Course Of Actions

Identifying Cause Of gaps In Performance

Training & Development Needs

Payroll & Compensation Decision

6%

35%

42%

76%

71%

80%

Series1

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When I look at where we have come, what gives me tremendous satisfaction is not so much the success, but the fact that we achieved this success without compromising on the value we defined for ourselves? Values combined with a powerful vision can turbo-charge a company to scale new heights and make it succeed beyond one’s wildest expectations.”

-Azim Premji

WIPRO

Wipro started as a edible oil Producer in1945 under the name Western India Vegetable

Products

Chairman- Azim Premji

In 1977 it entered the IT segment.

Third largest IT services company in India

3rd

Best HR Management company in India

Employees- 97250 as on November 2008

Time Line of Wipro

1945- Incorporated as Western India Products Limited

1947-Establishment of an oil mill at Amalnaer, Maharashtra, India

1960- Manufacture of laundry soap 787 at Amalmaer

1970-Mfg of bakery shortening vanaspati at Amalnaer

1975- Diversification in Engineering and mfg of hydraulic cylinders as WINTROL (now called

Wipro Fluid Power) Division in Bangalore.

1977- Name of the company change to Wipro Products Limited

1980-Diversification into Information Technology

- This is the time the top IT managers Shreedhar Mitta, Dr. Laxman Rao, Venkatesh ,

Sadashivam quit in one stroke from the IT division of Giant public sector ECIL,

Hyderabad to join Wipro.

1988-Crossed the $10million mark in annualized revenues.

1990- Incorporation of Wipro-G Medical Systems.

1992- Going global with global IT solutions

1993- Busny to achieve the TL9000 certification for industries specific qualities standards.

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Human Resource Management 2010

Wipro acquires American management systems global energy practice

Becomes world‟s first PCMM level 5 company.

Premji established Azim Premji foundation, a not for profit org for elementary education.

Wipro becomes only Indian company features in business week‟s 100 best performing

Technology Company.

1995- Established Wipro Academy of Software excellence.

2002-Wipro acquires spectra mind.

Ranked the 7th software services company in the world by business week (InfoTech 100

,Nov 2002)

2003- Wipro acquires curve wire

Wipro tech wins prestigious IEEE award for software process excellence

Wipro tech wins prestigious ITSMA award for services marketing excellence

Wipro wins the 2003 Asians most admired knowledge award

2004- Crosses the $1Billion Million.

IDC rates Wipro as the leader among worldwide offshore service providers.

2005- Wipro acquires empower to enter payments space & also acquires European system on

Chip(SoC) designed firm new logic

2006- Wipro acquires enabler to enter niche retail market.

2007- Wipro acquires US‟s info crossing for 600M.

2009- Wipro acquires Gallagher financial system to enter mortgage loan origination space.

Wipro Stops Semi conductor IP solutions and closes New logic Sophia-Antipolis R&D,

France.

Wipro launches ESS- Electronic Security Solutions with production CCTV system access

control system and building management system.

Appraisal methods of Wipro

e-performance management

People Capability Maturity Model (PCMM)

Identification of start performers

Intensive training program

Quarterly and half yearly performance appraisal

360 degree performance feedback

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Human Resource Management 2010

Human Resource Planning (HRP)

The basic purpose of having a manpower plan is to have accurate estimate of required

manpower with matching skills requirements. The main objectives are:

Forecast manpower requirements.

Cope with changes – environment, economic, organizational.

Use existing manpower productively.

Promote employees in a systematic way.

Wipro is the first People Capability Maturity Model (PCMM) Level 5, SEI Capability

Maturity Model(CMM) Level 5 and version 1.1 of CMMi certified IT Services Company

globally. Wipro‟s people processes are based on the current best practices in human resources,

knowledge management and organization development, giving a great focus to match changing

business needs with development of employee competencies.

Capability Maturity Model (CMM) Wipro has expertise in Six-Sigma methodologies, which have been put in use to streamline and

enhance existing people processes in organizations, enabling decision making based on metrics

and measurements.

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Human Resource Management 2010

The central idea behind Six Sigma is that if you can measure how many “defects” you

have in a process, you can systematically figure out how to eliminate them and get as

close to “zero defects” as possible.

Six Sigma starts with the application of statistical methods for translating information

from customers into specifications for products or services being developed or produced.

Six Sigma is the business strategy and a philosophy of one working smarter not harder.

Wipro is the first Indian company to adopt Six Sigma. Today, Wipro has one of the most

mature Six Sigma programs in the industry ensuring that 91% of the projects are completed on

schedule, much above the industry average of 55%. As the pioneers of Six Sigma in India, Wipro

has already put around ten years into process improvement through Six Sigma. Along the way, it

has scaled Six Sigma ladder, while helping to roll out over 1000 projects. The Six Sigma

program spreads right across verticals and impacts multiple areas such as project management,

market development and resource utilization.

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Human Resource Management 2010

Evolution of Six Sigma at Wipro:-

Six Sigma at Wipro simply means a measure of quality that strives for near perfection. It

is an umbrella initiative covering all business units and divisions so that it could transform itself

in a world class organization. At Wipro, it means:

(i) Have products and services meet global benchmarks

(ii) Ensure robust processes within the organization

(iii) Consistently meet and exceed customer expectations

(iv) Make Quality a culture within.

As timely reviews play a very crucial role to judge the success of a project. Wipro had to develop

a team of experts for this purpose. The task assigned was to see the timeliness, find out gap,

week areas and to check the outcome as per the plan.

Process of HRP at Wipro

Process of human resource planning at wipro is done by the top management executives of HRD.

They formulate the different polices in reference to the Human Resource Planning. Human

Resource Policies in Wipro are as follows :

Manpower Planning

Recruitment & Selection

Training & Development

Performance Appraisal

Promotion, Transfer, & Demotion

Administration Section

Grievance Handling

Kaizen suggestion

Welfare Activities

Wipro Employee Stock Option Plan (WESOP) Allows employees to share in companies

success

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Human Resource Management 2010

Performance Appraisal Appraisal System

In order to answer your Performance related questions, Wipro offers an integrated end-to-end

Performance Management Solution. This solution is based on global people processes drawn

from best practices and helps organizations streamline their performance evaluation processes.

Wipro‟s e-Performance Management solution not only helps you establish the best

practices in Performance Management, like 360degree appraisal, MBO, etc, but enables reduced

Performance Management cycle time without compromising on the sub-processes which are so

critical to your HR values, like Work Planning Conference, Work Plan establishment,

Development plans and Objective setting, Interim Review, Overall evaluation, detecting

Performance deficiencies, Tracking, Documentation and Archiving.

Once reviewed by HR dept. Assistant (HR) updates the records for each employee‟s score in the

database.

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Human Resource Management 2010

Promotion

“Higher you go. Heavier you get”.

A promotion is the advancement of an employee's rank or position in an organizational hierarchy

system. Promotion may be an employee's reward for good performance i.e. positive appraisal.

Before a company promotes an employee to a particular position it ensures that the person is able

to handle the added responsibilities by screening the employee with interviews and tests and

giving them training or on-the-job experience.

As per Guidelines for supervisory employees‟ promotion/up gradation, applicable to the present

year, Manager (HR) prepares the list of eligible employees. Simultaneously, V P (HR) also asks

for recommendations from HODs. A comprehensive list is then prepared by Manager (HR) and

submitted to the EPPP which is announced by the Site President, for Executive and Manager

Family, and by the Group President (MSD), for Leader Family.

Bases of Promotion:-

1. Seniority

Seniority simply depends upon how long the employees is doing job with the company.

The length of service and talent are both interrelated with each other. It is based on the tradition

of respect for older people. It creates a sense of security among employees and avoids conflict

arising from promotion decision.

2. Merit

Merit implies the knowledge, skill and performance records of an employee. It helps to

motivate competent employee to work hard and acquire new skills. It helps to attract and retain

young and promising employees in the organization.

On the above basis, promotion of employees is done in Wipro. Wipro also prompt employee by

conducting different case studies on different aspects of Information Technology. Working at

Wipro is very comparative & to get promotion required smart work and projection.

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Human Resource Management 2010

Compensation

Compensation is a systematic approach to providing monetary value to employees in exchange

for work performed. Compensation may achieve several purposes assisting in recruitment, job

performance, and job satisfaction.

Wages and salaries structure is very vital for the retention of the employees as due to stiff

competition, if proper salary is not given then the employees will go to those organization

offering higher salaries. Jivraj Tea Ltd is actively involved in retaining good manpower in the

organization by providing proper salary and incentive methods. Wipro runs 50 offices in India. It

has a branch office in USA, Canada, Europe, Middle east, Africa etc ….

Employee

Class

No. of

Employees

Salary

(Rs. / Month)

A+ Class 128 120000 U.S. $

A Class 1240 150000

B+ Class 33000 60000

B Class 22000 40000

Technicians 4000 35000

Zero Level 3440 10000

Aims of performance appraisal at Wipro

Give feedback on performance to employees

Identify employee training needs

Document criteria used to allocate organizational rewards

Form a basis for : promotion, demotion, disciplinary actions etc.

Provide the opportunity for organizational diagnosis and development

Facilitate the communication between the employee and the administrator

Validate selection techniques and human resource policies to meet Federal equal

employment opportunity requirements

Wipro‟s solution aims at strategic value delivery in the least possible time incorporating rich

functional features, aided by smooth workflow, notification, authorization, etc.

Align employee objectives to the business goals.

Enable strategic performance management through Management by Objectives (MBO)

Measure and Assess employee performance periodically and provide feedback and

support to achieve quantitative, qualitative and process targets

Evaluate and track Hi-Performance and achievers based on competency driven practices.

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Example of performance appraisal form

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360 degree performance feedback at Wipro

Wipro also uses 360 degree performance feedback technique for the appraisals.

360 degree feedback, also known as „multi-rater feedback‟, is the most apprehensive appraisal

where the feedback about employees‟ performance comes from all the sources that come in

contact with employee on his job.

360 degree respondents for an employee can be his/her peers, managers, subordinates, team

members, customers and suppliers/vendors etc - anyone who comes in contact with the employee

and can provide valuable insights and information or feedback regarding the „on-the-job‟

performance of employee.

Other companies using 360 degree performance appraisal method

Tata Infotech

HCL Infosystems

Asian Paints

Ashok Leyland

Important factors in 360 degree feedback

According to Mr. Pratik Kumar – Corporate VP HR, Wipro Technologies Limited

The mission and objective of the feedback must be clear

The employees must be involved early

Resources must be dedicated to the process, including top management‟s time

Confidentiality must be ensured

The organization, especially top management, must be committed to the program

Advantages

To the Individual

Helps one to understand that how other perceive him/her

Uncover blind spots

Quantifiable data on soft skills

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Human Resource Management 2010

To the Team

Increases Communication

Higher levels of trust

Better team environment

Supports teamwork

Increased team effectiveness

To the Organization

Reinforced corporate culture by linking survey items to organizational leadership

competencies and company Values

Better careers development for employees

Promote from within

Improves customer service by involving them

Conduct relevant training