Performance & Reward Systems

Analysis

INTRODUCTION

C
O
N
T
E
N
T
S

EXISTING SYSTEM
REWARD INTAKES
CHRONOLOGY
PROCEDURE
HIERARCHY
CHALLENGES FACED
ACTION PLAN
IMPACT
SUMMARY

Performance Evaluation in TCS

TCS spends 6-7% of its total annual sales on training & Rewards.
Annual employee attrition rate was 12.6% for FY 2011-12.

Objectives of Goal setting

Enables employees to realize about their contribution
TRACKS THE ACHIEVEMENT OF
EMPLOYEES ON THE BASIS OF
TARGETS AT FOUR LEVELS

Factor taken care during

the goal setting process

Financial Perspective

Objectives

Internal Perspective

KPIs/ Measures

Customer Perspective

Targets

Learning and Growth

Initiatives

Existing Framework
Features
Regular Feedback throughout the year: goal & behaviour.
Trainings are organized : focus on goal setting, fair
evaluation, giving feedback and handling difficult reactions
Workshops to perform the responsibilities
Digitized PMS: 95% done online.
Employee Assistance Program
Leadership Review Management
Career Hub
INSPIRE

Rating Process
Half yearly basis H1 & H2
Basis of that employee gets a band which is in correlation with
the ratings.
Rating from 1-5 for non project activities.
Corresponding to the project performance band rating from A E.

Rating is calculated on a percentage basis on completion of

goals.

Process Timeline
Month

Process

April

Goal
Setting

Method

April
mid

Starts
working
towards
achieving
goals

Discussion with

immediate superior.
Goals set.
Review process with
immediate superior.

Goal sheet send to HR of

respective enrolled
project.
Send to next superior
for record keeping and
giving feedback.
Process takes 15 days to
complete
Continuous evaluation

by immediate superior.
Feedback given
whenever required.

Quantifying
measures
Weightage given
to each goal based
on corporate
guidelines.
Can opt for
trainings to
increase specific
skills/competencie
s.

In case of goals to
achieve specific
skills gets enrolled
for training
programs.
In case of

Process Timeline
August

Mid-Year
Rating

Employee gives rating on self-

performance
based
on
parameters/goals set in April

Evaluation done based

on performance in
Project

Immediate
superior
gives
comment on the given ratings
and puts his ratings irrespective
of what the employees ratings.
Ratings are in the range of 1-5

Completion of Trainings

Next superior reviews the

process and gives ratings on the
basis of ratings given by the
immediate superior

After completion of individual

rating, HR manager collects all
the ratings of the employees who
are in the project and gives the
final rating/band on the basis of
normal distribution or curve
distribution

Reward Rating Process

Project Rating is based on BAND determined by normal
distribution
Non Project rating is based on 1-5 rating

Mid Level Hierarchy

Promotion rewards Hierarchy based

Ratings satisfactory then only promoted. For example ASE SE
Direct Promotion to second level possible if Outstanding in two
consecutive years

Challenges faced
Attrition rate increases
Assessment focussed and subjective system
Largely process driven (Template used, process and
timeline)
Compliance is given importance rather than
coaching mentality
Primarily Bi-annual focussed system
Immediate superiors as goal setting mentors
Ratings given on the basis of number of people in
the Project

Action Plan for Improvement

TCS Performance Management Dashboard

Components
Dashboard

Compliance Targets
Utilization Percentage
Mandatory Trainings
Communication Training hours
Learning Hours
Firm Initiative Hours

of Rating System
Mid-Year Rating
Year End Rating

Feedback System

Project feedback
Primary Feedback Provider Project Lead Level
Secondary Feedback Provider Project
Manager Level

Performance culture driven strategy

Real time Performance Dashborad

Helps Employee identify where they stand

Emails and alerts send for deadlines
Suggestions for trainings to be taken based on hierarchy
Self driven system

Impact on Employees

Positive attitude as recognition is given

Discussion driven
Continuous feedback system

Advantages
Non-biased system
Single rating scale Easier to comprehend
Goal setting framework is improved as mentors
are assigned
Transparent system Real time dashboard
System focussed on outcomes rather than
compliance
Link Performance Management to Talent
Management
Continuous feedback loops
Self-directed, high commitment to own
performance and development

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