performance management system infosys case study

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360-degree performance appraisl at Infosys

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A study on 360-degree performance appraisal at infosys, introduction to the project:, : objectives of the study:, 1. to know about system of performance appraisal at infosys, 2. to study the attitude and behaviour of employees at infosys, 3. to know 360-degree performance appraisal system at infosys, 4. to study if the employees are satisfied with this technique and its impact on their, performance., : scope of the project:, 1. the study focuses mainly on the 2 departments namely, human resource, management and development department and training and development center., 2. a study on performance appraisal provides a wider scope as the productivity of every, employee is mainly dependent on the performance. the study allows he, implementation of suitable performance appraisal system, understand the role of, motivation and job satisfaction as an essential element for improvement of, performance, know about working conditions of the employees., : limitations of the study:, 1. employees were biased to provide the information., 2. some of the information provided by employees may not be exactly correct., 3. limited time so the time constraint was a serious issue., : introduction to the company:, infosys is an indian it company, providing global business consulting and it services and, helps around 45 countries to form and implement strategies that could lead to their digital, transformation. it also helps various businesses to renew and improve the existing business, conditions to achieve higher efficiencies and survive in the present times. the company has, more than 2,00,000 hardworking and dedicated employees that lead to the growth of, infosys and be a 10 billion company with a market capitalisation of 39 billion., infosys limited was earlier known as infosys technologies limited and was initiated in 1981,, by n. narayana murthy and 6 other engineers in pune, india with a capital investment of, 250 us dollars., in 1933, the company went public and also started the employee stock option programme. it, moved the office from pune to bangalore in 1994 and become first indian it company to be, listed in nasdaq in 1999. in the year 1999, it was in the top 20 companies in nasdaq by, market value., the company is headquartered in bangalore. the company aims to be vibrant, dynamic and, value-based provider of it services, centred around its employees, customers and social, goals. the tagline of the company says: “powered by intellect, driven by values.”, the company’s vision statement states “to be a globally respected corporation that provides, best-of-breed business solutions, leveraging technology, delivered by best-in-class people.”, the mission statement of the company depicts “to achieve our objectives in an environment, of fairness, honesty, and courtesy towards our clients, employees, vendors and society.”, the company develops and maintains softwares and provide services to various companies, belonging to different sectors such as finance, manufacturing, insurance, etc. some of the, work-related platforms used in infosys are:, 1. nia: next generation integrated ai platform which was formerly known as mana., 2. edge verse systems such as finacle, 3. infosys information platform., : executive summary:, appraises the overall performance of the employees that will be satisfactory for them and, help them identify their own strengths and weaknesses and ultimately motivate them to, grow. to make this more successful a separate committee named as the “apex committee” is, also formulated through which the employees get motivated and in turn improve their, efficiency and this finally leads to both personal development of employees and the, development of the organisation as well. infosys has also formulated such an apex, institution that ultimately supports the employees and play a vital role in identification of, their weaknesses and benefit from the identified information. they are also responsible for, deciding the grading criteria for the performance appraisal of all the employees in the, organisation., to facilitate further smooth functioning of the 360-degree performance appraisal system at, infosys, the company should concentrate on the development of individual employees and, effective training and development programmes should be initiated. there must be proper, facilities for the interaction and communication of employees with their superiors and, consider their suggestions and feedbacks as well. there should also be different, performance appraisal methods for managerial as well non managerial staff., : introduction to the topic:, performance appraisal considers the past performance of employees and focus on the, improvement of future performance of the employees. it can be defined as a regular review, of performance and overall contribution of employees. it is the systematic evaluation of the, employee’s performance, and try to understand the abilities and potential of the employees, to further grow and develop. it is done in a systematic manner in which the superior, measure the renumeration of employees and compare it with the employee’s targets and, plans, analyse the factors that affect the performance of any employee and guide them for a, better and improved performance., features of performance appraisal includes:, 1. setting up smart goals for employees,, 2. evaluate performance of employees,, 3. coach and train employees to improve their performance,, 4. define compensation plans for the employees., the major objectives of performance appraisal include:, 1. reviewing the employee performance over a time span, 2. to ascertain the gap between standard and actual performance of the employees, 3. assist the management in exercising and implementing organisational control, 4. strengthen the relationship and communication between employees and, 5. diagnose the weaknesses and strengths of individual employees to know and, understand their training and development needs, 6. provide regular feedback to the employees regarding their performance., 7. to facilitate decision making in the organisation, 8. to clarify expectations and responsibilities of functions that need to be performed by, the employees., 9. help in judging the effectiveness of other hr functions namely, recruitment, training, and development, selection, etc., 10. reduce the employee’s grievances, the advantages of the performance appraisal of employees in an organisation are:, 1. it helps the superiors in finding out the efficient employees for promotion, 2. it helps the management in developing the compensation packages for the, employees as per their potential, merit rating can also be done through performance, appraisal. the compensation packages of the employees including the salary, bonus,, increments, extra benefits and allowances, and many other perquisites are totally, dependent on the performance appraisal of the employee and the criteria focused, on is merit rather than seniority., a. eliminate rater’s biasness, b. the problem of making use of different raters with different scales can be, avoided, by determining pre-defined categories or percentiles., disadvantages of forced distribution method:, a. it may lead to low morale of the employees who fall in downward categories and, result in low productivity and high absenteeism., b. employees who feel they are productive but gets rated in the lower grade than, they actually expected may feel frustrated and may not be able to concentrate on, their work with efficiency, 3. critical incident technique: the manager prepares a list of effective as well as, ineffective behaviour of the employees that represent their outstanding or poor, performance at the work. logs of each employee is maintained and at the end of a, rating period, these recorded incidents are used to evaluate the performance of the, advantages of critical incident method:, a. provide a base for discussion on the performance of the employees, b. avoid the recency bias that can be stated as emphasing the most recent incidents, disadvantages of critical incident method:, a. negative incidents may be more noticeable than the positive ones., b. it is associated with very close supervision and an employee may feel reluctant to, c. recording of the incidents is an essential element but the manager can be really, busy or may even forget to notice and record the incidents, 4. checklists and weighted checklists: this method uses a large statement in which the, description of a specific jobs is dotted down. each element of the list has a weight or, scale value attached while rating the manager studies each of the element in the list, carefully and closely describe the subordinate he is assessing. this sheet is then, scored by averaging the weights, advantages of checklists and weighted checklists method:, a. it is one of the most commonly used method of performance appraisal, b. all the elements needed to perform the job are considered as per their, importance and role in the job., disadvantages of checklists and weighted checklists method:, a. expensive and time-consuming method, b. rater may be biased, c. difficult to assemble, analyse and weight a number of statements of each of, the employee and this makes it a lengthy procedure too., 5. field review method: the performance of an employee is assessed after an interview, between the rater and the immediate superior of the employee whose performance, is to be evaluated. then the hr department prepares a report on the basis of the, information gathered., 6. management by objectives: the performance of the individual employees is rated, against the achievement of the objectives that are stated by the top management., the process of mbo:, a. establish goals and desired outcomes for each employee, b. set the standards of performance, c. compare the actual goals with the goals that are being achieved by the employee, d. establish new goals and new strategies for the goals that remained unattained., advantages:, a. it is very useful for managerial positions, disadvantages:, a. it may not be applicable to all the jobs,, b. allocation of merit pay may lead to employee focused more on the short-term, goals rather than the long-term objectives of the firm., 7. psychological appraisals: such appraisals focus more on the assessment of an, employee’s potential to perform in the future rather than considering his past, performances. it is done in the form of in-depth interviews, psychology tests and, various discussions with the superior and other employee’s reviews. it pays more, attention to the employee’s emotional, intellectual, motivational and other personal, characteristics that may affect the performance. this method is suitable for large, enterprises to facilitate developing leadership pipelines, team building and resolving, the conflicts, etc., advantages of psychological appraisals:, a. exactly measurable and objective data that not only measures the performance, but also assess the potential of the employees., b. can be easily used along with other performance appraisal techniques, c. it provides the shy or introvert employees an opportunity to shine and prove, disadvantages of psychological appraisals:, a. absence of proper training, b. lack of trained professionals to administer reviews, c. nervousness of employees may have an adverse effect on the results, performance appraisal is to create bars that shows the critical incidents including, the workplace behaviour that is expected from the employees, after identification, any redundancy among these bars is eliminated and lastly they are randomized and, assessed to check for their effectiveness in evaluating the employee’s performance. it, is suitable for all the businesses of any size to assess the performance of their human, resource (i. from entry level agents to c-suite executives)., advantages of bars method:, a. clear standards, accurate appraisal of the employee’s performance, improved, feedback and consistent evaluation, b. decreased biasness and fairness in the performance appraisal process., c. elimination of irrelevant variances in the performance evaluation, disadvantages of bars method:, a. high chances of subjectivity, b. requires more managers and senior executives to implement, c. creation and implementation are quite time consuming, d. it is difficult to make the decisions regarding compensation and promotions, 360-degree performance appraisal: introduction, unlike the traditional approach of performance appraisal in which the top management or, the superiors appraises the performance of their subordinates, the 360-degree performance, appraisal takes into account the feedback from various sources. it is also known as a multi, rate feedback in which the feedback regarding the employees are taken from various, sources that are in contact with the employees during the work. the feedback in 360-degree, appraisal can be taken from the peers of employees, team members, subordinates, manager,, customer, supplier or anyone who comes in contact with the employees and can offer, valuable insights regarding the employee performance., the 360-degree performance appraisal comprises of 4 major components, namely: self-, appraisal, superior appraisal, subordinate appraisal and peer appraisal., self-appraisal offers the employees the chance to look at their own strengths and, weaknesses, and judge their performance on their own., subordinate appraisal allows the judgement of employees on the basis of their abilities to, motivate and communicate with their subordinates, delegation ability and qualities to lead, 360-degree performance appraisal is one of the most comprehensive performance appraisal, technique in which the feedback about the performance of the employees is taken from, those who are in contact with the employees while working, for instance, colleagues,, superiors, subordinates, clients, vendors, etc. the employees gets ratings from overall 360-, raters and includes performance appraisal by all above, below or side of an employee whose, performance in being evaluated., 360-feedback is defined as the process of employees, customers and management receiving, reactions, advice, opinions, comments, pointers, views, responses and criticisms from each, other about their performance efficiency and facilitate their professional development. it, can also be defined as the process in which the individuals are rated by the individuals who, are aware of the work., a 360-degree feedback system have been designed to develop and discover employee’s skill, level, the capabilities and knowledge of the employees and look for the various ways to, improve the individual’s way of improving their job performance., it is a multidimensional performance appraisal method that assesses and employee with the, help of the feedback that is collected from an employee’s circle of influence i. managers,, peers, customers and direct reports. this method along with eliminating biasness in the, reviews of performance also offers a clear understanding of competence of the employees., the system was initiated in the early 1940s, most scholars believe that the historical roots of, this method lies in the military context. during 1950s and 1960s, the multi-rater trend, continued in united states within the military service academics. at us naval academy, at, annapolis, the midshipmen used a multi-source process called “peer-grease” to evaluate the, leadership skills of their classmates. during the 1960s and 1970s, in the corporate world,, organisations like bank of america, united airlines, bell labs, disney, federal express, nestle, and rca experimented with multi-source feedback in a variety of measurement situations., b. serves as a key of initiating coaching, counselling and career development activities, for the organisation., c. integrate the feedback regarding the performance of employees with the work, culture prevailing in the organisation and promote engagement, d. encourage the individual employees to invest their time and efforts in self-, development and embrace the change management, e. it provides an opportunity to the employees to see themselves the way others see, them. this allows them to identify their strength and weaknesses and work, accordingly to enhance their efficiency and effectiveness., f. the discussions about the employee feedback, strengths and development areas, prove to be beneficial for sharpening skills for future and facilitate career, development and take necessary actions in the right directions., g. it provides a wide range of qualitative data regarding the leadership and personal, capabilities of employees, and enable comparison with the other peers., h. the 360-degree performance appraisal system supports and motivates the, employees by building up their morale with appreciations, and encourage them to do, better and improve their performances., i. provided a more comprehensive view of employee performance, j. increase the credibility of performance appraisal system, k. a combination of opinions can prove to be an accurate view, l. feedback enhance self-development, m. some skills may be best judged by peers and staff, not by manager alone., common reasons that may lead to failure of the 360-degree performance appraisal system, a. leniency in reviewing, b. differences in the cultures, c. ineffective planning, d. misguided feedback, e. competitiveness, disadvantages of 360-degree performance appraisal system:, a. time consuming and complex process, b. results can be difficult to interpret, c. extensive give and take of feedbacks can be intimidating to many employees, d. generate an environment of suspicion if not managed honestly and openly., e. sometimes the feedback can be damaging if they are not managed carefully and with, sensitivity, f. it requires training and changes to work effectively, performance appraisal system of infosys, india, infosys believes in being a social organisation, and has established a high-performance work, culture along its human resource. to align the performance of the all the employees working, in the organisation, with the organisation’s goals and objectives, regular performance, appraisals are initiated by the company. infosys has 3 tracks for the performance appraisal, system and these 3 tracks are:, a. track 1: it is associated with reviewing the performance based on feedback and tasks, based on the technical and personality competencies. infosys focus on a role-based, structure and the competencies for each of this role with standard expected levels of, behaviours. and then training needs are identified based on the evaluation of the, tasks and competency feedback., b. track 2: this involves the senior management appraisal, and people in the managerial, roles undergo through this annually. during this the employee fills and self-appraisal, form and carries it forward to the panel for discussion. this panel includes: head of, the department, immediate supervisor of the appraisee and senior management, people from other departments. promotions of employees are decided on the basis, of this review., c. track 3: the 360-degree performance appraisal includes a 3rd track as well. levels, covered in this track are head of delivery, heads of departments or the practice units,, all the people who report to heads and all other holding the leadership positions in, the organisations., : research methodology:, performance appraisal is an important aspect that facilitates the evaluation of an employee’s, performance, understand the work culture of the organisation, employee’s involvement and, satisfaction level from the organisational tasks and goals. it also facilitates the organisation, in efficient decision making regarding the promotion, transfer, incentives and payments of, the individual employees., during the completion of this project, to check the performance appraisal system of infosys,, the questionnaire is being used, the employees responded in different ways and their, responses are being elaborated with the help of pie charts along with different questions., 1. are you aware with the current performance appraisal system of infosys, particulars frequency percentage, aware 19 95%, unaware 1 5%, interpretation: the pie chart depicts that 95% of the employees are well aware of the, performance system that is being followed by the organisation. awareness of such, system motivates the employees to do their task in a better way. hence, it is, important for the management to make the employees aware of their performance, appraisal system., 2. methodology used for performance appraisal, particulars frequency %, competency mapping 1 5%, factor comparison, 360-degree appraisal, interpretation: the above table depicts that 90% of the employees said that 360-, degree performance appraisal is used for evaluating their performance., 3. performance appraisal of employees is assessed by, point system 17 85%, mark system 2 10%, grade system 1 5%, not aware - -, interpretation: the above table reveals that around 50% of the employees believe, that the transparency evaluation of their performances is the best element in their, performance appraisal system and around 30% of the employees find the open, feedback the best among all aspects., 5. the reason why the organisation may have opted the 360-degree performance, appraisal system:, accurate results 13 65%, modern method 4 20%, mncs are following it 3 15%, interpretation: the above table and bar chart shows that 65% of the employees, believe that the 360-degree performance appraisal system produces accurate results, that’s the main reason why the organisation have opted this technique, whereas, other 20% employees believe that it is a new and modern approach to performance, appraisal, that is why it is popular in their organisation, whereas 15% of the, employees feel that their organisation is imitating other mncs., 6. task setting by appraise and appraiser provides objective while appraising the, performance appraisal of the appraise., agree 10 50%, partially agree 6 30%, neutral 3 15%, disagree 1 5%, interpretation: about 50% of the employees believe in the fact that task setting, provides objectives in appraising their performances, 30% of the employees are, partially in belief of the statement, around 15% employees felt that the statement is, neutral whereas 5% of the employees disagree with this statement and believes that, task setting doesn’t provide any objectives in appraising their performances., 7. whether the quarterly task setting assignment is completed by the 15th of first month, of each quarter..

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Course : International business (Demib809)

University : g d goenka university.

performance management system infosys case study

Discover more from: International business Demib809 G D Goenka University 13 Documents Go to course
More from: International business Demib809 G D Goenka University 13 Documents Go to course

Performance appraisal system in Infosys

An effective and well-managed performance appraisal system is one of the best ways to provide an ongoing support system. It can give both individuals and managers a structured system to achieve goals and targets successfully without the need for close supervision. A performance appraisal system also exalts the quality of the organizational decisions ranging from allocation of rewards to layoffs, transfers and promotions (Grote et, al, 2005). They also exalt the employee decision quality ranging from choices of career to decisions about where to raise one’s effort and time. Now organizational success is based on the individual and employee performance. Managers who know how to make the best use of the performance appraisal system are more effective managers.

An overview of the performance appraisal system of Infosys, India

Infosys believes in meritocracy and has built a high-performance work culture among its workforce. To align the employee’s performance with Infosys’s business goals, regular performance-driven appraisals are conducted. Infosys has three tracks for its performance appraisal system (Rao and Rao, 2004; Fernando, 2010).

The first track deals with a review of performance relying on feedback and tasks on technical/ personality competencies. Infosys is moving to a role-based structure and competencies for each of the roles with standard expected levels of behaviours. Training needs are derived based on task evaluations and competency feedback.

The second track is the senior management appraisal. People in managerial roles undergo this annually. Here the employee fills up a self-appraisal form and carries it forward to a panel of discussion. The panel includes:

The head of the department.
The immediate supervisor of the appraisal.
Senior management personnel from another department.

Promotions are decided on the basis of their review (Khan and Jain, 2004).

360-degree appraisal constitutes the third track. This has been happening over the last 3 years for all departments and practice units. Levels covered include the head of delivery, heads of departments/practice units, all the people who report to the heads and all others holding leadership positions in the organization.

Venkateswara Rao T and Rao T V (2004), Performance management and appraisal systems: HR tools for global competitiveness, SAGE, London
Khan M Y and Jain P K (2004), Financial Management: Text, Problems and Cases, Tata McGraw Hill, New Delhi.
Fernando A C (2010), Business Ethics and Corporate Governance, Dorling Kindersley, New Delhi
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