Study of Performance Appraisal System of Wipro

and NTPC
Submitted By :- Submitted
To:-
Ravi Suchi Aggarwal

Vikas

Rahul Singh

Sumit

Tushar

Ankush

Rahul Agarwal

Suresh
 PREFACE

We feel immense pleasure in working on this knowledgeable project which our HRM faculty
Mrs. Suchi had assigned us. We learnt about various process involved in appraisal and steps of
implementation. The project also concerned about the limiting factors associated with it.

Performance appraisal is an integral part of any organization. Our project deals

with formal revive w of employees’ work performance is conducted. It lightens the process of
evaluating the contribution of each employee in a factory or organization. We learnt a lot from
this project such as what are different appraisal system followed by Wipro BPO and NTPC and
we have also analyzed the information about the relative worth of an employee and how they
would implement for the same.

Once again we are thankful to our faculty helped us in every steps to accomplish
our knowledgeable project. We would humbly request our faculty member to read between the
lines of our hard word.

Thanking You.
 CONTENT

NTPC
Introduction Profile of the company ………………............................................................1

Human Resource Policy……………………………………………………………………..2

Performance Appraisal and its Benefits………………………………................................3

OBJECTIVES OF NTPC’s PERFORMANCE APPRAISAL SYSTEM-

PACE – Performance and Competence for Excellence ………………………………….....3

Steps of Performance Planning………………………………………………………………4

System of appraisal…………………………………………………………………………..7

Wipro BPO

Overview of company…………………………………………………………………………8

Aims of Performance appraisal in Wipro……………………………………………………..9

Wipro follow 360 degree PERFORMANCE appraisal SYSTEM…………........................10

Advantages, Disadvantages of using 360 appraisals with suggestions………………………17

ANALYSIS/COMPARISON (NTPC AND WIPRO) appraisal system……………………..18

Bibliography/ References…………………………………………………………………….19
 PERFORMANCE
MANAGEMENT SYSTEM
 INTRODUCTION

In our project, entitled-“To analyze the present performance appraisal system of National
Thermal Power Corporation Ltd.”, I have studied the present appraisal system of NTPC by
analyzing the details of the appraisal system, articulate the organizational, functional,
departmental & individual objectives, factors in business dynamics to grade employees on
objectives & transparent productivity parameters, self appraisal followed by reporting officer &
higher authority’s assessment, link between rewards and performance to increase motivation level
of employees, assessment of training & developmental needs of the individuals and make them
aware about the parameters used to evaluate their performance.
In my own style, I have tried to find out whether the present appraisal system is effective enough
to serve the purpose of performance appraisal i.e. to understand the needs of employees and
provide them formal & regular feedback related to their performance. For this purpose, I used
questionnaires to get the opinions of employees at different levels. I also went through different
books, websites and magazines to gather material related to the topic. After collecting the
information, I analyzed the data and provide the necessary suggestions to improve the system.

PROFILE OF THE COMPANY

National Thermal Power Corporation Limited (NTPC) is the largest thermal power generating
company of India. A public sector company wholly owned by Government of India, it was
incorporated in the year 1975 to accelerate power development in the country. Within a span of
30 years, NTPC has emerged as a truly national power company; with power generating facilities
in all the major regions of the country. Based on 1998 data, carried out by Data monitor UK,
NTPC is the 6th largest in terms of thermal power generation and the second most efficient in
terms of capacity utilization amongst the thermal utilities in the world.
NTPC's core business is engineering, construction and operation of power generating plants and
also provides consultancy to power utilities in India and abroad. As on date the installed capacity
of NTPC is 21,749 MW through its 13 coal based (17,480 MW), 7 gas based (3,955 MW) and 3
Joint Venture Projects (314 MW). NTPC acquired 50% equity of the SAIL Power Supply
Corporation Ltd. (SPSCL). This JV company operates the captive power plants of Durgapur (120
MW), Rourkela (120 MW) and Bhilai (74 MW). NTPC is also managing Badarpur thermal power
station (705 MW) of Government of India.

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HUMAN RESOURCE POLICY

POWERING INDIA’S GROWTH: THROUGH PEOPLE

NTPC strongly believes in achieving organizational excellence through Human Resources and
follows "People First" approach to leverage the potential of its 23,500 employees to fulfill its
business plans. Human Resources Function has formulated an integrated HR strategy which rests
on four building blocks of HR viz. Competence building, Commitment building, Culture building
and Systems building. All HR initiatives are undertaken within this broad framework to actualize
the H R Vision of "enabling the employees to be a family of committed world class professionals
making NTPC a learning organization". To induct talent and groom them into a dedicated cadre
of power professionals "Executive Trainee" Scheme was introduced in the year 1977 for
recruitment in the disciplines of Mechanical, Electrical, Civil, Control & Instrumentation and now
encompasses Computer Science, Chemistry, HR and Finance disciplines also. Besides a
comprehensive one year training comprising theoretical inputs as well as on-the-job training, the
new recruits are attached with senior executives under a systematic and formal 'Mentoring
System' of the company to integrate them into the Culture of the company.
NTPC has created 15 project training centers, 2 simulator training centers and an apex institute
namely 'Power Management Institute' (PMI). While the project training centers (Employee
Development Centers) have specialized in imparting technical skills and knowledge, PMI places
emphasis on management development. Besides opportunities for long term education are also
provided through tie ups with reputed Institutions like IIT, Delhi, (M.Tech in Power Generation
Technology), MDI, Gurgaon (Executive MBA programme), BITS, Pilani (B.Tech) etc.
NTPC Open Competition for Executive Talent (NOCET) is organized every year in which teams
of executives compete annually through oral and written presentation on a topical theme.
Similarly "Professional Circles" have been formed department-wise where Executives of the
department meet every fortnight to share their knowledge and experiences and discuss topical
issues. In order to tap the latent talent among non executives and make use of their potential for
creativity and innovation, Quality Circles have been set up in various units/offices in NTPC.
Besides a management journal called "Horizon" is published quarterly to enable the employees to
share their ideas and experiences across the organization. Demonstrating its high concern for
people, NTPC has developed strong employee welfare, health & well-being and social security
systems leading to high level of commitment. NTPC offers best quality of life through beautiful
townships with all amenities such as educational, medical and recreational opportunities for
employees and their family members. The motivation to perform and excel is further enhanced
through comprehensive NTPC Rewards and Recognition system. Due to innovative people
management practices there is a high level of pride and commitment amongst employees as
reflected in the "Best Employers in India-2003" survey by Hewitt Associates in which NTPC
bagged coveted third rank. Further continuous efforts are being made by HR function to leverage
the potential of its employees and become a strategic business partner.

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PERFORMANCE APPRAISAL

DEFINITION
Performance appraisal includes all formal procedures used to evaluate personalities, contributions
& potentials of group members in a working organization. It is a continuous process to secure
information necessary for making correct and objective decisions on employees.
In simple words, performance appraisal is the systematic evaluation of the individual with respect
to his performance on the job and his potential for development.

BENEFITS OF PERFORMANCE APPRAISAL

EMPLOYER’S PERSPECTIVE
1. Despite imperfect measurement techniques, individual differences in performance can make a
difference to the company’s performance.
2. Documentation of performance appraisal and feedback may be needed for legal defense.
3. Performance appraisal dimensions and standards can help to implement strategic goals and
clarify performance expectations.
4. It provides a rational basis for constructing a bonus or merit system.
5. Providing feedback is a part of the performance management process.
6. Despite traditional focus on the individual, appraisal criteria can include teamwork and teams
can be the focus of teamwork.

EMPLOYEE’S PERSPECTIVE

1. Performance feedback is needed and desired by the individual employee to improve his/her
performance.
2. Fairness requires that differences in performance levels across workers be measured and have
an effect on the outcomes.
3. Assessment and recognition of performance levels can motivate workers to improve their
performance.

OBJECTIVES OF NTPC’s PERFORMANCE APPRAISAL

SYSTEM-
P A C E – Performance And Competence for Excellence

• To accomplish overall organisational vision and mission by linking individual performance

to company objectives.
• To facilitate fulfilment of individual aspirations.
• To build a culture of performance.
• To encourage two-way communication between appraiser and appraisee.
• To evaluate the potential of the appraisee to assume higher responsibilities in the
organisational hierarchy.
• To translate future skill requirements of the organisation into individual development plans.
• To identify high performers and recognise them through rewards and incentives.
3

PACE is a five step process

Step 1: Performance Planning
• Identify KPAs(Key Performance Areas), constituents, weightages, measures and targets.
• Identify functional and managerial competencies for the appraisee.

Step 2: Mid-Year Review

• Joint review of performance.
• Document changes in KPAs if any.
• Document mid-year review discussions.

Step 3: Annual Assessment

• Assessment of KPAs, Competencies, Values and Potential by appraiser.
• Training and Development Plans.
• Review by reviewing officer.

Step 4: Normalization Process

• Ensure parity and integrity by minimizing rater variation across various departments.
• Enhance objectivity and transparency in the appraisal system.

Step 5: Feedback
• Communication of score.
• Developmental feedback.

STEP 1: PERFORMANCE PLANNING

In Performance planning the very first step is KPA(Key Performance Areas) Setting Process.
KPAs are set by taking into the consideration of various factors.
 Company Goals: These goals are set according to the corporate plans etc. It is applicable
to mostly high rank managers in the organization.
 Unit Goals: These are set by taking actions like initiatives and creativity.
 Functional / Departmental Goals: These goals are set by taking the employees efforts
like team building, good communication etc.
 Individual Goals: These goals are set as employee specific. Employees are assigned goals
according to their role in the department and organization.
The next step is set KPAs for the employees:
• KPA setting for all appraisees in consultation with the reporting officer (appraiser).
• KPAs to be set by referring to the KPA Directory and taking inputs from the MoU targets,
functional plans, individual responsibilities and cascaded of KPAs from the top.
• The KPAs, once finalized, to be signed off by the appraiser and the appraise.

Norms for KPAs

 To be drawn from the business plans as far as possible.
 The no. of KPA indices should not be more than eight and no. of constituents of KPAs
should not exceed 24 in all including the common indices.
 The unit for measurement of any KPA can only be of the three viz., percent, time, Nos.
 Each KPA should carry at least 3 marks.
 No KPA constituent should have marks in decimals such as 3.5 or 4.5.
4

Assigning Weightage
 • Understanding the Relative Importance of Each Key Performance Area.
• Understanding the Difficulty of Each Key Performance Area.
• Understanding Superior’s Perspective.
• Discussing Weightage with the Superior.
• Convert the Weightage of Each KPA for the Different Levels of Performance.

Why performance planning is critical:

 Parameters for performance measurement are pre-defined.
 Objectives are prioritized.
 Individual performance is enhanced by clear definition of deliverables.
 Role of individuals is clarified within overall organizational context.

STEP 2: MID-YEAR REVIEW

Process Steps in Mid-Year Review

• Appraiser and appraisee to discuss changes in KPAs, if necessary.
• All KPAs to be re-filled in the form if any changes are made in either the KPAs,
weightages or targets.
• Justification for change to be documented.
• Self appraisal to be completed.
• Appraiser to document midyear discussion.

Guidelines for changing KPAs in the mid year

• Change in roles and responsibilities of appraisee (transfer, additional role etc.)
• Changes in organizational goals
• Unanticipated projects
• Abandonment of project as per corporate directive
• Situations beyond control of the appraisee such as accident or emergency situations.

Why is it critical?
 Performance management is not an event but an ongoing process.
 Helps in objective annual evaluation:
– Provides early warnings of non-performance; avoids year end surprises.
– Opportunity to revisit KPAs, change weightages or measures.
– Reinforces good performance in time.
– Provides an opportunity for appraisee to express his thoughts on progress made
and roadblocks encountered.

STEP 3: ANNUAL ASSESSMENT

Process Steps for Appraiser and Appraisee
• Evaluate performance against KPAs by comparing actual performance to targets set.
• Evaluate
• Functional/technical competencies (chosen at the beginning of the year).
• Managerial competencies (3 mandatory and 3 optional).
• Values & Potential.
• Complete section on Special Achievements.
• Transfer scores from all sections to the section on Total Marks for consolidation.
• Complete Individual Training and Development Plan.

Process Steps for Reviewing Officer

• Review the marks given for each section by the appraiser – check for overrating or
underrating.
• Hold discussion with appraiser in case changes in scores are required.
• Rationale for changes in scores must be documented on PMS form.
• Reviewing officer and appraiser sign-off on the PMS form.

During annual assessment marks to be provided for the following:

• KPAs.
• Functional/Technical competencies (to be evaluated on 10 point scale).
• Managerial/Executive competencies (to be evaluated on 10 point scale).
• Values (to be evaluated on 10 point scale).
• Potential competencies (to be evaluated on 10 point scale).

Why is it critical?
• Formal process to ensure performance is assessed annually.
• Opportunity for reviewing officer to offset rating biases.
• Provides inputs for other HR systems:
o Rewards and Incentives
o Career Development
o Training and Development

STEP 4: NORMALIZATION PROCESS

Objectives of Normalization Process

• Ensure parity and integrity by minimizing rater variation across various departments.
• Enhance objectivity and transparency in the appraisal system.
Process Steps of Normalization
• Plot distribution of scores for the cluster to check for skewing within and across
departments.
• Checks to be made whether employees have been overrated or underrated on various PMS
parameters such as:
• KPA assessment.
• Competencies, Values and Potential assessment.
• Make suitable adjustments to scores, where necessary.
• Scores (revised and unchanged) and reasons for moderation to be documented in PMS
form.
• All appraisees in the cluster must be categorized into Top 20%, Middle 70% and Bottom
10%.
Principles of Normalization
• Cluster of different departments have been created (at various levels) for effective
normalization of performance.
• Minimum size of 15 executives in a cluster for performance normalization.
• Departments with resemblances have been gathered together to form clusters.
• The PACE reports of executives who have been transferred during the course of an
assessment year shall be normalized at the place of posting where he/she is working as on
the last day of the relevant assessment cycle.

STEP 5: COMMUNICATION OF SCORE AND DEVELOPMENT

FEEDBACK

In this final step of performance appraisal, Performance Management Committee deals with
Human Resources Department, Appraiser and employee himself.

For this step, appraisers are to be provided training on performance feedback and counseling
skills.

Process Steps
• Performance Management Committee output to be sent to HR
• Final individual scores
• Relative ranking
• Rationale for any changes made
• HR to consolidate final scores, relative ranking and feedback from Performance
Management Committee for all employees.
• HR to send final score sheet with relative ranking and feedback from Performance
Management Committee (if any) to respective appraisers.
• Appraisers to communicate final score, relative performance as well as developmental
feedback to appraisee.

SYSTEM OF APPEAL

• In case of grievance on the individual performance scores finalized by the performance

management committee (PMC), the grievance can be directly put up to an appellate
authority(ies) which is one level above the PMC with a copy to concerned HR.
• Only such cases where change of marks is equal to or more than 5% of that awarded by
the Reporting Officer shall be eligible for appeal.

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WIPRO
OVERVIEW OF COMPANY

Wipro started as a vegetable oil company in 1947 from an old mill founded by Azim Premji's
father. When his father died in 1966, Azim, a graduate in Electrical Engineering from Stanford
University, took on the leadership of the company at the age 21. He repositioned it and
transformed Wipro (Western India Vegetable Products Ltd) into a consumer goods company that
produced hydrogenated cooking oils/fat company, laundry soap, wax and tin containers and later
set up Wipro Fluid Power to manufacture hydraulic and pneumatic cylinders in 1975. At that
time, it was valued at $2 million.

In 1977, when IBM was asked to leave India, Wipro entered the information technology sector. In
1979, Wipro began developing its own computers and in 1981, started selling the finished
product. This was the first in a string of products that would make Wipro one of India's first
computer makers. The company licensed technology from Sentinel Computers in the United
States and began building India's first mini-computers. Wipro hired managers who were computer
savvy, and strong on business experience.

In 1980 Wipro moved in software development and started developing customized software
packages for their hardware customers. This expanded their IT business and subsequently
invented the first Indian 8086 chip.

Since 1992, Wipro began to grow its roots off shore in United States and by2000 Wipro Ltd
ADRs were listed on the New York Stock Exchange.

With over 25 years in the Information Technology business, Wipro Technologies is the largest
outsourced R & D Services provider and one of the pioneers in the remote delivery of IT services.
Being a global provider of consulting, IT Services, outsourced R&D, infrastructure outsourcing
and business process services, we deliver technology-driven business solutions that meet the
strategic objectives of our Global 2000 customers. Wipro today employs 96,000 people in over 50
countries. A career at Wipro means to learn and grow continuously, opportunities to work on the
latest technologies alongside the finest minds in the industry, competitive salaries, stock options
and excellent benefits.

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AIMS OF PERFORMANCE APPRAISAL SYSTEM IN WIPRO

Give feedback on performance to employees.

Identify employees training needs.

Document criteria used to allocate organizational

rewards

Form a basis for personal decision: salary increases,

promotion, disciplinary action etc.

Provide the opportunity for organizational diagnosis

and development.

Facilitate the communication between employee and

administrator.

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PERFORMANCE APPARISAL SYSTEM IN WIPRO

Wipro follow 360 degree PERFORMANCE APPARISAL SYSTEM.

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360 DEGREE PERFORMANCE APPRAISAL SYSTEMS
360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal
where the feedback about the employees’ performance comes from all the sources that come in
contact with the employee on his job. 

360 degree respondents for an employee can be his/her peers, managers (i.e. superior),
subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with
the employee and can provide valuable insights and information or feedback regarding the "on-
the-job" performance of the employee.

360 Degree Feedback is a system or process in which employees receive confidential, anonymous
feedback from the people who work around them. This typically includes the employee's
manager, peers, and direct reports. A mixture of about eight to twelve people fill out an
anonymous online feedback form that asks questions covering a broad range of workplace
competencies. The feedback forms include questions that are measured on a rating scale and also
ask raters to provide written comments. The person receiving feedback also fills out a self-rating
survey that includes the same survey questions that others receive in their forms.

Managers and leaders within organizations use 360 feedback surveys to get a better understanding
of their strengths and weaknesses. The 360 feedback system automatically tabulates the results
and presents those in a format that helps the feedback recipient create a development plan.
Individual responses are always combined with responses from other people in the same rater
category (e.g. peer, direct report) in order to preserve anonymity and to give the employee a clear
picture of his/her greatest overall strengths and weaknesses.

360 Feedback can also be a useful development tool for people who are not in a management role.
Strictly speaking, a "non-manager" 360 assessment is not measuring feedback from 360 degrees
since there are no direct reports, but the same principles still apply. 360 Feedback for non-
managers is useful to help people be more effective in their current roles, and also to help them
understand what areas they should focus on if they want to move into a management role.

11
How is 360 Degree Feedback Used? 
Companies typically use a 360 feedback system in one of two ways:

1. 360 Feedback as a Development Tool to help employees recognize strengths

and weaknesses and become more effective

When done properly, 360 is highly effective as a development tool. The feedback process gives
people an opportunity to provide anonymous feedback to a coworker that they might otherwise be
uncomfortable giving. Feedback recipients gain insight into how others perceive them and have
an opportunity to adjust behaviors and develop skills that will enable them to excel at their jobs.

2. 360 Feedback as a Performance Appraisal Tool to measure employee

performance

Using a 360 degree feedback system for Performance Appraisal is a common practice, but not
always a good idea. It is difficult to properly structure a 360 feedback process that creates an
atmosphere of trust when you use 360 evaluations to measure performance. Moreover, 360
feedbacksfocus on behaviors and competencies more than on basic skills, job requirements, and
performance objectives. These things are most appropriately addressed by an employee and
his/her manager as part of an annual review and performance appraisal process. It is certainly
possible and can be beneficial to incorporate 360 feedback into a larger performance management
process, but only with clear communication on how the 360 feedback will be used.

WHAT IS 360 DEGREE PERFORMANCE APPRAISAL SYSTEM…

360 Degree Feedback is a system or process in which employees receive confidential, anonymous
feedback from the people who work around them.

Who should conduct 360 degree performance appraisal?

 Subordinates.
 Peers.
 Managers (i.e. superior).
 Team members.
 Customers.
 Suppliers / Vendors.

12
Anyone who comes into contact with the employee and can provide valuable insights and
information.

360 Degree measures…

 360 degree measures behaviors and competencies.
 360 degree addresses skills such as listening, planning, and goal-setting.
 360 degree focuses on subjective areas such as teamwork, character, and leadership
effectiveness.
 360 degree provides feedback on how others perceive an employee.

360 Degree Appraisal System has four components…

 Self-Appraisal.
 Subordinate’s appraisal.
 Peer appraisal.
 Superior’s appraisal

What a 360 Feedback Survey Measures

 360 feedback measures behaviors and competencies

 360 assessments provide feedback on how others perceive an employee
 360 feedback addresses skills such as listening, planning, and goal-setting
 A 360 evaluation focuses on subjective areas such as teamwork, character, and leadership
effectiveness

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What 360 Feedback Surveys do not assess:

 360 feedback is not a way to measure employee performance objectives (MBOs)

 360 feedback is not a way to determine whether an employee is meeting basic job
requirements
 360 feedback is not focused on basic technical or job-specific skills
 360 feedback should not be used to measure strictly objective things such as attendance,
sales quotas, etc.

Superior
It’s Contribution…
The 1st line supervisor is often in the best position to effectively carry out the full cycle of
performance management.
The supervisor also may have the broadest perspective on the work requirement and be
able to take into account shifts in those requirement.

Caution to be addressed…
Superior should be able to observe and measure all facts of work to make a fair evaluation.
Superior should be trained. They should be capable of coaching and developing
employees as well as planning and evaluating their performance.

Self
It’s Contribution…
Self-rating are particularly useful if the entire cycle of performance management involves
the employee in self-assessment.
The developmental focus of self-assessment is a key factor.
Self-appraisal are particularly valuable in situations where the supervisor cannot readily
observes the work behaviors and task overcomes.

Caution to be addressed…
Research shows low correlation between self-ratings and all others source of ratings and
all others source of ratings particularly supervisor ratings. The self-ratings is consistently
higher. This discrepancy can lead to defensiveness if supervisor do not use good feedback
skills.
Sometimes self-rating can be lower than others. In such situations employee tend to bself-
demanding and may feel intimidated and “put on the spot.”

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Peers
It’s Contribution…
Peer rating have been an excellent predictor of future performance and “manner of
performance.”
The use of multiple ratres in the peer dimension of 360 degree assessment tend to average
out the possible biases of any one member of the group of raters.
The addition of peer feedback can help move the supervisor in to a coaching role rather
than a purely judging role.

Caution to be addressed…
Peer evaluations are appropriate for developmental purposes, but to emphasize them for
pay, promotion or job retention purposes may not be prudent always.
It is essential that the peer evaluators be very familiar with the team members task and
responsibilities.
Depending upon the culture of the organization, peer rating have the potential for creating
tension and breakdown rather than fostering cooperation and support.

Subordinates
It’s contribution…
A formalizes subordinate feedback programmer will give supervisors give a more
comprehensive pictures of employee issues and needs.
Employees feel that they have a greater voice in organization decision making.
The feedback from subordinates is particularly effective in evaluating the supervisor’s
interpersonal skills. However, it may not be as appropriate or valid for evaluating task
oriented skills.

Caution to be addressed…
The need for anonymity is essential when using subordinates ratings as this will ensure
honest feedback.
Subordinates may feel threatened perceive that their authority has undermined when they
must take into consideration that their subordinates will be formally evaluating them.
Subordinates feedback is most beneficial when used for developmental purposes but
precautions should be taken to ensure that subordinates are appraising element of which
they have knowledge.

15
Customers
It’s contribution…
Customer’s feedback should serve as an “ anchor” for almost all others performance
factor.
Including a range of customers in PA programmer expends the focus of performance
feedback in a manner considered absolutely.

Caution to be addressed…
Generally the value of customer’s service feedback is appropriate for evaluating team
output (there are exceptions).
Customers, by definition, are better at evaluating output as opposed to processes and
working relationship.

ADVANTAGES OF 360 DEGREE APPRAISAL SYSTEM

To the individual…
 Help individuals to understand how other perceives them.
 Uncover blind spots of individuals.

To the team…
 Increase communication between team members.
 Maintained higher level of trust between team members.
 Maintaine better work team environment.
 Support teamwork.
 Increase the effectiveness of the team.

To the organization…
 Reinforced corporate culture by linking survey item to organization leadership
competencies and company values.
 Its offer a better career development chance for employee.
 It’s help to improve customer’s services because customers are involved in it.
 It’s help to conduct relevant customer training.

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DISADVANTAGES OF 360 DEGREE PMS
The 360-degree feedback is time consuming and cost consuming assessment process.
Without having adequate resource to implement the process, it will end up nowhere and
develop financial burden to organization.
The process involves a lot of paper work.
Many times the confidentiality of the appraisal cannot ensure from the HR department.
Since the assessment is based on qualitative data many times it cannot ensure clear,
specific, and observable formats.
360 degree PMS needs a detailed plan of action, which ensure the transparent and clear
implementation of appraisal with employee accountability.
Some people may fear retaliation if they give negative feedback. This is mostly in cases
where the organization does not have an open culture

SUGGESTION TO IMPROVE

. It is very important to choose a right timing to conduct this method that can minimize the time and
complexity of this appraisal system.
This appraisal system is more suitable for a organization where the employee follow the
“Open Culture”, so that they will not demoralized by the negative feedback.
We need to work on making this PMS system more and more confidential in nature.

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ANALYSIS/COMPARISON OF BOTH (NTPC
AND WIPRO) THE APPRAISAL SYSTEM

As we see, NTPC and WIPRO adopt the PACE and 360 degree appraisal system respectively in
their organizations. Now we will see a few disparities in both the appraisal systems:

1. Wipro uses 360 degree appraisal system which is widely used by most of the
organizations in the world, whereas NTPC adopts a PACE appraisal system which has
been specifically design for NTPC only.
2. PACE system is very lengthy, time-consuming and hence complex, whereas 360 degree is
quite straightforward and plain.
3. PACE system still uses PMS forms for their functioning which can be improved if it gets
computerized, whereas 360 degree is already computerization.
4. In 360 degree there is assigned route for self appraisal system, employees have the liberty
to self assess them, whereas in PACE system there is wide gap between self appraisal
done by the employee and the organization, or we can say, the employee is not always
happy with their self assessment.
5. PACE system is better suited for large no. of employees and in case if the employee is met
with an accident or gets transferred to some other office in the country.
6. In NTPC lower level employees need a better appraisal system than PACE, because lower
level employees are not very effective to serve the purpose of employee appraisal, reason
being they are not much educated and are not well versed with the technical terminologies.
7. In 360 degree behavioral aspect is also taken into the consideration while there is not
much scope for behavioral appraisal in PACE system.
8. Being a government sector, NTPC’s PACE system is rigid and dogmatic, whereas 360
degree appraisal system is very flexible to adapt.

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 BIBLOGRPHY / REFRENCES

BOOK:- Dessler,G,11thedition, Pearson education, Inc, Publishing as

Prentice Hall 2008,Human Resource Management.

MAGAZINES: - 1.Outlook
2. Business Today

WEBSITES: -
www.ntpcindia.com
www.ntpc.co.in
www.wiprobpo.com
www.Wikipedia.com
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