2 Performance Apprasial of Union Bank of India

A STUDY OF PERFORMANCE APPRAISAL AT UNION BANK

OF INDIA.

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Performance Appraisal ______________________________________________________________________

SYPONSIS

Human Resource is an very important part of any organization. They are the resource

that majorly contribute towards attainment of organizational goals and these goals can

be achieved only when people put in their best efforts. Performance Appraisal is one of

the methods which ascertain whether an employee has shown his or her best

performance on a given job.

Performance Appraisal is one of the most important tools used by the Human Resource

Development in analyzing and evaluating its employees. It also gives the employees a

chance to look back on what they have been doing.Performance appraisal is the process

of obtaining, analyzing and recording information about the relative worth of an

employee. The focus of the performance appraisal is measuring and improving the

actual performance of the employee and also the future potential of the employee. Its

aim is to measure what an employee does.

This project is based on Performance Appraisal.It goes in depth into what Performance

Appraisal is, what it stands for and why it is done. It tries to explain the basic purpose

and need of Performance Appraisal in the organization. It contains different types of

approaches that can be used in different set of conditions. The project also tries to

throw light on how theory can be put to practice.

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INDEX

SR NO: Topic Page

1 Methodology 5

2 Introduction to Company 6

3 Introduction to Performance Appraisal 8

4 Performance Aprraisal at Union Bank Of India 13

5 Highlights of Annually Performance Appraisal

Form

15

6 Findings and Analysis 17

7 Recommendations 19

8 Conclusion 20

ANNEXURE:

Bibliography.

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METHODOLOGY

To study the topic it is important to understand first how the Performance Appraisal

works in an organisation. Thus to study and analyse various aspects of Performance

Appraisal Interview Method was followed. Further,the questions where formed to

collect all the data and the information regarding the process and impact of

Performance Appraisal in an organization. The participants from the organisation where

from different departments for the best results. After taking their answers/ feedback by

asking questions we can come to the conclusion when we analyse the findings.

For carrying out all this study a visit to Union bank of India was of great help in my

project. Union Bank of India is one of the organizations that are using Self Performance

Appraisal system in their organizations. Here I met Mr. Venkatesh Amin the Senior

Manager of Union Bank of India, who told me about the process and impact of

Performance Appraisal they are using in Union Bank of India.

Very friendly and helpful in nature, Mr. Venkatesh Amin helped me a lot to understand

how performance appraisal system is meant to work, what are the practical difficulties

in the implementation and how they have managed to overcome these difficulties

successfully.

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INTRODUCTION TO COMPANY

Once a Year Overview

Union Bank of India was inaugurated by the Father of the Nation, Mahatama Gandhi,

on November 11, 1919. Started as a limited company with its registered office at 7,

Marzban Road, Mumbai, it was one of the few Financial Commercial banks in India.

Until 1947, UBI had only 4 branches - 3 in Mumbai and 1 in Saurashtra, all

concentrated in key trade centres. Catering to all the sectors of the society, be it

agriculture, industry, trade and commerce, services or infrastructure, the bank has also

played a major role in rendering services to the financial needs of every section. Apart

from this, the bank also extended financial support to educational, housing and trade

sector.

Union Bank of India undertook the task of establishment of village knowledge centers

and self-employment training centers. It was in 1975, that the Union Bank of India was

nationalized. It was, then, that it merged with the Belgaum Bank, a private sector bank.

Another merger was on cards in 1985, this time with the Miraj State Bank. Union Bank

is a Public Sector Unit with 55.43% Share Capital held by the Government of India.

The Bank came out with its Initial Public Offer (IPO) in August 20, 2002 and Follow

on Public Offer in February 2006. Presently 44.57 % of Share Capital is presently held

by institutions, individuals and others.

Branch Network

At the time Nationalization i.e. June 1969, it had 240 branches. Since then, the

branch network had grown substantially across the country with presence in 28 states,

including union territories. As on 31st March 2004, Bank has network 2020 branches -

794 Rural, 457 Semi-urban, 426 Urban and 343 Metropolitan branches.

Tech-Savvy

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Performance Appraisal ______________________________________________________________________ With the age of global banking, Union Bank of India also changed its style, boasting of

urbanized and computerized core banking systems. A front runner among public sector

banks in modern-day banking, it has all the facilities that a modern bank should have -

internet banking and centrally computerized branches. UBI was one of the pioneer

public sector banks, which launched Core Banking Solution in 2002. As of September

2005, more than 670 branches/extension counters of Bank are networked under Core

Banking Solution. The Bank has launched multiple Electronic Delivery Channels and

has installed nearly 423 networked ATMs.

Recent Development

Union Bank of India (UBI) has informed the Bombay Stock Exchange (BSE)

that the bank intends to raise additional funds up to Rs 400 crore in one or more

tranches by issue of bonds on private placement basis for its Tier II capital requirement

to shore up the capital to risk assets ratio subject approvals from the Ministry of

Finance and Reserve Bank of India. Exact amount to be raised, coupon and tenor of

bonds will be decided at the time of placement.

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INTRODUCTION TO PERFORMANCE APPRAISAL

The practice of appraisal is a very ancient art. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War - not more than 60 years ago.Performance appraisal, also known as employee appraisal, is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). A more comprehensive definition of Performance appraisal may be defined as-

“Performance appraisal is a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development.”

Performance Appraisal consists of a systematic, face-to-face discussion of an employee’s work performance, training and development needs, future job goals and job aspirations. It looks backwards, reviewing the employee’s performance during the period under review and forwards, helping the employee prepare and set goals for the upcoming review period. Managers evaluate things everyday. This may be done unconsciously. Managers also evaluate employees often also unconsciously. They know whether they are “good worker”, reliable and conscientious. For a variety of reasons many organizations ask managers to make conscious formal evaluations of employees too. It may be as part of the organization's normal annual or biannual Performance Appraisal System, which gives everyone a chance to clarify aims and objectives, build on strengths and plan to strengthen weakness.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of

http://en.wikipedia.org/wiki/Job_performance

http://en.wikipedia.org/wiki/Job_performance

http://en.wikipedia.org/wiki/Time

http://en.wikipedia.org/wiki/Cost

http://en.wikipedia.org/wiki/Quantity

http://en.wikipedia.org/wiki/Quality

http://en.wikipedia.org/wiki/Employee

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Performance Appraisal ______________________________________________________________________ personnel management and reflects the management’s interest in the progress of the employees.

In many organizations - appraisal results are used, either directly or indirectly, to help determine reward outcomes also it leads to the identification of the training and development needs of the employee.That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.)

OBJECTIVES OF PERFORMANCE APPRAISAL: The main purpose of an employee assessment are:

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.

BASIC PURPOSE:

Effective performance appraisal systems contain two basic systems operating in conjunction: an evaluation system and a feedback system.

Employee Viewpoint :From the employee viewpoint, the purpose of performance appraisal is four-fold:

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Performance Appraisal ______________________________________________________________________ (1) Tell me what you want me to do

(2) Tell me how well I have done it

(3) Help me improve my performance

(4) Reward me for doing well.

Organizational Viewpoint :From the organization's viewpoint, one of the most important reasons for having a system of performance appraisal is to establish and uphold the principle of accountability

BENEFITS OF APPRAISAL :

Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily working life, it offers a rare chance for a supervisor and subordinate to have "time out" for a one-on-one discussion of important work issues that might not otherwise be addressed.

Appraisal offers a valuable opportunity to focus on work activities and goals, to identify and correct existing problems, and to encourage better future performance. Thus the performance of the whole organization is enhanced.

Motivation and SatisfactionPerformance appraisal can have a profound effect on levels of employee motivation and satisfaction - for better as well as for worse.

Training and Development Performance appraisal offers an excellent opportunity - perhaps the best that will ever occur - for a supervisor and subordinate to recognize and agree upon individual training and development needs.

Recruitment and InductionAppraisal data can be used to monitor the success of the organization's recruitment and induction practices.

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Performance Appraisal ______________________________________________________________________ Employee EvaluationThough often understated or even denied, evaluation is a legitimate and major objective of performance appraisal.

The Link to RewardsResearch has reported that appraisees seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards.

PROCESS: Each step in the process is crucial and is arranged logically. The process shown down is somewhat idealized

METHODS: There are various methods of performance appraisal.An organization selects the most appropriate method which suits its business.Following are few of them:

Obectives of Performance Appraisal

Establish Job Expectation

Design an Appraisal Programme

Appraise Performance

Performance Interview

Use Appraisal Data for Appropriate Purpose

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Performance Appraisal ______________________________________________________________________ -Rating Scale

-Checklist

-Critical incidents Method

-Essay Method

-Confidential Records

-Self Appraisal

-Ranking Method

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PERFORMANCE APPRAISAL AT UNION BANK OF INDIA

The Performance Appraisal method followed in Union Bank of India is “Self Appraisal System”. Self appraisal is an important part of the Performance appraisal process.

Self appraisal system is undertaken at officer level (for non-operational and operational

assignments) in Union Bank of India every year on 31st March, where the employee

himself gives the feedback or his views and highlights regarding his performance.The

Appraisee highlight his best performances and also lists the areas where he feels he is

not upto the mark. The Appraisee is also asked to highlight problems he faced and

opportunities for which he is required to improve his performance. He is also asked to

mention any outstanding performance he’s done outside the bank but for the

bank.Based on this form he rates himself on various parameters. This is done by filling

“Performance Appraisal Form” (Highlights of “Performance Appraisal Form” is given

ahead.)

After completion of this, the Appraiser (generally the immediate superior of the

appraisee) comments on the Key Responsibility Areas, i.e., analyzing various business

dimensions related to financial aspects and it also includes qualitative aspects of

business such as attitude, customer service, etc. There is certain difference in business

dimensions and managerial dimensions expected differently from non-operational and

operational assignments. And then accordingly the Appraiser rates him. If there is any

deviation in the scores the Appraiser gives reasons for the same.

The final appraisal is done by the Reviewing Authority (generally superior or

immediate superior to the Appraiser), which includes remarks and comments

on the appraisal done. He also rates the Appraisee and provides the reasons

for any deviation in the score.

The overall assessment of performance is done for Operational and Non-

operational assignments. This performance is done on the basis of marks. The

assessment is done by both appraiser and reviewing authority.

http://appraisals.naukrihub.com/

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Performance Appraisal ______________________________________________________________________ From the above scores given by the appraiser and reviewing authority for

various attributes, Performance is rated on the scale of : Outstanding (80 – 100) Good (60 - 79 ) Average (40 – 59) Below Average (Below 40)

After the information so obtained from the assessment of performance, the

bank is able to provide training needs and is able to find out the potentiality of

the employees.

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HIGHLIGHTS OF ANNUAL PERFORMANCE APPRAISAL FORM

BIO DATA: (A)Personal Data(B)Previous Assignments(C)Training Programmes Attended (Seminars/Workshops to be excluded)

SELF APPRAISAL (By appraisee) : (A)Highlights of my performance during the year are as under

(B)Areas in which I feel I have not done well as under (C)Constraints faced (D)What according to me would enable me to perform better (E)Any outstanding performance outside the Bank (Assigned by the Bank)

KEY RESPONSIBILITY AREAS :

(A)For non-operational assignments(B)For operational assignments

QUALITATIVE ASPECTS OF BUSINESS (by appraiser):

For non-operational assignments: (A) House Keeping(B) Inspection & Audit(C) Customer Service(D) Submission of Periodical Returns(E) Recovery Performance(F) Aptitude for Poverty Alleviation Programmes

For operational assignments: (A) Job Knowledge(B) Leadership(C) Decision Making(D) Administrative Skill(E) Public Relations/Marketing Skills(F) Integrity and Honesty

Cont…

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OVERALL ASSESSMENT OF PERFORMANCE

Name of the Officer: ___________________________________________________

FOR OPERATIONAL ASSIGNMENTS:

ATTRIBUTES TOTAL BY APPRAISER

BY REVIEWING AUTHORITY

Business Dimensions 30Qualitative Aspects of Business 20Managerial Dimensions 40Outstanding Performance 10 TOTAL(100 MARKS) 100

NON-OPERATIONAL ASSIGNMENTS:

ATTRIBUTES TOTAL BY APPRAISER

BY REVIEWING AUTHORITY

Key Responsibility Areas 50Managerial Dimensions 40Outstanding Performance 10 TOTAL(100 MARKS) 100

Outstanding (80 – 100) Good (60 - 79 ) Average (40 – 59) Below Average (Below 40)

COMMENTS BY APPRAISER AND REVIEWING AUTHORITY:

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FINDINGS AND ANALYSIS

The Appraisal is undertaken every year on regular basis.

The appraisal system followed is at officer level,i.e. for non-operational

assignments and for operational assignments, i.e. apart from few criteria’s they

are rated differently for different attributes depending on their job profile. At

clerical level the superiors prepare “Confidential Report” and there is no part

taken by the employees at this level.

The whole Performance Appraisal System is Designed in such a way that the

appraisee can be evaluated on their Key Responsibilities Areas like - Quantity

of work, Meeting job requirements on a timely basis, Quality of work,

Effectiveness & Accuracy, Knowledge of job etc. and Managerial Attributes

like - Team Spirit, Decision Making Ability, Attendance, reliability and

dependability, Planning and organizational effectiveness, Initiative and

creativity etc.

Apart from this the appraiser comments on Conceptual abilities, Flexibility of

mind, Emotional Strength, Responsiveness to corporate concerns, Willingness

to assume Responsibilities, Creativity & Innovativeness, Communication Skills.

It is observed that the review done by the Reviewing Committee gets delayed

sometimes.

The appraisal is undertaken not mainly for deciding an increment but the main

objective behind this is to evaluate the annual performance of the employee so

that training can be provided and bank is able to find out the potentiality of

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the employees and also to maintain the records for the same for future

reference so that it can be used for promoting the employee in future.

In the whole appraisal system, often superiors assume the role of judges. In

contrast the aim is to develop employees; managers need to be counselors,

helpers and teachers.

The employees showed eagerness to learn from their mistakes which they hoped

to rectify and perform better.

Employees were hopeful that after the performance appraisal is over, they will

be properly rewarded for their work and that it was a way to ensure that their

efforts don’t go unnoticed.

Although the employees believe that performance appraisals are for their

betterment, in the beginning they had doubts in their minds about the issue of

bias being a factor in the process of evaluation.

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RECOMMENDATIONS

The Performance Appraisal System is Designed in such a way that the

employees can highlight their achievements and mention constraints but apart

from this target should be set as goals such that people strive to attain goals to

satisfy their emotions & desire.

Also the appraiser and the reviewer comments on various attributes of appraisee

but there is no proper face-to-face feedback given to employees wherein the

appraisee can personally discuss the problems faced by him and some solution

can be arrived at.

Also major feedback is given by work itself, a personal feedback along with

positive acknowledge would be welcomed by employees.

There can be sometimes some dissatisfaction on the part of the employee as the

comments and review given by the superiors can be biased so care should be

taken to avoid such an instance.

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CONCLUSION

From the above study we can conclude that maximum employees in the agency see

that the performance appraisal is a positive step taken by the organization to help

them to improve their own performance. Employees feel highly responsible towards

the job due to the freedom given for planning & completing their own objective, they

will feel even more responsible and involved if the changes in their work (changes by

client) are given taking their opinion.

Thus it can be concluded that Performance Appraisal is one of the best methods to not

only evaluate employees performance but also to motivate him and enhance his skills

by providing him with proper training by knowing the constraints he faces at his

work.

Hence, Performance Appraisal is a very positive step taken by any organization to

grow and also improve human resource quality.

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BIBLIOGRAPHY

Reference Books: - K Aswathappa - Human Resource and Personnel Management by Tata

McGraw – Hill Publishing Company Limited, New Delhi, Third Edition.

K Aswathappa - Organizational Behaviour.

Website: - www.unionbankofindia.com

2 Performance Apprasial of Union Bank of India

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