Axis Bank Appraisal

7/30/2019 Axis Bank Appraisal

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PERFORMANCE APPRAISAL PRACTICES IN AXIS BANK

A TRAINING REPORT

SubmittedBy

BACHELOR OF BUSINESS ADMINISTRATION

DOTWAY,FEROZPOUR ROAD,OPP.SBI BRANCH NEAR

AARTI CHOWK LUDHIANA

Punjab Technical University,Jalandhar


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PREFACE

Managing human resources in todays dynamic environment is becoming more and more

complex as well as important. Recognition of people as a valuable resource in the organization

has led to increases trends in employee maintenance, job security, etc

My research project deals with Performance Appraisal as carried out at AXIS BANK LTD. In

this report, I have studied &evaluated the performance appraisal process as it is carried out in the

company.


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ACKNOWLEDGEMENT

I hereby take this opportunity to put on record my sincere thanks to Mrs. Ramandeep Kaur (Head

of the centre) Mr. Deepak Gupta Miss Reetika for their valuable suggestion and cooperation toachieve the task.

I would also like to express my sincere thanks and gratitude to my banks guide Paran Gupta

(customer service).He have been immensely contributive with his ideas which was the guiding

light during the entire tenure of this work

With sincere thanks

BBA 5th Sem.


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INDEX

Sr no Contents Page no.

Company profile 34-71

Review of the literature 7-30

Research Methodology& Objective 31-33

Limitation 79

Conclusion 80

Suggestions 81

Bibliography 82

Appendix & Questionnaire 83-85


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COMPANY PROFILE

AXIS BANKS LTD


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HISTORY OF THE COMPANY

AXIS BANK LTD.

Axis Bank Limited, formerly UTI Bank s a financial services firm that had begun

operations in 1994, after the Government of India allowed new private banks to be established.

The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated

entities with similar name. After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named

as the bank's managing director and CEO on 20 April 2009.

The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. At

the end of September 2010, The Bank has a very wide network of more than 1281 branches and

Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs

(as on 31st March, 2011). The Bank has loans now (as of June 2007) account for as much as 70

per cent of the banks total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are

around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007.

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs

25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite

high and has matched that of the other banks, retail exposures grew at a slower pace.

If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a

deliberate business strategy, this could have significant implications (not necessarily negative)

for the overall future profitability of the business.

Despite the slower growth of the retail book over a period of time and the outright decline seenin the past year, the banks fundamentals are quite resilient. With the high level of mid-corporate

and wholesale corporate lending the bank has been doing, one would have expected the net

interest margins to have been under greater pressure. The bank, though, appears to have insulated

such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 2003-

04, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and


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HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank

are lower despite its much larger share of the higher margin retail business, since funding costs

also are higher).

The Bank today is capitalized to the extent of Rs. 409.90 crores with the public holding (other

than promoters and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India

in the Brand trust report.

The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. At

the end of September 2010, The Bank has a very wide network of more than 1281 branches and

Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs

(as on 31st March, 2011). The Bank has loans now (as of June 2007) account for as much as 70

per cent of the banks total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are

around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007.

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs

25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June

2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite

high and has matched that of the other banks, retail exposures grew at a slower pace.

If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a

deliberate business strategy, this could have significant implications (not necessarily negative)

for the overall future profitability of the business.

Despite the slower growth of the retail book over a period of time and the outright decline seen

in the past year, the banks fundamentals are quite resilient. With the high level of mid-corporate

and wholesale corporate lending the bank has been doing, one would have expected the net

interest margins to have been under greater pressure. The bank, though, appears to have insulated

such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 2003-

04, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and

HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank

are lower despite its much larger share of the higher margin retail business, since funding costs

also are higher).


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The Bank today is capitalized to the extent of Rs. 409.90 crores with the public holding (other

than promoters and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India

in the Brand Trust Report.

Axis Bank operates the worlds highest ATM site at Thegu, Sikkim at 13,200 feet above sea

level.


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THE VISIONAND THE CORE VALUES OF AIXS BANK

VISION-

To be the preferred financial solutions provider excelling in customer delivery through insight,

empowered employees and smart use of technology

CORE VALUES


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ACTIVITIES FROM AXIS BANK

CREDIT CARD CONSUMER BANKING CORPORATE BANKING FINANCE & INSURANCE INVESTMENT BANKING MORTGAGE LOAN PRIVATE BANKING PRIVATE EQUITY WEALTH MANAGEMENT

Agri & Rural Banking

Axis Bank one of the largest private sector financer in India for Agriculture loans wiz Retail

Agree & Corporate Agri

Axis Remit Online

This is a convenient and secure portal for NRIs to remit money to India, generally required for

maintenance of their relatives. It is a growing revenue stream for the bank, with more and more

NRIs registering to avail of the highly competitive exchange rates and convenient online facility.


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REVENUE AND NET INCOME IN 2011

Revenue - rupees...198.26 billion (3.77 billion USD$) in 2011

Net income - rupees33.88 billion (643.72 million USD$) in 2011

Number of Employees

21,640

BOARD OF DIRECTORS

Dr. Adarsh Kishore Chairman

Smt. Shikha Sharma Managing Director & CEO

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri M.V. Subbiah Director

Shri K. N. Prithviraj Director

Shri V. R. Kaundinya Director

Shri S. B. Mathur Director

Shri Prasad R. Menon Director

Shri R. N. Bhattacharyya Director

Shri Samir K Barua Director

Shri A K Dasgupta Director

Shri Som Mittal Director


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PRODUCTS/SERVICES OFFERED BY AXIS BANK

PERSON ACCOUNT

Easy Access Savings Account

Presenting, Axis Bank's Easy Access Savings Account. The account is an endeavor by the Bank

to understand the consumers' needs and redefine banking to suit your requirements for a truly

comfortable banking experience. Easy Access Savings Account gives you instant access to your

money anywhere, anytime. Possessing a range of unmatched features, it has been devised to

better suit the convenience of our eclectic client base.

Salary Account

We, at Axis Bank, believe in providing total financial solutions to the employer as well as the

employee, through the salary relationship. We understand that each employee in an organization

is at a different station of life having different financial and banking needs.

Customized solutions

One solution may not fit all. Therefore, each employee in an organization is offered a zero

balance salary account and associated privileges commensurate with her/his net monthly salary.

Our Salary Account offering has six variants, as follows:

Prive Salary - For employees with net monthly salary of Rs.5,00,000/- or more Wealth Salary - For employees with net monthly salary of Rs.2,00,000/- or more Priority Salary - For employees with net monthly salary of Rs.60,000/- or more Prime Salary - For employees with net monthly salary of Rs.25,000/- or more Easy Access Salary - For employees with net monthly salary of Rs.9,000/- or more Salary Plus - For employees with net monthly salary of Rs.9,000/- or more. Currently

being offered only to existing relationships

Smart Pay Card - For employees with net monthly salary less than Rs.9,000/-


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Benefits for the employees

Convenience in banking:o Anywhere Banking at any of our over 1400 branches and a network of over 6800

ATMs spread across more than 900 centers

o Multi-city at par chequebookso Electronic Fund Transfer facility across all banks in Indiao Internet Banking with secure fund transfer facility (with 2-factor authentication)

to self and third party accounts

o 24x7 convenience at no charges with Axis Mobileo Free SMS Banking with features such as alerts on debits / credits over Rs.5,000/-

balance enquiry, enquiry on last 3 transactions and status of cheque clearance etc

Pension Savings Account

Are you a Pensioner seeking banking solutions tailored to your needs?

Pension Savings Bank Account, from Axis Bank is specifically, designed for Pensioner's

(Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry

keeping in mind the fact that a Pensioner's banking requirements are wholly different and requirespecial consideration.

Benefits

Timely communication to the customer on receipt of the PPO No delays in commencement of pension disbursals - The Bank is handling the

disbursement of Pension under a Centralised Pension Disbursement Module wherein the

Pensioner records are credited centrally through its Centralised Pension Payment Hub(CCPH) at Mumbai.

Timely issue of Form- 16A for tax deducted at source in the immediately previousfinancial year

Timely revisions based on changes in rates of Pension or Dearness Allowance, donecentrally from the CCPH


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Women's Savings Account

For the woman of today

Presenting, Axis Bank's Women's Savings Account. The account is an endeavor by the Bank tounderstand the consumers' needs and redefine banking to suit your requirements for a truly

comfortable banking experience. Women's Savings Account gives you instant access to your

money anywhere, anytime. With the Women's Savings Account, you can manage your money

and your life and Furthermore Axis Bank's Women's Savings Account ensures that you have

enough time for all the important things in life.

LOANS

HOME LOAN

Quick and easy home loans

Need help buying a home?

Axis Bank offers affordable and flexible housing loans that can turn your dream of owning a

home into reality.

If rising real estate prices have pushed the house you coveted beyond your budget, Axis Bank's

unmatched home loans will put it within reach. The attractive interest rates and minimal

processing fees make our home finance products a first choice for savvy buyers. In addition,

features such as flexible tenures, transparent processing and quick service have made our

products stand out among the best home loans in India.

We have products to suit every budget, taste and need. Whether you are self-employed or

salaried, want a floating or fixed rate, Axis Bank will offer a loan that is just right for you.


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Car Loan

Car Loans in India - Axis Bank Car Loans

Axis Bank offers uniquely tailored car loan products that take the pain and hassle out of buying a

car. Flexible, transparent, quick, and cost-effective, our car loans put the joy back into owning a

car.

At Axis Bank, we realize that owning a car has increasingly become a necessity. But we also

realize that the price tag of your dream car may be just outside your immediate grasp. Axis

Bank's Auto Loans are just what you need to bridge the gap.

Designed specifically to meet the needs of a modern-day car buyer, our car loans offer attractive

interest rates and worry-free procedures. What's more, our streamlined car finance processes

ensure that you can drive away in your dream vehicle in quick time.

The Indian car buyer is spoilt for choice from top-of-the-line sedans to no-frills family

hatchbacks, there's a car for every taste and budget. Regardless of your choice or budget, Axis

Bank can help you with an attractive car loan.

So, don't put a brake on your desires. Get your dream vehicle with one of the best car loans in

India.


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Personal Loan

Quick and easy personal loans

Are you in need of some quick cash?

Presenting Axis Bank's Personal Loans. Go on your dream holiday, buy the latest lifestyle

gizmo, gift your wife a lovely diamond ring, renovate your house or just squash a temporary cash

crunch.

Let us give you a helping hand. Our personal loans will meet all your personal requirements.

Loans available for salaried individuals Special loans for Doctors, Chartered Accountants, Engineers, Architects and CS Loans are available from Rs 1 lack to Rs 20 lacks

Repayment tenures from 12 to 60 months Best in Class Rate of Interest Loans at higher rates can be transferred to Axis Bank with our Balance transfer facility. Simplified documentation.


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Education Loan

Higher education within your reach

Axis Bank's Study Power aims to provide financial support to deserving students for pursuing

higher professional or technical education in India and abroad. The loan would be provided to

students who have obtained admission to career-oriented courses e.g., medicine, engineering,

management etc., either at the graduate or post-graduate level.

Quantum of Loan

The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and

Rs 20.00 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of

books, etc. The minimum amount of loan would be Rs 50,000.

Margin:No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within

India and 15% for higher studies overseas.

Role of the Guardian:

The parent(s) or guardian of the student would be treated as a co-applicant of the loan. His or her

role would be, necessarily, like the primary debtor.


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ATM CARDS SERVICES

CREDIT CARD

Gold Credit Card

Axis Bank presents an exclusive credit card for exclusive people - Gold Credit Card. With it you

can access special features and avail the best benefits.

SilverCredit Card

Sheer Surprises coming your way

Presenting, Axis Bank's Silver Credit Card. Now, you can experience freedom like never before.

Freedom from cash, long queues and all other hassles.

EShop Card

Making your online shopping more secure

Worried about revealing your credit card details on the Internet?

Axis Bank presents the eShop Card. A virtual credit card that allows you to shop online securely


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without divulging your credit card details.

All you need is your Axis Bank Credit Card and an Internet connection!

How?

Just follow these simple steps to start secure online shopping.

Register

Register once with your Axis Bank Credit Card details. Accept the terms and conditions and add

personal details to get your unique login and password.

Generate

Simply specify the amount you want to shop for with your eShop Card. It should be within the

available limit on your Axis Bank Credit Card.

eShop!

Now you are all set to shop online.


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Platinum Credit Card

Axis Bank presents an exclusive credit card for exclusive people. With it you can access special features

and avail the best benefits.

DEBIT CARD

Gold Plus Debit CardThe Gold plus Debit Card is an effort from Axis Bank to offer our customers the best value

possible through a debit card. Available only to our most privileged Savings Bank account

holders, the Gold plus Debit Card mirrors your success and needs with a host of privileges,

benefits and exclusive value deals.


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Gold Debit Card

Earn while you shop

Axis Bank's Gold Debit Card is more than just a debit card. It comes with a host of enhanced

benefits and reward program. It is exclusively issued to our Premium Salary account customers,

it is a result of our constant Endeavour to understand your requirements and design products and

services keeping you in mind

Classic Debit Card

Easy access to your account, no matter where you are

Modern times necessitate that you need to have access to your money anytime and any where.

The Axis Bank International Debit Card addresses this need.

A deposit access program, the Debit Card redefines convenience. Apart from being an ATM

(Automated Teller Machine) Card used for withdrawing cash, it also enables you to shop and

make cashless purchases. You can use the card to make payments at shops, department stores,

restaurants, petrol pumps and many more outlets in India and overseas.

The Axis Bank Debit Card is a VISA Electron Card and is accepted at VISA and VISA Plus

ATMs worldwide and all merchant establishments using electronic terminals and displaying the

VISA Electron sign.


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SAFEDEPOSITELOCKER

Unmatched protection for your valuables

Looking for a safe storage place for your valuables?

A Safe Deposit Locker with Axis Bank is the solution to your concern. Located at select

branches in cities all over the country, our lockers ensure the safe keeping of your valuables.

Advantages

Wide Availability: As on November 30, 2010 lockers are available at 944 branches and extensioncounters.

Lockers available in various sizes. Direct debits for locker rentals from your account rid you of the hassles in writing out cheques. Extended banking hours to operate lockers. Competitive rentals.


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TAX E PAYMENT

Axis Bank is authorized by Reserve Bank of India (RBI) and Govt. of India for collecting

Income/ other Direct Taxes and Central Excise & Service Tax since August 2003 through its

authorized Braches and through e-Payments.

You can pay your Income / Other Direct Taxes, as well as Central Excise & Service Tax*

through connect from your account online and get on-line acknowledgement of the payment by

way of a Cyber Receipt, including Chillan Identification Number (CIN) immediately after

making the payment.

INSURANCE

Motor Insurance

Your car insurance policy is the most important document in your vehicle. No wonder millions

of car owners across India trust Bajaj Allianz to insure their car. Along with comprehensive

coverage against physical damage, bodily injury and cover against third-party liability, your car

insurance brings to you confidence and peace of mind. All this is backed by our superior claims

servicing capability and fast settlement record.


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Safe Guard

Axis Bank and Bajaj Allianz General Insurance present you the 'Safe Guard' personal Accident

Insurance cover. A unique policy that offers you insurance coverage at premiums that is

extremely competitive and exclusively meant for Axis Bank customers.

Safe Home

Your home is your most valued possession, a haven of safety. But is it really as safe as you

would like to believe?

We at Axis Bank realize your need to make your home as secure in reality, as it is in your mind,

which is why we, in association with Bajaj Allianz General Insurance bring you - Safe Home, an

insurance policy exclusively designed for Axis Bank customers, which provides protection for

your property and valuables at your home.

Family Health

Only Axis Bank offers you the advantage of insuring not just yourself but your entire family with

one policy. Our Family Health insurance programme provides a comprehensive health insurancethat covers you, your spouse and 3 dependent children up to the age of 18 years. Thanks to our

association with Bajaj Allianz General Insurance, now you don't have to pay multiple premiums

to insure all the members in your family.

Family Health Insurance Programmed provides you and your family members,

Hospital Reimbursement:Reimbursement of your hospital expenses in case of sudden illness, accidents or emergency

surgeries and

Hospital Cash Payout:Additional cash benefit for each and every completed day of hospitalization.


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Travel Companion

Whether you travel for business or pleasure, international travel involves risk. Medical treatment

abroad can be expensive and one never knows when one would require it. Having to spend for

medical bills in foreign currency can be expensive proposition. There are other difficult

situations also, that one might face like loss of passport or baggage. Bajaj Allianz's Travel

Companion is specially designed to help you deal with such situations while overseas travel.

Business Advantage

You have built your business by investing so much hard work, time, energy and money. You

could face heavy losses if your business premises are burgled or if machinery breaks down.

Therefore it's essential to safeguard your investment with an insurance cover that protects against

losses due to unforeseen calamities.

Advantages:

Complete risk cover for your business needs Cover against loss due to terrorism* Competitive rates Simple documentation Easy payment options

Safe Home Plus

Home is a dream, which you have turned into reality with your sweat, pain, happiness, energy

and time. Axis Bank helps you to protect this dream against unforeseen calamities.


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INTERNRT BANKING

Get control over your account anytime, anywhere at your comfort with Axis Bank Internet

Banking - a one stop solution for all your banking needs. View all your accounts detail, submit

requests and undertake a wide range of transactions.

Features

Account Details: View your bank account details, account balance, download statementsand more. Also view your Demat, Loan & Credit Card Account Details too all in one

place.

Fund Transfer: Transfer fund to your own accounts, other Axis Bank accounts or OtherBank account seamlessly.

Request Services: Give a request for Cheque book, Demand Draft, Stop ChequePayment, Debit Card Loyalty point Redemption etc.

Investment Services: View your complete Portfolio with the bank, Create FixedDeposit, Apply for IPO etc.

Value Added Services: Pay Utility bills for more than 160 billers, Recharge Mobile,Create Virtual Cards, Pay any Visa Credit Card bills, Register for statement and sms

banking etc.


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MOBILE BANKING

Keep a watch on your account with our round the clock SMS Banking service. Every debit or

credit in your account is intimated to you by an SMS as soon as it happens. Be in a smart

position to detect any unauthorized access to your account.

Missing debit cards, unauthorized card usage or compromised passwords are no longer a threat

to you. Axis Bank's SMS Banking service provides you with the ability to detect and prevent

misuse of your bank account.


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PRACTISE PERFORMANCE APPRAISAL IN AXIS BANK

Performance Appraisal is the process of assessing the performance of an employee within a

given time period by a Manager or supervisor. It helps in measuring the exact performance of the

employee, his strengths and weaknesses and the required improvements.

Performance Appraisal is very important aspect for reviewing. Nowadays almost each and every

company follows it.

The Manager or supervisor who is going to perform appraisal should be well aware of the

working conditions of the organization, organizational goals and the employees whose

performance needs to be reviewed. New managers should not be given this task. Every company

has a set of norms and conditions which should be followed. The person who is going to do

Performance Appraisal should know the rules and regulations. He should bear in mind that it is

being done for improving the performance of employees and in turn the overall performance of

the organization. Individual data of employees is collected over a period of one year. Employees

performance is reviewed every two to three months. The supervisor talks to the employees and

lets him know how close he is to his goal and in what areas he needs improvements. Training

sessions are conducted for employees who lack some knowledge or for those whose

performances are not up to the mark.

Managers ask various questions to the employees for reviewing their performance. They should

try to keep the employee cool and calm and conduct a bit informal meeting rather than a formal

one. Until and unless the employee opens up its useless performing an appraisal and expecting

him to better his performance. Managers should try and find out reasons for employees bad

performance. Merely reviewing a problem will not help but the problem needs to be addressed at

the grass root level or its useless. Employees performance can change over a period of time so

past data should be reviewed but should not be given much consideration.

Most effective appraisal system is 360 degrees approach in which data is collected from

employees himself, his peers, customers and seniors. This is the best method because when

everyone reviews a persons performance we get an appropriate figure for calculation and the
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spectrum for review increases. Managers should review the performance and give feed backs.

The feedback should not be negative. It should be positive and encouraging. The reason behind

appraisal is to enhance the performance of an employee and not to lower his morale. Managers

should consider every point from the start and not a particular negative behavior or incident

while writing review. He should also not hold any personal grudges with the employee. He

should give an unbiased report concentrating totally on an employees overall performance in the

organization.

Performance appraisal is carried out so that an employee works with full devotion and is

committed to his work. He does not show a laid back attitude and get irregular. It should increase

employees efficiency and his commitment towards work. Regular review of performance is very

useful because it makes the organization aware of employees who are poor or non performersand are not improving. These employees need to be fired or should not be given a pay hike.

Good performers move up the ladder and acquire respectable positions in the organization thus

leading to the profitability in the long run.


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Key Features followed by Axis Bank in Practicing Performance Appraisal

Performance Goals are linked to the Corporate Strategy and Goals logically cascadeddown organization units to individual level.

Written Performance Agreements/Plans are drawn up via one-on-one goal-settingsessions between line managers and direct reports, as early as possible at the start of a

new performance year.

Individual Performance Agreements include performance measures that are derived froma position's job/role description, as well as relevant corporate cascaded-down goals.

Line managers ensure that employees have sufficient resources and tools to get the jobdone, and that systems, processes and policies facilitate (and not hinder) optimal

performance. Both line managers and their direct reports are keeping a record of the letters'

performance to refer to during performance reviews.

Performance Agreements are adapted as and when priorities and the situation on theground change.

Performance feedback (positive and/or 'negative' - constructive), and related coaching,are given to employees on an ongoing basis, so that there are no unpleasant surprises at

performance review time.

In addition to the formal performance reviews, line managers and their direct reportsshould meet at least monthly (1-1) to discuss performance progress and challenges.

Employees are given adequate warning (at least 14 days) of performance reviews (dateand time mutually agreed).

Performance reviews are facilitated by line managers in a way that involves the employeeand asks for their input first on how they have fared on each measure and what ratings

they think best reflects their performance. Line managers add their own view, and

facilitate agreement. Second-level line managers are brought in with disputes, and have

the final say. A grievance policy and procedure exists as employee last resort when still

unhappy.

Personal Development Plans (as a performance review output) are based on currentcompetency shortfalls as well as new role challenges and employee career goals.


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Performance is linked to remuneration in a way that sends a clear message to both goodand poor performers. Sufficient reward differentiation is made so that top performers are

lifted out materially and psychologically for their efforts.

Employees experience the entire process as positive, motivating and career-enhancing.


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REVIEW OF THE LITERATURE

PERFORMANCE APPRAISAL

Human Resource (or personnel) management, in the sense of getting things done through people,

is an essential part of every managers responsibility, but many organizations find it

advantageous to establish a specialist division to provide an expert service dedicated to ensuring

that the human resource function is performed efficiently.

People are our most valuable asset is a clich, which no member of any senior management

team would disagree with. Yet, the reality for many organizations is that their people remain

undervalued, under trained and underutilized.

Performance Appraisal is the process of assessing the performance and progress of an employee

or a group of employees on a given job and his / their potential for future development. It

consists of all formal procedures used in the working organizations to evaluate personalities,

contributions and potentials of employees.

The history of performance appraisal is quite brief. Its roots in the early 20th century.

But this is not very helpful, for the same may be said about almost everything in the fieldof modern human resources management. 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. Yet in a broader sense, the practice of appraisal is a very

ancient art. In the scale of things historical, it might well lay claim to being the worlds second

oldest profession! There is, saysDulewicz (1989),

".. a basic human tendency to make judgments about those one is working with, as well as about

oneself."

Appraisal, it seems, is both inevitable and universal. In the absence of a carefully structured system of

appraisal, people will tend to judge the work performance of others, including subordinates, naturally,

informally and arbitrarily. The human inclination to judge can create serious motivational, ethical and

legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring

that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems
http://www.performance-appraisal.com/dulewicz.htmhttp://www.performance-appraisal.com/dulewicz.htmhttp://www.performance-appraisal.com/dulewicz.htmhttp://www.performance-appraisal.com/dulewicz.htmhttp://www.performance-appraisal.com/dulewicz.htm


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began as simple methods of income justification. That is, appraisal was used to decide whether or not the

salary or wage of an individual employee was justified. The process was firmly linked to material

outcomes. If an employee's performance was found to be less than ideal, a cut in pay would

follow. On the other hand, if their performance was better than the supervisor expected, a pay

rise was in order. Little consideration, if any, was given to the developmental early motivational

researchers were aware that different people with roughly equal work abilities could be paid the

same amount of money and yet have quite different levels of motivation possibilities of

appraisal. It was felt that cut in pay, or a rise, should provide the only required impetus for an

employee to either improve or continue to perform well. Sometimes this basic system succeeded

in getting the results that were intended; but more often than not, it failed. For example, early

motivational researchers were aware that different people with roughly equal work abilities could

be paid the same amount of money and yet have quite different levels of motivation and

performance. These observations were confirmed in empirical studies. Pay rates were important,

yes; but they were not the only element that had an impact on employee performance. It was

found that other issues, such as morale and self-esteem, could also have a major influence. As a

result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in

the United States, the potential usefulness of appraisal as tool for motivation and development

was gradually recognized. The general model of performance appraisal, asset is known today,

began from that time. Most persons share a desire to know the answer to the question, "How am

I doing?"They want to know what is expected of them, how well they are meeting the

expectations, how they can improve, and some want to know how they might qualify for

higher responsibilities. The process of performance appraisal should provide the opportunity

for discussion of these concerns. The process should also provide the basis for enhanced

communication among college personnel. The feedback is one of the most important tools

provided by Human Resources to managers as the motivational tool. The feedback by Human

Resources is organized usually in the process of the Performance Appraisal.

When speaking with HRM Professionals, you can hear a lot about the performance

management process and the forms used to formalize the whole process of the performance

appraisals. Generally, the manager should give feedback and the quality of the feedback provides


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the performance appraisals to the individual employee. But as the HRM Function wants to have a

control over the whole performance management process, the main stress is put on the formal

record of the whole performance appraisal discussion. The performance appraisals can have a

huge impact on the future of the employee in the company. When the feedback is provided

correctly and the manager makes a follow up of all the agreements done during the performance

appraisal interview, the performance appraisals can work without any formal documents. As the

HRM Function is responsible for the performance management process, it brings new and better

performance appraisal forms every single year. And the result usually fails every year. The

managers and the employees do not see the benefits of participating in the performance review

process as they take it as an activity driven by Human Resources for Human Resources.


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CONCEPTS

Typically, performance appraisal has been limited to a feedback process betweenemployees and

supervisors. However, with the increased focus on teamwork, employee development, and

customer service, the emphasis has shifted to employee feedback from the full circle of sources

depicted in the diagram below. This multiple-input approach to performance feedback is

sometimes called 360-degreeassessment to connote that full circle. There arena prohibitions in

law or regulation against using a variety of rating sources, in addition to the employee

supervisor, forassessing performance. Researches shown assessment approaches with

multiple rating sources provide more accurate, reliable, and credible information. For this reason,

the U.S. Office of Personnel Management supports the use of multiple rating sources as an

effective method of assessing performance for formal appraisal and other evaluative and

developmental purposes. The circle, or perhaps more accurately the sphere, of feedback sources

consists of supervisors, peers, subordinates, customers, and ones self. It is not necessary, or

always appropriate, to include all of the feedback sources in a particular appraisal program. The

organizational culture and mission must be considered, and the purpose of feedback will differ

with each source. For example, subordinate assessments of a supervisors Performance can

provide valuable developmental guidance, peer feedback can be the heart of Excellence in

teamwork, and customer service feedback focuses on the quality of the teams or agencys

results. The objectives of performance appraisal and the particular aspects of performance that

are to be assessed must be established before determining which sources are appropriate.


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SUPERIORS

Evaluations by superiors are the most traditional source of employee feedback. This form of

evaluation includes both the ratings of individuals by supervisors on elements in an employees

performance plan and the evaluation of programs and teams by senior managers.

SELF-ASSESSMENT

This form of performance information is actually quite common but usually used only as

informal parts of the supervisor-employee appraisal feedback session. Supervisors frequently

open the discussion with: How do you feel you haveperformed? In a somewhat more formal

approach, supervisors ask employees to identify the key accomplishments they feel best

represent their performance in critical and non-critical performance elements. In a 360-degreeapproach, if self-ratings are going to be included, structured forms and formal procedures are

recommended.

PEERS

With downsizing and reduced hierarchies in organizations, as well as the increasing use of teams

and group accountability, peers are often the most relevant evaluators of their colleagues

performance. Peers have a unique perspective on a co-workers job performance and employees

are generally very receptive to the concept of rating each other. Peer ratings can be used when

the employees expertise is known or the performance and results can be observed. There are

both significant contributions and serious pitfalls that must be carefully considered before

including this type of feedback in a multifaceted appraisal program.

SUBORDINATES

An upward-appraisal process or feedback survey (sometimes referred to as a SAM, for

Subordinates Appraising Managers) is among the most significant and yet controversial

features of a full circle performance evaluation program. Both managers being appraised and

their own superiors agree that subordinates have unique, often essential, perspective. The

subordinate ratings provide particularly valuable data on performance elements concerning

managerial and supervisory behaviors. However, there is usually great reluctance, even fear,


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concerning implementation of this rating dimension. On balance, the contributions can outweigh

the concerns if the precautions noted below are addressed.

CUSTOMERS

Executive Order 12862, Setting Customer Service Standards, requires agencies to survey internal

and external customers publish customer service standards, admeasure agency performance

against these standards. Internal customers are defined as users of products or services supplied

by another employee or group within the agency or organization. External customers are outside

the organization and include, but are not limited to, the general public.

DEFINITION OF PERFORMANCE APPRAISAL

Appraisal is a process that provides an analysis of a Persons overall capabilities and potential,

allowing informed decisions to be made for particular purposes. An Important part of the


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process is assessment, whereby data on an individuals past and current work behavior and

Performance are collected and reviewed

Performance Appraisal is defined as the process of assessing the performance and progress of an

employee or a group of employees on a given job and his / their potential for future development.It consists of all formal procedures used in working organizations and potential of employees.

According to Flippo, Performance Appraisal is the systematic, periodic and an important rating

of an employees excellence in matters pertaining to his present job and his potential for a better

job.

CHARACTERISTICS

1. Performance Appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an employee in terms

of his job.

3. It is scientific and objective study. Formal procedures are used in the study.

4. It is an ongoing and continuous process wherein the evaluations are arranged

periodically according to a definite plan.

5. The main purpose of Performance Appraisal is to secure information necessary for

making objective and correct decision an employee.


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PROCESS

The process of performance appraisal:

1. Establishing performance standards

2. Communicating the Standards

3. Measuring Performance

4. Comparing the actual with the standards

5. Discussing the appraisal

6. Taking Corrective Action

LIMITATIONS

1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge


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METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even considering

the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing

away with appraisals themselves is like trying to solve the problems of life by committing

suicide. The more logical task is to identify those appraisal practices that are (a) most likely to

achieve a particular objective and (b) least vulnerable to the obstacles already discussed.

Before relating the specific techniques to the goals of performance appraisal stated at the outset

of the article, I shall briefly review each, taking them more or less in an order of increasing

complexity.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL

In its simplest form, this technique asks the rater to write a paragraph or more covering an

individual's strengths, weaknesses, potential, and so on. In most selection situations, particularly

those involving professional, sales, or managerial positions, essay appraisals from former

employers, teachers, or associates carry significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent and

reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is

he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that

vary with the job but usually include personal traits like reliability and cooperation. It may also

include specific performance items like oral and written communication.


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FIELD REVIEW

The field review is one of several techniques for doing this. A member of the personnel or

central administrative staff meets with small groups of raters from each supervisory unit and

goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b)

help the group arrive at a consensus, and (c) determine that each rater conceives the standards

similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish objective

standards of comparison between individuals, but it does not involve the intervention of a third

party.


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MANAGEMENT BY OBJECTIVES

To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,

employees in some organizations are being asked to set - or help set - their own performance

goals. Within the past five or six years, MBO has become something of a fad and is so familiar

to most managers that I will not dwell on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare people who work fordifferent supervisors, individual statements, ratings, or appraisal forms are not particularly

useful. Instead, it is necessary to recognize that comparisons involve an overall subjective

judgment to which a host of additional facts and impressions must somehow be added. There is

no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison ranking.

1. Alternation ranking:

Ranking of employees from best to worst on a trait or traits is another method for evaluating

employees. Since it is usually easier to distinguish between the worst and the best employees

than to rank them, an alternation ranking method is most popular. Here subordinates to be rated

are listed and the names of those not well enough to rank are crossed. Then on a form as shown

below, the employee who is highest on the characteristic being measured and the one who is thelowest are indicated. Then chose the next highest and the next lowest, alternating between

highest and lowest until all the employees to be rated have been ranked.


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2. Paired-comparison ranking:

This technique is probably just as accurate as alternation ranking and might be more so. But

with large numbers of employees it becomes extremely time consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or

more people are asked to make independent rankings of the same work group and their lists are

averaged), are among the best available for generating valid order-of-merit rankings for salary

administration purposes.

ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about the assessment of

future performance or potential? In any placement decision and even more so in promotion

decisions, some prediction of future performance is necessary. How can this kind of prediction

be made most validly and most fairly?

360 DEGREE FEEDBACKS

Many firms have expanded the idea of upward feedback into what the call 360-degree feedback.

The feedback is generally used for training and development, rather than for pay increases.

Most 360 Degree Feedback system contains several common features. Appropriate parties

peers, supervisors, subordinates and customers, for instance complete survey, questionnaires

on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings

are not given just by the next manager up in the organizational hierarchy, but also by peers andsubordinates. Appropriates customer ratings are also included, along with the element of self

appraisal. Once gathered in, the assessment from the various quarters are compared with one

another and the results communicated to the manager concerned.


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Another technique that is useful for coaching purposes is, of course, MBO. Like the critical

incident method, it focuses on actual behavior and actual results, which can be discussed

objectively and constructively, with little or no need for a supervisor to "play God.

Advantages

Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee

meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job

performance. Employees are judged according to real outcomes, and not on their potential for

success, or on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be observed easily. The

MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied

elements that go to make up employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so many

constituent parts, but to put all the parts together and the performance may be directly observed

and measured.

Disadvantages

This approach can lead to unrealistic expectations about what can and cannot be reasonably

accomplished. Supervisors and subordinates must have very good "reality checking" skills to use

MBO appraisal methods. They will need these skills during the initial stage of objective setting,

and for the purposes of self-auditing and self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid objectives may

be distorted to disguise or justify failures in performance.


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BENEFITS OF PERFORMANCE APPRAISALS

Measures an employees performance. Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback. Facilitates assessment and agreement of training needs. Helps in identification of personal strengths and weaknesses. Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building. Plays major role in organizational training needs assessment and analysis. Improves understanding and relationship between the employee and the reporting

manager and also helps in resolving confusions and misunderstandings.

Plays an important tool for communicating the organizations philosophies, values, aims,strategies, priorities, etc among its employees.

Helps in counseling and feedback.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases referred toas 'rating errors'. These errors can seriously affect assessment results. Some of the most

common rating errors are: -

Leniency or severity: - Leniency or severity on the part of the rater makes theassessment subjective. Subjective assessment defeats the very purpose of performance

appraisal. Ratings are lenient for the following reasons:

a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorablywill reflect poorly on his or her own worthiness.

b) She/he may feel that a derogatory rating willbe revealed to the rate to detriment therelations between the rater and the rate.

c) He /she may rate leniently in order to win promotions for the subordinates andtherefore, indirectly increase his/her hold over him.


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Central tendency: - This occurs when employees are incorrectly rated near the averageor middle of the scale. The attitude of the rater is to play safe. This safe playing attitude

stems from certain doubts and anxieties, which the raters have been assessing the rates.

Halo error: - A halo error takes place when one aspect of an individual's performanceinfluences the evaluation of the entire performance of the individual. The halo error

occurs when an employee who works late constantly might be rated high on productivity

and quality of output as well as on motivation. Similarly, an attractive or popular

personality might be given a high overall rating. Rating employees separately on each of

the performance measures and encouraging raters to guard against the halo effect are the

two ways to reduce the halo effect.

Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high orlow score are given only to certain individuals or groups based on the rater's attitude

towards them and not on actual outcomes or behaviors; sex, age, race and friendship

biases are examples of this type of error.

Primacy and Regency effects: - The rater's rating is heavily influenced either bybehavior exhibited by the rate during his early stage of the review period (primacy) or by

the outcomes, or behavior exhibited by the rate near the end of the review period

(regency). For example, if a salesperson captures an important contract/sale just before

the completion of the appraisal, the timing of the incident may inflate his or her standing,

even though the overall performance of the sales person may not have been encouraging.

One way of guarding against such an error is to ask the rater to consider the composite

performance of the rate and not to be influenced by one incident or an achievement.

Performance dimension order: - Two or more dimensions on a performance instrumentfollow each other and both describe or rotate to a similar quality. The rater rates the first

dimensions accurately and then rates the second dimension to the first because of the

proximity. If the dimensions had been arranged in a significantly different order, the

ratings might have been different.


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Spillover effect: - This refers lo allowing past performance appraisal rating lounjustifiably influence current ratings. Past ratings, good or bad, result in similar rating

for current period although the demonstrated behavior does not deserve the rating, good

or bad.


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ROLES IN THE PERFORMANCE APPRAISAL PROCESS

a) Reporting Manager

-Provide feedback to the reviewer / HOD on the employees behavioral traits

indicated in the PMS Policy Manual

-Ensures that employee is aware of the normalization / performance appraisal process

- Address employee concerns / queries on performance rating, in consultation with the

reviewer

b) Reviewer (Reporting Managers reporting Manager)

-Discuss with the reporting managers on the behavioral traits of all the employees for

whom he / she is the reviewer

-Where required, independently assess employees for the said behavioral traits; such

assessments might require collecting data directly from other relevant employees

c) HOD (In some cases, a reviewer may not be a HOD)

-Presents the proposed Performance Rating for every employee of his / her function to

the Normalization committee.

-HOD also plays the role of a normalization committee member

-Owns the performance rating of every employee in the department

d) HR Head

-Secretary to the normalization committee

-Assists HODs / Reporting Managers in communicating the performance rating of all the

employees

e) Normalization Committee

-Decides on the final bell curve for each function in the respective Business Unit / Circle


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-Reviews the performance ratings proposed by the HODs, specifically on the upward /

downward shift in ratings, to ensure an unbiased relative ranking of employees on

overall performance, and thus finalize the performance rating of each employee


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KEY CONCEPTS IN PMS

In order to understand the Performance Management System at AXIS BANK, some concepts

need to be explained which play a very important role in using the PMS successfully. They are:

- KRAS (KEY RESULT AREAS): The performance of an employee is largely dependent

on the KRA score achieved by the employee during that particular year. Thus, it is

necessary to answer a few basic questions i.e.

-What are the guidelines for setting the KRAs for an employee?

-How does an employee write down his KRAs for a particular financial year?

-KRAs: The Four Perspectives.

-How is the KRA score calculated for an employee on the basis of the targets sets

and targets achieved?

-BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees performance

combined with the general behavioral traits displayed by the employee during a year

constitutes his behavior traits. An employee is assigned the rating on the basis of the

intensity of the behavior displayed by him. They play a very important role in the

deciding the final performance rating for an employee as is even capable of shifting the

rating one level upwards/downwards.

-AXIS BANK 2012 LEADERSHIP COMPETENCY FRAMEWORK: This

competency framework is a simple and structured way to describe the elements of

behaviors required to perform a role effectively. This framework also tries to assess the

performance of an employee objectively.

-THE PERFORMANCE RATING PROCESS: The rating process tries to explain the

four different types of rating that an employee can achieve i.e. EC, SC, C and PC. It also

explains the criteria, which is considered for awarding any of these ratings to the

employee.


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-PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion

and normal distribution guidelines provide the framework within which the performance

appraisal process has to work. It is very important that the HR department pays due

attention to these guidelines while preparing the bell curves for various functions and the

consolidated bell curve for all the functions. These guidelines also help in deciding upon

the promotion cases in a year.


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PERFORMANCE RATING PROCESS

EXCEPTIONAL CONTRIBUTOR (EC)

Performs consistently andsubstantially above expectations in allareas

Achieves a final score greater than orequal to 115%

Consistently delivers on stretchtargets

Is proactive Spots and anticipates problems,

implements solutions

Sees and exploits opportunities

Delivers ahead of time

Sees the wider picture-impacts acrossbusiness

Focuses on whats good for thebusiness

Seen as role model by others

Recognized as exceptional by otherfunctions as well

Motivates others to solve problems

Develops others

Provides open and honest feedback

Able to establish and lead cross-functional teams

SIGNIFICANT CONTRIBUTOR (SC)

Performs above expectations in allareas

Achieves final score between 100-114%

Versatile in his/ her area ofoperation

Develops creative solutions andrequire little / minimal supervision

Sets examples for others Take ownership of own

development Coaches others Demonstrates business initiative Is self motivated Supportive team player Leads own team very effectively Demonstrate functional initiative


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TEN TIPS FOR CREATING A EMPLOYEE APPRAISAL SYSTEM

Face the facts: Creating a new employee performance appraisal system is a difficult undertaking.

Its even more difficult if the organization doesnt have a logical, well-tested, step-by-step

process to follow in developing their new procedure.

One

Get top management actively involved. Without top managements commitment and visible

support, no program can succeed. Top management must establish strategic plans, identify

values and core competencies, appoint an appropriate Implementation Team, demonstrate the

importance of performance management by being active participants in the process, and use

appraisal results in management decisions.

Two

Establish the criteria for an ideal system. Consider the needs of the four stakeholder groups of

any appraisal system: Appraisers who must evaluate performance; Appraises whose performance

is being assessed; Human Resources professionals who must administer the system; and the

Senior Management group that must lead the organization into the future. Identifying their

expectations at the start helps assure their support once the system is finally designed. Ask each

group: "What will it take for you to consider this system a smashing success?" Dont settle for

less.

Three

Appoint an Implementation Team. This task force should be a diagonal slice of both appraisers

and appraises from different levels and functions in the organization. The implementation team is

responsible for accomplishing the two major requirements for a successful system. First,

developing appropriate appraisal forms, policies and procedures. Second (and the task too often

overlooked) assuring a successful deployment.


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Four

Design the form first. The appraisal form is a lightning rod that will attract everyones attention.

Design the form early and get lots of feedback on it. Dont believe anybody who tells you that

the form isnt important. Theyre wrong. If youre designing a new form internally, make sure it

assesses both behaviors and results.

Five

Build your mission, vision, values, and core competencies into the form. Performance appraisal

is a means, not an end. The real objective of any performance management systems to make sure

that the companys strategic plan and vision and values are communicated and achieved. Core

competencies expected of all organization members should be included, described and assessed.

If your mission statement isnt clearly visible in the performance appraisal system, cynicism will

likely result. Values become real only when people are held accountable for living up to them.

Six

Assure on-going communication. Circulate drafts and invite users to make recommendations.

Keep the development process visible through announcements and regular updates. Use surveys,

float trial balloons, request suggestions and remember the cardinal principle "People support

what they help create."

Seven

Train all appraisers. Performance appraisal requires a multitude of skills behavioral

observation and discrimination, goal-setting, developing people, confronting

unacceptable performance, persuading, problem-solving, planning, etc. Unless appraiser training

is universal and comprehensive, the program wont produce much. And dont ignore the most

important requirement of all: the need for courage.

.


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Eight

Orient all appraises. The programs purposes and procedures must be explained in advance

and explained enthusiasticallyto everyone who will be affected by it. Specific skills training

should be provided if the new performance management procedure requires self-appraisal, multi-

rater feed-back, upward appraisal, or individual development planning.

Nine

Use the results. If the results of the performance appraisal are not visibly used in

making promotion, salary, development, transfer, training and termination decisions, people will

realize that its merely an exercise.

Ten

Monitor and revise the program. Audit the quality of appraisals, the extent to which the system is

being used, and the extent to which the original objectives have been met. (One of the great

advantages of an online performance appraisal system is that all of these data are available

instantaneously.)

Provide feedback to management, appraisers and appraises. Train new appraisers as they are

appointed to supervisory positions. Actively seek and incorporate suggestions for improvement.

A companys performance appraisal process is critically important. It answers the two questions

that every member of an organization wants to know: 1) what do you expect of me? And 2) how

am I doing at meeting your expectations? Using these ten tips will help you develop or select a

system to will give accurate and complete answers to everyone.


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OBJECTIVES OF THE STUDY

To carry out the study of AXIS BANK, we framed the following objectives

1. Identification of the technique of performance appraisal followed in AXIS BANK.

2. Employee attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

1. Enhance productivity

2. Attain global standards

4. To provide suggestions & recommendations from the study conducted


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RESEARCH METHODOLOGY

Is a way to systematically solve the research problem? When we talk of research methodologywe not only talk of research methods but also consider the logic behind it. We use in the context

of our research studies and explain why we are not using the other method so that research result

is capable of being evaluated either by the researcher himself or by the other. The purpose of this

section is to describe the methodology carried out to complete the work. the effectiveness of any

research work depend upon the correctness and effectiveness of the research methodology.

DATA COLLECTION

Data is defined as raw facts that need to be processed so that information is produced. For

achieving useful result it is necessary to collect accurate data. If the data collected is incorrect, on

the basis of which we are conducting the survey then will be worthless.

Kind of data collection

Primary Data

Secondary Data

Primary Data

Primary data is collected very first time for a specific purpose directly from the field of study.

Primary data relating to the training has to be collected through:

# Questionnaires

# Interviews

# Observation


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Secondary Data

Secondary data means the information related to past period. Secondary data has to be collectedthrough:

# Internet

# Newspaper

# Books

# Bank sites

SAMPLING PLAN:

Sample Size = 25 Employees

Sample Area =AXIS BANK LTD, LUDHIANA [PB]

FEROZPUR ROAD LUDHIANA.

Duration = Two (1) Months.


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AREAS OF PRACTICISING PERFORMANCE

APPRASAL IN AXIS BANK

There are two seasons of performance appraisal in Axis bank which are

1) Mid Year Appraisal2) Annual Appraisal

There is some point in appraisal area which is 100%.This 100% its obtain through the followingareas of performance appraisal.

Two areas of performance appraisal.

Services80% e.g. customer care, internet banking

Sales20% e.g. saving Account, general life insurance


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ANALYSIS AND INTERPRETATION

Employees Opinion as to the Purpose of Performance Appraisal

Options Response in (%)

Yes 90

No 10

90%

10%

Yes

No


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Awareness of technique of Performance Appraisal being followed at AXIS BANK among

Employees


Yes 97

No 3

97%

3%

Yes

No


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Number of Employees being appraised during their service period


Yes 98

No 2

23 employees being appraised during the service period

98%

2%

Yes

No


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Employees opinion as to the present appraisal system

Options Responses (in %)

Fully Satisfied 34

Satisfied 44

Cant Say 12

Dissatisfied 10

34

44

1210

0

5

10

15

20

25

30

35

40

45

Fully

Satisfied

Satisfied Cant Say Dissatisfied


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Employee perception as to the frequency of appraisal

Options Response (in %)

Once During TheService Period

10

Continuous 84

Never 0

Cant Say 6

10

84

0 6

0

10

20

30

40

50

60

70

80

90

Once During

The Service

Period

Continuous Never Cant Say


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If continuous appraisalwhat should be the gap between two appraisal period

Options Response (in %)

Quarterly 20

Half Yearly 50

Yearly 30

20

50

30

0

5

10

15

20

25

30

35

40

45

50

Quarterly Half Yearly Yearly


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How Performance Appraisal affects the productivity of the employees

Options Motivated Indifferent Demotivated

+ Feedback 38 12 0

- Feedback 12 10 28

Neutral 24 21 5

12

24

10

21

28

5

0

5

10

15

20

25

30

38 12 0

Motivated Indifferent Demotivated

- Feedback

Neutral


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Who should do the appraisal?

Options Response ( in % )

Superior 4

Peer 0

Subordinate 0

Self Appraisal 8

Consultant 4

All of the above 68

Superior + Peer 16

40 0

84

68

16

0

10

20

30

40

50

60

70

Superior Peer Subordinate Self Appraisal

Consultant All of theabove

Superior +Peer


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.Does appraisal help in polishing skills and performance area


Yes 74

No 10

Somewhat 16

If the process of appraisal does not lead to the improvement of the skills and proficiency of the

employees, the very purpose of appraisal becomes illogical. In the survey conducted it was

observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to

polishing the skills of the employees. Nearly 10 % of the respondents view that it does not serve

this purpose and around 16 % were not able to respond as to whether it serve any such purposes

or not.

74

10

16

Yes

No

Somewhat


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Does personal bias creeps-in while appraising an employee

In the process of appraising, both the parties are human being, that is, the one who is being

apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an

objective way of appraising.

Thus, when asked from among the sample size of 25 respondents, as huge as 82 % respond

ended that personal bias do creep in while appraising an individual. Hence, it is inevitable to say

that personal likings do not come in the process of appraisal. It is the extent to which the

appraiser manages it so that it does not become very partial and bias.

82%

18%

Yes

No


Yes 82

No 18


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70

If given a chance, would employees like to review the current appraisal technique?


Yes 72

No 4

Cant Say 24

72%

4%

24%

Yes

No

Cant Say


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71

Appropriate method of conducting the performance appraisal


Ranking Method 12

Paired Comparison 0

Critical Incidents 20

MBO 58

Assessment Centre 4

360 degree 6

12

0

20

58

46

0

10

20

30

40

50

60

Ranking

Method

Paired

Comparison

Critical

Incidents

MBO Assessment

Centre

360 degree


72/80

72

Does performance appraisal leads to identification of hidden potential


Yes 96

No 4

96%

4%

Yes

No


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INTERPRETATION

In the survey of performance Appraisal practices in AXIS BANK of 25 employees, it was found

that the employees of the bank are satisfied with the performance appraisal followed in the bank.

The method and process of performance appraisal in the banks are satisfactory to the employees.

The performance appraisal also increase and polishing the skills of employees.

The performance appraisal is satisfactory to all the employees in the AXIS BANK


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LIMITATIONS OF THE STUDY

1. The information provided by the workers is not definitely true2. The workers hesitate disclosing the true fact in order to secure their job.3. There is no measure to check out whether the information provided by the employee was

correct or not.

4. Employees are busy so that they are not able to give their best response at a time5. Only limited time was given which was not enough to bring out the real outcomes and

adequate to bring clear nature of behavior of people.


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CONCLUSION

After having analyzed the data, it was observed that practically there was good appraisal in the

organization. According to number of employees being satisfied with the performance appraisal

and most of them there aware about performance appraisal practice in the company.

From survey we came to know that the proper method of performance appraisal and awareness

of performance appraisal practice in company. The performance appraisal is practiced and

followed in proper way and taken as serious by the company to increase the employees

performance, ability and skills.


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SUGGESTIONS

1. The very concept of performance appraisal should be marketed throughout theorganization. Unless this is done, people would not accept it, be it how important to the

organization.

2. To market such a concept, it should not start at bottom; instead it should be started by theinitiative of the top management. This would help in percolating down the concept to the

advantage of all, which includes the top management as well as those below them. This

means that the top management has to take a welcoming and positive approach towards the

change that is intended to be brought.

3. Further, at the time of confirmation also, the appraisal form should not lead to duplicationof any information. Instead, detailed appraisal of the employees work must be done

which must incorporates both the work related as well as the other personal attributes that

are important for work performance.

4. It should be noted that the appraisal form for each job position should be different as eachjob has different knowledge and skill requirements. There should not be a common

appraisal form for every job position in the organization.


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BIBLIOGRAPHY

2. www.axisbank.com3. Internet4. Official site of AXIAS BANK5. Macmillon-Human resource management


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APPENDIX

Performance Appraisal Questionnaire

Name of the Employee ..

Questionnaire

1. Do you understand what the purpose of performance appraisal is?

a) Yes b) No

2. Awareness of performance Appraisal being practice your company?

a) Yes b) No

3. Its there any number of employees being apprised in period of service, How many are they?

a) Yes b) No

4. What is your opinion to present Performance Appraisal?

a) Fully Satisfied b) Satisfied

c) Cant Say d) Dissatisfied

5. Should the appraisal process be:

a) Once during the service period b) Continuous

c) Never d) Cant Say


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6. What in your opinion should be the time period of conducting continuous Appraisal?

a) Quarterly b) Half Yearly c) Yearly

Any specific reason

7. Does Performance Appraisal helps in improving the productivity of the employees?

Motivated Indifferent Demotivated

+ Feedback

- Feedback

Neutral

8. Who in your opinion should appraise the employee?

a) Superior b) Peer

c) Subordinates d) Self Appraisal

e) Consultant f) All of the above

9. Does the appraisal system helps in polishing the skills or performance area?

a) Yes b) No c) Somewhat

10. Do you think personal bias creeps in while appraising an individual?

a) Yes b) No


80/80

11. If given a chance or an opportunity would you like that the current appraisal procedure

should be reviewed?

a) Yes b) No c) Cant Say

12. What according to you should be the appropriate method for conducting performance

appraisal?

a) Rating the employee on number of traits along with the range of performance for

each by the supervisor. (Ranking method)

b) For every trait, each subordinate is paired with and compared to every

other Subordinate. (Pair comparison)

c) Reviewing employees on the basis of identified specific examples of good or poor

performance. (Critical incident)

d) Setting specific measurable goals with each employee and periodically reviewing the

progress made. (MBO)

e) Reviewing performance through case studies, presentations, role playing, etc. For

future performance. (Assessment center)

f) Receiving feedback from people whose views are considered helpful and relevant

including the appraise himself. (360)

13. Does Performance Appraisal leads to identification of hidden potential of the employees?

a) Yes b) No

Axis Bank Appraisal

Documents

Transcript of Axis Bank Appraisal