INTRODUCTION OF HRM

Human Resource Management (HRM) is a relatively new approach to managing people in any organization. People are considered the key resource in this approach. it is concerned with the people dimension in management of an organization. Since an organization is a body of people, their acquisition, development of skills, motivation for higher levels of attainments, as well as ensuring maintenance of their level of commitment are all

significant activities. These activities fall in the domain of HRM. Human Resource Management is a process, which consists of four main activities, namely, acquisition, development, motivation, as well as maintenance of human resourcesDEFINITION OF HUMAN RESOURCE MANAGEMENT 1. Coleman has defined Human Resource management as the process of determining manpower requirements and the means for meeting those requirements in order to carry out the integrated plan of the organization.

2. Human resource Management is a double-edged weapon. If used properly, it leads to the maximum utilization of human resources, reduces excessive labor turnover and high absenteeism; improves productivity and aids in achieving the objectives of an organization. Faultily used, it leads to disruption in the flow of work, lower production, less job satisfaction, high cost of production and constant headaches for the management personnel.NATURE AND SCOPE OF HUMAN RESOURCE MANAGEMENTThe emergence of human resource management can be attributed to the writings of the human religionists who attached great significance to the human factor.Lawrence Apply remarked, Management is personnel administration. This view is partially true as management is concerned with the efficient and effective use of both human as well as non-human resources. Thus human resource management is only a part of the management process. At the same time, it must be recognized that human resource management is inherent in the process of management. This function is performed by all the managersBasic to all Functional Areas: Human Resource Management permeates all the functional area of management such as production management, financial management, and marketing management. That is every manager from top to bottom, working in any department has to perform the personnel functionsContinuous Process: Human Resource Management is not a one shot function. It must be performed continuously if the organizational objectives are to be achieved smoothlyOBJECTIVES OF HUMAN RESOURCE MANAGEMENTAccording to Scott, Clothier and Spiegel, The objectives of Human Resource Management are:(i) To ensure effective utilization of human resources, all other organizational resources will be efficiently utilized by the human resources.

(ii) To establish and maintain an adequate organizational structure of relationship among all the members of an organization by dividing of organization tasks into functions, positions and jobs, and by defining clearly the responsibility, accountability, authority for each job and its relation with other jobs in the organization.

(iii) To generate maximum development of human resources within the organization by offering opportunities for advancement to employees through training and education.

(iv) To ensure respect for human beings by providing various services and welfare facilities to the personnel.

(v) To ensure reconciliation of individual/group goals with those of the organization in such a manner that the personnel feel a sense of commitment and loyalty towards it. 1.5 ROLE AND IMPORTANCE OF HUMAN RESOURCE MANAGEMENT

Human Resource Management has a place of great importance. According to Peter F. Drucker, The proper or improper use of the different factors of production depends on the wishes of the human resources. Hence, besides other resources human resources need more development. Human resources can increase cooperation but it needs proper and efficient management to guide it.

Importance of personnel management is in reality the importance of labor functions of personnel department which are indispensable to the management activity itself. Because of the following reasons human resource management holds a place of importance.1. It helps management in the preparation adoption and continuing evolution of personnel programmers and policies.

2. It supplies skilled workers through scientific selection process.

3. It ensures maximum benefit out of the expenditure on training and development and appreciates the human assets.

4. It prepares workers according to the changing needs of industry and environment1.6 Performance Appraisal DefinitionPerformance appraisal is directed toward two fundamental goals: to create a measure that accurately assesses the level of an individual's job performance and to create an evaluation system that will advance one or more operational functions in an organization. Although all performance appraisal systems encompass both goals, they are reflected differently in two major research orientations, one that grows out of the measurement tradition, the other from human resources management and other fields that focus on the organizational purposes of performance appraisal.1.7 Objectives of Performance AppraisalThe main objective of performance appraisals is to measure and improve the performance of employees and increase their future potential and value to the company.1. Providing Feedback.Providing feedback is the most common rustication for an organization to have a performance appraisal system.2. Encouraging Performance Improvement.How can anyone improve if he doesnt know how hes doing right now? A good performance appraisal points out areas where individuals need to improve their performance.3. Setting and Measuring Goals.Goal setting has consistently been demonstrated as a management process that generates superior performance. The performance appraisal process is commonly used to make sure that every member of the organization sets and achieves effective goals.1.8 Needs of Performance Appraisal.(1) Provide information about the performance ranks basing on which decisionregarding salary fixation, confirmation, promotion, transfer and demotionare taken.(2) Provide feedback information about the level of achievement and behaviorof subordinate. This information helps to review the performance of thesubordinate, rectifying performance deficiencies and to set new standardsof work, if necessary.(3) Provide information which helps to counsel the subordinate.(4) Provide information to diagnose deficiency in employee regarding skill,knowledge, determine training and development needs and to prescribe themeans for employee growth provides information for correcting placement.(5) To prevent grievances and in disciplinary activities. Advertisements

1.9 NATURE AND SCOPENature and scope of any performance appraisal should include the following: provide employees with a better understanding of their role and responsibilities; increase confidence through recognizing strengths while identifying training needs to improve weaknesses; improve working relationships and communication between supervisors and subordinates; increase commitment to organizational goals; develop employees into future supervisors; assist in personnel decisions such as promotions or allocating rewards; and allow time for self-reflection, self-appraisal and personal goal setting.1.10 IMPORTANCE OF PERFORMANCE APPRAISAL1.Performance appraisal helps supervisors to assess the work performance of their subordinates.

2.Performance appraisal helps to assess the training anddevelopmentneeds of employees.

3. Performance appraisal provides grounds for employees to correct their mistakes, and it also provides proper guidance and criticism for employee'sdevelopment.

4.Performance appraisal provides reward for better performance.

5. Performance appraisal helps to improve the communication system of the organization

1.11 Advantages of performance appraisals:

They provide a document of employee performance over a specific period of time.

They provide a structure where a manager can meet and discuss performance with an employee.

They allow a manager the opportunity to providethe employee with feedback about their performance and discuss how well theemployeegoalswere accomplished.

They provide a structured process for an employee to clarify expectations and discuss issues with their manager.

OBJECTIVES OF THE STUDY:To identify the actual performance of the employees and performance standards used in performance appraisal program (opinion, satisfaction, benefit, outcome, etc.).

To create and maintain a satisfactory level of performance.

To identify the awareness level of performance appraisal technique among the employees.

To identify the strength and weakness of employee to place right men on right job.

To maintain and assess the potential present in a person for further growth and development.

To provide feedback to employees regarding their performance and related status.

SCOPE OF THE STUDY:

This study provide appraisal feedback to employees and thereby serve as vehicles for personal and career

development and allow the management to take effective decision against drawbacks for the well being of the employees development.

To improve employee work performance by helping them realize and use their full potential in carrying out their firms mission. The main aim of the study is to find out the effectiveness of performance appraisal & development programmed conducted at Wipro Infrastructure Engineering.

NEED OF THE STUDY: To ensure organizational effectiveness through correcting the employee for standard and improved

Performance and suggesting the changes in employee behavior.

It provides information about the performance ranks.

To provide information this helps to counsel the subordinates.

To facilitate fair and equitable compensation based on performanceLIMITATION OF THE STUDY: This study is only limited to HDFC Bank pvt ltd.

Some of the respondents were afraid to give true information in some cases.

There may be bias on the part of employees while answering to the questions.

The sample size of the study is limited to some extent not the entire employees of the organization.

COMPANY PROFILE

2.1 COMPANY INTRODUCTION

HDFC Bank Limited

"We understand your world"

TypePublic

TradedasBSE:500180NSE:HDFCBANKNYSE:HDBBSE SENSEX ConstituentCNX Nifty Constituent

IndustryBanking,Financial services

FoundedAugust 1994

HeadquartersMumbai,MaharashtraIndia

Key peopleAditya Puri(MD)[1]

WebsiteHDFCBank.com

2.1 OVERVIEW OF HDFC COMPANY

HDFC Bank Limitedis an Indian banking andfinancial servicescompany headquartered inMumbai, Maharashtra. It is the fifth largest bank in India by assets, incorporated in 1994. It is the largest private sector bankmarket capitalization HYPERLINK "http://en.wikipedia.org/wiki/HDFC_Bank" \l "cite_note-8"

in India byas of 24 February 2014. As on Jan 2 2014, the market cap value of HDFC was around US$26.88 billion, as compared toCredit Suisse Groupwith US$47.63 billion. The bank was promoted by theHousing Development Finance Corporation, a premier housing finance company (set up in 1977) of IndiaAccording to theBrand Trust Report2014, HDFC was ranked 32nd among India's most trusted brands.

As of 31 March 2013, the bank had assets of INR 4.08trillion. For the fiscal year 2012-13, the bank has reported net profit of INR 69billion, up 31% from the previous fiscal year. Its customer base stood at 28.7millioncustomers on 31 March 2013

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBIs liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995.

2.2 ACHIEVEMENTS OF HDFC BANKIn the banking sector, HDFC Bank has one of the lowest cost of funds in India and disciplined growth strategy. It maintains a healthy asset quality and seeks to consistently match revenues with growth and profits. The banks business momentum remained brisk and competitive in both its retail and wholesale customer franchises.

As at 31st March 2008, the Banks distribution network was well spread with 761branches and 1977 ATMs in 327 cities as against 684 branches and 1605 ATMs in 320 cities as at 31st March 2007. Portfolio quality as of March 2008 remained worthy of emulation with net non-performing assets at 0.4% well below the industry average.

In July 2007, the bank made a public offeringof 6,594,504 American Depositary Shares (ADS).The net proceeds from this issue was Rs. 2393.9 crore (US$ 598.50 million).The Banks Capital Adequacy Ratio (CAR) was 13.6% against the regulatory minimum of 9%. Tier I CAR was at 10.3% as against 8.6% as at 31st March 2007 (Source: internal data).2.3 AWARDS AND REWARDS OF THE COMPANYOutlook Money award 2013Best Bank in Large Banks Category

IBA Innovation AwardsMost Innovative Use of Technology

Asia Money 2013Best Domestic Bank in IndiaMr. Aditya Puri: Best Executive in India

MACCIA Awards 2013Best in Financial Services: Bank Category

Skoch Financial Inclusion Awards 2013Organization of the Year

Guinness World RecordFor The Annual Blood Donation Drive

IBA Banking Technology Awards 2011Best Online BankBest Use of Business IntelligenceBest Customer Relationship InitiativeBest Risk Management & Security InitiativeBest Use of Mobility Technology in Banking

2.4 MISSION AND VISION OF HDFC BANK

MISSION

Our mission is to be "a World Class Indian Bank", benchmarking ourselves against international standards and best practices in terms of product offerings, technology, service levels, risk management and audit & compliance. Increase our market share in Indias expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service. Continue to develop products and services that reduce our cost of funds Focus on high earnings growth with low volatilityVISION To be customer driven best managed enterprise that enjoys market leadership in providing housing related finance.Our vision and values that we observe at work

1. Excellence

2. People Engagement

3. Integrity

4. Customer Centricity

5. Collaboration

THEORETICAL STRAM WORK3.1 DEFINITION OF PERFORMANCE APPRAISAL

A performance appraisal needs to be a series of constructive, developmental discussions, between line managers and their reports. They should focus on helping people to realize their potential. To be effective, appraisals need to be aseriesof conversations that culminate in the performance appraisal review. Its much more effective (and easier) to appraise performance by regular meetings to discuss progress and provide support, rather than to wait for a single, annual appraisal meeting.3.2 THEORIES OF PERFORMANCE APPRAISALPerformance management is a concept in the field of human resource management. Performance management is a continuous process of identifying, measuring and developing the performance of individuals and aligning performance with the strategic goals of the organization (Aguinis, 2009). Performance management is many times mistaken as performance appraisal but the latter is just a part of the former.1. Setting of objectives.

2. Measuring the performance.

3. Feedback of performance results.

4. Reward system based on performance outcomes

5. And amendments to objectives and activities (Mabey et al, 1999).

3.3 TECHNIQUES OF PERFORMANCE APPRAISAL SYSTEMThe six stepsin performing evaluations1.Establish performance standards for each position and criteria for evaluationIn setting objectives to be followed by the employee to be evaluated, the following Principles are to be met. Specific. Measurable Achievable(occasionallyagreedbetweenthelinemanager&employee Result orientate in a company. Times framed (with a set date forcompetition)3.4 METHODS OF PERFORMANCE APPRAISALThere are twotypestraditional methods and modern methodsTRADITIONAL METHODS:Individual evaluation methods:

Individual evaluation methods are those techniques when the standards ofperformance aredefined individually, without references toother person.GRAPHIC RATING SCALE:Is the oldest & still most used method of evaluation? In case the case the rate is presented with A set of traits & is asked to rate the Employeeoneachit.Therearecertainadvantagesinusing methods

3.5 360 DEGREES APPRAISAL: Nowadays various tools are available for evaluating employee performance. Some organizations have even taken to 360 degree evaluation techniques.

Till such time managing human resources gives way to Human Resource Management in banks, performance management systems including 360 degree evaluation techniques shall remain a distant dream.

If only banks are to tweak the performance appraisal systems they have to make it a more meaningful one thereby contributing to the development of the individual and the organisation as a whole, they will be taking a giant step forward. It is in this context that one should look at revamping the performance appraisal systems in public sector banks.

As a first step of course, one should be clear as to what purposes it should serve.

In general a performance appraisal system should serve as a tool for work- performance judgemental and provide a basis for reward allocation (none at present in public sector banks), promotions, transfers, lay-offs etc.

It should help the organisations to identify high potential employees developmental, fostering work improvement, identifying training and development opportunities and develop ways to overcome obstacles and barriers.

It should help the organisations to identify high potential employees developmental, fostering work improvement, identifying training and development opportunities and develop ways to overcome obstacles and barriers.

It should provide for a two-way communication between the employee and the supervisor and help diagnose strengths and weaknesses thereby enabling a development plan for improving job performance.

3.6 ADVANTAGES OF PERFORMANCE APPRAISAL:

Performance appraisal system can be put to several uses converting the entire spectrum of human resource function in the organization. The uses which performance appraisal serves are:

To take decision on termination.

Diagnosing individual and organizational problem.

To identify individuals with high potential.

Systematic efforts to tone up performance results, corrective actions and appropriate feedback.

Input for an array of professional decision such as placement, promotion, transfer, and reward.

DATA ANALYSIS AND INTERPRETATION1. Are you aware about the organization performance appraisal system?

a) YES b) NO

opinion

No. of respondentspercentage

yes50100

no00

total50100

INTERPRETATION: From the above it is evident that 100% of the employees feel that performance appraisal is quit essential for any organization.

2.Do0 you think that performance appraisal is essential?

a) YES b) NO

OPINIONNO.OF RESPONDENTSPERCENTAGE

YES 4896

NO 24

TOTAL50100

INTERPRETATION: From the above data it is evident that 96% of the respondents feel that performance appraisal is very essential in the organization; where as 45 employees feel it is not essential in organization.

3. Does appraisal system of your organization facilities career growth & learning?

a) YES b) NO

OPINION

NO.OF RESPONDENTPERCENTAGE

YES4284

NO816

TOTAL50100

INTERPRETATION: From the above data it shows that 84% of employees feel that organization facilitate growth & learning due to performance appraisal, where as 16% of employees feel that organization does not provides growth & learning of employees.

4. Performance appraisal system really assesses the quality of an employee.

Do you agree?

a) YES b) NO

OPINIONNO.OF RESPONDENTSPERCENTAGE

YES4692

NO48

TOTAL50100

INTERPRETATION: From the above data it is evident that 92% of the employees feel that the performance appraisal system really assesses the quality of an employee, where as 85 feel that it does not assesses the quality of an employee.

5. Periodicity of performance appraisal should be on a) Quarterly basis b) Half-yearly basis c) Annual basis

INTERPRETATION: From the above data it is evident that 60%of the employees feel that performance appraisal should be done on annual basis & 24% of the employees feel should be in done on half yearly basis 165 of the employees feel should be done in quarterly basisQuestionnaire for a study on Performance Appraisal System:1. Do you think that Performance Appraisal is essential?

a) Yes b) No

2. Performance Appraisal System really assesses the quality of an employee. Do you agree?

a) Yes b) No

3. Periodicity of Performance Appraisal should be on

a) Quarterly b) Half-yearly basis

c) Annual basis

4. The present Performance Appraisal of your organization

Distinguishes the performer & non performers?

a) Strongly agree b) Agree

c) Disagree d) strongly disagree

5. The Periodical Performance Appraisal of employee is required for

Maintaining efficiency of individual & organization?

a) Yes b) No

FINDINGS AND SUGGESTIONS It has been found that most of the employees think that the performance appraisal is essential and they think it is used as a tool to improve performance, to determine organization needs, and to basis for pay increase, promotions, and transfer. The appraisal system facilitates growth & learning of employees and it is used to distinguish performers.

The existing appraisal system helps the management to identify potentiality of employees as well as useful for maintaining efficiency of the individual & organization.

The performance appraisal supports to experiment with new ideas as basis for promotion.

The short coming of employees should be informed to them after performance appraisal.

Promotion should be based on performance rather than seniority or any other factors.

Performance appraisal should be appraised by granting awards/ merit certificate.

New performance appraisal techniques such as 360 degree performance appraisal system should be used.

The performance appraisal should not be assessed by biased mind and personal grudge.

Feedback should not be given to the employees more frequently.

ConclusionIt Was Found That Indian Banks Are Not Sound As Far As Their Financial Health Is Concerned. This Is Because All The Sample Indian Commercial Banks Were Rated 3 On The Camel Scale. Even The State Bank Of India And The IciciBank, The Largest Bank In The Public Sector And The Private Sector Respectively, Were Also Rated 3. However, The New Generation Private Sector Banks Like The Axis Bank, Hdfc Bank, Icici Bank And Kotak Mahindra Bank Each Had Elevated Themselves To A Rating Of Above 3 At Least In One Financial Year (Over The Seven Year Period Of Study) But Were Not Successful In Retaining This Position And Eventually Reverted To A Rating Of 3 In The Very Next Financial Year Itself. On The Other Hand Amongst The Public Sector Banks, Idbi Bank In The Very First Year Of Its Transformation As A Bank Showed A Positive Sign With A Rating Of Above 3 (It 180 Was In Between 2 And 3) In The Fy 2004-05. However, Similar To The Other Private Sector Banks, This Public Sector Banks Camel Rating Had Also Degraded To 3 In Subsequent Years.

However, in order to have a strong financial system that would be capable of supporting the countrys economic growth, we need more banks to move higher up the CAMEL scale. Although the composite score on the positioning scale of the sample banks were somewhat satisfactory, with all the banks having a score of above 3.5, but the CAMEL rating of 3 of all the sample banks is a matter of concern. Banks with a rating of 3 do exhibit some degree of supervisory concern. This is because, such banks fall under fair category and have weaknesses, which if left unmonitored, may result in failure of banks or even led to degradation to 181 group 4 or 5. Therefore, Indian commercial banks do need some degree of monitoring so that they do not fail.biblIography Essential of HRM and Industrial Relations- P. Subba Rao. Robert Bascal Performance Management to help Companies, Improve their Performance Management Systems. CH. Paramananda, Article on Performance Management.websites:

www.hdfc.com

http://www.moneycontrol.com/www.hdfc.netwww.hr-guide.com _1313165033.xls

_1480520608.xls

_1480521046.xls

_1313174246.xls

_1313164189.xls