Shelly Walia

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Research Report

ON

A Comparative Study of the Performance Appraisal System

of Public Vs Private sector Banks

(Submitted in partial fulfillment of the requirement of Master of Business Administration

(MBA), Kurukshetra Unversity, Kurukshetra)

Paper Code: CP!"#

Research Supervisor: Submitted By:

Mr. SA!"# $U%&A S!' *A"A

MBA + &! S'M'S&'-

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%&C.ARA('ON

" Shelly *alia is 0oin0 to submit the pro1e2t report on 3A Comparative study off

Performance Appraisal system of Public VS Private sector Banks4 2ondu2ted at various

%ubli2 and %rivate se2tor Banks. ", hereby de2lare that this is an ori0inal 5ork 2ompiled and

2ompleted by me in the partial fulfillment of the Masters 6e0ree in Business Administration

(MBA)

"t has never been prior submitted by any body..

AC3NO4.&%+&$&N(



My sin2ere thanks to $r2 $'&( for his valuable 0uidan2e and providin0 me an opportunity

to do this pro1e2t *ithout his assistan2e this pro1e2t 5ould not have 2ompleted. &his pro1e2t

5as a 0reat sour2e of learnin0 and as it has made me a5are of the 5ay in 5hi2h various

methods bein0 used in the "ndian Bankin0 "ndustry.

" e7press my deep sense of 0ratitude 2

" am e7tremely 0rateful to my faculty 5uide for the pro1e2t, 5ho despite his busy s2hedule,

5as al5ays there to 0uide me.

" am also obli0ed by my fello5 friends 5ho helped me and provided assistan2e 5ith all

relevant information and details required for smoothen fun2tionin0 5ithout 5hi2h this pro1e2t

2ould not have been a su22ess.

%-'8A'



-esear2h %ro1e2t is the brid0e for a student that takes him from his theoreti2al kno5led0e

5orld to pra2ti2al industry 5orld. &he main purpose of it is to e7pose for industrial and

business environment, 5hi2h 2annot be possible in the 2lassroom.

&he advanta0es of this sort of inte0ration, 5hi2h promotes 0uided to 2orporate 2ulture,

fun2tional, so2ial and norms alon0 5ith formal tea2hin0 are numerous.

9) &o brid0e the 0ap bet5een theory and pra2ti2al.

:) &o install the feelin0 of belon0in0ness and a22eptan2e.

;) &o help the student to develop the better understandin0 of the 2on2ept and questions

already raised or to be raised subsequently durin0 their resear2h period.

&he present report 0ives a detailed vie5 of the 6A Comparative Study of the Performance

Appraisal System of Public Vs Private sector Banks



EXECUTIVE SUMMARY

Performance Appraisal

%erforman2e appraisal (or evaluation) is the !-M a2tivity used to determine the e7tent on

5hi2h the employees are performin0 the 1ob effe2tively. %erforman2e appraisal 2an be either

< 'nformal, 5hen supervisors think about ho5 5ell the employees are doin0 and

< 8ormal, 5hen there is a system set up by the or0ani=ation to re0ularly and systemati2ally

evaluate employee performan2e. "n the follo5in0 5e are referrin0 to formal performan2e

appraisal.

TABLE OF CONTENT



C-AP(&R 7 '

'N(RO)%C('ON

'N(RO%)C('ON (O (-& (OP'C



Performance Appraisal

%erforman2e appraisal (or evaluation) is the !-M a2tivity used to determine the e7tent on

5hi2h the employees are performin0 the 1ob effe2tively. %erforman2e appraisal 2an be either

< 'nformal, 5hen supervisors think about ho5 5ell the employees are doin0 and

8 *ormal, 5hen there is a system set up by the or0ani=ation to re0ularly and systemati2ally

evaluate employee performan2e. "n the follo5in0 5e are referrin0 to formal

performan2e appraisal.

4hy usin5 performance appraisal

< 6evelopmental purposes> it helps to 2larify the ne2essity and the effe2tiveness of the

trainin0 pro0rams?

< -e5ard purposes> helps in determinin0 5ho should re2eive re5ards and 5ho should be laid

off?

< Motivational purposes> stimulates effort to perform better?

< e0al 2omplian2e> it provides le0ally defensible reason for makin0 promotion, transfer,

re5ard and dis2har0e de2isions?

< !uman resour2e and employee plannin0 purposes> it serves as a valuable input to skills

inventories and human resour2e plannin0?

< ompensation> helps to identify 5hat to pay and 5hat 5ill serve as an equitable monetary

pa2ka0e?

< ommuni2ation purposes> the rater and ratee 0et to kno5 ea2h other throu0h

2ommuni2ation?

< !-M resear2h purposes> it 2an be used to validate sele2tion tools, su2h as a testin0

pro0ram.



%erforman2e appraisals are also effe2tive and useful durin0 the be0innin0 period of

employment at set intervals or 5hen an employee 2han0es 1ob duties. Su00ested time

periods in2lude three and si7 month appraisals durin0 this time the employee is

learnin0 the e7pe2tations of the 1ob and the 2ompany.

Approaches to Performance Appraisals

&here have been t5o prevalent approa2hes to performan2e appraisal. &he first approa2h has

been the traditional approa2h. &his approa2h has also been kno5n as the or0ani=ational or

overall approa2h. &he traditional approa2h has been primarily 2on2erned 5ith the overall

or0ani=ation and has been involved 5ith past performan2e.

&he se2ond approa2h to performan2e appraisal has been the developmental approa2h. &his

approa2h vie5ed the employees as individuals and has been for5ard lookin0 throu0h the use

of 0oal settin0.

'N(RO%)C('ON ABO)( (-& PRO9&C(



-istory of Performance Appraisal:

&he history of performan2e appraisal is quite brief. "ts roots in the early :@th 2entury 2an be

tra2ed to &aylors pioneerin0 &ime and Motion studies. But this is not very helpful, for the

same may be said about almost everythin0 in the field of modern human resour2es

mana0ement

.

As a distin2t and formal mana0ement pro2edure used in the evaluation of 5ork performan2e,

appraisal really dates from the time of the Se2ond *orld *ar not more than C@ years a0o.

et in a broader sense, the pra2ti2e of appraisal is a very an2ient art. "n the s2ale of thin0s

histori2al, it mi0ht 5ell lay 2laim to bein0 the 5orlds se2ond oldest professionD

&he human in2lination to 1ud0e 2an 2reate serious motivational, ethi2al and le0al problems in

the 5orkpla2e. *ithout a stru2tured appraisal system, there is little 2han2e of ensurin0 that

the 1ud0ments made 5ill be la5ful, fair, defensible and a22urate.

%erforman2e appraisal systems be0an as simple methods of in2ome 1ustifi2ation. &hat is,

appraisal 5as used to de2ide 5hether or not the salary or 5a0e of an individual employee

5as 1ustified.

&he pro2ess 5as firmly linked to material out2omes. "f an employees performan2e 5as found

to be less than ideal, a 2ut in pay 5ould follo5. n the other hand, if their Sometimes this

basi2 system su22eeded in 0ettin0 the results that 5ere intended? but more often than not, it

failed.

8or e7ample, early motivational resear2hers 5ere a5are that different people 5ith rou0hly

equal 5ork abilities 2ould be paid the same amount of money and yet have quite different

levels of motivation and performan2e.

As a result, the traditional emphasis on re5ard out2omes 5as pro0ressively re1e2ted. "n the

9EF@s in the United States, the potential usefulness of appraisal as tool for motivation and



development 5as 0radually re2o0ni=ed. &he 0eneral model of performan2e appraisal, as it is

kno5n today, be0an from that time.

6Performance appraisal is a re5ular revie of employee performance

ithin or5ani;ations<2

8irst, lets be sure about 5hat 5e mean by performan2e appraisal 2 42R2 (racey (9EE9)

defines performan2e appraisal as a =systemati2, periodi2 revie5 and analysis of employees

performan2e. "ts important to be 2lear about ho5 performan2e appraisal differs from

performan2e mana0ement, i.e., Ga means of maintainin0 and improvin0 5ork

behaviour...daily, yearround...

'ntroduction about the Bankin5 Sector of 'ndia

-istory of Bankin5 'n 'ndia

*ithout a sound and effe2tive bankin0 system in "ndia it 2annot have a healthy e2onomy. &he

bankin0 system of "ndia should not only be hassle free but it should be able to meet ne5

2hallen0es posed by the te2hnolo0y and any other e7ternal and internal fa2tors.

8or the past three de2ades "ndias bankin0 system has several outstandin0 a2hievements to its

2redit. &he most strikin0 is its e7tensive rea2h. "t is no lon0er 2onfined to only metropolitans

or 2osmopolitans in "ndia. "n fa2t, "ndian bankin0 system has rea2hed even to the remote

2orners of the 2ountry. &his is one of the main reason of "ndias 0ro5th pro2ess.

&he 0overnments re0ular poli2y for "ndian bank sin2e 9ECE has paid ri2h dividends 5ith the

nationali=ation of 9 ma1or private banks of "ndia.

#ot lon0 a0o, an a22ount holder had to 5ait for hours at the bank 2ounters for 0ettin0 a draft

or for 5ithdra5in0 his o5n money. &oday, he has a 2hoi2e. $one are days 5hen the most

effi2ient bank transferred money from one bran2h to other in t5o days. #o5 it is simple as

instant messa0in0 or dial a pi==a. Money have be2ome the order of the day.



&he first bank in "ndia, thou0h 2onservative, 5as established in 9HIC. 8rom 9HIC till today,

the 1ourney of "ndian Bankin0 System 2an be se0re0ated into three distin2t phases. &hey are

as mentioned belo5>

• 'arly phase from 9HIC to 9ECE of "ndian Banks

•

#ationalisation of "ndian Banks and up to 9EE9 prior to "ndian bankin0 se2tor-eforms.

• #e5 phase of "ndian Bankin0 System 5ith the advent of "ndian 8inan2ial J Bankin0

Se2tor -eforms after 9EE9.

&o make this 5riteup more e7planatory, " prefi7 the s2enario as %hase ", %hase "" and %hase

""".

Phase '2

&he $eneral Bank of "ndia 5as set up in the year 9HIC. #e7t 2ame Bank of !industan and

Ben0al Bank. &he 'ast "ndia ompany established Bank of Ben0al (9I@E), Bank of Bombay

(9I@) and Bank of Madras (9I;) as independent units and 2alled it %residen2y Banks.

&hese three banks 5ere amal0amated in 9E:@ and "mperial Bank of "ndia 5as established

5hi2h started as private shareholders banks, mostly 'uropeans shareholders.

"n 9ICF Allahabad Bank 5as established and first time e72lusively by "ndians, %un1ab

#ational Bank td. 5as set up in 9IE 5ith headquarters at ahore. Bet5een 9E@C and 9E9;,

Bank of "ndia, entral Bank of "ndia, Bank of Baroda, anara Bank, "ndian Bank, and Bank

of Mysore 5ere set up. -eserve Bank of "ndia 2ame in 9E;F.

6urin0 the first phase the 0ro5th 5as very slo5 and banks also e7perien2ed periodi2 failures

bet5een 9E9; and 9EI. &here 5ere appro7imately 99@@ banks, mostly small. &o streamline

the fun2tionin0 and a2tivities of 2ommer2ial banks, the $overnment of "ndia 2ame up 5ith

&he Bankin0 ompanies A2t, 9EE 5hi2h 5as later 2han0ed to Bankin0 -e0ulation A2t 9EE

as per amendin0 A2t of 9ECF (A2t #o. :; of 9ECF). -eserve Bank of "ndia 5as vested 5ith

e7tensive po5ers for the supervision of bankin0 in india as the entral Bankin0 Authority



Phase ''2

$overnment took ma1or steps in this "ndian Bankin0 Se2tor -eform after independen2e. "n

9EFF, it nationali=ed "mperial Bank of "ndia 5ith e7tensive bankin0 fa2ilities on a lar0e s2ale

spe2ially in rural and semiurban areas. "t formed State Bank of india to a2t as the prin2ipal

a0ent of -B" and to handle bankin0 transa2tions of the Union and State $overnments all over the 2ountry.

Seven banks formin0 subsidiary of State Bank of "ndia 5as nationali=ed in 9EC@ on 9Eth

uly, 9ECE, ma1or pro2ess of nationalisation 5as 2arried out. "t 5as the effort of the then

%rime Minister of "ndia, Mrs. "ndira $andhi. 9 ma1or 2ommer2ial banks in the 2ountry 5as

nationali=ed.

Se2ond phase of nationali=ation "ndian Bankin0 Se2tor -eform 5as 2arried out in 9EI@ 5ith

seven more banks. &his step brou0ht I@L of the bankin0 se0ment in "ndia under $overnment

o5nership.

&he follo5in0 are the steps taken by the $overnment of "ndia to -e0ulate Bankin0

"nstitutions in the ountry>

• 9EE > 'na2tment of Bankin0 -e0ulation A2t.

• 9EFF > #ationali=ation of State Bank of "ndia.

• 9EFE > #ationali=ation of SB" subsidiaries.

• 9EC9 > "nsuran2e 2over e7tended to deposits.

• 9ECE > #ationali=ation of 9 ma1or banks.

• 9EH9 > reation of 2redit 0uarantee 2orporation.

• 9EHF > reation of re0ional rural banks.

• 9EI@ > #ationali=ation of seven banks 5ith deposits over :@@ 2rore.



After the nationali=ation of banks, the bran2hes of the publi2 se2tor bank "ndia rose to

appro7imately I@@L in deposits and advan2es took a hu0e 1ump by 99,@@@L.

Bankin0 in the sunshine of $overnment o5nership 0ave the publi2 impli2it faith and

immense 2onfiden2e about the sustainability of these institutions.

Phase '''2

&his phase has introdu2ed many more produ2ts and fa2ilities in the bankin0 se2tor in its

reforms measure. "n 9EE9, under the 2hairmanship of M #arasimham, a 2ommittee 5as set

up by his name 5hi2h 5orked for the liberalisation of bankin0 pra2ti2es.

&he finan2ial system of "ndia has sho5n a 0reat deal of resilien2e. "t is sheltered from any2risis tri00ered by any e7ternal ma2roe2onomi2s sho2k as other 'ast Asian ountries

suffered. &his is all due to a fle7ible e72han0e rate re0ime, the forei0n reserves are hi0h, the

2apital a22ount is not yet fully 2onvertible, and banks and their 2ustomers have limited

forei0n e72han0e e7posure.

Bankin5 'ndustry as of no

&he use of te2hnolo0y has pla2ed "ndian banks at par 5ith their 0lobal peers. "t has also

2han0ed the 5ay bankin0 is done in "ndia. Any5here bankin0N and Anytime bankin0N have

be2ome a reality. &he finan2ial se2tor no5 operates in a more 2ompetitive environment than

before and intermediates relatively lar0e volume of international finan2ial flo5s and so

0ivin0 rise to ne trends n 5roth.

Ne (rends

&he "ndian bankin0 industry is 2urrently in a transition phase. n the one hand, the publi2

se2tor banks, 5hi2h are the mainstay of the "ndian bankin0 system, are in the pro2ess of

2onsolidatin0 their position by 2apitalisin0 on the stren0th of their hu0e net5orks and



2ustomer bases. n the other, the private se2tor banks are venturin0 into a 5hole ne5 0ame

of mer0ers and a2quisitions to e7pand their bases.

&he system is slo5ly movin0 from a re0ime of 3lar0e number of small banks4 to 3small

number of lar0e banks.4 &he ne5 era 5ill be one of 2onsolidation around identified 2ore

2ompeten2ies.

"n "ndia, one of the lar0est finan2ial institutions, """, took the lead to5ards universal

bankin0 5ith its reverse mer0er 5ith """ Bank a 2ouple of years a0o. Another me0a

finan2ial institution, "6B", has also adopted the same strate0y and has already transformed

itself into a universal bank. &his trend may lead to promotin0 the 2on2ept of a finan2ial super

market 2hain, makin0 available all types of 2redit and nonfund fa2ilities under one roof or

spe2ialised subsidiaries under one umbrella or0ani=ation.

+roth statistics

S2heduled ommer2ial Banks (SBs) in "ndia are 2ate0orised into five different 0roups

a22ordin0 to their o5nership and O or nature of operation. &hese bank 0roups are (i) State

Bank of "ndia and its asso2iates (ii) other nationalised banks (iii) re0ional rural banks(iv)

forei0n banks and (v) other "ndian SBs (in the private se2tor).

&he bankin0 se2tor 5itnessed stron0 0ro5th in deposits and advan2es durin0 the year :@@

@F. As of Mar2h :@@F, the number of 2ommer2ial banks stood at :IE. &he a00re0ate deposits

of SBs in2reased from USP ;;9 billion in Mar2h :@@ to USP ;H billion in Mar2h :@@F?

2redit in2reased from USP 9IF billion to USP :: billion? and investments s5elled from USP

9E billion to USP 9C: billion.

#et domesti2 2redit in the bankin0 system has 5itnessed a steady in2rease of 9H.F per 2ent

from USP F billion on anuary :9, :@@F to USP F:; billion on anuary :@, :@@C. &he

0ro5th in net domesti2 2redit durin0 the 2urrent finan2ial year up to anuary :@, :@@C 5as

9. per 2ent.

#ationalised banks 5ere the lar0est 2ontributors to total bank 2redit at H.I per 2ent as of

September :@@F. *hile forei0n banks 2ontribution to total bank 2redit 5as lo5 at C.H per



2ent, the 2ontribution of State Bank of "ndia and its asso2iates a22ounted for :;.I per 2ent of

the total bank 2redit. redit e7tended by other SBs stood at 9I.E per 2ent.

Banks and consumer finance

"ndian banks, parti2ularly private banks, are ridin0 hi0h on the retail business. """ Bank

and !68 Bank have 5itnessed over H@ per 2ent yearonyear 0ro5th in retail loan assets in

the se2ond quarter of :@@F@C. Annual revenues in the domesti2 retail bankin0 market are

e7pe2ted to more than double to USP 9C.F billion by :@9@ from about USP C. billion at

present, says a M2Kinsey study.

8orei0n banks are 5orkin0 on e7pandin0 their bases in the 2ountry. &he Ministry of 8inan2e

and -eserve Bank of "ndia have a0reed to allo5 forei0n banks to open :@ bran2hes a year as

a0ainst 9: no5. At present, @ odd forei0n banks have over ::F bran2hes in "ndia. At the end

of :@@@F, the total assets of forei0n banks a00re0ated USP ;@ billion or C.E per 2ent of the

assets of all s2heduled 2ommer2ial banks. &hey 5ill also be allo5ed H per 2ent stake in

private banks. After :@@E, the lo2al subsidiaries of forei0n banks 5ill be treated on par 5ith

domesti2 banks.

&he "ndian Bankin0 industry, 5hi2h is 0overned by the Bankin0 -e0ulation A2t of "ndia,

9EE 2an be broadly 2lassified into t5o ma1or 2ate0ories, nons2heduled banks and s2heduled

banks. S2heduled banks 2omprise 2ommer2ial banks and the 2ooperative banks. "n terms of

o5nership, 2ommer2ial banks 2an be further 0rouped into nationali=ed banks, the State Bank

of "ndia and its 0roup banks, re0ional rural banks and private se2tor banks (the oldO ne5

domesti2 and forei0n). &hese banks have over CH,@@@ bran2hes spread a2ross the 2ountry.

&his report 2overs the industry.

Accordin5 to an analysis on Bankin5 'ndustry in 'ndia>report provides there are #?

Public sector banks> @ Private banks and # *orei5n banks.

&he "ndian bankin0 se2tor is headed for 2onsolidation. &he presen2e of many re0ional

players 5ill see fe5 banks emer0in0 as 0lobal 2ompetitors.



Many banks have also taken steps to provide spe2ialised trainin0 and kno5led0e sharin0

pro0rammes, in2entives for better performan2e evaluated on 2ertain parameters, effi2ient

performan2e appraisal, better promotion opportunities to deservin0 employees and 2reatin0

an enablin0 5orkin0 environment. Some banks are 0ivin0 to youn0 and deservin0 employees

preferen2e in promotion unlike earlier 5hen everybody used to 0et a timebound promotion

irrespe2tive of their performan2e

Public Sector Bank:

Amon0 the %ubli2 Se2tor Banks in "ndia, United Bank of "ndia is one of the 9 ma1or banks

5hi2h 5ere nationalised on uly 9E, 9ECE. "ts prede2essor, in the %ubli2 Se2tor Banks, the

United Bank of "ndia td., 5as formed in 9EF@ 5ith the amal0amation of four banks vi=.

omilla Bankin0 orporation td. (9E9), Ben0al entral Bank td. (9E9I), omilla Union

Bank td. (9E::) and !oo0hly Bank td. (9E;:).

riental Bank of ommer2e (B), a $overnmet of "ndia Undertakin0 offers 6omesti2,

#-" and ommer2ial bankin0 servi2es. B is implementin0 a $-AM''# %-'& in

6ehradun 6istri2t (U%) and !anuman0arh 6istri2t (-aiasthan) disbursin0 small loans. &his

%ubli2 Se2otor Bank "ndia has implemented 9 point a2tion plan for stren0thenin0 of 2redit

delivery to 5omen and has desi0nated F bran2hes as spe2iali=ed bran2hes for 5omen

entrepreneurs

(he folloin5 are the list of Public Sector Banks in 'ndia

• Allahabad Bank

• Qi1ay Bank

• Bank of Baroda

• Bank of "ndia

• Bank of Maharashtra

• entral Bank of "ndia

• orporation Bank

• 6ena Bank

http://finance.indiamart.com/investment_in_india/allahabad_bank.html

http://finance.indiamart.com/investment_in_india/vijaya_bank.html

http://finance.indiamart.com/investment_in_india/bank_of_baroda.html

http://finance.indiamart.com/investment_in_india/bank_of_india.html

http://finance.indiamart.com/investment_in_india/bank_of_maharastra.html

http://finance.indiamart.com/investment_in_india/central_bank_india.html

http://finance.indiamart.com/investment_in_india/corporation_bank.html

http://finance.indiamart.com/investment_in_india/dena_bank.html

http://finance.indiamart.com/investment_in_india/allahabad_bank.html

http://finance.indiamart.com/investment_in_india/vijaya_bank.html

http://finance.indiamart.com/investment_in_india/bank_of_baroda.html

http://finance.indiamart.com/investment_in_india/bank_of_india.html

http://finance.indiamart.com/investment_in_india/bank_of_maharastra.html

http://finance.indiamart.com/investment_in_india/central_bank_india.html

http://finance.indiamart.com/investment_in_india/corporation_bank.html

http://finance.indiamart.com/investment_in_india/dena_bank.html



Need of the Performance Appraisal:

%erforman2e appraisals are essential for the effe2tive mana0ement and evaluation of staff.

Appraisals help develop individuals, improve or0ani=ational performan2e, and feedba2k into

business plannin0. 8ormal performan2e appraisals are 0enerally 2ondu2ted annually for all

staff in the or0ani=ation. 'a2h staff member is appraised by their line mana0er. (6ire2tors are

appraised by the ', 5ho is appraised by the 2hairman or 2ompany o5ners, dependin0 on

the si=e and stru2ture of the or0ani=ation). Annual performan2e appraisals enable

mana0ement and monitorin0 of standards, a0reein0 e7pe2tations and ob1e2tives, and

dele0ation of responsibilities and tasks. Staff performan2e appraisals also establish individual

trainin0 needs and enable or0ani=ational trainin0 needs analysis and plannin0. %erforman2e

appraisals data feeds into or0ani=ational annual pay and 0radin0 revie5s, and 2oin2ides 5ith

the business plannin0 for the ne7t tradin0 year. %erforman2e appraisals 0enerally revie5 ea2h

individuals performan2e a0ainst ob1e2tives and standards for the tradin0 year, a0reed at the

previous appraisal meetin0. %erforman2e appraisals are also essential for 2areer and

su22ession plannin0..

&ffective performance appraisal

Aside from formal traditional (annual, si7monthly, quarterly, or monthly) performan2e

appraisals, there are many different methods of performan2e evaluation. &he use of any of

these methods depends on the purpose of the evaluation, the individual, the assessor, and the

environment.

&he formal annual performan2e appraisal is 0enerally the overridin0 instrument 5hi2h

0athers and revie5s all other performan2e data for the previous year.

%erforman2e appraisals should be positive e7perien2es. &he appraisals pro2ess provides the

platform for development and motivation, so or0ani=ations should foster a feelin0 that

performan2e appraisals are positive opportunities, in order to 0et the best out of the people

and the pro2ess. "n 2ertain or0ani=ations, performan2e appraisals are 5idely re0arded as

somethin0 rather less 5el2omin0 (bollo2kin0 sessions is not an unusual des2ription), 5hi2h



provides a basis only on 5hi2h to develop fear and resentment, so never, never, never use a

staff performan2e appraisal to handle matters of dis2ipline or admonishment, 5hi2h should

instead be handled via separately arran0ed meetin0

P*OR$ANC& APPRA'SA. PROC&SS

&stablishin5 performance Standards:

&he appraisal pro2ess be0ins 5ith the settin0 up of 2riteria to be used for appraisin0 the

performan2e of employees. &he 2riteria is spe2ified 5ith the help of 1ob analysis 5hi2h

reveals the 2ontents a 1ob.

S'&&"#$ %'-8-MA' A%%-A"SA

MMU#"A&"#$ &!' S&A#6A-6S

MEASURING ACTIVE PERFORMANCE

M%A"-"#$ A&UA %'-8-MA#'

6"SUSS"#$ &!' A%%-A"SA -'SU&S

&AK"#$ --'&"Q' A&"#, "8

#''SSA-



Communicatin5 the Standards:

&he performan2e standards spe2ified in the first step are 2ommuni2ated and e7plained to the

employees so that they 2ome to kno5 5hat is e7pe2ted of them. &he standards should be

2onveyed to the evaluator.

$easurin5 Performance:

n2e the performan2e standard are spe2ified and a22epted, the ne7t sta0e is the measurement

of a2tual performan2e. &his requires 2hoosin0 the ri0ht te2hnique of measurement,

identifyin0 the internal and e7ternal fa2torsN influenin0 performan2e and 2olle2tin0

information on results a2hieved.

Comparin5 the Actual ith the Standards

A2tual performan2e is 2ompared 5ith the predetermined performan2e standards. Su2h2omparison 5ill reveal the deviations 5hi2h may be positive or ne0ative.

%iscussin5 the Appraisal:

&he results of the appraisal are 2ommuni2ated to and dis2ussed 5ith the employees. Alon0

5ith the deviations te reasons behind them are also analysed and dis2ussed. Su2h dis2ussion

5ill enable an employee to kno5 his 5eaknesses and stren0ths.

takin5 corrective Actions:

&hrou0h mutual dis2ussions 5ith employees, the steps required to improve performan2e are

identified and initiated. &rainin0 , 2oa2hin0, 2ounselin0, et2. are e7amples of 2orre2tive

a2tions that help to improve performan2e.



Methods of Performance Ara!sa"

&here are mainly t5o methods of appraisin0 the performan2e of the employees. &hey are

' (raditional $ethod

'' $odern method

T#es of Trad!t!ona" Method$

1 +lobal essay and ratin5 system

&his method has t5o variations.

9.) &he first variation of this method involves a mana0er 5ritin0 an essay about 5hat they

2onsider to be an overall assessment of an employees performan2e. "t is important to note

that nothin0 obli0ates the mana0er to 1ustify anythin0 5ithin their assessment.

:.) &he se2ond variation has the mana0er ratin0 the employee usin0 a list of terms su2h as

Gabove avera0e? fair? or poor.G

#1 (rait Ratin5

At the 2enter of this method is a list of personalityO disposition traits to 5hi2h the appraiser

must assi0n a numeri2al ratin0 or a des2riptive ratin0 of ad1e2tives. &raits may in2lude items

su2h as 2ooperation, motivation, fle7ibility, and attitude.

@1Peer rankin5

"n the peer rankin0 approa2h, the mana0er is typi2ally asked to assess the overall

performan2e of an employee by rankin0 them in relation to other employees.

Some attempted to deal 5ith the inherent sub1e2tivity of this method by usin0 a for2ed

rankin0 method, 5hi2h meant distributin0 ratin0s so they 2onformed to a normal distribution

2urve. But as &. %eters (9EIH) points out, this means 2reatin0 a statisti2al imperative to

evaluate a predetermined portion of employees as losers.



@1 @D" %e5ree Appraisal

&ypi2ally, performan2e appraisal has been limited to a feedba2k pro2ess bet5een employees

and supervisors. !o5ever, 5ith the in2reased fo2us on team5ork, employee development,

and

2ustomer servi2e, the emphasis has shifted to employee feedba2k from the full 2ir2le of

sour2es depi2ted in the dia0ram belo5. &his multipleinput approa2h to performan2e

feedba2k is sometimes 2alled ;C@de0ree assessment4 to 2onnote that full 2ir2le.

Peer> 'nternal customer> Subordinate

Self

Peer> &Eternal Customer> Superior

&he 2ir2le, or perhaps more a22urately the sphere, of feedba2k sour2es 2onsists of

supervisors, peers, subordinates, 2ustomers, and oneNs self."t is not ne2essary, or al5ays appropriate, to in2lude all of the feedba2k sour2es in a parti2ular

appraisal pro0ram. &he or0ani=ational 2ulture and mission must be 2onsidered, and the

purpose of feedba2k 5ill differ 5ith ea2h sour2e. 8or e7ample, subordinate assessments of a

supervisorNs performan2e 2an provide valuable developmental 0uidan2e, peer feedba2k 2an

be the heart of e72ellen2e in team5ork, and 2ustomer servi2e feedba2k fo2uses on the quality

of the teamNs or a0en2yNs results. &he ob1e2tives of performan2e appraisal and the parti2ular

aspe2ts of performan2e that are to be assessed must be established before determinin0 5hi2h

sour2es are appropriate.



S O)RC&S:

SUPERIORS

'valuations by superiors are the most traditional sour2e of employee feedba2k.

&his form of evaluation in2ludes both the ratin0s of individuals by supervisors

on elements in an employeeNs performan2e plan and the evaluation of pro0rams and teams by

senior mana0ers.

S ELF%ASSESSMENT

&his form of performan2e information is a2tually quite 2ommon but usuallyused only as an informal part of the supervisoremployee appraisal feedba2k

session. Supervisors frequently open the dis2ussion 5ith> 3!o5 do you feel

you have performed4 "n a some5hat more formal approa2h, supervisors ask employees to

identify the key a22omplishments they feel best represent their performan2e in 2riti2al and

non2riti2al performan2e elements.

"n a ;C@de0ree approa2h, if selfratin0s are 0oin0 to be in2luded, stru2tured forms and

formal pro2edures are re2ommended.

PEERS

*ith do5nsi=in0 and redu2ed hierar2hies in or0ani=ations, as 5ell as the in2reasin0 use of

teams and 0roup a22ountability, peers are often the most relevant evaluators of their

ollea0ueNs performan2e. %eers have a unique perspe2tive on a 2o5orkerNs 1ob performan2e

and employees are 0enerally very re2eptive to the 2on2ept of ratin0 ea2h other. %eer ratin0s

2an be used 5hen the employeeNs e7pertise is kno5n or the performan2e and results 2an be

observed. &here are both si0nifi2ant 2ontributions and serious pitfalls that must be 2arefully

2onsidered before in2ludin0 this type of feedba2k in a multifa2eted appraisal pro0ram



SUBOR&INATES

An up5ardappraisal pro2ess or feedba2k survey (sometimes referred to as a SAM,

for 6Subordinates Appraisin5 $ana5ers<1 is amon0 the most si0nifi2ant and yet

2ontroversial features of a 3full 2ir2le performan2e evaluation pro0ram. Both mana0ers bein0

appraised and their o5n superiors a0ree that subordinates have a unique, often essential,

perspe2tive. &he subordinate ratin0s provide parti2ularly valuable data on performan2e

elements 2on2ernin0 mana0erial and supervisory behaviors. !o5ever, there is usually 0reat

relu2tan2e, even fear, 2on2ernin0 implementation of this ratin0 dimension. n balan2e, the

2ontributions 2an out5ei0h the 2on2erns if the pre2autions noted belo5 are addressed.

CUSTOMERS

"nternal 2ustomers are defined as users of produ2ts or servi2es supplied by another employee

or 0roup 5ithin the a0en2y or or0ani=ation. '7ternal 2ustomers are outside the or0ani=ation

and in2lude, but are not limited to, the 0eneral publi2

Other 'nformal $ethod of appraisin5 Performance:

•

%irect 'ntervie:

!oldin0 re0ular informal onetoone revie5 meetin0s 0reatly redu2es the pressure and time

required for the annual formal appraisal meetin0. !oldin0 informal revie5s every month is

ideal all staff

(here are several benefits of reviein5 freFuently and informally:

9. &he mana0er is better informed and more uptodate 5ith his or her peoples a2tivities

(and more in tou2h 5ith 5hat lies beyond, e.0., 2ustomers, suppliers, 2ompetitors,

markets, et2)

:. 6iffi2ult issues 2an be identified, dis2ussed and resolved qui2kly, before they be2ome

more serious.



;. !elp 2an be 0iven more readily people rarely ask unless they see a 0ood opportunity

to do so the re0ular informal revie5 provides 1ust this.

. Assi0nments, tasks and ob1e2tives 2an be a0reed 2ompleted and revie5ed qui2kly

leavin0 a2tions more than a fe5 5eeks redu2es 2ompletion rates si0nifi2antly for all

but the most senior and e7perien2ed people.

F. b1e2tives, dire2tion, and purpose is more uptodate modern or0ani=ations demand

more fle7ibility than a sin0le annual revie5 allo5s priorities often 2han0e throu0h

the year, so people need to be redire2ted and refo2used.

C. &rainin0 and development a2tions 2an be broken do5n into smaller more di0estible

2hunks, in2reasin0 su22ess rates and motivational effe2t as a result.

O(-&R +)'%&.'N&S *OR OR+AN'GA('ONA. APPRA'SA.S P.ANN'N+

ther than for dire2tors, 2omple7 or diffi2ult appraisals, appraisal meetin0s should not be ;

hour marathon sessions this daft situation happens 5hen boss and subordinate never sit

do5n to0ether onetoone other than for the annual appraisal. "f you only talk properly 5ith

someone on2e a year no 5onder it takes all afternoon...

Boss and subordinate should ideally sit do5n onetoone monthly (or at 5orse, quarterly, for

the more mature, selfsuffi2ient people), to revie5 a2tivity, ideas, performan2e, pro0ress, et2.,

5hi2h makes the annual appraisal really easy 5hen it 2omes around, and mana0eable in an

hour or E@ minutes ma7imum.

Use of a 0ood appraisal form in2ludin0 selfassessment elements is essential for 5ell

or0ani=ed appraisals.

'nsure that appraisers and appraises understand that they must prepare in advan2e or youre

lookin0 at ; hour marathons a0ain.

&rainin0 for appraisers and appraises on ho5 to use the appraisals pro2ess properly is very

helpful obviously, espe2ially takin0 a more modern vie5 of 5hat makes people effe2tive and

valuable to employers, and ho5 to en2oura0e this development, 5hi2h relates to developin0



the 5hole person, in the dire2tion they 5ant to 0o, not 1ust 1ob skills, as e7plained earlier in

this se2tion.

"ndividuals 2an then re2eive an additional in2rease on top of this a22ordin0 to 2riteria a0reed

before the start of the year (at their last appraisal) based on performan2e, a2hievement of

tar0ets, 1ob0rade advan2ement, qualifi2ations attained, trainin0 aims a2hieved, and any other performan2e levers that it is sensible, fair and pra2ti2able to in2entivise.

&he rationale for these individual a5ards must be established and bud0eted for by the board,

2ir2ulated, and e7plained to all staff via mana0ers.

*hilst not al5ays easy or pra2ti2able to desi0n and implement, ar0uably the best 2olle2tive

annual pay in2rease me2hanism is one that effe2tively re5ards everyone dire2tly and

transparently for 2orporate performan2e, ie, profit share in spirit, based on the 5holeor0ani=ation and a business unitOdepartment to 5hi2h they relate, plus an individual

performan2elinked a5ard based on the sort of levers mentioned above. "ts about people

believin0 that they are all part of the 0roup effort, pullin0 to0ether, and all en1oyin0 a share of

the su22ess. %rofit share deals 1ust for dire2tors are ri0htly re0arded by most staff as elitist,

e72lusive, and divisive. "f you 5ant your people to 0ive you 9@@L, in2lude them in as many

re5ard s2hemes as you 2an.

Appraisals and trainin5 plannin5

*here appraisals 2oin2ide 5ith yearend, trainin0 department must not rely e72lusively on

appraisals data for trainin0 plannin0 (the data arrives too late to be used for trainin0 plannin0

for the ne7t year quarter 9 and probably quarter :).

&rainin0 plannin0 must 5ork from data (based on audits, analyses, mana0er inputs,

questionnaires, market and le0islative drivers, et2) 0atheredOre2eived earlier durin0 the year.

&rainin0 plannin0 by its nature is a rollin0 a2tivity and thou0ht needs to be 0iven to ho5 best

to mana0e the data0atherin0 and analysis (in2ludin0 the vital details from staff appraisals),

trainin0 plannin0 a2tivity, and inte0ratin0 the 2osts and bud0etin0 5ithin the 2orporate

tradin0 plannin0 pro2ess.



A CO$PAR'('V& S()%/

Pr!'ate sector Ban(s Vs P)*"!c sector Ban(s

Public Sector Banks:

i1 P)N9AB NA('ONA. BAN3

ii1 BAN3 O* 'N%'A

Private Sector Banks:

i1 'C'C' BAN3

ii1 AH'S BAN3

Punab National Bank 'n 'ndia 0PNB1

*ith its presen2e virtually in all the important 2entres of the 2ountry, %un1ab #ational Bank

offers a 5ide variety of bankin0 servi2es 5hi2h in2lude 2orporate and personal bankin0,

industrial finan2e, a0ri2ultural finan2e, finan2in0 of trade and international bankin0. Amon0

the 2lients of the Bank are "ndian 2on0lomerates, medium and small industrial units,

e7porters, nonresident "ndians and multinational 2ompanies. &he lar0e presen2e and vast

resour2e base have helped the Bank to build stron0 links 5ith trade and industry.

%un1ab #ational Bank is servin0 over ;.F 2rore 2ustomers throu0h F:F

At the same time, the bank has been 2ons2ious of its so2ial responsibilities by finan2in0

a0ri2ulture and allied a2tivities and small s2ale industries (SS"). onsiderin0 the importan2e



of small s2ale industries bank has established ;9 spe2iali=ed bran2hes to finan2e e72lusively

su2h industries.

Stron0 2orrespondent bankin0 relationship 5hi2h %un1ab #ational Bank maintains 5ith over

:@@ leadin0 international banks all over the 5orld

Keepin0 in tune 5ith 2han0in0 times and to provide its 2ustomers more effi2ient and speedy

servi2e, the Bank has taken ma1or initiative in the field of 2omputeri=ation. All the Bran2hes

of the Bank have been 2omputeri=ed. &he Bank has also laun2hed a00ressively the 2on2ept of

GAny &ime, Any *here Bankin0G throu0h the introdu2tion of entrali=ed Bankin0 Solution

(BS) and over :@E offi2es.

• %un1ab #ational Bank 5ith EH offi2es and the lar0est nationalised bank is servin0 its

;.F 2rore 2ustomers %un1ab #ational Bank has been ranked ;Ith amon0st top F@@2ompanies by the '2onomi2 &imes. %#B has earned Eth position amon0 top F@ trusted

brands in "ndia.



•

Bank of 'ndia

Bank of "ndia, founded on Hth September in the year 9E@C 5as nationalised alon0 5ith 9;

other banks in uly 9ECE. &hen its paidup 2apital 5as -s.F@ lakh 5ith only F@ employeesand the only offi2e in Mumbai.

&oday Bank of "ndia has been spread 5ith :FE bran2hes in2ludin0 E; spe2ialised bran2hes

2ontrolled by I Tonal ffi2es.

Bank of "ndia 2ame up 5ith its maiden publi2 issue in the year 9EEH and the total number of

shareholders stands to ;,9H,IE@ as on ;@O@CO:@@.

Bank of 'ndia abroad

Bank of "ndia 5as the first Bank in "ndia to open bran2h offi2e outside the 2ountry, at

ondon, in 9EC, and even it is the first to open a bran2h offi2e in 'urope, %aris in 9EH.

&he Bank has si=able presen2e abroad, 5ith a net5ork of :9 bran2hes (in2ludin0 three

representative offi2e ) at key bankin0 and finan2ial 2entres vi=.

• ondon

• #e5 ork

• %aris

• &okyo

• !on0Kon0

• Sin0apore

(he international business accounts for around #"2"I of BankJs total business2

Our $ission

Gto provide superior, proa2tive bankin0 servi2es to ni2he markets 0lobally, 5hile providin0

2osteffe2tive, responsive servi2es to others in our role as a development bank, and in so

doin0, meet the requirements of our stakeholdersG.



Our Vision

Gto be2ome the bank of 2hoi2e for 2orporate, medium businesses and up market retail

2ustomers and to provide 2ost effe2tive developmental bankin0 for small business, mass

market and rural marketsG.

'C'C' BAN3

""" imited, 5as established in 9EFF by the *orld Bank, the $overnment of "ndia and the

"ndian "ndustry, for the promotion of industrial development in "ndia by 0ivin0 pro1e2t and

2orporate finan2e to the industries in "ndia.

""" Bank has 0ro5n from a development bank to a finan2ial 2on0lomerate and has be2ome

one of the lar0est publi2 finan2ial institutions in "ndia. """ Bank has finan2ed all the ma1or

se2tors of the e2onomy, 2overin0 C,II 2ompanies and 9C,IF9 pro1e2ts. As of Mar2h ;9,

:@@@, """ had disbursed a total of -s. 9,9;,@H@ 2rores, sin2e in2eption.

'C'C' Bank *act *iles

&otal assets > -s.9C,:9 2rore (6e2ember ;9, :@@)

#et5ork > F;@ bran2hes

A&Ms > ver 9,II@

Abroad Subsidiaries > United Kin0dom and anada

Abroad bran2hes > Sin0apore and Bahrain

-epresentative offi2es > United States, hina, United Arab 'mirates, Ban0ladesh and South

Afri2a.

OV&RV'&4

""" Bank is "ndias se2ondlar0est bank 5ith total assets of about -s. :,F9;.IE bn (USP

FC.; bn) at Mar2h ;9, :@@C and profit after ta7 of -s. :F.@ bn (USP FCE mn) for the year

ended Mar2h ;9, :@@C (-s. :@.@F bn (USP E mn) for the year ended Mar2h ;9, :@@F).

""" Bank has a net5ork of about C9 bran2hes and e7tension 2ounters and over :,:@@

A&Ms. """ Bank offers a 5ide ran0e of bankin0 produ2ts and finan2ial servi2es to

2orporate and retail 2ustomers throu0h a variety of delivery 2hannels and throu0h its



spe2ialised subsidiaries and affiliates in the areas of investment bankin0, life and nonlife

insuran2e, venture 2apital and asset mana0ement. """ Bank set up its international bankin0

0roup in fis2al :@@: to 2ater to the 2ross border needs of 2lients and levera0e on its domesti2

bankin0 stren0ths to offer produ2ts internationally. """ Bank 2urrently has subsidiaries in

the United Kin0dom, -ussia and anada, bran2hes in Sin0apore, Bahrain, !on0 Kon0, Sri

anka and 6ubai "nternational 8inan2e entre and representative offi2es in the United States,

United Arab 'mirates, hina et2

At une F, :@@C, """ Bank, 5ith free float market 2apitali=ation of about -s. I@.@@

billion (USP [email protected] billion) ranked third amon0st all the 2ompanies listed on the "ndian sto2k

e72han0es.

""" Bank 5as ori0inally promoted in 9EE by """ imited, an "ndian finan2ial

institution, and 5as its 5hollyo5ned subsidiary. """s shareholdin0 in """ Bank 5as

redu2ed to CL throu0h a publi2 offerin0 of shares in "ndia in fis2al 9EEI.

After 2onsideration of various 2orporate stru2turin0 alternatives in the 2onte7t of the

emer0in0 2ompetitive s2enario in the "ndian bankin0 industry, and the move to5ards

universal bankin0, the mana0ements of """ and """ Bank formed the vie5 that the

mer0er of """ 5ith """ Bank 5ould be the optimal strate0i2 alternative for both entities,

and 5ould 2reate the optimal le0al stru2ture for the """ 0roups universal bankin0 strate0y.

&he mer0er 5ould enhan2e value for """ shareholders throu0h the mer0ed entitys a22ess

to lo52ost deposits, 0reater opportunities for earnin0 feebased in2ome and the ability to

parti2ipate in the payments system and provide transa2tionbankin0 servi2es. "n 2tober

:@@9, the Boards of 6ire2tors of """ and """ Bank approved the mer0er of """ and

t5o of its 5hollyo5ned retail finan2e subsidiaries, """ %ersonal 8inan2ial Servi2es

imited and """ apital Servi2es imited, 5ith """ Bank. &he mer0er 5as approved by

shareholders of """ and """ Bank in anuary :@@:, by the !i0h ourt of $u1arat at

Ahmedabad in Mar2h :@@:, and by the !i0h ourt of udi2ature at Mumbai and the -eserve

Bank of "ndia in April :@@:. onsequent to the mer0er, the """ 0roups finan2in0 and

bankin0 operations, both 5holesale and retail, have been inte0rated in a sin0le entity.



AH'S BAN3

AR"S Bank 5as the first of the ne5 private banks to have be0un operations in 9EE, after the

$overnment of "ndia allo5ed ne5 private banks to be established. &he Bank 5as promoted

1ointly by the Administrator of the spe2ified undertakin0 of the Unit &rust of "ndia (AR"S

"), ife "nsuran2e orporation of "ndia (") and $eneral "nsuran2e orporation td. and

other four %SU 2ompanies, i.e. #ational "nsuran2e ompany td., &he #e5 "ndia Assuran2e

ompany, &he riental "nsuran2e orporation and United "nsuran2e ompany td.

&he Bank today is 2apitali=ed to the e7tent of -s. :I9.C rores 5ith the publi2 holdin0

(other than promoters) at FC.IC L.

&he Banks -e0istered ffi2e is at Ahmedabad and its entral ffi2e is lo2ated at Mumbai.%resently the Bank has a very 5ide net5ork of more than F9@ bran2h offi2es and '7tension

ounters. &he Bank has a net5ork of over ::@@ A&Ms providin0 :hrs a day bankin0

2onvenien2e to its 2ustomers. &his is one of the lar0est A&M net5orks in the 2ountry.

&he Bank has stren0ths in both retail and 2orporate bankin0 and is 2ommitted to adoptin0 the

best industry pra2ti2es internationally in order to a2hieve e72ellen2e.



O*+ect!'e of the St)d#>

2 &o make a 2omparative study of the methods used in %ubli2 and %rivate Se2tor.

#2 &o find out the effe2tive method used by both the se2tors.

@2 &o Kno5 the pro2edure of performan2e Appraisal used by various banks.

!2 &o kno5 ho5 employees see the %erforman2e Apprasial s2hemes of the 2ompany

K2 &o kno5 5hether performan2e Apprasial is so mu2h effe2tive for banks or not.

D2 &o 2he2k the role of mana0ement 5hile providin0 %erforman2e s2hemes.

?2 &o make a 2omparative study of the methods used in %ubli2 and %rivate Se2tor.

L2 &o find out the effe2tive method used by both the se2tors.

2 &o find out on 5hat basis Appraisal is done.



C-AP(&R''

R&V'&4 O* .'(&RA()R&



R&V'&4 O* .'(&RA()R&

After an employee has been selected for a job, has been trained to do it and has worked on it

for a period of time, his performance should be evaluated. Performance Evaluation or

Appraisal is the process of deciding how employees do their jobs. Performance here refers to

the degree of accomplishment of the tasks that make up an individual’s job. It indicates how

well an individual is fulfilling the job reuirements. !ften the term is confused with efforts,

which means energy e"pended and used in a wrong sense. Performance is always measured

in terms of results. A bank employee, for e"ample, may e"ert a great deal of effort while

preparing for the #AII$ e"amination but manages to get a poor grade. In this case the effort

e"pended is high but performance is low.



C-AP(&R'''

R&S&ARC- $&(-O%O.O+/



Research $ethodolo5y

T#e of Research>

6es2riptive -esear2h

(ype of %ata:

%rimary 6ata>

Stru2tured Vuestionnaire

%ersonal "ntervie5

Se2ondary 6ata>

"nternet

Ma0a=ines

Books

Sam"e &es!,n%

&ar0et %opulation Senior and Middle level '7e2utives at %un1ab #ational

Bank, Bank f "ndia, """ Bank, AR"S Bank.

Sample Unit

Sample Si=e F@

Samplin0 &e2hnique -andom Sampalin0 &e2hnique



C-AP(&R 7 'V

%A(A ANA./S'S

,

'N(&RPR&(A('ON



#2 4hether usin5 Online Appraisal system in the or5ani;ation

Response Public Sector Private Sector

es 9@ @

#o @ 9@

"n a poll 2ondu2ted amon0 senior level e7e2utives the %ubli2 se2tor does not use nline appraisaloften 5hereas the response is opposite amon0 the private se2tor banks. . uts of F@ respodents of

publi2 se2tor banks, only 9@ said yes and in 2ase of private se2tor @ said yes. "n %rivate se2tor the

use of nline system is si0nifi2ant.



@2 4hich data is included in Performance sheet of employees durin5 feedback


nly -elevant 6ata :@ @

6ata 5ith fa2ts :@ 9@

6ata 5ith fa2ts and

omments

9@ ;@

As per the requirement @ 9@

As per the response, it 2an be seen that 8eedba2k pro2ess in %ubli2 se2tor or0ani=ations are based

mostly on only relevant elements of performan2e and data 5hile in %rivate se2tor or0ani=ations

feedba2k pro2ess are based on hard2ore fa2ts and data2 "n 2ase of private se2tor, the data is taken

on requirement basis also



!2 4hich is the most important factor hich is considered durin5 appraisal


Behavioral 9@ :@

obO&ar0et ;@ :@

Situational @ @

All the above 9@ 9@

As per the survey 2ondu2ted, the tar0et 5as 2hosen as the most important fa2tor by both private and

publi2 se2tor employees. Behaviour 5as 2onsidered equally important in private se2tor. 9@ out of F@

employees in ea2h se2tor feel that all the aspe2ts are equally important . 6urin0 performan2e appraisal



of an employee ma7imum emphasis is 0iven purely to tar0et a2hievements skills in %ubli2 se2tor

or0ani=ations and in %rivate se2tor or0ani=ations it is 0iven to a2hievement of tar0et as 5ell as his

behaviors

K2 Performance Appraisal method bein5 used in the or5ani;ation


-atin0 :F 9@

-ankin0 9@ C

%aired omparison @ F

Self Appraisal F 9F

;C@ 6e0ree 9@ C

M.B. @ I

"t 5as found that in %ubli2 Se2tor the most 2ommonly used method is -atin0(:F) alon0 5ith ;C@

6e0ree Appraisal(9@) and also -ankin0(9@), "n %rivate Se2tor Self Appraisal (9F) is the most 2ommon

method follo5ed by ratin0(9@) and M.B. Method(I)



D2 'nvolvement of the peer 5roup of employees> in appraisin5 the employees

Performance


es " !!

#o K" D

*hen asked about involvement of peer 0roup in appraisin0 the employees performan2e, it

has been noti2ed that it is not(o out of F@) 0iven any importan2e in 2ase of publi2 se2tor

5hereas in 2aves of private se2tor out of F@ respondents said yes to the question



?2 4hether conductin5 the personal intervies after fillin5 up the performance sheets2


es " K"

#o !" "

"n 2ase of publi2 se2tor, personal intervie5s are 0enerally not (C out of F@) 2ondu2ted after %erforman2eAppraisal. "t is 2ondu2ted only in spe2ial 2ases. *hereas in 2ase of %rivate Se2tor, it is a norm and is

bein0 2ondu2ted (F@ out of F@)in all the 2ases. &his improves, morale, trust of the employees in private

se2tor



L2 Provision of Self Appraisal System in the Or5ani;ation


es !!

#o @ D

"n 2ase of publi2 se2tor, the self appraisal method is used in only 99 out of F@ 2ases 5hereas

in %rivate Se2tor r0ani=ations, self appraisal method is used in out of F@ 2ases. &he self

appraisal method is popular and 5idely used n private se2tor or0ani=ation in 2omparison to

publi2 se2tor



"2 *ind any biasness in the appraisal system of the or5ani;ation2


es :C ;@

#o : :@

in response of his question, 5e 0ot to kno5 that in both the %ubli2 and %rivate Se2tor r0ani=ations

employees feel biasness from the side of Senior '7e2utives in 2ase of %erforman2e Appraisal System in

their r0ani=ation.

-o much fair the appraisal system of your or5ani;ation is




%oor 9@ @

Avera0e 9@ :@

$ood 9@ :@

'72ellent :@ 9@

ut of F@, :@ employees of %ubli2 Se2tor or0ani=ations feel that the appraisal system , 9@ feel that it is

poor 5hereas :@ rated it bet5een 0ood and avera0e. "n 2ase of %rivate Se2tor or0ani=ations, none of

the employees feel that it is poor 5hereas 9@ feel that it is e72ellent . @ employees feel that the

appraisal system is bet5een 0ood to avera0e.

9:. Satisfaction re5ardin5 the appraisal system




es @ ;@

#o 9@ :@

Most (@ out of F@) %ubli2 Se2tor employees 5ere satisfied 5ith their appraisal system 5hile 9@ out of

F@ 5ere not. "n 2ase of %rivate Se2tor or0ani=ations, ;@ out of F@ employees 5ere satisfied and :@ out

of F@ employees 5ere satisfied 5ith the appraisal system.

@2 Re5ular feedback for the improvement of appraisal system by the -R %epartment




es 9@ ;

#o @ H

"n %ubli2 Se2tor or0ani=ations !- 6epartment do not take 0ood 2are of providin0 feedba2k to the

employees for the improvement of their performan2e 5hile most (; out of F@) employees of %rivate

Se2tor or0ani=ation feel that proper feedba2k is bein0 provided to them by their !- 6epartment for the

improvement of their performan2e2

! /our involvement in your on performance appraisal



9. ld methods are still bein0 pra2ti2ed for doin0 the performan2e appraisal.

:. &here is less staff.

;. #o provision of outsour2in0.

. 8requent transfers are bein0 made 5ithout prior noti2es.

F. Shorta0e of time and resour2es.

C. 6iffi2ulty fa2ed in 0ettin0 the responses.

H. a2k of kno5led0e of the respondents.



C-AP(&R 7 V

*'N%'N+S > S)++&S('ONS

,

CONC.)S'ONS



*'N%'N+S O* (-& S()%/

&he data based on 5hi2h appraisal is done in2ludes only relevant data in 2ase of %ubli2

Se2tor Banks 5hile various other fa2ts and 2omments on the performan2e are also in2luded

in addition 5ith the relevant data in 2ase of %rivate Se2tor Banks.

W&he main Obective of doin0 the %erforman2e Appraisal is 0ivin0 the %romotions in 2ase of

%rivate se2tor Banks 5hile %erforman2e Appraisal System is used for various purposes like

%romotions, !elp in or0ani=ation %lannin0, "ndividual 6evelopment, "mpartin0 &rainin0 et2.

W%rivate se2tor banks use Online Appraisal system 5hile there is absen2e of online system

appraisal system in %ubli2 se2tor Banks.

Peer 5roup ratin5 is bein0 used in %rivate se2tor Banks but not in %ubli2 se2tor Banks for

appraisin0 the employees.

W8or providin0 feedback %ubli2 Se2tor uses -atin0 Methods and %rivate Se2tor uses ;C@

6e0ree Method.

W&mphasis is 0iven to the &ar0ets A2hieved in 2ase of %ubli2 Se2tor 5hereas Behavioral

8a2tors are also in2luded 5ith the &ar0ets A2hieved in 2ase of %rivate se2tor Banks for the

purpose of %erforman2e Appraisal.

WBoth the %ubli2 se2tor banks and %rivate se2tor Banks follo5s the *ormal method of

appraisal

W&he employees of both the se2tors of banks are Satisfied 5ith employerNs feedba2k

provided to them re0ardin0 their Appraisal.



W&here is a provision of Self Appraisal $ethod for employees to 1ud0e their o5n

performan2e.

WBoth the %ubli2 se2tor banks and %rivate se2tor Banks follo5s the *ormal method of

appraisal

W&he employees of both the se2tors of banks are Satisfied 5ith employerNs feedba2k

provided to them re0ardin0 their Appraisal.

W&here is a provision of Self Appraisal $ethod for employees to 1ud0e their o5n

performan2e.



R&CO$$&N%A('ONS $A%& B/ (-& BAN3 &H&C)('V&S

Recommendations $ade

9. &here should be a sin0le 5indo5 system.

:. %roper trainin0 pro2edures should be follo5ed.

;. 8a2e to fa2e feedba2ks should be provided.

. 'mployees should have the ri0ht to appeal to hi0her authorities, in 2ase they are not

satisfied.



ANN&H)R&



B'B.'O+RAP-/

• Bhatta2haryya, -esear2h Methodolo0y, :nd 'dition, :@@C, '72el Books, #e5 6elhi.

• Kothari .-, -esear2h Methodolo0y> Methods J &e2hniques, :nd 'dition, :@@E, #e5

a0e, #e5 6elhi.

• A0uinis !erman, %erforman2e Mana0ement, :nd 'dition, :@@E %earson 'du2ation, #e5

6elhi. .

• A=i= A, %erforman2e Appraisal> A22ountin0 and Vuantitative Approa2hes, 9EE;, %ointer.

• Bandura A, Self 'ffi2a2y> &he '7er2ise of ontrol, 9EEH, 8reeman, #e5 ork.

• Basu Mihir K, Mana0emrial %erforman2e Apparaisal in "ndia, Qision Books %vt. td.

•

Bernardin !., Beatty -.*, %erforman2e Apparaisal> Assessin0 !uman Behavior at*ork, 9EI, Kent %ub., Boston.

• Bhatia S.K, %erforman2e Mana0ement> on2epts, %ra2ti2es and Strate0ies for

r0anisation Su22ess, :@@H, 6eep J 6eep, #e5 6elhi.

• ardy -., %erforman2e Mana0ement> on2epts, Skills And '7er2ises, 9st 'dition, :@@I,

%!", #e5 6elhi.

4ebsites:

• 25oo5le2com

• 2businessballs2com

• 2citehr2com

• 2search2com



• 2ibef2or5

Performance Appraisal *orm

&$P.O/&& P&R*OR$ANC&

APPRA'SA. R&POR(

&his form is used to evaluate the performan2e of staff employees. '7amples of 5ell5ritten

evaluations and summaries of a22omplishments are on the *eb at

http>OO555.hr.u2davis.eduO8ormsOAllO%erfX'val.

%eriod 2overed (monthOdayOyear)> from XXXXXXXX to XXXXXXXX

'mployee name 'mployee number

&itle 2ode and payroll title %er2ent appointment

%ersonnel pro0ram or bar0ainin0 unit 6epartment

*orkin0 title (optional) en0th of time in this

position

es #o (months>

)



Supervisor name Supervised for entire revie5

period

9OBR&.A(&% P&R*OR$ANC&: 6es2ribe performan2e durin0 the revie5 period. &he

evaluation must be based on 2learlydefined 1ob fun2tions or performan2e e7pe2tations. &he

ratin0 in the Supervisors -e2ommendation must be supported by the narrative. Use

additional sheets if needed.

S)P&RV'SORS R&CO$$&N%A('ON:

" rate s performan2e for this revie5 period as>

Meets or '72eeds '7pe2tations 6oes #ot Meet '7pe2tations

'M%'' %'-8-MA#' A%%-A"SA -'%-&

'mployee #ame %a0e

9OB *)NC('ONS S)PP.&$&N(> &his se2tion is used to rate ea2h fun2tion listed in the

employeeNs position des2ription. &he per2enta0es must add up to 9@@L re0ardless of the

per2ent of time of the appointment. &his se2tion is required for employees in the leri2al and

Allied Servi2es unit (R), but optional for other employees unless required by the dean or

vi2e 2han2ellor.



B 8U#&"#> %er2ent of &ime>

%'-8-MA#' 'QAUA&"#>


%'-8-MA#' 'QAUA&"#>


%'-8-MA#' 'QAUA&"#>


%'-8-MA#' 'QAUA&"#>



&$P.O/&& P&R*OR$ANC& APPRA'SA. R&POR(

'mployee #ame %a0e

S)P&RV'SORS AN% $ANA+&RS: 'a2h supervisor and mana0er must be evaluated on

supervisory performan2e, support of the %rin2iples of ommunity (in2ludin0 equal

employment opportunity and affirmative a2tion performan2e), and the safety re2ord of the

unit supervised.

*)()R& +OA.S OR P&R*OR$ANC& &HP&C(A('ONS:

S'+NA()R&S

'mployee> " have read and re2eived a 2opy of this evaluation. 6ate

Supervisor> &his is my evaluation of the employees performan2e durin0 the revie5 period.

6ate

6epartment !ead> " 2on2ur 5ith this evaluation. 6ate



%&PAR($&N( -&A% CO$$&N(S: (optional)

&$P.O/&& CO$$&N(S: (optional)


$&R'( RA('N+ PA+&


'mployee #ame 6epartment

'NS(R)C('ONS> &he dean or vi2e 2han2ellor, or other authori=ed person or 0roup,2ompletes this pa0e. &he dean or vi2e 2han2ellors 2all for appraisals 5ill spe2ify 5ho is

authori=ed to 2omplete this pa0e.

A)(-OR'G&% $&R'( RA('N+ (See

instru2tions)

Si0nature

6ate

Outstandin5

Very +ood

Satisfactory

.ess than satisfactory




&$P.O/&& S)$$AR/ O* ACCO$P.'S-$&N(S


'mployee #ame 6epartment

&his provides an opportunity to refle2t upon a2tual 5ork and ensure 0ood 2ommuni2ation

bet5een employee and supervisor. Use of this form is optional, but may be required by a

dean, vi2e 2han2ellor, or department.

a22omplishments related to ea2h 1ob fun2tion

9. a22omplishments related to established 0oals andOor performan2e e7pe2tations

:. future 0oals andOor performan2e e7pe2tations

;. trainin0 and development needs, if any

. support of the %rin2iples of ommunity (in2ludin0 equal employment opportunity and

affirmative a2tion performan2e and 1obrelated 2ommitment to 0ood interpersonal

relations).

'mployee Si0nature 6ate



M)&S('ONNA'R&

NA$& :

%&S'+NA('ON :

.en5th of Service:

V9. State the time 0ap after 5hi2h the appraisal is bein0 done

(a) months (b) C months (2) 9: months

V:. 6o you have nline Appraisal system in your or0ani=ation

(a) es (b) #o

V;. *hi2h kind of data you in2lude in performan2e sheet of employees durin0 feedba2k

• nly relevant data

• 6ata 5ith fa2ts

• 6ata 5ith fa2ts and 2omments

• As per the requirement

V. n 5hi2h attributes of an employee you emphasis the most durin0 appraisal

• Behavioral

• obOtar0et related

• Situational

• All of the above

VF. *hi2h %erforman2e Appraisal method is bein0 used in the or0ani=ation

• -ankin0 Method

• -atin0 Method

• %aired omparison Method

• Self Appraisal Method



• MB Method (Mana0ement By b1e2tive)

• ;C@ 6e0ree Appraisal

VC. 6o you also involve the peer 0roup of employees, in appraisin0 the employee

(a) es (b) #o

VH. 6o you also 2ondu2t the personal intervie5s after fillin0 up the performan2e sheets

Y es

Y #o

Name:

%esi5nation:

%epartment>

V9.6o you have provision of Self Appraisal in your or0ani=ation

• es

• #o

V:. 6o you feel biasness prevails in the appraisal system of your or0ani=ation

• es

•

#o

V;. !o5 mu2h fair you feel the appraisal system is in your or0ani=ation

($ive points bet5een 9 to 9@)

• 9; (poor)



• ;F(avera0e)

• FH(0ood)

• H9@(e72ellent)

V. 8or 5hat purpose your or0ani=ation 2ondu2ts performan2e appraisal

• 8or 0ivin0 promotions

• 8or individual development

• 8or improvin0 or0ani=ational performan2e

• &o 0et feedba2k for or0ani=ational plannin0.

• 8or providin0 &rainin0.

VF. Are you satisfied 5ith the pro2edure follo5ed by the or0ani=ation for appraisal

• es

• #o

VC. 6oes the !- deptt. take re0ular feedba2k for the improvement of appraisal system

• es

• #o

VH. Are you satisfied 5ith your employerNs 8eedba2k

(a) es (b) #o

VI. !o5 mu2h you see yourself involved in your o5n performan2e appraisal

(-ate bet5een 9 to 9@)

Shelly Walia

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