Beruflich Dokumente
Kultur Dokumente
OF PROFESSIONAL COLLEGES
LUCKNOW
PROJECT REPORT
ON
Performance Appraisal
SUBMITTED BY:
Shraddha Singh
Roll No.: 1312270063
MBA IIIrd Sem.
Certificate
ii
DECLERATION
iii
ACKNOWLEDGEMENT
Achievement is finding out what you would be then doing, what you have to do. The higher the
summit, the harder is the climb. The goal was fixed and we began with a determined resolved and
put in ceaseless sustained hard work. Greater challenge, greater was our effort to overcome it.
This project work, which is my first step in the field of professionalization, has been successfully
accomplished only because of my timely support of industry guide. I would like to pay my sincere
regards and thanks to those, who directed me at every step in my project work.
I take this opportunity to extend my sincere gratitude and profound obligation towards my Project
report guide Mr. Sameer Rastogi for giving me valuable suggestions & guidance rendered to me
throughout the Summer Training project without their encouragement and continuing support, this
Summer Training project would not have been possible.
I am highly thankful to other faculty members whose able guidance in this project make my way
simple & easy.
Name- Shraddha
Singh
MBA 3rd Sem
Roll no. 1312270063
iv
PREFACE
The research project program is the integral part of MBA curriculum during the course of
management; the research is expected to use and apply their academic knowledge and gain a
valuable insight into corporate culture with all its environment operational complexities.
The research offers a valuable opportunity to the researcher to meet their academic knowledge to
the real world situation. I have undertaken commercial department to study about the various
activities Performance Appraisal
In this report I have put my finest efforts to compile the data with utmost accuracy and hope this
report will give complete satisfaction regarding the various aspects of recruitment & selection
activity.
TABLE OF CONTENT
1.
Certificate
ii
2.
Declaration
iii
3.
Acknowledgement
iv
4.
Preface
5.
Introduction
6.
Company Profile
7.
Research Methodology
8.
9.
Data Analysis
10.
Findings
11.
Recommendations
12.
Conclusion
13.
Limitation
14.
Bibliography
15.
Annexure
vi
vii
INTRODUCTION
INTRODUCTION
Introduction
Definition of performance appraisal
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.
According to Dulewicz (1989),
"... A basic human tendency to make judgements about those one is working with,
as well as about oneself."
Any system of determining how well an individual employee has performed
during a period of time, frequently used as a basis for determining merit
increases.
Performance appraisal is a systematic review of a persons work and
achievements over a recent period, usually leading to plans for the future.
In its most basic form, performance appraisal (or review) activities include
documenting achieved results (hopefully, by also including use of examples to
clarify documentation) and indicating if standards were met or not. The appraisal
usually includes some form of a development plan to address insufficient
performance.
In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority of
available merit pay increases, bonuses, and promotions.
This concept have get the recognition the evaluation of work performance,
appraisal really dates from the time of the Second World War - not more than 60
years ago, as a distinct and formal management procedure were used in the
evaluation of the work performance.
Yearly performance reviews are critical. Organizations are hard pressed to find
good reasons why they can't dedicate an hour-long meeting once a year to ensure
the mutual needs of the employee and organization are being met. Performance
reviews help supervisors feel more honest in their relationships with their
subordinates and feel better about themselves in their supervisorial roles.
Subordinates are assured clear understanding of what's expected from them, their
own personal strengths and areas for development and a solid sense of their
relationship with their supervisor. Avoiding performance issues ultimately
decreases
morale,
decreases
credibility
of
management,
decreases
the
It is deemed as the critical tool for banking sector as for the banking sector the
performance indicators are quit different and the overall structure of the banking
sector is bit complex thus to use this concept effectively and efficiently is quit
difficult for this sector.
Thus, through this report the researcher had tried to find the problem emerging and
to provide them suggestion so as for effective working.
In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority of
available merit pay increases, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer performers who
may require some form of counseling, or in extreme cases, demotion, dismissal or
decreases in pay. (Organizations need to be aware of laws in their country that
might restrict their capacity to dismiss employees or decrease pay.)
Performance appraisals are essential for the effective management and evaluation
of staff. Appraisals help develop individuals, improve organizational performance,
and feed into business planning. Formal performance appraisals are generally
conducted annually for all staff in the organization. Each staff member is appraised
by his or her line manager (Directors are appraised by the CEO, who is appraised
by the chairman or company owners, depending on the size and structure of the
organization). Annual performance appraisals enable management and monitoring
of standards, agreeing expectations and objectives, and delegation of
responsibilities and tasks. Staff performance appraisals also establish individual
training needs and enable organizational training needs analysis and planning.
Performance appraisals data feeds into organizational annual pay and grading
reviews, and coincides with the business planning for the next trading year.
Performance appraisals generally review each individual's performance against
objectives and standards for the trading year, agreed at the previous appraisal
meeting. Performance appraisals are also essential for career and succession
planning. Performance appraisals are important for staff motivation, attitude and
behavior development, communicating organizational aims, and fostering positive
relationships between management and staff. Performance appraisals provide a
formal, recorded, regular review of an individual's performance, and a plan for
future development.
PERFORMANCE REVIEW MEETING
Today, Performance Review Meetings are regarded as conversation with a
purpose. They are considered extremely important for the development and health of the
organization. The purpose of the performance review meetings is to reach mutually agreed
conclusions about the development of the individual and his performance and if
applicable, any areas for improvement, including how such improvements are to be
achieved.
The purpose of Performance and Development reviews is to enable the
employees to engage in a dialogue and get the support of the manager about the
individuals performance and development. They should be more like free- flowing, open
meetings in which views are exchanged so that agreed conclusions can be reached. The
three key elements of performance review meetings are:
1. Feedback - Providing information on how a person has been doing.
2. Measurement assessing results against agreed targets and standards.
3. Exchange of views - Ensuring that the discussion involves a full, free and frank
exchange of views about what has been achieved, what needs to be done to
achieve more and what employees think about their work the way they are
managed and their aspirations.
Performance Appraisal review is the meeting when the employee can be motivated to
perform better in future or reinforce his desirable behaviour. Review discussion meetings
ideally should include the following:
6
The developmental initiatives taken by the employee himself and those planned by
the management for the employee.
Analyzing the causes of the delay, the problems faced and the solutions adopted.
Preparation of action steps for solving identified problems and contingency plans
for anticipated problems.
Periodic review meetings become meaningful only when they help pause, reflect, take
stock and strategize in an otherwise active relationship.
The Performance appraisal form should be filled by the immediate supervisor or manager
of the employee in order to ensure that the appraiser if fully acquainted with the
performance, responsibilities, targets and standards of the employee. All the instructions
and guidelines on the appraisal form should be read and followed carefully.
Be prepared with all the details of the performance, the standards, job description
and the past appraisals of the employee.
The focus should be on the employees behaviour throughout the year and not just
his recent performance.
Substantiate and support your rating, and attach all the necessary documents (if
required).
Apart from the defined performance objectives and results, discuss the related
issues as well covering all the aspects of the performance.
Discuss the problems faced by the employees during the course of action.
The solutions tried, and the degree of success achieved in solving the problems
faced.
Revisit with the employee, his/ her annual plan for the remaining time period and
develop revised action plans, if necessary.
Review discussions reassure the employees that each one of them has structured
opportunities for one to one interaction with the manager once every two or three months
during the year. These opportunities are important as they provide an important chance for
performance monitoring or development mentoring. The aim of the performance review
discussions is to share perceptions, solve the problem faced during the course of the
8
action, decide on the new goals jointly and provide a feedback to the employee for the past
performance i.e. to look at his strengths and weaknesses and also help to chart out a career
plan for the employee. The focus of these performance review discussions should not bet
o judge the employees past performance; rather it should be to motivate the employee to
improve his future performance and reinforce his good behaviour.
performance review that turns into a gripe session misses the opportunity to
raise employee morale.
6. Positive reinforcement emphasizing what has been done well so that it will be
done even better in the future and making only constructive criticisms (i.e. those
that point the way to improvement).
7. Exchange of views - Ensuring that the discussion involves a full, free and frank
exchange of views about what has been achieved, what needs to be done to
achieve more and what the appraiser think about their work the way they are
managed and their aspirations.
Agreement - jointly coming to an understanding about what has to be done by both parties
to improve performance, knowledge and skills and overcome any work problems raised
during the discussion
Performance Appraisal Feedback
Performance appraisal process is incomplete without the feedback given to the employee
about his appraisal and his performance. But the way of giving as well as receiving the
feedback differs from person to person and their way of handling and their outlook
towards the issue.
Therefore, On the part of the person receiving the feedback, the following points are
important to be taken care of:
o
The employee should have a positive attitude towards the feedback process
He should listen to the suggestions of the appraiser calmly and try to incorporate
them in his plans.
Should not judge the appraiser as a person on the basis of the feedback.
On the part of the appraiser or the manager / person giving the feedback, the following
points are to be taken care of:
The appraiser should make the receiver feel comfortable during the feedback
meeting.
The appraiser should make it a two way conversation i.e. let the employee
speak.
Listen to the employee and note his points, suggestions, problems etc.
The appraiser should not adopt a confrontational approach towards the meeting.
The goal is not to criticize the employee.
Provide a constructive feedback to the employee i.e. in a way which will motivate
him to perform better.
11
COMPANY
COMPANY PROFILE
PROFILE
12
COMPANY PROFILE
Sarva UP Gramin Bank is result of amalgamation of the four RRBs they are:
This event of amalgamation and creation of Sarva UP Gramin Bank took place on
30 November 2007 under Sub-Section (1) of section 23A of the Regional Rural
Bank Act, 1976 (21 of 1976).
The bank has 214 branches around 12 districts of Uttar Pradesh, it will also have
one branch in Haridwar District of Uttarakhand. The Bank is sponsored by Punjab
National Bank
The Bank has share Capital of Rs 6.00 Crore, subscribed by Central Govt,
Punjab National Bank and Govt of Uttar Pradesh in the ratio of 50:35:15.
The Bank has its Head Office in Meerut.
Bank is also functioning in the western zone of Uttar Pradesh well-known for Sugar
production, Handicrafts, Steel Plants, Paper Mills and Sports Goods manufacturing
Bank's Head Office is situated in Historic City of Meerut well-known for first
Independence Movement of 1857.
Historic City of Jhansi is well-known for Brave Queen of Jhansi, Rani Laxmi
Bai for Major Role in first Independence Movement of 1857.
13
Tehsil(Saharanpur).
Balrampur is related to historic 51 Sidha Peeth of goddess Durga. One of
them situated in a village named as Devipatan(Tulsipur).
Baghpat is also related to historic Pura Mahadev Temple of Lord SHIVA situated in
Pura Village. Balmiki Rishi Ashram in Baleni Village Ratoul Mangoes are world
Famous Mango cultivated in Ratoul Village (Baghpat)
14
OUR GOAL " To cater the Banking needs of the people in our operational area
with excellence".
Ghaziabad,Meerut,
Gautam
Bijnor,Gonda,Balrampur,Bhim
Budh
Nagar,
Nagar,Budaun
Shamli
Holy
,
Distt
Hapur
of
Rs 221.13 Crore .
.
Our Worthy Chairman Sh. D.S. Bainola Introducing Bank Rupay Debit
Card.
16
Our Worthy Chairman Sh. D.S. Bainola Welcoming PNB CMD Sh.
K.R.KAMATH .
17
18
19
Meerut,
Gautam
Bijnor,Gonda,Balrampur,Bhim
Budh
Nagar,
Nagar,Budaun
Shamli
Holy
,
Distt
Hapur
of
20
However from August 1996 the RRBs have been granted freedom to fix rates of
interest, which is usually in the range of 14-18% for advances.
Recapitalization of Regional Rural Banks (RRBs)
Subsequent to review of the financial status of RRBs by the Union Finance
Minister in August, 2009, it was felt that a large number of RRBs had a low
Capital to Risk weighted Assets Ratio (CRAR). A committee was therefore
constituted in September, 2009 under the Chairmanship of K C Chakrabarty,
Deputy Governor, RBI to analyse the financials of the RRBs and to suggest
measures including re-capitalisation to bring the CRAR of RRBs to at least 9% in a
sustainable manner by 2012. The Committee submitted its report in May, 2010.
The following points were recommended by the committee:
The remaining 42 RRBs will not require any capital and will be able to
maintain CRAR of at least 9% ifs on 31 st March 2012 and thereafter on
their own.
A fund of Rs. 100 crore to be set up for training and capacity building of
the RRB staff.
Share of Central Government i.e. Rs.1, 100 crore will be released as per
provisions made by the Department of Expenditure in 2010-11 and 201112. However, release of Government of India share will be contingent on
proportionate release of State Government and Sponsor Bank share.
Organizational Structure
The Organizational Structure for RRB's varies from branch to branch and depends
upon the nature and size of business done by the branch. The Head Office of an
RRB normally had three to seven departments.
The following is the decision making hierarchy of officials in a Regional Rural
Bank.
Board of Directors
General Manager
Senior Manager
Manager
Assistants
Amalgamation
Currently, RRB's are going through a process of amalgamation and consolidation.
25 RRBs have been amalgamated in January 2013 into 10 RRBs. This counts 67
RRBs till 1st week of June 2013. On 31 March 2006, there were 133 RRBs (postmerger) covering 525 districts with a network of 14,494 branches. All RRBs were
originally conceived as low cost institutions having a rural ethos, local feel and pro
poor focus. However, within a very short time, most banks were making losses.
The original assumptions as to the low cost nature of these institutions were belied.
23
This may be again amalgamated in near future. At present there are 56 RRBs in
India.
Legal Existence and Protection
RRB's are recognized by the law and they have legal significance.The Regional
Rural Banks Act, 1976 Act No. 21 Of 1976 [9 February 1976.] reads
"For the incorporation, regulation and winding up of Regional Rural Banks with a
view to developing the rural economy by providing, for the purpose of
development of agriculture, trade, commerce, industry and other productive
activities in the rural areas, credit and other facilities, particularly to the small and
marginal farmers, agricultural laborers, artisans and small entrepreneurs, and for
matters connected therewith and incidental thereto".
List of Regional Rural banks
1. Allahabad UP Gramin Bank
2. Andhra Pradesh Grameena Vikas Bank
3. Andhra Pragathi Grameena Bank
4. Arunachal Pradesh Rural Bank
5. Gramin Bank of Aryavart
6. Assam Gramin Vikash Bank
7. Baitarani Gramya Bank
8. Bangiya Gramin Vikash Bank
9. Baroda Gujarat Gramin Bank
10. Baroda Rajasthan Kshetriya Gramin Bank
11. Baroda Uttar Pradesh Gramin Bank
12. Bihar Gramin Bank is the result of the merger on 15 Oct 2012 between
Samastipur Kshetriya Gramina Bank and Bihar Kshetriya Gramina
Bank.
13. Chaitanya Godavari Grameena Bank
24
26
fairly well in adjusting to the new market dynamics, greater challenges lie ahead.
Financial sector would be opened up for greater international competition under
WTO. Banks will have to gear up to meet stringent prudential capital adequacy
norms under Basel II.
Agreements (FTAs) such as with Singapore, may have an impact on the shape of
the banking industry. Banks will also have to cope with challenges posed by
technological innovations in banking. Banks need to prepare for the changes. In
27
this context the need for drawing up a Road Map to the future assumes relevance.
The idea of setting up a Committee to prepare a Vision for the Indian Banking
industry came up in IBA, in this background.
transformation. It was, therefore, felt that we should set our goals for the near
future say, for 5-10 years hence and appropriately call this exercise Banking
Industry Vision 2010.
I am confident that India will become a Developed Nation by 2020. Come, let us
strive together to turn this resolve into reality Atal Bihari Vajpayee
EMERGING ECONOMIC SCENE
The financial system is the lifeline of the economy. The changes in the economy
get mirrored in the performance of the financial system, more so of the banking
industry. The Committee, therefore felt, it would be desirable to look at the
direction of growth of the economy while drawing the emerging contours of the
financial system. The India Vision 2020" prepared by the Planning Commission,
Government of India, is an important document, which is likely to guide the policy
makers, in the years to come. The Committee has taken into consideration the
economic profile drawn in India Vision 2020 document while attempting to
visualise the future landscape of banking Industry.
India Vision 2020 envisages improving the ranking of India from the present 11th
to 4th among 207 countries given in the World Development Report in terms of the
Gross Domestic Product (GDP). It also envisages moving the country from a lowincome nation to an upper middle-income country. To achieve this objective, the
India Vision aims to have an annual growth in the GDP of 8.5 per cent to 9 per cent
over the next 20 years. Economic development of this magnitude would see
quadrupling of real per capita income. When compared with the average growth in
GDP of 4-6% in the recent past, this is an ambitious target. This would call for
considerable investments in the infrastructure and meeting the funding
requirements of a high magnitude would be a challenge to the banking and
financial system.
India Vision 2020 sees a nation of 1.3 billion people who are better educated,
healthier, and more prosperous. Urban India would encompass 40% of the
population as against 28 % now. With more urban conglomerations coming up,
only 40% of population would be engaged in agricultural sector as against nearly
two thirds of people depending on this sector for livelihood. Share of agriculture in
29
the GDP will come down to 6% (down from 28%). Services sector would assume
greater prominence in our economy. The shift in demographic profile and
composition of GDP are significant for strategy planners in the banking sector.
Small and Medium Enterprises (SME) sector would emerge as a major contributor
to employment generation in the country. Small Scale sector had received policy
support from the Government in the past considering the employment generation
and favourable capital-output ratio. This segment had, however, remained
vulnerable in many ways. Globalization and opening up of the economy to
international competition has added to the woes of this sector making bankers wary
of supporting the sector. It is expected that the SME sector will emerge as a vibrant
sector, contributing significantly to the GDP growth and exports.
Indias share in International trade has remained well below 1%. Being not an
export led economy (exports remaining below 15% of the GDP), we have
remained rather insulated from global economic shocks. This profile will undergo a
change, as we plan for 8-9% growth in GDP.
our
financial markets has to be met and for this, smooth flow of funds between various
types of financial institutions and instruments would need to be facilitated.
Governments policy documents list investment in infrastructure as a major area
which needs to be focused. Financing of infrastructure projects is a specialized
activity and would continue to be of critical importance in the future. After all, a
sound and efficient infrastructure is a sine qua non for sustainable economic
development.
Infrastructure services have generally been provided by the public sector all over
the world in the past as these services have an element of public good in them. In
the recent past, this picture has changed and private financing of infrastructure has
made substantial progress. This shift towards greater role of commercial funding in
infrastructure projects is expected to become more prominent in coming years. The
role of the Government would become more and more of that of a facilitator and
the development of infrastructure would really become an exercise in publicprivate partnership. India Infrastructure Report (Rakesh Mohan Committee 1996) placed financing of infrastructure as a major responsibility of banks and
financial institutions in the years to come. The report estimated the funding
requirements of various sectors in the infrastructure area at Rs 12,00,000 crore by
the year 2005-06. Since the estimated availability of financing from Indian
financial institutions and banks was expected at only Rs 1,20,000 crore, a large gap
is left which needs to be filled through bilateral/multilateral/government funding.
It has been observed globally that project finance to developing economies flows
in where there is relatively stable macro-economic environment. These include
regulatory reforms and opening of market to competition and private investment.
Liberalized financial markets, promoting and deepening of domestic markets,
wider use of risk management tools and other financial derivative products,
improved legal framework, accounting and disclosure standards etc are some of the
other aspects which would impact commercial funding of infrastructure projects.
The India Vision document of Planning Commission envisages Foreign Direct
Investments (FDI) to contribute 35% (21% now) to gross capital formation of the
country by 2020. Government has announced a policy to encourage greater flow of
FDI into the banking sector. The recent amendment bill introduced in Parliament to
31
remove the 10% ceiling on the voting rights of shareholders of banking companies
is a move in this direction. The working group expects this to have an impact on
the capital structure of the banks in India in the coming years.
Consequent to opening up of the economy for greater trade and investment
relations with the outside world, which is imperative if the growth projections of
India Vision 2020 were to materialize, we expect the banking Industrys business
also to be driven by forces of globalization. This may be further accentuated with
the realisation of full convertibility of the rupee on capital account and consequent
free flow of capital across the borders. An increase in the income levels of the
people would naturally lead to changes in the spending pattern also. This could
result in larger investments in the areas like entertainment and leisure, education,
healthcare etc and naturally, these would attract greater participation of the banking
system.
On the basis of the projection made by the Draft 10th Five Year Plan on relevant
macro indicators such as GDP and extending the trend for a further period of three
years, it is estimated that GDP at current market prices during 2009-10 would be
Rs.61,40,000 crore. Taking into account the on-going reform measures, expected
Basel II needs, and financial dis-intermediation, the pace of expansion in the
balance sheets of banks is likely to decelerate. Thus total assets of all scheduled
commercial banks by end March 2010 may be taken as Rs.40,90,000 crore as a
working estimate. At that level, the annual composite rate of growth in total assets
of Scheduled Commercial Banks would be about 13.4 per cent to be over 2002-03
as compared to 16.7 per cent between 1994-95 and 2002-03. It will form about 65
per cent of GDP at current market prices as compared to 67 per cent in 2002-03.
On the liability side, there may be large augmentation to capital base. Reserves are
likely to increase substantially. Banks will relay more on borrowed funds. Hence,
the pace of accretion to deposits may slow down.
On the asset side, the pace of growth in both advances and investment may
slacken. However, under advances, the share of bills may increase. Similarly,
under investment, the share of others may increase. The Macro-magnitude of
Indian banking sector visualized for the year 2010 is given in Annexure
32
33
appreciable increase. Presently, Indian share in the global trade is just about 0.8%.
The long term projections for growth in international trade is placed at an average
of 6% per annum. With the growth in IT sector and other IT Enabled Services,
there is tremendous potential for business opportunities. Keeping in view the
GDP growth forecast under India Vision 2020, Indian exports can be expected to
grow at a sustainable rate of 15% per annum in the period ending with 2010. This
again will offer enormous scope to Banks in India to increase their forex business
and international presence. Globalization would provide opportunities for Indian
corporate entities to expand their business in other countries. Banks in India
wanting to increase their international presence could naturally be expected to
follow these corporates and other trade flows in and out of India.
Retail lending will receive greater focus. Banks would compete with one another to
provide full range of financial services to this segment. Banks would use multiple
delivery channels to suit the requirements and tastes of customers. While some
customers might value relationship banking (conventional branch banking), others
might prefer convenience banking (e-banking).
One of the concerns is quality of bank lending. Most significant challenge before
banks is the maintenance of rigorous credit standards, especially in an environment
of increased competition for new and existing clients. Experience has shown us
that the worst loans are often made in the best of times. Compensation through
trading gains is not going to support the banks forever. Large-scale efforts are
needed to upgrade skills in credit risk measuring, controlling and monitoring as
also revamp operating procedures. Credit evaluation may have to shift from cash
flow based analysis to borrower account behaviour, so that the state of readiness
of Indian banks for Basle II regime improves.
undergoing changes. The emphasis in future would be towards more of fee based
services rather than lending operations. Banks will compete with each other to
provide value added services to their customers.
34
Structure and ownership pattern would undergo changes. There would be greater
presence of international players in the Indian financial system. Similarly, some of
the Indian banks would become global players. Government is taking steps to
reduce its holdings in Public sector banks to 33%. However the indications are that
their PSB character may still be retained.
Mergers and acquisitions would gather momentum as managements will strive to
meet the expectations of stakeholders. This could see the emergence of 4-5 world
class Indian Banks. As Banks seek niche areas, we could see emergence of some
national banks of global scale and a number of regional players.
Corporate governance in banks and financial institutions would assume greater
importance in the coming years and this will be reflected in the composition of the
Boards of Banks.
Concept of social lending would undergo a change. Rather than being seen as
directed lending such lending would be business driven. With SME sector expected
to play a greater role in the economy, Banks will give greater overall focus in this
area. Changes could be expected in the delivery channels used for lending to small
borrowers and agriculturalists and unorganized sectors (micro credit). Use of
intermediaries or franchise agents could emerge as means to reduce transaction
costs.
Technology as an enabler is separately discussed in the report. It would not be out
of place, however, to state that most of the changes in the landscape of financial
sector discussed above would be technology driven. In the ultimate analysis,
successful institutions will be those which continue to leverage the advancements
in technology in re-engineering processes and delivery modes and offering stateof-the-art products and services providing complete financial solutions for different
types of customers.
Human Resources Development would be another key factor defining the
characteristics of a successful banking institution. Employing and retaining skilled
workers and specialists, re-training the existing workforce and promoting a culture
of continuous learning would be a challenge for the banking institutions.
35
savvy private sector banks. In the coming years, we expect to see greater flow of
foreign capital to come into the Indian banking sector. Opening up of banking
sector to global players would see banks facing global competition.
Technology is expected to be the main facilitator of change in the financial sector.
Implementation of technology solutions involves huge capital outlay. Besides the
heavy investment costs, technology applications also have a high degree of
obsolescence.
technology applications.
raising resources.
of market forces would be the determining factor for the consolidation in the
structure of these banks.
acquisitions gains momentum, we could see the emergence of a few large Indian
banks with international character. There could be some large national banks and
several local level banks.
Opening up of the financial sector from 2005, under WTO, would see a number of
Global banks taking large stakes and control over banking entities in the country.
They would bring with them capital, technology and management skills. This will
increase the competitive spirit in the system leading to greater efficiencies.
Government policy to allow greater FDI in banking and the move to amend
Banking Regulation Act to remove the existing 10% cap on voting rights of
shareholders are pointers to these developments.
The cooperative banks have played a crucial part in the development of the
economy. The primary agricultural societies which concentrate on short-term
credit and rural investment credit institutions supported by District / State level
cooperative banks have played a crucial role in the credit delivery in rural areas.
The Urban Cooperative Banks have found their own niche in urban centres. These
institutions in the cooperative sector need urgent capital infusion to remain as
sound financial entities. Cooperative sector comes under State jurisdiction while
commercial banking operations are regulated by the Reserve Bank of India. The
duality in control had weakened the supervisory set up for these institutions. It is
expected that certain amendments to the Banking Regulation Act introduced
recently in the Parliament with the objective of strengthening the regulatory
powers of the Reserve Bank of India would pave the way for strengthening of
cooperative / financial institutions. It is expected that these banks would upgrade
skills of their staff and improve the systems and procedures to compete with
commercial bank entities.
Consolidation would take place not only in the structure of the banks, but also in
the case of services. For instance, some banks would like to shed their non-core
38
business portfolios to others. This could see the emergence of niche players in
different functional areas and business segments such as housing, cards, mutual
funds, insurance, sharing of their infrastructure including ATM Network, etc.
As we move along, the concept of branch banking will undergo changes. Banks
will find that many of the functions could be outsourced more profitably without
compromising on the quality of service. Specialized agencies could come forward
to undertake Marketing and delivery functions on behalf of banks. This could see
banking products being sold outside the four walls of a branch. Banks would then
concentrate on developing new products and earning fee based income.
The composition of bank staff will change. As total computerization will render a
part of the workforce surplus, banks will go for a rightsizing exercise. Some may
resort to another round of VRS to shed excess flab while some other may go for redeployment to strengthen marketing arms. With greater use of technology and
outsourcing of services in different areas, the manpower recruitment will mostly be
in specialized areas and technology applications. With commitment shifting from
the organization to the profession, we could see greater lateral movement of
banking personnel. Training and skill development will, however, continue to be
key HR functions. With the age profile of staff undergoing changes, banks will
39
Product-wise
market share and volumes. New products on the liabilities side such as forex
linked deposits, investment-linked deposits, etc. are likely to be introduced, as
investors with varied risk profiles will look for better yields. There will be more
and more of tie-ups between banks, corporate clients and their retail outlets to
share a common platform to shore up revenue through increased volumes.
Banks will increasingly act as risk managers to corporate and other entities by
offering a variety of risk management products like options, swaps and other
aspects of financial management in a multi currency scenario. Banks will play an
active role in the development of derivative products and will offer a variety of
hedge products to the corporate sector and other investors.
For example,
Banks should
therefore outsource only those functions that are not strategic to banks business.
For instance, in the wake of implementation of 90 days delinquency norms for
classification of assets, some banks may think of engaging external agencies for
recovery of their dues and in NPA management.
41
Banks will take on competition in the front end and seek co-operation in the back
end, as in the case of networking of ATMs. This type of co-opetition will become
the order of the day as Banks seek to enlarge their customer base and at the same
time to realize cost reduction and greater efficiency.
TECHNOLOGY IN BANKING
Technology will bring fundamental shift in the functioning of banks. It would not
only help them bring improvements in their internal functioning but also enable
them to provide better customer service. Technology will break all boundaries and
encourage cross border banking business. Banks would have to undertake
extensive Business Process Re-Engineering and tackle issues like a) how best to
deliver products and services to customers b) designing an appropriate
organizational model to fully capture the benefits of technology and business
process changes brought about. c) how to exploit technology for deriving
economies of scale and how to create cost efficiencies, and d) how to create a
customer - centric operation model.
Entry of ATMs has changed the profile of front offices in bank branches.
Customers no longer need to visit branches for their day to day banking
transactions like cash deposits, withdrawals, cheque collection, balance enquiry
etc.
banking. Internet banking has also led to reduction in transaction costs for banks
to about a tenth of branch banking.
Technology solutions would make flow of information much faster, more accurate
and enable quicker analysis of data received. This would make the decision
making process faster and more efficient. For the Banks, this would also enable
development of appraisal and monitoring tools which would make credit
management much more effective. The result would be a definite reduction in
transaction costs, the benefits of which would be shared between banks and
customers.
While application of technology would help banks reduce their operating costs in
the long run, the initial investments would be sizeable. IT spent by banking and
42
together to share ATM Networks. Similarly, in the coming years, we expect to see
banks and FIs coming together to share facilities in the area of payment and
settlement, back office processing, data warehousing, etc. While dealing with
technology, banks will have to deal with attendant operational risks. This would be
a critical area the Bank management will have to deal with in future.
Payment and Settlement system is the backbone of any financial market place.
The present Payment and Settlement systems such as Structured Financial
Messaging System (SFMS), Centralised Funds Management System (CFMS),
Centralised Funds Transfer System (CFTS) and Real Time Gross Settlement
System (RTGS) will undergo further fine-tuning to meet international standards.
Needless to add, necessary security checks and controls will have to be in place. In
this regard, Institutions such as IDRBT will have a greater role to play.
43
RESEARCH
RESEARCH
METHODOLOGY
METHODOLOGY
44
Research Objectives
The present study on impact of performance appraisal system was
undertaken with the following objectives:
1.To study the performance appraisal system in surva up gramin bank.
2.To acess the degree of awareness among employers and employees
on performance appraisal in surva up gramin bank.
3.To know the satisfactory level and the comfortable level between the
Employees and superiors
4.To asses whether the appraisal is done without any bias the employees.
5.To know and identify merits and demerits of performance appraisal in surva
up gramin bank.
45
RESEARCH METHODOLOGY
RESEARCH PROBLEM
I have selected that PERFORMANCE APPRAISAL as research problem for my
summer training project.
As a research problem is the situation that causes the researcher to feel
apprehensive, confused and ill at ease. It is the demarcation of a problem area
within a certain context involving the WHO or WHAT, the WHERE, the WHEN
and the WHY of the problem situation.
RESEARCH OBJECTIVE
How productivity relates with performance appraisal. In addition, the major factors
of performance appraisal, which have taken a part in increasing productivity of the
organization.
RESEARCH DESIGN USED
As research design is simply the framework or plan for a study i.e. used as a
guide in collecting and analyzing the data. Research design can be grouped into
three categories-exploratory research, descriptive research and casual research.
I have used exploratory research design in my project.
As research design is simply the framework or plan for a study i.e. used as a guide
in collecting and analyzing the data. Therefore, we used exploratory research
design in our project. Exploratory research design consists;
46
EXPLORATORY RESEARCH
Exploratory research studies are also termed as formulating studies. The main
purpose of such studies that of formulating of the problem for more precise
investigation or of developing the working hypotheses from an operational point of
view. An Exploratory Research focuses on the discovery of ideas and is generally
based on secondary data. It consists;
Search of secondary data and literature
Survey
The quickest and most economical way is to find possible hypotheses from the
available literature. The past researcher may be suitable sources of information to
develop new hypotheses. The researcher can search them for his research purposes.
SURVEY REPORT:Survey means the survey of people who have had practical experience with the
problem to be study. These individual can be top executives, sales manager,
wholesaler and retailer processing valuable knowledge and information about the
problem environment.
RESEARCH INSTRUMENT USED
I have used the following research instruments in my project:-
47
QUESTIONNAIRE: -
A sample design is definite plan determined before any data are actually collected
for obtaining a sample from a given population. Samples can be either probability
sample or non-probability sample.
I have selected simple random sampling in my project,
SIMPLE RANDOM SAMPLING
This type of sampling is also known as chance sampling or probability sampling
where each item in the population has an equal chance of being selected in the
sample.
SAMPLE SIZE
When a survey is undertaken and when it is not possible to cover the entire
population the researcher has to answer the basic question how large should be
sample be? The sample size decision is related directly to research cost.
48
Primary data
2.
Secondary data
1. PRIMARY DATAThose data that have been observed and recorded by the researchers for the first
time in their knowledge.
Sources;
Questionnaire
Interview method
2. SECONDARY DATAThose data that have been compile by some agency other than user.
Sources;
Company profile
Magazine
Internet
Books
49
Previous report
ANALYTICAL TOOLS USED
The term analysis refers to the computation of certain measures along with
searching for patterns of relationship that exists among data group. Analysis is
essential for a scientific study and for ensuring that we have all relevant data for
making contemplated comparisons. Therefore, I have used Tabulation, Graphs &
Charts in my project.
50
Use and
Importance of
the study
51
With the results of the study the company can improve their standards of
their appraisal system
52
4. One of the best ways to have highly engaged employees is to hire them! Certain
people have a set of characteristics or attributes that increase their propensity for
Performance Appraisal(for example, some employees are more likely to have
higher levels of Performance Appraisal than others, regardless of the jobs they
choose or assignmentsthey receive). Companies should pay close attention to these
characteristics in their hiring process.
54
DATA
DATAANALYSIS
ANALYSIS
AND
AND
INTERPRETATION
INTERPRETATION
55
56
FINDINGS
FINDINGS
57
FINDINGS
The superior knows and understands the problems faced by the employees.
58
SUGGESTIONS
SUGGESTIONS AND
AND
RECOMMENDATIONS
RECOMMENDATIONS
59
non-managerial
staff
in
overall
60
CONCLUSION
CONCLUSION
61
CONCLUSION
This study suggests that 360 degree appraisal system including multiple appraisal
and developmental value based appraisal system can overcome the threat of
personal bias. The developmental oriented PAS is expected more likely to
produce positive and less likely to produce negative outcomes than the existing
PAS in both the sample study organizations that are used for control and
administration
purposes. This
62
LIMITATIONS
LIMITATIONS
63
LIMITATIONS OF STUDY
oThe sample size was confined to 50 employees so this study cannot be
regarded as full proof one.
oSome respondents hesitated to give to give actual responses; they feared that it
wont be kept confidential & management may take any action against
them.
oFew employees were not taking interest in filling the questionnaires.
oAs seen few of them do not take part in Performance Appraisal activities.
oThe findings and conclusions are based on knowledge and experience of the
respondents sometime may subject to bias.
or documents and, for whatever reason, access is denied or otherwise limited, the
reasons for this need to be described.
years [even a lifetime] to studying a single research problem, the time available to
investigate a research problem and to measure change or stability within a sample
is constrained by the due date of your assignment. Be sure to choose a topic that
does not require an excessive amount of time to complete the literature review,
apply the methodology, and gather and interpret the results. If you're unsure, talk to
your professor.
Cultural and other type of bias -- we all have biases, whether we are
reviewing how you have stated a problem, selected the data to be studied, what
may have been omitted, the manner in which you have ordered events, people, or
places and how you have chosen to represent a person, place, or thing, to name a
phenomenon, or to use possible words with a positive or negative connotation.
Note that if you detect bias in prior research, it must be acknowledged and you
should explain what measures were taken to avoid perpetuating bias.
Sample size -- the number of the units of analysis you use in your study is
dictated by the type of research problem you are investigating. Note that, if your
sample size is too small, it will be difficult to find significant relationships from the
data, as statistical tests normally require a larger sample size to ensure a
representative distribution of the population and to be considered representative of
groups of people to whom results will be generalized or transferred.
will likely require you to limit the scope of your analysis, the size of your sample,
or it can be a significant obstacle in finding a trend and a meaningful relationship.
You need to not only describe these limitations but to offer reasons why you
believe data is missing or is unreliable. However, dont just throw up your hands in
frustration; use this as an opportunity to describe the need for future research.
65
Lack of prior research studies on the topic -- citing prior research studies
forms the basis of your literature review and helps lay a foundation for
understanding the research problem you are investigating. Depending on the
currency or scope of your research topic, there may be little, if any, prior research
on your topic. Before assuming this to be true, consult with a librarian! In cases
when a librarian has confirmed that there is a lack of prior research, you may be
required to develop an entirely new research typology [for example, using an
exploratory rather than an explanatory research design]. Note that this limitation
can serve as an important opportunity to describe the need for further research.
Measure used to collect the data -- sometimes it is the case that, after
completing your interpretation of the findings, you discover that the way in which
you gathered data inhibited your ability to conduct a thorough analysis of the
results. For example, you regret not including a specific question in a survey that,
in retrospect, could have helped address a particular issue that emerged later in the
study. Acknowledge the deficiency by stating a need in future research to revise the
specific method for gathering data.
data or you are conducting a qualitative research study and gathering the data
yourself, self-reported data is limited by the fact that it rarely can be independently
verified. In other words, you have to take what people say, whether in interviews,
focus groups, or on questionnaires, at face value.
66
BIBLIOGRAPHY
BIBLIOGRAPHY
67
BIBLIOGRAPHY
BOOKS:Parek.Udai & Rao T.V., 1997, 5TH edition HUMAN RESOURCE MANAGEMENT
(SULTAN CHAND AND SONS PUBLICATION)
Mamoria C.B & Gankar G.V., 1995 , 4th edition PERSONNEL MANAGEMENT
(Himalya publication)
...
WEBSITE:1.
http://www.rbi.org.in/scripts/BS_SpeechesView.aspx?
Id=820
2.
http://www.rbi.org.in/scripts/AboutUsDisplay.aspx?
pg=RegionalRuralBanks.htm
3.
http://time4education.com/bankexams/List_of_RRBs.aspx
Reserve Bank of
India:http://www.rbi.org.in/scripts/AboutUsDisplay.aspx?
pg=RegionalRuralBanks.htm
NABARD Website
http://www.nabard.org/pdf/report_financial/Chap_V.pdf
AAPTGYAN http://aaptgyan.com/regional-rural-banks-conceptionpresent-
68
scenario#Regional_Rural_Banks_CONCEPTION_AND_THE_BRIEF_H
ISTORY_PRESENT_SCENARIO-1
NABARD DEPARTMENTS
http://www.nabard.org/departments/rrbs.asp
http://sify.com/finance/fullstory.php?id=14573295
http://upgb.com/index.htm
http://www.thehindubusinessline.com/blnus/17081705.htm
References
Arminio, J., & Creamer, D.G. (2001). What quality supervisors say about quality
supervision. College Student Affairs Journal, 21(1), 35-44.
Barr, M.J., and Associates (1993). The handbook of student affairs administration.
San Francisco: Jossey-Bass Publishers.
Brown, R.D. (1988). Performance appraisal as a tool for staff development. New
Directions for Student Services No. 43. San Francisco: Jossey-Bass.
Creamer, D.G., & Winston, R.B., Jr. (1999). The performance appraisal paradox:
An essential but neglected student affairs staffing function. NASPA Journal, 36,
248-263.
Cummings, L.L., & Schwab, D.P. (1973). Performance in organizations:
Determinants and appraisal. Glenview, IL: Scott, Foresman.
Daughtrey, A.S., & Ricks, B.R. (1988). Contemporary supervision: Managing
people and technology. New York: McGraw- Hill.
69
Gote, D., (1996). The complete guide to performance appraisal. New York:
American Management Association.
Henderson, R.I. (1984). Performance Appraisal (2nd ed.). Reston, VA: Reston
Publishing.
Janosik, S.M., Creamer, D.G., Hirt, J.B., Winston, R.B., Saunders, S.A, & Cooper,
D.L. (2003). Supervising new professionals in student affairs: A guide for
practioners. New York, NY: Brunner-Routledge.
Jones, A.P., and James, L.R. (1979). Psychological climate: Dimensions and
relations of individual and aggregated work environment perceptions.
Organizational behavior and human performance, 23, 201-250.
Kessler, H. W. (2003). Motivate and reward: Performance appraisal and incentive
systems for business success. Great Britian: Curran Publishing Services.
London, M. (2003). Job feedback: Giving, seeking, and using feedback for
performance improvement. Second Edition. London, England: Lawrence Erlbaum
Associates.
McDade, S.A. (1987). Higher education leadership: Enhancing skills through
professional development programs. ASHE-ERIC Higher Education Report, no. 5,
Washington D.C.: Association for the Study of Higher Education.
Hodgkinson, H.L. (1974, Fall). Adult Development: Implications for faculty and
administrators. Educational Record. 55 (4), 263-274.
Landy, F., Zedeck, S., and Cleveland, J.(1983). Performance measurement and
theory. New Jersey: Lawrence Erlbaum Associates, Inc.
London, M. (2003). Job Feedback: Giving, seeking, and using feedback for
performance improvement, 2nd Edition. New Jersey: Lawrence Erlbaum
Associates Publishers.
Lopez, F.M. (1968). Evaluating employee performance. Chicago, Illinois: Public
Personnel Association.
Maddux, R.B. (1993). Effective performance appraisals: Third edition. Menlo
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70
ANNEXURE
ANNEXURE
72
73
ANNEXURE
Dear Respondent,
As part of the partial fulfillment of the requirement for awarding the
Degree of Post graduation in MBA, a study is been carried out on the topic
Employee Performance Appraisal at AIRCEL. So, in that concern, I need your
kind co-operation and support with your valuable views on the topic to accomplish
the work. I assure you that all the information given by you will be kept secret and
will be used only for research purpose and not for any other matter. I shall be
highly obliged if you do the needful in this regard.
Occupation/Designation:-_________________________
Department:-___________________________________
Educational qualification:-________________________
Age:_____________
Sex: a) Male
Work experience:_____________________
QUESTIONNAIRE
1.How do you rate AIRTEL as an Organisation?
Caring
Comfortable workplace
Learning place
74
b) Female
..........
....................
..
5.Are you clear about your roles and responsibilities?
Yes
Updated
Aware
No
75
..
9.If you have any shortcoming or problem,how many times your immediate
supervisor helped you?
76
13. Do you think job rotation helps an employee to learn about different
department and help gain confidence and skills in the Company?
Yes
No
14.How often do you think Job rotation is reasonable as an employee?
15.Have you ever undergone Job enrichment process?If yes do you think that job
enrichment has a good effect on skill improvement of employee?
Yes, majorly
Yes,quite a bit
Not really
Not at all
77
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
78
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
80
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
A. Strongly Disagree
B. Disagree
C. Slightly Disagree
D. Agree
E. Strongly Agree
F. No Opinion
81