Performance-Appraisal in Sbi

A RESEARCH PROJECT REPORT
ON
“A Study on the Effectiveness of Performance
Appraisal of Employees in Banking Industry with
Special Reference to SBI Bank”
Submitted in Partial Fulfillment for the award for degree of
MASTER OF BUSINESS ADMINISTRATION

2018-2020
From
Dr. APJ ABDUL KALAM TECHNICAL UNIVERSITY, LUCKNOW
SUBMITTED BY SUBMITTED TO
PRITI Mr. Anil Kumar Yadav
M.B.A. (4TH SEM) Assistant Professor
ROLL NO. – 1851770059 KIPM-College of Management
KIPM- COLLEGE OF MANAGEMENT,

Sector-9,GIDA GORAKHPUR (UP)
DECLARATION
I Priti student of MBA 4th semester declare that the project entitled
“A Study on the Effectiveness of Performance Appraisal of
Employees in Banking Industry with Special Reference to SBI
Bank” is my own work conducted under the supervision of,
Mr. Anil Kumar Yadav
I further declare that to the best of my knowledge the project does not
contain any part of any work which has been submitted for any other
project either in this institute or in any other.
Place :
Date:………………………….. Signature of the Candidate

ACKNOWLEDGEMENT
I would like to express my appreciation and gratitude to various persons who have shared
their valuable time and made this research project possible through their direct and indirect
cooperation.
I would like to acknowledge with great pleasure, my deep sense of gratitude to my
supervisor, Mr. Anil Kumar Yadav and Dr. Deepak srivastava (Director) at
KIPM- College of Management, GIDA, Gorakhpur, for his supervision and valuable
guidance.
I am highly thankful to my parents for motivation and support throughout the period of my
study in the institute.
Date: PRITI
MBA (4th Sem.)
KIPM COLLEGE OF MANAGEMENT
GIDA
TABLE OF CONTENTS
Sr. NO. CONTENT PAGE NO.
1. PREFACE 1
2. INTRODUCTION 2
3. LITERATURE REVIEW 60
4. OBJECTIVE OF THE STUDY 62
5. SCOPE OF THE STUDY 63
6. COMPANY PROFILE 64
7. RESEARCH METHODOLOGY 82
8. DATA ANALYSIS & INTERPRETATION 85
9. FINDINGS 95
10. RECOMENDATION 100
11. SUGGESTION 101
12. LIMITATION 102
13. QUESTIONNAIRE 103
14. BIBILOGRAPHY 107

A Study on the Effectiveness of Performance Appraisal of Employees
in Banking Industry with Special Reference to SBI Bank
PREFACE
Managing human resources in today‟s dynamic environment is becoming more
and more complex as well as important. Recognition of people as a valuable
resource in the organization has led to increases trends in employee
maintenance, job security, etc
My Research project report deals with Performance Appraisal as carried out at
IDBI FEDERAL LIFE INSURANCE. In this report, I have studied
&evaluated the performance appraisal process as it is carried out in the bank.
The first section of my report deals with a detailed company profile. It includes
the company‟s history: its activities and operations, organizational structure,
etc. this section attempts to give detailed information about the company and
the nature of its functioning.
The second section deals with performance appraisal. In this section, I have
given a brief conceptual explanation to performance appraisal. It contains the
definition, process and significance of performance appraisal.
In the third section of my report, I have conducted a research study to evaluate
the process of performance appraisal at IDBI FEDERAL LIFE
INSURANCE.. This section also contains my findings, conclusions,
suggestions and feedback.
The fourth and final section of this report consists of extra information that I
related to the main contents of the report. These annexure include some graphs
and diagrams relating to the company, graphs relating to the research study and
important documents upon which the project is based.
Page 1
INTRODUCTION
Human Resource (or personnel) management, in the sense of getting
things done through people, is an essential part of every manager‟s
responsibility, but many organizations find it advantageous to establish a
specialist division to provide an expert service dedicated to ensuring that the
human resource function is performed efficiently.
“People are our most valuable asset” is a cliché, which no member of
any senior management team would disagree with. Yet, the reality for many
organizations is that their people remain undervalued, under trained and
underutilized.
Performance Appraisal is the process of assessing the performance and
progress of an employee or a group of employees on a given job and his / their
potential for future development. It consists of all formal procedures used in
the working organizations to evaluate personalities, contributions and
potentials of employees.
On the whole, the project involves research of the different departments
and their working. Research project grooms the students to be creative in the
field of the management. It helps the students to acquire necessary
conceptualization skills needed to transform original ideas in finished practical
knowledge. Actually research projects are in the transition of the student
project exposure to the corporate work, where required to perform well in the
career The student manager can really feel that how the theory matters used in
Page 2
real and practical world .Understanding the matters related to the concerned
field is extremely important to hit the target.
human resource function is performed efficiently. Modern Appraisal
Performance appraisal may be defined as a structured formal interaction
between a subordinate and supervisor, that usually takes the form of a periodic
interview (annual or semi-annual), in which the work performance of the
subordinate is examined and discussed, with a view to identifying weaknesses
and strengths as well as opportunities for improvement and skills development.
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 increases pay, bonuses, and promotions.
By the same token, appraisal results are used to identify the poorer
performers who may require some form of counselling, 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.)
Page 3
INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
human resource function is performed efficiently.
“People are our most valuable asset” is a cliché, which no member of
any senior management team would disagree with. Yet, the reality for many
organizations is that their people remain undervalued, under trained and
underutilized.
The market place for talented, skilled people is competitive and
expensive. Taking on new staff can be disruptive to existing employees. Also,
it takes time to develop „cultural awareness‟, product / process / organization
knowledge and experience for new staff members.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
Following are the various functions of Human Resource Management
that are essential for the effective functioning of the organization:
1. Recruitment
2. Selection
3. Induction
4. Performance Appraisal
Page 4
5. Training & Development
Recruitment
The process of recruitment begins after manpower requirements are
determined in terms of quality through job analysis and quantity through
forecasting and planning.
Selection
The selection is the process of ascertaining whether or not candidates
possess the requisite qualifications, training and experience required.
Induction
Induction is the technique by which a new employee is rehabilitated into
the changed surroundings and introduced to the practices, policies and purposes
of the organization.
Page 5
WHAT IS “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 employee‟s excellence in matters pertaining to his
present job and his potential for a better job.”
Once the employee has been selected, trained and motivated, he is then
appraised for his performance. Performance Appraisal is the step where the
Management finds out how effective it has been at hiring and placing
Page 6
employees. If any problems are identified, steps are taken to communicate with
the employee and remedy them.
Performance Appraisal is a process of evaluating an employees
performance in terms of its requirements.
Performance Appraisal can also be defined as the process of evaluating
the performance and qualifications of the employees in terms of the
requirements of the job for which he is employed, for purposes of
administration including placement, selection for promotions, providing
financial rewards and other actions which require differential treatment among
the members of a group as distinguished from actions affecting all members
equally.
CHARACTERISTICS
1. Performance Appraisal is a process.
2. It is the systematic examination of the strengths and weakness of an
employee in terms of his job.
3. It is scientific and objective study. Formal procedures are used in the
study.
4. It is an ongoing and continuous process wherein the evaluations are
arranged periodically according to a definite plan.
5. The main purpose of Performance Appraisal is to secure information
necessary for making objective and correct decision an employee.
Page 7
Benefits of appraisal in the organisation
(1) Estimate the overall effectiveness of employees in performing their jobs
(2) Identify strengths and weaknesses in job knowledge and skills,
(3) determine whether a subordinate‟s responsibilities can be expanded,
(4) Identify future training and development needs
(5) review progress toward goals and objectives,
(6) Determine readiness for promotion, and
(7) Motivate and guide growth and development.
OBJECTIVES OF PERFORMANCE APPRIASAL SYSTEM
The broad objectives of performance appraisal are
1. To help the employee to overcome his weaknesses and improve _his
strengths so as to enable him to achieve the desired _performance.
2. To generate adequate feedback and guidance from the _immediate
Superior to an employee working under him.
3. To contribute to the growth and development of an employee _through
helping him in realistic goal setting.
4. To provide inputs to system of rewards (comprising salary _increments,
transfers, promotions, demotions or _terminations) and salary
administration.
5. To help in creating a desirable culture and tradition in the _organisation.
6. To help the organisation to identify employees for the _purpose of
motivating, training and developing them.
Page 8
7. To generate significant, relevant, free, and valid _information about
Employees.
In short, the performance appraisal of an organisation provides
systematic Judgments to backup wage and salary administration; suggests
needed changes in one‟s behaviour, attitudes, skills, or job knowledge; and uses
it as a base for coaching and counselling the individual by his superior.
Appraising employee performance is, thus, useful for compensation,
placement, and training and development purposes.
IMPORTANCE AND PURPOSE
Performance Appraisal has been considered as the most significant an
indispensable tool for an organization, for an organization, for the information
it provides is highly useful in making decisions regarding various personnel
aspects such as promotion and merit increases. Performance measures also link
information gathering and decision making processes which provide a basis for
judging the effectiveness of personnel sub-divisions such as recruiting,
selection, training and compensation. Accurate information plays a vital role in
the organization as a whole. They help in finding out the weaknesses in the
primary areas.
Formal Performance Appraisal plans are designed to meet three needs, one of
the organization and the other two of the individual namely:
 They provide systematic judgments to back up salary increases,

transfers, demotions or terminations.
 They are the means of telling a subordinate how he is doing and
 suggesting needed changes in his behavior, attitudes, skills or job
Page 9
 knowledge. They let him know where he stands with the Boss.
 Superior uses them as a base for coaching and counseling the individual.
 On the basis of merit rating or appraisal procedures, the main objectives

of Employee Appraisal are:
 To enable an organization to maintain an inventory of the number and
quality of all managers and to identify and meet their training needs and
aspirations.
 To determine increment rewards and to provide reliable index for

promotions and transfers to positions of greater responsibility.
 To suggest ways of improving the employee s performance when he is

not found to be up to the mark during the review period.
 To identify training and development needs and to evaluate

effectiveness of training and development programmes.
 To plan career development, human resource planning based potentials.
PLANNING THE APPRAISAL
A meaningful performance appraisal is a two-way process that benefits both
the employee and the manager. For employees, appraisal is the time to find out
how the manager thinks they are performing in the job. For a manager, a formal
appraisal interview is a good time to find out how employees think they are
performing on the job. The planning appraisal strategy has to be done:
BEFORE THE APPRAISAL
1. Establish key task areas and performance goals.
2. Set performance goals for each key task area.
Page 10
3. Get the facts.
4. Schedule each appraisal interview well in advance.
DURING THE APPRAISAL
1 Encourage two-way communication.
2. Discuss and agree on performance goals for the future.
3. Think about how you can help the employee to achieve more at _work._
4. Record notes of the interview.
5. End the interview on an upbeat note
AFTER THE APPRAISAL
1. Prepare a formal record of the interview.
2. Monitor performance.
COMPONENTS OF PERFORMANCE APPRAISAL
The components that should be used in a performance appraisal system flow
directly from the specific objectives of appraisal. The following components
are being used in a number of Indian organisations.
1. Key Performance Areas (KPAs) / Key Result Areas (KRAs)
2. Tasks/targets/objectives; attributes/qualities/traits
3. Self appraisal
4. Performance analysis
5. Performance ratings
6. Performance review, discussion or counselling
Page 11
7. Identification of training / development needs
8. Ratings / assessment by appraise
9. Assessment / review by reviewing authority 10. Potential appraisal
Page 12
PROCESS OF PERFORMANCE APPRAISAL
Establishing
performance
standards
Communicating standards
and expectations
Measuring the actual

performance
Comparing with standards
Discussing results
(Providing
feedback)
Decision making –
taking corrective
actions
Page 13
ESTABLISHING PERFORMANCE STANDARDS
The first step in the process of performance appraisal is the setting up of
the standards which will be used to as the base to compare the actual
performance of the employees. This step requires setting the criteria to judge
the performance of the employees as successful or unsuccessful and the degree
of their contribution to the organizational goals and objectives. The standard set
should be clear, easily understandable and in measurable terms. In case the
performance of the employees cannot be measured, great care should be taken
to describe the standards.
COMMUNICATION THE STANDARDS
Once set, it is the responsibility of the management to communicate the
standards to all the employees of the organization. The employee should be
informed and the standard should be clearly explained to the employees. This
will help them to understand their role and to know that what exactly is
expected from them. The standard should also be communicated to the
appraisers or the evaluators and if required, the standard can also be modified
at this stage itself according to the relevant feedback from the employees or the
evaluators.
MEASURING THE ACTUAL PERFORMANCE
The most difficult part of the performance appraisal process is
measuring the actual performance the employees that what is the work done by
the employees during the specified period of time. It is a continuous process
which involves monitoring the performance throughout the year. This stage
requires the careful selection of the appropriate techniques of the measurement,
Page 14
taking care that personal bias does not affect the outcome of the process and
providing assistance rather than interfering in an employee‟s work.
HISTORY OF PERFORMANCE APPRAISAL
The history of performance appraisal is quite brief. Its roots in the early
20th century can be traced to Taylor's pioneering Time and Motion studies. But
this is not very helpful, for the same may be said about almost everything in the
field of modern human resources management.
As a distinct and formal management procedure used in the evaluation
of work performance, appraisal really dates from the time of the Second World
War - not more than 60 years ago.
Yet in a broader sense, the practice of appraisal is a very ancient art. In
the scale of things historical, it might well lay claim to being the world's second
oldest profession!
There is, says "... a basic human tendency to make judgment about those
one is working with, as well as about oneself." Appraisal, it seems, is both
inevitable and universal. In the absence of a carefully structured system of
appraisal, people will tend to judge the work performance of others, including
subordinates, naturally, informally and arbitrarily.
The human inclination to judge can create serious motivational, ethical
and legal problems in the workplace. Without a structured appraisal system,
there is little chance of ensuring that the judgments made will be lawful, fair,
defensible and accurate.
Page 15
Performance appraisal systems began as simple methods of income
justification. That is, appraisal was used to decide whether or not the salary or
wage of an individual employee was justified
The process was firmly linked to material outcomes. If an employee's
performance was found to be less than ideal, a cut in pay would follow. On the
other hand, if their performance was better than the supervisor expected, a pay
rise was in order.
Little consideration, if any, was given to the developmental possibilities
of appraisal. If was felt that a cut in pay, or a rise, should provide the only
required impetus for an employee to either improve or continue to perform
well.
Sometimes this basic system succeeded in getting the results that were
intended; but more often than not, it failed.
For example, early motivational researchers were aware that different
people with roughly equal work abilities could be paid the same amount of
money and yet have quite different levels of motivation and performance.
These observations were confirmed in empirical studies. Pay rates were
important, yes; but they were not the only element that had an impact on
employee performance. It was found that other issues, such as morale and self-
esteem, could also have a major influence the 1950s in the United States, the
potential usefulness of appraisal as tool for motivation and development was
gradually recognized. The general model of performance appraisal, as it is
known today, began from that time
Page 16
METHODS OF PERFORMANCE APPRAISAL
TRADITIONAL METHOD:
 Essay appraisal method
 Critical incidents method
 Checklist method
 Graphic rating scale
 Straight ranking method
 Group Order ranking method
 Paired comparison
MODERN METHOD:
 Behaviorally anchored rating scales (BARS)
 MBO (result oriented appraisal method)
 Group appraisal of subordinates
 Peers appraising the colleague
 Subordinates appraising the boss
 360 degree feedback method
 Assessment centers method
Page 17
TRADITIONAL METHOD
ESSAY APPRAISAL METHOD:
Under this method, the rater is asked to express strong as well as weak points
of the employee‟s behavior. This technique is normally used with a
combination of the graphic rating scale because the rater can elaborately
present the scale by substantiating an explanation for his rating. While
preparing the essay on the employee, the rater considers the following: (1) Job
knowledge & potential of the employee; (2) Employee‟s understanding of the
company‟s programs, objectives, policies etc; (3) The employee‟s relations
with the co-workers and superiors; (4) the employees general planning ,
organizing and controlling ability; (5) The attitudes and perceptions of the
employee, in general.
Essay appraisal is a non-quantitative technique. This method is advantageous in
at least one sense, i.e., The essay provides a good deal of information about the
employee and also reveals more about the evaluator. The essay appraisal
method however, suffers from the following limitations:
 It is highly subjective; the supervisor may write a biased essay. The

employees who are sycophants will be evaluated more favorably then
other employees.
 Some evaluators may be poor in writing essays on employee

performance. Others may be superficial in explanation and use flowery
language which may not reflect the actual performance of the employee.
It is very difficult to find effective writers now a days.
Page 18
RANKING METHOD
This is a relatively method of performance evaluation. Under this method ,
the ranking of an employee in a work group is done against that of another
employee. The relative position of each employee is tested in terms of his
numerical rank. It may also be done by ranking a person of his job
performance against another member of the competitive group. The
quintessence of this method is that employees are ranked according to their
levels of performance. While using this method, the evaluator is asked to rate
employees from highest to lowest on some overall criterion. Though it is
relatively easier to rank the best and the worst employees, it is very difficult to
rank the average employees. Generally, evaluators pick the top and bottom
employees first and then select the next highest and next lowest and move
towards the average employees. The longstanding limitations of this method
are :
 The „whole man‟ is compared with another „whole man‟ in this method.
In practice, it is very difficult to compare individuals possessing varied
behavioral traits.
 This method speaks only of the position where an employee stands in

his group. It does not tell anything about how much better or how much
worse an employee is when compared to another employee .
 When a large number of employees are working, ranking of individuals

becomes a difficult issue.
 There is no systematic procedure for ranking individuals in the
organizations. The ranking system does not eliminate the possibility of

snap judgments.
Page 19
PAIRED COMPARISION METHOD
Ranking become more reliable and easier under the paired comparison
method. Each worker compared with all other employees in the group; for
every trait the worker is compared with all other employees. For instance, when
there are five employees to be compared, then A‟ as performance is compared
with that of B‟s and decision is arrived at as to whose is the better or worse.
Next, B is also compared with all other. Since A is already compared with B,
this time B is compared with only C,D and E. By this method when there are
five employees, fifteen decision are made ( comparison ). The number of
decisions to be made can be determined with the help of the formulae n ( n-2 ).
Ranking the employees by the paired comparison method may be illustrated as
shown in the table 10.7.
For several individual trait, paired comparison are made, tabulated and
then rank is assigned to each worker. Through this method seems to be logical,
it is not applicable when a group is large. When the group becomes too large,
the number of comparison to be made may become frighteningly excessive. For
instance, when n=100, comparison to be made are 100 ( 100-2) = 100( 98 ) =
9800
Trait : “Quantity of Work”
As A B C D E
compared
to
A + - + -
Page 20
B - + - +
C + - + -
D - + - -
E + - + +
GRAPHIC RATING SCALE:
This is one of the oldest and the most commonly used methods for appraisal
used alongside Essay Appraisal Method. In this method, a printed form is used
for measuring both the quality and the quantity of work done by an employee.
The form has a graphic scale, indicating the various degrees of a particular
trait. The factors taken into consideration are both personal and the professional
ones in nature. It is an easy to understand and easy to use method where rating
is done in a tabular form. But then, this method is also not bias free as the
supervisor may plot the graph depending on the rapport with the employee
rather than objectively marking performance.
CRITICAL INCIDENTS METHOD:
In this traditional method of performance appraisal, the evaluator rates the
employee on the basis of critical events and how the employee reacts in such
events - essentially their behavioural patterns during those incidents. This
includes both the positive and the negative traits of the employee. This method
objectively discusses an employee‟s performance during such incidents.
However, this method has drawn a lot of flak as the superior has to make a note
Page 21
of critical incidents and the resulting employee behaviour as and when they
happen, which is difficult under the circumstances always. Again, the minor
incidents might get precedence over the major ones as every individual tends to
see things differently. Moreover, it is not very effective as every individual is
different and reacts and performs very differently in similar circumstances.
MODERN METHOD
ASSESSMENT CENTRES -
An assessment centre typically involves the use of methods like
social/informal events, tests and exercises, assignments being given to a group
of employees to assess their competencies to take higher responsibilities in the
future. Generally, employees are given an assignment similar to the job they
would be expected to perform if promoted. The trained evaluators observe and
evaluate employees as they perform the assigned jobs and are evaluated on job
related characteristics.
The major competencies that are judged in assessment centers are
interpersonal skills, intellectual capability, planning and organizing
capabilities, motivation, career orientation etc. assessment centers are also an
effective way to determine the training and development needs of the targeted
employees.
Page 22
BEHAVIORALLY ANCHORED RATING SCALES
Behaviorally Anchored Rating Scales (BARS) is a relatively new technique
which combines the graphic rating scale and critical incidents method. It
consists of predetermined critical areas of job performance or sets of behavioral
statements describing important job performance qualities as good or bad (for
eg. the qualities like inter personal relationships, adaptability and reliability,
job knowledge etc). These statements are developed from critical incidents.
In this method, an employee‟s actual job behaviour is judged against the
desired behaviour by recording and comparing the behaviour with BARS.
Developing and practicing BARS requires expert knowledge.
HUMAN RESOURCE ACCOUNTING METHOD
Human resources are valuable assets for every organization. Human resource
accounting method tries to find the relative worth of these assets in the terms of
money. In this method the Performance appraisal of the employees is judged in
terms of cost and contribution of the employees. The cost of employees include
all the expenses incurred on them like their compensation, recruitment and
selection costs, induction and training costs etc whereas their contribution
includes the total value added (in monetary terms). The difference between the
cost and the contribution will be the performance of the employees. Ideally, the
contribution of the employees should be greater than the cost incurred on them.
Page 23
THE MBO PROCESS
MBO as a mutual goal setting exercise is most appropriate for technical,
professional, supervisory, and executive personnel. In these positions, there is
generally enough latitude and room for discretion to make it possible for the
person to participate in setting his work goals, tackle new projects, and
discover new ways to solve problems. This method is generally not applied for
lower categories of workers because their jobs are usually too restricted in
scope. There is little discretionary opportunity for them to shape their jobs.
MBO may be viewed as a system of management rather than an appraisal
method. A successful installation of MBO requires written mission statements
that are prepared at the highest levels of top management. Mission statements
provide the coherence in which top-down and bottom-up goal setting appear
sensible and compatible. MBO can be applied successfully to an organisation
that has sufficient autonomy, personnel, budget allocation, and policy integrity.
Managers are expected to perform so that goals are attained by the
organisation. Too often MBO is installed top-down in a dictatorial manner with
a little or no accompanying training. If properly implemented, it serves as a
powerful and useful tool for the success of managerial performance.
MBO is a tool that is inextricably connected with team building so that the
work commitment of team members can be increased and their desire to excel
in performance can be inspired. It is important to have effective team work
among a group of managers or a group of subordinates. The group of
employees or subordinates must be looked upon as a team that needs to be
brought together. Goals should be set by manager-subordinate pairs, and also
Page 24
by teams. The basic superior subordinate relationship in an organisation is in
no way undermined in this concept of team goal setting. Lines of responsibility,
authority, and accountability remain clear.
360-DEGREE FEEDBACK
A common performance appraisal method is the 360-degree feedback. In this
scenario, whoever conducts the appraisal, such as a human resources manager,
interviews an employee & supervisor, peers and any direct reports. This
technique allows an appraiser to gain a complete profile of the employee. In
addition to gauging the workers job performance and technical skill set, an
appraiser receives in-depth feedback on the employee behavior. Measuring
areas of subjectivity, such as character and leadership skills, allows an
employer to manage an employee development.
Page 25
ERRORS IN PERFORMANCE APPRAISAL
 Leniency or severity error
 Central tendency
 Halo effect/error
 Similarity error
 Contrast error
 Shifting standards
 Influence of recent events
 Tendency to give high rating
 Length of service bias
 Personal bias
HOW TO MINIMISE ERRORS
 Clearly defined performance dimensions and standards
 Performance appraisal only for providing feedback
 Combination of methods for appraising performance
 Continuous feedback
 Many appraisers rating backed up with examples
 Appraisal of subordinates on the same performance dimensions
 Appraiser with ability to appraise
 Training of appraisers
Page 26
CHARACTERSTICS OF AN EFFECTIVE APPRAISAL SYSTEM
 Relevance
 Reliability
 Sensitivity
 Acceptability
 practicability
Modern Appraisal
Performance appraisal may be defined as a structured formal interaction
between a subordinate and supervisor, that usually takes the form of a periodic
Page 27
interview (annual or semi-annual), in which the work performance of the
subordinate is examined and discussed, with a view to identifying weaknesses
and strengths as well as opportunities for improvement and skills development.
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.)
Whether this is an appropriate use of performance appraisal - the
assignment and justification of rewards and penalties - is a very uncertain and
contentious matter.
Controversy
Few issues in management stir up more controversy than performance
appraisal.
There are many reputable sources - researchers, management.
Commentators, psychometricians - who have expressed doubts about the
validity and reliability of the performance appraisal process. Some have even
suggested that the process is so inherently flawed that it may be impossible to
perfect it.
Page 28
At the other extreme, there are many strong advocates of performance
appraisal. Some view it as potentially "... the most crucial aspect of
organizational life"
Between these two extremes lie various schools of belief. While all
endorse the use of performance appraisal, there are many different opinions on
how and when to apply it. There are those, for instance, who believe that
performance appraisal has many important employee development uses, but
scorn any attempt to link the process to reward outcomes - such as pay rises
and promotions.
This group believes that the linkage to reward outcomes reduces or
eliminates the developmental value of appraisals. Rather than an opportunity
for constructive review and encouragement, the reward-linked process is
perceived as judgmental, punitive and harrowing
For example, how many people would gladly admit their work problems if, at
the same time, they knew that their next pay rise or a much-wanted promotion
was riding on an appraisal result? Very likely, in that situation, many people
would deny or downplay their weaknesses.
Nor is the desire to distort or deny the truth confined to the person being
appraised. Many appraisers feel uncomfortable with the combined role of judge
and executioner.
Such reluctance is not difficult to understand. Appraisers often know
their appraises well, and are typically in a direct subordinate-supervisor
relationship.
Page 29
They work together on a daily basis and may, at times, mix socially.
Suggesting that a subordinate needs to brush up on certain work skills is one
thing; giving an appraisal result that has the direct effect of negating a
promotion is another.
The result can be resentment and serious morale damage, leading to
workplace disruption, soured relationships and productivity declines. On the
other hand, there is a strong rival argument which claims that performance
appraisal must unequivocally be linked to reward outcomes. The advocates of
this approach say that organizations must have a process by which rewards -
which are not an unlimited resource - may be openly and fairly distributed to
those most deserving on the basis of merit, effort and results.
There is a critical need for remunerative justice in organizations.
Performance appraisal - whatever its practical flaws - is the only process
available to help achieve fair, decent and consistent reward outcomes.
It has also been claimed that appraisees themselves are inclined to
believe that appraisal results should be linked directly to reward outcomes - and
are suspicious and disappointed when told this is not the case. Rather than
feeling relieved, appraisees may suspect that they are not being told the whole
truth, or that the appraisal process is a sham and waste of time.
The Link to Rewards
Research has reported that appraisees seem to have greater acceptance
of the appraisal process, and feel more satisfied with it, when the process is
directly linked to rewards. Such findings are a serious challenge to those who
Page 30
feel that appraisal results and reward outcomes must be strictly isolated from
each other.
There is also a group who argues that the evaluation of employees for
reward purposes, and frank communication with them about their performance,
are part of the basic responsibilities of management. The practice of not
discussing reward issues while appraising performance is, say critics, based on
inconsistent and muddled ideas of motivation
In many organizations, this inconsistency is aggravated by the practice
of having separate wage and salary reviews, in which merit rises and bonuses
are decided arbitrarily, and often secretly, by supervisors and managers
Rating tendencies of Managers in an organization vary from a 'very
lenient' rate to a 'very harsh' rate. The employees reporting to them experience
the impact of these variations. This impact becomes crucial in an environment
where employees are given performance based remuneration/ incentives.
Normalization of scores is intended to introduce greater objectivity in the
Employees Performance Management (EPM) System of an organization.
Rating Patterns of Managers
Page 31
It may be observed from the figure above that Manager 'A', compared to
Manager 'B', has the tendency to rate most of his subordinates at 7 to 8 points
on a Performance rating scale of 1 to 10. Manager 'C', on the other hand, is
highly conservative and awards given to the best of his subordinates are in the
range of 5- 6 points. Thus an average performer with Manager 'B' gets equated
with the Best employee reporting to Manager 'C' and with a low average
subordinate of Manager 'A'. The training of Managers A, B & C on the rating
norms may improve this trend marginally during the subsequent years. But
what happens to the evaluations already done by them? How has the company
management looked into this problem which has an impact on promotions,
compensations and career management of all employees? Some outstanding
performers (placed under a harsh rate like Manager 'C') may quit the
organization and some low caliber people (placed under a lenient rate like
Manager 'A') may themselves be the Managers of tomorrow. This vicious cycle
tends to boost the average performers who cling to their jobs and promote
mediocrity in the organization. A performance driven.
What does normalization mean?
Assume there are ten Managers in an organization who are reporting on 10
different executives each and these Managers, in turn, report to three different
Senior Managers, in their respective departments. In this scenario of EPM,
there are 13 different 'Appraisers' who are reporting on 110 employees in the
organization. Amongst these employees, 100 are at the same level (i.e.,
Executives) and 10 are at the level of Managers. Each of the thirteen
Appraisers has a rating style which is different from the others. So the
employees reporting to them have a high degree of variability in their
Page 32
performance appraisal scores. The process of balancing this variability is called
'Normalization'.
Normalization Process
The process comprises of the following steps:
Statistical Mean' of organizational rating pattern of all the Managers
(i.e., Appraisers) at the same level, across various departments, is computed.
Let this Mean be 'M'.
Statistical Mean for each of the Appraisers at the same level (i.e., for all
the 10 Managers in the example given above) is computed. Each Manager
should have done the Appraisal for 40 to 50 employees (may be over the last 5
years). Let this Mean be 'Mi' (I = 1 to 10).
A correction Factor (CF) for each of these Managers (Appraisers) is then
computed = Mi/M. Its value, for example, will be 1.0 if the rating pattern of a
Manager is the same as the statistical Mean.
Performance Score of each individual employee is divided by CF for
his/ her Manager to compute its normalized value. This normalized score is
utilized for all management decisions.
Performance appraisal: Do and don'ts
Appraisals! The times when employees look forward to a raise and a
promotion and the bosses, may be, not quiet so. Most feel that for bosses, this
is the time to remind you again for all the times you failed to deliver!
On a more serious note, appraisals by and large mean reviewing your
past performance (achievements) and providing you feedback for
Page 33
improvements. So, if there's been little or no performance, there'll be little or no
appraisal in your salary and position.
Appraisal cycles vary from organization to organization. Most have six-
monthly or annual reviews. Some also follow the process of a project-end
review along with the usual organization review cycle of six months or a year.
However, the important thing that some of us might discount is that
Past performance:
Go through your past performance and analyze the areas where you
excelled. While it is important not to 'tom-tom' about your achievements, yet, if
you don't accept and mention them straight on, how can others? At the same
time, do not balk at the criticism that might come your way. Be graceful in
admitting where you went wrong and seek guidance from your boss on how to
proceed henceforth.
MEANING:
Performance appraisal is necessary for the effective management and
evaluation of the organization. Appraisal helps develop individuals, improve
organizational performance, and feed into business planning. Formal appraisals
are generally conducted once in a year for all staff in the organization. Each
staff member is appraised by their line manager. directors are appraised by
their CEO,who is appraised the chairman or company owners ,depending upon
the size and structure of the organization.
Annual performance appraisal enables management and monitoring of
the standards, agreeing expectations and objectives, and delegation of the
Page 34
responsibility and tasks, staff performance appraisal also establish individual
training needs and enable organizational training needs analysis and planning.
Performance appraisal also feed into organizational annual pay and
reviews which commonly also coincides with the business planning for the
next trading year.
Performance appraisal generally reviews each individual‟s performance
against objectives and standards for the trading year agreed at the previous
appraisal meeting.
Performance appraisal is also essential for career and succession
planning for individuals, crucial jobs and for the organization as a whole.
Performance appraisal are important for staff motivation, attitude and behavior
development ,communicating and aligning individuals and organizational aims,
and fostering positive relationship between management and staff.
Performance appraisal provides a formal, recorded, a regular review of
an individual‟s performance, and a plan for future development.
Job performance appraisals –in whatever the form they take-are vital for
managing the performance of people and organizations.
Managers and appraisees commonly dislike appraisals and try to avoid
them. To those people the appraisal is daunting and time consuming. The
process is seem as a difficult administrative chore and emotionally challenging.
The annual appraisal is may be the only time since the last year that the two
people have sat down together for a meaningful one-to-one discussion. No
wonder then that appraisals are stressful –which then defeats the whole purpose
There lies the problem and remedy.
Page 35
Appraisals are easier and especially more relaxed, if the boss meets each
of the team members individually and regularly for one-to-one discussion
throughout the year.
Meaningful regular discussions about work, career ,aims, proress,
development, hopes, dreams ,life, the universe, the TV ,common interest, ete,
whatever. makes appraisal so much easier because the people know and trust
each other –which reduces all the stress and the uncertainty.
 Put off the discussion and of course they loom very large .
 So don‟t wait for the annual appraisal to sit down and talk.
 The boss or the appraisee can instigate this.
 If you are an employee with a shy boss, then take the lead.
 If you are a boss who rarely sits down and talks with people or whose
people are not to talking with their boss then set about relaxing the
atmosphere and improving relationships, Appraisals (and work)all tend

to be easier when people communicate well and know each other .
 So seat down together and talk as often as you can, and then when the
actual performance appraisals are due everyone will find the whole
process to be far more natural.quick,and easy –and a lot more productive
too.
Performance Feedback
In a performance management system, feedback remains integral to
successful practice. The feedback, however, is a discussion. Both the staff
person and his manager have an equivalent opportunity to bring information to
the dialogue. Feedback is often obtained from peers, direct reporting staff, and
Page 36
customers to enhance mutual understanding of an individual‟s contribution and
developmental needs. (This is commonly known as 360 degree feedback.) The
developmental plan establishes the organization‟s commitment to help each
person continue to expand his knowledge and skills. This is the foundation
upon which a continuously improving organization builds.
HR Challenges
Leading the adoption and implementation of a performance management
system is a wonderful opportunity for the HR professional. It challenges their
creativity, improves their ability to influence, and allows them to foster real
change in their organization.
Performance management encompasses the most important people
issues in your organization. Performance management includes the entire
relationship you have with the people you employ.
Performance management is the process of creating a work environment
or setting in which people are enabled to perform to the best of their abilities.
Performance management is a whole work system that begins when a job is
defined as needed and expectations are clearly communicated to the employee.
It ends when an employee leaves your organization. Many writers and
consultants are using the term “performance management” as a substitution for
the traditional performance appraisal system. I encourage you to think of the
term in this broader work system context.
A Performance Management System includes the following components---
 Develop clear job descriptions.
 Select appropriate people with an appropriate selection process.

Page 37
 Negotiate requirements and accomplishment-based performance
standards, outcomes, and measures.
 Provide effective orientation, education, and training.
 Provide on-going coaching and feedback.
 Conduct quarterly performance development discussions.
 Design effective compensation and recognition systems that reward
people for their contributions.
 Provide promotional/career development opportunities for staff.
 Assist with exit interviews to understand WHY valued employees leave
the organization.
Most people associate performance management with performance
appraisals, performance related pay, achievement of targets, motivating people
Page 38
and enforcing discipline. Unfortunately the above is not what performance
management is all about, though they do form a fundamental part of it.
Performance management system is a principal tool in achieving
corporate objectives in that it links those objectives with employee goals and
achievements. It focuses on improving performance through matching
outcomes against individual, departments and organizational objectives, and to
the training and development needs of employees at all organizational levels.
Managers using performance management system effectively are generally
more concerned with performance planning and improvement and performance
assessment.
Performance management system is an accepted management practice
operating within organizations because it can be a valuable process for
employees and employers alike. It provides for both recognition of high
performance and early detection of performance that is not meeting
expectations, allowing prompt remedial action to be taken.
Performance management system (PMS) has to evolve from the
performance appraisals. A well designed performance appraisal system tells
you the status of the health of an organization, but it indicates only the
symptoms of any ills. It is like a medical checkup. It tells you what is right or
wrong. However, it does not lead you to the cure of the organizational ills.
Performance Management System has to be evolved for cure and to keep the
organization healthy. Most often, we attack the symptoms rather than attacking
the root cause of the problem. A properly designed performance management
system helps us to take action for curing the organizational ills. PMS has to be
designed in such a manner that it leads to achievement of organization's goals

Page 39
and objectives and at the same time it enables people to achieve their full
potential, lead to job enrichment and job satisfaction. Ideally, all the peoples'
functions, goals and objectives should be interlinked in such a manner that it
leads to achievement of desired organizational results.
defined as needed. It ends when an employee leaves your organization. Many
writers and consultants are using the term “performance management” as a
substitution for the traditional appraisal system. I encourage you to think of the
term in this broader work system context.
Managers cite performance appraisals or annual reviews as one of their
most disliked tasks. Performance management eliminates the performance
appraisal or annual review as the focus and concentrates on the entire spectrum
of performance management and development issues. Employee performance
development, training, cross-training, the provision of challenging assignments
and regular performance feedback are included in an effective performance
management system.
Definition & Focus:
Performance management is about getting results. It is concerned with
getting the best from people and hiring them to achieve their full potential by
enabling them to recognize their roles and contributing to the goals of the
organization.
Page 40
The focus should be on how do we improve the performance of the
organization, how do we get the best out of the people, how do we help them in
achieving their objectives, thereby achieving the organizational objectives.
How do we relate their personal goals with the organizational goals? Is it
possible to chart out a reasonable career path for performers? How do we retain
good people? How to keep the attrition rate as low as possible? How to
improve the performance of average performers? What do we do with poor
performers? Why are they performing poorly? Where are we? Why are we
there? Who is responsible? When and what actions are to be taken? Where do
we want to go? How do we get there?
The above questions need to be addressed and answered and for that
organizational soul searching is necessary.
As a Human Resources or management professional, one of your major
goals is to develop the capacity of your organization and its members to
perform; you want to create a high performance organization. You lead
company efforts to create a workplace in which people can develop their full
potential. An effective performance management system, which line managers
lead and own, guarantees you will achieve your goals.
Performance Management: Both a Process and a System
defined as needed. It ends when an employee leaves your organization. Many
writers and consultants are using the term "performance management" as a
Page 41
substitute for the traditional appraisal system. I‟d like to think of the term in
this broader work system context.
The goal of performance is to achieve the company mission and vision.
Almost no one performs, for the organization, however, if his or her own
mission and vision are not accomplished as well.
As Fred Nickols, Senior Consultant with the Distance Learning
Company, says, "The blunt truth is that, if they have any work objectives at all,
most people set their own. This is the era of knowledge work and the
knowledge worker …" Many so-called "bosses" (if that term has any utility at
all) are in no position to set work objectives, to monitor their accomplishment,
or to supervise their pursuit.
The work, especially at the task level, is in the hands and the heads of
the workers. To be sure, a manager could formulate goals and objectives
having to do with improvement in work processes and the like, but if these
must be left to the workers to realize, who needs the manager? An even better
question is "Who needs work objectives?
An effective performance management system sets new employees up to
succeed, so they can help your organization succeed. An effective performance
management system provides enough guidance so people understand what is
expected of them. It provides enough flexibility and wiggle room so that
individual creativity and strengths are nurtured. It provides enough control so
that people understand what the organization is trying to accomplish.
Page 42
Nickols summarizes, "Now, in the era of knowledge work and
knowledge workers, where work is information-based and working is a mental
activity, work routines are configured by the workers in response to fluid,
Page 43
changing requirements. The task of management in this new world of work is
to enable and elicit employee contributions of value to the organization.
Benefits of performance management system
At a macro level performance management assists organizations to match
outcomes with COMPANY objectives. It provides a system for improving
ORGANIZATION performance and outcomes, within the COMPANY‟s
OBJECTIVES and policy framework, while maintaining good industrial
relations. It generates benefits throughout organizational functions and
processes.
Performance management system recognizes that people are the organization‟s
most valuable resource, and that people are the key to an innovative,
professional and service-oriented public service. Performance management
emphasizes the relationship between the management and development of
people and an effective organization, and provides fair and equitable
environment for improving performance.
Performance management SYSTEM reflects the value of people to
organizational performance, including: ---
 performance of individuals/departments Employee skill levels/gaps if
any. Employee position in the development plans.
 Corporate values, goals and ethical standards are clearly reflected in
the performance management system;
 Clear identification of expectations and responsibilities of individuals
Page 44
 Employee allocated responsibility for ensuring improvement and
performance strategies at all levels of the organization.
 Specific expectations and responsibilities of managers, supervisors,
teams and individuals for their role in the process.
 Linking the individual‟s contribution to organizational objectives
 Training and development are linked to the achievement of optimal
organizational and individual performance;
 The system is regularly reviewed, with particular attention given to key
elements (e.g. process of reviewing individual performance; provision
of helpful feedback; updating of key accountabilities, criteria and
indicators; and training and development plans);
 Accountability is assigned to senior managers to ensure that
performance, outcomes and training and development activities
(relating to individuals, teams or units) are appropriate.
 Employee work plans contain agreed, clear and measurable
performance criteria which are modified as changes occur in
organization policies, priorities or environment;
 The system enables assessment of the individual‟s contribution to the
achievement of corporate goals;
 Transparent links exist between performance assessment and
performance reward.
Page 45
EFFECTIVE PERFORMANCE MANAGEMENT SYSTEM
An effective Performance Management System should be based on:-
 Setting up KRAs(key Result areas) for the Region/Theme/Unit/Department
 Clarity of Individual Roles and Responsibilities
 Laying down Plans and Performance Indicators for each position
 Periodic assessment of performance of the individual against such Plans/
Performance Indicators
 Identifying factors facilitating and hindering achievement of Plans -
development of action plans for overcoming hindering factors and
strengthening facilitating factors
 Periodic review of role incumbents' behavior, which contributes to effective
functioning and working out action plans for developing such behavior.
 Identification of role incumbents' developmental needs and preparing plans for
staff development through training and related activities.
 Implementation and review.
Pre-requisites for Implementing an Effective Performance
Management System
 Strong commitment from top management.
 High level of participation of all concerned.
 Clear definitions of what constitutes performance in a given role. This
Page 46
Emanates from the objectives of the department and the organization. This
should also reflect the linkages of role with others.
 Identification of performance parameters and definition of
KeyPerformance Indicators (KPIs). What comprises the performance
has to be Communicated to the individual, so that he/she has an idea
about what the superior‟s expectations are.
 Consistency of application.
 Adequate organizational training to be provided to the individual to
Achieve superior performance.
 Strong commitment to regular recognition of good performance.
 Rewards and recognition should be built into the system and need not be
Linked with appraisals alone.
Page 47
Performance Development Planning is relevant for all managers, whatever their
profession, location or nationality. It is designed for those of both high and
moderate potential, for those starting their careers and for those nearing
retirement. By using the Performance Development Planning process well,
managers can help each other to raise performance across Maxx Express &
Logistics.
OBJECTIVES OF PDP
If the employees are truly perceived as the “assets” of the Organization and not
merely as a “resource” to be “deployed” and “used”, then the Employee PDPs
can serve a useful purpose of improving the productivity of this asset by
sharpening and enhancing the capabilities of individual employees and utilizing
their potential for improved performance. In the Organizational matrix the
various jobs are invariably related to and complimentary to one another. It,
therefore, stands to reason that if a properly carried out appraisal exercise is
expected to lead to improved individual performances then it should also result
in an overall improvement in the Organizational performance. Additionally, by
linking the individual objectives to the Organizational objectives and with
proper management of the entire Appraisals Exercise leading to continuous
employee development, it should be possible to bring about a quantum jump in
the Organizational performance.
If properly designed and applied the PDP system can:
 Help each employee to understand with clarity his / her role and functions.
 Be instrumental in helping the employee understand his / her own strengths
and weaknesses.
Page 48
 Help in identifying training and development needs of each employee.
 Help increase mutual understanding between the appraiser and the appraisee
leading to healthy and productive work environment.
 Provide an opportunity for the employee for goal setting and self-appraisal
leading to increased work involvement.
 Help the individual to identify him / her with the organization, its objectives
and culture leading to increased sense of belonging and commitment.
 Help identify the potential of employees for future requirements.
 Help the organization to note, recognize and reward achievements.
 Help in the identification and analysis of problems in achieving the
objectives, thus leading to finding solutions.
 Assist in a variety of personnel / personal decisions by generating data for
each employee periodically.
A good appraisal system will have as its basis clearly defined and
communicated Key Result Areas (KRAs) or Key Performance Areas (KPAs)
and will lead to improved Organizational Performance through improved
understanding, role clarity, team work, and leadership and employee
satisfaction.
PDP is about managing and improving performance and not about
completing forms. The forms, however, serve a useful purpose of recording
views and decisions which are then used to manage several processes such as
deciding on rewards, working out development inputs, career moves etc. These
records are only a means and not an end in themselves. It is, however,
Page 49
necessary that these records are created with proper understanding and with
due diligence as the validity and quality of future decisions will depend on the
information contained in these forms.
THE PERFORMANCE DEVELOPMENT PLANNING PROCESS
The Performance Development Planning process has been designed to
be systematic but non-bureaucratic and is fully integrated with Unilever‟s
career development and remuneration systems.
The Process follows an annual cycle, beginning and ending with a
Performance Development Planning discussion consisting of four steps:-
• Target setting for the year ahead;
• Building a development plan for skills and competencies;
• Establishing foundations for career planning;
• A review of the previous year‟s targets, performance and progress
against development plans.
The Company considers that individual performance and potential
appraisal forms the foundation of the development process, wherein the
manager reviews with the subordinate his / her work and progress, normally
against defined targets and provides help and guidance. This process provides
feedback; it forms a basis for counseling or coaching. It also points to training
needs and it is one major determinant of salary progress.
It is our policy to document such appraisal once a year through written
annual reports and reviews. This annual event serves the purpose of bringing
together of a continuous process of appraisal and counseling throughout the
Page 50
year. The target setting process is a JOINT one. The objective / targets are set
with a joint understanding and agreement by the manager and subordinate. The
targets are drawn from the Key Result Areas of the Department / Unit. They
are linked vertically (i.e., with the objectives of Managers and subordinates)
and horizontally (i.e. with the objectives of peers). The agreed objectives are
documented and both the manager and the subordinate retain a copy of the
objectives. They are signed off by both the manager and subordinate.
INTRODUCTION TO THE COMPRTENCIES SUMMARY
This topic provides a summary of the Reliance Securities framework. It
is designed for use in the Performance Development Planning process and is
intended to complement the „Competency Dictionary - With Examples drawn
from the businesses, which contains background to the Unilever competency
model, rationales for each of the eleven competencies and expanded behavioral
descriptions at each Work Level, together with behavioral examples taken from
the businesses. For each competency, two descriptions of the types of behavior
commonly demonstrated at each Work Level are provided. Similarly, cultural
differences may lead people to express the competencies in different way
DAP (DEVLOPMENT ACTION PLAN) LED TRAINING
Sustaining profitable growth for business and long-term value creation for our
shareholders and people requires a total commitment to:
• Exceptional standards of performance;
• working together effectively;
• A willingness to embrace new ideas and learn continuously.
Page 51
To do this we need to develop a high performance organization in which
people develop, grow and thrive, and by working together, deliver outstanding
business performance. Thus, the Performance Development planning process
has been designed.
DAP is a Development Action Plan which is chalked out during the PDP
process in line with identified skill gaps. A specific and realistic DAP can help
the FF bridge skill gaps as well as improve upon his understanding of
concepts.The Field Force Learning Academy provides for up gradation of FF
capabilities with a sharper focus, higher frequency and expanded reach of
learning.
Page 52
PERFORMANCE APPRAISAL PROCESS FOR
THE EMPLOYEES
OBJECTIVE:
To identify and categorize employees in JM cadre contributing at three
distinct levels based on performance review against last year‟s KRAs (key
result area) and assessment of competencies.
PROCESS:
Step 1: Appraiser to gather adequate data on the individual‟s performance
against predefined KRAs.
Step 2: Appraiser to schedule a meeting for performance review with the
appraisee. Discussion to take place on a one-to-one basis in an
Page 53
uninterrupted manner and it is expected that typically such a
meeting would last for 60 to 120 minutes. This discussion would be
based on performance plan documents (KRAs) agreed last year.
Step 3: Appraiser to give feedback to appraisee based on his observations with
emphasis on performance aspects where appraisee can improve.
Appraiser should avoid loaded / judgmental terms that may lead to
emotional setbacks.
Step 4: Towards conclusion, the appraiser should complete the form. This
would form the summary of discussions that took place between
appraisee and appraiser.
Step 5: The performance against KRAs is to be quantified and scored out a
maximum of 70 points. In addition, the appraiser needs to give score
against competencies defined out a maximum of 30 points. Thus each
appraisee will have total score received out a maximum of 100 points.
Step 6: Make out performance plan next year in the KRA format.
IMPORTANT
Since the subject under discussion is highly sensitive, the details of the
discussions should remain confidential between the two.
Step 7: The completed format with total score assigned based on the review
may be forwarded to the reviewer for his concurrence.
Step 8: Reviewer to review appraisals of all JM‟s in his / her area to ensure
that a fair process has taken place and no biases have crept into the
assessment.
Page 54
Step 9: Thereafter, the data has to collected at DMC / Department level for
each area. If the strength is less, appropriate aggregation at Divisional
/ Functional level may be done. For example, in R&D center,
aggregation may be done at a Divisional level. All JM‟s have to be
ranked from top to bottom on a relative basis to arrive at the final
ratings at this level. Concerned HR Manager would help the DMC /
MANCOM member in finalizing the ratings
Step 10: HR manager would summaries the data for whole of AMG and
present before business head for his concurrence before issuing letters
to individuals.
Page 55
PERFORMANCE APPRAISAL PROCESS FOR
EMPLOYEES OF MANAGERIAL CADRE
OBJECTIVE:
To identify and categorize employees of managerial cadre, in three
distinct contributory levels based on performance review against last year‟s
KRAs and assessment of competencies.
HOW TO FILL APPRAISAL FORM:
The managerial appraisal form consists of the following sections.
Section A: Review of goals achieved against KRA‟s
Section B: Feedback on managerial competencies.
Section C: Development Needs
Page 56
Section A: Review of goals achieved against KRAs
This section consists of 70 points. In this section appraisee is required to
fill details of KRAs, objectives and achievements and assign weightages
against each KRA, agreed in the beginning of the review period. Appraiser is
required to capture his/her observations and score each KRA.
Section B: Feedback on managerial competencies
This section consists of 30 points. In this section appraiser is required to
give feedback on the listed managerial competencies indicating the
performance factor that best describes the appraisee, substantiating it with
actual events/behavior.
Section C: Development needs
In this section the appraiser is required to fill in the strengths/areas of
improvements relevant to appraisee in carrying out his current job or higher
responsibilities.
REVIEW PROCESS:
The review discussion should take place on a one-to-one basis in an
uninterrupted manner and it is expected that typically such a meeting would
last for about 60 to 120 minutes. This discussion would be based on
performance plan documents (KRA‟s) agreed last year. Sequence of the
process would be as described below:-
Step 1:Appraiser to gather adequate data on the appraisee‟s performance
against predefined KRAs.
Page 57
Step2: Appraiser to schedule a meeting for performance review with the
appraisee.
Step3: Appraiser to give feedback to appraisee based on his observations with
emphasis on performance aspects where appraisee can improve.
Appraiser should avoid loaded / judgmental terms that may lead to
emotional setbacks.
Step4: Towards conclusion, the appraiser should complete the form. This
would form the summary of discussions that took place between
appraisee and appraiser.
Step5: The performance against KRAs is to be quantified and scored out of a
maximum of 70 points. In addition, the appraiser needs to give score
against competencies defined out a maximum of 30 points. Thus each
appraisee will have a total score received out a maximum of 100 points.
Important
Since the subject under discussion is highly sensitive, the details of the
discussions should remain confidential between the two.
Step6: The completed format with total score assigned based on the review may
be forwarded to the reviewer for his concurrence.
Step7: Reviewer to review appraisals of all manager‟s in his/her area to ensure
that a fair process has taken place and no biases have crept into the
assessment.
Step8: Thereafter, the data is to be collected at DMG / Department level for
each area. If the strength is less, appropriate aggregation at Divisional /
Page 58
Functional level may be done. For example, in R&D center, aggregation
may be done at a divisional level. All managers‟ have to be ranked from
top to bottom on a relative basis to arrive at the final ratings at this level
as defined below. Concerned HR manager would help the DGM /
MANCOM member in finalizing the ratings.
Step9: HR would summarize the data for whole of AMG and present before
business head for his concurrence before issuing letters to individuals.
Page 59
LITERATURE REVIEW
Performance Appraisal in its broadest context, is a managerial process
that links corporate objectives, performance standards and evaluation, to which
the performance review, or performance appraisal, are often applied (Pickett,
2003).
In its broadest sense performance appraisal serves three major purposes
within an organization: administration, development and communication
(Butler, Ferris & Napier, 1991). Administrative functioning can be viewed as
staffing, compensation, promotion, along with the systems of reward and
punishment; whilst development refers to the identification and development
potential for future performance, which is linked to personal development
planning. Finally, communication aims to provide feedback to employees
about their performance and future goals. A more negative view of performance
appraisal is offered by Ekes (1994), who claims that performance appraisal
records can be used as by an organisation to guard against cases of wrongful
dismissal.
Three broad areas are identified in the literature as more closely relating
to performance appraisal. Firstly, the development of appraisal instruments to
accurately and objectively measure human performance (Tinier, Joanie‟s &
Murphy, 2001). Secondly, a focus on supervisor and employee characteristics
and their potential bias on performance appraisal ratings (Dewberry, 2001). The
third area concentrates on the uses and types of performance appraisal systems
within organizations (Scott & Einstein, 2001).
Page 60
Approaches to performance appraisal range from relatively simple
techniques, such as ranking and traits rating, to the more complex method of
behaviourally anchored scales (Tyson & York, 2000). Techniques also vary
with regard to temporal emphasis, either focusing on the past through rating
and ranking, or using management by objectives to provide a future focus.
Deficiencies in performance appraisal processes and practices have been
highlighted (Mohr man and Mohr man, 1995), which include areas relating to
inappropriate focus, inadequate training, poor communication and subjective
criteria.
CULTURAL IMPLICATIONS
In Western organizations performance appraisal is often used to determine
employee compensation, merit pay and other organizational rewards
(Armstrong, 2001). The process can equally facilitate other human resource
management functions (Torrington, 1994). Performance appraisal can, for
example, provide information on the effectiveness of the organization‟s
selection and placement programmers, or help identify training and
development needs. Further, performance appraisal can, in leading to improved
performance, directly support organizational objectives.
Performance Appraisal is the important aspect in the organization to
evaluate the employees‟ performance. It helps in understanding the employees
work culture, involvement, and satisfaction. It helps the organization in
deciding employee‟s promotion, transfer, incentives, pay increase.
Page 61
OBJECTIVE OF THE STUDY
Seeing the importance of performance in organization, every institute
and organised structure industry are focusing and investing their money in this
direction to enhance the skills of human capital. Human capital is the main
source for any organisation and a big portion of invest envisaged in this area.
The objectives of the study are the following:
1. To identify the techniques of performance appraisal followed by
STATE BANK OF INDIA, Main Branch Gorakhpur.
2. Employee attitude towards the present appraisal system.
Page 62
SCOPE OF THE STUDY
 The scope of my study is to observe the degree of satisfaction levels of the

employer as well as the employees as per my sample size towards the
Appraisal process and Performance Appraisal Techniques adopted by the
company.
 I will also study the deviations if any, towards this effect that I will be
experiencing in my research. Apart from getting an idea of the techniques and
methods in the recruitment procedures.
 I will take a close look at the insight of corporate culture prevailing out there
in the organization. This would not only help me to aquanaut with the
corporate environment but it would also enable me to get a close look at the
various levels authority responsibility relationship prevailing in the
organization.
 Also the stipulated time for the project is insufficient to undergo an exhaustive
study about the topic assigned and moreover the scope of the topic () is wide
enough, so it is difficult to cover all the topic within the stipulated time.
Page 63
COMPANY PROFILE
History of State Bank of India
State Bank of India was incorporated on July 01, 1955. The Government of
India nationalized the Imperial Bank of India in the year 1955, with the Reserve
Bank of India taking a 60% stake, and name was changed to State Bank of
India. State Bank of India (SBI) is the largest state-owned banking and
financial services company in India.
The bank provides banking services to the customer. In addition to the banking
services, the bank through its subsidiaries, provides a range of financial
services, which include life insurance, merchant banking, mutual funds, credit
card, factoring, security trading, pension fund management and primary
dealership in the money market.
The Bank operates in four business segments, namely Treasury, Corporate/
Wholesale Banking, Retail Banking and Other Banking Business. The Treasury
segment includes the investment portfolio and trading in foreign exchange
contracts and derivative contracts. The Corporate/ Wholesale Banking segment
comprises the lending activities of Corporate Accounts Group, Mid Corporate
Accounts Group and Stressed Assets Management Group. The Retail Banking
segment consists of branches in National Banking Group, which primarily
includes personal banking activities, including lending activities to corporate
customers having banking relations with branches in the National Banking
Group.
SBI provides a range of banking products through their vast network of
branches in India and overseas, including products aimed at NRIs. The State
Bank Group, with over 16,000 branches, has the largest banking branch
Page 64
network in India. The State bank of India is the 10th most reputed company in
the world according to Forbes. The bank has 206 overseas offices spread over
27 countries. They have 22,414 branches of the parent in Colombo, Dhaka,
Frankfurt, Hong Kong, Johannesburg, London and environs, Los Angeles,
Male in the Maldives, Muscat, New York, Osaka, Sydney, and Tokyo. They
have offshore banking units in the Bahamas, Bahrain, and Singapore, and
representative offices in Bhutan and Cape Town.
In the year 2001, the SBI Life Insurance Company was started by the Bank. It
is the only Bank that has been permitted 74% stake in the insurance business.
The Bank's insurance subsidiary 'SBI Life Insurance Company' is a joint
venture with Cardif S.A in which Cardif holds 26% of the stake.
During the year 2005-06, the bank introduced 'SBI e-tax' an online tax
payments facility for direct and indirect tax payment. They also launched the
centralized pension processing. The Bank made a partnership with Tata
Consultancy Services for setup C-Edg Technologies and consulting services to
the banking, financial services and insurance industry. The bank was noted as
'The most preferred bank' in a survey by TV18 in association with AC Nielsen-
ORG Marg. Also, the Bank was voted as 'The most preferred housing loan
provider' in AWAAZ consumer awards for the year 2006.
In the customer loyalty survey 2006-07 conducted by 'Business World', the
Bank was ranked number one in all parameters of customer satisfaction, service
orientation, customer care/ call center, and customer's loyalty and home loans.
SBI Funds was judged 'Mutual fund of the year' by CNBC/TV-18/CRISL. The
Bank introduced new products and services such as web-based remittance,
instant fund transfer, online-trading and comprehensive cash management.
During the year 2007-08, the Bank launched 965 branches all over the country.
Page 65
They inaugurated a new state-of-the art Dealing Room with online connectivity
to all active forex intensive Branches at Corporate Centre in Mumbai. They
launched a new product, Construction Equipment Loan to cater to construction
Companies. Also, they introduced new products such as SBI Reverse Mortgage
Loan and SBI Home Plus in the areas of Home Loans.
During the year, the RBI transferred their entire shareholding in the Bank
representing 59.73% of the issued capital of the Bank to the Government of
India. The Bank acquired 92.03% of equity of Global Trade Finance Ltd.
Consequently; GTFL became a subsidiary of the Bank. They signed an MoU
with the Indian railways for installing ATMs at 682 railway stations. In March
2008, the Bank opened their 10,000th branch and became only the second bank
in the world to have more than 10,000 branches after China's ICBC.
During the year 2008-09, the company launched Import factoring, a new
product in association with SBI Factors & Commercial Services Ltd. They
increased the number of branches for retail sale of gold coins from 250 to 518.
Also, they re-launched Gold Deposit Scheme at 50 branches to mobilize gold
from domestic market for deployment as metal loans to jewellers.
During the year, the Bank opened their 11,111th Branch at Sonapur (Kamrup
District) in Assam. They introduced three new products viz., SBI Special Home
Loan, SBI Happy Home Loan and SBI Lifestyle in response to the stimulus
package announced by the Government of India. Also, they entered into an
exclusive arrangement with Tata Motors for handling the booking process of
Tata 'Nano' cars.
During the year, the Bank launched on their website an on-line application
form for registering Auto Loan enquiries and expeditiously monitoring and
converting these leads into Auto Loans. Also, they launched 'e-invest' for the
Page 66
ASBA (applications supported by blocked accounts) to aid investors for their
equity subscriptions, IPO and Rights applications.
During the year, the Bank set up a custodial services company namely SBI
Custodial Services Pvt. Ltd., in joint venture with Societe Generale, France.
They signed letter of intent for setting up of joint venture company for
undertaking General Insurance Business. Also, they divested 10% equity stake
in its wholly owned subsidiary SBI Pension Fund Pvt. Ltd at cost in favour of
its subsidiaries. In October 2008, the Bank signed an MoU with State General
Reserve Fund (SGRF) of Oman, for a general purpose private equity fund.
State Bank of Saurashtra (SBS), a wholly owned subsidiary of the Bank,
amalgamated with the Bank with effect from August 13, 2008. They signed a
joint venture agreement with Insurance Australia Group for undertaking
General Insurance business. Also, they signed a joint venture agreement with
Macquarie Capital Group, Australia and IFC, Washington for setting up an
Infrastructure fund of USD 3 billion for investing in various infrastructure
projects in India.
During the year 2009-10, the Bank opened 1,049 branches. In July 2009, SBI
introduced 'SBI Loan to Affluent Pensioners' enabling the government
pensioners to avail personal loans upto Rs 3 lakh. During the year, the Bank
designed a special package, the Defence Salary Package, for personnel of the
three Armed Forces i.e. the Army, Navy and Air Force who maintain their
Salary accounts with them. In June 2009, the company increased their
shareholding in Nepal SBI Bank Ltd to 55.02% and thus Nepal SBI Bank Ltd
became a subsidiary of the Bank with effect from June 14, 2009.
In May 2010, the Bank selected consortium of Elavon Incorporation, USA and
Visa International, USA as their joint venture (JV) partner for Merchant
Page 67
Acquiring Business. They set up a wholly owned subsidiary, namely SBI
Payment Services Pvt Ltd for conducting Merchant Acquiring Business.
In August 2010, State Bank of Indore was amalgamated with the Bank as per
the scheme of amalgamation approved by the Central Board.
During the year 2010-11, the Bank introduced 2 new products, namely 'Pushpa
Ullas' and 'Arthias Plus' on pilot basis. They made substantial progress in
establishing itself as a leading PE fund player of the country. Also, they signed
a Joint Venture agreement with State General Reserve Fund (SGRF) of
Sultanate of Oman, a sovereign entity, to set up a general-purpose private
equity fund with an initial corpus of USD 100 million, expandable further to
USD 1.5 billion.
During the year, the Bank opened 576 new branches besides merger of 470
branches of erstwhile State Bank of Indore. Also, they opened 14 foreign
offices during the year, taking the total to 156. In July 1, 2010, the Bank
launched their 'Green Channel Counter' at select branches across the country.
In General Insurance business, the Bank launched limited operations in April
2010 for the Corporate and Mid Corporate customers based at Mumbai, and it
was expanded to six other major locations in July 2010. In the Retail segment,
the Bank launched their Long Term Home Insurance business at Mumbai in
October 2010, which was gradually extended to cover 56 RACPCs and
RASMECCs. General Insurance SME business was launched on a pilot basis in
Mumbai and Chennai in February 2011.
During the first quarter of the financial year 2011-12, the Government of India
issued the 'Acquisition of State Bank of India Commercial & International
Bank Ltd. vide notification dated July 29, 2011. Consequent to the said
notification, the undertaking of State Bank of India Commercial &
Page 68
International stands transferred to and vest in State Bank of India with effect
from July 29, 2011.
In 2012, State Bank of India signed a Preliminary Non-Binding Memorandum
of Understanding with Russian Direct Investment Fund (RDIF), to facilitate
advancing bilateral economic cooperation and trade between Russia and India
aimed at exploring investment opportunities in both the countries. State Bank
of India (SBI) also entered into an agreement with StarAgri Warehousing Ltd
(StarAgri), India's leading agri-services & solutions provider, for Warehousing
Receipt Financing and Collateral Management Services during the year under
review. The bank launched virtual debit cards to check online fraud and
promote e-commerce.
In 2013, State Bank of India (SBI) inaugurated its 2nd branch in China in
Tianjin, a major port city in northeastern China. The bank introduced smart pre-
paid card for students, blue-collar workers.
In 2014, State Bank of In-dia launched new digital Online and self-service
banking solutions with support from Accenture. The bank also unveiled 6
digital branches.
In 2015, State Bank of India launched a RuPay Platinum debit card in
association with National Payment Corporation of India (NPCI). The bank also
introduced online facility for overdraft against FDs. SBI partners with Amazon.
SBI entered into a MoU with PayPal, an American online money transfer
services provider firm, for facilitating cross-border transactions. State Bank of
India launched SBI eforex. SBI also launched an initiative to provide doorstep
services and expedite home loans application process. State Bank of India
jointly launched a cyber crime awareness campaign.
On 26 March 2015, State Bank of India (SBI) announced that consequent upon
Page 69
the promulgation of the Insurance Laws (Amendment) Ordinance, 2014 and
subsequently passed by both the houses of parliament, the Executive
Committee of the Central Board (ECCB) of the bank has decided to initiate the
necessary action as per JV agreement for dilution of SBI's stake in SBI General
Insurance from 76% to 51% with corresponding increase of stake of IAG from
26% to 49%, including appointment of a valuer to facilitate valuation and price
discovery.
On 31 March 2015, State Bank of India (SBI) announced that the Executive
Committee of the Central Board (ECCB) of the bank has authorised divestment
of SBI's stake in SBI Life Insurance Co. Ltd. by up to 10%.
The Committee of Directors for Capital Raising of the bank at its meeting held
on 1 April 2015 considered and accorded approval to allot 10.04 crore equity
shares on preferential basis to Government of India (GoI) at an issue price of
Rs 295.59 per share aggregating Rs 2969.99 crore.
on 29 September 2015 considered and accorded approval to allot 19.65 crore
equity shares on preferential basis to Government of India (GoI) at an issue
price of Rs 274.37 per share aggregating Rs 5392.99 crore.
On 21 December 2015, State Bank of India announced that the Committee of
Directors, duly authorized by the Board authorized the bank to raise up to Rs
12000 crore by way of issue of Basel III compliant Tier II bonds, at par,
through private placement.
State Bank of India and Reliance Industries Limited (RIL) signed the
shareholders agreement on 30 June 2016 for setting up Payments Bank. The
Subscription and Shareholders' Agreement was signed by RIL as promoter with
a 70% equity contribution and SBI as joint Venture partner with 30% equity
Page 70
contribution. The Payments Bank will leverage SBI's nationwide distribution
network and risk management capabilities alongwith the substantial
investments made by RIL in its retail and telecom businesses.
On 4 July 2016, State Bank of India announced that it has sold 5% stake in
National Stock Exchange of India Limited (NSE) constituting 22.50 lakh equity
shares of NSE to Veracity Investments Limited, a Mauritius based FII, at Rs
4,050 per share for a total consideration of Rs 911.25 crore. Post this
transaction, SBI holds 5.19% stake in NSE while its subsidiary SBI Capital
Markets Limited holds another 4.33% in the NSE.
on 24 August 2016 authorized the bank to raise up to Rs 11100 crore
Additional Tier 1 capital by way of issue of Basel III compliant Perpetual Debt
instrument in USD and/or INR, at par, through private placement to overseas
and/or Indian investors.
The Executive Committee of the Central Board (ECCB) of State Bank of India
(SBI) at its meeting held on 14 October 2016 approved to dilute up to 5% stake
of SBI in its subsidiary SBI Life Insurance Company Limited to a non-
promoter entity.
On 25 October 2016, SBI announced that it has issued and allotted 25,000 AT1
Basel III compliant Non-convertible, Perpetual, Subordinated, Unsecured Debt
instrument in the nature of debenture, of face value Rs 10 lakh each at par
through private placement bearing coupon at 8.39% p.a. payable annually with
call option after 5 years or any coupon payment date thereafter aggregating to
Rs 2500 crore in third tranche.
The Executive Committee of the Central Board (ECCB) of State Bank of India
at its meeting held on 9 December 2016 approved divestment of 3.9 crore
Page 71
equity shares constituting 3.9% stake in SBI Life Insurance Company Ltd. at a
price of Rs460 per share, subject to all regulatory approvals.
On 17 January 2017, SBI announced that it has concluded the issue of USD
500 million Fixed Rate Senior Unsecured Notes having a maturity of 5 years at
a coupon of 3.25 percent payable semi-annually under Regulation-S. The bonds
will be issued through the bank's London Branch and listed on Singapore Stock
Exchange.
The Committee of Directors for Capital Raising of State Bank of India
considered and approved on 20 January 2017 by circulation the allotment of
21.07 crores equity shares at an issue price of Rs 269.59 per share on
preferential basis to Government of India aggregating Rs 5680.99 crore.
The Executive Committee of the Central Board of State Bank of India at its
meeting held on 15 March 2017 accorded approval for infusing additional
capital of up to Rs 1160.04 crore in credit card joint venture companies viz.
SBI Cards & Payment Services Ltd. and GE Capital Business Process
Management Services Ltd. through purchase of equity shares from GE Capital
so as to increase the bank's stake in both the companies to 74%.
SBI merged five of its associate banks viz. State Bank of Bikaner & Jaipur,
State Bank of Mysore, State Bank of Travancore, State Bank of Patiala and
State Bank of Hyderabad and Bhartiya Mahila Bank with itself with effect from
1 April 2017. In February 2017, the Union Cabinet approved the acquisition by
State Bank of India of its subsidiary banks namely State Bank of Bikaner and
Jaipur, State Bank of Mysore, State Bank of Travancore, State Bank of Patiala
and State Bank of Hyderabad.
On 8 June 2017, State Bank of India (SBI) announced closure of qualified
institutional placement of equity shares. The bank successfully rose about Rs
Page 72
15000 crore from issue of 52.21 crores equity shares at a price of Rs 287.25 per
share to qualified institutional buyers.
The Central Board of State Bank of India at its meeting held on 27 December
2017 accorded approval to raise Additional Tier 1 capital by way of issuance of
Basel III compliant debt instrument in USD and/or INR to the tune of Rs 8000
crore from domestic/international market including rupee denominated Masala
Bonds till 31 March 2018.
The Executive Committee of the Central Board of State Bank of India at its
meeting held on 8 January 2018 approved long term fund raising in single or
multiple tranches up to USD 2 billion under Reg-S/144A, through a public
offer and/or private placement of senior unsecured notes in US Dollar or any
other convertible currency during FY 2018 and FY 2019.
The Executive Committee of Central Board of State Bank of India at its
meeting held on 17 January 2018 approval the proposal for issuance of long
term bonds of Rs 20000 crore for financing of infrastructure and affordable
housing in domestic and overseas market in FY 2018 and FY 2019.
The Committee of Directors for Capital Raising of State Bank of India at its
meeting held on 16 February 2018 accorded its approval for preferential
allotment of 29.25 crore equity shares at Rs 300.82 per share (including a
premium of Rs 299.82 per share) to Government of India (GoI) aggregating Rs
8800 crore.
State Bank of India (SBI) is that country's largest commercial bank. The
government-controlled bank--the Indian government maintains a stake of
nearly 60 percent in SBI through the central Reserve Bank of India--also
operates the world's largest branch network, with more than 13,500 branch
offices throughout India, staffed by nearly 220,000 employees. SBI is also
Page 73
present worldwide, with seven international subsidiaries in the United States,
Canada, Nepal, Bhutan, Nigeria, Mauritius, and the United Kingdom, and more
than 50 branch offices in 30 countries. Long an arm of the Indian government's
infrastructure, agricultural, and industrial development policies, SBI has been
forced to revamp its operations since competition was introduced into the
country's commercial banking system. As part of that effort, SBI has been
rolling out its own network of automated teller machines, as well as developing
anytime-anywhere banking services through Internet and other technologies.
SBI also has taken advantage of the deregulation of the Indian banking sector
to enter the bancassurance, assets management, and securities brokering
sectors. In addition, SBI has been working on reigning in its branch network,
reducing its payroll, and strengthening its loan portfolio. In 2003, SBI reported
revenue of $10.36 billion and total assets of $104.81 billion.
Colonial Banking Origins in the 19th Century
The establishment of the British colonial government in India brought with it
calls for the formation of a Western-style banking system, if only to serve the
needs and interests of the British imperial government and of the European
trading houses doing business there. The creation of a national banking system
began at the beginning of the 19th century.
The first component of what was later to become the State Bank of India was
created in 1806, in Calcutta. Called the Bank of Calcutta, it was also the
country's first joint stock company. Originally established to serve the city's
interests, the bank was granted a charter to serve all of Bengal in 1809,
becoming the Bank of Bengal. The introduction of Western-style banking
instituted deposit savings accounts and, in some cases, investment services. The
Bank of Bengal also received the right to issue its own notes, which became
Page 74
legal currency within the Bengali region. This right enabled the bank to
establish a solid financial foundation, building an interest-free capital base.
The spread of colonial influence also extended the scope of government and
commercial financial influence. Toward the middle of the century, the imperial
government created two more regional banks. The Bank of Bombay was
created in 1840, and was soon joined by the Bank of Madras in 1843. Together
with the Bank of Bengal, they became known as the "presidency" banks.
All three banks were operated as joint stock companies, with the imperial
government holding a one-fifth share of each bank. The remaining shares were
sold to private subscribers and, typically, were claimed by the Western
European trading firms. These firms were represented on each bank's board of
directors, which was presided over by a nominee from the government. While
the banks performed typical banking functions, for both the Western firms and
population and members of Indian society, their main role was to act as a lever
for raising loan capital, as well as help stabilize government securities.
The charters backing the establishment of the presidency banks granted them
the right to establish branch offices. Into the second half of the century,
however, the banks remained single-office concerns. It was only after the
passage of the Paper Currency Act in 1861 that the banks began their first
expansion effort. That legislation had taken away the presidency banks'
authority to issue currency, instead placing the issuing of paper currency under
direct control of the British government in India, starting in 1862.
Yet that same legislation included two key features that stimulated the growth
of a national banking network. On the one hand, the presidency banks were
given the responsibility for the new currency's management and circulation. On
the other, the government agreed to transfer treasury capital backing the
Page 75
currency to the banks--and especially to their branch offices. This latter feature
encouraged the three banks to begin building the country's first banking
network. The three banks then launched an expansion effort, establishing a
system of branch offices, agencies, and sub-agencies throughout the most
populated regions of the Indian coast, and into the inland areas as well. By the
end of the 1870s, the three presidency banks operated nearly 50 branches
among them.
Funding National Development in the 20th Century
The rapid growth of the presidency banks came to an abrupt halt in 1876, when
a new piece of legislation, the Presidency Banks Act, placed all three banks
under a common charter--and a common set of restrictions. As part of the
legislation, the British imperial government gave up its ownership stakes in the
banks, although they continued to provide a number of services to the
government, and retained some of the government's treasury capital. The
majority of that, however, was transferred to the three newly created Reserve
Treasuries, located in Calcutta, Bombay, and Madras. The Reserve Treasuries
continued to lend capital to the presidency banks, but on a more restrictive
basis. The minimum balance now guaranteed under the Presidency Banks Act
was applicable only to the banks' central offices. With branch offices no longer
guaranteed a minimum balance backed by government funds, the banks ended
development of their networks. Only the Bank of Madras continued to grow for
some time, supplied as it was by the influx of capital from development of
trade among the region's port cities.
The loss of the government-backed balances was soon compensated by India's
rapid economic development at the end of the 19th century. The building of a
national railroad network launched the country into a new era, seeing the rise of
Page 76
cash-crop farming, a mining industry, and widespread industrial development.
The three presidency banks took active roles in financing this development.
The banks also extended their range of services and operations, although for the
time being were excluded from the foreign exchange market.
By the beginning of the 20th century, India's banking industry boasted a host of
new arrivals, and particularly foreign banks authorized to exchange currency.
The growth of the banking sector, and the development of indigenous banks, in
turn created a need for a larger "bankers' bank." At the same time, the Indian
government had outgrown its colonial background and now required a more
centralized banking institution. These factors led to the decision to merge the
three presidency banks into a new, single and centralized banking institution,
the Imperial Bank of India.
Created in 1921, the Imperial Bank of India appeared to inaugurate a new era in
India's history--culminating in its declaration of independence from the British
Empire. The Imperial Bank took on the role of central bank for the Indian
government, while acting as a bankers' bank for the growing Indian banking
sector. At the same time, the Imperial Bank, which, despite its role in the
government financial structure remained independent of the government,
carried on its own commercial banking operations.
In 1926, a government commission recommended the creation of a true central
bank. While some proposed converting the Imperial Bank into a central
banking organization for the country, the commission rejected this idea and
instead recommended that the Imperial Bank be transformed into a purely
commercial banking institution. The government took up the commission's
recommendations, drafting a new bill in 1927. Passage of the new legislation
did not occur until 1935, however, with the creation of the Reserve Bank of
Page 77
India. That bank took over all central banking functions.
The Imperial Bank then converted to full commercial status, which accordingly
allowed it to enter a number of banking areas, such as currency exchange and
trustee and estate management, from which it had previously been restricted.
Despite the loss of its role as a government banking office, the Imperial Bank
continued to provide banking services to the Reserve Bank, particularly in areas
where the Reserve Bank had not yet established offices. At the same time, the
Imperial Bank retained its position as a bankers' bank.
Into the early 1950s, the Imperial Bank grew steadily, dominating the Indian
commercial banking industry. The bank continued to build up its assets and
capital base, and also entered a new phase of national expansion. By the middle
of the 1950s, the Imperial Bank operated more than 170 branch offices, as well
as 200 sub-offices. Yet the bank, like most of the colonial government, focused
primarily on the country's urban regions.
By then, India had achieved its independence from Britain. In 1951, the new
government launched its first Five Year Plan, targeting in particular the
development of the country's rural areas. The lack of a banking infrastructure in
these regions led the government to develop a state-owned banking entity to fill
the gap. As part of that process, the Imperial Bank was nationalized and then
integrated with other existing government-owned banking components. The
result was the creation of the State Bank of India, or SBI, in 1955.
The new state-owned bank now controlled more than one-fourth of India's total
banking industry. That position was expanded at the end of the decade, when
new legislation was passed providing for the takeover by the State Bank of
eight regionally based, government-controlled banks. As such the Banks of
Bikaner, Jaipur, Idnore, Mysore, Patiala, Hyderabad, Saurashtra, and
Page 78
Travancore became subsidiaries of the State Bank. Following the 1963 merger
of the Bikaner and Jaipur banks, their seven remaining subsidiaries were
converted into associate banks.
In the early 1960s, the State Bank's network already contained nearly 500
branches and sub-offices, as well as the three original head offices inherited
from the presidency bank era. Yet the State Bank now began an era of
expansion, acting as a motor for India's industrial and agricultural development,
that was to transform it into one of the world's largest financial networks.
Indeed, by the early 1990s, the State Bank counted nearly 15,000 branches and
offices throughout India, giving it the world's single largest branch network.
SBI played an extremely important role in developing India's rural regions,
providing the financing needed to modernize the country's agricultural industry
and develop new irrigation methods and cattle breeding techniques, and
backing the creation of dairy farming, as well as pork and poultry industries.
The bank also provided backing for the development of the country's
infrastructure, particularly on a local level, where it provided credit coverage
and development assistance to villages. The nationalization of the banking
sector itself, an event that occurred in 1969 under the government led by Indira
Gandhi, gave SBI new prominence as the country's leading bank.
Even as it played a primary role in the Indian government's industrial and
agricultural development policies, SBI continued to develop its commercial
banking operations. In 1972, for example, the bank began offering merchant
banking services. By the mid-1980s, the bank's merchant banking operations
had grown sufficiently to support the creation of a dedicated subsidiary, SBI
Capital Markets, in 1986. The following year, the company launched another
subsidiary, SBI Home Finance, in a collaboration with the Housing
Page 79
Development Finance Corporation. Then in the early 1990s, SBI added
subsidiaries SBI Factors and Commercial Services, and then launched
institutional investor services.
Competitor in the 21st Century
SBI was allowed to dominate the Indian banking sector for more than two
decades. In the early 1990s, the Indian government kicked off a series of
reforms aimed at deregulating the banking and financial industries. SBI was
now forced to brace itself for the arrival of a new wave of competitors eager to
enter the fast-growing Indian economy's commercial banking sector. Yet years
as a government-run institution had left SBI bloated--the civil-servant status of
its employees had encouraged its payroll to swell to more than 230,000. The
bureaucratic nature of the bank's management left little room for personal
initiative, nor incentive for controlling costs.
The bank also had been encouraged to increase its branch network, with little
concern for profitability. As former Chairman Dipankar Baku told
the Banker in the early 1990s: "In the aftermath of bank nationalisation
everyone lost sight of the fact that banks had to be profitable. Banking was
more to do with social policy and perhaps that was relevant at the time. For the
last two decades the emphasis was on physical expansion."
Under Baku, SBI began retooling for the new competitive environment. In
1994, the bank hired consulting group McKinsey & Co. to help it restructure its
operations. McKinsey then led SBI through a massive restructuring effort that
lasted through much of the decade and into the beginning of the next, an effort
that helped SBI develop a new corporate culture focused more on profitability
than on social and political policy. SBI also stepped up its international trade
operations, such as foreign exchange trading, as well as corporate finance,
Page 80
export credit, and international banking.
SBI had long been present overseas, operating some 50 offices in 34 countries,
including full-fledged subsidiaries in the United Kingdom, the United States,
and elsewhere. In 1995 the bank set up a new subsidiary, SBI Commercial and
International Bank Ltd., to back its corporate and international banking
services. The bank also extended its international network into new markets
such as Russia, China, and South Africa.
Back home, in the meantime, SBI began addressing the technology gap that
existed between it and its foreign-backed competitors. Into the 1990s, SBI had
yet to establish an automated teller network; indeed, it had not even automated
its information systems. SBI responded by launching an ambitious technology
drive, rolling out its own ATM network, then teaming up with GE Capital to
issue its own credit card. In the early 2000s, the bank began cross-linking its
banking network with its ATM network and Internet and telephone access,
rolling out "anytime, anywhere" banking access. By 2002, the bank had
succeeded in networking its 3,000 most profitable branches.
The implementation of new technology helped the bank achieve strong profit
gains into the early years of the new century. SBI also adopted new human
resources and retirement policies, helping trim its payroll by some 20,000,
almost entirely through voluntary retirement in a country where joblessness
remained a decided problem.
Page 81
RESEARCH METHODOLOGY
RESEARCH
The study of research method provides you with the knowledge and
skills you need to solve the problem and meet the challenges of the fast- based
decision. Marketing environment we define Business Research as a systematic
inquiry whose objective is to provide information to solve managerial problem.
It seeks to find explanation to unexplored phenomena to clarify the
doubtful facts and to correct the misconceived facts.
TYPES OF RESEARCH
DESCRIPTIVE RESEARCH
Descriptive study is a fact- finding investigation with adequate
interpretation. It is the simplest type of research. It is more specific than an
explanatory study, as it has focus on particular aspect of the problem studied. It
is designed to get her descriptive information and provide information for
formulating more sophisticated studies. Data are collected by using one or
more appropriate method, observation, interviewing and mail questionnaire.
TYPE OF DATA USED
There are basically two types of Data
 Primary Data
 Secondary Data
Page 82
PRIMARY DATA
Primary Data is first hand information that the researcher collects. It helps
in collecting useful and most accurate information that is needed for the
researcher to do his research.
SOURCES OF PRIMARY DATA
 Questionnaire
 Interview Schedule
SECONDARY DATA
Secondary data is what the researcher collects from different sources. It also
help researcher to get elaborate information to do his research.
SOURCES OF SECONDARY DATA
 Internet
 Journals
TARGET GROUP/ POPULATION
As this research is based on Customer perception my Target group is
newsreaders.
AREA OF STUDY
Gorakhpur city
Page 83
TOOLS FOR DATA COLLECTION
The Various method of Data gathering involves the use of questionnaire as
primary data. These are called tools or instrument of data collection.
SAMPLE SIZE
100 respondents.
Page 84
DATA ANALYSIS AND INTERPRETATION
Q.1. What is your age ?
Age Percentage
25-35 years 35
35-50 years 40
Above 50 years 25
TOTAL 100
100
90
80
70
60
Percentage
50
40
40 35
30 25
20
10
0
25-35 years 35-50 years Above 50 years
Interpretation :
According to above table 35% respondents are of 25-35 years of age,
40% respondents are of age 35-50 years of age, 25% respondents are of age
above 50 years.
Page 85
Q.2 What is your Sex ?
Sex Percentage
Male 70
Female 30
TOTAL 100
30%
70%
Male Female
Interpretation :
According to above table 70% readers are male and 30% are females.
Page 86
Q3. There is clarity in the role that you perform in my organization?
Role Clarity Percentage

Agree 60
Strongly Agree 33
Somewhat Agree 7
Disagree 0
Strongly Disagree 0
TOTAL 100
100
90
80
70
60
Percentage
60
50
40 33
30
20
10 7
0 0
0
Agree Strongly Agree Somewhat Disagree Strongly
Agree Disagree
Interpretation :
According to survey 60% agree that there is clarity in role that they perform in
organization, 33% strongly agree with this, 7% somewhat agree, 0% disagree
and 0% strongly disagree that there is clarity in role that they perform in
organization.
Page 87
Q4. Are you clear with the main purpose of the job that you are
performing?
Job Clarity Percentage

Agree 45
Strongly Agree 40
Somewhat Agree 13
Disagree 2
Strongly Disagree 0
TOTAL 100
100
90
80
70
Percentage
60
50 45
40
40
30
20 13
10
2 0
0
Agree Disagree
Interpretation :
According to survey 45% agree that they know about the purpose of their job,
13% strongly agree, 40% somewhat agree, 2% disagree and 0% strongly
disagree that they know about the purpose of their job.
Page 88
Q5. The level of involvement of employees in the organization is clearly
defined?
Employee Involvement Percentage

Agree 55
Strongly Agree 25
Somewhat Agree 19
Disagree 1
Strongly Disagree 0
TOTAL 100
100
90
80
70
Percentage
60 55
50
40
30 25
19
20
10
1 0
0
Agree Disagree
Interpretation :
According to survey 55% agree that there level of involvement of employees in
the organization is clearly defined, 19% strongly agree, 25% somewhat agree,
1% disagree and 0% strongly disagree that there level of involvement of
employees in the organization is clearly defined.
Page 89
Q6. The KRA’s/ targets set for me are realistic and are defined in the
beginning.
Defined KRA Percentage

Agree 47
Strongly Agree 0
Somewhat Agree 53
Disagree 0
Strongly Disagree 0
TOTAL 100
100
90
80
70
Percentage
60 53
50 47
40
30
20
10
0 0 0
0
Agree Disagree
Interpretation :
According to survey 47% agree that the target assigned is clearly defined, 53%
strongly agree, 0% somewhat agree, 0% disagree and 0% strongly disagree that
the target assigned is clearly defined.
Page 90
Q7. The training needs of the employees are identified through the current
PMS?
Training Need Identification Percentage

Agree 57
Strongly Agree 0
Somewhat Agree 43
Disagree 0
Strongly Disagree 0
TOTAL 100
100
90
80
70
Percentage
60 57
50 43
40
30
20
10
0 0 0
0
Agree Disagree
Interpretation :
According to survey 57% agree that the training needs of the employees are
identified through the current PMS, 43% strongly agree, 0% somewhat agree,
0% disagree and 0% strongly disagree that the training needs of the employees
are identified through the current PMS.
Page 91
Q8. PMS led training fills up the gaps identified. And enhances my
performance.
Gap Identification Percentage

Agree 33
Strongly Agree 0
Somewhat Agree 67
Disagree 0
Strongly Disagree 0
TOTAL 100
100
90
80
70 67
Percentage
60
50
40 33
30
20
10
0 0 0
0
Agree Disagree
Interpretation :
According to survey 33% agree that PMS led training fills up the gaps
identified. And enhances my performance, 67% strongly agree, 0% somewhat
agree, 0% disagree and 0% strongly disagree that PMS led training fills up the
gaps identified. And enhances my performance.
Page 92
Q9. PMS led Training also improves the quality of my work.
Quality Enhancement Percentage

Agree 37
Strongly Agree 15
Somewhat Agree 45
Disagree 3
Strongly Disagree 0
TOTAL 100
100
90
80
70
Percentage
60
50 45
40 37
30
20 15
10 3
0
0
Agree Disagree
Interpretation :
According to survey 37% agree that PMS led Training also improves the
quality of my work, 45% strongly agree, 15% somewhat agree, 0% disagree
and 0% strongly disagree that PMS led Training also improves the quality of
my work.
Page 93
Q10. There is a buddy or mentoring system in place. It provides on-going
coaching and feedback.
Role Clarity Percentage

Agree 0
Strongly Agree 3
Somewhat Agree 43
Disagree 54
Strongly Disagree 0
TOTAL 100
100
90
80
70
Percentage
60 54
50 43
40
30
20
10 3
0 0
0
Agree Disagree
Interpretation :
According to survey 0% agree that there is a buddy or mentoring system in
place. It provides on-going coaching and feedback, 3% strongly agree, 43%
somewhat agree, 54% disagree and 0% strongly disagree that there is a buddy
or mentoring system in place. It provides on-going coaching and feedback.
Page 94
FINDINGS
 From the questionnaire and from the responses of the sample, one can
see that IDBI FEDERAL LIFE INSURANCE. and Forwarders has a
scientific PMS in place which is not obsolete and is an integrated
approach of achieving outstanding performance.
 There is job clarity and role clarity among employees. They are well
aware of requirements and accomplishment-based performance
standards, outcomes, and measures.
 The KRA‟s are well defined and quantified at the initial level only.
Employees know what they‟re supposed to do.
 The training needs are also identified through the results of the
appraisals and an action plan is chalked out for them accordingly.
Individual training needs are well aligned with the organizations needs.
 Employees feel that DAP led training identifies the gaps in their
actual performance viz- a- viz their expected performance and also
focuses on filling up these gaps.
 As for the mentoring and coaching program is concerned, there is no
such program present in the organization.
 PMS, here is an annual activity and takes place at the end of year
(December – January).
 No interim discussions are held to discuss the ongoing performance of
employees. If supervisors are giving employees frequent feedback and
coaching, performance reviews can change from negative, evaluative,
Page 95
one-sided presentations to positive, planning meetings. Held
quarterly, employees always know how they are performing and their
next goals and challenges.
 There is no 360 degree feedback prevailing in the organization.
 As for the compensation is concerned, there is a link between
performance and compensation.
 The organization is highly performance driven.
 It also Provide promotional/career development opportunities for
staff.
 There is a distinction that can be made between performers and non
performers.
 The PMS is free from biases and affects the employee performance due
to the incentives attached.
 Most of the workers agreed that the company is eager in recognizing and
acknowledging their work.
 The study reveals that there is a good relationship exists among employees.
 Majority of the employees agreed that there job security to their present job.
 The company is providing good safety measures for ensuring the employees
safety.
Page 96
 From the study it is clear that most of employees agrees to the fact that
performance appraisal activities and support from the co-workers in helpful
to get motivated.
Page 97
CONCLUSION
The study conducted on “IDBI FEDERAL LIFE INSURANCE.” aims at
highlighting its impact on the performance levels of the employees.
 Performance management encompasses the most important people issues in

your organization. It is the process of creating a work environment or
setting in which people are enabled to perform to the best of their abilities.
It reflects the value of people to organizational performance, including: ---
 Performance of individuals / departments
 Employee skill levels / gaps if any.
 Clear identification of expectations and responsibilities of

individuals.
 The analysis shows that PMS led training improves the quality of work in
the organization. It is connected with variable part of compensation & it is
capable of differentiating between the performers and non performers.
 Through this research, I have found that there is job clarity and role clarity
among employees. They are well aware of requirements and
accomplishment-based performance standards, outcomes, and measures. &
PMS, here is an annual activity and takes place at the end of year (December –
January).
 Communication was found to be a contributing factor in motivating
employees, and a company with effective communication will help make
employees feel more involved and appreciated. If employees have a greater
Page 98
respect for their company and are satisfied with the way information is
relayed to them, they will be more motivated in the workplace and their
work will improve as a result.
 The amount of communication between managers and employees is very
critical, and overall employee motivation can depend on how much they
feel the manager cares about them as individuals and values their work as
well.
 There is definitely room for improvement in the quality of communication
at the company.
 The respondents of the questionnaire in the “low-income” demographic
were less motivated and were slightly more critical of the quality of
communication in the company, management styles, and the company‟s
effort to offer achievable and worthwhile incentives.
 They felt more strongly than the higher-income demographic about the
ability of financial incentives, achieving recognition and credit, and gaining
proficiency at their job to motivate them to do their best work.
 By receiving a higher wage, these employees‟ overall motivation levels
would increase because they would no longer be lacking that important
motivational factor and having to compensate.
Page 99
RECOMMENDATIONS
 Provide on-going coaching and feedback. People need ongoing,
consistent feedback that addresses both their strengths and the weaken areas of
their performance. Effective feedback focuses more intensely on helping
people build on their strengths. Feedback is a two-way process that encourages
the employee to seek help. Feedback is usually more effective when requested.
Create a work environment in which people feel comfortable asking, "How do
you think I‟m doing?"
 Provide the opportunity for broader feedback. Use a 360 degree
performance feedback system that incorporates feedback from the employee's
peers, customers, and people who may report to him.
 Conduct quarterly performance development discussions. If
supervisors are giving employees frequent feedback and coaching, performance
reviews can change from negative, evaluative, one-sided presentations to
positive, planning meetings. Held quarterly, employees always know how they
are performing and their next goals and challenges.
 Challenging Assignments / Projects: The objective behind assigning
challenging tasks or assignments is to enable an individual to enrich / broaden
his or her experience, while working with others or individually. These
assignments also provide an opportunity for employees to network with other
employees, who may be helpful in solving future business problems.
Page 100
SUGGESTIONS
 Job Rotation: The main objective of job rotation is to add to the capabilities
of an individual by:
 Assigning him / her a new role in the same function;
 Assigning him / her new role in a different function.
 Job Enrichment / Enlargement: Job enrichment/ enlargement involves
expanding an employee's responsibilities beyond their normal scope. This
approach is appropriate for employees who are exceeding the performance
expectations of their current position and who will benefit from expanded
responsibilities not involving a job change. An example of job enrichment
would be an assignment as a mentor or coach to a less experienced person.
 Provide more competitive wages to the “low-income” segment of the
company.
 Increase the possibility of employee promotion in the company by
promoting from within rather than hiring from the outside.
 Encourage more frequent communication between managers and their
employees, and implement team-building and communication exercises to
help strengthen the relationship and trust between the two groups.
 Put effort into ensuring that employees are properly credited and receive
recognition for the good work they do in their respective positions.
 Offer more opportunities for job advancement and education, in order to
allow employees to completely master their respective positions.
Page 101
LIMITATIONS OF STUDY
 A few organizations did not publish the exact values for each question
especially in sales turnover and other similar figures.
 The study was conducted in the Gorakhpur area only and confined to
the freight division of the logistics management.
 Certain monetary values were not being filled by organizations.
 Due to organizations security reasons documents like Bills, Warehouse

Bills, etc could not be gained.
 Most of the questionnaire answers were filled over internet email facili
tyTherefore contact was through phone and emails.
Page 102
ANNEXURE
Q.1. What is your age ?
Age Tick Mark

25-35 years
35-50 years
Above 50 years
What is your Sex ?
Sex Tick Mark
Male
Female
Q3. There is clarity in the role that you perform in my organization?
Role Clarity Tick Mark

Agree
Strongly Agree
Somewhat Agree
Disagree
Strongly Disagree
Page 103
Q4. Are you clear with the main purpose of the job that you are
performing?
Job Clarity Tick Mark

Agree
Strongly Agree
Somewhat Agree
Disagree
Strongly Disagree
Q5. The level of involvement of employees in the organization is clearly
defined?
Employee Involvement Tick Mark

Agree
Strongly Agree
Somewhat Agree
Disagree
Strongly Disagree
Q6. The KRA’s/ targets set for me are realistic and are defined in the
beginning.
Defined KRA Tick Mark

Agree
Strongly Agree
Somewhat Agree
Disagree
Strongly Disagree
Page 104
Q7. The training needs of the employees are identified through the current
PMS?
Training Need Identification Tick Mark

Agree
Strongly Agree
Somewhat Agree
Disagree
Strongly Disagree
Q8. PMS led training fills up the gaps identified. and enhances my
performance.
Gap Identification Tick Mark

Agree
Strongly Agree
Somewhat Agree
Disagree
Strongly Disagree
Q9. PMS led Training also improves the quality of my work.
Quality Enhancement Tick Mark

Agree
Strongly Agree
Somewhat Agree
Disagree
Strongly Disagree
Page 105
Q10. There is a buddy or mentoring system in place. It provides on-going
coaching and feedback.
Role Clarity Tick Mark

Agree
Strongly Agree
Somewhat Agree
Disagree
Strongly Disagree
Page 106
BIBLIOGRAPHY
Following sources have been sought for the preparation of this report:-
 www.humanresources.about.com,
 www.citehr.com
 www.library.puchd.ac.in
 Taylor and Francis online journal
 Performance management and appraisal systems by T.V.Rao
Page 107

Performance-Appraisal in Sbi

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Performance-Appraisal in Sbi

Hochgeladen von

Copyright:

Verfügbare Formate

A RESEARCH PROJECT REPORT

MASTER OF BUSINESS ADMINISTRATION

KIPM- COLLEGE OF MANAGEMENT,

Date:………………………….. Signature of the Candidate

I would like to acknowledge with great pleasure, my deep sense of gratitude to my

study in the institute.

Sr. NO. CONTENT PAGE NO.

4. OBJECTIVE OF THE STUDY 62

5. SCOPE OF THE STUDY 63

8. DATA ANALYSIS & INTERPRETATION 85

10. RECOMENDATION 100

11. SUGGESTION 101

12. LIMITATION 102

13. QUESTIONNAIRE 103

14. BIBILOGRAPHY 107

Managing human resources in today‟s dynamic environment is becoming more

and more complex as well as important. Recognition of people as a valuable

resource in the organization has led to increases trends in employee

maintenance, job security, etc

My Research project report deals with Performance Appraisal as carried out at

IDBI FEDERAL LIFE INSURANCE. In this report, I have studied

&evaluated the performance appraisal process as it is carried out in the bank.

the company‟s history: its activities and operations, organizational structure,

the nature of its functioning.

given a brief conceptual explanation to performance appraisal. It contains the

definition, process and significance of performance appraisal.

In the third section of my report, I have conducted a research study to evaluate

the process of performance appraisal at IDBI FEDERAL LIFE

INSURANCE.. This section also contains my findings, conclusions,

suggestions and feedback.

important documents upon which the project is based.

Human Resource (or personnel) management, in the sense of getting

things done through people, is an essential part of every manager‟s

responsibility, but many organizations find it advantageous to establish a

specialist division to provide an expert service dedicated to ensuring that the

human resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of

organizations is that their people remain undervalued, under trained and

Performance Appraisal is the process of assessing the performance and

progress of an employee or a group of employees on a given job and his / their

potential for future development. It consists of all formal procedures used in

the working organizations to evaluate personalities, contributions and

On the whole, the project involves research of the different departments

field of the management. It helps the students to acquire necessary

conceptualization skills needed to transform original ideas in finished practical

knowledge. Actually research projects are in the transition of the student

field is extremely important to hit the target.

Human Resource (or personnel) management, in the sense of getting

things done through people, is an essential part of every manager‟s

responsibility, but many organizations find it advantageous to establish a

specialist division to provide an expert service dedicated to ensuring that the

human resource function is performed efficiently. Modern Appraisal

Performance appraisal may be defined as a structured formal interaction

interview (annual or semi-annual), in which the work performance of the

subordinate is examined and discussed, with a view to identifying weaknesses

and strengths as well as opportunities for improvement and skills development.

majority of available merit increases pay, bonuses, and promotions.

performers who may require some form of counselling, or in extreme cases,

demotion, dismissal or decreases in pay. (Organizations need to be aware of

INTRODUCTION TO HUMAN RESOURCE

Human Resource (or personnel) management, in the sense of getting

things done through people, is an essential part of every manager‟s

responsibility, but many organizations find it advantageous to establish a