PERFORMANCE MANAGEMENT SYSTEM CANARA BANK

Submitted By: Group Banking

KEY FEATURES OF THE PERFORMANCE MANAGEMENT SYSTEM

Appraisal Cycle Time

March 1st-June 30th (Every year)

Approach
Management By Objectives (MBO)

Tool Used
Annual Performance Appraisal Report

Stakeholders
The Appraisee The Appraiser The Reviewing Authority

EVALUATION OF THE INCUMBENT USING APA FORM

Sections of the APA form of a Manager:

Bio-data Profile Business Dimension (Operations) Self -Appraisal Overall Assessment Qualitative Appraisal Assessment Report Appraisal by Reviewing Authority Evaluation by Review Committee

BIODATA PROFILE
Personal Data
Assignments Total Exposure Training Needs Major Health Problems

BIO DATA PROFILE

Pa r t - I o f t h e A PA Fo r m

BUSINESS DIMENSION (OPERATIONS)

Evaluated against the total business brought by incumbent Some of the heads covered in this are-

Aggregate Deposits

Average Deposits

Gross Credit

Average Credit

Rating of the branch as per latest Inspection / RBIA conducted

BUSINESS DIMENSION ( O P E R ATI O N S )

Pa r t i i o f t h e A PA f o r m .
To b e f i l l e d b y o f fi c e r p o s te d as Branch-in charge

SELF APPRAISAL
Appraisee comments and elaborates his or her contribution towards achieving the business objectives Some the goals included in this section are

Success in meeting duties

Highlights of performance

Efforts made to push the organization

Measures taken to upgrade skills/knowledge base

SELF APPRAISAL
Pa r t I I I o f t h e A PA f o r m
Done by the appraisee

OVERALL ASSESSMENT
The appraiser and the reviewer then evaluate quantitatively the incumbent for total marks of 100 distributed over the following heads according to what are known as the YARDSTICKS
Business Dimension & Qualitative aspects of business Objective assessment of the entrusted assignment / Key Responsibility Area (KRA) Managerial Dimensions & Managerial Experience Managerial Ability Responsiveness to handle the assignment with minimal error and quality output Potential to drive the organization to greater heights Judicious exercise of Discretionar y Powers Judicious use of Discretionary Powers Outstanding Per formance including creative & Innovative quality

OVERALL ASSESSME NT
Pa r t i v o f t h e form
a)Done by Branch incharge

OVERALL ASSESSME NT
Pa r t i v o f t h e form
b) Done by someone other than Branch incharge or a d m i n i s t r a t io n

QUALITATIVE APPRAISAL REPORT PARAMETERS

Commitment to the task assigned

Devotion to Duty

Public Relations

Intellectual honesty, creativity & innovative qualities

Relationship with peers, superiors & subordinates

Potential to shoulder higher responsibility

Integrity

Quality of performance & professionalism in the job

Done by: Appraiser

APPRAISAL BY REVIEWING AUTHORIT Y

Reviewing committee give their remarks and proceed with the appraisal process. There is a cross check between reviewing committee and appraiser here, which says If the marks awarded by the Reviewing Authority is 91% & above or is in variation with the Appraiser by +/- 10%, specific reasons should be mentioned by the Reviewing Authority

EVALUATION BY REVIEW COMMITEE

The Final leg of PMS

PARAMETERS OF THE EVALUATION FOR OTHER THAN BRANCH MANAGER

Cost Effectiveness & Profitability
Achievement of the quantitative business figures

Handling of Qualitative business

Potential to drive the organization to greater heights

Customer Responsiveness & Customer Care

Managerial Ability

Outstanding performance including creative and innovative quality

Judicious use of Discretionary Powers

Ability to take business risks consciously & venturing into greener pasture for business opportunities

PARAMETERS OF THE EVALUATION FOR OTHER THAN BRANCH MANAGER

Objective assessment of the entrusted assignment / KRA
Responsivene ss to handle the assignment with minimal error and quality output

Managerial Ability

Potential to drive the organization to greater heights

Outstanding performance including creative and innovative quality

Judicious use of Discretionary Powers

ISSUES / PROBLEMS IN PERFORMANCE MANAGEMENT SYSTEM OF CANARA BANK

Regional Bias and Nepotism

Nonchalance about VRS and exit interviews Deserving employees inaccessibility of good career opportunities
Age old HR Policies

Performance Management System(PMS)

Evolution of PMS (BOB)

Finance Ministry Appraisal system

Enhanced BOB Appraisal System

Finance Ministry Appraisal System Issues

No good performer vs. Bad performer differentiator

The performers loaded with renewed targets while nonperformers loafed

Consistent nonperformers stagnated without promotions

25 percent branch managers in the bank exhibited either a negative growth or growth ranging between 5 and 10 percent

Casual manner of the appraisals put many nonperformers at par with performers

NEW PMS SALIENT FEATURES

In a first for banks the performance appraisal system is also maintained for the workmen too.

Integration of PMS into talent management

Conduct of PMS a parameter for appraiser performance evaluation

Performance measured against quantifiable targets

The bank has since implementation the new appraisal system to entire 13,000 officers.

Integration with Project UDAAN and Project LEAP

THE APPRAISAL CYCLE

The Cycle starts in April-May with the goal setting Mutually agreed goals(between the appraiser and the appraise) are frozen after One to One discussion

Goal setting

Mid Year Review

Quarterly review is done The reviews should happen every three months, but due to constraints practically reviews happen every six months

Final Review

The performance against set goals is reviewed by the reviewing authority and the final reviewing authority The reviewing authority is the immediate supervisor of the employee being appraised

THE HIGH PERFORMERS

KHOJ scheme

KHOJ scheme is a High Potential identification and

grooming program(Currently being revamped by BCG)

HIGH PERFORMERS

Incentive Scheme

In addition to the merit pay increase Incentives like sponsored foreign trip Identification of Talent for Project UDAAN and LEAP PMS parameters a factor in determining overseas postings

Overseas Posting

LOW PERFORMERS
LOW PERFORMERS

Performance Improvement Plan

An One to One session with HR to identify issues

Review after six months

Customized PIP plan