PROJECT REPORTON

“FINANCIAL ANALYSIS OF ICICI BANK”

Financial Analysis of ICICI Bank Ltd

SUBMITTED TO: SUBMITTED BY

Preface

The importance of management is being increasingly realized in industrial and

non industrial organizations, both in india and abroad. To cater to the needs of

these gaint business corporations several institutations are performing the

remarkable job of imparting management education.

To provide the students an

opportunity to see the management in real action and get adequate exposure to

all its processes for composite result . summer training has been made an

compulsory curriculam of BBA programme.

Every students has to undergone

summer training in same business organization to have a practrical exposure of

marketing,finance,production and

CONTENT

OBJECTIVES

RESEARCH METHODOLGY

RESEARCH DESIGN

PRIMARY DATA

SECONDARY DATA

COMPANY PROFILE

PRODUCT POLICIES

PRODUCT PORTFOLIO

ADVISOR RECRUITMENT

METHODOLOGY USED TO RECRUIT

ADVISOR

SWOT ANALYSIS

FUTURE GROWTH PROSPECTS OF

COMPANY

COMPETITIVE ANALYSIS WITH HDFC-

STANDARD LIFE

RECOMMENDATONS

CONCLUSION

BIBLOGRAPHY

COMPANY PROFILE

HISTORY OF ICICI BANK

     To understand about this big bank, we need to

understand how it became so big a force to reckon

with. ICICI (Industrial Credit Investment

Corporation of India) promoted the ICICI bank in

1994 with its stake reducing to 46% after the IPO in

1998. ICICI is a well-known name in India along

with IDBI and was formed in 1955 at the initiative of

the World Bank, Indian Government and Indian

Industries. Both of these institutions have an

exceptional brand-image and one of the highest

possible ratings from CRISIL and other rating

organizations. ICICI can be considered an

oligopolistic corporation along with IDBI (please

M2M me, if you want to discuss this!). ICIC listed in

NYSE in 2000. In 2001 it underwent a tight marriage

with Bank of Madura in a stock-only amalgamation.

This was a tough marriage and I guess they are still

suffering from this hiccup, which kind of

substantiates their mediocre performance today, in

my perspective. This and the merger with the ICICI

Corporation have caused some management strain

and some tough merger time. I could only wish they

come over this and serve the customers in a better

manner.

Introduction

ICICI Bank is India's second-largest bank, with total

assets of about Rs.1,676.59 billion on 31 March 2005.

ICICI Bank began its life 1994 as a wholly-owned

subsidiary of ICICI Limited, an Indian financial

institution, whose shareholding in the bank was

reduced to 46 per cent through a public offering of

shares in India in 1997-98, an equity offering in the

form of ADRs listed on the NYSE in fiscal 1999-

2000, the ICICI Bank's acquisition of Bank of

Madura in fiscal 2000-01, and secondary market sales

by ICICI to institutional investors in fiscal 2001 and

fiscal 2002.

In 2002, ICICI was merged with ICICI Bank to

combine the wholesale and retail operations of both

organisation into a single entity. (ICICI, or the

Industrial Credit and Investment Corporation of India

was formed in 1955 as a development financial

institution at the initiative of the World Bank, the

Indian government and representatives of Indian

industry.)

ICICI Bank's shares are listed on the Bombay Stock

Exchange and the National Stock Exchange of India

Limited in India and its ADRs are listed on the New

York Stock Exchange.

Business

ICICI Bank offers a range of banking products and

financial services to corporate and retail customers

through several delivery channels and specialised

subsidiaries and affiliates. The areas include:

investment banking, life and non-life insurance,

venture capital and asset management.

ICICI Bank set up its international banking group in

fiscal 2002 to cater to clients' cross-border needs. It

currently has subsidiaries in the UK, Canada and

Russia, branches in Singapore and Bahrain, and

representative offices in the US, China, UAE,

Bangladesh and South Africa.

ICICI Bank, which accepts deposits under various

savings and fixed schemes, offers a range of loans for

various purposes, including housing, cars and 2-

wheelers, commercial vehicles, farm equipment,

medical equipment, office equipment and

construction equipment.

The bank also has a popular credit card business.

Location

ICICI Bank has a network of about 573 branches and

extension counters and over 2,000 ATMs.

Board Members

Mr. K.V. Kamath, Chairman

Mr. R. Athappan, Director

Mr. B.V. Bhargava, Director

Mr. Dileep Choksi, Director

Mr. James F Dowd, Director

Ms. Kalpana Morparia, Vice - Chairperson

Ms. Vishakha Mulye, Executive Director

Mr. S. Mukherji, Director

Mr. Chandran Ratnaswami, Director

Mr. M.K. Sharma, Director

Mr. H.N. Sinor, Director

Mr. V. Vaidyanathan, Director

Mr. Sandeep Bakhshi, Managing Director & CEO

Committees

Audit Committee

Mr. S. Mukherji, Chairman

Mr. Dileep Choksi, Director

Mr. James F Dowd, Director

Mr. H.N. Sinor, Director

Investment Committee

Mr. Chandran Ratnaswami, Chairman

Ms. Kalpana Morparia, Director

Mr. Sandeep Bakhshi,, Managing Director & CEO

Mr. S. Gopalakrishnan, Head – Investments

Mr. Rakesh Jain, Head-Finance & Accounts

Mr. Liyaquat Khan, Appointed Actuary

Board Governance Committee

Ms. Kalpana Morparia, Chairperson

Mr. Chandran Ratnaswami, Director

Mr. H. N. Sinor, Director

Channels

The company follows multi-channel approach to tap

customers. Depending on the effectiveness, the

following channels are used for sales, service and

other allied activities. The main objective of these

channels is :

To create value beyond the

“product”.

To convert customer to

clients.

To spread awareness about the

company and its products.

Financial Highlights

Financial Year 2006-07 2005-06

Figures in nos.

No. of policies sold 3,136,393 1,461,039

No. of claims

handled

642,777 243,951

No. of employees 4,770 2,283

No. of offices 220 154

Rs. in Million

Gross Written

Premium

30,035 15,920

Net Written

Premium

14, 508 7,339

Net Earned Premium 10,667 5,277

Profit before Tax 801 545

Profit after Tax 684 503

Share Capital 3,357 2,450

Net Worth 9,427 3,729

Investments 17,105 9,065

Total asset 29,540 16,391

Ratios in %

Claim Ratio 76% 74%

Commission Ratio (13%) (17%)

Expense Ratio 34% 41%

Combined Ratio 97% 97%

Previous Year

Annual Report

2006-07

2005-06

2004-05

2003-04

2002-03             

Awards and Recognition

The Awards and Recognition conferred upon us are a

reflection of the core values which drive our business

decisions. Click on read more for more information

about a particular award.

General Insurance Company of the

Year

11th Asia Insurance Industry Awards

2007, Singapore

ICICI Lombard becomes the first Indian

insurance company to win this

prestigious award. - Read More

NDTV Profit Business Leadership Award

2007

Conferred as leaders in General Insurance

Category at the NDTV Profit Business

Leadership Awards 2007 held at Delhi. These

Awards honour business excellence. They are

aimed at recognizing companies that have

shown exceptional ability across industries and

have nurtured excellence.

- Read More

First in Customer Responsiveness

Economic Times Avaya

GlobalConnect Customer

Responsiveness Award 2006

ICICI Lombard bagged the

maximum votes from customers in

2006, making it the most Customer

Responsive Company in the

Insurance sector.

- Read More

Brand Leadership Award – 16th Asia

Brand Congress, Taj Lands End, Mumbai

Awarded the Brand Leadership Award at the

16th Asia Brand Congress held at Taj Lands

End, Mumbai from 26-27th September, 2007.

- Read More

Best Housing Insurance 2006

Awarded the Best Housing Insurance

in the Smart Living Awards by 360

degrees, a Times of India Group

subsidiary, in Nov 2006. - Read More

Excellence in Financial Reporting

Awarded the Gold Shield for "Excellence in

Financial Reporting" by the ICAI (Institute of

Chartered Accountants of India) for the year ended

March 31, 2006.

iAAA rating by ICRA

Assigned the iAAA rating by ICRA indicating

highest claims paying ability and a fundamentally

strong position - Read More

PERFORMANCE APPRAISAL

SYSTEM

Performance Appraisal is a formal, structured

system of measuring and evaluating an employee’s

job relative behaviours and outcomes to discover

how and why the employee is presently

performing on the job and how the employee can

perform more effectively in the future so that the

employee, organization, and society all benefit

INTRODUCTION

“Any system of determining how well an individual

employee has performed during a period of time,

frequently used as a basis for determining merit

increases.”

“A systematic review of a person’s work and

achievements over a recent period, usually leading to

plans for the future.”

“One phase of the annual performance management

cycle is performance appraisal, the process of

reviewing employee performance, documenting the

review, and delivering the review verbally in a face-

to-face meeting.”

“The identification, measurement and management

of human performance in organizations.

A MODEL OF PERFORMANCE APPRAISAL

Identification

Measurement

Management

COMMUNICATING WITH EMPLOYEES

Part 1: Listening, Commenting, and Questioning

Listening:

This is the building block for successful

communication, yet most of us are rather poor

listeners. Instead of listening, we start thinking of

whether or not we agree with what the other person

has said, or we being thinking of our own response.

Thankfully, listening is a skill that can be learned and

developed.

Some pointers include:

Don’t interrupt unless to seek clarification.

Don’t continually glance at your watch or the

clock.

Don’t judge or criticize.

Do make eye contact and stay interested in what

the employee is saying.

Do watch the employee’s facial expressions and

body movements for hidden messages.

Do summarize by saying what you think the

employee is feeling (empathy is the key to good

listening).

Commenting:

This is a necessary part of all discussions because is

sustains a comfortable, related flow of conversations.

Several effective types of comments include:

Restatement (of what the employee said).

Refocus from the negative to the positive.

Reflect feelings (demonstrates empathy).

Redirect a stalled conversation.

Rethink a situation (e.g., when an employee tries to

“pass the buck”).

Questioning:

This is the best way to get information from an

employee. Different types of questions will yield

different responses. Some examples of techniques

include:

Restrictive or closed-ended questions.

Open-ended questions.

Hypothetical or open-ended problem questions.

Compare and contrast questions.

Questions that involve a choice in/of responses.

Part 2: Praising and Criticizing Performance

Praising Performance:

Giving praise frequently, confidently, and

constructively is a skill you can learn. Complimenting

good performance is as important as constructively

criticizing poor performance. Compliments give

employees “positive reinforcement” which

encourages them to repeat the action that earned

praise. When giving praise, remember to:

Be specific.

Be direct.

Do it often.

Say if first (not in response to their praise of you).

Give it publicly whenever possible.

Praise the behavior rather than the person.

Criticizing Performance:

Be constructive, not destructive. When giving

constructive criticism, remember to:

Be specific.

Offer suggestions about what to do instead.

Encourage the employee. Be willing to work with

the employee to improve the situation.

Give your support, but remain firm.

Avoid name-calling and inflammatory language.

Base any review of unsatisfactory performance on

facts, not opinions or 3rd party input.

Part 3: Handling Defensiveness

While a certain amount of defensiveness is inevitable,

much of it can be avoided by bearing a few things in

mind:

Attack the problem, not the employee (use

examples of behavior exhibited in the workplace,

rather than attacking a personality trait or the like).

Choose your words carefully (use positive words

like “development opportunity” and “growth

opportunity,” rather than such negative words as

“failure” or “inadequacy”).

Keep your cool and avoid any form of

“counterattack.” Redirect the conversation, if

possible.

Performance Management in ICICI BANK

Performance Appraisal is a formal, structured system

of measuring and evaluating an employee’s job

relative behaviours and outcomes to discover how

and why the employee is presently performing on the

job and how the employee can perform more

effectively in the future so that the employee,

organization, and society all benefit.

Objectives :

1. To effect promotions based on competence and

performance

2. To confirm the services of probationary

employee upon their completing the

probationary period satisfactorily.

3. To assess the training and development needs of

employees.

4. To decide upon pay rise where regular pay scale

have not been fixed.

5. To let the employees know where they stand

insofar as their performance is concerned and to

assist them with constructive criticism and

guidance for the purpose of their development.

6. To improve communication.

7. It can be used to determine whether HR

programems have been effective.

Propose of Performance Assessment :

1. Development uses :

Identification of individual needs.

Performance feedback.

Determining Transfer and Job assignments.

2. Administrative Uses / Decisions :

Salary

Promotion.

Retention or Termination

Lay-offs

3. Organization Maintenance / Objectives :

HR Planning.

Determining Organization training needs.

Evaluation of HR systems.

4. Documentation :

Criteria for validation of research.

Documentation for HR decisions.

Helping to meet legal requirement.

Process :

Objective of Performance Appraisal.

Establish Job Expectations.

Design an appraisal Programme

Appraise Performance

Performance Interview

Use appraisal Data for Appropriate Purpose

Whose Performance Should be Rated :

Individual

Group

Two conditions necessitate a group level appraisal

– Group Cohesiveness and Difficulty in identifying

individual performance.

Who Are Raters? :

1. Immediate Supervisor

2. Subordinates

3. Peers

4. Clients

5. 360 Degree system of appraisal

6. Rating Committes

7. Self Appraisal

Problem of Rating :

PA are subject to a wide variety of inaccuracies and

biases referred to as ‘rating errors’.

Leniency / Severity

Central Tendency

Halo Error

Rater Effect

Primacy and Recency Effects

Perceptual Set

Status Effect

What should be Rated? :

1. Quality

2. Quantity

3. Timelines

4. Cost Effectiveness

5. Need for Supervision

6. Interpersonal Impact

Method of Performance Appraisal:

Past Oriented Methods :

1. Rating Scales : consists of several numerical

scales, each representing a job-related performance

criterion such as dependability, initiative, output,

attendance, attitude, co-operation, and like.

2. Checklist : A checklist of statements on the traits

of the employees and his or her job is prepared in

two columns – viz a ‘yes’ column and a ‘no’

column.

3. Forced Choice Method : The rater is simply

expected to select the statement that describe the

rate.

4. Forced distribution Method : The method

operates under assumption that the employee

performance level conforms to a normal statistical

distribution.

5. Critical Incident Method : Incidents are recorded

by the superiors as and when they occur.

6. Field Review Method : This is an appraisal by

someone outside the assessee’s own department,

usually someone from the corporate office or the

HR department.

7. Confidential Records : The approach has 14

items : Attendance, self-expression, ability to work

with others, leadership, initiative, technical ability,

ability to understand new material, ability to

reason, originality, area of interest, judgement

integrity, responsibility, and defect.

8. Easy Method

9. Paired Comparison Method

Future Oriented Method :

1. Management by Objective:

2. Psychological Appraisals.

3. Assessment centers.

4. 360- Degree feedback

Challenges of Performance Appraisal

Create a culture of excellence that inspires every

employee to improve and lend himself or herself to

be assessed.

Align organizational objectives to individual

aspirations.

Clear growth paths for talented individuals.

Provide new challenges to rejuvenate careers that

have reached the plateau stage.

Forge a partnership with people for managing their

careers.

Empower employees to make decisions without

fear of failing.

Embed teamwork in all operational processes.

PERFORMANCE PLANNING FOR ROLE

CLARITY,

ACCOUNTABILITY AND EFFECTIVENESS

Performance planning fixes accountability, sets

role boundaries, help better time management and

requires time at least once a year.

It helps manager to understand and analyze his

contributions and increase his responsibility for

continuous performance.

Performance planning implies systematic outlining

of the activities the manager is expected to

undertake during a specified period so that he is a

able to make his best contribution to the

developmental and organizational outcomes.

Performance planning indicates the relative

emphasis to be placed by the individual on

different activities he undertakes during the year.

Whose performance is to be planned

Managers seems to imagine too many uncertainties

facing the organization and feeling as though each

one of them is going to affect the role he as an

individual is likely to perform. Hence they argue

that performance cannot be planned. A good

escape mechanism.

Individual plans should be the actions expected to

be undertaken by the individual manager with the

hope of achieving the organizational goals.

Organizations should set their goals and plan their

strategies. Departments and other sub-systems

should delineate their roles and plan their

contributions.

Sequence of Individual plan – organization->

Department-> Individual

Advantage : One individual doesn’t has to wait of

others.

Planning Individual

Performance

Annual Performance Appraisal exercises provide

good opportunities or performance planning.

Ways to plan individual performance.

Task analysis and / or Activity analysis.

Key Performance area.

Key Result Areas.

Task and Target Identification.

Activity Plans / Action Plus

Goal Setting Exercises.

Key Performance area approach is the best suited

for the purpose of planning as it emphasizes

individual performance and also gives scope for

quantification.

KPAs and Performance Planning

There is no well tested our technology of identifying

KPA. But can be identified by answering following

questions :

Do the KPAs and targets emphasise/indicate what

the manager is expected to do by himself?

Together do they cover a large part of his job and

include all significant contribution expected from

his role.

Do they indicate the priority areas of work for the

appraisee during the year?

If all KPAs are well done can the appraisee to be

labelled as a good performer?

Are the targets set challenging and stretch the

capabilities of the appraisee moderately rather than

being routine?

Are they comprehensive?

Do they specify the standards of performance

expected from the appraisee?

Do they take into consideration realistically the

condition under which the appraisee is expected to

function during the year?

Are they satisfying both to the appraisee and

appraise

Has the adequate time be spent on the process of

identifying KPAs and gaining role clarity?

The need for Clarity of Roles and Functions in

Modern Organizations

for growth dynamism is important.

Dynamic organizations are continuously in the

process of change.

Change have impact on the roles.

Thus in order to help people to develop various

capabilities, a clear understanding of the different

functions associated with their roles and the

capability requirements need to be clearly

understood.

PERFORMANCE ANALYSIS

If subjectivity in appraisals has to be reduced the

appraiser should not only assess the level of

performance achieved by the appraisee but also

understand and assess the condition under which

the appraisee has accomplished whatever he has

accomplished.

Performance analysis is considered as the heart of

the appraisal system.

Objectives :

Identification of facilitating factors.

Identification of hindering factors.

Identification of factors about something can be

done.

Identifying developmental needs for better

performance on critical functions associated with

the present roles.

To gain better understanding about the aprpaisee,

his roles requirements and situation in which he

is working and also to share with him the

expectations and understanding of the appraiser

so that the communication between each of them

is increased.

ACCURACY OF PERFORMANCE APPRAISAL

The accuracy of Performance Appraisals can be

viewed as a function :

Rater’s motivation to appraise accurately.

Job-relevance of the rating-standards used by

the rater

Rater’s ability to evaluate rate job behaviour

Reducing Rater biases :

One way of reducing these by making the

assessors more and more aware of the

dynamic factors affecting their perceptions

and evaluations of their subordinates. This

can be done through :

i. Rater Timing.

ii. Rater participation in the construction

of rating scales.

iii. The use of some statistical methods.

PERFORMANCE COUNSELING

Performance Counseling is often misunderstood.

It is wrongly interpreted as a process of correcting

or controlling the employee behavior.

It is defined as the help provided by a manager to

his subordinate in analyzing their performance and

other jobs behaviors in order to increase their jobs

effectiveness.

It is a dyadic process.

Objectives :

1. Helping to realize potential as a manager.

2. Helping to understand weakness and strengths.

3. Providing an opportunity to acquire more

insight into own behavior and analyse the

dynamics of such behavior.

4. Help to have better understanding of the

environment.

5. Increasing personal and inter-personal

effectiveness by giving feedback.

6. Encouraging to generate alternatives for dealing

with various problems.

7. Encouraging to generate alternatives for dealing

with various problems.

8. Providing empathic atmosphere.

9. Help to develop various action plans for further

improvement.

Conditions for effective counselling :

1. General climate of Openness and Mutually

2. General Helpful and Empathic Attitude of

Management.

3. Sense of uninhabited participation.

4. Dialogic Relationship in Goal Setting and

Performance Review.

5. Focus on Work - oriented Behavior.

6. Focus on work related Problems and Difficulties

7. Avoidance of discussion of salary and other

Rewards.

The Process of Counseling :

1. Communication : Interpersonal communication is

the basis of performance review in which both the

employee and his reporting officer are involved.

The climate should be congenial so that employee

is in receptive mood.

Listening : Listening is the first effective step in

communication.

Asking question and responding.

Feedback : It is an important input for increasing

self awareness

2. Influencing : Influencing would mean making an

impact on the person in relationship. Such an

impact need not necessarily be of restrictive type.

Increasing authority of person : If a person is

praised or recognized he feels encouraged to

make more initiative in exploring new

directions.

Positive Reinforcement : Influencing would

involve providing encouragement and

reinforcing success so that the person takes

more initiative and is able to experiment with

new ideas.

Identification : One major influence which helps

an employee to develop is the opportunity for

him to identify with individuals having more

experience, skill and influence.

3. Helping : Counselling is essentially helping.

Concern and Empathy : Without manager’s

concern for his employee, effective helping

cannot be provided in the counselling session.

Such concern is shown when the counsellor is

able to feel for his subordinate and is able to

empathize with him.

Mutually of Relationship : Counselling should

not be regarded as merely giving help. It is also

receiving help on Various aspects.

Identifying Developmental Needs.

USING PERFORMANCE APPRAISAL DATA

Effectiveness of performance appraisal system

depends to a great degree on how well the data

generated by the system are utilized for variety of

purposes and to what extent the employees see the

date being utilized.

Developmental Decision :

The path for development on the job is already carved

out for employees through key performance areas,

behavioural dimensions, self- appraisal, performance

analysis and counselling.

Identification of Training Needs :

The following processes may be used by the HRD

department to identify training needs and create

learning opportunity for employees :

i. Collect appraisal ratings of all the

employees.

ii. Categories the employees into role related or

function related categories.

iii. Identify common performance areas for each

category of employees.

iv. Tabulate the final appraisal rating by the

appraiser against each performance area for

all the employees having that performance

area. 56

v. The trends in rating are the indicative of the

areas that need attention.

vi. On the basis of such analysis, areas where a

large group of employees need to be trained

could be identified.

Job ration is another effective way of developing

employee capability. Some organization use job

rotation as a mechanism of identifying and

developing the potential of employee.

Potential development and career development

related decisions can be taken by the appraise

himself during appraisal discussion.

Inputs for development needs are given by the

appraise and appraisers through the performance

appraisal forms.

Administrative decision :

The administrative decisions like salary increased and

other form of rewards for good performance, transfer

and placement decisions are taken by the top

management or the personnel department. Largely

these decision are based on performance and

performance appraisals play a significant role in this.

Performance Rewards :

Performance rewarding is a very controversial issue

in organizational life because there are no easy ways

of quantifying performance for reward purposes.

Performance rewarding is involved only when an

employee is rewarded for high performance in his job

over a period of time and this should be differentiated

from other forms of rewards and awards.

Reward mechanism :

i. Salary increase

ii. Annual Performance awards

iii. Outstanding Performance awards

iv.Promotions

v. Chang of responsibilities and status.

vi.Sponsorship to conferences, tours and visit to

other countries

vii. Appreciation Letters and Certificates

viii. Transfer

ix.Advanced Training and Development

opportunities

x. Announcement in newsletter, journals, etc.

Problems Encountered by Management :

i. Quantification of Performance

ii. Comparison of performance with different types

of jobs.

iii. Differentiating between contribution of

abilities and efforts to high performance, and

giving weights to the same.

iv.Demoralization among employees who are not

rewarded.

v. Isolating individual employee’s contribution

from group contribution.

vi.Subjectivity in performance assessment.

Transfer and Placement Decisions :

Performance appraisal inputs could be used for

transfer and placement decisions. A transfer decision

may be taken essentially to ensure better matching of

the person with the job. An employee who is not

performing well in particular role because of

mismatch could be helped by identifying suited job

for him in the organization where he could do better.

Thus performance appraisal data can serve as input

for a variety of decisions that may contribute to

organizational health and productivity through human

resource development

RESEARCH DESIGN

Title of the study:

The study of Performance Management system is to

give a better way to approach performance evaluation

and development. The process helps the manager to

create a work environment that will help employees

to succeed. This is also helpful to improve

productivity, motivation and morale by handling

performance development in new ways.

Statement of the Problem:

This study attempts to analyze & determine the

Employees Satisfaction towards the current

Performance Appraisal system with respect to “ICICI

BANKS” employees from various different

departments and to save recommendations to make it

make it more effective.

Objective of the Study

The objective of the study are as follows:

To understand the current Appraisal system

prevailing in the Company.

To calculate the employees satisfaction towards the

current Appraisal system and

And give recommendations to make it more effective

and reliable.

Scope of the Study.

The scope of this study is to evaluate the response of

the employees towards the current Appraisal System

in the organization. This study was limited to ICICI

BANK only.

Limitations of the Study

The study is confined to ICICI BANK`

employees only.

The survey was conducted only with few of the

employees thus it cannot be generalized.

The information collected in this project is highly

time bound hence, it may vary in the course of

time .

The survey was conducted only for 50

employees.

Research methodology

The data serves as the basic raw material for analysis.

Without an analysis of factual data no specific

inferences can be drawn on the questions under the

study. Inferences based on imagination or guess work

cannot provide answer to the question. The

relevance , adequacy and reliability of the data

determines the quality of the findings of the study

For this purpose of study, data was collected from

two sources

1. Primary data

2. Secondary data

Primary data has been collected through a convenient

questionnaire method produced to 50 employees who

are working with ICICI BANK currently. The

response is treated for the analysis, conclusion and

the interpretation of the findings made.

Secondary data has been collected through company

broachers, annual reports, business magazines and

newspapers, text books and the internet.

Tool of Analysis:

The data collected has been classified and tabulated

using the frequency distribution tables and they have

been analysed based on various statistical tools like

percentage.

The analysis has been represented by diagram and

graphs which has helped in better interpretation of

data.

Sample size:

The sample size of 50 Employees was taken.

Sampling technique:

Convenient sampling was done for the study.

Field work:

The research work has involved a field work of 10

days where I have presented questionnaire to the

employees working with various departments at

various different places. The responses were also

collected through interviews and daily interactions

with the employees to get some useful data for the

project study.

DATA ANALYSIS AND INTERPRETATION

GRAPH 1:

CLASSIFICTION OF EMPLOYEES ON THE

BASIS OF THEIR WORKING WITH THE

BANK

How long have you been working with this company?

2%

46%

10%

42%less than 1 year

1-3year

3-5year

more than 5yrs

Analysis:

From the above Graph we can interpret that % of

employees who are working from more than 5 years

is 42% followed by 1-3 years with 46%.

Inference:

The employees working with this BANK are really

committed towards their job.

GRAPH 2:

CLASSIFICATION OF EMPLOYEES ON THE

BASIS OF THEIR FREQUENCY OF

APPRAISAL

How frequently are you appraised?

32%

0%68%

0%

Annually

Six monthly

Quaterly

Monthly

Analysis:

From the above graph we can analyze that 68% of

employees and appraised at quaterly basis so as to

maintain good performance through out the year

followed by 32% who are appraised on annually

basis.

Inferences:

Majority of the employees are appraised on quarterly

basis. The criteria should be same for everybody.

GRAPH 3:

CLASSIFICATTION OF EMPLOYEES ON THE

BASIS OF THEIR APPRAISEE

Who does your appraising?

0%

75%

25%

0%

0%

Peers

Immediate Superiors

Raiting Committees

Subordinates

360 Degree feedback

Analysis:

Majority of the appraising work is done by the

immediate superiors with 75% and rest 25 % is done

by the rating committee.

Inferences:

The rating should do the major part of the appraising

job so as to avoid biasness. Some of the employees

feel that the boss may be bias and they feel that the

rating committee should be assigned the major part of

the appraising job and the names of the rating

committee members should not be reveled out before

the appraisal .

GRAPH 4:

CLASSIFICATION OF EMPLOYEES ON THE

BASIS OF THEIR LAST APPRAISAL

When were you Appraised the last time

50%44%

0%

6%

Recently

Sometime back

Can't Remember

Have never beenappraised

Analysis:

The majority of employees have been appraised

recently i.e 50%. The rest have been appraised the

last quarter i.e 44% and 6% of employees have never

been appraised.

Inferences:

The satisfaction level will be high as majority have

been appraised recently and in the last quarter.

GRAPH 5:

CLASSIFICATION OF EMPLOYEES ON THE

BASIS OF WHO SHOULD DO THE

APPRAISING

Who in your opinion should do the appraising?

0%

56%25%

0%

14%

5%

Peers

Immediate Superior

Raiting Committee

Subordinates

360 Feedback

Client

Analysis:

56% of the employees feel that their immediate

superiors should do the appraising whereas 25% of

the employees say that they should have a rating

committee. 14% feel that their should be 360’degree

feedback system for the appraisal where as 5 % feel

that client should do their appraising

Inferences:

Majority says that the appraising should be done by

the bosses as they know that their boss is aware of

their each and every activity happening and only he

could be the best judge for them. It is very true that

the bosses feedback can be biased so in that case a

rating committee should also be there so that the

biasness can be avoided.

GRAPH 6:

CLASSIFICATION OF EMPLOYEES ON THE

BASIS OF HOW THE APPRAISAL HELPED

THEM

In which of the following has your appraisal helped?

a50%

b20%

c6%

d24%

a

b

c

d

a. Promotion and Salary raise

b. Developing a plan for correcting any deficiencies

the appraisal might have unearthed

c. Career Planning

d. Identifying your strengths and weaknesses

Analysis:

From the above graph it can be seen that 50% of the

employees got a promotion or a salary raise whereas

24% were helped to identified their strengths.

Inferences:

As we can see that the majority of the employees

have been promoted or got a salary hike so they will

defiantly be happy. The appraisal system has helped

everyone, either to identify their strengths or be it

career planning. This shows the relevance of the

appraisal system in the organizations.

GRAPH 7:

CLASIIFICATION OF EMPLOYEES ON THE

BASIS OF THEIR RATING TO THEIR

APPRAISAL SYSTEM

How would you rate your Appraisal system on the scale of 1 to 5?

0% 20%

30%

44%

6%

Poor

Average

Good

Very Good

Excellent

Analysis:

44% of the employees feel that their appraisal system

is very good followed by 30% who feel that it is just

good.20% of the employees feel that the appraisal

system is average and only 6% feel that it is excellent

Inferences:

The rating given by the employees is in the favor of

the appraisal system. The employees seem to be

happy with their appraisal system as we have no one

saying that it is poor.

GRAPH 8:

GRAPH SHOWING EMPLOYEES OPINION

ON THE USEFULNESS OF THE APPRAISAL

FEEDBACK

In your opinion, how useful is the appraisal feedback?

46%

46%

4% 4%

Very Useful

Useful to an extent

Not much useful

Not at all useful

Analysis:

46% of the employee feel that appraisal feedback is

useful to an extent and 46 % feel that it is very useful.

Only 4 % feel that it is not at all useful

Inferences:

Majority of the employees feel that the appraisal

feedback is important as it helps them to identify their

strengths and weakness and also give them the feel of

existence in the company.

GRAPH 9:

GRAPH SHOWING THE EMPLOYEES

OPENION ABOUT THE SYSTEM BEING

OBJECTIVE

Do you Find the present Appraisal system has any objective?

10%

52%

38%

0%

0% Strongly Agree

Agree

Neither Agree NorDisagree

Disagree

Strongly Disagree

Analysis:

from the above graph we can analyze that 52% of the

employees feel that the Appraisal has any objective

followed by 38 % neither agree not disagree whereas

only 10 % of the employees strongly agree with this

statement.

Inferences:

Appraisal system is very objective.

FINDINGS AND CONCLUSION

After going through all the data collected and after

through analysis I have come out with the following

findings:

1. The employees have clear goal definition and

clarity of work which is very important for an

employee to know as an individual also and as a

part of the company also.

2. The employees feel that the decision of appraisal

to be done by the immediate superior is good as

he knows how much the subordinate is efficient

and hard working.

3. The majority of employees are happy with the

salary raise which they get at every appraisal so

that means they are satisfied financially.

4. The employees feel that the current rating

committee is good.

5. Employees fell that if they have a good boss then

the appraisal will defiantly be good, so it depends

all on the boss.

6. Employees feel that the self scoring system is

good but superiors rating is equally important.

7. Employees strongly agree that the appraisal

system really helps them to identify their

strengths and weakness which in return help

them to increase their performance.

8. Employees feel that the Appraisal system should

be different at every level.

9. In employees opinion linking KRA with the

appraisal system is good.

10. in employees opinion the appraisal system

help them to achieve targets on time

11. Employees agree that with the help of

appraisal system their roles and responsibilities

are clearly defined.

12. Appraisal system is good as it has systematic

approach and achievement based evaluation.

13. Appraisal system is good as it has proper

Target setting.

14. Employees feel that the system is good

because it has profile setting, work disposal and

contribution towards company’s objective.

15. In employees opinion the appraisal done

after every quarter is a good concept as the

employee can rectify his mistake in short period

of time and can work correctly to achieve his

target.

16. Employees feel that the appraisal system

should be more transparent.

17. Employees say that they should be part of

the company’s profit(PLI).

RECOMMENDATIONS

After going through the interviews with employees of

various departments and also after the through

analysis of the data collected I can say that the

appraisal which is currently prevailing in the

organization is good and is liked by the employees.

The majority of the employees are happy with the

current appraisal system but still I have come up with

some recommendations to make it more effective and

efficient.

1. Focus should be on employees satisfaction by

understanding ground level feedback. Through

the ground level feedback he will hear the voice

of the masses and the company will be able to

achieve over all employees satisfaction.

2. Rating committee should keep on changing and

the names of the members of the rating

committee should be kept as a secret. This is to

avoid biasness and gaining trust of the

employees.

3. One should be appraised by the external

customer in case of support and they can have an

internal employee also in the panel. This is to get

the actual feedback for the employees working in

the support and to get the knowledge about both

the prospective.

4. Appraisal should be done on proper gap.

5. More stress should be given on the identification

of improvement areas for the betterment and skill

enhancement of the employees.

6. Appraise should also advice about future career

planning of his staff because the appraisal aims

at the betterment of the staff. They themselves

can tell what is required by them, what are their

targets and goals in life and the appraises should

give them ways to achieve them so that they are

satisfied.

7. More recognitions should be given for team

based achievements as team as a whole can take

up task which an individual can not take and if

they are recognized well they can prove very

beneficial.

8. HR should start grievance handling system on

continuous basis.

BIBLIOGRAPHY / SOURCES

BOOK

1. ESSENTIALS OF HUMAN RESOURCE

MANAGEMENT AND INDUSTRIAL

RELATION.BY P.SUBBA RAO

AUTHORS-

1. C.R. KOTHARI, RESEARCH

METHODOLOGY.

2. C.B. MAMORIA, HUMAN RESOURCE

MANAGEMENT.

OTHER SOURCE-

1. www. ICICI com

2. www. ICICI.org.com.